SHARDA UNIVERSITY GREATER NOIDA, UP

STUDY ON CONSUMER BUYING BEHAVIOR & SATISFACTION LEVEL OF TWO WHEELER WITH REFERENCE TO BAJAJ AUTO.

PROJECT REPORT

NEERAJ BHANDARI

SEC : C

2/7/2014

THE PROJECT IS UNDERTAKEN TO KNOW THE CUSTOMERS BEHAVIOR AND SATISFACTION LEVEL FOR BAJAJ AUTO.THIS STUDY WILL HELP BAJAJ AUTO TO KNOW THE WAY OF PROVIDING SERVICES AND QUALITY TO THE CUSTOMERS AND ALSO TO KNOW THE CUSTOMERS PERCEPTION.

CONTENT

1. HISTORY OF BAJAJ AUTO.

2. KEY DATES : HISTORY

3. OUTLOOK OF TWO WHEELER INDUSTRY

4. INTRODUCTION OF STUDY

5. OBJECTIVES OF THE STUDY

6. VISION OF THE COMPANY

7. CUSTOMER BEHAVIOR

8. CUSTOMER BUYING DECISION PROCESS

9. ANALYSIS AND INTERPRETATION

10. FINDINGS

11. SUGGESTIONS

12. BIBLIOGRAPHY

COMPANY HISTORY

BAJAJ AUTO LTD IS ONE OF THE LEADING TWO & THREE WHEELER MANUFACTURERS IN INDIA. THE COMPANY IS WELL KNOWN FOR THEIR R&D, PRODUCT DEVELOPMENT, PROCESS ENGINEERING AND LOW-COST MANUFACTURING SKILLS. THE COMPANY IS THE LARGEST EXPORTED OF TWO AND THREE-WHEELERS IN THE COUNTRY WITH EXPORTS FORMING 18% OF ITS TOTAL SALES.

BAJAJ AUTO LIMITED IS ONE OF THE INDIA’S LARGEST MANUFACTURER OF SCOOTERS AND MOTORCYCLES.THE COMPANY GENERALLY HAS LAGGED BEHIND ITS JAPANESE RIVALS IN TECHNOLOGY, BUT HAS INVESTED HEAVILY TO CATCH UP.IT’S STRONG SUIT IS HIGH VOLUME PRODUCTION.IT IS THE LOWEST COST SCOOTER MAKER IN THE WORLD.ALTHOUGH PUBLICLY OWNED, THE COMPANY HAS BEEN CONTROLLED BY THE BAJAJ FAMILY SINCE ITS FOUNDING.

KEY DATES:

1945: BAJAJ AUTO IS FOUNDED

1960: RAHUL BAJAJ BECOMES THE INDIAN LICENCE FOR VESPA SCOOTER

1977: TECHNICAL COLLABORATION WITH PIAGGIO ENDS

1984: WORK BEGINS ON A SECOND PLANT

1998: BAJAJ PLANS TO BUILD ITS THIRD PALNT TO MEET DEMAND

2000: THOUSANG OF WORKERS ARE LAID OFF TO CUT COST

2010: BAJAJ AUTO LAUNCHED A 135 CC PULSAR

2011: BAJAJ AUTO - BAJAJ RECORDS ITS BEST YEAR EVER 2012: BAJAJ AUTO HAS TIED UP WITH JAPAN’S KAWASAKI IN INDONESIA

INTRODUCTION OF STUDY

THIS PROJECT IS UNDERTAKEN TO KNOW THE CUSTOMER BEHAVIOR AND SATISFACTION LEVEL FOR BAJAJ AUTO.THIS STUDY WILL HELP BAJAJ AUTO TO KNOW THE MOST POPULAR WAY BY WHICH THEY ARE PROVIDING SERVICES AND QUALITY TO THE CUSTOMERS AND TO KNOW VARIOUS CUSTOMERS PERCEPTION.

FROM THE STUDY IT WAS FOUND THAT BAJAJ AUTO MOTORCYCLE IS HAVING GOOD BRAND IMAGE IN THE MARKET.

OBJECTIVES OF THE STUDY

MAIN PURPOSE OF THE STUDY WAS TO KNOW THE CUSTOMER BUYING BEHAVIOR AND DEMAND INTO THE MINDS OF CUSTOMER BECAUSE ALWAYS CUSTOMER SAYS SOMETHING AND DOES SOMETHING ELSE.AT THE SAME TIME AS THERE ARE MANY COMPANIES MANUFACTURING MOTORCYCLES, IDEAS ABOUT THINKING OF CUSTOMER ON WHETHER, WHAT, HOW AND FOR WHOM TO PURCHASE THE MOTORCYCLE.THEREFORE, RESEARCH IS REQUIRED TO MEASURE THE PRESENT CONSUMER BUYING BEHAVIOR AT THE PURPOSE OF BAJAJ AUTO BIKE.

VISION

TO MAKE BAJAJ AUTO THE DOMINANT FOR BEST SERVICE PROVIDER AND DEALER BUILT ON TRUST BY ALL CLASS PEOPLE BY FOLLWING THEBELOW POINTS:

UNDERSTANDING THE NEEDS OF CUSTOMERS AND OFFERING THEM SUPERIOR PRODUCTS AND SERVICE

LEVERAGING TECHNOLOGY TO SERVICE CUSTOMERS QUICKLY,EFFICIENTLY AND CONVENIENTLY

PROVIDING AN ENABLING ENVIRONMENT TO FASTER GROWTH AND LEARNING FOR EMPLOYEES

CUSTOMER BEHAVIOUR

THE MAIN AIM OF MARKETING IS TO MEET AND SATISFY THE TARGETS OF THE CUSTOMERS NEEDS AND WANTS.BUYER BEHAVIOR REFERS TO THE PEOPLES OR ORGANISATION CONDUCT ACTIVITIES AND TOGETHER WITH THE IMPACT OF VARIOUS INFLUENCES ON THEM TOWARDS MAKING DECISION ON PURCHASE OF PRODUCT AND SERVICE IN A MARKET.THE FIELD OF CONSUMER BEHAVIOR STUDIES HOW INDIVIDUALS,GROUPS AND ORGANISATION SELECT,BUY,USE AND DESPISE OF GOODS,SERVICE,IDEAS,OR EXPERIENCE TO SATISFY THEIR NEEDS AND DESIRES UNDERSTANDING CONSUMER BEHAVIOR AND KNOWING CUSTOMER ARE NEVER SIMPLE.

THE WEALTH OF PRODUCTS AND SERVICES PRODUCED IN A COUNTRY MAKES OUR ECONOMY STRONG.THE BEHAVIOR OF HUMAN BEING DURING THE PURPASE IS TERMED AS BUYER BEHAVIOR.CUSTOMER SAYS ONE THING BUT DO ANOTHER.THEY MAY NOT BE IN TOUCH WITH THEIR DEEPER MOTIVATIONS.

CUSTOMER BUYING DECISION PROCESS:

1. PROBLEM IDENTIFICATION :THE BUYING PROCESS STARTS WHEN THE BUYER RECOGNIZES A PROBLEM OR NEED. MARKETERS NEED TO IDENTIFY THE CIRCUMSTANCES THAT TRIGGER PARTICULAR NEED.BY GATHERING INFORMATION, FROM A NUMBER OF CONSUMERS; MARKETERS CAN IDENTIFY THE MOST FREQUENT STIMULI THAT SPARK AN INTEREST IN A PRODUCT CATEGORY.

2. INFORMATION SEARCH :THROUGH GATHERING INFORMATION, THE CONSUMER LEARNS ABOUT COMPLETING BRANDS AND THEIR FEATURES.INFORMATION MAY BE COLLECTED FROM MAGAZINES, CATALOGUE, RETAILERS, AND TRAID FAIR AND SO ON.

3. EVALUATION OF ALTERNATIVES :THERE IS NO ANY SINGLE PROCESS USED BY ALL CONSUMERS IN ALL BUYING SITUATION.FIRST, THE CONSUMER TRIES TO SATISFY NEED AND THEN,SECOND, THE CONSUMER WANTS CERTAIN BENEFITS FROM PRODUCT SOLUTION.

4. CHOICE OF PURCHASING DECISION :FROM AMONG THE PURCHASE OF ALTERNATIVES THE CONSUMER MAKES THE SOLUTION.IT MAY BE TO BUY OR NOT TO BUY.IF THE DECISION IS TO BUY, THE OTHER ADDITIONAL DECISION ARE,

WHICH TYPE OF BIKE HE MUST BUY?FROM WHOM DO YOU BUY THE BIKE?HOW THE PAYMENT TO BE MADE? AND SO ON...

5. POST PURCHASE BEHAVIOR :

AFTER PURCHASING THE PRODUCT, THE CONSUMER WILL EXPERIENCE THE SAME LEVEL OF PRODUCT.THE MARKETER MUST FOCUS TO THE SATISFACTION, ACTION AND USE OR DISPOSAL OF THE PRODUCT.

POST PURCHASE SATISFACTION :THE LARGER THE GAP BETWEEN EXPECTATION OF THE CONSUMER AND PERFORMANCE OF THE MARKETER, THE GREATER THE CONSUMER DISSATISFACTION.

POST PURCHASE ACTION :IF THE CONSUMER IS SATISFIED WITH THE PRODUCT, HE OR SHE WILL ENROLL ON PURCHASING THE PRODUCT AGAIN.DISSATISFACTION CONSUMER MAY ABANDON AND RETURN THE PRODUVCT.

OUT LOOK OF TWO-WHEELER INDUSTRY

AFTER INDEPENDENCE, BAJAJ AUTO LTD. HAD AN UNDISPUTED LEADERSHIP OVER THE MARKET. THE INDUSTRY REGISTERED COMPOUNDED GROWTH RATE OF 12% DURING THE SEVENTIES.

IN PHASE TWO, JAPANESE COMPANIES WERE TYING UP WITH DOMESTIC PLAYERS AND NEW MODELS WERE INTRODUCED. THE GROWTH RATE FOR THE TWO-WHEELER INDUSTRY THIS PHASE STOOD AT 16.4%. THIS PHASE EXTENDED TILL EARLY NINETIES. IN PHASE THREE, SALES STARTED PICKING UP IN 1994. IN 1995, THE INDUSTRY PRODUCED ABOUT ONE MILLION SCOOTERS AND 6 LAKH MOTORCYCLES. ALL MOST ALL THE COMPANIES WERE GOING IN FOR EXPANSION.THE MANUFACTURERS OF TWO-WHEELERS DISTINGUISH THEIR PRODUCTS ON THE BASIS OF POWER, FUEL EFFICIENCY, AND MAINTENANCE REQUIREMENT, EASY IN HANDLING, STYLE & PRICE.

INDIA IS THE THIRD LARGEST PRODUCER OF TWO WHEELERS AFTER JAPAN AND CHINA AND THE SECOND LARGEST CONSUMER AFTER CHINA. DESPITE THE POOR ROAD INFRASTRUCTURE AND THE MEAGER PURCHASING POWER, THE TWO-WHEELER INDUSTRY IN INDIA HAS ENJOYED A WIDER APPEAL WITH THE MASSES AS A MEANS OF PRIVATE TRANSPORT. TWO-WHEELERS ARE USUALLY CLASSIFIED INTO THREE TYPES: THEY ARE SCOOTERS, MOTORCYCLES, MOPEDS AND ELECTRIC TWO WHEELER.

THE MOTORCYCLE INDUSTRY, HAS REACHED THE STATE OF A COMPETITIVE MARKET WITH A FEW COMPANIES PRODUCING A GOOD RANGE OF PRODUCTS AND PRESENT THRUST IS UPON INNOVATIONS AND HIGH EFFICIENCIES. THE MARKET HAS STEADILY MOVED FROM A SELLERS MARKET TO A BUYERS MARKET. THE COMPANIES ARE RESPONDING QUICKLY TO CHANGING CUSTOMER DEMANDS TO STAY IN THE BUSINESS. PRODUCTS ARE INTRODUCING VARIOUS MODELS OR UPGRADING EXISTING MODELS TO CATER TO THE DIFFERENT SEGMENT AND THERE IS AN EMPHASIS ON INCREASING ADVERTISEMENT EXPENDITURE AND BETTER SERVICE THROUGH UPGRADED SERVICE CENTERS.

ANALYSIS AND INTERPRETATION

Q1. WHICH BIKE DO YOU HAVE?

INTERPRETATION: - OUT OF THE SAMPLE SIZE OF 90 CUSTOMERS, 15 CUSTOMERS ARE OF HERO HONDA, 55 ARE OF BAJAJ AND 20 CUSTOMERS OF OTHER MOTORBIKES ARE TAKEN INTO CONSIDERATION.

Q2. ARE YOU SATISFIED WITH THE PERFORMANCE OF THE BIKE THAT YOU ARE CURRENTLY HAVING?

YES; 70

NO; 11

CANT'T SAY; 9

INTERPRETATION: - OUT OF THE SAMPLE SIZE OF 90 CUSTOMERS, 70 CUSTOMERS SAYS THAT THEY ARE SATISFIED WITH THE PERFORMANCE OF THEIR BAJAJ BIKES. ON THE OTHER HAND 11 CUSTOMERS ARE NOT SATISFIED WITH THE PERFORMANCE OF THE BIKES THAT THEY ARE HAVING. WHILE THE REMAINING 9 CUSTOMERS ARE UNABLE TO SAY ANYTHING.

HERO HONDA; 15

BAJAJ; 55

OTHERS; 20

HERO HONDA 15

BAJAJ 55

ANY OTHER 20

YES 70

NO 11

CAN’T SAY 9

Q3. Which Factor below Influence your decision?

PRICE; 22

MILEAGE; 15

QUALITY; 20

RESALE VALUE; 14

STATUS SYMBOL; 32

INTERPRETATION: - IN BAJAJ BIKES THE PRICE OF THE BIKE AND THE VALUE THAT IT ADDS TO THE STATUS SYMBOL OF THE CUSTOMERS INFLUENCES THE DECISION CRITERIA OF MOST OF THE CUSTOMERS.

FINDINGS

PRICE 22MILEAGE 15QUALITY 20RESALE VALUE 14STATUS SYMBOL 32

IN CURRENT MARKET SCENARIO, RESPONDENTS GIVE MAXIMUM NO. OF WEIGHT AGE TO THE STATUS SYMBOL THEN AFTER THEY CONSIDER PRICE AND QUALITY OF THE PRODUCT RESPECTIVELY.

THE STUDY SHOWS THAT 55 RESPONDENTS ARE ALREADY USER OF BAJAJ MOTORCYCLE.SO BAJAJ AUTO IS POPULAR AUTOMOBILE COMPANY IN STUDY REGION.

THE STUDY SHOWS THAT 32 RESPONDENTS GIVE MORE POINTS TO STATUS SYMBOL OF THE PRODUCT IN THE MARKET.

OUT OF THE SAMPLE SIZE OF 90 CUSTOMERS, 70 CUSTOMERS SAYS THAT THEY ARE SATISFIED WITH THE PERFORMANCE OF THEIR BAJAJ BIKES.

THE STUDY SHOWS THAT MOST OF THE RESPONDENTS CONSUMED THE PRODUCT BY FOCUSING TO THE STATUS AND PRICE OF THE PRODUCT IN THE MARKET.

SUGGESTIONS

1. COMPANIES SHOULD GIVE MORE EMPHASIZE ON NEWS PAPER AS AN INFORMATIVE TOOL FOR GIVING THE INFORMATION ABOUT MOTORBIKE.

2. IF COMPANY’S TECHNICAL DEPARTMENT WILL WORK IN INCREASING THE MILEAGE AND STYLISH LOOK OF MOTORBIKE SO MORE CUSTOMER WILL ATTRACT.

3. THE DEALERS MUST EMPHASIS ON GOOD AND HEALTHY RELATIONSHIP WITH THE CUSTOMERS BECAUSE CUSTOMERS ARE VERY MUCH AFFECTED BY THEIR FRIENDS AND RELATIVES WHO ARE USING THE MOTORBIKE.

4. COMPANIES SHOULD CONTINUE ITS WAY OF CREATING THE BRAND NAME LIKE FULFILLING THE SOCIAL RESPONSIBILITY.

5. REGULAR CUSTOMER FEEDBACK SHOULD BE THERE SO COMPANY CAN KNOW REGULARLY THAT, WHAT CUSTOMERS WANT IS.

BIBLIOGRAPHY

1. www.google.com

2. www.bajaj.com

3. www.twowheeler.com

4. www.extrememachines.com