Research Methodology_Group 7_Roll Nos 41-44-48!50!57 (1)

8/9/2019 Research Methodology_Group 7_Roll Nos 41-44-48!50!57 (1)

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ITM BUSINESS SCHOOL,

KHARGHAR, NAVI MUMBAI

Survey of Consumer preferencesFor buying a Motorcycle

Research MethodologyPGDM Batch µA¶

Group 07

Arpit Verma 041

Neha Mishra 044

Zafar Idrisi 048

Arun Thakur 050

Aparna Katiyar 057

The key to success of automobile industry lies on various factors apart from having

good products. Increasing competitiveness in the Indian automobile industry has madealmost all automobile manufacturers have invested valuable resources on customer satisfaction as a tool to understand the needs and expectations of their customers.Increased presence of two-wheeler vehicles throughout the country has created a growingneed for providing service infrastructures, attractive design and higher performance. A studyon customer preference with reference to two-wheeler automobile industry was conducted inKharghar, Navi Mumbai a developing node of the economic hub of India, Mumbai. Primarydata was collected from 245 customers who purchased the motorbikes of various two-wheeler companies.



Survey of Consumer Preferences for Buying A Motorcycle

Introduction

The automobile industry, which is one of the largest industries in India, is one of the key

sectors of the Indian economy. This industry comprises automobile and auto component sectors andencompasses commercial vehicles, multi-utility vehicles, passenger two-wheelers, three-wheelers,tractors and related auto components. India is also being looked upon as the prime businessdestination for many global auto players. India is the world¶s largest motorcycle manufacturer, thesecond largest two-wheeler and tractor manufacturer, the fifth largest commercial vehiclemanufacturer and the fourth largest car market in Asia (the estimate was 1.8 million plus vehicles in2008-09). The automobile industry maintained a steady annual growth rate of over 15% in the lastfour years.

With the gradual liberalization of the automobile sector since 1991, the number of manufacturing facilities in India has grown progressively to 15 manufacturers of passenger cars andmulti-utility vehicles, nine manufacturers of commercial vehicles, 14 manufacturers of two/threewheelers and 14 manufacturers of tractors. The automobile industry performance in the year 2005-06showed encouraging results for all segments of the automobile industry. Two-wheeler segment posteda steady growth of around 14% during 2005-06. The two-wheeler segment witnessed excellent saleswith three leading players [Hero Honda Motors Ltd. (HHML), Bajaj Auto Ltd. (BAL) and TVSMotors Ltd. (TVS)] accounting for more than 90% of the total sales for the financial year 2006. Bajajauto closed the year with an impressive 32% growth (y-o-y) growth. Hero Honda managed areasonably good 14% growth while TVS motors clocked a decent growth of 19%. The demand

continued to be strong and the analysts estimated that motorcycle sales would see a growth of 15 to16% for the financial year 2007.

Management Problem

The Shah automobiles would like to know the factors affecting the market for 2-wheeler automobiles.

For this they need to know the preference of the customers with respect to mileage, engine

displacement, design and new technology. Moreover, identify age group which would have higher

preference for 100 CC and above 200 CC motorcycle, as well as impact of income levels.

Research Objective

Is engine displacement the key decision factor in buying preference of Motorcycle buyers.

Preference of customers on the grounds of mileage, engine displacement, Design, brand

reliability, new technology and pricing.



What percentage of people prefers 100 CC bike and the key features effecting their respective

decision?

Research Variable

Income groups

Age groups

Mileage level expected

Engine Displacement

K ey feature preferred as mileage/design/brand/



Research Questions for each objective.

1) Mark (¥) the range of your family¶s annual income (in Lac Rupees):

1 ± 3 5 ± 73 ± 5 7 ± 1010 ± 20

2) Mark your key preference in buying a 2-wheeler.

MileagePricingStyle or looks (Cruiser or Sport)Horse power/CC/DisplacementBrand reliabilityAfter sale service New Technology

3) Mark the CC/Displacement range you prefer?

100 CC125 ± 150 CCAbove 150 ± 200 CCAbove 200 CC

4) Which Mileage range is manageable for you?

High (above 70 K mpl)

Average (40 ± 70 K mpl)Low (up to ± 40 K mpl)

5) Tick (¥) mark the age range (in Yrs) you fall under.

18 ± 21 31 ± 4021 ± 25 41 ± 5026 ± 30 50 ± 60



Research Questions for Respective objective.

1. Mark (¥) the range of your family¶s annual income (in Lac Rupees):

1 ± 3 (1) 3 ± 5 (2) 5 ± 7 (3) 7 ± 10 (4) 10 ± 20 (5)

o Interval scale ± Parametric data type.

o Bi-variate Statistical Analysis of Differences

o Cross Tabulation ± Chi Square test for goodness of fit

o Analysis of Variance (ANOVA / F-test)

o And Multi-Variate Statistical Analysis of Dependence

o Multiple RegressionFrequency Distribution of Data

Category Frequency Percent Cumulative

Percent

1 56 22.9 22.9

2 79 32.2 55.1

3 40 16.3 71.4

4 43 17.6 89.0

5 27 11.0 100.0

TOTAL 245 100.0

Graphical Representation of Income Groups Data



Cross Tabulation

Chi Square Hypothesis

Hypothesis:

Ho: Preference of the engine displacement does not depend on the income category acustomer falls under.

H1: Buying preference varies with varying income category.

Chi Square Test Results

The critical or the likelihood value (21.269) is less than the calculated Chi square value(21.697) for degree of freedom 12.



From this we can infer that we have to reject the null hypothesis; hence the Income categorystrongly influences the buying preference of engine displacement.

Analysis of Variance (ANOVA)

y Null hypothesis:

y Engine Displacement preference for all income group is same.

y Result:

y calculated F- 4.24

y tabulated F- 3.84

Inference from this

Since Tabulated F < Calculated F, We reject the null hypothesis.

It means that the preference for displacement is different for different income groups.




2. Tick (¥) mark the age range (in Yrs) you fall under.

18 ± 25 (1) 26 ± 30 (2) 31 ± 40 (3) 41 ± 50 (4) 50 ± 60 (5)


o Bi-variate Statistical Analysis


o Analysis of Variance (ANOVA / F-test)

o And Multi-Variate Statistical Analysis

o Multiple Regression

Frequency Distribution of Data

Age Group

Category Frequency Percent

Cumulative

Percent

1 118 48.2 48.2

2 71 29.0 77.1

3 36 14.7 91.8

4 18 7.3 99.2

5 2 .8 100.0

Total 245 100.0



Graphical Representation of Age Groups Data

Cross Tabulation




Hypothesis:

Ho: Preference of the engine displacement does not depend on the age group acustomer falls under.

H1: Buying preference varies with varying age group.


The critical or the likelihood value (21.069) is less than the calculated Chi square value(22.949) for degree of freedom 12.

From this we can infer that we have to reject the null hypothesis; hence the Age groupstrongly influences the buying preference of engine displacement.



Analysis of Variance (ANOVA)

y Null hypothesis:

y CC preference for all Age group is same.

y Result:

y calculated F- 43.95

y tabulated F- 3.84

Inference

Since Tabulated F < Calculated F

We reject the null hypothesis and accept the alternative hypothesis.

It means that displacement preference is different for different age groups.




3. Which Mileage range is manageable for you?

High (above 70 K mpL) (3)

Average (40 ± 70 K mpL) (2)

Low (up to ± 40 K mpL) (1)







Cross Tabulation




Hypothesis:

Ho: Preference of the engine displacement does not depend on the mileage preferencea customer falls under.

H1: Buying preference varies with varying mileage preference.


The critical or the likelihood value (217.708) is less than the calculated Chi square value(232.379a) for degree of freedom 12.

From this we can infer that we have to reject the null hypothesis; hence the Mileage preference strongly influences the buying preference of engine displacement.

Graphical Representation of Pref erred Mileage Range Data




4. Mark your key preference in buying a 2-wheeler.

Mileage (1)

Pricing (2)

Style or looks (Cruiser or Sport) (3)

CC/Engine Displacement (4)

Brand reliability (5)

After sale service (6)

New Technology (7)

o Nominal scale ± Non-Parametric data type.








Graphical Representation of Key Pref erence Data



Comparing Proportions from Two subgroups of one random sample (Using Z

test)

A) A survey was conducted of people from the people to determine if the preference of bike was

consistent between features Displacement and Pricing. A random sample of 245 people

conducted. 18% respondent said that they go for Displacement when they buy a bike while6.5% respondent that they go for pricing when they buy a bike.

"Hypothesis´

Ho: There is no statistically significant difference between the proportion of people

who prefer a bike between according the features Displacement and Pricing.

H1: There is statistically significant difference between the proportion of people who

prefer a bike between according the feature Displacement and Pricing. Set the Rejection Criteria

Use "z-distribution" table to estimate critical value and Alpha=.05, Zcv = 1.96

Test Statistic: Z calculated= 3.885

Results of the Null Hypothesis

Since the test statistic 3.885 exceeds than the critical value of 1.96, we would reject the null

hypothesis and can conclude that there is a statistically significant difference between the proportionsthat buy the bike according the features between CC and Pricing.

B) A survey was conducted of people from the people to determine if the preference of bike was

consistent between features Displacement and Look& Style. A random sample of 245 people

conducted. 18% respondent said that they go for Displacement when they buy a bike while 27.3%

respondent that they go for Looks & Style when they buy a bike.

"Hypothesis´

Ho: There is no statistically significant difference between the proportion of people

who prefer a bike between according the features Displacement and Looks & Style.


prefer a bike between according the feature Displacement and Looks & Style.

Set the Rejection Criteria:

Used "z-distribution" table for estimation of the critical value and taking Alpha = .05, Zcv =1.96



Test Statistic: Z calculated= -2.364


Since the test statistic -2.364 lower than the critical value of -1.96, we would accept the null

hypothesis and can conclude that there is a statistically no significant difference between the

proportions that buy the bike according to the features between CC and Looks & Style.

C) A survey was conducted of people from the people to determine if the preference of bike was

consistent between features Displacement and Mileage. A random sample of 245 people conducted.

18% respondent said that they go for Displacement when they buy a bike while 27.3% respondent

that they go for Mileage when they buy a bike.

"Hypothesis´

Ho: There is no statistically significant difference between the proportion of peoplewho prefer a bike between according the features Displacement and Mileage.


prefer a bike between according the feature Displacement and Mileage.

Set the Rejection Criteria

Use "z-distribution" table to estimate critical value with Alpha = .05, Zcv = 1.96


Results of the Null Hypothesis Since the test statistic -2.364 lower than the critical value of -1.96, we would reject the null

hypothesis and can conclude that there is a statistically significant difference between the proportions

that buy the bike according to the features between CC and Mileage.

D) A survey was conducted of people from the people to determine if the preference of bike was

consistent between features Displacement and Brand Reliability. Random sample of 245 people

conducted. 18% respondent said that they go for Displacement when they buy a bike while 17.6%

respondent that they go for Brand Reliability when they buy a bike.

"Hypothesis´ Ho: There is no statistically significant difference between the proportion of people

who prefer a bike between according the features Displacement and Brand Reliability.


prefer a bike between according the feature Displacement and Reliability.




Use "z-distribution" table to estimate critical value Alpha =.05, Zcv = 1.96

Test Statistic: Z calculated= 0.12

Results of the Null Hypothesis Since the test statistic 0.12 lower than the critical value of 1.96, we would accept the null

hypothesis and can conclude that there is a statistically no significant difference between the

proportions that buy the bike according to the features between CC and Brand Reliability.


5. Mark the CC/Displacement range you prefer?

100 CC

125 ± 150 CC

Above 150 ± 200 CC

Above 200 CC







Graphical Representation of Pref erred Engine Displacement Data

Comparing Proportions from Two subgroups of one random sample (Using Z

test)

A) A survey was conducted of people from the people to determine if the preference of bike was

consistent with CC/Displacement. A random sample of 245 people conducted. For

CC/Displacement 100 cc bike prefer by 20% people and For CC/Displacement 125-150 cc bike

prefer by 37.1% people.

"Hypothesis

Ho: There is no statistically significant difference between the proportion of people who

prefer a 100cc bike and people who prefer 125-150 cc bikes.

H1: There is statistically significant difference between the proportion of people who prefer

a 100cc bike and people who prefer 125-150 cc bikes.

Set the Rejection Criteria and Use "z-distribution" table to estimate critical value taking

Alpha = .05, Zcv = 1.96



Since the test statistic -4.275 lower than the critical value of -1.96, we would accept thenull hypothesis and can conclude that there is a statistically no significant difference between the proportions that prefer the bike of 100 cc with the people who prefer the bike of 125-150 cc.



B) A survey was conducted of people from the people to determine if the preference of bike was

consistent with CC/Displacement. A random sample of 245 people conducted. For

CC/Displacement 100 cc bike prefer by 20% people and For CC/Displacement 150 -200 cc

bikes prefer by 25.7% people.

"Hypothesis´ Ho: There is no statistically significant difference between the proportion of people

who prefer a 100 cc bike and people who prefer 150-200 cc bikes.


prefer a 100 cc bike and people who prefer 150-200 cc bikes.


Use "z-distribution" table to estimate critical value; Taking Alpha =.05, Zcv = 1.96

Test Statistic: Z calculated= -1.51 Results of the Null Hypothesis

Since the test statistic -1.51 exceeds than the critical value of -1.96, we would reject the

null hypothesis and can conclude that there is a statistically significant difference between

the proportions that prefer the bike of 100 cc with the people who prefer the bike of 150-200

cc bike.

Multi-Variate Statistical Analysis - Multiple Regressions



Inf erence

y From the value of R square (0.5838), we can infer that these values have 58.38% effect of

buying preference of engine displacement.

y Age has a significance value of (- 0.00213754) which infers that it has a inverse impact. i.e.

with increasing age group the engine displacement preference is of lower engine capacity.

y Annual Income has a significance value of (0.051370266) which infers that it has a direct

impact. i.e with increasing income group the engine displacement preference is of higher

engine capacity.

Conclusion

y Engine Displacement shows high significance in customer preference; along with pricing and brand reliability. Whereas styling and mileage hold lower significance. New technology andafter sales service have negligible preference.

y It is also observed that age groups influence engine displacement preferences as well.Younger age categories prefer higher engine capacity.

y Income category influence engine displacement buying preference as well. Lower incomegroup prefer lower engine capacity.

Data Sheets

Survey Data Consolidation

Group 7_DataSheet.xlsx

Final sheet.xlsx

Test on Variables

ResearchMethodology_Test.xl

Documents

Research Methodology_Group 7_Roll Nos 41-44-48!50!57 (1)