FINAL PROJECT REPORT

ON
A STUDY OF CUSTOMER SATISFACTION
LEVEL REGARDING THE PURCHASE OF
MOTOR BIKES IN 150CC SEGMENT
Submitted to
Punjab Technical University Jalandhar
In Partial fulfillment of the requirement for the award
of the degree of Masters in Business Administration

Submitted by:

Project guide:

SANJAY
(7065222446)
MBA IV-B

MR. NEERAJ SHARMA

(Session 2007-2009)
Gain Jyoti Institute
Of
Management & Technology

DECLARATION
Hereby declare that the project report entitled A STUDY OF CUSTOMER
SATISFACTION LEVEL REGARDING THE PURCHASE OF MOTOR BIKES IN
150CC SEGMENT submitted for the degree of Master of Business
Administration, is my original work and the project report has not formed the
basis for the award of any diploma, degree, associate ship, fellowship or similar
other titles. It has not been submitted to any other university or institution for the
award of any degree or diploma.

Place:
Date:

SANJAY

CERTIFICATE
This is to certify that Mr.SANJAY a student of MBA fourth semester of GJIMT,
Mohali has completed his project report on the topic of
Hereby declare that the project report entitled A STUDY OF CUSTOMER
SATISFACTION LEVEL REGARDING THE PURCHASE OF MOTOR BIKES IN
150CC SEGMENT under the supervision of Mr. Neeraj Sharma faculty member
of GJIMT.
To best of my knowledge the report is original and has not been copied or
submitted anywhere else. It is an independent work done by him.

Mr. Neeraj Sharma

Head of department (MBA)
GJIMT
Mohali

S.NO.
1.

CONTENTS
INTRODUCTION TO INDUSTRY

PAGE
NO.
6-11

2.

COMPANY PROFILE

12 - 40

3.

SIGNIFICANCE OF THE STUDY

41

4.

42

5.

INTODUCTION TO CUSTOMER
SATISFACTION
LIMITATIONS OF STUDY

6.

REVIEW OF LITERATURE

45-51

7.

RESEARCH METHODOLOGY

53-54

8.

DATA ANALYSIS AND INTERPRETATION

56-79

9.

FINDINGS

81-82

10.

CONCLUSION

84

11.

BIBLIOGRAPHY

86

12.

ANNEXURE

88-90

43

ACKNOWLEDGEMENT

Survey is an excellent tool for learning and exploration. No classroom routine can
substitute which is possible while working in real situations. Application of
theoretical knowledge to practical situations is the bonanzas of this survey.
Without a proper combination of inspection and perspiration, its not easy to
achieve anything. There is always a sense of gratitude, which we express to
others for the help and the needy services they render during the different
phases of our lives. I too would like to do it as I really wish to express my
gratitude toward all those who have been helpful to me directly or indirectly
during the development of this project.
I would like to thank my project guide Mr. Neeraj Sharma who was always there
to help and guide me when I needed help. His perceptive criticism kept me
working to make this project more full proof. I am thankful to him for his
encouraging and valuable support. Working under him was an extremely
knowledgeable and enriching experience for me. I am very thankful to him for all
the value addition and enhancement done to me.
No words can adequately express my overriding debt of gratitude to my parents
whose support helps me in all the way. Above all I shall thank my friends who
constantly encouraged and blessed me so as to enable me to do this work
successfully.

SANJAY
MBA

INTRODUCTION

INTRODUCTION TO AUTOMOBILE INDUSTRY

The Indian automobile industry is the tenth largest in the world with an annual
production of approximately 2 million units. Indian auto industry, promises to
become the major automotive industry in the upcoming years and the
industry experts are hopeful that it will touch 10 million units mark. Indian
automobile industry is involved in design, development, manufacture,
marketing, and sale of motor vehicles. There are a number of global
automotive giants that are upbeat about the expansion plans and
collaborations with domestic companies to produce automobiles in India.
The major car manufacturers in India are Maruti Udyog, Hyundai Motors India
Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Toyota Kirloskar
Motor Ltd., Hindustan Motors etc. The two-wheeler manufacturers in India are
Honda Motorcycle & Scooter India (Pvt.) Ltd., TVS, Hero Honda, Yamaha, Bajaj,
etc. The heavy motors including buses, trucks, auto rickshaws and multi-utility
vehicles are manufactured by Tata-Telco, Eicher Motors, Bajaj, Mahindra and
Mahindra, etc.At present major Indian, European, Korean, Japanese automobile
companies are holding significant market shares. In commercial vehicle, Tata
Motors dominates over 60% of the Indian commercial vehicle market. Tata
Motors is the largest medium and heavy commercial vehicle manufacturer.
Among the two-wheeler segment, including scooters and mopeds- motorcycles
have- major share in the market. Hero Honda contributes 50% motorcycles to the
market in which Honda holds 46% share in scooter and TVS makes 82% of the
mopeds in the country. In the three wheeler industry in India, Piaggio holds 40%
of the market share. Bajaj is the leader by making 68% of the three-wheelers.
Car manufacturers in India dominate the passenger vehicle market by 79%.
Maruti Suzuki is the largest car producer in India and has 52% share in
passenger cars and is a complete monopoly in multi purpose vehicles. In utility
vehicles Mahindra holds 42% share. Hyundai and Tata Motors is the second and
third car producer in India. The expanding Indian market, the growing size of the
middle class and the rise in aspirations of the youth along with opening up of the
Indian economy have collectively influenced the steady growth of the two
7

wheeler market in India. With leading foreign brands in collaborations with Indian
manufacturers entering the Indian market, the customer could not have asked for
more. In fact, the Indian bike market has grown immensely and the preference
for variety looks, design has brought in a number of models in the market. In the
last 2 to 3 years, the craze for motorcycle over the scooters has picked up and
one can find today even girls craving for a motorbike. Not only in the Metros but
in small towns and cities also. In todays challenging & competitive world of fast
changing technology, consumer tastes are also characterized by fast changes.
So, to survive in the market, a firm has to be constantly innovating and
understand the latest, consumer trends, tastes and preference. Consumer
behavior provides invaluable dues and guidelines to market on new technological
frontiers, which they should explore. It is realized by studying the buying behavior
of consumers that many consumer products that they felt reflected their own
special needs, personalities and lifestyles. To better meet the needs of specific
groups of consumers, most marketers adopted a policy of market segmentation
& successfully market to different segments the marketing manager needs
appropriate marketing strategies, which he can design only when he can
understand the factor, which account for these difference in consumers behavior
or satisfaction. The present project work has been undertaken. With the focus of
the consumer shifting to brand and product features, the project is a study aiming
at understanding what does a customer wants from Power segment bikes(150cc
& plus).

HISTORY OF TWO WHEELER

Motorcycles have made their debut around the 1950s; this section looks at the
two wheelers which have over the years caught the imagination of country.
It was in the year 1954 that the Indian government ordered for total number
of 800 motorcycles to man the Pakistani borders. In came the Bullets which
were initially launched in England as a 350cc bike and it was upgraded to
500cc a year or so later. These bikes have remained unaltered, barring
some cosmetic changes which have undergone over the years. Thus one
can say without much of a doubt that the 1955 Bullet was one of the initial
hits of the Indian two-wheeler industry and till today it continues to be a
darling of the motorcycle enthusiasts. Enfield Bullet had a close competition
with another sturdy bike named Rajdoot; as the bike was strong enough to
handle the rough Indian roads. The company had roped in Indian He-man
Dharmendra for the promotion of the bike. With more than 1.6 million
vehicles on the road the Rajdoot motorcycle was one of the initial hits of the
earlier years of two-wheeler history in the country. When heavy motorcycles
were the order of the day, a relatively lighter bike had caught on the
imagination of the Indian two wheeler user. Ind- Suzukia bike launched by
the then TVS Suzuki group was an instant hit; however the bike could not
sustain it's initial success due to the high import content in the vehicle and
less of localization. In scooters Bajaj Chetak has been hugely responsible
for adding momentum to the transport system of the country, till today it
remains one of the most successful brands to have come out of the Bajaj
stable. The scooter is named after the horse of legendary Rana Pratap
Singh. These sets of two wheels have become a part of the Indian milieu
and are often considered a representative of the Indian middle class
aspiration. Very few two-wheelers have been able to emulate the success,
which Bajaj Chetak has achieved over the years. Similarly LML Motors
enjoyed a reasonable success with the launch of LML Select which came

with

new

age

technology

and

improved

performance.

Today newer models of two-wheeler are entering the market everyday, slowly
pushing these names down the memory lane. However names like Chetak,
Rajdoot and Bullet will always find a mention in the history of two-wheelers
in the country.
For more than five decades, bikes have been ruling on the Indian roads. Whether
city or village, bikes have marked a strong presence in the Indian
automobile market. The launch of the first motor cycle in INDIA was made
due the need develop for better patrolling by the army and police personnel.
Gradually bikes became an inherent part of the life of people. Now bikes in
India have secured a firm place where they are no more a necessity alone,
but have become a part of peoples personality also. Every possession is a
statement. So are the two wheelers. In fact, two wheelers are more than
that. A good-looking two-wheeler or motorbike not only impress others, but
can go a long way in making your life convenient. Two wheelers like bikes
and scooters are the symbol of mass transporters. Two wheeler
manufacturers are well aware of their rising demand and hence, are
teeming up the market with new products everyday. Manufacturers are
targeting low income sections also with some cheap motorbikes as they are
increasingly becoming the potential consumers. Seeing the great demand
of the two wheelers, International automobile giants are heading towards
India and collaborating with the auto markets. In order to meet the
skyrocketing demands of the two wheelers, day-to-day swankiest bikes with
high-powered features are launched in the market to attract the maximum
buyers. The feeling of freedom and being one with the Nature comes only
from riding a two wheeler. Indians prefer the two wheelers because of their
small manageable size, low maintenance, and pricing and easy loan
repayments. Indian streets are full of people of all age groups riding a two
wheeler. Motorized two wheelers are seen as a symbol of status by the

10

populace. Thus, in India, we would see swanky four wheels jostling with
our ever reliable and sturdy steed: the two wheeler

Two Wheeler Manufacturers

The Two Wheelers Manufacturers in India, at present are doing good business.
The growth of the two wheelers sector was noteworthy in the past few years. In
the period 2006 - 07 the total number of the two wheelers and three wheelers
produced in India, were around 9 million. The sales pertaining to two wheelers in
the period 2006 - 07 was 7,857,548, which was a growth of 11.41 %. In the same
period the motorcycle exports from India was 321,321 units. The two-wheeler
manufacturers are especially encouraged by the enthusiasm of the young riders
who look for trendy products all the time. Some of the motorbike manufacturers
are also targeting young ladies and making bikes available that are comfortable
and cater specially to their needs. The launch of the Mopeds has revolutionized
the entire concept of transportation for the womens. Mopeds are light weight,
easy to drive and cost effective. In a way- Mopeds are tailor made keeping the
needs of young girls and office going womens in mind. Such is the craze for
bikes, that it comprises the major percentage of the two-wheeler industry,
followed by mopeds and scooters. Now, college going crowd and youths find
bikes smarter and better for transportation. The best part about a bike is that it
provides quick and easy transportation, and can be parked anywhere around.
Various factors such as the availability of bikes on reasonable rates, auto loans
and higher disposable incomes have contributed to an evident upsurge in the
demand of bikes. There's a marked change in the preferences of the buyers, as
most of them prefer bikes to scooters and mopeds. Scooters have been the
darlings of Indian masses for long because of the convenience it provides to the
riders. Cheap scooters have been launched by the manufacturers to reach the
wider net of customers. Two-wheeler manufacturers have also introduced
scooters for that are a handy mode of commuting for the physically challenged.
In India, two wheelers have captured the imagination of young generation

11

everywhere. They are as much popular in the rural areas as they are in cities and
towns. The easy maintenance, affordable price and ability to adjust in any kinds
of road have made them dear to one and all. Moreover, now-a-days getting
finance or a loan has become a trouble free affair and the numbers of bike riders
are only growing with each passing day. Your two-wheeler also needs your care
and attention all the time. With automobile India, you need not worry about the
maintenance tips, statistics, insurance, finance and latest trends in the two
wheeler industry. It is all there at the click of your mouse.

Major Players in the two wheeler Automobile Sector

All those people who are crazy about speed, automobile are indeed a prized
possession for them. With the increased number of car and two wheeler loans
and finance schemes available in today's market, it is not that difficult to
purchase the same. However, if you have already decided to purchase a vehicle,
then before the act of purchase, do get to know something about the key players
who dominate this market. In the two- wheeler segment, the biggest player in
India is hero Honda. A joint venture between the famous Hero group of India and
Honda group of Japan, it has the record of producing 1.3 million motorbikes in a
single business year in its kitty. All its products are known to be user friendly and
fuel efficient. Most popular two- wheelers produced by this company include the
likes of Glamour, Karizma, splendor, CD Dawn, Passion and Passion plus. Next
we have Bajaj Auto, which is known to be worlds third largest two as well as
three wheeler manufacturing company. It offers enormously popular bikes like
CT100, Platina, Discover, Pulsar, Pulsar DTS I and Avenger DTS I. All its
products are popular for their mileage offerings and attractive looks. Eastern
Europe. Browse more through www.automobileindia.com to know more on the
Indian automobile scenario. As India is very potential market for two-wheeler.
There are a number of players competing with one another. In the mean time,
there are 5 major players fighting for an approx. two wheelers market of 50.18

12

lakh two- wheelers annually. The structure of the industry has changed during the
last decade with a number of small companies being taken over by major
Players. But, the competition has just begun to hot up with coming up of MNCs.
The major players are as follows:

BAJAJ AUTO LTD. "Inspiring Confidence

Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki
Heavy Industries of Japan, Bajaj manufactures state-of-the-art range of twowheelers. The brand, Pulsar is continually dominating the Indian motorcycle
market in the premium segment. Its Discover DTSi is also a successful bike on
Indian roads. Since 1986, there is a technical tie-up of Bajaj Auto Ltd. with
Kawasaki Heavy Industries of Japan to manufacture state-of-art range of latest
two-wheelers in India. Kawasaki Heavy Industries is a Fortune 500 company with
a turnover of USD 10 billion (Rs. 45,840 crore). It has crafted new technologies
for more than hundred years. The technologies of KHI have redefined space
systems, aircrafts, jet engines, ships, locomotive, energy plants, automation
system, construction machinery, and of course high reliability two-wheelers.
'Inspiring Confidence,' the tagline, has build up confidence, through excitement
engineering, not only to domestic consumers but also internationally. Established
just eight decades back in 1926 by Jamnalal Bajaj, the company has been
vested with India's largest exporter of two and three wheelers.
Founder

Jamnalal Bajaj

Year of Establishment

1926

Industry

Automotive
- Two & Three Wheelers

Business Group

The Bajaj Group

Listings & its codes

BSE - Code: 500490; NSE - Code: BAJAJAUTO

Presence

Distribution network covers 50 countries.

Dominant presence in Sri Lanka, Bangladesh,
Columbia, Guatemala, Peru, Egypt, Iran and
Indonesia.

Joint Venture

Kawasaki Heavy Industries of Japan

13

Bajaj Pulsar 150cc: The Bajaj Pulsar is the first bike in India which came in
direct competition with the Hero Honda CBZ. Later Bajaj introduced Pulsar
150cc DTS-i with digital twin spark ignition and till today Pulsar is one of the
most sought after bike in the 150cc segment. It has definitely won over other
bikes, but let us justify its triumph.

10.37 Kw (14.09 ps) @ 8500 rpm

12.76 Nm @ 6500 rpm
New Silencer with ExhausTEC technology now ensures
improved engine torque even at varying load conditions
1320 mm
Telescopic Forks 135 mm stroke with anti-stiction bushes

HERO MOTORS LTD "Desh ki Dhadkan

14

Hero Honda is the World's No.1 two-wheeler manufacturing company having the
trust of more than 5 million customers. The company is a joint venture of Hero
Cycles of India and Honda Motor of Japan. Achiever, CBZ, CD Dawn, Karizma,
Passion, Pleasure and Splendor are its famous brands on Indian roads.
Honda will continue to provide Hero Honda with full and latest technological
support. Both of them will develop and expand the two-wheeler business in the
country. They agree to strengthen model line up. Honda Motor Co. Ltd., Japan,
renewed its Technical Collaboration Agreement for another 10 years, uptill 2014.
The previous renewal was in 1994 after the establishment in 1984.Driven by the
trust of over 5 million customers, the product range of Hero Honda commands a
market share of approximately 50%. Starting with a sale figure of only 43,000
units in 1985-86, the company has reached a high of 26, 21,400 units in 2004-05.
According to Pawan Munjal, Managing Director and CEO of Hero Honda, the gap
with its nearest rival, Bajaj Auto, is over a million units in 2004-05. The company
enjoys debt free status since March 01 and had zero level of contingent liabilities
as of 31st March 03. The entire long term debt of Rs. 116 Cr. as on 31st March
03 represents an interest free loan from the Government of Haryana on account
of sales tax deferment, and has no costs attached to it.

Founder

Munjal Brothers: Mr. Satyanand Munjal, Mr.

Brijmohan Lall Munjal and Mr. O. P. Munjal.

Year of Establishment

1984 (The Hero Group was established in 1956)

Mission

"Its our mission to strive for synergy between

technology, systems and human resources, to
produce products and services that meet the
quality, performance and price aspirations of our
customers. While doing so, we maintain the highest
standards of ethics and societal responsibilities."
- Mr Brijmohan Lall Munjal, Chairman & MD

Foundational Work

Before the establishment of the Hero Group in

1956, Munjal Brothers use to manufacture bicycle
components in the early 1940's.

Hero Honda CBZ:

15

Hero Honda is globally known of being the most fuel-efficient and the largest
CBZ selling Indian Motorcycle Company. This is a relationship so harmonious
that Hero Honda has managed to achieve indigenization of over 95 percent, a
Honda record worldwide

The company is committed to provide the customer with excellence. A rich

background of producing high value products at reasonable prices led the world's
largest manufacturer of motorcycles to collaborate with the world's largest bicycle
manufacturer. During 80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle without polluting the roads. They
company possess three manufacturing units based at Dharuhera, Gurgaon and
Haridwar are capable to produce 4.4 million units per year. They introduced new
generation motorcycles that set industry benchmarks for fuel thrift and low
emission.

Hero Honda Achiever

16

Its new Power Pro 149.1cc 4 stroke air-cooled engine produces power of 13.4
bhp (10 kW).Its petrol tank comes with excellent body graphics. Its masculine
and robust structure is really eye-catching to many bikers. Riding here becomes
safer due to the presence of multi-reflector headlight with halogen lamp and a
position lamp, multi-reflector tail light and winkers, protective visor etc.It is
equipped with many other features like muffler with heat shield, tuff up tube, dual
tone painted chain case, tachometer and tripmeter etc.

Hero Honda Hunk:

Price:

Kick Start Rs. 54000 58000 Self Start Rs. 56000 60000
The newly launched Hero Honda Hunk is fully featured with all the essential
factors which enable it to stand out from all
other two-wheelers. Hunk is a kind of bike for
which all the bike lovers look for. With sharp,
muscular toned body, this bike is extremely
good looking. Hunk is the result of a new age
technology that helps in low fuel consumption
and improved riding.

17

TVS MOTOR COMPANY Inspiration in Motion

TVS Motor is the third largest two-wheeler manufacturer in India and ranks
among the top ten globally. It is the first company in the world to be honored with
The Deming Prize for Total Quality Management. The company was the first in
India to launch 2-seater 50cc moped and 100cc Indo-Japanese motorcycles. At
present TVS Apache, TVS Victor, TVS Scooty, TVS Centra and TVS Fiero are the
popular bikes in Indian market. TVS Motor Company Limited is the flagship
company of TVS Group, the USD 2.2 billion group. The Group is the third largest
two-wheeler manufacturer in India and globally among the top ten, with an
annual turnover of over USD 650 million. Currently, the group has more than 30
companies and employs over 40,000 people worldwide. With steady growth,

18

expansion and diversification, it commands a strong presence in the

manufacturing of two-wheelers, auto components and computer peripherals.
Globally, TVS Motor Company is the first two-wheeler manufacturer to be
honored with the hallmark of Japanese Quality - The Deming Prize for Total
Quality Management.

Founder

T V Sundaram Iyengar

Country

India

Year of Establishment August 1980 (TVS Group in 1911)

Industry

Manufacturing of two-wheelers and auto components

Business Group

TVS Group

Listings & its codes

NSE
TVS - Suzuki Ltd: TVSSUZUKI
TVS Motor Company Limited: TVSMOTOR
TVS Motor Company Limited: TVS-SUZUKI
BSE
TVS Motor Company Ltd.: 532343

TVS apache:
TVS is enjoying a good time in India in a way that the company has been
constantly attracting the attention of the India bike lovers by offering some of the
best bikes in a variety of ranges. The all new TVS Apache is a unique offering
from TVS that represents the 150 cc bike segment in India. The TVS Apache is a
150 cc, 4 stroke engine, motorcycle that assures a maximum power of 9.95 Kw /
(13 bhp) @ 8500 rpm and a maximum torque of 12.3 Nm @ 6000 rpm. The
glossy body panels give it a very chic appearance. And its brawny engine makes
it look very masculine and sporty, which is what makes this bike a hot favorite
among the youth. Since the bike is equipped with shorter wheelbase, driving in
the traffic becomes easier for the rider. Its suspension power provides a great

19

riding experience even on the rocky roads. The Honda Apache bike has won
awards such as;
Viewers Choice bike of The Year '06 from CNB NDTV
Ingenious Design of the Year '06 from Over Drive
Best Design Of the Year '06 from BBC Top Gear

YAMAHA MOTORS INDIA PVT. LTD

Yamaha Motors India (YMI) is a 100% subsidiary of Yamaha Motor Corporation
of Japan. The company has its manufacturing unit in Faridabad and Surajpur,
which supports the production of motorcycles for domestic as well as overseas
market. Presently 10 models roll out of this two plant. Yamaha Motor Company,
founded as a motorcycle manufacturer on July 1, 1955, have worked, since
begining, to build products that stand out for their quality wherever they are sold.
Over the years, the company has diversified into a number of areas of business.
Yamaha Motor India (YMI) was incorporated in India in August 2001 as a 100%
subsidiary of Yamaha Motor Corporation (Japan), the parent company. But it

20

operated in India as technology provider for almost two decades before

incorporation.
Year of Establishment

July 1, 1955 (Yamaha Japan)

Industry

Motorcycle manufacturing

International Headquarter

2500 Shingai, Iwata-shi Shizuoka-ken, Japan

Yamaha made its initial foray into India in 1985. Subsequently, it entered into a
50:50 joint venture with the Escorts Group in 1996. However, in August 2001,
Yamaha acquired its remaining stake becoming a 100% subsidiary of Yamaha
Motor Co., Ltd, Japan (YMC). In 2008, YMC entered into an agreement with
Mitsui & Co., Ltd. to become a joint investor in the motorcycle manufacturing
company "India Yamaha Motor Private Limited (IYM)". IYM operates from its
state-of-the-art-manufacturing units at Surajpur in Uttar Pradesh and Faridabad
in Haryana and produces motorcycles both for domestic and export markets.
With a strong workforce of more than 2000 employees, IYM is highly customerdriven and has a countrywide network of over 400 dealers. Presently, its product
portfolio includes MT01 (1670 cc), YZF-R1 (998 cc), the all new YZF-R15 (150
cc), Gladiator Type SS & RS (125 cc), Gladiator Graffiti (125cc), G5 (106 cc),
Alba (106 cc) and Crux (106 cc).
Yamaha YZF R15
With a decade long years of YZF series development, the recently launched YZF
R15 from Yamaha is equipped with new fuel-injected engine and Delta box frame
which will give you the pleasure of riding which you may not have experienced
before. This model has inherited the traits from the YZF series like R1 and R6
which are equipped with under cowls for the best form of aero management.
Apart from these things, it incorporates all the below mentioned characteristics in
a splendid manner like:

Comfortable seating area for easy riding

21

Allows steering effectively

Wide frontal space for protection of the rider

Glamorous tail treatment which takes into account the management of

airflow

Attractive racing form which brings all these elements in a suitable

package

L
M

INDIA
One of the highly acclaimed names among scooter manufacturers in the country
is LML India. LML India has its 30% market share in volume terms with its
popular brand "Supremo".In monetary terms; the company turnover has grown
from Rs.209.05 crores in 92-93 year to approx. Rs.832.71 crores in Sept '98. Net
sales has declined to around Rs. 648.00 crore in year 2007. It plans to assist
authorized dealers with a WAN (wide area network) and sell spare parts through
the Net. The company is also working towards setting up five training schools
(one each in Mumbai, Kanpur, Bangalore, Calcutta and Noida), to train

22

mechanics and service personnel. In the first phase of 1999, LML India has
started with 120 people and hopes to build up a base of 20,000 trained
mechanics over time. Alongside, its 300-dealer strength is to be over 500 soon.
LML Limited is the company that changed the face of scootering in India in
collaboration with Piaggio. Now, this company has entered motorcycle market in
collaboration with Daelim of Korea. LML has just launched whole line of
motorcycles to magnify its freedom. Despite, LML scooters are no longer
branded as Vespa they continue to provide the same high quality scooters under
the LML name. The company has its marketing and exporting network in various
countries like in Italy, UK, USA etc. LML India production is mainly in the metal
body geared scooter with models like NV Xpress, Star Xpress, Select II, Pulse
and the Sensation, which observed decline in 2006. In order to recover its
eminence in the automotive industry, company has launched two-stroke metal
body geared scooters, comprising two and four-stroke plastic bodied gear less
scooters, both in geared and gear less versions.

LML Graptor
Its 150.8 cc 4 stroke single cylinder air-cooled engine delivers maximum power of
13.5 bhp @ 8000 rpm.Its body graphics along with its elegant body colors has
made this bike a real stunner to the buyer. Its wider wheel base 1280 mm gives
the proper grip on the road. Its disc brake gives the assurance of safer riding. It
comes equipped with the larger fuel tank of having capacity of 17 liters. It is
available with advanced 5 speed gear box. Its comfortable seating arrangement
along with the ample footrest assures the relaxation of long journey.

23

Suzuki Motor Corporation

Suzuki is a global leader in the automotive industry, with over 50 years of
continuous profitability. That means we build great products, and we'll always be
there to support our customers. Suzuki Motors Corporation is an admired world
leader in high-performance automobiles, SUVs and motorcycles. The experience
and expertise that makes Suzuki synonymous with consistent performance, goes
right into every vehicle they make. Suzuki Motor Corporation possesses an
entirely owned subsidiary in India - Suzuki Motorcycle Corporation. This Indian
subsidiary employs about 650 people including the contract workers. Suzuki
24

Motorcycle is a manufacturer of two-wheelers and has its manufacturing facility

at Gurgaon, Haryana. The company started its manufacturing operations in
February, 2006.Today, some of the most technologically advanced, exciting, and
dependable vehicles on the road were manufactured by Suzuki Motors. Buying a
Suzuki offer you maximum confidencebecause of the proven quality of the
products, the pride and strength and unbeatable built-in value. In the year 2006,
Suzuki was named as the fastest-growing Japanese auto company in America by
Automotive News. The company quickly followed up by introducing America's
first affordable seven-passenger SUV, the Suzuki XL-7. With the imaginative
2006 Grand Vitara Suzuki proved that it is possible to mix sophistication and
ruggedness in an SUV without a premium price tag. In 2008, the company
launched its new car SX4 Sport which has succeeded to achieve the
Automotive Best Buy Award.
Plant area and production capacity
We have installed our manufacturing plant in Gurgaon (Haryana) having
the annual capacity of 1, 75,000 units. Total land area of the facility at
Gurgaon is 37 acres out of which the present plant is constructed in an
area of 6.5 acres of land. The remaining area of 30.5 acres is left for land
development and future expansion.
Managing Director: Mr. Satya Sheel Khosla

SUZUKI GS 150R:
The 150cc Segment is picking up in India. Suzuki has been a little conservative
till now with its bike models. Zeus and Heat and not extra ordinary, but it sells
enough to be seen here and there a while. The company took another step
ahead with the Access 125 Scooter. But, as we know, Suzuki is a leader in
automotive industry and the largest Indian car maker, Maruti, does have
partnership with Suzuki. Suzuki GSR 150 Lanza, a 150cc bike from Suzuki is
sure to compete against Apache RTR, Unicorn, Hunk and Pulsar. While many

25

expected that this bike will be like the R15, Suzuki has planned to play it safe
initially. Here is a spy photo of the Suzuki Lanza.

With the all new 150 cc Hero Honda Achiever, the company entered into a new
saga of bike manufacturing. Hero Honda Achiever has all the qualities that a 150
cc bike in India has to offer to the bike lovers.

Comparison of 150cc bikes in India

Pulsar 150 DTS-i

Unicorn

CBZ Xtreme

Hunk

Apache RTR

26

TOP END SPEED Pulsar just tries to upgrade their existing version to a higher
platform.
The top end speed i rode was 120 in UG2. But in UG3 cant go above 115.and
pulsar struggles after touching 93km/hr . The noise produced is heavy. (Would
fear about engine) .hmmmm
Unicorn, the product from Honda is a good one too. This soundless beast
(compared to pulsar) reaches smoothly 115km/hr. No problem with it, but I
couldnt go more than this speed as my road was little bumpy.
CBZ Xtreme - one of the hefty bikes in this series is very powerful, MR LONG,
has a great tendency to reach top end speed with less time. It reached 125 km/hr
. Speedo error is also present so average of 120 km/hr . The acceleration from
60-100km/hr is best. This uses old unicorn engine, as soundless feature like in
unicorn.
Hunk is also a HH product. Yes, it also reaches 115km/hr as the specification is
the same as CBZ ( I have not rode it).
Apache RTR is a 160 cc bike produces 15.2 bhp which is the leader here. it
reaches 132km/hr , but i am sure the speedometer has error in it . To tell I think it
has reached 125 km/hr.

STYLING:
Pulsar wins here with styling because Bajaj mainly aims up only with the sleek
design factor. Trendy headlight, mighty tank and sharp end tail. But that doesnt
mean that others are bad. Apache is the smallest bike: BEST suitable for height
less than 56? Pulsar: not more than 510? Unicorn: 510? Hunk: 58?-511? CBZ
Xtreme: Best suitable for more than 6? Guys Ride comfort mainly comes with
CBZ Xtreme and unicorn only. If u r willing to do extra fitting like 2piece or 3

27

-piece handle bar, pulsar is best. People who really like toe shifting try out for
Apache or CBZ
MILEAGE:
This is where we Indians look greatly onto. Guyz come on, this is a 150 cc
segment, a power session from here and India is further developing onto higher
cc segments, so from now onwards do not try to speak of mileage still, I can give
the mileage provided by the bikes These mileages were tested by me only:
Petrol was poured up for Rs 20/- on the reserve point and drove till next reserve
point, the speed was set for it and the average was found.
Pulsar: Best > 64 km/l UG3 (drove not more than 45 km/hr and gear shifting was
at 3500 rpm. Worst>33km/l (drove in drastic condition)
Apache: best > 57km/l worst> 28km/l
Unicorn: best > 67 km/l worst> 39km/l
Hunk: best 58km/l worst 37km/l
CBZ: best 66km/l worst 32km/l
Well, if u mileage concerned then I would recommend u to take over either
pulsar, Unicorn or CBZ according to ur height and riding condition.

ACCELERATION:
Apache is best in acceleration followed by CBZ Hunk, Pulsar and Unicorn
RIDE COMFORT: Unicorn and CBZ leads in this category. Pulsar has a huge
tank mainly a big bulge in front of u , well there are guyz who lost there defiantly
male thing ( am serious about it) by applying sudden break.

28

MAINTANENCE:
Pulsar and Apache has good looks and latest Digital speed Console that is good,
but in terms of cost if these had any damages u will suffer in it. The cost is high.
Bajaj, TVS have higher cost maintenance than other bikes. Gearbox in Bajaj has
got some problems, but those people have to tried to rectify it. Hero Honda which
is good company has not got big equipments on HUNK and CBZ.

Specifications
Engine Type

Bajaj

Hero Honda Honda

TVS

Yamaha

Pulsar

Achiever

Apache

YZF R15

4-S,

Air 4-S,

Cooler
13.5 bhp

Max. power

8500

rpm
Transmission
Type
Fuel

tank

Capacity
Fuel Efficiency
Max. Speed

Five

Air 4-S,

Cooled
13.4

Unicorn

Air 4-S,

Cooled

Air 4-S, Liquid

Cooled

Cooled

bhp@ 13.3 bhp @ 13.5 bhp @

8000 rpm

8,000 rpm

Five Speed, Five

8500 rpm
Five

Speed, All 1 Down, 4 Speed,1

Down

Up

Down 4 Up Down 4 Up

15 ltrs

12.5 ltrs

13 ltrs

48 to 52 48
Kmpl
105
Kmph

Kmpl

to

54 48

to

54 46

to

bhp

7500

rpm
Return type

Speed,1

16 ltrs

17.0

6 Speed
12 ltrs

50 38

to

42

Kmpl
Kmpl
Kmpl
29
101 Kmph 102 Kmph
102 Kmph 112 Kmph

Two-wheelers: Market Size & Growth

In terms of volume, 4,613,436 units of two-wheelers were sold in the country in
9MFY2005 with 256,765 units exported. The total two-wheeler sales of the Indian
industry accounted for around 77.5% of the total vehicles sold in the period
mentioned.
Figure 1
Segmental Growth of the Indian Two Wheeler Industry
(FY1995-2004)

After facing its worst recession during the early 1990s, the industry bounced back
with a 25% increase in volume sales in FY1995. However, the momentum could
not be sustained and sales growth dipped to 20% in FY1996 and further down to
12% in FY1997. The economic slowdown in FY1998 took a heavy toll of twowheeler sales, with the year-on-year sales (volume) growth rate declining to 3%
that year. However, sales picked up thereafter mainly on the strength of an
increase in the disposable income of middle-income salaried people (following

30

the implementation of the Fifth Pay Commission's recommendations), higher

access to relatively inexpensive financing, and increasing availability of fuel
efficient two-wheeler models. Nevertheless, this phenomenon proved short-lived
and the two-wheeler sales declined marginally in FY2001. This was followed by a
revival in sales growth for the industry in FY2002. Although, the overall twowheeler sales increased in FY2002, the scooter and moped segments faced degrowth. FY2003 also witnessed a healthy growth in overall two-wheeler sales led
by higher growth in motorcycles even as the sales of scooters and mopeds
continued to decline. Healthy growth in two-wheeler sales during FY2004 was led
by growth in motorcycles even as the scooters segment posted healthy growth
while the mopeds continued to decline. Figure 1 presents the variations across
various product sub-segments of the two-wheeler industry between FY1995 and
FY2004.
Hero Honda Motors Ltd, India's largest two-wheeler company, is no stranger to
competition. But the company could face its toughest challenge in the next twothree years.
Bajaj Auto is firing on all cylinders to dislodge it from the top. Honda of Japan, a
stakeholder in the company and its technical collaborator, has launched its
scooters and motorcycles in India. Suzuki has plans to roll out its motorcycles
soon. For how long can Hero Honda hold on to its market share of over 50 per
cent?
In absolute numbers, the gap is actually widening. The gap between Hero Honda
and its nearest rival has increased from 8, 00,000 in 2003-04 to over a million in
2004-05.
Fifty per cent is an awesome market share and is not easy to sustain. In a market
where there are some very strong players, the market share is bound to
fluctuate. But we are okay with that. Our effort is to keep on growing by giving
more options and more choices to our consumers.

31

People have had this impression that when it comes to introducing new models,
the competition has left Hero Honda behind. We are not trying to match anyone
in introducing new models. We keep studying the customer.
And whenever there is a gap in the customer's demand, we try to fill it. In the last
two years, our introduction of new variants has been very regular
The size and the numbers at the two locations have become very large. We want
to go to a third location, although we have not taken a final call on where to
locate it. At the moment, we are augmenting the capacity of our two plants.
By August or September, we will have a capacity of over three million at these
sites. This will be good enough to take care of the festival season buying in
October and November. TVS and Bajaj Auto have said that they would set up
production facilities in the north.
We find that in terms of logistics, transport and so on, it is not such a big deal.
Also, we make such a large range of products that it will become cumbersome to
have a third plant in the west or in the south. We will have to source products
from Dharuhera and Gurgaon.
The automobile industry says that the high-volume segment of the motorcycle
market is up scaling from 100 cc to 125 cc, while your forte has been 100 cc
motorcycles.
We are trying to change that ourselves. We have been selling 100 cc
motorcycles for over 20 years. There are over 10 million customers of these
motorcycles. Now we want to give them an upgraded experience.
We have introduced the Super Splendor with a 125 cc quantum core engine. It
gives a better riding comfort and overall output than a 100 cc engine.
This is where Honda's best technology comes in -- out of a bigger engine, we are
giving better power and a better fuel economy. For us, Super Splendor is the next
32

blockbuster. It will do better than even the Splendor. Already, it is a huge

success. We are selling over 40,000 motorcycles a month.
The two operations are independent of each other. However, we do sit and
discuss on model launches so that we can complement each other in terms of
Honda products in the country. Both of us use the benefits of the Honda R&D
facility in India.
There is a lot we can learn from HMSI for our plans in the scooter segment, just
like we can share our knowledge on the motorcycle market with them. We need
not re-invent the wheel. Given the wide range of products offered from the Honda
family with price gap between two adjacent models being thin, there could be
some product cannibalization that cannot be avoided. Talking of the two wheeler
industry, the names that effortlessly come to us is Bajaj Auto, Hero Honda, TVS
Motor, Yamaha Motor, Kinetic and others. The two wheeler segment has played
an important role in giving a push to the automobile industry in India. In fact, the
production, sales and exports of the two wheelers is a fair indication of the
growing importance that it enjoys in this country's manufacturing economy. An
overview of the two wheeler industry makes this clear that the two wheelers are
among the most sought after
MARKET SHARE IN THE MOTORCYCLE SEGMENT
HERO HONDA

46.8%

HONDA

3.2%

TVS

9.4%

BAJAJ

24.6%

ROYAL ENFIELD

2.8%

LML

9.2%

KINETIC

4%

33

The two wheeler segment has played an important role in giving a push to the
automobile industry in India. In fact, the production, sales and exports of the two
wheelers is a fair indication of the growing importance that it enjoys in this
country's manufacturing economy. An overview of the two wheeler industry
makes this clear that the two wheelers are among the most sought after

SALES PERFORMANCE BY THE TWO WHEELER

Two- wheeler sales in the country have sky rocketed in the recent years, and the
annual sales of motorcycles in India expected to cross the 10 million mark by
2010. The low penetration of two-wheelers in the country 31 two-wheelers per
1000 citizens (2004) leaves immense scope for the growth of the market. Overall
the industry sales of two-wheelers have grown by 15% from 6.57 million in
2004/2005 to 7.57 million in 2005/2006. The buoyant Indian economy with a
growth rate of around 8% per annum is further expected to fuel the growth of two
wheelers in the country.
The shares of motorcycles have increased over the years, while that of other
two-wheelers like geared scooters cooperates and mopeds have shown a
negative growth or remained stagnant. The two-wheelers have penetrated 7% of
rural house hold and 24% of urban markets, thus it leaves an immense scope for
the market to grow.
The expanding Indian market, the growing size of the middle class and the rise in
aspirations of the youth along with opening up of the Indian economy have
collectively influenced the steady growth of the two wheeler market in India. With
leading foreign brands in collaborations with Indian manufacturers entering the
Indian market, the customer could not have asked for more. In fact, the Indian
bike market has grown immensely and the preference for variety looks, design
has brought in a number of models in the market. In the last 2 to 3 years, the
craze for motorcycle over the scooters has picked up and one can find today

34

even girls craving for a motorbike. Not only in the Metros but in small towns and
cities also.
Trying to catch up with these, manufacturers are busy working out customer
profiles. With the competition hotting up one can find a host of discounts
including: cash rebates and free accessories to push sales of the commuter
bikes. Certain changes are also visible as far as customer preferences are
concerned. The basic 100cc bike market is suddenly experiencing a slow down
in the growth. This Commuter bike was a favorite till the other day commanding
up to 90% of the total bike sales. The shift towards 100cc plus bikes is suddenly
discernable and the segment is expected to double in the next year itself.
Manufacturers are now rushing in to introduce bikes in this segment. Bajaj had
recently launched a spruced up version of its Caliber and is also planning to
upgrade the Pulsar-Dtsi higher on the power ladder. Hero Honda is also
upgrading its line-up to keep pace with the shift in demand by launching:
Ambition 135, CBZ star, Karizma etc.
But its not yet end of the road for the basic entry-level bike. We are witnessing
segmentation in the bike market, like the Bike market. The entry level model will
continue to be a high-interest segment for the aspirants.
Against this backdrop, the present project work has been undertaken. With the
focus of the consumer shifting to brand and product features, the project is a
study aiming at understanding what does a customer wants from Power segment
bikes(150cc & plus).
(In todays challenging & competitive world of fast changing technology,
consumer tastes are also characterized by fast changes. So, to survive in the
market, a firm has to be constantly innovating and understand the latest,
consumer trends, tastes and preference. Consumer behavior provides invaluable
dues and guidelines to market on new technological frontiers, which they should
explore. It is realized by studying the buying behavior of consumers that many
consumer products that they felt reflected their own special needs, personalities
and lifestyles. To better meet the needs of specific groups of consumers, most
marketers adopted a policy of market segmentation & successfully market to

35

different segments the marketing manager needs appropriate marketing

strategies,
The introductions of motorcycles like the TVS Star range of motorcycles have
helped the company in gaining a healthy market share in this segment. Where
the company has emerged as a clear winner by holding onto its leadership
position is in the moped segment.
The company has posted a 10% growth in sales accounting for a market share of
about 77%. The company also expects to arrest the decline of its one time best
seller TVS Victor through its new variant Victor GLS.
If this figures have daunted you the best is yet to come, the country leader in twowheelers hero Honda have crossed the three million mark during the year
2005/2006 which is a good few lakhs more than its nearest competitor Bajaj
Auto. The company accounted for nearly 40% of then two-wheeler market. In the
motorcycle segment the company has been able to attain a market share of
about 50%. The segment in which hero Honda has emerged as a clear winner is
the Deluxe segment, which is the largest segment in the motorcycles category,
with its flagship family of motorcycles splendor selling over 1.2 million units which
is just a shade less than all the two wheelers sold by TVS during the same year.
The motorcycle category is expected to see a further growth and according to
industry experts it will drive all other category of two-wheelers to the periphery.
The table below shows the over all trend of Industry Sales over a 5 year period.
The figures are provided by the Society of automobile Manufactures Association
(SIAM).

36

Two-wheeler domestic sales trend

Motorcycles
2001-02

2002-03

2003-04

2004-05

2005-06

2887194

3647493

4170445

4964753

5815417

New models from country's largest bike maker Hero Honda and its rival Bajaj
Auto topped consumer satisfaction ratings reiterating their
Position in the Indian market, according to a study by global market insight and
information group TNS. The study, which interviewed over 7,000 respondents
across the country, found that customers are increasingly preferring bigger bikes
(150cc and above) for future purchases. The Motorcycle Total Customer
Satisfaction (MTCS) by TNS rated the newly launched Hero Honda Splendor
NXG (125 cc), Hero Honda CBZ Extreme (150 cc) and Bajaj Discover (135 cc),
highest in their respective segments among over 50 models that were taken into
consideration.
"A trend that has been continuing for the past couple of years is the strong
performance of new models. They tend to get high ratings on performance and
design, an indicator of the growing design capability of the Indian industry," TNS
India Automotive Senior Vice-President Pradeep Saxena said. According to the
study in the entry level segment Hero Honda's CD Deluxe continued to lead,
while Bullet 350 led in the niche 'cruiser' bike segment. Interestingly, customers
from all four regions of the country showed preference for bike with high engine
capacity (150cc and above), with 70 per cent respondents in South India
preferring in bigger bikes, the study said. Across the country, close to 24 per cent
of current bike owners intend to upgrade to a four-wheeler. However, the
propensity to upgrade to a car is higher in the north compared to other parts of

37

the country, it added. The study said growth in the entry and premium compact
segment of the four-wheeler market will be clearly impacted by the large base of
current motorcycle owners.

TRENDS IN THE TWO-WHEELER INDUSTRY

Companies

raising capacity to meet the growing demand all the major two-wheeler
manufacturers, viz. Bajaj Auto, HHML, TYS, HMSI and others, have increased
their manufacturing capacities in the recent past. The total capacity of these
players stood at 7.8 million units per annum (FY2003) as against total market
sales of 3.8 million units in FY2002. Most of the players have either expanded
capacity, or converted their existing capacities for scooters and mopeds into
those for manufacturing motorcycles. The move has been prompted by the rapid
growth reported by the motorcycles segment since FY1995.HHML increased the
capacity of its plants from 1.8 million units in FY2003 to 2.25 million in FY2004
and has been able to achieve 92% capacity utilization. In light of the increase in
demand for motorcycles, the company plans to set up a new plant. Since its entry
in the Indian market during FY2002, HMSI has aggressively expanded its
capacity.
Niche markets also witnessing intense competition A significant trend
witnessed over the past five years is the inclination of consumers towards
products with superior features and styling. Better awareness about international
models has raised expectations of consumers on some key attributes, especially
quality, styling, and performance. High competitive intensity has prompted
players to launch vehicles with improved attributes at a price less than the
competitive models. In an effort to satisfy the distinct needs of consumers,
producers are identifying emerging consumer preferences and developing new
models. For instance, in the motorcycles segment, motorcycles with engine
capacity over 150cc, is a segment that has witnessed significant new product
launches and hence, become more competitive. The indigenously launched
Pulsar 150 had met with success on its launch and thereafter, a host of models

38

have been launched in this segment by various players. While Bajaj Auto
launched the Pulsars (150 and 180 cc) with digital twin spark technology (DTSi)
that offers a powerful engine and fuel efficiency of 125 cc models, model
launches by other players include LML's Graptor/Beamer, HMSI's Unicorn
besides the HHML's CBZ (improved version launched in 2003-04) and TVS'
Comp anywise two-wheeler exports since FY2000 are presented in the following
Table 4.
Company-wise two-wheeler exports (FY2000-9MFY2005)
FY2000 FY2001 FY2002 FY2003 FY2004 CAGR

9MFY2005

(FY200004)
Bajaj

14924

16112

28527

53366

90210

56.8

87225

HHML

10061

10324

13023

21165

39254

40.5

43441

HMSI

1293

10916

31414

n.a

27734

TVS

7265

6621

7765

9636

28093

40.2

36666

Yamaha 15197

20446

20321

45546

32906

21.3

27539

Others

35790

57635

32752

39053

42792

4.6

33773

Total

83237

111138 103681 179682 264669 33.5

Auto

256378

Indian automobile industry witnessed a growth of 25.29% in motorcycle segment.

Indian motorcycle segment includes a range of brands, such as Bajaj Pulsar,
Bajaj Discover, Bajaj, CBZ, Freedom, TVS Victor, TVS Star, etc. The
manufacturers

are

in

the

process

of

launching

new

models.

Bajaj, TVS and Hero Honda, Yamaha, Suzuki, etc are leaders in the Indian
motorcycle segment.

39

Production Trend in two wheeler motorcycle

During financial year 2005-06, Indian motorcycle production showed a growth of
19.39% over the preceding year. At present there are more than 6 million
motorcycles manufactured in Indian automobile sector

40

Sales trend of motorcycles in Indian market

Significance of the study

To know about the consumer buying behavior and factor which

Influence customer to purchase the product.

To know about the consumer preference and decision.

To know the market shares that the company holds.

To know the factors which influence customer to making there purchasing

decision

41

To find the promotional channel which creates more awareness about the
bike available in the market.

CONSUMER SATISFACTION
Before getting into details of Consumer Behaviors, one must go through certain
basic terminologies. In general terms both Consumer and Customer are
considered the same but they are quite different. The term Customer is some
what different from the term consumer. The term customer is used to refer to
someone who purchases goods and services from a particular store or company.
Thus a customer is defined in terms of a specific term while a consumer is not
Consumer may be referred to any one engaged in evaluating, acquiring, using
or disposing of goods and services which he

expects will satisfy his needs. So

ultimately Consumers are that individual who consumes or uses a product, which
may or may not be purchased by him. So after getting into these terms we need
to get into the details of Consumer satisfaction.

42

Customer Satisfaction: Satisfaction is a persons feelings of pleasure or

disappointment resulting from comparing a products perceived performance in
relation to his or her expectation As the definition makes it clear, satisfaction is a
function of perceived performance and expectations. If the performance falls
short of the expectations of the customer, the customer is dissatisfied. If the
performance exceeds the expectations, the customer is highly satisfied or
delighted. Many companies are aiming for high satisfaction because customers
who are just satisfied still find it easy to switch, when a better offer comes along.
Those who are highly satisfied are much less ready to switch. High satisfaction or
delight creates an emotional affinity with the brain, not just a rational preference.
The result is high customer loyalty. In this highly competitive world customers
plays a very important role. Thus, if a company wants to survive then it should
look forward to the determinants of customer satisfaction. Though it is a very
subjective issue that differs from individual to individual yet, identifying some
basic parameters of customer satisfaction is important. Satisfaction is a persons
feeling of pleasure and disappointment resulting from comparing a products
perceived performance in relation to his or her expectations. It is only the
customer delight that marketer aims for.

LIMITATION OF STUDY
The study based on survey through pre-designed questionnaires suffers from the
basic limitation of the possibility of difference between what is recorded and what
is the truth, no matter how carefully the questionnaire has been designed and
field investigation has been conducted. This is due to the reason that persons
may not deliberately report their true responses and even if they want to do so,
there are bound to be differences owing to problems in the communication
process. In addition there are some limitations, which are as follows:
Some of the respondents might have hid the real information.
Data collection error may be there due to wrong respondents as some
time they are not right person who take actual decisions.

43

 Some time people do not have time to fulfill questionnaire, so they give
only few information.
Because of the diversity nature of the respondents, also some bias
information can corrupt the report.
Some people do not want to give right information due to some
constraints.
Some time people are not aware of the real objective so error may be
there.
As per knowledge data was collected and analysed, error may be there.

44

REVIEW OF
LITERATURE

REVIEW OF LITERATURE
A brief review of the literature is of immense importance with respect to
any research. It is essential for understanding the scope and spectrum of
research objectives. Various aspects of consumer preference like consumer
satisfaction, impact of various attributes on purchase behavior, consumer
perception, and consumer dissatisfaction are measured.
Axelrod and Wybenga (1985) in their study on perceptions that motivate
purchase suggested that perceptual questions, appropriately analyzed, could be
45

much more powerful than evaluative questions in revealing what motivates and
what demotivates purchase behavior. Two powerful diagnostic questions with an
analytical approach, that provided a greater depth of understanding than
conventional diagnostic questions, were all that needed to be asked.
Malhotra (1986) proposed an alternative approach for measuring
consumer preferences by using limited information. The approach differed from
the popular approaches in which once the non-preferred 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.
Simonson et al (1988) examined the relationship between prior knowledge
and information search to the selection of information at the brand-attribute level.
The focus was on both the content and the certainty associated with prior beliefs
about the attribute values of various brands. The prior knowledge of the
consumer about various brands was made use of while arriving at a choice and
information was acquired earlier with respect to prior beliefs that are more
uncertain and less favorable. It was found that initially, the consumer
concentrated on the most attractive brands and later on, information about less
attractive alternatives was sampled by him.
Carpenter and Nakamoto (1989) argued that market pioneers outsell later
entrants in both consumer and industrial markets. Entry barriers arising from
preemptive positioning and switching costs had been advanced to explain this
market share difference, termed pioneering advantage. The pioneering
advantage could arise from the process by which consumers learned about
brands and formed their preferences. This process could produce a preference
structure that favored the pioneer, making it difficult for the later entrants to
compete away the pioneers large market share, even if brands could reposition
and switching costs were minimal.

46

Rao and Monroe (1989) investigated experimentally the influence of price,

brand name and store name on buyers perceptions of product quality. The Meta
analysis suggested that for consumer products, relationships between price and
perceived quality and between brand name and perceived quality were positive
and statistically significant. However the positive effect of store name on
perceived quality was small and not statistically significant.
Hoyer and Brown (1990) revealed the subtle difference between
awareness and recognition. Awareness represented a state of knowledge
possessed by the consumer, whereas recognition was a cognitive process that
resulted from awareness. In the study, the effects of brand awareness on choice,
brand sampling and the frequency with which the highest quality brand was
selected after a series of trials, were examined. The results arrived at were: (i)
Brand awareness was a prevalent choice tactic among inexperienced consumers
who were faced with a new decision task (ii) Fewer brands were sampled across
a series of product trials by consumers who were aware of a particular brand in a
choice set (iii) Consumers who were aware of one brand in a choice set tended
to choose the known brand even if it was lower in quality than other brands
sampled by them. Thus, brand awareness had important effects on consumer
choice. Subjects with no brand awareness tended to sample more brands and
selected the high-quality brand on the final choice significantly more often than
those with brand awareness.
Herr et al (1991) made observations regarding the effects of word of
mouth communication and specific attribute information on product evaluation.
The study revealed that a face to face word of mouth communication was more
persuasive than a communication in a printed format. Despite of the fact that a
strong word of mouth communication effect was found, this effect was reduced or
eliminated whenever a prior impression about the target brand was available
either from memory or when extremely negative attribute information was
presented.
Hagius and Mason (1993) investigated the assumption that products that
were similar were similarly preferred by the consumers. Also, it was found that

47

beneficial attributes were relatively more important in preference assessments

than in similarity judgments. Alternatively, characteristic attributes were relatively
less

important

in

preference

assessments

than

in

similar

judgments.

Unexpectedly, image attributes were relatively less important in preference

assessment than in similarity judgments.
Lichtenstein et al (1993) found that price level perceptions had a direct
negative impact on purchase intentions and an indirect positive effect on the
purchase intentions via product quality perceptions. Consumers did perceive
price in positive role because of the inference that the level of price cues is
related positively to product quality actually paying higher prices; their behaviour
has been referred to as price seeking.
Yiang and Donald (1993) explored the impact of a new brand entry on
consumers subjective brand judgments. Three types of effects were hypothysed.
When a new brand was positioned in or outside between two existing brands,
then the two existing brands might be judged either less, similar or more similar
indicating frequency effect or range effect respectively. When the new one was
placed close to one of the two existing brands the similarity again decreased
(categorization effect). The results demonstrated that a new entrant had a
significant impact on the subjective brand judgements, brand preferences and
choices.
Broniarczyk and Alba (1994) identified two factors that influenced
consumers perception of brand extension. Firstly, the brand effects and
secondly, the effect between the regional and extension brand categories. In this,
the author performed three experiments to explore the relative importance of
these associations. The experiment revealed that brand specific association
dominated the effect of brand affect and category similarity, particularly when
consumer knowledge of brand was high.
Dhar and Sherman (1996) examined the effect of common and unique
features in consumer choice. They said that consumer choice often involved a
comparison among the available alternatives. It was proposed that attractiveness

48

of the choice set could be enhanced or reduced by altering features, which

appeared unique.
Chernev (1997) examined the effect of common features on brand choice
and moderating role of attribute importance. It was argued that when brand
attributes differed in importance, common features were likely to enhance
consumer preferences for the option with the best value on the most important
attribute, thus further polarizing brands choice shares. In contrast when
attributes were similar in importance, common features were likely to have an
opposite effect, equalizing brand shares. Thus, when attributes had equal
importance, adding a common feature to a pair of options leads to an
equalization of choice shares, whereas, when attributes differed in importance,
common features enhanced the choice share of the option with the best value on
the most important attribute, leading to a further polarization of brands choice
shares.
Dhillon et al (1997) in their study concluded that urban people made more
purchases due to prestige, interest and motivation where as rural respondents
made due to need. The purchase of furniture and luxury items by urban families
was due to their need and interest who were also motivated by friends and
neighbors. The urban homemakers purchased modern kitchen equipment as
they were more educated and were also aware of the market opportunity.
Voss et al (1998) had examined the rule of price, performance and expectations
to determine satisfaction in service exchange. When price and performance were
consistent, expectations had an assimilation effect on performance and
satisfaction judgments; when price and performance were inconsistent,
expectations had no effect on performance and satisfaction judgments. To
examine these issues authors developed a contingency model that they
estimated using data from a multimedia experimental design. The results
generally supported contingency framework and provided empirical support for
normative guidelines that called for creating realistic performance expectations
and offering money-back service guarantee.

49

Dhar et al (1999) suggested that the construction of both similarity and

preference judgments could be captured by a feature-matching model that
allowed for shifts in the relative weights assigned to the various features of the
alternatives being compared. An application of this model was that engaging in
one comparative process (e.g., similarity) can influence the relative weight
assigned to the features that were considered in a second comparative judgment
(e.g., preference). The effect of engaging in an initial comparison task on
subsequent preference judgments was tested for stimulus-based choice sets.
The results on choice deferral and choice satisfaction were consistent with the
notion that engaging in similarity/dissimilarity comparisons altered the relative
weight assigned to common and unique features for the two alternatives.
Heilman et al (2000) examined how brand preferences and response to
marketing activity evolved for consumers new to a market. They developed a
theoretical framework that began with a consumers first-ever purchase in a
product category and described subsequent purchases as components of
sequential stages. The theory was based on the notion that choices made by the
consumer new to a market were driven by two competing forces: consumers
desire to collect information about alternatives and their aversion to trying risky
ones. The results showed the importance of accounting for product experience
and learning when studying the dynamic choice processes of consumers new to
a market.
Ofir and Simonson (2001) in their study found that the customer evaluations of
quality and satisfaction were critical inputs in development of marketing
strategies. Given the increasingly common practice of asking such evaluations,
buyers of products and services often knew in advance that they subsequently
would be asked to provide their evaluations. In a series of field and laboratory
studies, the author demonstrated that expecting to be evaluated leads to less
favorable quality and satisfaction evaluations and reduces customers willingness
to purchase and recommend the evaluated services. The negative bias of
expected evaluations was observed when actual quality was either low or high,

50

and it persisted even when buyers were told explicitly to consider both the
positive and negative aspects.
Tamizhselvan and Vijay Kumar (2002) analyzed the significance of
personal characteristics of consumers in determining the brand preference for
soft drinks in Coimbatore district. The study also identified the factors considered
important in buying behavior, the reasons of brand preferred by the consumers
and the factors considered in the frequency of buying. It was concluded that the
personal characteristics like sex, age, marital status, occupation, monthly income
and expenditure, type of family and size of family had a significant influence on
brand preference and buying behavior of the consumers.
Bhattacharya and Sen. (2003) tried to determine why and under what
conditions

consumers

entered

into

strong,

committed

and

meaningful

relationships with certain companies, became champions of these companies

and their products. The authors proposed that strong consumer-company
relationships often resulted from consumers identification with those companies,
which helped them to satisfy one or more important self-definitional needs.
Aggarwal (2004) stated that when consumers formed relationships with
brands, they use norms of interpersonal relationships as a guide in their brand
assessments. Two relationship types were examined: exchange relationships in
which benefits were given to others to get something back and communal
relationships in which benefits were given to show concern for others needs. The
conceptual model proposed that an adherence to or a violation of these
relationship norms influenced the appraisal of the specific marketing action and
also the overall brand evaluations.
Erdem and Swait (2004) examined the role of brand credibility (trustworthiness
and expertise) on brand choice and consideration across multiple product
categories that vary in regard potential uncertainty about attributes and
associated information acquisition costs and perceived risks of consumption. It
was found that brand credibility increased probability of inclusion of a brand in
the consideration set, as well as brand choice conditional on consideration. It
was also found that although credibility impacts brand choice and consideration

51

set formation more and through more constructs in contexts with high uncertainty
and sensitivity to such uncertainty, credibility effects were present in all
categories. Finally, the results indicated that trustworthiness, rather than
expertise, affected consumer choice and brand consideration more.
Simonson (2005) examined the basic assumptions underlying individual
marketing and presented a process model of customers responses to
customized offers. The model addressed (1) preference development (2)
evaluation of customized offers (3) likelihood of purchasing the customized offers
and (4) maintenance of relationships with one-to-one marketers. The analysis
leaded to specific propositions regarding determinants of customers responses
to customized offers. The author also discussed future research directions and
managerial implications It can be concluded that many studies have been done
to study the various factors related to impact of various attributes on purchase
behavior, consumer perception, customer satisfaction and dissatisfaction, etc. A
study is required to identify the attributes considered while purchasing and
compare selected brands on basis of these attributes.

52

RESEARCH
METHODOLOGY

53

RESEARCH METHODOLOGY
OBJECTIVE OF THE PROJECT

Objective:
1. To study the various factor that influence the satisfaction level oh the
consumer.
2. To study the consumer choice preference regarding the diffent type of
150cc bikes.
3. To study the various factor that influence purchase behavior of a
consumer
The data for the study was collected with the help of structured questionnaires,
personal visit, and market research from various primary and secondary
sources.

54

Method of Data collection:

There are two methods of data collection for study both primary and secondary
data was collected.
Primary Data:
For collecting primary data I used a questionnaire which was filled by the
respondent who has 150cc bikes.
Secondary Data: These types of data are available in published media,
internet and other type of media. For this project I have taken help from internet
services and broachers and magzines
Sampling plan:
The sampling plan was designed after deciding about the sampling unit and
sampling size. I choose convenient sampling method to choose the respondent
samples.
Sampling Unit:
The sampling method used for the above research problem will be convenient
sampling. The sampling area in mohali and chandigarh.
Statistical tools:
Pie charts have been used to understand and interpret the various findings of
the survey and market research and to conclude of analysis in very precise
manner. Techniques of Pie charts, Tabulation and Cross tabulation are used for
interpretation.
Sample size:
Keeping in view the time and resources available for the study, it was decided
to restrict the sample size to 50 respondents. For drawing the sample
convenient judgmental sampling has been used to save time and to meet my
objectives.

55

DATA ANALYSIS AND

INTERPRETATION

56

DATA ANALYSIS AND INTERPRETATION

This chapter deals with the analysis and interpretation of the data. The raw data
collected various tables and graphs have been made in order to do the analysis.
The results of the analysis and interpretation have been shown below.
The data for the study was collected with the help of structured questionnaires,
personal visit, and market research from various primary and secondary sources,
which help to analyse the data
For data analysis I use pie diagrams and some test which helping me in analysis
and interpretations.

57

ACCORDING TO MY SURVEY
A sample of 50 respondents was analyzed and the findings are given below
TABLE 1: AGE WISE DISTRIBUTION OF RESPONDENTS.
Respondents Age

% Respondents

Number of Respondents

Less than 25

56%

28

26-35

28%

14

More than 30

16%

Total

100%

50

Table 2 clearly indicates that about 60% of the respondents covered in my survey
are below the age of 25. The proportion of age of respondent from 26-35 and
more than 30 is about 27% and 12% respectively.

TABLE 2; OCCUPATION STATUS OF THE RESPONDENT

58

Occupation

Number of Respondents

% of Respondent

30

60

Services

10

Business

15

30

Total

50

100%

Students

This table clearly shows that 60% are students and 10% respondents are service
men and 30% are business men

TABLE 3: Which brand of 150cc you have?

BRAND NAME

RESPONDENTS

59

PERCENTAGE

Hero Honda
Bajaj
YAMAHA
TVS
Honda
Suzuki
LML

15
27
1
3
3
0
1
50

30
54
2
6
6
0
2
100

This table indicates that 54% have Bajaj Pulsar and 30 % of Respondent have
Hero Honda models of 150cc.

TABLE4: Which factor of bike influences you to purchase this particular

bike only?
S.NO

Number of

% Respondents

Mileage
power

Respondents
9
22
60

18
44

Looks
Price
Comfort
Others

2
13
4
0
50

4
26
8
0
100 %

Table indicate that 44% of the respondent influence by power of bike while
purchasing, 26% of Respondent influenced by price and 18% of Respondent are
influenced by Mileage.

CHI-SAQURE TEST:
Table of Observed and Expected Frequencies
S.NO
Mileage
power
Looks
Price
Comfort
Others

Observed frequency
9
22
2
13
4
0
50

Expected frequency
8.334
8.334
8.334
8.334
8.334
8.334

61

Null Hypothesis (H0): There is no significant difference in the type of Sector

chosen by Respondent.
Data for applying Chi-Square Test
d.f.
5
Calculated value of Chi-Square 32.1402
(C.V.)
Table value of Chi-Square at 5% 9.49
level of significance (T.V.)
Relation between Calculated value C.V. > T.V.
and Table value of Chi-square
Whether the experiment provides Yes
any

evidence

against

the

Null

Hypothesis

Interpretation: Since the calculated value of Chi-square is much higher than the
table value hence the null hypothesis is rejected. We therefore conclude that
there is significant difference in the factors of bike influence the respondents.
TABLE 5: How you gathered information about the bike you bought?
S.NO

Number

of % Respondents

TV ads
magzines
hoardings
Newspaper
Relative/frienda
Others

Respondents
18
7
6
4
10
5
50

36
14
12
8
20
10
100%

Table indicates that 36% of Respondent gathered information from TV ads, 20%
gathered information about the bike by Relatives/friends, 14%from magzines,
12% from Hoardings.

62

CHI-SAQURE TEST:
Table of Observed and Expected Frequencies
S.NO
TV ads
magzines
hoardings
Newspaper
Relative/frienda
Others

Observed frequency
18
7
6
4
10
5
50

Expected frequency
8.334
8.334
8.334
8.334
8.334
8.334

Null Hypothesis (H0): There is no significant difference in the type of Sector

chosen by Respondent.
Data for applying Chi-Square Test
d.f.
5
Calculated value of Chi-Square 16.475
(C.V.)

63

Table value of Chi-Square at 5% 11.1

level of significance (T.V.)
Relation between Calculated value C.V. > T.V.
and Table value of Chi-square
Whether the experiment provides Yes
any

evidence

against

the

Null

Hypothesis

Interpretation: Since the calculated value of Chi-square is much higher than the
table value hence the null hypothesis is rejected. We therefore conclude that
there is significant difference in the information gather by the Respondents.

TABLE 6:
Feature

Rate the feature as usage value in your bike?

Very

Importan

Least

Neutral

Not

Total

important t

Importan

Importan

More mileage

16

28

t
5

t
-

50

Power
Better comfort
Good Looks
Easy

38
31
33
12

10
14
16
19

1
3
1
9

1
2
6

50
50
50
50

availability
Disc Brakes

25

14

50

Factor analysis Test

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of Approx. ChiSphericity

Square
df
Sig.

.562
73.812
15
.000

64

In this table the null hyphpthesis is rejected by the Bartletts test of sphericity.The
approximate chi-square is 73.812 with 15 degree of freedom. Which significant at
the 0.05 level. The value of KMO statistic .562 is >.5 Thus a factor analysis may
be considered an appropriate technique for analyzing the correlation matrix.

Communalities
Initial
VAR000
01
VAR000
02
VAR000
03
VAR000
04
VAR000
05
VAR000
06

Extracti
on

1.000

.827

1.000

.612

1.000

.773

1.000

.318

1.000

.692

1.000

.371

Extraction Method: Principal Component Analysis.

This Table shows the application of principal component analysis. Under
communalities initial column show that the communality for each variable v1 to
v6 is 1.00 the eigenvalues for the factors are expected in decreasing order of
magnitude as go from factor 1 to factor 6. Total eigenvalue for a factor indicate
the total variance attributed to that factor.

65

Communality: It is the amount of variance a variable shares with all the other
variables being considered. This is also the proportion of variance explained by
the common factors.
Eigenvalue: The eigenvalue represents the total variance explained by each
factor

Total Variance Explained

Rotation Sums of Squared
Compone

Initial Eigenvalues
% of
Cumulative

nt
Total
Variance
%
Total
1
2.418
40.299
40.299
2.341
2
1.175
19.580
59.880
1.252
3
.939
15.649
75.529
4
.826
13.771
89.300
5
.427
7.124
96.423
6
.215
3.577
100.000
Extraction Method: Principal Component Analysis.

Loadings
% of
Cumulative
Variance
39.010
20.869

%
39.010
59.880

In This Table the total variance accounted for by all the factors is 6, which is
equal to the number of variables. Factor 1 account for a variance of 2.341, which
is 39.010 percent of the total variance. Likewise the second factor accounts for
20.869 percent of the total variance and the first 2 factors combined account for
59.880 percent of the total variance According to this only those factors with
eigenvalues greater than 1.00 are retained; the other factors are not included in

66

the model. An eigenvalue represents the amount of variance associated with the
factor. Hence only factors with a variance greater than 1.0 are included. Factors
with variance less than 1.0 are no better than a single variable. So we can see
that the eigenvalue >1.0 result in 2 factors being extracted. This means that
Respondent gives two factors most importance as usage value in their bikes of
150cc.

Rotated Component Matrix (a)

Component
1
2
VAR000
.888
-.193
01
VAR000
.781
-.044
02
VAR000
.849
.229
03
VAR000
.560
-.067
04
VAR000
636
.537
05
VAR000
.609
.014
06
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 3 iterations.
This is an important output from factor analysis. This matrix contains the
coefficients used to express the standardized variables in term of the factors.
These coefficients represent the correlation between the factors and the
variables. A coefficient with a large absolute value indicates that the factor and
variables are closely related. Although unrotated factor matrix indicate the
relationship between the factors and individual variables.

67

Component 1= mileage, Component 2=power are largely effect by v1 and its

effected decreases to v1 to v6

Component Score Coefficient Matrix

Component
1
2
VAR000
-.179
.752
01
VAR000
.349
-.119
02
VAR000
.350
.099
03
VAR000
.254
-.114
04
VAR000
.169
.467
05
VAR000
.267
-.053
06
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization
V 01 is related to product characteristics related factor such as
More mileage
Power
Disc brakes

68

This has rank first and variance % i.e. 39.010

V 01 is related to product attraction Related factor such as
Good looks
Comfort
Easy availability
This component placed in second rank and its variance % 59.880

S
c
reP
lo
t

E
ig
e
n
v
a
lu
e

.2
2
5
.1
0
.1
5
.0
0
.0
5
. 12C
3
4
o
m
p
o
n
etN
u
m
b
e
r56
69

A scree plot is a plot of the eigenvalue against the number of factors in order of
extraction. The shape of the plot is used to determine the number of factors
.Typically the plot has a distinct break between the steep slope of factors, with
large eigenvalue and a gradual trailing off associated with the rest of the factors.
Evidence indicates that the point at which the scree begins denotes the true
number of factors. From the scree plot a distinct break occur at three factors.
Finally from the cumulative percentage of variance accounted for, we can see
that the first two factors account for 59.880 % of the variance, and the gain
achieved in going to two factors is marginal. This situation indicates that
thesetwo factors are appropriate. Thus these two factors appear to be
reasonable in this situatio
TABLE 7:

Rate the following parameters on the basis of satisfaction

regarding your 150cc bike.

(VD-very dissatisfied, N-neutral, VS-very

satisfied)

Feature

Very

Dissatisfied Neutral

More mileage

dissatisfied
1
2

13

23

Satisfied
11
50

Power
Better comfort
Good Looks
Price
Ruggedness
After Sale

2
6
2

1
1
5
15
7
8

4
15
10
11
9
12

25
17
15
14
18
13

18
17
20
10
10
15

50
50
50
50
50
50

Service
Resale value

12

14

18

12

50

Factor analysis Test

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
Sampling Adequacy.
Bartlett's Test of Approx. Chi-

.671
68.372

70

Satisfied Very

Total

Sphericity

Square
df
Sig.

28
.000

In this table the null hyphpthesis is rejected by the Bartletts test of sphericity.The
approximate chi-square is 68.372 with 28 degree of freedom. Which significant at
the 0.05 level. The value of KMO statistic .671 is >.5 Thus a factor analysis may
be considered an appropriate technique for analyzing the correlation matrix.
Communalities
Extracti
on

Initial
VAR000
1.000
.627
01
VAR000
1.000
.636
02
VAR000
1.000
.650
03
VAR000
1.000
.834
04
VAR000
1.000
.242
05
VAR000
1.000
.724
06
VAR000
1.000
.648
07
VAR000
1.000
.689
08
Extraction Method: Principal Component Analysis.

Extraction Method: Principal Component Analysis.

This Table shows the application of principal component analysis. Under
communalities initial column show that the communality for each variable v1 to
v8 is 1.00 the eigenvalues for the factors are expected in decreasing order of
magnitude as go from factor 1 to factor 8. Total eigenvalue for a factor indicate
the total variance attributed to that factor.

71

Communality: It is the amount of variance a variable shares with all the other
variables being considered. This is also the proportion of variance explained by
the common factors.
Eigenvalue: The eigenvalue represents the total variance explained by each
factor

Total Variance Explained

Initial Eigenvalues
Compone
% of
Cumulative
nt
Total
Variance
%
1
2.562
32.021
32.021
2
1.413
17.660
49.681
3
1.075
13.438
63.119
4
.909
11.359
74.479
5
.676
8.455
82.934
6
.500
6.246
89.179
7
.466
5.826
95.006
8
.400
4.994
100.000
Extraction Method: Principal Component Analysis.

Rotation Sums of Squared

Loadings
% of
Cumulative
Total
Variance
%
2.005
25.068
25.068
1.918
23.978
49.046
1.126
14.073
63.119

In This Table the total variance accounted for by all the factors is 8, which is
equal to the number of variables. Factor 1 account for a variance of 2.005, which
is 25.068 percent of the total variance. Likewise the second factor accounts for
49.046 percent of the total variance and the first 3 factors combined account for
63.119 percent of the total variance According to this only those factors with
eigenvalues greater than 1.00 are retained; the other factors are not included in
the model. An eigenvalue represents the amount of variance associated with the
factor. Hence only factors with a variance greater than 1.0 are included. Factors
with variance less than 1.0 are no better than a single variable. So we can see
that the eigenvalue >1.0 result in 3 factors being extracted. This means that
Respondent satisfaction level lies on three factors most regarding their 150cc
bike.

72

Rotated Component Matrix (a)

VAR000
01
VAR000
02
VAR000
03
VAR000
04
VAR000
05
VAR000
06
VAR000
07
VAR000

Component
1
2

.788

-.026

-.072

.747

.277

.044

.729

-.006

.344

.889

.184

.094

.365

.219

-.246

.314

.739

-.280

. 761

.194

.179

.796
-.130
.195
08
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 5 iterations.

This is an important output from factor analysis. This matrix contains the
coefficients used to express the standardized variables in term of the factors.
These coefficients represent the correlation between the factors and the
73

variables. A coefficient with a large absolute value indicates that the factor and
variables are closely related. Although unrotated factor matrix indicate the
relationship between the factors and individual variables.
Component Transformation Matrix
Compone
nt
1
2
3
1
.718
.675
.168
2
-.696
.700
.160
3
-.010
-.232
.973
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
1) V 01 is related to product feature factor such as
More mileage
Power
Good looks
This variable rank first because of variance %
2) V 02 is related price related factor such as
Price
Resale value
This variable rank second, it has lower variance % than V 01
3) V 01 is related to reliability factor such as
After sale service
Comfort
Ruggedness
This variable ranked third according to the variance %

74

S
c
reP
lo
t

E
ig
e
n
v
a
lu
e

.2
2
5
.1
0
.1
5
.0
0
.5123C
4
5
6
7
8
o
m
p
o
n
etN
u
m
b
e
r

A scree plot is a plot of the eigenvalue against the number of factors in order of
extraction. The shape of the plot is used to determine the number of factors
.Typically the plot has a distinct break between the steep slope of factors, with
large eigenvalue and a gradual trailing off associated with the rest of the factors.
Evidence indicates that the point at which the scree begins denotes the true
number of factors. From the scree plot a distinct break occur at four factors.
Finally from the cumulative percentage of variance accounted for, we can see
that the first three factors account for 63.119 % of the variance, and the gain
achieved in going to three factors is marginal. This situation indicates that these
three factors are appropriate. Thus these three factors appear to be reasonable
in this situation

75

TABLE 8: Are you satisfied with bike you own?

S.NO
Yes
No
Total

No of respondent
45
5
50

Percentage
90
10
100

This table indicates that 90% of Respondent satisfied with their bike of 150cc and
10% are dissatisfied

76

TABLE 9: Will you recommend your nears and dears to purchase this bike
that you have?

S.NO
Yes
No
Total

No of respondent
37
13
50

Percentage
74
26
100

This table indicates that 74% are recommend their nears and dears to purchase
this bike and 26% are not recommended which shoes that large part of the
Respondent satisfied with their 150cc bike

77

TABLE 10: Will you go for another bike in future?

S.NO
Yes
No
Total

No of respondent
22
28
50

Percentage
44
56
100

This table shows that 56% go for another bike in future and 44% say no
Because Respondent want new bike with extra feature and high power

78

FINDINGS

79

In this chapter, a brief summary of the study have been presented, so as to

understand the implications of the findings.
The present research endeavored to study consumer satisfaction towards 150 cc
motorcycles. The objectives of the research were to identify the attributes
considered while purchasing the selected brands of 150 cc motorcycles and to
compare selected brands of 150 cc motorcycles on basis of these attributes.
The motorcycles available for the study were Bajaj Pulsar, Hero Honda
Achiever/CBZ, Honda Unicorn and TVS Apache. The study was confined to
Chandigarh and mohali. The population to be covered was the owners of
selected brands of 150 cc motorcycles in these cities. The sample consisted of
50 respondents of each brand of 150 cc motorcycles. Data were collected on the
basis of a structured and undisguised questionnaire. The information collected
were analyzed by using simple statistical tools such as percentages, weighted
mean scores, etc. The major findings of the study are described in the next
section.
5.1 Summary
There is a great association between ages, occupation and education. The
factors leading to need arousal for 150 cc motorcycles were identified as
availability of better pick up and elegant appearance as compared to the other
motorcycles in different segments. The main source of information about the
motorcycle has been the media both print and electronic. As for Bajaj Pulsar it
has been its media and word of mouth and for the latest motorcycle in this
segment TVS Apache it has been only the Media. A motorcycle was pick up
(4.32), then came styling and fuel efficiency. The image of Bajaj Pulsar and TVS
Apache is much more consistent with the consumers that they are meeting with
the requirements of latest technology. Main attributes of different brands as
perceived

by

respondents:

Bajaj

Pulsar

(Brand

Image,

Performance,

Technology), Hero Honda (CBZ Price, Technology), Honda Unicorn (Brand

image, Price), TVS Apache (Style, Performance). About 54% of users of 150 cc
motorcycles perceive the actual performance of their vehicle to be near to the
image posed by the companies about their product which includes 54% of Bajaj

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Pulsar, 34% of Hero Honda. The level of satisfaction onto the different factors
given by respondents is that the most satisfied owners in case of pickup are the
owners of Bajaj Pulsar, in case of appearance and design the most satisfied are
the owners of TVS Apache, in case of comfort, after sales service and
maintenance Pulsar leads the race and in case of fuel efficiency, the most
satisfied are the owners of TVS Apache. Better fuel efficiency, pickup and styling
are the three major future improvements wanted by the consumers. In case of
Bajaj Pulsar consumers want more fuel efficiency and better pricing, Hero Honda
needs a complete revamp of its style and pick up, unicorn needs better styling,
fuel efficiency and pick up and at the last TVS Apache needs improvement in fuel
efficiency.

81

CONCLUSION

82

Ranking of 150 cc motorcycles on the basis of survey conducted is in the

following order:
i.

Bajaj Pulsar

ii.

Hero Honda CBZ

iii.

TVS Apache

iv.

Hero Honda hunk

v.

Honda Unicorn

The most satisfied owners in case of pickup are the owners of Bajaj Pulsar, i in
case of comfort, after sales service and maintenance Pulsar leads the race and i.
44% of the respondent influence by power of bike while purchasing
, 26% of Respondent influenced by price and 18% of Respondent are influenced
by Mileage. The level of satisfaction onto the different factors given by
respondents is that the most satisfied owners in case of pickup are the owners of
Bajaj Pulsar,

It is suggested that manufacturer should make all efforts to increase mileage.

New technology should be applied according to the requirement of the

customer.

Provide various schemes which attract the customers.

Insurance
Free works shop

Spare parts of the bikes should be easily available in the market.

Bike should be fuel efficient.

Bike should be given more look and style.

83

BIBLIOGRAPHY

84

Library: references
Research Methodology Methods & Techniques
.N K Malhotra
Axelrod and Wybenga (1985) in their study on perceptions
Carpenter and Nakamoto (1989) pioneering advantage
Marketing Management: PHILIP KOTLER,
Ofir and Simonson (2001) customer evaluations of quality and satisfaction
Tamizhselvan and Vijay Kumar (2002) analyzed the significance of personal
characteristics
Erdem and Swait (2004) role of brand credibility (trustworthiness and expertise)
www.google.com
1.

http://www.tvsapache.com/home.aspx

2.

http://www.bajajauto.com/pulsar/

3.

http://auto.indiamart.com/motorcycles/

4.

www.google.com

5.

www.Hero Honda .com

85

ANNEXURE

86

1)

Do you own a bike of 150cc?

Yes

2)

No

Which Brand of 150cc bike you have? Please specify the model in the
given table?
Brand Name

Model

Hero Honda
Bajaj
YAMAHA
TVS
Honda
Suzuki
LML

3) Which factor of bike influence you to purchase this particular bike

only?

4)

Mileage

Power

Looks

Price

Comfort

others

How you gathered information about the bike you bought?

TV ads
Newspaper

magazines
Relatives/friends

87

Hoardings
others

5)

Rate the feature as usage value in your bike? Please tick

Very
Importan
FEATURES important t

Least
neutral Not
important
important

More
Mileage
Power
Better
comfort
Good
Looks
Easy
availability
Disc brakes

6) Rate the following parameters on the basis of satisfaction

regarding your 150cc bike. (VD-very dissatisfied, N-neutral, VS-very
satisfied)
VD D

VS

More Mileage

Power

Better comfort

Good Looks

Price

Ruggedness

After sale service

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Resale value

7)

Are you overall satisfied with the bike you own?

Yes

8)

No

Will you recommend your nears and dears to purchase this bike that
You have?
Yes

9)

No

Will you go for another bike in your future, if yes tell why?
________________________

Personal Details:
Name:

___________________________

Age:

15-25years
36-45 years

Occupation:

____________________

Contact no. :

____________________

89

26-35years
45 years and above