Professional Documents
Culture Documents
STUDY
ON
CONSUMER BUYING BEHAVIOUR AT TIME TO
PURCHASE HERO HONDA BIKE.
Submitted By:
TARANG P PATIL
T.Y.B.B.A. (SEM-VI) ROLL NO.-23
Submitted To:
THE CO-ORDINATOR
THE SURAT PEOPLE’S CO-OP. BANK COLLEGE OF
BUSINESS ADMINISTRATION
UDHNA (SUART)
March 2007
1
THE SURAT PEOPLE’S CO-OP. BANK COLLEGE OF
BUSINESS ADMINISTRATION
Signature Signature
DECLARATION
2
I , TARANG P PATIL , here by declare that the project report entitled
“A STUDY ON CONSUMER BUYING BEHAVIOUR AT
TIME TO PURCHASE HERO HONDA BIKE. under the
guidance of Prof H. D. PATEL submitted in partial fulfillment of the
requirement for the award of the degree of Bachelor of business
administration to south Gujarat university , Surat is my
original Work - research study - carried out during 1st January, 2008
to 1st March ,2008 and not submitted for any other degree/ diploma/
fellowship or other similar titles or prizes to any other institute or
university by any other person.
ACKNOWLEDGEMENT
3
This is the pleasure movement for me to explicate my energized
intelligence. Thanks to Co-Coordinator Prof S.Z. daisy and to my guide prof.
H.D.Patel from the Surat people’s co-op. bank college of business
administration udhna, Surat. For accommodating advice during the
research and help provided by them in preparation of this report. This report
is guided by their co-operation and practicable suggestion. This study work
could be finished with in the period.
Date: - T.Y.B.B.A
Roll No.:-23
INDEX
4
PAGE
NUMBER SUBJECT NO.
1 • INTRODUCTUION 7
• INTRODUCTUION OF INDUSTRY 8-9
• HISTORY OF COMPANY 10-14
2 • THEORETICAL BACKGROUND 15-20
• CONSUMER BUYING BEHAVIOUR
3 • PROBLEM DEFINATION 21-23
• PROBLEM DEFINATION
• SCOPE OF STUDY
• OBJECTIVES OF STUDY
• LIMLTATIONS OF STUDY
4 • RESEACH METHODOLOGY 24-31
• INTRODUCTION
• RESEARCH DESIGN
• SOURCES OF DATA
• RESEARCH INSTRUMENT
• SAMPLING PLAN
• DATA COLLECTION METHOD
5 • DATA ANALYSIS AND INTERPRETATION 30-48
6 • TESTING OF HYPOTHESIS 49-51
7 • FINDINGS 52-53
8 • SUGGESTIONS 54-55
9 • SWOT ANALYSIS OF HERO HONDA 56-58
10 • REFERENCE MATERIAL 59
• BIBLIOGRAPHY 60-61
• APPENDIX 62-66
5
LIST OF TABLE AND GRAPH
6
CHAPTER :
1
INTRODUCTION
• INTRODUCTION OF INDUSRY
• HISTORY OF COMPANY
7
INTRODUCTION OF INDUSTERY
It wasn’t until 1869 that the first serious attempts were made
to produce motor driven bicycles. These very first were powered
by steam, and driven by leather belts or as in the case of the roper
steam velocipede of 1869 by a system of levers attached to a crank
on the driven wheel.
8
powered by an Otto cycle engine producing about ½ horse powers.
Note this design again employed wooden wheels and Daimler
dropped the twist grip controls from his 1877 design in favor of
leavers on the frame.
9
History OF COMPANY
Industry : Automotive
10
Produce : Motorcycle, Scooters
11
India has the largest number of two wheelers in the world with
41.6 million vehicles. India has a mix of 30 percent automobiles
and 70 percent two wheeler in the country. India was the second
largest two wheeler manufacturer in the world starting in the1950s
with the birth of Automobile products of India (API) that
manufactured scooters. API manufactured the lambrettas but,
another company, Baja Auto Ltd. Surpassed API and remained
through the turn of the century from its association with piaggio of
Italy (manufactured of vespa)
The license raj that existed between the 1940s and 1980s in
India. Did not allow foreign companies to enter the market and
imports were tightly controlled. Customers in India were forced to
wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj
commented that he did not need a marketing department, only a
dispatch department. By the year 1990, Bajaj had a waiting list that
was twenty-six times its annual output for scooters.
12
During the 80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle without polluting the
roads. The company introduced new generation motorcycles that
set industry benchmarks for fuel thrift and low emission. A
legendary 'Fill it - Shut it - Forget it' campaign captured the
imagination of commuters across India, and Hero Honda sold
millions of bikes purely on the commitment of increased mileage.
Hero Honda has consistently grown at double digits since
inception; and today, every second motorcycle sold in the country
is a Hero Honda. Every 30 seconds, someone in India buys Hero
Honda's top -selling motorcycle - Splendor. This festive season, the
company sold half a million two wheelers in a single month-a feat
unparalleled in global automotive history.
The Indian two wheeler industries has seen a paradigm shift from
being a regime of regulation and tight control in the 1980s to a
more liberalized and a competitive present day era. After missing
out on the initial boom in two wheeler segment during the period
of 1993-1996, Hero Honda has emerged as a world leader. The gap
between motorcycles sold by Hero Honda and its closest rival is
approximately 1 m units (23% of industry size). One of the reasons
for the tremendous performance of Hero Honda is the significant
increase of share of motorcycles in the two-wheeler segment, from
42% in FY99 to 77% in FY04. No doubt, that the shift in
preference of Indian populace from scooters and mopeds towards
13
motorcycles has facilitated the growth of Hero Honda. However its
performance vis-à-vis industry indicates that the performance of
Hero Honda was better than the industry peers, barring two years.
In the seven-year period ending FY04, it has achieved a CAGR of
30% in two-wheeler volumes against 11% of the industry.
14
CHAPTER:2
THEORITICAL BACKGROUND
15
CONSUMER BUYING
BEHVIOUR
16
Consumer Buying Decision Process
There are following five stages in consumer buying decision
process.
1. Problem identification:-
The buying process starts when the buyer recognizes a problem or
need. The need can be triggered by internal or external stimuli.
Marketers need to identify the circumstances that trigger a
particular need. By gathering information from a number of
consumers, Marketers can identify the most frequent stimuli that
spark an interest in a product category. They can then develop
marketing strategies that trigger consumer interest.
2. Information Search:-
The consumer tries to collect information regarding various
products/service. Through gathering information, the consumer
learns about completing brands and their features. Information may
be collected form magazines, catalogues, retailers, friends, family
members, business association, commercial, chamber of
commerce, telephone directory, tradefair etc. Marketers should find
out the source of information and their relative degree of
importance to the consumes.
Personal Sources: Family, friends, neighbor, as
quittances.
Commercial Source: Advertising, sales persons, dealers,
packaging, displays.
Public sources: mass media, consumer, rating organizations.
Experimental sources: Handling. Examine, using the product.
17
3. Evaluation of alternative:-
There is no single process used by all consumers by one consumer
in all buying situations. There is several First, the consumer
processes, some basic concepts are:
First, the consumer is trying to satisfy need.
Second, the consumer is looking for certain benefits from the
product solutions.
The marketer must know which criteria the consumer will
use in the purchase decision.
18
5. Post Purchase Behavior:-
After purchase the product, the consumer will experience the same
level of product. The Marketer’s job not end when the product is
buying must monitor post-purchase satisfaction, post-purchase
action, post-purchase use and disposal
Post Purchase Satisfaction:-
The buyer, S satisfaction is a function Of closeness between the
buyer, S expectation and the products Perceiver performance.
The larger the gap between expectation and performance, the
g greater the consumer dissatisfaction.
19
Characteristic of Buyer Behaviors
The chief characteristics of the buyers behaviors are as
follow:-
20
CHAPTER:3
PROBLEM DEFINATION
• PROBLEM DEFINATION
• OBJECTIVE OF STUDY
• LIMITATIONS OF STUDY
21
PROBLEM DEFINATION
SCOPE OF STUDY
This study has been made to find the level of satisfaction the
customer has regarding the service provider by bike place.
22
OBJECTIVES OF STUDY
Limitations of study
When the buyers are busy we can’t get accurate data from
them.
23
CHAPTER:-4
RESEARCH METHDOLOGY
• INTRODUCTION
• RSEARCH DESIGN
• SOURCES OF DATA
• SAMPLING PLAN
• DATA COLLECTION METHOD
RESERCH METHODOLOGY
24
(A)Introduction
Marketing research is the function which links the
consumer, customer and public to the marketers through
information used to identify and define marketing, opportunities
and problems, generates refine marketing action; monitor
marketing performance; and improve understanding of marketing
as a process.
Research definition:
“Research is careful inquiry or examination to discover
new information and relationship and to expand and to verify
exiting knowledge,”
25
“Research design is the plan, structure and strategy of
investigation conceived so as to obtain answer to research question
and to control variance.”
- BY KERLINGER
From definition it is evident that research design is ore or less a
blueprint of research.
(A) Exploratory
(B) Descriptive
(C) Casual
26
drawbacks of the marketing set up of Hero Honda PVT. LTD. So
this makes the study a descriptive one.
a) Primary data:-
b) Secondary data:-
27
Researcher instruments is the tool by which the researcher
can do research on specific problems or objective. The most
popular researcher instrument for collection data is
“Questionnaire” for a particular investigation. It is simple for a
moiled set of questions presented to respondents for their answers.
Due to this flexibility, it is most common instrument used to collect
the primary data. During the pre- testing of questionnaire, I seen
the reaction of respondents and suggestions required to make
change in research instrument.
Open-ended question:-
Dichotomous questions :-
Multiple-choice question:-
28
Sampling is a process of obtaining. The information about
the entire population by examine a part of it .The effectiveness of
the research depends on the sample size selected for the survey
purpose.
(B)Sampling Unit:-
(C)Sample size:-
n=p*q (z/e) 2
29
Were,
n=Sample Size
q=0.20(I-p)
n= (0.84)*(016)*(1.96/0.05)2
= (0.1344)*(1536.64)
=206.52
(D)Sampling Method:-
30
A Stratified random sample is one where the population is
divided in to mutually exhaustive strata or sub-group and then a
simple random is selected within each of strata on age groups,
occupation etc. It may be noted that stratification does not means
absence of randomness. I use a simple random sampling method.
31
1. AGE WISE CLASSIFICTION
Age (in year) No. of respondents Percentage (%)
18-20 30 30
32
21-25 37 37
26-30 15 15
31-35 06 06
36-40 07 07
41& above 05 05
Total 100 100
7, 7% 5, 5%
6, 6% 30, 30% 18-20
21-25
26-30
31-35
15, 15%
36-40
41& above
37, 37%
Comment:-
Above Graph shows are 30% of respondent in age group
of 18-20, 37%of respondent in age group of 21-25, 15% of
respondent in age group of 26-30, 7% and 5% respondent are come
in 36-40 and 41&above.
33
Occupation No. of respondents Percentage (%)
Servicemen 47 47
Student 30 30
Business 12 12
Profession 08 08
Others 03 03
Total 100 100
80
60
No. of respondents
40 Percentage (%)
20
0
s
en
on
s
en
er
s
m
ne
si
th
ud
e
es
i
O
ic
us
St
of
rv
Pr
Se
Occupation
Comment:-
Above Chart Shows that 47 respondent are Servicemen out
of 100 and 30 are the students. 12 respondents are businessman.
34
Income Level No. of respondents Percentage (%)
<= 5000 54 54
5000-10,000 25 25
10,000-15,000 11 11
15,000-20,000 07 07
20,000 Above 03 03
Total 100 100
7, 7% 3, 3%
11, 11%
5000
5000-10,000
10,000-15,000
15,000-20,000
54, 54%
20,000 Above
25, 25%
Comment:-
Above graph shows that 54% of respondents are income
in <=5000 income level, Second 25% of respondents are of 5000-
10,000 income level. 11% of respondents are of 10,000-15,000,
7% of respondents are of 15,000-20,000 and remain 3% of
respondents above 20,000 of income level.
4. SOURCES OF FINANCE
35
Sources of Finance No. of respondents Percentage (%)
By cash 45 45
By Loan 55 55
Total 100 100
55 55
60 45 45
50
40 No. of
respondents
30 Percentage (% )
20
10
0
By cash By Loan
(Sources: - Questionnaire—Que.8)
Comment:-
Above Graph shows that 55 people purchase Hero
Honda Bike For by Loan and 45 people purchase Hero Honda Bike
from Cash.
36
Auto Mobiles No. of respondents Percentage (%)
Shivani 20 20
Dhru 17 17
Siddhi 11 11
Other 52 52
Total 100 100
No. of respondents
Shivani
20%
Other Dhru
52% 17%
Siddhi
11%
Comment:-
37
Sources No. of respondents Percentage (%)
News Paper 12 12
T.V.Advertisement 14 14
Friends 26 26
Others 48 48
Total 100 100
No. of respondents
News Paper, 12
T.V.Advertiseme
nt, 14
Others, 48
Friends, 26
Comment:-
Above graph shows that 48 % respondents are come to
know from the ‘other’. Then 26 % respondents are come to know
from the ‘friends’. 14 % & 12 % respondents are come to know
from the T.V.Advertisement & news paper.
7 AGE V/S USAGE OF COMPANIES MOTORCYCLE
38
26-30 09 02 01 03 00 15
31-35 02 00 01 01 02 06
36-40 01 2 02 01 01 07
41& above 01 01 00 02 01 05
Total 51 16 10 12 11 100
25
20
No. Of Respondents
18-20
21-25
15
26-30
31-35
10
36-40
41& above
5
0
Hero Honda Bajaj TVS Yamaha Honda
Comment: -
Above Charts shows that 51 respondents are use Hero
Honda Company’s Motorcycle. And 16 respondents are using
Bajaj bikes.
4. Who is decision maker for purchasing bike in your
family?
39
Decision maker for purchasing bike
50 46
46
42
42
40
30
20 No. of respondents
Percentage (%)
10
10 10
2
0 Percentage (%)
2
Father No. of respondents
Self
Mother
Others
Comment:-
40
Weightage 6 5 4 3 2 1
Attributes Excellent Very Good Averag Poor Very Total Total
Good e Poor score
Price 30 20 18 16 10 06 100 426
Less 18 11 17 30 13 11 100 358
maintenance
Style 21 18 19 10 11 21 100 355
Durability 10 17 16 24 21 12 100 335
Mileage 24 19 14 17 09 17 100 381
Easy Driving 20 12 21 23 10 14 100 367
Brand 17 19 14 21 17 12 100 362
Reputation
Color 28 19 18 13 10 12 100 406
Pick up 19 22 15 20 14 10 100 382
Total 187 157 152 174 115 115 900 3370
Attributes Weightage
Price 426
Less maintenance 358
Style 355
Durability 335
Mileage 381
Easy Driving 367
Brand Reputation 362
Color 406
41
Pick up 382
Total 3370
Comment:-
100
12 10 11
90 16
22
80 16 15
19
no of respondents
20
70 17 Poor
18 24
60 Average
27
50 23 20 Good
40 24 Very Good
35 18
30 21 Excellent
29
20
30 25
10 16 20
12
0
Available After Service Knowledge Of Service Infrastructure
Sales man
Comment:-
43
Above chart shows that 30 respondents out of 100 are
available who give Weight age on the excellent and second 35
respondents out of 100 are after service who gives Weight age on
Attributes Excellent Very Good Average Poor Total
Good
Festival 43 21 12 14 10 100
Offer
Exchange 15 31 29 12 13 100
Offer
Special Gift 20 19 30 20 11 100
Cash 11 21 19 34 15 100
Discount
Anniversary 14 13 12 20 41 100
Offer
Total 103 105 102 100 90 500
the Very Good, 23 respondents are Knowledge of salesman who
give Weight age on the good, 27 respondents are service who give
Weight age on the good, 29 respondents are Infrastructure who
gives Weight age on the Very Good.
44
Anniversary Offer
Cash Discount
Poor
Average
Special Gift Good
Very Good
Excellent
Exchange Offer
Festival Offer
0 20 40 60 80 100
45
Comment:-
46
Average 27 24 20 15 14
Color 20 24 26 10 20
Style 18 25 15 26 16
Excellent
Pick up 21 36 17 15 11 Very Good
Good
After Service 20 31 25 14 10
Average
16 22 42 11 9 Poor
Price
Available 14 25 32 16 13
Mileage 31 26 15 18 10
0 20 40 60 80 100
Comment:-
47
CHAPTER: 6
• TESTING OF HYPOTHESIS
48
TESTING OF HYPOTHESIS
A hypothesis is a proposition, which the researcher wants to
verify. It is tall test and my null hypotheses are,
H0: P = 0.40
H1: P ≠ 0.40
Now,
P = Probability of Hero Honda is given best by consumer.
Q = Probability of other company bike is given best by consumer.
X = Hero Honda bike is purchased by consumer.
N = Total no. of Respondents.
P = x/n
=51/100
=0.51
q =1-p i.e. 0.49
Z calculation = p–q
49
_______
_______
√ PQ
_______
100
= 0.51- 0.40
__________
__________
√ 0.49*0.4
________
100
= 0.11
________
________
√ 0.00196
= 0.11
_______
0.04427
= 2.48
50
CHAPTER: 7
•FINDINGS
51
Findings
52
53
SUGGESTIONS
54
SWOT
Analysis
OF
HERO
HONDA
55
SWOT Analysis
Strengths
Weaknesses
56
Opportunities
Threats
57
CHAPTRE: 8
REFERENCE MATERIAL
• BIBLOGRAPHY
• APPENDICES
58
59
BIBLIOGRAPHY
www.herohonda.com
60
APPENDICES
QUESTIONNAIRE
61
A STUDY ON CONSUMER BUYING BEHAVIOUR
AT TIME TO PURCHASE HERO HONDA BIKE.
If yes than,
Company ____________________
62
6 What features you considers when you purchase bike
please give the rank.
Attributes 1 2 3 4 5
Available
After sales
Services
infrastructure
63
9 Rate the following schemes that attract you most.
attributes 1 2 3 4 5
Special
offer
Exchange
offer
Special
gift
Cash
discount
Attribute 1 2 3 4 5
Mileage
Available
Price
After service
Pick up
___________________________________________________
___________________________________________________
___________________________________________________
A. Name: - ___________________________________________
B. Address:-___________________________________________
64
___________________________________________
___________________________________________
C. phone no:-__________________________________________
18 to 20 [ ] 21 to 25 [ ]
26 to 30 [ ] 31 to 35 [ ]
36 to 40 [ ] 41 & above [ ]
E. Occupation:-
Services [ ] Businessman [ ]
Students [ ] Professional [ ]
Others [ ]
F. monthly income:-
5000 [ ] 5000-10,000 [ ]
10,000-15,000 [ ] 15,000-20,000 [ ]
20,000 Above [ ]
Sing.___________________
Date.___________________
65