Professional Documents
Culture Documents
HISTORY OF CARS
With the invention of the wheel in 4000 BC, man‘s journey on the
road of mechanized trans port had begun. Since then he continually sought
to devise an automated, labor saving machine to replace the horse.
In the early 1760‘s after several attempts, French Captain, Nicholas J.
Cugnot built the first steam driven tractor. In 1885, Karl Benz & G. Damlier
produced the first vehicle powered by internal combustion engine. Then the
petrol engine was introduced.
Behavior occurs either for the individual, or in the context of a group (e.g.,
friends influence what kinds of clothes a person wears) or an organization
(people on the job make decisions as to which products the firm should
use).
Consumer behavior involves the use and disposal of products as well as
the study of how they are purchased. Product use is often of great interest
to the marketer, because this may influence how a product is best
positioned or how we can encourage increased consumption. Since many
environmental problems result from product disposal (e.g., motor oil being
sent into sewage systems to save the recycling fee, or garbage piling up at
landfills) this is also an area of interest.
Consumer behavior involves services and ideas as well as tangible
products.
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of easy credit, may have serious repercussions for the national health and
economy.
The video clip with Paco Underhill that we saw in class demonstrated the
application of observation research to the retail setting. By understanding the
phenomena such as the tendency toward a right turn, the location of merchandise
can be observed. It is also possible to identify problem areas where customers
may be overly vulnerable to the ―but brush, • • or overly close encounter with
others. This method can be used to identify problems that the customer
experiences, such as difficulty finding a product, a mirror, a changing room, or a
store employee for help.
Online search data and page visit logs provides valuable ground for analysis. It is
possible to see how frequently various terms are used by those who use a firm‘s
web site search feature or to see the route taken by most consumers to get to the
page with the information they ultimately want. If consumers use a certain term
frequently that is not used by the firm in its product descriptions, the need to
include this term in online content can be seen in search logs. If consumers take a
long, ―torturous • • route to information frequently accessed, it may be
appropriate to redesign the menu structure and/or insert hyperlinks in
―intermediate • • pages that are found in many users • • routes.
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The consumer‘s shopping record is usually combined with demographic
information (e.g., income, educational level of adults in the household,
occupations of adults, ages of children, and whether the family owns and rents)
and the family‘s television watching habits. (Electronic equipment run by firms
such as A. C. Nielsen will actually recognize the face of each family member
when he or she sits down to watch).
What brand in a given product category was bought during the last, or a
series of past, purchase occasions;
Whether, and if so, how many times a consumer has seen an ad for the
brand in question or a competing one;
Whether the target brand (and/or a competing one) is on sale during the
store visit;
Whether any brand had preferential display space;
The impact of income and/or family size on purchase patterns; and
Whether a coupon was used for the purchase and, if so, its value.
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A ―split cable • • technology allows the researchers to randomly select half the
panel members in a given community to receive one advertising treatment and the
other half another. The selection is truly random since each household, as
opposed to neighborhood, is selected to get one treatment or the other. Thus,
observed differences should, allowing for sampling error, the be result of
advertising exposure since there are no other systematic differences between
groups.
Scanner data is, at the present time, only available for certain grocery item
product categories—e.g., food items, beverages, cleaning items, laundry
detergent, paper towels, and toilet paper. It is not available for most non-
grocery product items. Scanner data analysis is most useful for frequently
purchased items (e.g., drinks, food items, snacks, and toilet paper) since a series of
purchases in the same product category yield more information with greater
precision than would a record of one purchase at one point in time. Even if
scanner data were available for electronic products such as printers, computers,
and MP3 players, for example, these products would be purchased quite
infrequently. A single purchase, then, would not be as effective in effectively
distinguishing the effects of different factors—e.g., advertising, shelf space,
pricing of the product and competitors, and availability of a coupon—since we
have at most one purchase instance during a long period of time during which
several of these factors would apply at the same time. In the case of items that are
purchased frequently, the consumer has the opportunity to buy a product, buy a
competing product, or buy nothing at all depending on the status of the brand of
interest and competing brands. In the case of the purchase of an MP3 player, in
contrast, there may be promotions associated with several brands going on at the
same time, and each may advertise. It may also be that the purchase was
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motivated by the breakdown of an existing product or dissatisfaction or a desire to
add more capabilities.
By attaching a tiny camera to plain eye glasses worn by the subject while
watching an advertisement, it is possible to determine where on screen or other ad
display the subject focuses at any one time. If the focus remains fixed throughout
an ad sequence where the interesting and active part area changes, we can track
whether the respondent is following the sequence intended. If he or she is not, he
or she is likely either not to be paying as much attention as desired or to be
confused by an overly complex sequence. In situations where the subject‘s eyes
do move, we can assess whether this movement is going in the intended direction.
Mind-reading would clearly not be ethical and is, at the present time, not possible
in any event. However, it is possible to measure brain waves by attaching
electrodes. These readings will not reveal what the subject actually thinks, but it
is possible to distinguish between beta waves—indicating active thought and
analysis—and alpha waves, indicating lower levels of attention.
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By watching approval during various phases of a speech by the former President,
it was found that viewers tended to respond negatively when he referred to
―speaking truthfully • • but favorably when the President referred to the issues
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research should normally be useful in making specific decisions (what size should
the product be? Should the product be launched? Should we charge $1.75 or
$2.25?)
Secondly, marketing research can be, and often is, abused. Managers frequently
have their own ―agendas • • (e.g., they either would like a product to be
launched or would prefer that it not be launched so that the firm will have more
resources left over to tackle their favorite products). Often, a way to get your way
is to demonstrate through ―objective • • research that your opinions make
economic sense. One example of misleading research, which was reported
nationwide in the media, involved the case of ―The Pentagon Declares War on
Rush Limbaugh.‖� The Pentagon, within a year of the election of Democrat Bill
Clinton, reported that only 4.2% of soldiers listening to the Armed Forces
Network wanted to hear Rush Limbaugh. However, although this finding was
reported without question in the media, it was later found that the conclusion was
based on the question ―What single thing can we do to improve
NOTE: This topic is also discussed in the International Marketing section of this
site.
Culture is part of the external influences that impact the consumer. That is, culture
represents influences that are imposed on the consumer by other individuals.
The definition of culture offered in one textbook is ―That complex whole which
includes knowledge, belief, art, morals, custom, and any other capabilities and
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Knowledge and beliefs are important parts. In the U.S., we know and
believe that a person who is skilled and works hard will get ahead. In other
countries, it may be believed that differences in outcome result more from
luck. ―Chunking, • • the name for China in Chinese, literally means
―The Middle Kingdom.‖� The belief among ancient Chinese that they
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depending on how quickly they accept change. For example, American culture
has changed a great deal since the 1950s, while the culture of Saudi Arabia has
changed much less.
Dealing with culture. Culture is a problematic issue for many marketers since it
is inherently nebulous and often difficult to understand. One may violate the
cultural norms of another country without being informed of this, and people from
different cultures may feel uncomfortable in each other‘s presence without
knowing exactly why (for example, two speakers may unconsciously continue to
attempt to adjust to reach an incompatible preferred interpersonal distance).
Warning about stereotyping. When observing a culture, one must be careful not
to over-generalize about traits that one sees. Research in social psychology has
suggested a strong tendency for people to perceive an ―outgroup • • as more
homogenous than an ―ingroup, • • even when they knew what members had
been assigned to each group purely by chance. When there is often a ―grain of
truth • • to some of the perceived differences, the temptation to over-generalize
is often strong. Note that there are often significant individual differences within
cultures.
count.‖� Many cultures observe significantly greater levels of formality than that
typical in the U.S., and Japanese negotiator tend to observe long silent pauses as a
speaker‘s point is considered.
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Hofstede‘s research demonstrates a wide range between the most individualistic
and collectivistic countries, for example—some fall in the middle.
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Although Hofstede‘s original work did not address this, a fifth dimension of long
term vs. short term orientation has been proposed. In the U.S., managers like to
see quick results, while Japanese managers are known for take a long term view,
often accepting long periods before profitability is obtained.
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INDUSTRY DEVELOPMENT
The first motor car on the Indian street was seen in 1898. Mumbai
had its 1st taxicabs in the early 1900. Then for the next fifty years, car was
imported to satisfy domestic demand. In 1946, Premier Automobile Ltd.
(PAL) manufactured the 1st car in country. HM started as a manufacturer of
auto components & then started manufacturing cars in 1949.
The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd.,
the joint venture with Suzuki Motors Ltd. Of Japan. MUL introduced
Maruti 800 in 1983 providing a complete facelift to the Indian car
industry. The car was launched as a ―People‘s Car‖
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Post-purchase behaviour is analyzed after selling goods & services. In
this the marketer takes the views of the consumers for a particular good or
service. We can also call it as feedback from consumers to make goods and
services more effective & maintaining good & long term relations b/w
consumers & marketer. In present scenario customer is the king & marketer
can‘t neglect them.
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NEGATIVE POST-PURCHASE BEHAVIOUR
Negative Word-of-Mouth.
Rumor.
Complaint Behavior.
Marketer should also monitor how the buyer use and dispose the product. If
consumers find a new use for the product and that should interest the
marketer because this use can be advertised. If consumers are not using the
product it means product is not satisfying.
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PURCHASE PROCESS
Need Recognition
Pre-purchase
Activity Information Search
Evaluation of Alternatives
Post-purchase Post-purchase
Behavior
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SIGNIFICANCE OF THE STUDY
Their main motive is to attract the customers. To attract the customers they
providing extra benefits to the customers i.e. finance , free insurance, free
tours, gifts etc. Indian car industry is trying to bring the dream machine for
all type of customers.
Today there is boom in car industry. Many of the car companies are
launching new models within every six month.
Maruti is market leader with his 10 models & big chain of service
station &
dealers.
Tata having 4 models & passenger cars,
Ford has 4 models,
GM has 3 models,
Opel has 4 models,
Fiat has 2 models,
Hyundai has 6 models,
Toyota has 3 models in the market.
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REVIEW OF THE EXISTING LITERATURE
Now if these defining criteria are closely observed, it is evident that analyzing
consumer‘s decision making process is the foundation of entire notion of
consumer behaviour.
There are four different views related to consumer decision making process and
behaviour (Schiffman & Kanuk, 2004). It is argued that first of them is ‗economic
view‘ that consumers are primarily facing imperfect competition and they are
always expected to make rational decision on the basis of assumptions that they
are aware of all product alternatives, they can rank benefits and limitation of each
alternative and are able to identify one best alternative. Second ‗Passive View‘ is
absolutely opposite to economic view and suggests that consumers are irrational
and impulsive as they are submissive to self-centered interests of marketers and
got influenced by marketing tools. Similarly third, ‗ Emotional View‘ is related to
perceive consumer‘s decision making based on their emotional association or
feeling about some products and services. For instance, a person loosing red
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colour specific pen neither go for rational decision by evaluating alternatives (
economic view) nor will the person get influenced by marketers ( passive view).
Rather the person will try to purchase any pen closely resembled with his
favourite possession. Fourth and arguably most acknowledged view is ‗Cognitive
View‘ where consumers are considered as ―thinking problem solver‘ which are
receptive as well as actively searching for the products and services that can fulfil
their need. Consumer‘s behaviour under this view is based on information seeking
and processing attributes usually directed by a goal. For instance, buying a tooth
paste from shop can have a certain goal of choosing product that can taste good
(Papers4you.com, 2006).
Despite of critiques for each viewpoint, it can be considered a valid argument, that
all four types of decision making behaviour exist and provide marketer guidelines
to analyze consumer accordingly.
The discussion may be concluded on the notion that no matter which view point
out of four discussed above is common; it is an imperative fact that marketers
have to realize existence of all of them to analyze consumer behaviour effectively.
It has been recognised that eco-efficiency improvements at production and product
design level can be significantly reduced or totally negated by rebound effect from
increased consumption levels. In line with this problem factor 10 to 20 material
and energy efficiency improvements have been suggested (Factor 10 Club 1994;
Schmidt-Bleek 1996; Bolund, Johansson et al. 1998; Ryan 1998). The
improvements, however, if not carefully done, may still lead to rebound effects
through changes in resource prices.
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As a potential solution to the factor 10/20 vision, system level improvements have
to be made, contrary to redesigning individual products or processes.
(Weterings and Opschoor 1992; Vergragt and Jansen 1993; von Weizsäcker,
Lovins et al. 1997; Ryan 1998; Manzini 1999; Brezet, Bijma et al. 2001;
Ehrenfeld and Brezet 2001).
The product service system (PSS) concept has been suggested as a way to
contribute to this system level improvement (Goedkoop, van Halen et al. 1999;
Mont 2000). Here the environmental impacts of products and associated services
could be addressed already at the product and service design stage. Special focus
should be given to the use phase by providing alternative system solutions to
owning products.
A number of examples in the business-to-business (B2B) area exist that confirm
the potential of PSS for reducing life cycle environmental impact. It is, however,
increasingly evident that business examples are difficult to directly apply to the
private consumer market. Private consumers, contrary to businesses, prefer
product ownership to service substitutes (Schrader 1996; Littig 1998). Even if
accepted, the environmental impacts of ―servicised products‖ offers depend to a
large extent on consumer behaviour.
To address this problem, either behavioural or service system design changes are
needed. Changing human behaviour and existing lifestyles contributes to the vision
of sustainable development, but at the same time, it is an extremely difficult and
time-consuming process. A potentially easier way is changing the design of the
product-service system to reduce behavioural pitfalls. In order to change system
design, it is necessary to understand how consumer acceptance of more
sustainable solutions is formed, influenced or changed, what are the influencing
factors and what are the leverage points for best results with lowest costs.
Understanding consumer perceptions and behaviour in this context is crucial.
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studies consumer behaviour from different theoretical premises: ―for economists,
consumption is used to produce utility; for sociologists, it is a means of
stratification; for anthropologists – a matter of ritual and symbol;
for psychologists – the means to satisfy or express physiological and emotional
needs; and for business, it is a way of making money‖(Fine 1997).
For more than a decade now, a range of studies that address environmentally sound
consumer behaviour, e.g. car use, waste sorting, minimisation and recycling
practices, have been conducted. However, few studies evaluated consumer
acceptance of the PSS concept – a consumption based on non-ownership of
physical products, see, for example, studies on car sharing schemes (Schrader
1999; Meijkamp 2000), ski rental and washing services (Hirschl, Konrad et al.
2001).
One reason explaining the lack of studies in the area could be that, there are still
not many PSS schemes in place to serve as test grounds. Another reason could be
uniformity of research focus. Most of consumer research focused on adopter
categories, habits, attitudes and intentions, rather than on actually measuring the
satisfaction level with the service. The reason is probably that PSS ideas have been
promoted by researchers from the environmental management, marketing, design,
and engineering fields, and to a lesser extent by sociologists, who hold the banner
of research in customer satisfaction.
CONSUMER SATISFACTION PROCESS
The paramount goal of marketing is to understand the consumer and to influence
buying behaviour. One of the main perspectives of the consumer behaviour
research analyses buying behaviour from the so-called ―information processing
perspective" (Holbrook and Hirschman 1982). According to the model, customer
decision-making process comprises a need-satisfying behaviour and a wide range
of motivating and influencing factors. The process can be depicted in the
following steps (Engel, Blackwell et al. 1995):
Need recognition – realisation of the difference between desired situation and the
current situation that serves as a trigger for the entire consumption process.
Search fo r information - search for data relevant for the purchasing decision, both
from internal sources (one's memory) and/or external sources.
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Pre-purchase alternative evaluation - assessment of available choices that
can fulfil therealised need by evaluating benefits they may deliver and
reduction of the number ofoptions to the one (or several) preferred.
Purchase - acquirement of the chosen option of product or service.
Consumption - utilisation of the procured option.
Post-purchase alternative re-evaluation - assessment of whether or not and
to what degree the consumption of the alternative produced satisfaction.
Divestment - disposal of the unconsumed product or its remnants.
Besides the information processing perspective, marketing analyses consumer
behaviour by employing a psychologically grounded concept of attitudes
(Balderjahn 1988; Ronis, Yates et al. 1989; Luzar and Cosse 1998). It is consumer
attitudes that are usually named as the major factor in shaping consumer behaviour
and a wealth of studies is available on the topic of how attitudes can predict
behaviour.
INTER -DISCIPLINARITY OF CONSUMER RESEARCH
Different research disciplines diverge in their presuppositions about human nature,
factors influencing consumer behaviour, market response, etc. Therefore, they
naturally employ different research approaches. However, despite that seemingly
insurmountable abyss between disciplines, we see that many research topics and
methods overlap, and that there is
no clear-cut line between different domains of consumer research. Many
consumption-related issues are being increasingly addressed from interdisciplinary
or multidisciplinary perspectives.
Many interdisciplinary concepts and factors are of interest for research on
consumer satisfaction with eco-efficient services and PSS. Contrary to the
suggestions from many traditional neoclassical theories, consumption patterns are
very flexible and prone to various influences. Today consumer behaviour is
increasingly dynamic as the choice of alternatives increases with the growth of
global markets. The complexity of the decision- making process and a large
number of influencing factors suggest that changing consumer behaviour towards
more sustainable consumption is a challenging process, which requires
coordination at individual and societal level.
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The area of PSS and eco-efficient services is still developing. Further efforts are
required in order to understand relations between the functional and emotional
needs of customers.
DIFFERENT LEVELS OF COMPLEXITY
When evaluating satisfaction with a product, customers initially assess tangible
features of the product. In the service context, the features, though observable, are
considerably less tangible and are thus more difficult to assess. A product service
system comprises four components (products, services, infrastructures, and
networks), rendering the evaluation process of consumer satisfaction even more
complex (Mont 2000). Here the part of the system, with which the customer comes
into direct contact, is larger than in the case of a pure product or service, which has
implications for customer evaluation process. In the case of PSS or eco-services,
customers are exposed to both dimensions: product and service. In addition, due to
closer relations with the service provider, customers can even become exposed to
infrastructure and networks that support PSS delivery. Therefore, in the PSS
context, an evaluation of all four PSS components becomes relevant:
Product evaluation is conducted by assessment of products or
technologies.
Person-based or other types of services (technical, information and
knowledge services) that are included into PSS may be evaluated.
Infrastructure can be evaluated when the customer comes into contact with
enabling supporting technology, or by evaluation of ambient conditions,
spatial layout or by evaluating signs and artefacts of the PSS.
Networks, are not usually exposed to the customer, but in some cases may
be evaluated when they come into contact with customers.
RESEARCH FRAMEWORKS AND METHODS
A great variety of methods and frameworks for understanding and evaluating
consumer acceptance and satisfaction are used in different disciplines. The study
has discussed the following frameworks: Kano model of customer satisfaction, the
Innovation diffusion of Rogers, the service quality model of Grönsroos, and
SERVQUAL model by Parasuraman.
The study has also surveyed a range of tools used for evaluating and measuring
consumer satisfaction. These included surveys, in-depth interviews, focus group
interviews, observations, mystery shopping, and psychographic portrait of
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customers. A number of drawbacks and benefits pertaining to the tools have been
pointed out and discussed. Both the research models and the tools, while diverse to
a different extent, were found to be useful for application in the PSS research area.
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The study of consumption is increasingly enriched by a growing number of
contributions. The purpose of this section is to provide a selective sampling of
literature that deals with issues or methods, which might be applicable for
studying the field of product-service systems. It is far from an overview of how
consumption has been studied by different disciplines. Instead, the intention is to
select useful sources and draw methodological and theoretical lessons, rather than
to provide a thorough literature analysis.
This section provides a selective presentation of how consumption and consumer
behaviour is studied and explained by economics, business and marketing studies,
social, and psychological research. The disciplines differ in their presuppositions
about the human nature, influencing factors of consumer behaviour, and market
response. They also employ different research methods, some of which will be
described in the following sections. Despite that seemingly insurmountable abyss
between disciplines, we will see that many research topics overlap, and that
obviously there is no clear-cut line between different domains of consumer
research. In addition, a lot of consumption related issues have been addressed
from an interdisciplinary or multidisciplinary perspective. As Ackerman puts it, ―a
new interdisciplinary area of research on consumption has emerged in the last 10-
15 years, drawing contributions and participants from sociology, anthropology,
history, philosophy, literature, and marketing - even, on occasion, from
economics‖ (Ackerman 1997).
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decision. The ultimate goal of this decision-making process is satisfaction of
consumer needs. This section helps the reader understand different stages in the
consumer decision process and distinguish between the notions of customer
acceptance and customer satisfaction. It provides background to the following
sections, which analyse consumption and consumer behaviour from the point of
view of different disciplines.
Business management and marketing are concerned with ways of satisfying and
retaining customers for the purpose of generating profits, improving companies‘
competitiveness and securing market share. Some of the major themes in the
business management domain include studies of customer relationship marketing,
which analyses how customer satisfaction
relates to competitiveness and profits, methods for measuring customer
satisfaction (Thomson 1995), and approaches that can help transfer customer
satisfaction data into strategies for improvement of customer relations and their
retention (Reidenbach and McClung 1998), (Johnson and Gustafsson 2000),
(Schellhase, Hardock et al. 2000).
The paramount goal of the marketing domain is to understand the consumer and to
influence buying behaviour. One of the main perspectives of the consumer
behaviour research analyses buying behaviour from the so-called ―information
processing perspective‖ (Holbrook and Hirschman 1982). The basic concept is
derived from the model of the consumer‘s decision-making process, suggested by
Dewey (1910) and adapted by Simon (1955), that includes the following major
steps: problem recognition, search, alternative evaluation, choice and outcomes
(Dewey 1910), (Simon 1955).
1. Need recognition – realisation of the difference between desired situation and
the current situation that serves as a trigger for the entire consumption
process.This process depends on the difference between the desired and the
current state of affairs. Several factors can influence this process: changed
circumstances, time, new product purchase, and consumption that trigger the need
for other products. Once a certain threshold of this discrepancy is exceeded, the
need is recognised. However, to trigger the action, the need should be considered
as important and the need satisfaction should be within a person‘s resources (e.g.
time, money, etc.).
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2. Search for information - search for data relevant for the decision, both
from internal sources (one‘s memory) and/or external sources.
The search for information usually begins with the internal search for any sort of
information, memory, or experience with a product or service. The outcomes of
this stage depend on the actual existence of internal knowledge about the subject
and on the ability of the individual to retrieve this information. If the internal
search does not produce expected results, the individual turns toward external
information sources. The external searches differ in scale (how comprehensive the
search for information is), in the direction (advertising, brands, in-store
information, information received from sales people, or social contacts) and in the
sequence of the research (brand or attribute processing). The major determinants
that influence a search are product determinants, situational determinants, retail,
and consumer determinants. The consumer determinants comprise knowledge,
involvement, attitudes, beliefs, and demographic features.
The extent of the information search depends on the degree of importance of the
purchasing decision to the customer. For example, people seek information more
actively than in cases of more expensive products (Engel, Blackwell et al. 1995).
The relevance of product information presented to consumers also affects the
purchasing decision. It has been shown that irrelevant information weakens
consumers‘ beliefs in the product‘s ability to deliver the outcome and satisfy the
need (Meyvis and Janiszewski 2002).
3. Pre-purchase alternative evaluation - assessment of available choices that
can fulfil the realised need by evaluating benefits they may deliver and reduction
of the number of options to the one (or several) preferred. In this step, a number of
alternatives are evaluated and the final option, which is believed to be able to
satisfy consumer need, better than the other options, is chosen. A number of
evaluative criteria, which represent product or service attributes or particular
dimensions of their delivery, are used for the evaluation. The criteria can be
functional or expressive in nature, for example, price, brand name, colour, smell,
environmental attributes, etc., which have different importance to various
individuals (Mittal, Ratchford et al. 1990). Ratchford (1975) posits that consumers
may often choose products for the status and image attributes and less for their
functional features (Ratchford 1975).
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Differences in product attributes are also reflected in the way the consumer
knowledge about a product can be measured. Functional attributes are more likely
to be measured objectively, while expressive /status/ and image attributes can
primarily be measured through subjective experiences of consumers with products
(Park, Mothersbaugh et al. 1994). It has been demonstrated that these image or
intangible attributes are important in customer evaluations, especially when their
tangible features are difficult to evaluate (Olson 1977).
In addition to the choice of criteria, consumers also choose which alternatives they
will evaluate. The set of alternatives for the evaluations process is called the
consideration or evoked set. Research on the evoked set (number of alternatives
that are considered in the evaluation process) has focused on both explaining the
process in which close substitutes -alternatives sharing the same attributes (usually
within the same product category, but of different brands) – are being evaluated
and on the choice of alternatives from different product categories -
noncomparables, so called across-category choice alternatives (Johnson 1989),
(Park and Smith 1989). The difference in the choice process between close
substitutes and alternatives from different product categories has been shown. The
choice process between close substitutes is a top-down process, in which
consumers start from comparing general information about product categories,
narrowing it down to concrete choices among brands of products (Park and Smith
1989), (Johnson 1988). The choice process between alternatives from different
product categories is the opposite. It starts from concrete features of alternatives
and widens the comparison to more abstract characteristics, based on which the
alternatives are being compared (Johnson 1989). Knowledge from these studies is
useful for analysing consumer acceptance of PSS, because in the PSS context, the
consumers have to compare service alternatives to products, which resembles
comparing non-comparables from different product and service categories.
Following Johnson‘s logic, the evaluation in this case will also be a bottom- up
process.
The information processing capabilities about product characteristics are shown to
depend on how well individuals are informed about a product, brand and entire
product category (Beattie 1982), (Bettman 1979). It is demonstrated that well-
informed customers focus more on objective information and particular product
attributes, while less informed customers rely on general information about the
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entire product category (Bettman and Sujan 1987) and use more subjective
information and recommendations of social contacts (King and Balasubramanian
1994). Furthermore, studies report that well- informed customers are willing to pay
more for the quality brand than were lower-knowledge customers (Cordell 1997).
An important part of the pre-purchase alternative evaluation is acceptance -
whether the consumer accepts and believes the information provided and trusts t
he sources of that information.
4. Purchase - acquirement of the chosen option of product or service.
The purchase step is associated with a number of decisions that individuals have
to make. Even if the alternative is already chosen, the purchasing may still not be
made, because motivations and circumstances can change, new information can
become available, or there could be no such alternatives available at that particular
place. The decision also depends on when and where to buy, and/or how to pay
for the purchase. Thus, at the purchasing stage, the final decision can be fully
planned, partially planned, or totally unplanned.
5. Consumption - utilisation of the procured option.
After the product or service is bought, consumers can use it directly, in a period of
time or could even abort the consumption process all together. Research
distinguishes between sacred and profane consumption, as well as impulsive
consumption.
6. Post-purchase alternative evaluation - assessment of whether or not and
to what degree the consumption of the alternative produced satisfaction.
The result of this step can be either satisfaction or dissatisfaction. Satisfaction is
the result of a post-consumption evaluation if a chosen alternative met or
exceeded expectations of the customer.
According to Oliver‘s expectation-disconfirmation model, consumers have three
levels of expectations about the product or service performance: equitable
performance (what the customer has to receive in return for money and effort
spent), expected performance, and ideal performance (Oliver 1980). The model
states that individual‘s expectations are either confirmed if a product performs as
expected, negatively disconfirmed when the product
performs more poorly than expected, or positively disconfirmed if a product
performs better than expected. A negative disconfirmation results in dis
satisfaction, and consumption of the product is likely to be discontinued.
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Confirmation or positive disconfirmation results in satisfaction and the continued
use of the product or service.
7. Divestment - disposal of the unconsumed product or its remnants.
Divestment became a focus of customer research relatively recently because of
growing environmental concerns. Most of the research has been focusing on final
disposal and recycling, but recently the secondary use of a product, such as reuse
and remarketing, is gaining more and more attention.
Besides ―information processing perspective‖ presented above, marketing
analyses buyer behaviour by employing a psychologically grounded concept of
attitudes. Attitudes are usually named as the major factor in shaping consumer
behaviour and a wealth of studies is available on the topic of how attitudes can be
used to predict consumer behaviour (Balderjahn 1988; Ronis, Yates et al. 1989;
Luzar and Cosse 1998). Katz‘ functional theory of attitudes explains the role of
attitudes in shaping social behaviour (Katz 1960). People form attitudes toward
products, brands, advertisements, stores, themselves, and other people based on
four underlying reasons: utilitarian function (based on rewards and punishments),
value-expressive function (consumer‘s central values or self- concept), ego-
defensive function (serves to protect the person from internal feelings of threat),
and knowledge function (need for order, meaning, and structure). Underlying
dimensions of attitude include: affect (feelings), behaviour (do), and cognitions
(learning and beliefs). These dimensions can be combined into three hierarchies of
effects models, which try to explain a different kind of consumer decision-making
process. Consumption plays a central role in economic theory. The most popular
theories and models in economic consumer research portray consumers as
somewhat passive rational decision-makers and assume that well-defined and
insatiable desires for goods and services drive consumer behaviour in the market.
Traditional neoclassical economists posit that these desires are not affected by
culture, institutional frameworks, social interactions, or the consumption choices
and lifestyles of their social contacts. Furthermore, these desires or preferences for
certain goods are stable by nature and consumers maximise their own utility in the
world of perfect information and market competition. They identify three major
influencing factors that affect consumption - prices, incomes, and personal tastes.
As personal tastes fall outside the realm of economics, most often, traditional
30
economists restrict themselves to the role of income and prices in determining
consumption choices.
Other presuppositions of economic theory of consumer demand are that desires
are not diminishing as more of them are satisfied and that the origin of desires is
in the consumers themselves. In response to these traditional views, Galbraith
argued that we need to realise that there are limits to desires and that expressions
of these desires in specific want s are created by industrial systems, implying that
consumer sovereignty is an empty concept (Galbraith 1958). Here he implies that
only physiological needs have limits. He critiques the present consumer societies,
which exploit the fact that psychological needs are insatiable, and which employ
great amount of resources to discover and create urge for more and more desires,
all in order to sustain the growth drive of indus try.
After Galbraith, the narrow scenario of reality drawn by neoclassical economists
has been heavily criticised on several grounds and a shift towards new foundations
in microeconomics has taken place (Lancaster 1966), (Lancaster 1966), (Lancaster
1971), (Michael and Becker 1973). A modern consumer theory regards consumers
as full members of the market who create their utility in the context of the
household. The fundamental prerequisite of this approach is that goods and
services are simply inputs to the consumption process, and their utility is being
extracted by consumers, who spend time and other resources, in the household.
The notion that needs and outcomes is really what consumers want is at the centre
of this new approach. Needs ma y be fulfilled by putting market-provided goods
through consumption process, in which time and skills of the consumers are
employed. The end result could be a great variety of ways consumers can produce
utility. This vast amount of alternatives makes the consumer decision process a
complex task, which consumers face every day. Taking into account the concept
of bounded rationality with lack of information and cognitive limitations, it is
clear that consumers cannot be efficient in their choices and that neoclassical
economics failed to provide sufficient explanation of consumption processes.
A different approach to the consumer decision process comes from the studies by
prominent economists who explored the effects of tastes and preferences on
consumption choices (Scitovsky 1992), (Becker 1996). It is been argued that life
would be impossibly complex if we were to go through the entire decision-
making process every time we are faced with a choice. It is suggested instead that
31
our lives are deeply routinised and the decisions about familiar daily situations are
made automatically, as a matter of habit. Habits are formed based on changes in
tastes, and our preferences depend on experiences in past consumption. This
discussion stems from the psychological learning theory, according to which
habits are formed in the process of continuous reinforcement of influencing
factors. Once people are satisfied with their choice and situation, their behaviour
becomes routinised and they do not tend to search for new solutions, until new
signals and influences come that can trigger the search for better alternative.
These ideas built the foundation for an extensive debate on economic implications
of habits (Pollak 1970), (von Weizsäcker 1971). Economists suggested looking at
individual costs as an explanation of the habitual behaviour. Stigler and Becker
(1977) explain stability of habits with a certain capital, consisting of skills,
information and experiences, that was acquired during consumption of a particular
object or service. Triggers for change reduce this accumulated capital (Stigler and
Becker 1977). This discussion is interesting from environmental point of view as
well, as routines and habits often offset sustainable patterns of consumption.
32
OBJECTIVES
33
RESEARCH METHODOLOGY
RESEARCH DESIGN
SAMPLE SIZE
AREA
Rohtak.
Gurgaon.
DATA COLLECTION
34
METHODS OF DATA COLLECTION
The task of data collection begins after a research problem has been
defined & research design chalked out. There are two types of data
1. Primary.
2. Secondary.
Primary Data:
Primary data are those which are collected afresh & for the first
time, & thus happen to be original in character.
Observation Method.
Interview Method.
Questioner Method.
Secondary Data:
Questioner
Articles
RESEARCH APPROACHES
Functional
Emotional
Practical
35
COMPANY PROFILE
HYUNDAI MOTORS
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company,
South Korea and is the largest passenger car exporter and the second largest car manufacturer of
India. HMIL presently markets 54 variants of passenger cars across segments. These includes the
Santro in the B segment, the i10, the Getz Prime & the premium hatchback i20 in the B+ segment,
the Accent and the Verna in the C segment, the Sonata Transform in the E segment and the Tucson
in the SUV segment.
Hyundai Motor India Ltd, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 559,880 vehicles in the calendar year (CY) 2009, an increase
of 14.4 percent over CY 2008. In the domestic market it clocked a growth of 18.1 percent as
compared to 2008 with 289,863 units, while overseas sales grew by 10.7 percent, with export of
270,017 units. HMIL currently exports cars to more than 110 countries across EU, Africa, Middle
East, Latin America and Asia. It has been the number one exporter of passenger car of the country
for the sixth year in a row.
HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. In continuation of its
commitment to provide the Indian customer with global technology, HMIL commissioned its
second plant in February 2008 which produces an additional 300,000 units per annum, raising
HMIL's total production capacity to 600,000 units per annum.
HMIL has invested to expand capacity in line with its positioning as HMC's global export hub for
compact cars. Apart from the expansion of production capacity, HMIL currently has 286 strong
dealer network and 540 strong service points across India, which will be further bolstered in 2010.
In December 2008, HMIL launched the much awaited premium compact the i20 after it had a
global preview at the Paris Motor Show in October, 2008. In 2009, HMIL also launched the new
facelift Sonata Transform and the new Verna which are vastly improved models compared to the
outgoing models. In March, 2009 Hyundai i10 clocked the fastest 3 lakh sales since its launch in
October, 2007. HMIL also became the only car manufacturer to introduce Automatic transmission
across segments with the launch of the i20 1.4 Litre Petrol Automatic. The i20 also simultaneously
got a powerful 1.4 Litre CRDi engine in July 2009. The i20 achieved the highest safety rating by
the European NCAP. In September 2009, HMIL introduced the new refurbished Santro with
luxurious interiors and improved exterior features. The Santro has been the highest selling model
for Hyundai with more than 15 Lakhs units sold since its launch in India in 1998. Hyundai Motor
India in December 2009 also crossed the 25 Lakh car production milestone.
36
Hyundai Motor India remains one of the fastest growing car manufacturers in the country. The
company‘s overall performance in the automobile sector was recognized by the media as it was
awarded with the prestigious ‗Manufacturer of the Year‘ award by both UTVi Autocar Car and
NDTV Profit-Car & Bike in 2009
Hyundai Motor India Limited, a wholly-owned subsidiary of Hyundai Motor
Company (HMC), South Korea, was established in India in December 1997. The integrated
manufacturing plant set up to an initial investment of US$ 614 million is presently the
largest manufacturing facility of HMC outside Korea.
Located at Irrunattukottia, near Chennai, Hyundai Motor India has emerged as a significant
driver of the region‘s economy by helping co-develop one of India‘s largest automotive
manufacturing zones supported by over 25 Indo-Korean joint-venture partners and original
equipment vendors, jointly employing over 10,000 people.
The company‘s maiden launch, Santro, made marketing history by becoming one
of India‘s best selling compact cars and catapulted Hyundai to the position of India‘s
second largest carmaker in just six months. The winner of the Business Standard Motoring
"Car of the year 1999" and rated the "Best Small Car" in the J D Power Asia Pacific Initial
Quality and APEAL studies for three years in a row Santro continues to be India‘s most
preferred and recommended compact car.
Accent launched in 1999, has also stood its ground against some of the best-
known global brands to emerge as a leader in the Indian mid-size cars segment. Offering
one of the most extensive and technologically advanced product line-ups in this segment,
Accent has topped the JD Power APEAL customer satisfaction study and the segment
sales for two years in a row.
Sonata, launched in 2001, showcased Hyundai Motor India‘s capability to produce
high-end luxury automobiles. The flagship of the Hyundai stable in India, currently has a
market share of near 26 percent. After the success of all its three brands in India, Hyundai
has recently launched its flagship bearer model, the Terracan,inIndia. Recently they has
launched Getz in India. This is a car covering space between Santo & Accent.
The production management processes at Hyundai Motor India are overlayed with an
organization-wide implementation of manufacturing best practices like Just-in-time
inventory management, Kaizen, TPM and TQM, that help us in making the world's best cars,
right here in India.
The Press Shop
A computer controlled line that converts sheet metal to body panels of high dimensional accuracy
and consistency.
37
A hi-tech line that builds full body shells from panels. Automated robotic arms The Body Shop
are used for intricate welding operations that ensure superior and consistent build quality.
Forges the engine cylinder blocks for our cars to exacting design specifications.
38
The Engine and Transmission Shop
One of the biggest engine shops in the country, this unit is equipped with the most modern tooling
and testing facilities to make a wide range of engines inhouse.
ENVIRONMENT FRIENDLY
Hyundai Motor India Limited has been awarded the benchmark ISO 14001
certification for its sustainable environment management practices. Living up to its
commitment of providing global standards of quality and process management in India,
Hyundai had put in place an Environment Management System (EMS) at its manufacturing
plant in Chennai right from its project stage. The certification process was completed in a
record time of 10 months.
The assessment was done by TUV SUDDEUTSCHLAND and covered areas like
Awareness Training, Technology Up gradation, Recycling, Waste Management and fulfilling
Government Regulations.
39
Hyundai Motor Company, S. Korea, the parent of HMI, has been doing
considerable work on sustainable Environment Management . The company has a well
defined framework in place for developing products that reduce pollutant emissions and
processes for preservation of natural resources and energy along all the stages of the
product lifecycle from production, sales, use to disposal. The company has also been in the
forefront of development of environment friendly technologies like Hybrid Electric Vehicles
(HEVs), and Fuel Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001
certification for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.
SOCIAL RESPONSIBILITY
MarutiSuzuki, as a responsible corporate citizen is committed to sustainable social
development and the preservation of the environment. All the company's key manufacturing
units, including the Indian plant have the ISO 14001 certification for its Environment
management practices. As a part of its social responsibility programs, the company conducts
various campaigns to spread awareness of in-car safety and safe driving practices,
particularly targeted against drunken driving, speeding, etc.
Hyundai and Kia together have R&D centres in the United States, Europe, Japan apart from the
global R&D headquarters at Ulsan, Korea.
The Hyundai Motor Group has recently dedicated an annual R&D spend of close to US$ 2 Billion,
up from US$ 1.2 Billion to enhance its thrust on new product development and achieve global
quality benchmarks by year 2005. This includes the $30 Mn Hyundai-Kia Design and Technical
Center in Irvive, California.
The R&D team focuses on the development of new products and technologies that include interior
and exterior design changes, development of new generation engines and alternate fuel systems,
concept vehicles and advanced passenger safety and comfort systems, in line with evolving
customer preferences across the globe. Recent successes of the team include the development of
40
the Hyundai patented Common Rail Direct Injection (CRDi) engine in association with Detroit
Diesel and the award winning Fuel Cell Santa FE.
Some of the ongoing projects that the Hyundai R&D team is involved in include the development
of the 'World Engine' in association with Daimler Chrysler and Mitsubishi and the development of
Automotive Telematics in association with IBM.
That the efforts of the Hyundai R&D team has paid great dividends to the company is evident from
the fact that the company's newly engineered products like the Santa Fe and the Getz have made
waves in the global automotive markets and the 'US Consumer Reports' magazine has ranked
Hyundai cars in level with that of Honda in its recent quality rankings
41
Hyundai i20 wins the ‗Viewer‘s Choice
Award‘ at the Overdrive CNBC TV 18
Awards 2010.
42
Hyundai wins the DHL-CNBC Tv18
International Trade Awards 2008-09
43
Hyundai Santro Adjudged India‘s Most
Dependable Compact Car by JD Power
Asia Pacific 2008
Hyundai i10 wins all the prestigious awards of the year 2008.
44
Performance Car of the Year' 2007 -
Hyundai Verna 1.5 CRDi.
NDTV Profit Car & Verna - ―Best Mid-size Car of the Year‖
Bike Awards award by the NDTV Profit C & B Awards
2007
45
– Overdrive awards 2003
'Dream, Strive, Achieve' is the mantra of every individual working in this US $570 million
company situated in a sprawling 535 acre facility located in Tamil Nadu. HMI houses state of the
art production techniques and has a workforce of more than 3900 employees. HMI is a wholly
owned subsidiary of Hyundai Motor Corporation - Korea, which is US $ 28 billion strong
company.
46
Hyundai brings with itself the latest in Technology, Quality and People practices ensuring in
providing the right sync to produce the best cars by bringing out the best in people. You could
play a decisive role in transforming the automobile landscape in India by being part of this
adrenaline pumped team.
47
MARUTI SUZUKI LIMITED
NATIONAL ROAD SAFETY MISSION
Maruti Suzuki considers road safety to be an integral part of its social initiatives. Taking forward
its commitment to road safety, Maruti Suzuki has adopted a National Road Safety Mission
launched in Dec 2008 under which 500000 people will be trained in road safety in the next three
years. This will be done through the two channels - Institute of Driving Training and Research
(IDTR) and the Maruti Driving Schools spread across the country. Of the 500,000 people to be
trained, at least 100,000 will be people from underprivileged section of society, who are keen to
take driving as a profession.
With the launch of IDTRs, Maruti Suzuki introduced world class driving training facilities to
India. These include scientifically laid-out driving tracks, advanced computer simulators and a
theory module for class room training. IDTR at Loni, started in 2000 in collaboration with the
Delhi government, is spread over 14.6 acres. It caters primarily to commercial vehicle drivers. In
2006, the second IDTR was set up at Sarai Kale Khan, South Delhi to focus on personal car and
Light Motor Vehicle drivers. We have recently added two IDTR's one in Uttrakhand and another at
Gujarat. Taking a step forward the Institute at Vadodra ( Gujarat) will not only impart driving
training and contribute to road safety, it will also offer automobile technical training to Gujarat¿s
tribal and under-privileged youth to strengthen their employability.
For the future, Maruti Suzuki will continue its endeavor and plans to set up more IDTR's in
partnerships with other state governments across the country.
Rakesh Vats
We have a state-of-the-art driving simulator which gets a good response from the people who
learn. Overall, I think that the IDTR is doing great service to the society.
Women and Driving
In the early 1990s, it was quite a discovery to see women drive a car in India. It was completely a
man's domain, and women mostly used public transport or were led by chauffeur - driven cars.
48
One of the limiting factors were the kind of cars that were available in the Indian market at that
time; cars were often bulky and difficult to drive.
Today, the Indian woman has moved beyond her traditional roles. The transition from a humble
homemaker to a tech savvy, independent, decision maker has happened and women in India today
occupy an important place in the society.
One of the factors that has contributed significantly to the success of women in India is "Mobility",
and this mobility has come in the form of personal transport.
Maruti Suzuki brought in the first car that was easy to drive and park in the Indian sub-continent.
Today the latest cars and the technology adaptations like power steering make driving very easy
and enjoyable. However, one important aspect was to 'learn to drive'.
Only in this decade, organized players like Maruti have ventured into imparting driving skills
through organized schools with world class training modules.
Maruti Suzuki has taken up to train them 'how to drive safely' through its network of 50 Maruti
Driving Schools spread over 45 cities.
Maruti Driving School at trained more than 90,000 people out of which they have trained more
than 41,000 women.
While the individual woman gains from learning driving, in many cases this skill leads to
flexibility for the whole family.
At MDS, the training modules are as per international standards and include both theory and
practical. Difficult driving situations such as fog, uphill terrain, rain and night driving is simulated
on state-of-the-art simulators to give learners a first hand experience of the weather conditions.
Only after class room and simulator training the learners are taken for actual driving on road.
This mix of theory and practical gives learners a critical insight into the driving skills. In addition,
the learners also pick up car handling training like changing flat tyre and handling minor snags and
repairs in the vehicle.
Corporate Social Responsibility
49
Maruti Suzuki has adopted a CSR policy, which serves as a guiding tool for the management and
the employees in steering Maruti Suzuki towards long term sustained growth in harmony along
with the interests of the stakeholder.
The role of the CSR department is to professionalize CSR activities in Maruti Suzuki and
strengthen the mechanisms involving the activities. Significant efforts have been taken to
contribute to society at large, through its corporate activities, especially in the areas of Road Safety
and Vocational Training. Maruti Suzuki has set up dedicated teams with requisite expertise to steer
the social projects
The company follows a partnership approach with its various stakeholders, and believes that the
prosperity and wellbeing of the stakeholders will fuel the growth of the company in the future.
50
Maruti Suzuki recognizes global warming and climate changes as global issues, the effects of
which are of concern both for the environment and human life.
The challenge faced by the society is how to meet the needs of the present, without compromising
the ability of future generations to meet their own needs. Maruti Suzuki strongly believes that an
investment in environment friendly products and manufacturing facilities is in the best interest of
the society as well as the business. The last 25 years of our journey has reinforced the belief that
environment friendly initiatives make products more acceptable to customers and help Maruti
Suzuki grow profitably in every sphere.
Since Maruti Suzuki started operations, conserving environment and natural resources has been an
integral part of our systems and processes. The concept of "Reduce, Reuse, Recycle" (3R's) has
been our driving principle. This three pronged strategy or the 3 R's has been promoted in all our
manufacturing facilities, supply chain and logistics operations.
Maruti Suzuki also follows the Philosophy of "Smaller, Fewer, Lighter, Shorter and Neater". This
Philosophy has helped Maruti Suzuki in optimal utilization of resources and cost savings.
Starting business in 1909 as Suzuki Loom Works, the firm was incorporated in 1920. Since
foundation Hamamatsu, Japan, SUZUKI has steadily grown and expanded. During the post-
W.W.II period, motorized bike 'Power free' which earned a good reputation was followed by 125cc
motorcycle 'Colleda', and later by the pioneering 'Suzulight' lightweight car that helped bring
Japan's automotive revolution. Each of these was epoch-making in their own right as they were
developed and manufactured by optimizing the most advanced technologies of that period.
Today, constantly going forward to meet changing lifestyles, the SUZUKI name is seen on a full
range of motorcycles, automobiles, outboard motors and related products such as generators and
motorized wheelchairs
The mark trademark is recognized by people throughout the world as a brand of quality products
that offer both reliability and originality. SUZUKI stands behind this global symbol with a sure
determination to maintain this confidence in the future as well, never stopping in creating such
advanced 'value-packed products'
51
GENERAL MOTORS
52
involved in various product, powertrain and purchasing collaborations. In
addition, GM is the largest shareholder in GM Daewoo Auto & Technology Co.
of South Korea. GM also has technology collaborations with BMW AG of
Germany and Toyota Motor Corp. of Japan, and vehicle manufacturing ventures
with several automakers around the world, including Toyota, Suzuki, Shanghai
Automotive Industry Corp. of China, AVTOVAZ of Russia and Renault SA of
France.
GM brought brand differentiation to the world back in the 1920s, when Alfred
Sloan created the price ladder of GM marques that offered ―a car for every purse
and purpose.‖
Today the GM product revolution again is strengthening its brands, with more
innovative marketing that better understands the customer. Witness the incredible
renaissance of Cadillac, led by all-new cars and trucks that have gone in a unique
design direction, and by marketing that really connects with potential buyers.
Building on the success of the CTS sedan and Escalade series of SUVs, Cadillac's
renaissance was enhanced further last year with the highly praised XLR roadster,
the SRX performance utility vehicle, and the stunning Sixteen concept car. To
reclaim the mantle of "Standard of the World," Cadillac must continue to further
upscale the ultimate statement of luxury. Stay tuned.
Lessons learnt at Cadillac: In short, develop distinctively designed, high-quality
vehicles that truly delight the customer, create an ownership experience that
reflects and reinforces the brand's image, support this with strong and innovative
advertising, and the buyers will come.
The same lessons are now being applied in North America to the volume leader,
Chevrolet, to the performance-oriented brand, Pontiac, and to Buick, which is
restoring its reputation for refined, dignified elegance. This emerging multi-brand
strategy is being played out around the world. In Europe, the Opel and Vauxhall
brands are being rebuilt with a more upscale image through an entire new lineup
of exciting products. That effort began with the Zafira, Vectra and Meriva, and
continues this year with the all-new Astra and Tigra.
Around the world, from Thailand to South Africa to Russia, Chevrolet is
establishing itself as a truly global, mainstream brand that across its lineup offers
great value and quality that consumers can trust.
53
Designing, building and selling great cars and trucks that people really want to
own. That's the fundamental business of General Motors.
Compelling designs excite customers and connect with them on an emotional
level. Well designed vehicles turn heads and fire the imagination. GM's goal is to
develop cars and trucks that have an emotional appeal for a new generation of
consumers - cars and trucks that people feel they must have.
Here's a sneak preview from our latest lineup of some great looking cars.
CHEVROLET CORVETTE
The sixth-generation 2005 Corvette advances the sports car driving experience in
every dimension. With its high-precision built, it is the most powerful standard
Corvette ever made. The Corvette is available in two body styles - coupe and
convertible.
CHEVROLET SSR
The 2005 SSR comes with a new 6.0L LS2 small block V8 that whips up 390
horsepower. A power-retractable hardtop, cast-aluminum 19-inch front wheels
and a five-link rear suspension define the vehicle that's part pick-up, part roadster
and pure Chevrolet.
OPEL INSIGNIA
The Insignia embodies the Opel brand's three core characteristics - excellent
driving dynamics, exceptional versatility and expressive styling. An automobile of
the future, it features numerous innovations including extensive use of LED
lighting technology.
OPEL SPEEDSTER
The Speedster breaks through the barriers of ordinary thinking and conventional
technology with a stylish, futuristic design and a road-holding experience like no
other. It puts the excitement back into driving with its high performance engine.
54
BUICK PARK AVENUE ULTRA
The Park Avenue Ultra draws from a rich design heritage to reveal a modern
interpretation of a classic Buick with an artist's attention to detail. Carrying on the
Buick legacy of strong workmanship, it comes with a higher torsional rigidity than
before.
CADILLAC SIXTEEN CONCEPT
The Cadillac Sixteen Concept embodies the timeless qualities of a luxury sedan
with its sleek appearance and a powerful XV16 engine that generates 1000
horsepower. Its sculpted design evokes memories of an era when luxury cars were
hand built.
CADILLAC XLR
The Cadillac XLR is a luxury roadster that is not just a head turner but also brings
a smile on any performance driver's face, with its 320 hp 4.6L Northstar V8 VVT
engine. An automatic retractable hardtop can transform the XLR from a coupe to
an open-air roadster.
PONTIAC SOLSTICE
The Solstice delivers its promise of open-air thrills and the exhilarating freedom
of roadster driving. It comes equipped with a powerful 2.4L Ecotec DOHC engine
belts out up to 170 horsepower. Its bold, striking exterior lines are clearly Pontiac.
PONTIAC FIREBIRD
The Firebird is bold, beautiful, passionate and rebellious. From the first models, to
the spellbinding Trans Am, to the magnificent madness of the Super Duty 455,
there's a story in each and every Firebird.
55
HOLDEN TORANA TT36
The Torana TT36 is a mid-sized hatch concept car that demonstrates the
versatility of Holden's design talent to a worldwide audience. Its experimental
powerplant belts out 280kW of power, and is a twin turbo, intercooled version of
the 3.6L Alloytec V6 engine.
56
ANALYSIS & INTERPRETATION
Findings:-
57
Q2: People having other brands than Hyundai‘s car previously .
Findings
58
Q 3: Who played an important role as an influencer in purchase of car ?
Findings
59
Q4: Who was the initiator to purchase the car ?
Findings
60
Q5: Why did you purchase this car ?
Findings
61
Q. 6 Who drives the car ?
Findings
62
Q. 7 What was the mode of payment ?
Findings
63
Q. 8 Was there any affect on car purchasing decision due to mode of
payment ?
Findings
64
Q.9 Do you think you got value for money ?
Findings
1) 80% of respondents said that they got the value for money.
2) 20% of respondents were not fully satisfied from their car.
65
Q.10 From where you purchased this car ?
Findings
1) 70% of respondents have purchased the car from their local place.
2) 30% of respondents have purchased the car from Delhi as the have
their business or job , relatives in Delhi. They have the craze to get
Delhi‘s Reg. No.
66
Q.11 Did dealers provide any extra benefit to you on purchase of the
car?
Findings
1) 85% respondents said that dealer provided them one year extended
warranty, Insurance.
2) The not fully satisfied respondent gave their ans. in no.
67
Q.12 Do you think promotional efforts like free insurance, extended
warranty, free gifts plays an important role in sale ?
Findings
68
Q.13 Are you satisfied with your car ?
Findings
69
Q.14 If no, what are the factors of dissatisfaction ?
Findings
70
Q.15 Were you having full information about this brand car or you
acquired while purchasing the car ?
Findings
1) 78% respondents said that they had full information about the
vehicle which they have purchased.
2) 22% of respondents were not having the information about the
vehicle but they acquired it from different sources like magazines,
dealers, friends etc.
71
Q.16 If no, then from where you acquired information ?
Findings
72
Q.17 Are the features projected by the company are the actual features of
the company ?
Findings
73
Q.18 If no, where they differs ?
Findings
1) 40% respondendents said that the car is not giving the mileage as
company has projected.
2) 45% respondendents said that after sales company & dealers do not
care. These are not customer oriented. More over their service
network is not developed as such of Maruti.
74
Q.19 To whom do you think is the major competitor of HYUNDAI
MOTOR INDIA LIMITED?
Findings
75
Q 20. Do you think the company is taking steps to remove cognitive
dissonance ?
Findings
2) The respondents whose problem is not sorted out till this time they
gave the ans. in no. one respondents problem was very big & he
gave the suggestion to the persons who are going to purchase Santro
Xing i.e.‖Anyone buying this car must check on the vibrations in the
Gear Lever and the floor. I had bought my car in Oct'03 and
reported this vibration problem to the company in Feb'04. Though the
service people were very prompt to react and tried their best to
solve the problem, but at the end of the day they could only say
that this was a technology issue and something which could only be
solved at their R&D.This is very disturbing for people who drive
with one hand on the gear knob.‖
76
FINDINGS
77
SUGGESTIONS
After analyzing the respondents views I found that no doubt the
company has a very good image in market. The have positioned the product
in the mind of the customers. People buy their vehicle due to comfort,
style, performance. But some customers are not satisfied due to some
reasons. I have some suggestions for the company.
1. They should go for enlargement of service station chins Were ever the
customer goes with his he should feel some one is there to care his
car.
2. Problems should be sorted out quickly so that the customer may not
feel inconvenient.
3. After sale of the product the company should take feed back i.e. their
vehicle is performing well or not. It will help in maintaining good
customer relations.
4. Sales executives should be trained & they should have the knowledge
about the specification & parts of the vehicle.
5. HYUNDAI MOTOR INDIA LIMITED should concentrate on mileage of
the vehicle because the price of fuel are very high..
6. HYUNDAI MOTOR INDIA LIMITED should launch other models than
Santro and Getz to attract the middle class family as Maruti has 5 small cars in
market.
7. HYUNDAI MOTOR INDIA LIMITED should establish a large services
network.
8. They should show the feature in the ads rather than using celebrities.
9. HYUNDAI MOTOR INDIA LIMITED should launch low price vehicles like
Maruti‘s 800, Alto.
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CONCLUSION OF THE STUDY
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LIMITATIONS
Limited area.
Limited time period due to regular classes.
Some responses to the questions were abacuses.
Sample was convenience sample.
Some respondent were not willing to give the answer.
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