CONSUMER BUYING BEHAVIOUR

On
MARUTI SUZUKI

PREAFACE

Today almost all the major co-operation is actively marketing their product
beyond their original homeland borders. So, companies must rethink their
marketing strategies instead of continuing with their existing strategy. Today
company work in a war zone of rapidly changing competitive environment
technological advances, changing govt. politics diminishing customer loyalty and
so on.

Now a day world of stiff competition, the companies with existing

marketing strategies need to be changed in a manner so as to cope up with its
rapidly changing competitive environment, technical up gradation, varying govt.
policies, rules and regulation during customer loyalty etc. in the last few years the
information need to conduct a business has grown rapidly.

So, in this context, the Maruti Suzuki is also facing a stiff competition in the
market from its competitors and for this the company is gearing up themselves to

face the competition and conduct a good business taking successful business
decision for more accuracy and timeliness.

As the part of the partial fulfillment of the MBA course a project has been
incorporated in the curriculum during which a study to be under taken in an
organization mainly to take out the newly acquired knowledge and skill from an
actual work situation and take book and classroom teaching give us through back
ground of different functional area devoid of practical experience to how those
area to be administered and managed respectively. This report has given up an
opportunity to gain an inside into a practical applicability of management concept
and theory, learning faster and developed better ability to analysis problems and in
decision that contribute significantly for better use of resource available to the
management.

With this view to understand the concept, I have undertaken a project study
in Maruti Suzuki, which has equipped me to prepare a report with a proper solution
of the problem face by the organization.

This area of work has chosen by me as this had all the ingredient of
marketing research and other aspect of marketing as well the report offer a
Glimpse of various stage at project work in order to serve purpose of the study in
systematic manner and hope that the findings and recommendation will go along
way in helping in organization.

EXECUTIVE SUMMARY

(i)

Introduction

Topic
Study on consumer behavior of car with special reference to Maruti Suzuki in
Tezpur.

Organization
Isum Motors Pvt Ltd.
Authorized Dealer, Maruti Suzuki.

Location Of Study
Tezpur

Institutional Guide
Anjan Baruah
Faculty member, Third eye College.

Organizational Guide
Amitab Dey
Sales Officer Isum Motors Pvt Ltd.
Duration
2 Months

(ii) Aims and Objectives

Primary :
To make a study on consumer buying behavior of car with special reference
to Maruti Suzuki in Tezpur area.

Secondary :

1. To study their satisfaction level of customers of different cars available in

Tezpur.
2. To study the importance of various attribute which effect the purchasing
decision of customers in regard of cars.

3. To study the awareness level of different cars in Tezpur.

4. To study the importance of dealer and their influence in marketing/sale for
cars in Tezpur.
5. To study consumers buying behaviours.
6. To find out the expectation of the existing possessing and prospective
customers of the company.
7. To study the impact of media on the customers.
8. To study the satisfaction level of the customers on overall performance and
after sale service of their existing cars.
9. To study different promotional scheme they expect for purchasing a new car.

(iii)

Methodology

(i)

Preliminary study.

(ii)

Data collection

(iii)

Questionnaire Design.

(iv)

Sample size

(v)

Analysis

(vi)

Scope and Limitation.

(iv)

Analysis

The project was undertaken to study the consumer buying behavior of motor
car with special reference to Maruti Suzuki in Tezpur.

Major findings are: -

1. Demographic profile i.e. Age, Occupation and monthly income of the

customer.
2. Regarding the awareness of different brands of motor cars all respondents
are well aware.
3. According to the most of the respondent the T.V. ads was the best media
in building awareness followed by the newspaper, friends, colleague,
majoring & family members.
4. Regarding importance of attribute before purchasing the motor car in over
all motor cars most of the customer gave importance on brand image of
the company. In case of Hyundai motorcars most of the customer gave
importance or fuel efficiency and look on style of the car.
5. Regarding source of finance most of the customers gave important on loan
and installment facility.
6. Most of the customer gave most importance on high engine power.

(v)

Conslusion

This study was conducted to find out the consumer buying behaviour of motorcars
in special reference to the Maruti Suzuki in Tezpur. The findings and analysis
revealed many advantages as well as disadvantages for the Maruti India Ltd.

Though the Maruti Suzuki is the faster growing company and leading in the
market facing a stiff competition from Hyundai and Tata motors in the Tezpur.
It has been observed that Maruti Suzuki adopted many promotional
strategies and companys marketing channel is also satisfactory.
Now a days people are most aware about after sales service. The dealers also
expect Maruti motorcars has overcome this problem and facilities should be
improved for meeting the after sales service requirement effectively.
The majority of customers expect loan or installment facilities. The Maruti
Suzuki has joined hand with State Bank Of India, and many Private Banks to
promote this facilities.
As most of the existing and prospective customers adults, Maruti should
introduces stylish Motor cars which compete its competitors product.
But Maruti to meet the expectations of new generation people who are the
prospect, or customers has recently introduce Ritz, SX4, AStar hoping to fulfill the
demand of the new generation.
As this study was conducted for educational purpose with the aim to give
necessary information to the organization, any mistake by the researchers should
be overlooked considering his inexperience in the field of marketing research.

(vi)

Recommendations

Based on the findings drawn from the projects analysis, certain recommendation
need to be made as regards to the future course of action for Maruti Suzuki, which
can go a long way in improving the Brand Awareness of the Company in the
Motorcars market. The main recommendations are:

1. Maruti should continue with its range of innovative products. At the same
time try to add value to its existing products so that it can cater to the
present day requirements. As the study reveals that majority of customers
are aged 20 40 years the needs and wants should be kept in mind while
designing new products.

2. There should be proper synchronization between order placed an delivery.

The distribution channel should be enhanced and the models should be
readily available in the market.

3. As the buying decision of the buyer has influenced by himself, company

should target them through demonstration and advertisement.

4. As the market for the financial institutions are increasing, the company
should target them through demonstration and advertisement.
5. Facilities should be provide to the dealers so that they can extend them to the
customers while purchasing this brand.

6. Increase in sales promotion budgets to develop a point of purchase display

and to participate to a greater extent in Trade shows and similar kind of
shows and this will motivate the non-users to try out the products.

7. The company can sponsor local cultural programmes like Bihu festival of
Assam holding Bihu competition at least once in a year and for attracting the
youth it may sponsor sports events also.

8. The company can make charitable donation to different organizations. It can

extend their helping hand to the people hotted by natural havoc like flood,
draught, earthquake etc. to win the hearts of the mass people which will
build a good image of the Company among them.

9. As the market for the financial institutions are increasing, the company
should come up with various schemes, which will induce them to influence
the customer for the product. This includes offering various gifts, packages
and financial incentives like higher commission as compared to other fourwheeler companies.

10.Incentives and financial benefits provided to the dealers should be

maximized to maintain their level of satisfaction and motivation.

Objectives

Tezpur is the most developed town in north bank and gateway to Arunachal
Pradesh and to capture this market and establish themselves as a leader is the prime
aim of all the companies so as to have an psychological impact on the people and
to have an edge over other four wheeler companies were not doing great business
in This region from the very beginning. It was so because the prices of the product
were high and the customer were not fully aware of proper advertisement facility,
which is key factor in influencing a consumer. Earlier Maruti product was almost

enjoying the monopoly market but now Hyundai and TATA entered the market
with various promotional schemes and changing the market scenario.

Nowadays with the advent of financial scheme by the commercial Bank and
Hire purchase companies, the four-wheeler company has been given new
dimension. But with the introduction of new models, the greater market opened up
for all the motorcar companies, which ultimately led to a stiff competition between
the brands.

Today all the companies namely Hyundai, Toyota, Hyundai, TATA, Skoda,
Chevrolet, Ford, Mahindra etc. are trying to grab the market. Maruti is enjoying
good reputation in motorcar segment in Tezpur market for its after sales service.
According to research, Maruti is the largest car manufacture in India.

1. To study their satisfaction level of customers of different cars available in

Tezpur.
2. To study the importance of various attribute which effect the purchasing
decision of customers in regard of cars.
3. To study the awareness level of different cars in Tezpur.
4. To study the importance of dealer and their influence in marketing/sale for
cars in Tezpur.
5. To study consumers buying behaviours.
6. To find out the expectation of the existing possessing and prospective
customers of the company.

7. To study the impact of media on the customers.

8. To study the satisfaction level of the customers on overall performance and
after sale service of their existing cars.
9. To study different promotional scheme they expect for purchasing a new car.

METHODOLOGY
(1) Preliminary Survey: - The project study was undertaken general discussion
and informal interview with the customer both possessing and prospective.
The objective were set mainly to gain an idea about consumers buying
behaviors of cars.

(2) Data Collection: - The data were collected from primary sources. The
primary data were collected from the customer both possessing and
prospective. Surveying method through personal or direct interviews with
the help of questionnaire-designed specification for the purpose did this.

(3) Questionnaire Design:- Primary data was collected through well framed
questionnaire. The questionnaire had two parts, one part for possessing
customers and other part for prospective customer. Question was framed
keeping mind. The various information required as per the objectives. Each
question was directed towards getting information regarding Maruti as well
as other competitors. The questionnaire contained both open ended and
close ended question. Also question with multiple-choice answers, degree of
importance scale etc. were included. All effort were made to that the

questionnaire was simple and precise and also adequate care was taken
about the language, structure and format of questionnaires.

(4) Sample Size: The sample was selected on the basis of simple random
sampling. A total 50 customer surveyed where 44 were processing and 6
were prospective customers.
The total sample size in segmented under the following zones:

Zones:
1. Isum Motors.
2. Main Road, Tezpur.
3. M.D.Road.
4. Various business establishments in Tezpur.

(5) Analysis: The data collected from the customer were analysed using
different standard statistical tools and techniques each of the question were
analyzed to find out the purchasing behaviour of different cars with
reference to Maruti motors.

(6) Scope: The scope of the project is define by the objective of the study it
self. If the study was basically for the fulfillment at its objectives. This
means that scope of this project study is restricted to consumers buying
behaviours of Maruti cars among the other brand in the market.
Scope of this project is also restricted to the area of field survey in
Tezpur. The study does not include any other area like finance personnel
product etc.

(7) Limitations: With many point the study of this project suffered from many
limitation also, likewise as the sample is low I cannot analyze many
respondent, as the survey may also suffer from bais results.

(8) Recommendation: Recommendation were made or the based of finding

drawn from the project analysis.

(9) Conclusion: Conclusion were made on the finding and analysis of the
survey.

CONSUMER BEHAVIOUR
Our society is a land of diversity. We see diversity at all level exist among
consumers, among nation, culture, food and taste among marketers and even
among consumers behavior theoretically perspective. However, despite prevailing
diversity in our society.
The term consumers behavior refers to the behavior that consumers display
in searching for purchasing, using, evaluating a disposing of product and service
that they expect will satisfy their needs. To study consumers behavior to spend
their available resource to understand and predict behavior in the market place, it
also promote understanding of the role that consumption play in the lines of
individuals.

Consumer behaviour study include the study what they buy, why they buy it,
when they buy, where they buy it, how often they buy it and how often they use it.
Consumer research takes place at every phases of the consumption process, before
the purchase, during the purchase and after the purchase, consumer behaviour
research goes far beyond these facts of consumer behaviour and considered the
uses of consumers make of the good they buy and their subsequent evaluation.
Consumer behaviour is inter disciplinary, that it is based on concept and
theories about people that have been involved by scientist in such diverse
disciplines as psychology, sociology, social psychology, cultural anthropology and
economics.
Consumer behaviour has been an integral part of strategic market planning.
The belief that ethics and social responsibility should also be Integral component
of every marketing decision is a revised market concept.
The term consumer is often used to describe two different kinds of
consuming entitles the personal consumer and the organizational consumers. The
personal consumers buys goods and service for his/her own use for the
organizational encompasses for profit and non profit business, govt. agencies and
institution all of which must buy product, equipment and service in order to run
their organization.

Introduction to buying motives Consumer or buyer is the central figure of all

marketing activities. It is the consumer who determines the growth, prosperity and
even existence of a business enterprise. Hence the marketer should always feel the
pulse of customers. In order to understand the pulse of the customers, the marketer
needs to understand fully the working of buyers mind. It helps him to plan his
production and distribution to suit to the needs and convenience of customers .It
also helps him to plan suitable marketing strategies. Thus it is very essential for

every marketer to know his customers buying motives. Buying motives Motive is a
strong feeling, instinct, desire or emotion that makes a person to do something.
When a motive makes a person to buy a product, then it becomes a buying motive.
Thus buying motive means the influence and considerations which makes a
customer to buy a particular product. According to D.J.Duncan, buying motives
are those influences or considerations which provide the impulse to buy, induce
action or determine choice in the purchase of goods and services. Buying motives
are mainly two types, manifest motives and latent motives. Manifest motives are
those motives which are known to the customer and also ready to admit them.

Consumer Behaviour: Turning to the Web and New C2C Tools

Consumers today have a multitude of sources from which to gather information

during the vehicle buying process, but the Internet tops the list. The web has
become a standard resource in the shopping process for eight out of 10 consumers
when researching car purchases. However, the way they use it is changing. As the
web matures, vehicle buyers are visiting fewer sites and focussing more on
manufacturer and C2C websites and less on third-party information sites and
independent e-tailer sties.

Manufacturer Sites a Key Information Source

Just two years ago, information websites were identified as the number one
information source by web users responding to the Cars Online survey (tied with
family and friends and manufacturer specific dealer), named by 55% of consumers.
This year, they dropped to the number four source, named by 41% of web users. In
comparison, manufacturer sites are now the top source for consumers who use the
web when researching vehicles, named by 70% of respondents. Two years ago
manufacturer sites held the number three position, named by 43% of web users.
The use of dealer websites has remained steady, with about half of web users
turning to these sites.

Key Factors in Vehicle Choice

When it comes to making their final decision about which vehicle to buy,
consumers focus on factors such as reliability, safety, price and fuel economy. At
the bottom of the list are cash-back incentives, named by fewer than half of
consumers. The importance of incentives as a deciding factor has declined for the
past several years, indicating that consumers today seem less interested in
gimmicks when it comes to their car purchases. Where consumers are in the
buying cycle can make a difference in how they rank the factors that influence
their vehicle choice. For example, additional warranty coverage is important to
consumers who are furthest away from the point of purchase; it was named by 69%
of respondents who were 13 to 18 months from purchase. However, the number
declines as consumers get closer to actually buying the car: 55% of respondents
who were within three months of purchase said extra warranty coverage was
important. This reflects the fact that consumers will narrow down the factors that

really matter to them as they get closer to the point of purchase. Demographic
factors such as age and gender accounted for some variances. For example, older
consumers tend to put more emphasis on reliability and safety than do younger
respondents. Those in the 50-plus age group were also more concerned with
environmental issues and fuel economy. The youngest respondents were most
likely to rate the ability to research information on the Internet as an important
factor in their vehicle decision. Women tend to rate most of the factors as more
important than do men. The difference was most pronounced for cash-back
incentives, low financing, safety, environmental issues, fuel economy and
additional warranty coverage.

Going Green: Fuel Efficiency Takes Centre Stage

Fuel efficiency and environmental issues have moved to the forefront in
consumers minds and in automotive industry forums thanks to factors including
global warming, fluctuating gasoline prices, and proposed legislation to increase
fuel efficiency and reduce CO2 emissions. This growing interest in so-called green
vehicles was evident in this years Cars Online research.

More than one-quarter of respondents said they currently own or lease a fuelefficient vehicle while almost half said they are planning to buy or thinking
seriously about buying a fuel-efficient vehicle. Not surprisingly, the numbers for
alternative-fuel vehicles were lower. Just 2% of respondents currently own an
alternative-fuel vehicle and 11% are planning to buy or thinking seriously about
buying one. The most common type of alternative-fuel vehicle represented in the
survey were gas/ electric hybrids, named by about half of current alternative-fuel
car owners.

Biodiesel vehicles were the second most common, named by 15%. The alternativefuel market remains in transition and its still too early to tell how it will ultimately
shake out, although sales are expected to continue to grow. For example, J.D.
Power and Associates predicts that U.S. sales of hybrid vehicles will increase by
35% in 2007, compared with 2006.

Current ownership of fuel-efficient and alternative-fuel vehicles tended to be quite

consistent across gender and age groups, although the oldest consumers were
somewhat more likely to be seriously thinking about buying an alternative-fuel car.

CONSUMER BUYING vs. ORGANIZATIONAL BUYING

Final (or ultimate) consumers purchase for:

personal,

family, or

household use

Organizational consumers purchase for:

further production,

usage in operating the organization, and/or

resale to other consumers

Consumer Buying Behavior

The decision processes and acts of final household consumers associated with
evaluating, buying, consuming, and discarding products for personal consumption
Consider the purchase an automobile. You generally will not consider different
options until some event triggers a need, such as a problem needing potentially
expensive repair. Once this need has put you "on the market", you begin to ask
your friends for recommendations regarding dealerships and car models. After
visiting several dealerships, you test drive several models and finally decide on a
particular model. After picking up your new car, you have doubts on the way
home, wondering if you can afford the monthly payments, but then begin to
wonder if instead you should have purchased a more expensive but potentially
more reliable model. Over the next five years, the car has several unexpected
breakdowns that lead you to want to purchase a different brand, but you have been
very happy with the services of the local dealership and decide to again purchase
your next car there.
In this particular case, the following generic model of consumer decision making
appears to hold:
=====>need recognition

=====>information search
=====>evaluation of alternatives
=====>purchase decision
=====>postpurchase behavior

Now consider the purchase of a quart of orange juice. You purchase this product
when you do your grocery shopping once per week. You have a favorite brand of
orange juice and usually do your grocery shopping at the same store. When you
buy orange juice, you always go to the same place in the store to pick it up, and
never notice what other brands are on the shelf or what are the prices of other
brands. How is it that the generic model above works differently in this second
scenario? Why does it work differently? Why would we generally need the
ministrations of a sales person in the sale of a car, but we generally do not need the
help of a salesperson in the purchase of orange juice?
How can the marketer of orange juice get a consumer like you to exert more effort
into information search or to consider alternative products? How is it that the
marketer of your brand got you to ignore alternative competing brands? What is
the involvement of salespeople in sales promotions that might be associated with
products such as orange juice?
Consumer behavior researchers are not so interested in studying the validity of the
above generic model, but are more interested in various factors that influence how
such a model might work.

GROUP INFLUENCES ON CONSUMER BEHAVIOR

Culture
the set of basic values, beliefs, norms, and associated behaviors that are learned by
a member of society
Note that culture is something that is learned and that it has a relatively long
lasting effect on the behaviors of an individual. As an example of cultural
influences, consider how the salesperson in an appliance store in the U.S. must
react to different couples who are considering the purchase of a refrigerator. In
some subcultures, the husband will play a dominant role in the purchase decision;
in others, the wife will play a more dominant role.
Social Class
A group of individuals with similar social rank, based on such factors as
occupation, education, and wealth
Reference Groups
Groups, often temporary, that affect a person's values, attitude, or behaviors

E.g., your behaviors around colleagues at work or friends at school are

probably different from your behaviors around your parents, no matter your
age or stage in the family life cycle. If you were a used car salesperson, how
might you respond differently to a nineteen year old prospect accompanied
by her boyfriend from one accompanied by two girlfriends?

Opinion leader
A person within a reference group who exerts influence on others because of
special skills, knowledge, personality, etc.

You might ask the webmaster at work for an opinion about a

particular software application. Software manufacturers often give
away free beta copies of software to potential opinion leaders with the
hope that they will in turn influence many others to purchase the
product.

Family
A group of people related by blood, marriage, or other socially approved
relationship