Professional Documents
Culture Documents
This project deals with the application of theory to know the role of
dealers in consumer buying behavior & customer satisfaction, through market
survey & research. It was my fortune to do this project.. I learned a lot of new
things which could never been learned from the theory classes. This report is
a presentation of my work.
Shamsher
singh
Contents
ACKNOWLEDGEMENT
PREFACE
Chapter 1 INTRODUCTION
Chapter 2 OBJECTIVE OF STUDY
Chapter 3 CONSUMER BUYING BEHAVIOUR
Major Players & Product Offered
Customer Satisfaction
Customer Expectations
Chapter 4 INDUSTRY PROFILE
Introduction
Participants of Two Wheeler Segment
Growth of Two Wheeler Industry
Chapter 5 RESEARCH METHODOLOGY
Problem identification
Scope of Study
Research Design
Sampling Plan
Method Of Data Collection
Sources Of Data Collection
Limitations
Chapter 6 DATA ANALYSIS
Chapter 7 MAJOR FINDINGS
Chapter 8 DATA INTERPRETATIONS
Chapter 9 RECOMMENDATIONS & SUGGESTIONS
Chapter 10 CONCLUSION
ANNEXURES:--
• Questionnaire
• Bibliography
Chapter 1
INTRODUCTION
INTRODUCTION
In this era of cut throat competition, no company can even survive in
the market place without knowing its and its products strengths and
weaknesses. It has to fortify itself against threats from the environment and
exploit its strengths or increase profits. And in order to do so, the company
has to conduct regular surveys to know the customer’s opinions, needs, and
preferences. This helps the company to manufacture the product like wise for
each customer’s expectations.
It has now become more important for the customer confidence and
higher positioning of buyer perception. Thus, Surveys becomes genuine key
to success.
MOTORCYCLE
Sources:-- SIAMINDIA
The expanding Indian market, the growing size of the middle class and the
rise in aspirations of the youth along with opening up of the Indian economy
have collectively influenced the steady growth of the two wheeler market in
India. With leading foreign brands in collaborations with Indian
manufacturers entering the Indian market, the customer could not have asked
for more. In fact, the Indian bike market has grown immensely and the
preference for variety, looks, design has brought in a number of models in the
market. In the last 2 to 3 years, the craze for motorcycle over the scooters has
picked up and one can find today even girls craving for a motorbike. Not only
in the Metros but in small towns and cities also.
But it’s not yet end of the road for the basic entry-level bike. We are
witnessing segmentation in the bike market, like the Bike market. The entry
level model will continue to be a high-interest segment for the aspirants.
Against this backdrop, the present project work has been undertaken.
With the focus of the consumer shifting to brand and product features, the
project is a study aiming at understanding what does a customer wants from
Power segment bikes(150cc & plus).
Chapter 2
OBJECTIVES OF
THE STUDY
Objectives of the
project study
1. To study the rapid changing perception of consumers towards power
segment bikes.
consumers.
4. To study the main factor that most influence the consumer to buy a
bike.
CONSUMER
BUYING
BEHAVIOUR
CONSUMER
BEHAVIOR
(In today’s challenging & competitive world of fast changing
technology, consumer tastes are also characterized by fast changes. So, to
survive in the market, a firm has to be constantly innovating and understand
the latest, consumer trends, tastes and preference. Consumer behavior
provides invaluable dues and guidelines to market on new technological
frontiers, which they should explore. It is realized by studying the buying
behavior of consumers that many consumer products that they felt reflected
their own special needs, personalities and lifestyles. To better meet the needs
of specific groups of consumers, most marketers adopted a policy of market
segmentation & successfully market to different segments the marketing
manager needs appropriate marketing strategies, which he can design only
when he can understand the factor, which account for these difference in
consumers behavior.
ROLE DESCRIPTION
Initiator The individual who determines that some or need or
want is not being met & authorize to rectify the
situation.
Influencer A person who by some intentional or unintentional
word or action influences the purchase decision, the
actual purchase and the use of the product or service.
Buyer The individual who actually makes the purchase
transaction.
User The person most directly involved in the
consumption or use of purchase.
Thus, the importance of CB lies in the fact that behavior can be under-
stand & influenced to ensure a positive purchase decision. So, a round
understanding of CB is essential to the long run success of any marketing
program. In fact, it is seen as a cornerstone of the marketing concept. That's
why the marketing managers interest lies exactly to ensure that his marketing
strategy result in purchase of the product.
MODELING BEHAVIOR
1. EXTERNAL VARIABLE:
a) Formal learning:
In which parent an elders teach children the proper way to behave &
this behavior influence his attitude towards the products.
II) Subculture: These groups posses beliefs, values and customs that set
them apart from other members of the same society or culture. So,
there are subculture of students, Professors, marketers, & other group.
An individual may be member of more than one subculture at the same
time, and based upon it consumer’s behavior like product purchase
Patterns, Shopping behavior &: other Demographic & Psyographic
characteristics may differ. Thus, it .is imperative that marketers
understand who constitutes the most relevant subculture for their
particular or service.
REFERENCE GROUPS:
It refers to group that serve as trams of reference for individual in their
judgment, beliefs, purpose & consumption behavior. These reference
groups are highly relevant and potent influence in consumer’s
decision-making. To attract consumers a no of promotional strategies
are used & one of them is Reference group appeal. There are helpful in
increasing: brand awareness & serve to reduce perceived & guide the
individual value & behavior.
V) Family:
The family is a major influence on the consumption behavior of its
members; it is also the prime target market for most product categories.
Familiars can be defined as two or more person related by blood,
marriage or adoption that reside together. The basic function of a
family is the provision of economic & emotional support; childhood
socialization & a suitable life style for its members of consumer’s
related role of family members include influences, gatekeeper,
deciders, buyers, users, maintainers & disposers. Thus, the family
operates an economic unit, earning & spending money & the family
functions directly in the role of ultimate consumption. Each family
member influences the purchase decision. Family members have
individual and collective consumption priorities. Thus, the marketers
need to understand the nature, the family's influence on its members &
the way in which the purchase decision are made by the members. The
stages of a family's life cycle also influence the consumer behavior.
(a) Demographic factor & life cycle stage: The first factor influence a
buyer's decision is his age. There are certain physiological difference
between men & women, which result in there having different
consumption needs.
c) Income: Income here means the income available for spending (i.e.
income after tax, provident fund and other statuary deduction). The
person's attitude towards spending versus saving and his borrowings
power are also important influencing factors.
e) Life Style: Life styles are the pattern in which people live, as
expressed by the manner, in which they spend money and time on
various activities and interests. It is a function of opinion, social class,
demographic factors and personality etc.
f) Other Influences: This is the general category encompassing
influences on consumers. The influence might be the effects of media
i.e., whether consumer's behavior is more influenced by print media or
the electronic media. Other influences including physical surroundings,
the interpersonal setting, national events and other situational
variables.
Thus, there were the various factors, which influence the consumer
behavior.
Types of Purchase
decision Behavior:
CB changes depending upon the nature or type or buying gives rise to three
types of buyer behavior:
1. R R behaviors:
It occurs where there is low product involvement, the consumer known
the brands available and criteria of choice and the stakes are not so
high in terms of price, e.g. bread, pastes, soaps, soft-drinks etc. here
the consumer expect a consistent quality in the product. New
customers are drawn by sales promotion and product improvements.
2. LPS behavior: When the consumer knows the brands available but
still needs additional information to make a correct choice.
3. EPS behavior: When new product category comes on the scene. Here,
extensive information is needed on both the product category and the
brand being made available.
Major Players and
Products Offered
As India is very potential market for two-wheeler. There are a number
of players competing with one another. In the mean time, there are 5 major
players fighting for an approx. two wheelers market of 50.18 lakh two-
wheelers annually. The structure of the industry has changed during the last
decade with a number of small companies being taken over by major players.
But, the competition has just begun to hot up with coming up of MNCs. The
major players are as follows:
1) HERO HONDA
Hero Honda has a reputation of being the most fuel-efficient and the
largest selling Indian motorcycle. Its commitment of providing high value
products at reasonable prices, led the world’s largest manufacturer of
motorcycles to collaborate with the world’s largest bicycle manufacturer.
3) LML
5. ROYAL ENFIELD
7. HONDA
Customer
Expectations/ Wants
“How do Buyers form their expectations? “ Their expectations are
influenced by their past buying experience, friend’s and associate’s advice,
and the marketer’s and competitor’s information and promises.
• Primary Expectations
• Secondary expectations
Primary Expectations:--
Secondary Expectations:--
INDUSTRY
PROFILE
INTRODUCTION
In 1855, Otto Daimler, a German inventor, presented the world with
the first motorcycle. It was a far cry from the sleek model we see today. The
first motorcycle was a clanking contraption that had a 4-stroke engine and
was chain- driven. That year, Daimler’s contemporary, Benz invented the
first petrol driven Bike.
The Ind-Suzuki (later TVS-Suzuki) was the first bike to start off what
is known as the 100cc revolution in the country? The Indi-Suzuki’s launch in
the mid 80s saw a quantum leap in India’s 2 wheelers population as
Honda’s, Suzuki’s, and Yamaha’s roared onto the roads in their Indian
avatars.
Bajaj Motors are the second largest manufacturers of scooters in the
The Bajaj group has got models in the 3 key segments of the two-wheeler
market, namely motorcycles, scooters and step-thrus. The down turn in Asian
economy in 1998 has led to a shrink in the works 2-wheeler sales as Asia
1) Scooters
The scooter segment can be further classified in to the geared and the
while the ungeared ones come in plastic bodies. The demand for the
geared scooters is primarily from the middle aged group who have a
family to look after. They would look out for the utility value of the
from the women, teenagers, students etc.. They are basically easy to
2) Motorcycle
The motorcycle is being increasingly used by the youngsters in urban
Bigger wheels, better road grip, high ground clearance, power, fuel
efficiency and low maintenance costs are the major attractions of this
range.
3) Mopeds
Mopeds are the entry level vehicles. The demand for the mopeds is
It stands next only to Japan and Chine in terms of the number of two
wheelers produced and sold respectively. India is one of the very few
The two wheelers market has had a perceptible shift from a buyers
productivity, after sale service, marketing and distribution. In the short term,
manufacturers.
All the three segments, motor cycles, scooters and mopeds have
witnessed capacity additions in the last one year and it will continue in the
à-vis supply, while the scooter and mopeds supply will outstrip demand.
The motorcycle segment has gradually increased its presence from 27% in
FY92 to 47.7% in FY2000 mainly at the expenses of the scooter and, to some
The demand for scooter is on the wane and witnessed a 10% yoy fall
in FY 2000. Than 40% YOY fall in 03, With the gradual shift in demand,
sales in the scooter segment is expected to fall further, while on the other side
future. This will translate into a demand fall of around 20% in scooter while
sales of scooterettes will rise by around 30% inFY01. With the ongoing
expansion from Bajaj Auto Ltd., LML and TVS Suzuki, the capacity in the
surplus situation.
We expect the motorcycle segment to continue to grow at an average
the present trend will increase from 2.08mm inFY2000 to 2.38mm in FY01.
The segment will be witnessing several new entrants in FY05, mainly in the
four stroke sub-segment like Suzuki, Dokuti etc. This will lead to an over
FY01. The demand for mopeds will increase from 0.726mm in FY2000 to
As incomes grow and people feel the need to own a private means of
METHODOLOGY
The term research methodology comprises of all research activities. It
Problem identification
Scope of study
Objective of study
Research design
Sampling plan
Limitations
1. Problem Identification:
product so that he can gain maximum out of it. He should be aware of who is
2. Scope of study:
researcher. 200 motor bike customer are interviewed regarding the buying
3. Research Design:
research design the decision regarding what, where, whom, how much, by
what means are concerned. It is the blue print for the research undertaken.
In this research the rating scale technique is used. Rating scale involves
Or
Natural
be analyze by knowing the rating they are given to their own or other motor
bike in market.
5. Sampling Plan:
Sample Unit: Sample unit is target population of Karnal, who can afford to
Observation method
Questionnaire method
companies.
8. Limitations of Study:
Table 1
One
Two
Three
More than 3
This table and chart exhibits the no. of two wheeler owned by the
respondents. It is clear from the above presentation that most of the consumer
i.e. 65% have only one two wheeler and very few i.e. 12% have 3 or more
than 3 vehicle.
TYPES OF VEHICLES
Table 2
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Motor Cycle Scooter Scooty Moped
This table and chart exhibits the no. of two wheeler owned by the
respondents. It is clear from the above presentation that most of the consumer
i.e. 65% have only one two wheeler and very few i.e. 12% have 3 or more
than 3 vehicle.
AWARENESS OF TWO WHEELER BRAND AVAILABLE IN THE
MARKET
Table 3
Fully Aw are
Less Aw are
Unaw are
These table and chart shows the awareness of two wheeler brand available in
the market. In exhibit that 49% of consumer are less aware about two
wheeler’s brand and 43% consumers are fully aware. While 8% consumer
are unaware about the brands of two wheelers available in the market.
SWITCHABILITYOF CONSUMER
Table 4
YES
NO
This table and chart shows the switch ability of consumers regarding two
wheeler. It shows that 83% of consumer are brand loyal and only 17%
Table 5
Fully Satisfied
Moderate Satisfied
Less Satisfied
Not Satisfied
This table and chart exhibits the satisfaction level of consumer regarding their
vehicle. It shows that 79% customers are fully satisfy with their vehicle and
Table 6
60%
50%
40%
30%
20%
10%
0%
Present Vital Creates Misleading Anyother
Details Aw areness
This table and graph shows the role played by advertisement. It shows that
57% customers replied that it creates awareness for them and 38% replied
that it presents important details about the products while 4% said that
More Rank
Mileage 1
After Sale Service 5
Attractive Colour 2
Excellent Pick up 4
Easy Starting 3
Any Other 6
Table 7
600%
500%
400%
300%
200%
100%
0%
Mileage After Sale Attractive Excellent Easy Anyother
Service colour pickup starting
This table and graph shows the exhibits the features of two wheeler in
followed by attractive colours is starting excellent pickup etc. and last rank is
given to any other features like comfort driving. Luggage space etc.
INFLUENCE OF ADVERTISEMENT ON PURCHASE DECISION
Table 8
46% Yes
54% No
This table and chart shows the influence on purchase decision. It clearly
Table 9
42%
18-25
47%
26-40
41-55
56& above
9%
2
This table and chart shows the age of group of customers It shows that 47%
consumers are lie in the age group of 26 to 40 years followed by 42% in age
group of 18-25 years and less percentage i.e. 2% lie in the age group of 56
CUSTOMERS OCCUPATION
Table 10
7% 2%
11%
Students
38%
Business Person
Service Person
Professional
Agricultursit
23%
Any Other
19%
This table and chart exhibits the customers occupation. It shows that 38%
customers are students followed by service person i.e. 23% and only 2%
Table 11
33%
Male
Fem ale
67%
This table and chart shows the sex of the customers. It shows that 67% are
Table 12
This table exhibits the income group of customer. It shows that 37%
consumers are of the income group of Rs. 60001 to Rs. 100000 followed by
income group Rs. 100001 to Rs. 150000 and veryless belong to the income
headings.
1) Pre-Purchase Analysis
4) Post-Purchase analysis.
1) Pre-Purchase Analysis:
of every family. A home maker must devote time, attention and energy
the brands of Bikes in the study area. It is studied under the headings :
a) Sources of Information:
From the above table it could be inferred that out of the 200 respondents, 118
(59%) obtained the information from their friends. Forty six respondents
(23%) got the information from relatives whereas twenty six respondents
only ten respondents (5%) got the information from sales people.
b) Reasons for buying:
who may buy a Bike for the purpose of availing themselves of petrol
Table 2 shows that out of the 200 respondents, 146 respondents (73%)
have purchased a Bike for the purpose of comfort and convenience, while 30
Fourteen respondents (7%) have purchased Bikes for the purpose of availing
process, involving both individual and social phenomena based upon factual
activity from among one or more alternatives with the intention of moving
towards some desired state of affairs. Hence an attempt is made to find out
Table 3 shows that out of the 200 respondents, a vast majority of them
respondents (10%) were influenced by his/ her children while taking the
the rank for the various factors namely, price, safety, brand name, fuel
terms.
Efficiency
Technical 12 34 49 27 23 19 36 200
Collaboration
Capacity of 8 22 37 23 15 53 42 200
the vehicle
Warranty 18 15 11 21 20 46 69 200
terms
Source: Primary data
Garret’s Formula:
100(Rii – 0.5)
Percent Position = ——————
Nj
Where Rij = Rank given for the ith variable by the jth respondents.
It could be inferred from the table 5 that fuel efficiency is the most important
factor influencing the purchase of a Bike followed by brand name, safety,
price and the like.
a) CUSTOMER SATISFACTION:
Table 7 shows the degree of satisfaction of the sample respondents
with regard to performance of Bike.
Table 7 shows that out of the 200 respondents, 106 respondents (53%)
are highly satisfied with their Bikes. Ninety four respondents (47%) are
satisfied with their Bikes.
b) RECOMMENDING TO OTHERS:
It has been already established in this survey that the respondents seek
opinion from the existing users while purchasing Bikes. It is clear (from the
Table 1) that friends and relatives occupy an important place among the
who is fully satisfied with the product, will recommend it to other prospective
Table 8 shows that all the 200 respondents (100%) recommend the
brand, which they own to others who are willing to purchase.
SUGGESTIONS
On the basis of the findings, the following suggestions are made:
development.
importance to fuel efficiency than to other factors. They believe that the
brand name tells them something about product quality, utility, technology
and the like. The consumers prefer to purchase the Bikes which offer high
Q.10 If any brand/ company offers any attractive scheme, will you go for
that company/ brand.
i) Yes ii) No
Q.11 Are you satisfied with your Two-Wheeler?
i) Fully Satisfied ii) Moderate Satisfied
iii) Less Satisfied iv) Not Satisfied
a) Name ___________________________________________________
b) Place ___________________________________________________
c) Age
i) 18-25 ii) 26-40
iii) 41-55 iv) 56 and above
d) Occupation
i) Student ii) Business Person
iii) Professional iv) Service Person
v) Agriculturist vi) Any other
e) Sex
i) Male ii) Female
Consumers
1. What type of Vehicle do you have?
1 2 3 4 5
Scooters
Motor-cycles
Mopeds
Scooty
2. Which brand/ model of Two wheeler do youown?
1 2 3 4 5
Hero Honda
Bajaj
TVS
LML
ENFIELD
HONDA
3. Awareness about the Two-wheeler brand/model available.
1 2 3 4 5
Full Aware
Less Aware
Unaware
4. Reasons for preferring a particular brand/ model?
1 2 3 4 5
Price
Mileage
Advertisement
Look
Any other
5. From where you bought your Two-wheeler?
1 2 3 4 5
Showroom
Canteen
Previous Owner
Any other
6. Which media of advertisement is playing a vital role in increasing the
awareness of Two-wheelers?
TV 1 2 3 4 5
Radio
Newspaper
Magazines
Sign Board
Any other
BIBLIOGRAPHY
BOOKS:-
Philip Kottler : Marketing Management
consumer wants from a bike. Some of them, which I will be taking into
account are
Parmod Pathak, Saumya Singh, does some of the work that had been
already done in this regard and their work was published in Pradigm,
Another major contribution had been done byDubey J and Patel R and
pp. 66,70 Laudon D and Della Bitta Albert do another major contribution.
consumer want from a Bike " dubey J and Patel R reviewed about "Role of
Advertisement : in buying decision of bikes " Auto India and Overdrive India
web sites provides us a lot of information about the various features provided
- www.thehindubusinessline.com
(how the 150cc mode 1 stake up)
- www.flonnet.com (Bike with milege and power)
(150cc plus category)
- Motor Cycle Trader Feb. 03
(Power bike changing sunario)
DATA
INTERPRETATION
65% have only one two wheeler and very few i.e. 12% have two or
46% of customer have scooter, 29% have motor cycle & 7% have
moped etc.
30% consumer have Hero Honda has favourite brand, 19% Bajaj, 20%
Suzuki, 17% LML & only 3% other brands has Enfield, Yezdi etc.
49% of consumer are less aware about two wheelers brand and 43%
21% of consumer are preffering any brand due to price, 23% due to
67% consumer buy their vehicle from showroom, 18% from previous
83% of customer are brand loyal and other 17% go for another brand.
79% customer are fully satisfied, 7% modrate satisfied, 5% less
say no.
Customer of 18-25 years have 42% of share in two wheeler market, 26-
21% customer are below income group of 60000, 37% are from 60001
to 100000, 30% are from 100000 to 150000 and 12% above income
groups.