Buying Behaviour of Car Report

8/6/2019 Buying Behaviour of Car Report

1/36

1

JAGANNATH INSTITUTE OF MANAGEMENT

STUDIES

REPORT ON

COSUMER BUYING BEHAVIOUR OF CAR

Submitted to:- Submitted by:-

Prof. Madhur Jain Nikunj Walia(roll no. 13)

Pramod Semwal(roll no. 14)


2/36

2

ACKNOWLEDGEMENT

We wish to express our sincere thanks to prof. Mr. Madhur jain,

visiting faculty- jagannath institute of management study,

greater noidafor giving us the opportunity to work on the

marketing research of consumer buying behaviour of car. This

has given us the insight of how consumers buying behaviour

got influenced by certain factors. I got the opportunity to do this

project in noida and greater noida in various colleges and

societies. The project is the important part of our study andgives us a real practical exposure to study the consumers

buying behaviour in corporate world.


3/36

3

INDEX

S. No. Topics1 Introduction 4

2 History 5

3 Executive summary 6

4 Indian car industry 7

5 Objective 10

6 methodology 10

7 Descriptive 11

8 Analysis 13

9 Conclusion3

410 Questionnaire 35

11 Bibliography 36


4/36

4

Introduction

The Automotive industry in India is one of the largest in the world and one of the

fastest growing globally. India manufactures over 11 million vehicles (including 2

wheeled and 4 wheeled) and exports about 1.5 million every yea r. India's passengercar and commercial vehicle manufacturing industry is the seventh largest in the

world, with an annual production of more than 2.6 million units in 2009 . In 2009, India

emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South

Korea, and Thailand. As of 2009, India is home to 40 million passenger vehicles and

more than 2.6 million cars were sold in India in 2009 (an increase of 26%), making

the country the second fastest growing automobile market in the world. According to

the Society of Indian Automobile Manufacturers, annual car sales are projected to

increase up to 5 million vehicles by 2015 and more than 9 million by 2020 .

A chunk of India's car manufacturing industry is based in and around Chennai,

also known as the "Detroit of India" with the India operations of BMW, Ford,Hyundai and Nissan headquartered in the city. Chennai accounts for 60 per cent of

the country's automotive exports. Gurgaon and Manesar in Haryana are hubs where

all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor

near Pune, Maharashtra is another vehicular production hub with companies

like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata

Motors, Mercedes Benz, Fiat and Force Motors having assembly plants in the

area. Ahmedabad with the Tata Nano plant, Halol with General

Motors, Aurangabad with Audi, Kolkatta with Hindustan Motors, Noida with Honda

and Bengaluru with Toyota are some of the other automotive manufacturing regions

around the country


5/36

5

HISTORY

The first car ran on India's roads in 1897. Until the 1930s, cars were imported

directly, but in very small numbers.

Embryonic automotive industry emerged in India in the 1940s. Mahindra &

Mahindra was established by two brothers as a trading company in 1945, and began

assembly of Jeep CJ -3A utility vehicles under licence from Willys. The Company

soon branched out into the manufacture of light commercial vehicles (LCVs) and

agricultural tractors.

Following the independence, in 1947, the Government of India and the private

sector launched efforts to create an automotive component manufacturing industry to

supply to the automobile industry. However, the growth was relatively slow in the

1950s and 1960s due to nationalisation and the licence raj which hampered theIndian private sector. After 1970, the automotive industry started to grow, but the

growth was mainly driven by tractors, commercial vehicles and scooters. Cars were

still a major luxury. Japanese manufacturers entered the Indian market ultimately

leading to the establishment of Maruti Udyog A number of foreign firms initiated joint

ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for

building motorcycles and light commercial-vehicles. It was at this time that the Indian

government chose Suzuki for its joint-venture to manufacture small cars. Following

the economic liberalisation in 1991 and the gradual weakening of t he license raj, a

number of Indian and multi -national car companies launched operations. Since then,

automotive component and automobile manufacturing growth has accelerated to

meet domestic and export demands.

Following economic liberalization of India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed

restrictions. Several Indian automobile manufacturers such as Tata motors, Maruti

Suzuki and Mahindra and Mahindra, expanded their domestic and international

operations. India's robust economic growth led to the further expansion of its

domestic automobile market which has attracted significant India -specific

investment by multinational automobile manufacturers In February 2009, monthly

sales of passenger cars in India exceeded 100,000 units and has since grown

rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to

2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of

Indian households owning a car in 2009 (whereas this figure reaches 80% in


6/36

6

Switzerland for example) this progression is unlikely to stop in the coming decade.

Congestion of Indian roads, more than market demand, will likely be the limiting

factor.

Executive summary

Competitive pressures and increasing complexity have led automotive companies to

look for an edge wherever they can find it. Improved consumer insight into vehicle

shopping and buying behaviour can provide that valuable advantage. Our report

contains insight that can help vehicle manufacturers and dealers develop andexecute more effective strategies in areas such as sales, marketing and advertising,

after sales service, Customer Relationship Management (CRM) and

manufacturer/dealer collaboration.


7/36

7

AUTOMOBILE INDUSTRY IN INDIA

In India there are 100 people per vehicle, while this figure is 82 in China. It is

expected that Indian automobile industry will achieve mass motorization status by2014.Industry overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry

of India has come a long way. During its early stages the auto industry was overlooked by the then

Government and the policies were also not favourable. The liberalization policy and various tax reliefs

by the Govt. of India in recent years have made remarkable impacts on Indian Automobile Industry.

Indian auto industry, which is currently growing at the pace of around 18% per annum, has become a

hot destination for global auto players like Volvo, General Motors and

Ford.

A well developed transportation system plays a key role in the development of an economy, and India is

no exception to it. With the growth of transportation system the Automotive Industry of India is also

growing at rapid speed, occupying an important place on the 'canvas' of Indianeconomy. Today Indian

automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03

broad categories: Cars, two-wheelers and heavy vehicles.

The first automobile in India rolled in 1897 in Bombay.

Foreign players are adding to their investments in Indian auto industry.

Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).

Tata Motors dominates over 60% of the Indian commercial vehicle market.

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

India is the fourth largest car market in Asia - recently crossed the 1 million mark.


8/36

8

Cars dominate the passenger vehicle market by 79%.Maruti Suzuki has 52% share in passenger

cars and is a complete monopoly in multi-purpose vehicles. In utility vehicles Mahindra holds

42% share. In commercial vehicle,Tata Motors dominates the market with more than 60% share.

Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.


9/36

9

MajorManufacturers in Automobile Industry

Maruti Udyog Ltd. General Motors India

Ford India Ltd. Eicher Motors

Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco


10/36

10

Objective:-

1. General objectives

y To identify the factors that influences the customer topurchase the four-wheeler.

y To find out how the customers are motivated andencourage purchasing four-wheeler.

2. Specific objectives

y To identify the factor influence the customer on the basis

of price, brand, feature, look, mileage, engine power ,

after sale service, safety feature, location of the car

dealer, advertisement and promotions

y To identify the personal factors influence the customer onthe basis of age, income level, occupation and status.

Methodology:-

The project is based on primary data

Primary data:-

a) Information from sample size of 68 respondents.b) Questionnaire design- close ended questions

c) Research place Noida and Greater noida


11/36

11

DESCRIPTIVES

Statistics

gender age occupation

N Valid 68 68 68

Missing 0 0 0

Mean 1.2059 2.3971 2.7353

Median 1.0000 2.0000 3.0000

Mode 1.00 2.00 3.00

Std. Deviation .40735 .79438 .74549

Variance .166 .631 .556

Skewness 1.488 1.914 -1.305

Std. Error of Skewness .291 .291 .291

Kurtosis .219 2.610 1.341

Std. Error of Kurtosis .574 .574 .574

Range 1.00 3.00 3.00

FRQUENCY TABLE

Gender

Frequency Percent Valid Percent

Cumulative

Percent

Valid male 54 79.4 79.4 79.4

female 14 20.6 20.6 100.0

Total 68 100.0 100.0


12/36

12

Age


Cumulative

Percent

Valid 18-25 52 76.5 76.5 76.5

26-35 7 10.3 10.3 86.8

36-50 7 10.3 10.3 97.1

above 50 years 2 2.9 2.9 100.0

Total 68 100.0 100.0

Occupation


Cumulative

Percent

Valid service 8 11.8 11.8 11.8

business 6 8.8 8.8 20.6

student 50 73.5 73.5 94.1

housewife 4 5.9 5.9 100.0

Total 68 100.0 100.0


13/36

13

ANALYSIS

1) Age:- FOUR CATEGORY

OPTIONS NO. OF RESPONDENT PERCENTAGE18-25 years 52 76.5%

26-35 years 07 10.3%36-50 years 07 10.3%

Above 50 years 02 2.9%

Above table presenting the percentage of respondent participated in the survey indifferent age group.

Above figure presenting the percentage of respondent participated in the survey indifferent age group.


14/36

14

Interpretation:- from the above diagram we can find out that 76.5% people are agebetween 18-25 years and similarly 10.3% people are age between 26 -35 years and10.3% people comes between 36-50 years and 2.9% people are above 50 years.

2) Onthe basis of gender:-

MALE 54 79.4%FEMALE 14 20.6%

Interpretation:-

From the above figure it is clearly presented that 79.4% maleand only 20.6% female has given their views or express their buying behaviour aboutcar.

3) Occupation:-

OCCUPATION NO OF RESPONDENT PERCENTAGE

Service 8 11.8%

Business 6 8.8%

Student 50 73.5%

Housewife 4 5.9%


15/36

15

Above table and figure presenting the percentage of respondent participated insurvey.

Interpretation:-

The above diagram shows that 11.8% people are doing service, 8.8% are businesspeople, 73.5% people are students and only 5.9% are housewife.

4) According to you which ofthese factors are affecting car

purchasing decision?


16/36


17/36

17

4.2) suggestions from the family were taken: -

Suggestion from family


Cumulative

Percent

Valid strongly agree 24 35.3 35.3 35.3

agree 33 48.5 48.5 83.8

neutral 9 13.2 13.2 97.1

disagree 2 2.9 2.9 100.0

Total 68 100.0 100.0

Interpretation:- From the above diagram it is clear that only 44.1% people stronglyagree, 48.5% which is largest agreed, 5.9% remain neutral and only 1.5% disagreein taking suggestion from the family members.


18/36

18

4.3) income level:-

Income level


Cumulative

Percent


agreee 27 39.7 39.7 95.6

neutarl 3 4.4 4.4 100.0

Total 68 100.0 100.0

Interpretation:- From the above table and graph it is clear that 55.9% peoplestrongly agreed to purchase car according to their income level and 39.7%agree, 4.4% remain neutral.


19/36

19

4.4) brand name:-

Brand name


Cumulative

Percent


agree 21 30.9 30.9 80.9

neutral 11 16.2 16.2 97.1

disagree 2 2.9 2.9 100.0

Total 68 100.0 100.0

Interpretation:- From the above diagram it is clear that 50% people strongly agreeto purchase car according to brand value. 30.9% also agree, 16.2% remain neutraland only 2.9% disagree.


20/36

20

4.5) status symbol:-

Status symbol


Cumulative

Percent


agree 28 41.2 41.2 77.9

neutral 11 16.2 16.2 94.1

disagree 3 4.4 4.4 98.5

strongly disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above diagram it is clear that 36.8% people stronglyagree to purchase car for status symbol car. 41.2% also agree, 16.2% remainneutral and only 5.9% disagree.


21/36

21

4.6) After sale service:-

After sale service


Cumulative

Percent


agree 26 38.2 38.2 88.2

neutral 6 8.8 8.8 97.1

disagree 1 1.5 1.5 98.5


Total 68 100.0 100.0

.

From the above table and diagram it is presented that 50% people strongly agree to

take purchase decision according to the after sale service of a company. About

38.2% also agree upon the same behaviour, 8.8% remain neutral, 1.5% disagree to

this fact and also 1.5% strongly disagree


22/36

22

4.7) instalment payment facility:-

Instalment payment facility


Cumulative

Percent


agree 29 42.6 42.6 83.8

neutral 8 11.8 11.8 95.6

disagree 2 2.9 2.9 98.5


Total 68 100.0 100.0

From the above table it is clear that 42.6% people agree that they like to purchasecar on instalment facility, about 41.2% strongly agree to it, 11.8% people didnt sayanything, 4.3% disagree to it.


23/36


24/36

24

4.9) engine power:-

Engine power


Cumulative

Percent


agree 21 30.9 30.9 92.6

neutral 3 4.4 4.4 97.1

disagree 1 1.5 1.5 98.5


Total 68 100.0 100.0

Interpretation:- From the above table it is clear that 61.8% of the people strongly

agree to purchase car with powerful engine, 30.9% people also agree upon thesame view, 4.4% people remain neutral and only 3%% disagree to it.


25/36

25

4.10) Looks:-

Look


Cumulative

Percent


agree 14 20.6 20.6 89.7

neutral 6 8.8 8.8 98.5

disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is clearly depicted that mostly i.e. 69.1% ofpeople strongly agree to purchase car of good look, 20.6% also agree upon thesame behaviour, 8.8% people didnt say anything and very few i.e. 1.5% disagree toit.


26/36

26

4.11) Easily availability of spare parts:-

Easily available spare parts


Cumulative

Percent


agree 21 30.9 30.9 83.8

neutral 7 10.3 10.3 94.1

disagree 4 5.9 5.9 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is presented that 52.9% people stronglyagree that their purchasing behaviour get influenced by availability of spare parts,30.9% also agree with the same fact, 10.3% remain neutral and only 5.9% disagree.


27/36

27

4.12) availability of service stations:-

Availability of service station


Cumulative

Percent


agree 24 35.3 35.3 83.8

neutral 8 11.8 11.8 95.6

disagree 2 2.9 2.9 98.5


Total 68 100.0 100.0

From the above table it is clear that 48.5% people strongly agree about theavailability of service station before buying the car and 35.3% agree to the samefact, 11.8% remain neutral and only 2.9% disagree and 1.5% strongly disagree.


28/36

28

4.13)Technology:-

Technology


Cumulative

Percent


agree 24 35.3 35.3 92.6

neutral 4 5.9 5.9 98.5

disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is presented that 57.4% strongly agree onthe technology of the car,35.3% also agree on the same,5.9% remain neutral andonly 1.5% disagree.


29/36

29

4.14) family need:-

Family need


Cumulative

Percent


agree 35 51.5 51.5 85.3

neutral 7 10.3 10.3 95.6

disagree 3 4.4 4.4 100.0

Total 68 100.0 100.0

Interpretation:- from the above table and graph it is clearthat85.3% people

strongly agree that they will buy car for family need purpose. 10.3% people remain

neutral and 4.4% disagree.


30/36

30

4.15) Government policies and regulation: -

Govt policies and regulation


Cumulative

Percent

Valid Strongly agree 14 20.6 20.6 20.6

Agree 18 26.5 26.5 47.1

Neutral 27 39.7 39.7 86.8

Disagree 7 10.3 10.3 97.1


Total 68 100.0 100.0

Interpretation:- above table and diagram shows that about 57% people consider the

govt policies and regulation one of the key influencer factor in buying decision of car. A

large segment i.e. about 40% didnt shows their view and only 5.3% disagree to it.


31/36

31

4.16) Festive season:-

Festive season


Cumulative

Percent


Agree 24 35.3 35.3 63.2

Neutral 14 20.6 20.6 83.8

Disagree 10 14.7 14.7 98.5


Total 68 100.0 100.0

Interpretation:- From the above table and diagram it is clear that 27.9% people

strongly agree to buy car in festive season, 35.3% also agree to the same fact, 20.6%

didnt say anything and about 16% disagree to it.


32/36

32

4.17) Advertisement and promotion:-

Advertisement and promotions


Cumulative

Percent


Agree 26 38.2 38.2 69.1

Neutral 15 22.1 22.1 91.2

Disagree 6 8.8 8.8 100.0

Total 68 100.0 100.0

Interpretation:- From the above table and diagram it is clear that about 69.1% people

agree that the advertisement and promotions of car is one of the driving force which

influence their purchasing behaviour of car. 22.1% people didnt say anything and

8.8% disagree to it.


33/36

33

4.18) safety feature:-

Safety feature


Cumulative

Percent


Agree 19 27.9 27.9 89.7

Neutral 5 7.4 7.4 97.1

Disagree 2 2.9 2.9 100.0

Total 68 100.0 100.0

Safety feature:- From the above diagram it is clear that safety feature is one of the

factor which influence consumers purchase behaviour. 61.8% people strongly agree

with this fact, 27.9% only agree to it, 7.4% remain neutral and 2.9% disagree to it


34/36

34

CONCLUSION

On the basis of data gathered from the customer survey we concluded that:-

y 82.4% people considered mileage most important.

y 80.9% people go for brand name.

y 92.6% people considered price as most sensitive in purchasing decision.

y 92.7% people considered engine power important while purchasing vehicle.

y 89.7% people get attracted by look of the car.

y 89.7% people give preference to safety features present in the car.

y 92.6% people says that modern or advance technology leads them topurchase the car.

From above data overall approximately 89% people buying behaviour of car getmotivated by price, look, engine power, brand name, technology, mileage and by

their income level.


35/36

35

Questionnaire

(Consumer buying behaviour of car)

Demographic factor

Gender m male female

Age below 18 18-25 26-35 36-50 above 50 years

Occupation

Service business student housewife

According to you which of these factors are affecting car purchasing decision in noida and greater

noida. Please fill according to instruction in bracket below.

(SA- strongly agree, A- agree, N- neutral, DA- disagree, SDA- strongly disagree)

Si no. Statement SA A N DA SDA

1 Price of the car

2 suggestion from the family were

taken while purchasing a car

3 Family need

4 Income level

5 Brand name

6 Status symbol

7 Festive season

8 Special family programs,9 Family member and friend circle

10 Government policies and regulations

11 Advertisement and promotions

12 After sale service

13 Instalment payment facility

14 Location of the car dealers

15 Information provided by sales person

16 Availability of variety of cars in one

roof

17 Information provided by various car

related magazines.

18 Mileage19 Engine Power

20 Looks

21 Safety feature

22 Easily availability of spare parts

23 Availability of service stations

24 Technology


36/36

Bibliography

y

Author R.P. Mishra, Text book research methodology.y Marketing research text note, by prof. Mr. Madhur jain

y Internet website cargadi.com, www.skoda-auto.co.in, www.india.ford.com,www.google.com

y Wikipedia.

y SPSS software.

y E-book of spss statistics base user guide.

Buying Behaviour of Car Report

Documents

Transcript of Buying Behaviour of Car Report