21
Tathapi (UGC Care Journal) ISSN: 2320-0693 Vol-19-Issue-21-May-2020 Page | 86 Copyright ⓒ 2020 Authors “Consumer Buying Behavior towards Two-Wheeler Scooters: With Special reference to Nagpur City (Maharashtra, India)” Dr. Padmakar I. Shahare Assistant Professor, GWCET, Nagpur, Maharashtra, India, [email protected], Biographical notes: Padmakar Shahare is presently working as Assistant Professor at Govindrao Wanjari College of Engineering and Technology, Nagpur. He is graduate in BE (Electronics Engineering) from RTM, Nagpur University and post graduate in MMS (Marketing Management) from University of Mumbai, Mumbai. He has also to his laurels various other degrees like M.Com, PGDIBO. He was awarded PhD degree from Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur. His area of expertise is Consumer behavior, Marketing Management, Advertising & Brand Management and Operations Management. He has a total of fifteen years of teaching, research and corporate experience. He has authored, published and presented more than 11 papers Abstract: Consumer buying behavior is an in-depth study and understanding consumer decision making process. It studies the factors and traits of individual consumer such as demographic and behavioral variable and to understand the need, wants and desire of the consumers. The two wheeler industry in India has shown a steady growth over the past decade. Any organization needs to know the motives and reasons why the consumer differs in choice from each other in buying products and services. This research paper aims to identify various factors that influence the consumer buying behavior of the two wheeler scooters in Nagpur city (Maharashtra, India). The survey conducted for this study mainly focuses on the reasons and criteria followed by consumer for buying two-wheeler scooters. This study is based on a primary data collected from the questionnaire survey conducted among 338 two- wheeler users in Nagpur city. The researcher has used percentage analysis for assessing demographic profile of the respondents, factors while purchasing two-wheelers is analyzed using Likert’s scaling technique and reasons for buying two-wheeler scooter is analyzed using Garret ranking method. Keywords: Consumer, buying behavior, factors, demographic, two wheeler, scooters, etc.

Padmakar Shahare

Embed Size (px)

Citation preview

Page 1: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 86 Copyright ⓒ 2020 Authors

“Consumer Buying Behavior towards Two-Wheeler Scooters: With Special reference to

Nagpur City (Maharashtra, India)”

Dr. Padmakar I. Shahare

Assistant Professor, GWCET, Nagpur, Maharashtra, India, [email protected],

Biographical notes:

Padmakar Shahare is presently working as Assistant Professor at Govindrao Wanjari College of Engineering and

Technology, Nagpur. He is graduate in BE (Electronics Engineering) from RTM, Nagpur University and post

graduate in MMS (Marketing Management) from University of Mumbai, Mumbai. He has also to his laurels various

other degrees like M.Com, PGDIBO. He was awarded PhD degree from Rashtrasant Tukdoji Maharaj Nagpur

University, Nagpur. His area of expertise is Consumer behavior, Marketing Management, Advertising & Brand

Management and Operations Management. He has a total of fifteen years of teaching, research and corporate

experience. He has authored, published and presented more than 11 papers

Abstract:

Consumer buying behavior is an in-depth study and understanding consumer decision making process. It

studies the factors and traits of individual consumer such as demographic and behavioral variable and to

understand the need, wants and desire of the consumers. The two wheeler industry in India has shown a

steady growth over the past decade. Any organization needs to know the motives and reasons why the

consumer differs in choice from each other in buying products and services. This research paper aims to

identify various factors that influence the consumer buying behavior of the two wheeler scooters in Nagpur

city (Maharashtra, India). The survey conducted for this study mainly focuses on the reasons and criteria

followed by consumer for buying two-wheeler scooters.

This study is based on a primary data collected from the questionnaire survey conducted among 338 two-

wheeler users in Nagpur city. The researcher has used percentage analysis for assessing demographic profile

of the respondents, factors while purchasing two-wheelers is analyzed using Likert’s scaling technique and

reasons for buying two-wheeler scooter is analyzed using Garret ranking method.

Keywords: Consumer, buying behavior, factors, demographic, two wheeler, scooters, etc.

Page 2: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 87 Copyright ⓒ 2020 Authors

1. Introduction

The two wheeler segment contributes the largest and biggest volume of sales of all the segments in automobile

industry in India. It consists of three segment viz. scooter, bike and moped. In recent time the consumer’s choice and

preferences for purchase of two wheelers have moved from bike to scooters for variety of reasons. Capturing a large

share in the two wheeler industry, scooter and bikes covers a major segment. The customers have wide choice of

brand in two wheeler segment and for survival in competition; the two-wheeler companies have to do better job in

satisfying customers’ needs and wants. Majority of Indians, especially the youngster prefer bikes rather than four

wheelers. Bikes are considered to be the trending and favorites among the young generation, but cost, comfort and

convenience of driving is what makes the scooter the most popular in many part of the India.

Consumer behavior is the study of how people buy, where they buy, what they buy, when they buy and why they

buy. Consumer Behavior is the psychology behind marketing the behavior of consumers in the marketing

environment. Two major psychological disciplines come into play when observing and trying to explain consumer

behavior. The first is Cognitive Psychology which is a study of all knowledge related behavior. The attention,

perception, memory and decision making are the various aspects of Cognitive Psychology that play an important

role in consumer behavior. The second psychological discipline that has theories to explain certain phenomenon of

consumer behavior is Social Psychology. It is the study of the manner in which the personality, attitude, motivation

and behavior of an individual influence and are influenced by groups.1

According to Philip Kotler, the buying process starts when the buyer recognizes a problem or need. This need

can be triggered by internal stimuli (feeling, hunger or thirst) or external stimuli (seeing an ad) that then becomes a

drive. He also says that provoked consumer who recognizes a problem will be inclined to search for more

information. If the consumer's drive is strong and a satisfying product is near at hand, the consumer is likely to buy

1http://www.theinternationaljournal.org/ojs/index.php?journal=rjcbs&page=article&op=download&path%5B%5D=4897&path%5B%5D=pdf

Page 3: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 88 Copyright ⓒ 2020 Authors

it then. If not, the consumer may simply store the need in memory or undertake an information search related to the

need.2

Figure 1: Consumer decision making process

Source: Kotler and Keller (2012)

2. Socio-economic factors and consumer behavior

A consumer making a purchase decision will be affected by following Factors:

a. Cultural Factors

b. Social Factors

c. Personal Factors

d. Psychological Factors

a. Cultural Factors: It applies the greatest impact on buying behavior of consumer. A buyer is always

influenced by his culture, sub-culture and social class. Culture is the most fundamental factor of a person’s wants

and behavior. Culture refers to the set of values, ideas and attitude that are accepted by a homogeneous group of

people and transmitted to the next generation. Whereas Subculture is a member of a culture, shares most of the core

value, beliefs and behaviors of that culture. Each culture consists of smaller sub culture that provides more specific

identification and each socialization for their members. Sub culture includes nationalities, religions, racial groups

and geographic regions. Social class determines to some extent, the types, quality and quantity of product that a

person buys or uses. Social class is a basis for identifying and reaching particular good prospects for products and

services.

b. Social Factors: Man is a social animal. Hence his or her behavior is greatly influenced by social Factors like

reference groups, family, roles and status

2 Kotler, P. and Keller, K.L. (2012) Marketing Management, 14th ed.,Pearson Education, New Jersey,USA

Need Recognition & Problem Awareness

Information search

Evaluation of Alternatives

PurchasePost-

Purchase Evaluation

Page 4: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 89 Copyright ⓒ 2020 Authors

i. Reference groups: A person’s reference groups consist of all the groups that have a direct or indirect

influence on the person’s attitude or behavior.

ii. Family: Family member constitute the most influential primary reference group.

iii. Roles and Statuses: Each role that a person plays has a degree of status which is in relative term perceived by

the society. It is the degree of influence that an individual applies on the behavior of others.

c. Personal Factors: A consumer decisions are also affected by his including age, occupation, life- style and

personality.

d. Psychological Factors: A person’s acquired needs are influenced by certain psychological factors such as

motivation, perception, learning and beliefs and attitudes.3

3. Demographic and Topographic Profile of Nagpur City (Maharashtra, India)

The city of Nagpur epitomized as Zero mile city is located in central India. The Zero Mile Stone locating the

geographical center of India was used by the British to measure all distances within the Indian subcontinent. Nagpur

is third largest city in terms of Population and winter capital of the Indian state of Maharashtra. It is 13th largest city

in India by population. Nagpur is famous for oranges, and is refereed as Orange city also. It has also been recently

ranked as the cleanest city and the second greenest city of India. The city is located on the Deccan plateau of the

Indian Peninsula and has a mean altitude of 310.5 meters above sea level.

As per provisional reports of Census India, population of Nagpur in 2011 is 2,405,665; of which male and female

are 1,225,405 and 1,180,260 respectively. The total number of slums number 179,952, in which 859,487 people

reside. Hinduism is majority religion in Nagpur city and Marathi is the official and most spoken language. Its per

capita income was INR 123,610 (US$1,700) in 2015.4

The multimodal International Hub Airport at Nagpur (MIHAN) is an ongoing project, prominent information

technology (IT) companies such as TCS, Tech Mahindra, HCL, GlobalLogic, Persistent System and Hexaware are

3 Kotler, P., Chandler,P.C., Brown, L. and Adam, S. (2003)Marketing: Australia and New Zealand, 3rd ed., pp.136–143, Prentice Hall, Australia,

New York 4 https://www.census2011.co.in/census/city/353-nagpur.html#all

Page 5: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 90 Copyright ⓒ 2020 Authors

located at various IT part in Nagpur. Apart from MIHAN, SEZ the city has three prominent MIDC areas nearby and

various government and private offices.

Nagpur is major education hub in central India and very good place for higher education in the field of

Engineering, Medical and Management. Nagpur has four state universities Rashtrasant Tukdoji Maharaj, Nagpur

University having more than 600 affiliated colleges, Maharashtra Animal and Fishery Science University, Kavi

Kulguru Kalidas Snakrit University and Maharashtra National Law University. Most engineering colleges in the city

are affiliated with RTN Nagpur University. Nagpur has two major management institutes, Indian Institute of

Management established in 2015 and Institute of Management Technology, private management colleges and

Symbiosis International University.

The transport within the city is managed by the buses of Nagpur Mahanagar Parivan Limited (NMPL) it has a

fleet of 487 buses, which serve about 160,000 passengers daily in the metropolitan area. Of the fleet, 17 are electric

buses; 88 are low-floor Mini-Buses, and 382 are low-floor 50-seat Star Buses. Public transports of Nagpur are the

cheapest mode of traveling across the Nagpur city. Auto rickshaws are also an important part of public transports at

Nagpur. Another public transport at Nagpur which can be ranked third among all is the cabs or taxis that run on the

streets of Nagpur. The Nagpur Metro project was announced by the state government of Maharashtra and work is in

process.5

Various categories of Scooters available in Nagpur city like Honda Activa, Hero Maestro, Suzuki Access, Honda

Dio, Hero Pleasure, TVS Jupiter, TVS Scooty, Yamaha Fascino, Honda Grazia and Vespa.

Table 1: Category-wise number of vehicles registered during 2017-2018 in Nagpur city.6

Sr. No. Category Nagpur Rural Nagpur ® Region

1 Motor Cycles 33185 91216

2 Scooters 10285 36961

3 Mopeds 2216 3412

5 https://en.wikipedia.org/wiki/Nagpur 6 https://transport.maharashtra.gov.in/Site/Upload/GR/Statistics%20Information-2017-18.pdf

Page 6: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 91 Copyright ⓒ 2020 Authors

Total Two wheeler 45686 131589

Source: Secondary Survey data (RTO Nagpur)

4. Literature Review

Prof. Manisha Jagtap & Dr. Anand Deshmukh (2018) found in his study that the factors influencing the

consumer buying behavior are Brand Image, Showroom Services, Engine Capacity, Safety, New technology,

Product design, Warranty period, Impact of peers, Driving Comfort, Mileage , Price and Engine Power. The

research identified apart from the factors, consumer behavior is also influenced by the need, purchasing power and

the price of the two-wheeler. The researcher also analyzed the reason behind the changes occurred in consumer

buying decision over to another brand which are is due to problems faced with the existing brand and due to the

desire of highly technological automobile and due to the change in the services offered by dealer before and after

purchase.7

A. Martin Jayaraj (2017) explained about the buying behavior of consumers in purchasing two wheelers

involves several psychological factors that govern the individual thinking process (like motivation, perception and

attitude), decision-making steps involved in buying, interaction of the consumer with several groups like friends,

family and colleagues, group, and selection of the brand and outlet depending on features and emotional appeal

(marketing mix). All consumers engage in shopping with certain fundamental decision-making modes or styles,

including rational shopping and consciousness regarding brand and quality.8

7 Prof. Manisha Jagtap & Dr. Anand Deshmukh (2018), “Consumer Behavior Research: A Literature Review”, DOI : 10.18843/ijms/v5i4(9)/20, http://researchersworld.com/ijms/vol5/issue4_9/Paper_20.pdf 8 A. Martin Jayaraj (2017), “A Study on Consumer behaviour towards Two Wheeler dealers in Coimbatore district”, IJMRR/April 2017/ Volume

7/Issue 4/Article No-3/418-423, http://ijmrr.com/admin/upload_data/journal_Martin%20%203.pdf

Page 7: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 92 Copyright ⓒ 2020 Authors

S. Suraj Basha and Dr. B.C. Lakshmanaa (2017) have written a paper on “A study on factors influencing

consumer’s buying behavior of two-wheeler with special reference to Rayalaseema region, Andhra Pradesh, India”,

the study revealed that consumer buying behavior influence by personal, psychological, social and cultural factors.9

Joseph Antony and Dr. Siby Thomas (2017) conclude in their paper entitled “A study on factors influencing

purchase intention of consumers towards two wheelers” that consumers influenced by economic factors, features,

usage, brand image, aesthetics and social factors.10

Dr. Raj A. Jesu Kulandai, & Prof. Kaviarasu S. John, (2015) found in his study that the Indian two wheeler

industry is expanding and growing up each year and the motorcycle segment is governed by various players i.e.

Hero, Honda, Bajaj, TVS, Royal Enfield. The study notices that buying behavior of two-wheelers in Chennai city is

significantly influenced by a number of marketing stimuli offered by the manufacturers. It also reveals the people

from low and middle class prefer two wheeler as it matches with their individual and family requirements.11

Dr. Duggani Yuvaraju & Prof. S.Durga Rao (2014) have written a case study on “Customer satisfaction

towards Honda two-wheelers in Tirupati, India”. The study concludes that most of the customers of high income

group preferred Honda bikes because of best quality with reasonable price.12

5. Research Methodology

This study covers the period of Five months from December 2018 to April 2019. Primary data was collected by

survey, telephonic interview, and observations. The questionnaire is the key tool of data collection for this survey.

The aim of the questionnaire is to help the researchers to gather information from the market survey and analyze the

9 S. Suraj Basha and Dr. B.C. Lakshmanaa (2017), “A study on factors influencing consumers’ buying behavior of two wheelers with special

reference to Rayalaseema region, Andhra Pradesh, India”, International Journal of Academic Research, Vol.4, Issue-4(1), April, 2017, http://ijar.org.in/stuff/issues/v4-i4(1)/v4-i4(1)-a004.pdf 10Joseph Antony and Dr. Siby Thomas (2017), “A study on factors influencing purchase intention of consumers towards two wheelers”,

International Journal of Advance Engineering and Research Development Volume 4, Issue 5, May -2017, http://www.ijaerd.com/papers 11 Dr. Raj A. Jesu Kulandai & Prof. Kaviarasu S. John. (2015), “Household Characteristics and Buying Behaviour of Two-wheeler Consumers in

Chennai City”, Asian Journal of Research in Business Economics and Management, 5 (4), 109-121,

https://shodhganga.inflibnet.ac.in/bitstream/10603/222515/8/08_chapter%202.pdf 12 Dr. Duggani Yuvaraju & Prof. S.Durga Rao (2014), “Customer Satisfaction towards Honda Two Wheelers: A Case Study in Tirupati”, IOSR

Journal of Business and Management, Volume 16, Issue 5. Ver. I (May. 2014), PP 65-74, http://www.iosrjournals.org/iosr-jbm/papers/Vol16-

issue5/Version-1/J016516574.pdf

Page 8: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 93 Copyright ⓒ 2020 Authors

research findings (Saunders et al., 2009). The secondary data collected from websites, publication, research papers,

newspapers and books. For this study, simple random sampling techniques are used for selection of the 350 sample

respondents and 338 responses have received. The sample is drawn from the sample unit the customers of Nagpur.

The collected data is analyzed with the help of statistical tools like percentage analysis, Likert Scale,

Garret Ranking Method and Chi-square test.

5.1. Reason for topic selection

Nagpur is one of the developing cities in Central India. The topography and terrain of the city consists of low

flat-topped hills and flat tablelands. Also it is observed that number of scooters on the road is more than any other

vehicle in the two-wheeler category.

This paper aims to find the consumer buying behavior towards two-wheeler scooters.

5.2. Problem identification

There is very high competition in various brands of two-wheeler in scooter category. By observation the

switching demand from bike to scooter is growing these days, which pushes them to purchase scooter at high scale

so based on the information from the various dealers and the different review of literature.

Therefore researcher is required to analyze the factors and reasons of present consumer behavior to purchase

two-wheeler scooters. This study emphases to study the research questions like what are the reasons for buying

scooter in two wheeler category? And also what are the factors that affect Nagpur consumers purchase intentions

toward scooter?

5.3. Objectives of the study

The Primary objectives for this study are as follows:

a. To understand the respondent’s preference of two-wheelers in Nagpur, Maharashtra, India.

b. To identify the factors influencing consumer buying behavior process in Nagpur city.

c. To analyze the reason behind the socio-economic changes and its influence on consumer buying behavior of two-

wheeler Scooters in Nagpur city.

Page 9: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 94 Copyright ⓒ 2020 Authors

5.4. Hypothesis of study

Hypotheses 1:

H0: There is no significant relationship between the Demographic factors and preference of respondent for

purchasing scooter in two-wheeler category.

H1: There is significant relationship between the Demographic factors and preference of respondent for purchasing

scooter in two-wheeler category.

Hypotheses 2:

H0: There is no significance between the motivation from credit schemes facilities and satisfaction level of Nagpur

consumers to purchase scooter.

H1: There is significance between the motivation from credit schemes facilities and satisfaction level of Nagpur

consumers to purchase scooter.

5.5. Scope of the study

This research paper primarily aims to study and research on consumer buying behavior towards two-wheeler

scooters. In the recent past the two wheeler market has rapidly eroded the market share of bikes in Nagpur city. The

scope of study is limited to the consumers of two-wheeler and findings needed by the marketers for new information

useful in strategy and decision making. This paper emphasis and study the factors influencing buying behavior of

two-wheeler scooter and the findings are focused towards the two-wheeler manufactures, dealers and marketers for

future demand forecasting.

6. Data Interpretation and Findings

6.1: Analysis 1: shows the demographic summary of the respondents. The statistics shows that approximately

90% of respondents are above 30 years of age. Most of the respondents are male (72%) and married (85%).

Approximately half of the respondents are employees (43%) & having business (28%) and majority of the

respondents earn a monthly income between Rs. 20,000 to 29,999 (49%) having their own scooter (51%).

The age of the respondents were taken into consideration and categorized as,

Page 10: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 95 Copyright ⓒ 2020 Authors

a. 19-29 years,

b. 30-39 years,

c. 40-49 years &

d. Above 50 years.

The total numbers of respondents were 338. Out of this total, 51% scooter owners were above 40 years and 27%

bike owners were below 40 years.

Table 2: Profile of the Respondents

Parameters Characteristics Responses (In Percentage)

Age 19-29 33 10

30-39 78 23

40-49 156 46

50 & Above 71 21

Gender Male 242 72

Female 96 28

Marital Status Married 286 85

Unmarried 52 15

Occupation Student 64 19

Business 96 28

Labour 32 9

White collar Employee 146 43

Monthly Income Below 9999 13 4

10,000-19,999 46 14

20,000-29,999 156 46

30,000-39,999 99 29

40,000 & Above 24 7

Which type of two-wheeler do you own? Scooter 174 51

Moped 23 7

Bike 92 27

Sport Bike 49 14

Source: Primary Survey data

Page 11: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 96 Copyright ⓒ 2020 Authors

Figure-2: Respondents own brand of Two-wheeler Scooter.

Source: Primary Survey data

6.2: Analysis 2: While assessing the brand of scooter, it has been observed that out of 338 respondents surveyed

majority (29%) own the brand Honda Activa, followed by Suzuki Access (22%) & TVS Jupiter (21%). Likewise

13%, 5%, 4%, 3% 3% respondents own Hero Maestro, Honda Dio, Hero Pleasure, TVS Scooty & Vespa scooters

respectively in Nagpur.

Figure 3: Analysis 3 Influencing elements in purchase decision of two-wheeler

Source: Primary Survey data

6.3: Analysis 3: While assessing the above parameter i.e. influence factor in purchase decision of two-wheeler,

most of the respondents are influenced by friends (35%), work group (23%) family members (17%), reference group

(16%), dealers (6%) and neighbors (4%). This means while taking decision respondents discussed about the overall

performance of the two-wheeler with their friends and work group and take decision.

Figure 4: Family involvements in the process of purchase decision making

0102030405060708090

100

Honda

Activa

Hero

Maestro

Suzuki

Access

Honda

Dio

Hero

Pleasur

e

TVS

Jupiter

TVS

Scooty

Vespa

Series1 99 45 74 17 12 72 10 9

Resp

on

den

ts

0

20

40

60

80

100

120

Family

Members

Friends Work

Groups

Neighbor

s

Dealers Reference

Group

Series1 56 118 78 12 21 53

Resp

on

den

ts

Page 12: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 97 Copyright ⓒ 2020 Authors

Source: Primary Survey data

6.4: Analysis 4: Form the above analysis it shows that in the process of purchase decision making, in Nagpur city

family is involved at the time of budget allocation (33%) followed by brand selection (29%), need identification

(21%), actual purchase (10%) and search for information (7%). This means budget allocation and brand selection

are the major parameters where family involved.

Figure 5: Motivation from Advertising and promotional schemes by two-wheeler dealer

Source: Primary Survey data

6.5: Analysis 5: While analyzing about the impact of advertisement, social media, internet and various

promotional schemes by two-wheeler dealer in Nagpur city it has been observed that out of 338 respondents, 42%

respondents were agreed, 40% respondents were disagreed on the same and 19% were neutral. This shows that there

is mixed reaction from the consumers of Nagpur city as advertising, social media and promotional schemes by two-

wheeler dealer does not impact more to purchase scooter.

Figure 6: Respondents collect information from review, feedback from expert, existing users & internet

before purchasing decision

0

50

100

150

NeedIdentificati

on

Budgetallocation

Search forinformatio

n

Brandselection

Actualpurchase

Series1 72 112 23 97 34

Respondents

0

50

100

150

Agree Neutral Disagree

Series1 141 63 134

Resp

on

den

ts

Page 13: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 98 Copyright ⓒ 2020 Authors

Source: Primary Survey data

6.6: Analysis 6: Advertising has less impact but before purchasing decision, consumers from Nagpur city collect

information from various sources like review on internet, feedback from expert and existing users of scooters. Out of

338 respondents, 77% agreed on the same 16% disagreed and 8% neutral.

Table 3: Factors while purchasing two-wheeler

Sr. No. How do you consider the following factors

while purchasing the Two Wheeler? SA A N DA SDA Total Mean Rank

3 Mileage 67 186 32 41 12 1269 3.75 3

2 Quality and Design 54 221 14 36 13 1281 3.79 2

8 Brand Name & Advertisement 23 154 34 94 33 1054 3.12 8

4 Price 63 172 45 52 6 1248 3.69 4

12 Availability 23 43 56 154 62 825 2.44 12

1 Performance 53 258 9 14 4 1356 4.01 1

6 Guarantee 43 148 78 24 45 1134 3.36 6

7 Low Maintenance 52 142 67 24 56 1133 3.35 7

9 After Sales service 43 87 31 132 45 965 2.86 9

10 Special Offers & Gift 24 76 123 59 56 967 2.86 10

5 Storage Space 64 145 67 49 13 1212 3.59 5

11 Resale value 32 56 98 121 31 951 2.81 11

Source: Primary Survey data

Total = (SA× 5) + (A ×4) + (NO×3) + (DA×2) + (SDA×1)

0

50

100

150

200

250

300

Agree Neutral Disagree

Series1 259 26 53

Resp

on

den

ts

Page 14: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 99 Copyright ⓒ 2020 Authors

Mean=Total Score /No. of respondents Total Score /No. of respondents

Table 2 indicates the ranking of the factor while purchasing the two-wheeler using Likert’s scaling technique.

“Performance” got the first rank with a mean score of 4.01, followed by “Quality & Design” with a mean score of

3.79. The factors “Resale value” and “Availability” got the last ranks 2.81 and 2.44.

Table-4: Reasons for purchasing two-wheeler Scooter

Sr.

No

.

Reasons for

buying a Two

Wheeler

Scooter

1 2 3 4 5 6 7 8 9 10 %

positio

n

Garr

et

Value

Tota

l

Avg.

Scor

e

Rank

1 Easy Handling 67 100 86 34 14 10 9 8 7 3 5 82 22015 65.13 2

2 Status 26 3 11 36 42 37 23 47 49 64 15 70 14314 42.35 8

3 Necessity 23 112 84 49 23 12 11 14 9 1 25 63 20877 61.77 3

4 Comfort 122 64 46 26 21 18 14 12 9 6 35 58 22235 65.78 1

5 Driving Security 26 34 66 54 46 34 15 22 18 23 45 52 18184 53.80 4

6 Time saving 14 5 12 25 97 71 47 24 37 6 55 48 16175 47.86 5

7 Reduce travel

expenses 21 12 3 15 14 38 57 54 62 62

65 42 13425 39.72 9

8 For a Change 12 2 12 23 36 76 88 45 35 9 75 36 15227 45.05 6

9 lack of public

transport 18 1 10 65 33 41 32 28 47 63

85 29 14479 42.84 7

10 Luxury 9 5 8 11 12 1 42 84 65 101 95 18 11393 33.71 10

Source: Primary Survey data

Average Score=Total Score / No. of respondents

Table-3 indicates the ranking of the various reasons for purchasing two-wheeler scooter using Garret ranking

method. The reason “Comfort” ranked first with a mean score of 65.78, followed by “Easy Handling” which ranked

second with a mean score of 65.13 and reasons “Reduce travel expenses” and “Luxury” got the last ranks with a

mean score of 39.72 and 33.71 respectively.

7. Hypothesis testing and Interpretation

7.1. Hypothesis analysis 1

Page 15: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 100 Copyright ⓒ 2020 Authors

Table 5: Composition of age with respondent’s preference for purchasing scooter in two-wheeler category

Age↓/Preference→ Scooter Moped Bike Sport bike Total

19-29 129 14 131 64 338

30-39 143 6 139 50 338

40-49 167 8 121 42 338

50 & Above 207 19 97 15 338

Total 646 47 488 171 1352

Source: Primary Survey data

Table 6: Calculation of Chi-square test

Observed Freq. (O) Expected Freq. (E) O-E (O-E)2 ∑(O-E)2/E

129 161.50 32.50 1056.3 6.54

14 11.75 2.25 5.0625 0.43

131 122.00 9.00 81 0.66

64 42.75 21.25 451.56 10.56

143 161.50 18.50 342.25 2.12

6 11.75 5.75 33.063 2.81

139 122.00 17.00 289 2.37

50 42.75 7.25 52.563 1.23

167 161.50 5.50 30.25 0.19

8 11.75 3.75 14.063 1.20

121 122.00 1.00 1 0.01

42 42.75 0.75 0.5625 0.01

207 161.50 45.50 2070.3 12.82

19 11.75 7.25 52.563 4.47

97 122.00 25.00 625 5.12

15 42.75 27.75 770.06 18.01

1352 1352.00 Total 68.56

Using Chi-square test (χ2), for 9 degree of freedom and 5% (0.05) level of significance, the table value of chi

square is 16.92. The calculated value is 68.56. i.e. χ2Table Value<χ2

Calculated Value. Hence null hypothesis (H0) is rejected

and alternative hypothesis (H1) is accepted. Hence it is concluded that there is relationship between age and

respondent preference for purchasing scooter in two-wheeler category.

Page 16: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 101 Copyright ⓒ 2020 Authors

Table 7: Composition of Gender with respondent’s preference of purchasing scooter in two-wheeler category

Gender↓/Preference→ Scooter Moped Bike Sport bike Total

Male 201 28 66 43 338

Female 274 36 21 7 338

Total 475 64 87 50 676

Source: Primary Survey data

Using Chi-square test (χ2), for 3 degree of freedom and 5% (0.05) level of significance, the table value of chi

square is 7.82. The calculated value is 61.41. i.e. χ2Table Value<χ2

Calculated Value. Hence null hypothesis (H0) is rejected

and alternative hypothesis (H1) is accepted. Hence it is concluded that there is relationship between gender and

respondent preference for purchasing scooter in two-wheeler category

Table 8: Composition of occupation with respondent’s preference of purchasing scooter in two-wheeler

category

Occupation↓/Preference→ Scooter Moped Bike Sport bike Total

Student 154 2 121 61 338

Business 204 7 106 21 338

Labour 176 21 125 16 338

Employee 217 11 95 15 338

Total 751 41 447 113 1352

Source: Primary Survey data

Using Chi-square test (χ2), for 9 degree of freedom and 5% (0.05) level of significance, the table value of chi

square is 16.92. The calculated value is 88.26. i.e. χ2Table Value<χ2

Calculated Value. Hence null hypothesis (H0) is rejected

and alternative hypothesis (H1) is accepted. Hence it is concluded that there is relationship between occupation and

respondent preference for purchasing scooter in two-wheeler category

Table 9: Composition of income with respondent’s preference of purchasing scooter in two-wheeler category

Income↓/Preference→ Scooter Moped Bike Sport bike Total

Below 9999 164 28 137 9 338

10,000-19,999 143 13 139 43 338

20,000-29,999 137 8 144 49 338

Page 17: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 102 Copyright ⓒ 2020 Authors

30,000-39,999 207 3 101 27 338

40,000 & Above 189 1 92 56 338

Total 840 53 613 184 1690

Source: Primary Survey data

Using Chi-square test (χ2), for 12 degree of freedom and 5% (0.05) level of significance, the table value of chi

square is 21.03. The calculated value is 127.03. i.e. χ2Table Value<χ2

Calculated Value. Hence null hypothesis (H0) is rejected

and alternative hypothesis (H1) is accepted. Hence it is concluded that there is relationship between occupation and

respondent preference for purchasing scooter in two-wheeler category.

Considering all the demographic factors i.e. age, gender, occupation and income of the respondents, this

shows that there is significant relationship between the Demographic factors and preference of respondent

for purchasing scooter in two-wheeler category.

6.2 Hypothesis analysis 2:

Table 10: Responses of relationship between credit schemes facilities and satisfaction level of consumers

Parameters Characteristics Responses (In Percentage)

The credit schemes and Installment facilities motivates to

purchase scooter.

Agree 221 65.38

Neutral 54 15.98

Disagree 63 18.64

You are satisfied with the purchase decision of scooter. Agree 173 51.18

Neutral 78 23.08

Disagree 87 25.74

Source: Primary Survey data

Table 11: Observation frequency table

Agree Neutral Disagree Total

The credit schemes and Installment facilities motivates to purchase scooter 221 54 63 338

You are satisfied with the purchase decision of scooter 173 78 87 338

Total 394 132 150 676

Table 12: Calculation of Chi-square test

Page 18: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 103 Copyright ⓒ 2020 Authors

Observed Freq. (O) Expected Freq. (E) O-E (O-E)2 ∑(O-E)2/E

221 197.00 24.00 576 2.92

54 66.00 12.00 144 2.18

63 75.00 12.00 144 1.92

173 197.00 24.00 576 2.92

78 66.00 12.00 144 2.18

87 75.00 12.00 144 1.92

676 676.00 Total 14.05

Using Chi-square test(χ2), for 2 degree of freedom and 5% (0.05) level of significance, the table value of χ2is 5.99.

The calculated value of χ2 is 14.05. This is greater than the tabulated value. Hence null hypothesis (H0) is rejected

and alternative hypothesis (H1) is accepted. Hence it is concluded that there is significance between the motivation

from credit schemes facilities and satisfaction level of Nagpur consumers to purchase scooter.

8. Suggestions

After analyzing the collected data, the following are some of the key suggestions.

a. There is a high demand for scooters in Nagpur market because of the demographic and topographic profile

of the city. The Marketers and dealers of various brands should emphasis on improving supply so as to

meet the demand of consumers.

b. From the hypothesis testing it is proved that consumers of Nagpur are motivated form credit schemes and

installment facilities while some of the respondents suggested improving mileage of scooter for cost cutting

in petrol expenses.

c. All the manufactures of various brands should focus and strive to enhance quality in comport, performance,

features and design of the scooter.

9. Conclusion

Page 19: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 104 Copyright ⓒ 2020 Authors

There are numerous studies available on consumer buying behavior and two wheeler automobile industries. The

researcher through this survey on “Consumer Buying Behavior towards Two-Wheeler Scooters segment: With

Special reference to Nagpur City (Maharashtra, India)” has identified the factors influencing the consumer buying

behavior such as performance, quality & design, mileage, price and storage space. Apart from these factors,

consumers from Nagpur city are also influenced by comfort, easy handling, necessity, driving security and time

saving. Today, the two-wheeler customers are very much concerned about the performance and quality of the

scooters they plan to purchase than any other features. There are various brands in the category of scooter, but in this

study period consumer from Nagpur city mostly preferred Honda Activa, Suzuki Access and TVS Jupiter because of

the above factors.

The researcher also identified that consumers from Nagpur city are not very much influenced by advertisement

and promotional schemes; rather they collect data and information from available sources like internet and peer

reviews, feedback from expert and existing scooter users for purchasing the right choice of two-wheeler scooter.

Family involvement also plays an important role in purchase decision of two-wheeler scooter.

From hypothesis 1 it is clear that there is significant relationship between the Demographic factors and preference of

respondent for purchasing scooter in two-wheeler category. The research paper concludes that most of consumers of

Nagpur city are very much satisfied with the scooters in two-wheeler category.

10. Funding

The author(s) received no financial support for the research, authorship, and/or publication of this article. This

survey on “Consumer Buying Behavior towards Two-Wheeler Scooters segment: With Special reference to Nagpur

City (Maharashtra, India)” was solely conducted by the researchers at their own expenses and time.

References

A. Martin Jayaraj (2017), “A study on consumer behavior towards two wheeler dealers in Coimbatore district ”,IJMRR/April

2017/Volume 7/Issue 4/Article No-3/418-423, http:// ijmrr.com/admin/upload_data/journal_Martin%20%203.pdf

Page 20: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 105 Copyright ⓒ 2020 Authors

C.R. Kothari, Research Methodology: Methods and Techniques (Second revised edition)

Deepak Chawla & Neena Sondhi, Research Methodology: Concept and Cases published by Vikas Publishing house Pvt. Ltd.,

New Delhi. Edition 2011.

Dr. Duggani Yuvaraju & Prof. S. Durga rao (2014), “Customer satisfaction towards Honda two wheelers: A case study in

Tirupati”, IOSR Journal of Business and Management, Volume 16, Issue 5. Ver. I (May 2014), PP 65-74,

http://www.iosrjournals.org/iosr-jbm/papers/Vol16-issue5/Version-1/J016516574.pdf

Dr. Raj A. Jesu Kulandai & Prof. Kaviarasu S. John. (2015), “Household Characteristics and Buying Behaviour of Two-

wheeler Consumers in Chennai City”, Asian Journal of Research in Business Economics and Management, 5 (4), 109-121,

https://shodhganga.inflibnet.ac.in/bitstream/10603/222515/8/08_chapter%202.pdf

http://ijar.org.in/stuff/issues/v4-i4(1)/v4-i4(1)-a004.pdf

http://ijmrr.com/admin/upload_data/journal_Martin%20%203.pdf. (IJMRR/April 2017/ Volume 7/Issue 4/Article No-3/418-

423, ISSN: 2249-7196)

http://www.theinternationaljournal.org/ojs/index.php?journal=rjcbs&page=article&op=download&path%5B%5D=4897&pat

h%5B%5D=pdf.

http://researchersworld.com/ijms/vol5/issue4_9/Paper_20.pdf.

http://www.itpi.org.in/uploads/journalfiles/jul8_10.pdf

https://en.wikipedia.org/wiki/Nagpur

https://shodhganga.inflibnet.ac.in/bitstream/10603/160816/10/10_chapter2.pdf.pdf.

https://transport.maharashtra.gov.in/Site/Upload/GR/Statistics%20Information-2017-18.pdf

https://www.census2011.co.in/census/city/353-nagpur.html#all

Joseph Antony and Dr. Siby Thomas (2017), “A study on factors influencing purchase intention of consumers towards two

wheelers”, International Journal of Advance Engineering and Research Development Volume 4, Issue 5, May -2017,

http://www.ijaerd.com/papers

Kotler, P. and Keller, K.L. (2012) Marketing Management, 14th ed.,Pearson Education, New Jersey,USA.

Kotler, P., Chandler,P.C., Brown, L. and Adam, S. (2003)Marketing: Australia and New Zealand, 3rd ed., pp.136–143,

Prentice Hall, Australia, New York.

Page 21: Padmakar Shahare

Tathapi

(UGC Care Journal)

ISSN: 2320-0693

Vol-19-Issue-21-May-2020

P a g e | 106 Copyright ⓒ 2020 Authors

Priyanka Jain. (2015). A study of customer satisfaction of two-wheelers on Yamaha. IOSR Journal of Business and

Management, 17(8): 08-19.

Prof. Manisha Jagtap & Dr. Anand Deshmukh (2018), “Consumer Behavior Research: A Literature Review”, DOI :

10.18843/ijms/v5i4(9)/20, http://researchersworld.com/ijms/vol5/issue4_9/Paper_20.pdf

Ramaswamy and Namakumari – Marketing Management,TMH publishers,5th edition, pp254-269

S. Suraj Basha and Dr. B.C. Lakshmanaa (2017), “A study on factors influencing consumers’ buying behavior of two

wheelers with special reference to Rayalaseema region, Andhra Pradesh, India”, International Journal of Academic Research,

Vol.4, Issue-4(1), April, 2017, http://ijar.org.in/stuff/issues/v4-i4(1)/v4-i4(1)-a004.pdf