INTRODUCTION

POST PURCHASE BEHAVIOUR

HISTORY OF CARS

With the invention of the wheel in 4000 BC, man’s journey on the
road of mechanized trans port had begun. Since then he continually sought
to devise an automated, labor saving machine to replace the horse.
In the early 1760’s after several attempts, French Captain, Nicholas J.
Cugnot built the first steam driven tractor. In 1885, Karl Benz & G. Damlier
produced the first vehicle powered by internal combustion engine. Then the
petrol engine was introduced.
Introduction

The study of consumers helps firms and organizations improve their marketing
strategies by understanding issues such as how

• The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
• The psychology of how the consumer is influenced by his or her
environment (e.g., culture, family, signs, media);
• The behavior of consumers while shopping or making other marketing
decisions;
• Limitations in consumer knowledge or information processing abilities
influence decisions and marketing outcome;
• How consumer motivation and decision strategies differ between products
that differ in their level of importance or interest that they entail for the
consumer; and
• How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.

One "official" definition of consumer behavior is "The study of individuals,

groups, or organizations and the processes they use to select, secure, use, and
dispose of products, services, experiences, or ideas to satisfy needs and the

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impacts that these processes have on the consumer and society." Although it is not
necessary to memorize this definition, it brings up some useful points:

• Behavior occurs either for the individual, or in the context of a group (e.g.,
friends influence what kinds of clothes a person wears) or an organization
(people on the job make decisions as to which products the firm should
use).
• Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to
the marketer, because this may influence how a product is best positioned
or how we can encourage increased consumption. Since many
environmental problems result from product disposal (e.g., motor oil being
sent into sewage systems to save the recycling fee, or garbage piling up at
landfills) this is also an area of interest.
• Consumer behavior involves services and ideas as well as tangible
products.

• The impact of consumer behavior on society is also of relevance. For

example, aggressive marketing of high fat foods, or aggressive marketing
of easy credit, may have serious repercussions for the national health and
economy.

There are four main applications of consumer behavior:

• The most obvious is for marketing strategy—i.e., for making better

marketing campaigns. For example, by understanding that consumers are
more receptive to food advertising when they are hungry, we learn to
schedule snack advertisements late in the afternoon. By understanding that
new products are usually initially adopted by a few consumers and only
spread later, and then only gradually, to the rest of the population, we learn
that (1) companies that introduce new products must be well financed so
that they can stay afloat until their products become a commercial success
and (2) it is important to please initial customers, since they will in turn
influence many subsequent customers’ brand choices.

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 • A second application is public policy. In the 1980s, Accutane, a near
miracle cure for acne, was introduced. Unfortunately, Accutane resulted in
severe birth defects if taken by pregnant women. Although physicians
were instructed to warn their female patients of this, a number still became
pregnant while taking the drug. To get consumers’ attention, the Federal
Drug Administration (FDA) took the step of requiring that very graphic
pictures of deformed babies be shown on the medicine containers.
• Social marketing involves getting ideas across to consumers rather than
selling something. Marty Fishbein, a marketing professor, went on
sabbatical to work for the Centers for Disease Control trying to reduce the
incidence of transmission of diseases through illegal drug use. The best
solution, obviously, would be if we could get illegal drug users to stop.
This, however, was deemed to be infeasible. It was also determined that
the practice of sharing needles was too ingrained in the drug culture to be
stopped. As a result, using knowledge of consumer attitudes, Dr. Fishbein
created a campaign that encouraged the cleaning of needles in bleach
before sharing them, a goal that was believed to be more realistic.
• As a final benefit, studying consumer behavior should make us better
consumers. Common sense suggests, for example, that if you buy a 64
liquid ounce bottle of laundry detergent, you should pay less per ounce
than if you bought two 32 ounce bottles. In practice, however, you often
pay a size premium by buying the larger quantity. In other words, in this
case, knowing this fact will sensitize you to the need to check the unit cost
labels to determine if you are really getting a bargain.

There are several units in the market that can be analyzed. Our main thrust in this
course is the consumer. However, we will also need to analyze our own firm’s
strengths and weaknesses and those of competing firms. Suppose, for example,
that we make a product aimed at older consumers, a growing segment. A
competing firm that targets babies, a shrinking market, is likely to consider
repositioning toward our market. To assess a competing firm’s potential threat, we
need to examine its assets (e.g., technology, patents, market knowledge, awareness
of its brands) against pressures it faces from the market. Finally, we need to assess
conditions (the marketing environment). For example, although we may have

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developed a product that offers great appeal for consumers, a recession may cut
demand dramatically.

Consumer Research Methods

Market research is often needed to ensure that we produce what customers really
want and not what we think they want.

Primary vs. secondary research methods. There are two main approaches to
marketing. Secondary research involves using information that others have
already put together. For example, if you are thinking about starting a business
making clothes for tall people, you don’t need to question people about how tall
they are to find out how many tall people exist—that information has already been
published by the U.S. Government. Primary research, in contrast, is research that
you design and conduct yourself. For example, you may need to find out whether
consumers would prefer that your soft drinks be sweater or tarter.

Research will often help us reduce risks associated with a new product, but it
cannot take the risk away entirely. It is also important to ascertain whether the
research has been complete. For example, Coca Cola did a great deal of research
prior to releasing the New Coke, and consumers seemed to prefer the taste.
However, consumers were not prepared to have this drink replace traditional
Coke.

Secondary Methods. For more information about secondary market research

tools and issues.

Primary Methods. Several tools are available to the market researcher—e.g.,

mail questionnaires, phone surveys, observation, and focus groups.

Surveys are useful for getting a great deal of specific information. Surveys can
contain open-ended questions (e.g., “In which city and state were you born?
____________ ) or closed-ended, where the respondent is asked to select
answers from a brief list (e.g., “__Male ___ Female.”� Open ended questions
have the advantage that the respondent is not limited to the options listed, and that
the respondent is not being influenced by seeing a list of responses. However,

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open-ended questions are often skipped by respondents, and coding them can be
quite a challenge. In general, for surveys to yield meaningful responses, sample
sizes of over 100 are usually required because precision is essential. For example,
if a market share of twenty percent would result in a loss while thirty percent
would be profitable, a confidence interval of 20-35% is too wide to be useful.

Surveys come in several different forms. Mail surveys are relatively inexpensive,
but response rates are typically quite low—typically from 5-20%. Phone-surveys
get somewhat higher response rates, but not many questions can be asked because
many answer options have to be repeated and few people are willing to stay on the
phone for more than five minutes. Mall intercepts are a convenient way to reach
consumers, but respondents may be reluctant to discuss anything sensitive face-to-
face with an interviewer.

Surveys, as any kind of research, are vulnerable to bias. The wording of a

question can influence the outcome a great deal. For example, more people
answered no to the question “Should speeches against democracy be allowed? 
than answered yes to “Should speeches against democracy be forbidden?” For
face-to-face interviews, interviewer bias is a danger, too. Interviewer bias occurs
when the interviewer influences the way the respondent answers. For example,
unconsciously an interviewer that works for the firm manufacturing the product in
question may smile a little when something good is being said about the product
and frown a little when something negative is being said. The respondent may
catch on and say something more positive than his or her real opinion. Finally, a
response bias may occur—if only part of the sample responds to a survey, the
respondents  answers may not be representative of the population.

Focus groups are useful when the marketer wants to launch a new product or
modify an existing one. A focus group usually involves having some 8-12 people
come together in a room to discuss their consumption preferences and
experiences. The group is usually led by a moderator, who will start out talking
broadly about topics related broadly to the product without mentioning the
product itself. For example, a focus group aimed at sugar-free cookies might first
address consumers  snacking preferences, only gradually moving toward the
specific product of sugar-free cookies. By not mentioning the product up front,
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we avoid biasing the participants into thinking only in terms of the specific
product brought out. Thus, instead of having consumers think primarily in terms
of what might be good or bad about the product, we can ask them to discuss more
broadly the ultimate benefits they really seek. For example, instead of having
consumers merely discuss what they think about some sugar-free cookies that we
are considering releasing to the market, we can have consumers speak about their
motivations for using snacks and what general kinds of benefits they seek. Such a
discussion might reveal a concern about healthfulness and a desire for wholesome
foods. Probing on the meaning of wholesomeness, consumers might indicate a
desire to avoid artificial ingredients. This would be an important concern in the
marketing of sugar-free cookies, but might not have come up if consumers were
asked to comment directly on the product where the use of artificial ingredients is,
by virtue of the nature of the product, necessary.

Focus groups are well suited for some purposes, but poorly suited for others. In
general, focus groups are very good for getting breadth—i.e., finding out what
kinds of issues are important for consumers in a given product category. Here, it
is helpful that focus groups are completely “open-ended:  The consumer
mentions his or her preferences and opinions, and the focus group moderator can
ask the consumer to elaborate. In a questionnaire, if one did not think to ask about
something, chances are that few consumers would take the time to write out an
elaborate answer. Focus groups also have some drawbacks, for example:

• They represent small sample sizes. Because of the cost of running focus
groups, only a few groups can be run. Suppose you run four focus groups
with ten members each. This will result in an n of 4(10)=40, which is too
small to generalize from. Therefore, focus groups cannot give us a good
idea of:
• What proportion of the population is likely to buy the product.
• What price consumers are willing to pay.
• The groups are inherently social. This means that:
• Consumers will often say things that may make them look good (i.e., they
watch public television rather than soap operas or cook fresh meals for
their families daily) even if that is not true.

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 • Consumers may be reluctant to speak about embarrassing issues (e.g.,
weight control, birth control).

Personal interviews involve in-depth questioning of an individual about his or her

interest in or experiences with a product. The benefit here is that we can get really
into depth (when the respondent says something interesting, we can ask him or her
to elaborate), but this method of research is costly and can be extremely
vulnerable to interviewer bias.

To get a person to elaborate, it may help to try a common tool of psychologists

and psychiatrists—simply repeating what the person said. He or she will often
become uncomfortable with the silence that follows and will then tend to
elaborate. This approach has the benefit that it minimizes the interference with the
respondent’s own ideas and thoughts. He or she is not influenced by a new
question but will, instead, go more in depth on what he or she was saying.

Personal interviews are highly susceptible to inadvertent “signaling  to the

respondent. Although an interviewer is looking to get at the truth, he or she may
have a significant interest in a positive consumer response. Unconsciously, then,
he or she may inadvertently smile a little when something positive is said and
frown a little when something negative is said. Consciously, this will often not be
noticeable, and the respondent often will not consciously be aware that he or she is
being “reinforced  and “punished  for saying positive or negative things, but
at an unconscious level, the cumulative effect of several facial expressions are
likely to be felt. Although this type of conditioning will not get a completely
negative respondent to say all positive things, it may “swing  the balance a bit
so that respondents are more likely to say positive thoughts and withhold, or limit
the duration of, negative thoughts.

Projective techniques are used when a consumer may feel embarrassed to admit to
certain opinions, feelings, or preferences. For example, many older executives
may not be comfortable admitting to being intimidated by computers. It has been
found that in such cases, people will tend to respond more openly about “someone
else.”� Thus, we may ask them to explain reasons why a friend has not yet
bought a computer, or to tell a story about a person in a picture who is or is not

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using a product. The main problem with this method is that it is difficult to
analyze responses.

Projective techniques are inherently inefficient to use. The elaborate context that
has to be put into place takes time and energy away from the main question.
There may also be real differences between the respondent and the third party.
Saying or thinking about something that “hits too close to home  may also
influence the respondent, who may or may not be able to see through the ruse.

Observation of consumers is often a powerful tool. Looking at how consumers

select products may yield insights into how they make decisions and what they
look for. For example, some American manufacturers were concerned about low
sales of their products in Japan. Observing Japanese consumers, it was found that
many of these Japanese consumers scrutinized packages looking for a name of a
major manufacturer—the product specific-brands that are common in the U.S.
(e.g., Tide) were not impressive to the Japanese, who wanted a name of a major
firm like Mitsubishi or Proctor & Gamble. Observation may help us determine
how much time consumers spend comparing prices, or whether nutritional labels
are being consulted.

A question arises as to whether this type of “spying  inappropriately invades

the privacy of consumers. Although there may be cause for some concern in that
the particular individuals have not consented to be part of this research, it should
be noted that there is no particular interest in what the individual customer being
watched does. The question is what consumers—either as an entire group or as
segments—do. Consumers benefit, for example, from stores that are designed
effectively to promote efficient shopping. If it is found that women are more
uncomfortable than men about others standing too close, the areas of the store
heavily trafficked by women can be designed accordingly. What is being reported
here, then, are averages and tendencies in response. The intent is not to find
“juicy  observations specific to one customer.

The video clip with Paco Underhill that we saw in class demonstrated the
application of observation research to the retail setting. By understanding the
phenomena such as the tendency toward a right turn, the location of merchandise

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can be observed. It is also possible to identify problem areas where customers
may be overly vulnerable to the “but brush,  or overly close encounter with
others. This method can be used to identify problems that the customer
experiences, such as difficulty finding a product, a mirror, a changing room, or a
store employee for help.

Online research methods. The Internet now reaches the great majority of
households in the U.S., and thus, online research provides new opportunity and
has increased in use.

One potential benefit of online surveys is the use of “conditional branching.”� In

conventional paper and pencil surveys, one question might ask if the respondent
has shopped for a new car during the last eight months. If the respondent answers
“no,  he or she will be asked to skip ahead several questions—e.g., going
straight to question 17 instead of proceeding to number 9. If the respondent
answered “yes,  he or she would be instructed to go to the next question which,
along with the next several ones, would address issues related to this shopping
experience. Conditional branching allows the computer to skip directly to the
appropriate question. If a respondent is asked which brands he or she considered,
it is also possible to customize brand comparison questions to those listed.
Suppose, for example, that the respondent considered Ford, Toyota, and Hyundai,
it would be possible to ask the subject questions about his or her view of the
relative quality of each respective pair—in this case, Ford vs. Toyota, Ford vs.
Hyundai, and Toyota vs. Hyundai.

There are certain drawbacks to online surveys. Some consumers may be more
comfortable with online activities than others—and not all households will have
access. Today, however, this type of response bias is probably not significantly
greater than that associated with other types of research methods. A more serious
problem is that it has consistently been found in online research that it is very
difficult—if not impossible—to get respondents to carefully read instructions and
other information online—there is a tendency to move quickly. This makes it
difficult to perform research that depends on the respondent’s reading of a
situation or product description.

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Online search data and page visit logs provides valuable ground for analysis. It is
possible to see how frequently various terms are used by those who use a firm’s
web site search feature or to see the route taken by most consumers to get to the
page with the information they ultimately want. If consumers use a certain term
frequently that is not used by the firm in its product descriptions, the need to
include this term in online content can be seen in search logs. If consumers take a
long, “torturous  route to information frequently accessed, it may be
appropriate to redesign the menu structure and/or insert hyperlinks in
“intermediate  pages that are found in many users  routes.

Scanner data. Many consumers are members of supermarket “clubs.”� In return

for signing p for a card and presenting this when making purchases, consumers are
often eligible for considerable discounts on selected products.

Researchers use a more elaborate version of this type of program in some

communities. Here, a number of consumers receive small payments and/or other
incentives to sign up to be part of a research panel. They then receive a card that
they are asked to present any time they go shopping. Nearly all retailers in the
area usually cooperate. It is now possible to track what the consumer bought in all
stores and to have a historical record.

The consumer’s shopping record is usually combined with demographic

information (e.g., income, educational level of adults in the household,
occupations of adults, ages of children, and whether the family owns and rents)
and the family’s television watching habits. (Electronic equipment run by firms
such as A. C. Nielsen will actually recognize the face of each family member
when he or she sits down to watch).

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It is now possible to assess the relative impact of a number of factors on the
consumer’s choice—e.g.,

• What brand in a given product category was bought during the last, or a
series of past, purchase occasions;
• Whether, and if so, how many times a consumer has seen an ad for the
brand in question or a competing one;
• Whether the target brand (and/or a competing one) is on sale during the
store visit;
• Whether any brand had preferential display space;
• The impact of income and/or family size on purchase patterns; and
• Whether a coupon was used for the purchase and, if so, its value.

A “split cable  technology allows the researchers to randomly select half the
panel members in a given community to receive one advertising treatment and the
other half another. The selection is truly random since each household, as
opposed to neighborhood, is selected to get one treatment or the other. Thus,
observed differences should, allowing for sampling error, the be result of
advertising exposure since there are no other systematic differences between
groups.

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Interestingly, it has been found that consumers tend to be more influenced by
commercials that they “zap  through while channel surfing even if they only
see part of the commercial. This most likely results from the reality that one must
pay greater attention while channel surfing than when watching a commercial in
order to determine which program is worth watching.

Scanner data is, at the present time, only available for certain grocery item
product categories—e.g., food items, beverages, cleaning items, laundry
detergent, paper towels, and toilet paper. It is not available for most non-
grocery product items. Scanner data analysis is most useful for frequently
purchased items (e.g., drinks, food items, snacks, and toilet paper) since a series of
purchases in the same product category yield more information with greater
precision than would a record of one purchase at one point in time. Even if
scanner data were available for electronic products such as printers, computers,
and MP3 players, for example, these products would be purchased quite
infrequently. A single purchase, then, would not be as effective in effectively
distinguishing the effects of different factors—e.g., advertising, shelf space,
pricing of the product and competitors, and availability of a coupon—since we
have at most one purchase instance during a long period of time during which
several of these factors would apply at the same time. In the case of items that are
purchased frequently, the consumer has the opportunity to buy a product, buy a
competing product, or buy nothing at all depending on the status of the brand of
interest and competing brands. In the case of the purchase of an MP3 player, in
contrast, there may be promotions associated with several brands going on at the
same time, and each may advertise. It may also be that the purchase was
motivated by the breakdown of an existing product or dissatisfaction or a desire to
add more capabilities.

Physiological measures are occasionally used to examine consumer response. For

example, advertisers may want to measure a consumer’s level of arousal during
various parts of an advertisement. This can be used to assess possible discomfort
on the negative side and level of attention on the positive side.

By attaching a tiny camera to plain eye glasses worn by the subject while
watching an advertisement, it is possible to determine where on screen or other ad
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display the subject focuses at any one time. If the focus remains fixed throughout
an ad sequence where the interesting and active part area changes, we can track
whether the respondent is following the sequence intended. If he or she is not, he
or she is likely either not to be paying as much attention as desired or to be
confused by an overly complex sequence. In situations where the subject’s eyes
do move, we can assess whether this movement is going in the intended direction.

Mind-reading would clearly not be ethical and is, at the present time, not possible
in any event. However, it is possible to measure brain waves by attaching
electrodes. These readings will not reveal what the subject actually thinks, but it
is possible to distinguish between beta waves—indicating active thought and
analysis—and alpha waves, indicating lower levels of attention.

An important feature of physiological measures is that we can often track

performance over time. A subject may, for example, be demonstrating good
characteristics—such as appropriate level of arousal and eye movement—during
some of the ad sequence and not during other parts. This, then, gives some
guidance as to which parts of the ad are effective and which ones need to be
reworked.

In a variation of direct physiological measures, a subject may be asked, at various

points during an advertisement, to indicate his or her level of interest, liking,
comfort, and approval by moving a lever or some instrument (much like one
would adjust the volume on a radio or MP3 player). Republican strategist used
this technique during the impeachment and trial of Bill Clinton in the late 1990s.
By watching approval during various phases of a speech by the former President,
it was found that viewers tended to respond negatively when he referred to
“speaking truthfully  but favorably when the President referred to the issues in
controversy as part of his “private life.”� The Republican researchers were able
to separate average results from Democrats, Independents, and Republicans,
effectively looking at different segments to make sure that differences between
each did not cancel out effects of the different segments. (For example, if at one
point Democrats reacted positively and Republicans responded negatively with the
same intensity, the average result of apparent indifference would have been very
misleading).
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Research sequence. In general, if more than one type of research is to be used,
the more flexible and less precise method—such as focus groups and/or individual
interviews—should generally be used before the less flexible but more precise
methods (e.g., surveys and scanner data) are used. Focus groups and interviews
are flexible and allow the researcher to follow up on interesting issues raised by
participants who can be probed. However, because the sample sizes are small and
because participants in a focus group are influenced by each other, few data points
are collected. If we run five focus groups with eight people each, for example, we
would have a total of forty responses. Even if we assume that these are
independent, a sample size of forty would give very imprecise results. We might
conclude, for example, that somewhere between 5% and 40% of the target market
would be interested in the product we have to offer. This is usually no more
precise than what we already reasonably new. Questionnaires, in contrast, are
highly inflexible. It is not possible to ask follow-up questions. Therefore, we can
use our insights from focus groups and interviews to develop questionnaires that
contain specific questions that can be asked to a larger number of people. There
will still be some sampling error, but with a sample size of 1,000+ responses, we
may be able to narrow the 95% confidence interval for the percentage of the target
market that is seriously interested in our product to, say, 17-21%, a range that is
much more meaningful.

Cautions. Some cautions should be heeded in marketing research. First, in

general, research should only be commissioned when it is worth the cost. Thus,
research should normally be useful in making specific decisions (what size should
the product be? Should the product be launched? Should we charge $1.75 or
$2.25?)

Secondly, marketing research can be, and often is, abused. Managers frequently
have their own “agendas  (e.g., they either would like a product to be launched
or would prefer that it not be launched so that the firm will have more resources
left over to tackle their favorite products). Often, a way to get your way is to
demonstrate through “objective  research that your opinions make economic
sense. One example of misleading research, which was reported nationwide in the
media, involved the case of “The Pentagon Declares War on Rush Limbaugh.”�

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The Pentagon, within a year of the election of Democrat Bill Clinton, reported that
only 4.2% of soldiers listening to the Armed Forces Network wanted to hear Rush
Limbaugh. However, although this finding was reported without question in the
media, it was later found that the conclusion was based on the question “What
single thing can we do to improve programming?”� If you did not write in
something like “Carry Rush Limbaugh,  you were counted as not wanting to
hear him.

Culture and Subculture

NOTE: This topic is also discussed in the International Marketing section of this
site.

Culture is part of the external influences that impact the consumer. That is, culture
represents influences that are imposed on the consumer by other individuals.

The definition of culture offered in one textbook is “That complex whole which
includes knowledge, belief, art, morals, custom, and any other capabilities and
habits acquired by man person as a member of society.”� From this definition,
we make the following observations:

• Culture, as a “complex whole,  is a system of interdependent

components.
• Knowledge and beliefs are important parts. In the U.S., we know and
believe that a person who is skilled and works hard will get ahead. In other
countries, it may be believed that differences in outcome result more from
luck. “Chunking,  the name for China in Chinese, literally means “The
Middle Kingdom.”� The belief among ancient Chinese that they were in
the center of the universe greatly influenced their thinking.
• Other issues are relevant. Art, for example, may be reflected in the rather
arbitrary practice of wearing ties in some countries and wearing turbans in
others. Morality may be exhibited in the view in the United States that one
should not be naked in public. In Japan, on the other hand, groups of men
and women may take steam baths together without perceived as improper.
On the other extreme, women in some Arab countries are not even allowed

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 to reveal their faces. Notice, by the way, that what at least some countries
view as moral may in fact be highly immoral by the standards of another
country. For example, the law that once banned interracial marriages in
South Africa was named the “Immorality Act,  even though in most
civilized countries this law, and any degree of explicit racial prejudice,
would itself be considered highly immoral.

Culture has several important characteristics: (1) Culture is comprehensive. This

means that all parts must fit together in some logical fashion. For example,
bowing and a strong desire to avoid the loss of face are unified in their
manifestation of the importance of respect. (2) Culture is learned rather than
being something we are born with. We will consider the mechanics of learning
later in the course. (3) Culture is manifested within boundaries of acceptable
behavior. For example, in American society, one cannot show up to class naked,
but wearing anything from a suit and tie to shorts and a T-shirt would usually be
acceptable. Failure to behave within the prescribed norms may lead to sanctions,
ranging from being hauled off by the police for indecent exposure to being
laughed at by others for wearing a suit at the beach. (4) Conscious awareness of
cultural standards is limited. One American spy was intercepted by the Germans
during World War II simply because of the way he held his knife and fork while
eating. (5) Cultures fall somewhere on a continuum between static and dynamic
depending on how quickly they accept change. For example, American culture
has changed a great deal since the 1950s, while the culture of Saudi Arabia has
changed much less.

Dealing with culture. Culture is a problematic issue for many marketers since it
is inherently nebulous and often difficult to understand. One may violate the
cultural norms of another country without being informed of this, and people from
different cultures may feel uncomfortable in each other’s presence without
knowing exactly why (for example, two speakers may unconsciously continue to
attempt to adjust to reach an incompatible preferred interpersonal distance).

Warning about stereotyping. When observing a culture, one must be careful not
to over-generalize about traits that one sees. Research in social psychology has
suggested a strong tendency for people to perceive an “outgroup  as more
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homogenous than an “ingroup,  even when they knew what members had been
assigned to each group purely by chance. When there is often a “grain of truth 
to some of the perceived differences, the temptation to over-generalize is often
strong. Note that there are often significant individual differences within cultures.

Cultural lessons. We considered several cultural lessons in class; the important

thing here is the big picture. For example, within the Muslim tradition, the dog is
considered a “dirty  animal, so portraying it as “man’s best friend  in an
advertisement is counter-productive. Packaging, seen as a reflection of the quality
of the “real  product, is considerably more important in Asia than in the U.S.,
where there is a tendency to focus on the contents which “really count.”� Many
cultures observe significantly greater levels of formality than that typical in the
U.S., and Japanese negotiator tend to observe long silent pauses as a speaker’s
point is considered.

Cultural characteristics as a continuum. There is a tendency to stereotype

cultures as being one way or another (e.g., individualistic rather than
collectivistic). Note, however, countries fall on a continuum of cultural traits.
Hofstede’s research demonstrates a wide range between the most individualistic
and collectivistic countries, for example—some fall in the middle.

Hofstede’s Dimensions. Gert Hofstede, a Dutch researcher, was able to interview

a large number of IBM executives in various countries, and found that cultural
differences tended to center around four key dimensions:

• Individualism vs. collectivism: To what extent do people believe in

individual responsibility and reward rather than having these measures
aimed at the larger group? Contrary to the stereotype, Japan actually ranks
in the middle of this dimension, while Indonesia and West Africa rank
toward the collectivistic side. The U.S., Britain, and the Netherlands rate
toward individualism.
• Power distance: To what extent is there a strong separation of individuals
based on rank? Power distance tends to be particularly high in Arab
countries and some Latin American ones, while it is more modest in
Northern Europe and the U.S.

17
 • Masculinity vs. femininity involves a somewhat more nebulous concept.
“Masculine”� values involve competition and “conquering  nature by
means such as large construction projects, while “feminine  values
involve harmony and environmental protection. Japan is one of the more
masculine countries, while the Netherlands rank relatively low. The U.S.
is close to the middle, slightly toward the masculine side. ( The fact that
these values are thought of as “masculine  or “feminine  does not
mean that they are consistently held by members of each respective gender
—there are very large “within-group  differences. There is, however,
often a large correlation of these cultural values with the status of women.)
• Uncertainty avoidance involves the extent to which a “structured 
situation with clear rules is preferred to a more ambiguous one; in general,
countries with lower uncertainty avoidance tend to be more tolerant of
risk. Japan ranks very high. Few countries are very low in any absolute
sense, but relatively speaking, Britain and Hong Kong are lower, and the
U.S. is in the lower range of the distribution.

Although Hofstede’s original work did not address this, a fifth dimension of long
term vs. short term orientation has been proposed. In the U.S., managers like to
see quick results, while Japanese managers are known for take a long term view,
often accepting long periods before profitability is obtained.

18
INDUSTRY DEVELOPMENT

The first motor car on the Indian street was seen in 1898. Mumbai
had its 1st taxicabs in the early 1900. Then for the next fifty years, car was
imported to satisfy domestic demand. In 1946, Premier Automobile Ltd.
(PAL) manufactured the 1st car in country. HM started as a manufacturer of
auto components & then started manufacturing cars in 1949.

In 1952, Govt. Of India set up a tariff commission to devise

regulation to develop an indigenous automobile industry in the country.
After the commission submitted its recommendation, the GOI asked
assembly plants which did not have plans to setup manufacturing facilities,
to shut down operations. As a result General Motors, Ford & other
assembler closed operations in the country. Upto the early 1982 proved to
be the ‘dark age’ for the consumer, as his choice throughout this period
was limited to two models i.e. Ambassador & Padmini. It was only in 1985,
after the entry of Maruti Udyog, that the carmakers were given a free hand
to fix the prices of the car.

The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd.,
the joint venture with Suzuki Motors Ltd. Of Japan. MUL introduced
Maruti 800 in 1983 providing a complete facelift to the Indian car
industry. The car was launched as a “People’s Car”

Analyzing what happens after a sale is as important as understanding

what causes consumer to buy in the first place. In fact because this is an
analysis of actual rather than potential customers and purchase situations,
marketers consider post-purchase behavior of primary importance in its
impact on future sales. Analyzing both positive & negative post-purchase
behavior is a very effective means through which goods & services can be
improved, promotions better targeted & strategies reshaped both to keep
current customers & to new ones like them.

19
 Post-purchase behaviour is analyzed after selling goods & services. In
this the marketer takes the views of the consumers for a particular good or
service. We can also call it as feedback from consumers to make goods and
services more effective & maintaining good & long term relations b/w
consumers & marketer. In present scenario customer is the king & marketer
can’t neglect them.

The post-purchase behaviour plays an important part in developing a

relationship between the customer and the marketer. In this, the marketer
identifies with his customers & thinks from customer’s prospective. If
purchase represents customers consumption motives & purposes, the post-
purchase behaviour indicates whether or not those purposes & motives have
been achieved. Thus, purchase activity is the means while post-purchase is
an evaluation.

Post-purchase behaviour is of two types:-

1. Positive post-purchase behaviour.

2. Negative post-purchase behaviour.

POSITIVE POST-PURCHASE BEHAVIOUR

The most positive outcome from achieving customer satisfaction is to

gain loyalty. Loyalty, in its simplest sense, is to a product, brand, marketer
that results in his levels of repeat purchase. Consumers might purchase the
same brand due to some another reasons, but unless there commitment, they
are not considered as loyal. When the consumers are satisfied with the
product and have good opinion about the product & the brand it shows their
positive post-purchase behavior.

20
NEGATIVE POST-PURCHASE BEHAVIOUR

Negative post-purchase behavior takes several forms, each of which

can erode brand & outlet loyalty & diminish customer satisfaction. Some
negative behavior are – such as the lack of taking services or not guiding to
other potential customers, producing more & more complaints. These may be
very harmful for an organization because it can damage the reputation of
the company & also can decrease the sale of the product. It can be caused
due to following reasons-

• Negative Word-of-Mouth.
• Rumor.
• Complaint Behavior.

POST-PURCHASE USE & DISPOSAL

Marketer should also monitor how the buyer use and dispose the product. If
consumers find a new use for the product and that should interest the
marketer because this use can be advertised. If consumers are not using the
product it means product is not satisfying.

The formation of satisfaction or dissatisfaction is, however a function

of many factors. These factors are as follows-

 Use, occasion of product.

 Prior experience of product.
 Personal expectation & norms.
 Time tag b/w the choice and use of the product.
 Cultural norms.
 Group norms.

21
 PURCHASE PROCESS

Need Recognition

Pre-purchase
Activity Information Search

Evaluation of Alternatives

Purchase Process Purchase

Post-purchase Post-purchase
Behavior

22
 SIGNIFICANCE OF THE STUDY

Their main motive is to attract the customers. To attract the customers they
providing extra benefits to the customers i.e. finance , free insurance, free
tours, gifts etc. Indian car industry is trying to bring the dream machine for
all type of customers.

Today there is boom in car industry. Many of the car companies are
launching new models within every six month.

 Maruti is market leader with his 10 models & big chain of service
station &
dealers.
 Tata having 4 models & passenger cars,
 Ford has 4 models,
 GM has 3 models,
 Opel has 4 models,
 Fiat has 2 models,
 Hyundai has 6 models,
 Toyota has 3 models in the market.

23
 REVIEW OF THE EXISTING LITERATURE

Many of researches have been done on the automobile industry as it

is the most dynamic area. Automobile industry is growing very fastly in
India. Reasons for this are high purchasing power or more disposable
income, changing life style, govt. policies, easy loan availability, competition
among companies, new entrances through joint ventures, mergers etc. To
understand the consumer’s wants or expectations from any company these
researches have been conducted.

(Batra & Kazmi, 2004)

Analyzing consumer behaviour is perceived as cornerstone of a successful
marketing strategy (Papers4you.com, 2006). Consumer behaviour is ‘the mental
and emotional processes and the observable behaviour of consumers during
searching purchasing and post consumption of a product and service. Similarly
Engel (et al, 1990) refers consumer behaviour as the action and decision process
of people who purchase goods and services for personal consumption.

Now if these defining criteria are closely observed, it is evident that analyzing
consumer’s decision making process is the foundation of entire notion of
consumer behaviour.

There are four different views related to consumer decision making process and
behaviour (Schiffman & Kanuk, 2004). It is argued that first of them is ‘economic
view’ that consumers are primarily facing imperfect competition and they are
always expected to make rational decision on the basis of assumptions that they
are aware of all product alternatives, they can rank benefits and limitation of each
alternative and are able to identify one best alternative. Second ‘Passive View’ is
absolutely opposite to economic view and suggests that consumers are irrational
and impulsive as they are submissive to self-centered interests of marketers and
got influenced by marketing tools. Similarly third, ‘ Emotional View’ is related to
perceive consumer’s decision making based on their emotional association or
feeling about some products and services. For instance, a person loosing red

24
colour specific pen neither go for rational decision by evaluating alternatives
( economic view) nor will the person get influenced by marketers ( passive view).
Rather the person will try to purchase any pen closely resembled with his
favourite possession. Fourth and arguably most acknowledged view is ‘Cognitive
View’ where consumers are considered as “thinking problem solver’ which are
receptive as well as actively searching for the products and services that can fulfil
their need. Consumer’s behaviour under this view is based on information seeking
and processing attributes usually directed by a goal. For instance, buying a tooth
paste from shop can have a certain goal of choosing product that can taste good
(Papers4you.com, 2006).

Despite of critiques for each viewpoint, it can be considered a valid argument, that
all four types of decision making behaviour exist and provide marketer guidelines
to analyze consumer accordingly.

Based on general perception about most acknowledged and common ‘cognitive

view’, Batra & Kazmi (2004) asserts broader stages of a consumer’s decision
making process that includes problem identification (feeling need of a new car),
information search ( on internet and showrooms), evaluation of alternatives
(comparing brands, for instance’ on basis of repute and features), outlet selection
and purchase ( purchasing selected item) and post-purchase action (satisfaction or
dissonance).

The discussion may be concluded on the notion that no matter which view point
out of four discussed above is common; it is an imperative fact that marketers
have to realize existence of all of them to analyze consumer behaviour effectively.
It has been recognised that eco-efficiency improvements at production and product
design level can be significantly reduced or totally negated by rebound effect from
increased consumption levels. In line with this problem factor 10 to 20 material
and energy efficiency improvements have been suggested (Factor 10 Club 1994;
Schmidt-Bleek 1996; Bolund, Johansson et al. 1998; Ryan 1998). The
improvements, however, if not carefully done, may still lead to rebound effects
through changes in resource prices.

25
As a potential solution to the factor 10/20 vision, system level improvements have
to be made, contrary to redesigning individual products or processes.

(Weterings and Opschoor 1992; Vergragt and Jansen 1993; von Weizsäcker,
Lovins et al. 1997; Ryan 1998; Manzini 1999; Brezet, Bijma et al. 2001;
Ehrenfeld and Brezet 2001).
The product service system (PSS) concept has been suggested as a way to
contribute to this system level improvement (Goedkoop, van Halen et al. 1999;
Mont 2000). Here the environmental impacts of products and associated services
could be addressed already at the product and service design stage. Special focus
should be given to the use phase by providing alternative system solutions to
owning products.
A number of examples in the business-to-business (B2B) area exist that confirm
the potential of PSS for reducing life cycle environmental impact. It is, however,
increasingly evident that business examples are difficult to directly apply to the
private consumer market. Private consumers, contrary to businesses, prefer
product ownership to service substitutes (Schrader 1996; Littig 1998). Even if
accepted, the environmental impacts of “servicised products” offers depend to a
large extent on consumer behaviour.
To address this problem, either behavioural or service system design changes are
needed. Changing human behaviour and existing lifestyles contributes to the vision
of sustainable development, but at the same time, it is an extremely difficult and
time-consuming process. A potentially easier way is changing the design of the
product-service system to reduce behavioural pitfalls. In order to change system
design, it is necessary to understand how consumer acceptance of more
sustainable solutions is formed, influenced or changed, what are the influencing
factors and what are the leverage points for best results with lowest costs.
Understanding consumer perceptions and behaviour in this context is crucial.

CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature in a range of different disciplines exists on
consumption, consumer behaviour, and consumer decision- making process.
Research in economics, business, marketing, psychology and sociology domains

26
studies consumer behaviour from different theoretical premises: “for economists,
consumption is used to produce utility; for sociologists, it is a means of
stratification; for anthropologists – a matter of ritual and symbol;
for psychologists – the means to satisfy or express physiological and emotional
needs; and for business, it is a way of making money”(Fine 1997).
For more than a decade now, a range of studies that address environmentally sound
consumer behaviour, e.g. car use, waste sorting, minimisation and recycling
practices, have been conducted. However, few studies evaluated consumer
acceptance of the PSS concept – a consumption based on non-ownership of
physical products, see, for example, studies on car sharing schemes (Schrader
1999; Meijkamp 2000), ski rental and washing services (Hirschl, Konrad et al.
2001).
One reason explaining the lack of studies in the area could be that, there are still
not many PSS schemes in place to serve as test grounds. Another reason could be
uniformity of research focus. Most of consumer research focused on adopter
categories, habits, attitudes and intentions, rather than on actually measuring the
satisfaction level with the service. The reason is probably that PSS ideas have been
promoted by researchers from the environmental management, marketing, design,
and engineering fields, and to a lesser extent by sociologists, who hold the banner
of research in customer satisfaction.
CONSUMER SATISFACTION PROCESS
The paramount goal of marketing is to understand the consumer and to influence
buying behaviour. One of the main perspectives of the consumer behaviour
research analyses buying behaviour from the so-called “information processing
perspective" (Holbrook and Hirschman 1982). According to the model, customer
decision-making process comprises a need-satisfying behaviour and a wide range
of motivating and influencing factors. The process can be depicted in the
following steps (Engel, Blackwell et al. 1995):
Need recognition – realisation of the difference between desired situation and the
current situation that serves as a trigger for the entire consumption process.
Search fo r information - search for data relevant for the purchasing decision, both
from internal sources (one's memory) and/or external sources.

27
 • Pre-purchase alternative evaluation - assessment of available choices that
can fulfil therealised need by evaluating benefits they may deliver and
reduction of the number ofoptions to the one (or several) preferred.
• Purchase - acquirement of the chosen option of product or service.
• Consumption - utilisation of the procured option.
• Post-purchase alternative re-evaluation - assessment of whether or not and
to what degree the consumption of the alternative produced satisfaction.
• Divestment - disposal of the unconsumed product or its remnants.
Besides the information processing perspective, marketing analyses consumer
behaviour by employing a psychologically grounded concept of attitudes
(Balderjahn 1988; Ronis, Yates et al. 1989; Luzar and Cosse 1998). It is consumer
attitudes that are usually named as the major factor in shaping consumer behaviour
and a wealth of studies is available on the topic of how attitudes can predict
behaviour.
INTER -DISCIPLINARITY OF CONSUMER RESEARCH
Different research disciplines diverge in their presuppositions about human nature,
factors influencing consumer behaviour, market response, etc. Therefore, they
naturally employ different research approaches. However, despite that seemingly
insurmountable abyss between disciplines, we see that many research topics and
methods overlap, and that there is
no clear-cut line between different domains of consumer research. Many
consumption-related issues are being increasingly addressed from interdisciplinary
or multidisciplinary perspectives.
Many interdisciplinary concepts and factors are of interest for research on
consumer satisfaction with eco-efficient services and PSS. Contrary to the
suggestions from many traditional neoclassical theories, consumption patterns are
very flexible and prone to various influences. Today consumer behaviour is
increasingly dynamic as the choice of alternatives increases with the growth of
global markets. The complexity of the decision- making process and a large
number of influencing factors suggest that changing consumer behaviour towards
more sustainable consumption is a challenging process, which requires
coordination at individual and societal level.

28
The area of PSS and eco-efficient services is still developing. Further efforts are
required in order to understand relations between the functional and emotional
needs of customers.
DIFFERENT LEVELS OF COMPLEXITY
When evaluating satisfaction with a product, customers initially assess tangible
features of the product. In the service context, the features, though observable, are
considerably less tangible and are thus more difficult to assess. A product service
system comprises four components (products, services, infrastructures, and
networks), rendering the evaluation process of consumer satisfaction even more
complex (Mont 2000). Here the part of the system, with which the customer comes
into direct contact, is larger than in the case of a pure product or service, which has
implications for customer evaluation process. In the case of PSS or eco-services,
customers are exposed to both dimensions: product and service. In addition, due to
closer relations with the service provider, customers can even become exposed to
infrastructure and networks that support PSS delivery. Therefore, in the PSS
context, an evaluation of all four PSS components becomes relevant:
• Product evaluation is conducted by assessment of products or technologies.
• Person-based or other types of services (technical, information and
knowledge services) that are included into PSS may be evaluated.
• Infrastructure can be evaluated when the customer comes into contact with
enabling supporting technology, or by evaluation of ambient conditions,
spatial layout or by evaluating signs and artefacts of the PSS.
• Networks, are not usually exposed to the customer, but in some cases may
be evaluated when they come into contact with customers.
• RESEARCH FRAMEWORKS AND METHODS
A great variety of methods and frameworks for understanding and evaluating
consumer acceptance and satisfaction are used in different disciplines. The study
has discussed the following frameworks: Kano model of customer satisfaction, the
Innovation diffusion of Rogers, the service quality model of Grönsroos, and
SERVQUAL model by Parasuraman.
The study has also surveyed a range of tools used for evaluating and measuring
consumer satisfaction. These included surveys, in-depth interviews, focus group
interviews, observations, mystery shopping, and psychographic portrait of

29
customers. A number of drawbacks and benefits pertaining to the tools have been
pointed out and discussed. Both the research models and the tools, while diverse to
a different extent, were found to be useful for application in the PSS research area.

The environmental impacts of ever increasing consumption throughout the world

have been recently recognised. Many solutions have been proposed to combat the
rising levels of consumption. One of the concepts suggested as a potential solution
to reduce consumption levels is the concept of product-service systems (PSS).
The concept proved to be viable in the business-to-business context. However, in
the private consumer markets, it has been less successful, both in terms of
economic viability and environmental impact reduction. User behaviour has been
named as the primary reason for this situation.
To address this problem, either behavioural or service system design changes are
needed. Changing human behaviour and existing lifestyles contribute to the vision
of sustainable development, but it proves to be an insurmountable task over a short
period of time.
Alternatively, changing the design of product-service system to reduce the
behavioural pitfalls could be a potentially easier way towards sustainable
development. Changing system design requires understanding how consumer
acceptance of more sustainable solutions is formed, influenced or changed, what
are the influencing factors and what are the leverage points for the best results
with lowest costs. Understanding consumer perceptions and behaviour in this
context is crucial.
However, the consumer decision-making process is much more complex and
intricate than just a simple decision about shifting from owning a product towards
paying per use of it. Throughout this study we demonstrated that products are not
seen purely for their functional features, but rather products are complex
combinations of various attributes, which, together with functionality, also bring
status, serve as a key to a certain social class, reinforce self-esteem, and much-
much more.
Therefore, the goal of this study was to take a step towards a better understanding
of the complexity of the phenomena we are aiming to change. We did that by
looking at how different disciplines perceive the consumption process in general
and the consumer decision-making process in particular. We saw the wealth of
30
theories and frameworks being developed trying to solve this puzzle. We then
looked closer at the potentially most promising models, which could prove useful
in understanding the consumer decision- making process in the context of
ownerless consumption.
We also found some useful tools, which can be employed for collecting
information about and from consumers. Identified frameworks and tools were then
evaluated for suitability in the PSS context. We also provided some suggestions
and examples for how several presented models could be operationalised in the
PSS context.
Some important lessons were learned from this study:
• The consumer is a moody creature – swinging between rationality and
emotional behaviour.
• All disciplines we looked at addressed consumption from some
perspective. This perspective may be unique to this discipline, or may
share common premises with other disciplines. Cross- fertilisation and
learning is the key to success.
• The challenge is not in the availability of analysis tools, but in analysis
frameworks, which would allow us to speak the same language as our
system and understand it better. We can probably employ just one tool to
measure customer satisfaction with our system.
But it is multifaceted and thus a combination of tools is more promising. PSS is a
system, comprised of products, services, infrastructures, and networks. The
criteria we want to evaluate this system against should include attributes of each
dimension. PSS is a multi-disciplinary area and initiating system level change will
require system level effort. Researchers with various backgrounds need to be
involved in developing ideas and methods for measuring customer satisfaction
with PSS. “Non-social” PSS practitioners should learn methods of social sciences.

31
The study of consumption is increasingly enriched by a growing number of
contributions. The purpose of this section is to provide a selective sampling of
literature that deals with issues or methods, which might be applicable for
studying the field of product-service systems. It is far from an overview of how
consumption has been studied by different disciplines. Instead, the intention is to
select useful sources and draw methodological and theoretical lessons, rather than
to provide a thorough literature analysis.
This section provides a selective presentation of how consumption and consumer
behaviour is studied and explained by economics, business and marketing studies,
social, and psychological research. The disciplines differ in their presuppositions
about the human nature, influencing factors of consumer behaviour, and market
response. They also employ different research methods, some of which will be
described in the following sections. Despite that seemingly insurmountable abyss
between disciplines, we will see that many research topics overlap, and that
obviously there is no clear-cut line between different domains of consumer
research. In addition, a lot of consumption related issues have been addressed
from an interdisciplinary or multidisciplinary perspective. As Ackerman puts it, “a
new interdisciplinary area of research on consumption has emerged in the last 10-
15 years, drawing contributions and participants from sociology, anthropology,
history, philosophy, literature, and marketing - even, on occasion, from
economics” (Ackerman 1997).

Figure 2 Disciplines that study consumption and consumer behaviour

3.1 Business and marketing domain
This section provides a summary of the current understanding of consumer
behaviour based on the overview of the existing body of business literature on the
subject. Special focus is given to the formation of consumer needs and attitudes,
information processing and the decision- making process within the purchasing

32
decision. The ultimate goal of this decision-making process is satisfaction of
consumer needs. This section helps the reader understand different stages in the
consumer decision process and distinguish between the notions of customer
acceptance and customer satisfaction. It provides background to the following
sections, which analyse consumption and consumer behaviour from the point of
view of different disciplines.
Business management and marketing are concerned with ways of satisfying and
retaining customers for the purpose of generating profits, improving companies’
competitiveness and securing market share. Some of the major themes in the
business management domain include studies of customer relationship marketing,
which analyses how customer satisfaction
relates to competitiveness and profits, methods for measuring customer
satisfaction (Thomson 1995), and approaches that can help transfer customer
satisfaction data into strategies for improvement of customer relations and their
retention (Reidenbach and McClung 1998), (Johnson and Gustafsson 2000),
(Schellhase, Hardock et al. 2000).
The paramount goal of the marketing domain is to understand the consumer and to
influence buying behaviour. One of the main perspectives of the consumer
behaviour research analyses buying behaviour from the so-called “information
processing perspective” (Holbrook and Hirschman 1982). The basic concept is
derived from the model of the consumer’s decision-making process, suggested by
Dewey (1910) and adapted by Simon (1955), that includes the following major
steps: problem recognition, search, alternative evaluation, choice and outcomes
(Dewey 1910), (Simon 1955).
1. Need recognition – realisation of the difference between desired situation and
the current situation that serves as a trigger for the entire consumption
process.This process depends on the difference between the desired and the
current state of affairs. Several factors can influence this process: changed
circumstances, time, new product purchase, and consumption that trigger the need
for other products. Once a certain threshold of this discrepancy is exceeded, the
need is recognised. However, to trigger the action, the need should be considered
as important and the need satisfaction should be within a person’s resources (e.g.
time, money, etc.).

33
2. Search for information - search for data relevant for the decision, both
from internal sources (one’s memory) and/or external sources.
The search for information usually begins with the internal search for any sort of
information, memory, or experience with a product or service. The outcomes of
this stage depend on the actual existence of internal knowledge about the subject
and on the ability of the individual to retrieve this information. If the internal
search does not produce expected results, the individual turns toward external
information sources. The external searches differ in scale (how comprehensive the
search for information is), in the direction (advertising, brands, in-store
information, information received from sales people, or social contacts) and in the
sequence of the research (brand or attribute processing). The major determinants
that influence a search are product determinants, situational determinants, retail,
and consumer determinants. The consumer determinants comprise knowledge,
involvement, attitudes, beliefs, and demographic features.
The extent of the information search depends on the degree of importance of the
purchasing decision to the customer. For example, people seek information more
actively than in cases of more expensive products (Engel, Blackwell et al. 1995).
The relevance of product information presented to consumers also affects the
purchasing decision. It has been shown that irrelevant information weakens
consumers’ beliefs in the product’s ability to deliver the outcome and satisfy the
need (Meyvis and Janiszewski 2002).
3. Pre-purchase alternative evaluation - assessment of available choices that
can fulfil the realised need by evaluating benefits they may deliver and reduction
of the number of options to the one (or several) preferred. In this step, a number of
alternatives are evaluated and the final option, which is believed to be able to
satisfy consumer need, better than the other options, is chosen. A number of
evaluative criteria, which represent product or service attributes or particular
dimensions of their delivery, are used for the evaluation. The criteria can be
functional or expressive in nature, for example, price, brand name, colour, smell,
environmental attributes, etc., which have different importance to various
individuals (Mittal, Ratchford et al. 1990). Ratchford (1975) posits that consumers
may often choose products for the status and image attributes and less for their
functional features (Ratchford 1975).

34
Differences in product attributes are also reflected in the way the consumer
knowledge about a product can be measured. Functional attributes are more likely
to be measured objectively, while expressive /status/ and image attributes can
primarily be measured through subjective experiences of consumers with products
(Park, Mothersbaugh et al. 1994). It has been demonstrated that these image or
intangible attributes are important in customer evaluations, especially when their
tangible features are difficult to evaluate (Olson 1977).
In addition to the choice of criteria, consumers also choose which alternatives they
will evaluate. The set of alternatives for the evaluations process is called the
consideration or evoked set. Research on the evoked set (number of alternatives
that are considered in the evaluation process) has focused on both explaining the
process in which close substitutes -alternatives sharing the same attributes (usually
within the same product category, but of different brands) – are being evaluated
and on the choice of alternatives from different product categories -
noncomparables, so called across-category choice alternatives (Johnson 1989),
(Park and Smith 1989). The difference in the choice process between close
substitutes and alternatives from different product categories has been shown. The
choice process between close substitutes is a top-down process, in which
consumers start from comparing general information about product categories,
narrowing it down to concrete choices among brands of products (Park and Smith
1989), (Johnson 1988). The choice process between alternatives from different
product categories is the opposite. It starts from concrete features of alternatives
and widens the comparison to more abstract characteristics, based on which the
alternatives are being compared (Johnson 1989). Knowledge from these studies is
useful for analysing consumer acceptance of PSS, because in the PSS context, the
consumers have to compare service alternatives to products, which resembles
comparing non-comparables from different product and service categories.
Following Johnson’s logic, the evaluation in this case will also be a bottom- up
process.
The information processing capabilities about product characteristics are shown to
depend on how well individuals are informed about a product, brand and entire
product category (Beattie 1982), (Bettman 1979). It is demonstrated that well-
informed customers focus more on objective information and particular product
attributes, while less informed customers rely on general information about the

35
entire product category (Bettman and Sujan 1987) and use more subjective
information and recommendations of social contacts (King and Balasubramanian
1994). Furthermore, studies report that well- informed customers are willing to pay
more for the quality brand than were lower-knowledge customers (Cordell 1997).
An important part of the pre-purchase alternative evaluation is acceptance -
whether the consumer accepts and believes the information provided and trusts t
he sources of that information.
4. Purchase - acquirement of the chosen option of product or service.
The purchase step is associated with a number of decisions that individuals have
to make. Even if the alternative is already chosen, the purchasing may still not be
made, because motivations and circumstances can change, new information can
become available, or there could be no such alternatives available at that particular
place. The decision also depends on when and where to buy, and/or how to pay
for the purchase. Thus, at the purchasing stage, the final decision can be fully
planned, partially planned, or totally unplanned.
5. Consumption - utilisation of the procured option.
After the product or service is bought, consumers can use it directly, in a period of
time or could even abort the consumption process all together. Research
distinguishes between sacred and profane consumption, as well as impulsive
consumption.
6. Post-purchase alternative evaluation - assessment of whether or not and
to what degree the consumption of the alternative produced satisfaction.
The result of this step can be either satisfaction or dissatisfaction. Satisfaction is
the result of a post-consumption evaluation if a chosen alternative met or
exceeded expectations of the customer.
According to Oliver’s expectation-disconfirmation model, consumers have three
levels of expectations about the product or service performance: equitable
performance (what the customer has to receive in return for money and effort
spent), expected performance, and ideal performance (Oliver 1980). The model
states that individual’s expectations are either confirmed if a product performs as
expected, negatively disconfirmed when the product
performs more poorly than expected, or positively disconfirmed if a product
performs better than expected. A negative disconfirmation results in dis
satisfaction, and consumption of the product is likely to be discontinued.

36
Confirmation or positive disconfirmation results in satisfaction and the continued
use of the product or service.
7. Divestment - disposal of the unconsumed product or its remnants.
Divestment became a focus of customer research relatively recently because of
growing environmental concerns. Most of the research has been focusing on final
disposal and recycling, but recently the secondary use of a product, such as reuse
and remarketing, is gaining more and more attention.
Besides “information processing perspective” presented above, marketing
analyses buyer behaviour by employing a psychologically grounded concept of
attitudes. Attitudes are usually named as the major factor in shaping consumer
behaviour and a wealth of studies is available on the topic of how attitudes can be
used to predict consumer behaviour (Balderjahn 1988; Ronis, Yates et al. 1989;
Luzar and Cosse 1998). Katz’ functional theory of attitudes explains the role of
attitudes in shaping social behaviour (Katz 1960). People form attitudes toward
products, brands, advertisements, stores, themselves, and other people based on
four underlying reasons: utilitarian function (based on rewards and punishments),
value-expressive function (consumer’s central values or self- concept), ego-
defensive function (serves to protect the person from internal feelings of threat),
and knowledge function (need for order, meaning, and structure). Underlying
dimensions of attitude include: affect (feelings), behaviour (do), and cognitions
(learning and beliefs). These dimensions can be combined into three hierarchies of
effects models, which try to explain a different kind of consumer decision-making
process. Consumption plays a central role in economic theory. The most popular
theories and models in economic consumer research portray consumers as
somewhat passive rational decision-makers and assume that well-defined and
insatiable desires for goods and services drive consumer behaviour in the market.
Traditional neoclassical economists posit that these desires are not affected by
culture, institutional frameworks, social interactions, or the consumption choices
and lifestyles of their social contacts. Furthermore, these desires or preferences for
certain goods are stable by nature and consumers maximise their own utility in the
world of perfect information and market competition. They identify three major
influencing factors that affect consumption - prices, incomes, and personal tastes.
As personal tastes fall outside the realm of economics, most often, traditional

37
economists restrict themselves to the role of income and prices in determining
consumption choices.
Other presuppositions of economic theory of consumer demand are that desires
are not diminishing as more of them are satisfied and that the origin of desires is
in the consumers themselves. In response to these traditional views, Galbraith
argued that we need to realise that there are limits to desires and that expressions
of these desires in specific want s are created by industrial systems, implying that
consumer sovereignty is an empty concept (Galbraith 1958). Here he implies that
only physiological needs have limits. He critiques the present consumer societies,
which exploit the fact that psychological needs are insatiable, and which employ
great amount of resources to discover and create urge for more and more desires,
all in order to sustain the growth drive of indus try.
After Galbraith, the narrow scenario of reality drawn by neoclassical economists
has been heavily criticised on several grounds and a shift towards new foundations
in microeconomics has taken place (Lancaster 1966), (Lancaster 1966), (Lancaster
1971), (Michael and Becker 1973). A modern consumer theory regards consumers
as full members of the market who create their utility in the context of the
household. The fundamental prerequisite of this approach is that goods and
services are simply inputs to the consumption process, and their utility is being
extracted by consumers, who spend time and other resources, in the household.
The notion that needs and outcomes is really what consumers want is at the centre
of this new approach. Needs ma y be fulfilled by putting market-provided goods
through consumption process, in which time and skills of the consumers are
employed. The end result could be a great variety of ways consumers can produce
utility. This vast amount of alternatives makes the consumer decision process a
complex task, which consumers face every day. Taking into account the concept
of bounded rationality with lack of information and cognitive limitations, it is
clear that consumers cannot be efficient in their choices and that neoclassical
economics failed to provide sufficient explanation of consumption processes.
A different approach to the consumer decision process comes from the studies by
prominent economists who explored the effects of tastes and preferences on
consumption choices (Scitovsky 1992), (Becker 1996). It is been argued that life
would be impossibly complex if we were to go through the entire decision-
making process every time we are faced with a choice. It is suggested instead that

38
our lives are deeply routinised and the decisions about familiar daily situations are
made automatically, as a matter of habit. Habits are formed based on changes in
tastes, and our preferences depend on experiences in past consumption. This
discussion stems from the psychological learning theory, according to which
habits are formed in the process of continuous reinforcement of influencing
factors. Once people are satisfied with their choice and situation, their behaviour
becomes routinised and they do not tend to search for new solutions, until new
signals and influences come that can trigger the search for better alternative.
These ideas built the foundation for an extensive debate on economic implications
of habits (Pollak 1970), (von Weizsäcker 1971). Economists suggested looking at
individual costs as an explanation of the habitual behaviour. Stigler and Becker
(1977) explain stability of habits with a certain capital, consisting of skills,
information and experiences, that was acquired during consumption of a particular
object or service. Triggers for change reduce this accumulated capital (Stigler and
Becker 1977). This discussion is interesting from environmental point of view as
well, as routines and habits often offset sustainable patterns of consumption.

39
 OBJECTIVES

This study has the following objectives:

1. To study the post-purchase behavior of consumers towards

HYUNDAI Cars.
2. To study the factors which played important role at the time of
purchase.
3. To study the role played by different persons for buying the
Hyundai Car.
4. To study the impact of age, occupation & income for buying the
Hyundai Car.
5. To study purchasing pattern of the business man & service class man.

40
 RESEARCH METHODOLOGY

Research in common refers to a search for knowledge. One

can also define research as a systematic search for information on a
specific topic. Research means search for new knowledge. In other words
research may be defined as a scientific & systematic search for pertinent
information on a specific topic. In fact, research is an art of scientific
investigation. Re

Redman defined research as “ Systematic effort to gain new knowledge.”

RESEARCH DESIGN

Meaning of Research design

The formidable problem that follows the task of defining the

research problem is the preparation of the design of the research project,
popularly known as the research problem. Decisions regarding what, where,
when, how much, by what means concerning an inquiry or a research study
constitute a research design.

SAMPLE SIZE

Sample size is 100 respondents.

AREA

• Rohtak.
• Gurgaon.

DATA COLLECTION

Project have collected the data from the following methods.

• Interview,
• Questioner,

41
 • Internet

METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been
defined & research design chalked out. There are two types of data

1. Primary.
2. Secondary.

Primary Data:

Primary data are those which are collected afresh & for the first
time, & thus happen to be original in character.

Primary data is collected from the following methods:

 Observation Method.

 Interview Method.

 Questioner Method.

Secondary Data:

Secondary data are those which have already been collected by

someone else & which have already passed through the statistical process.
.RESEARCH INSTRUMENTS

• Questioner

• Articles

•
RESEARCH APPROACHES
• Functional

• Emotional

• Practical

42
 COMPANY PROFILE

HYUNDAI MOTORS

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company,
South Korea and is the largest passenger car exporter and the second largest car manufacturer of
India. HMIL presently markets 54 variants of passenger cars across segments. These includes the
Santro in the B segment, the i10, the Getz Prime & the premium hatchback i20 in the B+ segment,
the Accent and the Verna in the C segment, the Sonata Transform in the E segment and the Tucson
in the SUV segment.

Hyundai Motor India Ltd, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 559,880 vehicles in the calendar year (CY) 2009, an
increase of 14.4 percent over CY 2008. In the domestic market it clocked a growth of 18.1 percent
as compared to 2008 with 289,863 units, while overseas sales grew by 10.7 percent, with export of
270,017 units. HMIL currently exports cars to more than 110 countries across EU, Africa, Middle
East, Latin America and Asia. It has been the number one exporter of passenger car of the country
for the sixth year in a row.

HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL commissioned its
second plant in February 2008 which produces an additional 300,000 units per annum, raising
HMIL's total production capacity to 600,000 units per annum.

HMIL has invested to expand capacity in line with its positioning as HMC's global export hub for
compact cars. Apart from the expansion of production capacity, HMIL currently has 286 strong
dealer network and 540 strong service points across India, which will be further bolstered in 2010.

In December 2008, HMIL launched the much awaited premium compact the i20 after it had a
global preview at the Paris Motor Show in October, 2008. In 2009, HMIL also launched the new
facelift Sonata Transform and the new Verna which are vastly improved models compared to the
outgoing models. In March, 2009 Hyundai i10 clocked the fastest 3 lakh sales since its launch in
October, 2007. HMIL also became the only car manufacturer to introduce Automatic transmission
across segments with the launch of the i20 1.4 Litre Petrol Automatic. The i20 also simultaneously
got a powerful 1.4 Litre CRDi engine in July 2009. The i20 achieved the highest safety rating by
the European NCAP. In September 2009, HMIL introduced the new refurbished Santro with
luxurious interiors and improved exterior features. The Santro has been the highest selling model
for Hyundai with more than 15 Lakhs units sold since its launch in India in 1998. Hyundai Motor
India in December 2009 also crossed the 25 Lakh car production milestone.

43
Hyundai Motor India remains one of the fastest growing car manufacturers in the country. The
company’s overall performance in the automobile sector was recognized by the media as it was
awarded with the prestigious ‘Manufacturer of the Year’ award by both UTVi Autocar Car and
NDTV Profit-Car & Bike in 2009
Hyundai Motor India Limited, a wholly-owned subsidiary of Hyundai Motor
Company (HMC), South Korea, was established in India in December 1997. The integrated
manufacturing plant set up to an initial investment of US$ 614 million is presently the
largest manufacturing facility of HMC outside Korea.
Located at Irrunattukottia, near Chennai, Hyundai Motor India has emerged as a significant
driver of the region’s economy by helping co-develop one of India’s largest automotive
manufacturing zones supported by over 25 Indo-Korean joint-venture partners and original
equipment vendors, jointly employing over 10,000 people.

The company’s maiden launch, Santro, made marketing history by becoming one
of India’s best selling compact cars and catapulted Hyundai to the position of India’s
second largest carmaker in just six months. The winner of the Business Standard Motoring
"Car of the year 1999" and rated the "Best Small Car" in the J D Power Asia Pacific Initial
Quality and APEAL studies for three years in a row Santro continues to be India’s most
preferred and recommended compact car.

Accent launched in 1999, has also stood its ground against some of the best-
known global brands to emerge as a leader in the Indian mid-size cars segment. Offering
one of the most extensive and technologically advanced product line-ups in this segment,
Accent has topped the JD Power APEAL customer satisfaction study and the segment
sales for two years in a row.
Sonata, launched in 2001, showcased Hyundai Motor India’s capability to produce
high-end luxury automobiles. The flagship of the Hyundai stable in India, currently has a
market share of near 26 percent. After the success of all its three brands in India, Hyundai
has recently launched its flagship bearer model, the Terracan,inIndia. Recently they has
launched Getz in India. This is a car covering space between Santo & Accent.

The production management processes at Hyundai Motor India are overlayed with an
organization-wide implementation of manufacturing best practices like Just-in-time
inventory management, Kaizen, TPM and TQM, that help us in making the world's best cars,
right here in India.
The Press Shop
A computer controlled line that converts sheet metal to body panels of high dimensional accuracy
and consistency.

44
A hi-tech line that builds full body shells from panels. Automated robotic arms
The Body Shop
are used for intricate welding operations that ensure superior and consistent build
quality.

The Paint Shop

This is one of the most modern paint shops in the country and uses the environment friendly water
based process for superior and lasting exteriors. A unique process management system followed
here helps us deliver the most extensive colour range, independent of minimum batch
requirements, helping customers get their preferred colour anytime.
The Aluminum Fondry

45
Forges the engine cylinder blocks for our cars to exacting design specifications.
The Engine and Transmission Shop
One of the biggest engine shops in the country, this unit is equipped with the most modern tooling
and testing facilities to make a wide range of engines inhouse.

The Plastic Extrusion Unit

Moulds the dashes, bumpers and other plastic components to perfect fit and finish.
The Plastic Paint Shop
One of the very few manufacturing units in India to have this facility in-house, Hyundai's plastic
paint shop delivers a high grade finish on exterior plastic components.
The Test Track
With comprehensive performance testing facilities like rattle testing and ABS brake testing, this
track is designed to meet pre-delivery (PDI) certification standards to exacting Euro specifications
HYUNDAI MOTOR INDIA LIMITED’s fully integrated state-of-the-art manufacturing plant
near Chennai boasts some of the most advanced production, quality and testing capabilities
in the country. HYUNDAI MOTOR INDIA LIMITED has sold over 500,000 cars in a
record time of just over 5 years since commencement of commercial production in
September 1998.

The company is investing an additional US$ 220 Mn to expand capacity at this

plant to 250,000 units a year in line with its recent designation as HMC’s global export
hub for small cars and to cater to its upcoming product launches India.

ENVIRONMENT FRIENDLY

Hyundai Motor India Limited has been awarded the benchmark ISO 14001
certification for its sustainable environment management practices. Living up to its
commitment of providing global standards of quality and process management in India,
Hyundai had put in place an Environment Management System (EMS) at its manufacturing
plant in Chennai right from its project stage. The certification process was completed in a
record time of 10 months.

46
 The assessment was done by TUV SUDDEUTSCHLAND and covered areas like
Awareness Training, Technology Up gradation, Recycling, Waste Management and fulfilling
Government Regulations.

Hyundai Motor Company, S. Korea, the parent of HMI, has been doing
considerable work on sustainable Environment Management . The company has a well
defined framework in place for developing products that reduce pollutant emissions and
processes for preservation of natural resources and energy along all the stages of the
product lifecycle from production, sales, use to disposal. The company has also been in the
forefront of development of environment friendly technologies like Hybrid Electric Vehicles
(HEVs), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001
certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.

SOCIAL RESPONSIBILITY
MarutiSuzuki, as a responsible corporate citizen is committed to sustainable social
development and the preservation of the environment. All the company's key manufacturing
units, including the Indian plant have the ISO 14001 certification for its Environment
management practices. As a part of its social responsibility programs, the company conducts
various campaigns to spread awareness of in-car safety and safe driving practices,
particularly targeted against drunken driving, speeding, etc.

As a part of its community development projects, the company has adopted a

few villages around its factory in Gurgaon and has been working towards the social and
economic development of these villages, assisting them in the areas of primary health care,
education, basic amenities and employment opportunities.

Hyundai and Kia together have R&D centres in the United States, Europe, Japan apart from the
global R&D headquarters at Ulsan, Korea.

The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$ 2 Billion,
up from US$ 1.2 Billion to enhance its thrust on new product development and achieve global
quality benchmarks by year 2005. This includes the $30 Mn Hyundai-Kia Design and Technical
Center in Irvive, California.

The R&D team focuses on the development of new products and technologies that include interior
and exterior design changes, development of new generation engines and alternate fuel systems,

47
concept vehicles and advanced passenger safety and comfort systems, in line with evolving
customer preferences across the globe. Recent successes of the team include the development of
the Hyundai patented Common Rail Direct Injection (CRDi) engine in association with Detroit
Diesel and the award winning Fuel Cell Santa FE.

Some of the ongoing projects that the Hyundai R&D team is involved in include the development
of the 'World Engine' in association with Daimler Chrysler and Mitsubishi and the development of
Automotive Telematics in association with IBM.

That the efforts of the Hyundai R&D team has paid great dividends to the company is evident from
the fact that the company's newly engineered products like the Santa Fe and the Getz have made
waves in the global automotive markets and the 'US Consumer Reports' magazine has ranked
Hyundai cars in level with that of Honda in its recent quality rankings

HYUNDAI FINANCE PARTNERS

1. ABN Amro Bank .

2. GE Countrywide .
3. HDFC Bank .
4. ICICI Bank .
5. Citibank .
6. Standard Charted Bank .
7. Kotak Mahindra Primus Ltd .
8. Bank of Punjab .
9. Magma Leasing Ltd .
10. Mahindra & Mahindra Financial Services Ltd .
11. Punjab National Bank .

48
 • Hyundai i20 wins the ‘Viewer’s Choice
Award’ at the Overdrive CNBC TV 18
Awards 2010.

• Hyundai Motor India Ltd wins the award for

‘Customer Service’ at the Apollo Auto India
Best Brand Awards 2010.

• Hyundai i20 wins the ‘Design of the Year’

award at the NDTV Profit Car & Bike Awards
2010.

• Hyundai i10 brand ambassador Shahrukh

Khan wins the ‘Brand Ambassador of the
Year’ award at NDTV Profit Car & Bike
Awards 2010.

• Hyundai Motor India Ltd. receives the EEPC

‘National Award for Export Excellence for
2007-08. Hyundai won the Gold Trophy in the
‘Large Enterprise’ category.

• Hyundai i20 awarded 'Five Star Rating' for

Safety by European New Car Assessment
Programme (NCAP)

• Hyundai wins the DHL-CNBC Tv18

International Trade Awards 2008-09

49
 • Hyundai Motor India honoured with the
‘EXIM Achieved Award’ for the year 2008 by
Tamil Chamber of Commerce.

• “Hyundai Motor wins the ‘Manufacturer of

the Year’ award at the NDTV Profit Car &
Bike Awards 2009.

'Dream, Strive, Achieve' is the mantra of every individual working in this US $570 million company
situated in a sprawling 535 acre facility located in Tamil Nadu. HMI houses state of the art
production techniques and has a workforce of more •than Hyundai
3900 employees. HMIthe
i20 awarded is 'Family
a whollyHatch
ownedof the
subsidiary of Hyundai Motor Corporation - Korea, whichYear-
is US2008'
$ 28 at the Top
billion Gear
strong Auto Awards.
company.

Hyundai brings with itself the latest in Technology, Quality and People practices ensuring in
providing the right sync to produce the best cars by bringing out the best in people. You could play a
• Hyundai Motor India wins the “Highest
decisive role in transforming the automobile landscape in India by being part of this adrenaline
Resale Value” award at the Apollo Tyres Auto
pumped team. India Best Brand Survey Awards for the year
2008.

• Hyundai Motor India was named the

‘Manufacturer of the Year’ award and the
'Best Variant' award for it’s ‘i-10 Kappa’
engine at the UTVi Autocar Awards 2009.

• Hyundai Motor India was awarded the ‘Niryat

Shree’ Silver Trophy for the year 2005-06 by
the Federation of Indian Export Organizations
(FIEO). The award was conferred for
Hyundai’s outstanding performance in export
in the Engineering and Metallurgical products
under the Non-SSI category.

• Hyundai Santro Adjudged India’s Most

Dependable Compact Car by JD Power Asia
Pacific 2008

Hyundai i10 wins all the prestigious awards of the year 2008.

• Indian Car Of The Year 2008

• Car of the Year

• Compact Car of the Year

• Car of the Year 2008

50
• Small Car of the Year 2008
 • Car of the Year 2008

• Car of the Year

• Aaj Tak Viewers Choice Award

MARUTI SUZUKI LIMITED
NATIONAL ROAD SAFETY MISSION
Carwale.com • i10 wins Debut of the year.

• CNBC-TV18 Autocar Auto Awards 2007:

'Best value-for-money car'
Maruti Suzuki considers road safety to be an integral part of its social initiatives. Taking forward
• Hyundai Getz is the CNBC Autocar Car of
its commitment to road safety, Maruti Suzuki has adopted a National Road Safety Mission
the Year 2005 (More)
launched in Dec 2008 under which 500000 people will be trained in road safety in the next three
• Hyundai Elantra – Best Value for Money
years. This will be done through the two channels - Institute of Driving Training and Research
Car of the Year 2005 (More)
(IDTR) and the Maruti Driving Schools spread across the country. Of the 500,000 people to be
trained, at least 100,000 will be people from underprivileged section of society, who are keen to
• Company – Awards – CNBC Autocar India
take driving as a profession. – Hyundai has been the manufacturer of the
With the launch of IDTRs, Maruti Suzuki introduced year worldforclass
two years in row.
driving training facilities to
India. These include scientifically laid-out driving tracks, advanced computer simulators and a
theory module for class room training. IDTR at Loni,• started in 2000Car
Performance in of
collaboration with -the
the Year' 2007
Hyundai Verna 1.5 CRDi.
Delhi government, is spread over 14.6 acres. It caters primarily to commercial vehicle drivers. In
2006, the second IDTR was set up at Sarai Kale Khan, South Delhi
• Hyundai Getztoisfocus on personal'Car
BS Motoring's car and
of the
Year' 2005
Light Motor Vehicle drivers. We have recently added two IDTR's one in Uttrakhand and another
at Gujarat. Taking a step forward the Institute at Vadodra ( Gujarat) will not only impart driving
• BS Motoring – BS 1000 – Company of the
year 2005 –technical
training and contribute to road safety, it will also offer automobile Hyundaitraining
Motor India Limited
to Gujarat¿s
tribal and under-privileged youth to strengthen their employability.

• Hyundai Santro is BS Motoring's 'Car of the

Year'
For the future, Maruti Suzuki will continue its endeavor andforplans
1999to set up more IDTR's in

partnerships with other state

governments across the country.
EEPC Award • 'Hyundai Motor India Received Engineering
Export Promotion Council (EEPC) ‘Top
Some personal experiences from the IDTR exporter of the year’ Award for 2005-06 on
June 1, 2007
Ram Vishal Pandey
AfterNDTV Profit
23 years Car &in Indian Air Force I joined•IDTR
of service in Sept'08
Verna - “Bestand I haveCar
Mid-size a pleasant feeling
of the Year”
Bike Awards award by the NDTV Profit C & B Awards
in this profession since teaching is my hobby and I enjoy it utmost. I am also happy to be in such a
2007
noble profession where I will be able to save a lot of lives by teaching them correct road sense.
• Tucson - 'SUV of the year' by NDTV
Profit/Car & Bike Awards 2006
Rakesh Vats
We have a state-of-the-art driving simulator which• getsPM a Presents
good response from the ”people
“Star Company Awardwho
to
Hyundai Motor
learn. Overall, I think that the IDTR is doing great service to the society. India

Women and Driving

TNS TCSS 2005 • Accent Petrol - 'No 1 Entry Midsize Car'
In the early 1990s, it was quite a discovery to see women drive a car in India. It was completely a
man's TNS TCSS
domain, and2005 • Accent
women mostly used public transport CRDi
or were - 'No
led by 1 Midsize
chauffeur Dieselcars.
- driven Car'

• Hyundai Santro has topped the JD Power

Asia Pacific Intial Quality Study (IQS) that
measures product quality for three years in a
51 row (Years 2000, 2001 and 2002)

• Hyundai Santro has topped the JD Power

Asia Pacific APEAL study that measures
 (Years 2000, 2001 and 2002)

• Hyundai Accent has topped the JD Power

Asia Pacific IQS for 2002 and the APEAL
study for 2001 and 2002.
One of the limiting factors were the kind of cars that were available in the Indian market at that
• Hyundai Motor India was adjudged the ‘Car
time; cars were often bulky and difficult to drive. Maker of the year’ at the ICICI Bank –
Today, the Indian woman has moved beyond her traditional roles. The transition from a humble
homemaker to a tech savvy, independent, decision maker has happened and women in India today
occupy an important place in the society.
One of the factors that has contributed significantly to the success of women in India is "Mobility",
and this mobility has come in the form of personal transport.
Maruti Suzuki brought in the first car that was easy to drive and park in the Indian sub-continent.
Today the latest cars and the technology adaptations like power steering make driving very easy
and enjoyable. However, one important aspect was to 'learn to drive'.
Only in this decade, organized players like Maruti have ventured into imparting driving skills
through organized schools with world class training modules.
Maruti Suzuki has taken up to train them 'how to drive safely' through its network of 50 Maruti
Driving Schools spread over 45 cities.
Maruti Driving School at trained more than 90,000 people out of which they have trained more
than 41,000 women.
While the individual woman gains from learning driving, in many cases this skill leads to
flexibility for the whole family.

The Driving School Experience

Majority of these women are homemakers with little or limited access to affluence. Some of them
are college students, some are grandmothers, yet what is common is their sheer passion to learn
driving.
Lady instructors have been appointed to train women at these schools. These schools are equipped
with the world class, state of the art driving simulators and cars in good condition.

At MDS, the training modules are as per international standards and include both theory and
practical. Difficult driving situations such as fog, uphill terrain, rain and night driving is simulated
on state-of-the-art simulators to give learners a first hand experience of the weather conditions.
Only after class room and simulator training the learners are taken for actual driving on road.
This mix of theory and practical gives learners a critical insight into the driving skills. In addition,
the learners also pick up car handling training like changing flat tyre and handling minor snags and
repairs in the vehicle.
Corporate Social Responsibility

52
Maruti Suzuki has adopted a CSR policy, which serves as a guiding tool for the management and
the employees in steering Maruti Suzuki towards long term sustained growth in harmony along
with the interests of the stakeholder.
The role of the CSR department is to professionalize CSR activities in Maruti Suzuki and
strengthen the mechanisms involving the activities. Significant efforts have been taken to
contribute to society at large, through its corporate activities, especially in the areas of Road Safety
and Vocational Training. Maruti Suzuki has set up dedicated teams with requisite expertise to steer
the social projects
The company follows a partnership approach with its various stakeholders, and believes that the
prosperity and wellbeing of the stakeholders will fuel the growth of the company in the future.

53
Maruti Suzuki recognizes global warming and climate changes as global issues, the effects of
which are of concern both for the environment and human life.
The challenge faced by the society is how to meet the needs of the present, without compromising
the ability of future generations to meet their own needs. Maruti Suzuki strongly believes that an
investment in environment friendly products and manufacturing facilities is in the best interest of
the society as well as the business. The last 25 years of our journey has reinforced the belief that
environment friendly initiatives make products more acceptable to customers and help Maruti
Suzuki grow profitably in every sphere.
Since Maruti Suzuki started operations, conserving environment and natural resources has been an
integral part of our systems and processes. The concept of "Reduce, Reuse, Recycle" (3R's) has
been our driving principle. This three pronged strategy or the 3 R's has been promoted in all our
manufacturing facilities, supply chain and logistics operations.
Maruti Suzuki also follows the Philosophy of "Smaller, Fewer, Lighter, Shorter and Neater". This
Philosophy has helped Maruti Suzuki in optimal utilization of resources and cost savings.
Starting business in 1909 as Suzuki Loom Works, the firm was incorporated in 1920. Since
foundation Hamamatsu, Japan, SUZUKI has steadily grown and expanded. During the post-
W.W.II period, motorized bike 'Power free' which earned a good reputation was followed by 125cc
motorcycle 'Colleda', and later by the pioneering 'Suzulight' lightweight car that helped bring
Japan's automotive revolution. Each of these was epoch-making in their own right as they were
developed and manufactured by optimizing the most advanced technologies of that period.

Today, constantly going forward to meet changing lifestyles, the SUZUKI name is seen on a full
range of motorcycles, automobiles, outboard motors and related products such as generators and
motorized wheelchairs

The mark trademark is recognized by people throughout the world as a brand of quality products
that offer both reliability and originality. SUZUKI stands behind this global symbol with a sure
determination to maintain this confidence in the future as well, never stopping in creating such
advanced 'value-packed products'

54
GENERAL MOTORS

Founded in 1908, General Motors Corporation, the world's largest vehicle

manufacturer, designs, builds and markets cars and trucks worldwide.
GM's vision is to be the world leader in transportation products and related
services, by unveiling new products and the most exciting lineup in its history.
The company will earn its customers' enthusiasm through continuous
improvement driven by the integrity, teamwork, and innovation of GM's people.
GM today employs about 324,000 people around the world. It has manufacturing
operations in 32 countries and its vehicles are sold in 200 countries. In 2004, GM
sold nearly 9 million cars and trucks globally, up 4 percent and the second-highest
total in the company's history. In 2004, for the fourth consecutive year, GM set
industry sales records in the United States, its largest market, for total trucks,
pickup trucks and sport utility vehicles. GM's global headquarters are at the GM
Renaissance Center in Detroit.
GM's major markets are North America, Europe, Asia Pacific, Latin America,
Africa and the Middle East. Its largest market is North America, where it is in its
78th year as market leader. GM cars and trucks are sold under the following
brands: Cadillac, Chevrolet, Buick, GMC, Holden, Hummer, Oldsmobile, Opel,
Pontiac, Saab, Saturn and Vauxhall.
GM is investing aggressively in high technology and e-business within its global
automotive operations and through such initiatives as e-GM, GM BuyPower,
OnStar and its Hughes Electronics Corp. (NYSE: GMH) subsidiary. GM also
operates one of the world's most successful financial institutions, General Motors
Acceptance Corporation (GMAC). Other major subsidiaries include GM
Locomotive Group and Allison Transmission Division.
The GM Group of global partners includes Fiat Auto SpA of Italy, Fuji Heavy
Industries Ltd., Isuzu Motors Ltd. and Suzuki Motor Corp. of Japan, which are

55
involved in various product, powertrain and purchasing collaborations. In
addition, GM is the largest shareholder in GM Daewoo Auto & Technology Co.
of South Korea. GM also has technology collaborations with BMW AG of
Germany and Toyota Motor Corp. of Japan, and vehicle manufacturing ventures
with several automakers around the world, including Toyota, Suzuki, Shanghai
Automotive Industry Corp. of China, AVTOVAZ of Russia and Renault SA of
France.
GM brought brand differentiation to the world back in the 1920s, when Alfred
Sloan created the price ladder of GM marques that offered “a car for every purse
and purpose.”
Today the GM product revolution again is strengthening its brands, with more
innovative marketing that better understands the customer. Witness the incredible
renaissance of Cadillac, led by all-new cars and trucks that have gone in a unique
design direction, and by marketing that really connects with potential buyers.
Building on the success of the CTS sedan and Escalade series of SUVs, Cadillac's
renaissance was enhanced further last year with the highly praised XLR roadster,
the SRX performance utility vehicle, and the stunning Sixteen concept car. To
reclaim the mantle of "Standard of the World," Cadillac must continue to further
upscale the ultimate statement of luxury. Stay tuned.
Lessons learnt at Cadillac: In short, develop distinctively designed, high-quality
vehicles that truly delight the customer, create an ownership experience that
reflects and reinforces the brand's image, support this with strong and innovative
advertising, and the buyers will come.
The same lessons are now being applied in North America to the volume leader,
Chevrolet, to the performance-oriented brand, Pontiac, and to Buick, which is
restoring its reputation for refined, dignified elegance. This emerging multi-brand
strategy is being played out around the world. In Europe, the Opel and Vauxhall
brands are being rebuilt with a more upscale image through an entire new lineup
of exciting products. That effort began with the Zafira, Vectra and Meriva, and
continues this year with the all-new Astra and Tigra.
Around the world, from Thailand to South Africa to Russia, Chevrolet is
establishing itself as a truly global, mainstream brand that across its lineup offers
great value and quality that consumers can trust.

56
Designing, building and selling great cars and trucks that people really want to
own. That's the fundamental business of General Motors.
Compelling designs excite customers and connect with them on an emotional
level. Well designed vehicles turn heads and fire the imagination. GM's goal is to
develop cars and trucks that have an emotional appeal for a new generation of
consumers - cars and trucks that people feel they must have.
Here's a sneak preview from our latest lineup of some great looking cars.

CHEVROLET CORVETTE
The sixth-generation 2005 Corvette advances the sports car driving experience in
every dimension. With its high-precision built, it is the most powerful standard
Corvette ever made. The Corvette is available in two body styles - coupe and
convertible.
CHEVROLET SSR
The 2005 SSR comes with a new 6.0L LS2 small block V8 that whips up 390
horsepower. A power-retractable hardtop, cast-aluminum 19-inch front wheels
and a five-link rear suspension define the vehicle that's part pick-up, part roadster
and pure Chevrolet.
OPEL INSIGNIA
The Insignia embodies the Opel brand's three core characteristics - excellent
driving dynamics, exceptional versatility and expressive styling. An automobile of
the future, it features numerous innovations including extensive use of LED
lighting technology.
OPEL SPEEDSTER
The Speedster breaks through the barriers of ordinary thinking and conventional
technology with a stylish, futuristic design and a road-holding experience like no
other. It puts the excitement back into driving with its high performance engine.

BUICK VELITE CONCEPT

The Velite Concept is a new expression of Buick's longstanding heritage in
understated yet
sophisticated designs. Its aggressive stance emphasizes contemporary design
while retaining readily identifiable heritage cues of refined elegance.

57
BUICK PARK AVENUE ULTRA
The Park Avenue Ultra draws from a rich design heritage to reveal a modern
interpretation of a classic Buick with an artist's attention to detail. Carrying on the
Buick legacy of strong workmanship, it comes with a higher torsional rigidity than
before.
CADILLAC SIXTEEN CONCEPT
The Cadillac Sixteen Concept embodies the timeless qualities of a luxury sedan
with its sleek appearance and a powerful XV16 engine that generates 1000
horsepower. Its sculpted design evokes memories of an era when luxury cars were
hand built.
CADILLAC XLR
The Cadillac XLR is a luxury roadster that is not just a head turner but also brings
a smile on any performance driver's face, with its 320 hp 4.6L Northstar V8 VVT
engine. An automatic retractable hardtop can transform the XLR from a coupe to
an open-air roadster.
PONTIAC SOLSTICE
The Solstice delivers its promise of open-air thrills and the exhilarating freedom
of roadster driving. It comes equipped with a powerful 2.4L Ecotec DOHC engine
belts out up to 170 horsepower. Its bold, striking exterior lines are clearly Pontiac.
PONTIAC FIREBIRD
The Firebird is bold, beautiful, passionate and rebellious. From the first models, to
the spellbinding Trans Am, to the magnificent madness of the Super Duty 455,
there's a story in each and every Firebird.

HOLDEN MONARO CV8

The Monaro CV8 is a very stylish high-performance sports coupe that boasts of a
5.7L Gen !!! V8 engine. Its powertrain delivers a more forceful launch feel, more
mid-range torque and a sharper sports character balanced by an upgraded braking
system.

58
HOLDEN TORANA TT36
The Torana TT36 is a mid-sized hatch concept car that demonstrates the
versatility of Holden's design talent to a worldwide audience. Its experimental
powerplant belts out 280kW of power, and is a twin turbo, intercooled version of
the 3.6L Alloytec V6 engine.

59
 ANALYSIS & INTERPRETATION

Q1: Is it your 1st car ?

70%
60%
60%
50%
40%
40%
30%
20%
10%
0%
Yes No

Findings:-

1) 60% respondents said that this is their first car.

2) 40% respondents said that they already have used the other brand’s
car.

60
Q2: People having other brands than Hyundai’s car previously .

80% 70%
70%
60%
50%
40%
30%
20% 10%
10% 7% 5% 5% 3%
0%
Maruti Tata GM HM PAL Fiat
motors

Findings

1. 70% of customers were having Maruti previously.

2. 10% of customers were having Tata’s vehicle previously.
3. 20% of customers were having other brand’s vehicle.

61
Q 3: Who played an important role as an influencer in purchase of car ?

60%
50%
50%
40%
30% 25%
20% 15%
7%
10% 3%
0%
Friends Family Relatives Sales Others
Exe.

Findings

1) 25% of respondents said they were influenced by friends.

2) 50% of respondents said they were influenced by their family.
3) 7% of respondents said they were influenced by their relatives
4) 15% of respondents said they were influenced by the sales exe.

62
Q4: Who was the initiator to purchase the car ?

Innitator to purchase the car.

80% 70%
70%
60%
50%
40%
30% 25%
20%
10% 5%
0%
Your self Family Relatives

Findings

1. The final initiator in purchase of car was family because a family

has to use it because it a family vehicle.
2. Relatives can only give their guidance about the vehicle but the
final decision will be taken by the family & the buyer himself.

63
Q 5 : Why did you purchase this car ?

40%
35%
35%

30%

25%
20%
20% 18%

15% 12%
10%
10%
5%
5%

0%
Comfort Style Power Milage Services Reliability

Findings

1) 75% of respondents purchased Hyundai’s car due to comfort & style.

2) 18% of respondents purchased Hyundai’s car due to power of the
vehicle.

64
Q. 6 Who drives the car ?

Members who drives the car.

60%
45% 48%
50%
40%
30%
20%
10% 2% 5%
0%
Your self Children Wife Driver

Findings

1) The car is so much comfortable that 45% people drives it by

themselves.
2) Hyundai’s car I liked by young blood because it is very stylish, so
48% youngsters drive it.
3) The luxury car i.e. Sonata & Elantra is dived by drivers due to the
life style & status of businessmen.

65
Q. 7 What was the mode of payment ?

Mode of payment.

120%
96%
100%
80%
60%
40%
20%
4%
0%
Full payment Down payment

Findings

1) 96% of customers have purchased the car on down payment.

2) Only 4% of customers have purchased the car on full payment.

66
Q. 8 Was there any affect on car purchasing decision due to mode of
payment ?

Effect due to mode of payment.

120%
96%
100%

80%

60%

40%

20%
4%
0%
Yes No

Findings

1) 96% respondents said that down payment scheme make it easy to

purchase their dream car.
2) 4% respondents said that there no affect on purchase due to mode
of payment.

67
Q.9 Do you think you got value for money ?

Value for money.

90% 80%
80%
70%
60%
50%
40%
30% 20%
20%
10%
0%
Yes No

Findings

1) 80% of respondents said that they got the value for money.
2) 20% of respondents were not fully satisfied from their car.

68
Q.10 From where you purchased this car ?

Purchased from

80%
70%
70%
60%
50%
40%
30%
30%
20%
10%
0%
Local Place Delhi

Findings

1) 70% of respondents have purchased the car from their local place.
2) 30% of respondents have purchased the car from Delhi as the have
their business or job , relatives in Delhi. They have the craze to get
Delhi’s Reg. No.

69
Q.11 Did dealers provide any extra benefit to you on purchase of the
car?

Dealersprovidesanyextrabenefits.

100% 85%
80%
60%
40%
15%
20%
0%
Yes No

Findings

1) 85% respondents said that dealer provided them one year extended
warranty, Insurance.
2) The not fully satisfied respondent gave their ans. in no.

70
Q.12 Do you think promotional efforts like free insurance, extended
warranty, free gifts plays an important role in sale ?

Effcects of promotional efforts on

purchase.

80% 70%
70%
60%
50%
40% 30%
30%
20%
10%
0%
Yes No

Findings

1) 70% of respondents said yes, it will increase the sale, satisfaction

among the customers, grap new customers & will increase the
goodwill of the company.
2) 30% of respondent said that it does not affect so much. The
customer will invest in that thing to whom he thinks is beneficial for him
or will give value for money.

71
Q.13 Are you satisfied with your car ?

Satisfied customers

90% 80%
80%
70%
60%
50%
40%
30% 20%
20%
10%
0%
Yes No

Findings

1. 80% of respondents were satisfied with their car .They said It is an

amazing pair of wheels with huge comfort zone, making you realize
that u are driving in heaven with the performance, mileage, style, space,
features etc.
2. 20% of customers were not satisfied with their car.

72
Q.14 If no, what are the factors of dissatisfaction ?

Causes of dis-satisfaction.

50% 46%

40%
30%
30%
20%
12%
8%
10% 4%
0%
Lack of after Perfomance Vib.in Gear Hard seats Noicy AC
sales service shifter

Findings

1) 46% of customers said that HYUNDAI MOTOR INDIA LIMITED

provides services but they are not customer oriented. More over the
service stations are no so much in no. as compared to Maruti.
2) 12% of respondents said the price of fuel are so high & in that
condition the mileage is not satisfactory i.e. 12-14 km/pl in city.
3) 30% .of respondents said that Vibration is present in gear level. Due to
this the floor vibrates. Hard suspensions making bumpy. Driver
comfortable. ( Searing is very much above knee level making pain on
hands )
4) 4% of respondents said that the seats are hard. Leg is not resting
fully on seat making uncomfortable for long drive.
5) 8% of respondents said that the AC is very noisy.

73
Q.15 Were you having full information about this brand car or you
acquired while purchasing the car ?

Information About car.

90%
78%
80%
70%
60%
50%
40%
30% 22%
20%
10%
0%
Yes No

Findings

1) 78% respondents said that they had full information about the
vehicle which they have purchased.
2) 22% of respondents were not having the information about the
vehicle but they acquired it from different sources like magazines,
dealers, friends etc.

74
Q.16 If no, then from where you acquired information ?

Sources of knowledge acquisition.

60%
50%
50%
40%
30% 25%
20%
10% 10%
10% 5%
0%
Friends News Tv adds Magazines Relatives
papes

Findings

1) 50% of respondents got information by discussing their friends, who

already have the same car. We test dived that car.
2) 25% of respondents got information from their relatives about the
car.
3) 20% of respondents got information from TV adds, news papers,
internet.
4) 5% of respondents got information from auto magazines like auto
India,
overdrive, bs motoring etc.

75
Q.17 Are the features projected by the company are the actual features of
the company ?

Features are actual or not.

76%
80%

60%

40%
24%
20%

0%
Yes No

Findings

1) 76% of respondents said that the feature projected by company are

the actual feature. Vehicle is up to mark on that projected features.
2) 24% of respondents said that the feature projected by company are
not the actual features, vehicle differs from the actual projections
made by the company.

76
Q.18 If no, where they differs ?

Features differs fromactual

50% 45%
40%
40%
30%
20% 15%
10%
0%
Milage Service network Comfort

Findings

1) 40% respondendents said that the car is not giving the mileage as
company has projected.
2) 45% respondendents said that after sales company & dealers do not
care. These are not customer oriented. More over their service
network is not developed as such of Maruti.

77
Q.19 To whom do you think is the major competitor of HYUNDAI
MOTOR INDIA LIMITED?

Major competitors

70%
58%
60%

50%

40%
30%
18%
20% 15%

10% 6%
3%
0%
Maruti GM Tata Fiat Others
Motors

Findings

1) 58% of respondents thinks that Maruti Suzuki is the major

competitor of HYUNDAI MOTOR INDIA LIMITED
Santro Xing, Getz v/s Alto, Wagon R, Zen
New Esteem v/s Accent.

2) 3% of respondents thinks that GM is giving competition to

HYUNDAI MOTOR INDIA LIMITED.
Sonata, Elantra, Accent v/s Optra, Opel corsa Santro Xing, Getz
v/s Opel Sail, arracan v/s Forrester

78
Q 20. Do you think the company is taking steps to remove cognitive
dissonance ?

Removal of cognitive dissonance.

90% 85%
80%
70%
60%
50%
40%
30%
20% 15%
10%
0%
Yas No

Findings

1) 85% of respondents said that to a good image among the customers

the company is taking steps in this direction.

2) The respondents whose problem is not sorted out till this time they
gave the ans. in no. one respondents problem was very big & he
gave the suggestion to the persons who are going to purchase Santro
Xing i.e.”Anyone buying this car must check on the vibrations in the
Gear Lever and the floor. I had bought my car in Oct'03 and
reported this vibration problem to the company in Feb'04. Though the
service people were very prompt to react and tried their best to
solve the problem, but at the end of the day they could only say
that this was a technology issue and something which could only be
solved at their R&D.This is very disturbing for people who drive
with one hand on the gear knob.”

79
 FINDINGS

1. Experience user less prefer Hyundai cars.

2. People want less price cars.
3. Hyundai makes family cars.
4. Youth generation prefers Hyundai cars.
5. Hyundai cars are preferred for comfort & looks.
6. Hyundai cars are mainly sold in urban areas.
7. Hyundai cars are promoted by dealers more.
8. Hyundai cars are not fuel efficient.
9. Prices are not satisfactory.
10. People are not satisfied with the performance like hare gear shifting, noise
AC.
11. Customers are very much aware about the product and brands.
12. Maruti is the major competitor of HYUNDAI MOTOR INDIA
LIMITED.

80
 SUGGESTIONS
After analyzing the respondents views I found that no doubt the
company has a very good image in market. The have positioned the product
in the mind of the customers. People buy their vehicle due to comfort,
style, performance. But some customers are not satisfied due to some
reasons. I have some suggestions for the company.

1. They should go for enlargement of service station chins Were ever the
customer goes with his he should feel some one is there to care his
car.
2. Problems should be sorted out quickly so that the customer may not
feel inconvenient.
3. After sale of the product the company should take feed back i.e. their
vehicle is performing well or not. It will help in maintaining good
customer relations.
4. Sales executives should be trained & they should have the knowledge
about the specification & parts of the vehicle.
5. HYUNDAI MOTOR INDIA LIMITED should concentrate on mileage of
the vehicle because the price of fuel are very high..
6. HYUNDAI MOTOR INDIA LIMITED should launch other models than
Santro and Getz to attract the middle class family as Maruti has 5 small cars in
market.
7. HYUNDAI MOTOR INDIA LIMITED should establish a large services
network.
8. They should show the feature in the ads rather than using celebrities.
9. HYUNDAI MOTOR INDIA LIMITED should launch low price vehicles like
Maruti’s 800, Alto.

81
 CONCLUSION OF THE STUDY

This study concludes that –

1 Customers are very much aware about the products and brand of the Hyundai Motors
India Limited.
2 Mainly young youth prefers Maruti Cars .
3 Hynduai is the major competitor of Maruti.
4 Maruti Cars are fuel efficient.
5 Company can get large market share by pricing down of their cars.
6 Company is preferable among customers due to its best services.

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 LIMITATIONS

 Limited area.
 Limited time period due to regular classes.
 Some responses to the questions were abacuses.
 Sample was convenience sample.
 Some respondent were not willing to give the answer.

83