Professional Documents
Culture Documents
INTRODUCTION
OVERVIEW
Consumer buying behavior signifies more than just the approach of consumer towards buying a
product. Marketing efforts therefore also emphasize on consumer‘s consumption of services,
ideas and activities. The manner in which consumer buys a product is extremely important to
marketers. It involves understanding a set of decisions what, why, when, how much and how
often that the consumer makes over the time. This research scrutinizes consumer behavior in a
wider perspective and highlights its dependency on the various factors influencing purchase
behavior In general terms ―Consumer is a person who consumes‖, especially an individual
belonging to a particular gender, age, sex, religion etc. and who acquires goods or services for
direct use or ownership rather than for resale or use in production and manufacturing. In other
words, it can be said that the Consumer is an individual who buys products or services for
personal use and not for resale or reproduce. A consumer is an important person who can make
the decision to purchase an item from a particular store, and can be swayed by marketing and
advertisements.
People usually consume things of daily use and also consume and buy these products
according to their personal needs, priorities and buying power. These can be consumable goods,
durable goods, Special goods or industrial goods. Consumer buying behavior means more than
just how an individual buys products. Marketing efforts therefore also focus on consumer‘s
consumption of services, his activities and ideas. It explains the set of decisions that a
consumer makes while buying. It is important to know consumer reaction towards different
products, their features, price, and advertisement pattern, in order to ensure strong competitive
advantage. Consumer buying behavior is the process involved when individuals or groups
select, use, or dispose products, services, ideas or experiences (exchange) to satisfy needs and
desires.
Consumer behavior is the scientific learning of how people buy, what they prefer to buy, when
they need to buy and why they buy i.e. the reason to buy. It mingles elements from psychology,
anthropology, sociology, and economics. It makes an effort to understand the buyer decision
processes or the buyer decision making process, both individually and in groups. It examines
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special characteristics of individual consumers such as demographics, psychographics, and
behavioral variables in an attempt to understand the needs of the people. It also tries to assess
influences on the consumer with the help of groups such as family, friends, reference groups,
and society as a whole.
The four P's, Product, Price, Place and Promotion are all part of consumer incentives. Other
important factors in the consumer environment are changes in the economy, technology,
politics, and culture which affect their buying incentives. All of these different stimuli are put
together in ―the buyer‘s black box and will probably observable results in buyer responses, as
choice of product, amount and purchase timing. Consumer Behavior is also explained as the
process and activities people carry on while selecting, searching for, buying, using, evaluating
and disposing of products or services which results in satisfying their needs and desires.
Today the various forms of media, especially electronic have great influence on the
consumer‘s buying process. Technological developments in the field of information,
biotechnology, genetics and intensive competitions in all products and services are also
impacting as a huge factor in consumer choices.
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Factors influencing consumer buying behavior
The factors influencing consumer behavior are classified into two types as follows:
Internal Factors
The external factors do not have any effect on the decision process of consumers, but
percolate or filter through the personal determinants, to influence the decision process.
Consumer‘s attitude.
Sub-cultural influences
Social class influences – Influences related to the individual buyers specific society,
religion etc.
Social group influences – The social group in which individual buyer resides influences
the buying behavior.
Personal influences
Other influences
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Some important factors which influence consumer’s behavior are explained
below
Cultural Factors
Culture is developed out of values, ideas, attitudes and other meaningful symbols that allows
any human being to communicate, interpret and evaluate as a member of society. It is the main
reason behind a person‘s wants, desires and behavior. Although, different social groups have
their own culture that usually affects consumers buying behavior, but the extent to which this
factor influences the behavior varies from country to country, region to region. Each cultural
group can be divided into small groups consisting of people with common life experiences and
similar situations, also known as subcultures, such as nationality, racial groups, religion, and
exact geographic regions. The cultural factor is social class, it contains the variables like
education, occupation, income, and wealth.
Every culture has smaller groups who share the same values and beliefs due to common life
experience and situations. These groups play a vital role for marketers since many of these
subcultures make up an important segment of the market.
There is some specific form of social class and structure in every society. This class system is
different with respect to each country in point of distribution and ratio. Income divides every
society into three sub-classes namely rich, poor and middle. Every sub-class has its own
values, interests and behavior.
Social Factors
The second important factor affecting consumer behavior is social groups, which are made up
of small groups, social roles and same social status. Some of these groups have a direct
influence on an individual buyer, i.e. membership of an individual in particular groups, groups
that a person can belong to , and reference groups which serve as direct or indirect points of
comparison or reference in farming a person‘s attitudes or beliefs However, some people are
affected by groups in which they are not a part of these reference groups include inspirational
groups, groups that a person desires to be a part of and a fan‘s admiration for an idol, etc..
Wife, husband or a child has strong influences on a consumer and thus the family of any
individual is the most vital consumer buying organization in the society.
Personal Factors
Various personal characteristics such as buyers age, occupation, financial situation, lifestyle,
personality and self-concept also influences a lot on the buyer's decision . Shifting in person‘s
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demand for products mainly depends on the occupation and financial situation, as well as the
particular stage in the life. An individual‘s lifestyle affects his or her activities, interests, and
opinions and also affects the choice of products. Moreover, all people are individuals; hence
have a unique personality of different characteristics, which is often depicted with traits, such
as sociability, self-confidence, autonomy, defensiveness, adaptability, dominance and
aggressiveness etc
Goods and services that consumers buy frequently change their lifespan. The product such as
food, clothes (Dress) and furniture are age related and consumer‘s choice varies over the
period of time. The Person who lives in a particular society and works in a particular class,
hence prefers the product as per his/her surroundings. Even a person‘s economic situation has
a considerable impact on his/her buying behavior.
The discussion covers personal factors and it is significant to discuss about personal values, as
each and every consumer possesses life goals and they purchase products to achieve value
related to their goals. Values are believed that describe preference and suggest a choice
between appropriate and inappropriate behavior has developed a list of values (LOV) which
consists of total nine internal and external values usually possessed byconsumers .
External values: It includes a sense of belonging, being well respected and security.
Internal values: It deals with self-fulfillment, excitement, sense of
Accomplishment, self-respect, fun and enjoyment and warm relationships.
Psychological Factors:
This group is constituted of four major factors, perception, specifically motivation, attitudes,
learning and beliefs. When a person is motivated, he or she acts accordingly and the actions
taken over are affected by the person‘s perception of the particular situation. Perception is an
individual ability of selection, interpretation of the information and organization which flows
through the person‘s senses, and consequently a meaningful picture of the world is formed.
The experience of new things, brings changes to a person‘s behavior. As a result, new beliefs
and attitudes are acquired and hence affects the normal buying behavior
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Motivation:
The first step in consumer purchasing process is to find and recognition of need or motivation,
where consumer realizes that he or she has need for something or else It reflects an inner
psychological state of awakening that directs the motive of the consumer to engage in goal
relevant behavior and detailed decision making, for example If one likes a jacket in a shop then
one would look at the product attributes as well as relate with the information or style which
they have in their own mind. Motivation is enhanced, when consumers regard something as-
Personally suitable
Risky and
Personally relevant information or things also motivate consumers. Health product or ladies
cosmetics are the best example of product to get a broad view on motivation in relevance to
personally relevant products. Consumers have different various specific kinds of needs behind
the purchase. Maslow grouped these different consumers‘ needs into five broad categories
Safety (This includes the need for protection, shelter and security),
Social (It has the need for friendship, acceptance and affection),
Egoistic (These are the need for self-esteem, prestige, success and
accomplishment) and
Self-actualization (This mainly deals with the need for enriching experiences
and self-fulfillment).
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Consumer Ability
Motivation of consumer is highly and significantly relevant to their ability of process
information. Ability is defined as the extent to which consumers have the necessary resources
to make the desired outcome happen. Consumers‘ knowledge, experience, cognitive style,
intelligence, education, age and money majorly affect the consumer‘s ability to process
information about a product or buying of certain products.
Consumer opportunity
One of the most important factors in buying process is time. Even though consumers have high
motivation and the ability to process information, still they could not get time to make a
decision or purchase. Sometime consumers take decisions under occasion pressure (shopping
for festivals like Diwali, engagement) where they get limited time and less opportunity to go
through the information. Other than time, presenting the information is another main factor in
reducing consumer opportunity to deal with the information. Complex and inappropriate
information usually decreases the opportunity to process it.
Perception
Perception is defined as ―How a person sees the world around him‖. Two individuals may
subject to the similar situation under the same conditions, but the way they recognize, organize
and interpret stimuli is entirely different. Perception is an individual‘s own process based on
their cognition, needs and requirements,
values, expectations and likes/dislikes. A motivated person is ready to act in one or other way.
The action of a person is influenced by his or her perception towards the situation. Perception
occurs when information is processed by one of our five major senses: vision, hearing, taste,
smell and touch. Intensity and music are other important aspects of aural stimuli. Taste
perceptions are critical for some products and can vary across various cultures. . In Iran, people
prefer to use maximum black colour or at least a small piece of black fabric on their body while
in Saudi Arabia, people prefer to use maximum time white clothing.
Individuals try to act and react mostly on the basis of their perceptions and less on the basis of
the objective reality. Thus, for marketers, the perceptions of consumers are more important than
their knowledge of objective reality. Individual‘s decisions and actions are based on what they
perceive to be a reality. Thus, marketers should understand the whole concept of perception
and its related motions so that they can readily determine various factors which influence
consumers to buy goods or services .Consumer‘s selection of stimuli from the environment is
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based on the interaction of their expectations and motives. People usually perceive things they
need or want, and block the perception of unwanted or unfavorable stimuli. The interpretation
of stimuli is mostly subjective and is depended on what the consumer expects to see in light of
its earlier experience, its motives and interests at the time of perception. The clarity and
originality of the stimuli itself plays an important role in that interpretation. The distortion of an
objective interpretation is mainly due to the physical appearance, the first impression and
stereotypes .
values, expectations and likes/dislikes. A motivated person is ready to act in one or other way.
The action of a person is influenced by his or her perception towards the situation. Perception
occurs when information is processed by one of our five major senses: vision, hearing, taste,
smell and touch. Intensity and music are other important aspects of aural stimuli. Taste
perceptions are critical for some products and can vary across various cultures. . In Iran, people
prefer to use maximum black color or at least a small piece of black fabric on their body while
in Saudi Arabia, people prefer to use maximum time white clothing.
Individuals try to act and react mostly on the basis of their perceptions and less on the basis of
the objective reality. Thus, for marketers, the perceptions of consumers are more important than
their knowledge of objective reality. Individual‘s decisions and actions are based on what they
perceive to be a reality. Thus, marketers should understand the whole concept of perception
and its related motions so that they can readily determine various factors which influence
consumers to buy goods or services. Consumer‘s selection of stimuli from the environment is
based on the interaction of their expectations and motives. People usually perceive things they
need or want, and block the perception of unwanted or unfavorable stimuli. The interpretation
of stimuli is mostly subjective and is depended on what the consumer expects to see in light of
its earlier experience, its motives and interests at the time of perception. The clarity and
originality of the stimuli itself plays an important role in that interpretation. The distortion of an
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objective interpretation is mainly due to the physical appearance, the first impression and
stereotypes
Consumer Decision Process
Normally decisions can be made using either intuition or the reasoning, a combination of both
approaches is often used. The consumer undergoes several steps in the process of decision
making. For very first step, the decision is made to solve any kind of problem. For this, search
for the information about the product is carried out, e.g. to find how the cooling can be
provided, through an air-conditioner or a cooler. This leads to the evaluation of alternatives and
a cost benefit-analysis which are largely made to judge which product and brand image will be
suitable, and can take care of the problem suitably and adequately. Thereafter, the purchase is
finally made and the product is used by the consumer. The constant use of the product leads to
the satisfaction or dissatisfaction of the consumer, which leads to repeat purchases, or else the
rejection of the product not go in favor. Hindsight might not be able to correct past mistakes,
but it will help or aid improved decision making in the future.
INDUSTRY PROFILE
Indian Tractor Industry developed in 1945 to 1960 because of the War surplus tractors and
bulldozers were imported for land reclamation and cultivation in mid-1940. In 1947 Central
and State Tractor Organizations were set up to develop and promote the supply and use of
tractors in agriculture and up to 1960, the demand was met entirely through imports. In 1951
there were 8,500 tractors in use, 20,000 in 1955 and 37,000 by 1960. Local production began
with five manufacturers in 1961 producing a total of 880 units per year. Eicher, Gujarat
Tractors, TAFE, Escorts, M&M are the major tractor manufacturers.
During 1965 this had increased to over 5000 units per year and the total in use had risen to
over 52000. In the year 1970 annual production had exceeded 20000 units with over 146000
units working in the country. From 1971 to 1980 six new manufacturers were well established
during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie
Tractors) did not survive. Escorts Ltd began local manufacture of Ford tractors in 1971 in
collaboration with Ford, UK. Others were HMT and PTL (SWARAJ) Total production
climbed steadily to 33000 in 1975 reaching 71000 by 1980.
Credit facilities for farmers continued to improve and the tractor market expanded rapidly with
the total in use passing the half million mark by 1980. 1981 to 1990 A further five (Auto
Tractors, Haryana Tractors United Auto Tractors, Asian Tractors, VST Tillers) manufacturers
began production during this period but only last one survived in the increasingly competitive
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market place. Annual production exceeded 75000 units by 1985 and reached 140000 in 1990
when the total in use was about 1.2 million.
Then India a net importer up to the mid-seventies became an exporter in the 80's mainly to
countries in Africa between 1991 to 1997.Since 1992 it has not been necessary to obtain an
industrial license for tractor manufacture in India. By 1997 annual production exceeded
255000 units and the national tractor park had passed the two million mark. India has now
emerged as one of the world leaders in wheeled tractor production. Saturation achieved in
Punjab with tractor density as high as 82 per 1000 ha against Indian average of 12.4, world
average of 17.4 and 32.1 in developed countries. Intense competition has led to rapid advances
in design and quality.
Brief introduction Tractors are an integral part of mechanization and have a crucial role to play
in increasing agricultural productivity. By advancement in manufacturing of tractors there's
possibility that could lead India to another green revolution.
In 1961 since tractor manufacturing in India started, the industry has grown at a phenomenal
pace in the last five decades to achieve a record production of over three lakh units per year.
In Farm Mechanization there are two major contributions, one higher productivity and greater
output. Tractors form an integral part of the farm mechanization and have a crucial role to play
in increasing agricultural productivity. Tractor is a highly versatile piece of machinery having
a multitude of uses, used in agriculture both for land reclamation and for carrying out various
crop cultivation and also employed for carrying out various operations connected with raising
the crops by attaching suitable implements and to provide the necessary energy for performing
various crop production operations involved in the production of agricultural crops specially in
India where the major occupation is Agriculture.
Tractors are capital intensive, labor displaying used as a mode of transport, in electricity
generation, in construction industry and for haulage operation. It has now become an integral
part of farm structure The problems of farmers has been erased by the application of tractor for
agricultural activities which swept India during the last twenty years
India's growth is unmatched even with countries of long history of Tractor manufacturing. The
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Indian Tractor Industry's spectacular achievement reflects the maturity and dynamism of
tractor manufacturers and the various policies adopted by the government to enable it to
effectively meet the demand. It is typical industry where both imported technology and
indigenous developed technology have developed towards meeting the overall national
requirements of the country. As per the global spotlight on tractors Manufacturers in terms of
volume seem to be swinging away from the USA, UK and Western and Eastern Europe
towards India where growth in the number of producers and the total volume in recent years
have been impressive. In India. Tractor Industry has played a vital role in the development
Today India's gross cropped area is next only to United States of America and Russia and
along with fragmented land holdings which has helped the country to become the largest
Tractor Market in the world. But it drops to eight position in terms of total Tractor in use in the
country when compared to international
Figures, only 3% of total tractors used all over the world It is to be noted that while the overall
automobile industry is facing recession the tractor industry is growing at 9%. About 20% of
world tractor production is carried out in our country only. The arable land in India is high as
12% of the total arable land in the world as given below:
Indian tractor market has to be viewed considering its position in the world with respect to key
parameters According to a study conducted by PHD Chamber of Commerce and Industry,
since purchase of tractor involves a big investment its demand is affected by the availability
and easiness of credit. A higher availability of credit will lead to a higher demand for tractors.
The tractors between the 31-40 horse power and 31-40 hp range dominate the market The
reason for medium horse power tractors being more popular are that the major tractor
demanding states like Punjab, Haryana and Uttar Pradesh have plenty of alluvial soil which
does not require deep tilling. Lately it is visualised that higher hp segment has the maximum
growth potential. Higher horse powered tractors will be the future requirement with the
government intention to encourage contract farming through the leasing in and leasing out of
farm lands. Market capitalization Tractor market in India is about Rs 6000 crore. On an
average Auto Tractors around 400000 tractors are produced and their sale is 260000. Company
Last Uttar Pradesh is the largest tractor market in our country.
Importance of the topic
It is important for marketers to study consumer behavior. It is important for them to know consumers
as individual or groups opt for, purchase, consumer or dispose products and services and how they
share their experience to satisfy their wants or needs This helps marketers to investigate and
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understand the way in which consumers behave so that they can position their products to specific
group of people or targeted individuals.
In regard to the marketer's view point, they assume that the basic purpose of marketing is to sell
goods and services to more people so that more profit could be made. This principle of making
profits is heavily applied by almost all marketers. Earlier, the marketers were successful in
accomplishing their purpose. However, today, as the consumers are more aware about the use of
product and other information of the product, it is not easy to sell or attract consumer to buy the
product. Thus, in order to sell a product or service or to convince consumers to buy product, the
marketers have to undergo through proper research to win them over.
It is important for marketers to consider the factors that affect the buying behavior of consumer
before entering the market. There are many factors that can influence the purchase decision of
consumers such as social influence, cultural influences, psychological factors and personal factors
Understanding these factors helps marketers to market the product on right time to the right
consumers. For example, if marketer is marketing a product which is Halal. The marketers first
consider all the factors that can influence consumers to buy Halal products, where they can target
specific areas where Halal food is more sold.
The marketers need to pay attention to cultural influences such as religion, values and norms of the
people or societies targeted and lifestyle of the targeted consumers. The marketers can propose
different strategies that convince the targeted consumers to buy marketed products or services.
Moreover, the marketers should be ascertain the factors that influence and affects purchase decision
of consumers If the marketers failed to understand the factors that might influence consumers, they
will fail to convince the consumer to purchase that product or will fail to meet the demands of
consumers. Some variables cannot be directly observed In such case, thorough understanding of
concepts and theories of consumer behavior helps marketers to predict the consumer's buying
behavior to a reasonable extent. Thus, understanding consumer's behavior to buy a product is
complex and requires marketers to continuously understand and apply various concepts and theories
for successful marketing.
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NEED FOR THE STUDY
The modern marketing management tries to solve the basic problems of consumers in the area of con
sumption. To survive in the market, a firm has to be constantly innovating and understand the
latest consumer needs and tastes. It will be extremely useful in exploiting marketing opportunities
and in meeting the challenges that the Indian market offers. It is important for the marketers to
understand the buyer behavior due to the following reasons. The growth of consumer protection
movement has created an urgent need to understand how consumers make their consumption and
buying decision. Consumers‘ tastes and preferences are ever changing. Study of consumer behavior
gives information regarding color, design,
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CHAPTER-2
REVIEW OF LITERATURE AND RESEARCH DESIGN
The review of literature provides the basic background for formulation of the objectives and
selection of appropriate analytical tools for the achievement of the same. A brief review of the
research work is presented in this chapter.
Research Design is a plan prepared to provide the necessary direction for the research
Dr. V. Sivakumar & Dr. S. Kaliyamoorthy,(2016), Consumers make purchase decisions in each
and every aspect of their life. Thus studying consumer behavior becomes more vital. All marketing
decisions & activities are based on assumptions about consumer behavior. The following objectives
were framed for the paper, to study the factors influencing the purchase of agricultural tractors and to
evaluate the most important factors like brand name, subsidy, horsepower, maintenance etc
considered for the purchase of agricultural tractors. The study was carried out in Sivaganga district of
Tamilnadu state. Descriptive research design has been used in this study. The researcher has used
both primary and secondary data for this research. The researcher has collected primary data from the
tractor owners who had bought their tractor for service to the dealer point during the study period in
Sivaganga district. Factor analysis was used to find out the most influencing factors considered by
the respondents while making the purchase decision of tractor. It is found as per the ranking given by
the respondents subsidy is ranked first and followed by sources consulted, horse power, after sales
service, price and brand name respectively are considered for purchase of tractors.
Chih-Cheng Chen , Chien-Wen Chen , and Yi-Chun Tung (2018), This study explored the
consumer behavior of intention to purchase green products based on a decision-making model that
integrates cognitive attributes, affective attributes, and behavioral intentions in Belt and Road
countries. The questionnaires were collected from consumers who previously purchased green
products; this study distributed the questionnaires at the appliance section of the department stores
and collected 227 valid responses. Environmental attitude, product attitude, social influence, and
perceived monetary value positively affected purchase intention; among these attributes, product
attitude most substantially affected purchase intention. Cognitive values (collective and individual)
significantly and positively affected environmental and product attitudes. Regarding individual
environmental literacy, objective knowledge did not significantly affect environmental attitude,
whereas subjective knowledge positively and significantly affected product attitude. In addition, both
environmental awareness and government role (extrinsic motivating attributes) significantly and
positively affected environmental and product attitudes for sustainable consumption. Media exposure
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also exerted a significant positive effect on environmental attitude for reducing, reusing and recycling
emissions.
Renu Verma,(2017), Agricultural growth depends primarily on two main factors - institutional
factors and technical factors. Institutional reforms or factors include land reform, tenancy reforms
and institutional credit reforms etc. Technical factors emphasize using agricultural inputs like high
yielding variety seeds, fertilizers and mechanization of agriculture. As far as the mechanization of
agriculture is concerned, tractor is one of the most important equipments used for farming. Major
manufacturers of the tractors in India are – Eicher , Escorts, Ford, Indo Farm, HMT, Mahindra &
Mahindrara, New Holland, Punjab Tractors , Sonalika, Tafe etc.
Murlidhar Ananda Lokhande Dr. M.A. Lokhande (2015) State that all of us consumers We need
a variety of goods and services right from our birth to death. Because of marketing, we can have
what we need. Marketing is a process through which both the buyer and seller give something (e.g.
goods, services, money etc.) to each other for maximum possible satisfaction. Nowadays Rural
Marketing is gaining importance. All the FMCG companies viz HLL, Pepsi, Coca cola, Britannia,
Colgate, Palmolive, Samsung etc. are concentrating their marketing activities in rural markets.
Because of socio-economic changes and huge market of more than 80 million households which will
increase to 111 million households by 2007(NCEAR Report). Rural consumer has become enough
aware about his needs and
upgradation of his standard of living. Information technology, Govt. Policies, Corporate strategies
and satellite communication are the factors responsible for development of Rural Marketing. Let us
look at the potential of rural markets. Rural consumption share in popular soaps is 48%, tooth pastes-
24%, talcum powder-17%, cold medicines-42%, Battries-52% etc. The market for packaged food
items of Rs. 20,000 crores, is growing at 2.5% per year.1 It is interesting to understand the Various
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aspects of the rural markets and consumption patterns.
T. P. Gopalaswamy (2016) , state that the the Rural Market environment, problems associated with
Rural Marketing, marketing of agricultural inputs, marketing systems for agricultural and allied
produce, marketing of rural artisan and craftsmen products, consumable and durable products and
strategies which can be adopted to realize the potential offered by the rural market. This approach is
relevant to all underdeveloped and developing countries like India, wherein rural areas play a
significant role in development. The author acknowledges that in the present downturn of the
economy, many companies producing consumables and durables are being sustained by rural demand
which has brought a sharp focus on rural markets.
Dharmraj , (2013) studied to identify the factors that affect consumers purchasing behavior
towards agriculture inputs like fertilizer, seeds, agrochemicals, oils and lubricants etc. Buying
behavior refers to the act of consumers obtaining and using goods and services and the decision
process that determines these acts. Buying decision is a set of many decisions which may
involve a product, brand, style, quality, dealer, time, price and mode of payment. Price is the
most important consideration at the time of purchasing agriculture inputs followed by
packaging and branding, fair billing and home delivery are considered relatively less important.
It can be concluded from the result that the respondents were mainly purchasing the agri-inputs
from the cooperative societies of their area. Major reasons for purchasing from cooperative
societies included fairness in billing and credit facilities given to the farmers. From the above
results, it can be stated that agri-inputs remain a price-sensitive market as factors like quality,
brand and packaging.
Farkade (2014) revealed that consumers buying motives becomes more important because they
make their buying decisions in each and every aspects of life. All promotional activities are
basically dependent on consumption pattern of the consumers which is directly or indirectly
affects the sales of the products and services. The framed objectives of the paper, to study
buying motives of agricultural equipment‘s and to evaluate the most important factors like
products brand, availability of products, financial subsidy, product capacity, after sales services
etc considered for the buying of any agricultural equipment‘s. All promotional activities are
basically dependent on consumption pattern of the consumers which is directly or indirectly
affects the sales of the products and services. Traditional consumer behavior shopping has its
own model, which the buying process starts from the problem recognition, information search,
evaluation of alternatives, then purchase, and at last post-purchase behavior. During these
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serials actions, the perspectives on consumer behavior could be divided into two parts: Macro
perspective and Micro perspective.
Sivakumar (2014) reported that consumers make purchase decisions in each and every aspect
of their life. Thus studying consumer behavior becomes more vital. All marketing decisions &
activities are based on assumptions about consumer behavior. To study the factors influencing
the purchase of agricultural tractors and to evaluate the most important factors like brand name,
subsidy, horsepower, maintenance etc considered for the purchase of agricultural tractors. The
study was carried out in Sivaganga district of Tamil Nadu state. The researcher has used both
primary and secondary data for his research. The researcher has collected primary data from the
tractor owners who had bought their tractor for service to the dealer point during the study
period in Sivaganga district. It is found as per the ranking given by the respondents subsidy is
ranked first and followed by sources consulted, horse power, after sales service, price and brand
name respectively are considered for purchase of tractors.
Rani (2014) studied the consumer buying behavior, which refers to the buying behavior of the
ultimate consumer. Many factors, specificities and characteristics influence the individual in
what he is and the consumer in his decision making process, shopping habits, purchasing
behavior, the brands he buys or the retailers he goes. A purchase decision is the result of each
and every one of these factors. An individual and a consumer is led by his culture, his
subculture, his social class, his membership groups, his family, his personality, his
psychological factors, etc. For a successful consumer oriented market service provider should
work as psychologist to procure consumers. By keeping in mind affecting factors things can be
made favorable and goal of consumer satisfaction can be achieved. Study of consumer buying
behavior is gate way to success in market.
Sivakumar and Kaliyamoorthy (2014) revealed that consumers make purchase decisions in
each and every aspect of their life. Thus studying consumer behavior becomes more vital. All
marketing decisions & activities are based on assumptions about consumer behavior. Consumer
behavior deals with the behavior that consumer displays in the consumption of goods right from
purchasing, using, evaluating & disposing them. In other way, it deals with what they buy, how
often they use it when they buy it, why they buy it where they buy and how they evaluate it
after purchase. Understanding the consumer purchase process is critical to a marketer so as to
design the marketing activities effectively. It is found as per the ranking given by the
respondents subsidy is ranked first and followed by sources consulted, horse power, after sales
service, price and brand name respectively are considered for purchase of tractors.
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Mooij (2000) discussed that the globalisation of markets and questions the assumption that economic
development would result in the converging needs of consumers and standardisation of marketing and
advertising. Also claims that consumers‟ values are strongly rooted in history and tradition and that with
the convergence of incomes, people have more freedom to express themselves and this is done through
their own specific value patterns as well as outlines Hofstede‟s five dimensions of national culture. Also
investigates consumer behaviour across different nationalities for a sample of products and services.
Loganathan (2011) reported that group pressure to conform is referred to in the consumer and social
psychology literature as social influence or interpersonal influence, which has an impact on consumer
product and brand preferences, on evaluations of product quality and also on buying decisions. Market
researchers have long strived to understand the effects of social influence on consumer attitudes and
behaviors. That is, how, why, and when do consumers conform to social norms. Researchers around the
world have tried to study how people behave in a particular situation and why do they behave like that?
The results however have not been commensurate with the efforts made, primarily due to the diversity
that people exhibit in their behavior. Thus, it is imperative for marketers to keep track of their customers
by undertaking researches on the various facets of consumer behavior on a regular basis.
Research gap
From review of the articles related to the buying behavior of John Deere tractor it is found that it is a
very important and popular area of study. It is also understood that very few studies have been done
in the area of factors influencing buying behavior of customers with specific reference to Samll cars.
This study is conducted to fill up this gap which has been identified.
STATEMENT OF THE PROBLEM
The study of Consumer Behavior for any product is of vital importance to marketers in shaping the
fortunes their organizations . It is significant for regulating consumption of goods and their by
maintaining economic stability. It is useful in developing ways for the more effective utilization
resources of marketing, It also helps in solving marketing management problems in a more effective
manner The fierce competition in the market among the large number of competitors has highlighted
the importance of understanding the buying behavior this has made it imperative for the marketers to
understand the factors influencing buying behavior of the consumer.
OBJECTIVES
HYPOTHESES
H0-There is no significant relationship between the age group of respondents and mode of purchase
H1- There is a significant relationship between the age group of respondents and mode of purchase
SAMPLING
SOURCES OF DATA
Primary Data: - Data will be collected by preparing a questionnaire and selecting the farmers
owning Samll cars and collecting the data required for the research.
Secondary Data: - Data will be collected from various sources such as, journals, magazines,
books, internet sources, articles, etc.
TOOLS FOR DATA COLLECTION: - The data will collected through structured questionnaires.
Page 19
CHAPTER -3
ORGANIZATION PROFILE
Deere & Company, founded in 1837, is a Fortune500 Company and is the world's
leading manufacturer of agricultural, construction and forestry equipment with
revenues of US$ 26. 64 billion, net income of US$ 1.52 billion in the year 2016. John
Deere spent US$ 1.39 billion on R&D in 2016.
India operations started in the year 1998, with manufacturing of tractors for sales in
India and exports. John Deere markets agricultural equipment and services through a
network of 19 area offices, 6 Regional offices and close to 900 dealers touch points
and 4 training centers spread across India and exports to more than 110 countries
worldwide. Headquartered at Pune, today, John Deere has eight facilities for
manufacturing and services in India.
Over the years John Deere has made significant progress in India by introducing
various products and programmer needed by the Indian farmers in various segment of
the Ag value chain including, seeding, harvesting and post harvesting equipment, and
has the following units established in the country.
John Deere has a long history of designing and manufacturing quality products around
Page 20
the world. John Deere India has Technology Centre at Pune, which provides leading
edge technology, product designs, and innovative ideas to support the company's
global business in technical areas, including Information Technology, Product
Engineering, Manufacturing Engineering, Embedded Systems and Technical
Authoring.
John Deere also bring unique partnership opportunities with the state government,
industries on a PPP mode to bring technology access to the farmers who otherwise are
unable to access this for modernizing their farming practices. They have seen this as a
tested business proposition to help small farmers improve their yield and income
levels.
Besides the above, John Deere is associated with the small and marginal farmers
through ―frugal innovation at farms‖ and ―community betterment initiatives‖ through
various CSR and volunteerism initiatives in India. John Deere strongly believes in
empowering women/ village youth engaged in farming and off-farming activities by
enhancing their skills thereby providing opportunities for a better quality life.
Our vision is to become the first choice in marketing the highest quality agricultural
equipment and providing superior product support.
Missio
Provide agricultural machinery, implements and irrigation equipment that
combines quality performance with value pricing thereby increasing quality and
productivity in the agricultural sector of the country
Provide reliable and efficient technical back-up services (training,
maintenance and spare part)
Page 21
Provide product information and technical advice to the farming community
Value:
GEP core values are consumer-oriented, honesty, quality and commitment. These
values guide everything we do and enable us to make a positive difference
Integrity
Integrity means telling the truth, keeping our word and treating others with fairness
and respect. It is demonstrated through honest relationships, decisions that consider the
balanced interests of stakeholders, and unquestioned commitment to ethical and legal
behavior. Integrity is one of our most cherished assets. It must not be compromised.
Distinctive Quality is what defines, characterizes, and supports our brand. It is what
differentiates us from the competition by contributing to a distinctive consumer
experience and delivering value to our stakeholders while also satisfying applicable
requirements. To deliver Distinctive Quality, John Deere employees must commit to
following and continuously improving rigorous processes and disciplined system
execution that align with our strategy and values.
Page 22
Commitment
Innovation
Page 23
6 John Deere 5041C 41HP Tractor RS.3,00,000
SWOT ANALYSIS
Strengths
1. Diverse product portfolio
2. An excellent Consumer Relationship Management (CRM) system
3. Strong Financial Position
4. A High Asset Leverage
5. Has an employee base exceeding 55,000 employees
6. It is a leader in agricultural equipment, construction and. forestry heavy equipment
Weaknesses
1. Limited global brand awareness and penetration compared to a few other industry leaders
2. The company is facing many challenges in introducing its IT enabled products
Opportunities
2. Its present current policy of expansion and the supporting changes in Asia, Europe, and
East have presented Many fresh market places for them to compete
Threats
New companies like New Holland are posing a threat for their business in USA and India
This Company is having many Labor and workforce issues
Economy, interest rates and Government Regulations
Page 24
PROFILE OF RESPONDENTS
The description of the demographic profile of the respondents considered for the study is given
below. The demographic factors namely Age, Gender, Education Qualification, Income and
ownership of land are considered here.
50
40
30 RESPONDENTS
20 PERCENTAGE
20 15
10
10
0
Less than 30 31-40 years 41-50 years More than 50
years years
INFERANCE:-
From the above table we infer that 55% of the respondents belongs to age group of ‗less than 30
years‘, followed by 20% belongs to age group of 31to40 followed by 15% of the respondents belongs
to the age of 41to50 and10% belong to the age group of more than 50 years.
Majority of the respondents (55%) belong to age group of less than 30 years.
Page 25
Table -3.2 Classification of respondents on the basis of gender
GENDER
120%
100%
98%
80%
60%
GENDER
40%
20%
0%
Male Female
2%
INFERENCE:-
From the above table we infer that 98% of the respondents are male followed by 2% of the
respondents are female.
Majority of the respondents (98%) are male.
Page 26
Table- 3.3 Classification of respondents on the basis of education
Education
60%
48%
50%
42%
40%
30%
8% Education
20%
10% 2%
0%
SSLC PUC Graduate Post-graduate
INFERENCE:-
From the above table we infer that 48% of the respondents education qualification is SSLC 42% of
the respondents education qualification is PUC 8% of the respondent education qualification is
graduation and 2% of the respondents qualification is post-graduation.
Majority of the respondents (48%) education qualification is SSLC.
Page 27
Table- 3.4 Classification of respondents on the basis of income
PERCENTAGE
50 47
45
40
35
30 10
25
20 23 PERCENTAGE
15 15
10
5
0
BELOW 5,00,000 5,00.001 TO 10,00,001 TO 15,00,001 AND
10,00.000 15,00,000 ABOVE
INFERENCE:-
From the above table we infer that 47% of the respondents belong to the income group of 500000
and above 23% of the respondents belongs to the income group of 5 to 10 lakh 15% of the
respondents belongs to the income group of 15 lakh followed by 10% of the respondents belongs to
the income group of more than 15 lakh and above.
Majority of the respondents (47%) belong to the income group of below 5,00,000.
Page 28
TABLE -3.5:- Classification of respondents on ownership of Land in acre
PERCENTAGE
60%
50%
50%
40% 35%
30%
PERCENTAGE
20%
10%
10% 5%
0%
Less than 5 6-10 acreage 11-20 acreage More than 20
acreage acreage
INFERENCE:
From the table we infer that 50% of the respondents have 6 to 10 acres of land 35% of the
respondents have 11 to 20 acres of land followed by 10% of the respondents who have less than 5
acre and 5% of the respondents have more than 20 acres of land.
Majority of the respondents (50%) have 6 to 10 acres of land.
Page 29
CHAPTER-4
DATA ANALYSIS
The data collected from the respondents has been analyzed. The analyzed data is
represented in the form of tables and graphs as shown below
RESPONDENTS
60%
50%
40%
30%
50% RESPONDENTS
20%
30%
10%
15%
5%
0%
Less than 5years 6-15 years 16-30 years More than 30
years
INFERENCE:-
From the following table and graph we infer that 30% of the respondents are carrying on farming for
less than 5 years followed by 50% of the respondents are carrying on farming 6 to 5 years and 10%
of the respondents are carrying farming from 16 to 30 years 5% of the respondents are carrying
coming for more than 30 years .
Majority of the respondents (50%) have an experience of 6 to 15 year in faming.
Page 30
TABLE -4.2:- Mode of purchase of tractors
PERCENTAGE
80%
70%
70%
60%
50%
40%
PERCENTAGE
30%
30%
20%
10%
0%
Own finance Borrowed finance
INFERENCE:
From the table we infer that 70% of the respondents purchase tractors on borrowed Finance followed
by 30% of the respondents Purchased Tractors on their own Finance.
Majority of the respondents (70%) purchase tractors on borrowed Finance.
Page 31
TABLE-4.3:- Brand of tractor respondents own
PERCENTAGE
50
45
45
40
35
30
25
20
20 PERCENTAGE
15
15
10
10
5 5
5
0
Eicher John Deere NEW Swaraj Massey Mahindra
HOLLAND Ferguson
INFERENCE:
From the above table we infer that 45% of the respondents own Samll cars followed by 15% of the
respondents own New Holland Tractors and 10% of the respondents own Eicher Tractors followed by
5% of the respondents own Swaraj Tractors and 20% of the respondent own Mahindra Tractors find
remaining 5% of the respondents own Massey Ferguson Tractors..
Majority of the respondents (45%) own Samll cars.
Page 32
TABLE-4.4:- Brands respondents consider before purchasing
PERCENTAGE
40 38
35
30
25
20
20
14 PERCENTAGE
15
10 10
10 8
0
Eicher John Deere NEW Swaraj Massey Mahindra
HOLLAND Ferguson
INFERENCE:
From the above table we infer that 38% of the respondents considered Samll cars before buying, 20%
of the respondent considered New Holland tractors before purchasing 14% of the responded
considered Swaraj Tractor before purchasing ,10% of the respondent considered Mahindra tractor
before purchasing 10% of the respondents considered Eicher tractor before purchasing and 8% of the
respondent considered Massey Ferguson tractors before purchasing.
Majority of the respondents (38%) considered John Deere before buying the tractors.
Page 33
TABLE-4.6:- Influence of Price factors on Purchase Decision of respondents
PERCENTAGE
70%
60% 58%
50%
40%
28% PERCENTAGE
30%
20%
14%
10%
0%
more important moderate least important
INFERENCE:
From the above table we infer that 58% of the respondents agreed that the price factor moderately
influence purchase of tractors 28% of the respondents considered price factor as most important
factor for purchasing the tractor and 14% of the respondents consider price factor as the least
important factor for purchasing Tractors.
Majority of the respondents (58%) agreed that price factor moderate influencing in purchase of
Tractors.
Page 34
TABLE - 4. 7:- Influence of Product features on Purchase Decision of respondents
PERCENTAGE
80%
70% 67%
60%
50%
40%
PERCENTAGE
28%
30%
20%
10% 5%
0%
more important moderate least important
INFERENCE:
From the above table we infer that 67% of the respondents agreed that product feature is most important
factor which influence in buying and 28% of the respondent moderately Agreed and 5% of the respondents list
agreed that product feature does not influence in purchase of Tractor.
Majority of the respondents (67%) agreed that Product features more important factor influencing in
purchase of Tractors.
Page 35
TABLE-4.8:- Influence of Maintenance cost on Purchase Decision of respondents
PERCENTAGE
90% 84%
80%
70%
60%
50%
40% PERCENTAGE
30%
20% 13%
10% 3%
0%
more important moderate least important
INFERENCE:
From the above table we infer that 84% of the respondents are of the opinion that maintenance cost is
more important, 13% moderately important and 3% least important Factor influencing in purchase of
tractors.
Majority of the respondents (84%) agreed that Maintenance cost more important factor influencing
in purchase of Tractors.
Page 36
TABLE-4.9:- Influence of Finance option factor Purchase Decision of respondents
PERCENTAGE
60% 56%
50%
40%
33%
30%
PERCENTAGE
20%
11%
10%
0%
more important moderate least important
INFERENCE:
From the above table we infer that 56% of the respondents responded that finance option is the most
important factor which affect purchase of tractor 33% moderately agreed that financial option is the
important factor and 11% of the respondents agreed that it is least important factor which effect in
purchase of tractors.
Majority of the respondents (56%) agreed that Finance option more important factor influencing in
purchase of Tractors.
Page 37
TABLE-4.10:- Influence of Advertising and promotion factors on Purchase Decision
of respondents
PERCENTAGE
70%
60% 58%
50%
40%
27% PERCENTAGE
30%
20% 15%
10%
0%
more important moderate least important
INFERENCE:
From the about table we infer the 50% of the respondents are of the opinion that advertisement and
promotional moderately influence purchase of tractors, 27% of the respondent said more important
and 15% said it is least important factor in influencing purchase of tractors.
Majority of the respondents (58%) agreed that Advertising and promotion factors moderately
influence purchase of Tractors.
Page 38
TABLE-4.11:- Effect of dealer schemes on purchase plan
PERCENTAGE
90
78
80
70
60
50
40 PERCENTAGE
30
22
20
10
0
Yes No
INFERENCE:
From the above table we infer that 78% of the respondents responded that various dealer schemes
will affect the purchase of tractors and 22% of the respondent responded that various dealer scheme
does not affect their purchase plan.
Majority of the respondents (78%) agreed that various dealer schemes influence their purchase plan.
Page 39
TABLE-4.12:- Source of awareness about John Deere brand of tractors
PERCENTAGE
50%
45% 43%
40%
35%
35%
30%
25%
20%
20% PERCENTAGE
15%
10%
5% 2%
0%
0%
News paper Radio Tv Family/ Company
Relatives representative
/ sales person
INFERENCE:
From the above table we infer that 43% of the respondents came to know about the Samll cars by TV followed
by 20% of the respondents who came to know about Samll cars from friends and relatives and remaining 35%
of the respondents came to know about Samll cars from company representatives and salespersons and 2% of
the respondents came to know about Samll cars from newspapers.
Majority of the respondents (43%) agreed that respondents came to know about Samll cars through TV
Page 40
TABLE-4.13:- Factors that have influenced John Deere to be a successful brand
PERCENTAGE
30%
25% 25%
25%
20% 18%
15% 12%
10%
10%
5% 5% PERCENTAGE
5%
0%
INFERENCE:
From the above table we infer that 25% of the respondents responded that the Engine feature made John
Deere a successful brand ,25% of the Respondents responded that Handling and operation is the main reason
to become a successful brand, 18% of the respondents responded that the power of John Deere made it
successful ,12% of the respondents responded that brand reputation made John Deere successful. 10% of the
respondents responded that efficiency made John Deere successful and 5% of the respondent responded that
mileage and maintenance cost made John Deere a successful brand.
Engine, Easy handling and operation and power were considered the major factors which have
resulted in John Deere to become a successful brand.
Page 41
TABLE-4.14:- Evaluation of Samll cars
RESPONDENTS PERCENTAGE
Respondents evaluate tractor
Very good 22 22%
Good 53 53%
Average 18 18%
Bad 7 7%
Very bad 0 0
PERCENTAGE
60%
53%
50%
40%
30%
PERCENTAGE
22%
20% 18%
10% 7%
0%
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that the 53% of the respondents evaluate John Deere tractor as good
22% of the respondent evaluate John Deere Tractor as very good and 18% of the respondents
evaluate John Deere Tractor as average and remaining 7% of the respondents responded that John
detector is bad .
Majority of the respondents (53%) evaluate John Deere tractor as good.
Page 42
TABLE-4.15:- Evaluation of Engine of Samll cars
RESPONDENTS PERCENTAGE
Respondents Rate on Engine
Very good 23% 23%
Good 55% 55%
Average 18 18%
Bad 3 3%
Very bad 1 1%
PERCENTAGE
60%
55%
50%
40%
30%
23% PERCENTAGE
20% 18%
10%
3%
1%
0%
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that 55% of the respondents have evaluated John Deere tractor engine
as good ,23% as very good, 18% as average 3% as bad and 1% as very bad.
Majority of the respondents( 55%) of the respondents have evaluated John Deere tractor engine as good .
Page 43
TABLE-4.16:- Evaluation of Efficiency of Samll cars
RESPONDENTS PERCENTAGE
Respondents Rate on Efficiency
Very good 13% 13%
Good 25% 25%
Average 48% 48%
Bad 12% 12%
Very bad 2% 2%
PERCENTAGE
60%
50% 48%
40%
30%
25% PERCENTAGE
20%
13% 12%
10%
2%
0%
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that 48% of the respondents evaluated the efficiency of John Deere
tractor has average 25% has good 13% has very good 12% has bad and 2% has very bad
Majority of the respondent s( 48%) of the respondents have evaluated John Deere tractor efficiency has
good .
Page 44
TABLE-4.17:- Evaluation of Mileage of Samll cars
RESPONDENTS PERCENTAGE
Respondents Rate on Mileage
Very good 12 12%
Good 20 20%
Average 34 34%
Bad 28 28%
Very bad 6 6%
PERCENTAGE
40
34
35
30 28
25
20
20
PERCENTAGE
15 12
10
6
5
0
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that 34% of the respondents evaluated the mileage of the Samll cars as
average and 28% as bad 20% as good 12% as very good and 6% as very bad.
Majority of the respondents ( 34%) of the respondents have evaluated John Deere tractor mileage as
average.
Page 45
TABLE-4.18:- Evaluation of life of the Samll cars
PERCENTAGE
45%
40%
40%
35%
30% 28%
25%
20% PERCENTAGE
17%
15%
10%
10%
5%
5%
0%
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that 40% of the respondents evaluated the life of the John Deere
Tractor as good 28% as average 17% as bad 10% as very bad 5% as very good .
Majority of the respondents (40%) of the respondents have evaluated John Deere tractor life as good.
Page 46
TABLE-4.19:- Evaluation of Power of the Samll cars
PERCENTAGE
50
44
45
40
35
29
30
25
PERCENTAGE
20
16
15
10 7
4
5
0
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that 44% of the respondents evaluated the power of the John Deere
Tractor as good 29% as very good 16% as average 7% as bad and 4% as very bad .
Majority of the respondents (44%) of the respondents have evaluated John Deere tractor power as
good.
Page 47
TABLE-4.20:- Evaluation of Handing and operation of the Samll cars
PERCENTAGE
45%
41%
40%
35%
29%
30%
25% 22%
20% PERCENTAGE
15%
10%
6%
5% 2%
0%
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that 41% of the respondents evaluate the handling and operation of the
Samll cars as good 29% as very good 22% as average 6% as bad and 2% has very bad.
Majority of the respondents ( 41%) of the respondents have evaluated John Deere tractor handling
and operation as good.
Page 48
TABLE-4.21:- Evaluation of Maintenance cost of the Samll cars
PERCENTAGE
35%
32%
30% 28%
25%
20%
17%
14% PERCENTAGE
15%
10% 9%
5%
0%
Very good Good Average Bad Very bad
INFERENCE:
From the above table we infer that 32% of the respondents evaluated the maintenance cost of the
John Deere Tractor as average 28% as bad 14% as very bad 17% as good and 9% as very good.
Majority of the respondents (32%) of the respondents have evaluated John Deere tractor
maintenance cost as average.
Page 49
TABLE-4.22:- Extent of distinct advantage in executive service outlets
PERCENTAGE
60%
50% 48%
40%
33%
30%
PERCENTAGE
20%
13%
10% 6%
0%
0%
A lot of Some A little Not much No advantage
advantage advantage advantage advantage at all
INFERENCE:
From the above table we infer that 48% of the respondents are of the opinion that the Exclusive
service outlet of John Deere are excellent 33% say Good 13% say average 6% say poor and None
say very poor.
Majority of the respondents ( 48%) of the respondents are of the opinion that the Exclusive service
outlet of John Deere are excellent.
Page 50
TABLE-4.23:- Respondents degree of satisfaction towards John Deere tractor
PERCENTAGE
50% 47%
45%
40%
35%
30%
24%
25%
20% 18% PERCENTAGE
15%
10% 7%
4%
5%
0%
Highly satisfied Satisfied Average Dissatisfied Highly
dissatisfied
INFERENCE:
From the above table we infer that 47% of the respondents are satisfied with John Deere tractor 18%
of the responders are highly satisfied 24% say agree 7% are disagree and 4% are highly disagree.
Majority of the respondents ( 47%) of the respondents are satisfied with John Deere tractor.
Page 51
TABLE-4.24:- Opinion of respondents regarding defects of Samll cars
PERCENTAGE
45% 41%
40%
35%
30%
25%
19%
20%
15% 13% 13%
10% 7% PERCENTAGE
5%
5% 2%
0%
INFERENCE:
From the above table we infer that 41% of the responders say high oil consumption is the main
defect 19% say maintenance cost 13% say it is hard to control 13% say poor service 5% say poor
Technology 7% say bad quality and 2% say bad looking.
Majority of the respondents ( 41%) of the respondents say high oil consumption is the main defect.
Page 52
TABLE-4.25:- Respondents satisfied with the dealers incentives schemes
PERCENTAGE
100%
90% 87%
80%
70%
60%
50%
PERCENTAGE
40%
30%
20% 13%
10%
0%
Yes no
INFERENCE:
From the above table we infer that 87% of the respondents are satisfied with dealers incentive
schemes and 13% of the respondent not satisfied with the dealer incentive schemes.
Majority of the respondents ( 87%) of the respondents are satisfied with dealers incentive schemes.
Page 53
TABLE-4.26:- Intention of responders to buy John Deere tractor in future
PERCENTAGE
40% 37%
35%
29%
30%
25%
19%
20%
PERCENTAGE
15% 13%
10%
5% 2%
0%
Definitely yes Yes May be No Definitely not
INFERENCE:
From the above table we infer that 37% of the respondents are of the opinion that they will buy John
Deere tractor in future 19% say definitely yes 29% same may be 13% say no and 2% say definitely
not.
Majority of the respondents (37%) of the respondents are of the opinion that they will buy John
Deere tractor in future.
Page 54
TABLE- 4. 27:- Recommendation of Samll cars to other farmers
PERCENTAGE
45%
39%
40%
35%
30%
25%
19%
20% 17%
14% PERCENTAGE
15% 11%
10%
5%
0%
Will definitely Will most Probably will Probably will Definitely will
recommended recommended recommended not not
recommended recommended
INFERENCE:
From the table we infer that 39% of the respondents probably will recommend Samll cars to other,
19% will most recommend 17% problem we will not recommend 14% definitely not recommend and
11% will definitely recommend Samll cars to other farmers.
Majority of the respondents (39%) of the respondents probably will recommend Samll cars to other
farmers .
Page 55
TABLE-4.28:- Factors Respondents feel can be improved in Samll cars
PERCENTAGE
30% 27%
25% 21%
20% 15%
15% 11%
9% 8%
10% 5% 4%
5%
PERCENTAGE
0%
INFERENCE:
From the above table we infer that 27% of the respondents felt maintenance should be improved
21% felt mileage should be improved 15% felt shocker flexibility should be improved 11% felt seats
should be improved 9% felt road safety assistant should be improved 8% felt Service time should be
improved and 5% of the respondent felt that cabin of John Deere Tractor should be improved.
Majority of the respondents (27%) of the respondents felt maintenance should be improved in John
Deere Tractor.
Page 56
Hypothesis test using Chi square test
HYPOTHESES
H0-There is no significant relationship between the age group of respondents and mode of purchase
H1- There is a significant relationship between the age group of respondents and mode of purchase
AGE GROUP
OWN FINANCE 5 7 4 14 30
BORROWED FINANCE 4 46 9 11 70
TOTAL 9 53 13 25 100
∑ = (O-E) 2 =34.58
E
Degree of freedom= (4-1) (2-1)
= 3×1
= 3
Level of significance =5%
Calculated value = 34.58
Table value = 7.815
Calculated value 34.58 > Table value 7.815 ,Hence Reject Ho
Conclusion :-Since calculated value (34.58) is greater than (7.815) null hypothesis is rejected and
alternate hypothesis is accepted. Therefore there is a significant relation between the age group of
respondents and mode of purchase
Page 57
CHAPTER-5
FINDINGS & SUGGESTIONS
FINDINGS
96% of the respondents who were conducted where male and 2% of the respondents were
female
30% of the respondents are carrying on farming for less than 5 years followed by 50% of the
respondents are carrying on farming 6 to 5 years and 10% of the respondents are carrying
farming from 16 to 30 years 5% of the respondents are carrying coming for more than 30 years
50% of the respondents have 6 to 10 acres of land 35% of the respondents have 11 to 20
acres of land followed by 10% of the respondents who have less than 5 acre and 5% of the
respondents have more than 20 acres of land
70% of the respondents purchase tractors on borrowed Finance followed by 30% of the
respondents Purchased Tractors on their own Finance
45% of the respondents own Samll cars followed by 15% of the respondents own New
Holland Tractors and 10% of the respondents own Eicher Tractors followed by 5% of the
respondents own Swaraj Tractors and 20% of the respondent own Mahindra Tractors find
remaining 5% of the respondents own Massey Ferguson Tractors
58% of the respondents agreed that the price factor moderately influence in purchase of
tractors 28% of the respondents considered price factor as most important factor for
purchasing the tractor and 14% of the respondents consider price factor as the least important
factor for purchasing Tractors
67% of the respondents agreed that product feature is most important factor which influence
in buying and 28% of the respondent moderately Agreed and 5% of the respondents list
agreed that product feature does not influence in purchase of Tractor
84% of the respondents are of the opinion that maintenance cost is more important 13%
moderately important and 3% list important Factor influencing in purchase of tractors
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56% of the respondents responded that finance option is the most important factor which affect
purchase of tractor 33% moderately agreed that financial option is the important factor and
11% of the respondents agreed that it is least important factor which effect in purchase of
tractors
50% of the respondents are of the opinion that advertisement and promotional moderately
influence purchase of tractors 27% of the respondent who said more important and 15% said it
is least important factor influencing purchase of tractors
78% of the respondents responded that various dealer schemes will affect the purchase of
tractors and 22% of the respondent responded that various dealer scheme does not affect their
purchase plan
Majority of the respondents (43%) agreed that respondents came to know about Samll cars
through TV
From the study we observe that Engine, Easy handling and operation and power were
considered the major factors which have resulted in John Deere to become a successful brand
The Majority of the respondents (53%) evaluate John Deere tractor as good
The Majority of the respondent s( 55%) of the respondents have evaluated John Deere tractor
engine has good
The Majority of the respondents ( 40%) of the respondents have evaluated John Deere tractor
life has good
The Majority of the respondents ( 44%) of the respondents have evaluated John Deere tractor
power has good
The Majority of the respondents ( 41%) of the respondents have evaluated John Deere tractor
handling and operation has good
The Majority of the respondents ( 32%) of the respondents have evaluated John Deere tractor
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maintenance cost has average
The Majority of the respondents ( 48%) of the respondents have evaluated John Deere tractor
efficiency has good
The Majority of the respondents ( 34%) of the respondents have evaluated John Deere tractor
mileage has average
The Majority of the respondents (48%) of the respondents are of the opinion that the Exclusive
service outlets of John Deere are excellent
Majority of the respondents (47%) of the respondents are satisfied with John Deere tractor
41% of the responders say high oil consumption is the main defect 19% say maintenance cost 13%
say it is hard to control 13% say poor service 5% say poor Technology 7% say bad quality and 2% say
bad looking
87% of the respondents are satisfied with dealers incentive schemes and 13% of the
respondent not satisfied with the dealer incentive schemes
37% of the respondents are of the opinion that they will buy John Deere tractor in future 19%
say definitely yes 29% same may be 13% say no and 2% say definitely not
39% of the respondents probably will recommend Samll cars to other, 19% will most
recommend 17% problem we will not recommend 14% definitely not recommend and 11%
will definitely recommend Samll cars to other farmers
27% of the respondents felt maintenance should be improved 21% felt mileage should be
improved 15% felt shocker flexibility should be improved 11% felt seats should be improved
9% felt road safety assistant should be improved 8% felt Service time should be improved and
5% of the respondent felt that cabin of John Deere Tractor should be improved
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SUGGESTIONS
The survey results indicate that that tractor is high on oil consumption, This defect has to be
effectively Resolved.
From the survey It was gathered that the maintenance cost and mileage of the John Deere
Tractor is not so good so the company should consider on these factor and the problem should
be solved
The findings understand the service of the John Deere Tractor is not up to the standards
expected by the respondents it is a crucial factor and hence should be given due importance
by Samll cars
John Deere Tractor customers are satisfied with the power of the tractor and life of the
tractor the company should maintain the same standards to satisfy the customer
Advertisement on television and company representatives have emerged as the two important
factors influencing Purchase Decision the company should give more importance to
strengthen their advertisement and train their company representatives
The financial option availability at the time of purchase as emerged an another important
factor influencing Purchase Decision hence the company should provide various financial
option to attract more buyers
The product feature of John Deere Tractor have been appreciated by the respondents hence
the company should maintain the quality by monitoring and continuous upgrading the
Product features of Samll cars
Dealers play a significant role in influencing of Purchase Decision and dealers promotion tool
has to be strengthened to ensure that the product are adequately pushed in the market
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CONCLUSION
The main objective of the study is to examine the factors that affect buying behavior of the consumer
with specific reference to Samll cars. From the study it is observed that the factor which the
consumer have identified as the areas of concern are mileage maintenance handling and operation
and high oil consumption it is suggested that the company should give due attention to this factors to
enhance their sales. There by increase their profit and maximize their market share. The main factor
which affect the buying behavior of the consumers is advertisement, financial option , product
features, price feature, of the John Deere tractor we suggest that the company should give due
importance on this features to increase their sales in the market and sustain in the market.
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BIBLIOGRAPHY
BOOKS
Reference :-
Vishwajeet Prasad, consumer behavior Genext publishing House, 2010.
Durairaj maheswaran & Thomas puliyel ,Understanding Indian consumers Oxford public house,
2017.
JOURNALS
Chih-cheng chen , chien-wen chen , and yi-chun tung”(2018), Exploring the consumer behavior of
intention to purchase green products in belt and road countries: Sustainability (ISSN 2071-1050;
CODEN: SUSTDE) : 28 February 2018;
Dr. Devaraj badugu, shanti swaroop chauhan” (2017), Understanding the indian rural market
potential international journal of, multidisciplinary research International Journal of
Multidisciplinary Research vol.1 issue 6, october 2011, issn 2231 5780
Loganathan, S. 2011. Consumers' buying behaviour towards branded multi utility vehicles
(MUVs) and sports utility vehicles (SUVs). Thesis, Bharathiar University, Tamilnadu, India.
Mooij, M.D. 2000. The future is predictable for international marketers: Converging income
lead to diverging consumer behavior. International Marketing Review.17(2): 103-113.
Murat cankurt, bülent miran” (2016), Tractor brand preferences of farmers: an analytic hierarchy
process approach tarim makinalari bilimi dergisi (journal of agricultural machinery science) 2016,6(1),
13 – 17
Murlidhar ananda lokhande dr. M.a. Lokhande” (2015), Rural marketing- a study of consumer
behaviour december 2015 Indian journal of marketing with 2,882 reads
Page 63
Renu verma”(2017), a study on factors influencing buying behavior of tractor consumers in
banswara district of rajasthan research centre for social sciences,mumbai, india, vol. 4(3), pages 234-
245, september (2017)
Shiv kumar v. And kaliyamoorthy s”(2014), Factors influencing the purchase of agricultural
tractors: an empirical study. Iosr journal of business and management (iosr-jbm).16(01):42-46.
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WEBSITES:-
https://www.deere.co.in/en/index.html
https://www.deere.co.in/en/
https://www1.udel.edu/alex/chapt6.html
http://www.indianmirror.com/indian-industries/tractor.html
https://www.slideshare.net/
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ANNEXURE
GENERAL INFORMATION:-
3. Gender…………………..
Male
Female
1. Education
SSLC
PUC
Graduate Post
graduate
3. Annual Income
4. Land acreage
Less than 5acre
6-10 acre
11-20 acre
More than 20 acre
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5. Mode of purchase of tractors
Own finance Borrowed
finance
OBJECTIVE 2 To study the factors which influence the purchase of the tractors
SN BRAND
1 Eicher
2 Mahindra
3 Swaraj
4 Massey Ferguson
5 John Deere
6 NEW HOLLAND
7 Other
SN BRAND
1 Eicher
2 Mahindra
3 Swaraj
4 Massey Ferguson
5 John Deere
6 NEW HOLLAND
8. Which of the following factors influence you in Purchase Decision please read the
following factors according to there important
SN VARIABLE I II III
1 Price
2 Product features
3 Finance option
4 Maintenance cost
5 Advertising and promotion
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9. Do the various scheme promotional activities affect your purchase plan
YES
NO
10. How Did you come to know about John Deere brand of tractors
i. News paper
ii. Radio
iii. Tv
iv. Family/ Relatives
v. Friends
vi. Company representative / sales person
vii. Any other please specify
FEATURES
Engine
Efficiency
Mileage
Power
Handling & operation
Maintenance cost
Brand reputation
OBJECTIVE 3.To study the reason which influence the consumer to purchase john Deere tractor‘s
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13. Please rate the Samll cars based on the following parameters
Other factors
14. To what extent do you see distinct advantage of your tractor repair from……………
15. What do you think of the degree of satisfaction of your John Deere tractor
Very good
Satisfied
Average
Unsatisfied
Very unsatisfied
16. What are the defects to John Deere tractor according to your point of view
Bad looking
Hard to control
Bad quality
High oil consumption
Maintenance cost
Poor technology
Poor service
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16 . Are you satisfied with the dealers incentives schemes provided to you
YES
NO
17. To what extent is your possibility to buy a John Deere when you want to buy in
future
Definitely yes
Yes
May be
No
Definitely no
18. How likely are you to recommended your tractor company or brand to other
farmers and associates who may be planning to buy a tractor
Will definitely Will most Probably will Probably will Definitely will
recommend Probably recommend not not
recommend recommend recommend
5 4 3 2 1
20 In your opinion what are the factors you feel can be improved in Samll cars
SN VARIABLE RANKING
1 Improved cabin
2 Road side assistance
3 Safety measures
4 Shocker flexibility
5 Seat
6 Mileage
7 Maintenance
8 Service time
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