A PROJECT REPORT ON Buying BehaviourPREPARED BY Paneliya Ketan Bodar Sanjay Kareliya Jalpa (M.B.A. – SEMESTER II) SUBMITTED TO Mrs. Neha Rathi (Academic Year 2013-2014)

Customer buying behaviour

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Page 1: Customer buying behaviour




“Buying Behaviour”


Paneliya Ketan

Bodar Sanjay

Kareliya Jalpa



Mrs. Neha Rathi

(Academic Year 2013-2014)

( IN-Gujarat)

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Acknowledgement Introduction of Industry Introduction of Compay History Industrial relations

Introduction of Topic Application of Topic Withins Companies Findings Conclution Appendix/Annexure Reference


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Introduction of industry

The automobile begins as early as 1769, with the creation of steam engined automobiles capable of human transport. In 1807, François Isaac de Rivaz designed the first car powered by an internal combustion engine running on fuel gas (hydrogen and oxygen), which -- although not in itself successful led to the introduction of the ubiquitous modern gasoline- or petrol-fueled internal combustion engine in 1885.

The automobile industry today is the most lucrative industry. Due to the increase indisposable income in both rural and urban sector and easy finance being provided by allthe financial institutes, the passenger car sales have increased at the rate of 38% perannum in June 2005-06 over the corresponding period in the pervious year. Furthercompetition is heating up in the sector with a host of new players coming in and otherlike Porsche, Bentley, Audi, and BMW all set to venture in the Indian markets. Onefactor that could help the companies in the marketing of their product is by knowing andcreating a personality for their brands.This report attempts to answer some of the questions regarding brand personality ofselected cars in India by conducting the market research. This report is categorized intoparts, deals with introduction to brand personality, companies selected, product and theindustry.The automobile industry today is the most lucrative industry. Due to the increase indisposable income in both rural and urban sector and easy finance being provided by allthe financial institutes, the passenger car sales have increased at the rate of 25% perannum in June 2005-06 over the corresponding period in the previous year. Furthercompetition is heating up in the sector with a host of new players coming in and otherslike Porches, Bentley, Audi, and BMW all set to venture in Indian markets. One factorthat could help the companies in the marketing of their products is buying Behavior ofthe consumers. The Buying Behavior of the customers can be studied by knowing theirperceptions about the cars in the market and about the possible entrants in the market.One such technique is by knowing and creating a personality for the brands.This personality sketching will help in knowing what a customer (or a potentialcustomer) thinks about a given brand of car and what are the possible factors guiding apossible purchase. Similarly, the idea of measuring the customer satisfaction will servethe same purpose of determining the customer perception. Thus, by measuring the”willingness of existing users of a car to recommend it to others” will help the carmanufacturers to chalk out the entire Customer Buying Behavior.

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Introduction of Company

Maruti Suzuki India Limited (/marutEi suzuki/), commonly referred to as Maruti and formerly known as Maruti Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki. As of November 2012, it had a market share of 37% of the Indian passenger car market. Maruti Suzuki manufactures and sells a complete range of cars from the entry level Alto, to the hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.

The company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In February 2012, the company sold its ten millionth vehicle in India


Originally, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors - the Hindustan Ambassador and Premier Padmini - were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to those made by Maruti in India, albeit not assembled or fully manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan.

The company exports more than 50,000 cars annually and has domestic sales of 730,000 cars annually. Its manufacturing facilities are located at two facilities Gurgaon and Manesar in Haryana, south of Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 550,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 14,50,000 units annually.

About 35% of name="marketshare" all cars sold in India are made by Maruti. The company is currently 56.21% owned by the Japanese multinational Suzuki Motor Corporation per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange of India.

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During 2007 and 2008, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983.

Industrial relations

Since its founding in 1983, Maruti Udyog Limited experienced problems with its labour force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started. Labour unrest started under management of Indian central government. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions.

Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA alliance, India pursued a disinvestments policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government, and the union has better protection while the company remains in control of the government.

The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited.

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Introduction of Topic

Purpose of study

The purpose of the study is to know the Brand preferred by the customers and change in

buying behavior can be estimated by this study. The marketing strategies can be designed

in accordance with this change. It will be helpful for the managers to make decisions.

Hence, this study should be conducted.

Scope of the study

The main purpose of the study is to know the “Impact of Brand preference among B-

segment cars on Buying Behavior of Customers at Belgaum city”. This study will provide

solutions to the management by understanding customers feedback.

Through this study Management will know :

The reason why people opt four-wheeler.

To know the features considered by the customers while purchasing a car.

To know the most preferred brand by the customers.

The scope of the study is restricted up to the Belgaum city.

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Objectives of the study

1. To find the impact of Brand preference among B-segment cars.

2. To understand the Buying behaviour of customers.

3. To know the facilities/services expected by the customers from the dealer.

4. To know the means of finance preferred by the customers.

5. To know the reason why people opt four-wheeler.

6. To know the significant attributes preferred by customers in a car.

Customer satisfaction index

some of the most advance thinking in the business worldrecognizes that customer relationships are best treated as assets, and that methodicalanalysis of these relationships can provide a road map for improving them“If you cannot measure it, you cannot improve it.” – Lord William Thomson Kelvin(1824-1907)Clause 8.2.1 in ISO9000: 2000 states:“As one of the measurements of the performance of the quality management system, theorganizations shall monitor information relating to customer perception as to whether theorganization has met customer requirements. The method for obtaining and using thisinformation shall be determined”The requirement has been there in the QS9000 standard clause 4.1.6 which says:“… Trends in customer satisfaction and key indicators of customer dissatisfaction shallbe documented and supported by objective information. These trends shall be comparedto those of competitors, or appropriate benchmarks, and reviewed by seniormanagement.”There is obviously a strong link between customer satisfaction and customer retention.Customer’s perception of service and quality of product will determine the success of theproduct or service in the market.With better understanding of customer’s perceptions, companies can determine theactions required to meet the customer’s needs. They can identify their own strengths andweaknesses, where they stand in comparison to their competitors, chart out the pathfuture progress and improvement. Customer satisfaction measurement helps to promotean increased focus on customer outcomes and stimulate improvements in the workpractices and processes used within the company.

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According to survey it is found that 68% of respondents Prefer Mileage as the

first most crucial feature considered while purchasing a car,and price is

considered as the second considerable feature i.e 60% and maintenance cost is

considered as the third considerable feature while purchasing a car i.e 56%.

It is found from the survey that 64% of the respondents are willing to pay 3-4 lakh

for a new car,20% of the respondents are willing to pay less than 3 lakh for a new

car, and 16% of the respondent are willing to pay 4-5 lakh rupees for a new car.

It is found that 84% of the respondent prefer Quick service as the most preferred

facilities\services expected from the dealer and the next preferred

facilities/services are one year free service i.e76% and Installment payment

facility i.e72%

It is found that 64% of the respondent prefer Bank loan as the most preferred

means of finance.

Maruti Alto stood first as the most preferred car among the B-segment cars

followed by Hyundai Santro and Maruti DLX stood last.

It is found from the survey that 68% of the respondents are owners of B-segment


It is found that 52% of customers opted car for comfort /convince rather than need

and status.

It is found that 38.24% of the respondents came to know about the car through

T.V advertisements and 32.35% of the respondents came to know about the car

through friends..

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It is found that in this segment the important features considered by the customers while buying a car are mileage, price & maintenance. So manufacturer has to consider these aspects to attract and retain customers thus making an effort to build a good brand image.

Discount on accessories and spare parts also act as influencing factors for

purchase decision. So dealer can give discounts on spare parts and accessories,

after sales for a period of a year or two to stimulate the customers.

Customers want service at their doorsteps but are unaware of the home delivery

facility provided by the dealers. So a measure has to be taken to create awareness

in this direction.

Most of the customers buy cars from bank loan rather than financial companies.

So the companies have to come up with attractive loan facilities to their


Word of mouth is effective media of communication. Hence the dealer should

keep the existing customers happy by providing good service and make customers

talk good about their service provided.

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Amreli although a small city, is dwelled by middle and higher-class people in majority.

Thus the market for four-wheeler has never been a dearth here. But of all the varieties

available in this segment, small cars are most preferred.

Customers in this segment want to adopt change into their life style. This has fostered

entry of varieties of small cars available nation-wide to flourish in this market. This has

enhanced the competition in this car segment. But Maruti with stood this competition by

retaining its market share to be the highest.

The results of the survey conducted showed that Maruti Alto Brand is the most preferred car followed by Santro and it also showed the buying behaviour of customers that the most of the customer purchase car based on mileage followed by price and maintenance.

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Please tell us about yourself

N a m e:______________________________________________




1) Please rank the following features when you buy a new car. (Starting from 1 to 9, 1 for the most preferred and 9 for the least preferred)

o Look/Aesthetics

o Price

o Mileage

o Maintenance

o Safety Features

o Company Service

o Space

o Ready Availability

o Comfort

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2) What is your budget for a new car?

o < 3 Lakh

o 3-4 Lakh

o 4-5 Lakh

3) Which of the following Facilities/Services do you expect from the dealer?

o Quick Service

o 1 year free Insurance

o Discount on Accessories

o Home Delivery

o Discount on Spare Parts

o Installment Payment Facility

o Discount on Stereo System

o Vehicle Registration Process

4) Which means of Finance would you prefer?

o Employee Loan

o Bank Loan

o Car Finance Companies

o Co-operative Society

o If any other Specify__________________________________________

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5) Rank the following in the order of preference. (Starting from 1 to 10, 1 for the most preferred and 10 for the least preferred)

o Maruti DLX

o Zen

o Alto

o Swift

o Wagon-R

o FiatUno

o Fiat Palio

Why do you rank the particular car as NO. 1?\

6) Do you own a Car?

o Yes

o No

(If No, skip the below Questions)

7) Why do you opt for a four-wheeler?

o Need

o Comfort/Convenience

o Status

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8) Do you find any difficulties in your Car?

o Yes

o No

If yes, what are they?

o Mileage

o Space

o Maintenance

o Comfort

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9) Name and dealer of your Previous and Presently Owned Car.

Name of the Car: Previous 1____________ 2____________ Present __________

Name of the dealer: Previous 1____________ 2 ____________ Present ___________

10) How did you get to know about this Car?(Tick any one).

o T.V advertisement

o Magazines/Newspaper

o Friends

o Existing Customers

o Car Finance Companies

o Any other please specify_____________________

11) Please tick the following attributes of your car.

a. Price: Expensive [ ] Reasonable [ ]

b. Style/Aesthetics: Stylish [ ] Simple [ ]

c. Comfort: More comfortable [ ] Less comfortable [ ]

d. Maintenance: Expensive [ ] Reasonable [ ]

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e. Fuel Efficiency: Satisfactory [ ] Not-satisfactory [ ]

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12) Given a Second chance which car would you buy from the same budget?

13) Please suggest any areas for improvement in your car dealer.

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