Project Report - Sem 3

“A STUDY ON BRAND PREFERENCE FOR BAJAJ TWO WHEELER’S
AMONG CUSTOMERS IN VELLORE”
PROJECT REPORT
Submitted to
DRAVIDIAN UNIVERSITY
In the partial fulfillment for the award of

MASTER DEGREE IN BUSINESS ADMINISTRATION
Submitted by
MR. MATHAN RAJ P.K.
REG NO: 22205409010
Under the guidance of

MRS. P. RAJESWARI M.B.A. M.Phil.
OSCAR MANAGEMENT COLLEGE

#A-2, Near Collectorate,
Sathuvachari, Vellore – 9.
2009-2011

(Approved by DRAVIDIAN UNIVERSITY)
Sathuvachari, Vellore – 9
BONAFIDE CERTIFICATE
This is to certify that this project entitled “A STUDY ON BRAND
PRFERENCE FOR BAJAJ TWO WHEELER’S AMONG CUSTOMERS
IN VELLORE” submitted by MR.MATHAN RAJ.P.K (Reg No:
22205409010) in partial fulfillment of the requirement for the award of Master
of Business Administration from DRAVIDIAN UNIVERSITY, is the original
work of the candidate and has not been submitted for awarding any degree of
either this university or any other university either in full or in part.
Signature of the Guide

(RAJESWARI.P)
EXTERNAL CERTIFICATE
This is to certify that this project entitled “A STUDY ON BRAND
PRFERENCE FOR BAJAJ TWO WHEELER’S AMONG CUSTOMERS
IN VELLORE” submitted by MR.MATHAN RAJ.P.K (Reg No:
22205409010) for viva voce Examination held on ______________ in partial
fulfillment of the requirement for the award of Master of Business
Administration from DRAVIDIAN UNIVERSITY.
External Examiner Internal

Examiner
Principal
DECLARATION
I, Mathan Raj.P.K. hereby declare that the project entitled “A STUDY ON
BRAND PRFERENCE FOR BAJAJ TWO WHEELER’S AMONG
CUSTOMERS IN VELLORE” submitted to DRAVIDIAN UNIVERSITY in
partial fulfillment of the degree in Master of Business Administration is a record
of original work done by me. This project work has not previously formed the
basis for the award of any degree, diploma, associateship, fellowship or other
similar title.
Place: (MATHAN RAJ.P.K.)

Date: Reg No: 22205409010
ACKNOWLEDGMENT
First and foremost, I thank GOD for the blessings and guidance at all stages in the
completion of this project.
I take this opportunity to express my deep sense of gratitude to
Mr. JAI CHANDRAN, Founder Chairman, of our college for his good wishes for this
project. I express my immense gratitude to my Principal Mr. P. PETER for his support and
encouragement for the completion of my project.
I extend the immense gratitude to the Project Guide Mrs. P. RAJESWARI who
provided her guidance and inspiration in doing this project and without her guidance,
motivation and support, this project will not be possible. I take immense pleasure in
conveying my thanks and deep sense of gratitude to my faculty and my mentor
Mrs. IDA SELVARANI, for her exhilarating supervision, timely suggestions, motivation
and encouragement during all phases of this project work.
I also thankful to all other faculty members of the department for the constant
co-operations and encouragement in pursuing my project work.
I also very much thankful to Mr. SARAVANAN, Sales Manager of Shree Lakshmi
Motors, Mr. RAVI, General Manager of Shree Lakshmi Motors and Mr. S. RAJA GURU,
General Manager of Aakash Motors, who has provided me with the customer database and
lots of information which is helpful for the project.
I specially thank Dr. R. RAVANAN, Associate Professor of Statistics, Presidency
College, Chennai for his teaching and guidance in the SPSS Package and in different
Statistical tools. Without his guidance it is not easy to complete the data analysis part.
I would like to thank all my friends for their constant encouragement, support and
help to make this project a success. I specifically thank to my friends, Mr. R. SARAN RAJ
and Mr. S. SIVAPRAKASAM who helped me a lot in the data collection process and
Mr. JAISON SAMUEL who helped me in the initial analysis process of this project.
Finally, I would like to convey my gratitude to my loveable parents & relatives
whose prayers and blessings were always there with me.
TABLE OF CONTENTS
CHAPTER NO TITLE PAGE NO

1 INTRODUCTION
1.1 Introduction 1
1.2 Statement of the Problem 3
1.3 Need for the Study 3
1.4 Objectives of the Study 4
1.5 Scope of the Study 4
1.6 Limitations of the Study 4
1.7 Company Profile 5
2 RESEARCH METHODOLOGY
2.1 Field of the Study 9
2.2 Research Design 9
2.3 Sample Design 11
2.4 Source of Data 12
2.5 Tool of Data Collection 12
2.6 Data Analysis 13
3 REVIEW OF LITERATURE
3.1 Theoretical Framework 21
3.2 Research Studies 34
4 DATA ANALYSIS AND INTERPRETATION 43-87
5 FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 Findings 88
5.2 Suggestions 91
5.3 Conclusion 92
Questionnaire 93
Annexure
Bibliography 96
LIST OF TABLES
TABLE NO TABLE NAME PAGE NO

1.1 Key People of Shree Lakshmi Motors 8
1.2 Key People of Aakash Motors 8
2.1 Address of Dealers 9
3.1 Black Box Model 26
4.1 Details of Age Group 43
4.2 Details of Educational Qualification 45
4.3 Occupation Information about the Respondents 47
4.4 Details of Monthly Income 49
4.5 Need for buying the bike 51
4.6 Frequency table for factors affecting the Purchasing Decision 53
4.7 Friedman Test 54
4.8 Personal Source of Information 55
4.9 Commercial Source of Information 57
4.10 Experimental Source of Information 59
4.11 Medium of Communication that influences the Brand Preference 61
4.12 Mode of Purchase 63
4.13 Role in Decision Making 64
4.14 Period took to choose the Bajaj Brand 65
4.15 Frequency table showing the reason for Brand preference 67
4.16 Percentage of Product Features 69
4.17 ANOVA – Total Features 70
4.18 Descriptive Statistics 70
4.19 Percentage of Showroom Attributes 71
4.20 ANOVA – Total Showroom Attributes 72
4.22 Role of availability in the selection of brand 73
4.23 Trust Level on the Bajaj Brand 74
Reaction of customer when Bajaj Brand is not available during
4.24 75
the purchase
4.25 Percentage of Satisfaction on the given attributes 76
4.26 Correlation between Level of Satisfaction of Safety and Comfort 77
4.27 ANOVA – Total Price 78
4.29 Rating of Overall Service Experience 79
4.30 Overall Satisfaction level with regards to the Bajaj bike 80
4.31 Correlation between Overall Satisfaction and Service Experience 81
4.32 Future Purchase Decision 82
4.33 Level of Promoting the Bajaj Brand 83
4.34 One Sample T-Test for the Level of Promotion at 1% level 84
4.35 Level of Recommendation of dealer to others 85
Crosstabs between Educational Qualification and Brand
4.36 86
Preference Level
4.37 T-Test for difference of two mean 87
LIST OF FIGURES
FIGURE NO FIGURE NAME PAGE NO

1.1 Organizational Structure of Shree Lakshmi Motors 7
1.2 Organizational Structure of Aakash Motors 8
3.1 Project Study Analysis Process 24
3.2 Buying Decision Process 30
3.3 Steps between Purchase Intention & Purchase Decision 32
4.1 Percentage of respondents based on Age Group 44
4.2 Percentage of respondents based on Education 46
4.3 Percentage of respondents based on Occupation 48
4.4 Percentage of respondents based on Income Level 50
4.5 Percentage of Need for buying the bike 52
4.6 Percentage of Personal Source of Information 56
4.7 Percentage of Commercial Source of Information 58
4.8 Percentage of Experimental Source of Information 60
4.9 Percentage of Influence of Communication Medium 62
4.10 Percentage of Period took to choose the Bajaj Brand 66
4.11 Percentage of Preference Reason 68
CHAPTER 1
INTRODUCTION
1.1 Introduction
Brand Preference is the measure of Brand Loyalty in which a consumer will choose a
particular brand in presence of competing brands, but will accept substitutes if that brand is
not available. Brand Loyalty refers to the extent of the faithfulness of consumers to a
particular brand, expressed through their repeat purchases, irrespective of the marketing
pressure generated by the competing brands.
In every product category, consumers have more choices, more information and higher
expectations than ever before. To move consumers from trial to preference, brands need to
deliver on their value proposition, as well as dislodge someone else from the consumer's
existing preference set.
Preference is a scale, and brands move up, down and even off that scale with and without a
vigilant brand management strategy. Pricing, promotional deals and product availability all
have tremendous impact on the position of brand in the consumer’s preference set. If all
things are equal, the best defense is to make the brand more relevant to consumers than the
competition.
The brands potential can only be fulfilled by continually reinforcing its perceived quality,
upmarket identity and relevance to the consumer. The same branding activities that drive
awareness also drive preference. And, while awareness alone will not sustain preference, it
will improve the brand’s potential for building and maintaining preference.
With a great story and a large enough investment, awareness can be attained rather quickly. It
takes time, however, and constant revaluation to build brand preference. Aristotle professed,
“We are what we repeatedly do. Excellence then is not an act, but a habit.” Attaining and
sustaining preference is an important step on the road to gaining brand loyalty. The ability to
generate more revenue, gain greater market share and beat off the competition is the reward
given by consumer toward particular brand.
Brand preference is the Selective demand for a company's brand rather than a product; the
degree to which consumers prefer one brand over another. In an attempt to build brand
preference advertising, the advertising must persuade a target audience to consider the
advantages of a brand, often by building its reputation as a long-established and trusted name
in the industry. If the advertising is successful, the target customer will choose the particular
brand over other brands in any category.
The frequency of repeat purchase in case of two wheeler market is very low. So, the measure
of Loyalty is not easy. The brand loyalty of the customer can be identified with the help of
how they promote the brand to others, i.e. Word of Mouth Communication. Even though
competitors are low in the two wheeler’s segment, competition is very high due to the
availability of different product categories under different brands.
The Customers preference among these brands also not easy as the product possesses similar
features in all the brands. So, the customer satisfaction determines the loyalty. Customer will
get satisfied only when their expectations met or exceed. It is an after purchase behavior. To
analyze the Brand Preference and Loyalty, it is necessary to study both the consumer’s
buying behavior and after purchase behavior.
1.2 Statement of the Problem
The changing customer perception because of the availability of variety of products in two
wheeler segment along with the growing number of competitors had a major impact in the
preference of a particular brand. The customers’ decision making process also changes as
their buying pattern changes.
The players in the two wheeler market in the Vellore are Bajaj, Hero Honda, TVS, Yamaha,
Suzuki, Mahindra, BSA, Ultra Motors and Royal Enfield. Each and every company has
different varieties of product category in the two wheelers, which gives lot of options for the
customers in Vellore. The fast developing technology and the growing economic status of the
people in the Vellore city drive their preference decision.
Bajaj held the most of the market share in the two wheeler segment in Vellore after the
launch of CT 100 model which gave good mileage and Pulsar which attracted most of the
young customers. Later after the launch of TVS Apache, Yamaha FZ, the preference of brand
among customers varied a lot with the availability of various options. So, this study was
undertaken to analyze the above mentioned issues.
1.3 Need for the Study
1. The first and foremost need for this study is due to the increasing brand variety in the
Vellore two wheeler’s market which is eroding the Brand Loyalty of the customers.
2. The increasing media clutter and the changing consumer preferences.
3. The more number of split loyal and shifting loyal customers are available in the
market.
4. Brand Loyalty of a customer is influenced by the customer’s perceived value which is
the basic belief results in the action. So, to analyze the preference of brand and to find
the factors influencing the Brand Preference of the customer in the two-wheeler
segment.
1.4 Objectives of the Study
1. To study the perception and buying behavior of customers in two wheelers.

2. To measure the Brand Loyalty of Bajaj.
3. To study the customers view on features of two wheeler’s and the impact of the
communication medium.
4. To study the factors that influence decision-making in choosing the brand.
5. To suggest factors to retain the customers.
1.5 Scope of the Study
• The study is only on Brand Preference so the other aspects such as Brand
Recognition, Brand Image, Brand Equity and other branding concepts are not
covered.
• Brand Loyalty, Perception and Buying Behavior of respondents are also studied in
this research.
• This study covered only the area of the Vellore city. So, the information and the
conclusion derived from the study are only relevant to this area alone.
1.6 Limitations of the Study
• The duration of the project was one of the primary constraints for the project.
• This study is confined only among the Bajaj customers in the Vellore city.
• It was an academic effort and limited to cost, time and geographical area.
• Numbers of respondents were restricted due to the time factor.
1.7 Company Profile
Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is

based in Pune, Maharashtra, with plants in Chakan (Pune), Waluj (near Aurangabad) and
Pantnagar in Uttaranchal. The oldest plant at Akurdi (Pune) now houses the R&D centre
ahead. Bajaj Auto makes and exports motor scooters, motorcycles and the auto rickshaw.
Over the last decade, the company has successfully changed its image from a scooter
manufacturer to a two wheeler manufacturer. Its product range encompasses scooterettes,
scooters and motorcycles. Its real growth in numbers has come in the last four years after
successful introduction of a few models in the motorcycle segment.
The Bajaj Group is amongst the top 10 business houses in India. Its footprint stretches over a
wide range of industries, spanning automobiles (two-wheelers and three-wheelers), home
appliances, lighting, iron and steel, insurance, travel and finance. The group comprises of 34
companies. The group's flagship company, Bajaj Auto, is ranked as the world's fourth largest
two- and three- wheeler manufacturer and the Bajaj brand is well-known across several
countries in Latin America, Africa, Middle East, South and South East Asia. Founded in
1926, at the height of India's movement for independence from the British, the group has an
illustrious history. Jamnalal Bajaj was the founder of the Bajaj group.
Bajaj Auto came into existence on November 29, 1945 as M/s Bachraj Trading Corporation
Private Limited. It started off by selling imported two- and three-wheelers in India. In 1959, it
obtained license from the Government of India to manufacture two- and three-wheelers and it
went public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, it managed to
produce and sell 100,000 vehicles in a single financial year. In 1985, it started producing at
Waluj near Aurangabad. In 1986, it managed to produce and sell 500,000 vehicles in a single
financial year. In 1995, it rolled out its ten millionth vehicles and produced and sold 1 million
vehicles in a year.
According to the authors of Globality: Competing with Everyone from Everywhere for
Everything, Bajaj has grown operations in 50 countries by creating a line of value-for-money
bikes targeted to the different preferences of entry-level buyers.
His son, Kamalnayan Bajaj, then 27, took over the reign of business in 1942. Kamalnayan
Bajaj not only consolidated the group, but also diversified into various manufacturing
activities. The present Chairman of the group, Rahul Bajaj, took charge of the business in
1965. Under his leadership, the turnover of the Bajaj Auto the flagship company has gone up
from INR.72 million to INR. 120 billion, its product portfolio has expanded and the brand has
found a global market. He is one of India’s most distinguished business leaders and
internationally respected for his business acumen and entrepreneurial spirit. The Vice
Chairman of Bajaj Auto is Madhur Bajaj.
In early March 2010, Bajaj Auto Ltd. once again demonstrated its commitment to green
technology by achieving Bharat Stage-III norm compliance for its range of products-the first
company to do so. The Bharat Stage III norms were notified by Government of India on
recommendation by Dr. R.A. Mashelkar committee for the control of pollution in the country
and are applicable across all states.
Products
Bajaj has made a number of motorcycles, scooters and cars. Motorcycles in current
production are the XCD, Platina, Discover, Pulsar and Avenger. Bajaj also produces many
motorcycles for other manufacturers, such as the Kawasaki Ninja 250R, Yamaha YZF-R15
(Unsure), and new for 2011, the KTM Duke 125, Cars include the Bajaj ULC ultra-low-cost
car.
Low Cost Cars
Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan Motor, will aim
at a fuel-efficiency of 30 kilometres per litre (85 mpg-imp; 71 mpg-US) (3.3 L/100 km), or
twice an average small car, and carbon dioxide emissions of 100 g/km. The car is scheduled
to be launched in 2012. It is a Tata Nano competitor. The Bajaj venture will have an initial
capacity of 400,000 units, while Tata expects eventual demand of 1 million Nanos.
Shree Lakshmi Motors
The journey with Bajaj was started from January 2009 after purchasing the Susee Motors
Dealership. Previously the dealership in the Katpadi and the surrounding area was taken care
by Susee Motors. But, in 2009 Shree Lakshmi Motors bought the dealership with Bajaj for
that area. It was started by Mr.Ravi, Sole Proprietor for the company. They are taking care of
both the sales and service of Bajaj two wheelers in their area successfully.
This is a separate business unit for the organization which totally has 5 business units. The
other business units are unrelated to each other and covering many other sectors, and
targeting different market segment in Vellore district. The following are the five businesses
which come under this organization.
1. Ravi Electricals
2. Hotel Shree Lakshmi
3. KRR Group Real Estate
4. Ravi Auto Consultancy
5. Shree Lakshmi Motors
Totally 15 employees are working in the company, among which 5 are front office staffs and
the remaining 10 are service mechanics.
GM
MD
Sales Service
Manager Manager
Front Office Service
Fig 1.1: Organizational Structure of Shree Lakshmi Motors
Table 1.1 Key People of Shree Lakshmi Motors

Name Position
Mr. Ravi General Manager
Mr. Saravanan Managing Director
Mr. Naveen Sales Manager
Mr. Guru Service Manager
Aakash Motors
The company joined their hands with Bajaj from July 2009 covering the area of
Sainathapuram and Bagayam of Vellore District. The owner of the company Mr. S.RajaGuru
began the company with 12 workers and the business is running successfully in that particular
area. The yearly turnover of the company is around Rs. 3 crores. This dealer is taking care of
both the sales and service of Bajaj two wheelers.
GM
Sales Service
Manager Manager
Front Office Service
Fig 1.2: Organizational Structure of Aakash Motors
Table 1.2 Key People of Aakash Motors

Name Position
Mr. S. RajaGuru General Manager
Mr. Saravanan Sales Manager
Mr. Ramkumar Service Manager
CHAPTER 2
RESEARCH METHODOLOGY
2.1 Field of the Study
The study was conducted among the customers of two Bajaj dealers in Vellore. They are
Shree Lakshmi Motors in Katpadi Road and Aakash Motors in Sainathapuram.
Table 2.1 Address of Dealers

Address of Dealer 1: Address of Dealer 2:
Shree Lakshmi Motors Aakash Motors
Chittor High Road, No. 83, Arani Road,
Near Vijay Sales, Katpadi, Sainathapuram,
Vellore – 632 007. Vellore – 632 001.
2.2 Research Design

A Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
A Research design could be defined as the blue print specifying every stage of action in the
course of research. Such a design would indicate whether the course of action planned will
minimize the use of resources and maximize the outcome.
Descriptive Research Design
The Research design used in this study was Descriptive Research Design. Descriptive studies
come under formal research, where the objectives are clearly established. It is concerned with
the research studies with a focus on the portrayal of the characteristics of a group or
individual or a situation. The main objective of this type of study is to acquire knowledge.
For example, to identify the use of a product to various groups, a research study may be
undertaken to question whether the use varies with income, age, sex or any other
characteristics of population. Similarly, such studies are used to examine the characteristics
of the corporate sector or consumer behavior, etc.
Descriptive Approach
In this approach, a problem is described by the researcher using questionnaire or schedule.

This approach enables the researcher to explore new areas of investigation. A researcher
develops the hypothesis based on the knowledge about the subject matter of study. When this
approach is adopted, the researcher should be intelligent and alert to elicit the information
required from the respondents as accurately as possible.
Merits of Descriptive Approach
• This approach helps to test the conclusions and findings arrived at on the basis of
laboratory studies. By using this approach, it is possible to substantiate existing
theories and conclusions or modifying them.
• Direct contact between the researcher and the respondent is brought about in this
approach. This is very significant because, the researcher would be able to understand
himself clearly the problem being studied.
• With the possibility of direct contact with the respondent, the researcher is able to
elicit all the relevant information and eliminate irrelevant facts.
Limitations of Descriptive Approach
• Unless a researcher is experienced, there is every possibility of this approach being

misused. Hurried conclusions and generalizations may be formed based on the
inaccurate field data.
• As this approach involves collection of field data, enormous time and efforts are
required to plan and execute the field survey.
• This approach also involves incurring heavy cost on data collection.
• Unless the respondents are cooperative, it is not possible to collect data through this
approach.
• Since this approach requires considerable time for data collection, by the time the data
collection is complete and analysis are undertaken, conclusions arrived at may not
have any relevance.
2.3 Sample Design
A Sample Design is a definite plan for obtaining a sample from a give population. It refers to
the technique or the procedure the researcher would adopt in selecting items for the sample.
The sampling technique which was used in this research was Systematic Random Sampling.
It is one of the Probability Sampling techniques. Probability Sampling is the sampling
technique in which every unit of the population has given equal chance to be included in the
study. A Systematic Random Sampling is a technique which contains every ‘i’th element of
the population. The first element is chosen randomly, the rest systematically.
Merits of Systematic Random Sampling

1. It is very convenient and simple to adopt.
2. The time and cost involved are relatively less.
3. With a large population, this method of sampling is easy to use.
4. Random selection of items is ensured, once the sampling interval is determined.
5. Sampling interval is determined scientifically depending upon the size of sample
desired.
Limitations of Systematic Random Sampling

1. It is less representative, as once the first item is selected at random, subsequent items
are all lying at uniform interval. So, the selected items may lack complete
representativeness.
2. This method requires correct understanding of the methodology as otherwise, the
sample selected will not be correct.
3. The first item selected should be strictly at random. If there is any bias in this first
stage, this will influence the items selected at subsequent stages.
Population: N = 240
Sample Size: n = 120
Sampling Interval: k = N/n
k = 240/120, therefore, k = 2
2.4 Source of Data
Primary Data
Primary data is known as the data collected for the first time through field survey. The
important source for the primary data collection is through Questionnaire and other source is
through Sales force opinion.
Secondary Data
Secondary data refers to the information or facts already collected. Such data are collected
with the objective of understanding the past status of any variable. Secondary sources include
the following.
➢ Books
➢ Journals
➢ Research Thesis
➢ Foot notes
➢ Internet
2.5 Tool of Data Collection
The primary tool which was used for data collection was Questionnaire. It was a Structured
Questionnaire which consists of series of questions related to the objective of the study. In the
prepared questionnaire, eighteen closed-end questions with one open-ended question were
designed. The questionnaire was prepared with the help of different Scaling Techniques and
Measurement Scales.
2.6 Data Analysis
Primary data generated by the study were cleaned to ensure consistency and transcribed in
coded form (pre and post-coded) into the computer using the Statistical Package for Social
Sciences (SPSS). There are five different Statistical tools are used in this project to analyze
the data effectively. It includes the advanced statistical tools also. The Statistical tools used to
analyze are mentioned as follows.
1. T-Test for Single Mean

2. T-Test for difference of two mean
3. ANOVA – One Way ANOVA
4. Chi-Square test for independence of attributes
5. Correlation Coefficient
6. Friedman Test
In the analysis, the Ordinal Scale for the questionnaire, ‘Features of the product’, the scale
value was set as follows: 1 – 1 point, 2 – 2 points, 3 – 3points, 4 – 4 points and 5 – 5 points.
So, the highest mean value is considered while writing the inference for this questionnaire.
Other than this, for all other questionnaire which involves the rating scale, the scale value
was set least for higher rating and greater for lower rating. For example, Very High – 1, High
– 2, Average – 3, Low – 4, Very Low – 5. So, the least mean value is considered while
writing inference for the other questionnaires.
T-Test for Single Mean:
The t- test is the most powerful parametric test for calculating the significance of a small
sample mean. A one sample t-test has the following null hypothesis:
Where, the Greek letter μ (mu) represents the population mean and c represents its assumed
(hypothesized) value. In statistics it is usual to employ Greek letters for population
parameters and Roman letters for sample statistics. The t-test is the small sample analog of
the z test which is suitable for large samples. A small sample is generally regarded as one of
size n<30.
A t-test is necessary for small samples because their distributions are not normal. If the
sample is large (n>=30) then statistical theory says that the sample mean is normally
distributed and a z test for a single mean can be used. This is a result of a famous statistical
theorem, the Central limit theorem.
A t-test, however, can still be applied to larger samples and as the sample size n grows larger
and larger, the results of a t-test and z-test become closer and closer. In the limit, with infinite
degrees of freedom, the results of t and z tests become identical.
In order to perform a t-test, one first has to calculate the "degrees of freedom." This quantity
takes into account the sample size and the number of parameters that are being estimated.
Here, the population parameter, mu is being estimated by the sample statistic x-bar, the mean
of the sample data. For a t-test the degrees of freedom of the single mean is n-1. This is
because only one population parameter (the population mean) is being estimated by a sample
statistic (the sample mean).
Formula for calculating the t value:

T-Test for difference of two mean:
The Independent Samples T Test compares the mean scores of two groups on a given
variable. One of the frequently used t-test is a two sample location test of the null hypothesis
that the means of two normally distributed populations are equal. All such tests are usually
called Student's t-tests, though strictly speaking that name should only be used if the
variances of the two populations are also assumed to be equal; the form of the test used when
this assumption is dropped is sometimes called Welch's t-test. These tests are often referred to
as "unpaired" or "independent samples" t-tests, as they are typically applied when the
statistical units underlying the two samples being compared are non-overlapping.
Independent two-sample t-test for Unequal sample size and equal variance
This test is used only when it can be assumed that the two distributions have the same
variance. The t statistic to test whether the means are different can be calculated as follows:
Where,
Note that the formulae above are generalizations for the case where both samples have equal
sizes (substitute n1 and n2 for n).
is an estimator of the common standard deviation of the two samples: it is defined in

this way so that its square is an unbiased estimator of the common variance whether or not
the population means are the same. In these formulae, n = number of participants, 1 = group
one, 2 = group two. n − 1 is the number of degrees of freedom for either group, and the total
sample size minus two (that is, n1 + n2 − 2) is the total number of degrees of freedom, which
is used in significance testing.
ANOVA:
In statistics, one-way analysis of variance (abbreviated one-way ANOVA) is a technique

used to compare means of two or more samples (using the F distribution). This technique can
be used only for numerical data.
The ANOVA tests the null hypothesis that samples in two or more groups are drawn from the
same population. To do this, two estimates are made of the population variance. These
estimates rely on various assumptions. The ANOVA produces an F statistic, the ratio of the
variance calculated among the means to the variance within the samples. If the group means
are drawn from the same population, the variance between the group means should be lower
than the variance of the samples, following central limit theorem. A higher ratio therefore
implies that the samples were drawn from different populations.
The degrees of freedom for the numerator is I-1, where I is the number of groups (means).
The degrees of freedom for the denominator is N - I, where N is the total of all the sample
sizes.
Typically, however, the one-way ANOVA is used to test for differences among at least two
groups, since the two-group case can also be covered by a t-test (Gosset, 1908). When there
are only two means to compare, the t-test and the F-test are equivalent; the relation between
ANOVA and t is given by F = t2.
Grand Mean
The grand mean of a set of samples is the total of all the data values divided by the total
sample size. This requires that you have all of the sample data available to you, which is
usually the case, but not always. It turns out that all that is necessary to find perform a one-
way analysis of variance are the number of samples, the sample means, the sample variances,
and the sample sizes. Another way to find the grand mean is to find the weighted average of
the sample means. The weight applied is the sample size.
Total Variation
The total variation (not variance) is comprised the sum of the squares of the differences of
each mean with the grand mean.
There is the between group variation and the within group variation. The whole idea behind
the analysis of variance is to compare the ratio of between group variance to within group
variance. If the variance caused by the interaction between the samples is much larger when
compared to the variance that appears within each group, then it is because the means aren't
the same.
Between Group Variation
The variation due to the interaction between the samples is denoted SS(B) for Sum of
Squares Between groups. If the sample means are close to each other (and therefore the
Grand Mean) this will be small. There are k samples involved with one data value for each
sample (the sample mean), so there are k-1 degrees of freedom.
The variance due to the interaction between the samples is denoted MS(B) for Mean Square
Between groups. This is the between group variation divided by its degrees of freedom. It is
also denoted by .
Within Group Variation
The variation due to differences within individual samples, denoted SS(W) for Sum of
Squares Within groups. Each sample is considered independently, no interaction between
samples is involved. The degrees of freedom is equal to the sum of the individual degrees of
freedom for each sample. Since each sample has degrees of freedom equal to one less than
their sample sizes, and there are k samples, the total degrees of freedom is k less than the total
sample size: df = N - k.
The variance due to the differences within individual samples is denoted MS(W) for Mean
Square Within groups. This is the within group variation divided by its degrees of freedom. It
is also denoted by . It is the weighted average of the variances (weighted with the degrees
of freedom).
F test statistic
Recall that a F variable is the ratio of two independent chi-square variables divided by their
respective degrees of freedom. Also recall that the F test statistic is the ratio of two sample
variances, well, it turns out that's exactly what we have here. The F test statistic is found by
dividing the between group variance by the within group variance. The degrees of freedom
for the numerator are the degrees of freedom for the between group (k-1) and the degrees of
freedom for the denominator are the degrees of freedom for the within group (N-k).
Chi-Square Test for Independence of Attributes:
The test is applied when you have two categorical variables from a single population. It is
used to determine whether there is a significant association between the two variables.
Suppose N observations are considered and classified according two characteristics say A and
B. We may be interested to test whether the two characteristics are independent. In such a
case, we can use Chi square test for independence of two attributes.
It has to be noted that the Chi square goodness of fit test and test for independence of
attributes depend only on the set of observed and expected frequencies and degrees of
freedom. These two tests do not need any assumption regarding distribution of the parent
population from which the samples are taken.
Since these tests do not involve any population parameters or characteristics, they are also
termed as non-parametric or distribution free tests. An additional important fact on these two
tests is they are sample size independent and can be used for any sample size as long as the
assumption on minimum expected cell frequency is met.
• Degrees of freedom: The degrees of freedom (DF) is equal to: DF = (r - 1) * (c - 1)

where r is the number of levels for one categorical variable, and c is the number of
levels for the other categorical variable.
• Expected frequencies: The expected frequency counts are computed separately for
each level of one categorical variable at each level of the other categorical variable.
Compute r * c expected frequencies, according to the following formula.
Er,c = (nr * nc) / n
where Er,c is the expected frequency count for level r of Variable A and level c of
Variable B, nr is the total number of sample observations at level r of Variable A, nc is
the total number of sample observations at level c of Variable B, and n is the total
sample size.
• Test statistic: The test statistic is a chi-square random variable (Χ2) defined by the
following equation.
Χ2 = Σ [ (Or,c - Er,c)2 / Er,c ]
where Or,c is the observed frequency count at level r of Variable A and level c of
Variable B, and Er,c is the expected frequency count at level r of Variable A and level
c of Variable B.
P-value: The P-value is the probability of observing a sample statistic as extreme as the test
statistic. Since the test statistic is a chi-square, use the Chi-Square Distribution Calculator to
assess the probability associated with the test statistic. Use the degrees of freedom computed
above.
Correlation Coefficient:
Correlation is one of the statistical tools very widely applied as a tool of analysis in every
subject. It is a statistical measure of establishing qualitative relationship between two or more
variables. Through correlation, it is possible to indicate the direction of relationship between
variables. In research, whenever qualitative variables are used, their relationship is studied
through correlation. Correlation is measured applying different methods in statistics. They
are, Graphical method, Scatter diagram method, Karl Pearson’s coefficient of correlation and
Spearman’s Rank correlation. A very important point to note is that correlation value for any
set of values should not exceed +1 or -1.
The formula for Pearson's correlation takes on many forms. A commonly used formula is
shown below.
A simpler looking formula can be used if the numbers are converted into z scores:
where zx is the variable X converted into z scores and zy is the variable Y converted into z
scores.
Friedman Test:
The Friedman test is a non-parametric test for testing the difference between several related
samples. The Friedman test is an alternative for repeated measures analysis of variances
which is used when the same parameter has been measured under different conditions on the
same subjects.
CHAPTER 3
REVIEW OF LITERATURE
3.1 Theoretical Framework
Brand and branding defined
It is widely acknowledged amongst both practitioners and academics that branding has
become a tool of strategic importance. Various definitions of branding appear in literature.
The American Marketing Association (1994) defines a brand as a “name, term, sign, symbol
or design, or a combination of them intended to encourage prospective customers to
differentiate a producer’s product (s) from those of competitors”.
A primary function of the brand is to provide convenience and clarity in decision making by
providing a guarantee of performance and communicating a set of expectations thereby
offering certainty and facilitating the buying process. On the emotional side, the function of a
brand is to evoke a set of associations and furthermore symbolize the consumer’s persona
through brand imagery.
However, this and other definitions of a brand fail to capture the essence of what branding
involves or achieves (Marketing in a Global Economy Proceedings, 2000). In order to be
successful, images and symbols must relate to and indeed exploit the needs, values and
lifestyles of consumers in such a way that the meanings involved give added values, and
differentiate the brand from other brands (Broadbent and Cooper, 1987).
In its totality, a brand can be described as a “trademark that communicates a promise

(Phillips, 1988). This promise involves a set of symbolic and functional attributes that the
market place associates with the brand. Symbolic attributes are those that fulfill internally
generated needs for self-enhancement, role position, group membership or ego identification
(Park et al., 1996) whereas functional brand attributes solve an externally generated
consumption related problem.
Ambler and Styles (1996) describe two different views of defining a brand. The first is the
product plus view, when the brand is seen as an addition to the product, and in this view a
brand is also called an identifier. The second is the holistic view that communicates the focus
on the brand itself that is considered to be much more than just the product. The brand is said
to be the sum total of all elements of the marketing mix. Brands can also be explained based
on their elements-“those trademarkable devices that serve to identify and differentiate the
brand (ego, brand names, logos, symbols, characters, slogans, jingles and packages (Keller,
2002).
DeChernatony and MacDonald (1998) in an attempt to emphasize the increased value that
accrues to the consumer by buying the established brand rather than a generic or commodity
product, offer the following definition of a brand: “A successful brand is an identifiable
product, service, person or place, augmented in such a way that the buyer or user perceives
relevant, unique added values which match their needs most closely. Furthermore, its success
results from being able to sustain those added values in the face of competition”.
Some people distinguish the psychological aspect of a brand from the experiential aspect. The
experiential aspect consists of the sum of all points of contact with the brand and is known as
the brand experience. The psychological aspect, sometimes referred to as the brand image,
is a symbolic construct created within the minds of people and consists of all the information
and expectations associated with a product or service.
People engaged in branding seek to develop or align the expectations behind the brand
experience, creating the impression that a brand associated with a product or service has
certain qualities or characteristics that make it special or unique. A brand is therefore one of
the most valuable elements in an advertising theme, as it demonstrates what the brand owner
is able to offer in the marketplace. The art of creating and maintaining a brand is called brand
management whereas orientation of the whole organization towards its brand is called brand
orientation.
Careful brand management seeks to make the product or services relevant to the target
audience. Brands should be seen as more than the difference between the actual cost of a
product and its selling price - they represent the sum of all valuable qualities of a product to
the consumer. There are many intangibles involved in business, intangibles left wholly from
the income statement and balance sheet which determine how a business is perceived. The
learned skill of a knowledge worker, the type of mental working, the type of stitch: all may
be without an 'accounting cost' but for those who truly know the product, for it is these people
the company should wish to find and keep, the difference is incomparable. A brand which is
widely known in the marketplace acquires brand recognition. When brand recognition
builds up to a point where a brand enjoys a critical mass of positive sentiment in the
marketplace, it is said to have achieved brand franchise.
One goal in brand recognition is the identification of a brand without the name of the
company present. Consumers may look on branding as an important value added aspect of
products or services, as it often serves to denote a certain attractive quality or characteristic
(see also brand promise). From the perspective of brand owners, branded products or services
also command higher prices. Where two products resemble each other, but one of the
products has no associated branding (such as a generic, store-branded product), people may
often select the more expensive branded product on the basis of the quality of the brand or the
reputation of the brand owner.
Brand Awareness
Brand awareness refers to customers' ability to recall and recognize the brand under different
conditions and link to the brand name, logo, jingles and so on to certain associations in
memory. It helps the customers to understand to which product or service category the
particular brand belongs to and what products and services are sold under the brand name. It
also ensures that customers know which of their needs are satisfied by the brand through its
products. (Keller) 'Brand love', or love of a brand, is an emerging term encompassing the
perceived value of the brand image. Brand love levels are measured through social media
posts about a brand, or tweets of a brand on sites such as Twitter. Becoming a Facebook fan
of a particular brand is also a measurement of the level of 'brand love'.
Brand Preference
Brand Preference is the measure of Brand Loyalty in which a consumer will choose a
particular brand in presence of competing brands, but will accept substitutes if that brand is
not available. Brand Loyalty refers to the extent of the faithfulness of consumers to a
particular brand, expressed through their repeat purchases, irrespective of the marketing
pressure generated by the competing brands.
Analysis Process
Fig 3.1: Project Study Analysis Process

BP is a measure
BL expressed thru
RP is based on CS
Cust will get satisfied when CE met or

exceed
To analyze
After the purchasing process, it
Purchase
is necessary to analyze the buying
Consumer Buying Behavior
Consumer behavior as a body of knowledge emphasizes on the study of both physical

activities and decision-making processes that occur in the process of search, evaluation,
acquiring, use and disposal of products. Consumer behavior encompasses vast areas of
human activities that have direct interface with technology. Borrowing heavily from diverse
sweep and come in handy to adapt technology to everyday needs of society. Backed by
abundant wealth of information on areas such as consumers’ tastes, shopping habits, store
patronage and life style, it has become possible for many marketing research firms to come
up with reliably accurate work on many aspects of marketing including product demand
forecast, perception of brand image, brand preference, brand loyalty and brand equity
position. This approach to problems in marketing management seems to have been well
established and therefore, is the popular means adopted in the area of consumer product
whether it is physical product or services.
Consumer behavior is the study of when, why, how, and where people do or do not buy a
product. It blends elements from psychology, sociology, social anthropology and economics.
It attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics and behavioral
variables in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in general.
Customer behaviour study is based on consumer buying behavior, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset
for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
management, personalisation, customisation and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.
Each method for vote counting is assumed as social function but if Arrow’s possibility
theorem is used for a social function, social welfare function is achieved. Some specifications
of the social functions are decisiveness, neutrality, anonymity, monotonicity, unanimity,
homogeneity and weak and strong Pareto optimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation
with the ranks. Marketing provides services in order to satisfy customers. With that in mind,
the productive system is considered from its beginning at the production level, to the end of
the cycle, the consumer (Kioumarsi et al., 2009).
Factors influencing Consumer Behavior
The starting point for understanding consumer buying behavior is the stimulus – response
model. It is generally known as Black Box Model. As this model shows, both marketing and
environmental stimuli enter the buyer’s consciousness. In turn, the buyer’s characteristics and
decision process lead to certain purchase decisions. The marketer’s task is to understand what
happens in the buyer’s consciousness between the arrival of outside stimuli and the buyer’s
purchase decisions. This model indicates, a consumer’s buying behavior is influenced by
cultural, social, personal, and psychological factors. Knowledge of such factors that influence
consumer behavior can help to predict how consumers will respond to their products.
Table 3.1: Black box model

ENVIRONMENTAL FACTORS BUYER'S BLACK BOX
BUYER'S
Marketing Environmental Buyer
Decision Process RESPONSE
Stimuli Stimuli Characteristics
Problem
Economic Attitudes recognition
Product choice
Product Technological Motivation Information search
Brand choice
Price Political Perceptions Alternative
Dealer choice
Place Cultural Personality evaluation
Purchase timing
Promotion Demographic Lifestyle Purchase decision
Purchase amount
Natural Knowledge Post-purchase
behavior
The black box model shows the interaction of stimuli, consumer characteristics, and decision
process and consumer responses. It can be distinguished between interpersonal stimuli
(between people) or intrapersonal stimuli (within people). The black box model is related to
the black box theory of behaviorism, where the focus is not set on the processes inside a
consumer, but the relation between the stimuli and the response of the consumer. The
marketing stimuli are planned and processed by the companies, whereas the environmental
stimulus is given by social factors, based on the economical, political and cultural
circumstances of a society. The buyer’s black box contains the buyer characteristics and the
decision process, which determines the buyer’s response.
The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem. However,
in reality many decisions are not made in awareness of a determined problem by the
consumer.
Culture
Culture encompasses the values, arts, customs and skills of people in a given society. Cultural
trends reflect the social values of the population and, as such, have important implications for
market segmentation, product development, advertising and other aspects of marketing
strategy. Social class categories can be identified by income, education level and occupation.
The relationship between social class and purchasing patterns, nevertheless, provides an
important link for marketers in strategy planning.
Culture includes the basic values, perceptions, preferences, and behaviors that a person learns
from family and other key institutions. Subcultures are “cultures within cultures” that have
distinct values and lifestyles. People with different cultural, subcultural and social class
characteristics have different products and brand preferences.
Social Factors
Social factors also influence a buyer’s behavior. A person’s reference groups such as, family,
friends, social organizations, professional associations strongly affect product and brand
choices. The person’s position within each group can be defined in terms of role and status. A
buyer chooses products and brands that reflect his or her role and status.
Demographic Factors
The buyer’s age, life-cycle stage, occupation, economic circumstances, lifestyle, personality
and other personal characteristic influence his or her buying decisions. Young consumers
have different needs and wants from those who are old; consumers with higher incomes buy
differently from those who have less to spend. Consumer lifestyles have also an important
influence on buyer’s choices.
TYPES OF BUYING BEHAVIOR
The following are the several types of buying behavior that resides with everyone.
Dissonance-Reducing Buying Behavior
It occurs when consumers are highly involved with an expensive, infrequent, or risky
purchase, but see little difference among brands. For example, consumers buying carpets may
face a high-involvement decision because carpet is expensive and self-expressive. In this
case, because perceived differences are not large, buyers may shop around to learn what is
available, but buy relatively quickly. They may respond primarily to a good price or to a
purchase convenience. After the purchase, consumers might experience post-purchase
dissonance (after-sale discomfort) when they notice certain disadvantages of the purchased
carpet brand or hear favorable things about brands not purchased. To counter such
dissonance, the marketer’s after-sale communications should provide evidence and support to
help consumers feel good about their brand choices.
Habitual Buying Behavior
It occurs under conditions of low consumer involvement and little significant brand
difference. For example, take salt. Consumers have little involvement in this product
category; they simply go to the store and reach for a brand. If they keep reaching for the same
brand, it is out of habit rather than strong brand loyalty. Consumers appear to have low
involvement with most low-cost, frequently-purchase products. Because they are not highly
involved with the product, consumers may not evaluate choice after purchase. Thus, the
buying process involves brand beliefs formed by passive learning, followed by purchase
behavior, which may not evaluate the choice even after purchase behavior, which may or may
not be followed by evaluation. As buyers are not highly committed to any brand, marketers of
low involvement products with few brand differences often use price and sales promotions to
stimulate product trail.
Variety Seeking Buyer Behavior
Consumers undertake variety-seeking buying behavior in situations characterized by low

consumer involvement, but significant perceived brand differences. In such cases, consumers
often do a lot of brand switching. For example, when purchasing cookies, a consumer may
hold some beliefs, choose a cookie brand without much evaluation, then evaluate that brand
during consumption. But the next time, the consumer might pick another brand out of
boredom or simply to try something different. Brand switching occurs for the sake of variety
rather than because of dissatisfaction. The market leader will try avoiding out-of-stock
conditions, and running frequent reminder advertising. Challenger firms will encourage
variety seeking by offering lower prices, deals, coupons, free samples and advertising that
presents reasons for trying something new.
Impulse and Planned Buying
The purchase of an ice cream may be planned or made on impulse. In some cases, a purchase
may be planned in advance, but the timing of the actual purchase may be decided on the
impulse of the moment. Impulse buying is sometimes classified into reminder buying or
suggestion buying. National advertisers try through displays in retail stores to remind the
buyer of products he has seen advertised. Toothpaste is an example.
Suggestion buying occurs when the consumer’s sees a product displayed and realizes that he
could use it. An example would be a cigarette lighter. Impulse buying has grown particularly
with the development of the self-service retail store.
BUYING DECISIONS
Consumer buying behavior is influenced by the buyer’s decision making process. The buying
situation can vary from one of routine-response behaviors to limited problem solving to
extensive problem solving. Buying is not a single act but a multi-component decision on the
need class, generic class, product class, product form, brand, vendor, quantity, timing and
method of payment. The buyer goes through a process consisting of need arousal,
information search, evaluation behavior, purchase decision and post-purchase feelings. At
each decision stage, characteristics of the buyer, product, seller and selling situation interact
to influence the buying outcome. A person’s buying behavior is the result of the complex
interplay of all these cultural, social, personal, and psychological factors. More complex
decision usually involve more buying participants and more buyer deliberation. Consumers
undertake complex buying behavior when they are highly involved in a purchase and
perceive significant differences among brands. Marketers of high-involvement products must
understand the information gathering and evaluation behavior of high-involvement
consumers.
Fig 3.2: Buying Decision Process

Need Recognition
The buyer senses a difference between his or her actual state and some desired state. The
need can be triggered by internal stimuli when one of the person’s normal needs – hunger,
thirst, sex, etc. rise to a high enough to become a drive. From previous experience, the person
has learned how to cope with this drive and is motivated toward objects that he or she knows
will satisfy it.
Information Search
The consumer can obtain information from any of several sources. These include: personal
sources (family, friends, neighbors, and acquaintances), commercial sources (advertising,
salespeople, dealers, packaging and displays), public sources (mass media, consumer-rating
organizations) and experimental sources (handling, examining and using the product).
The relative influence of these information sources varies with the product and the buyer. The
most effective sources, however, tend to be personal. Personal sources appear to be even
more important in influencing the purchase of services. Commercial sources normally inform
the buyer, but personal sources legitimize or evaluate products for the buyer. The marketer
should carefully identify consumer’s sources of information and the importance of each
source.
Consumers should be asked how they first heard about the brand, what information they
received, and the information is critical in preparing effective communication strategies
aimed at target markets. Word-of-mouth communication can have a significant impact on
purchase decisions. The search for information usually leads to the establishment of criteria
for choosing among specific brands. Consumers are usually aware of some brands and
unaware of others. Those they are aware of fall into an inert set, an inept set or an evoked set.
The final choice will be made from the latter. The costs involved in searching for
information, sometimes outweigh the benefits.
Evaluation of Alternatives
The marketer needs to know about the alternative evaluation, that is, how the consumer
processes information to arrive at brand choices. Each consumer is trying to satisfy some
need and is looking for certain benefits that can be acquired by buying product or service.
Further, each consumer sees a product as a bundle of attributes with varying capacities for
delivering these benefits and satisfying the need. Marketers should be more concerned with
attribute importance than attribute salience.
The consumer’s beliefs held about a particular attribute are based on his or her experience
and the effect of selective perception, selective distortion and selective retention. The utility
function shows how the consumer expects total product satisfaction to vary with different
levels of different attributes.
Purchase Decision
Purchase decisions often begin with trial purchases of limited quantities. Repeat purchases
are closely related to brand loyalty. Store choice is an important factor in purchase decisions.
The bulk of consumer spending occurs in stores, but catalog sales comprise an increasing
percentage of retail sales. The purchase decision includes decisions on financing, installation,
related products and services. The marketing implications of purchase decisions depend on
whether a mass-marketing approach or market-segmentation approach is adopted. Generally,
the consumer’s purchase decision will be to buy the most preferred brand, but two factors can
come between the purchase intention and the purchase decision. They are attitudes of others
and unexpected situational factors.
Purchase
Purchase
Attitude of
Intention
Decision
others Unexpected
EVALUATION
Situatio
OF
Fig 3.3: Steps between Purchase Intention & Purchase Decision

A consumer’s decision to change, postpone, or avoid a purchase decision is influenced
heavily by perceived risk. Many purchases involve some risk taking. Anxiety results when
consumers cannot be certain about the purchase outcome. The amount of perceived risk
varies with the amount of money at stake, the amount of purchase uncertainty, and the
amount of consumer self-confidence. A consumer takes certain actions to reduce risk, such as
avoiding purchasing decisions, gathering more information, and looking for national brand
names and products with warranties. The marketer must understand the factors that provoke
feelings of risk in consumers and must provide information and support that will reduce the
perceived risk.
Post-Purchase Behavior
In the post-purchase evaluation, consumers compare the product’s performance against their
expectations. Cognitive dissonance occurs when consumers feel a discrepancy between their
expectations of a product and its performance. Follow-up advertising can be designed to
reassure consumers that they have made the right choice. Consumers base their expectations
on messages they receive from sellers, friends and other information sources. If the seller
exaggerates the product’s performance, consumer expectations will not be met, a situation
that leads to dissatisfaction. The larger the gap between expectations and performance, the
greater is the consumer’s dissatisfaction. On the other hand, every purchase involves
compromise. Consumers feel uneasy about acquiring the drawbacks of the chosen brand and
about losing the benefits of the brands not purchased. Thus, consumers feel at least some
post-purchase dissonance for every purchase. A satisfied customer buys again, talks
favorably to others about the product, pays less attention to competing brands and advertising
and buys other products from the company.
3.2 Research Studies
Niedrich Ronald W. and Swain Scott D (2003), in their article titled, “The Influence of
Pioneer Status and Experience Order on Consumer Brand Preference: A Mediated-
Effects Model” found: Within the behavioral literature, two basic explanations of the
pioneering advantage had been offered. Early work focused on order-based explanations.
More recently, schema-based explanations had also been suggested. The authors proposed a
mediated-effects model of the pioneering advantage and test the model in two separate
longitudinal studies. Both experiments support the proposed model. The authors found that
experience order and pioneer-status have additive effects on brand preference such that
perceptions of first-in-market and first-experienced brands are more favorable, suggesting
that both explanations are operative. The authors also provide evidence that the effects of
pioneer status on brand preference are mediated by attitude toward the brand and company
credibility, while the effects of experience order on brand preference are mediated by
attitude toward the brand and attribute recall. These data support the notion that the effect of
pioneer status on brand preference was the result of both brand-level and company-level
associations.
Dr. Rajagopal (2009), in his article titled, “Conational Drivers Influencing Brand
Preference Among Consumers” discussed: Consumers recognize brands by building
favorable attitude towards them and through the purchase decision process. Brand preference
is understood as a measure of brand loyalty in which a consumer exercises his decision to
choose a particular brand in presence of competing brands. The study aimed at discussing the
cognitive factors that determine brand preference among consumers based on empirical
research. Brand attributes including emotions, attitudes, personality, image, reputation and
trust which influence consumer perceptions and temporal association with brands are
critically examined in the study. The study revealed that higher brand relevance and trust
build strong the association of consumers with brand in long-run.
Purohit H.C (2008), in his article titled, “Customer Relationship Management and Brand
Loyalty Through Word Of Mouth (WOM) Communication” discussed: Customer loyalty
is not a choice any longer with business; it is the only way of building a sustainable
competitive advantage. Building loyalty with key customers had become a core marketing
objective shared by key players in all industries catering to business customers.
Communication with customer partners is a necessary process of relationship marketing. It
helps in relationship development, foresters trust, and provides the information and
knowledge needed to undertake cooperative and collaborative activities of relationship
marketing. CRM refers to a conceptually broad phenomenon of business activity; if the
phenomenon of cooperation and collaboration with customers become the dominant
paradigm of marketing practice the satisfaction level of the consumers goes high up to the
level of delight. The building of customer relationship was a fundamental business of every
enterprise and it requires a holistic strategy and process to make it successful. The proposed
study will focus on the issues related with customer satisfaction, repeat purchase behavior,
building consumer relationship management through customer loyalty and suggest the
measures to minimize the challenges of a highly competitive global market.
Sha Yang, Gerg M. Allenby and Geraldine Fennel (2002), in their article titled,
“Modeling Variation in Brand Preference: The Roles of Objective Environment and
Motivating Conditions” discussed: People consume products in a variety of environments.
They drink beer, for example, by themselves, with close friends, on the beach, when playing
cards, at tailgate parties, and while having dinner with their boss. Within these environments,
an individual may prefer Schaefer beer when drinking alone, Budweiser when having a party,
Corona when lying on the beach, and Heineken when dining out. Preferences change across
environments because the benefits sought by the consumer change. Consumers may feel
thirsty while lying on the beach, and they may want to display refined tastes while dining out.
Moreover, the effect of environment may not be homogeneous, as some people enjoy meeting
new people in social gatherings while others may prefer to visit with those who are more
familiar. Even though consumers face the same objective environment, different motivating
conditions and brand preferences may arise.
It is important for marketing managers to understand how brand preferences change across
people, environments, and motivating conditions and, more importantly, which product
attributes are associated with these changes. Communication and positioning decisions are
more likely to be effective if the relationships among objective environment, motivating
conditions, and preferences for brand attributes are known. If motivating conditions are
uniquely associated with individuals across environments or with environments across
individuals, then the basis of marketing analysis is at the individual or environmental level. If,
however, motivating conditions arise from the intersection of individuals and their
environments, then analysis conducted at the individual or environmental level will be
insufficient to understand human behavior. In such a case, firms may want to view different
environments as distinct markets, each with its own pattern of heterogeneous wants and
competitive environment.
The paper investigated on the influence of objective environments and motivating conditions
on brand preference. The mathematical model is based on the economic framework of utility
maximization and discrete choice, and it accommodates three challenges that arise in
modeling variation in brand preference. First, consumer consideration sets and purchase
histories can vary widely across individuals in a relevant universe. Because brand preferences
are the dependent variables in our analysis, our method must be able to accommodate a large
number of brands to avoid restricting its measured variation as the objective environment and
motivating conditions change. The authors proposed a method using partial ranking data,
combined with pairwise trade-off data, to obtain estimates of brand preference for all brands
in their study. Second, the model must allow for multiple effects, leading to both within-
person and across-person heterogeneity in preferences. Variation in brand preference is
investigated within a hierarchical Bayes model in which motivating conditions are related to
brand preference through a regression model in the random effects specification. Third, it is
often counterintuitive for respondents to express preferences for attribute combinations that
do not actually exist. A statistical method model is proposed for decomposing aggregate
brand preferences into preferences for core and extended product attributes.
Data were collected from a national survey of consumer off-premises beer consumption. A
total of 842 respondents from six different geographic markets participated. Data include
preferred brand sets under different objective environments, brand choice rankings, product
attributes, and motivating conditions. Effect sizes for respondent and objective environment
are both large. Researchers found that the level of explained variance in brand and attribute
preference attributable to motivating conditions is greater than that accounted for by a simple
interaction of respondent and environmental effects, suggesting that motivations provide a
more sensitive description of variation in brand preference. The findings indicate that 1)
across individuals the objective environment is associated with heterogeneous, not
homogeneous, motivating conditions; 2) within an individual, motivating conditions may
change with variation in the objective environment; and 3) motivating conditions are related
to preferences for specific attributes.
Their results implied that the unit of analysis for marketing was properly a person-activity
occasion. Brands, for example, are used in individual instances of behavior—a brand
performs well or poorly on individual occasions of use. The relevant universe was enumerated
in person-activity occasions rather than in respondents. For some activities, such as doing the
laundry, the occasions may typically occur in relatively unchanging environments, and it may
be appropriate to allow respondents to summarize over occasions of the activity. For other
activities, such as snacking or drinking beer, the activity may occur in distinct kinds of
environment. In the case of such activities, it was appropriate to allow for the effect of
changing environments to manifest themselves, if present. Doing so may require sampling
from the relevant universe of person-activity occasions over an appropriate time frame. The
design must be such as to record intra-individual variability due to changes in the
environment for action.
S. Sriram, K. Pradeep Chintagunta and Ramya Neelamegham (2005), in their article titled,
“Effects of Brand Preference, Product Attributes, and Marketing Mix Variables in
Technology Product Markets”, discussed: The authors developed a demand model for
technology products that captures the effect of changes in the portfolio of models offered by a
brand as well as the influence of the dynamics in its intrinsic preference on that brand’s
performance. In order to account for the potential correlation in the preferences of models
offered by a particular brand, researcher’s used a nested logic model with the brand (e.g.,
Sony) at the upper level and its various models (e.g., Mavica, FD, DSC, etc.) at the lower
level of the nest. Relative model preferences were captured via their attributes and prices.
Researcher’s allowed for heterogeneity across consumers in their preferences for these
attributes and in their price sensitivities in addition to heterogeneity in consumers’ intrinsic
brand preferences. Together with the nested logic assumption, this allows for a flexible
substitution pattern across models at the aggregate level. The attractiveness of a brand’s
product line changes over time with entry and exit of new models and with changes in
attribute and price levels. To allow for time-varying intrinsic brand preferences, the
researcher’s used a state-space model based on the Kalman filter, which captures the
influence of marketing actions such as brand-level advertising on the dynamics of intrinsic
brand preferences. Hence, the proposed model accounts for the effects of brand preferences,
model attributes and marketing mix variables on consumer choice. First, researcher’s carried
out a simulation study to ensure that their estimation procedure is able to recover the true
parameters generating the data. Then, the researcher’s estimated their model parameters on
data for the U.S. digital camera market. Overall, it was found that the effect of dynamics in
the intrinsic brand preference was greater than the corresponding effect of the dynamics in
the brand’s product line attractiveness. Assuming plausible profit margins, researcher’s
evaluated the effect of increasing the advertising expenditures for the largest and the smallest
brands in this category and find that these brands can increase their profitability by increasing
their advertising expenditures. Researcher’s also analyzed the impact of modifying a camera
model’s attributes on its profits. Such an analysis could potentially be used to evaluate if
product development efforts would be profitable.
Denford Chimboza and Edward Mutandwa (2007) in their article titled, “Measuring the
determinants of brand preference in a dairy product market” discussed: Branding is
increasingly being used as a strategy for managing markets in developed countries while
developing countries still lag behind. The objective of the study was to assess the level of
brand awareness and factors underlying brand preference of dairy brands in Chitungwiza and
Harare urban markets in Zimbabwe. A total of 90 respondents who included individual and
institutional consumers were selected using judgmental and simple random sampling
respectively. Primary data was collected using structured interview schedules developed for
each category of consumers. Consumer product awareness indices, cluster analysis and factor
analysis were the main tools used in the analysis. The findings of the study showed that 52%
of the respondent consumers were aware of ARDA dairy brands despite having come across
few ARDA DDP advertisements. Four factors were identified as key determinants of dairy
product choice namely promotion, price and availability of product, attractive packaging and
product quality.
Adeolu B. Ayanwale, Taiwo Alimi and Matthew A. Ayanbimipe (2005) in their article titled,
“The Influence of Advertising on Consumer Brand Preference” discussed: The
proliferation of assorted brands of food drinks in the country has led to cut-throat competition
for increased market share being witnessed among the operators in the food drink industry.
When competition is keen and the consumers are faced with brand choice in the market, it
becomes imperative for the manufacturers to understand the major factors that can attract the
attention of buyers to his own brand. These then form the basis for marketing planning and
action. The study, which was based on a survey of 315 randomly selected consumers of food
drinks in Lagos, Ibadan and Ile-Ife, cities in Southwestern Nigeria, examined the role played
by advertising in influencing consumers’ preference for Bournvita, which is one of the
leading food drinks in the Food and Beverage industry in Nigeria. Results revealed that both
male and female and different age groups were equally influenced by advertising in their
preference for the brand. 38.73% of the consumers showed preference for Bournvita out of
the various brands of the food drink studied. The major reasons advanced for the preference
are its captivating advertising (42.62%) and rich quality (40.16%). TV advertising was most
preferred by 71.43% of the respondents of all the media used in advertising Bournvita.
The need for high preference to advertising is therefore highlighted for companies that want
to not only retain their market but take positive steps to increase their market share.
Dr. G.Sridhar, Dr. N.Ramesh Kumar and Dr. G. Narasimha Murthy (2010), in their article
titled, “Susceptibility to reference group influence among rural consumers”, discussed:
The diversity in the reference group influence on consumer purchase in general and with
reference to rural consumers was examined. The literature on reference groups’ influence on
rural consumer behavior reveals the role and importance of opinion leaders and the
susceptibility of consumers on reference groups for any purchase. Many findings in rural
marketing domain concur with the literature on the reference group influence construct done
elsewhere. Consumers who are susceptible to interpersonal influence will try to satisfy
reference groups' expectation by complying with groups' norms. Reference groups in all had
been found to have profound influence on consumers' decision making. This influence is
different for several sub cultures and situations. Consumers may accept a reference group
influence because of its role in providing informational, utilitarian and value expressive
influences.
Factors affecting brand preference
Brand adoption or preference has been receiving increased attention in extant literature.
Cooper (1993) noted that most new innovations come with high risks as most of them failed
in the marketplace creating the need for marketers to have a clear understanding of success
factors in brand adoption. Theories of adoption have often been used to explain how
consumers form preferences for various goods and services (Rogers, 1995; Tornasky and
Klein, 1982; Mason, 1990; Charlotte, 1999). Generally, these theories emphasize on the
importance of complexity, compatibility, observability, triability, relative advantage, risk,
cost, communicability, divisibility, profitability, social approval, and product characteristics
in brand preference (Wee, 2003). The relative importance of each factor depends on the
nature of industry under consideration, location and social characteristics of the consumers of
the different brands.
Consumer choice behavior has also been studied using the five-step process step (need–
information search–evaluation of alternatives– purchase–post-purchase evaluation) problem
solving paradigm or through the progression of consumer choice from a product class to
brand choice (Dorsch et al., 2000).
Discrete choice models (Chintagunta, 1999; Bockenholt and Dillon, 2000) or neural networks
to model selection decisions (Papatla et al., 2002) have also been used in brand choice
research. Wee (2003) conducted a study to identify the factors affecting adoption of new
product innovations in the consumer electronic industry of Singapore using qualitative (focus
group discussions) and quantitative research techniques (survey with 151 respondents in the
16 - 35 year age group). The researcher considered two brands, the Mini Disc and the MP3
Portable player. Using factor analysis, seven factors were identified as critical in effecting
adoption of a player: relative advantage, perceived risk, complexity, compatibility,
observability, image and trialability. Of these factors, relative advantage conferred by the
player was the most important factor that consumers valued in their adoption decisions.
Li and Houston (1999) employed a sample of 1200 consumers in Taiwan to determine factors
underlying choice of market innovations. Price level, product variety and marketing
communications factors were identified as promoters of choice. The promotional (marketing
communications) mix has various elements – advertising, sales promotion, direct marketing,
exhibittions, sponsorship, personal selling, word of mouth, merchandising, public relations,
relationship marketing, corporate image and reputation etc.
Karjaluoto et al. (2005) investigated the consumer choice in the context of the mobile phone
industry in Finland using a sample of 196 respondents. Twenty-four questions were used to
assess consumer motivations in mobile phone choice. Seven estimated factors influencing
mobile phone choice were Innovative services, multimedia, design, brand and basic
properties, outside influence, price, and reliability explain and these accounted for about 70%
of the total variance. Some of the important product decisions in any marketing context are
product, variety, product performance, product features, product design, product presentation,
sizes etc (Doyle, 2002).
Consumer surveys often reveal that quality is one of the most important decision factors for
consumers, if not the most important (Keller, 2000). Product quality stands for the ability of a
product to perform its functions (Kotler, 2003).
Consumer Behavior Analysis
Proctor et al. (1982) noted that the principle aim of consumer behavior analysis is to explain
why consumers act in particular ways under certain circumstances. It tries to determine the
factors that influence consumer behavior, especially the economic, social and psychological
aspects which can indicate the most favored marketing mix that management should select.
Consumer behavior analysis helps to determine the direction that consumer behavior is likely
to make and to give preferred trends in product development, attributes of the alternative
communication method etc. consumer behaviors analysis views the consumer as another
variable in the marketing sequence, a variable that cannot be controlled and that will interpret
the product or service not only in terms of the physical characteristics, but in the context of
this image according to the social and psychological makeup of that individual consumer (or
group of consumers).
Source of Influence
Zacharias et al. (2009) found that irrespective of the occupation, respondents of their study
felt that friends and relatives strongly influence a consumer decision.
Erda (2009) found those personal sources; especially family and friends' influence consumer
decision making in rural markets. He found that about 29% of the sample was influenced by
family and 18% by friends while taking a decision to purchase products.
Dhumal et al. (2009) observed that peer group has a significant effect on the purchasing
pattern of rural consumers especially branded products.
Gupta and Mittal (2009) observed that head of the family has the highest influence on the
purchase of products followed by retailers, family members and relatives.
Velayudhan (2009) found that the influence of personal sources of information is higher in
rural areas when compared to urban areas. He also found that informal referent groups largest
sources of information in rural markets. Incidentally, more educated consumers also used
informal referent groups.
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4.1 Demographic Factors
The major demographic factors which influence the consumer buying behavior are analyzed
based on descriptive analysis. The factors which are discussed and analyzed are Age,
Education, Occupation and Monthly Income. These factors fall under the two major
classification which affects the consumer buying behavior known as Personal and Social
Factors.
AGE:
Table 4.1
Details of Age Group
S.No Age group Frequency Percent

1 18 – 30 81 67.5
2 31 – 43 21 17.5
The Table 4.1
3 44 & above 18 15.0
showed that the
4 Total 120 100.0
majority 67.5% of
the respondents were under 18 – 30 age group and the minority of 15% were the age of above
43. The obvious implications of this finding are the dominance of youths in the market for the
products of the Bajaj brand.
Figure 4.1
Percentage of respondents based on Age group
EDUCATIONAL QUALIFICATION:
Table 4.2
Details of Educational Qualification
S.No Qualification Frequency Percent

1 Below +2 25 20.8
2 +2 or Diploma 35 29.2
3 UG 35 29.2
4 PG & Professionals 25 20.8
5 Total 120 100.0
The Table 4.2 shows that the majority 29.2% of the respondents was +2 or Diploma or UG
qualified and the minority 20.8% of the respondents was below +2 or PG & Professionals.
Figure 4.2
Percentage of respondents Education
OCCUPATION:
Table 4.3
Occupation Information about the Respondents

S.No Occupation Frequency Percent
1 Self Employed 19 15.8
2 Private Sector 55 45.8
3 Public Sector 23 19.2
4 Student 21 17.5
5 Others 2 1.7
6 Total 120 100.0
The Table 4.3 shows that the majority 45.8% of the respondents was working in the private
sector and the minority 1.7% was working in other than the given occupation.
Figure 4.3
Percentage of respondents Occupation

MONTHLY INCOME:
Table 4.4
Details of Monthly Income
S.No Income Level Frequency Percent

1 5000 & below 8 6.7
2 5001 - 10000 37 30.8
3 10001 - 15000 31 25.8
4 15001 - 20000 18 15.0
5 20000 & above 26 21.7
6 Total 120 100.0
The Table 4.4 shows that the majority 30.8% of the respondents was earning between 5001
and 10,000 rupees per month and the minority 6.7% of the respondents were earning between
5000 and below. This suggests that the medium income level person prefers the Bajaj brand
more than the others.
Figure 4.4
Percentage of respondents Income Level
4.2 Buying Decision Process
Consumer buying behavior is influenced by the buyer’s decision-making process. Marketers

have to go beyond the various influences on buyers and develop an in-depth understanding of
how consumers actually make their buying decisions. Specifically, marketers must identify
who makes the buying decision, the types of buying decision, and the stages in the buying
process. So, the five stage model of the typical buying process was analyzed.
NEED RECOGNITION:
Table 4.5
Need for buying the bike
S.No Need Frequency Percent

1 Workhorse 73 60.8
2 Run Errands 37 30.8
3 Routine Long Trips 10 8.3
4 Total 120 100.0
The Table 4.5 shows that the majority 60.8% of the respondents was buying the bike for the
purpose of using it for the regular work and the minority 8.3% was buying the bike for
routine long trips.
Figure 4.5
Percentage of Need for buying the bike
PURCHASE DECISION:
Table 4.6
Frequency Table Showing the Factors affecting the Purchasing Decision
S.No Factors R1 R2 R3 R4 R5 R6 R7 R8 R9
1 Advertisement 4 2 7 2 11 11 15 30 38
2 Power 5 18 23 13 26 12 11 8 4
3 Safety 5 14 16 29 15 15 13 11 2
4 Comfort 4 13 25 26 19 20 7 3 3
5 Price 11 30 16 21 14 16 6 6 0
6 Service 2 3 13 12 21 25 23 15 6
7 Mileage 51 26 8 7 7 4 7 8 2
8 Resale 2 1 2 3 2 5 18 28 59
9 Style 36 13 10 7 5 12 19 11 7
The above Frequency Table 4.6 shows that the majority of 51 respondents ranked the
Mileage as the major factor which affects the purchasing decision of the bike followed by the
Style and the majority of 59 respondents ranked the Resale Value as the minor factor which
affects their purchasing decision followed by the Advertisement. This suggests that the
majority of the customer prefer the Bajaj brand for mileage.
Friedman Test for Testing the Difference between the Factors:
For testing the difference between several related samples, Friedman test was used. Here, the
test was applied to test the significant difference between the nine different factors which
affects the purchasing decision of the bike. These factors are measured among respondents as
a ranking based measure. So, the factors which affects the purchasing decision of bike are
identical was used as a null hypothesis.
H0: The factors affecting the purchasing decision of bike are identical
H1: Atleast one factor is different from atleast one other factor
The result of the Friedman Test is given in Table 4.7
Table 4.7
Friedman Test
Mean Std. Chi-

S.No Factors Rank P value
Rank Deviation Square
1 Advertisement 7.04 2.171 8
2 Power 4.51 2.070 5
3 Safety 4.66 2.015 6
4 Comfort 4.37 1.791 4
5 Price 3.83 1.965 2 321.926 .000**
6 Service 5.71 1.858 7
7 Mileage 2.88 2.396 1
8 Resale Value 7.85 1.702 9
9 Style 4.17 2.836 3
Note: ** denotes significance at 1% level
Since p value is less than 0.01, the null hypothesis is rejected at 1% level of significance.
Hence, it is concluded that atleast two of the factors are significantly different from each
other. From the mean rank values, the mileage factor mean rank value is 2.88 which is the
lowest mean and thus it is the highest ranking factor among all. Thus, it is inferred that the
mileage factor is the major factor which affects the purchasing decision of the bike which is
followed by the price factor of the bike.
INFORMATION SEARCH:
PERSONAL SOURCE
Table 4.8
Personal Source of Information

S.No Personal Source Frequency Percent
1 Family 45 37.5
2 Friends 62 51.7
3 Neighbors 9 7.5
4 Acquaintances 4 3.3
5 Total 120 100.0
The Personal Source of Information about the brand depicted by Table 4.8 shows that the
majority 51.7% of respondents obtain information from friends and the minority 3.3% obtain
from other sources.
Figure 4.6
Percentage of Personal Source of Information

COMMERCIAL SOURCE
Table 4.9
Commercial Source of Information
S.No Commercial Source Frequency Percent

1 Advertisement 63 52.5
2 Sales People 26 21.7
3 Dealers 23 19.2
4 Displays 8 6.7
5 Total 120 100.0
The Table 4.9 shows that the majority 52.5% of respondents obtain information from the
advertisement and the minority 6.7% from displays. This suggests that the advertisement
plays the major mode in the Commercial Source of Information.
Figure 4.7
Percentage of Commercial Source of Information
EXPERIMENTAL SOURCE
Table 4.10
Experimental Source of Information
S.No Experimental Source Frequency Percent

1 Handling 50 41.7
2 Examining 36 30.0
3 Using the product 34 28.3
4 Total 120 100.0
The Table 4.10 shows that the majority of 41.7% of respondents obtain information about the
brand by handling the product and the minority 28.3% obtain by using the product. This
suggests that the Experimental Source of Information about the brand is higher with the
person who handles the product prior to the purchase.
Figure 4.8
Percentage of Experimental Source of Information
4.3 Influence of Communication Medium
Table 4.11
Medium of Communication that influences the Brand Preference
S.No Communication Medium Frequency Percent

1 Print Media 12 10.0
2 Electronic Media 21 17.5
3 Word of Mouth 77 64.2
4 Sales Promotion 10 8.3
5 Total 120 100.0
The above Table 4.11 shows that the majority 64.2% of respondents got influenced towards
the Bajaj brand through the medium of Word of Mouth Communication and the minority
8.3% of respondents influenced through Sales Promotion. It suggests that the Word of Mouth
communication medium influences the Brand Preference much higher than the other medium
of communication.
Figure 4.9
Percentage of Influence of Communication Medium
4.4 Purchase Mode

Table 4.12
Mode of Purchase
S.No Purchase Mode Frequency Percent

1 By Full Cash 62 51.7
2 EMI 58 48.3
3 Total 120 100.0
The Table 4.12 shows that the majority 51.7% of respondents preferred to buy the bike by
full cash and the minority 48.3% of respondents preferred EMI. It suggests that the majority
of the customer preferred to buy the bike by paying full cash rather than going for EMI.
4.5 Major Role Player in Decision Making

Table 4.13
Role in Decision Making
S.No Decision Maker Frequency Percent

1 Father 19 15.8
2 Mother 1 .8
3 Friends 8 6.7
4 Self 90 75.0
5 Others 2 1.7
6 Total 120 100.0
The Table 4.13 shows that the majority 75% of respondents was the final decision maker for
purchasing the bike and the minority 0.8% of respondents’ opinion was Mother. It suggests
that the respondents are the ultimate decision maker in buying the bike.
4.6 Period took to choose the Bajaj Brand
Table 4.14
Period took to choose the Bajaj Brand
S.No Period Frequency Percent

1 One week 44 36.7
2 One month 32 26.7
3 Two months 26 21.7
4 More than 2 months 18 15.0
5 Total 120 100.0
The Table 4.14 shows that the majority 36.7% of respondents took only one week to choose
the Bajaj brand to buy the bike and the minority 15% of respondents took more than two
months to choose the Bajaj brand.
Figure 4.10
Percentage of Period took to choose the Bajaj Brand

4.7 Reason for preferring the Bajaj Brand
Table 4.15
Frequency Table Showing the Reason for preferring the Bajaj Brand
S.No Reason Frequency Percent

1 Quality 83 69.2
2 Availability 20 16.7
3 Price 15 12.5
4 Service 2 1.7
5 Total 120 100.0
The Table 4.15 shows that the Quality plays the major reason in preferring the Bajaj brand
for 69.2% of customers followed by the Availability of the product (16.7%).
Figure 4.11
Percentage of Preference Reason
4.8 Satisfaction towards the Product Features
Table 4.16
Percentage of Product Features
Less
S.No Points Price Style Color Mileage Power Performance Technology
Maintenance
1 1 point 2.5 3.3 0 0.8 2.5 0 0.8 3.3
2 2 points 6.7 5.0 3.3 4.2 10.0 12.5 11.7 18.3
3 3 points 34.2 28.3 35.8 34.2 37.5 35.0 35.8 35.0
4 4 points 43.3 35.0 37.5 45.0 33.3 37.5 38.3 32.5
5 5 points 13.3 28.3 23.3 15.8 16.7 15.0 13.3 10.8
6 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Note:
1 point refers to Highly Dissatisfied
2 points refers to Dissatisfied
3 points refers to Neutral
4 points refers to Satisfied
5 points refers to Highly Satisfied
The Table 4.16 shows that the majority 43.3%, 35%, 37.5%, 45%, 37.5% and 38.3% of
respondents are satisfied with the price, style, color, mileage, power and performance of their
bike respectively. The table also shows that the majority 37.5% and 35% of respondents are
neither satisfied nor dissatisfied with the less maintenance and technology of their bike
respectively.
4.9 Test of Finding the Significant Difference
To test the significant difference between age group with regard to the satisfaction with the
total features of the bike, one way ANOVA test also known as F test was used.
H0: There is no significant difference between age group with regard to the
satisfaction with the total features of the bike
H1: There is a significant difference between age group with regard to the satisfaction
with the total features of the bike
The result of the ANOVA analysis is given in Table 4.17

Table 4.17
ANOVA – Total Features
S.No Groups Sum of Squares df Mean Square F value P value
1 Between Groups 368.572 2 184.286
2 Within Groups 1988.353 117 16.994 10.844 .000**
3 Total 2356.925 119
Since P value is less than 0.01 the null hypothesis is rejected at 1% level of significance on
age group. Hence, there is a significant difference between age group with regard to the
satisfaction with the total features of the bike. Hence, descriptive statistics was used to find
the age group who are more satisfied with the bike features. The Table 4.18 shows the
Descriptive Statistics.
Table 4.18
Descriptive Statistics
S.No Age Group N Mean Std. Deviation
1 18 – 30 81 28.21 4.309
2 31 – 43 21 27.43 3.641
3 44 & above 18 32.89 3.740
4 Total 120 28.78 4.450
The Table 4.18 indicates that the variable ’44 & above’ has the highest mean value of 32.89.
This suggests that the respondents under the age group 44 and above are more satisfied with
the features of the bike than the other age group respondents.
4.10 Rating of Showroom Attributes
Table 4.19
Percentage of Showroom Attributes
S.No Rating Infrastructure Availability Response Knowledge Service

1 Excellent 3.3 4.2 3.3 5.0 10.0
2 Good 50.0 50.8 24.2 38.3 28.3
3 Average 42.5 32.5 55.0 45.8 41.7
4 Poor 3.3 11.7 16.7 9.2 15.8
5 Worse .8 0.8 0.8 1.7 4.2
6 Total 100.0 100.0 100.0 100.0 100.0
The Table 4.19 shows that the majority 50% and 50.8% of respondents rated the
infrastructure of the showroom and the product availability in the showroom was good
respectively. The table also shows that the majority 55%, 45.8% and 41.7% of respondents
rated the after sales response of the dealer, knowledge of the salesman and the service of the
dealer was average respectively.
4.11 Test of Difference between the Recommendation of Dealer and Showroom
Satisfaction
H0: There is no significant difference between levels of recommendation of dealer

with regard to the satisfaction with the total showroom attributes
H1: There is a significant difference between levels of recommendation of dealer with
regard to the satisfaction with the total showroom attributes

Table 4.20 ANOVA – Total Showroom Attributes
1 Between Groups 257.100 4 64.275
2 Within Groups 590.100 115 5.131 12.526 .000**
3 Total 847.200 119
level of recommendation of dealer. Hence, there is a significant difference between levels of
recommendation of dealer with regard to the satisfaction with the total showroom attributes.
Hence, descriptive statistics was used to find the level of recommendation best described by
the respondents. The Table 4.21 shows the Descriptive Statistics.
Table 4.21 Descriptive Statistics

S.No Level of Recommendation N Mean Std. Deviation
1 Highly Recommend 13 10.9231 3.27774
2 Recommend 31 12.5806 1.91092
3 Neutral 57 13.4211 2.22765
4 Not Recommend 15 14.8667 2.26358
5 Highly Not Recommend 4 19.0000 .81650
6 Total 120 13.3000 2.66821
The Table 4.21 indicates that the variable ‘Highly Recommend’ has the least mean value of
10.9. This suggests that the respondents highly recommend the showroom because of their
satisfaction with the attributes of the showroom.
4.12 Role of Availability of Product during Purchase in the Selection of Brand
Table 4.22
Role of availability in the selection of brand
S.No Role of availability Frequency Percent

1 Very High 25 20.8
2 High 62 51.7
3 Average 33 27.5
4 Low 0 0
5 Very Low 0 0
6 Total 120 100.0
The Table 4.22 shows that the majority 51.7% of respondents’ opinions was high about the
role of availability of product in the selection of brand and the no response in the last two
rating shows that the importance of availability is always higher in the selection of brand.
4.13 Trust Level on the Bajaj Brand
Table 4.23
Trust Level on the Bajaj Brand
S.No Trust Level Frequency Percent

1 Very High 23 19.2
2 High 49 40.8
3 Average 46 38.3
4 Low 2 1.7
5 Very Low 0 0
6 Total 120 100.0
The Table 4.23 shows that the majority 40.8% of respondents’ opinions was high about their
trust level on the Bajaj brand and the no response on the ‘Very Low’ rating of the Trust Level
shows that all the respondents possess atleast some Trust on the Bajaj Brand.
4.14 Customer Reaction during the Unavailability of Product during Purchase
Table 4.24
Reaction of customer when Bajaj brand is not available during the purchase
S.No Reaction of the customer Frequency Percent

1 Wait for sometime 37 30.8
2 Going to the other dealer in another region 49 40.8
3 Choosing the other product category under Bajaj 19 15.8
4 Choosing other brand with the same features of the product 15 12.5
5 Total 120 100.0
The Table 4.24 shows that the majority 40.8% of respondents will go to the other dealer in
another region for buying the Bajaj bike if the required brand is not available during the
purchase with a particular dealer and only the 12.5% of respondents agreed that they will
change the brand if the brand is not available during the purchase.
4.15 Satisfaction towards Some Significant Attributes
Table 4.25
Percentage of Satisfaction on the given Attributes
Spare
Product
S.No Satisfaction Level Safety Comfort Availability Parts
Price
Price
1 Highly Satisfied 8.3 7.5 6.7 1.7 5.0
2 Satisfied 63.3 68.3 29.2 45.0 27.5
3 Neutral 27.5 24.2 58.3 41.7 53.3
4 Dissatisfied .8 0 5.8 11.7 14.2
5 Highly Dissatisfied 0 0 0 0 0
6 Total 100.0 100.0 100.0 100.0 100.0
The Table 4.25 shows that the majority 63.3%, 68.3% and 45% of respondents were satisfied
with the safety, comfort and the price of their bike respectively. The table also shows that the
majority 58.3% and 53.3% of respondents were neither satisfied nor dissatisfied with the
availability of the spare parts and the price of the spare parts of their bike respectively.
4.16 Test of Significant Relationship between Satisfaction on Safety and Comfort
To test the relationship between the level of satisfaction with regard to safety and comfort of
the bike, Correlation test was used. So, the test variables were the level of satisfaction on
safety and the level of satisfaction on comfort. Correlation test was applied to establish the
qualitative relationship between these two variables and thereby it is possible to find the
direction of relationship between the variables.
H0: There is no relationship between the level of satisfaction with regard to safety and
comfort of the bike
H1: There is a relationship between the level of satisfaction with regard to safety and
comfort of the bike
The result of Correlation Analysis is given in Table 4.26
Table 4.26
Correlation between Level of Satisfaction of Safety and Comfort
S.No Variable Correlation Value (Pearson Correlation) P value
1 Safety
0.521** 0.000
2 Comfort
** Correlation is significant at the 0.01 level (2-tailed).
Hence, there is a relationship between the level of satisfaction with regard to safety and
comfort of the bike. The Correlation square between the safety and comfort satisfaction level
is 0.521 which indicates 52% positive relationship between them.
4.17 One Way ANOVA Test for Finding the Significant Difference between the
Variables
To test the significant difference between age group with regard to the satisfaction with the
total price of the bike and its spare parts, one way ANOVA test also known as F test was
used.
H0: There is no significant difference between age group with regard to the
satisfaction with the total price of the bike and its spare parts
H1: There is a significant difference between age group with regard to the satisfaction
with the total price of the bike and its spare parts
Table 4.27 ANOVA – Total Price
1 Between Groups 15.484 2 7.742
2 Within Groups 177.316 117 1.516 5.109 .007**
3 Total 192.800 119
age group. Hence, there is a significant difference between age group with regard to the
satisfaction with the total price of the bike and its spare parts. Hence, descriptive statistics
was used to find the satisfaction of total price and its spare parts best described by the
respondents. The Table 4.28 shows the Descriptive Statistics.
Table 4.28 Descriptive Statistics
S.No Age Group N Mean Std. Deviation
1 18 – 30 81 5.5802 1.12765
2 31 – 43 21 5.4286 1.43427
3 44 & above 18 4.5556 1.42343
4 Total 120 5.4000 1.27286
The Table 4.28 indicates that the variable ’44 & above’ has the least mean value of 4.55. This
suggests that the respondents of age group 44 and above are satisfied with the total price of
the bike and its spare parts than other age group respondents.
4.18 Overall Service Experience of Respondents
Table 4.29
Rating of overall service experience
S.No Rating Frequency Percent

1 Excellent 5 4.2
2 Very Good 16 13.3
3 Good 62 51.7
4 Okay 31 25.8
5 Poor 6 5.0
6 Total 120 100.0
The Table 4.35 shows that the majority 51.7% of respondents rated their overall service
experience with regards to their bike was Good and the minority 4.2% of respondents rated
their overall service experience with regard to their bike was Excellent.
4.19 Overall Satisfaction of the Bajaj bike of the Respondents
Table 4.30
Overall satisfaction level with regards to the Bajaj bike
S.No Satisfaction Level Frequency Percent

1 Highly Satisfied 15 12.5
2 Satisfied 62 51.7
3 Neutral 40 33.3
4 Dissatisfied 3 2.5
5 Highly Dissatisfied 0 0
6 Total 120 100.0
The Table 4.30 shows that the majority 51.7% of respondents were satisfied with their Bajaj
bike after purchase. This suggests that the majority of the customers don’t experience the
post-purchase dissonance (after-sale discomfort). It is because of the marketer’s after-sale
communications which provide evidence and support to help customers feel good about their
brand choices.
4.20 Test of Significant Relationship between the Satisfaction of Bike and the Service
Experience
To test the relationship between the overall satisfaction with regard to the Bajaj bike and the
overall service experience of the bike, Correlation test was used. So, the test variables were
the overall satisfaction and the service experience. Correlation test was applied to establish
the qualitative relationship between these two variables and thereby it is possible to find the
direction of relationship between the variables.
H0: There is no relationship between the overall satisfaction with regard to the Bajaj
bike and the overall service experience of the bike
H1: There is a relationship between the overall satisfaction with regard to the Bajaj
bike and the overall service experience of the bike
The result of Correlation Analysis is given in Table 4.31
Table 4.31
Correlation between Overall Satisfaction and Service Experience
S.No Variable Correlation Value (Pearson Correlation) P value
1 Overall Satisfaction
0.285** 0.002
2 Service Experience
** Correlation is significant at the 0.01 level (2-tailed).
Hence, there is a relationship between the overall satisfaction with regard to the Bajaj bike
and the overall service experience of the bike. The Correlation square between the overall
satisfaction with regard to the Bajaj bike and the overall service experience of the bike is
0.285 which indicates 28% positive relationship between them.
Since the relationship is positive, if the Overall Satisfaction of the Bajaj bike increases then
the Satisfaction in the Service Experience of the bike also increases.
4.21 Decision regarding Buying One More Bike
Table 4.32
Future Purchase Decision
S.No Future Purchase Decision Frequency Percent

1 Choosing the same Bajaj brand 77 64.2
2 Choosing the other brand 43 35.8
3 Total 120 100.0
The decision regarding buying one more bike was depicted in the Table 4.32. It shows that
64.2% of respondents will buy the same Bajaj brand. This suggests that the maximum of
current Bajaj customers are showing the Brand Loyalty and the remaining 35.8% of
respondents are tend to possess the variety seeking buying behavior. So, this brand switching
may occurs among the customers for the sake of variety rather than because of
dissatisfaction.
4.22 Respondents’ Level of Promoting the Bajaj Brand to Others
Table 4.33
Level of promoting the Bajaj brand
S.No Level of Promotion Frequency Percent

1 Very High 15 12.5
2 High 40 33.3
3 Average 58 48.3
4 Low 4 3.3
5 Very Low 3 2.5
6 Total 120 100.0
The Table 4.33 shows that on an average 48.3% of respondents will promote the Bajaj brand
to others and the minority 2.5% of respondents will never promote the brand to others. This
result not only shows the Brand Loyalty of the customers but also shows the impact in the
word of mouth communication medium.
4.23 Test of Level of Promotion of Bajaj Brand to Others
To test the level of promoting the Bajaj brand to others is above average level at 1% level of
significance, T-Test for Single Mean was applied.
H0: The level of promoting the Bajaj brand to others is equal to average level
H1: The level of promoting the Bajaj brand to others is not equal to average level
The result of T-Test is given in Table 4.34
Table 4.34
One Sample T-Test for the level of promotion at 1% level
Test value = 3
S.No Test Variable N Mean Std. Deviation T value df P value
1 Level of Promotion 120 2.50 .850 -6.443 119 .000**
Since P value is less than 0.01, the null hypothesis is rejected at 1% level of significance.
Hence it is concluded that the level of promoting the Bajaj brand to others is not equal to
average level. The Table 4.34 indicates the mean value for the variable ‘Level of Promotion’
is 2.5. It suggests that the respondent’s level of promoting the Bajaj brand is higher.
4.24 Respondents’ Level of Recommendation of Dealer to Others
Table 4.35
Level of recommendation of dealer to others
S.No Level of Recommendation Frequency Percent

1 Highly Recommend 13 10.8
2 Recommend 31 25.8
3 Neutral 57 47.5
4 Not Recommend 15 12.5
5 Highly Not Recommend 4 3.3
6 Total 120 100.0
The Table 4.35 shows that the majority 47.5% of respondents remains neutral in
recommending their dealer to others and the minority 3.3% of respondents will never ever
recommend the dealer to others.
4.25 Level of Brand Preference with respect to Educational Qualification
To test the association between the educational qualification and the level of brand
preference, Chi-Square test was applied.
H0: There is no significant association between the Educational Qualification and the
Level of Brand Preference
H1: There is a significant association between the Educational Qualification and the
Level of Brand Preference
The result of the Chi-Square Cross tabulation Analysis is given in Table 4.36
Table 4.36
Crosstabs between Educational Qualification and Brand Preference Level
Educational Level of Brand Preference Chi-Square

S.No Frequency Total P value
Qualification Low Moderate High Value
Observed 5 15 5 25
1 Below +2
Expected 6.9 11.9 6.3 25
Observed 12 13 10 35
2 +2 or Diploma
Expected 9.6 16.6 8.8 35
Observed 8 17 10 35
3 UG 4.036 .672
Expected 9.6 16.6 8.8 35
PG & Observed 8 12 5 25
4
Professionals Expected 6.9 11.9 6.3 25
Observed 33 57 30 120
5 Total
Expected 33 57 30 120
0 cells (.0%) have expected count less than 5. The minimum expected count is 6.25.
Since p value is greater than 0.05 the null hypothesis is accepted at 5% level of significance.
Hence, there is no significant association between the Educational Qualification and the
Level of Brand Preference.
4.26 Level of Brand Preference with respect to the Adulthood
To test the significant difference between the adulthood with regard to the level of Brand
Preference, t-test for difference of two mean was applied. The Hypothesis was set as follows.
H0: There is no significant difference between the adulthood with regard to the level
of Brand Preference
H1: There is a significant difference between the adulthood with regard to the level of
Brand Preference
The result of Independent Sample t-Test is given in Table 4.37
Table 4.37
t-Test for Level of Brand Pref and adulthood
S.No Adulthood N Mean Std. Deviation t value p value

1 Young Adult 103 14.28 2.475
3.143 .002**
2 Older Adult 17 12.24 2.562
Since p value is less than 0.01 the null hypothesis is rejected at 1% level of significance on
adulthood. Hence, there is a significant difference between the adulthood with regard to the
level of Brand Preference.
The Table 4.37 indicates that the mean value of the variable ‘Older Adult’ 12.24 is the least
value. It suggests that the Brand Preference towards the Bajaj is higher with the Older Adults
than the Younger Adults.
CHAPTER 5
FINDINGS, SUGGESTION AND CONCLUSION
5.1 Findings
1. The majority 67.5% of the respondents were under 18 – 30 age group and the
minority of 15% were the age of above 43.
2. The majority 29.2% of the respondents was +2 or Diploma or UG qualified and the
minority 20.8% of the respondents was below +2 or PG & Professionals.
3. The majority 45.8% of the respondents was working in the private sector and the
minority 1.7% was working in other than the private sector, public sector, self-
employed.
4. The majority 30.8% of the respondents was earning between 5001 and 10,000 rupees
per month and the minority 6.7% of the respondents were earning between 5000 and
below.
5. The majority 60.8% of the respondents was buying the bike for the purpose of using it
for the regular work and the minority 8.3% was buying the bike for routine long trips.
6. The majority of 51 respondents ranked the mileage as the major factor which affects
the purchasing decision of the bike followed by the style and the majority of 59
respondents ranked the resale value as the minor factor which affects their purchasing
decision followed by the advertisement.
7. From the Friedman Test, it was found that atleast two of the factors which affect the
purchasing decision of the bike are significantly different from each other among the
nine different factors which includes mileage, price and style.
8. The majority 51.7% of respondents obtain information about the brand from friends
and the minority 3.3% obtain from other personal sources.
9. The majority 52.5% of respondents obtain information about the brand from the
advertisement and the minority 6.7% from displays.
10. The majority of 41.7% of respondents obtain information about the brand by handling
the product and the minority 28.3% obtain by using the product.
11. The majority 64.2% of respondents got influenced towards the Bajaj brand through
the medium of Word of Mouth Communication and the minority 8.3% of respondents
influenced through Sales Promotion.
12. The majority 51.7% of respondents preferred to buy the bike by full cash and the
minority 48.3% of respondents preferred EMI.
13. The majority 75% of respondents was the final decision maker for purchasing the bike
and the minority 0.8% of respondents’ opinion was Mother.
14. The majority 36.7% of respondents took only one week to choose the Bajaj brand to
buy the bike and the minority 15% of respondents took more than two months to
choose the Bajaj brand.
15. The Quality plays the major reason in preferring the Bajaj brand for 69.2% of
customers followed by the Availability of the product (16.7%).
16. The majority 43.3%, 35%, 37.5%, 45%, 37.5% and 38.3% of respondents are satisfied
with the price, style, color, mileage, power and performance of their bike respectively.
I was also found that the majority 37.5% and 35% of respondents are neither satisfied
nor dissatisfied with the less maintenance and technology of their bike respectively.
17. From the One Way ANOVA Test, it was found that there is a significant difference
between age group with regard to the satisfaction with the total features of the bike.
18. The majority 50% and 50.8% of respondents rated the infrastructure of the showroom
and the product availability in the showroom was good respectively. It was also found
that the majority 55%, 45.8% and 41.7% of respondents rated the after sales response
of the dealer, knowledge of the salesman and the service of the dealer was average
respectively.
19. The majority 51.7% of respondents’ opinions was high about the role of availability
of product in the selection of brand and the no response in the last two rating shows
that the importance of availability is always higher in the selection of brand.
20. The majority 40.8% of respondents’ opinions was high about their trust level on the
Bajaj brand and the no response on the ‘Very Low’ rating of the Trust Level shows
that all the respondents possess atleast some Trust on the Bajaj Brand.
21. The majority 40.8% of respondents will go to the other dealer in another region for
buying the Bajaj bike if the required brand is not available during the purchase with a
particular dealer and only the 12.5% of respondents agreed that they will change the
brand if the brand is not available during the purchase.
22. The majority 63.3%, 68.3% and 45% of respondents were satisfied with the safety,
comfort and the price of their bike respectively. The table also shows that the majority
58.3% and 53.3% of respondents were neither satisfied nor dissatisfied with the
availability of the spare parts and the price of the spare parts of their bike respectively.
23. From the Correlation Test, it was found that there is a relationship between the level
of satisfaction with regard to safety and comfort of the bike and it also indicates 52%
positive relationship between them.
between age group with regard to the satisfaction with the total price of the bike and
its spare parts.
25. The majority 51.7% of respondents rated their overall service experience with regards
to their bike was Good and the minority 4.2% of respondents rated their overall
service experience with regard to their bike was Excellent.
26. The majority 51.7% of respondents were satisfied with their Bajaj bike after purchase.
27. From the Correlation Test, it was found that there is a relationship between the overall
satisfaction with regard to the Bajaj bike and the overall service experience of the bike
and it also indicates 28% positive relationship between them.
28. It was found that the 64.2% of respondents will buy the same Bajaj brand if they
involve in future purchase and the remaining 35.8% of respondents’ opinion were
buying bike from other brand.
29. It was found that on an average 48.3% of respondents will promote the Bajaj brand to
others and the minority 2.5% of respondents will never promote the brand to others.
30. From the One Sample T-Test, it was found that the level of promoting the Bajaj brand
to others is not equal to average.
31. The majority 47.5% of respondents remains neutral in recommending their dealer to
others and the minority 3.3% of respondents will never ever recommend the dealer to
others.
between levels of recommendation of dealer with regard to the satisfaction with the
total showroom attributes.
33. From the Independent Sample T-Test, it was found that there is a significant
difference between the adulthood with regard to the level of Brand Preference.
34. From the Chi-Square Test, it was found that there is no significant association
between the educational qualification and the level of brand preference.
5.2 Suggestions
• The study revealed that the Brand Preference for Bajaj Two Wheeler’s among
Customers in Vellore is higher among the Older Adults and the maximum of current
Bajaj customers are showing the Brand Loyalty.
• The study also revealed that the major factor which influences the preference of Bajaj
brand is Mileage followed by Style and Price of the product. Bajaj brand is already
famous for its mileage and the style of the product. But, the study shows that the price
factor is only satisfied, not even with 50% of the respondents. It is because of the
higher cost of the Bajaj two wheelers. The Sales of the Bajaj two wheelers can be
increased by reducing the cost of the product which is the third major factor which
influences the Brand Preference.
• Since, Style is the second major factor which influences the Brand Preference among
the customers in Vellore; Bajaj can launch its Probike ‘Ninja 250R’ in the Vellore
Showroom. The Sale of that particular product may increase in Vellore because of its
Style and the dominance of the youths in the market for the products of Bajaj brand.
• Apart from budget, two most important factors in a bike are Safety and Comfort.
From the study it was discovered that more than 50% of the respondents are satisfied
with the Safety and Comfort Level of the Bajaj bike. But there are still some issues
which need to be look over in the Safety and Comfort aspects. From the open-ended
suggestion also, most of the customer’s opinion was that the Bajaj two wheelers are
lacking in those two aspects. The main aspects which the Bajaj has to concentrate are
‘Powerful Headlights’ and ‘Braking’.
• The Bajaj should concentrate on the after-sale communications which provide
evidence and support to help customers feel good about their brand choices. It helps
in reducing the after-sale discomfort.
• From the study, 35.8% of respondents are switching to the other brand which is only
because of variety seeking behavior rather than expressing the disloyalty. Bajaj should
launch two wheelers with different innovative features by studying the competitive
products to reduce its customer from switching to the competitive brands.
5.3 Conclusion
After the completion of this project, I’ve gained some new experience in the Field Research.
During survey, I’ve met a large number of people with different perception and behavior. It
was a great opportunity for me to learn about the customer behavior and I utilized it properly
to learn the same. From this study, it is concluded that the Brand Preference for Bajaj two
wheelers among customers is higher in Vellore. However, Bajaj may improve into a highly
trustful and preferable brand if the suggestions are incorporated. It is difficult to acquire new
customers and it is more difficult to retain the existing customers. In the case of two
wheelers, purchase is an expensive and infrequent or risky purchase where customers will
face a high-involvement decision. So, not only for the initial purchase but also to ensure the
future purchase, it is advisable to implement the suggestions to retain the customers.
A Study on Brand Preference for Bajaj Two Wheeler’s among Customers

in Vellore
Name: Contact No: Age:

Education
○ Below +2 ○ +2 or Diploma ○ UG ○ PG & Professionals
Occupation
○ Self employed ○ Private Sector ○ Public Sector ○ Student ○ Others
Monthly Income (If Student, mention your family income)
○ 5000 & below ○ 5001- 10000 ○ 10001-15000 ○ 15001-20000 ○ 20000 & above
1. What is the need for you to buy the bike?

○ Workhorse (for regular ○ Run Errands (to do odd ○ Routine Long
work) jobs) trips
1. Prioritize the options that affect your purchasing decision of bike.

1 being the most important and 8 being the less important
□ Advertisement □ Comfort □ Mileage
□ Power □ Price □ Resale Value
□ Safety □ Service □ Style
1. Select the source which plays a major role in obtaining information about the brand.
Source ✔ Select one from each
Personal Source Family
Friends
Neighbors
Acquaintances
Commercial Source Advertisement
Sales People
Dealers
Displays
Experimental Source Handling
Examining
Using the product
1. What is the medium of communication that influences your brand preference?

○ Print Media ○ Electronic Media ○ Word of Mouth ○ Sales Promotion
1. Which mode of purchase do you prefer?

○ By Full Cash ○ EMI
1. Who plays the major role in decision making for purchasing the bike?
○ Father ○ Mother ○ Friends ○ Self ○ Others
1. What is the period you took to choose the Bajaj brand?

○ One Week ○ One Month ○ Two Months ○ More than 2 Months
1. What is the reason for preferring the Bajaj brand?
○ Quality ○ Availability ○ Price ○ Service
1. Give points to the following features of your Bajaj product.

Attribute 5 4 3 2 1
Price
Style
Color
Mileage
Less
Maintenance
Power
Performance
Technology
2. Rate the showroom attributes.

Attributes Excellent Good Average Poor Worse
Infrastructure
Availability
After Sales
Response
Knowledge
of Sales man
Service
3. Rate your bike on the basis of following attributes.

Attribute Very High High Average Low Very Low
Role of
availability in
the selection of
brand
Trust Level on
the Bajaj brand
4. What will be your reaction when Bajaj brand is not available during the purchase?
○ Wait for sometime ○ Choosing the other product category
under Bajaj
○ Going to the other Bajaj dealer in ○ Choosing other brand with the same
another region features of the product
1. Rate your bike on the basis of following attributes.

Attribute Highly Satisfied Neutral Dissatisfied Highly
Satisfied Dissatisfied
Safety
Comfort
Availability of
spare parts
Price of the
product
Price of the
spare parts
2. How do you rate the overall service experience of your Bajaj bike?
○ Excellent ○ Very Good ○ Good ○ Okay ○ Poor
1. What is your overall satisfaction level with regards to the Bajaj bike?
○ Highly ○ Satisfied ○ Neutral ○ Dissatisfied ○ Highly
Satisfied Dissatisfied
1. What is your decision regarding buying one more bike?

○ Choosing the same Bajaj brand ○ Choosing the other brand
1. What is the level that you promote the Bajaj brand to others?
○ Very High ○ High ○ Average ○ Low ○ Very Low
1. Do you recommend your dealer to others?

○ Highly ○ Recommend ○ Neutral ○ Not ○ Highly Not
Recommend Recommend Recommend
1. What do you expect more from your bike? (Eg: New Features or other
recommendations)
Date:
Mode: (Signature of the Respondent)
BIBLIOGRAPHY
Books:
1. Govindarajan M, “Marketing Management – Concepts, Cases, Challenges and

Trends”, Second Edition, New Delhi, PHI Learning Private Limited, May 2009, Page
no: 89-110.
2. Kotler, Philip, “Marketing Management Millennium Edition”, New Jersey, Pearson
Education Company, 2002.
3. Ravilochanan P, “Research Methodology”, Chennai, Margham Publications, 2002,
Page no: 22.1-23.87.
Journals:
1. Niedrich, Ronald W. and Swain, Scott D, “The Influence of Pioneer Status and
Experience Order on Consumer Brand Preference: A Mediated-Effects Model”,
Journal of the Academy of Marketing Science, Volume 31, October 2003, Page no:
468-480.
2. Dr. Rajagopal, “Conational Drivers Influencing Brand Preference Among
Consumers”, 2009.
3. Purohit H C, “Customer Relationship Management and Brand Loyalty through Word
Of Mouth (WOM) Communication”, The Journal of Indian Management & Strategy,
Volume 13, Issue 3, 2008, Print ISSN: 0973-9335, Online ISSN: 0973-9343.
4. Yang, Sha, Allenby, Gerg M. and Fennel, Geraldine, “Modeling Variation in
Brand Preference: The Roles of Objective Environment and Motivating Conditions”,
Volume 21, No 1, Winter 2002, Page no: 14-31.
5. Sriram S, Chintagunta, Pradeep K and Neelamegham, Ramya, “Effects of Brand
Preference, Product Attributes, and Marketing Mix Variables in Technology Product
Markets”, 2005.
6. Chimboza, Denford and Mutandwa, Edward, “Measuring the determinants of brand
preference in a dairy product market”, African Journal of Business Management,
Volume 1, No 9, December 2007, Page no: 230-237, ISSN 1993-8233.
7. Ayanwale, Adeolu B, Alimi, Taiwo and Ayanbimipe, Matthew A, “The Influence of
Advertising on Consumer Brand Preference”, Journal of Social Science, Volume 10,
No 1, 2005, Page no: 9-16.
8. Dr. Sridhar. G, Dr. Kumar, Ramesh N and Dr. Murthy, Narasimha G, “Susceptibility
to reference group influence among rural consumers”, Metamorphosis, Volume 9, No
1, 2010.
9. Dr. Reddy, Mallikarjuna K, “Consumer behavior towards two-wheeler motor bikes”,
Department of Business Management, Osmania University, Hyderabad.
Websites:
1. http://www.lets-talk-sales.com
2. http://www.insidermedicine.com
3. http://www.udel.edu
4. http://www.brandcameo.org
5. http://en.wikipedia.org
6. http://auto.indiamart.com
7. http://business.mapsofindia.com
8. http://www.medcalc.org
9. http://www.itl.nist.gov
10. http://onlinestatbook.com
11. http://people.richland.edu
12. http://www.wellesley.edu
13. http://www.experiment-resources.com
14. http://people.richland.edu
15. http://davidmlane.com

Project Report - Sem 3

Загружено:

Сведения о документе

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Project Report - Sem 3

Загружено:

Авторское право:

Доступные форматы

“A STUDY ON BRAND PREFERENCE FOR BAJAJ TWO WHEELER’S

AMONG CUSTOMERS IN VELLORE”

In the partial fulfillment for the award of

Under the guidance of

OSCAR MANAGEMENT COLLEGE

OSCAR MANAGEMENT COLLEGE

This is to certify that this project entitled “A STUDY ON BRAND

PRFERENCE FOR BAJAJ TWO WHEELER’S AMONG CUSTOMERS

IN VELLORE” submitted by MR.MATHAN RAJ.P.K (Reg No:

22205409010) in partial fulfillment of the requirement for the award of Master

of Business Administration from DRAVIDIAN UNIVERSITY, is the original

either this university or any other university either in full or in part.

Signature of the Guide

This is to certify that this project entitled “A STUDY ON BRAND

PRFERENCE FOR BAJAJ TWO WHEELER’S AMONG CUSTOMERS

IN VELLORE” submitted by MR.MATHAN RAJ.P.K (Reg No:

22205409010) for viva voce Examination held on ______________ in partial

fulfillment of the requirement for the award of Master of Business

Administration from DRAVIDIAN UNIVERSITY.

External Examiner Internal

I, Mathan Raj.P.K. hereby declare that the project entitled “A STUDY ON

BRAND PRFERENCE FOR BAJAJ TWO WHEELER’S AMONG

CUSTOMERS IN VELLORE” submitted to DRAVIDIAN UNIVERSITY in

partial fulfillment of the degree in Master of Business Administration is a record

Place: (MATHAN RAJ.P.K.)

CHAPTER NO TITLE PAGE NO

TABLE NO TABLE NAME PAGE NO

FIGURE NO FIGURE NAME PAGE NO

1.2 Statement of the Problem

1.3 Need for the Study

1.4 Objectives of the Study

1. To study the perception and buying behavior of customers in two wheelers.

1.6 Limitations of the Study

1.7 Company Profile

Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant. It is

Low Cost Cars

Shree Lakshmi Motors

Front Office Service

Fig 1.1: Organizational Structure of Shree Lakshmi Motors

Table 1.1 Key People of Shree Lakshmi Motors

Table 1.2 Key People of Aakash Motors

2.1 Field of the Study

Table 2.1 Address of Dealers

2.2 Research Design

Descriptive Research Design

In this approach, a problem is described by the researcher using questionnaire or schedule.

Merits of Descriptive Approach

• Unless a researcher is experienced, there is every possibility of this approach being

2.3 Sample Design

Merits of Systematic Random Sampling

Limitations of Systematic Random Sampling

2.5 Tool of Data Collection

2.6 Data Analysis

1. T-Test for Single Mean

Formula for calculating the t value:

is an estimator of the common standard deviation of the two samples: it is defined in

In statistics, one-way analysis of variance (abbreviated one-way ANOVA) is a technique

Between Group Variation

Within Group Variation

Chi-Square Test for Independence of Attributes:

• Degrees of freedom: The degrees of freedom (DF) is equal to: DF = (r - 1) * (c - 1)

Er,c = (nr * nc) / n

Χ2 = Σ [ (Or,c - Er,c)2 / Er,c ]

3.1 Theoretical Framework