Consumer Buying Behaviour and Perception in Small Car Segment

8/4/2019 Consumer Buying Behaviour and Perception in Small Car Segment

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CONSUMER BUYING BEHAVIOUR

AND PERCEPTION

SMALL CAR SEGMENT


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Objectives of the research....

Examine the psychographics of potential small sizecar customers.

Probe the buying behavior of car owners.

Find people expectations or satisfaction regarding

the small cars. To judge the awareness level of small cars.

To study the attributes of different brands of

small cars.

To probe into consumers knowledge about cars.

To know the marketing mix of this product category.


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Segment-Wise Classification of the Indian

Car MarketSegment

Range Price in lacs Models

Economy Maruti 800,

Maruti Omni, Premier,

Fiat , Reva.

Mid-Range 3-4 Uno, Zen, 118 NE, Ford

Fiesta, Fiat

Premium 5-7 Esteem, Contessa, Opel

Astra, Ford Escort, Cielo,

Mitsubishi Lancer,

Hyundai Accent


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Key Demand Drivers...

Disposable Income

Mobility Needs of People

Change in standard of living

easy monthly installment and loan schemes available


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Data Analysis...

Sample size - 30

Respondents - 27

Owners of Santro - 6

Owners of Zen - 9

Owners of Indica - 6

Owners of 800 - 4

Owners of other cars - 3


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Various Factors Important in Car Purchase..

Cost

Style

performance

Performance and Style

Performance and Cost

Style and Cost

Style Cost and performance


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FACTORS IMPORTANT IN A CAR PURCHASE

7%

7%

50%

12%

18%

3%3%

COST

STYLE

PERFORMANCE

PERFORMANCE AND

STYLE

PERFORMANCE AND

COST

STYLE AND COST

STYLE COST AND

PERFOMANCE


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What are the sources of advertising that you recall,

as a influencing factor to you?

Television Newspaper Hoardings Magazines Sponsorships Any other

35

73

20

7

0

10

20

30

40

50

60

70

80

PERCENTAGE OF

RESPONDENTS

1

INFLUENCERS

INFLUENCING FACTORS IN DECISION MAKING

FRIENDS

FAMILY

MEDIA

OTHERS


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SOURCES OF INFORMATION

21

27

35

22

3

27

0

5

10

15

20

25

30

35

40

1

SOURCE OF INFORMATION

NUMBER

OFRESPONDEN

TS

TELEVISION

MAGAZINE

FRIENDS

DEALERS

MECHANIC

OTHER CAR OWNERS

Source of Information for buying a car..


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Are you satisfied with your current car ?

Most of the small car consumers are somewhat happy

with their purchases. A probe into respondents

satisfaction level, ranking from 1 to 5 where 1 was

full satisfaction and 5 full dissatisfaction with theirs

cars, gave 70% as an average figure of satisfaction

level.

Out of a total of 27 respondents, 17 ranked theirsatisfaction level as 1, 5 ranked 2, 2 ranked 3, 2

ranked 4 and only one respondent showed null

satisfaction.


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WHICH CAR IS THE BEST IN OVERALLPERFORMENCE

26%

42%

34%

70%

SANTRO

INDICA

MARUTI-800

MARUTI ZEN

Which car is best in overall performance among

the 4 choices ?


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Conclusion and Recommendations..

Consumers of small cars are seeking a very good overall performance

in a car than any other attributes . Most of the consumers prefer Small cars and mid sized cars for their good

mileage, good acceleration, easy driveability, requiring small rooms for parking. Good looks hardly count for the buyers of small cars. Good after sales service and low maintenance in a vehicle is a garnish on

customers delight.

Safety and credit facility are almost ignored factors. Family has the highest influencing power in making a purchase decision for an

Indian consumer. Usually consumers get detailed information through friends, magazines, other

car owners and dealers. Maruti has got the highest advertisement coverage followed by Hyundai

and Indica. Indica and Santro has outscored Zen and Uno in brand recall with their

scintillating marketing and advertising strategies.Santro has created a niche position for itself as a celebritys car,

Shahrukh Khans car.

Zen as compared to Maruti 800 was not able to create such a brand name in theminds of consumers.


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Continued...

Zen and Santro are perceived as cars with a more feminine appeal. The dream cars of the consumers are high luxury cars like Mercedes S-class,

BMW, Ferrari, Pajero, Rolls Royce, Jaguar, Porsche Most of the respondents are in an income bracket of Rs.20001 to Rs.25000

and above Rs.25000. This indicates that most of the car owners belong toeither upper of upper middle class segment.Performance of a car clearly outweighs its style and cost on the consumers

list of priorities to buy a car. A mere 25% of respondents gave style and 30% gave cost as their reasons to

buy a car. 85% of respondents gave performance of a car as a factor formaking a purchase decision.


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Scope and limitations of the study...

Limited sample size, that is only 30 respondents.

Taking the convenience sampling might have led to some bias

as people with different age groups have different perception.

People with above age group of 35 and above have more

awareness than people between the age group of 20-35 years.


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Consumer Buying Process

Maruti 800

Santro

ZenIndica

Honda cityFord ikon

Esteem

Accent

Maruti 800

SantroZen

Indica

Honda city

Ford ikon

Maruti 800

SantroZen

Indica

Ford ikon

Maruti 800Santro

Zen

Indica

Santro

TotalSet

Awareness

Set

Consideration

Set Choice

SetDecision


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Thank You

Consumer Buying Behaviour and Perception in Small Car Segment

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