A

PROJECT REPORT ON
Consumers buying behaviour on mid segment car
Submitted by:
Nirbhay Challa (138070592026)

The SIP project report submitted

In
Partial fulfilment of the requirement
For the Degree of
MASTERS OF BUSINESS ADMINISTRATION (MBA)
2 years Full Time Program of Gujarat Technological University

Submitted to:
Dr. Viral Bhatt
SAL Institute of Management
Ahmedabad

SAL Institute Of Management

Certificate

This to certify that the project report titled Consumers buying behaviour on mid
segment car is the Bonafide work of Nirbhay Challa (138070592026) who carried
out research under my supervision. I also certify further, that to the best of my
knowledge the work reported herein does not form part of any other project report or
dissertation on the basis of which a degree or award was conferred on an earlier
occasion on this or any other candidate. The project report is done in the partial
fulfillment of the SIP of Masters of Business Administration at SAL INSTITUTE
OF MANAGEMENT acadameic Session June-July 2014.

Dr. Viral Bhatt

Principal / Director,
SAL INSTITUTE OF MANAGEMENT
Sign :

Declaration

I am Nirbhay Challa, student of SAL Institute of Management hereby declare that

project report entitled Consumer buying behaviour on mid segment caris a result
of our own work and our indebtedness to other work publications, references, if any,
have been duly acknowledged.

Place: Ahmedabad
Date:

Nirbhay Challa (138070592026)

Acknowledgement
We would like to thank our corporate guide Mr. Ashutosh
Chaudhury, Head of west zone of for giving us an opportunity to do our Summer
Internship Programme at their esteemed organisation given us practical exposure. We
are also thankful to him for providing us support and guidance to his excellence
throughout our SIP and project.
We would like to thank our project guide Dr. Viral Bhatt
for acting as an enthusiast and expert mentor to our project. We are also thankful for
providing us continuous directions, suggestions and guidance, it stands so important to
us that without which our project would be impossible. Apart from our project guide
we are also thankful to Prof. Viral Bhatt for providing valuable suggestions.

Preface
Our institution has come forward and provided us opportunity to
work on a concept which will be beneficial to gain more and more practical
knowledge. Our institute has provided good education facilities and motivation to us
to emphasise activities for better future.
In this SIP project, we have taken a concept of advertisement
impact on customers regarding pizza outlets they visit. We have conducted a survey in
respect of this, where 200 respondents were part of it and their answers will be helpful
to make an analysis to study their views regarding different pizza advertisements they
see, listen and read on various mediums.
In this project we have tried to analyse various pizza
advertisements impact on consumers and effectiveness of various mediums like TV,
radio and different print media.
Certainly this analysis explores our abilities and strengths to its
fullest extent for the achievement of organization as well as personal goal.

CHAPTER-1

INTRODUCTION TO AUTOMOTIVE
INDUSTRY

1. INTRODUCTION TOAUTOMOTIVE INDUSTRY

Terminology
The automotive industry designs, develops, manufactures, markets, and sells motor
vehicles, and is one of the Earth's most important economic sectors by revenue.

The term automotive industry usually does not include industries dedicated to
automobiles after delivery to the customer, such as repair shops and motor fuel filling
stations.

1.1 Global Automotive Industry

1.1.1History
7

The first practical automobile with a petrol engine was built by Karl Benz in 1885 in
Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886,
and began the first production of automobiles in 1888, after Bertha Benz, his wife, had
proved with the first long-distance trip in August 1888 (104 km (65 mi) from Mannheim
to Pforzheim and back) that the horseless coach was absolutely suitable for daily use.

Soon after, in 1889, Gottlieb Daimler and Wilhelm Maybach in Stuttgart designed a
vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with
an engine. They also are usually credited as inventors of the first motorcycle,in 1885 the
Daimler Reitwagen, but in 1882 Italy's Enrico Bernardi, of the University of Padua,
patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor,
fitting it into his son's tricycle, making it at least a candidate for the first automobile, and
first motorcycle.Bernardi enlarged the tricycle in 1892 to carry two adults.

Until 2005, the U.S.A. led the world in total automobile production. In 1929 before the
Great Depression, the world had 32,028,500 automobiles in use, and the US automobile
industry produced over 90% of them. At that time the U.S. had one car per 4.87 persons.
In 2006, Japan narrowly passed the U.S. in production and held this rank until 2009,
when China took the top spot with 13.8 million units. By producing 18.3 million units in
2010, China produced nearly twice the number of second place Japan (9.6 million units),
with the U.S. in third place with 7.8 million units.

1.2 Automotive Industry in India Overview

INDIAis one of the largest in the world and one of the fastest growing globally. India's
passenger car and commercial vehicle manufacturing industry is the sixth largest in the
world, with an annual production of more than 3.7 million units in 2010.According to
recent reports, India is set to overtake Brazil to become the sixth largest passenger
8

vehicle producer in the world, growing 16-18 per cent to sell around three million units
in the course of 2011-12.In 2009, India emerged as Asia's fourth largest exporter of
passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as
Asia's third largest exporter of passenger cars, behind Japan and South Korea beating
Thailand.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the
country the second fastest growing automobile market in the world. According to the
Society of Indian Automobile Manufacturers, annual vehicle sales are projected to
increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is
expected to top the world in car volumes with approximately 611 million vehicles on the
nation's roads.

The majority of India's car manufacturing industry is based around three clusters in the
south, west and north. The southern cluster near Chennai is the biggest with 40% of the
revenue share. The western hub near Maharashtra is 33% of the market. The northern
cluster is primarily Haryana with 32%.Chennai is also referred to as the "Detroit of India
"withthe India operations of Ford, Hyundai, Renault and Nissan headquartered in the city
and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the
country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster
where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan
corridor near Pune, Maharashtra is the western cluster with companies like Volkswagen,
Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and
Force Motorshaving assembly plants in the area. Aurangabad with Audi, Skoda and
Volkswagen also forms part of the western cluster. Another emerging cluster is in the
state of Gujarat with manufacturing facility of General Motors in Halol and Tata Nano at
Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in
Gujarat. Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota
are some of the other automotive manufacturing regions around the country.

1.2.1HISTORY
The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly,
but in very small numbers.Embryonic automotive industry emerged in India in the 1940s.
Mahindra & Mahindra was established by two brothers as a trading company in 1945,
and began assembly of Jeep CJ-3A utility vehicles under license from Willys. The
company soon branched out into the manufacture of light commercial vehicles (LCVs)
and agricultural tractors.

Following the independence, in 1947, the Government of India and the private sector
launched efforts to create an automotive component manufacturing industry to supply to
the automobile industry. However, the growth was relatively slow in the 1950s and
1960s due to nationalization and the license raj which hampered the Indian private sector.
After 1970, the automotive industry started to grow, but the growth was mainly driven by
tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese
manufacturers entered the Indian market ultimately leading to the establishment of
MarutiUdyog. A number of foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian
government chose Suzuki for its joint-venture to manufacture small cars. Following the
economic liberalization in 1991 and the gradual weakening of the license raj, a number
of Indian and multi-national car companies launched operations. Since then, automotive
component and automobile manufacturing growth has accelerated to meet domestic and
export demands.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti
Suzuki and Mahindra and Mahindra, expanded their domestic and international
operations. India's robust economic growth led to the further expansion of its domestic
automobile market which has attracted significant India-specific investment by
multinational automobile manufacturers. In February 2009, monthly sales of passenger
10

cars in India exceeded 100,000 units and have since grown rapidly to a record monthly
high of 182,992 units in October 2009.From 2003 to 2010, car sales in India have
progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car
in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is
unlikely to stop in the coming decade. Congestion of Indian roads, more than market
demand, will likely be the limiting factor.

SIAM is the apex industry body representing all the vehicle manufacturers, home-grown
and international, in India
1.2.2AUTOMOTIVE INDUSTRY DEFINITION INDIA
This class consists of units mainly engaged in manufacturing motor vehicles or motor
vehicle engines.

1. The primary activities of this industry are:

I. Motor cars manufacturing,
II. Motor vehicle engine manufacturing.
2. The major products and services in this industry are:
I. Passenger motor vehicle manufacturing segment (Passenger Cars, Utility
Vehicles &Multi-Purpose Vehicles),
II. Commercial Vehicles (Medium & Heavy and Light Commercial Vehicles),
III. Two Wheelers Three Wheelers.
1.2.3Supply Chain of Automobile Industry
The supply chain of automotive industry in India is very similar to the supply chain of
the automotive industry in Europe and America. The orders of the industry arise from the
bottom of the supply chain i. e., from the consumers and go through the automakers and
climbs up until the third tier suppliers. However, the products, as channeled in every
11

traditional automotive industry, flow from the top of the supply chain to reach the
consumers. Automakers in India are the key to the supply chain and are responsible for
the products and innovation in the industry.
The description and the role of each of the contributors to the supply chain are discussed
below.

Third Tier Suppliers: These companies provide basic products like rubber, glass, steel,
plastic and aluminum to the second tier suppliers.
Second Tier Suppliers: These companies design vehicle systems or bodies for First Tier
Suppliers and Original Equipment Manufacturers (OEMs). They work on designs
provided by the first tier suppliers or OEMs. They also provide engineering resources for
detailed designs. Some of their services may include welding, fabrication, shearing,
bending etc.
First Tier Suppliers: These companies provide major systems directly to assemblers.
These companies have global coverage to follow their customers to various locations
around the world. They design and innovate to provide "black-box" solutions for the
requirements of their customers. Black-box solutions are solutions created by suppliers
using their own technology to meet the performance and interface requirements set by
assemblers.
First tier suppliers are responsible not only for the assembly of parts into complete units
like dashboard, brakes-axle-suspension, seats, or cockpit but also for the management of
second-tier suppliers.

Automakers/Vehicle Manufacturers/Original Equipment Manufacturers (OEMs):

After researching consumers' wants and needs, automakers begin designing models
which are tailored to consumers' demands. The design process normally takes five years.
12

These companies have manufacturing units where engines are manufactured and parts
supplied by first tier suppliers and second tier suppliers are assembled. Automakers are
the key to the supply chain of the automotive industry. Examples of these companies are
Tata Motors, Maruti Suzuki, Toyota, and Honda. Innovation, design capability and
branding are the main focus of these companies.

Dealers: Once the vehicles are ready they are shipped to the regional branch and from
there, to the authorized dealers of the companies. The dealers then sell the vehicles to the
end customers.
Parts and Accessory: These companies provide products like tires, windshields, and air
bags etc. to automakers and dealers or directly to customers.
Service Providers: Some of the services to the customers include servicing of vehicles,
repairing parts, or financing of vehicles. Many dealers provide these services but,
customers can also choose to go to independent service providers.

1.2.4 EXPORTS
Indias automobile exports have grown consistently and reached $4.5 billion in 2009,
with United Kingdom being Indias largest export market followed by Italy, Germany,
Netherlands and South Africa.Indias automobile exports are expected to cross $12
billion by 2014.

According to New York Times, Indias strong engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of
manufacturing facilities of several automobile companies like Hyundai Motors, Nissan,
Toyota, Volkswagen and Suzuki.

13

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors
plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly,
General Motors announced its plans to export about 50,000 cars manufactured in India
by 2011.

In September 2009, Ford Motors announced its plans to set up a plant in India with an
annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both
for the Indian market and for export. The company said that the plant was a part of its
plan to make India the hub for its global production business.Fiat Motors also announced
that it would source more than US$1 billion worth auto components from India.

In July 2010, The Economic Times reported that PSA Peugeot Citron was planning to
re-enter the Indian market and open a production plant in Andhra Pradesh with an annual
capacity of 100,000 vehicles, investing EUR 700M in the operation. PSAs intention to
utilize this production facility for export purposes however remains unclear as of
December 2010.

In 2009 India (0.23m) surpassed China (0.16m) as Asias fourth largest exporter of cars
after Japan (1.77m), Korea (1.12m) and Thailand (0.26m) by allowing foreign carmakers
100% ownership of factories in India, which China does not allow.

In recent years, India has emerged as a leading center for the manufacture of small cars.
Hyundai, the biggest exporter from the country, now ships more than 250,000 cars
annually from India. Apart from shipments to its parent Suzuki, Maruti Suzuki also
manufactures small cars for Nissan, which sells them in Europe. Nissan will also export
small cars from its new Indian assembly line. Tata Motors exports its passenger vehicles
to Asian and African markets, and is in preparation to launch electric vehicles in Europe
in 2010. The firm is also planning to launch an electric version of its low-cost car Nano
14

in Europe and the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks
and small SUV models in the U.S. market.

Bajaj Auto is designing a low-cost car for the Renault Nissan Automotive India, which
will market the product worldwide. Renault Nissan may also join domestic commercial
vehicle manufacturer Ashok Leyland in another small car project. While the possibilities
are impressive, there are challenges that could thwart future growth of the Indian
automobile industry. Since the demand for automobiles in recent years is directly linked
to overall economic expansion and rising personal incomes, industry growth will slow if
the economy weakens
1.3 Nissan-An Overview
Nissan

Motor

Company

Ltd.,

usually

shortened

to Nissan is

Japanese multinational automaker headquartered in Japan. It was a core member of

the Nissan Group, but has become more independent after its restructuring under Carlos
Ghosn (CEO).

Nissan was the sixth largest automaker in the world behind General Motors, Volkswagen
Group, Toyota, Hyundai Motor Group, and Ford in 2011.[5] It formerly marketed vehicles
under the "Datsun" brand name. As of 2011, the company's global headquarters is
located in Nishi-ku, Yokohama. In 1999, Nissan entered a two way alliance with Renault
S.A. of France, which owns 43.4% of Nissan while Nissan holds 15% of Renault shares,
as of 2008. Along with its normal range of models, Nissan also produces a range of
luxury models branded as Infiniti.
The Nissan VQ engines, of V6 configuration, have been featured among Ward's 10 Best
Engines for 14 straight years
Companies VISSION
Nissan:Enriching peoples Lives
Companies MISSION
Nissan provides unique and innovative automotive products and services that deliver
superior measurable value to all stakeholder in alliance with Renault
15

1.3.1 Formation: LOGO

Shape of the Nissan Logo:

The Nissan logo has faced several changes over the years. After taking over DAT
motors, Nissan adopted a slightly modified version of the corporate logo of Datsun,
which consisted of two basic geometric shapes; a circle in red and a rectangle in blue.
The company name Nissan was placed over the rectangle in a rounded yet simple
typeface.
The current version of the chrome-colored Nissan logo, an appreciable rework of the old
emblem, was introduced in 2001.
Color of the Nissan Logo:
The silver color in the Nissan logo represents creativity, perfection, modernism and
sophistication of the companys products.
Font of the Nissan Logo:
The Nissan logo features a custom designed typeface
1.3.2 Nissan India
1.3.2.1 History
16

Nissan's footprint in India has been growing steadily since its inception in 2005. Marked
by an impressive rise in sales, award-winning quality from locally-built products, an
expanding range of innovative cars and a rapidly evolving dealer network the growth
underlines the strategic importance of India to Nissan.
Together with its global Alliance partner Renault, Nissan has made a long-term and
large-scale 45 Mn INR investment commitment in a manufacturing plant at Oragadam,
Chennai. The Alliance has also invested in a state-of the-art global R&D center with
more than 2000 engineers to support product innovation and customization. NMIPL has
appointed Hover Automotive India (HAI) as their sole distributor for India to handle
sales and marketing, dealer development, customer relationship management and after
sales in India.
Guided by its global Brand commitment "Innovation and Excitement for Everyone"
Nissan delivers cutting-edge technology, Innovative design and a rewarding experience
to all its customers. In India, Nissan has been constantly expanding innovative and
exciting product offerings across hatchback, sports car, SUV and sedan segments. Today,
Nissan has strongly positioned three locally produced models premium hatchback
Micra, entry level sedan Sunny and Urban Class Utility Vehicle Evalia. Other existing
range of products include the X-Trail (SUV model), the Teana (luxury Sedan) and 370Z
(iconic sports car) all three imported from Japan as CBU (completely built units).
NMIPL also commenced exports in September 2010 to more than 100 countries
including Europe, Middle East and Africa.
In line with its global philosophy of corporate sustainability, Nissan India is
demonstrating its corporate commitment through various sustainable programs including
safety campaigns and rehabilitation projects. Nissan has constructed residential homes
for relocated families from the construction site, local Police Station and a fire service
station in the Oragadam village. Nissan has also partnered with Habitat for Humanity
for providing shelter to various families by constructing homes for the socially and
economically less fortunate section of the society.
India is a key growth market for Nissan. The company continues its quest to optimize
product development and deliver highly innovative technology to the India market and its
growing customer base.

17

1.3.2.2 Manufacturing Fascilities

NMIPL's manufacturing plant in Chennai can manufacture 200,000 vehicles per annum.
The Chennai Plant has an additional 200,000 vehicles per annum capacity exclusively for
French car maker Renaults Indian arm Renault India Private Limited. The plant's
combined capacity is 400,000 vehicles per annum.
The plant in Oragadam with an investment of

45 billion (US$770 million) covers an

area of 650 acres (2.6 km2). It will manufacture the Nissan Micra for the Indian and
European market, besides various other models for the Indian market
1.3.2.3 sales and service network
NMIPL has appointed Hover Automotive India for the Sales, Service, Parts, Marketing
& Dealer Development functions for Nissan vehicles in India. Nissan currently has 40
dealerships across 39 cities in 17 states and 1 Union Territory of India
1.3.2.4 sales performance
In the year 2007, NMIPL recorded sales of 533 vehicles. Nissan Motor India has sold
more than 13,000 units of its flagship model Micra since sales began in July 2010
The company sold 37,000 vehicles in 2012-13, and is targeting sales of 100,000 vehicles
this year.It exported 130,000 units in 2012-13. And, it hopes to maintain exports this
fiscal.
Addressing a media round-table, Kenichiro Yomura, President, India operations, and MD
& CEO, Nissan Motor India Pvt. Ltd., said, We should have sold more vehicles in
India.
Nissan is targeting a 10 per cent market share in India by 2015-16. Towards this end, the
company is significantly ramping up its dealer network from 95 in 2012-13 to 145 in
2014-14. It has revived the Datsun brand under which it will sell economy segment cars.
Nissan will launch the first Datsun product and two new models and two refresh models
this fiscal.

18

We hope to meet with success with every model, and there are good opportunities in the
sports utility vehicle (SUV) segment, Mr. Yomura said. Datsun is not a cheaper
version of Nissan but is being built as a brand for this market, he added. Mr. Yomura
said the annual capacity of the unit was 400,000 units. It can be raised to 480,000 units,
and we will consider it in the future. He said the company was trying to localise
production. Excluding engines, we have 90-95 per cent localisation. We are unlikely to
localise engines soon but Datsun branded cars will have higher localisation.
1.3.2.4

Production sites worldwide

Japan

Oppama, Yokosuka, Kanagawa (Oppama Plant & Research Center)

Kaminokawa, Tochigi (Tochigi Plant)

Kanda, Fukuoka (Nissan Motor Kyushu & Nissan Shatai Kyushu Plant)

Kanagawa-ku, Yokohama, Kanagawa (Yokohama Plant)

Iwaki, Fukushima (Iwaki Plant)

Hiratsuka, Kanagawa (Nissan Shatai Shonan Plant)

Nagoya, Aichi (Aichi Machine Industry Atsuta & Eitoku Plants)

Matsusaka, Mie (Aichi Machine Industry Matsusaka Plant)

Tsu, Mie (Aichi Machine Industry Tsu Plant)

Uji, Kyoto (Auto Works Kyoto)

Ageo, Saitama (Nissan Diesel Motor, currently owned by the Volvo Group)

Samukawa, Kanagawa (Nissan Kohki)

Zama, Kanagawa (Assembly lines in the Zama Plant were closed in 1995,
currently Global Production Engineering Center and storage unit for its historic
models. Automotive Energy Supply Corporation (AESC), a joint-venture between
Nissan and NEC, produces lithium-ion batteries in Zama.)

India

Oragadam, Chennai

Brazil

19

So Jos dos Pinhais, Paran (Renault-Nissan plant)

Resende, Rio de Janeiro (Under construction)

Indonesia

Cikampek, West Java

Malaysia

Segambut, Kuala Lumpur

Serendah, Selangor

Mexico

Aguascalientes, Aguascalientes

Cuernavaca, Morelos

Morocco

Tangier, Tangier Med port (Under construction, Renault-Nissan plant)

Egypt

6th of October City, Giza Governorate

Philippines

Santa Rosa City, Laguna

South Africa

Rosslyn, Pretoria, Gauteng

Spain

Barcelona

Thailand
20

Bangna, Samutprakarn

Republic of China

Taipei, Taiwan

United Kingdom

Washington, Sunderland, North East England

United States

Smyrna, Tennessee

Canton, Mississippi

Decherd, Tennessee

Russia

St. Petersburg, Russia

1.3.2.5

Chennai Plant Key Figures

oragadam is in the State of tamilnadu, in the south of India, and has a population of over
one million. The Nissan-renault India Private Limited plant has a total workforce of
1,200 including around 60 working on the production of Nissan-renault models and in
related areas (as at: December 31, 2010).
Chennai will play a strategic role in Nissans growth strategy globally
Site

Belonging

to

Nissan-Renault

India

private limited
Nissan Production Start

July 2010

Employees
Models

Nissan Micra, Nissan Sunny, Nissan

Evalia
21

Production(2012)

1.3.2.6

31,300 units

Marketing

SHIFT_ campaign
In 2002, Nissan introduced the SHIFT_ campaign as a replacement of the DRIVEN
tagline, with focus on two words that would define it the Nissan brand globally: BOLD
and THOUGHTFUL.
In 2006, TBWA\Chiat\Day unveiled The Next Generation SHIFT_2.0 campaign, which
featured a mix of traditional and non-traditional media. TV, print and out-of-home
placements generate awareness for the five new models (Quest, followed by Maxima,
Versa, Sentra and Altima) and showcase key technologies, while the Internet provides
the central hub for deeper product information. The updated campaign was directed by
TBWA Chiat Day of Playa del Rey, California, with additional support provided by
TEQUILA, The Designory and OMD. Early commercials included 'The Roads TV'.
Justin Spencer worked for Tequila Digital TBWA to design and direct the Nissan Shift
Brand Campaign for the Australian market
Innovation campaign
In 2010, Nissan introduced the Innovation campaign as a replacement of the SHIFT_
campaign, created by the Los Angeles office of TBWA/Chiat/Day, part of the TBWA
Worldwide unit of the Omnicom Group. One of the first commercial under the
Innovation campaign was used in the Nissan LEAF commercial with slogan 'Innovation
for all'. Other changes include the addition of a sound at the end of each commercial,
meant to symbolize the Nissan brand; and a new voice-over announcer for the
commercials, the actor Robert Downey Jr

WHAT IF_ campaign

The WHAT IF_ campaign was produced via an advertising competition (with American
Advertising Federation) that had a goal to get ideas from college students from all over
the nation and to hear their ideas on how to reach multi-cultural audience in the age range
of 18-29, since the SHIFT_ campaign had not reached such audience.
22

The campaign started in April 2012 at Japan's Narita and Osaka airports, with the first ad
under the campaign being a 2014 Nissan GT-R featuring Usain Bolt unveiled on 201206-01 at major airports around the globe (developed by TBWA).
A 2014 Nissan GT-R sign featuring double-size Usain Bolt was unveiled in Dubai
international airport, and was recognized Guinness World Records as world's largest
illuminated advertising sign (indoors) (28.0m in length and 6.2m in height).
WHYBIN\TBWA produced a 45-second TV commercial for New Zealand market that is
part of the WHAT IF_ campaign, featuring Nissan LEAF, Nissan GT-R, Nissan Qashqai,
Nissan X-Trail, but also used the SHIFT_ slogan.Australian version of the ad lasted 30
seconds

1.3.2.7

Nissan Technology

Quick Comfort Seat Heater

A seat that heats up fast and stays warm, combating fatigue and relaxing you
The seat optimizes the place and temperature control according to the time after the
heater activates. It reduces the time it takes until you feel warm and maintains comforting
warmth for longer. As blood circulation improves, fatigue when driving is minimized,
relaxing drivers in the car.
Xtronic CVT
CVT reduces emissions, provides "driving pleasure"
CVT (Continuously Variable Transmission) is a system with seamless, stepless gear
transmission. Early on Nissan understood the merits of CVT, low-fuel consumption and
seamless acceleration, developing and adopting the technology for its vehicles.

Extending the attributes of the efficient CVT even further, XTRONIC CVT now offers
powerful acceleration performance that is also a pleasure to drive.
SRS Airbag System
Nissan has vigorously developed a variety of safety technologies to help protect
occupants in side collisions. Typical examples include the high-strength Zone Body
construction, SRS side airbag systems for the driver and front passenger (also available

23

in the rear seat on some models) and interior trim materials with high energy-absorbing
capabilities. As a further measure, Nissan is continually expanding the application of
SRS curtain airbag systems to help minimize head and neck injuries in side collisions
Low Friction SeatBelt
A low-friction seatbelt that feels light when being pulled out and with little feel of
tightness when being worn was developed by softening the webbing (sash portion on
seatbelts). This helps promote wearing seatbelts by increasing comfort during use
MR16DDT Engine
Powerful engine with superb fuel efficiency
The MR6DDT is an engine with superb performance and an environmentally conscious
design. It employs a turbocharger and utilizes various controls to combine engine
performance equivalent to a 2.5L engine while being 1.6L class, and also excellent fuel
efficiency
Smart Auto Headlights
This system automatically turns on headlights and position lights. Since it removes the
necessity to manually turn lights on or off, a driver does not need to operate a switch
when entering an underground car park or tunnel. It is aligned with the ignition key,
meaning the lights will automatically go out when the engine is turned off. This protects
against forgetting to turn off lights after parking
Moving Object Detection (MOD)
Adding to the capabilities of the Around View Monitor, which shows the driver a virtual
video image of the area surrounding the vehicle, this new function helps the driver avoid
a collision by providing visual and audible warnings if the system detects moving objects
within the displayed image in situations such as pulling in or out of a parking space.
Around View Monitor with Parking Guide
The Around View Monitor is a system that displays a virtual birds-eye view of the
vehicle. For parking, the technology has been further enhanced to make it easy to
24

understand, easy to use and easy to see. The Parking Guide is a display and voice
guidance providing appropriate vehicle maneuvering assistance information for backing
up and steering when parking into a garage or parallel parking, helping drivers to park
more smoothly.
Electro-Hydraulic power steering system
Nissan's new power steering system provides the natural, smooth feel of a sophisticated
conventional hydraulic power steering system while simultaneously improving fuel
economy by using electric power instead of drawing power from the engine.
Intelligent Brake Assist(BA)
The laser radar sensor detects the distance to a preceding vehicle and the relative
velocity. If necessary, the system activates the brakes of the vehicle.The vehicle assists
the driver's braking action according to the situation. Intelligent Brake Assist helps avoid
rear-end collisions, and it also works in concert with the Brake-Operated Pre-crash
Seatbelts to help mitigate injuries in the event a collision is unavoidable.
1.3.2.8

Nissan Cars In INDIA

Nissan Cars
Image

Name

Models

Type

Offered
Micra

Active-XE,
XL,

Hatchback

XV,

XVS
NormalXL,

XL(O),

XL

CVT,

XV, XVP

25

Sunny

XE, XL, XV,

Sedan

XL CVT

Evalia

X-Trail

XE,

XE+,

Full

XL, XV

MUV

LE, SLX MT,

4x4 SUV

Size

SLX AT

Teana

370Z

250XL,

Luxury

250XV

Sedan

Touring

Luxury

Coupe

MT,

Sports

Touring
Coupe AT
GT-R

Normal,

Coupe
Super Sports

Premium
Coupe

1.3.2.9

Nissan Offerings In India

Nissan sells seven different types of models in India i.e. Micra, Micra Active, Sunny,
Evalia, Teana, X-Trail, 370Z, R 35 GT-R
Micra
The original Micra (chassis name K10) was introduced in October 1982 as a challenger
to the highly successful Honda City.It was intended to replace the Nissan Cherry as the
company's competitor in the supermini sector, as the Cherry model itself had
26

progressively become larger with each successive generation. One of the four factories
which produce the Nissan Micra K13 is located in India.
Nissan Micra is available in India with four petrol and two diesel variants. The four
petrol variants of Nissan Micra are: Nissan Micra XE, Nissan Micra XE Plus, Nissan
Micra XL and Nissan Micra XV. All the four variants are powered by the 1.2 L, 1198 cc,
petrol engine with five-speed manual transmission that delivers 76 PS (56 kW; 75 hp) of
maximum power at 6000 rpm with 104 Nm (77 lbft) of maximum torque at 4000 rpm.
These variants are differed from each other by the interior comfort, luxury and safety
features. Notable feature includes a standard air bag across the range although ABS is
available only on the top variant.
Sunny
The Nissan Sunny is a compact car built by the Automaker Nissan from 1966 to 2004
and again since 2006. It was launched in 1966 as the Datsun 1000 and although
production in Japan ended in 2004, the name remains in use in the Chinese market. The
Indian-spec new Sunny was unveiled at the 2011 New Delhi Expo, continues to compete
with the likes of other entry-level sedans such as Toyota Etios and Honda Amaze in
2014.
Evalia
The Nissan NV200 is a light commercial vehicle produced by Nissan. It was first shown
as the NV200 Concept at the 2007 Tokyo Motor Show. It was launched in Japan as
Nissan NV200 Vanette on May 21, 2009.
The Evalia was launched in India on the 27th of September, 2012.This new MPV from
the stables of Nissan Motors is slotted in between the Maruti Suzuki Ertiga, which was
launched in India in the month of April and has managed to make a mark in this segment,
and the Toyota Innova, which is tagged as the bestselling MPV for a long time now.
Maruti Ertigas highest selling point is its low price that has set the ball rolling for the
new compact MPV in the Indian car market
X-Trail

27

The Nissan X-Trail is a compact crossover SUV produced by the Japanese automaker
Nissan since 2001. It was one of Nissan's first crossover SUVs and was released about
the same time as several other companies competing car-based compact SUVs including
the Suzuki Grand Vitara, Ford Escape and its Mazda Tribute sibling, the Hyundai
Tucson, Honda CR-V and the Toyota Fortuner.

Teana
The Teana was first introduced in late 2003 to the Japanese Domestic Market. It was
introduced a month later to other Asian markets like Singapore
Teana is an premium luxury sedan provided by Nissan in India. It was first launched in
2007 in India with two different type of engines and variants.
370Z
The Nissan 370Z (known as the Fairlady Z Z34 in Japan) is a sports car manufactured by
Nissan Motors. It was announced on October 29, 2008 and was first shown at an event in
Los Angeles ahead of the 2008 Greater LA Auto Show.
370Z is an premium Sports coupe provide by the Nissan in India. It was first launched in
2010 in India.370Z is assembled only on customers order.
1.3.3 SWOT
Strengths
Strong financial performance.
Nissans revenue has been growing over the last few years from 7,517,277 billion yens in
2010 to 9,409,026 billion yens in 2012. Firms net operating income and net profit
increased as well. Due to such strong financial performance, Nissan was able to achieve
at least temporary competitive advantage over its competitors.
Strategic partnerships.

28

Nissan has established more than one strategic alliances and partnerships with other
companies. The most successful was an alliance with Renault, which was established in
1999 and continues to date while benefiting both partners. Another notable partnership
was created with Daimler AG. Nissan has acquired some very important technologies
from this partnership and is working further to create even more synergies with both
Renault and Daimler.
Innovative culture.

The business invests 4.5% of its revenue to R&D. This strategy helped Nissan to develop
currently the most popular electric vehicle (LEAF) and some important innovations in
production process. Nissans R&D capabilities are one of the sources of its competitive
advantage.
Growing brand reputation.
Nissans brand was the fastest growing automotive brand in 2012, according to
Interbrand. Its value rose by 30% to nearly $5 billion and became the 73rd most
valuable brand in the world. Although modest position compared with other automotive
companies, Nissans brand value growth proves significant improvement in quality,
reliability, innovation and growing customer reach
Weaknesses
Product recalls.
Over 2011 and 2012, Nissan has recalled at least several hundred thousands of various
model cars. Although Nissan recalls comparably less cars than its competitors do, such
situation still hurts firms brand reputation and customers loyalty.
Opportunities
Growing global demand for environment friendly vehicles.
Vehicles have been a major factor in intensifying greenhouse effect by emitting large
quantities of CO2 and heavily polluting air. Consumers are more aware of this negative
impact and are more likely to buy environmentally friendly vehicles that emit much less
CO2 and are fuel-efficient.
Growth through strategic partnerships.
29

Nissan has great experience in creating strategic partnerships that bring synergy, new
capabilities and technologies to the firm. In the current situation, where many firms seek
ways to cut costs, Nissan should try to establish many more partnerships and alliances
and benefit from the advantages that come with them.
Increasing fuel prices.
For years, Nissan has been favoring fuel-efficient cars with hybrid, hydrogen or electrical
engines. Increasing fossil fuel prices encourages the consumers to buy such cars and
Nissan is already in position to offer many car models with various environment friendly
engines
Threats
Decreasing fuel prices.

There is high possibility that future fuel prices will drop, as more shale gas fuels will be
extracted. For this reason, hybrid, hydrogen or electric cars may become less attractive to
cost conscious consumers.
Global competition in automotive industry.

The competition between Nissan and other automotive companies will intensify in the
future. GM, Toyota, Hyundai, Ford and other corporations will have to introduce new
models faster and compete more on the price rather than differentiation, which lowers the
profits and damages the results of the companies.
Rising raw material prices.

Rising prices for raw metals will lift the costs for auto manufacturers and result in
squeezed profits.
Natural disasters.

The business has manufacturing facilities in Japan, Thailand, China and Indonesia. These
countries, including others, are often subject to natural disasters that disrupt
manufacturing processes and results in lower production volumes and losses.
30

Appreciating yen exchange rate.

Most of Nissans revenue comes from foreign countries. Appreciating yen exchange rate
against other currencies means lower profits for the company.

1.3.4 Porters Five Forces Analysis

Threat of Entrants: (Low threat)

For any Nissan competitor, there are significant barriers to entry, including finding and
sourcing suppliers to build various components, setting up manfucaturing operations, and
establishing a dealer network through which to sell cars.

Buyer Power: (Low Buyer power)

Buyers are pretty fragmented around the world, and new cars can only be sold through
authorized dealers, so buyers have relatively little power, though they obviously have
choices from competitors so they are not completely without power. As for service, Nissan
buyers have many choices so there is more power there.

Supplier Power: (Limited)

Nissan, like all car companies, probably has some switching costs and transaction costs to
switch suppliers, so the suppliers probably have some negotiating power, but it's probably
limited.

Threat of Substitutes: (Medium)

Nissan certainly works to build brand and there are Nissan loyalists, but there are many
substitutes in the market for buyers, like Toyota, Honda, GM, etc. as well as other modes
of transportation. I would say it's medium to moderately high.

Rivalry: (High)

31

Car buyers have a lot of choices in the market within all segments (luxury, economy,
SUV's, etc.) and the switching costs are pretty low, unless there's no dealership nearby. I
would say the degree of rivalry in this industry is high, depending on the specific
marketplace/region.

CHAPTER-2

INTRODUCTION TO THE TOPIC

2.1 CONSUMER DECISION PROCESS

At present, the consumer decision process model has been well accepted. This model of
purchase as decision process is explained in more detail by Thorelliet al (1975).Thorellis
decision model illustrates the type and shows there are a series of semi discrete steps
which take place over time for the buyers and purchasers.
Predispositions (Before Purchase):

According to Thorelli et al (1975), the prospective buyer possesses a certain stock

ofcognitive content, including his own personality or self-concept, attitudes andopinions
both in general and on specific products, and stored information and pastexperience. This
stock has been formed as a result of his interaction with hisenvironment over time, and it
will help determine the environment in which he placeshimself in the future as well as
influence his perceptions of that environment.
Product Need:

As a result of either cognitive activity or some environmental stimulus, the buyer

Recognizes a need which is capable of being satisfied by a product or service. In
otherwords, the need is often triggered by internal or external stimuli. Some authors
32

alsotake this need recognition stage as the entry point. Chaston (2001) argues that
thepotential consumer will not implement any of the other steps in the buying
processuntil need recognition has happened.
External Search:

Thorelli et al (1975) describe that this stage represents all search of the
externalenvironment for alternative solutions as well as for information helpful in
evaluatingthese alternatives. The search for information occurs on an internal and
external basis(Gilbert, 1999). The internal search for information from previous
experience mightbe relevant to the present purchase situation. The extent and nature of
external searchfor information likely in any given purchase has been the subject of a
great deal ofresearch. When searching for information in the external environment (e.g.,
friendsand family), consumers focus on those relevant attributes that are available and
arediagnostic (Dick et al., 1990)
Evaluation of Alternatives:

This

stage

consists

of

the

physical

and

cognitive

activities

involved

in

comparingalternatives on the basis of information gathered from external search above.

According to Kotler (2000), the consumer arrives at attitudes toward the variousbrands
through an attribute evaluation procedure and most buyers consider severalattributes in
their purchase decision. These attributes used by consumers forevaluation are also called
choice criteria. Jobber (2001) has made a good summary ofthese choice criteria. In fact,
consumers attempt to optimize the trade-off betweenproduct benefits, product costs, the
desired personal utilities and other variables.
Purchase Activity:

Purchase activity involves the actual final decision and physical activities involved
inmaking (or not making) the purchase. This stage includes the actual transaction.
However, as suggested by Kotler (2000), perceived risks of a consumer can
heavilyinfluence his decision to modify, postpone, or avoid a purchase decision.
Therefore itis necessary for marketers to understand factors that might provoke perceived
risk inconsumers and work out solutions to reduce that.
Post Purchase Behavior:
33

This step is concerned primarily with the buyers use of the product purchased.
Afterpurchasing the product, the consumer will experience some level of satisfaction
ordissatisfaction,

which

will

influence

consumerssubsequent

behavior.

Dissatisfiedconsumers may abandon or return the product, they may even complain to
the othergroup (Kotler, 2000). It is clear that satisfactions and dissatisfactions created
byproduct performance will be important determinants of attitudes and informationstored
as inputs to future purchase decisions.
Predispositions (After Purchase and Use):

This stage suggests that following the purchase process; the buyer (or non-buyer) isleft
with cognitive content, which may be quite different from that which was presentat the
beginning of the process. Buyers may change their attitudes, information andexperience
due to reasons of time and events. All of these may serve to changesubstantially the
nature of the decision process for future purchases of the same type.

Chapter-3

Literature Review
RESEARCH INTO MID-SEGMENT AUTOMOBILES
24In the past years the research into customer perception and behaviour in the
automobile hasbeen driven by American researchers (Haubl, 1996; Iacobucci, et al. 1996;
McCarthy et al., 1992; Purohit , 1992; Sullivan, 1998; Rosecky and King, 1996). Very
few authors and writings have investigated customer perceptions of luxury cars (Rosecky
and King, 1996) and much of this work is focused on consumer loyalty and brand
switching (Iacobucci, et al. 1996; Lapersonneet al., 1995;McCarthy et al., 1992; Purohit,
1992).
34

The major research focus has been on low priced segment car ranges rather than the
luxury segment in which choice between brand concept image and individual choice of
potential buyers play a great role. Therefore, they have neglected customers individual
differences (especially attitudes and specificity) that provide different perceptions
towards the automobiles or their marquees, which are important in purchase decision
making (Jahoda, 1966; Festinger, 1964; Rosecky and King, 1996; Markin, 1969). These
research carry the beliefs that automobiles customers merely strive for product-related
attributes (Keller, 1993), in otherwords, functional, tangible, visible characteristics
(Kapferer, 1997), or utilitarian needs (Havlena and Holbrook, 1986; McClelland,
1951).
This agrees in line with Lancasters theory (1966) that demanders buy groups of features
rather than products, their opinions regarding the similarity of products must also be
determined by features. Research into purchasing patterns, however, indicates that it is
not the objective features (tangible or technical attributes) themselves, but rather the
subjective perception of these that determines consumer choice (Bauer and Herrmann,
1995; McFadden, 1986; Urban and Hauser; 1980). There are differences between
business-to-business (fleet) buyers and retail (non-fleet or private) car buyers.
Business-to-business buyers are professionals and experts in terms of functional
benefits (Keller, 1993) of cars bought for employees. Thus, their consumption is
routine and functional. This may explain why it shows that significantly more
Mahindra are purchased as fleet cars (company cars) than Other SUV&MUV from.
While generally they have equal insurance cost, Mahindras price is lower and it
possesses more powerful technical features: a larger engine, higher horse power, quicker
acceleration, and higher maximum speed, and therefore is perceived to offer better value
for money in the workplace.
In contrast, preferences of retail customers for other suv like duster, Scorpio exceed
Mahindras and enable other suv&muv to achieve higher sales, despite the better offer
and technical characteristics of Mahindra. This is because retail customers are amateur
purchasers who spend their own money for non-routine consumption. Thus, they seek to
gain experiential or symbolic (Keller, 1993) benefits from the car brand instead. This
demonstrates that there exist differences in specificity among individual customers.
Specificity may depend largely on how buyers discriminate, between essential and
35

special need (Oliver, 1997: 54) in importance: in other words needs and wants. If some
buyers regard importance as meaning essential, then all requisite features of the cars,
such as maximum speed, acceleration rate, horse power, and engine size become very
important. On the other hand, if buyers perceive importance as a special need, then some
features may not be anticipated. For example, if the car buyer is only interested in the
country-of-origin of the brand (India in this case), then the technical characteristics will
be unimportant. When customers seek to purchase a product, they pay attention to
whether the product will satisfy basic needs and desires in their lives. Here, the fleet-car
customers have the basic needs (to choose a cost-effective car), and desires (to possess a
luxury car).The most reasonable choice is Maruti Suzuki SWIFT. However, most retail
customers have a more preferable attitude towards Hyundai I20. When having to select
among alternatives, customers are interested in differences across brands in the same
product segment and even models. Most luxury cars hold their marquees as a flagship. In
other words, the brands power acts as significant entry barrier. To enhance the brands
power, most luxury car marquees have stretched their brand upward or downward into a
new segment. Most marquees that usually have strong position of their car models on
mid-size and large luxury saloon segments will stretch their brand downward. For
example, Mercedes-Benz introduces A-Class, a small family car, and M-Class, a sport
utility vehicle following the successful S-Class and E-Class introduction. Rover
constantly emphasize their Rover Mini along with their mid-size 800 range. On the other
hand, car manufacturers who are not usually perceived to be in the Mid-segment will
attempt to stretch theirbrand upward. The strategy is the diversification into a sub-brand.
The most notable examples are the introductions of Lexus under Toyota and Infiniti
under Nissan which have been successful globally. At this point, the essential features
become unimportant because all brands are perceived to have these features to equivalent
degrees. This phenomenon insists that signifying product-related attributes alone can
only partially explain the sophistication of buying behaviour of Mid-Segment
automobiles customers.

36

CONSUMER BEHAVIOUR OF MID-SEGMENT AUTOMOBILE CUSTOMER

Most current owners of Mid-segment cars tend to have purchased a car previously; the
customer has potentially developed an attitude toward it. Here, an attitude becomes an
evaluating judgment (desire or not desire) based on prior or present experience such as
previous satisfaction from dealers or products and services (after sales and warranty),
driving experience, and socio-economic status of customers. It is also possible that an
attitude can be developed based on prior information without experience, as when
consumers develop preferences or biases for or against brands based on the brands
images in the marketplace. This also depends largely on purchasing power of individual
customers. Customers may have a favourable attitude towards some manufacturers cars,
but may lack the ability due to insufficient purchasing power or willingness to take
buying action. On the other hand, lower (lower-priced) manufacturers cars may be
neglected by customers who have high purchasing power (or over-purchasing power in
this sense). For example, most buyers (with high, medium, or low income) tend to have a
preferable attitude towards some manufacturers cars such as Honda, Nissan. The
difference is that customers with low to medium income may still also anticipate the
quality of smaller sized cars of manufacturers from the lower segments such as Fiat,
Ford, Maruti Suzuki, and Tata, as these cars are affordable to them. In other words, cars
from lower segments have the meaning of reality to them.
The following variables were identified:
(1) Reliability
(2) Quality
(3) Durability
(4)Safety
(5) Security
(6) Performance
(7) Efficiency
(8) Technology

37

(9) Handling
(10) Value
(11) Style
(12) Comfort
(13) Prestige
(14) Status
(15) Visual impact.
The first nine variables are in the objective category. The last six variables are in the
subjective category. These different attitudes are directly related to different types of
customers because cognition, feelings, and response dispositions of customers are
organized into a set of patterned emotional reactions (Markin, 1969). This may be due
to differences described as demographic, geographic, psychographic, or lifestyle.
Therefore, behaviour moves from personal buyer to different buyers in a given society.
Like other products, Mid-segment automobile marketers (manufacturers, companies,
dealers) also need to focus on who buys or type of customers to segment their cars. A
discussion of the segmentation of the consumers and the Mid-segment automobiles
follows.

38

Chapter 4

Research Methodology

Title of the study

The study on CUSTOMERS BUYING BEHAVIOR FOR MID-SEGMENT CAR

Problem Statement

Will NIssan be able to increase its market sharevis-a-vis competitors?

Significance of the study

It is important to identify the Buying Behavior of the customers in the areas
where people are capable of buying a Mid-Segment car.
It is important for the study of competitors market share & preferences of
customers for their second option.

Research Objectives
To study the various factors that influences the buying behavior of the customers.
To study the current scenario of the Mid-segment car market.
To know the options they have considered while buying their current car.
To know the future planning of the new car (Duration and Brand).

Scope of study
39

The scope of study is limited to the Mid-Segment car owners of Ahmedabad, Surat,
Baroda and Rajkot in Gujarat in order to know their perspective regarding the buying
patterns in the Mid-Segment car market. The main focus is to know the consumers
behavior for buying the Mid-Segment cars.

Data Collection

After identifying and defining the research problem and determining specific information
required solving the problem, the next step is to look for the type and source of data that
may yield the desired results. There are mainly two types of data that a research can
collect one is the primary data and the other is the secondary data.

SOURCES OF DATA

PRIMARY DATA

The primary data was collected through questionnaires. The questionnaire was framed
and survey was conducted for collecting the primary data for study and analysis.
SECONDARY DATA

It was collected from internal sources. The secondary data was collected on the basis of
organizational file, official records, newspapers, management books, preserved
informationin the company database and websites.

Questionnaire Design

Surveys was conducted, copy of the questionnaire is annexed at the end ofthe report.
Mid-Segment car users were surveyed in the form of structured interview.

Research Design
40

A Research design specifies the methods and procedures for conducting a particular
study. It is a map / blue print to which the research is to be conducted. Descriptive
research design has been considered as a suitable methodology for present study and for
data analysis. Descriptive research, also known as statistical research, describes data
and characteristics about the population or phenomenon being studied. However, it does
not answer questions about eg: how/when/why the characteristics occurred, which is
done under analytic research. Surveys and interviewed each sample of the survey
individually. Causal Research was not selected because we are not studying cause and
effect relationship in our research was being instructed by management to describe the
characteristics of Mid-segment car customers and the areas of improvement

Sampling Design

The sampling design used was Convenience sampling, which is a non-probability

sampling method. The convenience factors were the availability and approachability of
the Respondents.
The samples
to

Total Samples
100

41

Chapter 5

DATA ANALYSIS &

INTERPRTATION

5.1 Analysis Of Mid-Segment Car Users

Gender
Gender

No.Of Respondents

Male

82

Female

18

Gender

female, 18

male

male, 82

female

42

Interpretation
Looking to the demographic aspects of the respondents 82% of the samples are males
and females respondent were 18%

Qualification
Title

No.of Respondent

Secondary

Higher Secondary

Graduation

61

Post Graduation

38

Others

43

Qualification Of Customer

Secondary
Other

H.Secondary, 1

Secondary
H.Secondary

Post.Grad, 38

Graduation
Graduation, 61

Post.Grad
Other

Interpretation
(1) From the above chart it is observed that 61% of the respondents are Graduates and
they are knowledgeable to consider value for the Mid-Segment brands.
(2) The 38% respondents come from the post graduation background, professionals and
highly educated individuals like Doctor-MD, MBA's, and Masters in Poly-Chemistry
etc are included in it.
(3) The remaining 1% includes Secondary, Higher secondary and others category like
Diploma, Architectures etc

44

Profession
Particular

No.Of Respondent

Service

70

Business

20

Student

Retired

45

Profession
Retired, 2
Student, 8

Service
Business, 20

Business
Student
Service, 70

Retired

Interpretation
(1) The chart suggest that 20% of the respondent are into business sector.
(2) The remaining 70% are into the service sector.
(3) while the remaining 8% of the respondent are students who currently own car.
(4) There are 2% of respondent who are retired and own a car.
Age Group
Age group Slot

No,of Respondent

<=18

19-25

40

26-30

32

30-40

13

>=40

15

46

Age Group
<=18, 0
>=40, 15
19-25, 40

30-40, 13

<=18
19-25

26-30
26-30, 32

30-40
>=40

Interpretation
(1) The segmentation of the companys selling can be done with the help of this attribute
company can come to know their customers age group and thus targeting them becomes
easy.
(2) Majority of Mid Segment car owners are between 19 to 25 years with 40% of total
response.
(3) The young guns within 26-30years of age group are fond of Mid-Segment Cars and
are near by 32% of the respondents
(4) The no of Respondent between the age30-40 is 13% because they are fond of shifting
the segment from mid-segment to luxury segment
(5) Higher age generation is having less interest in Mid-Segment cars; Because either
they have used it or their children are going to purchase the new one, hence the no of
respondent >=40 is 15% only.

47

Income Group(P.A)
Income Group

No.Of Respondent

<=5lakh

29+50

6-10lakh

14

11-20lakh

>=20lakh

48

Income Group(P.A)
11-20 lakh, 2 >=20 lakh, 5

6-10 lakh, 14

<=5 lakh
6-10 lakh
<=5 lakh, 79

11-20 lakh

>=20 lakh

Interpretation
(1) The exact income level is difficult to estimate as it is ones personal view to disclose
it without biasness or not, respondents generally try to skipthis question. Thus the slots
are prepared to find out their incomelevel,without harming their point of view regarding
income.
(2) These are middle class customers with Normal income level to purchase a MidSegment car majorly 79% of these people lay in <= Rs.5 Lakhs income group.
(3) Followed by 14% of respondent in Rs. 6-10 Lakhs income group.
(4) Followed By 2% of respondent in Rs 11-20 lakhs of income group and by 5% of
respondent falling into >=20 lakh group
Thus rich and normal standard of living people can afford these Mid-Segment brands.

49

1.Do You Own A Car?

Response

No.of Respondent

Yes

94

No

Own a Car?
No, 6

Yes
No
Yes, 94

Interpretation
From the survey of 100 respondents in and outside Ahmedabad it was found that 94% of
the respondents have the Mid-Segment cars in their ownership.
And 6% of respondent were found of not having a single car.

50

2.Which Cars do you own?

Brands

No.of

Other Include:

respondent
Maruti Suzuki

42

Nissan

Ford

Honda

18

Chevrolet

Other

25

Hyundai, Tata, Fiat,

Volkswagen Etc.

Present Cars Of Customers

Maruti Suzuki

Other, 25
Maruti Suzuki, 42

Nissan
Ford

Honda

Honda, 18

Chevrolet
Chevrolet, 4

Other
Ford, 4 Nissan, 1

Interpretation
From the survey and the above chart it has been analyzed that the samples posses the
following cars currently (%Value of the No. of respondent).
(1) Highest share is of Maruti Suzuki about 42%, Followed by other Market leader with
25%.
51

(2) The third in the lead is the Successor of the current market Honda With 18% of share.
(3) The upcoming competitors in the Indian and Gujarat market are chevrolet 4% and
Ford 4%, the city Ahmedabad is also getting influenced by these well known brands.
Further studies would throw some light on this statement.
(4) It has been also found that many people are having multiple brands in their
ownership.
(5) Considerably other brands like Skoda, Hyundai, Toyota, Volkswagen, Tata, Fiat etc
which are in the market of Mid-Segment cars Are having their share of 25% which can
be considered a remarkable share.
(6) The rest of the 6% of respondent does not own any car yet.
(This study is based on 100 samples only, thus actual scenario of the market cannot be
estimated by this study)

3.Which Type Of Car do you own?

Types

No.Of

Other Include:

respondent
Sedan

28

Hatchback

64

Sports

Suv & Muv

Other

Cross-over,
Coupe, cabriolet,
Wagon etc

52

Type Of Car You Own

Sports, 0

Suv&Muv, 2

Other, 0

Sedan, 28

Sedan
Hatchback
Sports

Hatchback, 64

Suv&Muv
Other

Interpretation
(1) The Above chart suggests that there are 28% of people having Sedan segment car, 2%
having SUV and MUV Segment cars.
(2) People with hatchback segment are 64%. Thus there are more hatchbacks in the
market, as it is the most preferred segment by the customer for mid-segment cars
(3) There were only 2% of respondent who were having an Suv or Muv type of Car
(4) There Were 0 respondent in the category of other type of vehicle.
(5) There were total 6% of respondent who were not having any car.

4. Usage of Car?
Usage

No.Of respondent

Self

92

Driver

Mix of both

53

Usage Of Car
Driver, 1

Mix Of both, 3

Self
Driver
Mix Of both

Self, 92

Interpretation
(1) The study suggests that 92% of respondent have the Self usage of their car.
(2) while 3% of respondent are using for mix driving it means both the driver and by self
and only 1% people are using their cars through drivers only.
(3) There were 6% of respondent who were not owning an single car.
(4) As it is an Mid-segment category most of the respondent drive their car by
themselves only .

5. Which Of This Aspects made You Buy This Car?

Attributes

No.Of

Others Include:

Respondent
Brand

67

Offer

Financial Scheme

Recommendation

State of art
showroom,
looks of car,
Etc..

54

By other
Other

Current Cars Preferences Due to?

Recommendation
by other, 9

Brand

Other, 5

Financial
Scheme, 6

Offer

Brand, 67
Offer, 8

Financial Scheme
Recommendation by
other
Other

Interpretation
(1) Customers are having perceived perception about the Brands; they built the image of
the Branded products by seeing it (Virtually and physically), hearing from others, as a
status symbol, as the world wide recognition and reputation of the brand.
(2) Thus 67% of respondents are Brand conscious and only the brand name influenced
their current choice.
(3) There are people who are attracted through offers and financial schemes; they are in
8% and 6% of the total respondent.
(4) There are people who purchased their car on recommendation by other. There were
9% of respondent who purchased car on others recommendation.
(5) There were only 5% of people who purchased car on the basis of other category
55

6. Which Type Of Advertisement influenced You?

Ad Types

No.of

Others Include:

Respondent
Print Media

48

Events

16

and

Self awareness,
showroom visit,
auto show reviews
etc.

Promotion
Television AD

19

Online Media

Other

Advertisement Influence For Current Cars

Online Media, 3

Other, 8

Television AD, 19

Print Media, 48

Print Media
Events and Promotion

Events and
Promotion, 16

Television AD
Online Media
Other

Interpretation
(1) The Chart suggest that the majority(48%) of the respondents are influenced through
Print media, the medium could be New paper ads, Hoardings on the streets, Leaflets,
56

Broachers etc. As the reach of these types of advertisement is more into domestic, sub
urbs and urban areas all together.
(2) Television ads capture only 19% of customers as it is launched on national level and
withdrawn very soon. These users are majority of working and studying profile thus time
factor does not allow them to view TV ads.
(3) Others and Online media combined Influence is of 11% customers.
(4) There Were only 16% of respondent that were influenced to buy car through Events
and Promotions.

7.Please rate the below mentioned parameters you consider while buying the car?
Parameter

Strong

Agr

Neithe

Disagr

Strong

ly

ee

ee

ly

agree

Agree

Disagr

Nor

ee

Disagr
ee
Thorough

52

46

45

51

53

39

for

79

21

Effective sales

26

58

15

product
knowledge
Effective
customer
handling
Satisfactory
test drive
Value
money

57

follow up
Attractive

64

28

deals offered
(Offers/Disco
unt)

(A)Thorough Product Knowledge

Note:Analysis on next page

Neither agree
nor disagree, 2

Thorough product knowledge

strongly disagree, 0

disagree, 0

Strongly agree
Agree

Agree, 46

Strongly agree, 52

Neither agree nor

disagree
disagree

strongly disagree

Interpretation
(1)52% of the respondents strongly agrees and 46% of the respondent agree to the
aspect of knowledgeable sales but it is important for the sales person to have
minimum knowledge to explain, it is the first interaction with the company.
(B) Effective customer handling
Note:Analysis on next page

58

Neither
Agree nor
disagree, 3 Disagree, 1

Effective Customer Handling

Strongly disagree, 0

Strongly agree
agree
Strongly agree, 45
agree, 51

Neither Agree nor

disagree
Disagree
Strongly disagree

Interpretation
(1) Agreement level is 51%, thus these respondents agree with the customer handling
and interaction quality.

(C)Satisfactory Test Drive

Note:Analysis on next page

59

disagree, 1

Satisfactory Test Drive

Neither agree
nor Disagree, 7

strongly disagree, 0

Strongly agree
agree

Strongly agree, 53

agree, 39

Neither agree nor

Disagree
disagree
strongly disagree

Interpretation
(1) Strong Agreement level is 53%; majority of them are strongly satisfied with the
test drive offered by the brands they have visited.
(D)Value For Money
neither
agree nor
disagree, 0

disagree, 0

Value For Money

strongly disagree, 0

strongly agree
agree

agree, 21

neither agree nor

disagree
strongly
agree, 79

disagree
strongly disagree

Interpretation
60

(1) Agreement level is strongly agree 79%, they have got the rewards of their
investment, the customers are at delight level.

(E)Effective Sales Follow-up

Effective Sales Follow-up

disagree, 1

strongly disagree, 0

Strongly agree
neither
agree nor
disagree, 15

agree
Strongly agree, 26

neither agree nor

disagree

disagree
agree, 58

strongly disagree

Interpretation
(1) Fairly agree 58%; respondents agree to the after sales services but very less
respondents are delighted, it becomes the major attribute in taking decision of buying.
(F)Attractive Deals[offers/discount]

61

disagree, 0

Attractive Deals

neither agree
nor diagree, 8 strongly disagree, 0

Strongly agree
agree
agree, 28

neither agree nor

diagree

Strongly agree, 64

disagree
strongly disagree

Interpretation
(1) 64% strongly agree to it and 28% agree as they have been offered the right
discount at the right time but the remaining are still in neither agree nor disagree
agreement with this aspect.

8. From the following aspects which are most and least importance to you
while buying a car?
parameter

Import

Fairly

Neutr

Least

Not At

ant

Import

al

Import

all

ant

importa

ant

nt
Price

64

34

Performa

82

18

80

20

nce
Driving

62

comfort
Style and

64

28

56

38

Safety

92

Quality

76

20

34

48

16

16

58

24

sale

28

34

30

After sale

34

50

12

appearanc
e
Interior
features

and
durability
Size

of

car
Reliabilit
y

of

dealer
Re
value

service

(No. of respondents rating their importance to the relative attribute)

63

0
after sales service

12
34

resale value

6
30
34
28

0
2

reliability of dealer

50

24

58

16
0
2

size of car

Not IMP

16

34
0
0

quality & durability

0
0
2

safety

0
0

interior features

0
0

Style and appearance

20

Least IMP

76

92
Neutral

38

56

Fairly IMP

28

0
0
0

Driving Comfort

48

64

20

80
Important

0
0
0

Performance

18

0
0
2

Price

82

34

20

40

64
60

80

100

64

Interpretation
(1) Price factor in this Mid-Segment car segment is as important as the Luxury always
comes at a price; it has extremely high standards which increase the cost. Thus it is of
64% nearly neutral importance to the respondents.
(2) Performance is a strong factor for majority of respondents.
(3) Driving comfort, Style and appearance, Interior Luxury features, Safety features,
Quality and durability are important factors for the customers they cannot compromise
on these aspects.
(4) Size of the car, Reliability of dealer does not hold much importance but is rated as
fairly important by the customers.
(5) Again Resale value is of nearly fairly importance for these types of customers as they
are of middle class and upper class segment so they consider value after the usage, they
are mostly motivated by the value delivered during the usage.
(6) After sales services are Fairly important, it helps in retaining the customers with
higher satisfaction level. And is strongly demanded by the customer. It is a Must.
Note:

This is the overall analysis, many of the respondents have conflicting views on
these attributes but overall we should consider the above analysis.

Various studies in past suggest that Style, Appearance, status, value, interior is
the subjective viewpoint of the customers.

65

9. What were Your option2/Option3?

Brand

No.Of Respondent

Maruti Suzuki(M)

10

Nissan(N)

Ford(F)

Honda(H)

Chevrolet(C)

Others

12

M&N

M&F

M&H

17

M&C

N&F

N&H

N&C

F&H

F&C

H&C

11

Others
Include:
Toyota,
Fiat,
Hyundai,
Volkswagen

(This study is based on 100 samples only, thus actual scenario of the market cannot
be estimated by this study)
Ps:Analysis On next Page

66

Considered Option 2/3

H&C, 11

Maruti Suzuki, 10
Nissan, 2
Ford, 1
honda, 4

F&C, 4
F&H, 6

Chevrolet, 3

N&C, 3
N&H, 4

Others, 12

N&F, 4
M&C, 5

M&N, 5
M&F, 9
M&H, 17

Maruti Suzuki
Nissan
Ford
honda
Chevrolet
Others
M&N
M&F
M&H
M&C
N&F
N&H
N&C
F&H
F&C
H&C

Interpretation
(1) Maruti and Honda are the leading option for the 17% of the respondents; by 12%
other is the second ranking option in the market, Honda and Chevrolet is on the third
place by 11% of consideration from the total respondent.
(2) Other than above brands:10% of Maruti Suzuki and 4% of Honda as an option are
making their strong image in the minds of the customers.
(3) It has been observed that respondents are considering multiple brands as their option
2 / 3, thus we have tried to express these kinds of respondents in the above chart by
making their combinations.

67

(4) From over all study of the considered options by the respondents itis concluded that
Maruti Suzuki, Honda and Chevrolet are the upcoming options.
(5) Ford and Nissan are having considerably low market in upcoming future.

10. Are you planning to new a new Car?

Response

No.of Respondent

Yes

28

No

72

Planning to Buy New Car?

Yes, 28

Yes
No, 72

No

Interpretation
(1) It can be analyzed that the respondents who are interested in buying a new car is 28%
and planning for the same in near future.
68

(2) While 72% of the respondents are not sure about their planning to buy the new car.

11.When Are You Planning To Buy a New Car?

Time Period

No.Of Respondent

<=6 Months

6-12 Months

14

1-2 Years

>=2 years

Undecided

65

Duration For Next Purchase

<=6 Months, 6
1-2 Years, 6
6-12
Months, 14

Undecided, 65

>=2 Years, 9

<=6 Months

6-12 Months
1-2 Years
>=2 Years
Undecided

Interpretation
(1) Majority of the respondents who are planning to buy a new car are not sure about the
specific time of their new purchase that brings the Undecided percentage to 65%.

69

(2) Thus the respondents who are interested to buy a new one in less than 6 months are
6%, 6-12 Months 14% thus these customers can be the near future prospects to the
company.
(3) Within 1-2 years again 6% of respondents are planning to buy and more than 2 years
9% of them are planning to buy their next Mid-Segment car.

12. For whom are you planning to buy a new car?

Whom?

No.Of Respondent

Self

33

Parents

Wife

Children

Siblings

Family

62

Business

70

New Car For Whom?

Business, 2

Self

Self, 33

Parents
Wife
Family, 62

Children
Siblings
Parents, 4
Wife, 0

Family
Business

Children, 0

Siblings, 0

Interpretation
(1) 33% of the respondents are planning to buy the car for self, 2% for Business and 62%
for Family.
(2) Compared to above, the percentage of Sibling and wife is very low or we can even
say nil to 0% and 0%, the parents ratio is considerably negligible at 4% and the children
ratio was at 0%
(3) Thus, the observation suggests that most of the people are planning the new car for
their own Family and Self.

71

13. Which car will you plan to buy next?

Brand

No.of
Respondent

Maruti Suzuki

37

Nissan

Ford

Honda

33

Chevrolet

Other

16

Others
Include:
Hyundai,
Volkswagen,
Tata etc.

Next Purchase Of Customer

Other, 16
Chevrolet, 4

Maruti Suzuki
Maruti Suzuki, 37

Nissan
Ford
Honda

Honda, 33

Chevrolet
Nissan, 9

Other

Ford, 2

Interpretation
(1) The buying behavior suggest that the respondents are converting their considered
option 2 Maruti Suzuki (37%) as there new car.
(2) Followed by the Honda with 33% share, Nissan and Chevrolet are also in the normal
demand with 9% and 4% stake in the new car market.
72

(3) As observed earlier Maruti Suzuki percentage was highest in current cars by the
respondent thus they are considering the same brand for their new car.
(4) Hyundai and other brands like Mitsubishi and Toyota are preferred at 16% number
of end users.

14. Does Using the car, helps you express your personality?
Response

No.of Respondent

Yes

77

No

23

Does Using Cars Express personality

No, 23

Yes
Yes, 77

No

73

Interpretaion
(1) As we know that in todays world car has become an necessity and a status symbol
(2) There were total 77% of respondent who replied yes for the personality question.
(3) While there were 23% of respondent who were thinking that there car does not or in
future will not express their personality

15 Does the brand you use enhances your importance and social status?
Response

No.of Respondent

Yes

69

No

31

Brand Enhances your importance and social

status

No, 31

Yes
Yes, 69

No

74

Interpretation
(1) In todays growing world owning a car has become a social status and especially a
way of showing your importance through a brand.
(2) There were 69% of respondent who replied YES and said that there brand enhanced
their importance and social status.
(3) There were 31% of respondent who replied NO about the importance and status.
Some of them said it is just an mode of communication

16. Does your family play an important role in car purchase?

Response

No.of Respondent

Yes

79

No

21

75

Family Role in Purchase

No, 21

Yes
No
Yes, 79

Interpretation
(1) 79% of people respondend that there family play an important role in the purchase of
a new car.
(2) While other 21% of people responded that their family was not involved in the
purchase, the reason might be single, settled out of town, lack of knowledge etc..

17 Do you think a well-known branded car is always better in quality and

reliability?
Response

No.of Respondent

Yes

68

No

32

76

Branded Car is Always Better in

quality&reliability

No, 32

Yes
Yes, 68

No

Interpretation
(1) Generally people have a perception about different companies in automobile sector
(2) Here 68% of people responded that a branded car is always better in quality and
reliability.
(3) While 32% of respondent denied with this question.

18 Do you think the price of a compact car is good indicator of its quality?
Response

No.of Respondent

Yes

45

No

55

77

Price of compact car indicates good quality

Yes, 45
No, 55

Yes
No

Interpretation
Note: compact car includes hatchbacks and compact sedan generally
(1) Here 55% of respondent replied NO because they thought that a compact car in low
price would have compromised with the quality.
(2) But 45% of Respondent replied YES to the question, because they think companies
now a days are concentrating on safety more in such segments.
(This study is based on 100 samples only, thus actual scenario of the market cannot be
estimated by this study)

78

CHAPTER-6

FINDINGS
6.1 Buying behaviorFindings

(1) Survey is regarding the Mid-segment cars, thus all the respondents approached
possessed Mid-segment cars of various segments.
(2) Demographic Background:
I. All the respondents were Male and Female.
II. It is observed that Graduates individuals are having majority amongst the respondents.
Highly educated post graduates owe less Mid-segment cars compared to graduates. This
helps us to analyze the class of the customers.
III. The age group in which majority fall is 19-25 years, because it is the age group with
settled jobs and have the necessary resources for this purpose; Prestige standards and ego
satisfaction is much important.
IV. This kind of category would always be flourished with normal wealth and falls in the
upper class segment of society, thus according to this study people who have income
more than Rs 5 lakhs/ annum are considered wealthy. Majority falls in this income slot.
(3) Current Scenario:
I. According to the survey current cars with respondents (rank wise)
1. Maruti Suzuki
2. Honda
3. Other and considerable fewer shares but growing is of Chevrolet & Ford.

79

II. Most people here prefer hatchback and sedan car segment because of various
attributes related to it like Length of the car, sporty as well as decent looking car with
features studded.
III. self usage are preferred the most of the respondents.

(4) Factors that influences the buying behavior:

I. Most of the customers are brand savvy they are concerned only with the brand name,
as all of these brands are on equal footing have the same feature offerings with different
uniqueness, thus convenient brand is selected.
II. Print advertisement and television media is the most effective medium for
advertisement in Mid-Segment car segment.
III. Price factor, Performance, Driving comfort, Style and appearance, Interior Luxury
features, Safety features, Quality and durability are strongly important for the customers
they cannot scarify on these aspects.
IV. Size of the car, after sales services is fairly important.
V. Size of the car, Reliability of dealer is of neutral importance.
VI. Show room Aspects the respondents consider while buying;
1. Strongly agree
i. Satisfactory Test Drive,
ii. Value for Money,
iii. Deals discount offered.
2. Agree
i. Thorough Product Knowledge,
ii. Effective customer handling,
iii. State-of-the-art Showroom,
80

iv. Effective Sales follow up.

(5) Options for current buying:
I. No. 1 option selected by the respondents while buying their current car is Maruti
Suzuki and along with this the second and third options of them were Honda and Others.
II. Thus helps the company to grab the opportunity in future to convert these customers
into companys database.
(6) Future planning of the new car:
I. Majority of the respondents are not planning their new purchase.
II. But there purchase duration is undecided, very less percentage of the customers is
planning to buy in the near future within two years, thus these customers can be targeted
to pitch our brand.
III. Most of them who are planning will buy for family, very few are motivated to buy for
their self, friends, business.
IV. The next planned car for majority of respondents is Maruti Suzuki, this shows that
the option considered for current buying will be their next preference.
V. Besides this Honda is one of the most preferred brand, followed by the all new nissan
and Other.

81

CHAPTER-7

RECOMMENDATIONS
Recommendations

The survey was carried out with the objective to understand usage pattern and buying
behavior of Mid-segment car users. On the basis of research findings, following are the
recommendations for Central Nissan ahmedabad:

Better Financial schemes to attract customers as it is the main reason which is

leading to loss of sales and not able to attract desired level of customers

.
Not aggressive but effective follow up has to be done by sales persons because it
makes customer feel that the company is concerned about them and which leads
to customer satisfaction which is indirectly increase in business.

Sales pitch should emphasis on the key features that influences buying decision of
a potential customer.

A new idea or event should be arranged to remove the Typical perception of

Nissan Company.

82

CHAPTER-8

CONCLUSION
CONCLUSION

Since Mid-segment Indian Automobile market is continuously in the prowl of surging as

a major car manufacturer, people are purchasing car as there is increase of income of
common people as well as change in tastes and preferences of consumers. It is important
for Mid-segment car manufacturers and dealers to understand the different factors
affecting the extent in car purchasing behaviour. This research concludes some important
insights about the Sales of Central Nissan Ahmedabad which is the integral part of my
research project, CUSTOMERS BUYING BEHAVIOR FOR MID-SEGMENT CAR.
The competitors to which the lost sales have gone are MARUTI SUZUKI with first best
preference followed by HONDA and various other brands but these two are major
preferences of the lost sales prospects. The reasons for the lost sales are: - Better
financial schemes, heavy cash discount, low rate of interest with longer tenure period,
instant response to test drive inquiry, effective follow up to inquiries, after sales offers.
These are some of the subjective reasons behind it, there can be various product related
and objective reasons too which is justified in the further research. Nssan is the 2nd best
option considered by the lost prospects, thus there exist opportunities for Nissan to
increase its share in the market.

The factors that influence the customers buying decision are divided in two parts 1st
Show room aspects and 2nd Product features and after sales offerings. Show room
aspects consists of Information provided by salesperson, Effective customer Handling,
Satisfactory Test Drive, Value for Money, State-of-the-art Showroom, Effective sales
follow up and Deals offered (Discount/Finance) are affecting the car purchasing
behaviour. People are more conscious about on the spot information provided about
83

various cars who serves according to the needs and wants of the customer. Product
features Price and after sales services, availability of service station showing customers
accessibility to the service provided (After sales), safety; technology, type of technology
used wider reach of the service stations (After sales) also affect the most on car
purchasing

decision.

Performance,

Driving

comfort,

Style

&

Appearance,

Interior/Luxury Features, Quality and durability, Size of the car, Re-sale value are also
some features that create a strong impact on the buying decision. The awareness factors
like various promotional activities, various information provided by car dealers, brand
image advertisement and print media promotions, features of the car in all are
contributing in making car purchasing behaviour of customers.
The current study also tells us about the planning of the surveyed customers for their new
car. The respondents are planning their new purchase but the duration of the purchase is
uncertain, the next planned car for majority of respondents is Maruti Suzuki. Besides this
Honda is one of the most preferred brand, followed by the all new nissan and other
current market leader.
Thus, the current preference, factors affecting the buying behavior, and further planning
of new car is evaluated in this research.

84

CHAPTER-9

LIMITATIONS OF THE STUDY

Limitations

Extrapolating research results to population may not be appropriate as the sample

size that were taken may not represent the population.

Assumption of getting right information is not appropriate as responses may

reflect personal judgment and bias of respondents.

The selected sample size may not give proper insights as it may not include
people from all the strata of society.

The surveys were conducted over a period of 6 weeks so it suffers from time
limitation.

The behavior patterns and dynamics of the society may change over a period of
time, so it cannot be applied for longer period.

The geographical area was large, so only limited areas of Ahmedabad City were
covered and thus it suffers geographical limitation.

85

The outcome of the research analysis may not be applicable for all the areas in the
same manner. The survey was done keeping in mind the cost constraints.

CHAPTER-10

LEARNING FROM SIP

LEARNING FROM SIP

Gained practical knowledge about marketing.

Gained practical knowledge about how the product is pitched in the market.
Gained many insights about Automotive Industry.
Gained practical experience of Nissan Car and Technology.
Understood how to communicate and convince the customers.
Improvement in communication skills.
Practical knowledge about how the organization works actually and about the
organizational Hierarchy.
Got acquainted with the marketing strategy for Promotion and Branding
Understood the different types of market competition existing in the market.
Customers buying behaviour for Mid-segment car segment.
86

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Urban, G. & Hauser, J. (1980), Design and Marketing of New Products, New Jersey:
Prentice-Hall.
36
Markin, R. (1969), The Psychology of Consumer Behaviour. New Jersey: Prentice-Hall.

90

Questionnaire
Buying Patterns For Mid Segment Cars

Please note that the information collected through this survey would be used solely for
academic and learning purpose. We assure you that your personal information would not
be disseminated.

PERSONAL INFORMATION
>Name :
>Gender : Male Female
>Qualification : Secondary Education Higher Secondary Education Graduation
Post Graduation Specify: ...........................
>Profession : Service Business Student Retired
>BusinessDetails :.
>Locality :..
>Age Group : 18 19-25 26-30 30-40 40
>Income Group (P.A.) : Rs.5 lakhs Rs.6-10 lakhs Rs. 11-20 lakhs
Rs. 20L

Contact No. : . E-Mail ID: ..

91

1. Do you own a car?

Yes No

If Yes, Which Car?

Maruti Suzuki Nissan Ford Honda Chevrolet If Other,
(Specify).........................

2.

Which

model

do

you

own?

(PurchaseYear)..........................................................................................

3. Which type of cars do you own?

Sedan Hatchback Sports SUV & MUV If Others, (Please
Specify).

4. Usage of the Car: Self Driver Mix of Both

5. Which of these aspects made you buy this Car?

Brand Offers Financial Schemes Recommendations by others If Others
..

6. Which type advertisements influenced you?

Print Media Events and Promotions Television Ad Online Media
Other......................

7. Please rate the below mentioned parameters you consider while buying the car?
(Please the foll.)
Parameter

Strongl

Agre

Neither

Disagre

Str

agree

ong

Agree

nor

ly

92

disagre

Agr

ee

Thorough
Product
Knowledg
e
Effective
Customer
handling
Satisfactor
y

Test

Drive
Value for
Money
Effective
Sales
follow-up
Attractive
Deals
offered
(Discount
/
Financing)

8. From the following aspects which of them are most and least importance to you while
buying a car:
Parameter

Import

Fairly

Neutr

Least

Not

ant

Import

al

Import

at

ant

all

ant

imp
93

orta
nt
Price
Performan
ce
Driving
Comfort
Style

&

Appearan
ce
Interior
Features
Safety
Quality
and
Durability
Size

Of

the Car
Reliability
Of Dealer
Re-sale
Value
After
Sales
Service

9. What were your Option 2 / Option 3?

. Maruti Suzuki
. Nissan
. Ford
. Honda
94

. Chevrolet
. If others, (Please Specify).

10. Are you planning to buy a new car?

Yes No

11. When are you planning to buy a new car?

6 months 6-12 months 1-2 year 2 years Undecided

12. For whom are you planning to buy a new car?

Self Parents Wife Children Siblings Family Business

13. Which car will you plan to buy next?

Maruti Suzuki Nissan Ford Honda Chevrolet Other (Please Specify):
.......................................
14. Does Using the car, helps you express your personality?
Yes

No

15. Does the brand you use enhances your importance and social status?
Yes No
16. Does your family play an important role in car purchase?
Yes No
17. Do you think a well-known branded car is always better in quality and reliability?
Yes No
18. Do you think the price of a compact car is good indicator of its quality?
Yes No

95

96