International Referred Research Journal

ISSN- 0975-3486

VOL,I *ISSUE-9

RNI: RAJBIL /2009/30097

Research Paper

PSYCHOGRAPHIC PROFILING:ASTUDY OF MARUTI-800 CAR OWNERS

June, 2010

* Ajeya Jha ** Meeta Jha

* Prof. Deptt. of Management Studies,Sikkim Manipal Institute of Technolo, Majitar, Sikkim ** Reader, SoS in Psychology, Pt. Ravishankar Shukla University, Raipur, (C.G.)
I. Introduction Segmentation, along with targeting and positioning has emerged as the corner stone of modern marketing practices1-7. No longer do marketers attempt mass marketing as the evolving wisdom suggests that no product is needed by every one. A market segment consists of a group of customers who share a similar set of needs and wants. Thus we distinguish between car buyers who are primarily seeking low cost basic transportation, those seeking luxurious driving experience and those seeking driving thrills and performance8. The marketers do not create segments; The marketers task is to identify the segments and decide which one(s) to target. Through segmentation a companycan better design, price, discloseand deliver the product to satisfy the target market. Four broad groups of variables are used to segment the market. They are (i) Demographic, (b) Geographic, (c) Psychographic and (d) Behavioural.. Psychographics have emerged as important basis for segmentation with higher income and evolved customer9. Maruti-800 is perhaps the best known brand in India. It is the No.1 passenger car companyin India. Despite competition, it has managed tostayahead with a market share that is still 3 times of the second biggest player.The entryofMaruti expanded theoverall demand for passenger cars in India, leading to the industry growingat a CAGRofapproximately25%(from 3.6%) between fiscal 1984 and fiscal 199010. However it is consistently losing ground to its competitors11.This paper contributes by identifying the dominant psychographicprofileofownersofMaruti-800in Sikkim and adjoining areas using VALS classification of customers. Theresults areexpected tohelp fine-tuning the marketing efforts ofMaruti UdyogLtd. Particularly at a time theyare facing intense competition from their competitors. II.Key terms: Segmentation; Psychographic; VALSTM Framework; III. Materials and Methodology a.The study is based on SRI Consulting Business (SRI-BI) VALSTM Framework12. This frame work is one of the most popular classification system based on psychographic measurement. These gmentation system is based on responses to a questionnaire featuring 4 demographic and 35 attitudinal questions. TheVALS system is continuallyupdated with new data from more than 80,000 surveyors per year. The questionnaire is available at SRIC-BI web site (www.sric-bi.com) b.The basic tenet of VALS is that people express thepersonalities through their behaviors. VALS specifically defines consumer segments on the basis of those personality traits that affect behavior in themarketplace. Rather than looking at what people do and segregating people with like activities, VALS uses psychology to segment people according to their distinct personality traits. The personality traits are the motivationthe cause. Buying behavior becomes the effectthe observable, external behavior prompted by an internal driver. c.Consumers buy products and services and seek experiences that fulfill their characteristic preferences and give shape, substance, and satisfaction to their lives. An individuals primarymotivation determines what in particular about the self or the world is the meaningful core that governs his or her activities. Consumers are inspired by one of three primary motivations: ideals, achievement, and self-expression. Consumers who are primarilymotivated byideals are

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International Referred Research Journal ISSN- 0975-3486 VOL,I *ISSUE-9 RNI: RAJBIL /2009/30097 guided byknowledge and principles. Consumers who d. The methodologyinvolved identifying the owners are primarily motivated by achievement look for of maruti-800 in Sikkim and adjoining areas and products and services that demonstrate success to approaching them with a request to fill SRIC-BI VALS their peers. Consumers whoare primarilymotivated by questionnaire. In all 231 car owners wereidentified and self-expression desire social or physical activity, of which 200 agreed to fill the questionnaires. Their variety, and risk.According toVALS consumers can be responses were fed online at the SRIC-BI web site to divided into 8 categories. Theyare12: i. Innovators are determine the VALS category they belong to. e.Later successful, sophisticated, take-charge people with high the owners belonging totwo dominant categories were self-esteem. Innovators are very active consumers, approached for additional information to verify the and their purchases reflect cultivated tastes for upscale, results and alsoto explore and understand their profile niche products and services.Their lives are variables. characterized by variety. Their possessions and IV Result and Discussion Dominant VALS category . recreation reflect a cultivated taste for the finer things that have been identified for Maruti-800 owners have in life ii. Thinkers are motivated by ideals. They are been given in Chart-1. mature, satisfied, comfortable , and reflective people Chart-1: Dominant VALS category for Maruti-800 who value order, knowledge, and responsibility. They owners tend to be well educated and actively seek out information in the decision-making process. Thinkers are conservative, practical consumers; they look for durability, functionality, and value in the products they buy. iii. Achievers have goal-oriented lifestyles and a deep commitment to career and family. v. Believers are motivated by ideals. They are From the chart it is obvious that Maruti-800 owners conservative, conventional people with concrete belong to two dominant categories (a)Achievers and beliefs based on traditional, established codes: family, (b) Thinkers. religion, community, and the nation. As consumers, (a)Achievers: In India cars have always been Believersare predictable; theychoosefamiliar products associated with social status thus they have been and established brands. vi. Strivers are trendyand fun identified as important symbols of achievement. As loving. Because they are motivated by achievement, people go up the social ladder theyalso graduate from Strivers are concerned about the opinions and approval two wheelers to four wheelers. Maruti-800 offers the of others. Money defines success for Strivers, who most economic pricing (before the advent ofNano) for dont have enough of it to meet their desires. Strivers such group of people and thus it is not surprising that are active consumers because shopping is both a social achievers are the dominating group that owns Marutiactivity and an opportunity to demonstrate to peers 800. To verifythis conclusion the owners belonging to their ability to buy. vii. Makers are motivated by self- achievers categories were approached again with expression. They express themselves and experience further questions. Therespondents wereasked whether the world by working on it-building a house, raising or not the owned Maruti-800 represents the first 4children, fixing a car, or canning vegetables-and have wheeler purchase in the family. The response has been enough skill and energy to carry out their projects shown in Chart-2. Chart-2 successfully. They are unimpressed by material Is Maruti-800 the First 4-wheeler possessions other than those with a practical or purchase? functional purpose. Because theyprefer valuetoluxury, they buy basic products. viii. Survivors live narrowly focused lives. With few resources with which to cope, they often believe that the world ischanging tooquickly. Theyare comfortable withthefamiliarandareprimarilyconcernedwith safety and security. They are loyal to favorite brands, From chart-2 it is evident that Maruti-800is dominantly especially if they can purchase them at a discount the first 4-wheeler purchase from the respondents. As
3% 29% Achievers Thinkers Others 68%

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International Referred Research Journal ISSN- 0975-3486 many as 87% of achievers have their first owned 4wheeler as the Maruti-800 theyare in possession as of now. This verifies our earlier finding that Maruti-800 symbolizes achievement at least in the region where study has been conducted.This view was further confirmed by the responses toquestion whether or not the parents owned a 4-wheeler. The response statistics has been shown in Chart-3. Chart-3
Did your parents own a 4-wheeler?

VOL,I *ISSUE-9 RNI: RAJBIL /2009/30097 Chart-4

Do you aspire to buy bigger and more expensive vehicle in Future?
90 80 70 60 50 40 30 20 10 0 Yes No May be

Acivers Thinkers

100 80 60 Series1 40 20 0 Yes No

The responses indicate that more than 80% achievers are also the first generation car-owners. b) Thinkers: Chart-1 shows that as manyas 29% ofthe respondents belong to the VALS categoryThinkers. To understand their decision to own Maruti-800, they were further approached with a questionnaire. From the results it is evident that thinkers haddecided upon owning maruti800 on the basis of two values (i) Frugality (ii) Environmental consciousness. Maruti-800 is the most economic 4-wheeler in the Indian market because of low cost and high fuel-efficiency. Thus people valuing prudence overwhelmingly prefer Maruti-800. Fuelefficiency also means that this 4-wheeler is most environment friendlyalso.Tounderstandthe difference betweenAchievers andThinkers, therespondents were asked if in future they aspire to buy bigger and more expensive4-wheeler. Theresponses havebeen depicted in chart-4.

R E F E R E N C E

The responses throw up interesting but expected results. As many as 81% achievers aspire to own bigger andmore expensive4-wheelers, as against only about 40% Thinkers. Thiswasexpected asfor achievers the social status of owning a 4-wheeler will fade away quicklyand theywill need toown moreexpensive and bigger brands to flaunt their social success. For thinkers on the other hand, Maruti-800 represents a belief and not social success hence they are evidently less keen to buy expensive brands in future. But 40% Thinkers aspiring tobuya bigger 4-wheeler is difficult to explain. It is lower in comparison but is still very high. This is perhapsbecause ofthe fact that marketers have only a partial comprehension of segmentation concept13. This could also be due to the fact that segmentation variables are often based on preconceived values and priorities14. Conclusion From the results and discussion it may be concluded that Maruti-800owners myprimarilybecategorized as Achievers and Thinkers as per VALS classification. This understanding should help the marketers of Maruti-800 tocome up with better communication to potential and existing customers. They may evolve plans to sell their own expensive models once the achievers acquire the financial ability to buy more expensive cars.

Allenby et al., (1998) On the heterogeneity of demand. Journal of Marketing Research. v 35. 384-38 Dibb and Simkin, (2001), Market segmentation diagnosing and treating the barriers. Industrial Marketing Management. v30. 609-625.Emanuel H. Demby, (1989) Psychographics Revisited: The Birth of a Technique, Marketing News, January 2, 1989, p. 21 Frederick E. Webster, Jr., (1988) The Rediscovery of the Marketing Concept, Business Horizons 31 ( May-June 1988): 29-39. Johnston, (1968) Choice in classification: the subjectivity of objective methods. Annuals of the Association of American Geographers. v58. 575-589. Kotler, (1997) Marketing management. Prentice Hall, New Jersey. Kotler et al (2007) Marketing Management A South Asian Perspective, Pearson Education.Michman Ronald D., (1991) Lifestyle Market Segmentation page 3.Peter R. Dickson and James L. Ginter, (1987) Market Segmentation, Product Differentiation, and Marketing Strategy, Journal of Marketing 51 ( April 1987): 1-10.Robert F. Keith, (1960) The Marketing Revolution, Journal of Marketing24 ( January 1960): 35-38. Smith, (1956) Product differentiation and market segmentation as alternative market strategies. Journal of Marketing. v21. 3-8.http://www.equitymaster.com/research-it/ipo/maruti.html http://marketsofindia.blogspot.com/2008/ 03/ maruti-to-review-800-model-after-nano.html www.sric-bi.com e.Later the owners belonging to two dominant categories were approached for additional information to verify the results and also to explore and understand their profile variables.

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