1

Project On

“Study on Consumer Buying Behavior & Satisfaction Level for Hero

Honda Motorcycle with reference to Chikhli city in Navsari”

Master of Business Administration (Marketing)

Submitted in partial fulfillments of requirements for award of Master of Business Administration of

Tilak Maharashtra University, Pune.

Submitted By:

OWESH R. DABAWALA

(Batch 2008-10) PRN: 07208013444

Of

PAI International Centre for Management Excellence, Pune-411001

Tilak Maharashtra University Gultekdi, Pune 411037

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Certificate Of Internal Guide

This is to certify that project titled ―Study on Consumer Buying Behavior &

Satisfaction Level for Hero Honda Motorcycle with reference to

Chikhli city in Navsari‖ is a bonafide work carried Out by Mr. Owesh

R. Dabawala a candidate for the award of Master of Business

Administration of Tilak Maharastra University, Pune under my guidance

and direction.

Signature of guide

Name: DR. Roshan Kazi

Date: Designation: HOD

(MBA)

Place: Institute: AIMS

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ACKNOWLEDGEMENT

Concentration, dedication, hard work and application are essential but not the only

factor to achieve the desired goal. Those must be supplemented by the guidance

assistance and cooperation of experts to make it success.

I am extremely grateful to my institute for providing me the opportunity to undertake

this research project in the prestigious field.

With profound pleasure, I extend my extreme sincere sense of gratitude and

indebtedness to Mr. Kadar Memon and Mr. Razak Memon (Founder of Supreme

Auto) for extensive and valuable guidance that was always available to me

ungrudgingly and instantly, which help me complete my project without difficulty.

I express my deep and sincere gratitude to Mr. Nitin Patel (Sales Manager of Supreme

Auto) for providing me firsthand knowledge.

Last but not the least I am indebted to Prof.R Ganesan, Director, of our institute and

my project guide Prof.Roshan Kazi (HOD OF MBA) without whose sincere gratitude

this project would not have been possible.

I am thankful to all of my friends and batch mates for their help in completing this

project work. Finally, I am thankful to my entire family members for their great support

and encouragement.

Owesh R. Dabawala

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Contents

Chapter

No.

SUBJECT

PAGE

NO.

1 Rationale of Study 1

2 Objective of the Study 6-8

Title of the project

Objective of the Study

Scope of the Study

3 Profile of Company 9-22

4 Review of Literature 23-29

5 Research Methodology 30-34

Research Design

Data collection methods/sources

Sampling plan

6 Data Analysis and Interpretation 35-50

7 Findings 51-53

8 Limitations 54-55

Appendix 56

Questionnaire 57-60

Form or any from the company 61

Bibliography 62

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Chapter: I

Rationale for The Study

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Two Wheeler Auto Mobile’s Introduction

Throughout the centuries man has striven to expand his capabilities through the use of machine. His

ever inventive mind has constantly devised ways to use tool to increase his abilities to explore the

world around him. To go faster, deeper, higher and further than before was it. Coupled with his need to

find new thrills, new adventures and new modes of transportation, the invention refinement of the

motorcycle seems an inevitable outcome.

It would seem that Michelangelo conceived of the bicycle as early 14th

century. And his drawing

shows a remarkable resemblance to he modern day bike. It had wheels of similar size and even pedals

and chain. Albeit made without any apparent means of steering.

Through never built, it was a remarkably clever design, and early bicycle makers would have done

well to study his concepts, there have, in fact been 4 machines built based on his drawing, attesting to

the viability of his design.

It wasn‘t until 1869 that the first serious attempts were made to produce motor driven bicycles.

These very first were powered by steam, and driven by leather belts or as in the case of the roper steam

velocipede of 1869 by a system of levers attached to a crank on the driven wheel.

In 1885 the Daimler, Europe this is consider by many as the first true motorcycle or motor

bicycle, as it was the first to employ an internal combustion engine and was designed from the ground

up to be motor powered. Designed by gottlibe Daimler it was powered by an Otto cycle engine

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producing about ½ horse powers. Note this design again employed wooden wheels and Daimler

dropped the twist grip controls from his 1877 design in favor of leavers on the frame.

In 1894, Hildebrand and Wolfmuller, France Worlds produce first motorcycle. It came with a 1428

cc water cooled four-stroke motor producing 2.5 bhp. And speed of 25 mph.

In 1898 orient-Aster, USA the American made production motorcycle was this entry built by the

Metz Company, in Waltham, mass, it used an aster engine that was a French copy of the Metz

Company, in Waltham, mass.

Introduction of India Two wheeler’s Company

Bikes or two wheelers in India cater to various needs of the consumers. With the choice of the Indians

improving from bicycles to two wheelers, the Indian two-wheeler market has seen a significant growth

over the years. Now owing a bike has become a must for most Indians. Even if people own a car they

prefer to have a bike as it is very economical and fuel efficient.

With the growth in the economy the demand for two wheelers is increasing over the years. It is one of

the most dynamic industries today and with the increasing competition companies are bringing in new

products with sophisticated technologies and innovative features to capture a major pie of the Indian

market and it‘s the consumer who is benefited from it..

With the availability of reduced consumer loans and high disposable income the Indian two-wheeler

industry has perceived an exceptional growth over the past few years thereby making India the second

largest market for two wheelers in the world only after China.

The motorcycle has now become one most popular mode of transportation among the Indian middle

class families because of it is cost effective, economical and easy to navigate through the traffic.

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Moreover, the people have started preferring bikes instead of scooters and mopeds and today bikes

form a major part of the Indian two wheelers.

Indian companies are one of the largest two wheeler manufacturers in the world. The number one bike

manufacturer in the world, Hero Honda is in close competition with the Indian manufacturer Bajaj

India.

The motorcycle industry in India has witnessed a tremendous change in the 90‘s with the invention of

4 stroke engine which makes the bikes more fuel efficient. Further companies are trying to bring in

more innovations to make the motorcycle ride more comfortable, safe and user friendly and

economical.

In a nut shell the followings factors can be distinguished for the growth of motorcycle industry in

India:

Easy accessibility to cheap consumer loans

The increase in the average income of the family.

The reduction in duties and taxes.

Convenience with regards to commuting as compared to the public transport system.

Continuous innovations in technology making the bikes economic and fuel-efficient.

The first choice among youths and teenagers.

IInnttrroodduuccttiioonn ooff SSttuuddyy

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Selling of any product, there is needed to build relationship with customer. For building a relationship

there is need for knowing the customer behavior and how will be they satisfied?

This project is undertaken to know the customer behavior & satisfaction level for Hero Honda

Motorcycle in Supreme Auto (at Chickhli). Also through this project get awareness that which factors

affect on the selling of bike mainly in the rural area. Because the area where project was undergoing, it

is almost rural area and most population income depends on agriculture or its products.

There were some limitations while doing the project. The data was collected by personal interviews of

the respondents. It was very challenging to fill up the questionnaire as most of the population comes

from rural back ground. As it was the rural area we were supposed to explain each and every question

of the questionnaire. Also many of them did not show any interest in filling questionnaires..

This study will help Hero Honda to know the most popular way by which they are providing services

and quality to the customers and to know various customers Perceptions.

From the study, we found that, the customers were highly satisfied with the products and service of

Hero Honda, but there were some complaints regarding after sales service and staff of Hero Honda.

It was found that Hero Honda Motorcycle is having a good brand image in the market. Most of the

respondents considered Hero Honda showroom is one of the best places to purchase of Motorcycle.

The present is the era of customers. Customers are more knowledgeable than ever before and because

the customer is more knowledgeable, companies must be faster, more agile and more creative than few

years ago. So companies should strive to enhance customer satisfaction through knowing their

expectations regarding products.

Hero Honda should improve on their after sales support, and have knowledgeable support staff. Also

Hero Honda should increase the range of its targeted market.

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CChhaapptteerr –– IIII

OObbjjeeccttiivvee ooff TThhee SSttuuddyy

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Title of the Project

In today‘s world customer is the key of the success of any business. So, Customer behavior and its

satisfaction level play very key role to sale of the product. That‘s why we decide to keep the project

title related this key factor called ―Study on consumer buying behavior and satisfaction

level for Hero Honda Motorcycle with reference to Chikhli in Navsari”.

Main purpose of the study was to know the customer buying behavior and demand into the minds of

customer of Chikhli because always customers say something and does something. At the same time as

there are many companies manufacturing motorcycles, idea about thinking of customer on whether,

what, how, and for whom to purchase the motorcycle.

Therefore, research is required to measure present consumer buying behavior at the purchase of Hero

Honda bike. so the researcher problem is to identify what are the criteria that prospective customer

takes into consideration before buying the motorcycles. Also after purchasing are customers being

satisfied or not?

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Objective of the Study

To know market position of Hero Honda bike in the market.

To know consumer behavior for purchase of two wheeler bike.

To identify the factor which influences on consumer decision?

To classify which types of customers visiting of Dealers with reference

to age, gender, income

To know which medium play important role for purchasing bike.

To study who is the decision make in purchasing bike?.

To study whether customers are satisfied with staff and services

or not?

Identifying possible areas of Improvement.

To know the status of different offers.

SCOPE OF STUDY

The main scope of the study is restricted to Chikhli city in Navsari.

This study has been made to find the level of satisfaction the customer has

regarding the service provider by bike place at Chikhli city.

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Chapter: III

PPrrooffiillee ooff TThhee CCoommppaannyy

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HERO HOND PROFILE

HERO HONDA HEADQUARTERS

Logo

Founded January 19, 1984 in Gurgaon, Haryana, India

Headquarters Haryana, India

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Board of Directors:

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & CEO

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Om Prakash Munjal Non-executive Director

6 Mr. Sunil Kant Munjal Non-executive Director

7 Mr. Masahiro Takedagawa Non-executive Director

Om Prakash Munjal, Founder

Mr. Brijmohan Lall Munjal, Chairman

Key people Mr. Toshiaki Nakagawa, Joint Managing Director

Mr. Pawan Munjal, Managing Director

Industry Automotive

Products Motorcycles, Scooters

Revenue U$ 2.8 billion

Website http://www.herohonda.com/site/home/home.asp

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8 Mr. Santoshi Matsuzawa (Alternate

Director to Mr.Takashi Nagai)

Non-executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent

Director

10 Gen.(Retd.) Ved Prakash Malik Non-executive & Independent

Director

11 Mr. Analjit Singh Non-executive & Independent

Director

12 Dr. Pritam Singh Non-executive & Independent

Director

13 Ms. Shobhana Bhartia Non-executive & Independent

Director

14. Mr. Meleveetil Damodaran Non-executive & Independent

Director

15. Mr. Arun Nath Maira Non-executive & Independent

Director

The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created

the world's single largest two wheeler company but also one of the most successful joint ventures

worldwide.

During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a

vehicle without polluting the roads. The company introduced new generation motorcycles that set

industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign

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captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on

the commitment of increased mileage.

Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost as many as the

number of people in Finland, Ireland and Sweden put together!

Hero Honda has consistently grown at double digits since inception; and today, every second

motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero

Honda's top -selling motorcycle – Splendor. This festive season, the company sold half a million two

wheelers in a single month—a feat unparalleled in global automotive history.

Hero Honda bikes currently roll out from its three globally benchmarked manufacturing facilities. Two

of these are based at Dharuhera and Gurgaon in Haryana and the third state of the art manufacturing

facility was inaugurated at Haridwar, Uttrakhand in April this year. These plants together are capable

of producing out 4.4 million units per year.

Hero Honda's extensive sales and service network now spans over 3000 customer touch points. These

comprise a mix of dealerships, service and spare points, spare parts stockiest and authorized

representatives of dealers located across different geographies.

Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda Passport

Program, one of the largest programs of this kind in the world, has over 3 million members on its

roster. The program has not only helped Hero Honda understand its customers and deliver value at

different price points, but has also created a loyal community of brand ambassadors.

Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is

constantly working towards consolidating its position in the market place. The company believes that

changing demographic profile of India, increasing urbanization and the empowerment of rural India

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will add millions of new families to the economic mainstream. This would provide the growth ballast

that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal, the Chairman, Hero

Honda Motors succinctly points out, "We pioneered India's motorcycle industry, and it's our

responsibility now to take the industry to the next level. We'll do all it takes to reach there.''

Mission: Hero Honda‘s mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price aspirations of

its customers. At the same time maintain the highest standards of ethics and social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the organization forge

a unique and mutually beneficial relationship with all its stake holders.

Product of Hero Honda Motorcycle:

Category Product Name Slogan Engine

Capacity

Entry

CD Dawn Dawn 97.2cc

CD Deluxe Naye Indian ki Nayi Deluxe Bike 97.2cc

Pleasure Why should boys have all the fun? 102cc

Deluxe

Splendor+ Designed to excel 97.2cc

Splendor NXG The New Xiting Ride 97.2cc

Passion Pro Ride your passion flaunt your style "style unlimited" 97.2cc

Passion Plus A whole new world of style 97.2cc

Super Splendor Generation nayi bharosha wahi 124.7cc

Glamour Simply Magnetic 124.7cc

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Glamour PGM FI Programmed fuel injection 124.8cc

Premium

Achiever Solid Like You 149.1cc

CBZ Extreme Live Extreme 149.2cc

Hunk Because Muscles Matter 149.2cc

Karizma Always Game 223cc

Market share of Hero Honda Motorcycle

Motorcycle:

Scooter:

20

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Dealer Profile

Two entrepreneurs Mr. Kadar Memon & Mr. Razak Memon as a partner have started journey with

Hero Honda Company on 20th

March, 2000 as starting workshop service station of HHML at Chikhli

dist:Navsari. After achieving some milestone in the company they are appointed as an authorized

dealer of HHML for Chikhli taluka. On 8th

July, 2005 Supreme Auto was established at Chikhli. In 4

years Supreme auto achieve many remarkable milestone and being one of the leading dealer behalf of

HHML.Hero Honda has given 4s (Sales, Service, Spares & Safety) facilities to the Supreme Auto.

SUPREME AUTO AT CHIKHLI

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Range of Providing Services: Company gives authority around 15 km far from Chikhli.

Areas are covered by dealer is given bellow.

Chikhli

Billimora

Khergam

Rankuwa

All above centers Supreme Auto has established their service centers. From there it offers sales,

services & spares to the customers.

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Service Centre of Supreme Auto

Value of Supreme Auto:

Trust

Satisfaction

Passion

VISION

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To make Supreme Auto the dominant for best service provider & dealer built on trust by all class

people. This we hope to achieve by:

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 foster growth and learning for our employees

And above all, building transparency in all our dealings.

MISSION

Understanding the needs of customers and offering them superior products and service

Building long lasting relationships with their customers & HHML.

Providing an enabling environment to foster growth and learning for their employees

DEALER’S ARD & SERVICE STATIION

There Are 1Dealer Showroom, 1 Main Service station & Workshop, 3 ARD (Authorized

Representative of Dealer).Which details are given bellow

TYPE NAME ADDRESS

DEALER SHOWROOM SUPREME AUTO

N.H.NO.8, THALA, CHIKHLI.

PH.:231100,232100

SERVICE

STATION&WORKSHOP

SUPREME AUTO

SAMROLI, KALAPUL, CHIKHLI.

PH:234100,231399

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WORKSHOPHELPLINE:9909133100

ARD REHBAR AUTO

SOMNATH ROAD , BILLIMORA

PH:284100

HELPLINENO.:9428383100

ARD RIDDHI AUTO

DESRA TEKRI, KHERGAM

PH:220233

ARD SPEED AUTO

RANKUWA

PH:247866

DEALER’S ORGANIZATION STRUCTURE

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SUPREME AUTO’S STRUCTURE

DEALERS’ TIE UP

Supreme Auto provides facilities of finance & insurance to the customer at a time. So customers does

not need to go anywhere for loan & insurance

Finance Tie up

HDFC

MASS FINANCE

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Both finance providers are belonging good reputation in the market. Also customers are free to get

finance from any finance company.

Insurance Tie up

IFCO-TOKYO

ICICI LOMBARD

Both insurance players have good image about customer oriented.

Achievements

During 2000 & 2001 it got award for best service provider of all over the

india.

It is included in top 7 scooter selling dealer of Gujarat.

E-R Diagram:

28

E-R diagram shows the process from inquiry of customers to delivery of bike or any services. It shows

the relation between entities.

Dealer Market Share

(Secondary data collection from RTO and data is related to Chikhli city)

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CChhaapptteerr –– IIVV

RReevviieeww ooff LLiitteerraattuurree

30

CCUUSSTTOOMMEERR BBEEHHVVIIOOUURR

TThhee mmaaiinn aaiimm ooff mmaarrkkeettiinngg iiss mmeeeett aanndd ssaattiissffyy ttaarrggeett ccuussttoommeerrss nneeeedd aanndd wwaannttss bbuuyyeerr bbeehhaavviioorr

rreeffeerrss ttoo tthhee ppeeoopplleess oorr oorrggaanniizzaattiioonn ccoonndduucctt aaccttiivviittiieess aanndd ttooggeetthheerr wwiitthh tthhee iimmppaacctt ooff vvaarriioouuss

iinnfflluueennccee oonn tthheemm ttoowwaarrddss mmaakkiinngg ddeecciissiioonn oonn ppuurrcchhaassee ooff pprroodduucctt aanndd sseerrvviiccee iinn aa mmaarrkkeett.. TThhee ffiieelldd

ooff ccoonnssuummeerr bbeehhaavviioorr ssttuuddiieess hhooww iinnddiivviidduuaallss,, ggrroouuppss aanndd oorrggaanniizzaattiioonn sseelleecctt,, bbuuyy,, uussee aanndd ddiissppssee ooff

ggooooddss,, sseerrvviiccee,, iiddeeaass,, oorr eexxppeerriieennccee ttoo ssaattiissffyy tthheeiirr nneeeeddss aanndd ddeessiirreess uunnddeerrssttaannddiinngg ccoonnssuummeerr bbeehhaavviioorr

aanndd kknnoowwiinngg ccuussttoommeerr aarree nneevveerr ssiimmppllee.. TThhee wweeaalltthh ooff pprroodduuccttss aanndd sseerrvviiccee pprroodduucceedd iinn aa ccoouunnttrryy

mmaakkee oouurr eeccoonnoommyy ssttrroonngg.. TThhee bbeehhaavviioorr ooff hhuummaann bbeeiinngg dduurriinngg tthhee ppuurrcchhaassee iiss bbeeiinngg tteerrmmeedd aass

――BBuuyyeerr BBeehhaavviioorr‖‖.. CCuussttoommeerr ssaayyss oonnee tthhiinngg bbuutt ddoo aannootthheerr.. TThheeyy mmaayy nnoott bbee iinn ttoouucchh wwiitthh tthheeiirr

ddeeeeppeerr mmoottiivvaattiioonnss.. TThheeyy aarree rreessppoonnddiinngg ttoo iinnfflluueenncceess tthhaatt cchhaannggee tthheeiirr mmiinndd aatt tthhee llaasstt mmiinnuuttee.. AA

bbuuyyeerr mmaakkeess ttaakkee aa ddeecciissiioonn wwhheetthheerr ssaavvee oorr ssppeenndd tthhee mmoonneeyy..

DDeeffiinniittiioonn ooff BBuuyyeerr BBeehhaavviioorr::--

BBuuyyeerr bbeehhaavviioorr iiss ――aallll ppssyycchhoollooggiiccaall,, SSoocciiaall aanndd pphhyyssiiccaall bbeehhaavviioorrss ooff ppootteennttiiaall ccuussttoommeerrss aass

tthheeyy bbeeccoommee aawwaarree ooff eevvaalluuaattee,, ppuurrcchhaassee,, ccoonnssuummee aanndd tteellll ootthheerrss aabboouutt pprroodduucctt && sseerrvviiccee..

31

CCuussttoommeerr bbuuyyiinngg DDeecciissiioonn PPrroocceessss

TThheerree aarree ffoolllloowwiinngg ffiivvee ssttaaggeess iinn ccoonnssuummeerr bbuuyyiinngg ddeecciissiioonn pprroocceessss..

11.. PPrroobblleemm iiddeennttiiffiiccaattiioonn::--

TThhee bbuuyyiinngg pprroocceessss ssttaarrttss wwhheenn tthhee bbuuyyeerr rreeccooggnniizzeess aa pprroobblleemm oorr nneeeedd.. TThhee nneeeedd ccaann bbee ttrriiggggeerreedd bbyy

iinntteerrnnaall oorr eexxtteerrnnaall ssttiimmuullii.. MMaarrkkeetteerrss nneeeedd ttoo iiddeennttiiffyy tthhee cciirrccuummssttaanncceess tthhaatt ttrriiggggeerr aa ppaarrttiiccuullaarr nneeeedd..

BByy ggaatthheerriinngg iinnffoorrmmaattiioonn ffrroomm aa nnuummbbeerr ooff ccoonnssuummeerrss,, MMaarrkkeetteerrss ccaann iiddeennttiiffyy tthhee mmoosstt ffrreeqquueenntt

ssttiimmuullii tthhaatt ssppaarrkk aann iinntteerreesstt iinn aa pprroodduucctt ccaatteeggoorryy.. TThheeyy ccaann tthheenn ddeevveelloopp mmaarrkkeettiinngg ssttrraatteeggiieess tthhaatt

ttrriiggggeerr ccoonnssuummeerr iinntteerreesstt..

22.. IInnffoorrmmaattiioonn SSeeaarrcchh::--

TThhee ccoonnssuummeerr ttrriieess ttoo ccoolllleecctt iinnffoorrmmaattiioonn rreeggaarrddiinngg vvaarriioouuss pprroodduuccttss//sseerrvviiccee.. TThhrroouugghh ggaatthheerriinngg

iinnffoorrmmaattiioonn,, tthhee ccoonnssuummeerr lleeaarrnnss aabboouutt ccoommpplleettiinngg bbrraannddss aanndd tthheeiirr ffeeaattuurreess.. IInnffoorrmmaattiioonn mmaayy bbee

ccoolllleecctteedd ffoorrmm mmaaggaazziinneess,, ccaattaalloogguueess,, rreettaaiilleerrss,, ffrriieennddss,, ffaammiillyy mmeemmbbeerrss,, bbuussiinneessss aassssoocciiaattiioonn,,

ccoommmmeerrcciiaall,, cchhaammbbeerr ooff ccoommmmeerrccee,, tteelleepphhoonnee ddiirreeccttoorryy,, ttrraaddeeffaaiirr eettcc.. MMaarrkkeetteerrss sshhoouulldd ffiinndd oouutt tthhee

ssoouurrccee ooff iinnffoorrmmaattiioonn aanndd tthheeiirr rreellaattiivvee ddeeggrreeee ooff iimmppoorrttaannccee ttoo tthhee ccoonnssuummeess..

PPeerrssoonnaall SSoouurrcceess:: FFaammiillyy,, ffrriieennddss,, nneeiigghhbboorr,, aass qquuiittttaanncceess..

CCoommmmeerrcciiaall SSoouurrccee:: AAddvveerrttiissiinngg,, ssaalleess ppeerrssoonnss,, ddeeaalleerrss,, ppaacckkaaggiinngg,, ddiissppllaayyss..

PPuubblliicc ssoouurrcceess:: mmaassss mmeeddiiaa,, ccoonnssuummeerr,, rraattiinngg oorrggaanniizzaattiioonnss..

32

EExxppeerriimmeennttaall ssoouurrcceess:: HHaannddlliinngg.. EExxaammiinnee,, uussiinngg tthhee pprroodduucctt..

33.. EEvvaalluuaattiioonn ooff aalltteerrnnaattiivvee::--

TThheerree iiss nnoo ssiinnggllee pprroocceessss uusseedd bbyy aallll ccoonnssuummeerrss bbyy oonnee ccoonnssuummeerr iinn aallll bbuuyyiinngg ssiittuuaattiioonnss.. TThheerree iiss

sseevveerraall FFiirrsstt,, tthhee ccoonnssuummeerr pprroocceesssseess,, ssoommee bbaassiicc ccoonncceeppttss aarree::

FFiirrsstt,, tthhee ccoonnssuummeerr iiss ttrryyiinngg ttoo ssaattiissffyy nneeeedd..

SSeeccoonndd,, tthhee ccoonnssuummeerr iiss llooookkiinngg ffoorr cceerrttaaiinn bbeenneeffiittss ffrroomm tthhee pprroodduucctt ssoolluuttiioonnss..

TThhee mmaarrkkeetteerr mmuusstt kknnooww wwhhiicchh ccrriitteerriiaa tthhee ccoonnssuummeerr wwiillll uussee iinn tthhee ppuurrcchhaassee ddeecciissiioonn..

44 .. CChhooiiccee ooff ppuurrcchhaassiinngg ddeecciissiioonn::--

FFrroomm aammoonngg tthhee ppuurrcchhaassee ooff aalltteerrnnaattiivveess tthhee ccoonnssuummeerr mmaakkeess tthhee ssoolluuttiioonn.. IItt mmaayy bbee ttoo bbuuyy oorr nnoott ttoo

bbuuyy.. IIff tthhee ddeecciissiioonn iiss ttoo bbuuyy.. TThhee ootthheerr aaddddiittiioonnaall ddeecciissiioonnss aarree::

WWhhiicchh ttyyppeess ooff bbiikkee hhee mmuusstt bbuuyy??

FFrroomm wwhhoomm ddoo yyoouu bbuuyy aa bbiikkee??

HHooww tthhee ppaayymmeenntt ttoo bbee mmaaddee?? AAnndd ssoo oonn..

TThhee mmaarrkkeetteerr uupp ttoo tthhiiss ssttaaggee hhaass ttrriieedd eevveerryy mmeeaannss ttoo iinnfflluueennccee tthhee ppuurrcchhaassee bbeehhaavviioorr,,

bbuutt tthhee cchhooiiccee iiss pprrooppeerrllyy ccoonnssuummeerrss.. IInn tthhee eevvaalluuaattiioonn ssttaaggee tthhee ccoonnssuummeerr ffoorrmmss pprreeffeerreenncceess aammoonngg

tthhee bbrraannddss iinn tthhee cchhooiiccee sseett.. TThhee ccoonnssuummeerr mmaayy aallssoo ffoorrmm aann iinntteennttiioonn ttoo bbuutt tthhee mmoosstt pprreeffeerrrreedd bbrraanndd..

33

55.. PPoosstt PPuurrcchhaassee BBeehhaavviioorr::--

AAfftteerr ppuurrcchhaassee tthhee pprroodduucctt,, tthhee ccoonnssuummeerr wwiillll eexxppeerriieennccee tthhee ssaammee lleevveell ooff pprroodduucctt.. TThhee MMaarrkkeetteerr‘‘ss

jjoobb nnoott eenndd wwhheenn tthhee pprroodduucctt iiss bbuuyyiinngg mmuusstt mmoonniittoorr ppoosstt--ppuurrcchhaassee ssaattiissffaaccttiioonn,, ppoosstt--ppuurrcchhaassee aaccttiioonn,,

ppoosstt--ppuurrcchhaassee uussee aanndd ddiissppoossaall

PPoosstt PPuurrcchhaassee SSaattiissffaaccttiioonn::--

TThhee ccuussttoommeerr,, ssaattiissffaaccttiioonn iiss aa ffuunnccttiioonn OOff cclloosseenneessss bbeettwweeeenn tthhee bbuuyyeerr,, eexxppeeccttaattiioonn aanndd tthhee

pprroodduuccttss PPeerrcceeiivveerr ppeerrffoorrmmaannccee.. TThhee llaarrggeerr tthhee ggaapp bbeettwweeeenn eexxppeeccttaattiioonn aanndd ppeerrffoorrmmaannccee,, tthhee

gg ggrreeaatteerr tthhee ccoonnssuummeerr ddiissssaattiissffaaccttiioonn..

PPoosstt ppuurrcchhaassee AAccttiioonn::--

TThhee CCoonnssuummeerr,, SS ssaattiissffaaccttiioonn oorr ddiissssaattiissffaaccttiioonn wwiitthh tthhee pprroodduucctt iinnfflluueennccee ssuubbsseeqquueenntt bbeehhaavviioorr.. IIff tthhee

ccoonnssuummeerr ssaattiissffiieedd,, hhee oorr sshhee wwiillll eexxhhiibbiitt aa hhiigghheerr pprroobbaabbiilliittyy ooff ppuurrcchhaassiinngg tthhee pprroodduucctt aaggaaiinn..

DDiissssaattiissffaaccttiioonn ccoonnssuummeerr mmaayy aabbaannddoonn aanndd rreettuurrnn tthhee pprroodduucctt..

PPoosstt--PPuurrcchhaassee UUssee oorr DDiissppoossaall::--

TThhee mmaarrkkeetteerr sshhoouulldd aallssoo mmoonniittoorr nneeww bbuuyyeerrss uussee aanndd ddiissppoossee ooff tthhee pprroodduucctt.. IIff tthhee ccoonnssuummeerr ssttoorree tthhee

pprroodduucctt iinn aa cclloossee,, tthhee pprroodduucctt iiss pprroobbaabbllyy nnoott vveerryy ssaattiissffyyiinngg.. IIff tthhee ccoonnssuummeerr tthhrroowwss tthhee pprroodduucctt

aawwaayy,, tthhee mmaarrkkeetteerr nneeeeddss ttoo kknnooww hhooww tthheeyy ddiissppoossee ooff iitt;; eessppeecciiaallllyy iitt ccaann bbee hhuurrtt tthhee eennvviirroonnmmeenntt..

34

CChhaarraacctteerriissttiicc ooff BBuuyyeerr BBeehhaavviioorrss

TThhee cchhiieeff cchhaarraacctteerriissttiiccss ooff tthhee bbuuyyeerrss bbeehhaavviioorrss aarree aass ffoollllooww::--

((11)) IItt ccoonnssiissttss ooff mmeennttaall aanndd pphhyyssiiccaall aaccttiivviittiieess wwhhiicchh ccoonnssuummeerrss uunnddeerrttaakkee ttoo ggeett ggooooddss aanndd sseerrvviicceess

aanndd oobbttaaiinn ssaattiissffaaccttiioonn ffrroomm tthheemm..

((22)) IItt iinncclluuddeess bbootthh oobbsseerrvvaabbllee aaccttiivviittiieess ssuucchh aass wwaallkkiinngg tthhrroouugghh tthhee mmaarrkkeett ttoo eexxaammiinnee mmeerrcchhaannddiissee

aanndd mmaakkiinngg aa ppuurrcchhaassee aanndd mmeennttaall aaccttiivviittiieess--ssuucchh aass ffoorrmmiinngg aattttiittuuddeess,, ppeerrcceeiivviinngg aaddvveerrttiissiinngg mmaatteerriiaall,,

aanndd lleeaarrnniinngg ttoo pprreeffeerr ppaarrttiiccuullaarr bbrraannddss..

((33)) CCoonnssuummeerr bbeehhaavviioorrss aarree vveerryy ccoommpplleexx aanndd ddyynnaammiicc ttoo ccoonnssttaannttllyy cchhaannggiinngg.. AAnndd tthheerreeffoorree,,

mmaannaaggeemmeenntt nneeeedd ttoo aaddjjuusstt wwiitthh tthhee cchhaannggee ootthheerrwwiissee mmaarrkkeett mmaayy bbee lloott..

((44)) TThhee iinnddiivviidduuaallss ssppeecciiffiicc bbeehhaavviioorrss iinn tthhee mmaarrkkeett ppllaaccee iiss aaffffeecctteedd bbyy iinntteerrnnaall ffaaccttoorr,, ssuucchh aass nneeeedd ,,

mmoottiivveess,, ppeerrcceeppttiioonn,, aanndd aattttiittuuddeess,, aass wweellll aass bbyy eexxtteerrnnaall ooff eennvviirroonnmmeennttaall iinnfflluueenncceess ssuucchh aass tthhee

ffaammiillyy ssoocciiaall ggrroouuppss,, ccuullttuurree,, eeccoonnoommiiccss aanndd bbuussiinneessss iinnfflluueenncceess..

35

SSttiimmuulluuss -- RReessppoonnssee mmooddeell ffoorr bbuuyyeerr bbeehhaavviioorr

36

CChhaapptteerr –– VV

RREESSEEAARRCCHH MMEETTHHOODDOOLLOOGGYY

37

Research design

A research design is the detailed blue print used to guide a research study towards its objectives. It

helps to collect, measure and analysis of data.

The present study seeks to find out the consumers attitude towards buying of bike. The study

also aims at findings out the drawbacks of the marketing set up of Hero Honda. So this makes the

study a descriptive one.

Type of Research

The study undertaken is of ―Descriptive Research‖ in nature.

Nature of Research

The study is ―quantitative‖ in nature.

It is structured, standardized, question based interview.

Types of Question

The types of question asked during the study are ―Straight forward and limited probing‖.

Total number of questions: 12

Total number of close ended questions: 10

Total number of open ended questions: 2

38

Sources of Data

Secondary Source

In this study the secondary data is collected from the following sources.

1. Company‘s website

2. Reports of Company

3. Discussion with marketing and sales staff

4. Books on Marketing and Research methodology

Primary Source

The Primary source of collecting data for research is:

Questionnaire filled by the customers of Supreme Auto.

Primary Data of Collection

Research Technique

In this study the ―survey method‖ is used as a research technique. This method helps to obtain right

information from respondents.

Contact Method

In this study ―Personal Exit interview‖ it is taken as a tool for the contact method. In which the

personal interview is conducted with customers of Westside.

39

Sampling plan

Sampling is a process of obtaining. The information about the entire population by examine a

part of it .The effectiveness of the research depends on the sample size selected for the survey purpose.

(A) Population:-

The survey was conducted in Chikhli city.

(B)Sampling Unit:-

It means ―Who is to be surveyed‖. Here target population is decided and it is who are

interested to purchase ―Bike‖ and sampling frame is developed so that everyone in the target

population has known chance of being sampled. So the survey is conducted particularly in Chikhli

city.

40

(C)Sample size:-

For the purpose of proper survey, there is need of perfect research instruments to find out

sample size for more accurate result about buying behavior of bike. The sample size is 100

respondents.

(D) Sample Element

The sample element of research is customer of Supreme Auto.

(E) Sample Extent

The sample extent is limited to Chikhli city.

(F) Sample Duration

The sample duration between June 2009 and July 2009

(G) Sampling Procedure

The sampling procedure followed is convenience.

Research Instrument

In this study the research instrument is ―Questionnaire‖. It consists of set of question presented to

respondents.

The questionnaire is structured & combinations of various close and open ended questions.

Close ended question already have the possible answers and the open ended question allow the

respondents to answer in their own word.

41

CChhaapptteerr –– VVII

DDaattaa AAnnaallyyssiiss aanndd IInntteerrpprreettaattiioonn

42

1. AGE WISE CLASSIFICTION

Data:

Age (in year) No. of respondents Percentage (%)

18-20 30 30

21-25 37 37

26-30 15 15

31-35 06 06

36-40 07 07

41& above 05 05

Total 100 100

Analysis:

Age wise Classification

30, 30%

37, 37%

15, 15%

6, 6%

7, 7% 5, 5%

18-20

21-25

26-30

31-35

36-40

41& above

Interpretation: Above Graph shows are 30% of respondent in age group of 18-20, 37%of respondent in

age group of 21-25, 15% of respondent in age group of 26-30, 7% and 5% respondent are come in 36-

40 and 41&above.

43

2. OCCUPATION WISE CLASSIFICATION

Data:

Analysis:

Interpretation:

Occupation No. of respondents Percentage (%)

Agriculture 47 47

Student 30 30

Business 12 12

Serviceman 08 08

Others 03 03

Total 100 100

44

Above Chart Shows that 47 respondent are belonging Agriculture occupation out of 100 and

30 are the students. 12 respondents are businessman.

3.

INCO

ME

WISE

CLAS

SIFIC

ATION

Data:

Analysis:

Income Level No. of respondents Percentage (%)

<= 5000 54 54

5000-10,000 25 25

10,000-15,000 11 11

15,000-20,000 07 07

20,000 Above 03 03

Total 100 100

45

Income Wise Classification

54, 54%

25, 25%

11, 11%

7, 7% 3, 3%

5000

5000-10,000

10,000-15,000

15,000-20,000

20,000 Above

Interpretation: Above graph shows that 54% of respondents are income in <=5000 income level,

Second 25% of respondents are of 5000-10,000 income level. 11% of respondents are of 10,000-

15,000, 7% of respondents are of 15,000-20,000 and remain 3% of respondents above 20,000 of

income level

4. SOURCES OF FINANCE

Data:

Analysis:

Sources of

Finance

By cash By loan Total

Agriculture 31 16 47

Student 11 17 30

Business 10 2 12

Profession 3 5 8

Others 1 2 3

Total 46 54 100

46

Interpretation: Above Graph shows that 54 people purchase Hero Honda Bike by Loan and 46 people

purchase Hero Honda Bike by Cash.

5. MEDIUM OF SOURCES

Data:

Analysis:

Sources No. of respondents Percentage (%)

News Paper 12 12

T.V.Advertisement 14 14

Friends 26 26

Others 48 48

Total 100 100

47

No. of respondents

News Paper, 12

Friends, 26

Others, 48

T.V.Advertiseme

nt, 14

Interpretation:

Above graph shows that 48 % respondents are come to know from the ‗other‘. Then 26 %

respondents are come to know from the ‗friends‘. 14 % & 12 % respondents are come to know from

the T.V.Advertisement & news paper.

6. View of customers about “Advertisements create more awareness of

Showroom”:

Data:

Response No. of respondents Percentage (%)

Yes 65 65

No 15 15

Can‘t Say 10 10

Analysis:

48

Interpretation:

Above graph shows that the majority of customers are agreed on the

advertisement creates more awareness of showroom and very few of customers are

disagreed.

7. AGE V/S USAGE OF COMPANIES MOTORCYCLE

Data:

Age (in

year)

Hero

Honda

Bajaj TVS Yamaha Honda Total

18-20 15 05 03 02 05 30

21-25 23 06 03 03 02 37

26-30 09 02 01 03 00 15

31-35 02 00 01 01 02 06

36-40 01 2 02 01 01 07

41& 01 01 00 02 01 05

49

above

Total 51 16 10 12 11 100

Analysis:

Age V/S Of Companies Motorcycles

0

5

10

15

20

25

Hero Honda Bajaj TVS Yamaha Honda

No

. O

f R

es

po

nd

en

ts

18-20

21-25

26-30

31-35

36-40

41& above

Interpretation: Above Charts shows that 51 respondents are using Hero Honda Company‘s Motorcycle.

And 16 respondents are using Bajaj bikes.

50

8. Who is decision maker for purchasing bike in your family?

Data:

Sources No. of respondents Percentage (%)

Father 46 46

Self 42 42

Mother 10 10

Others 02 02

Total 100 100

Analysis:

FatherSelf

MotherOthers

No. of respondents

Percentage (%)

46

42

10

2

46

42

10

20

10

20

30

40

50

Decision maker for purchasing bike

No. of respondents

Percentage (%)

Interpretation:

Above Graph shows that 46 % respondents take decision by father for purchasing

bike. And 42 % respondents are take decision by self for purchasing bike.

51

9. RATING OF HERO HONDA MOTORCYLE FEATURES

Data:

Weight age 6 5 4 3 2 1

Attributes Excellent Very

Good

Goo

d

Aver

age

Poor Very

Poor

Tot

al

Total

score

Price 30 20 18 16 10 06 100 426

Less

maintenanc

e

18 11 17 30 13 11 100 358

Style 21 18 19 10 11 21 100 355

Durability 10 17 16 24 21 12 100 335

Mileage 24 19 14 17 09 17 100 381

Easy

Driving

20 12 21 23 10 14 100 367

Brand

Reputation

17 19 14 21 17 12 100 362

Color 28 19 18 13 10 12 100 406

Pick up 19 22 15 20 14 10 100 382

Total 187 157 152 174 115 115 900 3370

52

Attributes Weight

age

Price 426

Less maintenance 358

Style 355

Durability 335

Mileage 381

Easy Driving 367

Brand Reputation 362

Color 406

Pick up 382

Total 3370

Analysis:

Feature of purchasing Bike

12%

11%

11%

10%

11%

11%

11%

12%

11% Price

Less maintenance

Style

Durability

Mileage

Easy Driving

Brand Reputation

Color

Pick up

Interpretation:

Above chart show that more no of respondents are give more weight age to the price and

color.

53

10. RATING OF SHOW ROOM ATTRIBUTES

Data:

Analysis:

Attributes Excellent Very

Good

Good Average Poor Total

Availability 30 24 18 16 12 100

After Sales

reponse

16 35 24 15 10 100

Knowledge

Of Sales man

20 21 23 20 16 100

Service 25 18 27 19 11 100

Infrastructure 12 29 20 17 22 100

Total 103 127 112 87 71 500

54

Interpretation:

Above chart shows that 30 respondents out of 100 give Weight age on availability is

excellent and second 35 respondents out of 100 give weight age on after sales response is Very Good,

23 respondents give weight age on Knowledge of salesman is good, 27 respondents give Weight age

on services is good, 29 respondents give weight age on Infrastructure is Very Good.

55

11. RATE THE FOLLOWING SCHEMES THAT ATTRACT YOU

MOST.

Data:

Analysis:

0 20 40 60 80 100

Festival Offer

Exchange Offer

Special Gift

Cash Discount

Anniversary Offer

Poor

Average

Good

Very Good

Excellent

Attributes Excellent Very

Good

Good Average Poor Total

Festival

Offer

43 21 12 14 10 100

Exchange

Offer

15 31 29 12 13 100

Special Gift 20 19 30 20 11 100

Cash

Discount

11 21 19 34 15 100

Anniversary

Offer

14 13 12 20 41 100

Total 103 105 102 100 90 500

56

Interpretation: Above graph shows that in festival offer 43 respondents out of 100 are give a excellent,

then in exchange offer 31 respondents out of 100 are give a very good rank, in special gift 30

respondents are give a good rank, in cash discount 34 respondents are give a average rank

57

12. RANKING OF ATTRIBUTES WHICH IMPORTANT IN

PURCHASING HERO HONDA BIKE

Data:

Analysis:

Interpretation:

Above graph show that respondents give more importance to the mileage then after they

give more importance to the price for purchasing motorcycle of Hero Honda. Respondents give poor

rating in availability of motorcycle as per their requirement and pickup attributes.

Attributes 1st 2nd 3rd 4th 5th Total

Mileage 31 26 15 18 10 100

Available 14 25 32 16 13 100

Price 22 16 42 11 09 100

Pick up 17 18 29 21 15 100

Color 20 24 26 10 20 100

Total 104 109 144 76 67 500

58

CChhaapptteerr –– VVIIII

FFiinnddiinnggss

59

Findings

In current market scenario, respondents give maximum no. of weight age to price

then after they consider mileage and colors respectively.

The study shows that more no. of respondents have connected as sources of income

from agriculture.

The study shows that 51 respondents are already user of Hero Honda motorcycle. So

Hero Honda is popular automobile company in study region.

The study show that 48 respondents are come to know from ―others‖ and 26

respondents are come to know from ―friends‖ about Hero Honda bike.

The study shows that 55 respondents are purchase Hero Honda bike by Loan and 45

respondents are purchase Hero Honda bike by cash.

The study shows that 31 respondents are give more points to mileage.

The study shows that 46 respondents‘ father take a decision to purchase bike And 42

respondents take a self decision to purchase bike.

The study shows that 30 respondents are give rank to availability of show rooms and

35 respondents are give rank to service.

The study shows that 43 respondents are giving excellent to festival offer and 41

respondents are give poor rank to the anniversary offer.

60

SUGGESTIONS

Hero Honda should introduce a low price (25000 to 30000) moped.

For the promotion, company makes road-show that will Increase the sales.

Hero Honda should increase in advertisements through t.v., newspapers.

The company should give more concentrate on the advertisement.

Hero Honda should expand the targeted market like introducing special scooter

for women and also considering rural market related offers.

Hero Honda should work on sports and pick up bikes.

61

CChhaapptteerr –– VVIIIIII

LLiimmiittaattiioonnss

62

Research work was carried out in Chikhli city of Gujarat only the finding may not be

applicable to the other parts of the country because of social and cultural differences.

The sample was collected using connivance-sampling techniques. As such result

may not give an exact representation of the population.

Shortage of time is also reason for incomprehensiveness.

The views of the people are biased therefore it may not be reflecting true picture.

63

AAppppeennddiixx

64

Questionnaire

CUSTOMER PERSONAL INFORMATION:-

A. Name: - ___________________________________________

B. Address:-___________________________________________

___________________________________________

___________________________________________

C. Contact No.:-__________________________________________

D. Gender: Male / Female

E. Age (in year):-

18 to 20 ( ) 21 to 25 ( )

26 to 30 ( ) 31 to 35 ( )

36 to 40 ( ) 41 & above ( )

F. Occupation:-

Agriculture ( ) Businessman ( )

Students ( ) Professional ( )

Others ( )

G. monthly income:-

5000 ( ) 5000-10,000 ( )

10,000-15,000 ( ) 15,000-20,000 ( )

20,000 Above ( )

65

A STUDY ON CUSTOMER BEHAVIOUR AND SATISFACTION

LEVEL FOR HERO HONDA MOTORCYCLE.

1 Do you have own bike?

(A) Yes ( ). (B) No ( )

If yes than,

2 Which company bike do you have at present?

Company ____________________

3 Which medium do you refer to purchasing bike?

(A) News paper ( ) (C) TV advertisement ( )

(B) Friends ( ) (D) others ( )

4 Do you think advertisements create more awareness of showroom and

bikes?

(A) Yes (B) NO (C) Can‘t Say

5 Who is decision maker for purchasing bike in your family?

(A) Father ( ) (B) Mother ( )

(B) Self ( ) (D) other ( )

6 How do you purchase bike?

(A) By cash ( ) (B) By Loan ( )

66

7 Give points to the given bellow features in Hero Honda motorcycle?

Attributes 6 5 4 3 2 1

Price

Less maintenance

Style

Durability

Mileage

Easy driving

Brand reputation

Color

8 Give rating the following attribute of show room

Attributes Excellent Very Good Good Average Poor

Availability

Knowledge

of Sales

person

After sales

response

Services

infrastructure

9 Give rating the following offers that attract you most.

Attributes Excellent Very Good Good Average Poor

Festival

offer

Exchange

offer

Special

gift

Cash

discount

67

10 Give the rank of given bellow features which consider at the time of

purchasing bikes on priority base.

Attributes 1st 2nd 3rd 4th

5th

Mileage

Available

Price

After service

Pick up

11 Do you properly understand of Passport scheme?

(A) Yes ( ) (B) No ( )

12 How do you find Passport Scheme?

(A) Excellent ( ) (B) Very Good ( )

(C) Good ( ) (D) Not Bad ( )

(E) Useless ( )

13 Give your suggestion if any:

______________________________________________________________

______________________________________________________________

_____________________________

Sign.___________________

Date.___________________

68

Form Provided from Dealer

69

BIBLIOGRAPHY

70

Books

Name

Author Edition Publication

Date of Referred

From To

Marketing

Research G.C.Beri 3rd

Tata Mc Graw

Hill Publishing

Company Ltd

1/06/09 25/06/09

Marketing

management

Philip

Kotler 12th

Prentice-Hall of

India Private

Ltd.,

10/06/09 15/07/09

Websites

Name Date of Surfing

From To

www.herohonda.com

1/07/09 30/07/09

www.nissparta.com

1/07/09 30/07/09

www.google.com

Magazines

Name Published Publication Date of Referred

From To

NIS Sparta (HERO HONDA) 2008-2009 NIS SPARTA 15/06/09 30/07/09