PROJECT REPORT

ON

“The study of consumer buying behavior towards Maruti Suzuki India Ltd.”

Submitted in partial fulfillment for the

PGP 09-11, IILM Institute for Higher Education,Gurgaon

Submitted to:

Supriya Kale

Submitted By:-

Koushan Das

Divyabhan Singh

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Table of Contents

Executive Summary............................3

Car Purchasing Preferences.................3

Objective of Study...............................5

Research...............................................6

Introduction of Automobile Industry...8

Maruti Suzuki.......................................9

Research Methodology......................10

Analyisis and Interpretation...............26

Facts and Findings..............................32

Conclusion and Recommendation......33

Questionnaire......................................34

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Executive Summary

Title

The Study of Consumer buying behavior towards small & medium car segment

with special reference 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:

CAR PURCHASING PREFERENCES

Primary factors of preference

Price and fuel efficiency are the primary features that consumers expect

today.

There will be an increase in the importance of fuel efficiency in

approximately three to five years from now for consumers.

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Sales service, brand image/prestige, and resale value are secondary factors

of choice today and will remain so for the coming three to five years.

Environmental issues have yet to take root in India and do not show signs of

becoming a major factor for coming three to five years.

Car size

Affluence and aspiration are growing in parallel—The Indian consumer

prefers a mid-size car.

Our survey reveals that approximately one in two Indian consumers prefer a

roomy mid-size family car.

Indian versus foreign brand

There is evidence of “buy-Indian” mindset across the metros

Approximately three in four respondents prefer an Indian brand over a

foreign one recently launched versus established model

Indian consumers are divided in their preference for recently launched

versus established models of cars.

According to the results of the survey, 58% of respondents nationwide

prefer a recently launched model by a slight plurality.

Color preference

The color pie in the Indian car market shows that White is the most

preferred color, closely followed by Black and Silver

Approximately 29% of respondents preferred White, followed by 27%

and 21% of respondents opting for Black and Silver/Grey respectively

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Thus the main issue in this project is to analyzing consumer buying pattern while

they make decision regarding purchase of car especially in small car segment.

PROBLEM

Thus problem of this project report is studying the consumer buying pattern

regarding small & medium car segment with special reference to Maruti Suzuki

India ltd and study about the consumer perception and attitude toward the same.

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

Impact of advertisement in buying behavior

Impact of celebrity endorsement in buying behavior

Effect of family &friends in buying behavior (Focus group)

RESEARCH is a scientific and systematic search for pertinent information on a

specific topic. It is also said to be the pursuit of truth with the help of study,

observation, comparison and experiment.

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RESEARCH METHODOLOGY is a way to systematically solve the research

problem.

RESEARCH DESIGN

Research Design is the overall description of all the steps though which the

projects have preceded from the setting of objectives to the writing of the project

report. The success of the project depends on the soundness of the research design,

which includes problem definition, specific method of data collection and analysis

and time required for the project.

The research that is undertaken is “Descriptive & exploratory” in nature. The

research is to find out the customers’ preference and attitude towards decision

making of selecting appropriate small & medium car which suits to their need.

DATA COLLECTION METHOD

Two methods of collecting data used for this research are as follows: -

PRIMARY DATA

Data is collected primarily through personal contact, meeting, interview and

questionnaire with the concerned authority of the organization and investors’.

SECONDARY DATA

Data are collected through secondary modes such as various published data,

reports, related books and websites.

SAMPLE SIZE

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The procedure adopted to select the sample was simple random sampling. The

sample consists of 50 respondents’ and was restricted to people residing in Delhi.

Introduction to the Automobile Industry

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The automobile industry is one of the core industries in India economy, whose

prospect is reflective of the economic resilience of the economy. Indian automobile

industry has come a long way to from the era of the Ambassador car to Maruti 800

to latest M&M Xylo. An industry is highly competitive with a number of global

and Indian companies present today. It is growing at a pace of around 18% per

annum for the last five years and is projected to be the third largest auto industry

by 2030 and just behind to US & China, according to a report. The industry is

estimated to be a US$ 34 billion industry. With the liberalization of the economy,

India has become the playground of major global automobile majors.

Indian Automobile industry can be divided into three segments i.e. two wheeler,

three wheeler & four wheeler segment. Two wheeler segments enjoys 75% market

share of automobile industry, followed by passenger vehicles with the 16% share

of market. Three wheeler segments have merely 4% share in domestic market. The

domestic two-wheeler market is dominated by Indian as well as foreign players

such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc.

Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the

country. And India is considered as strategic market by Suzuki, Yamaha, etc.

The major players have not left any stone unturned to be global. Major of the

players have got into the merger activities with their foreign counterparts. Like

Maruti with Suzuki, Hero with Honda, Tata with Fiat and latest Mahindra with

Renault.

In two-wheeler segment, motorcycles have the major share, Hero Honda, the

leading bike manufacturer has more than 50% share in two-wheeler segment,

followed by Bajaj Auto. In passenger car segment, Maruti Suzuki contributes the

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52% market share, with complete monopoly over the small car segments. M&M

enjoy the 42% market share in Multi Utility Vehicle in domestic market.

Maruti Suzuki India Ltd.

Established in December 1983, Maruti Suzuki India Ltd. has ushered a revolution

in the Indian car industry. This car is meant for an average Indian individual which

is affordable as well as has elegant appeal. Maruti Suzuki India Ltd. is the result of

collaboration of Maruti with Suzuki of Japan. At this time, the Indian car market

had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983.

This was from where Maruti took over.

The company has crossed the milestone of becoming the first Indian company in

March 1994, by manufacturing in totalit y one million vehicles. It is known for its

mass-production and selling of more than a million cars. Maruti Suzuki India Ltd.

is the India's largest automobile company which entered in the market with

affirmed aim to render high quality fuel – efficient and low - cost vehicles.

Sales figure in the year 1993 has reached up to 1,96,820. Maruti comes in a variety

of models in the 800 segment. Its cars operate on Japanese technology, pliable to

Indian conditions and Indian car users. By the year 1998-99, the company has

modernize the existing facilities and expand its capacity by 1,00,000 units.

Recently to ward off the growing competition, Maruti has completed Rs. 4 billion

expansion project at the current site, which has raised the total production capacity

to over 3,20,000 vehicles per annum. With the coming of each and every year, the

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total production of the company exceed by 4,00,000 vehicles.

In the small car segment it produces the Maruti 800 and the Zen. The big car

segment includes the Maruti Esteem and the Maruti 1000. Along with them, the

company also manufactures Maruti Omni. Other models includes Wagon R and the

Baleno.

Headquarter in Gurgaon, on 17 September 2007, Maruti Udyog was renamed to

Maruti Suzuki India Limited. Both in terms of volume of vehicles sold and revenue

earned, the company is India's leading automobile manufacturers and the market

leader in the car segment. Sales recorded in June 2008, is Rs. 4,753.58 crores

Small & medium car segment in india

Small cars are classified according to the price range which varies from 1 to 3

lakhs. It has the capacity to carry 4 passengers- 2 adults, 2 children. These are

basically entry level cars which are preferred by service group and middle income

group.

These cars are basically manufactured by - Maruti Udyog and Reva. While

companies like Volkswagon and Reva are yet to launch their models in the market.

RESEARCH METHODOLOGY

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Title of the study:- “The study of consumer buying behavior towards small &

medium car segment” The study showing the consumer buying behavior in small

& medium car segment. with special reference to Maruti Suzuki India ltd It

describe the attitude behind the purchasing of car by any middle income level

segment. This research is done at Delhi

Duration of the study:- Approx 30 days

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 & medium cars

To know what features and services attract the customers

Effect of brand image (Maruti Suzuki)in buying behavior

Impact of advertisement in buying behavior

Impact of celebrity endorsement in buying behavior

Effect of family &friends in buying behavior (Focus group)

Type of research: - It refers to the search for knowledge. It can be defined as

scientific and systematic search for pertinent information on a specific topic. It is

careful investigation or inquiry through search for new facts of any branch of

knowledge.

Research plays an important role in the project work. The results of

the project are completely based upon the research of the facts and figures

collected through the different ways of research.

That is why it is also called a movement from known to unknown.

Research is the original contribution to the existing stock of knowledge. This

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section includes the overall research design, the sampling procedure, the data

collection method, the field method, and analysis and procedure.

RESEARCH is a scientific and systematic search for pertinent

information on a specific topic. It is also said to be the pursuit of truth with the

help of study, observation, comparison and experiment. research methodology is a

way to systematically solve the research problem.

Research design;- A research design is a framework or blueprint for conducting

the marketing research project. It details the procedures necessary for obtaining the

required information, and its purpose is to design a study that will test the

hypotheses of interest, determine possible answers to the research questions, and

provide the information needed for decision making. Conducting exploratory

research, precisely defining the variables, and designing appropriate scales to

measure them are also a part of the research design. The issue of how the data

should be obtained from the respondents (for example, by conducting a survey or

an experiment) must be addressed. It is also necessary to design a questionnaire

and a sampling plan to select respondents for the study.

Research can classified in one of three categories:

Exploratory research

Descriptive research

Causal research

These classifications are made according to the objective of the research. In some

cases the research will fall into one of these categories, but in other cases different

phases of the same research project will fall into different categories.

Exploratory research has the goal of formulating problems more precisely,

clarifying concepts, gathering explanations, gaining insight, eliminating

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impractical ideas, and forming hypotheses. Exploratory research can be

performed using a literature search, surveying certain people about their

experiences, focus groups, and case studies. When surveying people,

exploratory research studies would not try to acquire a representative

sample, but rather, seek to interview those who are knowledgeable and who

might be able to provide insight concerning the relationship among

variables. Case studies can include contrasting situations or benchmarking

against an organization known for its excellence. Exploratory research may

develop hypotheses, but it does not seek to test them. Exploratory research is

characterized by its flexibility.

Descriptive research is more rigid than exploratory research and seeks to

describe users of a product, determine the proportion of the population that

uses a product, or predict future demand for a product. As opposed to

exploratory research, descriptive research should define questions, people

surveyed, and the method of analysis prior to beginning data collection. In

other words, the who, what, where, when, why, and how aspects of the

research should be defined. Such preparation allows one the opportunity to

make any required changes before the costly process of data collection has

begun.

There are two basic types of descriptive research: longitudinal studies and cross-

sectional studies. Longitudinal studies are time series analyses that make repeated

measurements of the same individuals, thus allowing one to monitor behavior such

as brand-switching. However, longitudinal studies are not necessarily

representative since many people may refuse to participate because of the

commitment required. Cross-sectional studies sample the population to make

measurements at a specific point in time. A special type of cross-sectional analysis

is a cohort analysis, which tracks an aggregate of individuals who experience the

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same event within the same time interval over time. Cohort analyses are useful for

long-term forecasting of product demand.

Causal research seeks to find cause and effect relationships between

variables. It accomplishes this goal through laboratory and field

experiments.

Here I use descriptive type of research design

Sample size and method of selecting sample

Sample size:- Sampling is simply the process of learning about population

on the basis of learning about population on the basis of a sample drawn from it.

The primary objective of the sampling survey is to obtain accurate and reliable

information about universe with minimum cost, time and energy and to set out the

limits of accuracy of such estimates.

For sampling I have chosen non-probability sampling technique.

Non probability sampling is based on the personal judgment. Under this method a

desired number of sample units are selected deliberately depending upon the

object of the enquiry so that only the important items representing the true

characteristics of the population are included in the sample.

Non-probability sampling is of two types:-

purposive sampling quota

convenience sampling

I have chosen convenience sampling under non-probability sampling technique

keeping all constrains in mind a sample size of 50 people is selected from Delhi.

This sample contains a mix type of customer (Servicemen, student and

businessmen) so as to remove any type be biased results. Research for the

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Importance of the Brand image of the company’s which is kept in mind by

customers while buying any product. As two-wheeler is a durable thing, the

customer interacts with the company only for little time. Therefore it becomes very

difficult to get the actual feedback from the customer. That’s why I have designed a

Questionnaire for the customers. As customer is king of the market. Today every

product is made according to desire or need of the company. And customers have

varied taste. Only consumers’ satisfaction can predict the actual scenario of the

market.

Method of selecting sample :- Two methods of collecting data used for this

research are as follows: -

PRIMARY DATA – Data is collected primarily through personal

contact, meeting, interview and questionnaire with the concerned

authority of the organization and respondents’.

SECONDARY DATA – Data are collected through secondary modes

such as various published data, reports, related books and websites.

Scope of study:- The scope of the project during the research and study will be

focused on the following parameters:

To know consume preference regarding small & medium cars

To know what features and services attract the customers

Effect of brand image (Maruti Suzuki)in buying behavior

Impact of advertisement in buying behavior

Impact of celebrity endorsement in buying behavior

Effect of family &friends in buying behavior (Focus group)

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Limitation of study:-Every research study has its limitations likewise this research

has some limitation .These are

The sample consists of 50 customers and was restricted to people residing in

Delhi

Sample of the population (universe)might be not the representative of whole

Customer perception is not always static.They frequently change their

attitude

Selection of car is also depends on income level of respondents

This research is based on current economic condition which is not seem to

be good

Theoretical framework

Consumer behavior:- 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 studies characteristics of individual

consumers such as demographics and behavioral variables in an attempt to

understand people's wants. It also tries to assess influences on the consumer from

groups such as family, friends, reference groups, and society in general. Customer

behavior study is based on consumer buying behavior, with the customer playing

the three distinct roles of user, payer and buyer. Relationship marketing is an

influential asset for customer behavior 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

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consumer retention, customer relationship management, personalization,

customization and one-to-one marketing. Social functions can be categorized into

social choice and welfare functions. Each method for vote counting is assumed as a

social function but if Arrow’s possibility theorem is used for a social function,

social welfare function is achieved. Some specifications of the social functions are

decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and

weak and strong Paretooptimality. No social choice function meets these

requirements in an ordinal scale simultaneously. The most important characteristic

of a social function is identification of the interactive effect of alternatives and

creating a logical relation with the ranks. 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

Belch and Belch define consumer behavior as 'the process and activities people

engage in when searching for, selecting, purchasing, using, evaluating, and

disposing of products and services so as to satisfy their needs and desires'

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);

The behavior of consumers while shopping or making other marketing

decisions;

Limitations in consumer knowledge or information processing abilities

influence decisions and marketing outcome;

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How consumer motivation and decision strategies differ between products

that differ in 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."

Information Search and Decision Making

Problem Recognition.  One model of consumer decision making involves several

steps. The first one is problem recognition—you 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 search—what 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.

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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 consumer’s life

in some other way (e.g., a word processing program or acne medication).

It is important to consider the consumer’s 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 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 consumer’s 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 consumer’s 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.

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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 one’s 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 need—e.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

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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 analyzing product characteristics and making the best possible deal?),

and situational characteristics (as previously discussed).

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” purchases —unplanned 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

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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. 

Consumers will tend to change their behavior through learning—e.g., they will

avoid restaurants they have found to be crowded and will settle on brands that best

meet their tastes.  Consumers differ in the values they hold (e.g., some people are

more committed to recycling than others who will not want to go through the

hassle).  We will consider the issue of lifestyle under segmentation.

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. Influencers do not ultimately have

the power decide between alternatives, but they may make their wishes known by

asking for specific products or causing embarrassing situations if their demands are

not met. The decision maker(s) have the power to determine issues such as:

Whether to buy;

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

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Which brand to buy;

Where to buy it; and

When to buy.

Note, however, that the role of the decision maker is separate from that of the

purchaser. From the point of view of the marketer, this introduces some problems

since the purchaser can be targeted by point-of-purchase (POP) marketing efforts

that cannot be aimed at the decision maker. Also note that the distinction between

the purchaser and decision maker may be somewhat blurred:

The decision maker may specify what kind of product to buy, but not which

brand;

The purchaser may have to make a substitution if the desired brand is not in

stock;

The purchaser may disregard instructions (by error or deliberately).

It should be noted that family decisions are often subject to a great deal of conflict.

The reality is that few families are wealthy enough to avoid a strong tension

between demands on the family’s resources. Conflicting pressures are especially

likely in families with children and/or when only one spouse works outside the

home. 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 children’s 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. The situation becomes even

more complex when more parties—such as children or other relatives—are

involved.

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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

reasoning—trying to get the other person(s) to accept one’s 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). Various manipulative strategies may also be used. One is

impression management, where one tries to make one’s side look good (e.g., argue

that a new TV will help the children see educational TV when it is really mostly

wanted to see sports programming, or argue that all "decent families make a

contribution to the church"). Authority involves asserting one’s "right" to make a

decision (as the "man of the house," the mother of the children, or the one who

makes the most money). Emotion involves making an emotional display to get

one’s way (e.g., a man cries if his wife will not let him buy a new rap album).

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AANALYSISNALYSIS & & INTERPRETATIONINTERPRETATION

Interpretation

Objective of the study : Consumer buying behavior towards small & medium car segment

For this research project ,I choose the questionnaire as research tool and take 50 participants who either willing to buy a car or having a car in small and middle segment. So the findings are as follows

Q. 1 Do you use cars?

84%

16%

Respondants status regarding car

Yes No

Interpretation;-Among 50 participants,84% respondents are currently having car .Through we can find out the potential market for car manufacturing companies

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Q.2 Which car do you use?

43%

2%7%

19%

29%

No of respondants

MarutiHondaGMTataHyundai

Interpretation:-Among 84% respondents who having his own car 43% participants are having Maruti, 29% are owning Hyundai, 19% are having Tata, 7% are owing Gm and rest are the customer of Honda Motors

Q.3 Is the present car up to your expectations?

Yes79%

No21%

Present car expectation

Yes

No

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Interpretation:- Approx 79% participants are satisfied with their current car i.e. their

expectation are fulfilled by the car and rest are unsatisfied with their car performance

Some factor like mileage ,performance and easy servicing fulfill their expectation

Q. 4 Are you planning to buy a new car in the near future?

Yes 74%

No26%

Future planning for new car

Yes No

Interpretation:-Every person wants to buy a car for himself or for his family. My research is focus on middle income prospects and thus

74% respondents are planning to buy a new car 26% respondents are not willing to buy new car in near future

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Q. 5 Which brand would you prefer?

Maruti45%

Hyundai25%

TATA17%

GM10%

Honda3%

Most prefer Brand

MarutiHyundaiTATAGMHonda

Interpretation:- Among 50 participants 54%of respondents prefer to buy a car of Maruti 30% participants like to purchase a car of Hyundai 20% respondants prefer TATA brand (Research is conducted before the

launching of nano ) 12% and 4 % are preferring ratio for respectively GM cars and Honda cars

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Q. 6 Why would you prefer the above mentioned car?

Interpretation:-The reason for the preference, among 50 respondents 38% preferred mileage follow by looks and style as 26% Comfort is taking third place by 24% followed by service and spares

Q.8. How frequently do you change your car? Why?

Interpretation:-Generally middle class respondents never echange their car so frequently so far. They will change their car after more then two year or above but the reason behind the changing the car are as follows

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Almost 54% participants said tat they fed up with their car Near 36% respondents wants to change their car due to advance technology Approx 8% change their car due to fashion & trend \

Q.9 What does affects your buying behavior generally while selecting any car in small & medium segment?

Interpretation:-Middle class segment generally influenced by family &friends followed by brand as

58% respondents influenced by family and friends 26 % participants chane their decision due to brand because they are brand

conscious Style & features are influenced only 6%

Facts & finding

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Findings :-

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

Existing customer are satisfied with their present car performance like mileage ,servicing etc

In current scenario Maruti will be market leader followed by Hyundai

Middle class segment like to buy any brand due to mileage followed by looks & style

They change their cars after two years or more, due to fed up with car and for new advance technology

They highly influenced by family and friends while making purchase

CONLUSIONCONLUSION & & RECOMMENDATIONRECOMMENDATION

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From the analysis of the responses received from the customers in Delhi,

overall findings show that Maruti Suzuki is the most prefered brand

among the participants.

Maruti Suzuki and Hyundai,Tata Motors are the biggest competitor in the small & madium car market..

Among the five attributes ( which we considered important for customers’ purchasing decision ) customers gave highest consideration to mileage followed by the looks and style. Other attributes like comfort, service and spares were considered later.

Most middle class person prefer Maruti Suzuki in this segment and

usually they use car for their transport.

Servicemen still would like to go for small & medium car but with

mileage with the first considerable thing followed by looks and style and

power.

Study shows that middle class segment highly influenced by family &

friends while purchasing the car. So companies should advertise their

product targeted to families

Gradually Hyundai & TATA captured the market of Maruti due to their

new launching in small cars like TATA nanoetc and Maruti should come

up with more cheaper cars with the regular Maruti Advantages like

mileage.

Questionnaire

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Objective: Consumer buying behavior towards small & medium car segmentQ. 1 Do you use cars?

o Yeso No

Q.2 Which car do you use? ………………………………………………

Company

Maruti

Honda GM TATA Hyundai

Model

Q.3 Is the present car up to your expectations? o Yeso No

Elaborate (Why Yes / Why No) __________________________________________________________________________________________________________________________________________Q. 4 Are you planning to buy a new car in the near future?

o Yeso No

Q. 5 Which brand would you prefer?

o Marutio Hondao GMo TATAo Hyundai

If other, then please specify…………………………..

Q. 6 Why would you prefer the above mentioned car?o Mileage

o Looks and style

o Comfort

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o Service and spares

o Other

If other, then please specify…………………………..

Q.8. How frequently do you change your car? Why?o 6-12 Monthso Up to 2 years o More than 2 yearo Till the life of the bike

Reasons

Status Fashion & Trend

Advance Technology

Fed up & Reseal

Other

If other, then please specify…………………………..

o Family or Friendso Advertisemento Brand o Style & Featureso Technical Advancement o Other Issue

If other, then please specify…………………………..

Personal Information:

Name :

Occupation :

Age : 1. 26-35 2. 36-45 3. Above 45

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Date : SignaturePlace :

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