Professional Documents
Culture Documents
ON
“CUSTOMER PERCEPTION AND
ATTITUDE TOWARDS SELECTED BRANDS
OF 100C.C.-A CASE STUDY OF SHAHABAD
(MARKANDA)”
For the partial fulfillment of the degree of
Master of Business Administration Of
Punjab Technical University, Jalandhar
Session: 2005-2007
This is to certify that Mr. Aman Arora has done the Major research Project entitled
Business Administration. The work done by him is a sole effort and has not been
Mr.Irrenpreet Singh
Lecturer
Department of Business Administration
RIMT-Institute of Engg. & Technology,
Mandi Gobindgarh.
COUNTERSIGNED
This project report has been made possible through the direct & indirect
cooperation of various people whom I wish to express my thanks and gratitude’s.
I am very thankful to Dr. Harpreet Singh (Head of Department, MBA, RIMT-
Institute of Engineering &Technology (Mandi Gobindgarh) for helping me to do work on
project.
I also want to express my grateful thanks to Mr. Irrenpreet Singh (Faculty) who
relised me where I am lacking while doing the project work.
I would also like to thanks the other Faculty members of the institute and my
friends for their advice and guidance along kindled inspiration in the face of difficulties
encountered in the course of this work and to create this project report.
Finally with blessings of my parents and who had been a source of strength
and inspiration for me in this endeavor.
1. Certificate
2. Acknowledgement
3. List of Abbreviations
➢ Objective of study.
2. Chapter 5-Suggestions
3. Bibliography
4. Annexure
LIST OF ABBREVATIONS
REVIEW OF LITERATURE
Executive Summary
To know about the consumer buying behavior and factor which As the
HONDA HONDA and BAJAJ), Between the age group of 18-24 years in
services
Consumer buyer behavior refers to the buying behavior of final consumers – individuals
and households who buys services and goods for personal consumption. Consumer
behavior is influenced strongly by culture, social, personal and psychological factors.
Culture factors include the set of basic values, perceptions, wants and behavior learned
by a member of society from family and other important institutions. The social factors
include consumer’s family, small group, social roles and status. The personal
characteristics such as buyer’s age, life cycle stage, occupation, economic situations and
life style influenced by four major psychological factors: Motivation, Perception,
Learning, Belief and Attitudes.
In this era of cut throat competition, no company can even survive in the market place
without knowing its and its products strengths and weaknesses. It has to fortify itself
against threats from the environment and exploit its strengths or increase profits. And in
order to do so, the company has to conduct regular surveys to know the customer’s
opinions, needs, and preferences. This helps the company to manufacture the product like
wise for each customer’s expectations.
INTRODUCTION
Everybody in this world is a consumer. We need a variety of goods and services
right from our birth to death. All consumers are buyers and all buyers are not consumer.
Then who are the consumer buyers and how they behave while purchasing a particular
product is very important for marketers. Consumer buyer behavior refers to the buying
behavior of final consumers – individuals and households who buys services and goods
for personal consumption. Consumer behavior is influenced strongly by culture, social ,
personal and psychological factors. Culture factors include the set of basic values,
perceptions, wants and behavior learned by a member of society from family and other
important institutions. The social factors include consumer’s family, small group, social
roles and status. The personal characteristics such as buyer’s age, life cycle stage,
occupation, economic situations and life style influenced by four major psychological
factors: Motivation, Perception, Learning, Belief and Attitudes.
By keeping in view the importance of consumer behavior, the present study deals
with the consumer buyer behavior of two wheelers in Yamuna nagar city.
Increasing urbanization, higher disposal incomes, falling interest rates and poor
public transport lead to increase in the volume of two-wheelers, 10 percent increase year
after year for the past one decade.
In this era of cut throat competition, no company can even survive in the market
place without knowing its and its products strengths and weaknesses. It has to fortify
itself against threats from the environment and exploit its strengths or increase profits.
And in order to do so, the company has to conduct regular surveys to know the
customer’s opinions, needs, and preferences. This helps the company to manufacture the
product like wise for each customer’s expectations.
It has now become more important for the customer confidence and higher
positioning of buyer perception. Thus, Surveys becomes genuine key to success.
Consumers Behavior
Consumers Behavior can be defined as –
ROLE DESCRIPTION
Initiator The individual who determines that some or need or want is not
being met & authorize to rectify the situation.
Influencer A person who by some intentional or unintentional
word or action influences the purchase decision, the
actual purchase and the use of the product or service.
Buyer The individual who actually makes the purchase
transaction.
User The person most directly involved in the
consumption or use of purchase.
Thus, the importance of CB lies in the fact that behavior can be understand &
influenced to ensure a positive purchase decision. So, a round understanding of CB is
essential to the long run success of any marketing program. In fact, it is seen as a
cornerstone of the marketing concept. That's why the marketing managers interest lies
exactly to ensure that his marketing strategy result in purchase of the product.
MODELING BEHAVIOR
The study of consumer behavior is quite complex, because of the many variable
involved and their tendency to interact with and influence each other. So, the most
relevant variables and their influence can be shown by a diagram, which is made up of
three major sections.
1. EXTERNAL VARIABLE:
I) Culture:
The study of culture encompasses all aspect of a society such as its religion
knowledge, language, laws, customs, tradition, music, art, technology, work
pattern, products etc. for the purpose of CB culture can be defined as the sum total
of learned beliefs, value & custom that serve to guide and direct the consumer
behavior of members of a particular society. Thus, the concept of culture offers
many general & specific insights into the behavior of consumers. So, it is a
starting point for the marketer who wishes to better understand a market.
a) Formal learning:
In which parent an elders teach children the proper way to behave & this behavior
influence his attitude towards the products.
c) Technical Learning: In which instruction are given about the specify method by which
certain things have to be done such as painting, dancing etc.
II) Subculture: These groups posses beliefs, values and customs that set them apart
from other members of the same society or culture. So, there are subculture of
students, Professors, marketers, & other group. An individual may be member of
more than one subculture at the same time, and based upon it consumer’s
behavior like product purchase Patterns, Shopping behavior &: other
Demographic & Psychographic characteristics may differ. Thus, it .is imperative
that marketers understand who constitutes the most relevant subculture for their
particular or service.
REFERENCE GROUPS:
It refers to group that serve as trams of reference for individual in their judgment,
beliefs, purpose & consumption behavior. These reference groups are highly
relevant and potent influence in consumer’s decision-making. To attract
consumers a no of promotional strategies are used & one of them is Reference
group appeal. There are helpful in increasing: brand awareness & serve to reduce
perceived & guide the individual value & behavior.
V) Family:
The family is a major influence on the consumption behavior of its members; it is
also the prime target market for most product categories. Familiars can be defined
as two or more person related by blood, marriage or adoption that reside together.
The basic function of a family is the provision of economic & emotional support;
childhood socialization & a suitable life style for its members of consumer’s
related role of family members include influences, gatekeeper, deciders, buyers,
users, maintainers & disposers. Thus, the family operates an economic unit,
earning & spending money & the family functions directly in the role of ultimate
consumption. Each family member influences the purchase decision. Family
members have individual and collective consumption priorities. Thus, the
marketers need to understand the nature, the family's influence on its members &
the way in which the purchase decision are made by the members. The stages of a
family's life cycle also influence the consumer behavior.
(a) Demographic factor & life cycle stage: The first factor influence a buyer's
decision is his age. There are certain physiological difference between men &
women, which result in there having different consumption needs.
The consumption behavior is also influenced by the specific stage of the family
life cycle, which are as follows-
• Single stage (Young unmarried people living away from
home)
• Young newly married (no children)
• Full nest I (Youngest child under 6)
• Full nest II (Youngest child over 6)
• Empty nest I; older (married couples, no children living at
home, house hold head still working)
• Solitary Survivor - In (Labour Force)
• Solitary Survivor: Retired.
b) Education & Occupation: Education widens a person's horizon, refines his tastes
and makes his outlook more cosmopolitan. An educated person as compared to
somebody less educated is more likely to consume educational facilities, books,
magazines and other knowledge oriented products and services. The occupation
also shapes the consumption needs. Some people require specialized equipment
for the purpose of their job.
c) Income: Income here means the income available for spending (i.e. income after
tax, provident fund and other statuary deduction). The person's attitude towards
spending versus saving and his borrowings power are also important influencing
factors.
e) Life Style: Life styles are the pattern in which people live, as expressed by the
manner, in which they spend money and time on various activities and interests. It
is a function of opinion, social class, demographic factors and personality etc.
a) Consumer needs and motivation: Consumer has different needs and attitudes
towards any good and services and they accept different goods or services with
the expectation that they will satisfy their needs. Motives are the internal factors
that energize behavior and provide guidance to direct the activated behavior.
Involvement describes the personal relevance or importance that consumer
perceives in a given purchase situation.
b) Perception: Perception can be defined as "how we see the world around us;"
Perception helps to explain the phenomenon of why different individual responds
definitely to the same stimulus under same conditions.
c) Learning and Memory: Learning can be viewed as very significant for marketer
as it implies that consumers can be made to learn the desired behavior through an
interplay of motives stimuli, cues, responses and reinforcements. Learning refers
to the skill and knowledge gained from part experience, which one tends to apply
to evaluate future decisions learning and memory processes can help to
understand that war frequency is needed to repeat, advertising messages, how
visual symbols and other techniques can facilitate consumers learning and
memory regarding products and how consumer develop habitual purchase pattern
for some goods.
d) Beliefs and Attitudes: A belief is a descriptive thought that a person has about
something. The belief may be based on some real facts or it may merely be a
notion or opinion that the person has. Attitude is a person's enduring facing
evaluation and tendency towards a particular idea or object Attitudes strongly
influence how consumers will act and react to products and services and how they
will respond to communication that marketers develop to convince then to
purchase their products.
Thus, there were the various factors, which influence the consumer behavior.
MOTORCYCLE
Near 70% of the motorcycle sales is from Indi-Japanese motorcycles and rest
coming from Indian motorcycle manufacturers. The Indo-Japanese segment is catered by
4 to 6 models from each of the players viz. . HERO HONDA, BAJAJ, TVS, ROYAL
ENFIELD etc. But majority of sales is of 100cc to 125cc motorcycles. The Indo-Japanese
motorcycles are costlier due to import content and royalty payments to their Japanese
collaborations. But, These motorcycles are far ahead of Indian Manufacturers viz.
Rajdoot from EYML, Yexzdi from IDEAL JAWA; in terms of technology and fuel-
efficiency.
Trying to catch up with these, manufacturers are busy working out customer
profiles. With the competition hotting up one can find a host of discounts including: cash
rebates and free accessories to push sales of the commuter bikes. Certain changes are also
visible as far as customer preferences are concerned. The basic 100cc bike market is
suddenly experiencing a slow down in the growth. This Commuter bike was a favorite till
the other day commanding up to 90% of the total bike sales. The shift towards 100cc plus
bikes is suddenly discernable and the segment is expected to double in the next year
itself.
Manufacturers are now rushing in to introduce bikes in this segment. Bajaj had
recently launched a spruced up version of its Caliber and is also planning to upgrade the
Pulsar-Dtsi higher on the power ladder. Hero Honda is also upgrading its line-up to keep
pace with the shift in demand by launching: Ambition 135, CBZ star, Karizma etc.
But it’s not yet end of the road for the basic entry-level bike. We are witnessing
segmentation in the bike market, like the Bike market. The entry level model will
continue to be a high-interest segment for the aspirants.
Against this backdrop, the present project work has been undertaken. With the
focus of the consumer shifting to brand and product features, the project is a study aiming
at understanding what does a customer wants from Power segment bikes(150cc & plus).
(In today’s challenging & competitive world of fast changing technology,
consumer tastes are also characterized by fast changes. So, to survive in the market, a
firm has to be constantly innovating and understand the latest, consumer trends, tastes
and preference. Consumer behavior provides invaluable dues and guidelines to market on
new technological frontiers, which they should explore. It is realized by studying the
buying behavior of consumers that many consumer products that they felt reflected their
own special needs, personalities and lifestyles. To better meet the needs of specific
groups of consumers, most marketers adopted a policy of market segmentation &
successfully market to different segments the marketing manager needs appropriate
marketing strategies, which he can design only when he can understand the factor, which
account for these difference in consumers behavior.
The most important reason for studying consumer behavior is the significant role
it plays in our lives. It plays a vital role in decision-making. As consumer significantly
affected certain decision's behavior or expected actions. So, consumer behavior is said to
be an applied discipline. Such applications can exit at two different levels of analysis.
The Micro Perspective & Societal perspective.
As India is very potential market for two-wheeler. There are a number of players
competing with one another. In the mean time, there are 5 major players fighting for an
approx. two wheelers market of 50.18 lakh two- wheelers annually. The structure of the
industry has changed during the last decade with a number of small companies being
taken over by major players. But, the competition has just begun to hot up with coming
up of MNCs. The major players are as follows:
1) HERO HONDA
Hero Honda has a reputation of being the most fuel-efficient and the largest
selling Indian motorcycle. Its commitment of providing high value products at reasonable
prices, led the world’s largest manufacturer of motorcycles to collaborate with the
world’s largest bicycle manufacturer.
It was this affinity in working cultures of HONDA Motor Company of Japan and
the HERO Group, that resulted in the setting up of the HERO HONDA MOTORS LTD.
2) BAJAJ
Now, as the trend is changing very fastly from scooters to bikes from 2000,
LML also entered into the field of bikes manufacturing.
4. TVS
TVS is also a leading two-wheeler company began under with the vision of
the founder of the Sundaram Clayton Group the late Mr. T.S.Srinivasan to
design, develop and produce an affordable moped for the Indian family.
5. ROYAL ENFIELD
Established in 1955, Royal Enfield Motors is now a part of
the Eicher Group of companies- a Rs.10 billion
conglomerate.
Royal Enfield’s corporate philosophy is built around quality and unflinching
loyality to the customer. It too from time to time by its innovation introduced new
bikes to maintain customer loyality.
It’s major models are:
Power Bikes:-- * Bullet STD12V * Bullet 500 * Bullet Machismo
6. KINETIC
Kinetic engineering Ltd. Is founded in the year 1970, is the leading
manufacturer and exporter of 2- wheelers. Born of the vision of late Mr.
H.K. Firodia, Kinetic Engineering Ltd; has produced very useful bikes
for over 2 decades.
It’s major models are:
Commuter bikes:- * Challenger * Beamer
7. HONDA
HONDA ,Japan is the world’s largest motorcycle manufacturer in the
world. It had already a collaboration with the HERO group,India to produce bikes in
India. Now, It launches its own bikes in India on its own too. Honda group is the leading
motor cycle company in terms of manufacturing and latest technology.
• To find the promotional channel which creates more awareness about the bike
available in the market.
• To identify the factor which influence the consumer behaviour while selecting
a particular brand.
• To extract the source of information through which buyers came to know the
various brands.
• To identify the most favorable choice of two wheelers.
LITERATURE REVIEW
Once the problem is formulated, the researcher undertakes an extensive literature survey
related to problem. The literature survey undertaken here includes books and different
websites from the internet.
The research project was to know the Customer Perception and Attitude
towards selected brands of 100c.c. bikes (TVS,HONDA HONDA and BAJAJ),
Between the age group of 18-24 years in Shahabad (Markanda) on the basis of
Price, Brand name and After sale services -A case study of Shahabad (Markanda)”
Schiffman. G. Leon and kanuk lazare Leslie 1 - Study of the customer behaviour is the
study of how individuals make decisions to spend their available resources (Time, Money
and Efforts) on consumption related items. It includes the study what they buy, whey they
buy it, when they buy it, where they buy it, how often they buy it and how often they use
it. The primary purpose for the study consumer behavior as apart of marketing curriculum
is to understand how and how customers make their purchase decisions. There insights
enable marketers to design more effective marketing strategies.
• Kothari C.R.6 For data analysis different statistical techniques are being used
such as scaling techniques, correlation, and regression. Scaling technique helps in
analyzing the qualitative data.
• http://www.tvsapache.com/home.aspx
• http://www.bajajauto.com/pulsar/
• http://www.honda2wheelersindia.com/unicorn/ride_n_fly/be_a_wing_rider.asp
• http://auto.indiamart.com/motorcycles/
RESEARCH METHODOLOGY
SAMPLING DESIGN
• CENSUS METHOD: - All the items in any field of inquiry constitute a
‘Universe’ or ‘Population’. A complete enumeration of all the items in
the ‘Population’ is known as a Census inquiry. It can be presumed that in
such an inquiry, when all items are covered, no element of chance is left
and highest accuracy is obtained. But in practical it is not true in all cases.
This type of inquiry involves a great deal of time, money and energy.
Therefore, when the field of inquiry is large, this method becomes
difficult to adopt because of the resources involved.
• SAMPLING METHOD:- When field studies are undertaken in practical
life, consideration of time and cost almost invariably lead to a selection of
respondents i.e. selection of only few items. The respondent selected
should be as representative of total population. These respondents
constitute what is technically called a ‘Sample’ and the selection process
is called ‘Sampling Technique’. The survey so conducted is known as
‘Sample Survey’.
✔ Implementation of Sample Design: - A sample design is a definite plan for
obtaining a sample from a given population. It refers to the technique or the
procedure the researcher would adopt in selecting items for the sample.
Sampling design may as well lay down the number of items to be included in
the sample i.e. the size of sample. Sample design is determined before the data
are colleted.
✔ Steps In Sampling Design :- While developing a research design following
items are taken into consideration:-
I. Type of universe: - First and the foremost step is to clearly define the
universe to be studied. As I have taken the area of Shahabad
(Markanda) Haryana
ANALYTICAL TOOL
DATA COLLECTION
The task of data collection begins after the research program
has been defined and research design plan has been checked out. The data collected is
important part of research.
○ QUESTIONNAIRE
The method of data collection is quite popular. In the very first week of training I
my self made a questionnaire after knowing the different objectives of the study
and considering all the things that are required by the company’s official’s.
○ SAMPLING
Sampling may be defined as the selection of some parts of an agreement or
totality for the purpose of study. All the items in any field of inquiry constitute a
universe or population, a complete enumeration of all the items in the population
is known as Census inquiry. But when the field of inquiry is large this method
becomes difficult to adopt because of the limited no. of resources involved in the
case sample survey method is chosen under which units are selected in such a way
that they represent the entire universe.
Hypothesis test
By applying Chi-Square……
OBSERVED
Mileage 29 24 9 62
Price 5 4 4 13
Brand 21 15 4 40
Style 5 5 2 12
Comfort 12 8 3 23
F 15
72 56 150
EXPECTED
HERO HONDA BAJAJ TVS TOTAL
15
72 56 150
TOTAL 2.911
χ 2 Calculated = 2.91
V = (r-1) (c-1) = (5-1) (4-1) = 12
for V = 8χ 2
0.05 table value = 7.81
So, χ 2
0.05 table value greater than χ 2
calculated value so hypothesis is accepted
and there is positive relation between the various factors.
Limitations of Study
1 Are you aware about the 150cc bike brands available in the market?
• Fully aware
• Less aware
• Unaware
75
45
80
30
60
40
20
0
1
69
56
80
25
60
40
20
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1
80
67
70
60
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40 Series1
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3 which factor influence you more to buy the bike –
a. Brand image
b. Price
c. Mileage
d. Power
e. Style
4 How do you grade the following qualities-
a. Safety
b. Comfort
c. Performance
d. Style
e. Warranty
f. After Sales service
g. Power
45
40
35
30
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5 Are you satisfied with its overall performance?
• Fully satisfied
• Moderate
• Average
• Less satisfied
• Poor
.7 According to you, which company gives the most benefits to customers?
• HERO HONDA
• BAJAJ
• TVS
80
72
70
60 57
50
40 Series1
30
21
20
10
0
HERO HONDA BAJAJ TVS
8 . In which type of media you see the two wheeler most?
• T.V
• Newspaper
• Wall painting
• Hording
• Magazine
80 74
70
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9 .Who influenced you more in your buying decision of bike?
• Self
• Family member
• Friends/relatives
• Mechanics
60 57
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10 In your opinion, what role advertisement plays?
• Provides Important details
• Creates awareness
• Misleading
100
89
90
80
70
60
50
40
30
20
8
10
0
53
.
RECOMMENDATION
Recommendation refers to the outcome of the research work and the suggestions for
implementation which are outcome of the research done i.e. findings.
– Insurance
4 Are you aware about the 150cc bike brands available in the market?
• Fully aware
• Less aware
• Unaware
5 How did you came to know about this brand /model of 150cc bike –
a. Through friends
b. Advertisement
c. Publicity
d. Family members
e. Any other
6 which factor influence you more to buy the bike –
a. Brand image
b. Fuel efficiency
c. Price
d. Other
10. According to you which company gives the most benefits to customers?
• HONDA
• BAJAJ
• TVS
11. In which type of media you see the two wheeler most?
• T.V
• Newspaper
• Wall painting
• Hording
• Magazine
12. Who influenced you more in your buying decision of bike?
• Self
• Family member
• Friends/relatives
• Mechanics
14 if any other bike brand offer any attractive schemes, will you go for that brand?
Yes No