SUMMER TRAINING REPORT

ON
CONSUMER PERCEPTION AND BUYING BEHAVIOR
TOWARDS PURCHASE OF MOTORBIKES

SUBMITTED TO :
PANJAB UNIVERSITY, CHANDIGARH
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

(SESSION-2019-2020)

SUPERVISED BY: SUBMITTED BY:

BBA FACULTY EKAMBIR SINGH
BBA (6th Sem)
UNIV. ROLL NO.17045320
College Roll No.7528

S.C.D. GOVT. COLLEGE FOR BOYS,

LUDHIANA

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 STUDENT DECLARATION
I hereby declare that the Project entitled “CONSUMER PERCEPTION AND BUYING
BEHAVIOR TOWARDS PURCHASE OF MOTORBIKES” submitted for the practical
fulfillment of degree of Bachelor of Business Administration of S.C.D. Govt. College,
Ludhiana affiliated to Panjab Technical University, Jalandhar is original work and not
submitted for award of any other degree, fellowship or other similar titled or Prize.

Ekambir Singh

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 ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people and this work is not different behind
this successful undertaking is the blessing and guidance of many. This formal piece of
acknowledgement may not be sufficient to express my feeling of gratitude and deep respect.
This endeavor would not have been successful without the help and encouragement of lot of
people with whom I had good fortunate of interacting during course of journey.

I am indebted to Faculty Guide for the knowledge and experience that I have gained during
course of training. Without his immaculate and intellectual guidance, sustained efforts and
friendly approach it would have been difficult to achieve the result in short span of period.
Not leaving behind the contribution of all the staff members for sharing with us the wealth of
their experience and knowledge.

Ekambir Singh

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 TABLE OF CONTENTS

Chapter Topics Page No.

No.
1. INTRODUCTION 5-35
2. LITERATURE REVIEW 36-41
3. OBJECTIVES 42-43
4. RESEARCH METHODOLOGY 44-47
5. DATA ANALYSIS AND INTERPRETATION 48-57
6. FINDINGS AND RECOMMENDATION 58-60
7. CONCLUSION 61
SUGGESTION 62
BIBLIOGRAPHY 63-64
QUESTIONNAIRE 65-69

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 CHAPTER-1

INTRODUCTION

Indian Two-wheeler Industry

The two-wheeler industry in India has grown rapidly in the country since the
announcement of the process of liberalization in 1991 by the then finance minister Dr.
Manmohan Singh, now Prime Minister of India.

Previously, there were only a handful of two-wheeler models available in the country.
Currently, India is the second largest producer of two-wheelers in the world. It stands
next only to China and Japan in terms of the number of two-wheelers produced and the
sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-
wheelers in India stood at around 7600801 units.

The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the
chief factors is poor public transport in many parts of India. Additionally, two-wheelers
offer a great deal of convenience and mobility for the Indian family.

Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile
Products of India (API) commenced production of scooters in the country in the early
50's. Until 1958, API and Enfield were the only producers of two-wheelers in India.
However, Bajaj signed a technical collaboration in 1960 with Piaggio of Italy to produce
Bajaj Scooters. This deal expired in 1971.

The condition of motorcycle manufacturers was no different. Until the mid 80's, there
were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and
Enfield. The two-wheeler market was opened to foreign manufacturers in the mid 80's.
The industry, which had seen a smooth ride before, faced fierce foreign competition.

Motorcycle companies like the Yamaha, Honda, and Kawasaki, set up shop in India in
collaboration with various Indian two-wheeler companies. Companies like Escorts,
Rajdoot and faced immense competition from smaller 100 cc Japanese technology

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motorbikes. Bikes manufactured by Hero Honda, the only company manufacturing four-
stroke bikes at that time, gained massive popularity.

In the mid 80's, Kinetic introduced a variomatic gearless scooter in collaboration with
Honda. This scooter became instantly popular with the younger generation, especially
people who found it difficult to use geared scooters. The introduction of scooterettes
created another segment for people such as women and teenagers who could not get used
to driving either motorcycles or gearless scooters. Many companies such as Kinetc, TVS,
and Hero also started manufacturing mopeds that proved immensely popular with people
who wanted a simple riding machine.

The change in the government's policy owning to pollution control norms and the Kyoto
agreement saw the phasing out of two stroke two-wheelers from production. Currently
there are around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero,
Hero Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha.

The latest trend in the two-wheeler market is the introduction of electrically operated
vehicles from a range of manufacturers such as Indus and Hero. These can be recharged
from convenient household electrical points. The only disadvantage is speed, which is
restricted to around 25 miles per hour.

Currently, the motorcycle market is witnessing a demand for higher volume engines.
Previously, the 100 c bikes were very popular owning to the high fuel efficiency offered.
However, the market is maturing fast. Sensing this movement, Bajaj has introduced the
Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi)
technology.

Two-wheelers are the most popular and highly sought out medium of transport in India.
The trend of owning two-wheelers is due to its-
 Economical price
 Safety
 Fuel-efficient
 Comfort level

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The marketing philosophy of business assumes that an organisation can best serve,
prosper and attain profit by identifying and satisfying the needs of its customers. This
however, is a recent thinking, various definitions of marketing have been given from
different perspective, exchanges and utility being the two important once. The current
millennium has unfolded new business rules, the most significant of them being that past
or experience in a given product market is no indicator for future success. Market
leadership cannot be taken for granted because customer loyalty does not exist. The
customer today has a much wider choice.

India is the second largest producer of the two-wheeler in the world. The two wheeler
segment contribute the largest volume all the segments in automobile industry in India.
The country stands next to China and Japan in terms of production and sales respectively.
The industry is growing at a rate of 30% annually. It consists of three segment viz.
scooter, motorcycle and moped. Majority of Indians, especially the youngster prefer
motorbikes rather than cars. Capturing a large share in the two wheeler industry, bikes
and scooter covers a major segment. Bikes are considered to be the favorites among the
youth generation, as they help in easy commutation, styling and mileage and has more
aesthetic appeal.

It is quite evident that knowing consumer needs and desires is a road to success for the
marketer, but the question is how? It is not a simple task. At the first instance, we can feel
that whatever consumer is telling may be perceived as correct but actually he may not act
otherwise. They may respond to the message but may be influenced at the last moment by
their friends, family members or by other reference groups.

Consumer behavior is the study of how people buy, what they buy, when they buy and
why they buy. Consumer Behavior is the psychology behind marketing the behavior of
consumers in the marketing environment. Two major psychological disciplines come into
play when observing and trying to explain consumer behavior. The first is Cognitive
Psychology which is a study of all knowledge related (mental) behavior. The attention,
perception, memory and decision making are the various aspects of Cognitive Psychology
that play an important role in consumer behavior. The second psychological discipline
that has theories to explain certain phenomenon of consumer behavior is Social

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Psychology. It is the study of the manner in which the personality, attitude, motivation
and behavior of an individual influence and are influenced by groups.

A consumer making a purchase decision will be affected by following Factors/dynamics:

1. Cultural Factors
2. Social Factors
3. Personal Factors
4. Psychological Factors
The marketer must be aware of these Factors in order to develop an appropriate marketing
plan for its target market.

1. Cultural Factors: Cultural Factors exert the greatest impact on buying behavior of
consumer. A buyer is always influenced by his culture, sub-culture and social class.
Culture can be described from the dawn of civilization, human beings have been looking
for ways and means to better their lives. Culture is the most fundamental determinant of a
person’s wants and behavior. Culture refers to the set of values, ideas and attitude that are
accepted by a homogeneous group of people and transmitted to the next generation.
Whereas Subculture is a member of a culture, shares most of the core value, beliefs and
behaviors of that culture. However, most individuals also belong to several sub-cultures.
Each culture consists of smaller sub culture that provides more specific identification and
each socialization for their members. Sub culture includes nationalities, religions, racial
groups and geographic regions. Social class determines to some extent, the types, quality
and quantity of product that a person buys or uses. Social class is a basis for identifying
and reaching particular good prospects for products and services.

2. Social Factors: Man is a social animal. Hence his or her behavior is greatly influenced
by social Factors like reference groups, family, role and status
a. Reference groups: A person’s reference groups consist of all the groups that have a
direct or indirect influence on the person’s attitude or behavior.
b. Family: The family is the most important cons Family member constitute the most
influential primary reference group.
c. Roles and Statuses: Each role that a person plays has a degree of status which is in
relative term perceived by the society. It is the degree of influence that an individual
exerts on the behavior of others
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3. Personal Factors: A consumer decisions are also affected by his personal
characteristics including age, occupation, life- style and personality

4. Psychological Factors: A person’s acquired needs are influenced by certain

psychological factors such as motivation, perception, learning and beliefs and attitudes

Brand Loyalty
To be truly branded loyal the consumer must hold a favorable attitude towards the brand
in addition to purchasing it repeatedly. One may be forced to purchased a particular brand
repeatedly because other brands may not be available or he may be unable to find a
suitable replacement though he is not liking the unfavorable substitutes
The study is about the activities of the consumers with respect to their opinion about the
best quality of two wheelers and their preference towards the purchase of two wheelers.
The research is also analyzing the consumer's income level, advantage and disadvantage
of vehicle, price of the vehicle, quality because these factors also determine the purchase
factor

CONSUMER PERCEPTION

A Consumer is the ultimate user of a product or service. Consumer behaviour essentially

refers to how and why people make the purchase decisions they do. There are a vast
number of goods available for purchase, but consumers tend to attribute this volume to
the industrial world‟s massive production capacity. The Science of evaluating and
influencing consumer behaviour is foremost in determining which marketing efforts will
be used and when.

Consumers adjust purchasing behavior based on their individual needs and interpersonal
factors. On some levels, consumer choice can appear to be quite random. Purchase
decisions depend on personal emotions, social situations, goals, and values. People buy to
satisfy all types of needs, not just for utilization purposes.

According to „‟Abraham Maslow‟‟ in the early 1940s, may be physical or biological, for
safety and security, for love and affiliation, to obtain prestige and esteem, or for self-
fulfillment.

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The perception of various product attributes gives the first impression for consumers,
particularly when they have limited time and bandwidth to do through research on a new
product. This perception of attributes also has strong relation with consumer judgement of
whether the product the product will satisfy their needs. Studying the structure of product
attributions based on consumer perceptions will help practitioners to understand
consumers acceptance of products. This is especially important of motorbikes as more
and more technologies and functional designs have been integrated into new motorbikes.
Consumer requirments of motorbikes are now are not limited but various others like,
efficiency, ease of use and comfort. These factors altogether add influence on the overall
consumer perception. Therefore, the objective of this study was to provide a quantitative
and structural assessment of consumer perceptions of product attributes of motorbikes.

Kotler’s buying behavior

Understanding the automotive purchase process is crucial for automotive manufacturers

and dealer. Huge amount of information available to consumers require manufacturers
and dealers to understand consumer decision-making and the modes of influence which
can effect consumer new motorbike purchasing.
KOTLER describes the consumer buying behavior as the buying behavior of the final
customers who purchase goods and services for personal consumption. A company gets
great advantages by understanding how customers respond to marketing stimuli that
include the four p‟s : product, price, place and promotion. Other stimuli in the customer‟s
environment such as economic, technological, political and cultural also affect all
customers buying decision. All these stimuli enter the buyers black box where they,
through the buyer decision.

One factor that help the companies in marketing of their product is buying behavior of the
consumer, the buying behavior of the consumer can be studied by knowing their
perceptions about the motorbike in the market and about the possible entrants in the
market.one such technique is by knowing and creating the personality for the brands.

One factor that would help the companies in the marketing of their product is by knowing
and creating market of their brand. This report attempts to answer some of the questions
regarding brand personality of selected motorbikes in India by conducting a research.
This report is categorized in parts, deals with the introduction to brand personality,
companies selected, product and the industry.
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This personality sketching will help in knowing consumer thinks about a given brand of
motorbike and what are the possible factors guiding a possible purchase. Similarly the
idea of measuring the customer satisfaction will serve the same purpose of determining
the customer perception. Thus, by measuring the “willingness of existing users of
motorbikes to recommend it to others” will help the manufacturers to check out the entire
customer buying behavior.

Consumer buying behavior towards the purchase of motorbike. Consumer behavior is the
study off
 When
 How
 Where

People do or not buy products. It is a behavior that consumer displays in searching for
purchasing, using, evaluating and disposing of products and service that they expect will
satisfy their needs.

According to “American Marketing Association” consumer behavior is the study of how

individuals make decisions to spend their available resources like:

Buying behavior: The decision making process of buyers in purchasing and using goods
and services. Buyers may be either ultimate consumer or agents or dealers who purchase
goods for resale to ultimate consumer or itself the final consumer.

The motorcycle is one of the most significant purchases that Indian household makes and
this report address to the most important question that perplex motorcycle manufacturers :

The project highlights the factor that influence the buying decision of a consumer

The factors considered would be:

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  Price
 Income of the consumer
 Features in the motorcycle
 Warranty scheme
 Finance facility

Major attribute of customer satisfaction can be summarized as:

 Product quality
 Product packaging
 Keeping delivery commitments
 Price
 Responsiveness and ability to resolve complaints and reject reports
 Overall communication, accessibility and attitutaion

Nature of Consumer Behaviour

The wealth of products and services produced in a country makes the economy strong.
Almost all the products that are available to the buyer has a number of alternative
supplies. A buyer makes a purchase of a particular product or a particular brand and this
can be termed as “product buying motive”. The reason behind the purchase from a
particular seller is “patronage motive”.
More or less after the Second World War, the seller - markets have come up. The firms’
attention has switched from the products to the consumers and specially concentrates on
the consumers’ behaviour. The firm possesses no control over the behavior of the
consumer. The firm first tries to understand the consumer and his / her responses, and
then studies about the basic characteristics of his / her behaviour. It can be said that
consumer is a pivot around whom the whole marketing system revolves. The selection of
choice of products or services by consumer greatly determines the fate of the firms. As
such, the firm must know the consumer more and more in order to manufacture the
products, which give him / her satisfaction in the way of his / her need.

The marketing programmes and policies depend on the consumer behaviour. If one makes
out the marketing programme, neglecting the consumer behaviour, then one will naturally
invite failure. Consumer behaviour results from individuals and environmental influences.
Consumer often purchases the goods and services, which he wants others to accept.
Behaviour is therefore determined by the individual’s psychological makeup and the
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influence of others. Thus, behaviour is the result of interaction between the consumer’s
personal influence and pressures exerted upon him / her by outside forces in the
environment.

An understanding of consumer behaviour is essential in marketing and planning

programmes.
Types of Consumer Decision Behaviour

Consumer usually has the general objective of creating and maintaining a collection of
goods and services that provides current and future satisfaction. To accomplish this
objective, buyers make many purchasing decisions. They can be classified into three
broad categories

(a) Routine Response Behaviour: Consumer adopts routine response behaviour when
buying frequently purchased, lowcost items that require very little search and decision
effort. These items are sometimes called low-involvement products. Products bought
through routine response behaviour are purchased quickly with very little effort.

(b) Limited Decision - Making: It is employed for products that are purchased
occasionally and also when a buyer needs to acquire information about an unfamiliar
brand in a familiar product category. This type of decision-making requires a moderate
amount of time for information gathering and deliberation.

(c) Extensive Decision – Making: A consumer indulges in extensive decision-making

when purchasing an unfamiliar expensive product or an infrequently bought item. This
process is the most complex type of consumer decision-making behaviour. A consumer
uses many criteria for evaluating alternative brands and spends a great deal of time for
seeking information to decide on the purchase.

The marketing programmes and policies depend on the consumer behaviour.

Understanding consumer behaviour allows a firm to measure the effects of a strategy.
Marketing strategy is an analysis, planning, implementation and control process designed
to satisfy customer needs and wants by providing superior customer value. The

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development of marketing strategy begins with an assessment of consumer needs and
wants.

The starting point of strategic marketing process is analyzing the market. The product
market consists of specific product or line of related products that can satisfy the set of
needs and wants for the people willing and able to purchase the products. The objective is
to identify and describe the buyers, understand the preferences of them for products,
estimate the size and rate of growth of the market. This is enhanced by learning about the
market continuously by researches on consumer behaviour. The important decision area
on which the strategic marketing focuses is consumer behaviour. Thus, it is a basis for
performance evaluation. It allows the assessment of more than just sales volume or profit.
In general, studying consumer behaviour contributes to the entire strategic planning
process from its design to evaluation of its effectiveness.

Problem Recognition

The first stage in the consumer decision-making process is problem recognition, which
occurs when the consumer perceives a need and becomes motivated to solve the problem.
The problem recognition state initiates the subsequent decision- processes. It is caused by
a difference between the consumer’s ideal state and actual state. Mahatoo (1985) states
that a discrepancy exists between what consumer wants the situation to be like and what
the situation is really like13 . Problem does not always imply a negative stage. A goal

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exists for the consumer. This goal may be the attainment of more positive situation.
Kotler (2003) suggests that, by gathering information from a number of consumers,
marketers can identify the most frequent stimuli that trigger an interest in a product
category. They can then develop marketing strategies.

Information Search
The second stage in consumer decision process is information search. Once consumer
perceives a problem or need that can be satisfied by the purchase of a product or service.
They begin to search for information needed to make a purchase decision15. The initial
search efforts often consist of an attempt to scan information stored in memory to recall
past experience and / or knowledge regarding various purchase alternatives. This is
referred to as internal search. If the internal search does not yield enough information, the
consumer will seek additional information by engaging in external search. External
sources of information include (a) personal sources – friends, relatives and co-workers,
(b) commercial sources – advertisements, salespeople and internet, (c) public source –
magazines, newspaper, reports on television and (d) personal experience – hands on
experience in handling, examining or testing the product. Many consumer decisions are
based on a combination of past experience (internal sources) and marketing and non-
commercial information (external sources)16. Kotler (2003) states that through
information gathering, the consumer learns about competing brands and their features.
There may be plenty of brands (total set) available in a product category. But the
consumer knows only some of these brands (awareness set). Among these brands, some
brands will meet the consumer’s initial buying criteria (consideration set). As the
consumer gathers more information, only a few will remain as strong contenders (choice
set). All the brands in the choice set may be acceptable. The consumer makes a final
choice from this set. The marketers must identify the consumer’s information sources,
evaluate their relative importance. They evolve marketing strategies accordingly.

Evaluation of Alternatives
After acquiring information during the information search stage of the decision process,
the consumer moves to alternative evaluation. In this stage, the consumer compares the
various brands / products / services identified as capable of solving the consumption
problem and satisfying the needs or motives that initiated the decision process. The
various brands that are identified during the alternative evaluation process constitute the

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consumer’s evoked set. The evoked set is only a subset of all the brands of which the
consumer is aware. The consumer reduces the number of brands in the alternative
evaluation stage to a manageable level, for a review of them. The exact size of the evoked
set varies from one consumer to another and depends on factors like importance of the
purchase and the amount of time and energy the consumer is willing to spend comparing
alternatives19. The process of evaluation involves establishing some criteria against
which each alternative is compared. The criteria evolve from his past experience and
feelings toward various brands as well as the opinion of family members, friends and
acquaintances. In buying a motorcycle, a consumer uses objective attributes such as price,
warranty, economy as well as subjective factors such as brand image, outlook and
performance.

Purchase Decision
At some point in the buying process, the consumer stops searching for information and
evaluation of alternative brands in the evoked set and makes a purchase decision. As an
outcome of the alternative evaluation stage, the consumer may develop a purchase
intention to buy a certain brand. Purchase intentions are generally based on a matching of
purchased motives with attributes of brands under consideration.
A purchase decision is not the same as actual purchase. Once a consumer chooses a brand
to buy, he must still implement the decision and make the actual purchase. In addition to
that when to buy, where to buy, and how much money to spend, are yet to be decided.
Often, there is a time delay between the formation of a purchase intention or decision and
the actual purchase, purchase for highly involved and complex purchases such as
consumer durables.

Post Purchase Evaluation:

The consumer decision process does not end with the purchase. After using the product or
service, the consumer compares the level of performance with expectations and is either
satisfied or dissatisfied. Satisfaction occurs when the consumer’s expectations are either
met or exceeded. Dissatisfaction results when performance is below expectations. The
post purchase evaluation process is important because the feedback acquired from the
actual use of a product will influence the likelihood of future purchases. Positive
performance means the brand is retained in the evoked set. The likelihood of being it
purchased again increases. Unfavourable outcomes may lead the consumer to form

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negative attitudes toward the brand and fuelling the likelihood of it being eliminated from
the consumer’s evoked set. Post purchase evaluation is significant to influence the firm.
Negative or doubtful thoughts increase the probability that different alternatives will be
considered next time when the need arises.

Factors Influencing Consumer Decision Making

Demographic, social and psychological factors have an important impact on the consumer
decision process. These factors are not only helpful for the firm in developing consumer
profiles and adapting marketing strategies to them, but they also aid the firm in
understanding how consumers use the decision process.
The characteristics of human populations and its segments are useful for identifying
consumer markets. Demographics describe selected characteristics of a population for
purposes of social studies. It is also used in marketing, marketing research, opinion
research, political research and study of consumer behaviour.
The term demography is the study of human population and its structure and change21 .
Consumer demographics are statistics that describe the population. They are easy to
identify, collect, measure and analyse22 . Demographics is interested in any population
characteristic that might be useful in understanding what people think, what they are
willing to buy, and how many fit into this profile.
Demographic variables are age, gender, marital status, family size, family life-cycle,
income, occupation, education, religion, race, nationality, home ownership and social
class23 . Demographics are used to describe a population in terms of its size, distribution
and structure. Size means the number of individuals in a population while structure
describes the population in terms of age, income, education and occupation. Distribution
of the population means the location of individuals in terms of geographical regions and
rural, urban or suburban locations. Each of these factors influences the behaviour of the
consumer and contributes to the overall demand for various products and services24 .
Marketing researchers typically have two objectives in this regard: first to determine
which segments or subgroups exist in the overall population; and secondly to create a
clear and complete picture of the characteristics of a typical member of each of these
segments. Once these profiles are constructed, they can be used to develop a marketing
strategy and marketing plan. Consumer profiles combine demographics in a way that is
useful to marketers.

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Marketers and other social scientists often group consumers into segments based on
demographic variables. The most frequently used demographic variables are:

Age : The size of different age groups has a substantial effect on the market for certain
products. When market segments are set up in terms of chronological age, the total
population may be separated into such groups as children, teenagers, adults and the old25.
The children’s market segment has been recognized as a direct group of consumers. This
market segment carries a three – way marketing impact. First, these children can
influence the parental purchases; second thousands are spent on this group by their
parents; and third, these children themselves make purchases of goods and services for
their own personal use and satisfaction. Many products are designed specially for this
market segment. The teen-age market has also been recognized as an important one. They
are good customers for automobiles, cosmetics, clothes, jewellery and other durable
products. People who are in the middle age are at the peak of their earning power. Thus
this market segment is a good target for the market of high-priced, high quality products
and services. The other older age groups, who are above 65, generally require health-
products and magazines. Promotional programmes may be developed to appeal to the
buying motives of this group and to cater to their buying habits .
Gender: Market segmentation by gender is useful because one gender or the other has
traditionally purchased many products. The role of women has undergone considerable
change in Indian society. Nowadays they are more involved in economic and political
activities. More women, both married and single, are employed and have incomes of their
own to spend. With women playing an increasingly important role in decisions on buying
and consumption, it is important to recognize the shifts in sexual composition of the
population in India. Men and women buy different products and have different needs

Education: In India, the percentage of literacy is low. It varies from state to state. In the
last two decades, much development has been taking place in the field of education. The
increase in the number of children entering primary schools and the number of persons
entering the higher education have resulted in an increase in the demand for number of
articles.

Occupation: To identify and analyse some segments, occupation may be a meaningful

criterion, because occupation is the source of income for any individual. People have

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different occupations. Their income depends upon their occupation. So the buying pattern
of a carpenter is different from that of a professor because of the influence of attitudes,
interests and other factors. A good marketer would keep all these in mind while
promoting the sale of products.

Income: Income is the main source of purchasing power, so segmentation based on

income is entirely logical. People alone do not make a market. They must have money to
spend. Consequently, a detailed study of income, its distribution and how it is spent will
be useful to the marketer to plan his marketing strategy.

Marital Status : Traditionally, the family has been the focus of most marketing efforts
for many products and services. Because, the household continues to be the relevant
consuming unit. They are interested in determining the demographic profiles of
household decision makers to develop appropriate marketing strategies. Marketers have
also discovered the benefits of targeting specific marital status groupings such as singles,
divorced individuals, single parents and dual – income married couples etc .

Family Size: Members of the buyer’s family can exercise a strong influence on buyer’s
preferences. A family has been defined by the Bureau of the Census, United States
Department of Commerce as “ It consists of two or more persons living in the same
household who are related to each other by blood, marriage or adoption, all persons living
in one household who are related to each other – are regarded as one family”30 . When
one marries, procreation starts. This results in what is known as nuclear family, consisting
of parents and children living together. A nuclear family may turn into an extended
family when aunts, uncles, grandparents and in-laws also live together. Family is a
significant unit for consumer behaviour. In India, the old joint family system has been
declining over the recent past. Many families have come into being which resemble the
nuclear type with the exception that old parents also live along with the young couples.
For common purposes a family in India consists of the husband and wife, dependent
children and parents. It is important to know how families decide what, where and when
to buy.

History of Indian Two - Wheeler Industry

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India is the third largest manufacturer of two-wheelers in the world. It stands next to
Japan and China. The two-wheeler industry in India has been in existence since 1955. It
can be broadly classified into three segments – motorcycles, scooters and mopeds. The
increase in sales volume of this industry is proof of its high growth. In 1971, sales were
around 0.1 million units per annum. But by 1998, this figure raised at 3 million units per
annum. Similarly, capacities of production increased from about 0.2 million units of
annual capacity in the 70s to more than 4 million units in the late 90s.
The two-wheeler industry in India began operations within the framework of the national
industrial policy as espoused by the Industrial Policy Resolution of 1956. This resolution
divided the entire industrial sector into three groups, of which one contained industries
whose development was the exclusive responsibility of the State. The second group
included industries in which both the State and the private sector could participate. The
last sets of industries were those that could be developed exclusively under private
initiative within the guidelines and objectives laid out by the Five Year Plans. Private
investment was channelised and regulated through the extensive use of licensing, giving
the State comprehensive control over the direction and pattern of investment. Entry of
firms, capacity expansion, choice of product and capacity mix and technology, were all
effectively controlled by the State in a bid to prevent the concentration of economic
power. However, due to lapses in the system, fresh policies were brought in at the end of
the sixties. These consisted of MRTP 1969 and FERA of 1973, which were aimed at
regulating monopoly and foreign investment respectively. Firms that came under the
purview of these Acts were allowed to invest only in a select set of industries.
This net of controls on the economy in the 70s caused several firms to a) operate below
the minimum scale of efficiency (MES), b) under-utilize capacity and, c) use outdated
technology. During the 1970 – 1980 period, the overall growth rate of the two-wheeler
industry was high i.e., around 15% per annum. The impact of MRTP was limited as it
affected only large firms like Bajaj Auto Ltd., whose growth rates were curbed as they
came under the purview of this Act. Recognition of the deleterious effects of these
policies led to the initiation of reforms in 1975, which took a more pronounced shape and
acquired wider scope under the New Economic Policy in 1985. As part of these reforms,
several groups of industries were delicensed. Controls over capacity expansion were
relaxed through the specification of minimum scale of efficiency of production for several
industries. Foreign collaborations were allowed in selected industries to upgrade the
engine capacity up to 100cc. This prompted a spate of new entries into the industry, the

20
majority of which entered the motorcycle segment. Motorcycle manufacturers brought
them new technology that resulted in more efficient production process and products.
These reforms had two major effects on the industry: First, licensed capacities went up to
1.1 million units per annum overshooting the 0.675 million units per annum target set in
the Sixth Plan. Second, several existing but weaker players died out giving way to new
entrants and superior products
In 1990, the entire automobile industry saw a drastic fall in demand. The reasons for
recession in the sector were the incessant rise in fuel prices, high input costs and reduced
purchasing power due to significant rise in general price level and credit crunch in
consumer financing. Factors like increased production in 1992, due to new entrants
coupled with the recession in the industry resulted either in reporting losses or a fall in
profits of a company. However, the major set of reforms came in 1991 in response to a
series of economic crises that hit the Indian economy in 1990-91. Several industries were
deregulated. The Indian rupee was devalued. The decline in GDP in the years after
reforms was the outcome of devaluation and fiscal and monetary policies taken in 1991 to
address the foreign exchange crises. The two-wheeler industry in the 90s was
characterized by a) more number of brands available in the market competing with each
other on product features and b) sales volume in the motorcycle segment was more than
that of scooter segment.
After facing its worst recession during the early 1990s, the industry bounced back with a
25% increase in volume sales in financial year (FY) 1995. 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 on the two-
wheeler sales, with the yearon-year sales growth dipping to 3% that year. However, sales
picked up thereafter due to the increase in the disposable income of middle-income
salaried people, higher access to relatively inexpensive financing, and increased
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 two-
wheeler sales increased in FY2002, the scooter and moped segments faced de-growth.
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 motorcycle
and in the scooters segments while that of the mopeds continued to decline. Motorcycles

21
had an upward march 17.1% in domestic market over the previous. In terms of volume,
4,613,436 units of two-wheelers were sold in the country in 2005 with 256,765 units
exported. The market share for the two – wheeler industry was 78.65%. The two-wheeler
sales have witnessed a spectacular growth trend since 2000.

Motorcycle Industry in India

The two-wheeler industry in India has grown rapidly in the country since the
announcement of the process of liberalization in 1991 by the then finance minister Dr.
Manmohan Singh, now Prime Minister of India.

Previously, there were only a handful of two- wheeler models available in the country.
Currently, India is the second largest producer of two- wheelers in the world. It stands
next only China and Japan in terms of the number of two- wheelers respectively. In the
year 2005-2006, the annual production of two-wheelers in India stood at around
76002801 units.

The trend of owing two-wheelers is due to a variety of facts peculiar to India. One of the
chief factors is poor public transport in many parts of India. Additionally, two-wheelers
offer a great deal of convenience and mobility for the Indian family.

The latest trend in the two-wheeler market is the introduction of electrically operated
vechiles from a range of manufacturers such as Indus and Hero. These can be recharged
from convenient household electrical points. The only disadvantage is speed, which is
restricted around 25 miles per hour.

Currently, the motorcycle market is witnessing a demand for higher volume engines.

22
 BRANDS IN INDIA

The motorcycle industry in India is one of the large market. The list of two-wheeler
industry in India is:
 Bajaj
 Hero
 Honda
 Yamaha
 Royal enfield
 Suzuki Motor Corporation
 TVS Motor
 Mahindra & Mahindra
 KTM
 Kawasaki
 Aprilia India
 Harley-Davidson
 Hyosung India
 Moto Guzzi India
 Triumph India
 Vespa India
 Jawa India

These are the Producers whose motorcycle are available to the public, including both
street legal as well as racetrack- only or off- road-only motorcycles. The list of current
Manufacturers does not include badge engineered bikes or Motorcycle customisers, but
the list of defunct manufactures may include some of these if they are well remembered
for their historical significance.

23
 COMPANY PROFILE

As far as as the number of units manufactured goes, HERO MOTO COP is the world
largest two-wheeler maker. Those numbers speak volume and hence comes in as one of
the best Motorcycle Brands in India.

The company has recently made iy in headlines by creating the world‟s most fuel
efficient bike called Splendor ismart. The bike offers a Mileage of around 102 KMPL.

The company started as Hero Honda, back in 1984 , and was a joint venture between
Japan‟s Honda Motors and India‟s Hero Cycles. Hero and Honda split in 2010 and turned
each others coompetitors.

24
The subsidiary of Japanese bike manufacturing company Honda has made its place in the
bike market due to its international standard Motorcycles and powerful engines.

Their Honda Activa is one of the most successful product rages that become really
famous.

The good selling Honda bikes are Honda Shine, Honda CBR, Honda Navi, CD 110
among others.

Honda bikes are always a good option due to their famous reliability and after sales
service. The prices are reasonable and competitive as well.

25
Coming on the third the best Motorcycle Brands in India is our very own Bajaj.

Bajaj is the second biggest two-wheeler manufacturer in India. Bajaj auto won the
Consumers hearts with its scooters range long back in its days.

The CT100‟s is among Bajaj‟s best selling Motorcycles which have legendary fuel
efficiency.

Bajaj Bikes are very famous and very durable. Their bike the invincible is manufactured
from the parts of INS vikrant and it is their best launches to

26
TVS was earlier known as TVS-Suzuki as it was running in collaboration with Suzuki.
The company separated from Suzuki in 2001 and renamed itself as TVS Motor.

TVS is purely Indian bike manufacturing company. With over 2.5 miilion sales per year.
You can easily spot a TVS motorcycle anywhere in India.

They always bring something new in its bikes by introducing the latest technology which
makes it stand out from the crowd.

TVS motorcycles always have the trust of the customers with it as it provides the best
after sales service

27
Yamaha motor is the Indian division of Yamaha Motor Company, Japan. The company
controls 4% of the Indian motorcycle market and around 7.5% of the coumtry‟s scooter
market.

Yamaha India sells around 15,000 scooters per month. The company was recently in the
headlines by launching YZF R1M and R1 racing superbikes.

The company has several new products in the line and suggests that India will prove to be
among its top five markets by next year.

Prices are on the reasonable side but the price of parts needed for after-sales service is
steep.

28
Royal Enfield is an Indian motorcycle manufacturing brand with the tag of “the oldest
global motorcycle brand in continuous production.

They are primarily manufacturers of the bullet type of bikes and are famous all over India
for such range of Bikes.

The Royal Enfield bikes are initially used in the army because of its body and strength.
Today it has become very famous among the youth and a lot of young men prefer this
bike over the others.

When it comes to bullets their bikes are on the cheaper side but the quality is top notch.

29
Mahindra & Mahindra Limited is an Indian automobile company headquartered in
Mumbai, Maharashtra, India.

It was established in 1945 as Mohammad & Mahindra and later renamed as Mahindra and
Mahindra.

It is one of the largest vehicle manufacturers by production in India and the largest
manufacturer of tractors in the world.

Their recent bike Mahindra Gusto is becoming very famous among the youth, Mahindra
Centuro, Mojo is also one of their famous products.

When it comes to price their bikes are one of the most reasonable in the country.

30
Suzuki Motor Corporation is a Japanese MNC with its headquarters in Minami-Ku,
Hamamatsu.

They manufacture everything in the automobile industry starting from four-wheel drive
vechiles, motorcycles, all- terrain vechiles (ATVs).

In 2016, Suzuki was the eleventh biggest automaker by production worldwide. The
company houses over 45,000 employees and has 35 production facilities in 23 countries
with 133 distributors in 192 countries .

In India, their manufacturing plant is located in Gurgaon. The Suzuki Hayabussa rage is
very popular amongst the youth. It is one of their best bikes and their other bikes also do
very well in the market.

31
The Austrian Motorcycle and sports car giant is owned by KTM Industries AG and Bajaj
Auto. It was formed in 1992 but traces its foundation to as early as 1934.

KTM started in India with its KTM Duke series which won the heart of all speed lovers.
If speed thrills you. You should look no futher. This is because KTM Dukes are made for
this purpose only.

Currently, KTM has made its 4 bikes available in India ranging from 200cc to 390cc.

32
It is the Italian sports bikes, and the famous Ninja Series manufacturer Kawasaki. The
bikes are manufactured in Japan, the Philippines, USA, THAILAND, and INDONESIA.

They were initially manufacturing engines for cars in 1962 and ended up making up bikes
with some amazing style and features.

Today, the company builds its bikes using quality materials such as aluminum, fibre,
steel, carbon and titanium.

They marker their products with a formidable presence in about 60 countries across the
continents. Their bikes are quite costly and but having one of them is a style statement by
itself.

33
Future of Two Wheeler Industry:

The future of the two-wheeler industry in India gives critical information about Two Wheeler
Industry. ACG expect that over next coming year the three-tier structure of the industry
which was 20 percent for the entry-level segment, 60 percent in value for the mid-level and
20 percent at a premium level for the time and the current trend has moved to 30-50-20
percent and it is on its way to moving to 35-40-25 percent structure. This means the middle-
level market is getting squeezed out, which in turn is very good for companies like, Yamaha,
Bajaj, Suzuki. Hero Motocorp and Honda need to introduce new innovative product range in
this segment since these companies are the major player of value plus segment.

Discounts have been offered to the mid-level sector due to the polarization of the customers
to the premium and the entry-level. Another reason for added discounts or offers is
scooterization and lack of innovation in the sector.

New regulations like ABS to the 100 and 125 CC vehicles would increase the cost of the unit
from 4,000 to 10,000 RS. This added price value and BS-VI can impact the sale rate. All
these hurdles will have to be overcome, and innovation will lead to an improved Industry
performance. ACG expects double-digit growth for the year 2019 and with all the upcoming
changes in norms and with innovation to technology we can look forward to an exciting 2019
ahead.

34
The biggest challenge for the industry would be to make the transition of the two norms
related to safety and emission over the next 12 months.

Indian Two-Wheeler Industry has seen 13%, Scooter segment 9%, and Motorcycle segment
16% growth in the year 2018 compare to the year 2017.

In the Scooter segment, Suzuki and TVS gained 2% market share and market leader Honda
lost 1% and Yamaha and Hero lost 2% market share in 2018. The Hero is trying to penetrate
this segment with mix product and marketing strategy but could not achieve the desired
result.

The companies shall enter the electric vehicle segment with new motorcycles and scooters in
India.

35
 CHAPTER-2
REVIEW OF LITERATURE

A literature review is an account of what has been published on a topic by accredited

scholars and researchers. It is part of the introduction to an essay, research report, or
thesis. In writing the literature review, the purpose is to convey to the reader what
knowledge and ideas have been established on a topic, and what their strengths and
weakness are. As a piece of writing, the literature review must be defined by a guiding
concept (e.g. the research objective, the problem or issue discussed, or the argumentative
thesis). It is not just a descriptive list of the material available, or set of summaries.

Dr. Raj A. Jesu Kulandai, & Prof. Kaviarasu S. John, (2015) found in his study that
the Indian two wheeler industry is expanding and growing up each year and the
motorcycle segment is governed by genuine players viz. Hero, Honda, Bajaj, TVS,
Royal Enfield. The study discovers that buying behaviour of two-wheelers in Chennai
city is significantly influenced by a number of marketing stimuli offered by the
manufacturers. It also reveals the people from low and middle class prefer two wheeler
as it matches with their individual and family requirements. Majority of the respondents
have claimed that Fuel-efficient, reliable brand and availability of spare parts are the
most preferential factors for buying g of a two wheeler. The findings revealed the
PrePurchase Analysis, Factors influencing brand preferences, Brand wise ownership of
the sample respondents and Post-Purchase analysis.

Dr. Ronald Mani & Mr. Debasis Tripathy, (2013) assessed and perceived the
behavioural variables and their effect on the customers buying behaviour of the 300 two
wheeler bike owners from Allahabad, Lucknow and Varanasi cities of Uttar Pradesh.
The study is centred on the purchasing behaviour of the customer that provokes them to
buy the two wheeler bike. The bike associations decided for study were Bajaj Auto,
Hero Motocorp, HMSI, Yamaha Motors and TVS Motors. The promotion was an
exceptionally affecting variable for the Bajaj two wheeler customers, family members
were exceedingly impacting element for the Honda two wheeler customers and friends
were profoundly impacting component for the Yamaha two wheeler customers. Most
influencing factor is Design for Yamaha followed by Bajaj, Honda, Hero MotoCorp and
TVS. Mileage as a influencing factor was dominated among motor bike owners of Bajaj
and Hero MotoCorp. For Yamaha bike owner’s speed and technology was the
36
influencing factor to purchase. All the motor bike owners were happy and satisfied about
their purchase decision and the study concludes that Honda and Bajaj shows maximum
satisfaction whereas TVS remains last.

S. Franklin John & J. Anand Christopher, (2013) investigated the influence of peers
in purchase decision with reference to the age of two wheeler users. Convenient
sampling technique was employed to get the sample size of 85 respondents from
Coimbatore city. The questionnaire developed by the researchers namely Clement.S.
&Venkatapathy. R (2005) has been used to acquire the information. It involves three
segments each part is planned to measure the unmistakable parameters of and
companion impact and decision making process of two- wheeler purchasing. A
descriptive research methodology was adopted and statistical tools were applied to get
the results for the study. The discoveries of the review prompt to the conclusion that
Peer impact appears to affect the purchasing behaviour of the two wheeler buyers but
more in particular consumers belong to the age group of 40-50 years. The study
discovers a favourable impact of peers on the purchase decision making process

Indian Two-wheeler Report (2013) elucidates facts on the Indian Two-Wheeler

industry, supplemented by the latest statistics. The report is divided into three sections.
Section I mainly CARE Research’s outlook on Indian Two-wheeler industry over next 5
years. Section II covers overview of various segments of the industry, regulatory issues,
trade scenario and overall performance of the domestic market. Section III gives details
of the some key players in the industry.

ICRA Report (2013) state that the domestic two-wheeler industry is expected to report
moderate volume growth of around 4-5 per cent in 2012-13. The two-wheeler industry,
however, has clocked a compounded annual growth rate (CAGR) of 21.8 per cent over
the last three years. The report further adds that over the medium term, the two-wheeler
industry is expected to report a volume CAGR of 8-9 per cent, to reach a size of 22-23
million units (combining domestic and exports) by 2016-17

Rajesh Mahrotra & Sachin Kumar Sharma, (2012) evaluated and measured the
elements with a five point scale and its effect on the two wheeler consumers purchasing
behaviour. This research also concentrates on the market size of different two-wheeler
producers those offering distinctive product portfolios to the customers. Hence customer
has a wide choice for purchasing a two wheeler brand, but the buying decision depends

37
on various aspects like mileage, engine power, model, price, and weight of the two-
wheeler. The exploration finds that Hero MotoCorp Ltd is a main player in Jaipur city,
trailed by Bajaj Auto because of its assortment of bike model offerings to the customers.
The research highlights mileage and power as most influencing factors whereas price is
least influential as per customer’s requirement. This study suggests that marketers must
offer more varieties of two wheelers to their prospective customer.

K.Vidyavathi, (2012) deals with perceptions and behaviour of the various consumers of
Automobile owners of Chennai. The author studied how perception of the customer
influences the consumers mind and how this information can be used successfully by
marketers to gain entry into the minds of the consumers. Data was collected from 300
automobile users. The satisfaction level, preferred product attributes and customer
profile has been represented through descriptive statistical tools. The study also focuses
on different characteristics that the Marketers should focus on to pull in the prospective
purchasers and increase the sales. The respondents recognizes that driving comfort and
mileage are the most vital elements considered while deciding on the purchase of an
automobile followed by accessibility of spare parts. Respondents expressed their
responses towards their change over to another brand due to problems faced with the
existing brand and for want of highly technological automobile. Another problem
revealed was the change in the hospitality of the dealer before and after purchase.
Therefore, it is suggested that the offerings rendered or to be rendered need to be
properly defined, friendly method and reliability in pre and post sales need to be
upgraded and monitored. The study summarises that all the automobile manufacturers
who understands their consumer and produce products as per the needs and desires of
consumers will succeed in long run. As consumer behaviour plays a vital role there is
need to conduct proper and continuous research in this field as behaviour changes with
time.

R.Renuka & Dr. M. K. Durgamani, (2012) have attempted the review to know the
elements which actuates the customers to buy and its effect on purchase choice of TVS
Scooty. The data was collected by applying judgemental sampling approach from a
hundred and five users of Thanjavur.. The review propose appearance, graphic, colour
and design are the most affecting factors while making a purchase decision for TVS
scooty. Factors with highest customer’s satisfaction were price, break, safety, price-up,
tyre quality and factors and with lowest satisfaction were insurance facility, convenience
to handle, engine power, self-starter facility, brand name, design. Respondents have

38
opined that engine capacity, safety, new technology, product design, warranty period are
the five top most important characteristics. Hence, the TVS Company should give
special consideration to the above product characteristics to keep-up sales and its
reputation.

M. Sathish & A. Pughazhend, (2011) have undertaken the study to know the buying
motives of consumers and their behaviour towards two wheelers. Sample size of 125
from Tirunelveli city, Tamil Nadu were selected for the study The decision of the
customers is highly based upon the need, purchasing power and the price of the two-
wheeler product. The research has discovered that though the customers are not having
the purchasing power they are most in favour of costly bikes as the customer’s
expectations about advanced features are in the costly bike like aesthetic and value
addition in the vehicle. The research study recommends the two wheeler corporations to
provide customers with new versions and unique design. It was observed that consumer
favour two-wheeler because of its utility, easy handling in the heavy rough traffic.
According to the review HeroHonda, Bajaj and TVS rule the bikes business and
different players Suzuki, Yamaha and LML are furthermore endeavouring to opponent
them by acquiring new variations in the bike segments.

Faiz Ahmed Shaikh (2011) in his research paper titled “A Critical Analysis of
Consumer buying behavior of two-wheelers” reviews the current marketing practices in
the two-wheeler industry and their impact on consumer.

Anil Kumar kanojia (2011) in his research paper titled “Analysing the State Of
Competition in Indian Two-Wheeler Industry” shows the oligopolistic nature of the
Indian two-wheeler industry and the propensity of the major players to increase their
share. The study also reveals that urban and rural segments have different preferences in
purchasing two-wheelers.

Anjan Ghosh , Subrata Ray, Jitin Makkar (ICRA 2011) in their research paper titled
“Two-wheeler Industry: Growth Drivers Intact” stated that entry of new players into the
Indian market has enriched product offerings and brought-in new technologies.
Urbanization has drawn people living in India’s rural and semi-rural hinterland to cities
and towns at a steady pace. The need for mobility in most Indian cities and towns
therefore has increased substantially, yet the proliferation of public transport system has

39
not kept pace. This is where the utility of a two-wheeler as the most affordable mode of
private transport comes to the fore.

Sunila George (IIM Bangalore), Raghbendra Jha (ANU, Canberra), Hari K.

Nagarajan (IIM Bangalore and NCAER, Delhi), 2001 in their research paper titled
“The Evolution and Structure of the Two-wheeler Industry in India” studies the
evolution of the competitive structure of the two-wheeler industry in India.

S.Saravanan, N.Panchanatham, & S. Pragadeeswaran, (2009) proposes a research

with a sample of 200 respondents in Cuddalore area. They attempted to decide the
purchasing behaviour of motorbike buyers in the direction of showroom offerings by
using technique for the utilization of consumer stress, emotional competence as
independent variable and demographic variable like sex, age, marital status and the size
of the family. The study used F-test and correlation to get the desired outcomes which
portray higher satisfaction level of students and employees about showroom services.
Fundamental a part of the respondents rank their bike at a the higher perspective on
brand image. The investigation prescribes the associations to buckle down on building
up a decent brand image.

Ramarao, (2009) examined the necessity for changes in the motorcycle section to face
challenges in the bike aggressive market. Two wheeler manufacturers are adjusting and
improving their product features, productivity, look, appearance and style. Nowadays a
two wheeler is pleasant technique for conveyance. There are many players in two
wheeler market like Hero Honda, Yamaha, Bajaj, TVS but Hero Honda is an established
player. The review identifies and recognizes the difference in consumer behaviour
within two time frames, i.e., 2004 and 2008.The research suggest the manufacturers to
concentrate and direct their focus towards the non-stop behavioural changes in the
purchaser and thereby making upgrades of their vehicles to reap competitive position.

Virupaxi Bagodi and Biswajit Mahanty (2008) in their research paper titled
“Twowheeler service sector in India: factors of importance for sustainable growth”
identified important factors to achieve customer satisfaction in two-wheeler service
industry.

Kumari Santosh A., Reddy Raghunatha D. , & M L Kameshwari, (2005) examined

the buying behaviour of Hero Honda Motorcycles users in the city of Hyderabad. The

40
study attempted to know the major influencer in purchase decision of motorcycle.
Friends and Associates were the most preferred sources of information for buying a two-
wheeler. Findings of the research disclosed that 90% of the respondents have been
satisfied with the performance, maintenance and after sales provided by the dealers. It
also additionally discovered that 93.35% of the respondents could remember the
advertisements of motorcycle that they had seen as of late on TV or read in the
newspaper or magazines. . From this it was shown that the promoting effort was
effective and accomplished. The study disclosed the most favoured and preferred
motorcycle by way of majority of the respondents was Hero Honda Splendor due to its
brand image.

41
 CHAPTER-3

OBJECTIVES OF THE STUDY

The research objective is a statement in a precise terminology as possible of what

information is needed. The research objective should be framed so that obtaining the
information will ensure that research purpose is satisfied.

Research Objectives have three components

Research Question:

The research question specifies the information the decision making needs. The
responsibility of the researcher is to make the researcher question as specific and precise
as possible. The researcher question ask what specific information is required to achieve
the research purpose, or answer the research problem. If the research questions are
answered by research then the information would help the decision maker.

Development of hypothesis:

An hypothesis is a possible answer to a question. Development of hypothesis implies the

generating basically alternative answer to research question. This research determines
which of these alternative answer is correct. It is not always possible to develop
hypothesis, but efforts should be made.

Scope of the research

During the scope of the research the research boundaries ensure the desrie accuracy of
result.

42
The researchers responsibility is to restate the initial variables associated with the
decision problem.

HOW WHERE WHEN

WHY WHAT

The research objective for project undertaken can be defined as follows:

1. To determine the graphic variables of the customer of different brands of

motorcycle
2. Examine the customer perception about the motorcycle and the satisfaction level
of the motorcycle owners of different brands
3. To analysis the psychographic variables of the customer of different brand of
motorcycles and emphasize on service package, price, quality and brand of
motorcycle.

Scope of the study

It is aimed to study the motorcycle market and buying behavior of the customer. The
project analyzed the demographic, psychological motivation, personality, perception,
learning, values, beliefs, lifestyle, and buying behavior of the customer to purchase of
motorcycle. It includes the detailed study of the customer focusing on various parameters
that lead to identifying and understanding the perception of the customer towards the
purchase of motorcycle with different brands. The purpose of this study is to assess the
influence of every motorcycle elements (service package, price, quality and brand of the
car) on customers buying behavior towards motorcycle.

43
44
 CHAPTER-3
RESEARCH METHODOLOGY

A cross-section design

This part includes the research design, data resource, questionnaire design,
sampling methods and the performed work.

Research Design

A cross-section design entails the collection of data or more than one case and at a
single point in time in order to collect a body of quantitative or quantifiable data
in connection with two or more variables, which are then examined to detect
patterns of association. Cross-sectional analysis occurs when a researcher wishes
to compare findings across various cluster or market segments at a particular point
in time to identify points of difference or similarity in performance or response
pattern .

Survey research comprises a cross-sectional design in relation to which data are

collected predominantly by questionnaire or by structured interview on more than
one case and at a single point in time in order to collect a body of quantitative or
quantifiable data in connection with two or more variables, which are then
examined to detect patterns of association.

Data Resource

Quantitative data are measurements in which are used directly to represent the
characterstics of something. Since they are recorded directly with numbers, they
are in form that lends itself to statistical analysis. Qualitative data represent
descriptions of things that are made without assigning numbers directly.
Qualitative data are generally collected some type of unstructured interviews or
observations. For our survey, we need to collect empirical data and test
relationship between data, so we chose quantitative study.

45
DATA COLLECTION

Research project is affected very much by data collection method. Reliability of

the collected data depends a lot on the method of data collected.

 Primary data
 Secondary data

Primary data has been used in this project in form of questionnaire &
Observation, which are two basic methods of collecting primary data, which
sufficed all research objectives.

Secondary Data sources like catalogue of the company, product range book of
the company & various internet sites such as google.com have been used.

For the purpose, visited to various showrooms of bikes within the city , Ludhiana
to obtain about the knowledge about bikes and then we randomly select the
respondents near to home

Primary data

 Websites
 Magazines
 Brouchers
 Reading books
 Academic literature
 Journals
 Searching engine online
 Second hand information

46
Secondary data

 Questionnaire
 Survey

Sampling Methods

Our study was conducted by using a non-probability convenience sample due to

the restricted timing and resources. Such kind of sampling methods often allows a
potential respondent to self-select into the sample and allows the researchers to
choose who, where and when to collect data. The overall sample involved 50
individuals. It was fixed beforehand and every effort was made to cover the given
number of individuals with available time for the collection of data for this
project.

SAMPLING METHODOLOGY:

Sample size—50 respondents

Sample Unit- People ranging from age 15-100 age have been taken as sample
unit.
Sampling Area-Ludhiana
Sampling Technique- Random Sampling technique

TOOLS

In the research tools are used as graphical presentation such as pie charts, Bar
Diagram, Smart Art.

47
 LIMITATIONS

Following are the limitations with respect to data collection and analysis which might
have affected the accuracy of the result

 Due to time and sources constraints, the study was conducted within the city of
Ludhiana, therefore the surevy might not be in a true picture of the respondent‟s
option.
 The sample size of 50 respondents was taken which might not be representative
of the universe.
 The respondent‟s bias must have crept in while filling the questionnaire.
 The respondent‟s bias must have distorted the result to some extent.
 Time period is short and resource constraints.
 This study is based on prevailing consumer perception and buying behavior. But
the consumer perception and buying behavior may change according to time,
fashion, technology, development etc.
 Respondents may not be fully aware of their reasons for any given answer
because of lack of memory on the subject, or even boredom.
 Spending more time, effort and money may give better result.
 If sample information‟s have not been collected very carefully, the magnitude of
sampling error may be too large to render the sample results reasonably
accurate.
 The lack of funding necessary to carry out a survey.
 The lower priority for carrying out a survey because of competing urgent tasks.
 Customized surveys can run the risk of containing certain type of errors.
 Survey question answer options could lead to unclear data because certain
answer options may be interpreted differently by respondents. For example, the
answer option „‟very satisfied‟‟ may represent different things to different
subjects, and have its own meaning to each individual respondent.

48
 CHAPTER-4

DATA INTERPRETATION AND FINDINGS

The research done on the competitors strategies of motor bikes left us with a
number of findings. All these findings and conclusions are basically drawn from
the questionnaires, which are filed by the respondents in person.

a. Age of Respondents

The age of the respondents were taken into account and categorized as, a below 30
years b. between 30-50 years and c. above 50 years. The total number of
respondents were 300. Out of the total 76 Bajaj motor bike owners, 45% were
below 30 years, 30% were between 30-50 yuears and remaining 25% were above
50 years. Out of total 65 Hero motor bike owner, 34% were below 30 years, 34%
were between 30-50 years and remaining 32% were above 50 years. Out of total
79 Honda motor bike owners 40% were below 30 years, 30% were between 30-50
years and remaining 30% were above 50 years. Out of total 59 Yamaha motor
bike owners 58% were below 30 years, 20% were between 30-50 years and
remaining 22% were above 50 years. Out of 21 TVS motor bike owners 24% were
below 30 year, 47% were between 30-50 years and remaining 29% were above 50
years. It is found that out of the total 300 respondents maximum 26% were Honda
motor bike ownefrs and minimum 7% owned TVS motor bike.

49
b. Purchase by Occupation

There are total 54 respondents that has purchased Hero motor bike among which
30 are employed, 11 are students and remaining 13 are businessman. Yamaha
motor bike owners are 61, 20 are employed, 38 are students and 3 are
businessman. 82,80,23 are Baja, Honda, TVS motor bike owner.

50
c. Purchase by brand

Out of total 300 respondents 85 were Honda motor bike owners among which 34
purchased bike after seeing advertisement, 38 were influenced by family members
and 14 by friends. Likewise among 26 TVS bike owners 12 purchased seeing
advertisement, 9 were influenced by family members and remaining 5 by friends.
Total 81 purchased Bajaj motor bike, 61 Hero motor bikes and 47 Yamaha motor
bikes.

51
d. Purchase by Design/Style/Model

Among 77 Bajaj motor bike owners 69 purchased under influence of

Design/Style/Model. Among 50 Hero Motor bike owners 40 purchases, among 66
Honda motor bike owners 60 purchases, among 75 Yamaha motor bike owners 70
purchases and 32 TVS motor bike owners 12 purchases were because of
Designs/Style/Model respectively.

52
e. Purchase by Mileage.

As far as mileage is concerned 65 out of of 74,70 out 75,36 out of 51, 43 out of 60
and 30 out of 40 motor bike owners of Bajaj, Hero, Honda, Yamaha and TVS
respectively purchased motor bike because of mileage.

53
f. Purchase by power/speed

Outs of 74 respondents of Bajaj motor bike owners 67, 30 out of 42, 68 out of
72,70 out of 73 and 30 out of 41 purchases by power/speed of Hero, Honda,
Yamaha and TVS motor bikes respectively.

54
g. Purchase by Price

The respondents under this category of purchase by price mentioned that 55

optioned that Yamaha motor bikes are high priced and three optioned it as
medium out of the total 59. Whereas, considering TVS motor bikes of the total 68
respondents, 16 optioned as high priced, 47 as medium priced and 5 as low priced.

55
 h. Purchase by Technology

Out of 54 respondents of Hero motor bikes 41, 12 and 1 considered Technology as high,
medium and low respectively. Yamaha motor bike owner out of 68 respondents 65 and 3
considered Technology as high and medium.

56
 i. After Sales Service

TVS motor bike owners 50, 2 and 1 considered after sales service as good, average and
poor. Likewise 48, 13 and 6 Bajaj motor bike owners considered after sales service as
good, average and poor respectively.

57
 j. Satisfaction after Purchase

A total of 50 Bajaj motor bike owner out of which 58 claimed purchase as satisfied and
remaining 12 considered as unsatisfied. 23 TVS motor bike owner claimed as satisfied
and remaining 9 were unsatisfied out of 32.

58
 CHAPTER-5

FINDINGS AND RECOMMENDATION

 The age of the respondents were taken into account and categorized as, a below 30
years b. between 30-50 years and c. above 50 years. The total number of respondents
were 300. Out of the total 76 Bajaj motor bike owners, 45% were below 30 years,
30% were between 30-50 yuears and remaining 25% were above 50 years. Out of
total 65 Hero motor bike owner, 34% were below 30 years, 34% were between 30-50
years and remaining 32% were above 50 years. Out of total 79 Honda motor bike
owners 40% were below 30 years, 30% were between 30-50 years and remaining
30% were above 50 years. Out of total 59 Yamaha motor bike owners 58% were
below 30 years, 20% were between 30-50 years and remaining 22% were above 50
years. Out of 21 TVS motor bike owners 24% were below 30 year, 47% were
between 30-50 years and remaining 29% were above 50 years. It is found that out of
the total 300 respondents maximum 26% were Honda motor bike ownefrs and
minimum 7% owned TVS motor bike.

 54 respondents that has purchased Hero motor bike among which 30 are employed,
11 are students and remaining 13 are businessman. Yamaha motor bike owners are
61, 20 are employed, 38 are students and 3 are businessman. 82,80,23 are Baja,
Honda, TVS motor bike owner.

 300 respondents 85 were Honda motor bike owners among which 34 purchased bike
after seeing advertisement, 38 were influenced by family members and 14 by friends.
Likewise among 26 TVS bike owners 12 purchased seeing advertisement, 9 were
influenced by family members and remaining 5 by friends. Total 81 purchased Bajaj
motor bike, 61 Hero motor bikes and 47 Yamaha motor bikes.

 Among 77 Bajaj motor bike owners 69 purchased under influence of

Design/Style/Model. Among 50 Hero Motor bike owners 40 purchases, among 66
Honda motor bike owners 60 purchases, among 75 Yamaha motor bike owners 70
purchases and 32 TVS motor bike owners 12 purchases were because of
Designs/Style/Model respectively.

 As far as mileage is concerned 65 out of of 74,70 out 75,36 out of 51, 43 out of 60
and 30 out of 40 motor bike owners of Bajaj, Hero, Honda, Yamaha and TVS
respectively purchased motor bike because of mileage.

59
 74 respondents of Bajaj motor bike owners 67, 30 out of 42, 68 out of 72,70 out of 73
and 30 out of 41 purchases by power/speed of Hero, Honda, Yamaha and TVS motor
bikes respectively.

 The respondents under this category of purchase by price mentioned that 55 optioned
that Yamaha motor bikes are high priced and three optioned it as medium out of the
total 59. Whereas, considering TVS motor bikes of the total 68 respondents, 16
optioned as high priced, 47 as medium priced and 5 as low priced.

 54 respondents of Hero motor bikes 41, 12 and 1 considered Technology as high,

medium and low respectively. Yamaha motor bike owner out of 68 respondents 65
and 3 considered Technology as high and medium.

 TVS motor bike owners 50, 2 and 1 considered after sales service as good, average
and poor. Likewise 48, 13 and 6 Bajaj motor bike owners considered after sales
service as good, average and poor respectively.

 A total of 50 Bajaj motor bike owner out of which 58 claimed purchase as satisfied
and remaining 12 considered as unsatisfied. 23 TVS motor bike owner claimed as
satisfied and remaining 9 were unsatisfied out of 32.

RECOMMENDATIONS
60
After analyzing the findings, the following suggestions have been prepared. Great care
has been taken in making these suggestions for the improvement of consumer‟s opinion.

1. There is high demand for Honda motorcycles in the market, so their supply has to
be drastically improved so as to meet the demand of the customer.
2. Some of the respondents had suggested improving the mileage of Yamaha and
Honda bikes.
3. A considerable number of respondents opined that there is aneed to improve the
technology TVS bikes.
4. A vast majority of the respondents felt the design of Hero bikes should be
changed so as to attract customer.
5. The bikes recently introduced by Bajaj are mostly concerned about youth. So,
they should also consider middle-aged people while manufacturing.
6. Some of the respondents felt that the price of Yamaha is high and it should be
decreased so as to attract more customers.

The study concludes that Honda and Bajaj shows maximum satisfaction whereas
TVS remains last.

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 CHAPTER-6

CONCLUSION

It is concluded that most of the respondents go to company showrooms to get the required
information about two-wheelers. In this context, company should make more information
available at its showrooms.

Among the product attributes which influence consumer decision making process with
respect to two-wheeler, mileage, engine capacity, maintenance cost, safety, price and
availability of spare parts are of high importance to consumers. Resale value, after sales
service facilities and brand name assumed lower level of importance. So, company can
take some measures to enhance its brand image.

In case of consumer respondents perception on Suzuki Access two- wheeler product

attributes, majority respondents felt that bike price, price of spare parts, after sales
service, mileage and maintenance cost are reasonable. About half the respondents felt that
style quotient is very good. Hence, company is advised to take measures to improve the
style and appearance of its two-wheelers in order to make them more attractive to
customers.

62
 CHAPTER-7

SUGGESTIONS

As I came after researching on this topic few suggestions are recommend that, the
motorcycle companies have to design their motorcycles not so technically. Promotional
measures should be taken by two-wheeler companies.

Following implications should be followed-

 Good service centre
 Not so technical
 Services are available at reasonable rates
 Easily available of spare parts
 Should cover the people of all income group
 Should focus on customer needs
 Must aware the customer about the features of the Motorcycle.
 Aware them about different models
 Use good advertising technique which tell the customer about its engine, mileage,
maintainance
 Must educate the customer about the handling of technological techniques.

63
 BIBLIOGRAPHY

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65
 QUESTIONNAIRE

Respondents, I Rajnoor Singh student of B.B.A- 3 year is conducting a study on

“CONSUMER PERCEPTION AND BUYING BEHAVIOR TOWARDS
PURCHASE OF MOTORBIKES”. Answer the following by choosing the option
that best describes you.

1) What is your gender?

Male Female

2) What is your age?

Below 20 20-30 30-40 above50

3) What is your monthly household income?

10000-20000 2000-30000 30000-40000 above 50000

4) How many employed people are in your family?

1 2 3 4 5 or more

5) What is your education level?

Junior high school

Senior high/technical/professional school

College/university
Post graduate or above

66
 6) What is your current occupation?

Employed full time

Employed part time

Housewife

Unemployment

Student

7) Do you own a car?

Yes No

8) Which brand do you own?

Bajaj
Hero
Honda
TVS
Royal enfield
Suzuki
Mahindra & Mahindra
KTM
Yamaha
Kawasaki
Harley- Davisdon
Triumph India
Vespa India
Hyosung India

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9) Is this motorbike brought?

Brand New Second hand

10) At what price you purchased this motorbike?

10000-30000

30000-50000

50000-70000

70000-90000

90000-110000

110000-130000

130000 or above

11) What is your reference towards the purchase of motor bike? (rank it)

Value of money
Fuel consumption
Power

Riding comfort
Performance
Exterior/design
After-sale maintenance

Environmental friendly
Brand

IV

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 12) Kindly indicate the information sources used for purchasing a motorbike?

Dealer sale staff Friends and family member

Motor bike shows Newspaper advertising

TV advertising Brochure

13) What following usage mainly do you plan to use this motorbike
for?

For personal purpose

For family purpose
For business purpose

14) What about your satisfaction level about your current motorbike?

Very satisfied Dissatisfied Neither Satisfied Very satisfied

15) How important was the social image of your motorbike to purchase?

Very important
Rather important
Rather unimportant
Not at all

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 16) How often do you buy a motorbike?
Within a 2 years

Within a 3 years

Within a 5 years

Or more

17) Which type of motorbike do you prefer?

Bullet Sports bike

Small bike

18) If you would purchase a motorbike in future, which brand and model would you
like?

Brand: ___________ Model:_________

70