107174778 Perception of Rural People Towards Suv Cars
Transcript of 107174778 Perception of Rural People Towards Suv Cars
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INSTITUTE OF MANAGEMENT STUDIES
GHAZIABAD
A PROJECT REPORT ON
PERCEPTION OF RURAL PEOPLE TOWARDS, SUV
CARS
Submitted to: Submitted by:Seema mahato (BM-011191)Shikha choudhary(BM-011200)
Shriraj (BM-011209)
Dr. Urvashi Makkar Vibhor Garg (BM-011239)
Dean academics
Faculty, IMS Ghaziabad Sunil Kumar (BM011224)
Syed Khurram (BM011231)
Vishal jaiswal (BM011249)
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TABLE OF CONTENT
INTRODUCTION
SL NO. PARTICULARS PAGE
NO.
1. Introduction 3
2. Objective 6
3. Research Methodology 7
4. Finding Analysis 11
5. Conclusion 23
6. Bibliography 24
7. Case study 25
8. Annexure 27
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INTRODUCTION
Historically the Sport Utility Vehicle has been considered a mid-sized passenger
vehicle. It was designed to have the carrying capacity of a pick-up truck, but differ in size andperformance. Sport utility vehicles are descendents of the other sport vehicles such as
commercial vehicles and military vehicles including Jeep and the Land Rover. These vehicles
were followed by other sport utility vehicles.
Throughout history the design of the SUV has been changed. There are several
models of the SUV that are considered compact sport utility vehicles. This simply means that
they are smaller in size in some way. It could be that seats have been removed or the carrying
capacity or cargo space could be slightly smaller than the standard vehicle.
Indian car industry is crowded with a number of SUVs, the demand of which is gradually
increasing among car consumers. SUVs have come a long way from the traditional Jeep to
the stylish and high-tech Honda CR-V, Tata safari, Mahindra Scorpio and ford endeavor.
Sports Utility vehicles are rapidly capturing the market due to its multifarious use.
Utility vehicles are found in two kinds: - SUV or Sports Utility Vehicles and MUV or Multi
Utility Vehicles.
Its spacious interior and sturdy exterior have made this vehicle one of the fastest
selling vehicles of India. This is multi use vehicle to accommodate many passengers in one
vehicle, especially while going for a long trip with a big family or with a folk of friends.
Sporty attributes of this vehicle is not negligible when mentioning about its use. To name few
SUV manufacturers of India- Fiat India, Ford Motors, Force Motors, General Motors,
Hyundai Motors, Hindustan Motors, Mahindra & Mahindra, Nissan, Porsche, Tata Motors,
Toyota motors etc.
In the north, sales of high-end cars are picking up in places such as Karnal, Hoshiarpur,
Bhatinda and Patiala, and in the south, the backwaters of Kerala and rural areas of Karnataka
is turning out to be an attractive destination for manufacturers.
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Companies such as Honda, Hindustan Motors, GM and Ford are a bullish about these rural
hotspots and are expanding their presence in these areas by increasing the number of
dealerships and marketing activities. This apart, the trend also reveals that among the number
of vehicles sold, SUVs garner a considerable chunk of the market.
According to Taipan Traders, authorised dealer of Mercedes Benz from Karnal up to northern
territory, MD Manjit Singh Bala, there has been a jump of 35 to 50% in sales of high-end cars
and SUVs in the last two years. "While driving on our type of roads, the brand name and
safety put the Merc above the rest. We are getting around 60 queries daily.
Even the Honda CR-V is basking in all the rural attention it is getting. "Apart from our main
markets in metros, we believe that there is strong growth potential in the tier II cities andtowns. We are increasingly focusing on these cities and setting up new dealerships there," a
Honda Siel spokesperson told Sunday ET.
The demand for vehicles like Scorpio rising at a faster pace in (areas such as) Lakhimpur
Kheri (Uttar Pradesh) and Muzaffarpur (Bihar), said Arun Malhotra, senior vice-president,
sales and customer care.
Mahindra sells at least 150 Scorpios every month in Bihar, he said. The enquiries for the
XUV 500, its new sports utility vehicle, are just not stopping. This is despite us telling the
buyers that Bihar would only get deliveries of this vehicle once Mahindra reopens bookings,
he said. The officials of the company said that they did not anticipate this kind of demand
for XUV from states like Bihar and Jharkhand. We are not happy with this fact. We are trying
to meet demand by increasing capacity at our plant. They said.
Aspirations are rising in the villages and smaller towns, said Pradeep Lokhande of Rural
Relations, a consumer rural relations organization.
After a colour television, a vehicle is the next big-ticket item on their shopping list, he said.
This has been further helped by the easy availability of finance.
According to Taipan Traders, authorised dealer of Mercedes Benz from Karnal up to northern
territory, MD Manjit Singh Bala, there has been a jump of 35 to 50% in sales of high-end cars
and SUVs in the last two years. "While driving on our type of roads, the brand name and
safety put the Merc above the rest. We are getting around 60 queries daily.
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Reasons for the rising demand of SUVs cars in rural India:-
First, disposable incomes in rural areas are rising, backed by a better-than-expected
monsoon and a healthy harvest. Moreover, Pals points to massive irrigation projects
that have resulted in rural areas being much less dependent on the monsoon than in
the past.
Meanwhile, schemes such as the National Rural Employment Guarantee Act
(NREGA) and increased minimum support price (MSPs) have also boosted rural
incomes. All this is feeding through into increased demand for consumer durables.
Another reason for this is that with the real estate boom in the country which is
fetching handsome prices for land, farmers in many areas have shown interest in
buying big cars or SUVs," adds Mr Bala.
Government rural infrastructure programmes such as the Pradhan Mantri Gram Sadak
Yojana have spawned several small contractors who are among the major buyers of
utility vehicles, Lokhande said.
The real growth is happening (in utility vehicles) because of the governments road
development programmes. Such programmes have a huge multiplier effect, said
Mahantesh Sabarad, senior vice-president (equity) at Fortune Equity Brokers (India)
Ltd.
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OBJECTIVES OF THE STUDY
The research objectives for the report undertaken can be defined as follows:
To find various factors which determine the consumer perception toward SUV cars.
To study perception of consumers towards the SUV cars.
To judge the satisfaction level of suv car owners.
Finally recommend how we can improve the perception of people towards suv cars.
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CHAPTER2 : RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of action steps, necessary
to effectively carry out research and the desired sequencing to these steps. The marketingresearch is a process of involvesa no. of inter-
related activities, which overlap and do rigidly follow a particular sequence. It consists of the
following steps:-
RESEARCH DESIGN:-
Research design specifies the methods and procedures for conducting
a particular study. A research design is the arrangement of conditions for collection andanalys
is of the data in a manner that aims to combine relevance to their search purpose with
economy in procedure. Research design is broadly classified into three types as:-
Exploratory Research Design
Descriptive Research Design
Causal Research Design
We have chosen the descriptive research design.
DESCRIPTIVE RESEARCH DESIGN:-
Descriptive research studies are those studies which are concerned with described the
characteristics of particular individual. In descriptive as well as in diagnostic studies, the
researcher must be
ableto define clearly, what he wants to measure and must find adequatemethods for
measuring it along with a clear cut definition of populationhewant to study. Since the aim is to obtain complete and accurateinformation in the said
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studies, the procedure to be used must be carefully planned. The research design must make
enough provision
for protectionagainst bias and must maximize reliability, with due concern for theeconomical
completion of the research study.
SAMPLE DESIGN
A Sample Design is a definite plan for obtaining a sample from a given population. It refers
to the technique to the procedure adopted in selecting items for the sampling designs are as
below:
(a) Sample Size-: 50 customers
SAMPLING TECHNIQUE
RANDOM SAMPLING:
A random sample gives every unit of the population a known and non-
zero probability of being selected. Since random sampling implies equal probability to every
unit in the population, it is necessary that theselection of the sample must be free from human
judgment. There is some confusion between the two terms random sampling
andunrestricted random sampling. In the latter case, each unit in the population has an equal
chance of being selected in the sample. Such as ample is drawn with replacement, which
means that the unit selected at each draw is replaced into the population before another draw
is made from it, As such, a unit can be included more than once in the sample
Most statically theory relates to unrestricted random sampling. In order to distinguish
between these two samples. I.e. sample, without replacement and sample with replacement,
the terms sample random sample and unrestricted random sample are used. If the latter is
devised in such a manner that no unit can be included more than once, it will then be known
as the simple random sampling. It may be noted that while both sample random sampling and
unrestricted random sampling give an equal probability to each unit of the population for
being included in the sample, there are other sample design too which provide equal
probability to the units. The process of randomness is the very core of simple and unrestricted
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Dichotomous questions
Multiple choice questions
These types of questions are easy to understand and easy to give required answers.
SECONDARY DATA
Secondary data means data that are already available i.e. they refer the data which have
already been collected and analyzed by someone else. When the researcher utilizes secondary
data, than he has to look into various sources from where
h e can obtain them, in this case he is certainly not confronted with the problems that are
usually associated with the Collection of original data.
Secondary data may either be published data or unpublished data. Usually published data are
available in:
Various publications ofthe central, state and local government;
Various publications of foreign government or of international bodies and their subsidiary
organizational;
Technical and trade journals;
Books, magazines and newspapers;
Reports and publications of various associationsconnected withbusiness san industry, stock
exchanges etc.;
Reports prepared by research scholars, universities, economists etc.;
Public records and statistics, historical document and other source of published information
The source of unpublished data are many; they may be found in diaries, letters, Unpublished
Biographies and autobiographies and also may Beavailable with scholars and research worke
rs, trade associations, labor because and other public private individuals and organization.
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CHAPTER-3 : FINDINGS AND ANALYSIS
= No Correlation Exist between Income and SUV
= Correlation Exists between Income and SUV
Correlations
Descriptive Statistics
Mean Std. Deviation N
Income 2.64 .964 50
SUV 2.30 1.182 50
Correlations
Income SUV
Income Pearson Correlation 1 -.279*
Sig. (2-tailed) .049
Sum of Squares and Cross-products 45.520 -15.600
Covariance .929 -.318
N 50 50
SUV Pearson Correlation -.279*
1
Sig. (2-tailed) .049
Sum of Squares and Cross-products -15.600 68.500
Covariance -.318 1.398
N 50 50
*. Correlation is significant at the 0.05 level (2-tailed).
Value of at 5% significance level is .049.I.e less then.05 so we reject the so, there is
Correlation Exist between Income and SUV.
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Correlations
= No Correlation Exist between Income and Brand.
= Correlation Exists between Income and Brand.
Descriptive Statistics
Mean Std. Deviation N
Income 2.64 .964 50
BRAND 3.00 1.069 50
Correlations
Income BRAND
Income Pearson Correlation 1 .059
Sig. (2-tailed) .682
Sum of Squares and Cross-products 45.520 3.000
Covariance .929 .061
N 50 50
BRAND Pearson Correlation .059 1
Sig. (2-tailed) .682
Sum of Squares and Cross-products 3.000 56.000
Covariance .061 1.143
N 50 50
Value of at 5% significance level is .682.I.e more then.05 so we Accept the so, there is
no Correlation Exist between Income and Brand.
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Correlations
= No Correlation Exist between Brand and Age.
= Correlation Exists between Brand and age.
Descriptive Statistics
Mean Std. Deviation N
BRAND 3.00 1.069 50
Age 2.56 .907 50
Correlations
BRAND Age
BRAND Pearson Correlation 1 .189
Sig. (2-tailed) .188
Sum of Squares and Cross-products 56.000 9.000
Covariance 1.143 .184
N 50 50
Age Pearson Correlation .189 1
Sig. (2-tailed) .188
Sum of Squares and Cross-products 9.000 40.320
Covariance .184 .823
N 50 50
Value of at 5% significance level is .189.I.e more then.05 so we Accept the so, there is
no Correlation Exist between Brand and Age.
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Correlations
= No Correlation Exist between Brand and SUV.
= Correlation Exists between Brand and SUV.
Descriptive Statistics
Mean Std. Deviation N
BRAND 3.00 1.069 50
SUV 2.30 1.182 50
Correlations
BRAND SUV
BRAND Pearson Correlation 1 .145
Sig. (2-tailed) .314
Sum of Squares and Cross-products 56.000 9.000
Covariance 1.143 .184
N 50 50
SUV Pearson Correlation .145 1
Sig. (2-tailed) .314
Sum of Squares and Cross-products 9.000 68.500
Covariance .184 1.398
N 50 50
Value of at 5% significance level is ..314 i.e more then.05 so we Accept the so, there
is no Correlation Exist between Brand and SUV.
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Correlations
= No Correlation Exist between Income and Fuel.= Correlation Exists between Income and Fuel.
Descriptive Statistics
Mean Std. Deviation N
Income 2.64 .964 50
FUEL 3.90 .647 50
Correlations
Income FUEL
Income Pearson Correlation 1 -.092
Sig. (2-tailed) .527
Sum of Squares and Cross-products 45.520 -2.800
Covariance .929 -.057
N 50 50
FUEL Pearson Correlation -.092 1
Sig. (2-tailed) .527
Sum of Squares and Cross-products -2.800 20.500
Covariance -.057 .418
N 50 50
Value of at 5% significance level is .527 I.e more then.05 so we Accept the so, there is
no Correlation Exist between Income and Fuel.
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Nonparametric Correlations
Correlations
Income FUEL
Spearman's rho Income Correlation Coefficient 1.000 -.095
Sig. (2-tailed) . .512
N 50 50
FUEL Correlation Coefficient -.095 1.000
Sig. (2-tailed) .512 .
N 50 50
Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .447
Bartlett's Test of Sphericity Approx. Chi-Square 24.925
df 21
Sig. .250
Communalities
Initial Extraction
Age 1.000 .591
Income 1.000 .618
Occupation 1.000 .401
Gender 1.000 .757
SUV 1.000 .477
BRAND 1.000 .865
FUEL 1.000 .337
Extraction Method: Principal Component Analysis.
Total Variance Explained
Component
Initial Eigenvalues Extraction Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative % Total
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1 1.684 24.052 24.052 1.684 24.052 24.052 1.
2 1.248 17.834 41.885 1.248 17.834 41.885 1.
3 1.113 15.903 57.789 1.113 15.903 57.789 1.1
4 .974 13.908 71.697
5 .914 13.062 84.759
6 .610 8.712 93.471
7 .457 6.529 100.000
Extraction Method: Principal Component Analysis.
Component Matrixa
Component
1 2 3
Age .679 .240 .269
Income .672 -.324 .249
Occupation .545 .102 -.305
Gender -.183 -.724 .447
SUV -.638 .098 .247
BRAND .054 .492 .787
FUEL -.177 .548 -.075
Extraction Method: Principal Component Analysis.
a. 3 components extracted.
Rotated Component Matrixa
Component
1 2 3
Age .588 -.004 .495
Income .572 .490 .223
Occupation .609 -.144 -.094
Gender -.314 .811 .022
SUV -.678 -.073 .112
BRAND -.145 -.098 .913
FUEL -.137 -.547 .140
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Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
Component Transformation Matrix
Component 1 2 3
1 .963 .142 .228
2 .026 -.894 .446
3 -.267 .424 .865
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
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BAR CHARTS
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CHAPTER-4: CONCLUSION
To conclude, the results show that the companies are playing on the peripheral cues to
maintain their Total Relationship Management and connect to the customers both present and
potential. The companies are operating in a highly aggressive and competitive global market
place and this climate has led to the emphasis on quality in all aspects. TQM focuses on
integration and coordination as well as the continuous improvement of all activities and
processes. Total Relationship Management (TRM) is a very recent marketing strategy and
philosophy. It focuses on and is concerned with all integrated internal and external activities
within and between the organizations. These two terms are integrated by the manufacturers
by building good quality products and building good relationship with dealers and enhancing
service levels.
However, when studied from the point of view of a customer there seems to be no major
difference among the car brands in a segment as far as performance is concerned. The brand
perception is dependant mostly on the peripheral cues depending upon the nature and quality
of the service provided along with the pricing, maintenance, availability of spare parts andrelated issues.
So, a question arises here that is this the end of road for the branding of cars? Has the
commoditization of cars has started and its time that manufacturers must read the writing on
the wall? It seems so! It seems as an undercurrent sentiment is flowing and the perception of
the customers is changing according to it. So this might be the reason that despite Verna
faring so high on the performance parameters still lags on the account of converted sales. The
study shows that brand perception is something which starts building up before a car is
purchased and goes on with its use and is reflected in the recommendations the customer
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makes to his acquaintances for the same car. Also, its seen that the customer might not be
using the car still he holds the perceptions about it. Brand personality of a car is enforced by
the sellers in the mindsets of the customers and the customers react to it by forming their
perceptions about the car and this reflects in the overall brand image of the car.
So brand image and brand personality complement each other and the brand perception aids
the building of brand image. Dealers, as per the study findings, play a very important role in
building up the brand perception of the cars. Since dealers are the connecting link between
the customers and the manufacturers thus becoming the most important link in joining the
company to its customers as he is the person who will sell the product, will deliver it and will
keep on providing the after sales services to the customers as and when required. So, it
becomes necessary automatically to study dealer as a part of customers satisfaction journey
with the product called car! Their proximity to the customers, the service provided by them
and the relationship maintained by them with the customers helps the car companies to
establish and reinstate the brand personality communicated by them to the customers.
Finally the major point that emerges out of this detailed study is a caution for the car
companies ,what are the dos and what are the donts ?ultimately, how to increase
passenger car sales?, the answer lies within this result of this research.
It says that there is no doubt that Indian car market may be growing with a double digit
figure still the car companies have a long way to travel to convince their customers about the
brand personality of their cars and how it suits the prospective buyers. Simply because it
simply is not a guarantee that how so ever good the customer might be holding the brand
perception and how so ever good the brand image may be it is not a guarantee that it will
convert into sale. Cars just like clothes and accessories suit the style and persona of a person
and since all cars will become commodity someday the key to sell and excel in the market
will lie with a person who knows how to use the perceptions of the customers to its use and
sell the cars coz ultimately only that car survives which sell.
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Case study
Scorpio the Making of India's First Indigenous Sports Utility Vehicle
M&M was set up in 1945 to manufacture general-purpose utility vehicles for the Indian
market. The company soon diversified into the manufacture of tractors for agriculture and
light commercial vehicles (LCVs). Over the decades, M&M diversified into other businesses
through alliances and joint ventures with Indian as well as foreign companies, and secured a
significant presence in many major business sectors in India and abroad.
By the early 1990s, M&M was a global conglomerate with a presence in many sectors
including automobiles, farm equipment, trade and finance related services, information
technology, and infrastructure development.
In 1994, the M&M Group embarked on an organizational restructuring exercise arising from
a Business Process Reengineering program. The result of this was that all the divisions of the
Group were spun off as separate entities, with the exception of the Farm Equipment and
Automotive Divisions, which remained with M&M.
M&M's Farm Equipment Division made tractors and other farm implements. The Division
also diversified into manufacturing industrial engines in 2003. In the same year, it became the
first tractor company in the world to receive the prestigious Deming Application Prize.
(Awarded by the Union of Japanese Scientists and Engineers (JUSE), this prize was
considered the equivalent of the Nobel Prize in the area of Quality Management). The
Automobile Division traced its roots back to the 1950s, when the company began offering a
multi utility vehicle (MUV) under the 'Jeep' brand in India, in collaboration with Willys
Overland Corporation, American Motors Corporation, and Kaiser Jeep Corporation, all based
in the US.
In 1965, the company began manufacturing LCVs in collaboration with Rubery Owen, UK.
Although M&M received an initial impetus from its foreign collaborations, it was stronglyfocused on developing its own manufacturing facilities and capabilities and it began
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manufacturing vehicles indigenously by the end of the 1960s. (By the late 1990s, M&M had
ISO-9002 certified manufacturing plants at Mumbai, Nashik and Igatpuri (all in Maharashtra)
and Zaheerabad (in Andhra Pradesh).)
M&M's Jeeps were immensely successful and the company's vehicles came to be identified
with high quality, reliability, durability, ruggedness, easy maintenance, and operational
economy in the Utility Vehicle (UV) market...
In November 2003, Mahindra and Mahindra (M&M), a major automobile and farm
equipment manufacturer, became the second auto company in India to receive the prestigious
National Award for Research and Development. The award was given in recognition of its
achievement in manufacturing India's first indigenously developed Sports Utility Vehicle
(SUV), 'Scorpio'. The award was presented by the Department of Scientific and Industrial
Research, under the Government of India's Ministry of Science and Technology. Several
parameters, like financial inputs, scientific and technological advancement of the project,
status of in-house Research & Development, environmental consciousness, and use of
imported technology, were applied in judging the winner.
The National Award was just one of the major awards that came Scorpio's way since it was
launched in mid-2002. Within a year of its launch, the vehicle also won the 'Car of the Year'
award from Business Standard Motoring, the 'Best SUV of the Year' by BBC Wheels and the
'Best Car of the Year', also from BBC Wheels.
In addition, it was also the winner of CNBC and Auto Car's 'Car of the Year 2003' award
(generally considered to be the Oscars of the Indian automobile industry), and the 'Product
Launch of the Year' award given by the Business Standard Brand Derby. "Scorpio is the
result of extensive R&D, right from concept to commercial production," said Anand
Mahindra (Mahindra), vice chairman and MD of M&M.
Analysts said the main reason for Scorpio's remarkable success in the Indian automobile
market was that it catered to a previously neglected niche. Scorpio fell between a passenger
car and an SUV.
While it was designed as and looked like an SUV (with its sporty looks and sturdy design), it
also offered all the comfort and elegance of a passenger car. Therefore, Scorpio's target
market straddled both passenger car buyers as well as SUV fans.
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CHAPTER-6 ANNEXURE
QUESTIONNAIRE ON CONSUMER PERCEPTION FOR SUV
SEGMENT
(Scaled Questionnaire)
1. Name:-
2. Age: - 18-25 25-40 40-55 55 above
3. Gender: - Male Female
4. Occupation:-
Business Professional Employee Student
Others
5. Annual Income:
Less than 3 lakh 3-5 lakhs 5-7 lakh 7-10 lakhs
10 lakh &above
7. In sports utility vehicles which brand do you prefer ?
Mahindra Ford TaTa
Force Honda
8. Why you bought suv cars?.
Increase in disposable income Better safety at rough roads
Comfort Increase in family size Suits your lifestyle and
personality
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9. Please rate your existing car in terms of understated Interior Design features
on a scale of 1 to 5(Where 1 = Highly Dissatisfied, 2 = Dissatisfied, 3 =
Neutral, 4 = Satisfied,
5 = Highly Satisfied
1 2 3 4 5
10. Please rate your existing car in terms of understated Safety features on a
scale of 1 to 5
Safety Parameters 1 2 3 4 5
Crossbar under Dashboard
Air Bags
Anti-Lock Breaking System
Aerodynamic Shape
Intensity of front lights
11 .Please rate your existing car in terms of following parameters
Parameter 1 2 3 4 5
Fuel Consumption
Pick Up
Stability at higher speed
Top speed
Mileage ( Km/ltr)
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12. What is your opinion on the performance Of SUV Cars?
Excellent Good Satisfactory Poor
13. do you think Suv cars are perfect for the rural area ?
YES NO