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    Factors Influencing Customers Purchase of Automobiles: A BARATH (27010) P PUNITHA (27035) M VIGNESH (27056)

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    The document discusses factors that influence customers' purchase of automobiles in India. It notes that India has a large and growing automotive industry. Some key factors that influence car purchases are improvements in living standards and incomes of the middle class, as well as government economic reforms. The research aims to identify what specifically influences consumers to buy their first car and also to purchase a second vehicle. It uses a questionnaire to understand demographic characteristics and perceptions of respondents in order to determine the most important internal and external factors.

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    Factors Influencing Customers Purchase of Automobiles: A BARATH (27010) P PUNITHA (27035) M VIGNESH (27056)

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    The document discusses factors that influence customers' purchase of automobiles in India. It notes that India has a large and growing automotive industry. Some key factors that influence car purchases are improvements in living standards and incomes of the middle class, as well as government economic reforms. The research aims to identify what specifically influences consumers to buy their first car and also to purchase a second vehicle. It uses a questionnaire to understand demographic characteristics and perceptions of respondents in order to determine the most important internal and external factors.

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    The document discusses factors that influence customers' purchase of automobiles in India. It notes that India has a large and growing automotive industry. Some key factors that influence car purchases are improvements in living standards and incomes of the middle class, as well as government economic reforms. The research aims to identify what specifically influences consumers to buy their first car and also to purchase a second vehicle. It uses a questionnaire to understand demographic characteristics and perceptions of respondents in order to determine the most important internal and external factors.

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    © All Rights Reserved
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    Download as pdf or txt
    17 views3 pages

    Factors Influencing Customers Purchase of Automobiles: A BARATH (27010) P PUNITHA (27035) M VIGNESH (27056)

    Uploaded by

    punitha_p
    The document discusses factors that influence customers' purchase of automobiles in India. It notes that India has a large and growing automotive industry. Some key factors that influence car purchases are improvements in living standards and incomes of the middle class, as well as government economic reforms. The research aims to identify what specifically influences consumers to buy their first car and also to purchase a second vehicle. It uses a questionnaire to understand demographic characteristics and perceptions of respondents in order to determine the most important internal and external factors.

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    © All Rights Reserved
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    of 3

    FACTORS INFLUENCING CUSTOMERS

    PURCHASE OF AUTOMOBILES
    A BARATH (27010) P PUNITHA (27035) M VIGNESH (27056)

    INTRODUCTION

    The Automotive industry in our country, being one of the largest in the world, occupies a
    prominent place in our Indian economy. It has a strong multiplier effect and drives the economic
    growth through its deep forward and backward linkages with several key segments of the
    economy. India manufactures over 11 million 2 and 4-wheeled vehicles and exports about 1.5
    million every year.With an annual production of more than 2.6 million units in 2009, its’
    passenger car and commercial vehicle manufacturing industry is the seventh largest in the
    world. As of 2009, India is home to 40 million passenger vehicles and more than 1.5 million cars
    were sold in India in 2009 (an increase of 26%), making the country the second fastest growing
    automobile market in the world. By 2050, the country is expected to top the world in car volumes
    with approximately 611 million vehicles on the nation’s roads. India's automobile exports are
    expected to cross $12 billion by 2014. The sales for the year 2010 so far are at Rs. 45155.81 Cr
    and the net profit is of all the companies put together is Rs. 2038.87 Cr.
     
    Such an extraordinary growth is a result of a two major factors namely, the improvement in the
    living standards of the middle class and an increase in their disposable incomes. Moreover, the
    liberalization steps, such as, relaxation of the foreign exchange and equity regulations,
    reduction of tariffs on imports, and the banking reforms, initiated by the Government of India,
    have played an equally important role in enabling the Indian Automotive industry achieve great
    heights. The institutionalization of automobile finance has also paved way for a sustainable
    long-term high growth of the industry.
     
    Clearly, the Indian automobile sector is on a growth track. To tap this huge opportunity, Indian
    automobile companies and global automotive giants are on an expansion mode. What are the
    factors that influence the consumers to buy the automobiles, passenger cars in particular? What
    influences consumers to own a second car? We try to find answers to these questions in this
    research.

    PROBLEM STATEMENT

    The variables affecting families' new-car purchases cannot be predicted easily. In order to buy a
    new car, not only a person has to be able to pay for it or obtain credit, but also willing to do so.
    Affordability can be easily measured by personal income.But, willingness to buy depends on
    several factors like their perception of their financial situation,expectations of the future needs,
    expenses, and incomes, opinions about the car market and its prices, styling and general
    appearance of automobiles.To measure the willingness to buy a second car, satisfaction with
    the present car owned is an important factor to be considered. Families will be more willing to
    buy a new car if, other things being equal, they are dissatisfied either with the appearance or
    performance of their present car.

    There are various other factors which also weigh heavily on the consumer’s mind. The factors
    can basically be categorized into two basic types, internal and external. The internal factors
    include sex, age, marital status, prestige-category, travel attitudes, personality, lifestyle, mobility
    and attitudes to styling. The external factors include brand image, market share, product origin
    etc. We attempt to find the extent to which the various factors influence the consumers in their
    purchase decision.

    As the economy is booming, there are many people who have started to own two cars. The
    factors which influence the purchase of second car vary from that of the first car. We also
    attempt to find the factors which influence consumers to buy the second car.

    RESEARCH OBJECTIVE

    With the growth of market of passengers’ cars, the number of dealers and distributors of various
    cars have also increased. Various MNC’s have started to invest in India increasing the
    competition in the market. This research is done with the objective of helping these companies
    focus on the consumers knowing

    RESEARCH METHODOLOGY

    A pilot study was done among the residents of Tamilnadu who already own a car or have the
    potential of buying a car and those who have the potential of buying more than one car. The
    selection of this sample was by judgmental sampling. The income and occupation of the
    consumers was quite varied and care was taken to have samples with varied demographic
    qualities. A questionnaire was sent to them via Google docs. The questionnaire was in two
    parts. The first section contained questions to know the socio-demographic characteristics of
    the person under study and the second part had open ended questions aimed at extracting the
    factors that influenced or would influence them to buy a car. The results of the open ended
    questionnaire was analyzed and the results were concluded.

    REFERENCES

    1. Factors influencing individual purchases of motor cars in Great Britain ; C.


    Isheswood and F. Pickering
    2. Factors Influencing The Demand For New Automobiles ; Peter E. De Janosi
    3. Social character and the new automobile industry; Kevin F. Mccrohan
    Jay M. Finkelman
    4. Socio-Economic Factors influencing Car Ownership by Indian Households ;
    Rajesh Shukla, Anuj Das and Charu Jain (NCAER, New Delhi)
    5. Factors affecting consumer assessment of eco-labeled vehicles; Caroline Lundquist
    Noblet, Mario F. Teisla, Jonathan Rubin
    6. The Factors Affecting on Consumers’ Repurchase Intention Toward an
    Automobile Brand : An Application of Reasoned Action Theory; Bahram Ranjbarian
    , Saeed Fathi, Abdolnabi Kamali
    7. Who Will Buy Tomorrow’s Electric Vehicles? Stephan Gallon
    8. Influence of the incentive from transaction cost on selection and implementation
    of the purchasing strategy
    9. Factors affecting consumers’ car buying behaviors
    10. Product-, Corporate-, and Country.image Dimensions and Purchase Behavior: A
    Multicountry Analysis; Ming-Huei Hsieh and Shan-Ling Pan Rudy Setiono(NUS)

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