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SUMMER PROJECT REPORT
ONTHE CONSUMER BEHAVIOUR WHILE
PURCHASING THE VEHICLES PARTS
SUBMITTED TO: SUBMITTED
BY :
MS. MALIKA RANI KM. ANSHUCHAUDHARY
ROLL NO RQ2004 AO3
ACKNOWLEDGEMENT
I proudly present my project on the consumer s behaviours
while purchasing the vehicles parts
I sincerely hope that I have done Justice and the best support
and guidance under submission of this summer training
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project and bought the knowledge imparted by Faculty Ms.
Malika Rani mam, Lovely professional University.
TABLE CONTENT
INTRODUCTION
CONCEPTUAL FRAMEWORK
OBJECTIVE OF THE PROJECT
RESEARCH METHODOLOGY
LIMITATIONS THE PROJECT
FINDINGS
SURVEY ANALYSIS
CONCLUSION
KEY FINDINGS
BIBLIOGRAPHY
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QUESTIONNAIRE
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.
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CONCEPTUAL FRAMEWORK
Buyer behaviour in the purchasing vehicles parts
The purpose this project is to gain a better understanding , factors that influence
consumer buying behavior in vehicles parts Specifically, we considered a number
internal factors that influence consumer behavior including perception, motivation ,
learning. Ialso examined how a consumers attitude, which is a lasting evaluation a
person, object, or issue, can affect what they buy.
I reviewed other factors that influence consumer purchasing decisions , buying behavior
including personal, social, , situational issues. The personal influences on consumers are
important determinants their needs , wants. Such factors as age, income, family
status, , chosen lifestyle are strongly related to the types products people buy , the
specific brands , they select.
I examined the stages the consumer decision-making process for buying a problem
recognition, information search, evaluation alternatives between different brands ,
product choice , post purchase evaluation with respect to after sales service, customer
relationship, , resale value the vehicle I also addressed the impact the amount effort
expended , perceived risk; factors associated with relative importance , perceived
consequences the purchase, from the consumers perspective.
PROJECTS OBJECTIVES
1. To study how internal factors influence consumers decision-making processes for
buying the vehicles parts.
2. To study the repurchase, purchase, , post purchase activities consumers engage
in when making decisions purchasing new vehicles parts
3. Understands , how situational factors can influence consumer behaviour.
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4. Describe how consumers relationships with other people , sources influence
their decision-making processes.
Influences on the Consumer Purchase Decision Process
Marketing mix influences Product
Price
Promotion Place
Psychological Influences Motivation
Personality
Perception Learning
Values, beliefs
, attitude
Lifestyle
Source: Consumer Behaviour by Leon G. Schiffman & Leslie Lazar Kanuk
6
Consumer Decision Process
Problem recognition
Information search Alternative evaluation
Purchase decision
Post purchase behavior
Socio-culturalInfluences
Personal influence
Reference groups
Family Social class
Culture
Subculture
Situational Influences
Purchase task Social surroundings
Physical surroundings
Temporal effects
Antecedent states
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1) Marketing Mix Influences:
The Marketing Mix Influences - Marketing mix is used to reinforce the advantages the
vehicles parts carefully reflecting its core values , positioning. It confirms how , why it
will be interest to various segments the vehicles parts -buying public.
Product Reflecting the Branding ,
In branding , , market positioning, branding , wishes to communicate a number key
attributes the vehicle parts. The brands positioning statement is designed to convey
the product advantages , the character the model in a way that will best attract the
target market.
Place Getting the Product o the Customer
In order to succeed at getting the product to the consumer, the companies employs
national or International network agents or dealers who carry cars , other marques
(car br ,s e.g. Honda City). This means that support should be given to the dealers around
to promote the model in a way that generates them, for the vehicles parts..
Price Reflecting the Positioning Strategy
The company should have a clear understanding its key target market for e.g. (Young
people , other price-conscious car buyers) for small car segment , should design-pricing
strategies to best address their needs , the positioning the vehicles parts.
Promotion Communicating
Publicity in the form motoring reviews test drives are critical to the success a trade
launch as this activity should generate sufficient consumer curiosity , interest in the new
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models. By getting potential vehicles parts buyers to test drive a car, product usage
increases. This has a knock on effect to vehicles parts sales. The primary above the line
medium used to promote communicate vehicles parts is through advertising. The
choice TV , outdoor advertising makes perfect marketing sense.
2) Socio-Cultural Influences:
a) Cultural Influences:
Culture: An overall culture Indian people with special reference to Delhites is based on
egoism. People in Delhi are very egoists. For Example: Suppose ones neighbour, friend
or relative buys a br , like Honda, irrespective one having money or not one would
target to buy the same brand , or a better brands , just to outshine his personality. Also,
easy availability loans , schemes has helped them to achieve their goals. This nature
people has also led to the increase in the vehicles parts sales.
Caste or status: The divisions between the castes are reaffirmed on a daily basis,
especially in rural areas, by many forms languages , etiquette. Each caste uses different
personal names , uses slightly different forms speech, so it is ten possible for people to
determine someones castes as soon as the person begins speaking. Persons lower rank
behave politely by addressing their superiors with honorable formulas.
The modern urban environment makes excessive concern about castes niceties
impossible; all kinds people squeeze into buses with few worries about intimate
personal contact. Employment, health , educational opportunities are ficially open for
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all, without prejudice based on casts. In urban slums, the general breakdown social
organization among the destitute allows a wide range intercastes relationships.
Despite the near invisibility castes in public life, castes based factions exits in all
modern institutions, including political parties, , when it comes to marriage- the true test
adherence to ritual purity-the overwhelming majority unions occurs between members
the same caste.
Thus we see that the society India was in past a very caste oriented society, but with
times it is changing. But still their exits some traces the caste system in the daily lives
Indians with special reference to people Delhi. Thus we need to put the cars in the
category basic requirements people due to the underdeveloped , erratic transportation
system. So since a car satisfies the basic transportation need, communicating need, safety
need , also personal need for others, which is very basic in nature, it appeals to people
all classes in a similar manner. Hence it is a Product for all.
Sex Sub Culture: All the ethnic groups in India with special reference to Delhites
preserve a clear distinction in the roles the sexes. Women are responsible for cooking,
raising children, , taking care the housework. The mans job is to protect women ,
children to provide them with material support.
At the center the system are children, who mix freely until puberty , receive great deal
affection from both sexes. As they enter their teens, children begin to adopt the adult
roles that keep them in separate worlds: girls help with the household chores , boys work
outside the home. Among the middle , upper income groups, however, education may
last into their early twenties, , women may mix with males or even take on jobs that
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were in past preserved for men. Today women have achieved great heights in all fields ,
vital efforts are being made for equality but still in India its the female who is forever
subordinate to the man. But when it comes to the household duties , taking decisions for
the family it the women who fully contribute for the final decision making process.
b) Social Influences:
The consumers behaviour is also influenced by (other) social factors as:
Reference groups
Family
Social rules , statuses
c) Reference Groups
A persons reference groups consist all social groups that have a direct (face to face) or
indirect influence on the persons attitudes or behaviour. (Kotler, 2000, p. 163-164)
Two types reference groups:
Membership groups are the groups, to which the person belongs,
Family, friends, neighbours, coworkers (primary groups)
Religious, political, pr essional groups (secondary groups)
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Non-membership groups are the groups to which a person not belongs, but which
influence the attitudes , behaviour the person. E.g. A Celebrity influencing the
personality , attitude a person.
Family
Family members constitute the most influential primary reference group shaping the
buyers behavior. This family is the most important consumer-buying organization in
society.
d) Personal Influences:
A buyers decisions are also strongly influenced by personal characteristics, so the
Age , Life-cycle Stage
People buy different goods , services over their lifetime: They eat baby food in the early
years, most foods in the growing , maturing years, , special diets in the later years. With
reference to the cars a younger person may dem , a sportier looking car whereas an older
person would go for a more comfortable , spacious car.
Occupation
A persons consumption pattern is also influenced by his or her occupation. A white-
collar worker will buy other vehicle as a blue-collar worker.
Economic circumstances
Peoples economic circumstances consist their:
Spendable income
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Savings , assets
Borrowing power
Attitude toward spending , saving.
Lifestyle
People coming from the same subculture, social class, occupation but may lead different
lifestyles. A persons lifestyle in the persons pattern living in the world as expressed in
the persons activities, interests, , opinions. Lifestyle portrays the whole person
interacting with his or her environment.
Personality , Self-concept lead to the Psychological factors.
Personality means the persons distinguishing psychological characteristics.
Self-Concept (or self image) means our image ourselves. The self-expressive benefit
that a br , car relates to the ability a br , to help a consumer to communicate his or her
self-image. Since consumers have multiple roles, the consumer has an associated self-
concept , a need to express that self-concept. The purchase , use br ,s is one way to
fulfill the need for self-expression. For example: consumer, who may define him/herself
as successful , powerful by driving a Mercedes Benz.
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Model Purchase Decision Process
Problem recognition:Perceiving need
Source: Kotler 2000
1) Need Recognition:
The need for the car emerges from a number factors like:
1) The basic transportation need
2) Increase in the family size
3) Upgrading for a better car
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Information search:Seeking value
Alternative evaluation:Assessing value
Purchase decision:
Buying value
Post- Purchase behavior:Value in consumption
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4) First time buyer upgrading from a two-wheeler
All these factors help to satisfy the basic transportation need, communicating need,
safety need (safe transportation) , Ego needs like status, respect , prestige.
Psychological Influences: Maslows Hierarchy Needs
Source: Schiffman Kanuk
14
Personal NeedsStatus, respect, prestige
Social NeedsFriendship, belonging, love
Safety NeedsFreedom from harm, financial security
Physiological NeedsFood, water, sex, oxygen
Self-actualization
needs
Self-fulfillment
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2) Pre-purchase search: Information search
An aroused consumer will be inclined to search for more informations. What sourcesinformations are used to help arrive at a decision?
Consumer informations sources fall into four groups:
(1) Personal sources: Family, friends, , neighbours
(2) Commercial sources: Advertising, salespersons, displays
(3) Public sources: Mass media, consumer-rating organizations
(4) Experiential sources: H ,ling, examining, using the product.
Normally, the amount consumer search activity increases as the consumer moves from
situations limited problem solving to extensive problem solving.
The pre purchase search for the car includes the survey the options
available on the basis the following:
a) Price
b) Size, space , comfort
c) Easy availability
d) Brands
e) Features
f) Fuel efficiency
g) Low- maintenance cost
h) Re-sale value
i) Reputation the company
j) Style
k) Credit facility , Discounts
The external sources relied on the above data are:
1) Dealers guidance
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2) Marketing efforts used by the Company
3) Word mouth
4) Friends, relatives , pear groups.
5) Family members
6) Past experience with a brands
The internal sources are the:
Psychological Field:
1) Motivation: As vehicles parts satisfies a safe transportation , communicating need,
safety need, , personal need the consumer, the motivation is basic in nature. Also
Delhites pose an inclination towards buying a car due to underdeveloped , erratic public
transportation system , long distances in Delhi.
The degree the perceived risk involved in the purchase the car is more therefore the
consumers use large , extensive search , evaluation tactics. On analyzing the responses
from the questionnaire I infer that the customers in Delhi spend a lot time in the
search , purchase decision vehicles parts.
2) Personality: Ownership a car is a reflection who you are. Driving a particular
feels its an expression the personality. Moreover Delhites believe that their personality
is mirrored through the choice their cars.
3) Perception: A positive experience leads to the formation a positive perception about
a brands vehicles parts a negative experience with a brands would reduce the brands ,
image , hence brand loyalty.
4) Attitudes: People buy cars for all sorts reasons. Some just want a reliable vehicle
that will get them from one destination to another. For few, it is the symbol prestige,
status , self-image. For others, it is the potent symbol independence.
5) Beliefs: Beliefs are a consumers subjective perception how well a product or brands
, performs on different attributes. Beliefs are based on personal experience, advertising, ,
discussions with other people
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6) Learning: The purchase vehicles parts follows an experiential learning process. This
is so as the experience tends to alter the purchasing behaviour the customer. This is so
because it concerns his or her familys risk. So if the customer derives satisfaction from aparticular brands , car it would go in for further purchases or recommend others about
that particular brands , or else would switch.
3) Evaluation the Alternatives:
When evaluating the potential alternatives, consumers tend to use two types
information:
1. A list brands ,s (or models) from which they plan to make their selection
(evoked set).
2. The criteria they will use to evaluate each brands , (or model).
The automobile industry is basically divided into three segments: Mini cars (Alto, Santo,
Zen, Indica, Wagon R, Palio, Swift), Mid segment cars (Accent, Ford Icon, Esteem,
SX4, Verna, Honda City ) , Luxury segment (Octavia, Honda Accord, Sonata,
Mercedes). Making a selection from sample all possible brands ,s (or models) is a
human characteristic that helps simplify the decision making process.
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Purchase Decision Process: The Criteria for vehicles parts Purchase
Factor Most Important Factor (%)
Ease maintenance/repair 61%
Quality compared to other brands 61%
Price compared to other brands 58%
High-quality brands 54%
Style/look brands 46%
4) Decision Making:
The purchase vehicles parts is Extensive , Extended decision-making process.
This is because: A car or an automobile is a High involvementproduct.
TYPES CONSUMER PROBLEM-SOLVING PROCESSES
Routenized
Used when buying frequently purchased, low cost items
Used when little search/decision effort is needed
E.g., buying a quart orange juice once per week
Limited problem solving
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Used when products are occasionally purchased
Used when information is needed about an unfamiliar product in a familiar product
category
Extended problem solving
Used when product is unfamiliar, expensive, or infrequently purchased
E.g., buying a new car once every five years
Purchase Decision Process: Involvement & Problem
Solving Variations
Low Routine problem solving
(E.g., milk , bread)
Limited problem solving(E.g., small appliances)
Extended problem solving
(E.g., stocks , cars)
High Low
Source: Consumer Behaviour by Leon G. Schiffman & Leslie Lazar Kanuk. p.549
Purchase Decision Process: Four Types Buying Behaviour
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Level Involvement
Complex
Dissonance -
Reducing
High Low
Source: Consumer Behaviour by Leon G. Schiffman & Leslie Lazar Kanuk. p.549
Buying vehicles parts is a complex decision making process since the Brands ,
difference is significant , the level involvement is also high since buying a car is next
to the purchase a house due to the costs , other risks involved.
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Variety-seeking
Habitual
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High Involvement:
1. It is expensive also has a lot risks attached to it like emotional risk, functional
risk, financial risks etc, , can have serious personal consequences ,/or reflect ones
social image.
2. It typically entails extensive information search, consideration several product
attributes , brands the formation attitudes, , word- -mouth communication.
3. Purchase Behaviour & Post Purchase Evaluation:
We have inferred that the people in Delhi uses the conjunctive decision Rule , compare
the various alternatives on the basis Brands , price, Fuel consumption for buying the
vehicles parts.
The output consumer decision-making is the post purchase evaluation.
The car seems to satisfy a number needs posed by the customer as majority replies
showed its repurchase, post consumption (not necessarily the same brands , or model) if
they had the resources to buy. This shows that:
1) Actual performance meets the promises made to the customer.
2) Or its consumption has delivered the desired results.
.
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OBJECTIVE S OF THE PROJECT
1. Analyze the consumer behaviour purchasing the vehicles parts in
India.
2. To do comparative study various attributes of vehicles partsavailable in India.
3. To identify the difference in market performance various segment
cars.
4. To compare various parameters customer satisfaction for the
vehicles parts
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RESEARCH METHODOLOGY
Research Design:
Definition: "A research design is the arrangement condition for collection , analysis
data in a manner that to combine relevance to research purpose with economy in
procedure".
Research design is a conceptual structure within which research is conducted. It
constitutes the blueprint for the collection, measurement analysis data. Research
design is needed because it facilitates the smooth sailing the various research
operations, thereby making research as efficient as possible yielding maximum
information with minimum effort, time , money. Research design for advance planning
methods to be used for collecting the relevant data , the techniques to be used in their
analyses. Preparation research design should be done with great care as any error may
upset the entire project. Therefore it is imperative that an efficient design must be
prepared before starting research operations. The design helps the researcher to
organize his ideas in a form whereby it will be possible for him to look for flaws ,
inadequacies.
The following questions have to be answered in a research design:
1. What is the study about?
2. Why is the study being made?
3. Where will the study be carried out?
4. What type data is required?
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5. Where can the required data be found?
6. What periods time will the study include?
7. What will be the sample design?
8. What techniques data collection will be used?
9. How will the data be analyzed?
.Source Secondary Data
The major aim the study was to analyze the competition on the market. Therefore I
need to gain knowledge about the. Vehicles parts. In order to accumulate this
knowledge all kind secondary data was collected to get the relevant information.
Secondary data sources were:
Internet sites
Company Annual Report
Reference books , Auto magazines.
Methodology for Collection Primary data:
Conducting a questionnaire survey keeping in mind the following was used to collect
the primary data:
Identification the right , relevant target group.
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Use Close-ended Structured undisguised questionnaire to be filled by the
target.
Comparison , analysis results.
The questionnaire was used to determine the following
a Examine the psychographics potential vehicles parts customers
b Probe the buying behaviour car owners/non car owners
c Find out the expectations people regarding the vehicles parts
d To judge the awareness level vehicles parts its competitors amongst people
e To find out the customer perceptions about vehicles parts.
Sample selection:
The sample was selected using judgment sampling
Target Respondents vehicles parts Owners in , around the Lucknow.
The sample size was restricted to 50 respondents only.
Assumptions:
The sample size represents the entire population vehicles parts owners.
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The respondents do not give biased answers.
These were some the sources through which up-to-date relevant data was
collected. It is one the best methods to collect data because economy in terms
time ,money.
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LIMITATIONS THE PROJECT
1. Survey was only conducted in Lucknow.
2. Limited numbers questionnaires were filled in different age groups
due to time constraint.
3.The final results are based on the responses the respondents, which
may be biased.
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s
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MANUFACTURER: HYUNDAI MOTOR INDIA
Sonata
Body Three Box 4 door Saloon
Brakes
Front Disc
Rear Disc
Type Diagonal,dual circuit,hydraulic,power assisted
Dimension & weight
Fuel Tank capacity 70 (mm)
Ground Clearance 170 (mm)
Kerb weight 1443/1529 (Kg)
Overall Height 1475 (mm)
Overall Length 4800 (mm)
Overall Width 1832 (mm)
Wheelbase 2730 (mm)
Engine
Displacement 2359 (cc)Ignition Electronic Distributorless
No. cylinders /
arrangement / Valves4 cyl in-line,DOHC, 16V
Transmission 4 - Speed H-Matic
Performance
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Max. Power 165/5800
Max. Torque 23.6/4250
Steering
Min. Turning Radius 5.46 (m)
Type Rack & Pinion
Suspension
FrontIndependent Double Wishbone with coil spring , gas shocks, stabilizer bar
RearFully independent Multi-link with coil springs, Gas shocks ,anti- roll bar
Tyres & Wheels
Type Aluminum Alloy
Tyres 215/60 R16 (Tubeless)
Tyres 6.5j x 16
Comforts
Rear Map Reading Lights Front Map Reading Lights
Room Lamp with delayed f
Trunk Light
Glove Box With Cover, Illumination , lock
Cigar Lighter with Illumination
Front Ashtray with Illumination
Rear Ashtray
Door-mounted Full-size Armrest (Front & Rear)
Rear Centre Armrest with Cup Holders
Pull Strap on Rear Centre Armrest
Double level Front Centre Armrest
Front Door Map Pockets
Body Coloured Outside Door H ,les
Door Opening Knob Inside Chrome
Assist Grips
Coat Hooks on Assist Grips
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Clutch Footrest
Door Courtesy Lamp
Std Door Scuff
Low Fuel Warning Lamp
Power outlet in trunk
RHD Controls
Chrome Gear Shift Knob
Chrome Surround Gauge
Crash Pad mounted Ignition switch
Illuminated Ignition
Instrument panel Illumination Control
Adjustable Front seat Headrest
Adjustable Rear seat Headrests Lockable Fold down rear seat back
8-Way Adjustable Driver seat
Tilt-Steering
Driver Seat Lumbar support
Moquette Seats & Trim
Air Conditioning with Heater
Steering Wheel
Rear A/C Duct
Power Windows ( Front & Rear) with Auto-down
Power Window operation after Ignition cut- f Power Steering
Electric Adjustable ORVM
Retractable Power ORVM Housing
Headlamp Assist (levelling)
Woodgrain Fascia
Alloy Wheels
Tachometer
Carpet Floor Mats
Battery Saver
Sunglass Holder
Electric Fuel filler & Trunk Release
Luggage Tray in Spare wheel in trunk
Retracting Seatback Pockets
Digital Clock
Hood & Trunk Gas Lifters
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Ticket Holder
Vanity Mirror
Safety & Aesthetics
Dual-Member Side Impact Protection
Front Seat Belts
Height Adjustable Front Seat Belts
Rear Seat Belts
Child-Safety Rear Door Locks
Energy Absorbing Collapsible Steering Column
Central Door Locking
Day & Night Mirror
HMSL
Anti Submarine Seats
Driver Side Air Bag
Passenger Side Air Bag
Immobilizer
Keyless Entry with Security Alarm
ABS
Seat Belt Pretensioner with Load Limiter & buckle sensor
5-mph Bumpers
Laminated Windscreen
Rear Defogger Front Mud Guard
Rear Mud Guard
Twin Exhaust
Front Fog Lamps
Headlamps (Projection Lamps)
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MANUFCATURER: MARUTI UDYOG LTD
SX4
Body Three Box 4 door Saloon
Brakes
Front Ventilated Disc
Rear Drum, leading / trailing
Type Vacuum assisted hydraulic
Dimension & weight
Front Track 1440 (mm)
Fuel Tank capacity 51 (Litre)
Gross Vehicle Weight 1500 kgs
Ground Clearance 170 (mm)
Kerb weight 975 (kg)
Overall Height 1390 (mm)
Overall Length 4225 (mm)
Overall Width 1690 (mm)
Rear track 1435 (mm)
Wheelbase 2480 (mm)
Engine
Bore x stroke 75.0 x 90.0 (mm)Compression ratio 9.2 +/- 0.2:1
Displacement 1590 (cc)
Fuel System Multi Point Fuel Injection
No. cylinders /
arrangement / Valves4 cylinder, in-line, 16 Valves
Type All- Aluminium contemporary, SOHC
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PerformanceMax. Power 94 bhp @ 6000 rpm
Max. Torque 132 Nm @ 3000 rpm
Steering
Min. Turning Radius 4.9 (m)
Type Rack , pinion with hydraulic power assistance
Suspension
Front
Mc Pherson strut & coil spring with an L shaped lower
arm , anti roll bar
RearMc Pherson strut & coil spring with parallel link
arrangement
Transmission
Transmission type 5 Forward, all-synchromesh
Tyres & Wheels
Tyres 165 / 80 R 13
Comforts
(2-speed + time controlled intermittent)
3-Spoke urethane steering wheel
Air Conditioner Illumination System
Alloy wheels
Ash Tray Illumination
Assist Grips- 3 Nos.
Back door/trunk lid opener
Cabin lights (3 Positions)
Chrome plated front grill Chrome plated window lining
Cigarette Lighter
Coloured Bumpers
Cup Holder
Day/night inside rear view mirror
Electric Windows
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Electrically adjustable outside rear-view mirror
Electrically Operated A/C Louvre Switches
Fabric material for front , rear seats
Floor mats
Foot Rest
Front & Rear Mud Flaps
Front door armrests
Front door pockets (both Sides)
Front seat back pockets
Front seat height adjuster (driver's side)
Fuel lid opener
Green tinted glass
Heater
Instrument Panel Light Adjuster
Instrument panel light intensity adjuster
Key Not Removed' Warning Buzzer
Leather Steering Cover
Light- f Reminder
One coat hook
Power antenna
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Rear ashtray
Rear seat centre armrest
Rear spoiler with LED stop lamps
Reclining , sliding front seats
Semi-concealed windshield wiper
Shade b , on windshield
Silver finish centre console
Stereo with AM/FM, Remote-control, digital clock , 4 speakers
Sun visor (Both Sides)
Tachometer
Ticket holder (driver's Side)
Tilt Adjustable Power Steering
Tripmeter
Trunk room light
Vanity mirror (passengers side only)
Velour carpet for luggage compartment
Velour floor carpet
Safety & Aesthetics
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Adjustable front seat head restraints
Central Door Locking
Child-pro rear door locks
Collapsible steering column
Height adjustable front seatbelts
Lockable glove box
Rear seat belts
Rear window demister
Remote keyless entry
Side impact beams
Side protective moulding
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MANUFACTURER: MITSUBISHI MOTORS LTD.
Cedia
Body 3 Box 4 Door Sedan
Brakes
Front Ventilated Disc Brakes
Rear Leading & Trailing Shoe Drum Brakes
Dimension & weight
Fuel Tank capacity 50 (L)
Ground Clearance 185 (mm)
Overall Height 1430 (mm)
Overall Length 4290 (mm)Overall Width 1690 (mm)
Wheelbase 2500 (mm)
Engine
Type 4 cyl. Inline SOHC 8Valve IDI Diesel
Performance
Max. Power 68 / 4500
Max. Torque 12.5 / 3000
Suspension
Front Front McPherson Strut & Coil Spring with stabiliser bar
RearRear Independent Multi-link Suspension with stabiliserbar
Transmission
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Transmission type 5-speed Manual
Tyres & Wheels
Tyres 175/80R13
Comforts
Air Conditioner with Rear Dust
Power Steering
Tilt Steering Column
Power Window
Center Door Locking
Rear Defogger
High Adjuster (Driver Seat)
Door Mirror
80W / 130W Power Tuner / MP3 CD Player
High Back Rear Seat With Central Arm Rest
Front Seat Head Restraints
Leather Insert (XL Type) Steering Wheel
Safety & Asthetics
Collapsible Breakable Steering
Side Impact bars
Centrally Mounted fuel tank
Integral Front Head Lamps Rear Combination lamp
Muffler Cutter
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MANUFACTURER: TOYOTA KIRLOSKAR MOTORS LTD
Camry 2.4L A/T
Body Three Box 4 door Luxury Sedan
Brakes
Front Ventilated Disc
Rear Solid Disc
Dimension & weight
Front Track -
Fuel Tank capacity 60 Litres
Gross Vehicle Weight 1985 mm
Ground Clearance 160 mm
Kerb weight 1470 - 1545 kgs
Overall Height 1480 mmOverall Length 4815 mm
Overall Width 1820 mm
Rear track 1575 mm
Wheelbase 1775 mm
Engine
Bore x stroke 88.5 mm X 96.0 mm
Compression ratio 9.8 : 1
Displacement 2362 cc
Fuel System EFI
No. cylinders /
arrangement / Valves4 cylinders, In line type, 16-valve DOHC, with VVT-I
Performance
Max. Power 123 kw (167 ps) / 6000rpm
Max. Torque 224 Nm (22.8kg-m) / 4000 rpm
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Steering
Min. Turning Radius 5.5 m
Type Rack , Pinion Power steering
Suspensions
Front MacPherson strut
Rear Duel link strut
Transmission
Transmission Type 5-speed A/T with ECT
Tyres & Wheels
Tyres 215 / 60 R 16 Radial
Wheel size -
Comforts
Design Concept
HID Projector type Headlamp
Rectractable headlamp cleaner
Auto Light Control System
Rear Combination Lamp
Aero Wiper Blades
Rain sensing Wipers
New 16" alloy Wheels
hydrolic Outer Rear View mirror
Printed Antenna
Large glove Box
Accessory box
Ashtrey
cup Holder
Front console side pocket
Console Box
Accessory box behind shift
Behind sun visor
Front door pocket
Seat back pocket
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Safety & Asthetics
Vehicle Stability control
Large diameter disc brake
ABS with EBD
Brake assist
Impact absorbing structure
SRS Airbags
Seat belt -pretensioner , force limiter
Head impact protection
WIL ( Whiplash Injury Lessening)
Pedestrian injuiry reduction structure
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TOYOTA KIRLOSKAR MOTORS LTD
Corolla 1.8 G Automatic
Body Three Box 4 door Sedan
Brakes
Antilock brake system Not Available
Front 140mm ventilated discs
Rear 140mm solid discs
Dimension & weight
Front track 1480 mm
Fuel Tank capacity 50 litres
Ground clearance 180 mm
Kerb weight 1185 kgsOverall Height 1500 mm
Overall Length 4530 mm
Overall Width 1705 mm
Rear track 1460 mm
Wheelbase 2600 mm
Engine
Bore x stroke 79mm x 91.5mm
Brake Horse Power 125bhp @ 6000rpm
Compression ratio 10.0:1
Construction Alloy Block & Alloy Head
Displacement 1794 cc
Fuel Type Unleaded Petrol
Ignition Electronic MPFI
Layout 4-inline
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Torque 158Nm @ 4200rpm
Valve gear 4 valves per cylinder, DOHC, VVT-I
Fuel consumption
City n.a.
Highway n.a.
Overall n.a.
Power train
Transmission 4 Speed Automatic
Type Front Wheel Drive
Steering
Type Rack & Pinion, Power assisted
Suspension
Front Mcpherson strut type with stabilizer
RearETA beam type suspension with toe control torsion beam& coil spring.
Tyres & WheelsTyres 195/65 R15
Wheel make Alloy
Wheel size 6.0J x 15
Comforts
Air Conditioner
Power windows
Full Fabric Trim (Leather Optional)
Climate Control Electrically Retractable Mirrors
Tinted Glass
Safety & Asthetics
Air Bags (driver & passenger side)
Power Steering
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Central Locking
Alloy Wheels
Seat Belts
6 CD changer
Global Outst ,ing Assessment (GOA) body for crash safety
Fog lamps
Rear Defogger
Side protective mould with chrome insert
Chrome door h ,les
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MAUFACTURER: DAIMLERCHRYSLER INDIA P. LTD.
E 240 V6
Body Three Box 4 door Saloon
Brakes
Type
Sensotronic Brake Control (SBC), front disc brakes
internally ventilated, solid rear disc brakes, drum parkingbrake at rear, ABS, Brake Assist, ESP
Dimension & weight
Boot space 540 litres
Fuel Tank capacity 80/8
Gross vehicle weight 2105 kgOverall Height 1452 (over ro rail)
Overall Length 4818 (mm)
Overall Width 1822 (mm)
Wheelbase 2854 (mm)
Engine
Bore x stroke 89.9 Nm @ 68.2 rpm
Displacement 2597cc
Mixture formation
Microprocessor controlled fuel injection with hot film
airflow sensor (HFM)No. cylinders /
arrangement / Valves6 / V, 3 valves per cylinder
Performance
Max. Power 123 kW @ 5750 rpm
Max. Torque 225 Nm @ 4500 rpm
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Steering
Type Power-assisted rack- ,-pinion, steering damper
Suspension
FrontFour-link suspension, McPherson struts, anti-dive, coil
springs, gas-pressure shock absorbers, stabiliser
RearMulti-link independent suspension, anti-squat , anti-dive,
coil springs, gas-pressure shock absorbers, stabilizer
Tyres & Wheels
Tyres 225/55 R 16 95 V
Wheels 7.5 J x 16 H2 ET 42
Comforts
4 power windows
Leather steering wheel in the interior colour
Armrest with stowage compartment
Shift lever gaiter , knob leather-covered
Instrument cluster with chrome surrounds
Side rub strips with chrome inserts
Bumpers with chrome strips
Sun visors with illuminated vanity mirrors
Door h ,les in the vehicle colour with chrome strips
Lumbar support
Heated, electrically adjustable exterior mirrors
Ambient lighting
Steering wheel adjustable for height , reach
Power steering
Outside temperature display
Headlamp Assist
Central display in instrument cluster Green-tinted thermal insulation glass
One-touch wiper function
Seat belts in interior colour
THERMATIC automatic climate control with dust filter
Light alloy wheels
Multifunction steering wheel
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Fine wood trim in brown burr walnut
Safety & Asthetics
Belt tensioners/belt force limiters in the front & on the outer rear seats
Front sidebags
Windowbags
Anti-lock braking system (ABS)
Brake Assist
SPEEDTRONIC with cruise control
Three rear head restraints
Fog lamps
Automatic child seat-recognition
Three inertia-reel seat belts in the rear
Central locking with crash sensor
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FINDINGS
The automobile industry in the country is booming , there are lots choices, which are
available in the market. In this section we will look at the different vehicles parts which
are available in the Indian market, , the price range at which they come.
A segment or the entry-level segment in the Indian Car industry has been dominated by
one car over the decades. The Maruti 800 from the stable one the largest cars makers
in the country Maruti Udyog falls under this category cars. These cars have single ,
changed the perception cars in the country , have provided an easy option for those
who want to graduate from a two- wheeler to a car.
Tata Motors' dream providing a one lakh rupee car would revolutionize this segment
but till then Maruti 800 will continue to rule the roost with another product from Maruti
stable Alto catching up with it. There has been a shift in the market in which these cars
are being sold. Since a large number towns in India will not come under the Euro III
norms it makes little sense for the people in these places to shell out extra money for
cars, which have to conform to Euro III norms.
The D-segment is the fastest growing category cars , according to the industry
sources; it is growing at a healthy rate 35% per annum.
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Cars in this segment for luxury , they come with a hefty price tag, but who cares when
you have loads money , an array luxurious wheels to choose from. These cars
provide you the ultimate luxury , are fitted with the state the art accessories.
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Below are the list luxury cars, which are available in the country , the indicative price
tag:
Ex-
Showroom
Registration
& Service
Charges
(Individual)
Registration
& Service
Charges
(Company)
Comprehensive
Insurance
Total
(Individual)
Total
(Company)
Skoda Octavia 1,339,498 58,250 58,250 49,700 1,447,448 1,447,448
Ford Mondeo Duratec
Petrol 1,556,185 8,150 8,150 49,177 1,613,512 1,613,512
GM Aveo 1.6 LT 719,914 60,394 161,182 28,763 809,071 909,859
Honda Accord V6 1,754,290 72,235 206,705 64,197 1,890,722 2,025,192
Honda City ZX EXi 708,056 30,639 84,196 25,245 763,940 817,497
Hyundai Sonata
Embera 2.4 AT 1,444,965 62,469 62,469 53,927 1,561,361 1,561,361
Maruti Baleno Vxi BS-
III 700,448 51,956 100,988 27,010 779,414 828,446
Mitsubishi Lancer XL
2.0L Diesel 964,200 43,568 120,704 37,901 1,045,669 1,122,805
Toyota Corolla 1.8 G
Automatic 1,094,310 5,180 5,180 40,054 1,139,544 1,139,544
Mercedes E 240 V6 4,097,341 187,191 531,572 148,606 4,433,138 4,777,519
These are only a few luxury cars, which are available in the country, , with each
passing day the list is sure to increase.
India is fast emerging as an important market for cars. In terms its car market, India
ranks third in Asia having recently displaced South Korea from the position. The car
sales have almost doubled in a span 4 years from 2003-05 to 2007-08. The following
chart explains the growth car sales in India during the aforementioned period.
Passengers Vehicles
(PVS)
From April-
November
06-08
From April-
November
08-09
Total
Market
Share (in
The Net
Change
between
Total
number
exports in
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%) the period
(in %)
April 08-09
Maruti Udyog 2,69360 2,91,182 52.2 8.1 23,043
Hyundai Motors
India Ltd.
89,075 1,07, 066 19.2 20.2 68,374
Tata Motors 95,402 24,348 16.6 -2.7 12,105
Honda Siel Cars
India Ltd.
23,186 24,348 4.4 5.1 31
Ford India Pvt. Ltd 15,026 10,512 1.9 -30% 9,928
Utility Vehicles
Mahindra ,
Mahindra Ltd.
49,897 51,540 42.7 3.3 1,878
Toyota
KirloskarMotorPvt
Ltd.
24,404 24,983 20.7 2.4 0
Tata Motors Ltd 19,967 21,610 17.9 8.2 905
General Motors
India Pvt Ltd.
7,008 12,027 10 71.6 0
Maruti Udyog Ltd . 2682 2472 2 -7.8 54
Hyundai Motor
India Ltd.
255 1,042 0.9 308.2 0
Multi-Purpose
Vehicles
Maruti Udyog Ltd. 42,388 43,858 100 3.5 731
Mahindra &
Mahindra Ltd
13 0 0 0 0
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Medium , Heavy
Commercial
Vehicles
Tata Motors 79,614 73,538 61.1 -7.6 4,807
Ashok Leyl , 27,577 33,406 27.7 21.1 2825
Eicher Motors 8,043 8,700 7.2 8.2 318
Swaraj Mazda 3,573 4,080 3.4 14.2 115
Light Commercial
Vehicles
Passenger Carriers
Tata Motors 5,835 6,811 46.8 16.7 1,096
Mahindra ,
Mahindra
2,305 1,960 13.5 -15 115
Swaraj Mazda 1,178 1,315 9 11.6 12
Force Motors Ltd. 2,059 2,877 19.8 39.7 59
Goods Carriers
Tata Motors 30,955 44,380 58.9 43.4 12,461
Mahindra ,
Mahindra
23,563 23,731 31.5 0.7 1,600
Swaraj Mazda 2,671 2,299 3 -13.9 204
Eicher Motors 3,019 2,954 3.9 -2.1 451
The table has been drawn according to SIAM Sales report from April-November 2008.
Indian Market Analysts are jubilant over the fact that India has the fastest growing
automobile industry (passenger cars segment) in the world today. This is seen as the
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result rapid increase middle-class population in the country combined with the
government's pro-development policies.
The findings International Organisation Motor Vehicle Manufacturers revealed that
in India the car production had grown to 30% in 2007, thus leading the table, Brazil
came a distant second with the increase 17%.
The table below attempts to capture in figures the rapid growth production
Automobile Sector in India.
Types Vehicle 2005-06 2006-07 2007-08 2008-09
Passenger Vehicles 557400 782550 960480 1045880
Utility Vehicles 114470 146330 182020 196380
Multipurpose Vehicles 51450 60670 67370 66665
Total 723320 989550 129870 1308925
Current buyer behavior trends
A most important factor influencing car purchase is vehicle performance, followed by
vehicle design , comfort. Buying a car is an emotional decision for most people, with a
vague "Want to own" a car topping the reason for buying a car, followed by more
functional "travel ten" , "vehicle" attraction.
Maruti 800 has the highest recall in consumer minds among all other br ,s, closely
followed by Maruti Zen , Hyundai Santro. But as far as car ads go, people like the
Hyundai Santro ads most (thanks to superstar Shahrukh Khan's presence) followed by
Maruti Zen.
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Among age-groups, Hyundai Verna has a higher popularity among 25-34 year olds,
Honda City is more popular among 35-44 years old, while the Zen takes the cake for
45-54 years old. Among those thinking to buy a car, Maruti Zen , Hyundai Santro top
the list probable buys, followed closely by Maruti 800. People get most their
information on cars from their friends, followed by past experience owning or driving
a vehicle.
Earning drivers for the Dem , Cars
The dem , for cars is dependent on a number factors. The key variables are:
1. Per capita income
2. Introduction new models
3. Availability , cost car financing schemes
4. Price cars
5. Incidence duties , taxes
6. Depreciation norms
7. Fuel cost , its subsidization
8. Public transport facilities
The first four factors viz. increase in per capita income, introduction new models,
availability , cost car financing have a positive relationship to the dem , whereas
others have an inverse relationship to dem , for cars. The dem , for cars in the future is
expected to come predominantly from the existing two-wheeler owners who will be
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upgrading to a four-wheeler, to rising income , necessity. With the release new
models in the higher end the economy segment, the supply second h , economy cars
is expected to increase substantially, which will cost just about twice the price
premium range two-wheelers. This could affect the dem , for new cars. Growth in the
car segment is therefore expected to hover around 15-20 per cent year on year.
Government policy: The GOI policy will continue to dominate the supply cars. The
different norms with great significance to the sector are import duty on CKD/ SKD kits,
auto components, foreign exchange , neutralization schedule for new ventures etc.
Excise duty: The car industry had been asking for reduction in excise duty so as to
reduce the end prices cars to customers , increase the slogging dem ,. With
continuation liberalization , shift in the perception ( car being a luxury product) will
lead to reduction in duties over a period two to three years. This will reduce the prices
cars leading to further boost in dem ,.
Sales tax duty: The levy uniform sales tax in all the states will have a negative impact
on the dem , front, due to increased prices.
Competition in the sector: With the entry all the world majors in the car segment, the
competition is expected to heat up substantial in the next two years. This will lead to
shakeout in the industry , only those companies having a backing multinationals with
strong commitment will be able to continue operations in the segment. This may also
lead to take over activity in the Indian car industry.
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Release new models: The flood variations in existing , new models will provide
wide range choice for the customer one year down the line. Also these new models
will be able to carve a niche for themselves in the crowded market.
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SURVEY ANALYSIS
1. Do you own vehicles parts from Suparbha Pvt Ltd?
Yes
80%
No
20%
Findings: 80 % the respondents own vehicles part. The reason for this is that thesample was chosen such that most the respondents had vehicles parts thus actual
information on cars could be drawn.
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2. If yes, which vehicles parts do you own?
4
3
8
4
6
11
2 2
0
2
4
6
8
10
12
Hyundai Maruti Toyota Chevrole t Ford Honda Mercedes Skoda
Findings: As per the bar graph the most popular cars in this segment are Honda &
Toyota followed by Ford & Hyundai .
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3. Have you purchased the vehicles parts from any other company?
6
94
0
10
20
30
40
50
60
70
80
90
100
Yes No
Findings: After the survey it was observed that the vehicles parts purchased by the
consumers from the subarbha pvt ltd.
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4. When do you replace or you buy a car because of bad parts?
60%
30%
10%
0-3yrs
3-6 yrs
6yrs & above
Findings: 60 % respondents said that they replace the within the first three years. 30
% respondents said that they replace the car in 3-6 Years. The primary reason for
replacement being the end the term finance. This enabled the respondents to apply
for fresh loans , go in for new cars.
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5. You bought vehicles parts of cars because
30
20
60 60
75
0
0
10
20
30
40
50
60
70
80
Increase in
disposable
income
Reduced
risk of
accident
Family
needs
Increase in
family size
Suits your
lifestyle and
personality
Others
Findings: The first reasons for most the respondents to go because it suits the
lifestyle , personality. The second reason as identified by survey is the increase in
family size that makes D & E segment cars affordable.
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6. You decided to buy your existing car because ( rate best 3 factors
from 1-3 in order your preference)
0
1
2
3
4
5
6
7
Hyundai Maruti Toyota Chevrolet Ford Honda Mercedes Skoda
Affordable price Technical superiority over competitionComfort Manufacturers imageValue for money SafetyAfter sales service Others
Findings: Hyundai: Respondents bought Hyundai Sonata because its affordable
price , because Hyundais good after sales network. Respondents who had Maruti
SX4 bought it because Marutis Image , after sales network. Toyota Camry &
Corolla was purchased because its technical superiority over competitors. GM
Models were purchased as they were affordable in comparison to its competitors.
Ford was preferred because its Technical superiority. Similarly Honda was
preferred for its technical superiority , Hondas image. Mercedes , Skoda were
mainly purchased for their br , image.
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7. You sought advice from the following before deciding about which vehicles parts to
buy
12
34
22
12
16
4
0
5
10
15
20
25
30
35
Friends Family
Members
Car Owners Automobile
Expert
Dealers Any other
Findings: Most the respondents took the family advice before buying a car. While
others referred to friends, other car owners , dealers advice on the car. While others
looked for experts advice in auto journals.
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8. Major decision maker in your family for buying the car will be:-
1%7% 0% 1%
91%
Parents
Spouse
Self
Children
Everybody
Findings: Most the respondents said that they are the major decision makers in the
family.
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9. What sources information you looked out for in order to gather data
about various vehicles parts co. existing in the market?
10 10
20
10
50
0
0
5
10
15
20
25
30
35
40
45
50
Newspaper
and
Magazine
Television Word of
mouth
publicity
Dealers Test drives
and
promotional
camapigns
Others
Findings: Most the respondents took a test drive during promotional campaigns
before buying the new car. They also referred to Newspapers, televisions , dealers for
information on the cars parts.
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10. Sources finance your existing car parts was
30
60
10
00
0
10
20
30
40
50
60
Personal
resources
Bank loans Company
loans
Financial
institutions
Others
Findings: Most the respondents sought a bank loan for financing the car.
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11. Why do you think people are buying cars parts these days? (rate from
1-4 in order preference)
1
33
2
1
3
3
2
1
3
1
3
1
4
3
4
0
0.5
1
1.5
2
2.5
3
3.5
4
Hyundai Maruti Toyota Chevrolet Ford Honda Mercedes Skoda
Manoeuvaraility in traffic condition Self Esteem Looks Comfort
Findings: Self Esteem, Looks & Comfort are the main reasons that people go for
vehicles parts.s The comforts with looks represent their lifestyle.
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12. Are Warranty, safety Standard important in your decision for .
buying vehicles parts?
Yes
90%
No
10%
Findings: More than 90% respondents were ready to pay extra price for warranty ,
the safety standards?
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CONCLUSION
Family needs reign supreme as a reason for car purchase. Surprisingly many car owners
bought their car as it suited their lifestyle , personality. Family is the focal point a car
purchase. The decision to buy a car is a collective one made by the whole family. The
car is bought not to fulfill the needs one particular family person but to cater to the
entire family's needs. Therefore the car should be a family car, which can satisfy the
needs the whole family.
In order to attract these people to a new purchase, companies must hit them at the above
point. It should be projected to fit into the lifestyle these people or rather better their
lifestyle.
People consulted by car owner/non car owner before car purchase. Potential car buyers
consult family the most. They tend to obtain information from people already owning
the car. The reason could be that, they are a little apprehensive about the purchase ,
want to quench their anxiety. Car owners also tend to consult these people but their
number is appreciably less than the non-car owners.
Although the family is the most consulted, before making a purchase decision, none
the factors can be ignored.
People already owning a particular car is also consulted by a large number potential
buyers. Companies should make sure that the early buyers the car are completely
satisfied by the car's performance. These early buyers act as information sources for the
followers. Any negative publicity on their part may turn away the potential customers.
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Dealers are one the most important set people for companies. These are the people
who directly communicate with the customers. Therefore companies should make sure
that these people are highly motivated, knowledgeable, , friendly , customer oriented.
The car owners as well as non-car owners are most influenced by newspaper ,
magazine ads , reports. Word mouth publicity cannot be ignored.
Most the respondents use personal resources to obtain funds for the car purchase. Most
these people save money for a long to collect the required amount. There is lot
emotional attachment when a car is bought from personal funds , Companies should
duly, provide value for money for people in terms low maintenance costs. Fuel
efficiency etc. A lot banks are financing for cars. This concept is new but is catching
fast in the big cities. Companies have tied up with ICICI, Standards Chartered , other
banks to come up with joint schemes for car finances for the car.
It can be seen that nearly half the car owners want to replace their existing cars with a
luxury car. This attitude could be due to additional features in the new cars, which may
attract these people, or the non-performance their existing car may compel them to
replace the car.
The price the vehicles parts should be competitive. Price is the first major hurdle,
which a customer has to jump over before making a purchase decision. Too high a price
may discourage many potential car buyers , a very low price may raise doubts about the
car" performance capabilities.
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As far as fuel efficiency , maintenance cost are concerned, these should satisfy the
customer's expectations. These two features are the most general features, which are
compared when people compare two cars.
The main reason for popularity car is luxury at nominal price; companies should also
make the car competitive in terms price. It should be easy to drive in traffic conditions
on empty roads, should have low maintenance cost, should be fuel-efficient , fulfill
small family needs.
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KEY FINDINGS
Perception Is Reality
A strong car brands can create significant value in the automotive industry. For mass-
market cars, brands helps determine which products a consumer considers buying.
Furthermore, superior brands extend their halo across every model vehicle within the br
s,. Its no surprise that most auto manufacturers make brands , positioning , development
a key item on their marketing agenda. Yet despite intense interest in their power,
automotive brands remain relatively poorly understood.
Since a prominent role the brands , positioning , development play in many auto
manufacturers business strategies, I conducted extensive research , analysis to better
understands , how consumers think about car brands. My analysis uses simple
questionnaire interviews to distill multiple brands image attributes into a small set
underlying factors, which provide valuable insights into consumer brands , perceptions.
My research shows that consumers have a simple yet sophisticated understanding what
differentiates car brands. Notwesting automakers attempts to distinguish their brands
on the basis lifestyle or emotional imagery, consumers evaluate brands in terms their
earned reputation for product excellence relative to their total ownership cost.
Consumers perceptions are based on their accumulated direct , indirect experience with
the products that constitute those brands. These perceptions are obviously not perfect.
Some brands reputations exceed or fall short their demonstrable product attributes.
But, as a rule, consumers beliefs are accurate, stable, relatively immune to
manipulation. In contrast to the situation with consumer goods, in which equity is created
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substantially through advertising, automotive brands perceptions change primarily
through consistent , sustained changes in the underlying product portfolio. Within this
conclusion, I was able to identify five central insights that are critical to understanding
,in how, to what extent, manufacturers can enhance , leverage the value their brands.
1. Virtually all the difference in how consumers perceive competing brands can be
explained by their relative performance against two holistic measures: product
excellence , cost. Traditionally, car manufacturers have tried to measure their brands
across a large number image attributes, hoping to develop additional insights about
brands , differentiation. However, consumer perceptions a brands, reputation are
generally consistent across different measures value. For example, consumers believe
that manufacturers whose car lines have a reputation or luxury , prestige tend to produce
cars that excel in many other areas, such as ride, safety, , reliability. In fact, a brands ,
score on any one attribute tends to be so highly correlated with its score on another
attribute that these scores can be integrated into one measure that represents a car lines
propensity to create excellent products.
Consumers also have a sophisticated understanding product cost. They recognize that
vehicles differ not only in their initial purchase price, but also in their expected
maintenance , operating costs, as well as their ultimate resale value. Together, these
different types expenditures determine the total cost to the consumer over the
ownership cycle. As with the product excellence dimension, the various attributes that
determine a brands expected ownership costs can be integrated into a single measure
product cost.
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These two holistic measures, product excellence , cost ownership, account for 91
percent the difference in how consumers perceive automotive brands . In fact, these two
holistic measures are comprehensive enough to predict the consumers overall opinion
the brands , with an extremely high degree accuracy.
2. Consumers are not only elegantly simple in their view automotive brands they
are acutely rational as well. For the average consumer, a new car is second only to a
new home in the size the transaction, , the potential to communicate an
individuals sense self-worth. Consequently, consumers spend a substantial
amount time evaluating their alternatives.
But in general, consumers are well informed, , their opinions accurately reflect the
accumulated performance the products that are the physical embodiment those
brands . Similarly, consumers perceptions a brands , reputation for durability,
reliability, , workmanship (which are key constituents the holistic product excellence
measure) are highly correlated with the actual dependability that brands , vehicles.
3. Consumers recognize that, in general, better products cost more. Consumers self-
select an automotive segment on the basis which attribute (cost ownership or
product excellence) they value more. Within a consumers chosen segment, brands
,that deliver more both attributes provide superior value to the consumer. E.g. BMW
has carved a niche within the luxury segment based on its image as the ultimate driving
machine. The majority brands are not differentiated on any basis other than product
excellence , cost ownership.
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Hyundai for having good customer service , providing a pleasant buying experience.
However, the majority brands , are not meaningfully differentiated on any basis
other than product excellence , cost ownership.
4. Brands in crowded, weakly positioned brands , tend to suffer from eroding
margins. Such brands naturally tend to achieve lower purchase consideration ,
hence volume.. They must seek to improve at least one the two holistic br , measures
for their brands , Because improvement a brands , product excellence is difficult to
accomplish across an entire product portfolio , generally requires up to a decade, the
only way for brands , to improve their positioning quickly is to lower product prices ,
fer customers better cost ownership. By contrast, Honda , Toyota have clearly
distanced themselves from the rest the mass-market segment. In the consumers
mind, Honda , Toyota represent a combination product excellence , cost ownership
that so far surpasses all other competitors that they operate along a different trade f
curve.
5. Brands , positions tend to change relatively little over time. Consumer
perceptions are shaped in large part through accumulated product experience, both
firsth , , indirect. Consumers also use a large number objective sources
information to supplement their direct product experience (e.g., word mouth,
product reviews, , safety ratings). As a result, the perception-forming process is long.
Manufacturers, in contrast with most consumer goods, whose br , equity is created
substantially through advertising. Although marketing communications certainly play an
important role in what consumers think, the only way to sustain meaningful change in
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automotive brands , perceptions is with ongoing, consistent changes in the underlying
product experience. Over the past two decades, most manufacturers have made concerted
efforts to improve product quality, develop new features, , reduce costs. They have used
various techniques, such as computer-aided design, system outsourcing, , component
reuse, to speed up the product development cycle, reducing the time it takes to respond
to.
The Hyundai brands , have benefited from a sustained flow new products that fer
significantly improved quality, attractiveness, edgy styling (at times), , extremely low
cost ownership due to low sticker prices , extended warranty coverage. The resulting
value proposition has not only increased these brands unit volume, but also has
radically changed consumers perceptions the brands , What is stunning is how
much the Korean br ,s have improved in such a short time, especially in comparison
with how long it took Toyota , Honda to shaketheir reputation for producing tin cans.
If the Korean brands , continue to improve their reputation for product excellence while
maintaining their cost ownership, they could score high on the three mass-market
brands , to join the cluster currently defined by Maruti Udyog, Tata Motors , Fiat India.
In contrast, the value Maruti brands , Tata Motors has been deteriorating. Fiat Motors
are doing averagely. Maruti was initially able to transfer consumers satisfaction with the
dealer experience to the product. Although Maruti still remains differentiated on the
basis its channel performance, the product has failed to satisfy consumers expectations
for quality, the brands , as a whole has experienced significant erosion.
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The marketing function must take an active role in balancing the drive toward lower cost
ownership with the consumer value created through innovative features options.
Lifestyle , emotional imagery cannot compensate for weak brands , undifferentiated
products. Consumers may acknowledge a brands ,personality, but the aspects the
brands , that drive consumer shopping behavior are promises that the brands , represents
for product excellence , cost ownership. Image advertising , lifestyle s to accelerate
consumers understanding the brands , but it cannot fundamentally change the promise.
Consequently, the number resources applied toward lifestyle , image advertising should
be carefully inspected for appropriateness , effectiveness. For mass-market vehicles,
incentives are a symptom a weak brands , not the cause. In the absence a strong
brands ,, price is the only plausible way to affect near-term dem ,. Hence, curtailing
incentives in an effort to build brands , is not likely an economically viable option.
Many manufacturers have made brands , positioning , development a key item on their
marketing agenda. Yet br ,s are not the product manufacturers marketing efforts.
Instead, consumers base their understanding an automotive brands ,s value on their
accumulated experience with that brands ,s products. If you want to change the Brands
,, change the products for the better.
All this shows that the internationality the brands does have an effect on the
purchase decision the car in the minds the consumers. As we had already seen that
the foreign brands ,s like Hyundai, Honda, Fiat, are doing really well due to their
excellence in the product quality, technology, features, price etc. All these attributes
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does play a very important role in comparison with the local brands like Maruti
Suzuki, Tata Motors etc.
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BIBLIOGRAPHY
Books
Consumer Behavior by Philip Kotler 2006-07
Consumer Behavior 2007 by Leon G. Schiffman & Leslie Lazar Kanuk.
Aker, David, Managing Br , Equity, New York, The Free Press, 1991.
Kapfer, Jean-Noel, Strategic Br , Management, Now Approaches to creating &
Evaluating Br , Equity, Fifth Edition, less Editions Organization, 2002.
Kotler, Philip Marketing Management Analysis, Planning, Implementation &
Control, 11th Edition, Prentice Hall India Pvt. Ltd. 2005.
JOURNALS & MAGAZINES
The Automotive Component Manufacturers Association India (ACMA), JAN-
FEB 04
Automotive Engineer & Trader (Annual Number 2003) p.39-47
Investment Research & Information Services Limited. (P.48-50 7 161-167)
www.Siam.com
Magazines
Cars Wars II, Business World.
Over Drive.
Business Standards Motoring
Auto India
India Todays
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Questionnaire
NAME:
GENDER:
MARITAL STATUS:
OCCUPATION:
EMAIL ID:
(a) Hyundai Sonata (b) Maruti SX4 (c) Toyota Camry (d) Chevrolet
Optra
(e) Ford Mondeo (f) Honda Accord (g) Mercedes Benz (h) Skoda Octavia
1. Do you own vehicles parts?
(a) Yes (b) No
2. If yes, which vehicles parts do you own?
(a) Hyunda (b) Maruti (c) Toyota (d) Chevrolet
(e) Ford (f) Honda (g) Mercedes (h) Skoda
3. Have you purchased the vehicles parts.
(a) Yes (b) No
4. When do you replace or you buy a car because of bad parts?
(a) 0-3yrs (b) 3-6 yrs (c) 6yrs & above
5. You bought vehicles parts of cars because?s
(a) Increase in disposable income (b) Reduced risk of accident
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(c) Family needs (d) Increase in family size
(e) Suits your lifestyle and personality (f) Other
6. You decided to buy your existings car because of ( rate best 3 factors from 1-3in order of your preference) ?
Hyundai Maruti Toyota Chevrolet Ford Honda Mercedes Skoda
Affordableprice
Technicalsuperiority
over
competitionComfort
Manufacturers
image
Value formoney
Safety
After sales
service
Others
7. You sought advice from the following before deciding about which vehiclesparts to buy?
(a) Friends (b) Family Members (c) Car Owners
(d) Automobile Expert (e) Dealers (f) Any other
8. Major decision maker in your family for buying the car will be:-
(a) Parents (b) Spouse (c) Self (d) Children (e)
Everybody
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9. What sources of information you looked out for in order to gather data aboutvarious vehicles parts company existings existing in the market?
(a) Newspaper and Magazine (b) Television (c) Word of mouthpublicity
(d) Dealers (e)Test drives and promotional campaigns (f)
Others
10.Sources of finance of your existing car parts was?
(a) Personal resources (b) Bank loans (c) Company loans
(d) Financial institutions (f) Others
11.Why do you think people are buying cars parts these days? (rate from 1-4 inorder of preference)
Manoeuvaraility
in trafficcondition
Self Esteem Looks Comfort
Hyundai
Maruti
Toyota
Chevrolet
Ford
Honda
Mercedes
Skoda
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