Buying Preference of Customer Regarding Maruti Cars

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A “Dissertation Report” ON Buying preference of customers and customer satisfaction regarding selected A2 segment cars (Maruti Alto,Maruti Zen, Maruti Wagon-R, Hyundai Santro, Tata Indica) with regard to price, fuel efficiency, power, engine displacement and top speed in case of customers in the age group 30-40 years” (A Case Study of Kurukshetra) Submitted to: Kurukshetra University, Kurukshetra in partial fulfillment for the degree of Master of Business Administration (Session 2005-2007) Under the supervision of:- Submitted By:- Dr.Vikas Daryal Gagandeep Singh

Transcript of Buying Preference of Customer Regarding Maruti Cars

Page 1: Buying Preference of Customer Regarding Maruti Cars

A “Dissertation Report”

ON

Buying preference of customers and customer satisfaction regarding selected A2 segment cars (Maruti Alto,Maruti Zen, Maruti Wagon-R, Hyundai Santro, Tata Indica) with regard to price, fuel efficiency, power, engine displacement and top speed in case of customers in the age group 30-40 years”

(A Case Study of Kurukshetra)

Submitted to:Kurukshetra University, Kurukshetra in partial fulfillment

for the degree of Master of Business Administration (Session 2005-2007)

Under the supervision of:- Submitted By:- Dr.Vikas Daryal Gagandeep SinghAssistant Professor Roll No. 1105/05H.O.D.(M.B.A.) Regn.No. 2K-SETK-448

TIMT University roll no. MBA-final.

Tilak Raj Chadha Institute of Management & Technology, (Approved by AICTE and Affiliated to Kurukshetra University, Kurukshetra ) Yamuna Nagar-135001

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ACKNOWLEDGEMENT

There is always a sense of gratitude which one expresses for others

for their help & supervision in achieving the goals. I too express my

deep gratitude to each & everyone who has been helpful in

completing the dissertation report successfully.

I express my sincere gratitude to Dr. Vikas Daryal (Assistant

Professor, HOD-MBA, TIMT) without whose guidance, keen interest

and regular encouragement my project would not have been

compiled. I would also like to grab the opportunity to thank Dr. R.K.

Garg (Director) for his helping hand in the compilation of the report.

Last but not the least I would like to thank my parents for their

support.

Gagandeep Singh

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EXECUTIVE SUMMARY

This project is about the buying preference of customers and

customer satisfaction regarding selected A2 segment cars(Maruti

Alto,Maruti Zen, Maruti Wagon-R, Hyundai Santro, Tata Indica) with

regard to price, fuel efficiency, power, engine displacement and top

speed in case of customers in the age group 30-40 years in

Kurukshetra.

The report starts with the introduction, which includes the profile of

study and the significance of study. Profile of the study includes the

company profile and the profile of the selected A2 segment cars

(Maruti Alto, Maruti Zen, Maruti Wagon-R, Hyundai Santro,Tata

Indica).It also includes brief description about the customer

satisfaction and customer expectations.

After introduction, come the objectives of study and literature review.

Literature review includes the literature reviewed while doing this

project. Next there comes research methodology which includes

sampling and sampling design, analytical tools used, data collection,

hypothesis study and the limitations of study. Data collection includes

the sources of data collection. Limitations of study include the

limitations faced while doing this project. In the last there come

results and findings followed by recommendations, bibliography and

annexure.

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CONTENTS

Serial No. Page No.

1. Introduction

a) Profile of study

b) Significance of study

2. Objective of the study

3. Literature Review

4. Research Methodology

a. Sampling & Sample Design

b. Analytical Tools

c. Data Collection

d. Hypothesis Study

e. Limitations of the study

5. Result & Discussions/Findings

6. Recommendations

7. Bibliography

8. Annexure

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PROFILE OF STUDY

In this competitive environment, no cars manufacturing company can

even survive in this fast changing market place without knowing its

products strengths and weaknesses. It has to fortify itself against

threats from 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 likewise for each customer’s

expectations.

This project is about the buying preference of customers and

customer satisfaction regarding selected A2 segment cars(Maruti

Alto,Maruti Zen, Maruti Wagon-R, Hyundai Santro, Tata Indica) with

regard to price, fuel efficiency, power, engine displacement and top

speed in case of customers in the age group 30-40 years in

Kurukshetra.

Car Segments as per SIAM

SIAM (Society of Automotive Manufactures), in April 2002, introduced

the following length based classification of cars:

•Segment A1 (mini) – cars having a length of up to 3,400mm

•Segment A2 (compact) – cars having a length of 3,401-4,000mm

•Segment A3 (mid-size) – cars having a length of 4,001-4,500mm

•Segment A4 (executive) – cars having a length of 4,501-4,700mm

•Segment A5 (premium) – cars having a length of 4,701-5,000mm

•Segment A6 (Luxury) – cars having a length of more than 5,000mm

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In A2 segment, car industry in India is mainly dominated by three

major players:

MARUTI SUZUKI

HYUNDAI

TATA MOTORS

Besides these there are others players like HINDUSTAN MOTORS.

MARUTI ALTO

FEATURES

SAFETY

Side impact door beams Rear door child safety lock Clear lens headlamps Rear caps Collapsible steering column High rigid monocoque frame made of high tensile steel Front & rear seat belts Booster assisted brakes Rear seat head restraints

MILEAGE

Most fuel efficient car in A2 segment (Petrol) 4-valves-per-cylinder MPFI engine 32-bit computer technology 47bhp & 796cc engine 5 speed transmission Low cost of ownership Low friction engine

COMFORT

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Super cool A.C. Electronic power steering Convenient cup holders Excellent services backup

PRICE

Variant Non Metallic Price Metallic Price Alto Std

234328 237714

Alto Lx 267845

271231

Alto XFUN Lx--

279231

Alto Lxi 286381

289767

Alto XFUN Lxi--

297759

SPECIFATIONS

WEIGHT

Kerb weight ALTO 720 kg ALTO LX/ALTO LXi 735 kg

Gross vehicle weight 1165 kg

SUSPENSION SYSTEM

Front McPherson Strut with torsion type roll control device

Rear Coil spring gas filled shock absorbers with three link rigid axle and isolated trailing arms

ENGINE

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Swept volume 796cc

Engine type FC engine, 4 valves Per cylinder

No. of cylinders 3

Engine control 32 bit computer

Maximum power 47 ps @ 6200 rpm

Maximum torque 62 Nm @ 3000 rpm

Transmission 5 speed, all synchromesh, manual

SEATING

Capacity 5 persons

TYRES

Tyre size 145 / 80 R12

DIMENSIONS

Overall length 3495 mm

Overall width 1475 mm

Overall height 1460 mm

Wheelbase 2360 mm

Tread Front 1295 mm

Rear 1290 mm

Minimum turning 4.6 m radius

Ground clearance 160 mm

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VARIENTS

EXTERIOR Alto Alto LX Alto LXiFront Bumper √ √ √Dynamic Front Grill √ √ √S mark √ √ √INTERIORFabric seats √ √Moulded carpet √ √ √Luggagecompartment carpet

√ √ √

Moulded door trims √ √ √Cabin lamp √ √ √Electronic Tripmeter √ √ √Floor front console with cup holders

√ √

Floor rear console √ √ √Glove Box √ √ √Front door pockets √ √ √COMFORTAC with heater √ √Rotary control for AC √ √Tinted glasses √ √Outside rear view mirror (RHS)

√ √ √

Remote fuel lid opener √ √Electronic power steering

SAFETYClear lens headlamps √ √ √Head lamp leveling device

√ √ √

Clear lens tail lamps √ √ √Collapsible steering column

√ √ √

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HYUNDAI SANTRO

KEY TECHNICAL SPECIFICATIONS AND FEATURES

DIMENSIONS

Overall Length (mm) 3565 Overall Width (mm) 1525 Overall Height (mm) 1590 Wheelbase (mm) 2380 Ground Clearance (mm) 164 (M/T)146 (A/T) Front Track 1315 Rear Track 1300 Min Turning Radius (m) 4.4 Kerb Weight (Kg) 854(M/T) 868(A/T) Fuel Tank capacity 35

ENGINE

No. of cylinders and valves 4,12 Displacement (cc) 1086 Fuel Petrol Maximum Power (ps@rpm) 63@5500 Maximum Torque (Kgm@rpm) 9.8 @ 3000

SUSPENSION

Front Suspension McPherson Strut

Rear Suspension Torsional Beam Axle

Rear Shock Absorbers Hydraulic

BRAKES

Front Ventilated Disc

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Rear Drum

TYRE

Size 155/70 R13VARIENTS

SAFETY &

SECURITY

XK XK XL XO AT

Child Safety

Rear Door

Locks

S S S S S

Engine Sub

Frame

S S S S S

Seat Belts -

Front

S S S S

Seat Belt -

Rear

3 3 3 3 3

HMSL S S S S S

Dual Horn S S S S S

Day & Night

Mirror

S S S S

CLS 4 doors 4 doors 4 doors

HLLD S S S S S

RHD Controls S S S S S

EXTERIOR

Grey interior

Key colour

S S S S S

Clear

Headlamps

S S S S S

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Clear Rear

Lamps

S S S S S

ORVM - Psg

Side

S S S S

ORVM - Dr

Side

S S S S S

Tinted Glass S S S S

B/C Bumper S

Radiator

Grille

Chrome1 Chrome1 Chrome1 Chrome2 Chrome1

Wheel Cover Half Half Half Half Half

INTERIOR

No. of Spokes

in Steering

Wheel

3 3 3 3 3

Front

Speaker Grill

Dash

board

Dash

board

Dash

board

Dash

board

Dash

board

Rear Speaker

Grill

S S S S S

Ash Tray S S S S S

COMFORT

A/C S S S S

Heater S S S S S

Power

steering

S S S

Power

Windows -

Front

S S S

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Remote Fuel

Lid Opener

S S S S S

Remote Tail

Gate Release

S S S S S

Clutch Foot

Rest

S S S S S

MARUTI ZEN

SPECIFICATIONS (in mm)

Length 3495

Width 1475 (LX, LXi), 1495 (VXi)

Height 1595

Wheel Base 2360

Tread, Front 1295

Tread , Rear 1290

Turning Radius (m) 4.6

Seating Capacity 5 Persons

Ground Clearance 165

Max Power (bhp/rpm) 64 / 6,200

Max Torque (Nm/rpm) 84 / 3,500

Engine F10D

Engine Capacity (cc) 1061

Engine Type 4 cyl

Transmission 5MT

Drive 2WD

Clutch Type Cable

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Kerb Weight (kg) 855 (LX, LXi), 875 (VXi)

GVW (kg) 1275

Tyre Size 145 / 70 R13 (LX, LXi),

155 / 65 R13 (VXi)

Fuel Tank Capacity (lt) 35

Front Brake Ventilated Disc

Rear Brake Drum

Transmission Type Manual - 5 Speed, All

Synchromesh with two overdrive gears

Suspension System Front : McPherson Strut with Torsion

type roll control device

Rear : Coil Spring, Gas filled shock

absorbers with three link rigid

and isolated trailing arm

Power Steering Type: Electronic Power Steering (LXi & VXi)

VARIENTS

SAFETY & SECURITY LX LXi VXiSRS Airbag (Driver Side) ** - - √ABS ** - - √Side Door Beams √ √ √High Mount Stop Lamp √ √ √Rear Door Child Lock √ √ √Front Wiper (2 Speed + Intermittent) √ √ √Back Door Defogger - - √Steering Lock √ √ √Power Door Locking - √

(5Dr)√

(5Dr) (Keyless

EXTERIORBody Coloured Bumpers - √ √

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Body Side Moulding - - √Wheel Cap CTR CTR FULLBlack Out Film - - √Front Fog Lamps - - √Body Coloured Side Door Handles - - √Body Coloured Outside Door Mirrors - - √Body Coloured Back Door Handle - √ √Antenna √ √ √COMFORTPower Windows - FR FR/RRPower Steering - √ √Front Door Pocket √ √ √Remote Keyless Entry System - - √Air Conditioning √ √ √Remote Fuel Lid Opener √ √ √Vanity Mirror (Sun Visor) - - (Co-

driver)Grip Assistant (3 nos) √ √ √Co-driver Side Front Door Lock √ √ √Centre Console with Cup Holders √ √ √IP Pocket √ √ √Tachometer - - √Lights-off & Key Reminder Chime - - √Accessory Socket - - √Ash Tray √ √ √ABC Pillar Trims √ √ √Side Door Trims Moulded Moulded MouldedBack Door Trim Moulded Moulded MouldedFront Seat Adjustable Head Restraint √ √ √Rear Seat Adjustable Head Restraint √ √ √Front Seat Back Pocket (Driver Seat) √ √ √Steering Wheel PU(3

Spoke)PU(3

Spoke)PU(3

Spoke

PRICE

Variant Non Metallic Price Metallic Price Zen Lx 321819 325218Zen Lxi 350810 354209Zen Vxi 375828 379226Zen Vxi ABS 403928 407326

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MARUTI WAGON-R

SPECIFICATIONS

TRANSMISSIONType Manual (LX, LXi, VXi) - 5 speed  All-synchromesh with two overdrive gears  Automatic (AX) - 3 speedCAPACITY Seating Capacity 5 personsFuel Tank Capacity 35 litres

DIMENSIONS IN MM. Length 3520Width 1490 (VXi), 1475 (LX, LXi)Height 1660 (without roof rail), 1690 (with

roof rail)Wheelbase 2360Front Track 1295Rear Track 1290Min Ground Clearance

165

WEIGHT IN KG. Kerb Weight 825 (LX, LXi)  850 (VXi)  840 (AX)Gross Vehicle Weight

1250 (LX, LXi, VXi)

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PRICE

Variant Non Metallic MetallicWagonR Lx 329003 332402WagonR Lx LPG 350639 354038WagonR Lxi 354533 357932WagonR Vxi 378036 381434WagonR Lxi LPG 378610 382009WAGONR Vxi ABS 408034 411433WagonR Autometic 449778 453177

ENGINE Swept Volume 1061 ccEngine Type 4 cylinder in line, FC Engine

4 Valves per cylinder, MPFI Engine Control 32-Bit Electronic Control Module

(ECM)Max. Power, bhp 64@6200 rpmMax. Torque, Nm 84@3500 rpm

SUSPENSION SYSTEMFront McPherson Strut with torsion type roll control deviceRear Coil spring, gas-filled shock absorbers with three-link

rigid axle and isolated trailing arms

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TATA INDICA

SPECIFICATIONS

Engine Gearbox Power

(bhp)

Torque

(Nm)

Top

Speed

Fuel

Tank

Xeta GLE 4cyl,1405cc 5M 70 121 150 37

Xeta GLG 4cyl,1405cc 5M 75 121 150 37

Xeta GLS 4cyl,1405cc 5M 70 121 150 37

Xeta GLX 4cyl,1405cc 5M 70 121 150 37

DL 4cyl,1405cc 5M 53.5 85 37

DLE 4cyl,1405cc 5M 53.5 85 37

DLG(Turbo-

diesel)

4cyl,1405cc 5M 68 130 37

DLS 4cyl,1405cc 5M 53.5 85 37

DLX(Turbo

diesel)

4cyl,1405cc 5M 68 130 37

Air

bags

ABS Tubeless

tyres

Central

Locking

Power

steering

Power

windows

Xeta GLE No No No No No No

Xeta GLG No No No No Yes No

Xeta GLS No No No No Yes Fr

Xeta GLX No No No Yes Yes Yes

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DL No No No No No No

DLE No No No No No No

DLG(Turbo

- diesel)

No No No No Yes Fr

DLS No No No No Yes No

DLX(Turbo

diesel)

No No No Yes Yes Yes

CUSTOMER SATISFACTION

Customer - The term is used to refer to someone who regularly

purchases from a particular store or company.

Traditionally the word ‘Customer’ was used to define people

whom the organization dealt with externally. Though the word

‘Customer’ is used as a single unit, purchases could be made both by

the individual and the group.

Satisfaction is a person’s feelings of pleasure or disappointment

resulting from comparing a product’s perceived performance in

relation to his or her expectation

The most successful companies are aiming for high satisfaction

Because customers who are just satisfied still find it easy to switch,

when a better offer comes along. Those who are highly satisfied are

much less ready to switch. High satisfaction or delight creates an

emotional affinity with the brain, not just a rational preference. The

result is high customer’s loyalty.

In this highly competitive world customers play a very

important role. Thus, if a company wants to survive then it should

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look forward to the determinants of customer satisfaction. Though it is

a very subjective issue that differs from individual to individual yet,

identifying some basic parameters of customer satisfaction is

important. Satisfaction is a person’s feeling of pleasure and

disappointment resulting from comparing a product’s perceived

performance in relation to his or her expectations. It is only the

customer delight that marketer aims for.

CONSUMER BEHAVIOR

Consumer-Consumer is an individual who purchases for the purpose

of individual or household consumption.

The individual who consumes or uses a product, which may or may

not be purchased by him.

Consumer Behavior can be said to be the study of how individuals

make decision on how to spend their available resources(time,

money, efforts) on various consumption related items.

Consumer Behavior may be defined as the decision process and

physical activity individuals engage in when evaluating, acquiring,

using or disposing of goods or services.

The detailed study of Consumer Behavior or Consumer Preferences

focuses on-

Who Buys products or services?

How do they buy products or services?

Where do they buy them?

How often do they buy them?

When do they buy them?

Why do they buy them?

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How often do they use them?

CUSTOMER EXPECTATIONS

How do buyers form their expectations? Their expectations are

influenced by their past buying experience, friend’s and associate’s

advice and marketers and competitor’s information and promises

In four wheeler industry dealers are the main bridge between the

company and the customer.

They come into the direct contact with customer. So, they play an

eminent role in providing customer satisfaction.

Though customer expectations are a very qualitative term and it is

very difficult to measure. In this study an effort has been made to

measure the customer expectations level. We can broadly divide the

customer expectations into two parts:-

Primary expectations

Secondary expectations

PRIMARY EXPECTATIONS

The basic or primary expectations of the customer from a car are:

Price

Fuel Efficiency

Safety

Power

Engine Displacement

Design

Brand Name

Features like: Power Steering, A.C.

SECONDARY EXPECTATIONS:

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The secondary expectations of the consumers from a car are:

Availability of spare parts

Response time to complaints

Financing schemes

After sale services

SIGNIFICANCE OF STUDY

This research is helpful for the A2 segment car manufacturers

in understanding the buying preferences of the customers with

regard to

Price

Fuel Efficiency

Power

Engine Displacement

Top Speed

This research provides an insight for the A2 segment car

manufactures on how to increase the level of customer

satisfaction with regard to :-

Price

Fuel Efficiency

Power

Engine Displacement

Top Speed.

This research is helpful for the A2 segment car

manufactures in understanding the role the advertising is playing.

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This research is helpful for the selected A2 segment car

manufacturers in knowing the features with which their customers

are satisfied.

This research is helpful for the A2 segment car manufactures in

knowing about the awareness among customers regarding A2

segment cars.

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OBJECTIVES OF THE STUDY

The objectives of the research are:

To study the buying preference of customers regarding

selected A2 segment cars with regard to :-

Fuel Efficiency

Price

Power

Engine Displacement

Top speed

To study the satisfaction level of customers regarding selected

A2 segment cars with regard to :-

Fuel Efficiency

Price

Power

Engine Displacement

Top speed

To study the different models of selected A2 segment cars

To study the brand awareness among customers regarding

selected A2 segment cars.

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Topgear1----Spotlight on the three A2 segment cars(Maruti Alto

LXI,Hyundai Santro Xing XL,Tata Indica Xeta GLS)---In this

article everything that one need to know about the three A2

segment cars i.e price, equipment, technical aspects,

performance ,the warranties, was given.

Lam Darius2---This article is about the rise in the sales of the

five A2 segment cars, i.e. Maruti Alto, Hyundai Santro ,Tata

Indica,Maruti Wagon-R, Maruti Zen, because of various factors

like price, fuel efficiency etc.

Prasad R3--- This article is about the advertising strategy

adopted by Tata Indica.Tata Indica’s launch campaign was

aimed at repositioning the Maruti 800 as an inadequate car and

position Indica as the ‘More Car’.The “More car per car

”campaigns struck a chord and the positioning stuck. In the

words of M.G. Parameswaran, Executive Director and CEO-

Mumbai, FCB-ULKA, the agency that handles the Indica

account, ”The success of Tata Indica is a combination of

various factors: a great product offering, a great entry price, a

well focused marketing and advertising strategy and the Tata

brand”

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Kothari,C.R.,RESEARCH METHODOLOGY4,-- Research in

common parlance refers to search for knowledge. It can also be

defined as a scientific and systematic search for information on

a specific topic. A research design is the arrangement of

conditions for collection and analysis of data in a manner that

aims to combine relevance to the research purpose with

economy in procedure. Decisions regarding what, where, when,

how much, by what means concerning a research study

constitute a research design. Sampling can be defined as the

Selection of some part of an aggregate or totality on the basis of

which a judgment or inference about the aggregate or totality is

made

Cooper Donald R.,Schindler Pamela S5---Broadly the sources of

data are:-

Primary Sources

Secondary sources.

Primary data are those which are collected for the first time and

thus happen to be original in character.

Primary data is collected through:-

Questionnaires

Observation Method

Schedules

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The secondary data are those which have already been collected

by someone else & which have already passed through the

statistical process.

Secondary data has been collected through:-

Magazines, Journals, Pamphlets, Websites of the selected car

companies

Gupta S.P6--- Correlation is a statistical technique which helps

in analyzing the relationship between two or more variables. It

is used in measuring the closeness of relationship between

variables.

Gupta S C,Kapoor V K7--- Correlation is a statistical technique

which helps in analyzing the relationship between two or more

variables. It is used in measuring the closeness of relationship

between variables. The study of correlation is of immense

significance in statistical analysis and practical life:

Tull Donald S,Hawkings Del I8--- Questionnaires are considered

as the heart of survey operations and therefore should be very

carefully constructed. It consists of a number of questions

printed or typed in a definite order which is filled by the

respondents on their own.

A good questionnaire should be comparatively short and simple

and the sequence shall be from easy the difficult ones.

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Advantages of questionnaires are:

They are economical.

They are free from the biasness of the interviewers.

Respondents have adequate time to give well thought to

their answers.

Respondents can be reached conveniently.

Large samples can be used and therefore the results are

more dependable.

Schiffman Leon G, Kanuk Leslie Lazar9---- Study of the

customer behavior is the study of how individuals make

decisions to spend their available resources (Time, Money and

Efforts) on consumption related items. It includes the study

what they buy, whey they buy it, when they buy it, where they

buy it, how often they buy it and how often they use it. The

primary purpose for the study consumer behavior as apart of

marketing curriculum is to understand how and how customers

make their purchase decisions. There insights enable

marketers to design more effective marketing strategies.

Nair Suja R10---The success of the firm will be determined by

how effective it has been in meeting the diverse customer

needs and wants by treating each customer as unique and

offering products and services to suit his/her needs

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RESEARCH

Research refers to a search for knowledge. Research is scientific and

systematic search for pertinent information on specific topic.

Research methodology is a way to systematically solve the

research problem

Research Methodology in a way is a written game plan for conducting

research. Research methodology may have dimensions. It includes

research methods and also considers the logic behind the methods

used in the context of the study. It may also be understood as the

science of the study and minimizes the degree of uncertainty of

making wrong choices. It helps to understand assumptions underlying

various techniques and the criteria by which they can decide that

certain techniques will be applicable to certain problems and others

will not.

Therefore in order to solve a research problem it is necessary to

design a research methodology for the easy and accurate solution of

the problem.

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SAMPLING AND SAMPLING DESIGN

SAMPLING: Sampling can be defined as the selection of some

part of an aggregate or totality on the basis of which a judgment or

inference about the aggregate or totality is made. In other words it is

the process of obtaining information about an entire population by

examining only a part of it.

ADVANTAGES

Sampling saves time and money. It is usually less expensive

and produces results at faster speed.

It provides more accurate information.

It enables to estimate the sampling errors and thus assists in

obtaining information concerning characteristics of population.

It also enables greater speed of collection of data.

The ultimate test of sample design is how well it represents the

characteristics of the population it purports to represent. In

measurement terms the sample must be valid which depends

upon –

Accuracy – It is the degree to which biasness is absent

from the sample.

Precision – It represents how well the sample represents

the population in all respect.

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SAMPLING DESIGN: A sample design is a definite plan for

obtaining a sample from a given population. It refers to the technique

or the procedure that is adopted in selecting the sampling units from

which inferences about the population is drawn. Sampling design is

determined before the collection of the data.

Steps in developing a Sampling Design:

Type of universe-The first step in developing any sample

design is to clearly define the set of objects, technically called

Universe, to be studied.

Sampling Unit-A decision has to be taken concerning a

sampling unit before selecting sample. Sampling unit may be

Geographical one such as state, village, district etc

Social unit such as family, club etc.

Construction unit such a flat, house etc.

Source list-It contains the names of all items of a universe.

Size of sample: It refers to the number of items to be selected

from the universe to constitute a sample.

Parameters of interest: Specific population parameters which

are of interest must be considered in determining the sample

design

Budgetary constraint

Sampling procedure

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CHARATERISTICS OF A GOOD SAMPLE DESIGN

Sample design must result in a truly representative sample

Sample design must be such which results in a small sampling

error

Must be viable in the context of funds available for research

study

Must be such that systematic bias can be controlled in a better

way

Must be such that results of sample study can be applied

TYPES OF SAMPLING

Probability Sampling

Non-probability Sampling

TYPES OF PROBABILITY SAMPLING

Simple random sampling

Area sampling

Systematic sampling

Stratified sampling

TYPES OF NON- PROBABILITY SAMPLING

Convenience sampling

Judgment sampling

Quota sampling

Sample Size: It indicates the number of individuals who would be

surveyed. Here the sample size is 200 respondents.

The sampling technique used in this project work is JUDGEMENT

SAMPLING. In judgement sampling the researcher’s judgement is

used for selecting items which he considers as representative of the

population.

Page 39: Buying Preference of Customer Regarding Maruti Cars

ANALYTICAL TOOLS

The analytical tools used in this project are:-

Correlation

Multidimensional Scaling

Data has been represented and analyzed through

Bar charts and Pie Charts.

XL Stat software has been used for analysis of data and

hypothesis testing.

Correlation is a statistical technique which helps in analyzing the

relationship between two or more variables.. It is used in measuring

the closeness of relationship between variables. If two or more

quantities vary in sympathy, so that the movement in one tend to be

accompanied by corresponding movements in other then they are

said to be correlated.

Utility of correlation

With the help of correlation analysis, we can measure the

degree of relationship between different variables.

An economist specifies the relationship between different

variables like demand and supply etc by way of correlation.

In business. Trader makes the estimation of costs, sales, prices

etc. with the help of correlation and makes appropriate plans.

Correlation is extremely useful in making comparative study of

two or more related phenomena and analyzing their mutual

relationship

Page 40: Buying Preference of Customer Regarding Maruti Cars

Types of Correlation

On the basis of direction of change of variables, correlation

can be classified as:

Positive Correlation

Negative Correlation

On the basis of change in proportion, correlation can be classified as:

Linear Correlation

Curvi-Linear Correlation

On the basis of number of variables studied, correlation can be

classified as

Simple Correlation

Partial Correlation

Multiple Correlation

Degree of Correlation :

Various types of degree of correlation are:

Degree of Correlation Positive Negative

Perfect Correlation +1 -1

High degree of Correlation Between +0.75 to +1 Between -0.75 to -1

Moderate Degree of

Correlation

Between +0.25 to +0.75 Between -0.25 to -0.75

Low Degree of Correlation Between +0 to +0.25 Between -0 to -0.25

Absence of Correlation 0 0

Page 41: Buying Preference of Customer Regarding Maruti Cars

dx

dy

Maruti

Zen

Hyunda

i

Santro

Maruti

Alto

Maruti

Wago

n

R

Tata

Indic

a

f fdy fdy2 fdydx

-2 -1 0 1 2

Price -2 20

6 26 4 3 59 -118 236 66

Fuel

Efficiency

-1 10 3 24 3 16 56 -56 56 -12

Engine

Displacement

(cc)

0 4 4 5 5 7 25 0 0 0

Power

(bhp)

1 5 11 7 3 9 35 35 35 0

Top Speed

(kph)

2 6 4 4 7 4 25 50 100 -2

f 45 28 66 22 39 N =

200

∑fd

y

=-89

∑fdy2

=427

∑fdydx

= 52

fdx -90 -28 0 22 78 ∑fdx=

-18

fdx2 180 28 0 22 156 ∑ fdx2

= 386

fdxdy 66 -10 0 6 -10 ∑fdxdy

= 52

80 6 0 -8 -12

20 3 0 -3 -32

0 0 0 0 0

-10 -110 3 18

-24 -8 0 14 16

Page 42: Buying Preference of Customer Regarding Maruti Cars

200 x 52 – (-18) (-89)

200 x 386 – (-18)2 200 x 427 – (-89)2

10400 - 1602

76876 77479

8798

277.26 x 278.35

8798

77175.45

r = 0.11

Value of coefficient of correlation r is equal to 0.11.This shows that there is low degree of positive correlation

Page 43: Buying Preference of Customer Regarding Maruti Cars

Multi Dimensional Scaling

Multidimensional scaling (MDS) is a method for analyzing a

(similarity or dissimilarity) proximity matrix based on a set of

observations. The purpose of MDS is to model the proximity of

observations in order to represent them as accurately as possible in a

limited number of dimensions (usually 2). There are different MDS

algorithms: XLSTAT uses the SMACOF (Scaling by MAjorizing a

COnvex Function) algorithm that minimizes the "normalized stress"

function. Furthermore, there are several MDS models (or

representation functions), i.e. several ways to transform the

dissimilarities into disparities. The disparities are the distances that

describe the optimal representation for the observations. The

difference between the disparities and the distances measured on the

representation resulting from the MDS is called the stress: the lower

the stress, the better the representation of the observations.

When the representation function simply respects the relative

order of the observations, one speaks about ordinal MDS or

nonmetric MDS. When the dissimilarities are transformed into

disparities using a specific parametric function, one speaks about

metric MDS. The following models are available in the current version

of XLSTAT:

Metric MDS

Absolute MDS: each dissimilarity dij must exactly match the

distance between points i and j in the representation space.

Page 44: Buying Preference of Customer Regarding Maruti Cars

Ratio MDS: the ratio of all distance pairs in the representation

space must correspond to the ratio of the corresponding

dissimilarities.

Interval MDS: the ratio of all differences between distances in

the representation space must correspond to the ratio of the

differences of the corresponding dissimilarities.

NONMETRIC MDS

· Ordinal (1): the order of the distances in the representation

space must correspond to the order of the corresponding

dissimilarities. If there are two dissimilarities of the same rank,

then there are no restrictions on the corresponding distances.

· Ordinal (2): identical to the previous model, but if dissimilarities

exist in the same rank, the corresponding distances must be

equal.

The stress measures the quality of the representation for a

given number of dimensions. The lower it is, the better the

representation. Various formulas have been proposed by different

authors. Although the minimization is always based on the

normalized stress, XLSTAT allows to show the results using the four

formulas defined below:

Raw stress: it gives the quality of the representation based on

the squared errors of the representation compared with the

disparities. The formula gives: where Dij is the disparity

between individuals i and j, and dij is the Euclidean distance on

the representation for the same individuals. wij is the weight of

the ij proximity (value is 1 by default).

Page 45: Buying Preference of Customer Regarding Maruti Cars

Normalized Stress: it gives the quality of the representation

based on the squared errors of the representation compared

with the disparities, divided by the sum of the squared

disparities.

Kruskal's stress 1: it gives the quality of the representation

based on the square root of the squared errors of the

representation compared with the disparities, divided by the

sum of the squared distances on the representation.

Kruskal's stress 2: it gives the quality of the representation

based on the square root of the squared errors of the

representation compared with the disparities, divided by the

sum of the squared centered distances on the representation.

The formula gives: where is the average of the distances on the

representation. This formula usually results in a stress value

that is approximately twice the value obtained for Kruskal's

stress 1.

In order to know if the representation quality is good enough, some

rules exist, mostly based on the Kruskal's stress 1. However, the

Shepard diagram that allows to compare the dissimilarities with the

distances and to observe some ruptures in the ordination of the

values is a empirical but reliable method. The more the chart looks

linear, the better the representation. The way the stress evolves when

the number of dimensions decreases is also interesting to detect if a

significant amount of information is being lost in the selected

representation

Page 46: Buying Preference of Customer Regarding Maruti Cars

DATA COLLECTION

Broadly the data has been collected through :-

Primary Sources

Secondary sources.

Primary data are those which are collected for the first time and thus

happen to be original in character.

Primary data has been collected through:-

Questionnaires

It is considered as the heart of survey operations and therefore

should be very carefully constructed. It consists of a number of

questions printed or typed in a definite order which is filled by

the respondents on their own. A good questionnaire should be

comparatively short and simple and the sequence shall be from

easy the difficult ones.

Advantages of questionnaires are:

They are economical.

They are free from the biasness of the interviewers.

Respondents have adequate time to give well thought to

their answers.

Respondents can be reached conveniently.

Large samples can be used and therefore the results are

more dependable.

Page 47: Buying Preference of Customer Regarding Maruti Cars

Before using the questionnaire method “PILOT SURVEY” was

conducted by me.

PILOT SURVEY- It is the replica or rehearsal of the main

research or survey and is carried out to find out the

weaknesses of the questionnaire and the survey techniques.

Experience gained in this way would lead to the improvement in

the study.

Sample size for pilot survey: 30 respondents.

My pilot survey was conducted on 30 respondents and I found

the results quite satisfactory and therefore went forward with

the same methodology of the study adopted.

The secondary data are those which have already been collected by

someone else & which have already passed through the statistical

process.

Secondary data has been collected through:-

Magazines

Journals

Pamphlets of the selected car companies

Websites of the selected car companies

Page 48: Buying Preference of Customer Regarding Maruti Cars

HYPOTHESIS TESTING

The chi-square test is one of the most simplest and widely used non-

parametric test in statistical work. The symbol is Greek letter chi. It

was first used by Karl Pearson’s in the year 1990. the quantity chi-

square describes the magnitude of the discrepancy between theory

and observation. XL Stat software tool has been used for

hypothesis testing.

Chi-square= Σ(O-E) 2

E

Where O=observed frequency

And E=expected frequency

Degree of freedom:

While comparing the calculated value of chi square with the table

value, we have to determine the degree of freedom. By degree of

freedom we mean the number of classes to which the values can be

assigned arbitrary or will without violating the restriction or limitations

placed.

(The calculations are shown in the annexure).

Page 49: Buying Preference of Customer Regarding Maruti Cars

LIMITATIONS OF THE STUDY

The limitations that were faced in this project work are:

Reluctance was shown by the customers in filling up the

questionnaires

Questionnaires were not returned on time despite several

reminders

There is possibility of ambiguous replies to certain questions

Omission of replies to certain questions.

Low rate of return of duly filled in questionnaires

The time period for carrying out the research was short as a

result of which many facts were left unexplored.

Page 50: Buying Preference of Customer Regarding Maruti Cars
Page 51: Buying Preference of Customer Regarding Maruti Cars

Car of which brand do you have?

Maruti Hyundai Tata

133 28 39

133, 66%28, 14%

39, 20%

Maruti

Hyundai

Tata

INTERPRETATIONS:

66% respondents have car of brand Maruti

20% respondents have car of brand Tata

14% respondents have car of brand Hyundai

Out of the following cars(Maruti Alto,Maruti Zen,Maruti

Page 52: Buying Preference of Customer Regarding Maruti Cars

Wagon R, Hyundai Santro, Tata Indica) which car do you have?

Maruti Zen Hyundai Santro Tata Indica Maruti Alto Maruti

Wagon R

45 28 39 66 22

45, 23%

28, 14%39, 20%

66, 32%

22, 11%Maruti Zen

Hyundai Santro

Tata Indica

Maruti Alto

Maruti Wagon R

INTERPRETATIONS:

32% respondents have Maruti Alto

20% respondents have Maruti Zen

14% respondents have Hyundai Santro

11% respondents Maruti Wagon R

20% respondents have Tata Indica

For how long have you been using this car?

Page 53: Buying Preference of Customer Regarding Maruti Cars

Less than

eight months

Eight months One year Two years More than

two years

35 46 28 37 54

35, 18%

46, 23%28, 14%37, 19%

54, 26%

Less than eightmonths

Eight months

One year

Two years

More than twoyears

INTERPRETATIONS:

18% respondents have been using their car for less than

eight months.

23% respondents have been using their car for eight

months.

14% respondents have been using their car for one year

19% respondents have been using their car for two years

26% respondents have been using their car for more than

two years

Which version of the Maruti Alto do you have?

Std Lx X fun LX LXi X fun LXi

Page 54: Buying Preference of Customer Regarding Maruti Cars

30 16 6 11 3

30, 45%

16, 24%

6, 9%

11, 17% 3, 5% Std

Lx

X fun LX

LXi

X fun LXi

INTERPRETATIONS:

45% respondents have Maruti Alto Std.

24% respondents have Maryti Alto LX.

9% respondents have Maruti X fun LX

17% respondents have Maruti Alto LXi

5% respondents have Maruti Alto X fun LXi

Which version of the Maruti Zen do you have?

LX LXi VXi

16 20 9

Page 55: Buying Preference of Customer Regarding Maruti Cars

16, 36%

20, 44%

9, 20%

LX

LXi

VXi

INTERPRETATIONS:

36% respondents have Maruti Zen LX Std.

44% respondents have Maryti Zen LXi.

9% respondents have Maruti Zen VXi

Which version of the Maruti Wagon R do you have?

LX LXi VXi

8 9 5

Page 56: Buying Preference of Customer Regarding Maruti Cars

8, 36%

9, 41%

5, 23%

LX

LXi

VXi

INTERPRETATIONS:

36% respondents have Maruti Wagon R LX.

41% respondents have Maryti Wagon R LXi.

23% respondents have Maruti Wagon R VXi

Which version of the Tata Indica do you have?

DLG(Turbo

Diesel)

Xeta GLF Xeta GLS DL DLF

6 15 9 5 4

Page 57: Buying Preference of Customer Regarding Maruti Cars

6, 15%

15, 39%9, 23%

5, 13%4, 10% DLG(Turbo Diesel)

Xeta GLF

Xeta GLS

DL

DLF

INTERPRETATIONS:

15% respondents have Tata Indica DLG(Turbo Diesel).

39% respondents have Tata Indica Xeta GLF

23% respondents have Tata Indica Xeta GLS

13% respondents have Tata Indica DL

10% respondents have Tata Indica DLF

Which version of the Hyundai Santro do you have?

XL XO AT

6 15 9

Page 58: Buying Preference of Customer Regarding Maruti Cars

6, 20%

15, 50%

9, 30%

XL

XO

AT

INTERPRETATIONS:

20% respondents have Hyundai Santro XL .

50% respondents have Hyundai Santro XO.

30% respondents have Hyundai Santro AT.

How did you come to know about your car brand/model?

Advertisement Friends Family

Members

Publicity Any Other

80 65 23 12 20

Page 59: Buying Preference of Customer Regarding Maruti Cars

80, 39%

65, 33%

23, 12%

12, 6%20, 10% Advertisement

Friends

Family Members

Publicity

Any Other

INTERPRETATIONS:

39% respondents have come to know about their car

through Advertisements.

33% respondents have come to know about their car

through friends

12% respondents have come to know about their car

through family members.

6%respondents have come to know about their car through

publicity.

Awareness about these five car brands available in market?

Full Aware Aware Less Aware Unaware

48 126 26 0

Page 60: Buying Preference of Customer Regarding Maruti Cars

48

126

26

00

20

406080

100

120140

Full Aware Aware Less Aware Unaware

No.

of r

espo

nden

ts

INTERPRETATIONS:

48 respondents are fully aware about these five car brands.

126 respondents are aware about these five car brands.

26 respondents are less aware about these five car brands.

Why did you prefer Maruti Zen?

Price Fuel Efficiency Engine

Displacement

Power Top Speed

20 10 4 5 6

Page 61: Buying Preference of Customer Regarding Maruti Cars

20, 45%

10, 22%

4, 9%

5, 11%

6, 13% Price

Fuel Efficiency

Engine Displacement

Power

Top Speed

INTERPRETATIONS:

20% respondents prefer Maruti Zen due to price

22% respondents prefer Maruti Zen due to fuel efficiency

9% respondents prefer Maruti Zen due to engine

displacement

11% respondents prefer Maruti Zen due to power

13% respondents prefer Maruti Zen due to top speed

Why did you prefer Hyundai Santro?

Price Fuel Efficiency Engine

Displacement

Power Top Speed

6 3 4 11 4

Page 62: Buying Preference of Customer Regarding Maruti Cars

6, 21%

3, 11%

4, 14%11, 40%

4, 14% Price

Fuel Efficiency

Engine Displacement

Power

Top Speed

INTERPRETATIONS:

21% respondents prefer Hyundai Santro due to price

11% respondents prefer Hyundai Santro due to fuel

efficiency

14% respondents prefer Hyundai Santro due to engine

displacement

40% respondents prefer Hyundai Santro due to power

14% respondents prefer Hyundai Santro due to top speed

Why did you prefer Maruti Alto?

Price Fuel Efficiency Engine

Displacement

Power Top

Speed

26 24 5 7 4

Page 63: Buying Preference of Customer Regarding Maruti Cars

26, 39%

24, 36%

5, 8%7, 11% 4, 6% Price

Fuel Efficiency

Engine Displacement

Power

Top Speed

INTERPRETATIONS:

39% respondents prefer Maruti Alto due to price

36% respondents prefer Maruti Alto due to fuel efficiency

8% respondents prefer Maruti Alto due to engine

displacement

11% respondents prefer Maruti Alto due to power

6 respondents prefer Maruti Alto due to top speed

Why did you prefer Maruti Wagon R ?

Price Fuel Efficiency Engine

Displacement

Power Top Speed

4 3 5 3 7

Page 64: Buying Preference of Customer Regarding Maruti Cars

4, 18%

3, 14%

5, 23%3, 14%

7, 31%Price

Fuel Efficiency

Engine Displacement

Power

Top Speed

INTERPRETATIONS:

18% respondents prefer Maruti Wagon R due to price

14% respondents prefer Maruti Wagon R due to fuel

efficiency

23% respondents prefer Maruti Wagon R due to engine

displacement

14% respondents prefer Maruti Wagon R due to power

31% respondents prefer Maruti Wagon R due to top speed

Why did you prefer Tata Indica?

Price Fuel Efficiency Engine

Displacement

Power Top Speed

3 16 7 9 4

Page 65: Buying Preference of Customer Regarding Maruti Cars

3, 8%

16, 41%

7, 18%

9, 23%

4, 10% Price

Fuel Efficiency

Engine Displacement

Power

Top Speed

INTERPRETATIONS:

8% respondents prefer Tata Indica due to price

41% respondents prefer Tata Indica due to fuel efficiency

18% respondents prefer Tata Indica due to engine

displacement

23% respondents prefer Tata Indica due to power

10% respondents prefer Tata Indica due to top speed

Are you satisfied with your car?

Highly

Satisfied

Satisfied Undecided Unsatisfied Highly

Unsatisfied

29 92 16 41 22

Page 66: Buying Preference of Customer Regarding Maruti Cars

29, 15%

92, 45%16, 8%

41, 21%

22, 11% Highly Satisfied

Satisfied

Undecided

Unsatisfied

Highly Unsatisfied

INTERPRETATIONS:

15% respondents are highly satisfied with their car

45% respondents are satisfied with their car

8% respondents are undecided with their car

21% respondents are unsatisfied with their car

11% respondents are highly unsatisfied with their car

The features with which you are satisfied are?

Price Fuel Efficiency Engine

Displacement

Power Top

Speed

57 56 26 36 25

Page 67: Buying Preference of Customer Regarding Maruti Cars

57, 28%

56, 28%26, 13%

36, 18%

25, 13% Price

Fuel Efficiency

Engine Displacement

Power

Top Speed

INTERPRETATIONS:

28% respondents are satisfied with price of their car

28% respondents are satisfied with fuel efficiency of their

car.

13% respondents are satisfied with engine displacement of

their car.

18% respondents are satisfied with power of their car.

13% respondents are satisfied with top speed of their car

In your opinion, what is the impact of advertising?

Very High High Medium Low Very Low

33 70 55 31 11

Page 68: Buying Preference of Customer Regarding Maruti Cars

33

70

55

31

11

01020304050607080

VeryHigh

High Medium Low VeryLow

No.

of r

espo

nden

ts

INTERPRETATIONS:

33 respondents say advertising has very high impact.

70 respondents say advertising has high impact

55 respondents say advertising has medium impact.

31 respondents say advertising has low impact.

11 respondents say advertising has very low impact

How much does your income affect the purchase of a car?

Very High High Medium Low Very Low

33 75 50 31 11

Page 69: Buying Preference of Customer Regarding Maruti Cars

33

75

50

31

11

01020304050607080

VeryHigh

High Medium Low Very Low

No. o

f res

pond

ents

INTERPRETATIONS:

33 respondents say advertising has very high impact.

75 respondents say advertising has high impact

50 respondents say advertising has medium impact.

31 respondents say advertising has low impact.

11 respondents say advertising has very low impact

How much an attractive scheme offered by a car company affects the purchase of a car?

Very High High Medium Low Very Low

30 65 60 29 16

Page 70: Buying Preference of Customer Regarding Maruti Cars

30

6560

29

16

010203040506070

VeryHigh

High Medium Low Very Low

No.

of r

espo

nden

ts

INTERPRETATIONS:

30 respondents say attractive scheme offered by a car company very highly affects the purchase of a car.

65 respondents say attractive scheme offered by a car company highly affects the purchase of a car.

60 respondents say attractive scheme offered by a car company has medium affect on the purchase of a car.

29 respondents say attractive scheme offered by a car company has low affect on the purchase of a car.

16 respondents say attractive scheme offered by a car company has very low affect on the purchase of a car.

Page 71: Buying Preference of Customer Regarding Maruti Cars

Recommendations

Page 72: Buying Preference of Customer Regarding Maruti Cars

Recommendation refers to the outcome of the research work done

and the suggestions for implementation.

1. It is suggested that manufacturer should make all efforts to

control cost.

2. New technology should be applied according to the requirement

of the customer.

3. Provide various schemes which attract the customers.

4. Spare parts of the cars should be easily available in the market.

5. Cars should be more fuel efficient.

6. Cars should be available in different colors so as to attract the

customers.

Page 73: Buying Preference of Customer Regarding Maruti Cars
Page 74: Buying Preference of Customer Regarding Maruti Cars

1) Topgear, “The Big Test:First Timers”, Vol.1, Issue 8

April 2006,Page No.-166-174

2) Lam Darius, Autocar India, “Alto-gether Strong”, Vol 6 No.1

September 2004,Page No.- 21

3) Prasad R, 4Ps Business and Marketing , ”Indica’ting More”,

Volume-1, Issue-14,15 September-28 September,

Page No.- 53

4) Kothari,C.R, Research Methodology,2nd edition,

Wishawa Parkashan, Page No.-1-22

5) Cooper Donald R, Schindler Pamela S, Marketing Research,

Tata McGraw Hill, Page No.-398.

6) Gupta S.P, Statistical Methods, 30th edition, Sultan Chand &

Sons, Page No.- 378-418

7) Gupta S C, Kapoor V K, Fundamental of mathematical

statistics, Sultan Chand & Sons, Page No.-10.1-10.40.

8) Tull Donald S.,Hawkings Del I, Marketing Research

Measurement & Method, 6th ediition, Prentice Hall of India,

Page No.- 50-72.

9) Schiffman Leon G, Kanuk Leslie Lazar, Consumer Behavior

6th edition, Prentice Hall of India, Page No. -6-13.

10) Nair Suja R, Consumer Behavior in Indian Perspective ,

1st edition , Himalaya Publishing House, Page No.- 311-341.

Page 75: Buying Preference of Customer Regarding Maruti Cars

Web sites:

http://www.hyundai.co.in\Welcome to Hyundai Motor Hyundai

Santrow.mht, Date 7 february 2007.

http://www.indiainfoline.com/sect/maud.pdf,

date 18 february 2007

htmhttp://car\INDIACAR_NET - Latest auto news - Maruti's Nov

sales up 7_8%, date 18 february 2007

http://car\Auto Industry in Top Gear.htm, date 9 march 2007

http://car\Indiatimes Auto.htm, date 9 march 2007

htmhttp://car\The Hindu Business Line Maruti eyeing 50 pc

share in A2 segment.htm, date 26 january 2007

htmhttp://a2\Mid-size passenger cars in pincer trap-

Automobiles-Auto-News By Industry-News-The Economic

Times.htm, date 12 march 2007

http://Hyundai records 49% increase in domestic sales in

January 2007 - India PRwire.htm, date 26 january 2007

htmhttp://economictimes.indiatimes.com/,3 march 2007

Secondary Data

Magazines like AUTOCAR INDIA,TOPGEAR ,MOTORING

Pamphlets of the selected car companies

Page 76: Buying Preference of Customer Regarding Maruti Cars
Page 77: Buying Preference of Customer Regarding Maruti Cars

QUESTIONNAIRE

I am doing a survey on buying preference of customers and customer

satisfaction regarding selected A2 segment cars (Maruti Alto,Maruti

Zen, Maruti Wagon-R, Hyundai Santro, Tata Indica) and the survey

is being conducted in lieu of the partial fulfillment of dissertation for

the degree of M.B.A. In this regard, I wish to seek your kind

cooperation.

Car of which brand do you have?

Out of the following cars which car do you have?

Maruti Alto Maruti Zen

Maruti Wagon-R Hyundai Santro

Tata Indica

For how long have you been using this cars?

Less than eight months Eight Months One year Two Years

More that two years

Which version of the specific car do you have? What is the price of your car?

Page 78: Buying Preference of Customer Regarding Maruti Cars

What is the mileage (kpl) that your car is giving while driving in city and on highway?

What is the top speed (kph) of your car? What is the engine displacement (cc) of your car? How much power (bhp) does the engine of your car develops? How did you come to know about your car brand/model?

Advertisement Through Friends Family Members Publicity

Any Other

Awareness about these five car brands available in market?

Fully Aware Aware Less aware

Unaware

Why did you prefer this car ?

Fuel Efficiency(kpl) Power(bhp)

Top Speed(kph) Price

Engine Displacement(cc)

How would you rank the following factors in order of there importance for purchase of a car?

Fuel Efficiency(kpl) Power(bhp)

Top Speed(kph) Price

Engine Displacement(cc)

Page 79: Buying Preference of Customer Regarding Maruti Cars

Are you satisfied with your car?

Highly Satisfied Satisfied Unsatisfied

Highly Unsatisfied Undecided Among the following features of your car, the features with

which you are satisfied are?

Fuel Efficiency(kpl) Power(bhp)

Top Speed(kph) Price

Engine Displacement(cc)

In your opinion, what is the impact of advertising ?

Very High High Medium

Low Very Low How much does your income effect the purchase of a car?

Very high High Medium

Low Very Low

How much an attractive scheme offered by a car company effects the purchase of a car?

Very high High Medium

Low Very Low

Suggestions, if any

Name:

Place:

Page 80: Buying Preference of Customer Regarding Maruti Cars

Age:

Occupation:

Annual Income (in Rs.):

Calculations of chi-square test

H0 = There is no correlation between various factors like price, fuel efficiency, engine displacement, power, top speed and purchase of the car.H1 = There is positive correlation between various factors like price,fuel efficiency, engine displacement, power, top speed and purchase of the car.

XLSTAT 7.1 - Tests on Contingency Tables (Chi-square...) - 3/14/2007 at 3:20:58 PM

Data: workbook = Book1 / sheet = Sheet1 / range = $B$2:$F$6 / 5 rows and 5 columnsIn case of square table, the Cohen's Kappa is calculatedIndependence tests between the rows and columns in the contingency table:Chi-square (observed value 47.532Chi-square (critical value) 26.296 DF 16One-tailed p-value < 0.0001Alpha 0.05

DecisionAt the level of significance Alpha=0.050 the decision is to reject the null hypothesis of independence between the rows and the columnsIn other words, the dependence between the rows and the columns is significant

Chi-square likelihood ratio test (Wilks' G²):

Wilks' G² (observed value) 47.373

Wilks' G² (critical value) 26.296DF 16One-tailed p-value <0.0001Alpha 0.05At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of independence between the rows and the columnsIn other words, the dependence between the rows and the columns is significant

Maruti Zen Hyundai Santro

Maruti Alto Maruti Wagon R

Tata Indica

Price 20 6 26 4 3Fuel Efficiency

10 3 24 3 16

Engine Displacement

4 4 5 5 7

Power 5 11 7 3 9Top Speed 6 4 4 7 4

Page 81: Buying Preference of Customer Regarding Maruti Cars

Table of the statistics testing the independence rows/columns: Value DF p-valueChi-square 47.532 16 <0.0001Wilks' G² 47.373 16 <0.0001

Table of the coefficients: Coefficients ValuePearson's Phi 0.488Cramer's V 0.244Tschuprow's T 0.244Contingency coefficient 0.438Theil's U (R|C 0.077Theil's U (C|R) 0.077Averaged Theil's U 0.077Goodman and Kruskal tau (R|C) 0.066Goodman and Kruskal tau (C|R) 0.059Cohen's Kappa -0.019

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No missing valuesMetric Multidimensional ScalingMultidimensional Scaling model: absoluteStress used for the results: Kruskal's stress-1Dimension of the representation space: 2Repetitions: 10Seed of the pseudo-random numbers generator: 1094498164Iterations: 50Convergence: 0.0001Space with 2 Dimensions:

Model: Dij= Pij

Observation coordinates:

Observation Dim1 Dim2

R1 7.170 -5.204R2 -1.448 -7.822

Rank

Factors

1 2 3 4 5

Price 20 6 26 4 3Fuel Efficiency

10 3 24 3 16

Engine Displacement

4 4 5 5 7

Power 5 11 7 3 9Top Speed 6 4 4 7 4

Calculations of Multidimensional Scaling(MDS)

XLSTAT 7.1 - Multidimensional Scaling (MDS) - 3/14/2007 at 3:48:39 PM

Similarity matrix (converted to a dissimilarity matrix): workbook = Book1 / sheet = Sheet1 / range = $B$2:$F$6 / 5 rows and 5 columns

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R3 -6.559 8.289R4 -6.053 -1.852R5 6.890 6.588

Distances measured in the representation space:

R1 R2 R3 R4 R5R1 0 9.006 19.250 13.642 11.796R2 9.006 0 16.903 7.540 16.648

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R3 19.250 16.903 0 10.154 13.556R4 13.642 7.540 10.154 0 15.452R5 11.796 16.648 13.556 15.452 0

Ideal distances calculated using the model (disparities):

In the case of the absolute model, the disparities are equal than the dissimilarities

Residual distances:

 

Comparative table:

Pair Dissimilarity Disparity DistanceDissimilarity

rankDisparity

rankDistance

rankR2 - R4 9.000 9.000 7.540 1 1 1R1 - R2 10.000 10.000 9.006 2 2 2R3 - R4 13.000 13.000 10.154 3 3 3R4 - R5 13.000 13.000 15.452 3 3 7R1 - R5 14.000 14.000 11.796 4 4 4

R1 R2 R3 R4 R5

R1 0 10.000 16.000 15.000 14.000R2 10.000 0 16.000 9.000 16.000R3 16.000 16.000 0 13.000 16.000

R4 15.000 9.000 13.000 0 13.000R5 14.000 16.000 16.000 13.000 0

R1 R2 R3 R4 R5

R1 0 -0.994 3.250 -1.358 -2.204R2 -0.994 0 0.903 -1.460 0.648R3 3.250 0.903 0 -2.846 -2.444

R4 -1.358 -1.460 -2.846 0 2.452R5 -2.204 0.648 -2.444 2.452 0

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R1 - R4 15.000 15.000 13.642 5 5 6R3 - R5 16.000 16.000 13.556 6 6 5R1 - R3 16.000 16.000 19.250 6 6 10R2 - R3 16.000 16.000 16.903 6 6 9R2 - R5 16.000 16.000 16.648 6 6 8

In the case of the absolute model, the disparities are equal than the dissimilarities

Summary of repetitions:

Page 86: Buying Preference of Customer Regarding Maruti Cars

Repetition IterationsInitial stress Fin. stress

1 50 0.538 0.1842 50 0.428 0.1643 50 0.304 0.212

4 23 0.301 0.1895 50 0.551 0.2376 50 0.407 0.2067 50 0.397 0.1728 50 1.022 0.1649 50 0.556 0.23810 39 0.594 0.147