DESSERTATION ONA STUDY ON FACTORS AFFECTING CONSUMER BUYING BEHAVIOUR

TOWARDS BUDGETED CARS

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE

MASTER’S DEGREE IN BUSINESS ADMINISTRATION

OF

UTTARAKHAND TECHNICAL UNIVERSITY, DEHRADUN

SUBMITTED TO:

INTERNAL GUIDE EXTERNAL GUIDEPROFESSOR IMS Dehradun

SUBMITTED BY

VIKRAM SINGH RAWAT

(MB11B56)

INSTITUTE OF MANAGEMENT STUDIES, DEHRADUN

BATCH 2011-13

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Table of Content

1. Executive Summary………………………………………03

2. Introduction………………………………………………..05

3. Overview of the Auto segment…………………………12

4. Review of Literature………………………………………24

5. Objective of the study……………………………………32

6. Research methodology………………………………….35

7. Limitation of the study…………………………………..38

8. Finding and Analysis…………………………………….39

9. Conclusion…………………………………………………59

10.Annexure…………………………………………………...64

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Executive Summary

The automobile industry today is the most lucrative industry. Due to the increase

in disposable income in both rural and urban sector and easy finance being

provided by all the financial institutes, the passenger car sales have increased at

the rate of 38% per annum in June 2005-06 over the corresponding period in the

pervious year. Further competition is heating up in the sector with a host of new

players coming in and other like Porsche, Bentley, Audi, and BMW all set to

venture in the Indian markets. One factor that could help the companies in the

marketing of their product is by knowing and creating a personality for their

brands.

This report attempts to answer some of the questions regarding brand

personality of selected cars in India by conducting the market research. This

report is categorized into parts, deals with introduction to brand personality,

companies selected, product and the industry.

The automobile industry today is the most lucrative industry. Due to the increase

in disposable income in both rural and urban sector and easy finance being

provided by all the financial institutes, the passenger car sales have increased at

the rate of 25% per annum in June 2005-06 over the corresponding period in the

previous year. Further competition is heating up in the sector with a host of new

players coming in and others like Porches, Bentley, Audi, and BMW all set to

venture in Indian markets. One factor that could help the companies in the

marketing of their products is buying Behavior of the consumers. The Buying

Behavior of the customers can be studied by knowing their perceptions about the

cars in the market and about the possible entrants in the market. One such

technique is by knowing and creating a personality for the brands.

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This personality sketching will help in knowing what a customer (or a potential

customer) thinks about a given brand of car and what are the possible factors

guiding a possible purchase. Similarly, the idea of measuring the customer

satisfaction will serve the same purpose of determining the customer perception.

Thus, by measuring the” willingness of existing users of a car to recommend it to

others” will help the car manufacturers to chalk out the entire Customer Buying

Behavior.

The reports shall attempt to answer some of the questions regarding brand

personality of selected cars in India by conducting a market research. The

market research will be helpful for the new car entrant companies in India to find

out the possible gaps between the customer expectations and the present

market offerings. This way these companies will be able to find their share in the

ever-expanding Indian market pie.

The research will track the customer satisfaction in the following two layers:

Product related Parameters

Dealers related parameters

The customer satisfaction index will be calculated for the car brands taken into

consideration.

It will be mainly a primary research and the information will be gathered from

both primary and secondary research. The study will analyze the applicability of

existing research concepts, theories, and tools for evaluating consumer

satisfaction.

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INTRODUCTION

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It is true fact that if you are satisfied you recommended to others. Word of mouth

and customer satisfaction play a very important role in determining market

perception about an automobile. It is the market perception that determines the

success of a company and so it is very important for the car manufacturers to

measure the “willingness of existing users of a product to recommend it to

others”. The same is a lot of interest to customers as well for it helps them make

the purchase decision.

A car is one of the most significant purchases that an Indian household makes

and this project addresses the most important question that perplexes car

manufacturers:

“What makes the perfect car that influence will willfully purchase?”

The project highlights the factors that influence the buying decision of a

consumer.

The factor under consideration would be:

Price

Income of the consumer

Features in the car

Safety standard

Warranty scheme

Finance facility

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Is an Indian consumer ready for more? Which is the driving motive behind the

effective demand of the car? How the coming of new models like swift does is

going to effect the buying decision of consumer and especially the Tata 1 lakh

car.

In other words, from the spread of choices offered by various manufacturers

under various segments, of which one the customer will finally turn the ignition on

and drive.

Customer satisfaction index: some of the most advance thinking in the business

world recognizes that customer relationships are best treated as assets, and that

methodical analysis of these relationships can provide a road map for improving

them

“If you cannot measure it, you cannot improve it.” – Lord William Thomson Kelvin

(1824-1907)

Clause 8.2.1 in ISO9000: 2000 states:

“As one of the measurements of the performance of the quality management

system, the organizations shall monitor information relating to customer

perception as to whether the organization has met customer requirements. The

method for obtaining and using this information shall be determined”

The requirement has been there in the QS9000 standard clause 4.1.6 which

says:

“… Trends in customer satisfaction and key indicators of customer dissatisfaction

shall be documented and supported by objective information. These trends shall

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be compared to those of competitors, or appropriate benchmarks, and reviewed

by senior management.”

There is obviously a strong link between customer satisfaction and customer

retention. Customer’s perception of service and quality of product will determine

the success of the product or service in the market.

With better understanding of customer’s perceptions, companies can determine

the actions required to meet the customer’s needs. They can identify their own

strengths and weaknesses, where they stand in comparison to their competitors,

chart out the path future progress and improvement. Customer satisfaction

measurement helps to promote an increased focus on customer outcomes and

stimulate improvements in the work practices and processes used within the

company.

Customer expectations are the customer-defined attributes of your product or

service. We cannot create satisfaction just by meeting customer’s requirements

fully because these have to be met in any case. However falling short is certain

to create dissatisfaction.

Major attributes of customer satisfaction can be summarized as:

Product quality

Product packaging

Keeping delivery commitments

Price

Responsiveness and ability to resolve complaints and reject reports

Overall communication, accessibility and attitudes

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We cannot begin to address the customer satisfaction issue we define the

parameters and measures clearly.

The customer satisfaction index represents the overall satisfaction level of that

customer as one number, usually as a percentage

Values

Benefits

Features - Attributes

+ -

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The buying process involves the following steps:

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Problem Recognition

Information search

Evaluation

Post Purchase Dissonance

Buy

Decision

Satisfaction = Brand Acceptance

Dissatisfaction = Brand Rejection

“The fact that word of mouth sales are a big deal in this industry has also helped.

Industry players and market surveys reveal that 20-30 percent of sales are

through word of mouth”.

For the purpose of the project has undergone through

Surveying the relevant consumer base through exhaustive questionnaire.

Understand the elements underplaying in each segment

Deducing A analytical overview through different statistical methods

Recommendation comes from satisfaction and satisfaction comes from

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Service Quality

Relationship Quality

Product Quality

OVERVIEW OF THE AUTO SEGMENT

Indians have emerged as avid car enthusiasts sporting their prized possessions

as status symbols and speed machines. Foreign car companies have discovered

the Indian consumer as well as the R & D potential in the Indian technical

fraternity and are setting up manufacturing plants right and left across the country

at lower costs. The Indian automobile industry is currently experiencing an

unprecedented boom in demand for all types of vehicles. This boom has been

triggered primarily by two factors:

(1) increase in disposable incomes and standards of living of middle class Indian

families estimated to be as many as four million in number; and

(2) The Indian government's liberalization measures such as relaxation of the

foreign exchange and equity regulations, reduction of tariffs on imports, and

banking liberalization that has fueled financing-driven purchases.

Industry observers predict that passenger vehicle sales will triple in

five years to about one million, and as the market grows and customer's

purchasing abilities rise, there will be greater demand for higher-end models

which currently constitute only a tiny fraction of the market. These trends have

encouraged many multinational automakers from Japan, U. S. A., and Europe to

enter the Indian market mainly through joint ventures with Indian firms.

India is increasingly becoming a global automotive hub both for the vehicles and

component industry. India is fast integrating itself into the world economy and

open to international automotive companies, who are increasingly investing in

India.

The Indian automotive and component industry is looking to increase the quality

of production from existing levels, to develop new products and to increase

exports. In the long run India is well set to become a key market for automotive

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and component manufacturers in terms of local demand and as a base for

export.

Additionally, companies such as GM, Daimler Chrysler, Toyota, Delphi and

MICO/Bosch are utilizing India’s well developed IT / software capabilities and

have set up R&D hubs here for their global operations

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Maruti Udyog Limited

Maruti Udyog Limited is the premier car company in India. Maruti Udyog Limited

(MUL) was established in Feb 1981. The company entered into collaboration with

Suzuki Motor Corporation of Japan to manufacture cars. Maruti is the highest

volume car manufacturer in Asia, outside Japan and Korea.

Maruti Udyog Limited, the largest Car selling company in India, has many unique

Service advantages for the customers. It has bagged the First Position in JD

Power Customer Satisfaction Index for the consecutive two years. The company

has also ranked highest in the India Sales Satisfaction Study.

1. Estilo

Maruti launched all new Estilo. If you are wondering why I dropped Zen from this

car's name then let me explain. Estilo has got Wagon R's engine and chassis

and Suzuki MR Wagon's shape. Whatever remains is taken from Zen, well does

anything remains actually? Yes, Name! Name is taken from Zen, 'Zen Estilo'. In

essence it’s stylish Wagon R, Japan's MR Wagon, combination of the two or

anything but Zen. It seems Maruti wants to exploit Zen brand-image hence

named this car after Zen.

Zen Estilo has the same engine (1061cc, 64.8ps, 84Nm, 4-cylinder, 16-valve,

MPFI F10D Petrol) under the hood that is found in Maruti Wagon R. Absolutely

nothing has been changed except for the fact that this engine is much refined

and is slightly better at responsiveness and fuel economy. This simply translate

into 'Zen Estilo is a bit faster and more fuel economic than Wagon R'. Due to

highly good drivability, driving in city would be more fun with Zen Estilo.

Electronic Power Steering (not available in LX version) really helps in crowded

traffic. Owning and maintaining Zen Estilo won't be a problem, engine is proven

reliable and virtually maintenance-proof.

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2. Swift

Competing with the other cars of Maruti, Maruti Swift is gradually making its

position in the world of mid-sized family car. Maruti Swift has come up with the

special technical specifications of 16 valve 4-cylinder, 1300 cc engine generating

power. Maruti swift is equipped with various safety features and well advanced

equipments. 3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light

(3 position), console box (lower), cup holders (front 2, rear1), front door trim

pockets, green tinted glass window, halogen headlamps, headlamp leveling

device, heater and manual Air conditioning, OVRM (internally adjusted), rear fog

lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate opener key

type, trip meter (digital display), sun visors (both sides), brake assist , child lock

(rear door), high mounted stop lamp, power steering, rear seat belts etc. are the

features available in this model. Apart from the features found in other model,

striking features of this model are black colored A & B pillars, 12v accessory

socket in center console, day and night rear view mirror, door ajar warming lamp,

driver's seatbelt warning lamp, tachometer, driver's seat belt warning lamp, vanity

mirrors (sun visor co-driver side), rear seat head restraints, fabric accented door

trims, central door locking (4 door), front and rear electronic windows, front fog

lamps, light off/ key reminder, manual air-conditioning, key not removed warning

buzzer, etc

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3. Maruti Esteem

Sophisticated big structured Maruti Suzuki esteem is one of the old car of the

Maruti Udyog group. To run this huge car its engine is made of lightweight all-

aluminum. This contemporary engine has capacity of 65 bhp at 6000 rpm.

According to *Mileage (Auto India, Nov 2005), Esteem holds the topmost position

on mileage among the other category of cars including the small cars.

There are three models of Maruti Suzuki Esteem:

Maruti Esteem (Lx)

Maruti Esteem (Lxi)

Maruti Esteem (Vxi)

The basic model of Maruti Suzuki Esteem includes various safety features and

unique configuration in it. Air conditioned Maruti Suzuki Esteem for the comfort of

the owner provides the facilities of cabin heater, front seat back pockets (both

sides), front door pockets (both sides), air flow controls, remote operated fuel

tank lid and trunk lid, coat hanger hook on grip assistance etc..

Instrument panel of this model includes tachometer and speedometer with sporty

dial. Security measurement of this model has headlamp leveling device,

collapsible steering column, lockable glove box, child proof rear door locks,

halogen headlamps, prismatic day-night inside rear view mirror etc.

This model is more upgraded version of Maruti Suzuki (Lx). Apart from the

features that are already in MarutiSuzuki (Lx), there are other few more added

features existing in Maruti Suzuki (Lxi). For comfort these models specially have

rear view mirror on the left side, power steering and power window (front).

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Hyundai Motor

Hyundai Motor India Limited (HMIL) was established in 1996 and is a wholly

owned subsidiary of South Korean multi national, Hyundai Motor Company. HMIL

is the fastest growing and the second largest car manufacturer in India and

presently selling 30 variants of passenger cars in six segments. The Company

has set up more than 70 dealer workshops that are equipped with the latest

technology, machinery, and international quality press, body and paint shops,

across the country, thereby providing a one-stop shop for a Hyundai customer.

Hyundai also has a fleet of 78 emergency road service cars that can provide

emergency service to all its customers anytime, anywhere.

4. Hyundai Santro

In the field of mid size car, Santro Xing is capturing the market very rapidly. Its

design, style, space and other special features has made it one of the highest

purchasable cars among any economy class.

It has five variants:

Santro XK

Santro XK (Non AC)

Santro XL

Santro XO

Santro AT

Along with the other features that are present in Santro XK (Non AC), other

features present in this model are air conditioner, day and night inside rear view

mirror, chrome1 radiator grille etc. Along with the features available in Santro XK,

added features in this model are 4 doors CLS, passenger side OVRM, tinted

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glass, map pocket front door driver side, front door full size arm rest, door trim

with fabric insert, hydraulic power steering, power windows (front) etc

5. Getz

Hyundai Motors launched small family car Getz at August 2004. Euro III emission

norms fulfilled Car, Getz powered by 1300 cc. engine. Only the petrol version of

this car was launched initially.

There are four variants found in this car:

Hyundai Getz GLS

Hyundai Getz GLX

Hyundai Getz GVS

This model has highly advanced features like AC with 4 speed blower, ash tray

w/o illumination, center console w/ pen and jug holder, 60:40 rear seat split,

vanity mirror passenger side, rear defogger, height adjustable seat belts (front),

waist line molding, tilt steering, map pockets, front and rear power windows, rear

seat back inclination(4 position), digital clock, rear wiper and washer, front for

lamp, body color radiator grille, rear bumper reflectors, rear mud guard etc. Few

features to view comfort and safety in mind, this model is being specially

equipped with rear wiper and washer, rear defogger, alloy wheels etc. This model

has few important features like height adjustable front seat belts, body colored

radiator grille, rear bumper reflectors etc.

6. Hyundai Accent

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Hyundai Accent was ceremonially launched at Frankfurt International Motors

Show on 15 September, 1999. It came in two versions, i.e. Petrol and Diesel

Versions in India initially, while in Europe it was introduced only with the Petrol

version. Initially Accent came up with the manual transmission which in turn

started getting available in automatic transmission. To know about the models of

this car, please see this following text:

Hyundai Accent GLE

Hyundai Accent GLS

Hyundai Accent Viva

Hyundai Accent Viva CRDi

Hyundai Accent CRDi

This model has many distinctive features like 60:40 split folding rear seats,

automatic trunk lamps, body colored door handles, bumper with or without

molding, door trims and consoles, high mounted stop lamps (HMSL), Mist (one

stoke wiper blades), semi cloth upholstery, trip odometer, rear license garnish,

waistline molding, wiper (3 no. of speed), cross bar under dash board, crumple

zone, dual horn, engine sub frame etc. Features that are striking in this models

are tinted glass, remote boot release, split rear seats, tachometer, remote fuel

cap release, sun visors with vanity mirror, power telescopic antenna, luxury full

cloth upholstery, energy absorbing collapsible steering column, full size wheel

cover etc.

7 . Verna

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The most awaited Verna finally launched in India. Verna can be considered as

one of the most shock wave-creating cars in India; within first five days of its

launch over 2000 Verna cars had been sold. Competition seems to be in shock.

Comfort levels are quite good, I wasn't expecting them to be like this, and there is

marginal refinement over Accent. Suspensions give you a feel, 'yes this car is

meant for India', no bumpy rides. Car handles very well too. Interiors are not

class, as expected, though they don't give a cheap feeling at all. City is way

ahead of Verna in interiors and room. Driving position is good and to make it

even better, height-adjustable driver-seat is provided in higher versions. AC is

quite effective, cools the cabin quickly. Due to enough power, switching on AC

doesn't make any difference in performance.

Exterior design is satisfactory. Its neither great to boast about nor is bad to

complaint about. Like all other Hyundai car designs, people have started to

criticize Hyundai for design of Verna. After having first glance of Verna, one of

Carwale.com colleagues called out, 'Hey, it looks like Baleno from front and

Fiesta from behind!'. You can't help it, it’s inevitable with Hyundai. ABS is

available as optional across the range. It’s a bit disappointing that Airbags are not

provided even as optional. Central Locking is available as standard feature in all

the versions and keyless entry in petrol versions except the lowest-end Verna i.

Finally Indian automotive industry is taking good shape. We have enough options

in every segment available. From Maruti to Tata to Honda to Volkswagen to

BMW to Porsche, every major world car player is interested to sell its cars to

Indian people. Everyday we have news about some new launch. Verna is just

launched and Ford has just announced launch of 1.6 TDCi (diesel) in two months

time, Maruti has confirmed discontinuation of Baleno and arrival of new Baleno

early next year and last but not the least Chevrolet is planning diesel Aveo soon.

Tata Motors Limited

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Tata Motors Limited is India's largest automobile company, with revenues of Rs.

24,000 crores in 2005-06. Its name comes first in the category of commercial

vehicles and the second largest in the passenger vehicles, mid size car and utility

vehicle segments. The company is the world's fifth largest medium and heavy

commercial vehicle manufacturer.

Over 3.5 million Tata vehicles is moving on Indian roads, since 1954. Its

manufacturing plant is located at Jamshedpur, Pune and Luck now

8. Tata Indica V2

Having attributes of three popular cars, Tata Indica is ruling the market. Making

of Tata Indica with the concept of main distinguishing features of three popular

cars i.e., with the overall structure of Maruti Zen, interior space like ambassador

and cost nearly like Maruti 800 was a challenging venture of Tata Motors.

Its fully foldable rear seat has made this car more accommodating for extra

luggage. For safe and secure driving and to give proper comfort, side-impact

beams, rigid monochrome frame and child safety locks are attached to this car.

Different Tata Indica models are:

Tata Indica V2

o DLX

o DLG

o DLS

o DLE

With its market catching looks and few striking features have set a trend for the

choosy buyers. Its power steering, central locking system, four power windows

have not only made this comfort driving car but also give assurance for the

safety. To mention more about convenience of driving, HVAC system provides

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good cooling effect even in a sultry summer days. Door handles, body colored

bumpers, ORVM and wheel arch flair are few more advantages that the owner of

this car can easily avail.

To assure safer driving along with the elegance and appeal of the car, this model

is equipped with body colored bumpers, the wheel arch flairs, internally

adjustable OVRM and central locking system. To avoid any inconvenience in

operating the window, front windows are power windows. To avoid the scorching

heat in a summer days, HVAC system of cooling can soothe anybody inside the

car

9. Tata Indigo

Indigo with its market catching features like leather upholstery, beige interiors,

LCD screen etc has made its position in the automobile industry.

Indigo is available in Petrol and Diesel models.

Petrol Variants

o Indigo GLE

o Indigo GLS

o Indigo GLX

It is equipped with various features like manual power steering, manual front and

rear windows, grey bumpers, half wheel covers, partial fabric lining on seat,

molded roof lining, high mounted stop lamp etc. To mention few of the features

present in this model along with the features of rest of the two models, there are

available power steering and power windows, rear fog lamps, rub rails on door,

full wheel covers, both sides outer rear view mirrors, rear defogger, central

locking, audio warning signal for driver seat belt and many more

Industry Size

The domestic Indian passenger car market (including utility vehicles) totaled

900,000 units (with a CAGR of 10 per cent over the past 4 years) while the exports

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were 130,000 million units (with a registered CAGR of 68 per cent over the past 4

years) during financial year 2004

At the back of this phenomenal automotive growth is the success of the Indian auto

component industry. Presently a US$ 6.7 billion industry, it is expected to almost

treble in less than eight years time to US$ 17 billion by 2014

India offers a distinct technological and cost-competitive advantage, which global

Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging

for both manufacturing and research facilities. The passenger car market is

projected to grow at a CAGR of 12.3 per cent over the next few years. Growth in the

mid-size and premium car segments is expected to outpace the overall market

growth.

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REVIEW OF LITERATURE

1 Consumer Preferences and Taste

A market of a billion people has different consumer with various choice of their

products and thus an elasticity demand will be appeared in the market.

Consumer differs from one to another one and arranging into age, gender,

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income, education level, and tastes. Moreover, it has relationship in between

the unlimited resources surroundings and the consumer will be heavily make

their choice changed always of the goods and services so that they will demand

more and more (Kotler et al. 2005). Consumer not really understand why they

would chosen the product and purchased it at the time and what actually control

them to buy it and the reason why so because is always comes from their minds

demanded. As a result, a number of factors have been identified and taken into

considerations that are affected consumer's attitude towards product and

service.

2.1.1 Cultural Factor

An individual buying characteristic strongly affected by culture towards a

particular brand. Culture makes shape on people making decision to purchase

and to do their daily activities, and determines it. Yet each single people have

his or her own of culture value to decide on something. Life style, beliefs,

attititudes, also known as subcultures of people belonging to a particular culture

and that is subculture (Kotler et al. 2005), such as geographical areas and human

characteristics such as age and ethnic background.

Social Factor

Social factor like for instance reference groups, family, and role and status that also has

influenced a consumer buying behaviour very much. Reference groups refer to an

individual identified with a group using his or her group member value, attititudes or

behaviour as the basic for his or her judgments, opinions, and actions, and to recognize

behaviour. Any group has a positive or negative directly affecting on some people like as

membership groups (credit card etc.) which can belong to. Some of people desires to

belong to and involve into that group is called inspirational groups, like as a fan's

admiration for an idol.

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Personal Factor

These factors are age and life cycle stage, occupation, economic situation, lifestyle

influence consumer' buying behaviour influences on a person or one family patterns.

People always change their preference, taste, as well as their wants over and over their

life cycle. Each job has required its own unique requirements or clothing like for instance

an office lady has to wear formal uniform or business suite daily for their working time.

However, lifestyle is a pattern of living as activities, interests, and the opinion of the

people. An individual's buying behaviour differs from one another due to have different

life style, taste, and preference in between of them likes as a man is oftenly to choose the

casual clothes like as jean as compare to a business man who like to buy more business

suites. Finally, economical factor also affects a product choice. It talks about a person's

income, savings, or interest rate. If a worker has a low income and that's mean he or she

has low demand to buy less.

Psychological Factor

It includes these factors affecting a person's buying choices. These factors are motivation,

perception, learning, beliefs and attitude. A person has many needs at a given point in

time and these need become the motive directs that person to buy a product they wants

and seek their satisfaction. Anyway, how the person acts is influenced by his or her

perception of situation may differ from one another due to perceive the situation

differently. Some of people are liked to learn something and get its experience,

knowledge and resources from the training or practical for example as they might train as

an intelligent consumer to choose a good and cheaper product. And then from their

learning and motivation, an individual needs belief and attitude towards their buying

behaviour.

Target Market Selection

Firms nowadays are difficult to focus at all of consumer in the market since their wants

are too unlimited and require more. Thus firms must select one segment, or more, as a

target market, so marketers can identify the specific needs accordance to the identified

target group as a result can develop marketing strategies to satisfy consumer needs. It is

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called as targeting market that are selecting a particular good or services valuable or

attractiveness into the specified segments and pay attention on one or more segments. So,

this research only narrows down to age segmentation of demographic and focus on

teenagers, young adults and baby boomers, as well as to meet their need and want, and

discusses how their attitudes towards product and service.

Age Segmentation

As a consumer age his or her needs and desires basically change and thus today firms use

different collected survey data or marketing approaches to meet the wants of existing

consumer on age differences. Example for one strategy is marketer offer the similar

goods in different design to the targets such as toothpaste, designed for adult and

children. Referred to Peter et al. (2005), marketers should analysis consumer-product

relationship to segment market and researcher suggested that 3 steps of segmenting

market as the following: first step is identifying product's concept and determining the

type of consumer, second step is focusing targeted group and last step is considered as the

secondary step and analyzing these difference, understanding relationship between

consumer needs and homogenous product. Finally, this study was discussed about how

today age-related gives impacts on existing market.

2.3 Brand

Brand is usually described as a unique name or trademark given to a product or service,

or can be either is a term, symbol, design for a particular firm which is identified a good

or service, or a firm to distinguish form its competitors. Consumers feel value and trust

towards that brand if a firm's brand marketed well. Brand image is a symbolic structure

created and has powerful motivates consumer to purchase products or services, and the

image is given consumer the differential impression with its meaning about brand like for

instance Malaysia Airlines, customer think about “Malaysian Hospitality”. Malaysian

Airlines has best hospitality and always leaves good image to the public. These

associations can either be developed over time through advertising campaigns with a

consistent theme, from direct experience with the product etc.

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a) Brand Equity

Brand equity refers to the value-added of a particular brand and brings to a particular

good or service, and David Aaker (2005, p.173) defined brand equity as “a set of assets

can liabilities to a brand's name and symbol that adds to or subtracts from the value

provided by a product or service to a firm and/or a firm's customer”. Refers to The Sun,

Dr. Admin Khan mentioned that Malaysia Airlines is going to offers more value added

services and flight frequency to favorite destination such as Melbourne, dates from Oct

2009 to Sept 2010 to allow people traveling more. David Aaker (1991) has been

identified four major categories of brand equity are: brand name awareness, brand

loyalty, perceived quality, and brand associations.

b)Brand loyalty

Brand loyalty is fixed preference for one particular brand that results of a consumer

generally loyals to a particular product or service and purchases repeatedly over time, as

well as over competitor brands. Moreover, consumer has to continuous attitude towards a

particular brand and repeatedly purchases the brand and without concerning any factor. If

one particular brand had a greater advertising, builds strong and attaches a consistent

value, it can retain loyal consumer who had experienced using his or her preferred brand

and for a brand loyalist is less sensitive to price changes whether there is up or down, as

well as can affect sales volume.

c)Perceived Quality

David Aaker (1991) refers perceived quality as a consumer's makes self opinions about a

particular product or service's quality, or superiority for a variety buying reason, and

oftenly affects consumer making the decisions. Consumers have all the information about

a particular product or services before go after it and trying to understand it, and thus to

use it as the guide for making a choices and judgment of quality for the product.

Importantly, the feeling is based on perceptions of what is received, such as quality, self-

feature and performance of a particular product. Furthermore, perceived quality often

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differs from the actual quality of a particular product, or a brand, and derives from

consumer's previous experiences.

d)Brand Association

Brand association connects directly or indirectly consumers to a particular brand and

thinking of the brand that is identified its product or service category likes for consumer

perceives Malaysian Airlines as low fares and good service associated with. The

associations are usually meant to something and built upon product attributes such as

product characteristics or features are identified and differentiated (Armstrong et al.

2005), and consumer benefits that gains from a consumer's experience of a particular

product or service that is already familiar with, as well as a consumer's thought about a

particular brand, and always influencing consumer purchasing behaviour and build

loyalty.

2.3.2 Brand Positioning

As identified target markets' needs, marketers must try to position its product or brand

and form an image or identity in consumers' minds (Peter et al., 2005, cited in Maggard,

1976). Marketers can associate brand or a product with one or more attributes such as

features and performance in order to obtain differential advantages. However, marketers

can identify the attributes through advertising or packaging, and those attributes that is

relative oftenly has changed a consumer's perceptions of each product from collecting

information and questionnaire.

a) Advertisement

Marketers today widely use advertisements as marketing tools to communicate target

consumers and inform them about the existing of products or services (Belch et al., 2009,

p.18). Advertising describes, presents and brings products or services to consumers as

well as brings them into the stores, and in order to attract consumers' attention to buy it.

Apart from that, Don E. Schultz et al. emphasizes that advertising often affects

29

consumers' attitudes or behaviors towards the advertised products or services. Besides

that, advertising is also used to give consumers information about products and services

as well as to remind them where to find out it. People today are liked to buy a particular

product or service that familiar with and confidence in referred to Tellis (2004), due to

gaining knowledge of, experience with or having loyalty to the advertised products or

services.

b) Social Aspect

Advertising is very powerful influencing consumers' attitude towards consumption on

product and service, as well as bought a result on the societal values and lifestyle.

Advertisers now try to bring a advertisement consistently with values and lifestyle to

adapt with target consumers whose advertisers want to approach. Advertising O' Guinn,

T. C. et al. (2006, p.113) considered a number of social factors that affected by the

advertising on educating consumer's, standards of living, happiness and well being, and

mass media. This research only focus on the first effect is educating consumers and

second is improving living standards.

c)Educating Consumers

Sometimes advertising is one of effective reason transferring education objective or

information to consumer without giving them confusion. By educating and transferring

information, consumers not only approach to get knowledge about the products' features

and they also can know the value and benefits of the product that have. Thus the

advertising sometimes can educate consumer in the good way. Moreover, product and

service advertised can convenient consumer not too spending the time on searching the

goods or services, and the reason is some of advertisement contains sufficiency

information of to the targets, about products' functional features and performance result.

d)Improving Living Standards

Advertising as usually shown on media often promote the valuable and lower cost of

product and service, and thus consumer can save more money to buy them besides drive

benefit from the product. Moreover, advertising gives a variety of choice to consumer

30

like for instance Malaysian Airlines provide many lower fares package to flight over

some destination to draw their targets' attention to purchase their goods. Consumer's

needs change dramatically causes now advertisers need to promote more and newest

product or service to adapt today consumers' taste. Not only that the competitors in

existing market already become wide and advertisers also have to produce fresh and

differ over the competitor.

2.5 Sponsorship

Masterman G. (2007) emphasized that, sponsorship is a special event, or describes as an

integrated communications tool to support firm goals by enhancing image of the

company and its product or shaping consumer attitudes, increasing awareness of brands,

‘pushing' promotion or driving sales for a sponsor, as a result of the way to reach target

markets. Firm today often use sponsorship in resulting to drive sales for a sponsor, and to

offer practical opportunities for selling therefore sales take place due to sponsorship

(ibid). Moreover, in order to successfully reaching target, sponsoring an event is the most

significance key to differentiate brands from competitors and for taking advantages over

competitors.

31

Objectives of Study

To determine the demographic variables of the customers of different brands

of cars.

Examine the buying behaviour about the cars.

To judge the satisfaction level of the people in response to brands

32

33

RESEARCHOBJECTIVE

The objective of the present study can be accomplished by conducting a

systematic market survey. Market Research is a systematic design, collection,

34

analysis and reporting of data and finding that are relevant to different market

situation facing by the company. The marketing research process that will be adopted

in the present study consist of the following stages:

1. Defining the problem and research objective:

The research objective state that what information is needed to

solve the problem. Here the objective of research is to do the market survey

on the basis of perception of the customer with Dainik Jagran .

2. Developing research p lan:

If required. The descriptive and casual approaches may also be used.

Once the problem is defined, the next step is to prepare a plan for getting

the informat ion needed for the research . The present s tudy

wi l l adopt exploratory approach where in there is a need to gather a large

amount of information before making a conclusion

3. Col lect ion and Sources o f Data:

To col lec t the da ta , re levant informat ion i s necessary as

regards to the  project.

Data Collection

Data for the present study is collected from two sources:

Primary sources:

35

The data are collected directly from the universe by conducting

interviews, etc. these are the original sources from which the researcher

directly gathers data which are not previously referred.

Secondary sources:

The data are collected from the secondary sources such as magazines,

journals, etc. These sources consist of already variable data in the form of

statements, and reports, which may include sensory reports, financial

statements of the company, reports of governments departments, etc.

I used both Primary and Secondary sources of data collection.

For primary source I have used Questionnaire. For secondary source I have used Internet, Magazines, and Newspaper etc

Data Approach

There are several Approach of data collection. The primary sources of

data collection are done through –

o Observation

o Interviewing

o Mail survey

o Questionnaire

Observation:

Observation is a mode of primary data collection through which we directly get the data

from a universe and based on that data one can carry on the research.

36

Interviewing:

Interviewing is another mode of direct data collection, which provides complete

information about the universe.

Mail survey:

Through Mail survey, we can get direct data from the universe, the responds and the

feedback based on which the research can be carried out.

Questionnaire:

Questionnaire is the method of data collection, which is very much popular, particularly

in big cities. Different modes of questions are put up on the paper and the particular

universe, on which the research is conducted, are asked to fill their responses.

4 . S a m p l i n g P l a n :

• S a m p l i n g   u n i t s :

  I h a v e c o m p l e t e d m y s u r v e y i n D e h r a d u n c i t y .

• Sampling size:

A survey was conducted for three thousand respondents. The selection of the

respondents was done on the basis of simple random sampling.

5. Analyze the co l lected information:

This involves converting raw material in to useful information. It involves tabulation of

data and using statically measures on them for developing frequency distribution

and calculating the averages and dispersion

37

Limitations of the study

All the research projects are hindered in their smooth flow by some unforeseen problems. The problems arise in the form of constraints by budget, time and scope of the study. The current project was also faced by

38

certain problem. Some of the problems faced in the course of the research are as follows:

A strong unwillingness on the part of the owners of various cars, to participate and aid the research.

The boredom and wavering concentration that set in among the respondents while answering the long questionnaire: thus in turn led to the difficulty of preventing incomplete questionnaires.

Sampling error: the research include a sample size of 100 customers which is not enough to determine the buying behavior of the consumers for buying the cars. Since its not a census survey there is always a chance of error while extrapolating the results of a sample study over the population especially in those researches where the qualitative aspects are concerned. So it’s always doubtful to map the qualitative aspects using a quantitative measure.

39

FINDINGS AND ANALYSIS

Q1. Why you bought your present car? Please rank from the highest order of preference

1. Increase in disposable income2. Better safety at roads3. Family needs4. Increase in family size5. Suits your lifestyle and personality

40

39

12

17

23

9

0

5

10

15

20

25

30

35

40

Increase indisposable

income

Better safetyat roads

Family needs Increase infamily size

Suits yourlifestyle andpersonality

Motives

Motives For buying a car

Series1

Interpretation:

As per the analysis shows, increase in disposable income seems to be the most important reason for buying a car. This trend is reflected in the growth of the Per capita Disposable income and consequently the growth of the Indian automobile industry especially in the B and C segment cars. Similarly, the growing family needs like working partners, increasing family size, status, etc. add to the motives of buying a car.

Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of your preference)

1. Affordable price2. Technical superiority over competition3. Comfort4. Manufacturer’s image5. Value for money6. Safety

41

7. After sale services

Product Specific Reasons for Buying a Car

32

7

912

28

102

Afforable prices

Technical superiority

Comfort

Manufacturer's image

Value for money

Safety

After sale services

Interpretation:

Indian market is still the hard nut to crack for most of the automobile

manufacturers. Though the Indian car industry is among the fastest growing car

markets of the world still the Indian psyche is too complex for the manufacturers

to understand. The most important reason for buying a car when it comes to B

and C segment cars seems to be ‘value for money’. 32% of the respondents

suggested that affordable prices are the most important factor while purchasing a

car. This is the reason for sticking to a particular segment till the next substantial

rise in the personal disposable income. This reason is followed by ‘Value for

money’ where the customers look for the best product, best services and best

repute all bundled in one with the best deal they can strike. This explains the

reason for the stagnant or sudden growth in sale of B and C segment cars just

before budget and near occasions like Diwali.

42

Q3. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5

Safety Parameters 1 2 3 4 5Crossbar under DashboardAir BagsAnti Lock Breaking SystemAerodynamic Shape Intensity of front lights

Customer Satisfaction on the Safety Parameter

3 3 33 3 3 3

11

11

3

11

3

3 43

4

3 4

3

4 43

3

4 5

3 4 5 4

34 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MarutiEstilo

(9)

MarutiWagonR(23)

MarutiSwift

IndicaV2

Aveo Santro Getz

Safety Parameters of Different cars

Cust

om

er S

ati

sfact

ion L

evel

( %

age

)

Intensity of front light

Aerodynamic Shape

ABS

Air Bags

Crossbar under Dashboard

Interpretation:

As can be noted Maruti Swift and Indica V2 fight neck to neck on almost every

front, with Indica marginally better in features like crossbars under the dashboard

and Anti Brake systems. Most of the cars in this segment fare relatively similar

and very close to each other on most of the fronts.

43

Customer Satisfaction Level on Safety Parameters

4 44 4 4 4 4

1 1 3 3 4 4 4

4 44

44 4

5

3 3 33

4 43

3 3 45

4 4 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Esteem Baleno Indigo IndigoMarina

Optra Accent Verna

Cars' Safety Parameters

Cu

sto

mer

sat

isfa

ctio

n le

vel

Intensity of front light

Aerodynamic Shape

ABS

Air Bags

Crossbar under Dashboard

Interpretation:

As one can see most of the respondents are quite happy with the safety

parameters of their respective cars. However, one striking point observed here

are that almost every car fares neutral on the safety parameters.

44

Q4. Please rate your existing car in terms of following parameters

Parameter1 2 3 4 5

Fuel Consumption

Mileage ( Km/ltr)

Pick Up

Stability at higher speed

Top speed

Customer Satisfaction Level on the Fuel Efficiency

3 43 3 3 3 3

3

4

44 3

3 4

3

34

44 5

5

3 3 34 4 4 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MarutiEstilo

(9)

MarutiWagonR(23)

MarutiSwift

IndicaV2

Aveo Santro Getz

Cars' Fuel Efficiency Parameters

Cust

om

er S

ati

sfact

ion L

evel

( %

age

)

Stability at higher speed

Pick up

Mileage

Fuel Consumption

Interpretation:

The customer choice of the car highly depends upon the performance and

maintenance costs of the car. This is the reason why this class of parameter was

chosen for this study. And the results show that Maruti’s Wagon R fares the best

car in its segment as most fuel efficient car of all. Similarly, Wagon R fares the

45

best on the terms like mileage but it lags behind Hyundai’s Santro on pick up

front. So this segment shows a mixed bag of response for the Fuel efficiency and

mileage parameter. Indica V2 performs consistently on all the parameters and

Getz fares really well on pick up whereas it fares badly on fuel consumption.

Considered this condition for Getz it should be seen as a red signal for the

manufacturers so that Getz does not end up being like Fiat’s Palio famous as a

car for ‘drinking petrol.

46

Customer Satisfaction Level on the basis of Fuel Efficiency

3 34

3 3 3 3

33

3

3 3 3 3

3 4 45 5 5 5

4 4 5 5 5 5 5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Esteem Baleno Indigo IndigoMarina

Optra Accent Verna

Car's Fuel Efficiency Parameters

Cust

om

er S

ati

sfact

ion L

evel

( in %

age

te

rms) Stability at higher speed

Pick up

Mileage

Fuel Consumption

Interpretation:

Segment C cars are known as hybrid car segment between the B segments fuel

efficiency with the luxury of the D class. Checking the same it seems that most of

the cars in this segment are placed much closed to each other with very little

difference here and there. Most of the cars are fuel efficient w.r.t their weights

and pick ups. Indigo fares as the best car in terms of fuel efficiency. Baleno fares

a little bit behind than its counterparts as far as the stability at high speeds and

mileage is concerned.

47

Dealer Service Satisfaction Level

Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5

where

1 Highly Satisfied

2 Satisfied

3 Neutral

4 Dissatisfied

5 Highly Dissatisfied

1 2 3 4 5

Distance ( Proximity)

Advertisements (Promotions)

Technical Facilities

Cost of Service

Availability of Spares

Information Provided

Service Time

Charges

Staff

Car Handling ( Delivery & service)

Assured Customer Transactions

Ambience of Service Center

Finance ( Credit) Schemes

Dealers are the middle men between a car manufacturer and its customers.

Dealer thus becomes the most important link in joining the company to its

customers as he is the person who will sell the product, will deliver it and will

keep on providing the after sales services to the customers as and when

48

required. So, it becomes necessary automatically to study dealer as a part of

customers’ satisfaction journey with the product called car!

Why Maruti fares so well ahead of its competitors till date and its the

largest car company in India with the largest market share in A and B segment is

because during the protected regime it build a dealers network so strong that its

yet very difficult for most of the competitors to set up a network as large as

Maruti. So wherever you go its not difficult to find a Maruti service station and a

Maruti dealer. This is how Maruti has maintained relationships with its customers

and has been able to convert most of them into a repeat customer. So, dealer

network is something of such importance that while studying the customer’s

satisfaction profile its almost impossible to ignore it.

49

Customer Satisfaction Level on the Basis of Dealers

5 54

45

45 4

4 4 4 45

34

4

3

4

4

4 4

44 4 4

4

2 34

1

2

4

4 2

54 4 5

4

4 4 42

4 53 3 5 4 4 4 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dealers releated parameters for diff Manufacturers

Cus

tom

er S

atis

fact

ion

Leve

l ( in

%ag

e te

rms)

Hyundai

General Motors

Tata Motors

Maruti Suzuki

Interpretation:

While buying a car, dealers ‘choice play a very important role in deciding the

company and model’s choice. So dealers act as influencers on the complete

buying behavior of the prospective customers. Among all the listed factors Maruti

fares the best among all its counter parts in terms of dealer density which is quite

obvious. Also, the cost of service provided by Maruti dealers is the lowest

followed by Tata Motors. Similarly, for B and C segment cars Maruti emerges out

as the clear winner among the four car companies studied all thanks to the vast,

extensive and well managed dealer system.

50

Q2. How do you rate the brand image of your car?

1 2 3 4 5 Very Low Very High

Brand Image

3

4 4 4

3

5

3

0

1

2

3

4

5

6

MarutiEstilo

MarutiWagon R

MarutiSwift

Indica V2 Aveo Santro Getz

Car Brands

Cust

om

er P

erce

pti

on (

Avg

)

Series1

Interpretation:

As per the analysis, Santro is the car whose brand image is most preferred in the

market. This is because of the reason, that it’s from the house of Hyundai a

South Korean company known for its overall image. On the contrary Maruti Estilo

and Aveo share the same platform on the brand image. This can be attributed to

the fact that both these cars are relatively new on the block and market takes

time to imbibe and give the brand an image. This is established by the fact that

Maruti’s Wagon R and Swift are exactly the same as far as the image is

concerned.

51

Customer Perception of Different Cars

4

3

4

3

5

4 4

0

1

2

3

4

5

6

Esteem Baleno Indigo IndigoMarina

Optra Accent Verna

Car Brands

Cust

om

er P

erce

pti

on (

Avg

)

Series1

Interpretation:

As the analysis reveals GM’s Optra fares as the Best Car as far as customers’

perception is concerned about the brand image of the car in the C segment. This

is because of the fact that GM itself commands an amazing brand image among

its customers. Accent and Verna both Hyundai cars share the same position.

52

Q3. Will you recommend your car to your friends?

Yes No

Customer's Ultimate Perception

73

27

0

10

20

30

40

50

60

70

80

Yes No

Customer Action ( Will you recommend your car to your friends?)

Fre

qu

ency

Interpretation:

It seems logical that satisfied customers will someday become loyal customers,

in other words there is a positive correlation between customer satisfaction

scores and customer buying behavior. If a customer rates the car very high in

satisfying his or her needs, the car manufacturer should expect more referrals

and this is reflected in the analysis that 73% customers say that they will refer

their car to their friends even if they move to other segment or other brand.

53

Demographics

20

41

21

17

age group

<21

21-35

36-55

>55

I surveyed around 100 people who belonged to various age groups. The survey

of 4 age groups was done. The four age groups were:

Less than 21 years

21 -35 years

36-54 years

More than 55 years

54

MONTHLY FAMILY INCOME

33

28

19

19

monthly family

income

<50,000

50,001-1,00,000

1,00,001-2,00,000

>2,00,001

I surveyed around 200 people who belonged to various monthly family income

groups. The survey of 4 income groups was done. The four income groups were:

Less than 50000

50000 - 1,00,000

1,00,001 – 2,00,000

More than 2,00,001

Interpretation:

Above graphs exhibits the income bracket of the sample size, as evident the majority of the sample is in the income bracket of < 50,000 a month income. Though none of the bracket is highly skewed, this enables the study to be wide and not dependent on a set income class, which was a fortunately desirable result of simple random sampling.

55

Cross Tabulation

1. Motive to buy the car*segment car B and C

Affordable prices

Technical Superiority over competition

Com

fort

manufacturer's im

age

value for money

Safety

After sales service

respondant's objective buying a car brand

0

5

10

15

20

Co

un

t

segment Car B

Estilo

Wagon R

Swift

Santro

Getz

Indica V2

Aveo

Esteem

Baleno

Accent

Verna

Indigo Marine

Indigo

Optra

Bar Chart

Interpretation:

According to the result, I found that choice of car depends upon these following factors:

So the choice of car is not driven only by intensive factors such as brand perception but is hugely influenced by extensive factors such as price, service, and models available, financing options etc. also the choice of the car is largely influenced by the manufacture image. This is why Maruti is perceived as a value for money car and Getz emerges out as a winner in the B segment for this criteria. As Getz is from the house of Hyundai known for its technology and great design is far better perceived as a preferred car than other cars. But a word of caution here, this perception may or may not result in a converted sale.

56

2. Recommend the car to your friend*ranking of Brand and company

yes no

Would you recommend your car to your friends

0

10

20

30

40

Co

un

t

respondants' ranking of

brand and company

image

Very Low

Low

Neutral

High

Very High

Bar Chart

Interpretation:

The graph shows that people who rank their car high or very high on the brand image are the people who recommend their car to their friend. This is something the car companies should look for as these people may not be the brand loyal but are definitely the people who help a company to reinforce the brand image propagated by the company.

57

3. ranking of Brand and Image*Segment B and C car

Very Low Low Neutral High Very High

respondants' ranking of brand and company image

0

2

4

6

8

10

Co

un

t

segment Car B and

C

Estilo

Wagon R

Swift

Santro

Getz

Indica V2

Aveo

Esteem

Baleno

Accent

Verna

Indigo Marine

Indigo

Optra

Bar Chart

Interpretation:

This graph shows that how brand image is useful in making the choice of a car especially in the B and C segment. So, Santro is the car whose brand image is on the top and it’s the most preferred car.

58

CONCLUSION

59

To conclude, the results show that the companies are playing on the peripheral

cues to maintain their Total Relationship Management and connect to the

customers both present and potential. The companies are operating in a highly

aggressive and competitive global market place and this climate has led to the

emphasis on quality in all aspects. TQM focuses on integration and coordination

as well as the continuous improvement of all activities and processes. Total

Relationship Management (TRM) is a very recent marketing strategy and

philosophy. It focuses on and is concerned with all integrated internal and

external activities within and between the organizations. These two terms are

integrated by the manufacturers by building good quality products and building

good relationship with dealers and enhancing service levels.

However, when studied from the point of view of a customer there seems to be

no major difference among the car brands in a segment as far as performance is

concerned. The brand perception is dependant mostly on the peripheral cues

depending upon the nature and quality of the service provided along with the

pricing, maintenance, availability of spare parts and related issues. So, a

question arises here that is this the end of road for the branding of cars? Has the

commoditization of cars has started and its time that manufacturers must read

the writing on the wall? It seems so! It seems as an undercurrent sentiment is

flowing and the perception of the customers is changing according to it. So this

might be the reason that despite Verna faring so high on the performance

parameters still lags on the account of converted sales.

The study shows that brand perception is something which starts building up

before a car is purchased and goes on with its use and is reflected in the

recommendations the customer makes to his acquaintances for the same car.

Also, its seen that the customer might not be using the car still he holds the

perceptions about it. Brand personality of a car is enforced by the sellers in the

60

mindsets of the customers and the customers react to it by forming their

perceptions about the car and this reflects in the overall brand image of the car.

So brand image and brand personality complement each other and the brand

perception aids the building of brand image.

Dealers, as per the study findings, play a very important role in building up

the brand perception of the cars. Since dealers are the connecting link between

the customers and the manufacturers thus becoming the most important link in

joining the company to its customers as he is the person who will sell the

product, will deliver it and will keep on providing the after sales services to the

customers as and when required.

So, it becomes necessary automatically to study dealer as a part of customers’

satisfaction journey with the product called car! Their proximity to the customers,

the service provided by them and the relationship maintained by them with the

customers helps the car companies to establish and reinstate the brand

personality communicated by them to the customers.

Finally the major point that emerges out of this detailed study is a caution for

the car companies. It says that there is no doubt that Indian car market may be

growing with a double digit figure still the car companies have a long way to

travel to convince their customers about the brand personality of their cars and

how it suits the prospective buyers. Simply because it simply is not a guarantee

that how so ever good the customer might be holding the brand perception and

how so ever good the brand image may be it is not a guarantee that it will convert

into sale. Cars just like clothes and accessories suit the style and persona of a

person and since all cars will become commodity someday the key to sell and

excel in the market will lie with a person who knows how to use the perceptions

of the customers to its use and sell the cars ‘coz ultimately only that car survives

w

61

ANNEXURE

REFRENCES

QUESTIONAIRE

62

References:

Sites Visited -

www.siamindia.comwww.autocarindia.comwww.overdrive.comwww.hyundai.co.inwww.ibef.org

Books consulted -

Building Strong Brands- David A Aaker

63

Questionnaire

For Customers:

Q1. Why you bought your present car? Please rank from the highest order of

preference

1. Increase in disposable income

2. Better safety at roads

3. Family needs

4. Increase in family size

5. Suits your lifestyle and personality

Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in

order of your preference)

1. Affordable price

2. Technical superiority over competition

3. Comfort

4. Manufacturer’s image

5. Value for money

6. Safety

7. After sale services

64

Product Satisfaction Level

Q3. Please rate your existing car in terms of understated Interior Design features

on a scale of 1 to 5 where

1 Highly Dissatisfied

2 Dissatisfied

3 Neutral

4 Satisfied

5 Highly Satisfied

Interior Type 1 2 3 4 5

Seats design

Leg Room

Dash Board

Interior Colour

Music System

Adjustable Front seat Headrest

Q4. Please rate your existing car in terms of understated Safety features on a

scale of 1 to 5

Safety Parameters 1 2 3 4 5

Crossbar under Dashboard

Air Bags

Anti Lock Breaking System

Aerodynamic Shape

Intensity of front lights

65

Q5. Please rate your existing car in terms of following parameters

Parameter 1 2 3 4 5

Fuel Consumption

Mileage ( Km/ltr)

Pick Up

Stability at higher speed

Top speed

66

Dealer Service Satisfaction Level

Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5

where

1 Highly Satisfied

2 Satisfied

3 Neutral

4 Dissatisfied

5 Highly Dissatisfied

1 2 3 4 5

Distance ( Proximity)

Advertisements (Promotions)

Technical Facilities

Cost of Service

Availability of Spares

Information Provided

Service Time

Charges

Staff

Car Handling ( Delivery & service)

Assured Customer Transactions

Ambience of Service Center

Finance ( Credit) Schemes

Q2. How do you rate the brand image of your car?

1 2 3 4 5

Very Low Very High

67

Q3. Will you recommend your car to your friends?

Yes

No

Q4. If yes, will you buy your new car in the

Same segment , same manufacturer

Same segment, different manufacturer

Upper segment, same manufacturer

Upper segment, different manufacturer

Age group:

<21 21-35

36-55 >55

What is your monthly Family income?

Less than 50000

Rs 50,000 –Rs 1, 00,000

Rs 1, 00,001– Rs 2, 00,000

More than Rs 2, 00,001

Number of car’s owned:

Present Car (s) owned:

NAME: SEX:

Phone NO:

68