Thursday, 9 April 2015

Customer Perception towards Small Segment Cars

The automobile industry today is the most lucrative industry. Due to the increase in disposable
income in both rural and urban sector and easy finance being provided by all the financial
institutes, the passenger car sales have increased at the rate of 38% per annum in January 200910 over the corresponding period in the previous year.
This report attempts to answer some of the questions regarding brand personality of selected cars
in India by conducting the market research. This report is categorized into parts, deals with
introduction to cars related with feature and prices to know the consumers perception regarding
the small segment cars i.e. A and B and C.
The automobile industry today is the most lucrative industry. Due to the increase in disposable
income in both rural and urban sector and easy finance being provided by all the financial
institutes, the passenger car sales have increased at the rate of 25% per annum in January 200910 over the corresponding period in the previous year. Further competition is heating up in the
sector with a host of new players coming in and others like Maruti Suzuki, Tata Motors, Huyandi
etc. all set to venture in Indian markets. One factor that could help the companies in the
marketing of their products is buying Behavior of the consumers. The Buying Behavior of the
customers can be studied by knowing their perceptions about the cars in the market and about the
possible entrants in the market. One such technique is by knowing and creating a personality for
the the cars manufactures.
This perception sketching will help in knowing what a customer (or a potential customer) thinks
about a given brand of car and what are the possible factors guiding a possible purchase.
Similarly, the idea of measuring the customer satisfaction will serve the same purpose of
determining the customer perception. Thus, by measuring the willingness of existing users of a
car to recommend it to others will help the car manufacturers to chalk out the entire Customer
Buying Behavior.
The reports shall attempt to answer some of the questions regarding brand personality of selected
cars in India by conducting a market research. The market research will be helpful for the new
car entrant companies in India to find out the possible gaps between the customer expectations

and the present market offerings. This way these companies will be able to find their share in the
ever-expanding Indian market pie.
The research will track the customer satisfaction in this given layers:
Product related Parameters
Dealer related parameter
It will be mainly a primary research and the information will be gathered from both primary and
secondary research. The study will analyze the applicability of existing research concepts,
theories, and tools for evaluating consumer satisfaction.

S. No.

Particulars

Pg. No.

1.

Executive Summary

2.

1.1 History of Automobile and Indian Automobile

3.
4.

1.2 Overview of Auto segment

1.3Emerging trends of Auto market

12
17

5.
6.

1.4Overview of small segment cars

1.5Consumer Buying Behavior and Perception

7.

1.6 Companys profile

22
24
28

8.

2.Literature Review

37

9.

3.Objective and Research Methodology

42

10.

4.Data Interpretation and Cross Tabulation

46

11.

5.Conclusion and Recommendation

67

12.

6.Reference

71

13

Annexure

74

CHAPTER-1
INTRODUCTION
The History of the Automobile
The history of the automobile begins as early as 1769, with the creation of steampowered automobiles capable of human transport In 1806, the first cars powered by internal
combustion engines running on fuel gas appeared, which led to the introduction in 1885 of the
ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered by
electricity briefly appeared at the turn of the 20th century but largely disappeared from
commonality until the turn of the 21st century, when interest in low- and zeroemissions transportation was reignited. As such, the early history of the automobile can be
divided into a number of eras based on the prevalent method of automotive propulsion during
that time. Later periods were defined by trends in exterior styling and size and utility
preferences.

Indian Automobile History

The

origin

of

automobile is not certain. In this section of

automobile history,

we will only discuss about the phases of

automobile in the

development and modernization process

since the first car

was shipped to India. We will start

automotive history

from this point of time.

The

industry has changed the way people live and

automobile

work. The earliest of modern cars was manufactured in the year 1895. Shortly the first
appearance of the car followed in India. As the century truned, three cars were imported in
Mumbai (India). Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when
the first wheel was used for transportation in India. In the
beginning of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new
technologies, including the creation of a wheel that turned under
its own power. By 1600s small steam-powered engine models
was developed, but it took another century before a full-sized engine-powered vehicle was
created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry
Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that
featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style
rather than speed.During the 1920s, the cars exhibited design refinements such as balloon tires,

pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8cylinder engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more
to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their
predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and
tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was
built on compact and stylized lines, and was capable of 230 kmh (144 mph). This was the Indian
automobile history, and today modern cars are generally light, aerodynamically shaped, and
compact.

OVERVIEW OF THE AUTO SEGMENT

The automobile industry in India is the ninth largest in the world with an annual production of
over 2.3 million units in 2008.In 2009; India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand.
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 attracted significant
India-specific investment by multinational automobile manufacturers In February 2009, monthly
sales of passenger cars in India exceeded 100,000 units. Ebryonic automotive industry emerged
in India in the 1940s. 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 Maruti Udyog. 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 liberalisation 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.
The reason behind the immense growth of the India Car Industry can be attributed to the
availability of car loans, affordable rates of interest, smooth repayment facilities and the
deductions offered to the customers by the retailers.
The constant changes in the existing car models with regard to design, innovation, technology,
and colors, have led to a fiercely competitive market. Now that technology and innovation are
not alien concepts for Indian car makers, Indian cars are becoming increasingly sleek, stylish,
and luxurious.
The Indian automobile industry has attained a substantial growth and has become one of the
largest manufacturing sectors in India over the past two decades. In the export market the
industry has earned a strong reputation and Indian vehicles as well as components are in great
demand the world over.
India has entered the big league of Asian car market. In the past few years, the production and
management systems in the Indian automobile industry have been revolutionized. One of the
dramatic changes in the industry has been the opening and growing up of several emerging
markets. India is one of the most important emerging car economies in the world today. In 1991,
the Government of India initiated an ambitious structural adjustment programme aimed at
economic liberalization based on Delicensing, Decontrol, Deregulation and Devaluation.
This new automobile policy attracted a large number of automobile companies to India. The
foreign investors perception has changed and, therefore, a large number of multinational auto
companies, especially from Japan, USA, and Europe, are entering the Indian auto market and

working in collaboration with the Indian firms. Also, the availability of automobile finance has
further paved the way for a long-term growth of the industry.
Many joint venture agreements have been made in the Indian automobile and auto-components
sector with leading global manufacturers. The Government of India is keen on providing a
suitable economic and business environment conducive to the success of the established and
prospective foreign partnership ventures.
The Indian automobile industry has a mix of large domestic private players such as Tata,
Mahindra, Ashok Leyland, Bajaj, Hero Honda and major international players including GM,
Ford, DaimlerChrysler, Toyota, Suzuki, Honda, Hyundai and Volvo. Today, the Indian
automobile industry is the worlds largest motorcycle manufacturer, the second-largest twowheeler and tractor manufacturer, the fifth-largest commercial vehicle manufacturer and the
fourth-largest car maker in Asia.
Indians have emerged as avid car enthusiasts sporting their prized possessions as status symbols
and speed machines. Foreign car companies have discovered the Indian consumer as well as the
R & D potential in the Indian technical fraternity and are setting up manufacturing plants right
and left across the country at lower costs. The Indian automobile industry is currently
experiencing an unprecedented boom in demand for all types of vehicles. This boom has been
triggered primarily by two factors:
(1) Increase in disposable incomes and standards of living of middle class Indian families
estimated to be as many as four million in number; and
(2) The Indian government's liberalization measures such as relaxation of the foreign exchange
and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled
financing-driven purchases.
Industry observers predict that passenger vehicle sales will triple in five years to about one
million, and as the market grows and customer's purchasing abilities rise, there will be greater
demand for higher-end models which currently constitute only a tiny fraction of the market.
These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe
to enter the Indian market mainly through joint ventures with Indian firms.

India is increasingly becoming a global automotive hub both for the vehicles and component
industry. India is fast integrating itself into the world economy and open to international
automotive companies, who are increasingly investing in India.
The Indian automotive and component industry is looking to increase the quality of production
from existing levels, to develop new products and to increase exports. In the long run India is
well set to become a key market for automotive and component manufacturers in terms of local
demand and as a base for exports.
Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the
automobile industry in India are attracting big names with the big purse and they are investing
vigorously in infrastructure, design and development, and marketing. Automobile industry in
India is today poised for the big leap.

India is the 2nd largest two wheeler manufacturer in the world

Second largest tractor manufacturer in the world

5th largest commercial manufacturer in the world

3rd largest car market in Asia, surpassing China in the process

Automobile industry Contributes 17% of the total indirect taxes collected by the exchequer & is
a driver of product and process technologies, and has become a excellent manufacturing base for
global players, because of its:

high machine tool capabilities

Extremely capable component industry

Most of the raw material locally produced

Low cost manufacturing base

Highly skilled manpower

Special capability in supplying large volumes

Indian automobile manufacturer

Hindustan Motors: Ambassdor
Maruti Suzuki: 800, Alto, Wagon R, Estilo, A Star, Ritz, Swift, Omni, Versa, Gypsy
Premier: Sigma, Roadster, RiO.

 San Motors: Storm

Tata Motors: Nano, Indica,

Multi-national automobile manufacturers

Locally manufactured Automobiles of Multi-national Companies:

Chevrolet : Spark, Beat, Aveo U-VA, Aveo

Fiat : Palio, Grande Punto

Ford : Ikon, Figo

Hond : Jazz

Hyundai : Santro, i10, Getz, i20

Emerging Trend of India Auto market

India auto market is a promising industrial sector that is growing immensely every passing year.
Passenger cars are referred to, through use of word "automobile." Whooping growth experienced
by Indian auto market in last financial year itself that is financial year end in February, 2010 was
very close to a 24 percent over previous fiscal. This statistical fact is a glittering example of
potential of growing auto industry in India.
As per survey conducted by Society of Indian Auto Manufacturers, total number
of automobiles manufactured by auto industry in India, throughout financial year 2008-09, was
very close to 15.5 lakh (1.5 million) margin. Huge of number of automobiles manufactured by
auto industry in India was an enormous growth upon number of autos manufactured during
previous fiscal, that ended in 2009.

Total number of cars that were exported from India were very close to 2.0 lakh (2.0 hundred
thousand) margin, an encouraging sign for auto industry in India. Export of cars manufactured in
India comprised nearly 13 percent of total number of cars manufactured domestically by auto
industry in India.
India auto market looks set to prosper, largely due to growing market for automobiles that is
developing in India. In financial year that ended in February, 2007, Indian auto markets were
fastest growing in world, with registered growth rate touching nearly 20 percent.
Auto industry in India mainly comprises of small car section, which enjoys nearly a 2/3rd market
share of entire market for autos in India. In this respect, Indian markets are largest in world for
small cars, behind Japan.
Indian passenger car market which ranks amongst largest in world, is poised to become even
more larger and enter top five passenger car markets in world in next decade

Industry background
Driving the most luxurious car has been made possible by the stiff competition in the automobile
industry in India, with overseas players gathering the same momentum as the domestic
participants. Every other day, we have been hearing about some new launches, some low cost
cars all customized in a manner such that the common man is not left behind. In 2009, the
automobile industry is expected to see a growth rate of around 9%, with the disclaimer that the
auto industry in India has been hit badly by the ongoing global financial crisis.
The automobile industry in India happens to be the ninth largest in the world. Following Japan,
South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles.
Several Indian automobile manufacturers have spread their operations globally as well, asking
for more investments in the Indian automobile sector by the MNCs.

Potential of the Automobile industry

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. Similar plans are for General
Motors.
Turnover of Automobile Manufacturers(In USD Million)

Year

In USD Million

2002-03

14,880

2003-04

16,544

2004-05

20,896

2005-06

27,011

2006-07

34,285

2007-2008

40,345

2008-2009

45,867
Source: SIAM India

The figures show that the automobile sector in India has been growing robustly. The market
shares of the different types of vehicles will clearly depict the demand pattern in this sector.
Domestic Market Share for 2008-09

Passenger Vehicles

15.96%

Commercial Vehicles

3.95%

Three Wheelers

3.6%

Two Wheelers

76.49%
Source: SIAM India

Industry Size
The domestic Indian passenger car market (including utility vehicles) totaled 900,000 units (with
a CAGR of 10 per cent over the past 4 years) while the exports were 130,000 million units (with
a registered CAGR of 68 per cent over the past 4 years) during financial year 2009.
The Indian two-wheeler Industry is one of the largest in the world, and is expected to maintain
robust growth in the future

 At the back of this phenomenal automotive growth is the success of the Indian auto component
industry. Presently a US$ 6.7 billion industry, it is expected to almost treble in less than eight
years time to US$ 17 billion by 2012.
India offers a distinct technological and cost-competitive advantage, which global Original
Equipment Manufacturers (OEMs) and automotive suppliers are leveraging for both
manufacturing and research facilities. The passenger car market is projected to grow at a CAGR
of 12.3 per cent over the next few years. Growth in the mid-size and premium car segments is
expected to outpace the overall market growth.

MARKET SHARE

Domestic Market Share for 2009-10

Passenger Vehicles

15.86

Commercial Vehicles

4.32

Three Wheelers

3.58

Two Wheelers

76.23
Source: Market Research by SIAM India

Source: Market Research by SIAM India

Domestic and Foreign Vehicle Manufacturers:

Automobile Manufacturers Market Share
LCV

0.083 Mn

Passenger Cars
0.604 Mn

Source: Market Research by SIAM India

Overview of Small Segment Cars

The small car market in India is increasing by leaps and bounds. The indigenous market for small
cars now occupies a substantial share of around 70% of the annual car production in India of
about one million. The main players in the car market like Tata Motors and Maruti Udyog are
fiercely competitive and more or less all the automobile companies in India that have forayed
into the production of small cars are trying to out-do each other in terms of design, innovation,
pricing, and technology, in order to gain control of the small car market in India.
The biggest players in the Indian small car market are engaging in a healthy competition, which
has intensified since the Indian government decided to boost the small car sector. In this regard, a
reduction in the excise duties has been thought of. Even the engine capacities are expected to be
raised to 1500cc. The new small cars in India cars may even be fueled by gasoline and diesel in
the future. With all these facilities, it has been estimated that the indigenous car market is going
to move beyond the 3.5 million mark very soon.
Suzuki, which is now heading the Indian small car market has plans to invest an additional US$
650 million for research and development work in its Manesar Plant. This Plant will also be used
for manufacturing diesel cars. Suzuki has decided to enter into a joint-venture with Nissan to
launch a new mini car model in India.
Even Hyundai Motors is on a similar investment spree for research work with a venture of US$
700 million in India. The two cars from the Hyundai stable - Santro and Getz are already in the
market and have been doing exceptionally well in the past few years. It is expected that more and
more foreign companies are likely to join the healthy race in the Indian small car market.
One of the biggest players in China's car market, Volkswagen, has decided to invest in the Indian
small car market. It is supposed to invest a total amount of US$ 540 million and manufacture
nearly 100,000 mini cars on an annual basis.

Factors driving the demand for small cars in India:

The increase in the demand for small cars can be attributed to the aspirational lifestyle of people
which makes them strive for a car early on in life. The overall age for owning a car has also
decreased in recent years. Further, with the growing affluence of the rural sector, owning a car, at
least a small car, is a foregone conclusion in modern India. However, since small cars are more
affordable and utilitarian, the demand for them has shot through the roof. This rising demand for
small cars is attracting companies like General Motors which has increased its yearly production
in India to 140,000 vehicles. The Maruti 800 which is the most preferred car among the Indian
middle classes can now be bought at a lower cost. Tata Motors has been launch a mini-car in
2008, which will cost as less as US$ 2,200. Tata Motors is also going through a process of
decision-making, to launch a variety of mini-cars in association with Fiat. Honda has also
decided to increase its manufacturing capacity in India to 100,000 very soon. Therefore, the
leaders in the market for small cars in India can be seen to engage in a price war to make more
cars available to the majority of Indian citizens.
The small car market in India is witnessing the maximum activity and is all set for more exciting
times ahead, with more players from India and abroad joining the race.

Consumer Buying Behavior and Perception

The Indian consumers are noted for the high degree of value orientation. Such orientation to
value has labeled Indians as one of the most discerning consumers in the world. Even, luxury
brands have to design a unique pricing strategy in order to get a foothold in the Indian market.
Indian consumers have a high degree of family orientation. This orientation in fact, extends to
the extended family and friends as well. Brands with identities that support family values tend to
be popular and accepted easily in the Indian market.

Indian consumers are also associated with values of nurturing, care and affection. These values
are far more dominant that values of ambition and achievement. Product which communicate
feelings and emotions gel with the Indian consumers.
Customer satisfaction index: some of the most advance thinking in the business world recognizes
that customer relationships are best treated as assets, and that methodical analysis of these
relationships can provide a road map for improving them.
Clause 8.2.1 in ISO9000: 2000 states: As one of the measurements of the performance of the
quality management system, the organizations shall monitor information relating to customer
perception as to whether the organization has met customer requirements. The method for
obtaining and using this information shall be determined
The requirement has been there in the QS9000 standard clause 4.1.6 which says:
Trends in customer satisfaction and key indicators of customer dissatisfaction shall be
documented and supported by objective information. These trends shall be compared to those of
competitors, or appropriate benchmarks, and reviewed by senior management.
There is obviously a strong link between customer satisfaction and customer retention.
Customers perception of service and quality of product will determine the success of the product
or service in the market.
With better understanding of customers perceptions, companies can determine the actions
required to meet the customers needs. They can identify their own strengths and weaknesses,
where they stand in comparison to their competitors, chart out the path future progress and
improvement. Customer satisfaction measurement helps to promote an increased focus on
customer outcomes and stimulate improvements in the work practices and processes used within
the company.
Customer expectations are the customer-defined attributes of your product or service. We cannot
create satisfaction just by meeting customers requirements fully because these have to be met in
any case. However falling short is certain to create dissatisfaction.
Major attributes of customer satisfaction can be summarized as:
Product quality
Product packaging
Keeping delivery commitments
Price
Responsiveness and ability to resolve complaints and reject reports
Overall communication, accessibility and attitudes

The buying process involves the following steps:

The fact that word of mouth sales are a big deal in this industry has also helped. Industry
players and market surveys reveal that 20-30 percent of sales are through word of mouth.

For the purpose of the project has undergone through:

 Surveying the relevant consumer base through exhaustive questionnaire.

Understand the elements underplaying in each segment
Deducing A analytical overview through different statistical method

COMPANYS PROFILE
Maruti Udyog Limited
Maruti Udyog Limited is the premier car company in India. Maruti Udyog Limited (MUL) was
established in Feb 1981. The company entered into collaboration with Suzuki Motor Corporation
of Japan to manufacture cars. Maruti is the highest volume car manufacturer in Asia, outside
Japan and Korea. Maruti Udyog Limited, the largest Car selling company in India, has many
unique Service advantages for the customers. It has bagged the First Position in JD Power
Customer Satisfaction Index for the consecutive two years. The company has also ranked highest
in the India Sales Satisfaction Study.

Estilo
Maruti launched all new Estilo. If you are wondering why I dropped Zen from this car's name
then let me explain. Estilo has got Wagon R's engine and chassis and Suzuki MR Wagon's shape.

Whatever remains is taken from Zen, well does anything remains actually? Yes, Name! Name is
taken from Zen, 'Zen Estilo'. In essence its stylish Wagon R, Japan's MR Wagon, combination of
the two or anything but Zen. It seems Maruti wants to exploit Zen brand-image hence named this
car after Zen.
Zen Estilo has the same engine (1061cc, 64.8ps, 84Nm, 4-cylinder, 16-valve, MPFI F10D Petrol)
under the hood that is found in Maruti Wagon R. Absolutely nothing has been changed except for
the fact that this engine is much refined and is slightly better at responsiveness and fuel
economy. This simply translate into 'Zen Estilo is a bit faster and more fuel economic than
Wagon R'. Due to highly good drivability, driving in city would be more fun with Zen Estilo.
Electronic Power Steering (not available in LX version) really helps in crowded traffic. Owning
and maintaining Zen Estilo won't be a problem, engine is proven reliable and virtually
maintenance-proof.

Wagon R Duo
At first glance the Maruti WagonR Duo looks quite normal. Well, that is if you think the
WagonR's boxy looks are normal to start to start with. Frankly, for a car that has to get around a
city, I really don't care, because the Duo is all about LPG, and the fact that it is first factory fitted
LPG car in India. Factory-fitted means one major plus, your warranties don't get voided because
of the gas fitment.
There is no denying the cars cost advantage, this is the cheapest Maruti vehicle to run, and that in
itself is a massive statement. The redesign of the car hasn't just meant a fresh exterior look; it has
also meant new interior - rotary controls on the panel and a very neat looking display with an all
new speedo.
The problem is that despite the not insignificant cost savings, you save a rupee a kilometer on
LPG over Petrol, which even makes the extra Rs 24000 you have to pay for the car seem worth
it, the Duo just wheezes at times. And this is despite two important facts, first LPG has more
energy than CNG (that other gas) and because this is a company designed car, Maruti engineers
have really played around with the engines tuning.

Swift

Competing with the other cars of Maruti, Maruti Swift is gradually making its position in the
world of mid-sized family car. Maruti Swift has come up with the special technical specifications
of 16 valve 4-cylinder, 1300 cc engine generating power. Maruti swift is equipped with various
safety features and well advanced equipments. 3 assist grips, 3 spoke urethane steering wheel,
antenna, cabin light (3 position), console box (lower), cup holders (front 2, rear1), front door trim
pockets, green tinted glass window, halogen headlamps, headlamp leveling device, heater and
manual Air conditioning, OVRM (internally adjusted), rear fog lamps, wind screen wiper 2 speed
plus 1 speed intermittent, tailgate opener key type, trip meter (digital display), sun visors (both
sides), brake assist , child lock (rear door), high mounted stop lamp, power steering, rear seat
belts etc. are the features available in this model. Apart from the features found in other model,
striking features of this model are black colored A & B pillars, 12v accessory socket in center
console, day and night rear view mirror, door ajar warming lamp, driver's seatbelt warning lamp,
tachometer, driver's seat belt warning lamp, vanity mirrors (sun visor co-driver side), rear seat
head restraints, fabric accented door trims, central door locking (4 door), front and rear view.

Hyundai Motor
Hyundai Motor India Limited (HMIL) was established in 1996 and is a wholly owned subsidiary
of South Korean multinational, Hyundai Motor Company. HMIL is the fastest growing and the
second largest car manufacturer in India and presently selling 30 variants of passenger cars in six
segments. The Company has set up more than 70 dealer workshops that are equipped with the
latest technology, machinery, and international quality press, body and paint shops, across the
country, thereby providing a one-stop shop for a Hyundai customer. Hyundai also has a fleet of
78 emergency road service cars that can provide emergency service to all its customers anytime,
anywhere.

Hyundai Santro
In the field of mid size car, Santro Xing is capturing the market very rapidly. Its design, style,
space and other special features has made it one of the highest purchasable cars among any
economy class.
It has five variants:

Santro XK
Santro XK (Non AC)
Santro XL
Santro XO
Santro AT
Along with the other features that are present in Santro XK (Non AC), other features present in
this model are air conditioner, day and night inside rear view mirror, chrome1 radiator grille etc.
Along with the features available in Santro XK, added features in this model are 4 doors CLS,
passenger side OVRM, tinted glass, map pocket front door driver side, front door full size arm
rest, door trim with fabric insert, hydraulic power steering, power windows (front) etc.

Getz
Hyundai Motors launched small family car Getz at August 2004. Euro III emission norms
fulfilled Car, Getz powered by 1300 cc. engine. Only the petrol version of this car was launched
initially.
There are four variants found in this car:

Hyundai Getz GLS

Hyundai Getz GLX
Hyundai Getz GVS
This model has highly advanced features like AC with 4 speed blower, ash tray w/o illumination,
center console w/ pen and jug holder, 60:40 rear seat split, vanity mirror passenger side, rear
defogger, height adjustable seat belts (front), waist line molding, tilt steering, map pockets, front
and rear power windows, rear seat back inclination(4 position), digital clock, rear wiper and
washer, front for lamp, body color radiator grille, rear bumper reflectors, rear mud guard etc.
Few features to view comfort and safety in mind, this model is being specially equipped with
rear wiper and washer, rear defogger, alloy wheels etc. This model has few important features
like height adjustable front seat belts, body colored radiator grille, rear bumper reflectors etc.
.

Tata Motors Limited

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 crores in
2007-08. Its name comes first in the category of commercial vehicles and the second largest in
the passenger vehicles, mid size car and utility vehicle segments. The company is the world's
fifth largest medium and heavy commercial vehicle manufacturer. Over 3.5 million Tata vehicles
is moving on Indian roads, since 1954. Its manufacturing plant is located at Jamshedpur, Pune
and Lucknow.

Tata Indica V2
Having attributes of three popular cars, Tata Indica is ruling the market. Making of Tata Indica
with the concept of main distinguishing features of three popular cars i.e., with the overall
structure of Maruti Zen, interior space like ambassador and cost nearly like Maruti 800 was a
challenging venture of Tata Motors. Its fully foldable rear seat has made this car more
accommodating for extra luggage. For safe and secure driving and to give proper comfort, sideimpact beams, rigid monochrome frame and child safety locks are attached to this car.
Different Tata Indica models are:
Tata Indica V2
o

DLX

DLG

DLS

DLE
Tata Nano
With its market catching looks and few striking features have set a trend for the choosy buyers.
Its power steering, central locking system, four power windows have not only made this comfort
driving car but also give assurance for the safety. To mention more about convenience of driving,
HVAC system provides good cooling effect even in a sultry summer days. Door handles, body
colored bumpers, ORVM and wheel arch flair are few more advantages that the owner of this car
can easily avail. To assure safer driving along with the elegance and appeal of the car, this model
is equipped with body colored bumpers, the wheel arch flairs, internally adjustable OVRM and
central locking system. To avoid any inconvenience in operating the window, front windows are

power windows. To avoid the scorching heat in a summer days, HVAC system of cooling can
soothe anybody inside the car

Chevrolet
Its king like entry happened in India in 1928 with its National Series AB touring. Reliability of
this car was proved by its 171 cubic inches, 24.7hp four cylinder engines. General Motors, parent
company of Chevrolet, was the first in setting up assembly plant in India. First office of
Chevrolet was located at Mumbai and its assembly plant was in Sewree.

Chevrolet Aveo
With the assurance of safety and technologically advanced equipments, Chevrolet Aveo provides
complete statement of reliability and efficiency. Safety features like tailor welded blanks, highstrength steel structure, B-pillar, height adjustable safety belt anchors, rear child safety door
locks, front safety belt pretension etc really confirm the security of the passenger.
It has four variants:

Aveo 1.4 E*

Aveo 1.4

Aveo 1.4 LS

Aveo 1.6 LT
It is well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome radiator grille, wide 185/60
R14 tyres, pullout type door handle, two tone beige interiors, power steering and power window,
central locking, rear defogger with timer, remote trunk lid opener, engine service soon indicator
etc. It is well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome radiator grille, wide 185/60
R14 tyres, pullout type door handle, two tone beige interiors, power steering and power window,
central locking, rear defogger with timer, remote trunk lid opener, engine service soon indicator

etc. Its main mentionable features along with the other features which are associated with the rest
of the models, are 1.6L DOHC 102 PS, 5 speed MT; double DIN MP3 system with 6 speakers;
rear spoiler with CHMSL; chrome coated exterior handles and trunk lid garnish; 14" alloy
wheels; electrically adjustable OVRM; wood finish on IP and door trim; car alarm and key less
entry system.

CHAPTER-2
Literature Review

Literature Review
Verma and Kaur (2006) Davos India in its research on automotive industry (January 2006,
www.ibef.org) identified a key trend in passenger vehicle segment that with rising income levels
and availability of better financing options, customers are increasingly aspiring for higher-end
models. There has been a gradual shift from entry-level models to higher-end models in each

segment. Tata Nano is an entry-level car which has reduced the cost of owning a car significantly
as mentioned above. Many aspirants have actually converted into the consumer class.
An increase in the number of working women and the prevalence of nuclear double-income
families, especially in urban areas, are other trends shaping lifestyles. These changes are driving
an increased need for personal transport, especially in segments like working women, young
executives and teenagers. A large proportion of the Indian population is relatively young - in the
age group of 20-59 years. This is expected to further boost the automotive domestic market as a
younger population has a higher consumption index. To incorporate these trends it is necessary to
include age and gender as few of the factors affecting the sales of Nano.
Different states in India have different development on the basis of infrastructure etc. Further the
income levels and the spending patterns of people vary state by state.
Rao and Verma(2006) Investigated experimentally the influence of price, brand name and store
name on buyers perceptions of product quality. The Meta analysis suggests that for consumer
products, relationships between price and perceived quality and between brand name and
perceived quality are positive and statistically significant. However the positive effect of store
name on perceived quality is small and not statistically significant.
Punj (2007) Evaluated model of consumer information search behavior for new automobiles.
The results supported the hypothesis that there are at least two unique components of prior
knowledge: specific product knowledge and general product class knowledge. The former caused
less external search while later caused more external search. External search was found to be
negatively related to cost of search while positively related to cost savings. Satisfaction was
related to cost savings but not to external search.
JD (2007) emphasized the effect of prior brand perceptions on the search process. When
consumers had brand specific prior distribution s of utility, the existence of relative uncertainty
among brands was necessary for search to be useful. Thus, it was explained why product class
involvement or low search costs may not be sufficient to induce large amounts of search activity
and why there may be an inverted U shaped relationship between search behavior for new
automobiles, using data collected contemporaneously with consumers actual decision process.
Ramakrishnan (2007) Reveals, in his study, Customer Retention: The Key to Business
Performance, that the marketing management has relied on permutations and combinations of
the marketing mix elements (product, price, place and promotion to achieve market dominance

through enhanced market share by acquiring new customers. Aggressive branding and
promotions are the other tactics used by sellers adopting the traditional market approach. But
brands with highest market share are not always the most profitable
Shyamala Mathan Sankar (2008) Consumer Perception of Global vs. Local Brands
This chapter concludes the study by summarising the entire study and also by highlighting the
key findings of the study. The chapter then pursues to the limitations of the study and presents
the recommendations for future research. The aim of the study was to understand consumer
perception of global brands vs. local brands in the Indian car industry. The car industry in India
was undertaken for the study due to the strong growth of the automobile sector in India. The
secondary objectives of the study highlighted the factors that affect consumer preference for
global brands; examined the effects of country of origin on consumer perceptions of global
brands and local brands; and studied the effects of consumer ethnocentrism towards global
brands. The study initially accomplished the secondary objectives in order to accomplish the
primary objective. The literature review provided a critical analysis of the views and insights of
various researchers on the subject area and served as a source of secondary data, which were
collected through marketing journals and other existing reports that were based on the topic.
Furthermore, an overview of the Indian car industry was presented in the study in order to
facilitate the reader to comprehend the study in an enhanced way. Since the aim of the study was
to understand consumers view of global brands vs.local brands, qualitative research was
preferred to quantitative research. In order tocreate a deep understanding of consumers insights
of global car brands against local.
Jakrapan et.al (2008) A Comparative Study between Thai and UK Customers Perceptions
Total worldwide sales of premium luxury and entry luxury saloons and sports cars are of the
order of 1.5 million units a year (Scheele, 1995: 190). The major luxury markets today are the
USA, Germany, UK and Japan. The 21.1 billion UK new car market competes with France and
Italy, to be the second biggest in Europe behind Germany (Harbour, 1997: 7,22). The new
registration of luxury marques cars in 1997 in UK alone was 154,506 units (MAVEL, 1997: 59).
In other markets, especially in South East Asia there are, of course, significant sales of luxury
cars. However, these are limited to total volume either by the overall industry size or by local

market conditions and preferences. Accordingly, the luxury car market overall is currently
undertaking a social change with luxury brands seeming less remote, less different, and less
exclusive with the quality of life improving. As a result, increasing competition between makes
has intensified the importance of brand identity. As product standards continue to rise, the
perceived image of a car make plays a key role in the buying decision. The premium marques
such as BMW, Lexus, and Mercedes-Benz must develop attributes and values that reflect
changing social values which influence buyers emotionally, in order to maintain their positions in
different regions of the global market.
Malhotra(2008) Proposed an alternative approach for measuring consumer preferences by using
limited information. The approach differed from the popular approaches in which once the nonpreferred choice alternatives were identified; no further information on them was obtained. The
author reported an empirical investigation and two Monte Carlo studies comparing the
performances of the proposed approach with that of metric conjoint analysis, which were a
corresponding approach based on full information and an OLS approach that used information
on the preferred alternatives only.
Surinder Pal Singh(2008) Consumer Behavior and Needs Expression
Motivation and personality could be linked - a person with a high degree of confidence may be
assertive. There are a number of theories on personality. Freudian theory assumes that the
behaviour of individuals would be based on unconscious needs and drives. According to this
theory, the human personality consists of three parts - id, ego and super ego. The id is the
component which consists of impulses and primitive instincts which urge the individual to move
towards immediate gratification. A number of product categories which may not have well
defined functional attributes and which are oriented towards sensual pleasure formulate
communication which may appeal to the id part of the personality.
Mohit Sewak ,( 2009) The Changing Consumer Perception
India is poised to become a major Auto hub in the near future. Indian car industry is changing
rapidly, so is the mindset of Indian Consumers. We, at the Great Lakes Institute of Management,
took an initiative to find out that whether the changing ground realities have also changed the

India Auto Consumers mindset vis-a-vis their perception of the abilities of various Indian and
foreign Auto manufacture to deliver the much sought after attributes in a car.
We deliberately, instead of taking individual cars, took BRANDS (as we wanted to analyse the
brand perception mapping), and let the consumer decide which brand will he buy (Note: It is
important to note that in some cases, though a consumer may covet a brand highly e.g. BMW,
but might not intend buying it due to many reasons. So we specifically framed question to
analyse the purchase intention), and the attributes for which he will go for that particular brand.
It was surprising to find the changing perception of the consumer towards TATA, especially after
it being the proud owner of Jaguar and LR on one hand, and the maker of the worlds smallest,
and the most economical economical (& affordable) car Nano on the other.
.

CHAPTER-3
RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

____________________________________
The research objectives for the project undertaken can be defined as follows:
To know customer perception towards the small segment cars.
To judge the satisfaction level of small segment cars owners of different company.
To identify the factors which influence purchase decision of customer?

SCOPE OF THE STUDY

___________________________________________________________________
The Study aims at making contributions to the consumer behavior concerned with small cars. It
will be beneficial for both students and teachers of consumer behavior as it contemplates how the
knowledge of consumer behavior can be applied in research work.
The study will have great implications from marketers point of view as it will help them in
strategy formulation. The knowledge of media factors, considered important by the consumer,
would be helpful to the marketer for adopting more efficient marketing strategies.
Determining the brand preference can be helpful to both manufactures and dealers of
motorcycles enabling them to meet the requirements of the market more effectively and
efficiently.

RESEARCH METHODOLOGY
_______________________________________________________________
In this chapter, the research methodology used in the conduct of the study has been discussed
The aim of the study is to explore the Customer Perception towards Small segment cars. The
study tries to cover all the aspects of small car purchase behavior and consumer preference. It
stars from general introduction highlighting the objectives limitations. It moves through a
systematic methodology to gather arrange and analyze data
RESEARCH DESIGN
A scientifically carried out research project has a definite framework for data collection. This
framework constitutes the research design. The research design for the present study is
descriptive as it matches well with the objectives of the study.
UNIVERSE OF THE STUDY

The universe of the study includes the persons in jalandhar city who owned small cars.
SAMPLE AND SAMPLING DESIGN
Sample will be collected in single stage. In this project, non-probability convenience sample is
used.
Technique of sampling
Simple random sampling technique has been used to select the sample. A simple random sample
is a group of subjects (a sample) chosen from a larger group (a population). Each subject from
the population is chosen randomly and entirely by chance, such that each subject has the same
probability of being chosen at any stage during the sampling process. This process and technique
is known as Simple Random Sampling, and should not be confused with Random Sampling.

Hypothesis:
Alternative hypothesis: There is significant difference between customer perception preferences
towards small cars.
Null hypothesis: There is no significant difference between customer perception preferences
towards small cars.
Sample size
The sample size is 300
DATA COLLECTION
For the purpose of study, both primary and secondary data were required. Primary data was
collected from the Small car owners using a questionnaire which was devised to be brief, simple
and replies. At the same time it was structured to cross check the respondents replies in order to
get relevant information. The questions were dichotomous, multiple choice or open ended type.
It also consisted of likert type statements to know there attitude towards various attributes. 5
points scale was used. For classification of attributes are Highly Satisfied (H.S), Satisfied (S),
Neutral (N), Dissatisfied (D), and Highly Dissatisfied (H.D). Secondary data was collected from
various journals /magazines, websites and dealers regarding the market performance of these
bikes.
QUESTIONNAIRE DESIGNING AND ITS SUBSEQUENT TESTING.

For the purpose of collecting relevant research data, structured and non-disguised type
questionnaire was used. A pilot survey was conducted to determine the suitability of the
questionnaire and modification were incorporated before making the final survey
Techniques used for analyzing the collected data were:
1) Tabulation 2) Percentages

3) Pie Diagrams

4) Bar Graphs 5) Factor analysis

CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

Q1 No of respondents are males and females?

Interpretation :- The majority of the respondents are males. Females are also craze of small cars
because of their convenience

Q2. Education of the respondants?

Graduation

34.00%

Intermediate

26.00%

Matric

20%

Above Graduation

20%

Interpretation :-The majority of the respondents educated and they like to buy because of fuel
efficiency products design as well as value for the money.

3. Monthly income?

We surveyed around 300 people who belonged to various monthly family income groups. The
survey of 4 income groups was done. The four income groups were:
Less than 50000
50000 - 1,00,000
1,00,001 2,00,000
More than 2,00,001

Interpretation:
Above graphs exhibits the income bracket of the sample size, as evident the majority of the
sample is in the income bracket of < 50,000 a month income. Though none of the bracket is
highly skewed, this enables the study to be wide and not dependent on a set income class, which
was a fortunately desirable result of simple random sampling.
4. Do you own a car?

Interpretation:- majority of respondent are the owner of car.

Q5: Which version of car would you like to purchase?

Petrol
44.70%
Diesel
50.50%
Gas
4.70%
Other
0%
Interpretation:
Peoples are clearly looking for Diesel cars in future rather than petrol, few are also looking
for Gas version.

Q6. Why did you bought your present car?

Int

erpretation:
As per the analysis shows, increase in disposable income seems to be the most important reason
for buying a car. This trend is reflected in the growth of the Per capita Disposable income and
consequently the growth of the Indian automobile industry especially in the A, B and C segment
cars. Similarly, the growing family needs like working partners, increasing family size, status,
etc. add to the motives of buying a car.

Q7. Please rate your existing car in terms of understated Interior Design features on a scale of 1
to 5 where

Interpretation:
Interiors play a very important role in deciding the sale of a car. More plush, comfortable and
exotic the interiors are more are the chances of its being popular among the customers. For this
reason manufacturers spend billions of dollars every year on R&D to continuously improve the
interiors of their cars. Seats, leg room, dash board, armrests etc are few of the options which
count for the interiors. As the analysis show Getz scores substantially high w.r.t. its counterparts
on the account of music system installed. Similarly, Indica V2 races far ahead as far as leg room
is concerned. However, Wagon R fares badly on this front. Overall, almost all cars get a mixed
response in this segment as far as the interiors are concerned.
Q8. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5

Interpretation:
As can be noted Maruti Swift and Indica V2 fight neck to neck on almost every front, with Indica
marginally better in features like crossbars under the dashboard and Anti Brake systems. Most of
the cars in this segment fare relatively similar and very close to each other on most of the fronts.

Q9. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of your
preference)

Interpretation:
Indian market is still the hard nut to crack for most of the automobile manufacturers. Though the
Indian car industry is among the fastest growing car markets of the world still the Indian psyche
is too complex for the manufacturers to understand. The most important reason for buying a car
when it comes to A,B and C segment cars seems to be value for money. 32% of the respondents
suggested that affordable prices are the most important factor while purchasing a car. This is the
reason for sticking to a particular segment till the next substantial rise in the personal disposable
income. This reason is followed by Value for money where the customers look for the best
product, best services and best repute all bundled in one with the best deal they can strike. This
explains the reason for the stagnant or sudden growth in sale of A ,B and C segment cars just
before budget and near occasions.
10. Please rate your existing car in terms of following parameters

Interpretation:
The customer choice of the car highly depends upon the performance and maintenance costs of
the car. This is the reason why this class of parameter was chosen for this study. And the results
show that Marutis Wagon R fares the best car in its segment as most fuel efficient car of all.
Similarly, Wagon R fares the best on the terms like mileage but it lags behind Hyundais Santro
on pick up front. So this segment shows a mixed bag of response for the Fuel efficiency and
mileage parameter. Indica V2 performs consistently on all the parameters and Getz fares really
well on pick up whereas it fares badly on fuel consumption. Considered this condition for Getz it
should be seen as a red signal for the manufacturers so that Getz does not end up being like Fiats
Palio famous as a car for drinking petrol.
Delear Satisfaction Parameter:
Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where

Interpretation:
While buying a car, dealers choice play a very important role in deciding the company and
models choice. So dealers act as influencers on the complete buying behavior of the prospective
customers. Among all the listed factors Maruti fares the best among all its counter parts in terms
of dealer density which is quite obvious. Also, the cost of service provided by Maruti dealers is
the lowest followed by Tata Motors. Similarly, for A , B and C segment cars Maruti emerges out
as the clear winner among the four car companies studied all thanks to the vast, extensive and
well managed dealer system.
Q2. How do you rate the brand image of your car?

Interpretation:
As per the analysis, Santro is the car whose brand image is most preferred in the market. This is
because of the reason, that its from the house of Hyundai a South Korean company known for
its overall image. On the contrary Maruti Estilo and Aveo share the same platform on the brand
image. This can be attributed to the fact that both these cars are relatively new on the block and
market takes time to imbibe and give the brand an image. This is established by the fact that
Marutis Wagon R and Swift are exactly the same as far as the image is concerned.

Interpretation:
As the analysis reveals GMs Optra fares as the Best Car as far as customers perception is
concerned about the brand image of the car in the C segment. This is because of the fact that GM
itself commands an amazing brand image among its customers. Accent and Verna both Hyundai
cars share the same position.

Q3. Will you recommend your car to your friends?

Interpretation:
It seems logical that satisfied customers will someday become loyal customers, in other words
there is a positive correlation between customer satisfaction scores and customer buying
behavior. If a customer rates the car very high in satisfying his or her needs, the car manufacturer
should expect more referrals and this is reflected in the analysis that 73% customers say that they
will refer their car to their friends even if they move to other segment or other brand.

Q4. Will you buy your new car in the?

Interpretation:
The analysis shows that most people when moving to upper segment will prefer a different
manufacturer. And the next striking finding is that the customers will prefer both same and
different manufacturers in the A, B segment cars and there is not much difference in the C
segment also. This behavior is complex to understand as this are the customers who have given
whopping response for recommending their car to their friends. Its the reason why brand
perception is so difficult to understand.
Q5: Which factor makes you to buy a small car?
Socio-economic factor
Family influence
Attitude
Brand image

23.50%
29.40%
24.70%
22.30%

Descriptive Statistics
Mean

Std. Deviation

Analysis N

Social

2.5833

1.47076

Family

3.7083

.89819

attitude

3.1667

Brand

3.1667

300
Communalities

1.22619
social
1.56196
family

300
Initial
Extraction
300
1.000
.467
300
1.000
.723

attitude
brand
Initial Eigenvalues

Compon
ent

Total

1.000

.743

1.000

.726Extraction Sums of Squared Loadings

a
Component
Extraction Method:
Principal
% of Variance
Cumulative
% MatrixTotal

Component Analysis.
35.799
35.799

% of Variance

Component
1.432

Cumulative %

1.432

1.227

30.682

1
66.481

1.227

3
social

.893

22.333

88.815

.458

.508

family
4

.447

11.185

100.000

.770

-.360

attitude
Extraction Method: Principal Component Analysis.

-.661

-.553

brand

-.439

.730

Extraction Method: Principal Component Analysis.

a. 2 components extracted.

35.799

35.799

30.6822

66.481

Rotated Component Matrixa

Component
1

social

.032

.683

family

-.801

.286

attitude

.080

-.858

brand

.826

.210

Extraction Method: Principal

Component Analysis.
Rotation Method: Varimax with
Kaiser Normalization.
a. Rotation converged in 3
iterations.

Interpretation : Family influence is the main factor while purchasing the car. 24.70% people
say that their attitude makes them to purchase the small car. Least respond given to Brand image.

Q4.Following attributions according to your preference?

Design
Maintenance
Safety
Mileage
Price
Comfort

4
8
6
7
5
1

Technology
Looks

3
2

Interpretation:
Small is most preferred following by looks, technology, power, safety and price also plays a
major role in purchase decision. Mileage and maintenance is not much important when you
talk about small.
Q5: Technically which features you considers the most before buying?
Table 4
Power
Durability
Efficiency
Safety

25.80%
17.64%
31.76%
24.70%

Q5: Which sales promotional activity/advertisement media influences you the most?
Bill Boards
20%
Newspapers
17.60%
TV / Radio
30.50%
Trade shows
12.90%
Internet
18.82%

Descriptive Statistics
Mean

Std. Deviation

Analysis N

advertisement

2.5600

1.45910

300

newspaper

3.6400

.94242

300

schemes

3.2000

1.21218

300

Radio

3.1600

1.53011

300

Tv

2.0000

.80812

300

Trade

1.8000

.94761

300

Correlation Matrix
advertisement
Correlation

advertisement

newspaper

schemes

radio

tv

trade

1.000

.031

-.272

-.041

.017

-.213

.031

1.000

-.311

-.299

-.080

.009

schemes

-.272

-.311

1.000

-.128

.000

-.071

radio

-.041

-.299

-.128

1.000

-.033

.051

.017

-.080

.000

-.033

1.000

.187

-.213

.009

-.071

.051

.187

1.000

newspaper

tv
trade

Communalities
Initial

Extraction

advertisement

1.000

.797

newspaper

1.000

.804

schemes

1.000

.835

Radio

1.000

.856

Tv

1.000

.867

Trade

1.000

.749

Extraction Method: Principal

Component Analysis.

Component Matrixa
Component
1

advertisement

-.564

-.336

.360

.486

newspaper

-.712

.360

-.324

-.249

schemes

.667

-.235

-.545

.193

Radio

.334

-.180

.771

-.343

Tv

.174

.522

.203

.724

Trade

.244

.790

.180

-.179

Extraction Method: Principal Component Analysis.

a. 4 components extracted.

Rotated Component Matrixa

Component
1

advertisement

.358

.020

-.790

.212

newspaper

.548

-.669

.122

-.202

-.906

-.075

.090

-.013

.181

.896

.096

-.110

-.032

-.028

.043

.929

.235

.073

.745

.365

schemes
Radio
Tv
Trade

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.

Component Transformation Matrix

Compo
nent

-.737

.494

.435

.156

.347

-.283

.719

.532

.518

.803

-.130

.266

-.263

-.177

-.526

.789

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

Interpretation:
People are very much attracted by the TV / Radio advertisement media. Internet comes on
second place and Newspaper is all most equal to Internet in influencing the customers. Trade
shows has least share in influence the customers.

CHAPTER-5
CONCLUSION AND LIMITATIONS &RECCOMENDATIONS
CONCLUSION
Maruti is the most popular brand of small cars in Jalandhar City. It holds the largest share
amongst the small car owners of Jalandhar followed by Hyundai and Ford. being economical and
easy to maintain provides maximum satisfaction to its customers.
Family has a great impact on the purchase of a car and the family influence acts as the strongest
influencing factor for the purchase.
The customers would prefer to buy Maruti and Hyundai after that which provides them
maximum value for their money, skoda and chervolet are the least preferred brands because these
use good technology .
Most of the people say that sometimes they are influenced by advertisements.
TV is the most effective advertisement media for sales promotion. Peoples are not influenced by
brand ambassador associated with particular small brand. Efficiency and power, safety is the key
factors taken into consideration by the customer while purchasing a car. The people are like
replace their car within 2-5 years from the purchase. Most peoples are satisfied with their car.
Peoples are preferred to buy diesel car other than petrol and Gas. Mostly the small car buyers are
Businessman, Doctors, and Engineers etc
The income of Buyers of small car varies between 3-4 lacs/annum
Many other features are also recommended by the respondents which they want in their small
car.

LIMITATIONS
______________________________________

Due to lack of time and financial resources, area covered was very small. The present
study was based on the data from Jalandhar City therefore its results may not be
applicable to other areas.
The small size taken was small and may not be sufficient to predict the result with 100%
accuracy and hence findings can not be generalized.
Consumers were some time unwilling and hesitated in replying to answer.
The accuracy of the results was also limited to reliability of methods of investigations,
measurement and analysis of the data.

RECOMMENDATIONS

The customer wants high technology in cars companies need to provide good technology in their
cars.

The customer emphasize on the design of the cars if companies provide good design in their cars
then there is high potential to increase the sale of the car.

The brand ambassador are unable to influence the purchase behavior of the customer company
should focus on network marketing through customer relation.
Companies should launch small cars with wider space because much % of respondents
Buy car for their family

CHAPTER-6
REFERENCE
References:

Verma and Kaur (2006), Effects of brand awareness on choice for a common repeat purchase
product, Journal of Consumer Research, Vol.17, No.2, pp.141-148.
Rao and Verma (2006). The hidden truth about your cars, BBC Top Gear, May 1998 (56).
Punj (2007), Personality and Consumer Behavior: A Review, Journal of Marketing Research,
November, Pp.409-418.

 JD (2007), Consideration sets of size one: An empirical investigation of automobile purchases,

International Journal of Research in Marketing, Vol.12, pp.55-66.
Ramkrishnan (2007) Motor Industry and Research Association ,The Emerging Asian Auto
Markets 1996, UK: Hobbs the Printers, pp.325-333.
Malhotra H. (2008), On problem perception, dissatisfaction and brand loyalty, Journal of
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Jakaparan, P.S., Kannan, P.K., Chandrasekharan, R. & Wright, G. P. (2008), Estimating Loyalty
and Switching with An Application to the Automobile Market, Journal of Management Science,
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Shyamala. Sankar (2008), The Psychology of Consumer Behaviour. New Jersey: Prentice-Hall.
Sewak M. (2009), Winning Tomorrows Customers: Future directions for car retailing and
servicing in the India. International Car Distribution Programme. Vol.8, No.2, pp.132-157.

Links:
http://www.siamindia.com
http://www.wikipedia.automobile.com
http://www.automobileindia.com/automobile-industry/automobile-prices.html
http://www.articlesbase.com/cars-articles/best-buys-in-small-car-segment528591.html
http://www.indiamarks.com/guide/Upcoming-Small-Cars-in-the-IndianMarket/9520/

http://www.pdfqueen.com/html/aHR0cDovL3d3dy5lcGEuZ292L290YXEvY2xpb
WF0ZS9yZWd1bGF0aW9ucy80MjByMTAwMDgucGRm

 http://www.fadaweb.com/changing_value_perception.htm
Books:
Kotler, P. (2008), Marketing Management, 12th Ed. New Delhi: Pearson Publishers Ltd., pp. 270310
Kumar, G. B. (2009) consumer perception towards various small cars. Harvard Business Review
Marketing Magazine, Vol 50, No 13, pp. 60-61.

ANNXURE
Annexure
Questionnaire
For Customers:
1. Name:___________________________
2. Age:______
3. INCOME
(A) <15000 [ ] (B) 15k 25k [ ] (C) 25k-35k [ ]
(D) >35 k [ ] (E) Decline to answer [ ]
4. What do you want from a car?
(A) Stylish [
] (B) Enough space [ ] (C) Fuel- Efficient [ ]
(D) Good resale value [ ] (E) Easily accessible service station [
] Rank them 1-5
5. How much you can afford?
(A) 1 Lakh [ ] (B) 1 Lakh 2.5 Lakh [ ] (C) 2.5 3.5 Lakh [ ] (D) > 3.5 Lakh [ ]
6. Which fuel car you prefer?
(A) Petrol [ ]
(B) Diesel [
]

7. Why you bought your present car? Please rank from the highest order of preference
1. Increase in disposable income [
3) Family needs

] 2)Better safety at roads [

] 4) Increase in family size [

5) Suits your lifestyle and personality [

8. You decided to buy small cars because of (rate best 3 factors from 1 to 3 in order of your
preference)
1) Affordable price [

] 2) Technical superiority over competition [

3) Comfort

4) Manufacturers image

6) Safety

7) After sale services

[
[

] 5) Value for money [

Product Satisfaction Level

1. Please rate your existing car in terms of understated Interior Design features on a scale of 1 to
5 where
1) Highly Dissatisfied [ ] 2) Dissatisfied [
4) Satisfied [ ] 5) Highly Satisfied [
]

] 3) Neutral [ ]

Interior Type
1
2
3
4
5
Seats design
Leg Room
Dash Board
Interior Colour
Music System
Adjustable Front seat Headrest
2. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5
Safety Parameters
Crossbar under Dashboard
Air Bags
Anti Lock Breaking System
Aerodynamic Shape
Intensity of front lights

3. Please rate your existing car in terms of following parameters

Parameter
Fuel Consumption
Mileage ( Km/ltr)
Pick Up
Stability at higher speed
Top speed

Dealer Service Satisfaction Level

Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where
1

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied
1

Distance ( Proximity)
Advertisements (Promotions)
Technical Facilities
Cost of Service
Availability of Spares
Information Provided
Service Time
Charges
Staff
Car Handling ( Delivery & service)
Assured Customer Transactions
Ambience of Service Center
Finance ( Credit) Schemes
Q2. How do you rate the brand image of your car?
1
Very Low

5
Very High

Q3. Will you recommend your car to your friends?

1) Yes

2) No

Q4. If yes, will you buy your new car in the

1) Same segment, same manufacturer

2) Same segment, different manufacturer

3) Upper segment, same manufacturer

4) Upper segment, different manufacturer

Posted by careergyaan CAREERGYAAN at 03:57

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