Consumer buying behavior of wagonR car of maruti...

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Consumer buying behavior of wagonR car of maruti Suzuki. NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 1 Index page Chapter no. TOPIC Page no. College certificate Declaration Acknowledgement 1. Industry profile 1.1 HISTORY OF THE AUTOMOBILE 1.2 AUTOMOTIVE INDUSTRY IN INDIA 1.3 HISTORY 1.4 INDUSTRY DEFINITION 1.5 SUPPLY CHAIN OF AUTOMOBILE INDUSTRY 1.6 EXPORT 2 3 16 18 19 19 20 2. Company profile 2.1 PROFILE 2.2 INDUSTRIAL RELATIONS 2.3 SERVICES OFFERED 2.4 ANNOUNCEMANT FOR MARUTI SUZUKI 2.5 LATEST KEY DEVELOPMENT 23 25 29 30 37 38 3. Theoretical framework 3.1.CONSUMER BUYING BEHAVIOR 3.2 THE IMPORTANCE OF CONSUMER BEHAVIOR 3.3 FACTORS AFFECTINF CONSUMER BUYING BEHAVIOR I. CULTURAL FACTOR II. SOCIAL FACTORS III. PERSONAL FACTORS IV. PSYCHOLOGICAL FACTORS 3.4 BUYING BEHAVIOUR PROCESS I. 1.STEP:NEED RECOGNITION II. 2.STEP INFORMATION SEARCH III. 3.STEP EVALUATION OF ALTERNATIVES IV. 4PURCHASE BEHAVIOR 39 40 41 42 42 43 44 45 46 46 46 47 47 4. Research methodology 4.1 RESEARCH DEFINITION 4.2 OBJECTVE OF STUDY I. PRIMARY OBJECTIVE II. SECONDARY OBJECTIVE 4.3 IMPORTANCE OF STUDY 4.4 RESEARCH DESIGN 52 53 53 53 53 54 54

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 1

Index page

Chapter

no.

TOPIC Page

no.

College certificate

Declaration

Acknowledgement

1. Industry profile 1.1 HISTORY OF THE AUTOMOBILE

1.2 AUTOMOTIVE INDUSTRY IN INDIA

1.3 HISTORY

1.4 INDUSTRY DEFINITION

1.5 SUPPLY CHAIN OF AUTOMOBILE INDUSTRY

1.6 EXPORT

2

3

16

18

19

19

20

2. Company profile 2.1 PROFILE

2.2 INDUSTRIAL RELATIONS

2.3 SERVICES OFFERED

2.4 ANNOUNCEMANT FOR MARUTI SUZUKI

2.5 LATEST KEY DEVELOPMENT

23

25

29

30

37

38

3. Theoretical framework 3.1.CONSUMER BUYING BEHAVIOR

3.2 THE IMPORTANCE OF CONSUMER BEHAVIOR

3.3 FACTORS AFFECTINF CONSUMER BUYING

BEHAVIOR

I. CULTURAL FACTOR

II. SOCIAL FACTORS

III. PERSONAL FACTORS

IV. PSYCHOLOGICAL FACTORS

3.4 BUYING BEHAVIOUR PROCESS

I. 1.STEP:NEED RECOGNITION

II. 2.STEP INFORMATION SEARCH

III. 3.STEP EVALUATION OF ALTERNATIVES

IV. 4PURCHASE BEHAVIOR

39

40

41

42

42

43

44

45

46

46

46

47

47

4. Research methodology 4.1 RESEARCH DEFINITION

4.2 OBJECTVE OF STUDY

I. PRIMARY OBJECTIVE

II. SECONDARY OBJECTIVE

4.3 IMPORTANCE OF STUDY

4.4 RESEARCH DESIGN

52

53

53

53

53

54

54

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 2

4.5 TYPES OF RESEARCH DESIGN

I. EXPLORATORY RESEARCH

II. DESCRIPTIVE RESEARCH

III. CAUSAL RESEARCH

4.6 COLLECTION OF DATA

I. PRIMARY DATE

II. SECONDARY DATA

4.7 DATE COLLECTION TECHNIQUES

I. SAMPLE SIZE

II. SAMPLE METHOD

III. SAMPLE FRAME

IV. SURVEY TOOL

4.8 ANALYSIS OF THE DATA

4.9 LIMITATION OF STUDY

4.10 SCOPE OF STUDY

55

55

55

56

56

57

57

57

57

57

57

57

57

58

58

5. Analysis & Finding

5.1 ANALAYSIS

5.2 FINDINGS

59

73

6. Conclusion & recommendation. I. CONCLUSION

II. RECOMMENDATION

75

75

76

7. Bibliography

Annexure

77

78

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 3

CHAPTER-1 INDUSTRY

PROFILE

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 4

Automobile Industry

1 . 1 H i s t o r y o f t h e a u t o m o b i l e

The design of the Cugnot Steam Trolley (Jonathan Holgunisburg) (1769)

The history of the automobile begins as early as 1769, with the creation

of steam engine automobiles capable of human transport. In 1806, the first

cars powered by an internal combustion engine running on fuel

gas appeared, which led to the introduction in 1885 of the ubiquitous

modern gasoline- or petrol-fueled internal combustion engine. Cars

powered by power briefly appeared at the turn of the 20th century, but

largely disappeared from use until the turn of the 21st century. The early

history of the automobile can be divided into a number of eras, based on the

prevalent means of propulsion during that time. Later periods were defined

by trends in exterior styling, and size and utility preferences.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 5

17th century:

Ferdinand Verbiest, a member of a Jesuit mission in China, built the

first steam-powered vehicle around 1672, designed as a toy for the Chinese

Emperor, it being of small scale and unable to carry a driver or passenger but,

quite possibly, the first working steam-powered vehicle ('auto-mobile').

18th century:

Steam-powered self-propelled vehicles large enough to transport people and

cargo were first devised in the late 18th century. Nicolas-Joseph

Cugnotdemonstrated his fardier à vapeur ("steam dray"), an experimental

steam-driven artillery tractor, in 1770 and 1771. As Cugnot's design proved to

be impractical, his invention was not developed in his native France. The

centre of innovation shifted to Great Britain. By 1784, William Murdoch had

built a working model of a steam carriage in Redruth, and in 1801 Richard

Trevithick was running a full-sized vehicle on the road in Camborne.[4]

Such

vehicles were in vogue for a time, and over the next decades such innovations

as hand brakes, multi-speed transmissions, and better steering developed.

Some were commercially successful in providing mass transit, until a backlash

against these large speedy vehicles resulted in the passage of the Locomotive

Act(1865), which required self-propelled vehicles on public roads in the

United Kingdom to be preceded by a man on foot waving a red flag and

blowing a horn. This effectively killed road auto development in the UK for

most of the rest of the 19th century; inventors and engineers shifted their

efforts to improvements in railway locomotives. (The law was not repealed

until 1896, although the need for the red flag was removed in 1878.)

The first automobile patent in the United States was granted to Oliver Evans in

1789.

19th century:

Among other efforts, in 1815, a professor at Prague Polytechnic, Josef Bozek,

built an oil-fired steam car. Walter Hancock, builder and operator of

London steam buses, in 1838 built a four-seat steam phaeton.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 6

What some people define as the first "real" automobile was produced

by Amédée Bollée in 1873, who built self-propelled steam road vehicles to

transport groups of passengers.

The American George B. Selden filed for a patent on May 8, 1879. His

application included not only the engine but its use in a 4-wheeled car. Selden

filed a series of amendments to his application which stretched out the legal

process, resulting in a delay of 16 years before the US 549160was granted on

November 5, 1895.

Karl Benz, the inventor of numerous car-related technologies, received a

German patent in 1886.

The four-stroke petrol (gasoline) internal combustion engine that constitutes

the most prevalent form of modern automotive propulsion is a creation of

Nikolaus Otto. The similar four-stroke diesel engine was invented by Rudolf

Diesel. The hydrogen fuel cell, one of the technologies hailed as a replacement

for gasoline as an energy source for cars, was discovered in principle

by Christian Friedrich Schonbein in 1838. The battery electric car owes its

beginnings to Ányos Jedlik, one of the inventors of the electric motor,

and Gaston Plant, who invented the lead-acid battery in 1859.

The first carriage sized automobile suitable for use on existing wagon roads in

the United States was a steam powered vehicle invented in 1871, by Dr. J.W.

Car hart, a minister of the Methodist Episcopal Church, in Racine, Wisconsin.

It induced the State of Wisconsin in 1875, to offer a $10,000 award to the first

to produce a practical substitute for the use of horses and other animals. They

stipulated that the vehicle would have to maintain an average speed of more

than five miles per hour over a 200 mile course. The offer led to the first city

to city automobile race in the United States, starting on July 16, 1878, in

Green Bay, Wisconsin, and ending in Madison, via Appleton, Oshkosh,

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 7

Waupun, Watertown, Fort Atkinson, and Janesville. While seven vehicles

were registered, only two started to compete: the entries from Green Bay and

Oshkosh. The vehicle from Green Bay was faster, but broke down before

completing the race. The Oshkosh finished the 201 mile course in 33 hours

and 27 minutes, and posted an average speed of six miles per hour. In 1879,

the legislature awarded half the prize.

Steam-powered automobiles continued development all the way into the early

20th century, but the dissemination of petrol engines as the motive power of

choice in the late 19th century marked the end of steam automobiles except as

curiosities. Whether they will ever be reborn in later technological eras

remains to be seen. The 1950s saw interest in steam-turbine cars powered by

small nuclear reactors (this was also true of aircraft), but the dangers inherent

in nuclear fission technology soon killed these ideas. The need for global

changes in energy sources and consumption to bring about sustainability

and energy independence has led 21st century engineers to think once more

about possibilities for steam use, if powered by modern energy sources

controlled with computerized controls, such as advanced electric batteries, fuel

cells, photovoltaic, biofuels, or others.

Electric automobiles:

IN 1828, Ányos Jedlik, a Hungarian who invented an early type of electric

motor, created a tiny model car powered by his new motor.[] In 1834,

Vermont blacksmith Thomas Davenport, the inventor of the first American

DC electrical motor, installed his motor in a small model car, which he

operated on a short circular electrified track. In 1835, Professor Sibrandus

Starting of Groningen, the Netherlands and his assistant Christopher Becker

created a small-scale electrical car, powered by non-rechargeable primary

cells.[11]

In 1838, Scotsman Robert Davidson built an electric locomotive that

attained a speed of 4 miles per hour (6 km/h). In England, a patent was granted

in 1840 for the use of rail tracks as conductors of electric current, and similar

American patents were issued to Lilley and Colton in 1847. Between 1832 and

1839 (the exact year is uncertain), Robert Anderson of Scotland invented the

first crude electric carriage, powered by non-rechargeable primary cells.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 8

Internal combustion engines

1885-built Benz Patent Motorwagen, the first car to go into production with an

internal combustion engine

Early attempts at making and using internal combustion engines were

hampered by the lack of suitable fuels, particularly liquids, and the earliest

engines used gas mixtures.

Early experimenters using gases. In 1806, Swiss engineer François Isaac de

Rivaz who built an engine powered by internal combustion of a hydrogen

and oxygen mixture. In 1826, Englishman Samuel Brown who tested his

hydrogen-fuelled internal combustion engine by using it to propel a vehicle

up Shooter's Hill in south-east London. Belgian-born Etienne Lenoir's Hippo

mobile with a hydrogen-gas-fuelled one-cylinder internal combustion engine

made a test drive from Paris to Joinville-le-Pont in 1860, covering some nine

kilometers in about three hours A later version was propelled by coal gas.

A Delamare-Deboutteville vehicle was patented and trialed in 1884.

About 1870, in Vienna, Austria (then the Austro-Hungarian Empire),

inventor Siegfried Marcus put a liquid-fuelled internal combustion engine on a

simple handcart which made him the first man to propel a vehicle by means of

gasoline. Today, this car is known as "the first Marcus car". In 1883, Marcus

secured a German patent for a low-voltage ignition system of the magneto

type; this was his only automotive patent. This design was used for all further

engines, and the four-seat "second Marcus car" of 1888/89. This ignition, in

conjunction with the "rotating-brush carburetor", made the second car's design

very innovative.

It is generally acknowledged that the first really practical automobiles

with petrol/gasoline-powered internal combustion engines were completed

almost simultaneously by several German inventors working independently:

Karl Benz built his first automobile in 1885 in Mannheim. Benz was granted a

patent for his automobile on 29 January 1886, and began the first production

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 9

of automobiles in 1888, after Bertha Benz, his wife, had proved - with the first

long-distance trip in August 1888, from Mannheim to Pforzheim and back -

that the horseless coach was absolutely suitable for daily use. Since 2008

a Bertha Benz Memorial Route commemorates this event.

Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889

designed a vehicle from scratch to be an automobile, rather than a horse-drawn

carriage fitted with an engine. They also are usually credited with invention of

the first motorcycle in 1886, but Italy's Enrico Bernardi of the University of

Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-

cylinder petrol motor, fitting it into his son's tricycle, making it at least a

candidate for the first automobile, and first motorcycle, Bernardi enlarged the

tricycle in 1892 to carry two adults.

One of the first four-wheeled petrol-driven automobiles in Britain was built

in Birmingham in 1895 by Frederick William Lanchester, who also patented

the disc brake; and the first electric starter was installed on an Arnold, an

adaptation of the Benz Velo, built between 1895 and 1898.

In all the turmoil, many early pioneers are nearly forgotten. In 1891, John

William Lambert built a three-wheeler in Ohio City, Ohio, which was

destroyed in a fire the same year, while Henry Nadigconstructed a four-

wheeler in Allentown, Pennsylvania. It is likely they were not the only one

Brass Era car:

:

Named for the wide spread use of brass in the United

States,the Brass (or Edwardian) Era lasted from roughly 1905 through to the

beginning of World War I in 1914.

Within the 15 years that make up this era, the various experimental designs

and alternate power systems would be marginalized. Although the modern

touring had been invented earlier, it was not until Leaser’s Systems Pan

hard was widely licensed and adopted that recognizable and standardized

automobiles were created. This system specified front-engine, rear-wheel

drive internal combustion engine cars with a sliding gear transmission.

Traditional coach-style vehicles were rapidly abandoned, and buckboard

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 10

runabouts lost favor with the introduction of tonneaus and other less-

expensive touring bodies.

By 1906, steam car development had advanced, and they were among the

fastest road vehicles in that period

By 1906, steam car development had advanced, and they were among the

fastest road vehicles in that period. Throughout this era, development

of automotive technology was rapid, due in part to hundreds of small

manufacturers competing to gain the world's attention. Key developments

included the electric ignition system (by dynamotor on the Arnold in

1898, though Robert Bosch, 1903, tends to get the credit),independent

suspension (actually conceived by Bollée in 1873), and four-wheel brakes (by

the Arrol-Johnston Company of Scotland in 1909) Leaf springs were widely

used for suspension, though many other systems were still in use, with angle

steel taking over from armored wood as the frame material of

choice. Transmissions and throttle controls were widely adopted, allowing a

variety of cruising speeds, though vehicles generally still had discrete speed

settings, rather than the infinitely variable system familiar in cars of later eras.

Safety glass also made its debut, patented by John Wood in England in

1905.] (It would not become standard equipment until 1926, on

a Rickenbacker.)

Between 1907 and 1912 in the United States, the high-wheel motor

buggy (resembling the horse buggy of before 1900) was in its heyday, with

over seventy-five makers including Holsman (Chicago), IHC (Chicago),

and Sears (which sold via catalog); the high-wheeler would be killed by the

Model In 1912,Hupp (in the U.S., supplied by Hale & Irwin) and BSA (in the

UK) pioneered the use of all-steel bodies, joined in 1914 by Dodge (who

produced Model T bodies).[While it would be another two decades before all-

steel bodies would be standard, the change would mean improved supplies of

superior-quality wood for furniture makers.

Some examples of cars of the period included:

1908–1927 Ford Model T — the most widely produced and available car of

the era. It used a planetary transmission, and had a pedal-based control system.

Ford T was proclaimed as the most influential car of the 20th century in the

international Car of the Century awards.

1910 Mercer Race about — regarded as one of the first sports cars, the Race

about expressed the exuberance of the driving public, as did the similarly

conceived American Under slung and Hispano-Suiza Alphorns.

1910–1920 Bugatti Type 13 — a notable racing and touring model with

advanced engineering and design. Similar models were the Types 15, 17, 22,

and 23.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 11

Vintage era

The vintage era lasted from the end of World War I (1919), through the Wall Street

Crash at the end of 1929. During this period, the front-engine car came to dominate,

with closed bodies and standardized controls becoming the norm. In 1919, 90% of

cars sold were open; by 1929, 90% were closed. Development of the internal

combustion engine continued at a rapid pace, with multi-valve and overhead

camshaft engines produced at the high end, and V8,V12, and even V16

engines conceived for the ultra-rich. Also in 1919, hydraulic brakes were invented

by Malcolm Longhead (co-founder of Lockheed); they were adopted

by Duisenberg for their 1921 Model A. Three years later, Hermann

Rieseler of Vulcan Motor invented the first automatic transmission, which had two-

speed planetary gearbox, torque converter, and lockup clutch; it never entered

production. (Its like would only become an available option in 1940.) Just at the end

of the vintage era, tempered glass (now standard equipment in side windows) was

invented in France. In this era the revolutionary pontoon design of cars without fully

articulated fenders, running boards and other non-compact ledge elements was

introduced in small series but a mass production of such cars was started much late

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 12

Pre-WWII era

The pre-war part of the classic era began with the Great Depression in 1930,

and ended with the recovery after World War II, commonly placed at 1948. It

was in this period that integrated fenders and fully closed bodies began to

dominate sales, with the new saloon/sedan body style even incorporating

a trunk or boot at the rear for storage. The old open-top runabouts, phaetons,

and touring cars were phased out by the end of the classic era as wings,

running boards, and headlights were gradually integrated with the body of the

car.By the 1930s, most of the mechanical technology used in today's

automobiles had been invented, although some things were later "re-invented",

and credited to someone else. For example, front-wheel drive was re-

introduced by André Citroën with the launch of the Traction Avant in 1934,

though it had appeared several years earlier in road cars made

by Avis and Cord, and in racing cars by Miller (and may have appeared as

early as 1897). In the same vein, independent suspension was originally

conceived by Amédée Bollée in 1873, but not put in production until

appearing on the low-volume Mercedes-Benz 380 in 1933, which prodded

American makers to use it more widely. In 1930, the number of auto

manufacturers declined sharply as the industry consolidated and matured,

thanks in part to the effects of the Great Depression.

Exemplary pre-war automobiles:

1932–1939 Alvis Speed 20 and Speed 25 — the first cars with all-

synchromesh gearbox.

1932–1948 Ford V-8 (Model B) — introduction of the powerful flathead

V8 in mainstream vehicles, setting new performance and efficiency standards.

1934–1940 Bugatti Type 57 — a singular refined automobile for the wealthy.

1934–1956 Citroën Traction Avant — the first mass-produced front-wheel

drive car, built with monocoque chassis.

1936–1955 MG T series — sports cars with youth appeal at an affordable

price.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 13

1938–2003 Volkswagen Beetle — a design for efficiency and low price,

which was produced for over 60 years with minimal basic change; it has the

largest production in history with over 20 million units produced in several

counties. The car was awarded the fourth place in the international Century

competition. A new car echoing the styling of the original has been produced

in the 21st century.

1936–1939 Rolls-Royce Phantom III — V12 engine pinnacle of pre-war

engineering, with technological advances not seen in most other manufacturers

until the 1960s. Superior performance and quality.

1946–1958 GAZ-M20 Pobeda — Soviet mass car with full ponton

design.1947–1958 Standard Vanguard — British mass car with full ponton

design some and

1948–1971 Morris Minor – a popular and typical early post-war car exported

around the world

1953–1971 Chevrolet Bel Air and 1953–2002 Cadillac Eldorado Brougham –

in its first generations were a bright representatives of golden epoch of

American tailfin car design

1955–1976 Citroën DS — bright and non-often representative of unusual

bogie (hydro pneumatic) и design (one of the most mind), due to what became

a movie star; car was awarded the third place on international Car of the XX

Century competition.

1959–2000 Mini — this quintessential small car lasted for four decades, and is

one of the most famous cars of all time; car was awarded the second place on

international Car of the XX Century competition; car has a re-styled new

variant in XXI century.

1961–1975 Jaguar E-type — the E-type saved Jaguar on the track and in the

showroom, and was a standard for design and innovation in the 1960s.

1963–1989 Porsche 911 – wanted non-cheap but mass sport car, famous its

company; car was awarded the fifth place on international Car of the XX

Century competition; car has a successors with similar design.

1964–present Ford Mustang — the pony car that became one of the best-

selling and most-collected cars of the era.

1966–end of 20th century FIAT 124 — an Italian car that was license

produced in many other counties including the Soviet Union where as

the VAZ-2101 it launched mass automobilisation.

1967 NSU Ro 80 — the basic wedge profile of this design was much emulated

in subsequent decades. unlike that its other technical innovation - rotor engine.

1967–2002 Chevrolet Camaro – The pony car that General Motors introduced

to compete with Ford's mustang which featured the relatively new Coke bottle

styling.

1969 Datsun 240Z — one of the first Japanese sports cars to be a smash hit

with the North American public, it paved the way for future decades of

Japanese strength in the automotive industry. It was affordable and well

built] and had great success both on the track and in the showroom.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 14

Modern era

The modern era is normally defined as the 25 years preceding the current

year. However, there are some technical and design aspects that differentiate

modern cars from antiques. Without considering the future of the car, the

modern era has been one of increasing standardization, platform sharing,

and computer-aided design.

Some particularly notable advances in modern times are the widespread

of front-wheel drive and all-wheel drive, the adoption of the diesel engine, and

the ubiquity of fuel injection. While all of these advances were first attempted

in earlier eras, they so dominate the market today that it is easy to overlook

their significance. Nearly all modern passenger cars are front-wheel

drivemonocoque/unibody designs, with transversely mounted engines, but this

design was considered radical as late as the 1960s.

Body styles have changed as well in the modern era. Three types,

the hatchback, sedan, and sport utility vehicle, dominate today's market, yet

are relatively recent concepts. All originally emphasised practicality, but have

mutated into today's high-powered luxury crossover SUV, sports wagon, two-

volume Large MPV. The rise of pickup trucks in the United States, and SUVs

worldwide has changed the face of motoring, with these "trucks" coming to

command more than half of the world automobile market. There was also the

appearance of new one-volumeMPV class (smaller non-commercial

passenger minivans), among the first of which were the French Renault

Espace and US Pontiac Trans Sport.

The modern era has also seen rapidly rising fuel efficiency and engine output.

Once the automobile emissions concerns of the 1970s were conquered with

computerised engine management systems, power began to rise rapidly. In the

1980s, a powerful sports car might

have produced 200 horsepower (150 kW) – just 20 years later, average

passenger cars have engines that powerful, and some performance models

offer three times as much power.

Since 2009 China becamed the new world's absolute car manufacturer leader

with production more than US, Japan or all Europe. Besides of large growth of

car production in Asian and other countries, the junctions (and breaks) of

producents into transnational corporate groups and the transnational

"platforms" of a cars becamed as wide practice.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 15

Since the end of the 20th century, several award competitions of cars and

trucks have become widely known, such as European Car of the Year Car of

the Year Japan, Year, World, Truck of the Year, and International Car of the

Year, so that vehicles of different classes, producers, and countries win

alternately. Also, Car of the Century awards were held, in which in the US

the Ford Model T was named as most influential car of the 20th century.

Exemplary modern cars:

1966–present Toyota Corolla — a simple small Japanese saloon/sedan that has come

to be the best-selling car of all time.

1970–present Range Rover — the first take on the combination of luxury and four-

wheel drive utility, the original 'SUV'. Such was the popularity of the original Range

Rover Classic that a new model was not brought out until 1994.

1973–present Mercedes-Benz S-Class — electronic Anti-lock Braking System,

supplemental restraint airbags, seat belt pretensioners, and electronic traction control

systems all made their debut on the S-Class. These features would later become

standard throughout the car industry.

1975–present BMW 3 Series — the 3 Series has been on Car and Driver magazine's

annual Ten Best list 17 times, making it the longest running entry in the list.

1977–present Honda Accord saloon/sedan — this Japanese sedan became the most

popular car in the United States in the 1990s, pushing the Ford Taurus aside, and

setting the stage for today's upscale Asian sedans.

1981–1989 Dodge Aries and Plymouth Reliant — the "K-cars" that saved Chrysler as

a major manufacturer. These models were some of the first successful

American front-wheel drive, fuel-efficient compact.

1983–present Chrysler minivans — the two-box minivan design nearly pushed

the station wagon out of the market, and presaged today's crossover SUVs.

1984–present Renault Escape — first mass one-volume car of non-commercial MPV

class.

1986–present Ford Taurus — this mid-sized front-wheel drive sedan with modern

computer-assisted design dominated the American market in the late 1980s, and

created a design revolution in North America.

1989–1999 Pontiac Trans Sport — was one the first of the one box cars.

1997–present Toyota Prius — launched in the Japanese market, in September 2010

reached worldwide cumulative sales of 2.0 million units, becoming the most

iconic hybrid electric vehicle in the world.

1998–present Ford Focus — one of the most popular hatchbacks across the globe, that

is also one of Ford's best selling world cars.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 16

2008–present Tata Nano — The Tata Nano is an inexpensive( 100,000 ~

$2200), rear-engined, four-passenger city car built by the Indian company Tata

Motors and is aimed primarily at the Indian domestic market.

2010–present, Nissan Leaf and Chevrolet Volt — an all-electric car and

a plug-in hybrid correspondingly, were launched in the U.S. and Japanese

markets in December 2010, becoming the first mass vehicles of their kind.

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1.2 AUTOMOTIVE INDUSTRY IN INDIA

Overview:

The Indian Automobile Industry manufactures over 11 million vehicles and

exports about 1.5 million each year. The dominant products of the industry are

two-wheelers with a market share of over 75% and passenger cars with a

market share of about 16%.Commercial vehicles and three-wheelers share

about 9% of the market between them. About 91% of the vehicles sold are

used by households and only about 9% for commercial purposes. The industry

has a turnover of more than USD $35 billion and provides direct and indirect

employment to over 13 million people.

The supply chain is similar to the supply chain of the automotive industry in

Europe and America.

Interestingly, the level of trade exports in this sector in India has been medium

and imports have been low. However, this is rapidly changing and both

exports and imports are increasing. The demand determinants of the industry

are factors like affordability, product innovation, infrastructure and price of

fuel. Also, the basis of competition in the sector is high and increasing, and its

life cycle stage is growth. With a rapidly growing middle class, all the

advantages of this sector in India are yet to be leveraged.

With a high cost of developing production facilities, limited accessibility to

new technology, and increasing competition, the barriers to enter the Indian

Automotive sector are high. On the other hand, India has a well-developed tax

structure. The power to levy taxes and duties is distributed among the three

tiers of Government. The cost structure of the industry is fairly traditional, but

the profitability of motor vehicle manufacturers has been rising over the past

five years. Major players, like Tata Motors and Maruti Suzuki have material

cost of about 80% but are recording profits after tax of about 6% to 11%.

The level of technology change in the Motor vehicle Industry has been high

but, the rate of change in technology has been medium. Investment in the

technology by the producers has been high. System-suppliers of integrated

components and sub-systems have become the order of the day. However,

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further investment in new technologies will help the industry be more

competitive. Over the past few years, the industry has been volatile. Currently,

India's increasing per capita disposable income which is expected to rise by

106% by 2015 and growth in exports is playing a major role in the rise and

competitiveness of the industry.

Tata Motors is leading the commercial vehicle segment with a market share of

about 64%.Maruti Suzuki is leading the passenger vehicle segment with a

market share of 46%. Hyundai Motor India and Mahindra and Mahindra are

focusing expanding their footprint in the overseas market. Hero Honda

Motors is occupying over 41% and sharing 26% of the two-wheeler market in

India with Bajaj. Bajaj Auto in itself is occupying about 58% of the three-

wheeler market.

Consumers are very important of the survival of the Motor

Vehicle manufacturing industry. In 2008-09, customer sentiment dropped,

which burned on the augmentation in demand of cars. Steel is the major input

used by manufacturers and the rise in price of steel is putting a cost pressure

on manufacturers and cost is getting transferred to the end consumer. The

price of oil and petrol affect the driving habits of consumers and the type of

car they buy.

The key to success in the industry is to improve labour productivity, labour

flexibility, and capital efficiency. Having quality

manpower, infrastructure improvements, and raw material availability also

play a major role. Access to latest and most efficient technology and

techniques will bring competitive advantage to the major players. Utilising

manufacturing plants to optimum level and understanding implications from

the government policies are the essentials in the Automotive Industry of India.

Both, Industry and Indian Government are obligated to intervene the Indian

Automotive industry. The Indian government should facilitate infrastructure

creation, create favorable and predictable business environment, attract

investment and promote research and development. The role of Industry will

primarily be in designing and manufacturing products of world-class quality

establishing cost competitiveness and improving productivity in labour and in

capital. With a combined effort, the Indian Automotive industry will emerge

as the destination of choice in the world for design and manufacturing of

automobiles.

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1.3 History:

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

directly, but in very small numbers.

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

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

began assembly of Jeep CJ-3A utility vehicles under license from Willys. The

company soon branched out into the manufacture of light commercial

vehicles (LCVs) and agricultural tractors.

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

sector launched efforts to create an automotive component manufacturing

industry to supply to the automobile industry. However, the growth was

relatively slow in the 1950s and 1960s due to nationalisation and the license

raj which hampered the Indian private sector. After 1970, the automotive

industry started to grow, but the growth was mainly driven by tractors,

commercial vehicles and scooters. Cars were still a major

luxury. Japanese manufacturers entered the Indian market ultimately leading

to the establishment of Maruti Udyog. A number of foreign firms initiated

joint ventures with Indian companies.

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

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

the Indian government chose Suzuki for its joint-venture to manufacture small

cars. Following the economic liberalization in 1991 and the gradual

weakening of the license raj, a number of Indian and multi-national car

companies launched operations. Since then, automotive component and

automobile manufacturing growth has accelerated to meet domestic and export

demands.

Following economic liberalization in India in 1991, the Indian automotive

industry has demonstrated sustained growth as a result of increased

competitiveness and relaxed restrictions. Several Indian automobile

manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and

Mahindra, expanded their domestic and international operations. India's

robust economic growth led to the further expansion of its domestic

automobile market which has attracted significant India-specific investment by

multinational automobile manufacturers. In February 2009, monthly sales of

passenger cars in India exceeded 100,000 units and has since grown rapidly to

a record monthly high of 182,992 units in October 2009.[ From 2003 to 2010,

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

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

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

decade.Congestion of Indian roads, more than market demand, will likely be

the limiting factor.

SIAM is the apex industry body representing all the vehicle manufacturers,

home-grown and international, in India

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 20

1.4 Industry Definition

This class consists of units mainly engaged in manufacturing motor vehicles

or motor vehicle engines.

Products and Services

The primary activities of this industry are:

Motor cars manufacturing Motor vehicle engine manufacturing

The major products and services in this industry are:

Passenger motor vehicle manufacturing segment (Passenger Cars, Utility

Vehicles & Multi Purpose Vehicles) Commercial Vehicles (Medium & Heavy

and Light Commercial Vehicles) Two Wheelers Three Wheelers.

1.5 Supply Chain of Automobile Industry:

The supply chain of automotive industry in India is very similar to the supply

chain of the automotive industry in Europe and America. The orders of the

industry arise from the bottom of the supply chain i. e., from the consumers

and go through the automakers and climbs up until the third tier suppliers.

However the products, as channeled in every traditional automotive industry,

flow from the top of the supply chain to reach the consumers. Automakers in

India are the key to the supply chain and are responsible for the products and

innovation in the industry.

The description and the role of each of the contributors to the supply chain are

discussed below.

Third Tier Suppliers: These companies provide basic products like rubber,

glass, steel, plastic and aluminum to the second tier suppliers.

Second Tier Suppliers: These companies design vehicle systems or bodies for

First Tier Suppliers and OEMs. They work on designs provided by the first

tier suppliers or OEMs. They also provide engineering resources for detailed

designs. Some of their services may

include welding, fabrication, shearing, bending etc.

First Tier Suppliers: These companies provide major systems directly to

assemblers. These companies have global coverage to follow their customers

to various locations around the world. They design and innovate to provide

"black-box" solutions for the requirements of their customers. Black-box

solutions are solutions created by suppliers using their own technology to meet

the performance and interface requirements set by assemblers.

First tier suppliers are responsible not only for the assembly of parts into

complete units like dashboard, breaks-axle-suspension, seats, or cockpit but

also for the management of second-tier suppliers.

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Automakers/Vehicle Manufacturers/Original Equipment Manufacturers

(OEMs): After researching consumers' wants and needs, automakers begin

designing models which are tailored to consumers' demands. The design

process normally takes five years. These companies have manufacturing units

where engines are manufactured and parts supplied by first tier suppliers and

second tier suppliers are assembled. Automakers are the key to the supply

chain of the automotive industry. Examples of these companies are Tata

Motors, Maruti Suzuki, Toyota, and Honda. Innovation, capability

and branding are the main focus of these companies.

Dealers: Once the vehicles are ready they are shipped to the regional branch

and from there, to the authorized dealers of the companies. The dealers then

sell the vehicles to the end customers.

Parts and Accessory: These companies provide products

like tires, windshields, and air bags etc. to automakers and dealers or directly

to customers.

Service Providers: Some of the services to the customers include servicing of

vehicles, repairing parts, or financing of vehicles. Many dealers provide these

services but, customers can also choose to go to independent service

providers.

1.6 Exports:

Mahindra Scorpio Jeep in service with the Italy's CNSAS.

India's automobile exports have grown consistently and reached $4.5 billion in

2009, with United Kingdom being India's largest export market followed

byItaly, Germany, Netherlands and South Africa. India's automobile exports

are expected to cross $12 billion by 2014.

According to New York Times, India's strong engineering base and expertise

in the manufacturing of low-cost, fuel-efficient cars has resulted in the

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 22

expansion of manufacturing facilities of several automobile companies

like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan

Motors plans to export 250,000 vehicles manufactured in its India plant by

2011. Similarly, General Motors announced its plans to export about 50,000

cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to set up a plant in India

with an annual capacity of 250,000 cars for US$500 million. The cars will be

manufactured both for the Indian market and for export. The company said

that the plant was a part of its plan to make India the hub for its global

production business. Fiat Motors also announced that it would source more

than US$1 billion worth auto components from India.

In July 2010, The Economic Times reported that PSA Peugeot Citroën was

planning to re-enter the Indian market and open a production plant in Andhra

Pradesh with an annual capacity of 100,000 vehicles, investing EUR 700M in

the operation. PSA's intention to utilise this production facility for export

purposes however remains unclear as of December 2010.

In 2009 India (0.23m) surpassed China (0.16m) as Asia's fourth largest

exporter of cars after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by

allowing foreign carmakers 100% ownership of factories in India, which

China does not allow.

In recent years, India has emerged as a leading center for the manufacture of

small cars. Hyundai, the biggest exporter from the country, now ships more

than 250,000 cars annually from India. Apart from shipments to its parent

Suzuki, Maruti Suzuki also manufactures small cars for Nissan, which sells

them in Europe. Nissan will also export small cars from its new Indian

assembly line. Tata Motors exports its passenger vehicles to Asian and African

markets, and is in preparation to launch electric vehicles in Europe in 2010.

The firm is also planning to launch an electric version of its low-cost

car Nano in Europe and the U.S. Mahindra & Mahindra is preparing to

introduce its pickup trucks and small SUV models in the U.S. market. Bajaj

Auto is designing a low-cost car for the Renault Nissan Automotive India,

which will market the product worldwide. Renault Nissan may also join

domestic commercial vehicle manufacturer Ashok Leyland in another small

car project While the possibilities are impressive, there are challenges that

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 1.1History of the automobile 23

could thwart future growth of the Indian automobile industry. Since the

demand for automobiles in recent years is directly linked to overall economic

expansion and rising personal incomes, industry growth will slow if the

economy weakens.

Passenger vehicles in India

This list is of cars that are officially available and serviced in India. While

other cars can be imported to the country at a steep 105% import duty, car

makers such as AlfaRomeo, McLaren,Pagani,] Cadillac, Chrysler, SSCZenvo,

SEAT Smart, Daihatsu, Lexus, Infiniti, Acura, Saab-Spyker,

Lotus, Ariel Cater ham,]Peugeot-Citroën, Mazda Jeep, SsangYong, Kia,

[

GAZ and Proton are in varying stages of official introduction to the Indian

automobile market.

Indian automotive companies

Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster

Hindustan Motors:] Ambassador

ICML: Rhino Rx

Mahindra: Major, Xylo, Scorpio, Bolero, Thar, Verito,

Genio, XUV500.

Premier Automobiles Limited: Sigma, RiO

San Motors: Storm

TataMotors: Nano, Indica, Vista, Indigo, Manza, Indigo

CS, Sumo, Grande, Venture, Safari, Xenon, Aria

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CHAPTER-2

COMPANY

PROFILE

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Type Public

Traded as BSE: 532500

NSE: MARUTI

BSE SENSEX Constituent

Industry Automotive

Predecessor(s) Maruti Udyog Limited

Founded 1981

Headquarters New Delhi, India[1]

Key people Shinzo Nakanishi

(CEO & MD)

Products Automobiles

Revenue 37,522 crore (US$8.25

billion)(2010-11)[2]

Net income 2,288 crore (US$503.36

million)(2010-11)[2]

Employees 6,903 (2011)[3]

Parent Suzuki Motor Corporation

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2.1 Profile:

The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor

Corp. was also added to it

Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan,

Delhi. A-Star, Suzuki's fifth global car model, was designed and is made only

in India. Maruti Suzuki is also Suzuki's leading research and development arm

outside Japan

Relationship between the Government of India, under the United Front

(India) coalition and Suzuki Motor Corporation over the joint venture was a

point of heated debate in the Indian media till Suzuki Motor Corporation

gained the controlling stake. This highly profitable joint venture that had a

near monopolistic trade in the Indian automobile market and the nature of the

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partnership built up till then was the underlying reason for most issues. The

success of the joint venture led Suzuki to increase its equity from 26% to 40%

in 1987, and further to 50% in 1992. In 1982 both the venture partners had

entered into an agreement to nominate their candidate for the post of

Managing Director and every Managing Director will have a tenure of five

years

R.C. Bhargava was the initial managing director of the company since the

inception of the joint venture. Till today he is regarded as instrumental for the

success of Maruti Suzuki. Joining in 1982 he held several key positions in the

company before heading the company as Managing Director. Currently he is

on the Board of Directors. After completing his five year tenure, Mr. Bhargava

later assumed the office of Part-Time Chairman. The Government nominated

Mr. S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr.

Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in the

Public sector undertaking Bharat Heavy Electricals Limited as General

Manager. In 1987 he was promoted as Chief General Manager. In 1988 he was

named Director, Productions and Projects. The next year (1989) he was named

Director of Materials, and in 1993 he became Joint Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting of the

Board with the reason of it being called on a short notice. Later Suzuki Motor

Corporation went on record to state that Bhaskarudu was "incompetent" and

wanted someone else. However, the Ministry of Industries, Government of

India refuted the charges. Media stated from the Maruti Suzuki sources that

Bhaskarudu was interested to indigenise most of components for the models

including gear boxes especially for Maruti 800. Suzuki also felt that

Bhaskarudu was a proxy for the Government and would not let it increase its

stake in the venture. If Maruti Suzuki would have been able to indigenise gear

boxes then Maruti Suzuki would have been able to manufacture all the models

without the technical assistance from Suzuki. Till today the issue of

localization of gear boxes is highlighted in the press.

The relations strained when Suzuki Motor Corporation moved to Delhi High

Court to bring a stay order against Bhaskarudu's appointment. The issue was

resolved in an out-of-court settlement and both the parties agreed that R S S L

N Bhaskarudu would serve up to 31 December 1999, and from 1 January

2000, Jagdish Khattar, Executive Director of Maruti Udyog Limited would

assume charges as the Managing Director. Many politicians stated in

parliament that the Suzuki Motor Corporation is unwilling to localize

manufacturing and reduce imports. As of 2011 Gear boxes are still imported

from Japan and are assembled at the Gurgaon facility

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Maruti Suzuki is India and Nepal's number one leading automobile

manufacturer and the market leader in the car segment, both in terms of

volume of vehicles sold and revenue earned. Until recently, 18.28% of the

company was owned by the Indian government, and 54.2%

by Suzuki of Japan. The BJP-led government held an initial public offering of

25% of the company in June 2003. As of 10 May 2007, the government of

India sold its complete share to Indian financial institutions and no longer has

any stake in Maruti Udyog

Maruti Udyog Limited (MUL) :

was established in February 1981, though the actual production commenced in

1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time

was the only modern car available in India, its only competitors-

the Hindustan Ambassador and Premier Padmini were both around 25 years

out of date at that point. Through 2004, Maruti Suzuki has produced over 5

Million vehicles. Maruti Suzuki’s are sold in India and various several other

countries, depending upon export orders. Models similar to Maruti Suzuki’s

(but not manufactured by Maruti Udyog) are sold by Suzuki Motor

Corporation and manufactured in Pakistan and other Asian countries.

The company exports more than 50,000 cars annually and has an extremely

large domestic market in India selling over 730,000 cars annually. Maruti 800,

till 2004, was the India's largest selling compact car ever since it was launched

in 1983. More than a million units of this car have been sold worldwide so far.

Currently, Maruti Suzuki Alto tops the sales charts.

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Due to the large number of Maruti 800s sold in the Indian market, the term

"Maruti" is commonly used to refer to this compact car model. Its

manufacturing facilities are located at two

facilities Gurgaon and Manesar south of Delhi. Maruti Suzuki’s Gurgaon

facility has an installed capacity of 350,000 units per annum. The Manesar

facilities, launched in February 2007 comprise a vehicle assembly plant with a

capacity of 100,000 units per year and a Diesel Engine plant with an annual

capacity of 100,000 engines and transmissions. Manesar and Gurgaon

facilities have a combined capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti Suzuki cars. The company is a

subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of

Maruti Suzuki. The rest is owned by public and financial institutions. It is

listed on the Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were

exported. In all, over six million Maruti Suzuki cars are on Indian roads since

the first car was rolled out on 14 December 1983. Maruti Suzuki offers 14

models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift

DZire, SX4, Omni,Eeco, Gypsy, Grand Vitara, Kizashi. Swift, Swift DZire,

A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are

imported from Japan as completely built units(CBU), remaining all models are

manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and

compact cars for three decades. Suzuki’s technical superiority lies in its ability

to pack power and performance into a compact, lightweight engine that is

clean and fuel efficient. Nearly 75,000 people are employed directly by Maruti

Suzuki and its partners. It has been rated first in customer satisfaction among

all car makers in India from 1999 to 2009 by J D Power Asia Pacific.

2.2 Industrial relations:

For most of its history, Maruti Udyog Limited had relatively few problems

with its labour force. Its emphasis of a Japanese work culture and the modern

manufacturing process, first instituted in Japan in the 1970s, was accepted by

the workforce of the company without any difficulty. But with the change in

management in 1997, when it became predominantly government controlled

for a while, and the conflict between the United Front Government and Suzuki

may have been the cause of unrest among employees. A major row broke out

in September 2000 when employees of Maruti Udyog Ltd (MUL) went on an

indefinite strike, demanding among other things, revision of the incentive

scheme offered and implementation of a pension scheme.

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Employees struck work for six hours in October 2000, irked over the

suspension of nine employees, going on a six-hour tools-down strike at its

Gurgaon plant, demanding revision of the incentive-linked pay and threatened

to fast to death if the suspended employees were not reinstated. About this

time, the NDA government, following a disinvestments policy, proposed to

sell part of its stake in Maruti Suzuki in a public offering. The Staff union

opposed this sell-off plan on the grounds that the company will lose a major

business advantage of being subsidized by the Government.

The standoff with the management continued to December with a proposal by

the management to end the two-month long agitation rejected with a demand

for reinstatement of 92 dismissed workers, with four MUL employees going

on a fast-unto-death. In December the company's shareholders met in New

Delhi in an AGM that lasted 30 minutes. At the same time around 1500 plant

workers from the MUL's Gurgaon facility were agitating outside the

company's corporate office demanding commencement of production linked

incentives, a better pension scheme and other benefits. The management has

refused to pass on the benefits citing increased competition and lower margins

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Suzuki Splash is sold as Maruti Suzuki Ritz in India.

1. 800 (Launched 1983)

2. Omni (Launched 1984)

3. Gypsy (launched 1985)

4. Zen (launched 1995)

5. WagonR (Launched 1999)

6. Alto (Launched 2000)

7. Swift (Launched 2005)

8. Estilo (Launched 2009)

9. SX4 (Launched 2007)

10. Swift DZire (Launched 2008)

11. A-star (Launched 2008)

12. Ritz (Launched 2009)

13. Eeco (Launched 2010)

14. Alto K10 (Launched 2010)

15. Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete

with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande.In early 2012, Suzuki

Ertiga will be exported first to Indonesia in Completely Knock Down car.

16. Maruti XA Alpha will be launched in the year 2014.

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Manufacturing facilities

Maruti Suzuki has two state-of-the-art manufacturing facilities in

India.[18]

Both manufacturing facilities have a combined production

capacity of 1,250,000 vehicles annually.

Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated

manufacturing plants and is spread over 300 acres (1.2 km2). All

three plants have an installed capacity of 350,000 vehicles annually

but productivity improvements have enabled it to manufacture

700,000 vehicles annually. The Gurgaon facilities also manufacture

240,000 K-Series engines annually. The entire facility is equipped

with more than 150 robots, out of which 71 have been developed in-

house. The Gurgaon Facilities manufactures

the 800, Alto, WagonR, Estilo, Omni, Gypsy and Eeco.

Manesar Manufacturing Facility

The Manesar Manufacturing Plant was inaugurated in February

2007 and is spread over 600 acres (2.4 km2). Initially it had a

production capacity of 100,000 vehicles annually but this was

increased to 300,000 vehicles annually in October 2008. The

production capacity was further increased by 250,000 vehicles

taking total production capacity to 550,000 vehicles annually. The

Manesar Plant produces the A-star, Swift, Swift

DZire and SX4.diuyiyiui8u

Sales and service network

As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666

towns and cities in all states and union territories of India. It has

2,946 service stations (inclusive of dealer workshops and Maruti

Authorised Service Stations) in 1,395 towns and cities throughout

India. It has 30 Express Service Stations on 30 National

Highways across 1,314 cities in India.

Service is a major revenue generator of the company. Most of the

service stations are managed on franchise basis, where Maruti

Suzuki trains the local staff. Other automobile companies have not

been able to match this benchmark set by Maruti Suzuki. The

Express Service stations help many stranded vehicles on the

highways by sending across their repair man to the vehicle.

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Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its

customers with the help of the National Insurance Company, Bajaj

Allianz, New India Assurance and Royal Sundaram. The service

was set up the company with the inception of two subsidiaries

Maruti Insurance Distributors Services Pvt. Ltd and Maruti

Insurance Brokers Pvt. Limited

This service started as a benefit or value addition to customers and

was able to ramp up easily. By December 2005 they were able to

sell more than two million insurance policies since its inception.

Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti

Finance in January 2002. Prior to the start of this service Maruti

Suzuki had started two joint ventures Citicorp Maruti and Maruti

Countrywide with Citi Group and GE Countrywide respectively to

assist its client in securing loan.[23]

Maruti Suzuki tied up with ABN

Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,

Standard Chartered Bank, and Sundaram to start this venture

including its strategic partners in car finance. Again the company

entered into a strategic partnership with SBI in March 2003 Since

March 2003, Maruti has sold over 12,000 vehicles through SBI-

Maruti Finance. SBI-Maruti Finance is currently available in 166

cities across India.

Maruti TrueValue

Maruti True service offered by Maruti Suzuki to its customers. It is

a market place for used Maruti Suzuki Vehicles. One can buy, sell

or exchange used Maruti Suzuki vehicles with the help of this

service in India. As of 31 March 2010 there are 341 Maruti True

Value outlets.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and

provides lease and fleet management solution to corporates. Clients

who have signed up of this service include Gas Authority of India

Ltd, DuPont, Reckitt Benckiser, Sona

Steering, Doordarshan, Singer India, National Stock Exchange and

Transworld. This fleet management service include end-to-end

solutions across the vehicle's life, which includes Leasing,

Maintenance, Convenience services and Re-marketing.

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Accessories

Many of the auto component companies other than Maruti Suzuki

started to offer components and accessories that were compatible.

This caused a serious threat and loss of revenue to Maruti Suzuki.

Maruti Suzuki started a new initiative under the brand name Maruti

Genuine Accessories to offer accessories like alloy wheels, body

cover, carpets, door visors, fog lamps, stereo systems, seat covers

and other car care products. These products are sold through dealer

outlets and authorized service stations throughout India

Maruti Driving School

As part of its corporate social responsibility Maruti Suzuki launched

the Maruti Driving School in Delhi. Later the services were

extended to other cities of India as well. These schools are modelled

on international standards, where learners go through classroom and

practical sessions. Many international practices like road behaviour

and attitudes are also taught in these schools. Before driving actual

vehicles participants are trained on simulators

Issues and problems

On 24 February 2010, Maruti Suzuki India announced recalling of

100,000 A-Star hatchbacks to fix a fuel leakage problem. the

company will replace the gaskets for all 100,000 A-Star cars.

Exports

Maruti Exports Limited is the subsidiary of Maruti Suzuki with its

major focus on exports and it does not operate in the domestic

Indian market. The first commercial consignment of 480 cars were

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sent to Hungary. By sending a consignment of 571 cars to the same

country Maruti Suzuki crossed the benchmark of 300,000 cars.

Since its inception export was one of the aspects government was

keen to encourage.[ Every political party expected Maruti Suzuki to

earn foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe,

Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala,

Costa Rica and El Salvador are some of the markets served by

Maruti Exports.

2 . 4 A n n o u n c e m e n t s f o r M a r u t i S u z u k i I n d i a L t d .

Maruti Suzuki India Limited (MSIL), the once upon a time publicly listed

company in India, is the largest automobile manufacturer in South Asia.

Earlier known as Maruti Udyog Limited till 2007, the company was

responsible for the automobile revolution in India. Though the company was

formed in 1981, the production of its first car the Maruti 800 started off in

1983. The company spread its wings throughout the country so much so that

they had Maruti service stations across the country.

01 Feb

Maruti Suzuki unveils the all new compact, powerful,

highly fuel efficient Swift DZire

01 Feb Maruti Suzuki Sales in January 2012

31 Jan Notices published in newspapers

23 Jan Notice of Postal Ballot

23 Jan

Announces Q3 results with Results Press Release and

Limited Review for Dec 31, 2011

05 Jan Press Release - Concept XA Alpha unveiled

01 Dec 2011 Maruti Suzuki Sales in November 2011

03 Nov 2011

Maruti Suzuki clarities its stand on Gujarat expansion

plans

01 Nov 2011 Maruti Suzuki Sales in October 2011

29 Oct 2011

Maruti Suzuki Board approves land purchase for new

facility in Gujarat

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Maruti''s manufacturing units are located in gurgaon and Manesar, south of

Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of 350,000

units per annum. The Manesar facilities, launched in February 2007, comprise

a vehicle assembly plant with a capacity of 100,000 units per annum. There

also is a diesel engine plant which has an annual capacity of 100,000 engines

and transmissions. The Manesar and Gurgaon facilities have a combined

capacity to produce over 700,000 units annually.

The company has competitors but it has made its place in the hearts of the

Indian crowd by offering some excellent services and has firmly grounded its

feet in the Indian Car Market. Maruti Suzuki now offers 15 models, Maruti

800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco,

Gypsy, Grand Vitara. Swift, Swift DZire, A-star and SX4 are manufactured in

Manesar, Grand Vitara is imported from Japan as a completely built unit

(CBU), remaining all models are manufactured in Maruti Suzuki’s Gurgaon

Plant The company is on its way to bring the K series engine by first

introducing the Alto K-10 and then Kizashi does look to be in the pipeline.

2.5 LATEST KEY DEVELOPMENTS:

Maruti Suzuki India Ltd To Develop Own SUV, Display Concept At Auto

Expo-Mint

Maruti Suzuki India Ltd Says Resolves Labour Unrest-Reuters

Maruti Suzuki India Ltd Says Limited Production Starts At Manesar-Reuters

Maruti Suzuki India Ltd Shuts Gurgaon Plant For Two Days; Manesar Strike

On-The Economic Times

Maruti Suzuki India Ltd's Plant Still Occupied By Striking Workers-WSJ

Workers Protest At Maruti Suzuki India Ltd's Manesar Plant Again-Hindustan

Times

Maruti Suzuki India Ltd To Close Factories On Friday Due To Labour Unrest-

Reuters

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Chapter-3

THEORETICAL

FRAMEWORK

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THEORITICAL FRAMEWORK

3.1CONSUMER BUYING BEHAVIOUR OF WAGONR CAR:

Maruti Suzuki India is in the news again, this time for the launch of its

hatchback car Maruti Wagon R LXi with CNG kit. The company has launched

the new Wagon R and is all set to take the design, looks, prices, technology,

comfort features, safety features etc to the new next level. Maruti Wagon R is

also known as ―the Blue eyed boy‖. The all new Maruti Wagon R has an eye

catching design with dynamic exteriors and very impressive interiors.

The new Wagon R is here with classy exteriors that make the look of the car

more robust and attractive. The overall looks of the new Wagon R has been

twisted and turned to give it a very modern look. The Maruti Wagon R now

looks very stylish with the curvier body. The chrome finish in the front and the

rear body of the car gives it a very amazing look. The moon rock silver roof

rails give that extra bit to the overall look of the car.

The all Maruti Wagon R has very impressive interiors too with dual tone

finishing. The Chrome accentuated instrument panel makes the look of the

interior more stunning; the silver finish inside door handles add a finishing

touch. The dual tone 3 D effect plush upholstery merges very well and

complements the overall interiors of the car.

The all new Maruti Wagon R is powered by the 1.0L, 998cc, KB-series petrol

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engine with five speed manual transmission gearbox. This all aluminium, light

weight KB series engine has cable type gearshift which is of great help at the

time of shifting of gear. This powerful engine can produce the maximum

power of power of 68 PS at 6200 rpm with the maximum torque of 90 Nm at

3500rpm. If you drive the Maruti Wagon R Vxi variant with CNG mode it

produces 59.3 PS of peak power at 6,200 rpm and churns a top torque of 77

Nm at 3,500 rpm with the same KB series engine. Even if the powertrain

output is lower than its petrol mode, the CNG mode still emerges as the

winner in terms of mileage delivery and running cost per km.

The all new Maruti Wagon R has not only paid attention to its looks but safety

of their passengers too, with highly advanced safety features like ABS (Anti

Lock Braking System), Dual Airbags, Intelligent Computerized Anti theft

system. Collapsible Steering Wheel etc

The blue eyed boy i.e. new Maruti Wagon R is the personification of the

modern premium compact hatchback with unmatched style and luxurious

exteriors and versatile and spacious interiors. Maruti brings all this alongwith

comfort, safety and reliability at an affordable price range.

3.2 THE IMPORTANCE OF UNDERSTANDING CONSUMER

BEHAVIOUR:

“consumer behavior is the dynamic interaction of affect and

cognition,behavior and environmental event by which human conduct the

exchange aspect of their lives‖campanies are interested in consumer behavior

because they can devlop marketing strategies to influence consumer to

purchase their product based on consumer analysis.the success of a company`s

marketing strategywill depend on how buyer react to it.to find out what

satisfied customers buy goods and servies.by understanding these

factorsbetter,marketers are better able to predict how consumer will respond to

marketing strategies.

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3.3 Factors affecting consumer buying behavior

Why do we need to learn about consumer buying behavior? The simple

answer is that no longer can we take the customers for granted. Consumer

buying behavior determines how our consumers decide to buy our product

and what are the various factors responsible for this decision?

Out of 11000 new products introduced by 77 companies, only 56% are present

after 5 years. Only 8% of new product concepts offered by 112 leading

companies reached the market. Out of that 83% failed to meet marketing

objectives. What we need to understand here is why consumers make the

purchases that they make, what factors influence consumer purchases and

changing factors in our society…

The central focus of marketing is the consumer. To devise good marketing

plans, it is necessary to examine consumer behavioral attributes and needs,

lifestyles, and purchase processes and then make proper marketing-mix

decisions. The study of Consumer behavior includes the study of what they

buy, why they buy, how they buy, when they buy, from where they buy, and

how often they buy. An open-minded consumer-oriented approach is

imperative in today’s diverse global marketplace so a firm can identify and

serve its target market, minimize dissatisfaction, and stay ahead of

competitors. Final consumers purchase for personal, family, or household use.

1.CULTURAL FACTORS:

Consumer behavior is deeply influenced by cultural factors such as:buyer

culture subculture and social class.

Culture:-

Basically ,culture is the part of every society and is the important cause

of person wants and behavior.the influence of cultureon buying

behavior varies from country to country therefore marketers have to be

very careful in analyzing the culture of different groups,regions or

even countries

Subculture:-

Each culture contains different subculture such as

religions,nationalities,geographic region,racial groups etc,marketers

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can use these groups by segmenting the market into various small

portions.for example marketers can design products according to the

needs of a particular geographic group.

Social class:-

Every society possesses some from of social class which is important

to the marketers because the buying behavior of people in a given

social class is similar.In this way marketing activities could be tailored

according to different social classes.here we should note that social

class is not only determined by income but there are various other

factors as well such as:weath,education,occupation etc.

2.SOCIAL FACTORS:

Social factors also impact the buying behavior of consumers .the important

social factors are: reference groups,family,role and status.

Reference groups:-

Reference groups have potential in forming a person attitude or

behavior.the impact of reference groups varies across products and

brands.for example if the product is visible such as dress,shoes,car ect

then the influence of reference groups will be high.

Family:-

Buyer behavior is strongly influenced by the member of a

family.therfore marketers are trying to find the roles and influence of

the husband,wife and children.If the buying decision of a particular

product is influenced by wife then the marketers will try to target the

woman in their advertisement.here we should note that buying roles

changes with change in consumer lifestyles.

Roles and status:-

Each person possesses different roles and status in the society

depending upon the groups,clubs,family,organization etc.to which he

belongs.For example a woman is working in an organization as finance

manager .now she is playing two roles one of finance manager and

other of mother.therefore her buying decision will be influenced by her

role and status.

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3.Personal Factors:-

personal factors can also affect the consumer behavior.some of the important

personal factors that influence the buying behavior are:lifestyle,economic

situation,occupation,age,personality and self concept.

Age:-

Age and lfe-cycle have potential impact on the consumer buying

behavior.it is obvious that the consumers changes the purchase of

goods and services with the passage of time. Family life-cycle consists

of different stages such young singles,married,unmarried etc which

help marketers to develop appropriate products for each stage.

Occupation:-

The occupation of a person has significant impact on his buying

behavior.for example a marketing manager of an organization will try

to purchase business suits,where as a low level worker in the same

organization will purchase rugged work clothes.

Economic situation:-

Consumer economic situation has great influence on his buying

behavior.if the income and saving of a customer is high then he will

purchase more expensive product.on the other hand ,a person with low

income and saving will purchase inexpensive products.

Lifestyle:-

Lifestyle of customers is another import factor affecting the consumer

buying behavior.lifestyle refers to the way a person lives in a society

and is expressed by the things in his/her surrounding.It is determind by

customer interests,opinions,activities ect and shapes his whole pattern

tf acting and interacting in the world.

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4.PSYCHOLOGICAL FACTORS:

There are four important psychological factors affecting the consumer buying

behavior .these are:perception,motivation,learning,beliefs and attitudes

o Motivation:-

The level of motivation also affects the buying behavior of

customers.every person has different needs such as physiological

needs,biological needs,social needs ect.The nature of the needs is

that,some of them are most pressing while other are least pressing

.Therefore a needs becomes a motive when it is more pressing to direct

the person to seek satisfaction.

o Perception:-

Selecting ,organzing and interpreting information in a way to produce

a meaningful experience of the world is called perception.there are

three different perceptual processes which are selective

attention,selective distortion and selective retention.in case of selective

distortion,customer try to interpret the information in a way that will

support what the customer already belive.similary,in case of selective

retention marketers try to retain information that support their beliefs.

o Beliefs and Attitudes:-

Customer possesses specific belief and attitude toward various

products.since such beliefs and attitudes make up brand image and

affect consumer buying behavior therefore marketers are interested in

them.marketers can change the beliefs and attitude of customer by

launching special campaigngs in this regard.

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3.4 BUYING BEHAVIOUR PROCESS:

The buyer decision process

I.Step 1.Need Recognition:

External stimuli

Tv advertising

Magazine ad

Radio slogan

Stimuli in the environment

Internal stimuli

Hunger

Thirst

A person`s normal needs

Need recognition difference between an actual state and a desired state.

II.Step-2 INFORMATION SEARCH:

Family,friends,neighbors

Most influential source of information-advertising salespeople

Rececives most information from these sources mass media

Consumer-rating groups

Handling the product

Examining the product

Using the product

Personal sources

Commercial sources

Public sources

Experiential sources

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III.Step-3 EVALUATION OF ALTERNATIVES:

Product attributes evaluation of quality,price,& features degree of importance

which attributes matter most to me?brand beliefs what do I belive about each

available brand?total product satisfaction based on what I m looking for,how

satisfied would I be with each product?evalution procedures choosing a

product based on one or more attributes

IV.Step-4 PURCHASE DECISION:

Purchase intention desire to buy the most preferred brand purchase decision

attitudes of other unexpected situational factors

V.Step-5 POSTPURCHASE BEHAVIOR:

Consumer`s expectations of product`s performance

Dissatisfied customer

Satisfied customer

Product`s perceived

Performance

IN TABLE FORM-FACTORS AFFECTING CONSUMER BUYING

BEHAVIOUR

3.5 Factors affecting consumer behavior:culture

Most basic cause of a person-want and behavior.

Values

Perceptions

Social class

People wirhin a social class tend to exhibit similar buying behavior.

Occupation

Income

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Education

Weath

Subculture

Groups of people with shared value systems based on common life

experiences

North Indian consumers

African American consumers

Asian American consumers

Mature consumers

3.6 FACTORS AFFECTING CONSUMER BEHAVIOR:SOCIAL

Groups

Membership

Reference

Family

Husband,wife,kids

Influencer,buyer,user

Roles and status social factor

3.7 FACTORS AFFECTING CONSUMER BEHAVIOR:PERSONAL

Age and family life cycle stage

Occupation

Economic situation

Lifestyle

Identification activities

Opinions

Interests

Personality &self-concept

3.8 FACTORS AFFECTING CONSUMER BEHAVIOR:

PSYCHOLOGICAL

Motivation

Perception

Learning

Belief and attitudes

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3.9 Major Factors affecting consumer buying behavior

Cultural factors affecting consumer buying behaviour:

Cultural factors have a significant impact on customer behavior.Culture is the

most basic cause of a person’s wants and behavior. Growing up, children learn

basic values, perception and wants from the family and other important

groups. Marketers are always trying to spot ―cultural shifts‖ which might point

to new products that might be wanted by customers or to increased demand.

Social factors affecting consumer buying behaviour:

A customer’s buying behavior is also influenced by social factors, such

as the groups to which the customer belongs and social status.

Each culture contains “sub-cultures” – groups of people with share

values. Sub-cultures can include nationalities, religions, racial groups,

or groups of people sharing the same geographical location. Sometimes

a sub-culture will create a substantial and distinctive market segment

of its own. For example, the “youth culture” or “club culture” has quite

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distinct values and buying characteristics from the much older “gray

generation”

Similarly, differences in social class can create customer groups. In fact,

the official six social classes in the UK are widely used to profile and

predict different customer behavior. In the UK’s socioeconomic

classification scheme, social class is not just determined by income. It is

measured as a combination of occupation, income, education, wealth

and other variables.

Information search

Once the consumer has recognised a problem, they search for information on

products and services that can solve that problem. Belch and Belch (2007)

explain that consumers undertake both an internal (memory) and an external

search.

Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information

search is perception. Perception is defined as "the process by which an

individual receives, selects, organises, and interprets information to create a

meaningful picture of the world". Consumers' tendency to search for

information on goods and services makes it possible for researchers to forecast

the purchasing plans of consumers using brief descriptions of the products of

interest.[4]

The selective perception process

Stage Description

Selective exposure consumers select which promotional messages they will

expose themselves to.

Selective attention consumers select which promotional messages they will

pay attention to.

Selective comprehension consumer interpret messages in line with their

beliefs, attitudes, motives and experiences.

Selective retention consumers remember messages that are more meaningful

or important to them.

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The implications of this process help develop an effective promotional

strategy, and select which sources of information are more effective for the

brand.

Information evaluation

At this time the consumer compares the brands and products that are in their

evoked set. How can the marketing organization increase the likelihood that

their brand is part of the consumer's evoked (consideration) set? Consumers

evaluate alternatives in terms of the functional and psychological benefits that

they offer. The marketing organization needs to understand what benefits

consumers are seeking and therefore which attributes are most important in

terms of making a decision. It also needs to check other brands of the

customer’s consideration set to prepare the right plan for its own brand.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a

purchase decision. Sometimes purchase intention does not result in an actual

purchase. The marketing organization must facilitate the consumer to act on

their purchase intention. The organization can use a variety of techniques to

achieve this. The provision of credit or payment terms may encourage

purchase, or a sales promotion such as the opportunity to receive a premium or

enter a competition may provide an incentive to buy now. The relevant

internal psychological process that is associated with purchase decision is

integration. Once the integration is achieved, the organization can influence

the purchase decisions much more easily.

Postpurchase evaluation

The EKB model was further developed by Rice (1993) which suggested there

should be a feedback loop, Foxall (2005) further suggests the importance of

the post purchase evaluation and that the post purchase evaluation is key due

to its influences on future purchase patterns.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 2.4Announcements for Maruti Suzuki India Ltd.

53

CHAPTER-4 RESEARCH

METHODOLOGY

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.2Objective of the study:- 54

4.1RESEARCH METHOLOGY

MARKETING RESEARCH of consumer buying behavior t o w a r ds s mal l

& m ed i um ca r s egm en t ‖Th e s tu d y s h o wi n g t h e

co ns um er bu yi n g beh av i o r i n sm al l & m ed iu m

c a r s egm en t . Wi t h special reference to Maruti Suzuki India ltd It

describe the attitude behind the purchasing of car by any middle income level

segment.

RESEARCH DEFINITION:

―Research is careful inquiry or examination to discover new information and

relationship and to expand and to verify existing knowledge.

4 . 2 O b j e c t i v e o f t h e s t u d y : -

The basic objective of the project During the research and study will be

focused on the following parameters:

PRIMARY OBJECTIVE:

My main object is ―To identify the factor affecting consumer buying behavior

of wagonR car of maaruti Suzuki‖

SECONDARY OBJECTIVE:

To know consume preference regarding small & medium cars

To know what features and services attract the customers

Effect of brand image (Maruti Suzuki)in buying behavior

Impact of advertisement in buying behavior

Impact of celebrity endorsement in buying behavior

Effect of family &friends in buying behavior (Focus group)

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.3 IMPORTANCE OF STUDY 55

4.3 IMPORTANCE OF STUDY

This project report and survey is quite necessary as well as important in the

Current market situation, many multinational companies come into the market

with wide rang of verities in Automobile industry, it is tough for any company

to hold the market share, so this study helps to know about the Automobile

Industries

It provides the required information about the consumer buying behavior for

Automobiles

It will inform the management about the purchasing criteria of consumer

towards buying behavior.

It gives information to the company as which is the most selling brand in the

market.

4 . 4 R e s e a r c h d e s i g n ; -

A research design is a framework or blueprint for conducting the marketing

research project. It details the procedures necessary for obtaining the required

information, and its purpose is to d es i gn a s t ud y t h a t wi l l t e s t t h e

h yp o t h es es o f i n t e re s t , d e t e rm in e possible answers to the research

questions, and provide

thei n fo rm a t io n n eeded fo r d ec i s io n mak in g . C on du c t i n g ex p l

o r a t o r y research, precisely defining the variables, and designing

appropriatescals to measure them are also a part of the research design. The

issue of how the data should be obtained from the respondents (for example,

by conducting a survey or an experiment) must be a d d r e s s e d . I t i s

a l s o n e c e s s a r y t o d e s i g n a q u e s t i o n n a i r e a n d a sampling

plan to select respondents for the study.

4.5 TYPE OF RESEARCH DESIGN

It refers to the search for knowledge. It

c a n b e d e f i n e d a s s c i e n t i f i c a n d s y s t e m a t i c s e a r c h f o r

p e r t i n e n t information on a specific topic. It is careful investigation or in

quiry through search for new facts of any branch of knowledge.

R esea r ch p l ays an im po r t an t r o l e i n t h e p r o j ec t wo rk . The

results of the project are completely based upon the research of the facts and

figures collected through the different ways of research.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.3 IMPORTANCE OF STUDY 56

That is why it is also called a movement from known to unknown. Research is

the original contribution to the existing stock of k n ow l ed ge . Th i s

s ec t io n i n c l ud es th e o v er a l l r e s ea r ch d e s i gn , t h e sampling

procedure, the data collection method, the field method ,and analysis and

procedure.

R E S E A R C H i s a s c i e n t i f i c a n d s y s t e m a t i c s e a r c h f o r

p e r t i n e n t information on a specific topic. It is also said to be the pursuit of

truthw i t h t h e h e l p o f s t ud y, o bs e rv a t io n , co mp a r i so n and ex p

e r im en t . research methodology is a way to systematically solve the

research problem.

Research can classified in one of three categories:

Exploratory research

Descriptive research

Causal research

These classifications are made according to the objective of the r e s e a r c h .

I n s o m e c a s e s t h e r e s e a r c h w i l l f a l l i n t o o n e o f t h e s e

categories, but in other cases different phases of the same research

project will fall into different categories.

E xpl o ra to ry res earch h as t he go a l o f f o rmu l a t i n g p ro b l em s

more precisely, clarifying concepts, gathering explanations,ga i n in g i ns igh

t , e l imi n a t i n g im p rac t i c a l i d ea s , an d fo r min g hypotheses.

Exploratory research can be performed using a literature search, surveying

certain people about their experiences, focus groups, and case studies. When

surveying people, exploratory research studies would not try to acquirearepre

sentative sample, but rather, seek to interview those who are knowledgeable

and who might be able to provide in sight concerning the relationship among

variables. Case studies

cani n c lu d e con t r as t in g s i t u a t i on s o r b en chm ark in g aga in s t a n

organization known for its excellence. Exploratory research m a y d ev e l op

h yp o t h es es , bu t i t d oe s no t s eek to t e s t t h em . Exploratory

research is characterized by its flexibility.

Descriptive research is more rigid than exploratory

researchand seeks to describe users of a product, determine thep r o p o r t io n

o f t he po pu l a t io n th a t u s es a p ro du c t , o r

p r ed i c t future demand for a product. As opposed to exploratoryresearch,

descriptive research should define questions, people surveyed, and the

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NAVNIRMAN INSTITUTE OF MANAGEMENT | Method of selecting sample:- 57

method of analysis prior to beginning data collection. In other

words, the who, what, where, when, why ,an d h ow as p ec t s o f t he

r e s ea r ch s ho u ld b e d e f i ned . S uch preparation allows one the

opportunity to make any

requiredchanges before the costly process of data collection hasbegun.There

are two basic types of descriptive research: longitudinals tu d i es an d c ro ss

-

s ec t io n a l s t ud i e s . Lo n g i t ud i n a l s t ud ie s a r e t im es er i es an a lys

e s t ha t mak e r epea t ed m eas u r em en t s o f t h e s am ei nd iv i dua l s ,

t hu s a l l o wi n g on e t o mo n i t o r b eh av io r s u ch as b r an d -

switching. However, longitudinal studies are not necessary presentative since

many people may refuse to participate

becauseo f t h e comm i t men t r equ i red . C ros s -

s ec t io n a l s t ud i e s s am pl e th e population to make measurements at a spe

cific point in time. Aspecial type of cross-sectional analysis is a cohort

analysis, which tracks an aggregate of individuals who experience

the same event with in the same time interval over time. Cohort

analyses are use fulfor long-term forecasting of product demand.

Causal research seeks to find cause and effect relationships between

variables. It accomplishes this goal through laboratory and field experiments

.Here I use descriptive type of research design

4.6 COLLECTION OF DATA:-

The data for this study will be collected through the primary method of

collecting. According to this method field surveys are conducted where we are

to approach various types of people and try to collect information from them.

It would be a structured from of surveys in the form of questionnaire-the list of

all probable question which the respondent will be asked and he can answer

them according to his will.

M e t h o d o f s e l e c t i n g s a m p l e : -

Two methods of collecting data used for this research are as follows: -

PRIMARY DATA –

Data is collected primarily through personal contact, meeting, interview and

questionnaire with the concerned authority of the organization and

respondents’ .

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NAVNIRMAN INSTITUTE OF MANAGEMENT | SECONDARY DATA 58

S E C O N D A R Y D A T A – Data are collected through secondary modes such as various published data,

reports, related books and websites.

4.7 COLLECTION OF DATA TECHNIQUES:

S a m p l e s i z e : - T he s am pl e s i z e o f t h i s s u r v ey w o u l d b e o f 1 00 . i t m ean s

t h a t t h e r e a r e 10 0 d i f f e r en t p eo p l e wh o h av e b een s e l ec t ed

an d h av e b een i n t e rv i ew ed on t he s ame su b j ec t .

S A M P L I N G F R A M E :

The sampling frame of this study is the surat city.

SURVEY TOOL:

The sampling tool used for this study is the structured questionnaire

ANALYSIS OF THE DATA:

The analysis of the data would be done by using the statistical tools like mean,

median and mode. Also the tables, charts and pictorial representations would

be used.

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.8Limitation of study:- 59

4 . 8 L i m i t a t i o n o f s t u d y : -

Every research study has its limitationslikewise this research has some

limitation .These are

The sample consists of 50 customers and was restricted topeople residing in

Jaipur.as study is restricted to the Jaipur

Sample of the population (universe)might be nkot therepresentative of whole

This study is conducted before the launching of TATA Nano

Customer perception is not always static.They frequentlychange their attitude

Selection of car is also depends on income level of respondents

This research is based on current economic condition which isnot seem to be

good.

4 . 9 S c o p e o f s t u d y :

The scope of the project during the research and study will be focused on the

following parameters:

To know consume preference regarding small & medium cars

To know what features and services attract the customers

Effect of brand image (Maruti Suzuki)in buying behavior

Impact of advertisement in buying behavior

Impact of celebrity endorsement in buying behavior

Effect of family &friends in buying behavior (Focus group)

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 60

CHAPTER-5

ANALYSIS &

FINDINGS

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 61

ANALAYSIS & FINDING

Q-1 DO YOU HAVE YOUR OWN CAR?

TABLE:

RESPONSE RESPONDENT PERSENTAGE

YES 83 83%

NO 17 17%

TOTAL 100 100%

Interpretaion:

this chart shows that mostly people have ther own car,and 17% people done

have there own car.

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

YES NO

0.83

0.17

Series1

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 62

Q-2 .which brand company car do you use recently?

TABLE:

RESPONES RESPONDER %

AUDI 6 6%

BMW 1 1%

MARUTI SUZUKI 60 60%

HONDA 3 3%

HYUNDAI 6 6%

OTHER 7 7%

Interpretation:

this chart shows that 60% of people are using maruti Suzuki brand

company car then other car company.

0.06

0.01

0.6

0.03

0.06 0.07

AUDI

BMW

MARUTI SUZUKI

HONDA

HYUNDAI

OTHER

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 63

Q-3 WHICH CAR MODEL OF MARUTI SUZUKI DO U

USE?

TABLE:

RESPONSE RESPONDER %

OMNI 2 2%

ZEN ESTITO 0 0%

SX4 4 4%

ALTO 1 1%

SWIFT 5 5%

RITZ 3 3%

WAGONR 45 45%

A-STAR 0 0%

OTHER 0 0%

INTERPRETATION:

This chart shows that most of people who have maruti Suzuki

brand car are using wagonR model.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2% 0% 4% 1%

5% 3%

45%

0% 0%

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 64

Q-4 IF WAGONR car then ,how many family member are

using this car?

TABLE:

RESPONSE RESPONDER %

1MEMBER 24.44 24.44%

2MEMBER 22.22 22.22%

3MEMBER 28.89 28.89%

4MEMBER 8.89 8.89%

5MEMBER 6.66 6.66%

6MEMBER 4.44 4.44%

7MEMBER 4.22 4.22%

INTERPRETATION:

This chart shows that in single family mostly 2 or 3 member are

using wagonR car

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

24.44%

22.22%

28.89%

8.89%

6.66%

4.44%

4.22%

Series2

Series1

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 65

Q-5 FROM WHERE DID YOU GET THE IDEA ABOUT

WAGON R CAR?

TABLE:

RESPONSE RESPONDER %

FRIEND 12 12%

INTERNET 5 5%

HODING 3 3%

ADVERTISHMENT 9 9%

SHOWROOM 9 9%

OTHER 7 7%

INTERPRETATION:

THIS chart shows that people are getting information mostly from

friends,advertishment,showroom.

0%2%4%6%8%

10%12% 12%

5% 3%

9% 9% 7%

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 66

Q-6 WHY DO YOU PREFER ONLY WAGONR CAR?

TABLE:

RESPONSE RESPONDER %

PRESTIGE OR

VALUE

10 10%

PERSONAL YOU

LIKE

9 9%

FAMILY& FRIENDS

SUGGEST

22 22%

ECONOMICALLY

GOOD

4 4%

INTERPRETATION:

This chart shows thatpeople are preferring wagonR car because

they family& friends suggest & value of car is also average.

10%

9% 22%

4%

TABLE:

PRESTIGE OR VALUE

PERSONAL YOU LIKE

FAMILY& FRIENDSSUGGEST

ECONOMICALLY GOOD

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 67

Q-7. DOES ANY AGE FACTER AFFECT YOU WHILE

PURCHING WAGONR CAR.

TABLA

RESPONSE RESPONDENT %

YES 12 12%

NO 33 33%

INTERPRETATION:

This chart shows that while purchasing wagonR car,age factor

some how affect.and mostly family are preferring wagonR because

of ecomomically comfort.

33

0

5

10

15

20

25

30

35

40

45

50

1 2

NO

YES

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 68

Q-8. DOES ADVERTISHMENT AFFECT YOUR BUYING

BEHAVIOUR?

TABLE:

RESPONSE RESPONDENT %

YES 23 23%

NO 24 24%

I INTERPRETATION:

This chart shows that people are affected by

advertisement,advertisement affect their purchasing

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 69

Q-9 FOR WHAT PURSOSE YOU ARE USING WAGONR CAR?

TABLE:

RESPONSE RESPONDENT %

OCCUPATION 8 8%

COMFORT LEVEL 19 19%

LUXURY 1 1%

LESS PRICE 9 9%

OTHER 8 8%

INTERPRETATION:

This chart shows that people are preferring wagonR car for

their comfort level & less price and occupation purposes

8%

19% 1%

9%

8% 0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

OCCUPATION COMFORTLEVEL

LUXURY LESS PRICE OTHER

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 70

Q-10. OUT OF FOLLOWING WHAT PERSONALY

MOTIVATES YOU TO BUY WAGONR CAR?

TABLE:

RESPONSE RESPONDENT %

LOOK 10 10%

SMOTHNESS 11 11%

AFTERSALES

SERVIECES

4 4%

AVRAGE 13 13%

OTHER 7 7%

INTERPRETATION:

This chart shows that mostly to average and smoothness of wagonR

car are the significant feature of wagonR car to motivatr people to buy

wagonR.

0%

2%

4%

6%

8%

10%

12%

14%

10% 11%

4%

13%

7%

Series1

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Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 71

Q-12.HOW MUCH ARE YOU SATISFIED WITH WAGONR

CAR?

TABLE:

RESPONSE RESPONDENT %

HIGHLY

SATISFIED

2 2%

SATISFIED 25 25%

NEUTRAL 17 17%

DISSATISFIED 11 11%

HIGHLY

DISSATISFIED

0 0%

INTERPRETATION:

This chart shows that mostly customer are satisfied &17% are neutral.

2%

25%

17%

11%

0% 0%

5%

10%

15%

20%

25%

30%

Series1

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 72

Q-13 IN FUTURE WILL YOU MOVE TOWARD OTHER

COMPANY CAR?

TABLE:

INTERPRETATION:

This chart shows that in future they will not move other brand in

future as they are satisfied &some people will move due to some

reasone.

RESPONSE RESPONDENT %

YES 21 21%

NO 24 24%

20%

20%

21%

21%

22%

22%

23%

23%

24%

24%

YES NO

21%

24%

YES

NO

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 73

Q-14. HOW DO YOU RATE THE SERVVICE CHARGE?

TABLE:

HIGH 9% 45

MODERATE 25% 45

LOW 11% 45

INTERPRETATION:

This chart shows that after sales service chare are moderate.

RESPONSE RESPONDENT %

0%

5%

10%

15%

20%

25%

TABLE: HIGH MODERATE LOW

9%

25%

11% Series1

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 74

FINDINGS

1. chart shows that mostly people have ther own car,and 17% people done have

there own car

2. chart shows that 60% of people are using maruti Suzuki brand company

car then other car company.

3. chart shows that most of people who have maruti Suzuki brand car are using wagonR model.

4. This chart shows that in single family mostly 2 or 3 member are using wagonR car.

5. customer are getting information mostly from advertishment and showroom.

6.customers are mostly preferring wagonR car because they family& friend like& value for higher middle class.

7.while purchasing wagonR,age factor does not affect family.

8. people are affected by advertishment and mostly by average of car.

9. customers are preferring wagonR for their comfort level& less price

.

10. avrage& smoothness of car are the significant feature of wagonR to motive people to buy car.

11. mostly customer are satisfied &17% are neutral.

12.customers will not move toward other brand in future as they are satisfied &some people will move due some

reason.

13.mostly customers will recommend wagonR to other as thet are satisfied but some will not recommend as due to

high after sales service charges or some other reason..

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 75

Chapter-6 concusion &

recommendation

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 76

Conclusion:

From analyasis project I concluded that people don`t know much about the brand of the

company,even their names so to remain into competitive world.i said that more number of

customer is aware by the same source of advertisement.

I have concluded that in the present competitive world it is necessary for every company to

attract the customer in price and quality.

The main rival is Hyundai so the company should implement new strategies to survive in

the market.

From analyzing project customer need some changes like mackwheels,spoilers,heavy

tyres,sport version,some modification in look,reduction in price,back bump,more

colour,changes in interior design.

RECOMMENDATIONS

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NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 77

WHILE PURCHASING AGE FACTOR AFFECT THE

CUSTOMER SO COPANY HAS TO MAKE THEIR

CARS MORE PROFESSIONAL OR MAKE SOME NEW

EDITIONS.

MOSTLY CUSTOMERS ARE GETTING

INFORMATION FROM THEIR FRIEND&RELATIVES

SO COMPANY HAS TO ADVERTISE THEIR

PRODUCT MORE&ALSO THROUGH DIFFERENT

MODES TO INCREASE THEIR SALES.

COMPANY HAS TO MAKE THEIR AFTER SALES

SERVICE CHARGES LOW BECAYSE CUSTOMER

CONSIDERING THAT AFTER SALES SERVICE

CHARGES ARE HIGH SO IN FUTURE THEY WILL

NOT RECOMMEND TO OTHER OR MOVE TOWARDS

OTHER BRAND .

IT IS QUITE COSTLY PRODUCT,SO THE PRICE

SHOULD BE REDUCE A LITTLE.

LOOK &SMOOTHNESS ARE THE IMPORTANT

FEATURES SO THE COMPANY HAS TO FOCUS ON

OTHER FEATURES TO ATTRACT MORE

CUSTOMERS.

CUSTOMERS ARE GIVING LOW RANK TO

PRICE&AFTER SALES SERVICES SO THE COMPANY

HAS TO FOCUS ON AFTER SALES SERVICES&

PRICES AND MAKE THEM MORE EFFECTIVE.

Page 78: Consumer buying behavior of wagonR car of maruti Suzuki.docshare01.docshare.tips/files/13569/135695915.pdf · Consumer buying behavior of wagonR car of maruti Suzuki. NAVNIRMAN INSTITUTE

Consumer buying behavior of wagonR car of maruti Suzuki.

NAVNIRMAN INSTITUTE OF MANAGEMENT | 4.9Scope of study: 78

BIBLOGRAPHY

BOOK:

1. D.L. Carney, J.I. Cochran, “The 5ESS Switching System:

Architectural Overview,” PHILIP KOTLER

KEVIN LANE,KELLER,ABRAHAM

KOSHY,‖MARKETINGMANAGEMENT‖,13 TH EDITION,DORLING

KINDERSLEY

AT&T Technical Journal, vol. 64, no. 6, July-August 1985,

pp. 1339-1356.

WEBSITES:

HTTP://WWW.QUIKR.COM/AUTOMOBILE_INDUSTRY_IN_INDIA/Z149?A

DWO

HTTP://EN.WIKIPEDIA.ORG/WIKI/AUTOMOBILE_INDUSTRY_OF_INDIA.

HTTP://EN.WIKIPEDIA.ORG/WIKI/FILE:MARUTI_SUZUKI_WAGONR

CAR.JPG.