Consumer Behavior Towards Hero Honda Splendor Plus

CONSUMER BEHAVIOR TOWARDS Hero Honda Splendor Plus
CONTENTS
CHAPTER :- 1
1) INTRODUCTION
2) SIGNIFICANCE OF THE STUDY
3) NEED OF THE STUDY
4) OBJECTIVITY OF THE STUDY
5) THE TWO-WHEELER SEGMENT IN INDIA
6) METHODOLOGY
CHAPTER:- 2
1) THEORETICAL
BACKGROUND
BEHAVIOR
CHAPTER:- 3
1) PROFILE OF THE COMPANY
2) PRODUCT PROFILE
CHAPTER:- 4
1) EVALUATION OF THE STUDY
B.R.B. COLLEGE OF COMMERCE, RAICHUR
OF
CONSUMER
CHAPTER:- 5
1) FINDINGS
2) SUGGESTIONS
CHAPTER: 6
1) BIBLIOGRAPHY
CHAPTER 1
1.1
Introduction
1.2
Significance of the study
1.3
Need of the study
1.4
Objectivity of the study
1.5
The two-wheeler segment in India
1.6
Methodology
CHAPTER 1
1.1
Introduction
In todays volatile and fast moving world there is nothing constant
except change, if one adopts a change to the new scenario. One runs the
link the getting of touch with the ground related & these enticing the
competitive edge.
Over the last decade or more the Indian market far product and
service as under going a fundamental change i.e. The market is changing
from a seller market to lower market. Since the start of liberalization
places in the early nineties.
This process has accelerated further and more suppliers are now
trying to move the consumer for the similar products and services in
which consumer has a wider choices.
All this has forced companies to be more focused on the consumer

needs and not just have a product / services by force. Those companies
who have been able to focus better on the needs of the consumer have
obviously faced better than others.
Having opened proverbial Pandoras box the marketing are

wondering not just how to win the customer but also how to retain them.
1.2
Significance of the study

The present study is directed towards consumer behavior towards
Hero Honda Splendor plus in RAICHUR City.
This study is being conducted to know companys customer more

and serve them better.
1.3
Need of the study

This search has been under taken to know the consumer behavior
provided by the dealer to their customers.
1.4
Objectives of the study

To know consumer behavior of purchasing Hero Honda Splendor
Plus.
To evaluate consumer satisfaction of the Hero Honda Splendor
Plus.
To find out any more improvements to be done to the present
vehicle i.e. Hero Honda Splendor Plus.
To study the present market scenario of the two wheeler industry in

India.
1.5
The two-wheeler segment in India

The automobile industry in India is usually thought of
manufacturer of cars, commercial vehicles & jeeps. Not many realize that
a major components of the industry in manufacturer of two wheelers &
three wheelers which accounts for a gross turn over of about 5000 and
provides direct and indirect employment for about 2,00,000.
Two wheelers are personally owned, they have been instrumental

in transforming. The life style of a large number of people particularly in
the urban areas of India. They cater to a very basic need for individual
transportation.
The growth in the sales of the Two-wheelers in India is therefore a

reliable index of our economic development and progress.
Indian consumer has access to latest information on world class

bikes through media. Due to changing life style, the people are seeking
variety and novelty.
The main product attributes of a bike which consumer perceives

are fuel efficient, convenience, and maintenance free, easy to handle,
simple machine and light weighted, easily controllable and cost effective.
Keeping the above attributes in the mind, each and every twowheeler company is trying to reach out more and more customers through
latest models with innovative technologies.
1.6
Methodology
The present study is based on both primary & secondary data. The
company data have been collected through survey method by way of

questionnaire. In India to this, personnel discussion and interviews were
collected. The secondary data have been collected from published and
unpublished records from the concerned institutions.
Here this study is based on questionnaire method with personnel

interview a questionnaire is distributed.
CHAPTER 2
THEORETICAL BACKGROUND OF CONSUMER BEHAVIOR
CHAPTER-2
THEORETICAL ASPECTS OF BEHAVIOR
Introduction
The study of consumer behavior is the study of how individual
make decision to spend there available resources (time, money & effort)
on consumption related items. It includes the study of what they buy
why they buy it, when they by it, where they buy it, how often they by it
and how often they use it.
Consider a more durable product, such as the Two-wheeler. What

kinds of consumer by fax machines for how use? What features do they
look for? What benefits do they seek? How likely they to replace there
are old models when new models with added features become available?
The answers for these questions can be found through consumer research
and can provide manufactures with important input for product
scheduling, design, modification & promotional strategy.
Although how and why consumer make decision to buy goods and
services consumer research goes far beyond these facts of consumer
behavior and encompasses all of the behaviors that consumers display in
searching for purchasing, using, evaluating, and disposing of products &

services that they except will satisfy their needs.
Marketers must decide at whom to direct their promotional efforts

the buyer or the user. For some products, they must identify the person
who is most likely; to influence the decision who may be neither the
buyer nor the user. Some marketers believe that the buyer of the product
is the best prospect, others believe it is the user of the product, will still
others play it safe by directing their promotional efforts to both buyers
and users.
Consumers behavior was a relatively, new fields of study in the

midrolate 1960s. With no history or body of research of its own, the
discipline borrowed heavily from concepts developed in other scientific
disciplined, such as psychology (the study of how an individual),
sociology (the study of groups), social psychology (the study of how and
individual operators in groups), anthropology (the influence of society on
the individual) and economics.
Many early theories concerning consumer behavior based on

economics theory, on the notion those individual at rationally to
maximize their benefit (satisfaction) in the purchase of goods and

services.
Consumer
Consumer one who is an actual user of the goods and services, who
express his feeling after actual use, weather the goods & services are up
to his satisfaction or not.
In other words consumer are persons who act in the capacity of

consumers, whether they consume on there own behalf (final consumer)
or consumers necessary part of these employments in institutions or
industry.
Consumer Behavior
According to LONDON Della Bitta consumer may be defined as
The decision process and physical activity individual engage in men
evaluating, acquiring, using or disposing of goods and services.
According to Webster it may be defined as All psychological

social and physical behavior of the potential customers as they become
aware of evaluate purchases, consume and other product and services.
In chart consumer behavior is the act of consuming or using goods

or services. So in consumer behavior we consider not only part of
decision process but also why, after and under what condition the
purchases is needed.
BUYER CHARACTERISTICS
INFLUENCING CONSUMER
Cultural
Social
Personal
Psychological
Cultural
Reference Groups
Sub Cultural
Family
Social Class
Role & Strategies
Age & Life

occupation
Economics
Circumstance Life
Style Personality
Motivation
Perception
Leading
Attitudes &
Beliefs
B
U
Y
E
R
Cultural Characteristics
The broadest influence on the buyer is the buyer is the buyer

cultural characteristics particularly the buyers culture, sub-culture and
social Class identification.
Culture
It is the most fundamental determinant of wants and behavior
whereas of lower creatures is largely by instinct; human behavior is
largely learned. The new baby as it grows up in a society will earn a basic
of socialization involving the family and other key institutions.
Sub-Culture
Each culture contains similar groups or sub-groups and each of
those provides more specific identification and socialization for its
members.
Social Class
Virtually
all-human
societies
exhibit
social
satisfaction.
Satisfaction may take the form of a caste system where the number of
different castes are reared for certain roles and cannot change their caste
membership.
Social Classes several features.

Persons within given class tends to behave more alike.
It is measured as weighted function of ones occupation, income,
wealth education, value orientation etc..,
It is continues rather than discrete, with individuals able to move
into a higher social class or drop into a lower one.
Social Characteristics
It includes references group, family and status of the buyer.
Reference groups
These groups influences persons attitudes, opinions and values.
Some are primary groups such as family; close friends neighbors and
fellow workers and other are secondary groups such as fraternal
organization & professional association. Groups they are not members of
inspirational groups but also influence people. Sports heroes & motive
starts are typical members of these groups.
1.
Family
Of all the face groups, a persons family undoubtedly plays the
largest & most enduring role in influencing has or her attitudes. Opinions
& value from the family the person acquires a mental set not only
towards religion, politics & economics but also towards personal
ambition, self worth & loves. Even if the buyer no longer interacts very
much with his or her family, the family influence on the unconscious
behavior of the buyer can be strong.
2.
Role & Statuses

A person participates in many groups through out life family other
reference groups, organizations & institutions.
The person will have a certain position in each group that can be
defined in terms of role & status. Each role has a status attached to it.
This reflects the general esteem according to that role in society or in the
eyes of the immediate group.
III Personal Characteristics

The
buyers
age
and
life
cycle
occupation,
economic
circumstances, life style & personality also influence a buyer decision.
1.
Age and Life Cycle

The concept of family life cycles has been developed to help and
identity possible changing wants, attitudes & values, as people grow

older. Seven stages of the family life cycle have been distinguished.
The Bachelor stage
Young single people
Newly married couples
Young no children
The fullness I
Young married couples with

youngest child under six.
The Fullness II
Young married couples with

youngest Child six or over
The fullness III
Older married couples with

Dependent children
The emptiness
Older married couples with no

children living with them.
The Solitary Survivors
Older single people
2.
Occupation
Persons occupation will lead to needs and wants for goods services.
A blue cooler worker will buy work clothes & work shoes. His or her
company president buys expensive goods.
3.
Economic Circumstance
Peoples economics circumstance will greatly affects the goods &
services they consider & buy. Their circumstance consists of their income
saving & asset, borrowing power & attitude towards spending versus
saving.
4.
Life Style
People coming from some sub-culture, social class, and even
occupational group can choose to lead quite different life styles.

Marketers believe that persons products and brand choices are a key
indicator of his or her life style.
5.
Personality
Personality
describes
the
organization
of
the
individual
distinguishing character trait attitudes and habits. Each person has a

distinct personality marketed by such traits as their degree of extraversion
versus introversion impulsiveness versus deliberateness, creativity versus
conventionality and activeness versus passiveness.
IV Psychological characteristics
Four major psychological process motivation perception learning
& beliefs & attitudes also influence a persons buying choice.
a.
Motivation
A person will recognize himself or herself as having all kinds of
needs at any point in time. Some needs are, Biogenic need for food,
drink, and bodily comfort.
Psychogenic such as need for recognition, response or variety of

experience
A motive is stimulated need that it sufficiently pressing to direct

the person towards the goal of satisfying the need.
B.
Learning
A motivated person is ready to act. How the motivated person
decides to act is influence by him or her perception of the situation. Two

people in the same motivated state and objective situation may act quite
differently because they perceive the situation differently.
When people act, they experience direct and indirect effect, which
influence there future behavior learning, is the name given to the change
in an individual behavior arising from experience most of behavior is
learned.
C.
Beliefs and attitudes

Through the learning process, people acquire there beliefs and
attitudes. These in turn influence there behavior.
A belief is a descriptive though that a person holds about

something manufacturers are very much interested in the beliefs that
people carry in their heads about their products and services.
An attitude describes a person enduring favourable or unfavorable

condition evaluation, emotional, feeling and action tendencies towards
some objects or idea. Attitudes function in peoples level to enable them
to have a fairly consistence behavior towards similar classes of objects.
1.
Buyers Characteristics
To understand buyer characteristics we should understand cultural,
social, personal and psychological factors.
2.
Products Characteristics
Various characteristics of the product that is quality and backup
services will influence the buying outcome.
3.
Seller Characteristics
Characteristics of the seller that is retailers knowledge, ability,
friendliness and services will influence the buying outcome.
4.
Situational characteristics
Various situational factors that are time pressure, time of the year
weather chance meeting with friends and the current economic outlook
will also influence the buying decision.
All four components of buying situation buyer products, sellers

and situation interact to product the buying outcome.
CHAPTER 3
1. PROFILE OF THE COMPANY

2. PRODUCT PROFILE
CHAPTER 3
When the going gets tough gets going. the most menarable,
veetaries are those won in the thought fields. In its fourth year since
liberalization, the Indian market in 1996-97 resembled a battle field,
eager to eliminate the work, & encourage the really hardy Hero Honda is
one among them.
Hero Honda group on 1800 company which was earlier a Hero.

Group that manufactured bicycle & mopeds, thought of diversification
that is going for the 100 cc bikes.
The association of Hero Honda dates back to 1983 when the Hero
group ensured collaboration with Honda motors company Japan, which
was the major & well known player in the automobile sectors. They
have 26% shares equally of each group & the rest investment was made
in the farm of share & promoters.
Mr. Ramkanth Munjal the managing director of Hero Honda

group was the man behind the success of the company.
The main with dynamic & great foresight & vision has really taken
the Hero Honda to new heights. For Hero Honda Motors Company,
Janpan Collaborates has provided to be very fruitful & eventful.
Under the able guidance of Raman Munhall, Hero Honda group

prospered remarkably well & attained the status of a market leader. Hero
Honda was just head by Mr. Brij (Mohan Lal Munhall, a Delhi based
company) was incorporated in 1984.
The 4 stroke were luck, luck & luck. Says are market watcher who
believes Hero Honda got a license to most money because of FIRODIA
family of Hondas other joint venture pune based Kinetic Honda Ltd.,
opened for a scooter collaborate when offered the first choice in picking
vehicles.
Honda through 1980s in the Indian market for motor cycles

attitudes seems to have been shaped by technology, which was high-tech
& recognized FOR Indian roads, the 4 stroke 100-cc engine that gave fill
it, sheet it, forget it motorbike Hero Honda or Sharp edge other than rest
uniquely positioned is the ultimate fuel-saver on two-wheelers. It causes
up to take hardness out of what was pre-weighted as a motorbike &
machine out of the essential character of a motorbike rider. LeatherB.R.B. COLLEGE OF COMMERCE, RAICHUR
knuckled bikes scoped it at as a namby-pamby two-wheeler providing a

bike. But it proceeded to modifying the product as a sensible transport
option purring into the heart of the consumer who could be gentle by
motor cycling standards set by such gis-guzzling as Enfield, Yezdi &
Rajoot. A motorbike beginning to be accepted as a safe riding vehicle.
HHML Indias No. 1 motorbike marketer. It has 97.2 c-c Models

styled differently, but all united by the ECO friendliness of the original
engine.
The direct result of the companys second 10-year signed in June1994 with Honda motors company coming into youth.
Manjals target for HHML one million vehicles per annum before
turning 20th 2006. A large portion will come from its care segment, where
opportunity is no ekes, existing the companies 100 cc motorbikes plant
Dharuhero, Haryana, has been operating 1 Lakhs units in 1993-94 to 1.8
Lakhs, 2.4 Lakhs and now 3 Lakhs units this fiscal years. from past three
years the company has interest 55 crores in the expansion all from
internal accruals.
Ten years ago save petrol was a slogan to CD-100 and other
competitors bike was vague in their appeal.
No true, restarts, HHML, which has done much ware, rely on the
technological bonanza. it did some smart rescanning and reengineering on
its 4-storke engine to launch new models. steak cam in 1988 aimed at the
style struck CD 1011 SS a slightly more rugged version of the original
bike comes three years later, for all train usage. the most recent splendor
plus come in 2003 with a new frame and together look to offer sleeks
styling with CD-100 55 suspensions system.
All these bikes served the needs of the Indian consumers

beautifully so for.
In the years HHMl drew on the hero groups experience with low
cost vendors development to luring down its products in part control to
less them a tenth the value. HHML is furiously rising its. Manufacturing
capacity. It had to inject-cost consciousness into all its regular operations.
This was no easy task with the prices of raw material spiraling. By their
experience is aids control costs.
Strict inventory planning has stocking costs too. They dont make
purchase orders with all studying the overall cost complications to the
vehicles. The give is impressive.
Productivity is up. Seven years ago HHML took 1990 employees

to make 84000 mobiles. Other player have and to bike prices to
accommodate the costs of installing commission control devices, no such
additional cost have to be in curred by Hero Honda.
HHML has soplened its interest burdens and used it smart cash
flow ideas to create a wonderful gap between inflows and outflows.
HHML gets its payments from its buyer in ten days. While it may take as
many as sixty days to send money to its creditors goods dealership mean
that gets some time gets all its money is advance.
The company expects 26-1 rise in turn over, to rupees 800 crore in
996-97 and an 82-1 jump in profit offer taxes, to about Rs. 40 crores.
The fundamental are strong so the company can offer to take risks. After
impressing capacity and with profits spraying by 55 to 42 crores. A
limited capacity in previous years. Seen its market shares skid from 3259. In 1996-97 increased production by 15 / long side its implementation
of Japanese style Just in time (JET) manufacturing practices in paying
off. Market shares as improved 36 / and earning per share nearly doubled
to Rs. 25 crores in two years its plants to further increases its capacity by
10 / the company has projected turn over of Rs. 1100 crores and profit by
buyers taxes of 80 crores.
PROFILE OF SITHA ROOM MOTORS:-S

Engine
4-stroke single cylinder air cooled, OHC.
Displacement
97.2 cc
Transmission
4-speed constant mesh
Ignition
electronic
Head light
12 v 35 / 35 w multi reflector halogen
Frame
tubular double cradle type
Suspension (front)
telescopic hydraulic fork
Suspension (rear)
hydraulic spring louded type & side
Wheel base
1230 m.m
Ground clearance
159 m.m
Carb wet
109 kg
Tire (front)
2.75*18-4pr
Tire (rear)
2.75*18-6 pr
Break type
drum type (130 mm diameter)
Special disk type (240 mm diameter)
Rear
Drum type (110 mm diameter)
Maximum power
7.5 ps @ 8000 rpm
5.5 kw @ 8000 rpm
85 km / hour
lamp
action
Maximum speed
Fuel tank capacity
10.5 liter (reserve 1.4 1 ltr)
DEALING PROCEDE OF SITHARAM MOTORS
1.
Showroom sales
Where customers approach directly

with sales manager
2.
Through marketing
Where dealer has to complete with

Competitors with promotional
Activates like advertisement
Demonstration, displays and road
shows
And test-drives
Separate sales force has been appointed to meet in personal with

the customers. The dealing will be in the following ways.
Limitations of the firms

1) They are authorized to sell only Hero Honda Vehicles and spare
parts
2) They are not able to reach there target sales
3) It has one more difficulty, that the company dumps the product to
its dealer. In order to increase the size of the company, the
company forces the dealers to sell more and hence dumping occurs.
MARKETING STRATEGY AND SALES PROMOTION

CARRIED OUT BY SITHARAM MOTORS
ADVERTISING
Catalogue advertisement
Printing of calendars
Pamphlet advertising
Window display
Banners and posters.
Media
EVALUATION OF THE STUDY

AGE GROUPS OF RESPONDENTS
Particulars
22-30
30-40
40-50
50 & above
Total
No. of respondents
22
12
11
05
50
Percentage
44%
24%
22%
10%
100%
Conclusion
It is obvious from the table that the respondents who is in the age
group of 22-30 yrs has preferred the Hero Honda splendor plus when
compared to other groups. The second place goes to the respondent
whose age group is in between 30 to 40 and their percentage is 24.
Profession of the respondents

Particulars
Student
Employee
Others
Total
No. of respondents
28
15
07
50
Percentage
56%
30%
14%
100%
Conclusion
Most of the respondents i.e. 56% are from the student group. The
students are more preferred the Hero Honda splendor thus than to other
groups. Due to mileage & comfort of the vehicle they are preferred more.
Respondents influencing buying the vehicles

Particulars
Price
Comfort
Maintenance
Publicity
Total
No. of respondents
10
20
14
06
50
Percentage
20%
40%
28%
12%
100%
Conclusion
The field survey clearly indicates in the above table that the 40% of
the respondents are of the opinion that they have preferred because of
more comfort 28% respondents have started because of less maintenance.
20% respondents opinion is because of low price they preferred this
vehicle.
Mileage range of the vehicle

Particulars
4-50
50-60
60-70
70 & above
Total
No. of respondents
12
28
08
02
50
Percentage
24%
56%
16%
04%
100%
Conclusion
The above take clearly reveals that the majority of the respondents
i.e. 60% the of have preferred splendor plus as it give more mileage i.e.
50-60
Suitable of the vehicle on road conditions and climate

Particulars
Yes
No
Total
No. of respondents
45
5
50
Percentage
90%
10%
100%
Conclusion
The above table clearly indicates that most of the respondents
stated that Hero Honda Splendor vehicle is suitable for our road
conditions & climate.
COA of Maintenance per month
Particulars
High
Low
Medium
Total
No. of respondents
10
18
22
50
Percentage
20%
36%
44%
100%
Conclusion
By seeing the above table it is clear that the maintenance of the
splendor plus is medium i.e. 44% of the respondents are agreed.
Satisfaction after sales & Service from Dealer

Particulars
High Satisfied
Low Satisfied
Medium Satisfied
Total
No. of respondents
33
03
14
50
Percentage
66%
6%
28%
100%
Conclusion
The above table clearly specifies that the customers are highly
satisfied from dealers after the sales & service i.e. 66%.
Resale value of the splendor plus
Particulars
Yes
No
Cant Say
Total
No. of respondents
35
10
05
50
Percentage
70%
20%
10 %
100%
Conclusion
Here it is crystal clear that by seeing the above table the splendor
plus is having a resale value that the 80% of the respondents are agreed.
Awareness of other vehicles in Hero Honda
Particulars
Yes
No
Medium
No. of respondents
46
04
50%
Percentage
92%
8%
100%
Conclusion
The above table clearly shows that the consumers are aware of
other vehicles in Hero Honda also other them Hero Honda Splendor plus.
Opinion as regards to the style

Particulars
Satisfactory
Good
Excellent
Medium
No. of respondents
15
30
05
50%
Percentage
30%
60%
10%
100%
Conclusion
The above table shows that as regards to the style of the vehicle,
the consumers i.e. 60% are in the opinion of goods. The 30% consumers
are satisfactory with the style.
CHAPTER- 5
FINDINGS
SUGGESTIONS
SUMMARY OF FINDINGS
1. In the age group of respondents, it has been found that nearly 44%
of the respondents are from the age groups of 22-30.
2. In the profession of respondents, we come across 56% of the
respondents are from the students groups. It has been preferred due
to mileage & comfort of the vehicle
3. In the influencing factor of buying the vehicle, it has been found
that nearly 40% of the respondents are influenced by the comfort of
the vehicle.
4. In the mileage range of the vehicle, we came across nearly 56% of
the respondents say the mileage range of the vehicle is around 5060 km/lit.
5. In the suitability of the vehicle on road conditions & climate, we
can see nearly 90% of the respondents saying yes.
6. In the cost of maintenance, it is found that 44% of the respondents
saying that the cost of maintenance of vehicle per month is
medium.
7. In the satisfaction after sales & service from dealer sector, we can
see around 66% of the respondents are highly satisfied after the
sales & services.
8. In the Resale value of splendor plus, it is found that nearly 80% of
the respondents say Yes.
9. In the awareness of other vehicles in Hero Honda, it is found that
nearly 92% of the respondents are aware of other vehicles in Hero
Honda.
10.In the opinion as regards to style of the vehicle, we came across
nearly 60% of the respondents say the style of the vehicle is well
and good.
SUGGESTIONS & RECOMMENDATIONS
Since there is an increasing demand for Hero Honda Splendor Plus

in the Market. I hereby suggest that.
Good Positioning of Hero Honda splendor plus is to be done to the

target group to increase sales of volume and market shard.
In order to promote sale of vehicle the company should under take
massive advertisement through different medias. As there is a cut
throat competition from the rivals in the market, advertisement is a
must.
I suggest that Hero Honda splendor plus should promise excellent
sales service to the customers which will plus point to the company
brand image.
The mileage given by the Hero Honda (Splendor plus) is medium
compared to other two-wheelers. Therefore, I suggest that the
company should increase mileage of the Hero Honda (Splendor
plus) by adopting the latest technology in order to increase the sale
volume.

Consumer Behavior Towards Hero Honda Splendor Plus

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CONSUMER BEHAVIOR TOWARDS Hero Honda Splendor Plus

B.R.B. COLLEGE OF COMMERCE, RAICHUR