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Consumer Behavior

Research Project review


On
A STUDY OF CONSUMER BEHAVIOUR TOWARDS
MARUTI CARS

Group no. 6

Submitted By (Group no):


Chinmay Bobra 151411
Debashish Choudhury 151413
Deepak Meena 151414
Dil Shah 151415
Himanshu Patel - 151419

Submitted on: September 2, 2016

1 | Consumer behaviour towards Maruti cars

ACKNOWLEDGEMENT
We have taken efforts in this Consumer Behaviour group assignment. However, it would not
have been possible without the kind support and help of institute.
We take this opportunity to express our profound gratitude and deep regards to Prof. Jayesh
Aagja for his exemplary guidance, monitoring and constant encouragement throughout the
course.
Lastly, we would like to express our gratitude towards Institute of Management, Nirma
University for their kind support and encouragement which helped our group in completion
of this Consumer Behaviour group assignment.
Chinmay Bobra 151411
Debashish Choudhury 151413
Deepak Meena 151414
Dil Shah 151415
Himanshu Patel - 151419

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Contents\
Executive summary:...................................................................................................................4
Indian Automobile Industry-An Overview................................................................................6
Market Size................................................................................................................................9
Government Initiatives.............................................................................................................10
MARUTI SUZUKI INDIA LTD. - Company History.............................................................11
Consumer Behaviour: Introduction..........................................................................................14
Major factors affecting the consumer behavior:......................................................................19
Literature Review:....................................................................................................................23
ANALYSIS OF SURVEY........................................................................................................26
INTERVIEWS..........................................................................................................................37
Conclusion:..............................................................................................................................43

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Executive summary:
Title:
The Study of Consumer buying behavior to Maruti Suzuki India ltd.
Issue:
Consumer behaviour is the mental and emotional processes and the observable behaviour of
consumers during searching purchasing and post consumption of a product and service.
People buy different products from different brands to satisfy their needs. Consumer
purchases are influenced strongly by cultural, social, personal and psychological
characteristic. Although marketers cannot control such factors, they must give attention to
them. Boston Analytics, a customized knowledge services company, has announced the
release of its Automotive Industry in India report as a part of the series of monthly reports
that analyze consumer observations and sentiments regarding a automotive sector. According
to this report consumer think about the following aspect while making decision of purchase a
car:
OBJECTIVE OF THE STUDY
The basic objective of the project during the research and study will be focused on the
following parameters:

To know consume preference regarding small cars


To know what features and services attract the customers
Effect of brand image in buying behavior
Effect of family &friends in buying behavior (Focus group)

RESEARCH METHODOLOGY
Consumer behavior has always been interesting area of study in marketing field. To identify
what drives consumer to buy certain product, brands or services it is necessary to know what
that product/brand or services is meant to them. To identify these factors, we have carried out
certain activities to identify the factors affecting consumer behavior.

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Our research title is to find out factors affecting consumer behavior towards purchasing
Maruti Suzuki cars. Apart from study of the theoretical framework we also carried out other
activities to identify that we will carry on following steps.
Literature Review regarding the topic of study
a. We are carrying literature review on automobile segment especially research
paper published on the Consumer Behavior towards Maruti Suzuki. It will
help us in identifying the consumer perception towards the brand as well
understanding of how typical consumer behave while purchasing cars. Since,
Car purchase involved lot of attention from consumer it is important to
identify what are the features or satisfaction stimuli he is looking for while
buying a car. There may be difference in the behavior for different segment
however it is still unclear that what are the basic factors that affect in any
segment.
Survey through questionnaire
b. We are conducting survey through questionnaire. Our sample size is 50 for the
survey. The sample is chosen on certain criteria such as a sample must have
following criteria.
i. He/She must have at least one Maruti Suzuki car.
ii. The car purchased must be first hand and not second hand.
iii. Sample must vary from age group of 21 to 60 years of age.
Survey through Phone/Skype interview
c. We are also conducting interview for thorough learning of the consumer
behavior. For that we identify the loyal customers of Maruti Suzuki and
conduct interviews via phone/WhatsApp/skype or any other mean that can be
helpful in conductive such interactive interview. We are targeting 5 such
people from different background as well as different age, gender, income
group and other factors if possible.

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Indian Automobile Industry-An Overview


The Indian Automobile Industry is among the largest and the fastest growing in the world. It
is also one of the key economic drivers of the country and since the liberalisation of the
economy in 1991 to the recent opening up of 100 percent FDI, the industry has come a long
way. It accounts for 7.1 per cent of the country's GDP and in 2014-15, around 31 per cent of
small cars sold globally were manufactured in India. The world standing for the Indian
automobile sector is as follows:

Largest three-wheeler market

Second largest two-wheeler market

Fourth largest tractor market

Fifth largest commercial vehicle market

Fifth largest bus and truck segment, and,

Tenth largest passenger car market

Category

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

Passenger

25,01,542

26,29,839

26,65,015

25,03,509

26,01,236

27,89,678

6,84,905

8,09,499

7,93,211

6,32,851

6,14,948

6,85,704

5,26,024

5,13,281

5,38,290

4,80,085

5,32,626

5,38,092

Vehicles

Commerci
al Vehicles

Three
Wheelers

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Two

1,17,68,91

1,34,09,15

1,37,97,18

1,48,06,77

1,59,75,56

1,64,55,91

Wheelers

Grand

1,54,81,38

1,73,61,76

1,77,93,70

1,84,23,22

1,97,24,37

2,04,69,38

Total

Table 1: Automobile Domestic Sales Trends


The sales in the domestic market has been increasing continuously across all the segments of
the industry. This has been driven by the increasing disposable income, easy availability of
loans, nuclear family lifestyle, etc.

Category

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

Passenger

4,44,326

5,08,783

5,59,414

5,96,142

6,21,341

6,53,889

74,043

92,258

80,027

77,050

86,939

1,01,689

Three Wheelers

2,69,968

3,61,753

3,03,088

3,53,392

4,07,600

4,04,441

Two Wheelers

15,31,619 19,75,111 19,56,378 20,84,000 24,57,466 24,81,193

Grand Total

23,19,956 29,37,905 28,98,907 31,10,584 35,73,346 36,41,212

Vehicles
Commercial
Vehicles

Table 2: Automobile Exports Trends


India is also among the fastest growing exporters of automobiles in the world. Earlier Indian
automobiles were considered to be sub-standard but with the advent of many top players of
the Industry from across the globe, the perception of the international consumers towards the
Indian automotive brands is changing fast and many big players of the Industry are
considering India to be the next manufacturing hub.
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Category

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

Passenger

29,82,772

31,46,069

32,31,058

30,87,973

32,21,419

34,13,859

9,29,136

8,32,649

6,99,035

6,98,298

7,82,814

7,99,553

8,79,289

8,39,748

8,30,108

9,49,019

9,33,950

Two

1,33,49,34

1,54,27,53

1,57,44,15

1,68,83,04

1,84,89,31

1,88,29,78

Wheelers

Grand

1,78,92,40

2,03,82,02

2,06,47,61

2,15,00,16

2,33,58,04

2,39,60,40

Total

Vehicles
Commercia 7,60,735
l Vehicles
Three
Wheelers

Table 3: Automobile Production Trends

Fig 1

Market Size

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Sales of Passenger Vehicles (PV) grew by 11.04% in April 2016 and was primarily driven by
demand for the utility vehicles. Sales of Commercial Vehicles (CV) grew by 17.36 %. The
two-wheeler industry also performed well. While sales of scooters increased by 35.86 %, the
demand for motorcycles shot up by a strong 16.24 %.

Fig 2: Domestic Market Share


Domestic Market Share for 2015-16
Passenger Vehicles

14

Commercial Vehicles

Three Wheelers

Two Wheelers

80

Grand Total

100

Table 4

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Government Initiatives
The Government of India understands the potential of the industry both in terms of the share
in GDP and its employment generating power and thus encourages the growth of the sector.
The Industry enjoys 100 % FDI and has seen many world manufactures coming to the
country.
Some of the major initiatives taken by the Government are:

The Indian Government has announced its plans to set up a separate independent
Department for Transport, comprising of experts from the automobile sector to
resolve issues such as those related to fuel technology, motor body specifications and

fuel emissions, apart from exports.


Government of India aims to make automobile manufacturing the main driver of
Make in India initiative, as it expects passenger vehicles market to triple to 9.4

million units by 2026, as highlighted in the Auto Mission Plan (AMP) 2016-26.
In the Union budget of 2015-16, the Government has announced to provide credit of
Rs 850,000 crore (US$ 124.71 billion) to farmers, which is expected to boost the

tractors segment sales.


The Government plans to promote eco-friendly cars in the country i.e. CNG based
vehicle, hybrid vehicle, and electric vehicle and also made mandatory of 5 per cent

ethanol blending in petrol.


The government has formulated a Scheme for Faster Adoption and Manufacturing of
Electric and Hybrid Vehicles in India, under the National Electric Mobility Mission
2020 to encourage the progressive induction of reliable, affordable and efficient

electric and hybrid vehicles in the country.


The Automobile Mission Plan (AMP) for the period 20062016, designed by the
government is aimed at accelerating and sustaining growth in this sector. Also, the
well-established Regulatory Framework under the Ministry of Shipping, Road
Transport and Highways, plays a part in providing a boost to this sector.

MARUTI SUZUKI INDIA LTD. - Company History


Maruti Suzuki India Ltd. is India's largest passenger car company and accounts for over 50%
of the domestic car market and is a subsidiary of Suzuki Motor Corporation, Japan. It majorly
deals in the business of manufacturing, purchase and sale of motor vehicles and spare parts.
The other activities of the company include retail chain of pre-owned car sales, fleet
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management and car financing. The company has four plants in India, out of which three are
located at Palam-Gurgaon Road and one at Manesar Industrial Town, Gurgaon.
The subsidiary companies are:

Maruti Insurance Business Agency Ltd,


Maruti Insurance Distribution Services Ltd,
Maruti Insurance Agency Solutions Ltd,
Maruti Insurance Agency Network Ltd,
Maruti Insurance Agency Services Ltd,
Maruti Insurance Agency Logistics Ltd and
True Value Solutions Ltd.

The first six are in the business of selling motor insurance policies to owners of Maruti
Suzuki vehicles and seventh one is in the business of sales of certified pre-owned cars under
the brand 'Maruti True Value'.
Maruti Timeline
February 24, 1981
Maruti Suzuki India Ltd., then Maruti Udyog Ltd., started as a government company, with
Suzuki being a minor partner. It was setup by the then government to manufacture small cars
for the Indian consumers. Over the years, the company's product range has widened and the
ownership has changed hands and the customers have changed.
October 2, 1982: The company signed a license and a joint venture agreement with Suzuki
Motor Corporation, Japan.
1983: The company launched its first product - Maruti 800, which was a huge success in the
Indian market.
1987: The company forayed into the foreign market by exporting first lot of 500 cars to
Hungary.
1990: The company launched India's first Sedan.
1992: Suzuki Motor Corporation, Japan increased their stake in the company to 50%.
1995: The company commenced their second plant.
1997: They started Maruti Service Master as model workshop in India to look after sales
services.
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1999: The third plant with new technology became operational.


2002: Suzuki Motor Corporation increased their stake in the company to 54.2%.. The
company started 10 finance companies of which eight were under its brand name of Maruti
and the remaining two were Joint Ventures. In addition to this they also ventured into a new
business segment of used car sales, purchase and trade.
2006-07: Started the operations of the new plant at Manesar and Driving Training and
Research (IDTR) in collaboration with the Delhi Government.
2007-08: The company signed an agreement with the Adani group for exporting 200,000
units annually from the Mundra port in Gujarat. The company changed its name to Maruti
Suzuki India Ltd. The company also entered into three joint venture agreements, one with
Magneti Marelli Powertrain SpA and formed Magneti Marelli Powertrain India Pvt Ltd for
manufacturing Electric Control Units, second with Futaba Industrial Co Ltd and formed FMI
Automotive Components Ltd for manufacturing Exhaust Systems Components and the third
one with Shriram City Union Finance Ltd. to offer car finance to its customers, particularly
living in semi urban and rural areas.
2008: Raised their production capacity to a 1 million cars.
2009: Started selling in the European Union by first launching its A-star model at the Geneva
Motor Show.
2011: Launched the India's first sports luxury sedan, Suzuki Kizashi. Apart from launching
new products, the company added 131 new sales outlets to reach 933 outlets in 668 cities and
increased its service reach to 1,395 cities with 2,946 outlets. The company's network is now
servicing about 1.2 million vehicles every month.
2014: The company plans to set up Rs 1700 crore diesel engine plant at Gurgaon and double
the diesel engine capacity to six lakh units by 2014.
Product range of the company includes:

Maruti Alto 800


Omni
Gypsy
Zen Estilo
Wagon R
Versa

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A Star
Ritz
SX4
Dzire
Grand Vitara
Ertiga
Celerio

Consumer Behaviour: Introduction


It is the study of when, why, how, where and what people do or do not buy products. It blends
elements from psychology, sociology, social, anthropology and economics. It attempts to
understand the buyer decision making process, both individually and in groups. It also tries to
assess influences on the consumer from groups such as family, friends, reference groups, and
society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset
for customer behaviour analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
management, personalization, customization and one-to-one marketing. Marketing provides
services in order to satisfy customers. With that in mind, the productive system is considered
from its beginning at the production level, to the end of the cycle, the consumer
The study of consumers helps firms and organizations improve their marketing strategies by
understanding issues such as how

The psychology of how consumers think, feel, reason, and select between different

alternatives (e.g., brands, products);

The psychology of how the consumer is influenced by his or her environment (e.g.,

culture, family, signs, media);


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The behaviour of consumers while shopping or making other marketing decisions;

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome;

in

How consumer motivation and decision strategies differ between products that differ
their level of importance or interest that they entail for the consumer; and
How marketers can adapt and improve their marketing campaigns and marketing

strategies to more effectively reach the consumer.


One "official" definition of consumer behavior is "The study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose of products,
services, experiences, or ideas to satisfy needs and the impacts that these processes have on
the consumer and society."
Steps of Consumer Behaviour
The first step is problem recognitionyou realize that something is not as it should be.
Perhaps, for example, your car is getting more difficult to start and is not accelerating well.
The second step is information searchwhat are some alternative ways of solving the
problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus,
ride a taxi, or ride a skateboard to work.
The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be
ill-suited for long distances and for rainy days.
Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a
product to the store because you did not find it satisfactory). In reality, people may go back
and forth between the stages. For example, a person may resume alternative identification
during while evaluating already known alternatives.
Consumer involvement will tend to vary dramatically depending on the type of product. In
general, consumer involvement will be higher for products that are very expensive (e.g., a
home, a car) or are highly significant in the consumers life in some other way (e.g., a word
processing program or acne medication).
It is important to consider the consumers motivation for buying products. To achieve this
goal, we can use the Means-End chain, wherein we consider a logical progression of
consequences of product use that eventually lead to desired end benefit. Thus, for example, a
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consumer may see that a car has a large engine, leading to fast acceleration, leading to a
feeling of performance, leading to a feeling of power, which ultimately improves the
consumers self-esteem. A handgun may aim bullets with precision, which enables the user
to kill an intruder, which means that the intruder will not be able to harm the consumers
family, which achieves the desired end-state of security. In advertising, it is important to
portray the desired end-states. Focusing on the large motor will do less good than portraying
a successful person driving the car.
Information search and decision making. Consumers engage in both internal and external
information search.
Internal search involves the consumer identifying alternatives from his or her memory. For
certain low involvement products, it is very important that marketing programs achieve top
of mind awareness. For example, few people will search the Yellow Pages for fast food
restaurants; thus, the consumer must be able to retrieve ones restaurant from memory before
it will be considered. For high involvement products, consumers are more likely to use an
external search. Before buying a car, for example, the consumer may ask friends opinions,
read reviews in Consumer Reports, consult several web sites, and visit several dealerships.
Thus, firms that make products that are selected predominantly through external search must
invest in having information available to the consumer in neede.g., through brochures, web
sites, or news coverage.
A compensatory decision involves the consumer trading off good and bad attributes of a
product.

For example, a car may have a low price and good gas mileage but slow

acceleration. If the price is sufficiently inexpensive and gas efficient, the consumer may then
select it over a car with better acceleration that costs more and uses more gas. Occasionally,
a decision will involve a non-compensatory strategy. For example, a parent may reject all
soft drinks that contain artificial sweeteners. Here, other good features such as taste and low
calories cannot overcome this one non-negotiable attribute.
The amount of effort a consumer puts into searching depends on a number of factors such as
the market (how many competitors are there, and how great are differences between brands
expected to be?), product characteristics (how important is this product? How complex is the
product? How obvious are indications of quality?), consumer characteristics (how interested
is a consumer, generally, in analysing product characteristics and making the best possible
deal?), and situational characteristics (as previously discussed).
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Two interesting issues in decisions are:

Variety seeking (where consumers seek to try new brands not because these brands

are expected to be better in any way, but rather because the consumer wants a change of
pace, and

Impulse purchasesunplanned buys. This represents a somewhat fuzzy group.

For example, a shopper may plan to buy vegetables but only decide in the store to actually
buy broccoli and corn. Alternatively, a person may buy an item which is currently on sale, or
one that he or she remembers that is needed only once inside the store.
A number of factors involve consumer choices.
In some cases, consumers will be more motivated. For example, one may be more careful
choosing a gift for an in-law than when buying the same thing for one self. Some consumers
are also more motivated to comparison shop for the best prices, while others are more
convenience oriented.
Personality impacts decisions.
Some like variety more than others, and some are more receptive to stimulation and
excitement in trying new stores.
Perception influences decisions. Some people, for example, can taste the difference between
generic and name brand foods while many cannot. Selective perception occurs when a
person is paying attention only to information of interest. For example, when looking for a
new car, the consumer may pay more attention to car ads than when this is not in the horizon.
Some consumers are put off by perceived risk. Thus, many marketers offer a money back
guarantee.
Family Decision Making.
Individual members of families often serve different roles in decisions that ultimately draw
on shared family resources. Some individuals are information gatherers/holders, who seek out
information about products of relevance. These individuals often have a great deal of power
because they may selectively pass on information that favors their chosen alternatives. The
decision maker(s) have the power to determine issues such as:

Whether to buy;

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Which product to buy (pick-up or passenger car?);

Which brand to buy;

Where to buy it; and

When to buy.

It should be noted that family decisions are often subject to a great deal of conflict. Note that
many decisions inherently come down to values, and that there is frequently no "objective"
way to arbitrate differences. One spouse may believe that it is important to save for the
childrens future; the other may value spending now (on private schools and computer
equipment) to help prepare the children for the future. Who is right? There is no clear answer
here.
Some family members may resort to various strategies to get their way. One is bargaining
one member will give up something in return for someone else. For example, the wife says
that her husband can take an expensive course in gourmet cooking if she can buy a new
pickup truck. Alternatively, a child may promise to walk it every day if he or she can have a
hippopotamus. Another strategy is reasoningtrying to get the other person(s) to accept
ones view through logical argumentation. Note that even when this is done with a sincere
intent, its potential is limited by legitimate differences in values illustrated above. Also note
that individuals may simply try to "wear down" the other party by endless talking in the guise
of reasoning (this is a case of negative reinforcement as we will see subsequently).

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Major factors affecting the consumer behavior:


There are many factors in consumer behavior. However, following are the factors we are
mainly focusing for the purpose.
Cultural factors:
Cultural factors are coming from the different components related to culture or cultural
environment from which the consumer belongs.
a. Culture and societal environment:
Culture is crucial when it comes to understanding the needs and behaviors of an individual.
For a brand, it is important to understand and take into account the cultural factors inherent to
each market or to each situation in order to adapt its product and its marketing strategy. As
these will play a role in the perception, habits, behavior or expectations of consumers.
b. Sub-cultures :
A society is composed of several sub-cultures in which people can identify. Subcultures are
groups of people who share the same values based on a common experience or a similar
lifestyle in general. Subcultures are the nationalities, religions, ethnic groups, age groups,
gender of the individual, etc. The subcultures are often considered by the brands for the
segmentation of a market in order to adapt a product or a communication strategy to the
values or the specific needs of this segment.
Social classes:
Social classes are defined as groups more or less homogenous and ranked against each other
according to a form of social hierarchy. Even if its very large groups, we usually find similar
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values, lifestyles, interests and behaviors in individuals belonging to the same social class.
We often assume three general categories among social classes: lower class, middle class and
upper class. According to some researchers, behavior and buying habits would also be a way
of identification and belonging to its social class and so is important to consider while
researching.
c. Cultural trends:
Cultural trends or Bandwagon effect are defined as trends widely followed by people and
which are amplified by their mere popularity and by conformity or compliance with social
pressure. The more people follow a trend, the more others will want to follow it. They affect
behavior and shopping habits of consumers and may be related to the release of new products
or become a source of innovation for brands.
Social factors
Social factors are among the factors influencing consumer behavior significantly. They fall
into three categories: reference groups, family and social roles and status.
a. Reference groups and membership groups
The membership groups of an individual are social groups to which he belongs and which
will influence him. The membership groups are usually related to its social origin, age, place
of residence, work, hobbies, leisure, etc. he influences level may vary depending on
individuals and groups. But is generally observed common consumption trends among the
members of a same group. The understanding of the specific features (mindset, values,
lifestyle, etc..) of each group allows brands to better target their advertising message.
b. Family
The family is maybe the most influencing factor for an individual. It forms an environment of
socialization in which an individual will evolve, shape his personality, acquire values. But
also develop attitudes and opinions on various subjects such as politics, society, social
relations or himself and his desires. Perceptions and family habits generally have a strong
influence on the consumer buying behavior. People will tend to keep the same as those
acquired with their families.
c. Social roles and status

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The position of an individual within his family, his work, his country club, his group of
friends, etc.. All this can be defined in terms of role and social status. A social role is a set
of attitudes and activities that an individual is supposed to have and do according to his
profession and his position at work, his position in the family, his gender, etc.. and
expectations of the people around him.
Personal factors
Decisions and buying behavior are obviously also influenced by the characteristics of each
consumer.
d. Age and way of life
A consumer does not buy the same products or services at 20 or 70 years. His lifestyle, values
, environment, activities, hobbies and consumer habits evolve throughout his life. For a brand
or a retailer, it may be interesting to identify, understand, measure and analyze what are the
criteria and personal factors that influence the shopping behavior of their customers in order
to adapt.
e. Purchasing power and revenue
The purchasing power of an individual will have, of course, a decisive influence on his
behavior and purchasing decisions based on his income and his capital. As for social status,
some consumers may also look for the social value of products they buy in order to show
external indications of their incomes and their level of purchasing power.
f. Lifestyle
The lifestyle of an individual includes all of its activities, interests, values and opinions. The
lifestyle of a consumer will influence on his behavior and purchasing decisions.
g. Personality and self-concept
Personality is the set of traits and specific characteristics of each individual. It is the product
of the interaction of psychological and physiological characteristics of the individual and
results in constant behaviors.
Psychological factors
Among the factors influencing consumer behavior, psychological factors can be divided into
4 categories: motivation, perception, learning as well as beliefs and attitudes.
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h. Motivation
Motivation is what will drive consumers to develop a purchasing behavior. It is the
expression of a need is which became pressing enough to lead the consumer to want to satisfy
it. It is usually working at a subconscious level and is often difficult to measure.
i. Perception
Perception is the process through which an individual selects, organizes and interprets the
information he receives in order to do something that makes sense. The perception of a
situation at a given time may decide if and how the person will act. Depending to his
experiences, beliefs and personal characteristics, an individual will have a different
perception from another.
j. Learning
Learning is through action. When we act, we learn. It implies a change in the behavior
resulting from the experience. The learning changes the behavior of an individual as he
acquires information and experience.
k. Beliefs and attitudes
A belief is a conviction that an individual has on something. Through the experience he
acquires, his learning and his external influences (family, friends, etc..), he will develop
beliefs that will influence his buying behavior.

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Literature Review:
Maruti Suzuki Tops Power Customer Satisfaction Survey
The study measures overall satisfaction in five factors service quality, vehicle pick-up,
service advisor, service facility and service initiation. Car market leader Maruti Suzuki India
(MSI) has topped the after-sales customer service satisfaction among mass market brands for
a record 16th consecutive year, as per global market research firm. According to the JD
Power 2015 India Customer Service Index (CSI) Study, MSI with a score of 906, on a scale
of 1,000, performs well across all factors with greatest improvements in service initiation
followed by service facility. Honda Cars India, with a score of 880 ranked second and is the
most improved nameplate in the study. Hyundai Motor India and Tata Motors are tied at third
position. JD Power, Executive Director said: Vehicle manufacturers arent just servicing cars
today; theyre going the extra mile to provide an after-sales experience that is truly
memorable and satisfying for their customers. There is an increase in manufacturers that are
focused on delivering a high-quality after-sales experience to customers, he added. With
enhanced dealership facilities, better network reach and rigor in process implementation,
dealerships have been able to effectively manage and deliver on customer expectations,
Arora said. The study, now in its 19th year, examines satisfaction among vehicle owners who
visit an authorized dealership service center for maintenance or repair work between the first
12 to 24 months of vehicle ownership. The study measures overall satisfaction in five factors
service quality, vehicle pick-up, service advisor, service facility and service initiation. The
latest study is based on evaluations from 7,468 vehicle owners. The study was fielded from
May through August between May 2013 and August 2014. It found that overall service
satisfaction in the mass market segment improved by 10 points to 866 in 2015 from 856 in
2014. The increase is attributed to strong improvements across all factors, with the greatest
improvement in service initiation.
Marutis Royalty Payouts to Suzuki Extortive
Maruti Suzukis royalty payments to its Japanese parent Suzuki are extortive and the
amount paid has increased over six times per car sold over the past 15 years, according to a
report. Proxy advisory firm has said that royalty payments aggregated 5.7 per cent of net
sales and 36 per cent of profits before royalty in 201415. Over the past 15 years, royalty
paid to Suzuki, has grown 6.6x to Rs 21,415 per car sold, while average sales realization per
22 | Consumer behaviour towards Maruti cars

car has increased only 1.6x. While Suzukis consolidated R&D spend per vehicle averaged 4
per cent of sales, its royalty payments from Maruti are 6 per cent of net sales, The royalty is
typically charged for either the brand and or product technology. The basis for this charge is
that the global brands have been developed outside India, as is the product research and
technology. There is some merit to this argument, but the question is how much should be
claimed, the report said. After examining the Marutis royalty payouts in the context of
revenues, margins, and research and development (R&D) spends, It is said that Marutis
royalty payouts are extortive." According to the report, Suzukis R&D efforts do not appear
to aid Marutis margins or expansion. Maruti shareholders must ask the fundamental
question: what is the right amount of royalty that must be charged? Royalty is not Suzukis
indelible right it must explain its coercive charges on Marutis cash flow, it added. It is
also noted that Suzuki benefited enormously from its partnership with the Indian government
at a time when India was fiercely regulated, and displacing a largely monopolistic market was
not difficult.
A Study on Customer Satisfaction towards Maruti Suzuki in Coimbatore
Customer satisfaction is defined as the number of customers, or percentage of total
customers. Whose reported experience with a firm, its products, or its services exceeds
specified satisfaction goals. The study entitled customer satisfaction towards Maruti Suzuki
cars mainly focus on the satisfaction of customer to the Maruti Suzuki company for the
analysis of satisfaction from the 150 respondents are collected and it will be simple
percentage to know the various satisfaction in the features of cars. Consumers are most likely
to appreciate the goods and services they buy, provided if they are made to feel special. This
occurs when they feel that the goods and services that they buy have been specially produced
for them or for people like them.
Major objectives of the study were to study about the services provided by Maruti Suzuki
showroom in Coimbatore, to determine consumers awareness about various brands and
models of Maruti cars, to study about the customer satisfaction regarding the vehicles in the
Maruti Suzuki company, and To find out the customers opinion on cars in Maruti Suzuki,
Coimbatore.
Conclusion was that the Maruti Suzuki cars are the best and fast moving brands. Now a day
the demand for the cars by customer shows increasing trend, at the same time they expected

23 | Consumer behaviour towards Maruti cars

easy handling, safety and security, higher performance etc. Which makes the advanced
technologies and adopt new model.

A Study of Consumer Preferences & Attitude towards Passenger cars of Maruti Suzuki
Organizations today are getting to be client driven and exceedingly concentrating on fulfilling
their clients as they understood that in present ferocious rivalry, fulfilling and charming the
clients is exceptionally urgent. As a result of the steady change in necessities, desires and way
of life of clients, the vast majority of the organizations are in situation that how to fulfill the
clients and which procedure ought to be embraced. The same issues have seen by Indian car
industry. Indeed, even Maruti Suzuki the driving car mammoth in India is particularly
cognizant about comprehension the necessities and desires of the clients. The present study
tosses light on different elements identified with customer conduct and fulfillment. The goal
of this exploration paper is to know the inclinations and feelings of Maruti clients in regards
to after deals administration, resale esteem, and fuel effectiveness alongside client
inclinations while purchasing Maruti brands. The present study is engaging in nature and
helpful examining procedure has been embraced for selecting the shoppers. The essential
information has been gathered with the assistance of organized poll. The study uncovers that
the client's favored Maruti autos on parameters like fuel effectiveness, after deals
administration, resale esteem, accessibility of extra parts. The study reasons that appropriate
client care methodology assumes essential part in fulfilling and charming the clients.

24 | Consumer behaviour towards Maruti cars

ANALYSIS OF SURVEY
AGE

Count of 3. Age
25
20
15
10
5
0

26-35 years

36-50 years

Above 50 years

Below 25 years

As we can see from the survey here that Maruti cars do not pertain to any one age group.
This is mainly due to the fact that Maruti has an extremely wide product portfolio.It ranges
from sporty cars such as swift and family cars such as celerio and ertiga.

INCOME

Count of 6. Family Income per annum


Up to Rs.3, 00,000

Rs.5, 00,001-Rs.8, 00,000

Rs.3,00,001-Rs. 5,00,000

Above Rs.8, 00,001


0

25 | Consumer behaviour towards Maruti cars

10

15

20

25

The family income of a Maruti owner is mostly above 5 lacs, this is due to the fact that
purchasing a car is costly for lower classes, even though there are credit facilities available
now.
AWARENESS

This survey question lets us get to know through which forms do consumers get to know
about Maruti. It clearly depicts that noth internal and external environment is important as
buying a car in india is extremely associated with a major life event and all sources are
tapped for information.

PURCHASE INFLUENCERS

Who influenced your purchase decision of car?


30
25
20
15
10
5
0

Colleagues

Family

Friends

Self

As Maruti being a family based passenger vehicle, the main influencers of purchase is family.
26 | Consumer behaviour towards Maruti cars

A car purchase for a household is not only done by the purchase decision maker but the entire
family infact, as we see even while gathering information eg. It is the entire family that goes
for test drives that the person driving the car himself.

CAR OWNED

Total
9
8
7
6
5
4
3
2
1
0

These are the different cars owned by the people surveyed.


Looking at the graphs it is Swift, WagonR and Alto 800 which are the most preferred.

27 | Consumer behaviour towards Maruti cars

Total

1.

Please mark the extent to which the following factors influenced your purchase decision.

S.
N

Attributes

Minor

Fair

Influen

Influenc

ce

Occasionall
y influence

More

Major

Influen

Influenc
e
9

o.
1.

Maintenance Cost

10

12

ce
12

2.

Price Range

22

3.

Family members

17

4.

Fuel consumption

16

18

5.

Style

18

21

6.

Appearance and Comfort

11

15

22

7.

After sales service

11

30

8.

Engine power

11

32

9.

Safety feature

11

19

10

Availability of spare parts

11

21

.
11. Nearest service station

10

20

11

12

Resale value

14

21

.
13

Free Gift/offers

16

17

11

.
14

Latest technology

12

26

.
15

Brand image

25

11

.
16

Social status

20

11

.
As we have asked 50 responded in our survey that which of the following factors influenced
your purchase decision. We gave them five choices for their answer. Those are Minor
Influence, Fair Influence, Occasionally influence, More Influence and Major Influence.

Maintenance Cost - When it comes to maintenance cost out of 50 responded for majority of
them it was Occasionally influencing and More Influencing as equally response came to both
28 | Consumer behaviour towards Maruti cars

of the factor i.e. 12. So maintenance cost can change a consumers decision regarding buying
a car for his own.
Price Range Price is one of the major factors as this is decided by their purchasing factor.
And here when we saw responses around 50% of the responded choose More influencing as
their answer.
Family members Number of members in family defines which type of car you should buy.
Whether to buy a SUV or a small car. Here majority of responded choose Occasionally
influence as their answer.
Fuel consumption Fuel consumption play important role is selecting a car. Here majority
of the responded kept it in high priority.
Style Even stylish car make with good looks plays important role which made 21 of the
responded to select it as Major Influence.
Appearance and Comfort - Appearance and Comfort is on same level as stylish car. Here
also 22 of the responded to select it as Major Influence factor.
After sales service when it comes to After sales service it seems like no one want
compromise on this factor. 30 responded select it as Major Influence factor.
Engine power - Engine power also comes on top. Which made 32 responded to select it as
Major Influence factor.
Safety feature in India consumer doesnt seems to give Safety as priority factor while
purchasing a car. Thats because majority of responded i.e. 19 selected it as Occasionally
influencing factor.
Resale value - When we buy a car we always look for its resale value because we are not
going to use that one car for life time and makes our future cars purchase easier. Our
respondent kept it on More influencing(21 out of 50 choose it).
Brand image Brand image gives you trustworthiness and helps you in choosing a car of
particular brand over other brands. Here responses show that it is More influence to consumer
because 25 out of 50 considered it.
Social status - Social status doesnt seems to affect more when deciding on which car to
buy. Respondents kept it on Occasionally influence. It can be clearly seen as 20 respondent
choose this option.

29 | Consumer behaviour towards Maruti cars

2.

Level of satisfaction of consumers about After purchase experience of Maruti cars.


Please indicate by tick mark in the relevant column against each item.
HS Highly Satisfied

S Satisfied

dissatisfied DS Dissatisfied

NSND Neither Satisfied Nor

HDS Highly Dissatisfied

S.No.

Attributes

HS

NSND DS

HDS

1.

Low Fuel consumption

23

22

2.

Choice of colors

12

22

10

3.

Tube less Tyre

10

12

10

10

4.

Styles

10

12

18

10

5.

Look and comfort

18

13

10

6.

Engine power

12

21

10

7.

Road Grip

12

13

12

8.

Safety feature

12

12

11

10

9.

Seating space

21

12

10

10.

Resale value

30

12

11.

Brand image

12

23

12.

Ground clearance

28

11

Level of satisfaction of consumers about after the purchase experience of Maruti Suzuki
cars . We have classified the customer according to:

HS Highly Satisfied
S Satisfied
NSND Neither Satisfied
Nor-dissatisfied
DS Dissatisfied
HDS Highly Dissatisfied

Different 50 customers gave different views on various different attitudes towards Maruti
Suzuki.
1. Low Fuel Consumption
Consumers were both equally Highly satisfied and Satisfied towards the low fuel
consumption as Maruti delivers the best fuel consumption in its vehicle.
2. Choice of colors
Most of the consumers were satisfied, as Maruti gives all the major colours in its
vehicles. Maruti covers all the colours but they are same in all models they can come
up with new colours for specific models.
30 | Consumer behaviour towards Maruti cars

3. Tube less Tyre


We have received a mix response from the customers they are ranging from Highly
satisfied to Highly dis-satisfied that means the consumers dont care about the tyres
the reason of this also could be the are not knowledgeable about the tube and tyre
specifications.
4. Styles
Style may be a attribute to few customers. The customers were neither satisfied nor
satisfied with the style as an attribute of Maruti Suzuki
5. Look and comfort
Maruti has improved a lot on delivering customer comfort in the vehicle. Most
consumers were satisfied with the comfort that Maruti delivers. Some customer had
problems with the customers.
6. Engine power
The engine power of Maruti cars are mainly around 1300cc. Maruti is low on engine
as the cc and the bhp of cars are very low. Consumers were dis-satisfied with the
engine power of Maruti Suzuki.
7. Road Grip
The people were Highly satisfied as well as Satisfied with the road grip that Maruti
Suzuki cars delivers.
8. Safety feature
The customer satisfaction was mix of the consumers. Some were Satisfied with the
safety features that Maruti delivers while some were dis-satisfied with the safety
features
9. Seating space
The seating space is quite decent in Maruti and most of the consumers are Higly
Satisfied with the led space and seating apace.
10. Resale value
Maruti Suzuki has highest resale value amongst the existing car brands. The
consumers are highly satisfied as they get a fair deal when a re-sale is been made.
Both the buyer and the seller gets what he desired that makes Maruti Suzuki resale
value stronger.
11. Brand image
Maruti Suzuki is a brand known to all Indians but its Brand image is quite low as the
products delivered by it are low on price and also it is for the common people mainly.

PURCHASE BASIS

31 | Consumer behaviour towards Maruti cars

Total

Cash Basis
Credit Basis

17

Loan from Bank


Private finance

28
4

The purchase basis is mainly done though credit basis in a country like India where credit
availability has increased to a great extent.

REASONS FOR SEECTING MARUTI

State the reasons for selecting Maruti car.


Status symbol;Price;New features and style
Status symbol;Price
Status symbol;New features and style
Status symbol
Price;New features and style
Price
New features and style
MILEAGE
0

10 12 14 16 18 20

The major reaons for buying a Maruti is the Price i.e. the value that the company provides to
the customer. With such a high number of people voting for price as the factor, Maruti is well
positioned in the market.

32 | Consumer behaviour towards Maruti cars

REPEAT

PURCHASE

Total

17
No
33

Yes

WHY NO REPEAT PURCHASE

A high number of people did not prefer a repeart purchase of Maruti cars, the resons being
lack of new technology and models. This is increased since a couple of years as new entrants
such as Hyundai and Renault have been providing new features and models at a much lesser
price.
33 | Consumer behaviour towards Maruti cars

NEW MARUTI CAR PURCHASE OPTION

Total
12
10
8
6
4

Total

2
0

The new launches of maruti Baleno and Brezza and S Cross have exceeded the market
expectations of their sales, and as we can clearly see from the graph everyone would love to
buy those cars.

REASONS FOR SUGGETING TO FRIENDS

This question takes us into that particular detail that what factors have satisfied the owners ,
the main being low maintenance cost this is because of a wide network of service center
dealerships and resale value.

34 | Consumer behaviour towards Maruti cars

INTERVIEWS
1.
Stuti Thakar Profile
35 | Consumer behaviour towards Maruti cars

Job :

HR manager at Pxelperfect

Age:

29

Household Income:

INR 800000 or more

No. of years Owning a car:

5 years

Numbers of cars owned:

Brand of car owned:

Maruti

Car model:

Swift Dzire, S-cross

Reason for choosing Maruti car:

Features and design


After sales services
Performance and emotions connected to brand
Positive word of mouth

If you were to recommend a car to a friend, what two reason you would stress?

Value for money


Comfortable and affordable

Other Titbits:
Ms. Stuti Thakar bought her Maruti S-Cross just one and half year ago after she has to fight
with her husband for Maruti Swift, now she is driving even decent and stylish car according
to her. According to her S-cross is something she felt attachment and has become habitual and
emotional attached to the car. On asked she told that car give her comfort and while riding it
gives her pleasure that she needs to chill out from her workload. It is something that has
become she feels empty without it. She also mentioned that S-cross is always the first choice
for family outing over Swift Dzire not because S-cross is the new car but it is something she
feel attached with and it is obvious that she prefers to drive even though her husband can. She
also shared that after buying S-cross she and her husband have in fact many times on long
drive and spent more times togather then they used to spend before. She also feels that she is
the part of a group when she and her husband go to service center and interacts with some
employees and another car owner.

36 | Consumer behaviour towards Maruti cars

2.
Prateek Mehta Profile
Job :

Quality Control Engineer

Age:

38

Household Income:

INR 34000

No. of years Owning a car:

7 months

Numbers of cars owned:

Brand of car owned:

Maruti

Car model:

Baleno

Reason for choosing Maruti car:

Good Mileage
Aesthetic appearance
Less maintenance
Excellent After sales services
Established Brand

If you were to recommend a car to a friend, what two reasons you would stress?

Mileage
Excellent Features

Other Titbits:
Mr. Prateek Mehta having baleno from past 6-7 months and is satisfied with performance of
his car. The car was worth the money spend. Car is better than others in the segment in terms
of mileage, features etc. Also the re-sell value is the factor that makes him happy. Apart from
that what make them feel connected is the after sales services with Maruti and feels that it is
the product they have tailored for him whenever he drives Baleno. He is so satisfied that he
also made his younger brother buy Maruti. As per him what matters is how much you can
enjoy what you have.
3.
Harsh Tiwari Profile
37 | Consumer behaviour towards Maruti cars

Job :

Solution Developer

Age:

40

Household Income:

INR 10,00,000

No. of years Owning a car:

4 Years

Numbers of cars owned:

Brand of car owned:

Maruti

Car model:

Swift

Reason for choosing Maruti car:

Less cost of service and maintenance


After sales services
Performance and emotions connected to brand
Established Brand

If you were to recommend a car to a friend, what two reason you would stress?

Value for money


Excellent Features

Other Titbits:
Mr. Harsh Tiwari having swift from past 4-5 years and he is satisfied with performance of the
his car. He feels he got his money worth by buying the Maruti brand. Car is better in mileage
vis a vis to the other cars. Other features like spacious and trendy look are also likable.
Having a decent resell value makes him happy that he can own a other car of same brand.
4.
Akshat Jain Profile
Job :

Businessman

Age:

32

Household Income:

INR 500000-800000

No. of years Owning a car:

17 years

Numbers of cars owned:

38 | Consumer behaviour towards Maruti cars

Brand of car owned:

Maruti, Fiat

Car model:

Wagon-R, Van , Fiat

Reason for choosing Maruti car:

Economical
Good Average
Comfortable
Brand name
Resale value

If you were to recommend a car to a friend, what two reason you would stress?

Value for money


Affordable

Other Titbits:
Mr. Akshat Jain brought Wagon-R 5 years ago and is still happy with his well-maintained car.
Earlier he had a Van with him which also was used for 6 years. He sold his Van because his
mates told him to change the car. Van was purchased petrol but later on was been converted
into LPG. He tells that he got a fair deal for re-sale of his Van which he used to buy WagonR. He tells that he is a loyal customer to Maruti and will continue to be. The NEXA models
launched by Maruti are very nice and also well equipped with Morden features. He is
planning to buy the new Baleno model. He tells that among the existing brands Maruti
requires the least maintenance , the car being 5 years old only requires 4-5 service per year.
5.
Sidhant Sharma Profile
Job :

Student

Age:

23

Household Income:

INR 100000 above

No. of years Owning a car:

2 years

Numbers of cars owned:

Brand of car owned:

Maruti,

39 | Consumer behaviour towards Maruti cars

Car model:

Swift

Reason for choosing Maruti car:

Brand name
Good Average
Youngsters car
Easy repair

If you were to recommend a car to a friend, what two reason you would stress?

Looks
Milage

Other Titbits:
Mr. Sidhant got Maruti Suzuki Swift as gift on his birthday from his family. The main
purpose was his college was far and his family wanted him to be safe driving to college.
Earlier he had a bike but that was too risky according to his family. His uncle suggested his
dad the new Swift which was the Car of the year at that time. He personally liked the swift as
he wanted a decent hatchback only. He says Swift drive is very smooth and also it requires
very low maintenance and gives a decent mileage also. He tells that in college going by Swift
is also like a status symbol for him. He tells that till now he has paid no service amount as
Swift gives a 2-year free service. Swift looks are very adorable and liked by a lot of people
and comes in all regular colors, his favorite being grey. It is a worth and valuable buy for
him.

Analysis of Interviews:
We took interviews of very much brand loyal Maruti customers and interact with them what
re the reasons behind buying the car. General factors affect the purchase was attachments,
comfortability, performance, value for money etc. Some repeat purchases were also identified
and the reason behind it were majorly the brand attachment because of the technical
performance of a car as well as after sales services.
Findings:

In present Maruti is leading in small & medium car segment followed by Hyundai

40 | Consumer behaviour towards Maruti cars

Major existing customer are satisfied with their present car performance like mileage,

re-sell value, technical performance and design and comfortability.


They change their cars after five years or more, due to fed up with car and for new
advance technology. Also consumer prefer to buy with financial assistants by a bank
over other financial service firms.

Buyer himself as well as family are major groups influence in purchasing designs

Those current customers do not want to make repeat purchase is because of they feel
that they do not have a car with advanced technological features.

Conclusion:
Car purchasing is very much important result in anyones life. We found in the study that
those who have Maruti cars that Study shows that middle class segment highly influenced by
family & friends while purchasing the car. So companies should advertise their product
targeted to families. Consumer also prefer to buy Maruti because their feeling toward brand
as value of money, features, style and design. However, no one feels Maruti as a status
symbol still purchase car because of its other distinct features.

41 | Consumer behaviour towards Maruti cars