On the partial fulfillment of 3rd Tri-semester of POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

AT INSTITUTE OF MANAGEMENT STUDIES, Ghaziabad

We the following students submit our report entitled

:: FACTORS AFFECTING CAR BUYING BEHAVIOUR OF CUSTOMERS::

Under the esteemed guidance of Prof. Manish Agarwal

ACADEMIC SESSION 200 !200"

:: S#b$i%%&d T' :: Dr. Manish Agarwal

:: S#b$i%%&d B( :: !"##$ D%&%T '(3)* TAMO+A ! AD%T$A '(,-* TA.U+ /UMA. '(,0* 1%2$A+ '(3)*

INSTITUTE OF MANAGEMENT STUDIES, GHA)IABAD

CERTIFICATE
This is to certif4 that this report contains bonafide wor5 of !"##$ D%&%T6 TAMO+A ! AD%T$A6 TA.U+ /UMA.6 1%2$A+ during Term %%%6 session 7--3-7--8 for the sub9ect .esearch Method in :usiness

DAT";

ignature of <acult4

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AC*NO+LEDGEMENT
This report bears the imprint of man4 people and without their support it would not ha=e e>isted. <irst of all we would li5e to e>press our sincere indebt ness and profound sense of gratitude to our parents whose support in all manners had made us capable to complete this pro9ect. We ac5nowledge our deepest than5s to P,'-. Ma/i0h A1a,2a3 for all her care and encouraging words and gi=ing suggestion at different point of times. At the outset we would li5e to put on record our sincere gratitude to all of our friends for gi=ing us =aluable ideas throughout of our pro9ect.

hell4 Di>it'(3)* Tamonash Adit4a '(0(* Tarun /umar '(03* 1ig4an '(3)*

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According to the ninth annual ?apgemini automoti=e stud4 @ Cars Online 07/08. "ach 4ear the4 e>tend the scope and depth of their sur=e4 to e>plore new and e=ol=ing trends within the retail side of the automoti=e industr46 with a particular focus on consumer bu4ing habits. Cars Online 07/08 continues the detailed anal4sis of the changing patterns of consumer demand6 shopping trends6 web usage and customer lo4alt4 that we ha=e unco=ered o=er the past eight 4ears. This 4ear6 howe=er6 we ha=e broadened the scope to e>plore in greater detail en=ironmental issues6 including fuel-efficient and alternati=e-fuel =ehicles6 as well as consumer use of new online tools6 such as web logs6 discussion forums and search engines. These additional areas of focus reflect changes in toda4As automoti=e landscape. The industr4 is clearl4 in transition6 with static sales in almost all de=eloped mar5etsB growing pressure from Asian manufacturersB eroding customer lo4alt4B and increased emphasis on en=ironmental and regulator4 compliance. ?onsumer beha=iour will be a primar4 force in determining how this transition will e=ol=e. 2etting closer to the customer in toda4As highl4 competiti=e landscape is essential for the entire industr4 and is no longer 9ust a retail issue. %t reCuires all organisations across the suppl4 chain to wor5 as a single enterprise6 sensing and responding rapidl4 to consumer demand in a co-ordinated manner. ?apgeminiAs annual Cars Online stud4 is designed to gi=e automoti=e companies information that can help them get a better grasp on changing consumer trends6 shopping patterns and demands. This 4earAs research in=ol=ed almost 76,-- consumers in fi=e countries; ?hina6 <rance6 2erman46 the United /ingdom and the United tates. %nterestingl46 we found significant commonalities among responses across the more mature mar5ets6 with differences still Cuite apparent in the emerging ?hinese automoti=e mar5et. This report highlights these results6 as well as countr4-specific differences. The e>ecuti=e summar4 pro=ides an o=er=iew of 5e4 findings from the stud46 and the sections that follow offer more in-depth data and anal4sis on consumer beha=iour6 en=ironmental issues6 web usage6 lead management and customer lo4alt4. The automoti=e world toda4 is changingB consumers are changing. And the speed of change is continuing to accelerate.

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?ompetiti=e pressures and increasing comple>it4 ha=e led automoti=e companies to loo5 for an edge where=er the4 can find it. %mpro=ed consumer insight into =ehicle shopping and bu4ing beha=iour can pro=ide that =aluable ad=antage. ?apgeminiAs Cars Online report contains insight that can help =ehicle manufacturers and dealers de=elop and e>ecute more effecti=e strategies in areas such as sales6 mar5eting and ad=ertising6 after sales ser=ice6 ?ustomer .elationship Management '?.M* and manufacturerDdealer collaboration.

AUTOMOBILE INDUSTRY IN INDIA

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motori ation status by 201!.

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ince the first car rolled out on the streets of Mumbai 'then :omba4* in ()8)6 the Automobile %ndustr4 of %ndia has come a long wa4. During its earl4 stages the auto industr4 was o=erloo5ed b4 the then 2o=ernment and the policies were also not fa=orable. The liberaliEation polic4 and =arious ta> reliefs b4 the 2o=t. of %ndia in recent 4ears has made remar5able impacts on %ndian Automobile %ndustr4. %ndian auto industr46 which is currentl4 growing at the pace of around () F per annum6 has become a hot destination for global auto pla4ers li5e 1ol=o6 2eneral Motors and <ord. A well de=eloped transportation s4stem pla4s a 5e4 role in the de=elopment of an econom46 and %ndia is no e>ception to it. With the growth of transportation s4stem the Automoti=e %ndustr4 of %ndia is also growing at rapid speed6 occup4ing an important place on the Gcan=asG of %ndian econom4. Toda4 %ndian automoti=e industr4 is full4 capable of producing =arious 5inds of =ehicles and can be di=ided into -3 broad categories; ?ars6 two-wheelers and hea=4 =ehicles.

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The first automobile in %ndia rolled in ()83 in :omba4. %ndia is being recogniEed as potential emerging auto mar5et. <oreign pla4ers are adding to their in=estments in %ndian auto industr4. Within two-wheelers6 motorc4cles contribute )-F of the segment siEe. (-

Unli5e the U A6 the %ndian passenger =ehicle mar5et is dominated b4 cars '38F*. Tata Motors dominates o=er ,-F of the %ndian commercial =ehicle mar5et. 7D3rd of auto component production is consumed directl4 b4 O"Ms. %ndia is the largest three-wheeler mar5et in the world. %ndia is the largest two-wheeler manufacturer in the world. %ndia is the second largest tractor manufacturer in the world. %ndia is the fifth largest commercial =ehicle manufacturer in the world. The number one global motorc4cle manufacturer is in %ndia. %ndia is the fourth largest car mar5et in Asia - recentl4 crossed the ( million mar5.

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Among the two-wheeler segment6 motorc4cles ha=e ma9or share in the mar5et. !ero !onda contributes 0-F motorc4cles to the mar5et. %n it !onda holds H,F share in scooter and T1 ma5es )7F of the mopeds in the countr4. H-F of the three-wheelers are used as goods transport purpose. Piaggio holds H-F of the mar5et share. Among the passenger transport6 :a9a9 is the leader b4 ma5ing ,)F of the threewheelers. ?ars dominate the passenger =ehicle mar5et b4 38F. Maruti uEu5i has 07F share in passenger cars and is a complete monopol4 in multi purpose =ehicles. %n utilit4 =ehicles Mahindra holds H7F share. %n commercial =ehicle6 Tata Motors dominates the mar5et with more than ,-F share. Tata Motors is also the worldGs fifth largest medium I hea=4 commercial =ehicle manufacturer.

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!4derabad6 the !i-Tech ?it46 is going to come up with the first automobile mall of the countr4 b4 the second half of 7--). %t would be set up b4 cit4-based Pra9a4 "ngineers 4ndicate in area of more than 30 acres. This GAutopolisG would ha=e facilities for automobile financing institutions and insurance ser=ices to create a complete range of ser=ices reCuired for both auto companies and customers. %t will also ha=e a multi-purpose con=ention centre for auto fairs and product launches.

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Maruti )--6 Alto6 Omni .e=a Ambassador <iat Palio !4undai antro6 2etE ?he=rolet Opel ?orsa Maruti Jen6 Wagon .6 1ersa6 "steem6 24ps4 <ord %con I <iesta Tata %ndica6 %ndigo &#6 %ndigo Marina ?he=rolet wing6 Optra Magnum6 Ta=era !4undai Accent6 "lantra Mahindra corpio Maruti :aleno To4ota %nno=a Tata afari Mitsubishi #ancer6 Mitsubishi ?edia !onda ?it4 J& Mahindra :olero !4undai onata "mbera To4ota ?orolla <ord Mondeo I "ndea=our ?he=rolet <orester 5oda Octa=ia I ?ombi !onda ?i=ic !onda ?.-1 Maruti uEu5i 2rand 1itara Terracan I Tucson Mitsubishi Pa9ero Audi AH Opel 1ectra !onda Accord Mercedes ? ?lass To4ota ?amr4 Audi A,6 A) I Audi TT :MW &06 0 eries I 3 eries Mercedes " ?lass6 ?lass6 #/6 # I ?# -?lass Porsche :o>ster6 ?a4enne6 8(( ?arrera I ?a4man To4ota Prado (-

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:entle4 Arnage6 :entle4 ?ontinental 2T I <l4ing pur .olls .o4ce Phantom Ma4bach

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The first auto =ehicle rolled out in %ndia at the end of (8th centur4. Toda46 %ndia is the the 7nd largest tractor and 0th largest commercial =ehicle manufacturer in the world. !ero !onda with (.3M motorc4cles a 4ear is now the largest motorc4cle manufacturer in the world. On the cost front6 O"Ms e4eing %ndia in a big wa4 to source products and components at significant discounts to home mar5et. On the re=enue side6 O"Ms are acti=e in the booming passenger car mar5et in %ndia. The passenger car and motorc4cle segment in %ndian auto mar5et is growing b4 )-8 per cent. The two-wheeler segment will cloc5 ((.0F rise b4 7--3. ?ommercial =ehicle to grow b4 0.7 per cent. %ndia is the ((th largest Passenger ?ars producing countries in the world and Hth largest in !ea=4 Truc5s. Maruti Ud4og #td. is the leading H-wheelers manufacturer. !ero !onda is the leading 7-wheelers manufacturer. Passenger =ehicle e>ports ha=e grown o=er fi=e times and two-wheeler e>ports ha=e reached more than double. ">ports of auto components6 whose manufacturing costs are 3--H- per cent lower than in the West6 ha=e grown at 70F a 4ear between 7--- to 7--0. !ero !onda is the largest manufacturer of motorc4cles. !4undai Motors %ndia is the second largest pla4er in passenger car mar5et. Tata Motors is the fifth largest medium I hea=4 commercial =ehicle manufacturer in the world. /now about the number of =ehicles registered as Transport or +onTransport in the %ndian states and Union Territories. 2et all the contact details of Automobile Association of Upper %ndia 'AAU%*6 Automoti=e .esearch Association of %ndia 'A.A%*6 Automobile Association of outhern %ndia 'AA %*6 Automoti=e ?omponent Manufacturers Association of %ndia 'A?MA* and more (-

Automobile !istor4

%ndustr4 %n=estment

%ndustr4 2rowth

1ehicle Production

Auto ">port

Auto ?ompanies

1ehicle Distribution

Associations

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Maruti Ud4og #td. 2eneral Motors %ndia <ord %ndia #td. "icher Motors :a9a9 Auto Daewoo Motors %ndia !ero Motors !industan Motors !4undai Motor %ndia #td. .o4al "nfield Motors Telco T1 Motors D? Designs wara9 MaEda #td

2o=ernment has liberaliEed the norms for foreign in=estment and import of technolog4 and that appears to ha=e benefited the automobile sector. The production of total =ehicles increased from H.7 million in (88)- 88 to 3.3 million in 7--3--H. %t is li5el4 that the production of such =ehicles will e>ceed (million in the ne>t couple of 4ears. The industr4 has adopted the global standards and this was manifested in the increasing e>ports of the sector. After a temporar4 slump during (88)- 88 and (888---6 such e>ports registered robust growth rates of well o=er 0- per cent in 7--7--3 and 7--3--H each to e>ceed two and- ahalf times the e>port figure for 7--(--7.

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A/%i4i7a%i/1 C'/0#$&, Cha/1&0

What do these findings tell usK The4 ma5e it clear that consumer beha=iour is e=ol=ing and that automoti=e companies need to anticipate this e=olution in order to be part of6 or e=en influence6 the changes. %s 4our compan4 read4K What changes will 4ou need to ma5eK ?ompanies will need to ta5e a loo5 at their multi-channel approach as the4 consider the potential mar5et for online sales. "ffecti=e web strategies will be =itall4 important6 as the online landscape e=ol=es rapidl4 with the emergence of powerful consumer-to-consumer tools li5e blogs6 discussion forums6 social networ5ing sites and =irtual worlds. Automoti=e companies will need to sta4 focussed on en=ironmental de=elopments and e=ol=ing consumer attitudes about fuel-efficient and alternati=e-fuel =ehicles. As with the web6 green issues are d4namic and itAs still too earl4 to determine their ultimate impact on the automoti=e industr4. ManufacturerDdealer collaboration in the form of effecti=e retail integration and integrated lead management will become more important than e=er to satisf4 increasingl4 sophisticated and demanding consumers and to retain lo4alt4. And companies will need to establish and maintain a true twowa4 dialogue with indi=idual customers through personalised communication. While this topline re=iew pro=ides a summar4 of 5e4 findings from this 4earAs Cars Online stud46 the sections that follow offer more in-depth data and anal4sis of consumer beha=iour6 en=ironmental issues6 web usage6 lead management and customer lo4alt4.

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?onsumers toda4 ha=e a multitude of sources from which to gather information during the =ehicle bu4ing process6 but the %nternet tops the list. The web has become a standard resource in (-

the shopping process for eight out of (- consumers when researching car purchases. !owe=er6 the wa4 the4 use it is changing. As the web matures6 =ehicle bu4ers are =isiting fewer sites and focussing more on manufacturer and ?7? websites and less on third-part4 information sites and independent e-tailer sties.

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Lust two 4ears ago6 information websites were identified as the number one information source b4 web users responding to the Cars Online sur=e4 'tied with famil4 and friends and manufacturer specific dealer*6 named b4 00F of consumers. This 4ear6 the4 dropped to the number four source6 named b4 H(F of web users. %n comparison6 manufacturer sites are now the top source for consumers who use the web when researching =ehicles6 named b4 3-F of respondents. Two 4ears ago manufacturer sites held the number three position6 named b4 H3F of web users. The use of dealer websites has remained stead46 with about half of web users turning to these sites.

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At the same time6 the use of new online consumer-to-consumer tools such as blogs6 .

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imple 4ndication* feeds6 user-generated content6 social networ5ing sites and web forums is (-

growing. %n this 4earAs stud46 78F of web users indicated that the4 use these 5inds of tools when researching during the =ehicle shopping process6 up from 7(F a 4ear ago. '<or a more detailed anal4sis of the use of these new online tools see separate section on MWeb Usage.N* %nterestingl46 it is not 9ust the 4oung generation who use the web to research =ehicles. Almost half of consumers 0- and older =isit manufacturer sites6 nearl4 the same number as those in the () to 3H age group. The numbers do fall off6 howe=er6 when it comes to blogs and web forums. About 3-F of the 4oungest consumers rel4 on these new tools6 compared with 9ust (7F of those 0- and older. As web usage rises6 consumer reliance on other more traditional information sources is on the decline. Ta5e print ad=ertising6 for e>ample6 which has shown a stead4 downward trend particularl4 among consumers who rel4 on the web during the =ehicle shopping process. This 4ear6 9ust 7-F of web users said the4 use print ads when researching =ehicles6 compared with 37F in 7--0. The message for automoti=e companies is clear; ?onsumers trust the information the4 recei=e from manufacturer and ?7? sites. 1ehicle manufacturers and dealers need to be aware of how fast online changes are occurring and continuall4 ad9ust their mar5eting mi> and resources accordingl4 to anticipate tomorrowAs mi>. Mar5eting funds directed toward more traditional media such as print ad=ertising should be regularl4 re-e>amined for .O%.

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When it comes to ma5ing their final decision about which =ehicle to bu46 consumers focus on factors such as reliabilit46 safet46 price and fuel econom4. At the bottom of the list are cash-bac5 incenti=es6 named b4 fewer than half of consumers. The importance of incenti=es as a deciding factor has declined for the past se=eral 4ears6 indicating that consumers toda4 seem less interested in gimmic5s when it comes to their car purchases. Where consumers are in the bu4ing c4cle can ma5e a difference in how the4 ran5 the factors that influence their =ehicle choice. <or e>ample6 additional warrant4 co=erage is important to consumers who are furthest awa4 from the point of purchaseB it was named b4 ,8F of respondents who were (3 to () months from purchase. !owe=er6 the number declines as consumers get closer to actuall4 bu4ing the car; 00F of respondents who were within three months of purchase said e>tra warrant4 co=erage was important. This reflects the fact that consumers will narrow down the factors that reall4 matter to them as the4 get closer to the point of purchase. Demographic factors such as age and gender accounted for some =ariances. <or e>ample6 older consumers tend to put more emphasis (-

on reliabilit4 and safet4 than do 4ounger respondents. Those in the 0--plus age group were also more concerned with en=ironmental issues and fuel econom4. The 4oungest respondents were most li5el4 to rate the abilit4 to research information on the %nternet as an important factor in their =ehicle decision. Women tend to rate most of the factors as more important than do men. The difference was most pronounced for cash-bac5 incenti=es6 low financing6 safet46 en=ironmental issues6 fuel econom4 and additional warrant4 co=erage.

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<uel efficienc4 and en=ironmental issues ha=e mo=ed to the forefront in consumersA minds and in automoti=e industr4 forums than5s to factors including global warming6 fluctuating gasoline prices6 and proposed legislation to increase fuel efficienc4 and reduce ?O7 emissions. This growing interest in so-called green =ehicles was e=ident in this 4earAs Cars Online research. More than one-Cuarter of respondents said the4 currentl4 own or lease a fuel-efficient =ehicle while almost half said the4 are planning to bu4 or thin5ing seriousl4 about bu4ing a fuelefficient =ehicle. +ot surprisingl46 the numbers for alternati=e-fuel =ehicles were lower. Lust 7F of respondents currentl4 own an alternati=e-fuel =ehicle and ((F are planning to bu4 or thin5ing seriousl4 about bu4ing one. The most common t4pe of alternati=e-fuel =ehicle represented in the sur=e4 were gasD electric h4brids6 named b4 about half of current alternati=efuel car owners. :iodiesel =ehicles were the second most common6 named b4 (0F. The alternati=e-fuel mar5et remains in transition and itAs still too earl4 to tell how it will ultimatel4 sha5e out6 although sales are e>pected to continue to grow. <or e>ample6 L.D. Power and Associates predicts that U. . sales of h4brid =ehicles will increase b4 30F in 7--36 compared with 7--,. ?urrent ownership of fuel-efficient and alternati=e-fuel =ehicles tended to be Cuite consistent across gender and age groups6 although the oldest consumers were somewhat more li5el4 to be seriousl4 thin5ing about bu4ing an alternati=e-fuel car.

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<uel econom4 is the number one factor dri=ing consumer decisions about green =ehicles 'named b4 03F of respondents*6 followed b4 the impact on the en=ironment '73F*. Ta> credits and cost factors were less important. ome consumers pointed to less tangible reasons such as Mit ma5es me feel better.N This is in line with research conducted b4 ?+W Mar5eting .esearch. When as5ed wh4 the4 bought a To4ota Prius6 03F of Prius owners said because it Mma5es a statement about me.N !owe=er6 the Cars Online research unco=ered some differences in the reasons behind consumer decisions about green =ehicles. <or e>ample6 "uropean consumers were more li5el4 to cite en=ironmental impact as a primar4 factor6 while more respondents in ?hina and the U. . pointed to fuel econom4. Older consumers were somewhat more li5el4 to identif4 fuel econom4 as a primar4 factor6 compared with the 4oungest respondents '()-3H*. Men put more emphasis than did women on fuel econom46 while a higher proportion of women identified en=ironmental impact as the primar4 reason dri=ing their decisions about green =ehicles.

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PERSONAL SELLING: CONSUMER BUYING BEHAVIOR

CONSUMER BUYING 60. ORGANI)ATIONAL BUYING Fi/a3 @', #3%i$a%&A 4'/0#$&,0 7#,4ha0& -',:

personal6 famil46 or household use

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further production6 usage in operating the organiEation6 andDor resale to other consumers

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The decision processes and acts of final household consumers associated with e=aluating6 bu4ing6 consuming6 and discarding products for personal consumption ?onsider the purchase an automobile. $ou generall4 will not consider different options until some e=ent triggers a need6 such as a problem needing potentiall4 e>pensi=e repair. Once this need has put 4ou Oon the mar5etO6 4ou begin to as5 4our friends for recommendations regarding dealerships and car models. After =isiting se=eral dealerships6 4ou test dri=e se=eral models and finall4 decide on a particular model. After pic5ing up 4our new car6 4ou ha=e doubts on the wa4 home6 wondering if 4ou can afford the monthl4 pa4ments6 but then begin to wonder if instead 4ou should ha=e purchased a more e>pensi=e but potentiall4 more reliable model. O=er the ne>t fi=e 4ears6 the car has se=eral une>pected brea5downs that lead 4ou to want to purchase a different brand6 but 4ou ha=e been =er4 happ4 with the ser=ices of the local dealership and decide to again purchase 4our ne>t car there.

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%n this particular case6 the following generic model of consumer decision ma"ing appears to hold; BBBBBC/&&d ,&4'1/i%i'/ BBBBBCi/-',$a%i'/ 0&a,4h BBBBBC&6a3#a%i'/ '- a3%&,/a%i6&0 BBBBBC7#,4ha0& d&4i0i'/ BBBBBC7'0%7#,4ha0& b&ha6i',

+ow consider the purchase of a Cuart of orange 9uice. $ou purchase this product when 4ou do 4our grocer4 shopping once per wee5. $ou ha=e a fa=orite brand of orange 9uice and usuall4 do 4our grocer4 shopping at the same store. When 4ou bu4 orange 9uice6 4ou alwa4s go to the same place in the store to pic5 it up6 and ne=er notice what other brands are on the shelf or what are the prices of other brands. !ow is it that the generic model abo=e wor5s differentl4 in this second scenarioK Wh4 does it wor5 differentl4K Wh4 would we generall4 need the ministrations of a sales person in the sale of a car6 but we generall4 do not need the help of a salesperson in the purchase of orange 9uiceK !ow can the mar5eter of orange 9uice get a consumer li5e 4ou to e>ert more effort into information search or to consider alternati=e productsK !ow is it that the mar5eter of 4our brand got 4ou to ignore alternati=e competing brandsK What is the in=ol=ement of salespeople in sales promotions that might be associated with products such as orange 9uiceK ?onsumer beha=ior researchers are not so interested in stud4ing the =alidit4 of the abo=e generic model6 but are more interested in =arious factors that influence how such a model might wor5.

INFLUENCES ON THE GENERIC MODEL

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1,'#7 -e.g.6 cultural6 famil46 reference group influences

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&/6i,'/$&/%a3D0i%#a%i'/a3 -e.g.6 time of da46 temperature and humidit46 etc.

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lifest4le6 personalit46 decision ma5ing process6 moti=ation6 etc.

GROUP INFLUENCES ON CONSUMER BEHAVIOR

C#3%#,& the set of basic =alues6 beliefs6 norms6 and associated beha=iors that are learned b4 a member of societ4 +ote that culture is something that is learned and that it has a relati=el4 long lasting effect on the beha=iors of an indi=idual. As an e>ample of cultural influences6 consider how the salesperson in an appliance store in the U. . must react to different couples who are considering the purchase of a refrigerator. %n some subcultures6 the husband will pla4 a dominant role in the purchase decisionB in others6 the wife will pla4 a more dominant role. S'4ia3 C3a00 A group of indi=iduals with similar social ran56 based on such factors as occupation6 education6 and wealth R&-&,&/4& G,'#70 2roups6 often temporar46 that affect a personGs =alues6 attitude6 or beha=iors

".g.6 4our beha=iors around colleagues at wor5 or friends at school are probabl4 different from 4our beha=iors around 4our parents6 no matter 4our age or stage in the famil4 life c4cle. %f 4ou were a used car salesperson6 how might 4ou respond differentl4 to a nineteen 4ear old prospect accompanied b4 her bo4friend from one accompanied b4 two girlfriendsK

O7i/i'/ 3&ad&, A person within a reference group who e>erts influence on others because of special s5ills6 5nowledge6 personalit46 etc. (-

$ou might as5 the webmaster at wor5 for an opinion about a particular software application. oftware manufacturers often gi=e awa4 free beta copies of software to potential opinion leaders with the hope that the4 will in turn influence man4 others to purchase the product.

Fa$i3( A group of people related b4 blood6 marriage6 or other sociall4 appro=ed relationship

ENVIRONMENTAL D SITUATIONAL INFLUENCES ON CONSUMER BEHAVIOR

?ircumstances6 time6 location6 etc. Do 4ou li5e grapesK Do 4ou li5e peasK $ou might li5e grapes as a snac5 after lunch6 but probabl4 not as a dessert after a fanc4 meal in a restaurant. $ou might li5e peas6 but probabl4 not as a topping on 4our panca5es. "=er4da4 situations cause an interaction between =arious factors which influence our beha=iors. %f 4ou wor5 for tips 'a form of incenti=e related to commission* as a waiter or waitress6 4ou must certainl4 be aware of such interactions which can increase or decrease 4our sales. %f 4ou are doing 4our aturda4 grocer4 shopping and are loo5ing for orange 9uice6 4ou are probabl4 much more sensiti=e to price than if 4ou stop at the Cuic5 store late at night6 when 4ou are tired and cran546 after a late meeting at the office. A prospect shopping for a new automobile while debating the wisdom of a necessar4 e>pensi=e repair to his car might be more interested in what cars are on the lot than in shopping for the best deal that might in=ol=e a special order.

INTERNAL INFLUENCES ON CONSUMER BEHAVIOR P&,0'/a3i%(

A personGs distinguishing ps4chological characteristics that lead to relati=el4 consistent and lasting responses to stimuli in the en=ironment

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We are each uniCue as indi=iduals6 and we each respond differentl4 as consumers. <or e>ample6 some people are OoptimiEersO who will 5eep shopping until the4 are certain that the4 ha=e found the best price for a particular item6 while other people are OsatisficersO who will stop shopping when the4 belie=e that the4 ha=e found something that is Ogood enough.O %f 4ou are a salesperson in a retail shoe store6 how might 4ou wor5 differentl4 with these two personalitiesK

Li-&0%(3& a/d P0(4h'1,a7hi40

3i-&0%(3& is a pattern of li=ing e>pressed through a personGs acti=ities6 interests6 and opinions 70(4h'1,a7hi40 is a techniCue for measuring personalit4 and lifest4les to de=eloping lifest4le classifications

M'%i6a%i'/: M#3%i73& $'%i6&0

?onsumers usuall4 ha=e multiple moti=es for particular beha=iors. These can be a combination of;

$a/i-&0% 5nown to the person and freel4 admitted 3a%&/% un5nown to the person or the person is =er4 reluctant to admit

+ote; different moti=es can lead to the same beha=iorB obser=ing beha=ior is not sufficient to determine moti=es.

(-

What are the thoughts of LohnGs friendK What is LohnGs manifest moti=eK What might be his latent moti=eK !ow might a salesperson disco=er these moti=esK What features should a salesperson emphasiEeK

I/6'36&$&/%
!as to do with an indi=idualGs

intensity of interest in a product and the importance of the product for that person

The purchase of a car is much more ris54 than the purchase of a Cuart of orange 9uice6 and therefore presents a higher in=ol=ement situation. This modifies the wa4 that the generic model wor5s. As in=ol=ement increases6 consumers ha=e greater moti=ation to comprehend and elaborate on information salient to the purchase. A life insurance agent6 for e>ample6 would t4picall4 be more interested in contacting a 4oung couple who 9ust had a bab4 than an eighteen 4ear old college student - e=en though the new parents might be struggling to ma5e ends meet while the student is li=ing more comfortabl4. Although the annual in=estment into a polic4 is much lower if started at a 4ounger age6 most 4oung college students are not open to thin5ing about long term (-

estate planning. A 4oung couple with a new child6 howe=er6 is much more open to thin5ing about issues associated with planning for the childGs future education6 sa=ing to bu4 a house6 or e=en sa=ing to ta5e an e>tended =acation upon retirement.

TYPES OF CONSUMER PROBLEM!SOLVING PROCESSES R'#%i/iz&d

used when bu4ing freCuentl4 purchased6 low cost items used when little searchDdecision effort is needed e.g.6 bu4ing a Cuart of orange 9uice once per wee5

Li$i%&d P,'b3&$ S'36i/1

used when products are occasionall4 purchased used when information is needed about an unfamiliar product in a familiar product categor4

E5%&/d&d 7,'b3&$ 0'36i/1

used when product is unfamiliar6 e>pensi=e6 or infreCuentl4 purchased e.g.6 bu4ing a new car once e=er4 fi=e 4ears

Under what sorts of conditions would the assistance of a salesperson be neededK +ot neededK

POST!PURCHASE CONSUMER BEHAVIOR Sa%i0-a4%i'/

After the sale6 the bu4er will li5el4 feel either satisfied or dissatisfied. %f the bu4er belei=es that sDhe recei=ed more in the e>change than what was paid6 sDhe might feel satisfied. %f sDhe belie=es that sDhe recei=ed less in the e>change than what was paid6 then sDhe might feel dissatisfied. Dissatisfied bu4ers are not li5el4 to return as customers and are not li5el4 to send friends6 relati=es6 and acCuaintences. The4 are also more li5el4 to be unhapp4 or e=en abusi=e when the product reCuires post-sale ser=icing6 as when an automobile needs warrant4 maintenance. The abo=e idea can be modeled as H'$a/0E ba0i4 &54ha/1& &F#a%i'/: (-

Profit = Rewards - Costs Unfortunatel46 e=en a bu4er who Ogot a good dealO with respect to price and other terms of the sale might feel dissatisfied under the perception that the salesperson made out e=en better. This idea is called &F#i%( %h&',(6 where we are concerned with; Outcomes of A Inputs of A =s. Outcomes of B Inputs of B ?onsider6 for e>ample6 that 4ou ha=e purchased a used car for P(H6--- after finding that the OeBblue boo5O =alue is listed at P(,6---. $ou are probabl4 delighted with the purchase until 4ou accidentall4 meet the prior owner who had recei=ed a trade-in of P(-6--- on the car 9ust a few da4s before. That the dealer appears to ha=e recei=ed substantiall4 greater benefit than 4ou could lead to e>treme dissatisfaction6 e=en though 4ou recei=ed good =alue for the mone4 spent. '+ote that the selling dealer might actuall4 ha=e paid P(76--- for the car at a statewide dealerGs auction6 and then might ha=e incurred another P(6--- in e>penses associated with transporting the car and preparing it for sale. Management of bu4er perceptions is =er4 importantQ* An issue related to this is a%%,ib#%i'/ %h&',(. According to attribution theor46 people tend to assign cause to the beha=ior of others. Mar4Gs life insurance agent ad=ises her to purchase a whole life polic46 while her accountant ad=ises her6 Obu4 term insurance and in=est the difference.O. The reason6 e>plains the accountant6 Ois that insurance agents recei=e substantiall4 higher commission pa4ments on sales of whole life policies.O %f Mar4 belie=es that the insurance agent is recommending a product merel4 because he recei=es a higher commission6 she will li5el4 be displeased with the relationship and will not ta5e his recommendation. %f the agent is able to show Mar4 that the recommended product is the best solution for her situation6 then she will li5el4 attribute his recommendation to ha=ing her (-

best interests in mind and will not be concerned about how it is that he is compensated for his ser=ices.

C'1/i%i6& di00'/a/4&
%t has to do with the doubt that a person has about the wisdom of a recent purchase %t is =er4 common for people to e>perience some an>iet4 after the purchase of a product that is =er4 e>pensi=e or that will reCuire a long term commitment. Lane and <red6 for e>ample6 signed a one 4ear lease on an apartment6 committing themsel=es to pa4ments of P(0-- per month. A wee5 later6 the4 are wondering if the4 should ha=e instead leased a smaller P8-- apartment in a more rough part of townB the4 are not sure if the4 reall4 can afford this much of a monthl4 obligation. Dic5 and all46 on the other hand6 ultimatel4 rented the P8-- apartment6 and now are wondering if the sa=ings in rent will be offset b4 nois4 and sometimes unsafe conditions in this neighborhood. Perhaps neither couple would be e>periencing this an>iet4 if their landlords had gi=en them 9ust the smallest of assurances that the4 had made a good decision. After a close on products that are e>pensi=e or that reCuire a long term commitment6 the salesperson should pro=ide the prospect with some reasons to be happ4 with the decision. Allow the car bu4er to reinforce her own positi=e feelings b4 calling her a wee5 after the purchase to as5 how things are going. ?all the new life insurance polic4 holder after two months to see if there are an4 CuestionsB a lac5 of Cuestions can onl4 help the bu4er to con=ince himself that he did the right thing. M&%h'd'3'1( The stud4 is based on primar4 data collection with a sample siEe of (-- respondents residing in +ational ?apital .egion of +ew Delhi6 %ndia. The Cuestionnaire used for the sample sur=e4 is a structured and non-disguised Cuestionnaire and consisted of two ma9or sections. The first section intended to collect the =arious demographic factorsB the second section intended to collect the =arious opinions containing Cuestions about the =arious factors affecting the car purchasing decision. A fi=e point #i5ert scale was used to capture the consumers responses ranging from strongl4 agree to strongl4 disagree. The different statements regarding the =arious factors affecting the car bu4ing beha=ior of customers were generated based on literature re=iew (-

as well as e>pert opinion in an iterati=e manner. %t could be therefore said that the itemiEed scale in this case actuall4 as5s the respondents to ran5 their opinions in a decreasing order of importance. Data anal4sis was done using a=erage method was used. Da%a 4'33&4%i'/ The stud4 entailed data collection with the help of a Cuestionnaire from the residents of +ational ?apital .egion of +ew Delhi6 %ndia. Data was collected b4 personall4 contacting the respondents and e>plaining in detail about the sur=e4. A total of (7- customers from different areas were contacted and (-- correctl4 completed Cuestionnaires were obtained from all the customers6 the brea5-up of which is gi=en in <igure (67 and 3 D&04,i7%i6& 7,'-i3& '- ,&07'/d&/%0 @/B;00A P software. The statistical anal4sis methods emplo4ed was factor anal4sis. To stud4 the impact most freCuentl4 indulged in weighted

G&/d&,

Perc enta g e

F em ale Male 0 20 40 6 0 80 10 0

<ig (

Fi1 2

A1&
(-

6 0 4 0 2 0 P ercentag e 0

B elow18

1 8-2 5

26 -35

3 6 -5 0

A bove 5 1

O44#7a%i'/

60 40 20 0 S ervice B u ine S tu!ent " ou e-#i$e Percentag e

Fi1 8 Fi/di/10 a/d A/a3(0i0 Fa4%', A/a3(0i0 -', -a4%',0 a--&4%i/1 4a, 7#,4ha0i/1 d&4i0i'/

(-

<actor anal4sis was performed to identif4 the 5e4 dimensions affecting purchase of cars pro=ided b4 different car manufacturing companies. The respondent ratings were sub9ect to principal a>is factoring with =arima> rotation to reduce potential multicollinearit4 among the items and to impro=e reliabilit4 on the data 'see Table ,; .otated <actor Matri>*. 1arima> rotation 'with /aiser +ormaliEation was con=erged in thirt4-one iterations. Thirt4 items were reduced to nine orthogonal factor dimensions which e>plained 33.000F of the o=erall =ariance 'Table H* indicating that the =ariance of original =alues was well captured b4 these nine factors. The nine factors and their components is gi=en in table 3. R&3iabi3i%( '- Da%a
Tab3& ;: *MO a/d Ba,%3&%%E0 T&0%
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett s !est of Sp"ericity Appro#. $"i-Square df Sig. .769 %6&'.''' ()& .'''

*ai0&,!M&(&,!O39i/ R%nde> for comparing the magnitudes of the obser=ed co-relation coefficient to the magnitude of the partial correlation coefficientsS the <rom the abo=e table6 we can interpret that there is no error in 3,.8F of the sample and in remaining 73.(F6 there ma4 occur some sort of error.

GBa,%3&%%>0 T&0% '- S7h&,i4i%(H R trength of relationship among =ariables is strong. %t presents good idea to proceed to factor anal4sis for the data.S H' : There is significant indifference of all the factors affecting car purchase decision H; : There is significant difference of all the factors affecting car purchase decision The obser=e significance le=el is -.---- which is less than .-06 which is small enough to re9ect the h4pothesis. %t means there is a significant difference between the factors affecting car purchasing decisions. C'$$#/a3i%(H! C'$$'/ Fa4%', Va,ia/4& ?ommunalit4 of each statement refers to the =ariance being shared or common b4 other statements. With reference to the first statement6 the e>traction is .)33 which indicates that )3.3F of the =ariance is being shared or common to other statements. .efer Table 7.

(-

GEi1&/ Va3#&H; %ndicates the amount of =ariance in the original =ariables accounted or b4 each component. The total initial =ariance in the new components will be 3-.

Tab3& 2: C'$$#/a3i%i&0
*nitial %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' %.''' +#traction .,)) .69.76' .,'' .69& .79& .7(6 .7)% .7,) .,7& .,&% .7,.6(.6-, .67( .7%& .66.7'7 .6&) .7-, .76.7%' .6(.6,7 .,)& .6,( .,') .6,) .,&7 .6&'

S% SS) S( S& S6 S7 S, S9 S%' S%% S%S%) S%( S%& S%6 S%7 S%, S%9 S-' S-% S-S-) S-( S-& S-6 S-7 S-, S-9 S)' +#traction Met"od. /rincipal $omponent Analysis.

(-

Tab3& 8: T'%a3 Va,ia/4& E573ai/&d

+#traction Sums of Squared 1oadings 3 of $umulati0e !otal 4ariance 3 7.%'-).67-).67).&)9 %%.79, )&.(7' -.&() ,.(77 ().9(7 -.%,, 7.-9&%.-)9 %.7%6 &.7-% &6.96' %.6)% &.()& 6-.)96 %.-%, (.'&9 66.(&& %.%%).7'6 7'.%6% %.'%, ).)9( 7).&&&

$omponent !otal 7.%').&)9 -.&() -.%,, %.7%6 %.6)% %.-%, %.%%%.'%, .9(, .,%& .6,) .6)( .&67 .&'' .(,9 .()9 .(-% .))' .-97 .-77 .-7% .--6 .-'9 .%9( .%,) .%6% .%-9 .',9 .'7'

% ) ( & 6 7 , 9 %' %% %%) %( %& %6 %7 %, %9 -' -% --) -( -& -6 -7 -, -9 )'

*nitial +igen0alues 3 of $umulati0e 4ariance 3 -).67-).67%%.79, )&.(7' ,.(77 ().9(7 7.-9&%.-)9 &.7-% &6.96' &.()& 6-.)96 (.'&9 66.(&& ).7'6 7'.%6% ).)9( 7).&&& ).%6' 76.7%& -.7%7 79.()-.-7, ,%.7%' -.%%) ,).,-) %.,,9 ,&.7%%.667 ,7.)79 %.6)% ,9.'%' %.(6( 9'.(7& %.(') 9%.,7, %.'99 9-.976 .99% 9).967 .9-( 9(.,9% .9'& 9&.796 .7&96.&(7 .697 97.-(& .6(7 97.,9.6', 9,.&'% .&)7 99.'), .()% 99.(6, .-97 99.766 .-)( %''.'''

2otation Sums of Squared 1oadings 3 of $umulati0e !otal 4ariance 3 ).)9, %%.)-7 %%.)-7 ).--7 %'.7&6 --.',) ).',' %'.-6, )-.)&' -.&&6 ,.&-' ('.,7' -.&() ,.(76 (9.)(& -.)&6 7.,&& &7.-'' %.9'9 6.)6( 6).&6( %.7%, &.7-& 69.-,9 %.-,' (.-66 7).&&&

">traction Method; Principal ?omponent Anal4sis. (-

Tab3& I: C#$#3a%i6& F,&F#&/4( ((.373F 77.-)3F 37.30-F H-.)3-F H8.3H0F 03.7--F ,3.0,HF ,8.7)8F 33.000F

?omponent ( ?omponent 7 ?omponent 3 ?omponent H ?omponent 0 ?omponent , ?omponent 3 ?omponent ) ?omponent 8

">plain a =ariance of 3.38)6 which is ((.373 F of the total =ariance of 3">plain a =ariance of 3.3736 which is (-.30, F of the total =ariance of 3">plain a =ariance of 3.-)-6 which is (-.7,) F of the total =ariance of 3">plain a =ariance of 7.00,6 which is ).07- F of the total =ariance of 3">plain a =ariance of 7.0H36 which is ).H3, F of the total =ariance of 3">plain a =ariance of 7.30,6 which is 3.)00 F of the total =ariance of 3">plain a =ariance of (.8-86 which is ,.3,H F of the total =ariance of 3">plain a =ariance of (.3()6 which is 0.370 F of the total =ariance of 3">plain a =ariance of (.7)-6 which is H.7,, F of the total =ariance of 3-

(-

Scree Plot

,
&%1

Eigenvalue

3%54

2%54 2%1'

1%&2

1%63 1%11 1%22 1%02 0%'5 0%68 0%5& 0%82 0%63 0%4' 0%44 0%5 0%42 0%33 0%3 0%28 0%2& 0%23 0%21 0%1' 0%16 0%13 0%18 0%0' 0%0&

' % ) ( & 6 7 ,

9 %' %% %- %) %( %& %6 %7 %, %9 -' -% -- -) -( -& -6 -7 -, -9 )'

Component Number

Fi1 I With the help of table 3 and H6 we can interpret that 3- statements are now reduced to 8 components contributing 33.000F of the total =ariance. With the help of <ig(. cree plot6 we can 9ust =isualiEe that nine factors are reduced with eigen =alue greater than (.---Tab3& :. C'$7'/&/% Ma%,i5: This table reports the factor loadings for each =ariable on the unrotated components or factors.
Component Matrix

(-

Component S% SS) S( S& S6 S7 S, S9 S%' S%% S%S%) S%( S%& S%6 S%7 S%, S%9 S-' S-% S-S-) S-( S-& S-6 S-7 S-, S-9 S)' .--) .()' -.%'( -.%7' .-)-.&(.%77 .6-7 .6,9 .&69 -.)%.(,% .7%, -.)9& .7)' .&)7 .(,( .)6, -.(99 .6-% -.&') .6&-.&)& .(&9 .%,6 .(-.66) .-'7 .%%.()' .%6, .6%7 .%,7 .&%6 .-&% .-(7 .%%.%%7 -.)'' .--7 .%&, -.%-) -.--& -.%&) .))& .)9, .)() -.%'6 -.%--.-'& -.-9( -.%)9 .%&( -.)&( .--6 -.-&-.-,, .-&6 -.%96 .-&( .%'7 .%%6 -.%', .%%& .&-7 -.%'6 -.%(& .)-) -.%), -.-7, -.-)6 .(-7 % .)77 -.%66 .6(9 -.&&% .&99 .-67 -.%6) -.),-.%9% -.-(( .7&% .-).%-( -.-67 .69, .,', -.-%% .&-, -.%)9 .))7 .(6-.%7% .%'' -.%97 .)&7 .%7' .&9.%%7 .-7) .%6% -.)() -.-7) .667 -.)67 .-(& .%6) .%%( .(7' .)%% .%'( .%9% .%,6 -.%9& .)9& -.)(% -.%%9 -.%'9 -.%,) -.)(6 -.%&( -.-%6 -.%') -.--' .-79 .),, -.-6& -.%), .%-, .--9 -.(%, -.-7.%(% -.%6( .--) .-(9 .699 .)6) .%).6-, ) .&(% -.--, .)(7 ( -.))) .66& .%%9 & .-%7 .%,, .&') .%'-.%&6 -.)(( .&,% -.--( .%-9 -.-7% .%7, -.%6% .%(( .-'& -.--7 .%&7 .%)& -.%'' .)), .%%& .-9% .)9' -.-7% .%', .%)% -.-)7 .%-& -.%(7 .(9, .)'6 -.%66 6 7 .%7% -.%%9 , -.)-7 .%,' .%-% -.%'6 .-%' 9 .%76 .)')

+#traction Met"od. /rincipal $omponent Analysis. a 9 components e#tracted.

"ach number represents the correlation between the item and the unrotated factor. This correlation helps to formulate an interpretation of the factors or components. This is done by looking for a common thread among the variables that have large loadings for a particular factor or component. It is possible to see items with large loadings on several of the unrotated factors, which makes interpretation difficult. In these cases, it can be helpful to examine a rotated solution. Tab3& J: R'%a%&d C'$7'/&/% Ma%,i5

(-

$omponent % S% SS) S( S& S6 S7 S, S9 S%' S%% S%S%) S%( S%& S%6 S%7 S%, S%9 S-' S-% S-S-) S-( S-& S-6 S-7 S-, S-9 S)' .,,& -.%79 .,&% -.-,9 .,6' .%(% .(%) .%'7 .-7( .%'& .%9& .-&' -.%6' .&)7 -.(--.%&% -.%,7 -.-'& .)-) .--6 .-%.,'9 -.%-' .)9% -.%') .6)6 .-%& -.-9' .(6% .-76 .%-% .%(, .%67 .-(6 -.%)& .-'7 -.%&% -.%&7 -.%'7 .-,% .%&-.--.-,' .(%) .%(, .-6) .%7, -.(99 .-%' .)%9 -.))7 -.%7( -.-%) .%%) .(-9 .)%% .-7% .),& .(), .%6% .&%) .--& .)', -.%-.%,9 -.(%( -.%-) -.)7( .7&& .-%9 .%&' -.)', .,-6 .,7-.%), .--% .%)( -.)-9 .%-.%77 .%'9 .(,% .-%& .&66 -.%6& .-)) .%&-.&9% .(-6 .(,-.%,-.%%.%)6 .-69 -.,-% .&() -.%-9 .%,7 .-%7 .&&% .67' .%() -.%(' -.%7, .%7& .%%7 -.&7' .--( .%&.%&6 -.-', .6() -.%%( .)79 .)7% .)'.-)& .-7.))-.-67 -.%)9 -.-), .%-( .%7-.%9& -.%9' .%,' .,-% .%9) .),, -.(66 -.%&-.-%) -.-&) .--& -.('( .%', .%9' .&7' -.%9.-9& .%'.%9% .%%% .%)% -.)(( -.-9) .%)& ) .((7 .%9% .&9% .-,.%&) -.799 .%&, -.-).%&, .)'( ( & 6 .7&) -.76& 7 -.%%& .%9( .-,( -.%)( .%-' .%%( -.%7& .-&6 .-6& .799 , 9 .-'& .-'%

+#traction Met"od. /rincipal $omponent Analysis. 2otation Met"od. 4arima# 5it" Kaiser 6ormali7ation. a 2otation con0erged in )% iterations.

+ith the help of table ,6 we can categoriEe each statements depending upon the factor loadings and shown in table3. Tab3& : Fa4%',0 Fa4%', ;: S;" : %nformation Pro=ided :4 alesperson S2: : afet4 S2 : "as4 A=ailabilit4 Of pare Parts S2" : Technolog4 (-

Fa4%', 2: S;0 : 2o=ernment Policies And .egulations S;; : %mport Duties %mposed :4 2o=ernment

Fa4%', 8: S8 : <amil4 +eeds S: : :rand %mage SJ : %ncome #e=el SK : pecial <amil4 ProgramsD"=ents #i5e Anni=ersar46 :irthda4 S;: : %nsurance <acilit4 S;K : ?redit ?ard Acceptance S2J : ?ar Accessories

Fa4%', I: S;I : %nstallment Pa4ment <acilit4 S;J : #ocation Of The ?ar Dealer hop S2I : #oo5s S2K : A=ailabilit4 Of er=ice tation Fa4%', :: SI : tatus 4mbol S;2 : Ad=ertisements And Promotions S; : !ome Deli=er4 <acilit4 S80 : O=erall6 % Am atisfied With M4 ?ar % Own

Fa4%', J: S; : Price Of The ?ar S2 : $ou Ta5e uggestions Of $our <amil4 Members S" : <amil4 Members I <riend ?ircle S;8 : After ales er=ice

Fa4%', : S20 : A=ailabilit4 Of 1ariet4 Of ?ars Under One .oof S2; : %nformation Pro=ided :4 1arious ?ar .elated MagaEines (-

Fa4%', K: S22 : Mileage S28 : Power

Fa4%', ": S : <esti=al easonDOffers Tab3& K: C'$7'/&/% S4',& C'&--i4i&/% Ma%,i5

$omponent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

+#traction Met"od. /rincipal $omponent Analysis. 2otation Met"od. 4arima# 5it" Kaiser 6ormali7ation.

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<rom the table ) of component score coefficient matri>6 we can obtain the Cuantifiable data of each factor. The coefficients between the statements and the factors are ta5en according to the statement affecting the factor ' on the basis of Table 3* C'/43#0i'/0 a/d R&4'$$&/da%i'/0 ince %ndian Automobile mar5et is continuousl4 in the prowl of surging as a ma9or car manufacturer6 people are purchasing car as there is increase of income of common people as well as change in tastes and preferences of consumers. %t is important for the car manufacturers and car dealers to be able to understand the different factors affecting the e>tent in car purchasing beha=iour. The factor anal4sis results indicate that factor ( 'table 3* which consists of %nformation pro=ided b4 salespersonB safet4B eas4 a=ailabilit4 of spare partsB technolog4 are affecting the car purchasing beha=ior. People are more conscious about the on spot information pro=ided about =arious cars who ser=es according to the needs and wants of the customer. The t4pe of technolog4 used and the wider reach of the ser=ice stations also affect the most on car purchasing decision. While go=ernment obligations and =arious policies li5e import duties6 custom e>emptions is seen as second most affecting dri=er 'factor 76 table 3* of purchase of cars. <actor 3 includes famil4 needsB brand imageB income le=elB special famil4 programsDe=ents li5e Anni=ersar46 :irthda4B insurance facilit4B credit card acceptanceB car accessories affects customers car purchase decision causing a =ariance of 3.-)-.This shows that importance of famil4 decisions6 special occasions in famil4 and the =arious ser=ices pro=ided b4 car dealers. <actor H6 Table 3 includes installment pa4ment facilit4B location of the car dealer shopB loo5sB a=ailabilit4 of ser=ice station showing customers accessibilit4 to the ser=ice pro=ided. <actor 0 shows the impact of =arious promotional acti=ities and e>tra care ta5en b4 car dealers. <actors , shows the impact of suggestion pro=ided b4 famil4 members and peers as well as price and after sales ser=ice pro=ided. <actor 3 includes the infrastructural benefits of the shop and the =ariet4 of cars it stores .The last but not the least ones shows the impact of factors of technical specifications of the car and the festi=e season offers O=erall6 =arious internal and e>ternal factors li5e e>tra care facilities6 location of the shops6 =arious information pro=ided b4 car dealers6 ad=ertisement and print media promotions6 features of the car in all are contributing in ma5ing car purchasing beha=iour of customers.

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ANNELURE

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er=ice :usiness tudent !ousewife

Section II
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@SA!S%,'/13( A1,&&M A!A1,&&M N!N&#%,a3M DA!Di0a1,&&M SDA!S%,'/13( Di0a1,&&A S3.N' ;. 2. 8. I. :. J. . K. ". ;0. ;;. ;2. ;8. ;I. ;:. ;J. ; . ;K. ;". 20. 2;. 22. 28. 2I. 2:. 2J. 2 . S%a%&$&/%0 Price Of The ?ar $ou Ta5e uggestions <rom $our <amil4 Members <amil4 +eeds tatus 4mbol :rand +ame %ncome #e=el <esti=al easonDOffers pecial <amil4 ProgramsD"=ents #i5e Anni=ersar46 :irthda4 <amil4 Members I <riend ?ircle 2o=ernment Policies And .egulations %mport Duties %mposed :4 2o=ernment Ad=ertisements And Promotions After ales er=ice %nstallment Pa4ment <acilit4 %nsurance <acilit4 #ocation Of The ?ar Dealer hop !ome Deli=er4 <acilit4 ?redit ?ard Acceptance %nformation Pro=ided :4 alesperson A=ailabilit4 Of 1ariet4 Of ?ars Under One .oof %nformation Pro=ided :4 1arious ?ar .elated MagaEines Mileage Power #oo5s afet4 ?ar Accessories "as4 A=ailabilit4 Of pare Parts (S%,'/13( A1,&& A1,&& N&#%,a3 Di0a1,&& S%,'/13( Di0a1,&&

2K. 2". 80.

A=ailabilit4 Of er=ice tation Technolog4 O=erall6 % Am atisfied With M4 ?ar % Own

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