A

SUMMER INTERNSHIP PROJECTON

“A Study on Customer Preference and Satisfaction towards Bajaj Bikes”

Submitted to

S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

In

Gujarat Technological UniversityUNDER THE GUIDANCE OF

Faculty Guide: Company Guide:

Ms. Esha Pandya Mr. Shoban Mulla

Asst. Professor Branch Manager

(Shivam Bajaj)

Submitted byMr. Ajay B. Savaliya [Batch No. 2014-16, Enrollment No.147500592100]

MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT – 750MBA PROGRAMME

Affiliated to Gujarat Technological University

Ahmedabad

August, 2015

1

Company Certificate

This is to certify that Mr. Ajay B. Savaliya from S.R. LUTHRA INSTITUTE OF

MANAGEMENT, have carried out the research on the subject titled “A study on

Customer Preference and Satisfaction towards Bajaj Bikes” at Shivam Bajaj

under the supervision of Mr. Shoban Mulla, from June 2015 to August, 2015. I

also certify that, the above mentioned student has carried the research work

satisfactorily.

Place: - Surat

Date: - ____________

________________

Mr. Shoban Mulla

(Branch Manager)

2

Student’s Declaration

I, Mr. Ajay B. Savaliya, hereby declare that the report for Summer Internship

Project entitled “A study on Customer preference and Satisfaction towards Bajaj

Bikes” is a result of my own work and my indebtedness to other work

publications, references, if any, have been duly acknowledged.

Place: Surat

Date: _____________

__________________

(Ajay B. Savaliya)

3

Institute’s Certificate

Certified that this Summer Internship Project Report Titled “A study on Customer

Preference and Satisfaction towards Bajaj Bikes” is the bonafide work of Mr. Ajay

B. Savaliya (Enrollment No. 147500592100), who has carried out the research

under my supervision. I also certify further, that to the best of my knowledge the

work reported herein does not form part of any other project report or dissertation

on the basis of which a degree or award was conferred on an earlier occasion on

this or any other candidate.

Place: Surat

Date: ________________

___________________

(Esha Pandya)

Asst. Professor

___________________

(J. M. Kapadia)

Director

4

Preface

In today’s intensely competitive environment, companies today are constantly

looking for ways to attract customers by having a better understanding of

changing customer preferences. So, I do this particular research to know about

customer preference and satisfaction towards Bajaj bikes in Surat city those who

use Bajaj bikes.

I have tried my level best to do the proper justification with my work in this

project. I do this research to know which is/are the influencing factors for

purchasing Bajaj bikes.

The time period for conducting the report is starting from 8 th June, 2015 to 18th

July, 2015. I have taken primary and secondary data whereas primary data

throughout questionnaire to study the report.

I have applied Pearson Chi-square test for estimating the customer preference

and satisfaction towards Bajaj bikes.

5

Acknowledgement

I am very thankful to Gujarat Technological University because they contain

training as an essential part of M.B.A. course & make it compulsorily to each &

every student.

I would like to express my sincere thanks and gratitude to our beloved principal

Dr. Jimmy Kapadia (Director) and Ms. Esha Pandya (Assistant Professor) for

giving innovative ideas, constant help, and encouragement too this project work

& give me better support in the industrial training without whom it would be very

difficult for me to completing this report.

I am highly indebted to Mr. Shoban Mulla (Branch Manager, Shivam Bajaj, Surat)

for their guidance and constant supervision as well as for providing necessary

information regarding the project & also for their support in completing the report.

I would like to express my gratitude towards my parents & member of Shivam

Bajaj for their kind co-operation and encouragement which help me in completion

of this report.

I would like to express my special gratitude and thanks to industry persons for

giving me such attention and time. My thanks and appreciations also go to my

colleague in developing the project and people who have willingly helped me out

with their abilities.

6

Executive Summary

I have selected topic for my project is “A study in Customer Preference and

Satisfaction towards Bajaj bikes”. I have completed my training at Shivam Bajaj,

Surat. In two-wheeler automobile industry Hero MotoCorp have a highest market

share. The global two-wheeler manufacturing industry grew by 3.3% in 2013.

India is the second largest manufacturer and producer of two-wheelers in the

world. Major players of two-wheeler industry are Hero, Honda, Suzuki, Bajaj,

TVS, Yamaha, and Royal Enfield etc.

The objective of my research is which is/are the most attractive attributes for

purchasing Bajaj bikes; and study the level of satisfaction the same. I have taken

200 samples for the survey. Type of design is descriptive research design; data

collection throughout questionnaire; and sampling method for the study is a non-

probability convenience sampling.

For the tools of data analysis I have used SPSS which analyze data to Pearson

Chi-square for finding there is association between two variables; also prepare a

frequency table for the same. I have used Microsoft Excel for prepare a

frequency charts.

Majority of the customer prefer Bajaj bike on the basis of price, mileage,

maintenance cost, and engine capacity attributes. More than 50% of the

respondents are satisfied with the price and engine capacity. More no. of

respondents has dissatisfied with the resale value and after sales services of

Bajaj. As per survey Hero is a 1st rank and Bajaj is a 3rd rank. There is no

association between customer income and mileage attribute of bike; and

customer occupation and brand image. There is association between customer

age and look & style of Bajaj bikes.

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TABLE OF CONTENTS

o Company’s Certificate

o Student’s’ Declaration

o Institute’s Certificate

o Preface

o Acknowledgement

o Executive Summary

Sr. No.

Particulars Page No.

1. Introduction 12. Industry Profile 5

a. Global

b. National

c. State

d. PESTEL

e. Current trends

f. Major Players

g. Major Offerings

5

8

12

13

16

18

19

3. Company Profile 20a. Company Profile

b. Organogram

c. Divisions/ Departments

d. SWOT

e. Market Position

22

32

33

34

35

4. Review of Literature 365. Research Methodology 43

a. Problem Statement 4

8

b. Research Objective

c. Research Design

i. Type of Design

ii. Types of Data

iii. Instruments for Data Collections

iv. Sample Population

v. Sample Area

vi. Sample Size

vii. Sampling Method

viii. Tools for Analysis

ix. Limitations of the Study

3

4

4

4

5

4

5

4

5

4

5

4

5

4

5

4

5

4

5

4

5

4

5

6. Data Analysis and Interpretation 467. Finding and Conclusion 83

a. Findings

b. Conclusion

83

85

8. Bibliography 869. Annexure 87

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LIST OF TABLES

Sr. No. ParticularsTable No.

Page No.

1 February sales and growth of two-wheeler 2.1 10

2 Age 6.1 46

3 Occupation 6.2 47

4 Education 6.3 48

5 Monthly income 6.4 49

6 Know about Bajaj bikes 6.5 50

7 Models of Bajaj 6.6 51

8 Most attractive attributes of Bajaj 6.7 53

9 Comparing between other bikes 6.8 55

10 Customer satisfaction towards price 6.9 56

11 Customer satisfaction towards mileage 6.10 57

12 Customer satisfaction towards look & style 6.11 58

10

13 Customer satisfaction towards pickup 6.12 59

14 Customer satisfaction towards engine capacity 6.13 60

15 Customer satisfaction towards colors 6.14 61

16 Customer satisfaction towards maintenance cost 6.15 62

17 Customer satisfaction towards brand image 6.16 63

18 Customer satisfaction towards resale value 6.17 64

19 Customer satisfaction towards comfortable ride 6.18 65

20 Customer satisfaction towards after sales services 6.19 66

21 Rank 6.20 67

22 Problem facing by user of Bajaj 6.21 69

23 Recommended Bajaj bikes to friends or others 6.22 70

24 Monthly income * Mileage Attribute Cross tabulation 6.23 71

25 Chi-Square Test between Mileage attribute and

Monthly income6.24 72

26 Satisfaction towards Price * Monthly income Cross

tabulation6.25 73

27 Chi-Square Test between customer satisfaction

towards price and Monthly income6.26 74

28 Satisfaction towards Comfortable ride * Occupation

Cross tabulation6.27 75

29 Chi-Square between Satisfaction towards

Comfortable ride and Occupation6.28 76

30 Satisfaction towards Look & style * Age(in Years)

Cross tabulation6.29 77

31 Chi-Square between Satisfaction towards Look &

style and Age(in Years)6.30 78

32 Satisfaction towards Brand image * Occupation 6.31 79

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Cross tabulation

33 Chi-Square between Satisfaction towards Brand

image and Occupation6.32 80

34 Education * Maintenance cost Attribute Cross

tabulation6.33 81

35 Chi-Square between Education and Maintenance

cost Attribute6.34 82

LIST OF FIGURES

Sr. No. ParticularsFigure

No.Page No.

1 February Sales 2.1 10

2 Current trends 2.2 16

3 Segment wise two-wheeler Market share 2.3 17

4 Age 6.1 46

5 Occupation 6.2 47

6 Education 6.3 48

7 Monthly income 6.4 49

8 Know about Bajaj bikes 6.5 50

9 Model of Bajaj bikes 6.6 52

10 Most attractive attributes of Bajaj 6.7 54

11 Comparing between other bikes 6.8 55

12 Customer satisfaction towards price 6.9 56

13 Customer satisfaction towards mileage 6.10 57

12

14 Customer satisfaction towards look & style 6.11 58

15 Customer satisfaction towards pickup 6.12 59

16 Customer satisfaction towards engine capacity 6.13 60

17 Customer satisfaction towards colors 6.14 61

18 Customer satisfaction towards maintenance cost 6.15 62

19 Customer satisfaction towards brand image 6.16 63

20 Customer satisfaction towards resale value 6.17 64

21 Customer satisfaction towards comfortable ride 6.18 65

22 Customer satisfaction towards after sales services 6.19 66

23 Rank 6.20 67

24 Problem facing by user of Bajaj 6.21 69

25 Recommended Bajaj bikes to friends or others 6.22 70

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INTRODUCTION

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Introduction of Customer Preference and Satisfaction

Who is Customer?

A customer (sometimes known as a client, buyer, or purchaser) is the recipient of

a good, service, product, or idea, obtained from a seller, vendor, or supplier for a

monetary or other consideration. Customers are generally categorized into two

types:

An intermediate customer or trade customer who is a dealer that

purchases goods for re-sale.

An ultimate customer who does not in turn re-sell the things bought but

either passes them to the consumer or actually is the consumer.

A customer may or may not also be a consumer, but the two notions are distinct,

even though the terms are commonly confused. A customer purchases goods; a

consumer uses them. An ultimate customer may be a consumer as well, but just

as equally may have purchased items for someone else to consume. An

intermediate consumer is not a consumer at all.

What is Preference?

15

Preference refers to certain characteristics any consumer wants to have in a

good or service to make it preferable to him. This could be the level of happiness,

degree of satisfaction, utility from the product, etc…

Preferences are the main factors that influence consumer demand. Economists

study preferences to perceive the demand for each commodity and the future

implications it may cause.

What is Customer Preference?

Customer preference is used primarily to mean to select an option that has the

greatest anticipated value among a number of options by the consumer in order

to satisfy his/her needs or desires. Preferences indicate choices among neutral

or more valued options available. The preference of the consumer is the result of

their behavior they show during searching, purchasing and disposing the

products.

Consumer preferences are defined as the subjective (individual) tastes, as

measures by utility, of various bundles of goods. They permit the consumer to

rank these bundles of goods according to the level of utility they give the

consumer. Note that preferences are independent of income and pieces. Ability

to purchase goods does not determine a consumer’s likes or dislikes. One can

have a preference for Porsches over Fords but only have the financial means to

drive a Ford.

Tailor marketing strategies to customer preferences

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To make communications relevant, marketers need information about each

customer's preferences and interests. But where do you get this information?

How do you coax customers to give it to you? A well thought-out preference

center can make all the difference across all channels.

First, limit the information requested. Look at your overall marketing strategy and

use that as your guide to decide what data to request. Ask only for the

information you need and you will use to execute your communications strategy.

Don't collect all the information at once. Allow your customers to share only the

data they are comfortable sharing. As you build trust, they'll usually be willing to

share more.

Finally, don't give up. Send periodic follow-ups to customers who haven't

completed their entire profile, and remind them of the advantages of doing so.

Once you have the data, make sure you use it. Customers like it when you talk

about what's important to them, so tailor your offers based on their information. It

helps to ask your customers the day of the week and time of day they prefer to

receive your messages.

Gathering information through preference centers is the first step in building a

meaningful dialogue with your customers. By combining preference information

with data you already have, you can create campaigns that are so relevant that

your customers will consider your marketing communications a value-added,

differentiating service.

What is satisfaction?

It is the customer’s perceived performance from a product in relation to the

expectations.

Customer satisfaction, a business term, is a measure of how products and

services supplied by a company meet customer expectation. It is seen as a key

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performance indicator within business and is part of the four perspectives of a

Balanced Scorecard.

In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become

a key element of business strategy.

The customer is satisfied if the performance matches the expectations; delighted

if the performance exceeds expectations. Marketing aims for total customer

satisfaction by matching product performance with expectations. Fulfillment of

one’s wishes, expectations, or needs, or the pleasure derived from this.

What is Customer Satisfaction?

Customer satisfaction measures how well the expectations of a customer

concerning a product or service provided by your company have been met.

Customer satisfaction is an abstract concept and involves such factors as the

quality of the product, the quality of the service provided, the atmosphere of the

location where the product or service is purchased, and the price of the product

or service. Businesses often use customer satisfaction surveys to gauge

customer satisfaction. Typical areas addressed in the surveys include:

Quality of product

Value of product relative to price-a function of quality and price.

Time issues, such as product availability, availability of sales assistance,

time waiting at checkout, and delivery time.

Atmosphere of store, such as cleanliness, and enjoyable shopping

environment.

Convenience, such as location, parking, hours of operation.

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Every human being is a consumer of different produces. If there is no consumer,

there is no business. Therefore, consumer satisfaction is very important to every

business person. The consumer satisfaction after purchase depends on product

performance in relation to his/her expectations.

Consumer satisfaction or dissatisfaction is the feeling derived by the consumer

when he compares the product's actual performance with the performance that

he expects out of it. Consumers make their expectations from the service quality,

service, delivery, communications, past experiences and references. These all

are to be judged correctly by the management so that their perceptions match

with consumer expectations. If any of these factors are wrongly interpreted then

the expected level of consumer satisfaction cannot be reached.

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INDUSTRY PROFILE

a. Global level

The world’s largest market for two wheelers is china followed by India. These

countries are also hosts to world class plants along with the obviously powerful

and influential Japanese manufacturers and brand names such as Honda,

Suzuki, and Yamaha and so on. It is also seen that the advent of national brands

like Bajaj and TVS, which are also likely to go global, setting up marketing and

manufacturing arrangements in the other populous markets of Asia. The global

market for two wheelers has shown tremendous growth over the past decade.

The geographic spread of this growth has been very uneven. Asia has accounted

for the vast majority of growth. China and India alone account for over half the

20

world’s two wheeler sales. Other large markets in the region are Japan,

Indonesia, Vietnam and Taiwan. Latin America is another important region and

sales there have more than doubled over the past ten years especially in Brazil.

The major players in the world two-wheeler market could at one time be

categorized simply into two groups: the three global Japanese giants (Honda,

Suzuki and Yamaha) and other players are Hero, Bajaj, TVS, and Royal Enfield.

However, as the industry globalizes further, a further category is emerging,

namely other Asian (mostly Indian and Chinese player) and European players

who are seeking to expand their own identities worldwide.

The global two-wheeler manufacturing industry grew by 3.3% in 2013 to reach a

value of $61.5bn representing a compound annual growth rate of 5.8% for the

period spanning 2009-2013.Europe and North America experienced an overall

decline in industry value in 2013. The decline in North America was driven by the

Mexican industry, which saw a decline in production volume of over 20% in 2013.

Two-wheelers are one of the most affordable forms of motorized transport and,

for most of the world's population; they are the most common type of motor

vehicle. About 200 million two-wheelers, including mopeds, motor scooters,

motorized bicycles, and other powered two and three-wheelers, are in use

worldwide, or about 33 motorcycles per 1000 people. In comparison, there are

around 590 million cars in the world, or about 91 per 1000 people. Most two-

wheelers, 58%, are in the developing countries of Asian - Southern and Eastern

Asia, and the Asia Pacific countries, excluding Japan - while 33% of cars, 195

million, are concentrated in the United States and Japan. There are

approximately 1.5 million active motorcyclists in the UK, representing around 3%

of the UK adult population. Around 3 million people hold a full two-wheeler

licence. Ownership rates indicate there are approximately 22 motorcycles per

1,000 people.

Total demand for two-wheeler in Europe during calendar year 2012 declined

approximately 10% from the previous year to approximately 779 thousand units.

21

Weak consumer sentiment due to growing economic instability adversely

affected demand. Total industry demand for two-wheelers in Japan in financial

year 2013 was approximately 440 thousand units, mostly unchanged from the

previous financial year 2012. Although the number of licensed riders declined in

line with the continued decline in the population of young people in Japan, unit

sales growth was driven by higher demand for scooters and small motorcycles.

Total demand for two-wheelers in Asia during calendar year 2012 declined

approximately 3% from the previous year to approximately 41,500 thousand

units. Looking at market conditions by country, demand in India increased

approximately 5% from the previous year, to approximately 13,850 thousand

units while demand in China decreased approximately 10% from the previous

year, to approximately 12,630 thousand units.

In Indonesia, saw demand decline approximately 12% from the previous year, to

approximately 7,060 thousand units and Vietnam saw demand decline

approximately 7% from the previous year, to approximately 3,100 thousand units.

Demand in Thailand rose approximately 8% from the previous year, to

approximately 2,160 thousand units. Harley-Davidson is the leader in the global

to-wheeler industry, and saw two-wheeler retail sales increase 20% in the first

quarter of 2012 year-on-year, with US growth reaching closer to 26%. The

company is increasing its full-year shipment guidance, expecting to ship between

245,000 to 250,000 two-wheelers in 2012 to dealers and distributors throughout

the world.

In two-wheeler industry Honda's consolidated unit sales of two-wheelers in

financial year 2013 totalled 9,510 thousand units, an increase of 9.9% from the

previous fiscal year, mainly due to higher sales in India, Thailand and certain

other countries, despite lower sales in Brazil and Vietnam. Other important

players currently operating in the global two-wheeler market include BMW,

Honda Motorcycle & Scooter India, Yamaha, Triumph, Kawasaki, Bajaj Auto.

22

b. National level

India is a 4th largest economy in the world, 4th largest commercial vehicle market,

India emerged as Asia’s 4th largest exporter of automobiles, behind Japan, South

Korea and Thailand. India is the second largest manufacturer and producer of

two-wheelers in the world. It stands next only to Japan and China in terms of the

number of two-wheelers produced and domestic sales respectively. This

distinction was achieved due to variety of reasons like restrictive policy followed

by the Government of India towards the passenger car industry, rising demand

for personal transport, inefficiency in the public transportation system.

23

Indian two-wheeler industry has got spectacular growth in the last few years.

Indian two-wheeler industry had a small beginning in the early 50's. The

Automobile Products of India (API) started manufacturing scooters in the country.

Bikes are a major segment of Indian two wheeler industry, the other two being

scooters and mopeds. Indian companies are among the largest two-wheeler

manufacturers in the world.

Indians prefer the two wheelers because of their small manageable size, low

maintenance, and pricing and easy loan repayments. Indian streets are full of

people of all age groups riding a two wheeler. The Indian two-wheeler industry

made a small beginning in the early 50s when Automobile Products of India (API)

started manufacturing scooters in the country. The two-wheeler industry in India

has been in existence since 1955. It consists of three segments viz., scooters,

motorcycles, and mopeds. Until 1958, API and Enfield were the sole producers.

In 1948, Bajaj Auto began trading in imported Vespa scooters and three-

wheelers. In the initial stages, API dominated the scooter segment; Bajaj Auto

later overtook it. Although various government and private enterprises entered

the fray for scooters, the only new player that has lasted till today is LML. Under

the regulated regime, foreign companies were not allowed to operate in India.

Notwithstanding the strong revival witnessed early in FY15, volume growth in the

Indian two-wheeler industry has reported deceleration over the last few months

dragged by declining volumes of motorcycles segment. The growth story for the

Indian automobile industry in 2014 rode on the two-wheeler segment and not on

passenger cars or commercial vehicles, as high interest rates and a stuttering

manufacturing industry kept a check on demand. 

The two-wheeler segment is the only one that has clocked positive growth at

12.9 percent YoY (year-on-year) to reach sales of nearly 13.5 million units by

October. This can be attributed to the low cost of two wheelers in India.

ICRA said that various structural positives associated with the domestic two

wheeler industry include favorable demographic profile; moderate two wheeler

24

penetration levels (in relation to several other emerging markets), under

developed public transport system, growing urbanization, strong replacement

demand and moderate share of financed purchases remain intact.

ICRA said the motorcycle volumes faltered after a positive first half of 2014-15

and OEMs lined up new models to woo customers. Accounting for over 65 per

cent of two-wheeler industry volumes, performance of motorcycles has a

significant bearing on the overall volumes of the industry.

Consequently, with sluggish volumes in the segment, the overall industry volume

growth was also dragged down during the last four months despite continued

strong performance of scooters. Though the segment grew by 11.6 percent year

over year (YoY) during H1 FY15, growth faltered during FY15 with motorcycle

volumes posting a decline of 5.4 percent YoY and 6 per cent YoY in January

2015. Although fuel prices have started coming down significantly, the enquiry

levels at showrooms have come down and conversions are not taking place at

all. The sales of diesel vehicles are also tapering off because of the narrowing

price gap vis-a-vis petrol. Two-wheeler sector grew 12.9 percent.

The demand environment for the two wheeler industry remained subdued in the

current fiscal. CARE Research believes tough economic scenario owing to high

inflation, depleting growth in all economic activities, coupled with challenges like

firm interest rates and spiralling fuel prices have moderated the growth in near

term. Income levels in urban areas have been affected by the slowdown in the

industrial activities, while rural income is impacted due to below normal

monsoons in most regions that have significantly affected agriculture output.

CARE Research observed in spite of some sort of momentary spurt owing to

festive demand during third quarter of FY13, the two wheeler sales growth

remained around 4 per cent during the April-February period of FY13.

Table 2.1

February Sales and Growth of two wheelers

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Two wheelers Feb’15 Feb’14 Value %GrowthBajaj Auto 216,077 273,323 -57,246 -20.94%

Hero MotoCorp 484,769 504,181 -19,412 -3.85%

HMSI 361,493 328,468 33,025 10.05%

TVS Motors co 164,508 147,580 16,928 11.47%

Royal Enfield 29,491 19,840 9,651 48.64%

Suzuki Motorcycle India 30,467 27,007 3,460 12.81%

Mahindra Two wheelers 8,289 17,848 -9,559 -53.56%

Fig. 2.1

India’s largest motorcycle manufacturer, Hero MotoCorp has communicated that

its monthly sales for February 2015 stands at 484,769 units as against 504,181

units sold in February 2014. The company has registered a fall of 3.85 percent

for this month.

February 2015 marked the highest domestic market share of 29 percent for

Honda Motorcycle & Scooter India (HMSI). The company sold a total of 361,493

units during the month, marking a growth of 10.05 percent. HMSI’s February

2014 sales stood at 328,468 units.

26

A continued dip in the motorcycle sales saw Pune-based Bajaj Auto sell 216,077

units (including exports) during February 2015. The company, which marked a

decline in its monthly motorcycle sales of 20.94 percent, had sold 273,323 units

in February 14.

c. State level

In Gujarat state, sales of two-wheeler between April and September went down

by 15% to 3.40 lakh units from 4 lakh units in the same period of the previous

year 2011-12. In 2012–13, sales of two-wheelers were down, Since September

2012, the sales gradually started coming down and hence de-growth in 2012–13

was marginal. While in 2013 –14, sales of two-wheeler were increased. In the

previous year, Gujarat used to buy around 65000 to 70000 two-wheelers every

month. Now, the averaged has come down around 50000 to 55000 units per

27

month. There are multiple factors that have brought down sales of two-wheelers

in the Gujarat state. Bajaj Automobiles has sold around 11000 bikes per month

between April and September in 2014. Compared to the previous year 2013, the

figures are down from over 13000 units per month.

At present, automobile industry is selling bikes and scooters within the segment

of 75cc to over 500cc of the total sales; over 60% falls in the segment of 100cc to

125cc.This segment provides good mileage and falls in the value segment. Now

a day the interest rates for buying two-wheelers have increased which is affecting

one’s plan of buying a bike on loan. There are many customers who already own

a bike but want to buy a new bike by selling the existing one. Those customers

have put their plans on hold. They are not getting good resale value and getting

finance for the new bike has become expensive.

Bajaj auto has witness’s good responses from rural markets of Gujarat. In

Gujarat state 2014, total sales, about 45% of two-wheelers were sold on finance.

d. PESTEL Analysis1. Political factor

Political factors are the level to what the government interferers in the economy.

Specifically, political factors area such as tax liabilities, labour law, environmental

law, trade restrictions, tariffs, and political stability. Political factors include goods

and services which the government wants to provide or be provided government

plays an important role in the economy as well as in taxes to be charged to the

company. These factors are also play an important role in the employment law,

28

competition regulations as the company cannot make specific prices as they

have to follow the competition regulations. In the next few years, China is saying

that they are going to be investing billions of dollars I to hybrid technology. Bajaj

is a two-wheeler automobile company who is well known for sport bikes.

Traditionally, Government of India has considered the automobile industry as a

luxury segment. But realizing the growing importance of two-wheelers with the

increasing necessity of personal transportation for the middle class in eighties,

priority was given to the sector by favorable foreign policy. This brought about

technology revolution to the two-wheelers as Japanese majors entered in

technical and financial participation with Indian majors. Government of India has

a moderate intervention in the operations of two-wheeler industry. Excise duty

structure, emission control, safety of rider, etc. are all policy decisions.

2. Economic factor

Economic factors are those which are influenced by economic growth, interest

rate, exchange rate and inflation rate.

Abundant and low cost labour coupled with local availability of raw material like

steel, aluminium, and natural rubber has placed India amongst the low cost

producing centers of two-wheelers. Consequently, CARE research anticipants’

buoyant growth in two-wheelers exports as well, abundance of labour and raw

material gives India an upper hand in the export. Since many auto finance

company laid easy instalment rules with less interest rate it makes more segment

people to go for it.

3. Social factor

Social aspects of two-wheelers industry are popularity, subculture, and safety.

Lifestyle and preferences of people that impact their choice of types of two-

wheeler bike. In numerous cultures, motorcycles are the primary means of

motorized transport. India is the second largest motorcycle markets in the world

29

next to china. Socially many motorcycle organization raise money for charities

through organized ride and events. Many people ride motorcycles for various

reasons, those reasons are increasingly practical, with riders opting for a

powered two-wheeler as a cost –efficient alternative to infrequent and expensive

public transport system, or as a means of avoiding or reducing the effects of

urban congestion. Motorcycle gives a great advantage to the specified

designation where other buses cannot enter. Since there is a rule in some of the

main states and cities in India to wear helmet while ride two-wheelers to make

them safe from accidents makes two-wheelers riders to have a safety journey.

4. Technological factor

A technical aspect in two-wheeler industry includes construction, fuel economy,

electric motorcycle, dynamics and accessories.

Two-wheeler construction is engineering, manufacturing, and assembly of

components and system for two-wheelers which result in performance, cost and

aesthetics desired by the designers. Construction of two-wheeler includes steel,

aluminium frame, telescope forks and disc brakes. Motorcycle is the best fuel

economy mode of transport, now a days two-wheelers is desire to give more than

80km mileage per liter with low maintenance cost. Invention of electric

motorcycle gives an added advantage since the two-wheeler users can avoid

using petrol. Different types of two-wheelers have different dynamics and these

plays a vital role in their performance. Since sufficient bike accessories are

available in many place two-wheeler riders has a privilege to change the broken

parts very easily.

5. Environmental factor

Physical conditions effecting ability to use two-wheeler of different types. This will

also include state infrastructure such as roads for driving vehicles. Physical

infrastructure such as roads and bridges affect the use of two-wheeler industry. If

there is good availability of roads or roads are smooth then it will affect the use of

two-wheelers. Physical conditions like environmental situation affect the use of

30

two-wheelers. If the environment is pleasant then it will lead to more use of

vehicles.

Technological solutions helps in integrating the supply chain, hence reduce

losses and increase profitability. With the entry of global companies into the

Indian market, advanced technologies, both in product and productions process

have developed.

6. Legal factor

Legal provision relating to environmental population by two-wheeler automobile.

Legal provisions relating to safety, measures. In India the Rules and Regulations

related to driving license, registration of two-wheelers, control of traffic,

construction & maintenance of vehicles etc. are governed by the Motor Vehicles

Act 1988 and the Central Motor Vehicles rules 1989. The Ministry of Shipping,

Road Transport & Highways acts as a nodal agency for formulation and

implementation of various provisions of the Motor Vehicle Act and Central Motor

Vehicles Rules.

e. Current Trend

The two wheeler market in India is clearly dominated by top 3 players like Hero

MotoCorp, Honda Motorcycles and Scooters India (HMSI), Bajaj Auto around

86% of the market share. The rest 14% is shared by Yamaha, Suzuki, Royal

Enfield, TVS Motors etc.

Fig. 2.2

31

Hero MotoCrop retains the top spot with 54% market share. Standing next to it is

Bajaj Auto is 18%, Honda is 14%. The other players who are trailing are Suzuki,

Royal Enfield, Yamaha and TVS Motors are covered in rest of 14% market

share.

Segment Wise Two Wheeler Market ShareFig. 2.3

32

There are three segments: Motorcycles, Scooters, and Mopeds. The motorcycle

segment continues to dominate two wheeler markets with a strong hold of 74% in

overall sales volume. On the other hand, scooters segment emerging as a

significant market due to the preferred choice of young adults mainly by females,

currently it holds around 22% of overall two wheeler sales volume.  Mopeds

would continue to remain small market and holds a share of around 4%.

f. Major Key Players

33

Major Key players in the Two-wheeler industry are following them.

Hero MotoCorp Ltd

Honda Motor Company Ltd

Suzuki Motor Corporation Ltd

Bajaj Auto Ltd

TVS Motor Company Ltd

Yamaha Motor Company Ltd

Royal Enfield Company Ltd

Mahindra Two-wheelers Ltd

Harley-Davidson Company Ltd

Piaggio

g. Major Offering

34

There are many categories of motorbikes; they offering two-wheeler industry.

1. Sports bikes

A sport bike is a motorcycle optimized to achieve responsive, athletic levels of

acceleration, braking, and cornering, often but not always involving the presence

of a particularly high-performance engine. Riding position is inclined forward,

hands on low or clip-on handlebars. The most popular motorbike class, sports

bikes have fast and powerful engines, sharp styling and handling, and

aerodynamic fairings. Sport bikes emphasize speed, acceleration, braking, and

cornering on paved roads. I.e. Honda CBR 100RR, Yamaha YZF R1, and

Kawasaki Ninja 250R, Pulsar RS200 etc.

2. Sport touring bikes

Sport touring bikes is a type of motorcycle that combines the performance of

sports bike with the long distance capabilities and comfort of a touring

motorcycle. I.e. BMW R100RS, BMW K120GT, Kawasaki ZX-6R etc.

3. Cruiser bikes

A cruiser is a motorcycle in the style of American machines from the 1930s to the

early 1960s, including those made by Harley Davidson, Excelsior and

Henderson. The riding position usually places the feet forward and the hands up,

with the spine erect or leaning back slightly. Typical cruiser engines emphasize

easy ride ability and shifting, with plenty of low-end torque but not necessarily

large amounts of horsepower, traditionally V-twins but inline engines have

become more common. Cruisers with greater performance than usual, including

more horsepower, stronger brakes and better suspension, are often called power

cruisers. I.e. Bajaj Avenger, Royal Enfield Thunderbird, Harley Davidson Super

Glide etc.

4. Touring bikes

35

Touring motorcycles commonly have large displacement fairings and windshields

that offer a high degree of weather and wind protection, large-capacity fuel

tanks for long ranges between fill-ups, engines with a great deal of low

end horsepower, and a more relaxed, upright than sport bikes. Touring bikes are

built for on-road comfort and many tours have large windscreens, generous

luggage capacity, plush seats, driver/passenger intercom, and heated handlebar

grips. Touring bikes are specifically designed to excel at covering long distances.

I.e. Yamaha Royal Star, Honda Gold Wing, and BMW R1200RT etc.

5. Dual-sport bikes

A dual-sport motorcycle is a type of street-legal motorcycle that is designed for

both on and off-road use. The terms 'All-road' and 'Dual-purpose' are also used.

Dual-sports are equipped with street-legal equipment such as

lights, speedometer, mirrors, horn, license plate mounting, and muffler and can,

therefore, be registered and licensed. I.e. Kawasaki KLX250S, BMW R100GS,

Yamaha XTZ 750 etc.

6. Standards bikes

Standards, also called naked bikes or roadsters are versatile, general purpose

street motorbike. It is recognized primarily by their upright riding position, partway

between the reclining rider postures of the cruisers and the forward leaning sport

bikes. Naked bikes are often un-faired sports bikes or modern bikes. I.e. Honda

CB1000R, KTM Duke 690, Honda CB500, Ducati Monster 821 etc.

7. Off-road or Dirt bikes

Off-road bikes are also known as dirt bikes; specially designed for off-road

events. Compared to road going motorbikes, off-road machines are simpler and

lighter, having long suspension travel, high ground clearance, and rugged

construction with little bodywork and no fairings for less damage in spills. Wheels

(usually 21" front, 18" rear) have knobby tires, often clamped to the rim with a rim

lock. I.e. Enduro, Supermoto, Suzuki Jr50, Endurocross, Erzberg Rodeo etc.

36

37

COMPANY PROFILE

History of Bajaj Auto

The Bajaj Group was founded in 1926 by Jamnalal Bajaj.  The Bajaj group

comprises of 34 companies. The Bajaj Group is amongst the top 10 business

houses in India. Its footprint stretches over a wide range of industries, spanning

38

automobiles (two-wheelers and three-wheelers), home appliances, lighting, iron

and steel, insurance, travel and finance.

Bajaj Auto came into existence on 29 November 1945 as M/s Bachraj Trading

Corporation Private Limited. The company is into manufacturing of motorcycles,

scooters and three–wheelers. In India, Bajaj Auto has a distribution network of

485 dealers and over 1,600 authorized services centers. It has 171 exclusive

dealers for the three–wheeler segment .It has total 3750 rural outlets in rural

areas. The Bajaj brand is well–known across several countries in Latin America,

Africa, Middle East, South and South East Asia. It has a distribution network in

50 countries with a dominant presence in Sri Lanka, Colombia, Bangladesh,

Mexico, Central America, Peru and Egypt.

It started off by selling imported two- and three-wheelers in India. In 1959, it

obtained a licence from the Government of India to manufacture two-wheelers

and three-wheelers and it became a public limited company in 1960. In 1970, it

rolled out its 100,000th vehicle. In 1977, it sold 100,000 vehicles in a financial

year. In 1985, it started producing at Waluj near Aurangabad. In 1986, it sold

500,000 vehicles in a financial year. In 1995, it rolled out its ten millionth vehicles

and produced and sold one million vehicles in a year. With the launch of

motorcycles in 1986, the company has changed its image from a scooter

manufacturer to a two-wheeler manufacturer.

It has technical tie up with Kawasaki Heavy Industries of Japan to manufacture

latest models in the two–wheeler space. Bajaj Auto has launched brands

like Boxer, Caliber, Wind125, Pulsar and many more. It has also launched India's

first real cruiser bike, Kawasaki Bajaj Eliminator.

a. Company profile of Bajaj auto

39

Type Public company

Industry Automotive -Two & Three Wheelers

Year of Established November 29, 1945 in Pune, Maharashtra, India

Founder Jamnalal Bajaj

Headquarters Pune, India

Key people Rahul Bajaj (Chairman)

Rajiv Bajaj (Managing Director)

Products Scooters, Motorcycles, Auto rickshaw

Number of employee 9,119 (March 2014)

Presence Distribution network covers 50 countries.

Dominant presence in Sri Lanka, Peru, Bangladesh, Columbia, Guatemala, Egypt, Iran and Indonesia.

Business Group Bajaj Group

Subsidiaries Bajaj Auto Indonesia

Website www.bajajauto.com

Plants of Bajaj Auto

40

Bajaj Auto’s has in all three plants, two at Waluj and Chakan in Maharashtra and

one plant at Pant Nagar in Uttaranchal, western India.

Waluj – Bajaj range of Motorcycles and three-wheelers

Chakan - Bajaj range of Motorcycles

Pant Nagar - Bajaj range of Motorcycles

Vision and Mission statement of Bajaj Auto

Vision

“To attain world class Excellency by demonstrating value added products to

customers”

Mission

“Focus on value based manufacturing continual improvement total elimination

wastes pollution free and safe environment”

Models of Bajaj Motorcycle

41

Bajaj CT 100

Bajaj Platina 100

Bajaj Discover 100M

Bajaj Discover 125M

Bajaj Discover 150S

Bajaj Discover 150F

Bajaj Avenger 220

Bajaj Pulsar 135LS

Bajaj Pulsar 150

Bajaj Pulsar 150NS

Bajaj Pulsar 180

Bajaj Pulsar AS200

Bajaj Pulsar 220F

Bajaj Pulsar RS200

Timeline of New Releases of Bajaj Auto

42

1961–1971 – Vespa 150 – under the licence of Piaggio of Italy

1971 – Three-wheeler goods carrier

1972 – Bajaj Chetak

1976 – Bajaj Super

1975 – Bajaj Priya

1977 – Rear engine auto rickshaw

1981 – Bajaj M-50

1986 – Bajaj M-80, Kawasaki Bajaj KB100,

1990 – Bajaj Sunny

1991 – Kawasaki Bajaj 4S Champion

1993 – Bajaj Stride

1994 – Bajaj Classic

1995 – Bajaj Super Excel

1996 - Bajaj SX Enduro

1997 – (Bajaj KB125) Kawasaki Bajaj Boxer, rear engine diesel autorickshaw.

1998 – Kawasaki Bajaj Caliber, Bajaj Super 99,

1999 – Bajaj Legend, Bajaj Bravo, Bajaj Chetak 99, Bajaj Spirit

2000 – Bajaj Saffire, Bajaj Prowler

2001 – Eliminator, Bajaj Pulsar, Kawasaki Bajaj Aspire, Caliber Croma

2003 – Caliber 115, Kawasaki Bajaj Wind 125, Bajaj Pulsar DTS-i

43

2004 – Bajaj CT 100, New Bajaj Chetak 4-stroke with Wonder Gear, Bajaj

Discover DTS-i

2005 – Bajaj Wave, Bajaj Avenger, Bajaj Discover 112

2006 – Bajaj Platina

2007 – Bajaj Pulsar-200 (Oil Cooled), Bajaj Kristal, Bajaj Pulsar 220 DTS-Fi (Fuel

Injection), XCD 125 DTS-Si

2008 – Bajaj Discover 135 DTS-i

2009 – Bajaj Pulsar 135, Bajaj XCD 135 cc, Bajaj Pulsar 150 DTS-i UG IV, Bajaj

Pulsar 180 DTS-i UG IV, Bajaj Pulsar 220 DTS-i, Bajaj Discover 100 DTS-

Si, Kawasaki Ninja 250R

2010 – Bajaj Discover 150

2011 – Bajaj Discover 125

2012 – Bajaj RE 60, mini car for intra-city urban transportation

2012 – Bajaj Pulsar 200 NS, launch of 200 cc bike, Discover 125ST

2013 - Bajaj Discover 125ST discover 100T

2014 - Bajaj Discover 150F, 150S

2015 - Bajaj Platina 100 ES, Bajaj CT 100 (Re introduced), Pulsar RS 200,

Pulsar AS200 & AS150, Pulsar NS150

44

Awards and Recognition

Bajaj Pulsar 135 LS received Bike of the Year 2010 award from BBC – Top

Gear and Bike India.

Pulsar 220 DTS-Fi received the Bike of the Year 2008 award by all major

Indian automobile magazines like Overdrive, Auto Car, Business Standard

Motoring and Bike Top Gear.

In 2006, Bajaj Auto won the Frost & Sullivan Super Platinum Award for

manufacturing excellence in its Chakan Plant.

It received award for The Most Customer Responsive Company in

Automobiles category in a survey conducted by Economic Times for the

years 2004, 2006 and 2008.

Bajaj Auto received the Bike Maker of the Year award in ICICI Bank

Overdrive Awards 2004.

Bajaj Pulsar 180 DTS-i won the BBC World Wheels Viewer’s Choice 2

Wheeler of the Year 2003 award.

45

Management team of Bajaj Auto

Board of Directors DesignationRahul Bajaj Chairman

Madhur Bajaj Vice chairman

Rajiv Bajaj Managing Director

Sanjiv Bajaj Executive Director

Pradeep Shrivastava Chief Operating Officer

Abraham Joseph Chief Technology Officer

R C Maheshwari President (Commercial Vehicle Business)

Rakesh Sharma President (International Business)

Eric Vas President (Motorcycle Business)

Kevin P D’sa President (Finance)

S Ravikumar President (Business Development & Assurance)

Amrut Rath President (Human Resources)

Ranjit Gupta President (Insurance, BFSL)

N H Hingorani Advisor (Materials)

C P Tripathi Advisor (Corporate Social Responsibility)

J. Sridhar Company Secretary

46

Introduction of Shivam Bajaj

Shivam Bajaj is started on 1st November, 2013. Shivam Bajaj is a presently new

make show room of a Bajaj executive authorized dealer of the south Gujarat. It

exclusively handles Bajaj two-wheelers and promotes business activities based

on policies that focus on customer satisfaction. Shivam Bajaj in its respective

markets and provide 4S facilities under one roof as per Bajaj's worldwide

standards. Like sales, services, spare parts, safe riding etc.

Company profile of Shivam Bajaj

Company Name Shivam Bajaj

Established 1st November, 2013

Address FF-1, Mansarovar Heights Opp. Bhaktidham

temple, Puna Kumbhariya Road, Puna Patia

Magob, Surat-395010.

Phone No. (0261) 2645577

Mobile No. +918866770101, +918866550202

E-mail Shivambike77@gmail.com

Owner Name Mr. Dharmeshbhai Palsanawala

Mr. Hirenbhai Patel

Manager Name Mr. Shoban Mulla

Authorized Dealer Bajaj Auto limited

Number of employee 30

Products CT-100, Platina, Discover, Avenger, Pulsar

47

Two more authorized dealers of Bajaj Motorcycle are available in Surat city.

Name Fortune Bajaj

Address M/s Fortune Bajaj,G-5, Deepkamal Complex, Near

Sarthana Zoo, Nana Varachha-395009

Phone no. (0261) 2575708

E-mail d11803@baldealer.com

Name Surat Bajaj

Address M/s, Gujarat Motors Pvt. Ltd. , Opera House, Opp.

Sanghvi Road, Gujarat Gas Circle-395009

Phone no. (0261)2789595, 2789555

E-mail d10971@baldealer.com

b. Organogram48

c. Division/ Departments

49

Workshop Manager

Sales Manager

Workshop Person

Sales Executive

Back Office

Owner

Marketing Manager

Service Manager

There are many departments. Name of the departments are following them:

Sales Department

Service Department

Accessories Department

Finance Department

HR Department

d. SWOT Analysis

50

Strengths Highly experienced management.

Widespread distribution network.

Good experience workers.

Excellent marketing.

Excellent reputation in market.

Weaknesses After sales services is very poor.

Lag in the distribution of products or payment delays.

Opportunities

Cheaper variants for tapping more in the rural segment.

Premium sport bikes for urban areas.

Constant growth in the two-wheeler segment.

Threats Cheaper imports from countries like China.

Entry of international brands.

Other motorcycle players have a strong brand presence.

e. Market Position

51

In two wheeler market, Bajaj Auto faces stiff competition from new and existing

players. Various product launches by Hero Motor Corp, Honda, Yamaha and

TVS are expected over the medium term and this could put pressure on the

domestic market share of the Company. Bajaj Auto sales declined by 4% to

301,826. Bajaj Auto being in the list of downfall.

Bajaj Auto is the world’s largest three-wheeler manufacturer. The domestic three

wheeler industry has three major participants namely Bajaj Auto, Piaggio

Vehicles, Mahindra and Mahindra. For FY 2014, the Company has a leadership

position in the segment with 53.7% market share. To maintain its position, the

Company has launched a number of new product variants focusing on best

mileage, competitive pricing, and low maintenance cost.

Bajaj Auto has a diversified product portfolio including motorcycles for all

segments: Platina, Discover, Pulsar and Ninja (sport) and sizeable presence in

three-wheelers segment. The Company derives about one-third of its revenues

from the export of two and three-wheelers. This product diversification helped

Bajaj Auto achieve its highest ever EBITDA in FY 2013-14.

Their sales as compared to May 2014, this year were lower which stood at

301,862 units compared to 313,020 in 2014 reporting a decline of 4%. While its

commercial vehicle saw a rise in sale by 13% to 43,576 units in May 2015 as

compared to the numbers of 38,416 units in May 2014.

The Company has shown consistent growth over the last 5 years (2009-10 to

2013-14). Its net revenue from operations over this period grew at an impressive

CAGR of 9.94 %. For FY 2014, income from operations increased by 0.58 % to

Rs. 20,158.29 Cr. from Rs. 20,041.99 Cr. The Company has a strong dividend

history and has maintained an average dividend yield of 4.48% over the last 5

financial years. For FY 2014, the Company declared a dividend of 500 % i.e. Rs.

50 per share.

52

REVIEW OF LITERATURE

53

Mrs.G. Mahalakshami (Nov 2014) studied of “customer satisfaction on two

wheelers a special reference with TVs XL in Theni district”. And found from

survey that two wheeler brands are taken necessary promotional activities to

increase their demand by introducing new models. In olden days the people used

only the bicycle and rarely used the two wheelers. But now a days each and

every one have the two wheelers in Theni district most of the respondents prefer

the TVs XL for their riding comfort and satisfied with their services.

V. Devki & Dr. H. Balakrishnan (Nov 2013) studied of “Customer Preference

towards Hero two wheeler after termination if Hero Honda” using primary data

and found from survey that the purchase of two wheeler is independent of the

annual income of buyer; this could perhaps be due to the easy loan available and

customer friendly. Majority of the respondents give more importance to price and

prefer the middle ranged bikes like, splendor and passion. It is perceived that

most of the people confirmed that they will miss the Hero Honda and skeptic

about the Hero. The future choice of Hero is only 36 % of the existing customer

who prefer to stay with Hero.

Dr. N.Yesodha Devi, Mrs. C.Gomathy, Mrs.R.Krishnakumari (Oct 2013) studied of “Consumer Preference and Satisfaction towards Sedan Cars in

Coimbatore City” using primary data and found from survey that the present

study made an attempt to understand car purchase satisfaction and influential

factors affecting purchase decision. Most of the buyers are satisfied with the

services provided by the dealers and they preferred fiesta brand because of its

comfortability. They also find there is no significant difference between the Age,

Sex, Marital status, Occupation, Monthly income, Number of members in the

family and satisfaction level of cars.

Dr. Duggani Yuvaraju & Prof. S. Durga Rao (May 2014) studied of “Customer

Satisfaction towards Honda two-wheelers with reference with Tirupati” that

finding from survey that the 90 percent of the customers were completely

54

satisfied with the mileage and performance of the bike, 10 percent of the

customers are dissatisfied with the mileage. Also the respondents were aware

about this company. Most of the customers agree that Honda is best quality with

reasonable price the attitude 50% of customers towards price of Honda Bikes is

reasonable. But 10% of the customers are asking for improvement in the quality.

Kavita Dua & Savita (April 2013) studied of “A study of customer Satisfaction

with reference to Tata motor passenger vehicles” and found that mostly Tata

customers purchased car on loan, used the Tata car for personal purpose,

having the car from 1-5 year and they are recommended by their friends as well

as take preventive maintenance from authorized dealer. It was found that the

customer are mostly satisfied with price , design, safety, mileage, interior space,

status brand name, comfort level, spares part and after sale service. Finding

pertaining to most influencing show that most influencing factor for customer

satisfaction in case of Tata Motors were price, mileage and interior space.

Mahapatra, kumar and Chauhan (2010) studied on "customer satisfaction,

dissatisfaction on small size passenger cars in India" with the main objectives to

examine the satisfaction and impact on future purchase decision and explore the

performance of different attributes and they revealed from this study that

customers are highly satisfied with the performance of attributes like pickup,

wipers, etc. and other attributes like pollution, engine, quietness, battery

performance, and pick up influence the consumer future purchase decisions and

consumer give the more importance to these factors.

Kurkoti and Prabhu (2011) revealed a study on "Customer Satisfaction with

reference to Tata nano car in Pune city" with the objectives to determine the

customer satisfaction towards Tata Nano, to study the gap analysis and to find

out the impact of fire incidences on Nano car users. They concluded from the

55

study that Nano car customers are not satisfied with the performance and waiting

period of car but they satisfied with the safety of car and fire incidences report

that has impact on the customer satisfaction.

Sharma, Kiran Sharma and Khan (2011) studied on "analysis of customer

satisfaction of Tata motors in Jaipur, Rajasthan with the objectives to find out the

satisfaction among the customers, market performance and market position of

Tata motors. They find that 73% people feel that safety are affordable whereas

12% do not agree, 74% believe that attractive discount are offered but 26% are

not satisfied with the discount offered , but the overall opinion about Tata Motors

is very good.

Singh (2011) study on "An empirical review of the product and customer

satisfaction of Tata commercial vehicles" to find out the quality of service,

performance. These studies they find that consumer prefer the Tata commercial

vehicles due to its better quality, brand image, easy availability of service

stations, spare part quality etc.

Ganesh and Soundarapandiyan (2011) conducted a study on "i10 Hyundai

Chennai: customer satisfaction level" with the sample size of 150 customers and

tools used percentage analysis, chi square and multiple regression analysis. The

objectives of the study was to identify the post purchase behaviour and customer

satisfaction level and find the effectiveness of after sales service of customer of

Hyundai i10. They revealed from the study that customers are satisfied with the

car after purchase because its gives the feel of luxury to customers and a

convenience of smaller car in crowded area. It’s most stylish as compared to

others.

Lohana and sharma (2012) conducted a study on "customer satisfaction

towards Hyundai cars in Nanded city" with the objectives is to identify the

customer preferences and parameter about the Hyundai cars. They have taken

the sample of 60. They concluded from the study that 50% customers are

56

satisfied with the overall performance of their vehicle. The customers are

satisfied with the fuel efficiency, brand image, after sales service and economy in

purchase etc.

Rao and Kumar (2012) revealed study on "Customer satisfaction towards Tata

Motors - A study on Passenger cars in Warangal district of Andhra Pradesh" with

the objectives to study the customer satisfaction with the usage of vehicles, after

sale service, key area of strength, pricing affects, service and quality. They take

the sample of 100 respondents and used the percentage technique. They

concluded from the study that majority of customers are satisfied with the safety,

dealer service, customer relationship and availability of spares etc.

Kerav Pandya & H. J. Jani (March 2011) study on “Customer Satisfaction

among Two-Wheeler Users an Indian experience – with special reference to

motorcycle users” and found from survey that few years ago, in two-wheelers,

only the mileage was the main feature for motorcycle purchasers. But now the

situation is not the same. It was found that style and power of motorcycle were

also important reasons for purchasing a motorcycle. As the main factor creating

dissatisfaction was after sales service, companies are recommended to improve

on this factor.

S Saraswathi (2008) study on “Customer Satisfaction on Post-Sales Service

with Reference to Two-Wheeler Automobile Industry” and found from the survey

mostly customer satisfied with examining the vehicle in presence of the

customer. 80 percent customers are satisfied with the accuracy in delivery time,

41% of the customers are satisfied with examining the vehicle in presence of the

customer.

Ms.M.Shanthini Devi & Ms.S.Arunpriya (Aug 2013) studied on “Customer

Satisfaction towards Tata Nano Car with Special Reference to Coimbatore City”

and they found from the survey that, the customers have a good preference

towards Tata Nano vehicle. They are mainly motivated by price of the car. The

57

popularity of the brand also. Overall, it can be concluded that customers are

satisfied with the price, appearance of the vehicle and comfortability in crowded

area but they expect variety of models.

Balasubramani S. & Suganthi M. & Suresh P. (Sept 2013) studied on “An

Empirical Study on Consumer Preference towards Hyundai Cars in Salem City”

and found from the survey that the majority of the respondents prefer the finance

mode of purchase (55.84%) rather than cash mode and in finance respondents

are prefer bank finance rather than private finance.

Ms. Ameer Asra Ahmed & Dr. M.S. Ramachandra & Mr. Siva Nagi Reddy (Oct-Dec 2014) study on “Customer Satisfaction level towards Royal Enfield

Bullet” and they found that most of the respondents were not fully satisfied with

the price, performance, utility benefits, aesthetics and service scheme of their

Royal Enfield Bullet Most of the respondents were happy riding Royal Enfield

Bullet and also they were overall satisfied with the performance of their Royal

Enfield Bullet. In younger generation middle age are more interesting to purchase

this bullet.

Devang Desai (2014) study on “Customer Satisfaction towards Royal Enfield

Bullet” and they found from the survey that it has been more than 50 years now

that bikes have been ruling the Indian automobile sector. 350cc Bullet the super

bike in India of all times, from the Royal Enfield Company of UK were received

and assembled at Chennai. In this bullet; four-stroke engines are thought to be

more fuel efficient motorbikes. They are the main reason for the growth of

motorbikes in India as a segment.

Shivamba M (2014) Study on “Customer Satisfaction towards various brands of

two wheelers in India” and from these survey they found that the motorcycle

segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike.

The two-wheeler market was opened to foreign competition in the mid-80s and

58

then market leaders – Escorts and Enfield – were caught unaware by the

onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the

availability of fuel efficient low power bikes, demand swelled, resulting in Hero

Honda.

Mrs. Beena John & Dr. S. Pragadeeswaran (March- April 2013) studied on

“Small Cars Consumer Preference in Pune city” and they found that demographic

factors like age, gender, education, status, and income influence consumers

indirectly for small car buying preference. Value consciousness & price quality

inference are the important factors which influence small car buying. Male

consumers preferred Diesel cars while female respondents preferred petrol cars

Schiffman and Kanuk, (1997) study on “Customer Preference towards Small

Car” and this survey then found that how people build their preferences to spend

their resources like time, money, and effort on consumption-related things.

Consumer behavior is a study of the process concerned when people choose,

purchase, use, or eliminate products, services, ideas, or experiences to satisfy

wants and needs.

Sagar and Chandra (2004) study on “Customer preference towards small cars”

and find that, how Indian car industry has leaped forward technologically with

intensified technological capabilities .the industry is driven by a confluence of

factors such as strong competition, changing consumer preferences, government

policies especially with tightening of emission standards, and the global

strategies of the various players. They detailed about cars manufactured in India

with better designs& incorporating advanced technologies that are often

comparable with those available globally and also commented Indian car exports

are also growing in leaps and bounds.

Banerjee, Ipsita (2011) studied about “Car Acquisition & Ownership Trends in

Surat city” and found that vehicle choice behavior recognized that household

59

income is the chief determinant of the number and size of cars that household

possess, and that family size is a much less important factor & smaller vehicles

were preferred even by larger family.

Dr. Mrs. Punithava pandian & A. Arunchala Rajan (Jan 2014) study on

“Customer Satisfaction Level towards the Use of Bajaj Bikes with Special

Reference to Tirunelveli Town, Tamilnadu” and they found from the survey that

full satisfaction over the work that was done by him independently with the

supervision of his Guide. they promote their services so effectively in the days to

come.

Dr. K. Ravichandran & K. Venkatesh & Dr. R. Muruganandham study on

“Customer Preference of Automobile” and they found that Considering brand and

brake system, consumer preference polo, Considering brand and comfort,

consumer preference polo, Considering brand and mileage, consumer

preference vista, Considering brand and maintenance cost, consumer preference

Figo and Ritz. Customer always gives importance to Mileage and brake systems.

Rachel Dardis and Horacio Soberon-Ferrer(1994) have investigated the

rapport between automobile attributes and household characteristics to

consumer preferences for cars. They found that indicated that the coefficients of

five automobile quality attributes were statistically significant while the

coefficients of most household characteristics were not significant. Households

were interested in more fuel efficient and heavier cars as well as cars with lower

depreciation rates and a lower frequency of repair are more likely to buy

Japanese than non-Japanese cars.

60

RESEARCH METHODOLOGY

61

a. Problem StatementIn today’s intensely competitive environment, companies today are constantly

looking for ways to attract customers by having a better understanding of

changing customer preferences. The ever changing market characteristics have

huge impact on corporate decisions. Therefore this study has been conducted to

find the Customer Preference and Satisfaction towards Bajaj Bikes.

62

b. Research ObjectiveI. Primary objective

To ascertain the customer preference and satisfaction towards the Bajaj

bikes.

II. Secondary objective To determine which is/are the most attractive attribute for purchasing Bajaj

bikes.

To find the areas of improvement of the Bajaj bikes.

To know the respondents problems towards Bajaj bikes.

To study association between demographic variables and different

attributes of Bajaj bikes.

63

c. Research DesignI. Type of Design

Descriptive Research Design

II. Types of DataPrimary data

III. Instrument for data collectionQuestionnaire

IV. Sample populationCustomers who are using Bajaj bike

V. Sample areaSurat city

VI. Sample size200

VII. Sampling MethodNon-probability convenience sampling method

VIII. Tools for Analysis Charts with the use of Microsoft Excel 2010

Chi-square test with the use of SPSS 16.0

IX. Limitations of the Study The study has been conducted only in Surat city and so the opinion of the

respondents in Surat only has been considered. A conclusion is based on

assumption. It has been assumed that the answers given by the

respondents are true and adequate. The time allotted for the study was

short otherwise a more in depth study could be made.

I have taken only 200 respondents which may or may not represent the

whole population.

64

DATA ANALYSIS &

INTERPRETATION

65

1) Frequency of Age (in years)

Table 6.1

Criteria No. of respondent

Percentage (%)

18-30 103 51.5

31-45 90 45

46-60 7 3.5

Total 200 100

Fig. 6.1

51.5%45%

3.5%

18-3031-4546-60

Interpretation

Out of 200 respondents 51.5% of respondents are 18-30 years age and 45% of

respondents are 31-45 years age whereas only 3.5% of respondents are 46-60

years age.

66

2) Frequency of Occupation

Table 6.2

Criteria No. of respondent

Percentage (%)

Businessman 68 34

Salaried 69 34.5

Retired 1 0.5

Student 61 30.5

Professional 1 0.5

Total 200 100

Fig. 6.2

34.00%

34.5%

0.5%

30.5%

0.5%

BusinessmanSalariedRetiredStudentProfessional

Interpretation

Out of 200 respondents 34% of respondents are businessman, 34.5% of

respondents are salaried, and 30.5% of respondents are student. While, 0.5%

out of them are retired and professional.

67

3) Frequency of Education

Table 6.3

Criteria No. of respondent

Percentage (%)

H.S.C. or

below

27 13.5

Undergraduate 48 24

Graduate 117 58.5

Postgraduate 8 4

Total 200 100

Fig. 6.3

13.5%

24%

58.5%

4%

H.S.C. or belowUndergraduateGraduatePostgraduate

Interpretation

68

Out of 200 respondents 58.5% of respondents are graduates. While, 24% of

respondents are undergraduate, 13.5% of respondents are H.S.C. or below, and

4% of respondents are Postgraduate.

4) Frequency of Monthly income

Table 6.4

Criteria No. of respondent

Percentage (%)

Less than 15000 75 37.5

15001-30000 88 44

30001-50000 37 18.5

Total 200 100

Fig. 6.4

Less than 15000 15001-30000 30001-500000

5

10

15

20

25

30

35

40

45

50

37.5%

44%

18.5%

Monthly income

Interpretation

Out of 200 respondents 44% of respondent’s monthly income is 15001-30000,

37.5% of respondents monthly income is less than 15000 and 18.5% of

respondents monthly income is 30001-50000.

69

5) Frequency of how did you come to know about Bajaj bike.

Table 6.5

Criteria No. of respondent

Percentage (%)

Friends 40 20

Media 102 51

Relatives 58 29

Others 0 0

Total 200 100

Fig. 6.5

20%

51%

29%

Friends Media

Relatives

Interpretation

Out of 200 respondents 51% of respondents have known about Bajaj bikes from

media, where as 29% of respondents known about Bajaj bikes from relatives and

20% of respondents have known from friends.

70

6) Which model did you buy?

Table 6.6

Models of Bajaj bike

No. of respondent

Percentage (%)

CT 100 9 4.5

Platina 100 22 11

Discover 100 10 5

Discover 100M 16 8

Discover 125M 21 10.5

Discover 150S 3 1.5

Discover 150F 5 2.5

Avenger 220 18 9

Pulsar 135LS 11 5.5

Pulsar 150 19 9.5

Pulsar 150AS 4 2

Pulsar 180 17 8.5

Pulsar 200NS 12 6

Pulsar AS200 12 6

Pulsar 220F 18 9

Pulsar RS200 3 1.5

Total 200 100

71

Fig. 6.6

CT 100

Platina 100

Discover

100

Discover

100M

Discover

125M

Discover

150S

Discover

150F

Avenger

220

Pulsar 135LS

Pulsar 150

Pulsar 150AS

Pulsar 180

Pulsar 200NS

Pulsar AS200

Pulsar 220F

Pulsar RS200

0

2

4

6

8

10

12

Different models of Bajaj

Model

Interpretation

Out of 200 respondents 22 respondents have using Platina 100, 21 respondents

have using Discover 125M, 19 respondents have using Pulsar 150, 18

respondents have using Avenger 220, 18 respondents have using Pulsar 220F,

17 respondents have using Pulsar 180, 16 respondents have using Discover

100M, 12 respondents have using Pulsar 200NS, 12 respondents have using

Pulsar 200AS, 11 respondents have using Pulsar 135LS, 10 respondents have

using Discover 100, 9 respondents have using CT 100, 5 respondents have

72

using Discover 150F, 4 respondents have using Pulsar 150AS, 3 respondents

have using Discover 150S, 3 respondents have using Pulsar RS200.

7) Which is/are the most attractive attribute/attributes?

Table 6.7

Attributes Respondents responses out of 200

Percentage (%)

Price 193 23.74

Mileage 186 22.88

Stylish look 32 3.94

Pickup 6 0.74

Engine Capacity 171 21.03

Colors 10 1.23

Maintenance cost 180 22.14

Brand image 24 2.95

Comfortable ride 11 1.35

Total 813 100

73

Fig. 6.7

Price A

ttribute

Mileage

Attribute

Stylish

look A

ttribute

Pickup Attrib

ute

Engin

e Cap

acity

Attribute

Colors Attrib

ute

Mainten

ance

cost Attrib

ute

Brand im

age Attrib

ute

Comfortable r

ide Attrib

ute

0.00

5.00

10.00

15.00

20.00

25.00 23.74% 22.88%

3.94%

0.74%

21.03%

1.23%

22.14%

2.95%1.35%

Most Attractive at -tribute

Interpretation

Out of 200 respondents 23.74% of respondents have said price is a most

attractive attributes while purchasing a Bajaj bike, 22.88% of respondents have

said mileage is a most attractive attributes while purchasing a Bajaj bike, 22.14%

of respondents have said maintenance cost is a most attractive attributes while

purchasing a Bajaj bike, 21.03% of respondents have said Engine capacity is a

most attractive attributes while purchasing a Bajaj bike, while 3.94% of

respondents have said stylish look is a most attractive attributes while purchasing

a Bajaj bike, 2.95% of respondents have said brand image is a most attractive

attributes while purchasing a Bajaj bike, 1.35% of respondents have said

comfortable ride is a most attractive attributes while purchasing a Bajaj

bike, .1.23% of respondents have said color is a most attractive attributes while

purchasing a Bajaj bike, 0.74% of respondents have said pickup is a most

attractive attributes while purchasing a Bajaj bike.

74

8) While comparing with other bike; the model of Bajaj bike is?

Table 6.8

Criteria Respondent

Percentage (%)

Good 190 95

Need to improve 10 5

Can’t say 0 0

Total 200 100

Fig. 6.8

Good95%

Need to improve5%

Interpretation

Out of 200 respondents 95% of respondents have said model of Bajaj bike is

good, but 5% of respondents have said need to improve the model of Bajaj bike.

75

9) Frequency of customer satisfaction towards PriceTable 6.9

Price No. of respondent

Percentage (%)

Highly satisfied 4 2

Satisfied 114 57

Average 58 29

Dissatisfied 20 10

Highly dissatisfied 4 2

Total 200 100

Fig. 6.9

%2

57%

29%

10%

2%

Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

Interpretation

From the above table it is clear that 57% of the respondents are satisfied, 29% of

the respondents are average satisfied with the price of Bajaj bike. While 10% of

76

the respondents are dissatisfied, 2% of the respondents are highly satisfied and,

2% of the respondents are highly dissatisfied.

10) Frequency of customer satisfaction towards Mileage

Table 6.10

Mileage No. of responden

t

Percentage (%)

Highly satisfied 6 3

Satisfied 99 49.5

Average 81 40.5

Dissatisfied 10 5

Highly dissatisfied 4 2

Total 200 100

Fig. 6.10

3%

49.5%40.5%

5%

2%

Highly satisfiedSatisfiedAverageDissatisfiedHIghly dissatisfied

Interpretation

77

From the above table clear that 49.5% of the respondents are satisfied and

40.5% of the respondents are average satisfied with the mileage of Bajaj bike.

While 5% of the respondents are dissatisfied, 3% of the respondents are highly

satisfied and 2% of the respondents are highly dissatisfied.

11) Frequency of customer satisfaction towards look & style

Table 6.11

Look & style No. of responden

t

Percentage (%)

Highly satisfied 11 5.5

Satisfied 74 37

Average 93 46.5

Dissatisfied 16 8

Highly dissatisfied 6 3

Total 200 100

Fig. 6.11

5.5%

37%

46.5%

8% 3%

Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

78

Interpretation

From the above table clear that 46.5% of the respondents are average satisfied

and 37% of the respondents are satisfied with the look & style of Bajaj bike.

While 8% of the respondents are dissatisfied, 5.5% of the respondents are highly

satisfied and 3% of the respondents are highly dissatisfied.

12) Frequency of customer satisfaction towards Pickup

Table 6.12

Pickup No. of responden

t

Percentage (%)

Highly satisfied 11 5.5

Satisfied 96 48

Average 73 36.5

Dissatisfied 10 5

Highly dissatisfied 10 5

Total 200 100

Fig. 6.12

79

5.5%

48%

36.5%

5%5%

Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

Interpretation

From the above table clear that 48% of the respondents are satisfied and 36.5%

of the respondents are average satisfied with the pickup of Bajaj bike. While 5%

of the respondents are dissatisfied, 5.5% of the respondents are highly satisfied

and 5% of the respondents are highly dissatisfied.

13) Frequency of customer satisfaction towards Engine capacity

Table 6.13

Engine capacity No. of respondent

Percentage (%)

Highly satisfied 9 4.5

Satisfied 104 52

Average 63 31.5

Dissatisfied 16 8

Highly dissatisfied 8 4

Total 200 100

Fig. 6.13

80

4.5%

52%

31.5%

8%4%

Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

Interpretation

From the above table clear that 52% of the respondents are satisfied and 31.5%

of the respondents are average satisfied with the engine capacity of Bajaj bike.

While 8% of the respondents are dissatisfied, 4.5% of the respondents are highly

satisfied and 4% of the respondents are highly dissatisfied.

14) Frequency of customer satisfaction towards Colors

Table 6.14

Colors No. of responden

t

Percentage (%)

Highly satisfied 29 14.5

Satisfied 79 39.5

Average 77 38.5

Dissatisfied 10 5

Highly dissatisfied 5 2.5

Total 200 100

81

Fig. 6.14

Highly satisfied14%

Satisfied40%

Average39%

Dissatisfied5%

Highly dissatisfied3%

Interpretation

From the above table clear that 39% of the respondents are satisfied and 39% of

the respondents are average satisfied with the colors of Bajaj bike. While 5% of

the respondents are dissatisfied, 14% of the respondents are highly satisfied and

3% of the respondents are highly dissatisfied.

15) Frequency of customer satisfaction towards maintenance cost

Table 6.15

Maintenance cost No. of respondent

Percentage (%)

Highly satisfied 16 8

Satisfied 63 31.5

Average 86 43

Dissatisfied 28 14

Highly dissatisfied 7 3.5

Total 200 100

82

Fig. 6.15

8%

31.5%

43%

14%

3.5%

Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

Interpretation

From the above table clear that 43% of the respondents are average satisfied

and 31.5% of the respondents are satisfied with the maintenance cost of Bajaj

bike. While 14% of the respondents are dissatisfied, 8% of the respondents are

highly satisfied and 3.5% of the respondents are highly dissatisfied.

16) Frequency of customer satisfaction towards Brand image

Table 6.16

Brand image No. of responden

t

Percentage (%)

Highly satisfied 11 5.5

Satisfied 79 39.5

Average 90 45

Dissatisfied 13 6.5

Highly dissatisfied 7 3.5

Total 200 100

83

Fig. 6.16

5.5%

39.5%

45%

6.5%3.5%

Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

Interpretation

From the above table clear that 48% of the respondents are average satisfied

and 39.5% of the respondents are satisfied with the brand image of Bajaj bike.

While 6.5% of the respondents are dissatisfied, 5.5% of the respondents are

highly satisfied and 3.5% of the respondents are highly dissatisfied.

17) Frequency of customer satisfaction towards Resale value

Table 6.17

Resale value No. of responden

t

Percentage (%)

Highly satisfied 0 0

Satisfied 6 3

Average 67 33.5

Dissatisfied 109 54.5

Highly dissatisfied 18 9

84

Total 200 100

Fig. 6.17

3.00%

33.50%

54.50%

9.00%

SatisfiedAverageDissatisfiedHighly dissatisfied

Interpretation

From the above table clear that 54.50% of the respondents are dissatisfied and

33.50% of the respondents are average satisfied with resale value of Bajaj bike.

While 9% of the respondents are highly dissatisfied and only 3% of the

respondents are satisfied.

18) Frequency customer satisfaction towards comfortable ride

Table 6.18

Comfortable ride No. of responden

t

Percentage (%)

Highly satisfied 23 11.5

Satisfied 74 37

Average 86 43

Dissatisfied 11 5.5

85

Highly dissatisfied 6 3

Total 200 100

Fig. 6.18

12%

37%43%

6% 3%

Highly satisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

Interpretation

From the above table clear that 37% of the respondents are satisfied and 43% of

the respondents are average satisfied with the comfortable ride of Bajaj bike.

While 5.5% of the respondents are dissatisfied, 11.5% of the respondents are

highly satisfied and 3% of the respondents are highly dissatisfied.

19) Frequency of customer satisfaction towards after sales services

Table 6.19

After sales services No. of respondent

Percentage (%)

Satisfied 5 2.5

Average 45 22.5

Dissatisfied 135 67.5

Highly dissatisfied 15 7.5

86

Total 200 100

Fig. 6.19

Satisfied2.5%

Average22.5%

Dissatisfied67.5%

Highly dissatisfied7.5%

Interpretation

From the above table clear that 67.5% of the respondents are dissatisfied and

7.5% of the respondents are highly dissatisfied with the after sales services of

Bajaj bike. While 22.5% of the respondents are said average and only 2.5% of

the respondents are satisfied.

20) Frequency of Rank

Table 6.20

Rank Bajaj Hero Honda Yamaha

Suzuki TVS

1 32 140 28 0 0 0

2 51 43 105 0 0 0

3 117 17 67 0 0 0

87

4 0 0 0 187 7 7

5 0 0 0 13 167 19

6 0 0 0 0 26 174

Total 200 200 200 200 200 200

Fig. 6.20

Bajaj Hero Honda Yamaha Suzuki TVS0

20

40

60

80

100

120

140

160

180

200

Rank 1Rank 2Rank 3Rank 4Rank 5Rank 6

Interpretation

Out of 200 respondents 32 respondents have given 1st rank, 51 respondents

have given 2nd rank, and 117 respondents have given 3rd rank to Bajaj. While

none of the respondents have given 4th, 5th, and 6th rank to Bajaj.

88

Out of 200 respondents 140 respondents have given 1st rank, 43 respondents

have given 2nd rank, and 17 respondents have given 3rd rank to Hero. While none

of the respondents have given 4th, 5th, and 6th rank to Hero.

Out of 200 respondents 28 respondents have given 1st rank, 105 respondents

have given 2nd rank, and 67 respondents have given 3rd rank to Honda. While

none of the respondents have given 4th, 5th, and 6th rank to Honda.

Out of 200 respondents 187 respondents have given 4 th rank and 13 respondents

have given 5th rank to Yamaha. While none of the respondents have given 1st,

2nd, 3rd and 6th rank to Yamaha.

Out of 200 respondents 7 respondents have given 4 th rank, 167 respondents

have given 5th rank and, 26 respondents have given 6th rank to Suzuki. While

none of the respondents have given 1st, 2nd and, 3rd rank to Suzuki.

Out of 200 respondents 7 respondents have given 4 th rank, 19 respondents have

given 5th rank and, 174 respondents have given 6th rank to TVS. While none of

the respondents have given 1st, 2nd and, 3rd rank to TVS.

21) Frequency of what problem you face while using the vehicle?

Table 6.21

Criteria No. of respondent

Percentage (%)

89

Starting trouble 35 17.5

Mileage problem 14 7

Pickup 24 12

Battery problem 127 63.5

Total 200 100

Fig. 6.21

17.5%

7%

12%63.5%

Starting troubleMileage problemPickupBattery problem

Interpretation

From the above table clear that 63.5% of the respondents are facing battery

problem while using the Bajaj bike. While 17.5% of the respondents are facing

starting trouble, 12% of the respondents are facing pickup problem and, 7% of

the respondents are facing mileage problem while using the Bajaj bike.

22) Frequency of would you recommended Bajaj bikes to your friends or others?

Table 6.22

90

Criteria No. of respondent

Percentage (%)

Yes 170 85

No 30 15

Total 200 100

Fig. 6.22

Yes85%

No15%

Interpretation

From the above table clear that 85% of the respondents have recommended

Bajaj bikes to his friends or others while, 15% of the respondents have not

recommended Bajaj bikes to his friends or others.

Chi-square test

23) Chi-square between customer monthly income and mileage attribute of Bajaj bike

91

H0: There is no association between customer monthly income and mileage

attribute of Bajaj bikes.

H1: There is association between customer monthly income and mileage

attribute of Bajaj bikes.

Table 6.23

Monthly income * Mileage Attribute Cross tabulation

Count

Mileage Attribute

TotalNo Yes

Monthly income Less than 15000 10 65 75

15001-30000 2 86 88

30001-50000 2 35 37

Total 14 186 200

92

Interpretation

The value of Pearson Chi-square is 7.786 and associated significant p-value is

0.02 which is less than the significance level (0.05) so, researcher reject null

hypothesis. Thus, it is inferred that there is association between customer

monthly income and mileage attribute of Bajaj bikes.

93

Table 6.24

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)

Pearson Chi-Square 7.786a 2 .020

Likelihood Ratio 7.902 2 .019

Linear-by-Linear

Association4.160 1 .041

N of Valid Cases 200

24) Chi-square between customer satisfaction towards price and customer monthly incomeH0: There is no association between customer satisfaction towards price and

customer monthly income.

H1: There is association between customer satisfaction towards price and

customer monthly income.

Table 6.25

Satisfaction towards Price * Monthly income Cross tabulation

Count

Monthly income

Total

Less than

15000

15001-

30000

30001-

50000

Satisfaction

towards

Price

Highly satisfied 1 3 0 4

Satisfied 44 44 26 114

Average 21 32 5 58

Dissatisfied 9 7 4 20

Highly dissatisfied 0 2 2 4

Total 75 88 37 200

Table 6.26

94

Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)

Pearson Chi-Square 12.818a 8 .118

Likelihood Ratio 14.840 8 .062

Linear-by-Linear

Association.020 1 .887

N of Valid Cases 200

InterpretationThe value of Pearson Chi-square is 12.818 and associated significant p-value is

0.118 which is greater than the significance level (0.05) so, researcher fail to

reject null hypothesis. Thus, it is inferred that there is no association between

Customer satisfaction towards price and customer monthly income.

25) Chi-square between customer satisfaction towards comfortable ride and customer occupation

95

H0: There is no association between customer satisfaction towards comfortable

ride and customer occupation.

H1: There is association between customer satisfaction towards comfortable ride

and customer occupation.

Table 6.27

Satisfaction towards Comfortable ride * Occupation Cross tabulation

Count

Occupation

TotalBusinessman Salaried Retired Student Professional

Satisfaction

towards

Comfortable

ride

Highly

satisfied6 9 0 8 0 23

Satisfied 24 31 0 19 0 74

Average 31 20 1 33 1 86

Dissatisfied 6 5 0 0 0 11

Highly

dissatisfied1 4 0 1 0 6

Total 68 69 1 61 1 200

96

Table 6.28Chi-Square Tests

Value df

Asymp. Sig.

(2-sided)

Pearson Chi-Square 17.960a 16 .326

Likelihood Ratio 21.860 16 .148

Linear-by-Linear

Association.413 1 .521

N of Valid Cases 200

InterpretationThe value of Pearson Chi-square is 17.960 and associated significant p-value is

0.326 which is greater than the significance level (0.05) so, researcher fail to

reject null hypothesis. Thus, it is inferred that there is no association between

customer satisfaction towards comfortable ride and customer occupation.

97

26) Chi-square between customer satisfaction towards Look & style and customer ageH0: There is no association between customer satisfaction towards look & style

and customer age.

H1: There is association between customer satisfaction towards look & style and

customer age.

Table 6.29

Satisfaction towards Look & style * Age(in Years) Cross tabulation

Count

Age(in Years)

Total18-30 31-45 46-60

Satisfaction towards

Look & style

Highly satisfied 9 2 0 11

Satisfied 45 28 1 74

Average 42 47 4 93

Dissatisfied 7 8 1 16

Highly

dissatisfied0 5 1 6

Total 103 90 7 200

98

Table 6.30

Chi-Square Tests

Value Df

Asymp. Sig.

(2-sided)

Pearson Chi-Square 17.344a 8 .027

Likelihood Ratio 19.424 8 .013

Linear-by-Linear

Association14.845 1 .000

N of Valid Cases 200

InterpretationThe value of Pearson Chi-square is 17.344 and associated significant p-value is

0.027 which is less than the significance level (0.05) so, researcher reject null

hypothesis. Thus, it is inferred that there is association between customer

satisfaction towards look & style and customer age.

99

27)Chi-square between customer satisfaction towards brand image and customer occupationH0: There is no association between customer satisfaction towards brand image

and customer occupation.

H1: There is association between customer satisfaction towards brand image

and customer occupation.

Table 6.31

Satisfaction towards Brand image * Occupation Cross tabulation

Count

Occupation

TotalBusinessman Salaried Retired Student Professional

Satisfaction

towards

Brand image

Highly

satisfied6 2 0 3 0 11

Satisfied 18 29 1 30 1 79

Average 36 30 0 24 0 90

Dissatisfied 4 7 0 2 0 13

Highly

dissatisfied4 1 0 2 0 7

Total 68 69 1 61 1 200

100

Table 6.32

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 15.583a 16 .482Likelihood Ratio 16.511 16 .418Linear-by-Linear Association

2.874 1 .090

N of Valid Cases 200

Interpretation

The value of Pearson Chi-square is 15.583 and associated significant p-value is

0.482 which is greater than the significance level (0.05) so, researcher fail to

reject null hypothesis. Thus, it is inferred that there is no association between

customer satisfaction towards brand image and customer occupation.

101

28)Chi-square between customer education and maintenance cost attribute of Bajaj bike

H0: There is no association between customer education and maintenance cost

attribute of Bajaj bike.

H1: There is association between customer education and maintenance cost

attribute of Bajaj bike.

Table 6.33

Education * Maintenance cost Attribute Cross tabulation

Count

Maintenance cost Attribute

TotalNo Yes

Education H.S.C. or below 0 21 21

Undergraduate 8 40 48

Graduate 10 113 123

Postgraduate 2 6 8Total 20 180 200

Table 6.34

102

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square 7.182a 3 .066Likelihood Ratio 8.426 3 .038Linear-by-Linear Association

.503 1 .478

N of Valid Cases 200

InterpretationThe value of Pearson Chi-square is 7.182 and associated significant p-

value is 0.06 which is greater than the significance level (0.05) so,

researcher fail to reject null hypothesis. Thus, it is inferred that there is no

association between customer education and maintenance attribute of

Bajaj bike.

103

FINDING

&

CONCLUSION

104

a. Findings

Majority of the respondents belong to the age group of 18 – 30 years.

Majority of the respondents are educated up to graduation level.

The study reveals that most of the respondents who own Bajaj bike earn

from Rs.15001 – Rs.30000.

Majority of respondents are come to know about Bajaj bike from media.

From Chi-square test finding that there is association between customer

satisfaction towards look & style and customer age.

From Chi-square test finding that there is association between customer

monthly income and mileage attributes of Bajaj bikes.

From Chi-square test finding that there is no association between

customer satisfaction towards brand image and customer occupation.

From Chi-square test finding that there is no association between

customer satisfaction towards price and customer monthly income.

From Chi-square test finding that there is no association between

customer satisfaction towards comfortable ride and customer occupation.

From the Chi-square finding that there is no association between

customer education and maintenance cost attribute if Bajaj bikes.

Majority of respondents are prefer bike on the basis of price, mileage,

maintenance cost, and engine capacity attribute of Bajaj.

The study reveals that 57% of the respondents are satisfied with price;

whereas 10% of the respondents are dissatisfied with the price of Bajaj

bikes.

As per survey, 52% of the respondents are satisfied with engine capacity

of Bajaj bike.

67.5% of the respondents are dissatisfied with after sales services

provided by Bajaj.

The study reveals that majority of respondents are dissatisfied with resale

value of Bajaj.

105

The study reveals that majority of the respondents are said average and

majority of the respondents are satisfied with the mileage, look & style,

pickup, colors, maintenance cost, and brand image of Bajaj bikes.

The study reveals that Hero is a 1st rank, Honda is a 2nd rank, Bajaj is 3rd

rank, Yamaha is a 4th rank, Suzuki is a 5th rank, and TVS is a 6th rank.

Majority of the respondents are facing battery problem while using Bajaj

bike.

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b. Conclusion

From the research work it concludes that majority of the customer prefer Bajaj

bikes on the basis of price, mileage, maintenance cost, and engine capacity

attributes. Bajaj need to improve on battery of their bikes; because customers

have facing this problem while using the Bajaj bikes. Bajaj doing very well on its

durability of bikes, comfortable ride, and after sales services for increases their

sales. Most of buyers are satisfied with the price, mileage, look & style provided

by Bajaj. Look & style of bike is associated with age of buyers; whereas there is

no association between occupation and Brand image of Bajaj bikes.

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BIBLIOGRAPHY

108

Bibliography

Websites

n.d. 15 6 2015 <http://www.dmnews.com/digital-marketing/tailor-marketing-strategies-to-customer-preferences/article/208054/>.

n.d. 15 6 2015 <http://study.com/academy/lesson/what-is-customer-satisfaction-definition-examples-quiz.html>.

n.d. 20 6 2015 <http://www.companiesandmarkets.com/MarketInsight/Automotive-and-Parts/Global-Motorcycle-Market/NI8576>.

n.d. 20 6 2015 <http://www.autocarpro.in/analysis-sales/india-sales-analysis-february-2015-7829#sthash.gpnBExoP.dpuf>.

n.d. 22 6 2015 <http://www.autocarpro.in/analysis-sales/india-sales-analysis-february-2015-7829>.

www.acedemic.edu. n.d. 25 6 2015.

Journal Articles

Balasubramani S, Suganthi M , Suresh P. "An Empirical Study on Consumer Preference Towards Hyundai Cars in Salem City." INDIAN JOURNAL OF RESEARCH (2013).

Balasubramani S, Suganthi M, Suresh P. "An Empirical Study on Consumer Preference Towards Hyundai Cars in Salem." INDIAN JOURNAL OF RESEARCH (2013).

Bateson, John E. G. "Customer satisfaction towards Car manufacturer." International Journal of Multidisciplinary Research (June, 2012).

Dr. K. Ravichandran, K. Venkatesh, Dr. R. Muruganandham. "A STUDY ON THE CUSTOMER PREFERENCES OF CAR." International Journal in Multidisciplinary and Academic Research (SSIJMAR) (n.d.).

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Dr. Mrs. PUNITHAVATHY PANDIAN, A ARUNACHALA RAJAN. "A Study on Analysis of the Customer Satisfaction Level Towards the Use of Bajaj Bikes With Special Reference to Tirunelveli Town, Tamilnadu." INDIAN JOURNAL OF RESEARCH (2014).

Dr. N.Yesodha Devi, Mrs. C.Gomathy, Mrs.R.Krishnakumari. "A Study on Consumer Preference and Satisfaction towards Sedan Cars in Coimbtur City." International Research Journal of Business and Management – (2013).

Jani, Kerav Pandya & H. J. "Customer Satisfaction among Two-Wheeler Users An Indian experience – with special reference to motorcycle users." SIES Journal of Management (2011).

John, Mrs. Beena and Dr. S. Pragadeeswaran. "A STUDY OF SMALL CAR CONSUMER PREFERENCE IN PUNE CITY." Asian Journal of Marketing & Management Research (2013).

Kavita Dua, Savita. "STUDY OF CUSTOMER SATISFACTION WITH REFERENCE TO TATA MOTOR PASSENGER VEHICLES." International Journal of Advanced Research in Management and Social Sciences (n.d.).

Mahalakshmi, Mrs.G. "CUSTOMER SATISFACTION ON TWO WHEELERS A SPECIAL REFERENCE WITH TVs XL IN THENI DISTRICT." INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT AND COMMERCE (2014).

Ms. Ameer Asra Ahmed, Dr. M.S. Ramachandra, Mr. Siva Nagi Reddy. "A STUDY ON CUSTOMER SATISFACTION LEVEL OF ROYAL ENFIELD BULLET." International Journal of Business and Administration Research Review (2104).

Ms.M.Shanthini Devi, Ms.S.Arunpriya. "A Study on Customer Satisfaction Towards Tata Nano Car with Special Reference to Coimbatore City." GRA - GLOBAL RESEARCH ANALYSIS (2013).

Rao, Dr. Duggani Yuvaraju(PDF-Scholar)& Prof. S. Durga. "Customer Satisfaction towards Honda Two Wheelers." IOSR Journal of Business and Management (IOSR-JBM) (2014).

Saraswathi, S. "Customer Satisfaction on Post-Sales Service with Reference to Two-Wheeler Automobile Industry." Chaitanya Bharathi Institute of Technology (2008).

Saxena, Aman. "Consumer preference and Automobile Market in India." International Journal of Interdisciplinary and Multidisciplinary Studies (IJIMS) (2014).

V. DEVAKI, DR. H. BALAKRISHNAN. "A STUDY ON THE CUSTOMER PREFERENCE TOWARDS HERO TWO WHEELER AFTER TERMINATION OF HERO HONDA." INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT (2013).

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ANNEXURE

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Questionnaire

I, Ajay Savaliya, am currently pursuing MBA from S. R. Luthra Institute of

Management affiliated to Gujarat Technological University, Surat. As a part of my

curriculum I am conducting a survey on “A study on Customer Preference and Satisfaction towards Bajaj Bikes”. I request you to kindly spare few minutes of

your very demanding schedule to fill up this questionnaire. I assure you that the

views given by you will be kept strictly confidential and will be used for academic

purpose only.

1) How did you come to know about Bajaj bike?

[ ] Friends [ ] Relatives

[ ] Media [ ] Others______________

2) Which model did you buy?

[ ] CT 100 [ ] Pulsar 135LS

[ ] Platina 100 [ ] Pulsar 150

[ ] Discover 100 [ ] Pulsar 150AS

[ ] Discover 100M [ ] Pulsar 180

[ ] Discover 125M [ ] Pulsar 200NS

[ ] Discover 150S [ ] Pulsar AS200

[ ] Discover 150F [ ] Pulsar 220F

[ ] Avenger 220 [ ] Pulsar RS200

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3) Which is/are the most attractive attribute for purchasing Bajaj bike as per

your preference? (Multiple tick allowed)

[ ] Price [ ] Colors

[ ] Mileage [ ] Maintenance cost

[ ] Stylish look [ ] Brand image

[ ] Pickup [ ] Comfortable ride

[ ] Engine capacity [ ] Others_______________

4) What mileage is your bike giving?

[ ] 60Km/Ltr and above

[ ] 50-60Km/Ltr

[ ] 40-50Km/Ltr

[ ] Below 40Km/Ltr

5) While comparing with other bike, the model of the Bajaj bike is?[ ] Good[ ] Need to improve[ ] Can’t say

6) What is your satisfaction level for the following attribute?(1=Highly satisfied, 2=Satisfied, 3=Average, 4=Dissatisfied, 5=Highly dissatisfied)

Attribute 1 2 3 4 5

Price

Mileage

Look & Style

Pickup

Engine capacity

Colors

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Maintenance cost

Brand image

Resale value

Comfortable ride

After sales services

7) Rank the company as per your preference.(Rank 1 higher to Rank 6 lower)

Companies 1 2 3 4 5 6BajajHeroHondaYamahaSuzukiTVS

8) What problem you face while using the vehicle?[ ] Starting trouble [ ] Pickup[ ] Mileage problem [ ] Battery problem[ ] Others______________

9) Would you recommend Bajaj bikes to your friends or others?[ ] Yes [ ] No

Personal information:

Name: _____________________________________________

Age (in years): [ ] 18 – 30 [ ] 31 – 45[ ] 46 – 60 [ ] above 60

Gender: [ ] Male [ ] Female

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Education: [ ] H.S.C. or below [ ] Undergraduate

[ ] Graduate [ ] Post graduate[ ] Others______________

Occupation:[ ] Businessman [ ] Salaried[ ] Retired [ ] Student[ ] Professional [ ] Others_______________

Monthly income:[ ] Less than 15000 [ ] 15001 – 30000[ ] 30001 – 50000 [ ] More than 50000

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