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Consumer Behaviour - Maruti Suzuki

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Introduction to the topic

There are rapid changes taking place in the business environment today. Change is what product
the customers are asking for in each and every product. With respect to automobiles world, it
suits even better. Not so long ago, automobiles were very few in numbers. But, now the situation
is such that the companies are manufacturing as per the taste and preferences of the customers.
When the customer’s tastes keep fluctuating, it is very important that the companies must find
out as to what is lacking and hence what best can be done to overcome that.

Manufactures must respond to market trends while marketing themselves responsible for
protecting the environment. Their main aim is to focus on the customers and satisfy his needs in
order to achieve success.

Marketing is the creation and delivery of standard of living. The main aim of marketing is to
meet and satisfy customer’s needs and wants. Marketing success greatly depends on the ability
of the marketer to forecast the demand for his product.

Understanding customer behavior is never easy. As a marketer, it is very important to understand


customer behavior, so as to be able to predict how consumers are likely to react to various
informational and environmental cues and devise marketing strategies according. This will help
to earn a competitive advantage at the market place. Hence, now-a-days companies are trying to
achieve for higher TCS-total customer satisfaction.

With a release of new model every other week, there is a very cut throat competition among the
competitors. Especially in the “B” segment, Where-in customers prefer a luxurious yet an
affordable car.

The Garden City of India and more recently the I.T. Capital of India is how the world
sees the one of the most popular and the liked city in India- Bangalore. This city has gone
through a number of changes in recent years. A whole a lot people from all over the
globe are not only investing, but also area making the city as their home. With so many
MNC’s establishing the city as their base. Has made the automobiles giants to come out with
new and more luxurious products at affordable prices to launch here.

MARKET

The term market cannot be put together in a single way. It has very broad sense. It may be
considered as a convenient meeting place where buyers and sellers gather together for exchange
of goods. A market can exist when ever buyers and sellers are in free contact with one another
that only as single price prevails for a commodity at any given time.

MARKETING

Marketing indeed an ancient art, which has been practiced in one form or the other.

Philip kolter defines marketing as “ as a social process through which individuals and groups
obtain what they need and want through creating, offering and freely exchanging product and
services”.

MARKETING MANAGEMENT

Marketing management is the process of planning and executing the concept, pricing, promotion
and distribution of ideas, goods, and services to create exchange that satisfy individual and
organizational goals.

MARKET SEGMENTATION

Market segmentation is the process of dis-aggregating the total market for a given product, into a
number of sub-markets. This process confers several benefits on the marketing man. It helps him
to distinguish him to decide which segment of the market should from his target.
Segmentation brings benefit to customers as well. When market segmentation reaches higher
levels of sophistication and perfection, customers and companies can choose each other for
mutual benefit and satisfaction. The common methods of market segmentation are:

1) Geographic segmentation- religion, continent-state.


2) Demographic segmentation- family, religion, gender.
3) Psychographic segmentation –personality, lifestyles.
4) Buyer Behavior segmentation- benefits, user rates.
5) Volume segmentation –quantity of the purchase.

CONSUMER MARKET

“ A consumer market can be defined as all the individuals and households who buy goods and
services personal consumptions”.

CONSUMER BEHAVIOUR

All psychological, social and physical behavior of all potential consumers as they become aware
of, evaluate, purchase, consume and tell other about products and services.

Consumer behaviour is a very important factor in the research carried out by the company. It
forms a base for the company by giving out the tastes and preferences of the consumers. Thus the
study of consumer behavior of the segment market is understood.
FACTORS OF CONSUMER BEHAVIOUR

The factors influencing consumer behaviour:

1. Cultural factors: this consists of cultural factors, sub-culture and social classes which are
particularly important in consumer behavior.
2. Social factor: this include reference group, family and social roles and statures
3. Personal factors: age and stage in the life cycle, occupation, economics circumstances,
lifestyles and personality and self-concept constitutes the personal factors.
4. Psychological factors: Person choices are influenced by motivation, perception, learning,
benefits and attitudes.

GLOBAL SCENARIO

Today, the automobiles industry has grown into large business that involves billion of dollars.
The competition among manufactures has become very intense. This competition make car
pricing very competitive. Manufactures now only receive slim profits per vehicles where before
they; they were able to gain high profits. The life cycle of the car also have been short ended due
to Japanese manufactures, who only allow 4 years of life cycle for each model. European and US
manufactures have followed this trend. They have reduced their products life cycle from ten
years to five years on an average.

Ever since the birth of automobiles by Henry Ford, the world has seen a dramatic change in
development of cars. Through out the years, innovation has not only made the appearance of a
automobiles more extravagant, but it has also enable car companies, such as general motors, to
produce a safer as well as more efficient models of transportation. Along with the United States,
the Swedish car companies (Volvo and Saab) are also producing innovative and safer vehicles.
The shift of focus to safety in vehicles instead of horse power looks has lead to numerous
features that already have been implemented or are going to be introduced in the up coming
years.
The automobile dealership is a highly competitive business in US. The most successful
dealership in the US must have a consumer services in addition to good products. This proven by
the fact that in short periods, Lexus has out numbered Mercedes Benz and BMW in number of
cars that they can sell each year, although Mercedes Benz and BMW already being doing
business in the US earlier than Lexus. Lexus was ranked first in JD power survey for quality. It
was also number one for customer satisfaction. Lexus ranked first in JD power survey for quality
and customer satisfaction or the last four years (1994-1998). Car leadership tries to find many
effective ways to have a high level of customer satisfaction.

The automobiles industry has become a very complicated business which uses a lot of high-tech
equipment. There are a lot of risks involved in this area-risk in the business itself and also risk
that involve people in the industry. This industry already uses billion of dollars in order to
develop safety equipment which can reduce the risk in case of car accidents. They still continue
to do research in order to make car as safe as possible. They are also trying to give a lot of
attention to their workers affairs, especially production line workers, because they know that
their workers have to do their work as accurately as possible in order to comply with today’s
demand.

Today, consumers are more concern about car quality and customer service. That is why
manufacture who has a high quality product and out standing customer services has high sales
but also has a more expensive product. Today, the people are willing to pay extra money for
quality product and good treatment.

In order to survive in this business area, the automobiles manufacture extends their warranty and
also offer a high quality product at a competitive price. That is why today’s automobiles have
higher quality than in the past.
Introduction to the Industry
Today, the automobiles industry has grown into large business that involves billion of dollars.
The competition among manufactures has become very intense. This competition make car
pricing very competitive. Manufactures now only receive slim profits per vehicles where before
they; they were able to gain high profits. The life cycle of the car also have been short ended due
to Japanese manufactures, who only allow 4 years of life cycle for each model. European and US
manufactures have followed this trend. They have reduced their products life cycle from ten
years to five years on an average.

Ever since the birth of automobiles by Henry Ford, the world has seen a dramatic change in
development of cars. Through out the years, innovation has not only made the appearance of a
automobiles more extravagant, but it has also enable car companies, such as general motors, to
produce a safer as well as more efficient models of transportation. Along with the United States,
the Swedish car companies (Volvo and Saab) are also producing innovative and safer vehicles.
The shift of focus to safety in vehicles instead of horse power looks has lead to numerous
features that already have been implemented or are going to be introduced in the up coming
years.

The automobile dealership is a highly competitive business in US. The most successful
dealership in the US must have a consumer services in addition to good products. This proven by
the fact that in short periods, Lexus has out numbered Mercedes Benz and BMW in number of
cars that they can sell each year, although Mercedes Benz and BMW already being doing
business in the US earlier than Lexus. Lexus was ranked first in JD power survey for quality. It
was also number one for customer satisfaction. Lexus ranked first in JD power survey for quality
and customer satisfaction or the last four years (1994-1998). Car leadership tries to find many
effective ways to have a high level of customer satisfaction.

The automobiles industry has become a very complicated business which uses a lot of high-tech
equipment. There are a lot of risks involved in this area-risk in the business itself and also risk
that involve people in the industry. This industry already uses billion of dollars in order to
develop safety equipment which can reduce the risk in case of car accidents. They still continue
to do research in order to make car as safe as possible. They are also trying to give a lot of
attention to their workers affairs, especially production line workers, because they know that
their workers have to do their work as accurately as possible in order to comply with today’s
demand.

Today, consumers are more concern about car quality and customer service. That is why
manufacture who has a high quality product and out standing customer services has high sales
but also has a more expensive product. Today, the people are willing to pay extra money for
quality product and good treatment.

In order to survive in this business area, the automobiles manufacture extends their warranty and
also offer a high quality product at a competitive price. That is why today’s automobiles have
higher quality than in the past.
Introduction to the company
The automobiles industry after four decades of severe projectionist and regulatory policies was
completely deregulated when passenger cars were deli censed in1993.Until then the Indian car
market was dominated by three major car manufactures.

Hindustan motors limited which was country’s oldest car manufacturer and which ruled the
Indian market during the early 1950’s and late1960’s .Premier automobile limited was the
country’s second oldest car manufacturing unit, which began operations in the mid 1950’s and
later went on to acquire a major market share during the early 1970’s and early 1980’s.

Maruti Udyog Limited was the country’s youngest car manufacturer. It was formed in 1983 as
a result of the joint venture between MUL and Suzuki Motor Corporation Japan.

The de-licensing of Indian car industry resulted in an increase in demand coupled with a 6-8
percent growth in G.D.P leading to sky rocketing automobile sales. Passenger car sales reached
4, 44,615 in the period between April 1997 to March 1998. An increase of 30% from the
previous financial years figure of 3,65,512.

With this dizzy sales figure, it appears that India, which still has a low motorization, is rapidly
discovering the miracle of mobility and the vast demand potential. In turn growth will be rapid
and sustained.

Spurred on by a combination of factors, growth is strongest in the passenger car industry. The
rapidly, expanding middle class, a healthy growth in the working population and in wage rates
have strengthened the purchasing power of Indian consumer who now see a set of wheels as the
icon of modern society. Further, more the increasing competition in the auto industry and auto
finance sector make cars increasingly affordable.

The reform process has thrown open the automobile and auto-related industries to Indian and
foreign investors. Over 25 projects with a fresh investment of Rs.40, 000 crores are expected to
increase production capacity in the automobile industry from four million units in 1998 to eight
million by the turn of the century.

Premier Automobile Limited entered into a technical collaboration with Fiat of Italy to
manufacture the Fiat UNO.

The top end of the market was not to be left out and Mercedes Benz India Limited, a joint
venture between Mercedes Benz, AG and Telco introduced the E-class Mercedes. BMW with
their tie up with Hero Motors will bring their latest 5 series cards A4 and A6 saloon.

Thus with the arrival of all the above cars in Indian Market, a great battle will be fought by the
above car manufacturers with established players like Ford for a greater share of the market.
However, the Indian consumer will be the ultimate beneficiary since he will have a greater
choice and access to car having world class technology and superior quality.

There was a time, early on, when automobile industry was virtually formed on the advice on
every move approved by the government of India. It done merely to encourage the local
manufacturers to manufacture and display their skills. The other reason was because, the
government has develop an indigenous automobile industry in the country. This forced the
manufacturing plants that is, the assembly plants to shut their operations as a result, a whole lot
of international plant viz, Ford General Motors and other assembly plants had to choose their
units.

The Pre-liberalization era of the car industry was characterized by the limited production
Hindustan Motors ruled the car Industry for a long time seeing this there was no other car being
offered especially for house hold segments.
Premier Automobile Limited (PAL) entered the market it introduced Premier when the license
agreement with expired and through this offering kept its niche secured in that household
segment.
Sipani Auto limited (SAL) entered the marketing during 70’s with two brand Dolphin, Badal.
SAL holds the distinction of launching the new model in India.

This was a good decision due to the on-going oil crises. However the venture was
unsuccessful.SAL tried to manufacture engines by itself in Coimbatore but its efforts ran into
technical hurdles and proved to be a non –starter . On the production side, annual production of
the automobiles was 34,000 units on an average in the period between 1966 and 1970 .The
market then showed an upward swing with the average production rising to 39,933 units. Thus
the growth was high between 1970 and 1973. Thereafter the industries passed through
recessionary phase between 1974 and 1980. The period was characterized under utilization of
capacity with the average production falling to 30,938 units.

The entire scenario changed when Maruti Udyog Limited (MUL) entered the market in 1983.
MUL with a introduction of Maruti 800 provided a complete facelift to Indian car Industry .It’s
emphasis was to create a middle class, mass-market segments. It emphasis on fuel efficiency and
low running cost helped it to achieve this objective.

Maruti 800 was well accepted by middle income families in the country and its sales increased
from 1200 units in financial year1984 to more than 200000 units in financial year 1999.

Post-liberalization era: In 1993 licensing in automobiles was done away with after initiation of
reforms in 1993 .This promoted the entry of global automobiles manufacturers through financial
and technical collaborations with the domestic companies.

Now –a- days , automobile industry in experiencing a fierce competition with companies
offering a wide range of products to suit all segments of society. Internationally acclaimed and
top –notch car manufacturers such as BMW , FERRARI , AUDI, PORSCHE among others are
likely to storm the Indian market in coming months.
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to
meet the growing demand of a personal mode of transport caused by the lack of an efficient
public transport system.

Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due
not only to their undisputed leadership in small cars but also to their commitment to actively
bring to MUL contemporary technology and Japanese management practices (which had
catapulted Japan over USA to the status of the top auto manufacturing country in the world).

A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor
Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL then were:

 Modernization of the Indian Automobile Industry.


 Production of fuel-efficient vehicles to conserve scarce resources.

Maruti's assembly line is situated on old Gurgaon - Delhi Road, at distance of about 7 km from
Gurgaon Bus Stand

Around 1970, Sanjay Gandhi, the then Prime Minister of India Indira Gandhi's younger son,
envisioned the manufacture of an indigenous, cost-effective, low maintenance compact car for
the Indian middle-class. Indira Gandhi's cabinet passed a unanimous resolution for the
development and production of a "People's Car". Sanjay Gandhi's company was christened
Maruti Limited. The name of the car was chosen as "Maruti", after a Hindu deity named Maruti.

At that time Hindustan Motors' Ambassador was the chief car, and the company had come out
with a new entrant, the Premier Padmini which was slowly gaining a part of the market share
dominated by the Ambassador. For the next ten years, the Indian car market had stagnated at a
volume of 30,000 to 40,000 cars for the decade ending 1983.
Sanjay Gandhi was awarded the exclusive contract and licence to design, develop and
manufacture the "People's Car". This exclusive rights of production generated some criticism in
certain quarters, which was directly targeted at Indira Gandhi. Over the next few years, the
company was sidelined due to the Bangladesh Liberation War and emergency.

In the early days under the powerful patronage of Sanjay Gandhi, the company was provided
with free land, tax breaks and funds. Till the end of 1970s, the company had not started the
production and a prototype test model was welcomed with criticism and skepticism. The
company went into liquidation in 1977. The media perceived it to be another area of growing
corruption. [4] Unfortunately, Maruti started to fly only after the death of Sanjay Gandhi, when
Suzuki Motors joined the Government of India as a joint venture partner with 50% share.

After his death, Indira Gandhi decided that the project should not be allowed to die. Maruti
entered into this collaboration with Suzuki Motors, The collaboration heralded a revolution in the
Indian car industry by producing the Maruti 800. The car went on sale on December 14, 1983. It
created a record by taking 13 months time to go from design to rolling out cars from a production
line. By the year 1993 the company had sold up to 1,96,820 cars, mostly by selling its chief
product the Maruti 800s. By March 1994, it produced one million vehicles, becoming the first
Indian company to cross this milestone. It reached the two million mark in October, 1997 and
rolled out its 4 millionth vehicle, an Alto-LX, on April 19, 2003.
Sagar automobiles

PROFILE OF THE DEALER: SAGAR AUTOMOBILES


For decades the city of Bangalore, the fastest growing and the 'happening city' of Asia has been
witnessing the quite happenings at the Sagar Group, the forerunner in path breaking ventures that
has been touching the chords of the populace - and every segment of it.

Involved in diversified activities that touch the very pulse of people.

 Education
 Automobile
 Hospitality
 Healthcare
Sagar Group is a pioneer in creating sophistication in the selling of automobiles. The Group
caters to the growing 4 wheeler segment

 Exclusive service and sales of MARUTI-SUZUKI passenger class vehicles.


 The retail units full-fledged with customer lounges, spares and accessories showrooms etc.
 Also has counters of various car-finance companies, offering complete customer care
 An ISO 9002 company.
Literature review

1.Customer Perception and Behaviour of car Owners an Empirical Study in


Bangalore City

OBJECTIVES OF THE STUDY


The purpose of this research is to study the behaviour of consumers,
perception of product attributes and level of satisfaction. The following
are the objectives:
• To present the historical perspective of the Indian Passenger Car Industry.
• To analyze the socio-economic profile of the sample respondents.
• To evaluate car owners’ perception and behaviour pertaining to the purchase and use of cars.
• To identify and analyze the factors influencing the purchase of cars.
• To analyze the level of satisfaction among the respondents and to identify the switch over
brand option if any and
• To make suggestions in the light of the findings of the study.

RESEARCH METHODOLOGY
A sample of 100 consumers was selected for the present study around Bangalore City which is in
Karnataka. It consists of 50 consumers from Bangalore Urban and 50 consumers from Bangalore
Rural. A structured questionnaire was designed and administered among the respondents to give
a fair representation to various attributes of the consumer. The secondary data has been collected
from various published articles, through internet, journals and magazines. For the purpose of
evaluation, the percentages, chi-square test have been used for meaningful analysis and clear
presentation.
• Deciding who is to be surveyed (Deciding Sample Unit) – Urban and Rural Consumers in
Bangalore City.
• How many people should be surveyed (Deciding Sample Size) – 100 Urban and Rural
Consumers.
• How many people in the sample to be chosen (Deciding about sampling procedure) – 100 that
is (50 Urban and 50 Rural consumers)will be chosen in the sample.
The type of sample design used by me in the survey was that of Non - Probability Quota
sampling method since the sample will be chosen at random. Stratified random sampling is
generally applied in order to obtain a representative sample. Here under stratified random
sampling method the population is divided into different sub-populations called “Strata” which
are more homogeneous than the total population and then we select items from each stratum to
constitute a sample. Since each stratum is more homogeneous than the total population, we are
able to get more precise estimates for each stratum and by estimating more accurately each of the
component parts; we get a better estimate of the whole, which results in more reliable and
detailed information.

MAJOR FINDINGS
1. Equal number of male and female respondents was chosen for the study
2. T.V ads are the biggest influence on purchase of four wheelers.
3. There was more or less equal representation from the various occupations in the study with
highest representation from the students
4. Value for money and satisfaction are the two important factors according to the respondents.
5. Brand name followed by popularity is the most frequent basis of selection of brand
6. Sample has been chosen more or less equally from all parts of the city.
7. Advertisements followed by television are the main sources of knowledge about latest brands
and trends
8. Most of the people choose celebrity as the important element
9. Price seems to be an important factor in choosing the brand
10. Most of the people see for offers and discounts while purchasing a four wheeler.
11. Most of the people are undecided about the importance of range of colours to choose the
product.
12. Most of the people look up to other for cues and style.
13. Most of the people go for second opinion while taking purchase decision.
14. 50% of the respondents are price sensitive
15. Most of them are influenced by the quality in purchase decision.
CONCLUSION
Consumer Behaviour consists of all human behaviour that goes in making purchase decisions.
An understanding of the consumer behaviour enables a marketer to take marketing decisions
which are compatible with its consumer needs. There are four major classes of consumer
behaviour determinants and expectations, namely, cultural, socioeconomic, personal and
psychological. The socio-economic determinants of consumer behaviour consist of age, marital
status, occupation, education, income, family size etc. Realizing the importance of passenger
car industry in the present economic situation, the researcher has analyzed the perceptions and
behaviour of consumers related to this product. There are certain product attributes which are
identified in the study as influencing the purchase decision and satisfying the consumers.
Manufacturers should concentrate on these features as they influence the choice of more
prospective buyers. The growth of population in India and the increasing number of middle class
consumers have attracted the attention of car manufacturers and marketers. The manufacturers
and marketers who study the behaviour of consumers and cater to their needs will be successful.
It may be concluded that consumer behaviour has a greater role to play in the LPG era of
economic activities and future research may be directed towards the study of eco friendly fuel
cars.

2. Consumer perceptions and behaviour : A study with special reference to


car owners in Salem district of Tamil Nadu

Objectives
The purpose of this research is to study the behaviour of consumers , their importance in the
aspects of lifestyle ,perception of product attributes and level of satisfaction . Hence , the
study is aimed at the following objectives .
1. To evaluate car owners perception and behaviour pertaining to the purchase and use of
cars.
2. To identify and analyze the factors influencing the purchase of cars .
3. To analyze the level of satisfaction among the respondents and to identify the switch over
brand option , if any
4. To make suggestions in the light of the findings of the study

Methodology

The researcher initially conducted a pilot study in order to find out the feasibility and the
relevance of the study . The present study is based on the perceptions ,behaviour satisfaction
of the consumers for passenger cars . Sources of the primary and the secondary data are
dicussed . The researchers has used interview schedule for the purpose of collecting primary
data . The researchers have decided to select sample respondents by adopting the simple
random technique. The secondary data have been collected from the companines - bulletins ,
annual reports and websites . The researcher has used national and international journals in the
field of management , as well as marketing , business magazines ,business dailies ,referred to
text books in marketing management as well as consumer behaviour and acdameic studies
conducted in the related areas for the purpose of building a strong conceptual background.

Major Findings

1.Manufacturers should concentrate on to attract the prospective buyers.


2. People who were not ready to spend their money on luxuries have now changed their
attitude that ‘yesterdays luxuries are today’s necessities.

Conclusion
Consumer Behaviour consists of all human behaviour that goes in making purchase decisions.
An understanding of the consumer behaviour enables a marketer to take marketing decisions
which are compatible with its consumer needs. There are four major classes of consumer
behaviour determinants and expectations, namely, cultural, socio-economic, personal and
psychological. The socio-economic determinants of consumer behaviour consist of age, marital
status, occupation, education, income, family size etc. Realizing the importance of passenger car
industry in the present economic situation, the researcher has analyzed the perceptions, and
behaviour of consumers related to this product. It is rightly said; yesterday‟s luxuries are today‟s
necessities. Hence in this digital world, car is no longer a luxury.

3. Consumer satisfaction , dissatisfaction and post – purchase evaluation : An


empirical study on small size passenger cars in India

Objectives
The goal of the present study is to evaluate the consumers’ satisfaction over a period of time in
using their durable product small passenger cars and the relationship between the satisfaction in
post purchase product performance and consumer’s future purchase decision. The study
emphasize on the following objectives;
• The consumers’ satisfaction and product performance by using multiple attributes
of small car and consumption experience of users.
• To examine the relationship between the consumer satisfaction and the impact on
future purchase decision. The following hypotheses are developed.

Methodology
In order to analyze the research objectives and measure the consumer satisfaction the descriptive
research design is considered and it is best suited for this research. To measure the consumer
satisfaction with respect to small size passenger car questionnaire was designed to collect
primary data . The product attributes which are selected for study were selected from the product
literature but to know the important attributes for satisfaction measurement the questionnaire
were circulated to few respondents . For data collection it was decided to use judgmental
sampling and the respondents were selected on the basis of judgement. Since the consumers who
are really using the small car and have the driving experience were asked to fill the
questionnaire; therefore other sampling technique was not considered for this study. The data set
comprises automobile owners having consumption experience from one year to more than five
years.

Major Findings

1. Consumer’s satisfaction are measured by taking major product attributes and examine the
satisfaction impact on consumer’s post-purchase evaluation decision.
2. In automobile segment consumers satisfaction can be measured by taking attributes such as air
condition effectiveness, driving comfortness, gear operation, safety of the passenger/owner,
spaciousness, etc.
3. The satisfaction of the product can be measured in pre-warranty and post-warranty period and
the availability of auto component in the market and their compliance to the product.
4. In this study cars running mileage is not considered which another research issue is because it
is not the question of how old is the car but how many kilometers the car has run is important.

Conclusion
Consumer satisfaction is important because of itsrole in creating competitive advantage and it
has received significant attention in marketing. Highly satisfied customer will be brand loyal,
remain customer longer, provide favourable word-of-mouth advertising, increase purchasing of
offerings and enhance sales. On the other hand dissatisfied customers are likely to stop
purchasing the offerings to provide unfavourable word-of-mouth advertising and to complain,
return and boycott the product class, the brand and the seller or retailer. Ignition, pickup and
wiper are giving high satisfaction than other attributes. . Consumer purchase or repurchase a
products underlies consumer behaviour and consumer psychology. Therefore managers of
automobile companies should give more emphasis on consumer satisfaction on various product
attributes. Since small size passenger cars are growing in Indian market and attracting more and
more new players the marketing managers should more concern about it.

4.Effects or after sales services of cars in building customer loyalty

OBJECTIVES OF THE STUDY:


1. To study the effect of after sales services of Cars in Building Customer Loyalty on basis
of after sales service provided by the car companies.
2. To give rating to the car companies on the basis of after sales service provided by them.
3. Issues which customers give preference while rating customer satisfaction/loyalty post
buying a car.
4. Awareness among people regarding the services offered by the various car companies
and car dealers.

Methodology
In this study descriptive research design was used to describe from respondents about their
loyalty and satisfaction about the service provided by car companies. Sample Size is 90
Respondents who are using Maruti, Hyundai, and Tata Motors cars. The tool used by researcher
for data collection is Questionnaire and Secondary through Journals, Magazines, and Websites.
The Sampling technique used is Non probability sampling and sampling method is judgment
Sampling.

Findings
1.From the survey conducted it was found that 67.8 % preferred Maruti as the brand
2. From the survey it was found that average age of the cars was 1-5 years
3. Thus, the data shows that 83% of the people surveyed say that after sales service does affect
the overall image of the company. So the car manufacturing companies have to focus on their
after sales service in order to maintain brand loyalty.
4. From the survey conducted it was found that 61.1% of the respondents found the service
delivered by the service stations to be reliable. But companies need to work on it improve upon
this figure.
5.From the survey it is found that 67.6% of the respondents from the sample were satisfied with
service provided by the companies. But still companies need to work on it.
6. From the survey it was found that 72.2% of respondents were satisfied with the no: of service
stations available within their reachable area.
7. From the survey conducted it was found that 56.7% of respondents ranked Maruti as no.1 car
on the basis of after sales service.
8. From the survey conducted it was found that 31.1% of respondents ranked Hyundai as no.1 car
on the basis of after sales service.
9. From the survey conducted it was found that 7.8% of respondents ranked Tata Motors as no.1
car on the basis of after sales service.
10. From the survey it was found that 56.7% of the respondents said that they consider after sales
service delivered by the companies as the important factor while buying a car.
11. 73% of the respondents believe that dealer network is not a major criterion while buying a
car.
12. Majority of the respondents believe that service station network is not a major criteria while
buying a car.
13. Brand image is very important factor which is considered by the respondents while buying a
car.
Conclusion
1. From the survey conducted it was found that 67.8 % preferred Maruti as the brand.
2. From the survey it was found that average age of the cars was 1-5 years.
3. The data shows that 82% of the people surveyed say that after sales service does affect the
overall image of the company. So the car manufacturing companies have to focus on their after
sales service in order to maintain brand loyalty.
4. From the survey conducted it was found that 61.1% of the respondents found the service
delivered by the service stations to be reliable. But companies need to work on it improve upon
this figure.
5.From the survey it is found that 67.6% of the respondents from the sample were satisfied with
service provided by the companies. But still companies need to work on it.
6.From the survey it was found that 72.2% of respondents were satisfied with the no: of service
stations available within their reachable area.
7. From the survey conducted it was found that 56.7% of respondents ranked Maruti as no.1 car
on the basis of after sales service. From the survey conducted it was found that 31.1% of
respondents ranked Hyundai as no.1 car on the basis of after sales service.
8.From the survey conducted it was found that 7.8% of respondents ranked Tata Motors as no.1
car on the basis of after sales service.
9.From the survey it was found that 56.7% of the respondents said that they consider after sales
service delivered by the companies as the important factor while buying a car.
10.73% of the respondents believe that dealer network is not a major criterion while buying a
car.
11.Majority of the respondents believe that service station network is not a major criteria while
buying a car.
12.Brand image is very important factor which is considered by the respondents while buying
5.Trends of automobile brand preference in Rajkot

OBJECTIVES OF THE STUDY


1. To accomplish the perspective of Brand promoting Brand passenger cars.
2. To achieve representation of passenger car purchasers.
3. To acquire knowledge of the level of fulfillment of passenger car users.

Methodology
 Research design Descriptive
 Research type Primary research (questionnaire)
 Secondary research (journals, publications, books, websites)
 Sampling method Convenient sampling technique
 Sample area Rajkot
 Sample size 250

Findings
1.It is found that Maruti passenger cars are used by sixty percent of the consumers.
2.The most important factor while choosing a car is found to be brand status, followed by
price and then mileage.
3.It is found that 76% of the respondents do not want to change their brands while 24% of
the respondents would like a change in the brand that they are using.
4.It is found that 78% of the respondents are satisfied with the car they are using.
5.It is found that Personal factors like age, education qualification, gender, occupation and
income status have significant influence over the factors influencing brand preference.
Conclusion
The Automobile industry is emphatically moving towards globalization, which increasingly
affects the policy at local, regional and global levels. The present study made a systematic effort
on studying consumer brand preference towards cars by analyzing the factors that influence
brand choice of the customers. It also brought to light the impact of brand preference dimensions
on customer satisfaction. There is cut throat competition in the market on price front and so
companies have to find ways of reducing costs without compromising on quality. The
characteristic of this specific industry is that the marketing defines, creates and forms the goods
and their target groups, possibly more than any other industry in the world. Ability to meet
changing technology, customer’s needs and styling and shortening product life cycle are the
challenges that passenger car companies are up against. But one thing is certain; the automobile
industry will only flourish with time.

5.Sales promotion and its effectiveness : A study on selected small car companines and
dealers in Bilaspur , Chattisgarh

Objectives
1. To study and analyze the elements of Promotional Strategies.
2. To find out the effectiveness of sales promotion strategies of Maruti, Hyundai, TATA, cars in
Bilaspur Chhattisgarh.
3. To study the sales promotions activities done by Maruti, Hyundai, TATA motors to maximize
the sales and capture a larger market share.
4. To make an analysis of effectiveness of each promotional strategy for cars.
5. To study the effectiveness of after sales service.
6. To evaluate customers satisfaction on small car segment.
7. To find customer awareness about various promotional activities.
8. To study the attitudes of customer.
9. To study the customer response regarding the promotions of cars in India.

Methodology
Both primary and secondary data was collected with the help of questionnaire, newspapers,
magazines and company broachers, websites, etc., from 100 respondents of different age groups,
gender, occupation, education, social, class group, geographic location etc. Out of which 70
turned as actual respondents. Statistical methods used while analyzing and interpreting the data,
simple statistical techniques like averages, percentages have been used. For graphical
presentation simple column diagram are used.

Findings
from the survey it was found that 50 % of respondents prefer Cash incentives most from other
sales promoting activity.
Regarding the choice of cars from the survey I came to know that 50 % of the respondents go
with the company’s image as well as 17 % with the mileage.
It is more clear from the table 1.3 that media is more preferred by the customers to get known
about any car. Thus I can say that about 54 % of the respondents know about the cars through
Media.
From the survey it can be said that advertisements create long term impact on sales promotion.
The above table shows that 36% of respondents have agreed with this.
The above table shows 36% of respondents said that Television Advertisement is one of the
media which has more impact on them.

Conclusion
The effective sales promotion strategy would be a biggest strength of any company to compete
with global completion. One of the sales promotion tool adopted by the car manufacturing
automobile companies is advertising with celebrities which added a good status symbol to the
products. Most of the customers buying perception were positive because car resembled a status
symbol in the society nowadays. Through this study it can be said that media is playing the
biggest role and advertising has become an effective tool of automobile companies to motivate
the customers and to drive them to purchase a car. To the outlook of customers is growing high
due to the promotions of cars through various media and now the can think, choose and purchase
more better in Bilaspur and Chhattisgarh as well as in India.

7.Model Development and Validation for Studying Consumer Preferences of Car Owners

Objectives
The objective of the research paper is to explore and conceptualize various parameters, which
influence the purchase patterns of passenger cars in the State of Kerala. The paper also aims to
develop a framework to study the behavioral patterns, and also validate the acceptability of the
research model so developed, which might eventually influence the consumer purchase, of the
passenger cars in the State.

Methodology

The paradigm underlying this research study is for evolving realistic consumerist tendencies, in
the passenger car industry. The methodology adopted is to use exploratory approach. It
incorporates three or more views of reality, typically involving a Literature Review of the past
and current research work in the respective area, a qualitative and quantitative study assimilating
the power of a consumer questionnaire, and consolidation of these methods and views to obtain
confirmatory results and thereby a better understanding of the problem that is being addressed.

Thus, the research methodology adopted in this research study comprises of the following stages:
Literature Review, that is the secondary research

An exploratory stage that is the Primary Research, consisting of Depth interviews with Car
Dealers of new and second-sale cars, Car Financing Agencies and car owners in the city of
Cochin. Questionnaires were devised to drive the in-depth interview with car dealers of various
manufacturers, second-hand car dealers, car financing agencies, and car owners in the city of
Cochin, Kerala, India.

For depth interviews, sample selection of dealers of 10 major car brands such as Maruti Suzuki,
Tata Motors, Ford, Toyota, General Motors, Skoda, Hyundai, Honda, Renault, Mitsubishi,
Hindustan Motors, Tata Motors, and Fiat India were chosen from the City of Cochin. A few of
the second- sale dealers were chosen from the City of Cochin, again randomly, to get their views
on preferences of buyers of second-sale cars. Similarly agents of most of the car financing
agencies were chosen randomly from the city of Cochin. Twenty five Car owners were chosen
randomly from the city neighborhood, to elicit their preferences on the car purchase and related
features.

Major findings

1) Small car market is becoming prominent in the state due to its limited road and parking space
availability. Many of the major players in the market have launched their small car variant in the
market, enthused by the excellent response elicited by Tata‟s Nano car.

2) Middle level segments – Sedan and Higher Sedan executive models are really growing and
gaining momentum in the state

3) Customer focus is a major differentiator in the passenger car industry, wherein the customer
looks for personalized care for his after sales service with the manufacturer / distributor.

4) Since there is a major percentage of commoditization in the automobile industry, due to the
many choices of brands available immediately, manufacturers have to look internally, if there are
making enough growth in the industry, whether it is due to their incompetence or reduced levels
of customer satisfaction.

5) For the youth, who is on the move, peer group is the greatest influencing factor, of their car
purchase decision.
6) Irani (2010) argues that for the middle class customers, who seek to enhance their ego, are
finding themselves increasing being influenced by their children, who are well informed about
the rapid technological changes happening in the auto car segment.

7) Irani (2010) further argues that In a highly competitive and technology driven car market,
differentiation based on traditional parameters such as engine, performance and power, is giving
way to comfort in driving, interior and exterior design and the like.

8) As reported by Jacob and Khan (2010), there is substantial proportion of women car buyers,
which has increased three fold in the recent years. Companies have started to dig deep into the
Indian women‟s psyche and attention for details. Marketers may need to look at the needs of
women customers, who are increasingly growing in the segment. There is also a substantial
influence of women in the car purchase decision of the family. The trend has replicated in the
State of Kerala as well, where we can see many women driving the car in the city and towns.

9) Car makers have woken up to the new reality of internet providing a key role in their
marketing and communication strategies. Internet has witnessed increased brand building efforts
by car companies over the past few years.

Conclusion

As in other industries, the scenario in domestic Indian Automobile Industry is quite different
from the Global Automobile Industry. The industry actually developed in two clear stages - .the
Maruti era (1983 on wards) and the post-liberalization era (1992 onwards). Compared to the
global automobile sector, where substantial research has been done, very little empirical research
has been conducted on the Indian automobile industry. Moreover, no organized study has been
conducted in the area of passenger car industry, with specific reference to the State of Kerala.
Kerala State is well known for its consumerism, due to the higher purchasing power, very high
literacy rate and inflow of foreign money into the State, from the huge number of people of the
State working in US, Europe, Australia, and other Asian and Gulf counties. With many car
manufacturers launching their product in the Kerala state, the study will definitely benefit the
stakeholders of car manufacturers, dealers, financing agencies, to formalize and strategize their
policies towards an effective marketing strategy. The parameters developed in this paper and the
model which has been conceptualized, would be further studied and tested through an extensive
research and quantitative analysis, for data analysis, interpretations and recommendations.

8. A study of consumer preferences for buying passenger cars

Objective

1. To take an over view of automobile industry, cars in particular.

2. To know why customer need a car.

3. To know the major parameters for selecting a car.

4. To know the customer perception about electronic components used in car.


Methodology
Sampling Technique: A survey was conducted in Pune city and the technique of Non Probability
Convenience sampling was used to choose the samples in order to collect required information
from them. Sample size: 250 Data Collection Tool: Structured Questionnaire Data collection
technique: Both primary and secondary data is collected for this study. For collecting primary
data, questionnaire was administered on owners of passenger cars in order to understand their
views and experiences regarding various aspects of the vehicle, which in turn would help to
understand their perception about choosing a car. Primary data was also collected through
observations and discussions. Secondary data was gathered from sources such as relevant web
sites; magazines dedicated to auto & car industry; opinions and statements given by government
officials involved in policy making of auto industry; Automotive Mission Plan Document of
Government of India; research papers on car industry, automobile industry and so on.

Major Findings

1.Most of the respondents have purchased cars manufactured by Maruti-Suzuki, closely followed
by those of Tata and Hyundai. These are the three companies which are trusted more than other
companies in the market.

2. Respondents have given highest weight age to safety parameters in purchase decision. Mileage
is next important factor followed by other factors which are shown in the diagram.

3. Cars are purchased more often for family, although they also fulfill other needs such as
medium of transport, status symbol and a dream come true.

4. Respondents want such music system in their cars which can play CD/DVD. Some have also
preferred USB/Bluetooth/i-pod connectivity in their cars. Listening music while driving is not
only required for entertainment but has also become a style and fashion statement. It reduces
stress while driving. This is particularly experienced at peak hours when the traffic is maddening
and people have to wait at traffic signals for a longer period. Some people who have cars driven
by drivers also want small TV sets in the car.

5. Respondents are not very friendly with the navigation device in the car. They prefer other
methods more than this to reach unknown places. Navigation devises are yet not very popular.

6. Very few have used navigation system in cars so far. Apart from younger generation, middle
aged people and senior citizens are not very comfortable with the usage of technology. They find
it quite complicated and are usually reluctant to learn

7. Some of the respondents wanted to have navigation system and DVD display even at the rear
seat as convenience for all the passengers boarding the car.

8. Most of the respondents who were owners of the high end cars wanted to have touch screen
panel for its operation. This is much easier than using several buttons.
9. Most of the respondents opined that entering address is much easier to get desired information
about how and where to reach.

10. English language over others is preferred by the respondents for display of the required
information.

11. Respondents wanted inbuilt database showing popular places within a city. They said this
will make searching of address even more easy.

12. Specifically respondents are keen to have a screen size of 7” i.e. smaller size screen is
preferred for display of any information.

13. Dolby digital system converts two-channel stereo into natural, richer surround sound and are
incorporated into car sound systems to transform conventional stereo into an exciting new
listening experience. Hence, 60% respondents wanted to have such system in their cars for better
quality of music.

14. Respondents feel that cars with manual transmission system are less convenient to drive but
they provide better fuel efficiency. They are also reasonable in terms of price. However, most of
the respondents said they may think of purchasing automatic transmission cars in future.

Conclusion

Until a decade ago, the auto sector in India had been a relatively protected industry limiting the
entry of foreign companies with high tariffs against imports. Today, as part of a broader move to
liberalize its economy, India has opened up the sector to Foreign Direct Investment, and since
then has also progressively relaxed trade barriers. Growth in the Indian middle-class and easy
availability of credit coupled with new launches and attractive pricing by the players will ensure
its availability and hence will facilitate the growth of this segment. Today, almost all the major
global companies are present in Indian passenger cars segment. Foreign multinationals are
entering in the Indian market with their quality and higher priced luxury cars. German luxury car
maker Porche is also interested to enter Indian car market. Precision cars, an official importer of
Porche cars in India has sold 322 cars in Ahmedabad city only. They have gained 30% share in
Indian premium Luxury car segment by now. Market Share of Maruti Suzuki, (ex market leader)
is reducing year by year. It has reduced to 45% in 2011 from 50% in 2002. Market share of Ford
Motors has shown significant growth in past few years. Consumer behaviour in car buying is
undergoing a sea change. Purchase of luxury cars remains a symbol of power, recognition,
independence and status. Thus, Key drivers for the growth of Indian auto industry are:
Availability of Finance, improved infrastructure, rising family income, favourable duty structure,
poor public transport system, low car penetration, exchange of cars, and changing lifestyle.

9.Factors Facilitating brand equity dynamics ( A


study on Indian car Industry)

OBJECTIVE OF THE STUDY:

1. To identify various brand strategies those influence the brand decision.


2. To identify the social factors influencing the car brand decision in
Puducherry
3. To analyse the importance of various factors like brand knowledge, brand
preference, brand
loyalty, brand application etc in car market in Puducherry

Methodology

1.This is a description study of the factors influencing brand equity among


the car owners in
Puducherry. The study is based on both primary and secondary data which
are analysed using
appropriate statistical tools to draw conclusions.
2. The type of study undertaken by the researcher is adescriptive study.
Since most of the information necessary to fulfil the objectives of the study
was not available from secondary sources, the researcher mainly based this
study on relevant primary datawhich were collected by conducting a field
survey from the selected sample units in Puducherry.
3.The secondary data necessary for the study were compiled from published
and unpublished sources. Thesurvey was conducted during the six months
period from July 2010 to December 2010. Theresearchers have adopted
cluster-sampling technique for choosing sample respondents. 4.The dealers
ofselected car brands are identified as clusters. The sample of 300 car
owners was surveyed for information in Puducherry.
5.The car dealers of Maruti Suzuki Ltd, Tata Motors and Hyundai Motors of
Puducherry were also survey for obtaining information about the facts of
customers. The primary data were collected from 300 car owners through an
interview schedule. The schedule had 50 questions divided into two broad
section viz., Brand Equity strategies and personal information of
therespondents. Based on the literature review, the researcher has proposed
for Brand Equity withseveral dimensions viz. Brand Knowledge, Brand
Application, Brand Relationship Brand Preference and Brand Loyalty.

Findings

1. Majority of the car owners in Puducherry use Maruti Alto. It is followed by Hyundai
Santro, Tata Indica and Maruti 800.
2.Among the social factors it was found that self and family members influenced the
brand equity decision the most. It was followed by friends and relatives.
3. Majority of the respondents strongly agreed that price of the car, mileage, brand image,
after sales service and discount are important factors that influence the car buyers’
decision.
4.Out of the five factor namely knowledge, relationship, application, preference and
loyalty, the brand application factor has been rated as the most important factor in the
car industry in Puducherry.

Conclusion

The five underlying factors, brand knowledge, brand application, brand


relationship, brand preference and brand loyalty make up measures of Brand
Equity. The researchers recommend that these dimensions should be the
integral components in designing Brand equity studies towards car industry.
The car manufacturers and dealers may conduct causal marketing like a
‘wellness programme’ or a ‘literacy campaign’ for the people of a particular
rural or urban area. This will not only improve the sales of the marketer but
will also create strong brand equity of the company and will benefit the
society at large. The marketing efforts should be for the cause of the
potential customers and the existing customers. From the five factors, brand
application factor has been rated as the most important factor in car industry
in Puducherry. This study shows that it is possible to establish where a
company should focus its improvement efforts in order to make it payoff.

10. Consumer Behavior Towards Tata Nano: A Perceptual Study

Objectives

The study basically aimed at examining the consumer behavior of individuals towards Tata Nano
after its launch. Specifically, the perception and their experience with the car was examined and
the factors that motivate them to purchase this small car.

Methodology
The present study is mainly based on primary data collected from around 100 respondents from
Amritsar. These respondents were interviewed through a pre-tested, well structured questionnaire
which was administered personally. Convenient and judgmental sampling method has been used
keeping in view the socioeconomic characteristics. Five-point scale has been used for the said
purpose ranging from strongly agree to strongly disagree. The families residing in the posh and
planned colonies were selected for the survey. To find out the perception of respondents towards
Nano, factor analysis was used. Factor analysis is a set of techniques which, by analyzing
correlations between variables, reduces their number into fewer factors which explains much of
the original data, more economically (Nargundkar, 2010). The survey was conducted during the
period from January 2010 to March 2010. The demographic characteristics of the respondents
depict that the majority of users of Tata Nano were in the age group of 20-30 years and 64% of
them were females and most of them were graduates.

Findings
1. Shifting from bike to Nano would increase the social status .
2. People would prefer Nano as it is a family car and is of low maintenance .
3. Nano is more of risk and discomfort as it is more accident prone .
4. Negative aspects like pick up ,less powerful engine and not suitable on highways,after
sales service not easily available , noisy engine .
5. As it is a fuel efficient car the running cost is less .

Conclusion
The perception of people towards Tata Nano after its launch has been worked out with the help
of questionnaire. The results of factor analysis revealed that motivational variables like
enhancement of social status, low maintenance cost, etc., motivates a potential customer to
purchase this car. Some persons were disappointed with the working of this car as they
considered it risky. They think that Tata Nano is more accident prone as it’s a very small car and
moreover there were some reports regarding bursting of its rear engine in case of rear collision.
There is a huge waiting list for the purchase of this car and more over it is uncomfortable due to
less boot space. There is a performance problem as its pick up is very low and engine is less
powerful. It is not suitable to drive on highways as its highest speed limit is only 80 km/h adding
to dissatisfaction in customers. It is a less expensive car when compared to other cars. Therefore
even low income group can buy it leading to high congestion on roads and adding to parking
problems.
Promotional strategies also tempted potential customers to buy it. Its brand ambassador being
Ratan Tata himself really helped it in increasing its sales. Dealer’s image also affects customers’
decisions adding to high sales of Tata Nano.The price of car is low, and so it can be gifted to
children instead of two wheelers.Its low price complemented with the Tata’s market penetration
strategy as with this low price figure, it can even reach rural areas and capture this untapped
market. Some of the customers of Tata Nano were dissatisfied with the car due to bad after-sales
service and moreover its noisy engine disturbs the customer. At last, it is recommended that Tata
Nano is really a people’s car but company needs to work more on its features and safety and
enhance its production so that people don’t have to wait to purchase it.

Research Design

Title of the project

Consumer behaviour with special reference to Maruti Suzuki swift with the special reference to
Sagar automobiles in Bangalore .
Statement of the problem

Cars in the ‘B’ segment mainly depicts the snob value of an individual. With respect to the
Indian market, the performance of the engine and more precisely the economy lace the vital part.
Hence, to actually analyze as to how exactly the customer perceives Maruti Suzuki Swift with
respect to the performance and service is the core objective of the study. Therefore the problem
identified is “customer behavior towards Maruti Suzuki Swift ”.

Scope of the study


Scope of the study covers and analyze the customer’s opinion towards Maruti Suzuki Swift . By
analyzing the behavior of the consumer would be benefited in the following ways:

1. Help in my further studies.


2. Exposure to present market scenario.
3. Better understanding of consumers.
4. My communication skills would improve.

Objectives of the study

1. To analyze the brand usage, brand preference, brand linking towards a brand of a car.
2. To know the influencing factors in the decision making of a buyer.
3. To analyze the rating of Maruti Suzuki swift on its overall performance with that of its
competitors.
4. To analyze the styling, comfort, fuel efficiency, performance of the car.
5. To analyze what makes Maruti Suzuki swift different from other cars.
Methodology

A sample of 50 respondents were selected for the study who used Maruti Suzuki Swift in
Bangalore . The respondents were mainly the Sagar automobiles customers who purchased
their Swift from Sagar automobiles or visited there for service of their swift . A structured
questionnaire was designed and administered among the respondents to give a fair representation
to various attributes of the consumer. . The secondary data has been collected from various
published articles, through internet, journals and magazines.

Data collection

Data has been collected from primary source and secondary source .

Primary source - A structured questionnaire was designed and administered among the
respondents to give a fair representation to various attributes of the consumers. It is the
original data collected by the respondents .This was collected through questionnaire survey.

Secondary source - The secondary data has been collected from various published articles ,
Internet . It include both external and internal sources internal data were company reports while
external were magazines, textbooks, web sites etc.

Sampling details

A sample size of 50 respondents who used Maruti Suzuki Swift purchased from Sagar
automobiles from Banagalore were considered . The questionnaire sampling was done through
online means which helped to the respondents to access the questionnaire form their work
places or residence .
Tools for data analysis

The tool which has been used for data analysis is correlation .

Limitations of the study

1. The study limited only to Bangalore .


2. Due to the limited no of respondents, the findings of the study may not be same for the
complete population.
3. The study is limited only to the respondents who have purchased Maruti Suzuki swift car
from “sagar automobiles”
4. It is assumed that the respondents understood the question in the questionnaire as they were
supposed to, the chance of was remote but cannot be ruled out.

Key concepts

 Product: -
In contrast to firm oriented definitions, a product oriented approach focuses on the features
inherent the product it self and on the effects these features are likely to have to have on
consumers established usage patterns. One product oriented framework considers the extent to
which to a new product is likely to disrupt established behavior patterns .it defines the following
three types of p[product innovations.

 Market: -
A market oriented approach judges the newness of a product in terms of how much exposure
consumers have to the new product. Tow market oriented definitions pf product innovation have
been used extensively in consumer studies (1) a product is considered new if it has been
purchased by a relatively small (fixed) percentage of the potential market (2) a product is
considered new if it has been on the market for relatively short period of time .both of these
market oriented definitions are basically subjective ,because the live the researcher with the task
of establishing the degree of sales penetration within the market hat qualifies the product as an
innovation or how long the product can be on the market and still be consider new

 Consumer:-
Although each of the three approaches describes above have been useful to consumer researches
in their study of the diffusion of innovations some researchers have favored a consumer oriented
approach in define an innovacation.in this context, a new product is any product that a potential
consumer judges to be new. In other words, newness is based on the consumer perception of the
product, rather than no physical features or market realities. Although the consumer oriented
approach has been enclosed by some advertising and marketing practitioners, it has received
little systematic research attention.

 Consumer behaviour:-
Consumer behavior is the behavior display in searching for purchasing using and evaluating
products, services and ideas which they expect will satisfy their needs . it is the study of what
consumers buy, why they buy it, when they buy it, where they buy it, how often they buy it and
how often they consumers awareness is the knowledge that the consumers have about the
existence of a product in the market .it has a measure of the effectiveness of the communication
techniques adopted by the market.

Analysis and Interpretation


Purchase decision of a car affects the interest of the consumers over a period of time and if he
tries to take a correct decision it will lead to considerable loss of his investment. Because of risk
involved in four wheeler purchase and to select a product with good brand before selecting the
final choice of a brand. During the information search, they collect information of more than one
brand, which they consider for purchase. Therefore an attempt is made to understand the
consumer behaviour in considering number of brands in his purchase decision making process.

Item Statistics
Mean Std. Deviation N
VAR00001 2.5200 1.23288 50
VAR00002 2.4400 1.16339 50
VAR00003 2.1000 1.50170 50
VAR00004 1.6200 1.24360 50
VAR00005 1.7600 1.17038 50
VAR00006 1.7600 1.18769 50
VAR00007 2.3000 .99488 50
VAR00008 2.3600 1.24146 50
VAR00009 2.6600 1.06157 50
VAR00010 1.8600 1.14304 50
VAR00011 1.9400 1.34635 50
VAR00012 1.6600 1.17125 50
VAR00013 1.8000 1.16058 50
VAR00014 1.9200 1.08496 50
VAR00015 1.8400 1.20136 50
VAR00016 2.0800 1.35285 50
VAR00017 2.2400 1.43655 50
VAR00018 1.9200 1.44052 50
VAR00019 1.9400 1.42012 50

Item Total Statistics


Cronbachs
Scale Mean if Scale Variance Correlated Item- Alpha if Item
Item Deleted if Item Deleted Total Correlation Deleted
VAR00001 36.2000 137.388 .118 .843
VAR00002 36.2800 137.879 .113 .842
VAR00003 36.6200 124.934 .451 .827
VAR00004 37.1000 130.459 .363 .831
VAR00005 36.9600 126.815 .537 .823
VAR00006 36.9600 129.060 .439 .828
VAR00007 36.4200 136.249 .219 .837
VAR00008 36.3600 132.317 .297 .835
VAR00009 36.0600 132.547 .354 .832
VAR00010 36.8600 129.960 .424 .829
VAR00011 36.7800 124.583 .530 .823
VAR00012 37.0600 140.629 .012 .847
VAR00013 36.9200 125.055 .614 .820
VAR00014 36.8000 126.980 .580 .822
VAR00015 36.8800 123.087 .668 .817
VAR00016 36.6400 123.174 .577 .820
VAR00017 36.4800 120.377 .631 .817
VAR00018 36.8000 123.347 .528 .823
VAR00019 36.7800 124.298 .506 .824

Scale Statistics
Mean Variance Std. Deviation N of Items
38.7200 142.328 11.93014 19

Correlations
VAR00001 VAR00002 VAR00008 VAR00009
VAR00001 Pearson Correlation 1 .051 -.125 -.002
Significance(2-tailed) .727 .388 .986
N 50 50 50 50
VAR00002 Pearson Correlation .051 1 -.126 .107
Significance(2-tailed) .727 .383 .459
N 50 50 50 50
VAR00008 Pearson Correlation -.125 -.126 1 .234
Significance(2-tailed) .388 .383 .102
N 50 50 50 50
VAR00009 Pearson Correlation -.002 .107 .234 1
Significance(2-tailed) .986 .459 .102
N 50 50 50 50

Age

20-30 10 20%
30-40 26 52%
40-50 11 22%
50 and 3 6%
above

I prefered to buy Maruti Suzuki Swift because previous one was old
Slightly agree 10 20%
Agree 13 27%
Neither agree nor 13 27%
disagree
Disagree 9 18%
Slightly disagree 4 8%

I prefered Maruti Suzuki Swift as I was disatisified with the previous


vehicle

Slightly agree 6 12%


Agree 31 62%
Neither agree nor 6 12%
disagree
Disagree 4 8%
Slightly disagree 3 6%
I wanted a small premium car

Slightly agree 5 10%


Agree 29 58%
Neither agree nor 4 8%
disagree
Disagree 6 12%
Slightly disagree 6 12%

Maruti Suzuki Swift is easy maintenance vehicle

Slightly agree 5 10%


Agree 35 73%
Neither agree nor 4 8%
disagree
Disagree 2 4%
Slightly disagree 2 4%
I prefered MarutI Suzuki Swift because of fuel efficency

Slightly agree 6 12%


Agree 32 64%
Neither agree or 5 10%
disagree
Disagree 6 12%
Slightly disagree 1 2%

I prefered Maruti suzuki swift because of vehicle outlook


Slightly agree 6 12%
Agree 33 66%
Neither agree nor 6 12%
disagree
Disagree 4 8%
Slightly disagree 1 2%

I was aware about Maruti Suzuki Swift by advertisements

Slightly agree 6 12%


Agree 33 66%
Neither agree nor 4 8%
disagree
Disagree 4 8%
Slightly disagree 3 6%

My friends and relatives suggested me to buy Maruti suzuki swift


Slightly agree 6 12%
Agree 27 55%
Neither agree nor 5 10%
disagree
Disagree 9 18%
Slightly disagree 2 4%

I considered two to three brands before purchasing Swift

Slightly agree 4 9%
Agree 22 48%
Neither agree or 9 20%
disagree
Disagree 8 17%
Slightly disagree 3 7%

The decision to purchase swift was made by a week

Slightly agree 3 6%
Agree 25 52%
Neither agree nor 8 17%
disagree
Disagree 10 21%
Slightly disagree 2 4%

Decision to purchase swift was made solely

Slightly agree 4 8%
Agree 28 57%
Neither agree nor 5 10%
disagree
Disagree 8 16%
Slightly agree or disagree 4 8%

I am satisfied with the mileage of the car

Slightly agree 5 10%


Agree 34 71%
Neither agree nor 7 15%
disagree
Disagree 1 2%
Slightly disagree 1 2%
I am happy overall with the performance of the car

Slightly agree 5 10%


Agree 30 61%
Neither agree nor 8 16%
disagree
Disagree 5 10%
Slightly disagree 1 2%

I am happy with the new technology in Maruti suzuki Swift

Slightly agree 4 9%
Agree 26 58%
Neither agree nor 10 22%
disagree
Disagree 4 9%
Slightly disagree 1 2%
The spares of Maruti Suzuki Swift is of reasonable price

Slightly agree 4 9%
Agree 28 61%
Neither agree nor 10 22%
disagree
Disagree 2 4%
Slightly disagree 2 4%
I am happy with the service of Swift at Sagar automobiles

Slightly agree 4 8%
Agree 26 54%
Neither agree nor 11 23%
disagree
Disagree 3 6%
Slightly disagree 4 8%

I would suggest my friends to Sagar automobiles

Slightly agree 6 12%


Agree 25 50%
Neither agree nor 10 20%
disagree
Disagree 4 8%
Slightly disagree 5 10%
I was happy with the attitude of the service team

Slightly agree 3 6%
Agree 32 65%
Neither agree nor 6 12%
disagree
Disagree 3 6%
Slightly disagree 5 10%

I received the vehicle at the right time after service

Slightly agree 3 6%
Agree 32 64%
Neither agree nor 6 12%
disagree
Disagree 4 8%
Slightly disagree 5 10%

Summary of findings

1. Equal number of male and female respondents were chosen for the study .
2. Brand name followed by popularity is the most frequent basis of selection of brand .
3. Majority of the people choose Swift as there were not satisfied with their previous ones
4. Majority of the respondents had a desire towards small premium car
5. Fuel efficiency of Maruti Suzuki Swift is one of the important factor influencing the
customers towards it
6. Sample has been chosen more or less equally from all parts of the city .
7. Price seems to be an important factor in choosing the brand .
8. Receiving the vehicle at the right time after service would influence the owners of swift
to service their car in the same service centre again .
9. Friends and relatives play a major role in influencing an individual to buy a car.
10. 66 % of the people are more concerned about the looks of the car .
11. Advertisements play a major role in the buying behaviour of an individual.
12. Most of the people go for second opinion while taking purchase decision.
13. Adoption of new technology in the car also influence a certain number of people to buy
cars.
14. The attitude of the service team plays a major role in influencing the customer to come
back again .
Recommendations and conclusion

1. To ensure that a product would find place in the minds of the consumer , the
manufacturers should position their products through sales promotion activities which
includes advertisement through different forms of media .
2. Majority of the respondents have said that they formed their expectations through the
statement made by friends and relatives and therefore it would be beneficial if the
extent of influence of such groups is studied . It may be found through closely studying
the social interactions of the consumers .
3. The demand for small car segment have been increasing because of the growing number
of nuclear families as well as parking problems. Hence the manufacturers should find
out the needs, wants, tastes and preferences of the consumers in order to design the
products.
4. The respondents perceive that driving comfort and fuel economy are the most important
features of the passenger car followed by availability of spare parts and price of the car,
thus the manufacturers should design the product giving maximum weight age to these
factors.
5. Car owners feel that the hospitality shown by dealers is more during their visits to the
places of dealers before and immediately after the purchase. But after some time they
face a problem with the dealers regarding after sales service. Therefore, it is suggested
that the services rendered or to be rendered should be properly explained, friendly
approach and reliability in service are to be further improved.
6. Most of the respondents expressed that they have technical problems in their existing car
and some of them opined that they switch over to another brand because they would like
to buy a new technology car. The car manufacturers should have a strong R &D
department and introduce new models quite frequently in the market.
7. Due to steady increase of petrol/diesel prices, fuel efficiency needs to be improved.
Constant improvement and technical up gradation for better fuel efficiency alone will
attract more customers.
8. Price of the car should be at par or slightly low so that the customers may be retained
instead of switching over to other vans, as small cars have large potential.
Conclusion

Consumer Behaviour consists of all human behaviour that goes in making purchase decisions.
An understanding of the consumer behaviour enables a marketer to take marketing decisions
which are compatible with its consumer needs. There are four major classes of consumer
behaviour determinants and expectations, namely, cultural, socioeconomic, personal and
psychological. The socio-economic determinants of consumer behaviour consist of age, marital
status, occupation, education, income, family size etc. Realizing the importance of passenger car
industry in the present economic situation, the researcher has analyzed the perceptions and
behaviour of consumers related to this product.

Annexures
Questionnaire
Age
1.20-30
2.30-40
3.40-50
4.50 & above

I preferred to buy Maruti Suzuki Swift because previous one was old
1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree
I preferred Maruti Suzuki Swift as I was dissatisfied with the previous vehicle
1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I wanted a small premium car


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

Maruti Suzuki Swift is easy maintenance vehicle


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I preferred MarutI Suzuki Swift because of fuel efficiency


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I preferred Maruti suzuki swift because of vehicle outlook


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I was aware about Maruti Suzuki Swift by advertisements


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

My friends and relatives suggested me to buy Maruti suzuki swift


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I considered two to three brands before purchasing Swift


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

The decision to purchase swift was made by a week


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

Decision to purchase swift was made solely


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I am satisfied with the mileage of the car


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I am happy overall with the performance of the car


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I am happy with the new technology in Maruti suzuki Swift


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

The spares of Maruti Suzuki Swift is of reasonable price


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I am happy with the service of Swift at Sagar automobiles


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I would suggest my friends to Sagar automobiles


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I was happy with the attitude of the service team


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

I received the vehicle at the right time after service


1. Slightly agree
2. Agree
3. Neither agree nor disagree
4. Disagree
5. Slightly disagree

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