CONSUMER BEHAVIOR PROJECT

ON

TOYOTA

Submitted To: Submitted By:

TOYOTA

Company Profile

Toyota Kirloskar Motor Private Limited

TYPE: JOINT VENTURE

INDUSTRY: AUTOMOTIVE

HEADQUARTER: BANGALORE, KARNATAKA

KEY PEOPLE: MR.RYOICHI SASAKI, CHAIRMAN

PRODUCTS: AUTOMOBILES

PARENT: TOYOTA MOTORS CORPORATION

Toyota Kirloskar Motor Private Limited is joint venture between Toyota Motor Corporation and

the Kirloskar Group, for the manufacture and sales of Toyota cars in India.

It currently is the 7th largest car maker in India after Maruti Suzuki, Hyundai, Tata, Mahindra,

The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission

statement aims to play a major role in the development of the automotive industry and the

creation of employment opportunities through its dealer network and ancillary industries with a

business philosophy of "Putting Customer First”. Recently, the Toyota has introduced the tenth

generation Corolla, christened as, Toyota Corolla Altis, and Toyota Etios Liva in India. It has

also launched a facelift version of the Toyota Innova and Toyota Camry. The Indian car market

has also witnessed a joyful time with the Toyota Land Cruiser Prado launched in the late 2004.

Toyota crept into the burgeoning Indian SUV market with its Land Cruiser Prado SUV adorned

with futuristic features and advanced safety technologies.

OBJECTIVES:

Objectives:

To find out the motivational factor to purchase Toyota car

To find out features/equipment’s/accessories necessary for a buyer for next car

purchase.

To find out the consumer behavior to buy Toyota brand

SCOPE OF THE PROJECT:

The project was limited to Delhi and NCR. The respondents to be surveyed had to be those who

Already have Toyota car

RESEARCH METHODOLOGY:

Type of Research: Descriptive

Sampling Technique: Convenience sampling.

Research Tool: Qualitative

Sampling Universe: All Toyota car user in Delhi and NCR

Sampling unit: Owners of Toyota car

Target market: Men and Women

Age group: 18-50 years

Sample size: 50

DATA COLLECTION:

Primary:

Data collection by personal interaction with the Toyota car user through Questionnaire

Type of interview: Face-to-face

Interview flow:

Eligibility ascertainment of respondent by screening questionnaire

Administration of the main questionnaire

Duration of interview: 10 mins

Secondary: Online collection of data (company website)

DECISION MAKING PROCESS:

Problem statement

New car buyer behavior-quantifying key stages and activities in consumer buying behavior

• Attractiveness of vehicles is the most important motivational factor while considering a particular vehicle.

• Unlikely the price being the main factor, Brand Image, Reliability of the make, the Vehicle itself and exterior appearance of vehicle is an important decision making factor.

Information search

• Majority of consumers consider Internet as the most important and reliable source of information to search about a car.

• People also consider the views of their peer groups who are currently using cars of a particular brand.

• Cognitive research methodology is used.

Alternative evaluation and selection

Most of the consumers preferred Toyota as their favorite make. This was followed by Honda and Maruti respectively. Surprisingly, none of the respondent preferred TATA AND GENERAL MOTORS as their favorite brand. When asked it was told that Tata make good commercial vehicles only and General motors’ besides being expensive, lesser services not suitable for Indian roads.

Outlet selects and purchase

For the selection of the outlet the consumer preferred the Dwarka sec 20 outlet and made the purchase as it was the outlet which was providing the most attractive discounts to the consumers.

Post purchase processes

Toyota U Trust aims to offer potential customers an opportunity to exchange their 'Cars of any make' for a brand new Toyota, allowing them an opportunity to upgrade. It will also, cater to customers who want to exchange their cars for competitively priced used Toyota cars. Customers will also be provided with a wide range of value added services including, finance options at the 'Toyota U Trust' outlets.

Data Analysis:

A. Car Type

Q1. Which Toyota car are you currently using?

Car type No. of responses

Toyota Innova 13

Toyota Etios 12

Toyota Fortuner 10

Toyota Etios Liva 2

Toyota Corolla Altis 5

Toyota Land Cruiser 1

Toyota Camry 3

Toyota Prius 0

Toyota Van 4

Toyota Innova

26%

Toyota Etios24%

Toyota Fortuner20%

Toyota Etios Liva4%

Toyota Corolla Altis10%

Toyota Land Cruiser2%

Toyota Camry6%

Toyota Van8%

Car Type

Interpretation

On asking the respondents on which Toyota car they are currently using it was found that “Toyota Innova” was the most preferred car because of its large seating capacity and lower price as compared to other cars in this segment, also this is the most preferred car for Taxi purpose, it was followed by “Etios” which is family car, followed by “Fortuner” which is a premium segment car.

Q2. Which is the transmission type you are currently using?

Transmission

Type

No. of responses

Automatic 27

Manual 23

54%

46%

Transmission TypeAutomatic Maunal

Interpretation:

On asking the respondents about the transmission type of car they use; 54% of the people said

they use automatic transmission followed by 46% people who use manual transmission cars.

B. Decision Making

Q3. Who is the decision maker of this car at the time of purchase?

Decision Maker No. of responses

I took the decision myself 11

I and my family (Spouse) 18

My Parents were the decision makers 21

I took the de-cision myself

22%

I and my family (Spouse)

36%

My Parents were the decision

makers42%

Decision Maker

Interpretation:

At the time of purchasing the car; 42% of the respondents said that their parents were the

decision makers followed by 36 % of people who said that they and their spouse took the

decision at the time of purchase and 22% said that they took the decision themselves.

Q4. Which of the items listed below were the important reasons when you decided to get this vehicle?

Reasons for choosing the vehicle-General

Reasons No. of responses

Inexpensive list price 1

Attractive discounts 2

Convenient dealer location 2

Attractive payment terms 1

Future resale/trade-in value 0

Availability of parts 2

Reliability of the dealer 3

After-sales service 2

Low repair/parts cost 4

Brand Image 7

Reliability of the maker 12

Liked the Vehicle itself 14

Inexpensive list price

Attractive discounts

Convenient dealer location

Attractive payment terms

Future resale/trade-in value

Availability of parts

Reliability of the dealer

After-sales service

Low repair/parts cost

Brand Image

Reliability of the maker

Liked the Vehicle itself

0 2 4 6 8 10 12 14

No. of responses

No. of responses

Interpretation

In choosing the vehicle itself, the general trend (excluding the issues of features and

performances) is that people do like the vehicle itself and that has been the most prominent

reason for choosing the vehicle. Not only this, people also considered the reliability of car

maker/manufacturers and the brand image of the model.

C. Fuel Type

Q5. Which fuel type you are currently using?

Fuel Type No. of responses

Petrol 21

Diesel 18

CNG 11

Petrol42%

Diesel36%

CNG22%

Sales

Interpretation

On asking the respondents about the type of fuel car they are using it was found that 42% of the users are using Petrol version , followed by 36 % Diesel, and finally the 22% CNG users.

D. Reasons for buying

Q6. What are the reasons for buying Toyota brand?

Reasons No. of responses

Toyota is the most Fuel-efficient full-line automotive manufacturer.

9

Family-Friendly Brand. 7

Toyota has the best overall brand value of any full-line manufacturer on the road today.

6

Toyota has lowest ownership cost of any full-

line car manufacturer.

7

Longest lasting vehicle and most fuel efficient. 1

Greatest Durability of any full-line

manufacturer.

3

Attractive Features 5

Toyota ranked No. 1 in customer satisfaction. 3

Brand Loyalty 4

All the price range are available. 2

Better customer service. 3

Toyota is the most Fuel-efficient full-line automotive manufacturer.

Toyota has the best overall brand value of any full-line manufacturer on the road today.

Longest lasting vehicle and most fuel efficient.

Attractive Features

Brand Loyalty

Better customer service.

0 1 2 3 4 5 6 7 8 9

Reasons for buying toyota brand

Reasons for buying toyota brand

According to the responses gathered it came out that because of Toyota being the most Fuel-

efficient full-line automotive manufacturer and it being a family-friendly brand, people prefer it

more.

Q7. What do you like about the Toyota car which you are currently using?

Reasons No. of responses

Seat belt warning 5

Driver Seat Height Adjustment 7

Anti-Theft Device 6

Parking Sensors 3

Airbags 2

Keyless Entry System 3

Fog Lamp 1

ABS1

Rear Air Conditioner 4

Tilt & telescopic Steering 2

Electrically Operated Side View Mirror 5

HID 4

Cruise Control 1

Sunroof/Moon roof 1

Rain Sensing Wiper 4

Curtain Shield Airbag +Side Airbag 1

Start & Stop System 0

Seat belt warningDriver Seat Height Adjustment

Anti-Theft DeviceParking Sensors

AirbagsKeyless Entry System

Fog LampABS

Rear Air ConditionerTilt & telescopic Steering

Electrically Operated Side View MirrorHID

Cruise ControlSunroof/Moon roofRain Sensing Wiper

Curtain Shield Airbag +Side AirbagStart & Stop System

0 1 2 3 4 5 6 7

No. of responses

No. of responses

Interpretation

The respondents were asked to choose, from a list of 17 features/equipments, their desired car

features they wish to see in their next purchase of car. Features like “seat-belt warning”, “anti-

theft device”, “driver seat height adjustment”, “parking sensors”, “airbag” and “keyless entry

system” were on the wish list of a large number of respondents.

Q8. What improvements do you want to make in the car you are currently using?

Reasons No. of responses

Seat belt warning 1

Driver Seat Height Adjustment 1

Anti-Theft Device 3

Parking Sensors 5

Airbags 2

Keyless Entry System 3

Fog Lamp 1

ABS5

Rear Air Conditioner 4

Tilt & telescopic Steering 2

Electrically Operated Side View Mirror 4

HID 4

Cruise Control 4

Sunroof/Moon roof 1

Rain Sensing Wiper 4

Curtain Shield Airbag +Side Airbag 4

Start & Stop System 2

Seat belt warning

Driver Seat Height Adjustment

Anti-Theft Device

Parking Sensors

Airbags

Keyless Entry System

Fog Lamp

ABS

Rear Air Conditioner

Tilt & telescopic Steering

Electrically Operated Side View Mirror

HID

Cruise Control

Sunroof/Moon roof

Rain Sensing Wiper

Curtain Shield Airbag +Side Airbag

Start & Stop System

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

No. of responses

No. of responses

People would like to make improvement in the parking sensors and ABS of the brand following

by rain sensing wiper, cruise control and HID. Few of the respondents would also like

improvement in the seat belt and driver seat height adjustment.

E. Motivational factor for buying a car

Q9. What are the reasons for buying Toyota brand?

Reason for Buying

Toyota Brand

No. of responses

Attractive Vehicle 16

Social Status 21

Transportation 13

Attractive Vehicle32%

Social Status42%

Transportation26%

No. of responses

Interpretation

A majority of respondents (42 %) went by the social status they were carrying and another 32%

per cent people went by the look of the vehicle. Some people (26 %) also bought cars for the

transportation purpose as Toyota has a good fuel efficiency in its cars.

A. Source of Information

Q10. Which of the following are most influential ones for deciding to buy this vehicle?

Influential Factors No. of responses

Internet 17

Visit Sales Outlet 27

Talking to Salesman 6

Internet34%

Visit Sales Outlet54%

Talking to Salesman12%

No. of responses

Interpretation:

On asking people which factor is most influential in deciding to buy this brand most; 54% of

people said that visiting sale outlets gives them an overview of which model to buy followed by

34% of people who that they get influenced by internet and reviews given there whereas only

12% of people said that they get influenced by talking to salesman.

F. Respondent Profile

Q11. What is your educational background?

Educational Background No. of responses

Up to 10th 0

Up to 12th 0

Graduate 29

Post Graduate 21

Graduate58%

Post Graduate42%

No. of responses

Interpretation:

On asking the educational background of the respondents 58% of people said that they are

graduates and mostly from business families followed by 42% of people who are postgraduates.

Q12. What is your current Age?

Age No. of responses

18-25 26

26-35 12

26-45 8

More than 45 4

18-2552%

26-3524%

26-4516%

More than 458%

No. of responses

Interpretation:

On asking the respondents about their current age, 52% said that their age is between 18-25 followed by 24% who said that their current age is between 26-35, 16% of people said that their current age is between 26-45 and only 8% of people said that their current age is more than 45 years.

Q13. What is your monthly Income?

Monthly Income No. of responses

35000 – 50000 15

51000 – 75000 30

76000 – 100000 3

More than 100000 2

35000 – 5000030%

51000 – 7500060%

76000 – 1000006%

More than 1000004%

No. of responses

Interpretation:

On asking the respondents about the monthly income they earn, 60% of people said that their

current monthly income is between 51000-75000 followed by 30% of people whose monthly

income is between 35000-50000. Only 6% people said that their monthly income is between

76000-100000 and only 4% have more than 100000 of monthly income.

Q14. Please tell me the preferred mode of payment?

Mode of Payment No. of responses

Cash 15

Bank 35

Other financial institution 0

Cash30%

Bank70%

No. of responses

INTERPRETATION:

As we know that, now a day’s mostly people preferred payment mode through bank as compared

with cash payment. As banks in India are playing a vital role in providing consumer credit to the

people. While coming to car loan portfolios, private sector banks have a leading stake in

providing a car loan to the Indian buyers collectively. On asking respondent 70% preferred Bank

to make payment and 30% Prefer cash.

G. Response

Q15. What was your response after using Toyota brand?

Satisfaction/Dissatisfaction No. of responses

Highly Unsatisfied 0

Unsatisfied 0

Neutral 5

Satisfied 39

Highly Satisfied 6

Neutral10%

Satisfied78%

Highly Satisfied12%

Satisfaction/Dissatisfaction

INTERPRETATION:

As we can see response’s of the customer who is using Toyota car, they are fully satisfied with

the car and its brand. As Toyota manufactures car with low manufacturing cost and perfect

quality, so it requires low maintenance cost and after sales services are satisfactory for Toyota

customers. 78% respondent is satisfied with the car and 12% are highly satisfied and rests 10%

are neutral, no negative feedback for Toyota car.

16. Which body type you consider most in your next purchase?

Next purchase

Body type No. of responses

Sedan 15

Hatch back 11

SUV 14

MPV 10

Sedan Hatch back SUV MPV0

2

4

6

8

10

12

14

16 15

11

14

10

Next Purchase

INTERPRETATION:

About 15% respondent considered sedan as their next purchase. It is followed by 14% and 11%

for SUV and hatch-back respectively. Only 10% considered MPV as their next purchase.

RECOMENDATIONS:

1. Majority considered ‘Toyota’ as their favorite make for car buyers residing in Delhi and NCR. Toyota can build its marketing strategy according to the current trend prevailing among the car buyer.

2. They may promote their new launch at their own website or Social Networking sites as majority respondents prefer internet as their major information source.

3. Again the PRICE of car launched and promoted by Toyota should be comparative to the similar cars present in market as ‘list price being expensive’ was major reason of switching to any other brand.

4. Toyota may tie up with public sector banks for financing of car buyer. They can have some agreement with these banks that come with some attractive loan schemes for their prospective buyers.

5. Toyota, already known for its customer service and quality, should focus on building its brand and reliability in India.