arun cb term paper

8/14/2019 Arun Cb Term Paper

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TERM PAPER

Submitted to- Mr. Ajay Chandel

Sub- Consumer BehaviorTopic- Students motive for buying a four wheeler

Submitted by:

ARUN CHAUDHARY

MBA 3 rd SEM

ROLL NO-RR1802B31

REGD NO- 10810504

GROUP-2(S.No- 6)


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ACKNOWLEDGEMENT

This term paper bears the imprint of many people and without their support it

would not have existed. First of all I would like to express my sincere ineptness

and profound sense of gratitude to my parents whose support in all manners had

made me capable to complete this project.

I acknowledge my deepest thanks to Mr. Ajay Chandel for all his care

and encouraging words and given suggestions at different point of times. At the

outset I would like to put on record my sincere gratitude to all of my friends for

giving me valuable ideas throughout of my project.

Arun Chaudhary

TABLE OF CONTENTS


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EXECUTIVE SUMMARY

NEED AND SCOPE OF STUDY

OBJECTIVES

LITERATURE REVIEW

THEORETICAL FOUNDATION

RESEARCH METHODOLOGY

DATA ANALYSIS AND INTERPRETATION

FINDINGS

CONCLUSION

BIBLIOGRAPHY

ANNEXURE

Executive Summary


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Objective of my study TO STUDY THE MOTIVATIONAL FACTORS WHICH

ENCOURAGE STUDENTS TO PURCHASE CARS? TO STUDY THE FACTORS WHICH AFFECT THE

PURCHASE DECISION OF STUDENTS?


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Analysis- This article describes that how with changing time consumer behavior towards

purchasing cars have changed. Now before purchasing a new car they go for extensive

research and now even the preferences have been changed. This article throw light on

this issue only.

Article 4- Consumer Behaviour: Turning to the Web and New C2C Tools

Consumers today have a multitude of sources from which to gather information during the

vehicle buying process, but the Internet tops the list. The web has become a standard resource in

the shopping process for eight out of 10 consumers when researching car purchases. However,

the way they use it is changing. As the web matures, vehicle buyers are visiting fewer sites and

focussing more on manufacturer and C2C websites and less on third-party information sites and

independent e-tailer sties.

Article 5- Marketing Changes in Consumer Buying Behaviour in Indian Scenario

Analysis -The Indian consumers of today are unique in the following respects:

1) Indian consumers have become value sensitive and are not much price sensitive as was the

case earlier. If they feel that a particular product offers them more value and its price is high,

even then they are willing to buy the product.2) The Indian consumers strictly follow their culture, tradition and values, as a result of which

foreign companies were forced to give an Indian touch to them in order to succeed in India.

McDonalds, MTV, Pepsi, Star TV, Coca Cola India and many more had to Indianise themselves

to flourish in India. Karva Chauth is celebrated with more zeal and enthusiasm than the

Valentine Day.

3) The Indian consumer of today gives preference to features of a product rather than its brand

name. The trend that higher segment consumers only buy the top brands has also come to an end.

4) Even after liberalization Indian companies and brands are doing very well. It is clearly evident

from the fact that despite many foreign brands being sold in India, Raymond is still Indias

largest textile company and Haldiram is doing well despite the presence of McDonalds and Pizza

Hut.

5) The consumers today are not confined to a single brand and prefer change rather than sticking


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to the same brand. Not often do we see any home with cars of the same brand or household

products of the same brand.

6) The use of credit card for shopping is a new emerging trend in India. Also consumers are

availing credit or loan from banks and other financial institutions to fulfill their needs and wants.

7) The Indian consumers are spending thick and fast on premium and luxury products.

8) The Indian consumers have shown another major change in their buying behaviour. They just

dont want availability of products, they also want better experience, services and ambience. This

has led to the growth of shopping malls where shopping, entertainment and better facilities are

all available under one roof.

9) The rural Indian consumers are also showing signs of change. They have all the modern

amenities at their home and their standard of living is fast improving. The rural households have

earned huge money due to price rise in real estate. They are also shifting towards industrial andservices sector, hence their purchasing power is increasing. It is reflected in their living standard

and possession of all electronic gadgets and luxury cars.

10) There is a stiff competition in the Indian market today and it has become a buyers market

from sellers market. Customers are the ultimate beneficiary of the fierce competition in the

market. Competition has reduced prices to a great extent and has forced the manufacturer to

maintain product quality to sustain in the highly competitive market.

Article 6- Social group influence on buyers

It is the customer, who makes the decision of buying something, right? But how does he/she

reach to that decision? There's a complete procedure and different stages to this

decision and as a marketer, you must know the process. For the reason that you are not

going to win a customer unless you are well in terms with the factors that influence the

buying behavior.

Article 7- How Customers Can Take Their Satisfaction Into Their Own Hands

It is fair to say that most consumers choose a desired product or service based on price, a goodsales pitch, appealing advertising or simply because it is a once in a lifetime offer. Whatever the motive for buying, the implicit objective is to obtain value for money. For eachconsumer the definition of value for money may be different but ultimately clients arecontent if their expectations are met.


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THEORETICAL FOUNDATION

AUTOMOBILE INDUSTRY IN INDIA

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that

Indian automobile industry will achieve mass motorization status by 2014.

Industry Overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile

Industry of India has come a long way. During its early stages the auto industry was overlooked

by the then Government and the policies were also not favorable. The liberalization policy and

various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian

Automobile Industry.

Indian auto industry, which is currently growing at the pace of around 18 % per annum, has

become a hot destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an economy, and

India is no exception to it. With the growth of transportation system the Automotive Industry of

India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian

economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can

be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.

Snippets

The first automobile in India rolled in 1897 in Bombay.


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India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.

Segment Know how

Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda

contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS

makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market

share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger

cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds

42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata

Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.

Miscellaneous
http://www.surfindia.com/automobile/hero-honda-motors-ltd.htmlhttp://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/bajaj-auto-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/mahindra-mahindra-ltd.htmlhttp://www.surfindia.com/automobile/tata-motors-ltd.htmlhttp://www.surfindia.com/automobile/tvs-motor.htmlhttp://www.surfindia.com/automobile/bajaj-auto-ltd.htmlhttp://www.surfindia.com/automobile/maruti-udyog-ltd.htmlhttp://www.surfindia.com/automobile/suzuki-motor-corporation.htmlhttp://www.surfindia.com/automobile/mahindra-mahindra-ltd.htmlhttp://www.surfindia.com/automobile/tata-motors-ltd.htmlhttp://www.surfindia.com/automobile/hero-honda-motors-ltd.html


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Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country

by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area

of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions

and insurance services to create a complete range of services required for both auto companies

and customers. It will also have a multi-purpose convention centre for auto fairs and product

launches.

The following links gives the complete picture of Indian Auto Industry:

Automobile History

The first auto vehicle rolled out in India at the end of 19th century.

Today, India is the the 2nd largest tractor and 5th largest commercial

vehicle manufacturer in the world. Hero Honda with 1.7M motorcycles a

year is now the largest motorcycle manufacturer in the world.

Industry Investment

On the cost front, OEMs eyeing India in a big way to source products

and components at significant discounts to home market. On the revenue

side, OEMs are active in the booming passenger car market in India.

Industry Growth

The passenger car and motorcycle segment in Indian auto market isgrowing by 8-9 per cent. The two-wheeler segment will clock 11.5% rise

by 2007. Commercial vehicle to grow by 5.2 per cent.

Vehicle Production

India is the 11th largest Passenger Cars producing countries in the world

and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4-

wheelers manufacturer. Hero Honda is the leading 2-wheelers

manufacturer.

Auto Export Passenger vehicle exports have grown over five times and two-wheeler

exports have reached more than double. Exports of auto components,

whose manufacturing costs are 30-40 per cent lower than in the West,

have grown at 25% a year between 2000 to 2005.
http://www.surfindia.com/automobile/auto-companies.htmlhttp://www.surfindia.com/automobile/automobile-history.htmlhttp://www.surfindia.com/automobile/industry-investment.htmlhttp://www.surfindia.com/automobile/industry-growth.htmlhttp://www.surfindia.com/automobile/vehicle-production.htmlhttp://www.surfindia.com/automobile/auto-export.htmlhttp://www.surfindia.com/automobile/auto-companies.htmlhttp://www.surfindia.com/automobile/automobile-history.htmlhttp://www.surfindia.com/automobile/industry-investment.htmlhttp://www.surfindia.com/automobile/industry-growth.htmlhttp://www.surfindia.com/automobile/vehicle-production.htmlhttp://www.surfindia.com/automobile/auto-export.html


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Auto Companies

Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors

India is the second largest player in passenger car market. Tata Motors is

the fifth largest medium & heavy commercial vehicle manufacturer in

the world.

Vehicle Distribution

Know about the number of vehicles registered as Transport or Non-

Transport in the Indian states and Union Territories.

Associations

Get all the contact details of Automobile Association of Upper India

(AAUI), Automotive Research Association of India (ARAI), Automobile

Association of Southern India (AASI), Automotive ComponentManufacturers Association of India (ACMA) and more

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors

Telco TVS Motors DC Designs Swaraj Mazda Ltd
http://www.surfindia.com/automobile/auto-companies.htmlhttp://www.surfindia.com/automobile/vehicle-distribution.htmlhttp://www.surfindia.com/automobile/associations.htmlhttp://www.surfindia.com/automobile/auto-companies.htmlhttp://www.surfindia.com/automobile/vehicle-distribution.htmlhttp://www.surfindia.com/automobile/associations.html


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Government has liberalized the norms for foreign investment and import of technology and that

appears to have benefited the automobile sector. The industry has adopted the global standards

and this was manifested in the increasing exports of the sector. After a temporary slump during

1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in

2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02.

Anticipating Consumer Changes

What do these findings tell us? They make it clear that consumer behaviour is evolving and that

automotive companies need to anticipate this evolution in order to be part of, or even influence,

the changes.

Effective web strategies will be vitally important, as the online landscape evolves rapidly with

the emergence of powerful consumer-to-consumer tools like blogs, discussion forums, social

networking sites and virtual worlds. Automotive companies will need to stay focussed on

environmental developments and evolving consumer attitudes about fuel-efficient and

alternative-fuel vehicles.Manufacturer/dealer collaboration in the form of effective retail integration and integrated lead

management will become more important than ever to satisfy increasingly sophisticated and

demanding consumers and to retain loyalty. And companies will need to establish and maintain a

true two-way dialogue with individual customers through personalised communication.


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MOTIVATORS FOR STUDENTS FOR PURCHASING A FOUR

WHEELER

PERSONAL SELLING:

CONSUMER BUYING BEHAVIOR

CONSUMER BUYING vs. ORGANIZATIONAL BUYING

Final (or ultimate) consumers purchase for:

personal, family, or household use

Organizational consumers purchase for:

further production,

usage in operating the organization, and/or resale to other consumers

In case of students almost all of them final consumers or they are the ultimate users of the

cars. It is rarely possible that a student does an organizational buying.

Consumer (students) Buying Behavior

The decision processes and acts of final household consumers associated with evaluating,

buying, consuming, and discarding products for personal consumption


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Consider the purchase an automobile. You generally will not consider different options until

some event triggers a need, such as a problem needing potentially expensive repair. Once this

need has put you "on the market", you begin to ask your friends for recommendations regarding

dealerships and car models. After visiting several dealerships, you test drive several models and

finally decide on a particular model. After picking up your new car, you have doubts on the way

home, wondering if you can afford the monthly payments, but then begin to wonder if instead

you should have purchased a more expensive but potentially more reliable model. Over the next

five years, the car has several unexpected breakdowns that lead you to want to purchase a

different brand, but you have been very happy with the services of the local dealership and

decide to again purchase your next car there.

In this particular case, the following generic model of consumer decision making appears tohold:

=====>need recognition

=====>information search

=====>evaluation of alternatives

=====>purchase decision

=====>post purchase behavior

Now consider the purchase of a quart of orange juice. You purchase this product when you do

your grocery shopping once per week. You have a favorite brand of orange juice and usually do

your grocery shopping at the same store. When you buy orange juice, you always go to the same

place in the store to pick it up, and never notice what other brands are on the shelf or what the

prices of other brands are. How is it that the generic model above works differently in this

second scenario? Why does it work differently? Why would we generally need the ministrations

of a sales person in the sale of a car, but we generally do not need the help of a salesperson in the

purchase of orange juice?

How can the marketer of orange juice get a consumer like you to exert more effort into

information search or to consider alternative products? How is it that the marketer of your brand


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got you to ignore alternative competing brands? What is the involvement of salespeople in sales

promotions that might be associated with products such as orange juice?

Consumer behavior researchers are not so interested in studying the validity of the above generic

model, but are more interested in various factors that influence how such a model might work.

INFLUENCES ON THE GENERIC MODEL

External

o Group

-e.g., cultural, family, reference group influences

o Environmental/situational

-e.g., time of day, temperature and humidity, etc. Internal

o Lifestyle, personality, decision making process, motivation, etc.

GROUP INFLUENCES ON STUDENT BUYING BEHAVIOR

Culture

The set of basic values, beliefs, norms, and associated behaviors that are learned by a member of

society.

Note that culture is something that is learned and that it has a relatively long lasting effect on the

behaviors of an individual. As an example of cultural influences, consider how the salesperson in

an appliance store in the U.S. must react to different couples who are considering the purchase of

a refrigerator.

Social Class

A group of individuals with similar social rank, based on such factors as occupation , education ,

and wealth. Here we can say that the social class for the students will be their colleagues only.

Reference Groups


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Groups, often temporary, that affects a person's values, attitude, or behaviors

E.g., your behaviors around friends at school/college are probably different from your

behaviors around your parents, no matter your age or stage in the family life cycle. If you

were a used car salesperson, how might you respond differently to a nineteen year old

prospect accompanied by her boyfriend from one accompanied by two girlfriends? Opinion leader

A person within a reference group who exerts influence on others because of special

skills, knowledge, personality, etc.

o You might ask the webmaster at work for an opinion about a particular software

application. Software manufacturers often give away free beta copies of software

to potential opinion leaders with the hope that they will in turn influence many

others to purchase the product. Family

A group of people related by blood, marriage, or other socially approved relationship. In

case of students their decision is affected is most by this only and the reason being that

they are ultimately financed by their parents or any other family member in most of the

cases.

ENVIRONMENTAL / SITUATIONAL INFLUENCES ON STUDENT

BUYING BEHAVIOUR BEHAVIOR

Circumstances, time, location, etc.

Do you like grapes? Do you like peas?

You might like grapes as a snack after lunch, but probably not as a dessert after a fancy meal in a

restaurant. You might like peas, but probably not as a topping on your pancakes. Everyday

situations cause an interaction between various factors which influence our behaviors. If you


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work for tips (a form of incentive related to commission) as a waiter or waitress, you must

certainly be aware of such interactions which can increase or decrease your sales.

If you are doing your Saturday grocery shopping and are looking for orange juice, you are

probably much more sensitive to price than if you stop at the quick store late at night, when you

are tired and cranky, after a late meeting at the office. A prospect shopping for a new automobile

while debating the wisdom of a necessary expensive repair to his car might be more interested in

what cars are on the lot than in shopping for the best deal that might involve a special order.

INTERNAL INFLUENCES ON STUDENT BEHAVIOR

Personality

A person's distinguishing psychological characteristics that lead to relatively consistent and

lasting responses to stimuli in the environment

We are each unique as individuals, and we each respond differently as consumers. For example,

some people are "optimizers" who will keep shopping until they are certain that they have found

the best price for a particular item, while other people are "satisficers" who will stop shopping

when they believe that they have found something that is "good enough." If you are a salesperson

in a retail shoe store, how might you work differently with these two personalities?

Lifestyle and Psychographics

Lifestyle is a pattern of living expressed through a person's activities, interests, and

opinions Psychographics is a technique for measuring personality and lifestyles to developing

lifestyle classifications

Motivation: Multiple motives


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Students usually have multiple motives for particular behaviors. These can be a combination of:

Manifest

known to the person and freely admitted Latent

unknown to the person or the person is very reluctant to admit

Note: different motives can lead to the same behavior; observing behavior is not sufficient to

determine motives.

Such various motives forces an individual/student whaen actually want to make a purchase for

the product.

How might a salesperson discover these motives? What features should a salesperson

emphasize?

CONCEPTUAL FRAMEWORK


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Introduction to buying motives Consumer or buyer is the central figure of all marketing

activities. It is the consumer who determines the growth, prosperity and even existence of a

business enterprise. Hence the marketer should always feel the pulse of customers. In order to

understand the pulse of the customers, the marketer needs to understand fully the working of

buyers mind. It helps him to plan his production and distribution to suit to the needs and

convenience of customers .It also helps him to plan suitable marketing strategies. Thus it is very

essential for every marketer to know his customers buying motives.

Buying motives Motive is a strong feeling, instinct, desire or emotion that makes a person to do

something. When a motive makes a person to buy a product, then it becomes a buying motive.

Thus buying motive means the influence and considerations which makes a customer to buy a particular product. According to D.J.Duncan, buying motives are those influences or

considerations which provide the impulse to buy, induce action or determine choice in the

purchase of goods and services . Buying motives are mainly two types, manifest motives and

latent motives. Manifest motives are those motives which are known to the customer and also

ready to admit them. But on the other hand latent motives are either known to the customer.

Buying motive can also be calculated as follows

1. Product or patronage motives

2. Emotional and rational motives

3. Inherent and learned motives

Product and patronage motives

a. Product motives : it refers to those influences and reasons which make the consumer to buy a

certain product in preference to another. These explain why people buy a certain product.

Product are of two types:

i. Primary product motives: These motives induce a consumer to purchase general class of the

product. These motives relate to the basic needs of people like hunger, thirst, sleep


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ii. Selective product motives: these motives determine which particular brand or item will be

purchased from the general class

b. Patronage motives: these are the motives which determine where or from whom products are

purchased. These are the considerations which induce a buyer to buy goods from specific stores.

Following are the key patronage motives:

i. Price

ii. Location

iii. Quality

iv. Variety

v. Servicesvi. Personality of the owner or salesman

Emotional or Rational motives

A. Emotional motives: these are the motives which are affected by the feeling of heart. Thus,

emotional motives are physiological and psychological needs such as thirst , hunger, sex

attraction etc. The emotional motives are of the following types;

i. Sex or romance

ii. Love of others

iii. Social acceptance motive

iv. Vanity motive

v. Recreation and relaxation motive

vi. Curiosity motive

vii. Emulative motive

viii. Comfort and convenience motive

B. Rational motives: these are the motives where a consumer takes the decision of purchasing a

product by his head and means i.e., after careful consideration and logical thinking. In making


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rational purchases, the consumer considers price, durability, dependability, efficiency etc.

Rational motives are of the following types:

i. Monetary gain

ii. Efficiency in operation

iii. Dependability motive

Inherent and Learned motives

A. Inherent motives : these are the motives for the satisfaction of which a consumer his best

efforts and if these motives are not satisfied he feels mental tension.

B. Learned motives: these are the motive which are acquired or learned by a consumer from the

environment and education. These motives are social status, social acceptance, religious belief,

fear, security etc.

Involvement

Has to do with an individual's

intensity of interest in a product and the importance of the product for that person

The purchase of a car is much more risky than the purchase of a quart of orange juice, and

therefore presents a higher involvement situation. This modifies the way that the generic model

works.

As involvement increases, consumers have greater motivation to comprehend and elaborate on

information salient to the purchase. A life insurance agent, for example, would typically be more

interested in contacting a young couple who just had a baby than an eighteen year old college

student - even though the new parents might be struggling to make ends meet while the student is

living more comfortably. Although the annual investment into a policy is much lower if started at

a younger age, most young college students are not open to thinking about long term estate

planning. A young couple with a new child, however, is much more open to thinking about


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issues associated with planning for the child's future education, saving to buy a house, or even

saving to take an extended vacation upon retirement.

TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES

Routinized

used when buying frequently purchased, low cost items used when little search/decision effort is needed e.g., buying a quart of orange juice once per week

Limited Problem Solving

used when products are occasionally purchased used when information is needed about an unfamiliar product in a familiar product

category

Extended problem solving

used when product is unfamiliar, expensive, or infrequently purchased e.g., buying a new car once every five years

Under what sorts of conditions the assistance of a salesperson would be needed? Not needed?

Usually student go through a extended problem solving before making their purchase decision

because they want to purchase a car which would suit their personality, increase their position in

fronts of friends etc. so before making final decision the go through a problem solving research.

POST-PURCHASE CONSUMER BEHAVIOR


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Satisfaction

After the sale, the student will likely feel either satisfied or dissatisfied. If the student believes

that s/he received more in the exchange than what was paid, s/he might feel satisfied. If s/he

believes that s/he received less in the exchange than what was paid, then s/he might feel

dissatisfied. Dissatisfied students are not likely to return as customers and are not likely to send

friends, relatives, and acquaintances. They are also more likely to be unhappy or even abusive

when the product requires post-sale servicing, as when an automobile needs warranty

maintenance.

The above idea can be modeled as Humans' basic exchange equation:

Profit = Rewards - Costs

Unfortunately, even a student who "got a good deal" with respect to price and other terms of the

sale might feel dissatisfied under the perception that the salesperson could have made even

better.

This idea is called equity theory , where we are concerned with:

Outcomes of A Inputs of A

vs.

Outcomes of B

Inputs of B

Consider, for example, that you have purchased a used car for $14,000 after finding that the

"e;blue book" value is listed at $16,000. You are probably delighted with the purchase until you

accidentally meet the prior owner who had received a trade-in of $10,000 on the car just a few

days before. That the dealer appears to have received substantially greater benefit than you could

lead to extreme dissatisfaction, even though you received good value for the money spent.


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(Note that the selling dealer might actually have paid $12,000 for the car at a statewide dealer's

auction, and then might have incurred another $1,000 in expenses associated with transporting

the car and preparing it for sale. Management of buyer perceptions is very important!)

An issue related to this is attribution theory . According to attribution theory, people tend to

assign cause to the behavior of others. Mary's life insurance agent advises her to purchase a

whole life policy, while her accountant advises her, "buy term insurance and invest the

difference.". The reason, explains the accountant, "is that insurance agents receive substantially

higher commission payments on sales of whole life policies."

If Mary believes that the insurance agent is recommending a product merely because he receives

a higher commission, she will likely be displeased with the relationship and will not take his

recommendation. If the agent is able to show Mary that the recommended product is the best

solution for her situation, then she will likely attribute his recommendation to having her best

interests in mind and will not be concerned about how it is that he is compensated for his

services.

Cognitive dissonance

It has to do with the doubt that a person has about the wisdom of a recent purchase

It is very common for people to experience some anxiety after the purchase of a product that is

very expensive or that will require a long term commitment. Jane and Fred, for example, signed

a one year lease on an apartment, committing themselves to payments of $1500 per month. A

week later, they are wondering if they should have instead leased a smaller $900 apartment in a

more rough part of town; they are not sure if they really can afford this much of a monthly

obligation. Dick and Sally, on the other hand, ultimately rented the $900 apartment, and now arewondering if the savings in rent will be offset by noisy and sometimes unsafe conditions in this

neighborhood.

Perhaps neither couple would be experiencing this anxiety if their landlords had given them just

the smallest of assurances that they had made a good decision. After a close on products that are


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expensive or that require a long term commitment, the salesperson should provide the prospect

with some reasons to be happy with the decision. Allow the car buyer to reinforce her own

positive feelings by calling her a week after the purchase to ask how things are going. Call the

new life insurance policy holder after two months to see if there are any questions; a lack of

questions can only help the buyer to convince himself that he did the right thing.

RESEARCH METHODOLOGY


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Research Problem: -To study the factors which affect the purchase behavior of students for buying cars.

Type Of Research: -

A DESCRIPTIVE RESEARCH DESIGN was used. Considering the time

constraints, descriptive research leading to conclusive result is the most

suitable design for this research.

Source Of Data Collection: -

Personal discussions (Primary source)

Questionnaire (Secondary source)

Articles from internet ( Secondary source)

The questionnaire was designed in such a way to cover as many aspects as

possible.

Sample Design:- CONVENIENCE SAMPLING

Sample Size: - 50

Sample Unit:- INDIVIDUAL

Geographical Location: - Lovely professional university

B. Questionnaire Design: ---


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A Questionnaire whether it is called a schedule, interview form or measuring instrument is a

formalized set of questions for obtaining information from the respondent

SOURCES OF DATA:The data has been collected from both primary and secondary sources, to get information

regarding the study .

PRIMARY DATA:

Primary data has been collected through questionnaires. The questionnaire was mostly related to

likely hood scale and perception of the customers against cars.

SECONDARY DATA :

Secondary data has been taken from bellow sources:

1. Pamphlets

2. Advertisement

3. Newspapers

4. Internet

DATA ANALYSIS AND INTERPRETATION


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1. Do you own a four wheeler? Yes

No

No. of respondents

YES 23

NO 27

Interpretation - no of students owning a car are almost equally distributed. From above we can

see the data ratio is of 27:23 which is approximately equal.

2. Which is your most preffered price brand for buying a four wheeler? 1-3 lks

3-5 lks

5-10 lks

10-15 lks No of respondents

1-3 lks 5

3-5 lks 12


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5-10 lks 23

10-15 lks 10

10-15

5-10

3-5

1-3

Interpretation- fron above we can interpret that maximum no of students prefer range of 5-10

lak as in india maximum range of cars lies in this section only.

3.While making a purchase decision on which factors you focus the most? Reliability

Safety

Product features

Price

Fuel efficiency


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Multiple Comparisons

Scheffe(I) focus (J) focus Mean

Difference (I-J)Std. Error Sig. 95% Confidence Interval

Lower Bound Upper BoundReliability Safety -1.50000 2.91453 .991 -11.1273 8.1273

product features 1.38889 1.68271 .952 -4.1694 6.9472Price -.25000 2.30414 1.000 -7.8610 7.3610fuel efficiency .50000 2.91453 1.000 -9.1273 10.1273

Safety Reliability 1.50000 2.91453 .991 -8.1273 11.1273 product features 2.88889 2.66059 .879 -5.8996 11.6773

Price 1.25000 3.09133 .997 -8.9613 11.4613fuel efficiency 2.00000 3.56956 .988 -9.7909 13.7909

product features Reliability -1.38889 1.68271 .952 -6.9472 4.1694Safety -2.88889 2.66059 .879 -11.6773 5.8996Price -1.63889 1.97315 .951 -8.1566 4.8788fuel efficiency -.88889 2.66059 .998 -9.6773 7.8996

Price Reliability .25000 2.30414 1.000 -7.3610 7.8610Safety -1.25000 3.09133 .997 -11.4613 8.9613

product features 1.63889 1.97315 .951 -4.8788 8.1566fuel efficiency .75000 3.09133 1.000 -9.4613 10.9613

fuel efficiency Reliability -.50000 2.91453 1.000 -10.1273 9.1273Safety -2.00000 3.56956 .988 -13.7909 9.7909

product features .88889 2.66059 .998 -7.8996 9.6773Price -.75000 3.09133 1.000 -10.9613 9.4613

Homogeneous Subsets

One wayANOVA

Sum of Squares Df Mean Square F Sig.Between Groups 24.847 4 6.212 .488 .745Within Groups 344.028 27 12.742Total 368.875 31


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Scheffe

Focus N

Subset for alpha = 0.05

1 product features 18 23.1111fuel efficiency 2 24.0000reliability 6 24.5000Price 4 24.7500Safety 2 26.0000Sig. .890Means for groups in homogeneous subsetsare displayed.

StatisticsFocus

N Valid 32Missing 0

Mean 2.81

Focus

Frequency Percent Valid PercentCumulativePercent

Valid reliability 6 18.8 18.8 18.8safety 2 6.2 6.2 25.0

product features 18 56.2 56.2 81.2 price 4 12.5 12.5 93.8fuel efficiency 2 6.2 6.2 100.0

Total 32 100.0 100.0


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Interpretation : THE MOST FOCUS IS ON PRODUCT FEATURES AS SHOWN BY THEGRAPH. Here maximum no of students are interested in product features, although brand is alsoa considerable point.

4. Which of the following provided you with most significant information for making your purchase decision?

Tv advertisement s

Newspapers &magazines

Online sources

Product demos

Sales representatives

Experienced users


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No of respondentsTv advertisement s 28

Newspapers &magazines 2

Online sources 5

Product demos 1

Sales representatives 4

Experienced users 10

Interpretation- from above data we can interpret that advertisement on tv impact the purchase

decisions of students a lot and one of the biggest reason vehind this the celebrity endorsement

done.

5. Why u want to buy a four wheeler? Safety

Economy luxury

Style


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Comfort

no of respondentssafety 15Economy luxury 7style 23comfort 5

Interpretation maximum no of students want to have a car just to show style in front of their friends. Although safety is also a considerable point in this.

Ques 6. Does the brand image of the four wheeler have any influence of your buying decision?

T-Test

One-Sample Statistics

N MeanStd.

DeviationStd. Error

Meaninfluence 32 1.22 .420 .074


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One-Sample Test

Test Value = 0

t Df Sig. (2-tailed)

MeanDifference

95% Confidence Intervalof the DifferenceLower Upper

influence 16.414 31 .000 1.219 1.07 1.37

T Test

Group Statistics

influence N Mean

Std.Deviation

Std. Error Mean

bm yes 25 23.4800 3.68691 .73738no 7 25.0000 2.23607 .84515

Frequencies

StatisticsinfluenceN Valid 32

Missing 0Mean 1.22


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Influence

Frequency Percent

ValidPercent

CumulativePercent

Valid yes 25 78.1 78.1 78.1

no 7 21.9 21.9 100.0Total 32 100.0 100.0

INTERPRETATION : THIS GRAPH SHOWS THAT 78% STUDENTS AREINFLUENCED BY THE BRAND IMAGE. It means that brand image have a significant impacton the purchase decision of the students.


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7. How far celebritiy endowrsement influence your buying decision? Highly influenced

Somewhat influenced

Neutral Less influenced

Not influenced

No of respondents

Highly influenced 12

Somewhat influenced 8

Neutral 15Less influenced 7

Not influenced 8

Interpretation although maximum no of students says that are neutral by celebrity endorsementstill many are influenced by it.


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8.How far the availability of service &spare parts influenced your choice? Highly influenced

Influenced

Neutral

Less influenced

Not influenced

No of respondentsHighly influenced 8

Influenced 28

Neutral 4

Less influenced 3

Not influenced 7


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Interpretation more than half of the students consider the services and avalibility of spare

parts before making a purchase decision.

9.What factors makes you to purchase it from a specific dealer? Loyalty

Service quality

Accessibility

Brand image

Loyalty 13

Service quality 12

Accessibility 3

Brand image 23


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Interpretation from above data we can conclude that maximum no of students are impacted

by the brand that is why they consult a same dealer before making a purchase of their car.

Ques10 Who influence you the most to buy the four wheeler?

StatisticsMostN Valid 32

Missing 0Mean 1.59

Most

Frequency Percent Valid PercentCumulative

PercentValid family 17 53.1 53.1 53.1

frds&relatives 12 37.5 37.5 90.6colleagues 2 6.2 6.2 96.9others 1 3.1 3.1 100.0

Total 32 100.0 100.0

Frequencies

StatisticsmostN Valid 32

Missing 0

Mean 1.59


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most

Frequency Percent

ValidPercent

CumulativePercent

Valid family 17 53.1 53.1 53.1frds&relative 12 37.5 37.5 90.6colleagues 2 6.2 6.2 96.9others 1 3.1 3.1 100.0Total 32 100.0 100.0

INTERPRERATION: THE REFERENCE GROUP WHICH INFLUENCED THESTUDENTS MOST ARE THEIR FAMILY.


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Since the funds for making purchase are generally provided to students by their family only sothe decision is influenced by them a lot.

11.Rate the factors that influence your decisions to buy four wheelers?

Highly infuenced Influenced Not influenced

Style 18 22 10

Price 35 7 8

Mileage 27 10 13

Product features 32 17 1

Technology 42 8 0

Safety 26 15 9

Comfort 41 9 0

Colour 47 3 0

Luxury 50 0 0


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Interpretation- almost all the above mentioned factors affects the actual purchase decision of

students.

Findings :Following are the important findings of the study.

Reliability:18.8% rely on the this factor the most.Safety:6.2%focus on the safety factor.

Product features :56.2% focus on the product features .while making a purchase decision & this is the highest %out of all.

Price:12.5% give weightage to this price factor.

Fuel efficiency:Only 6.2% give importance to this fuel factor.

Brand image :78% are totally influenced by the brand image & this is the highest of the both.21.9% are not at all influenced by this factor.

Reference group:Family:53% motivated through their families & holds the highest %.

Frds& relatives :

37.5% are influenced by frds & relatives.

Colleagues:Only 6.2% students give importance to their mates.


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CONCLUSION

The collected data has been analyzed and interpreted here. Tables and charts have been used to

make the data more clear.

In my opinion & study I have came to the conclusion that as this search is done on students ,sotheir motives , choice, preferences .for buying a four wheeler is also according to their age .Hereage really matters a lot in to their motive factors for four wheelers. As youngsters focus mostlyon the outer features of the product, so my findings are also according to this only.

As it is clear from the result that 56% students give importance to the product features .

78% are influenced by the brand image while they make their buying decisions.

53% are motivated by their familie s,in the study of reference group category.


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BIBLIOGRAPHY

REFERENCE TO A BOOK

Kothari, C.R. (2004), Research Methodology, New Age International publishers. , New Delhi.

Kotler, P. (2006), Marketing Management, Pearson publishers Ltd., New Delhi. Schiffman, kanuk(2009), Consumer behavior, Pearson publishers Ltd., NewDelhi.

REFERENCE FOR AN ARTICLE

frankfin, john, (2007) , INTERNATIONAL JOURNAL ON MARKETING , May 7 Sharma, pramod, (2005), Indian car market scenario changing , The Financialexpress, Nov Joshi , Karan , (2009), car market- a changing ball, The Financial express,March .

REFERENCE TO WEB PAGE

http%3A%2F%2Fwww.economicswebinstitute.org%2Fessays%2Fcarthai.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFRIsEDMgCrQnfTy_NFrt7tDI78uA&sig2=m6GdUADX47zMkac0BR nWig

http://www.sykronix.com/tsoc/courses/sales/sls_cons.htm

http://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf %2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVew

http://en.allexperts.com/q/Horses-Behavior-Issues-3329/2009/5/consumer-behaviour.htm

http://www.omaccanada.ca/en/ooh/strengths/behaviour/default.omac
http://www.sykronix.com/tsoc/courses/sales/sls_cons.htmhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://en.allexperts.com/q/Horses-Behavior-Issues-3329/2009/5/consumer-behaviour.htmhttp://www.sykronix.com/tsoc/courses/sales/sls_cons.htmhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://www.google.co.in/url?sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t21x6KYVewhttp://en.allexperts.com/q/Horses-Behavior-Issues-3329/2009/5/consumer-behaviour.htm


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ANNEXURE

QUESTIONNAIRE

I, Arun Chaudhary student of MBA III Semester at Lovely Professional University,

Phagwara is conducting a research on topic STUDENT MOTIVES FOR BUYING A CAR . Kindly help me

to gather the information by sparing your 10-15 minutes for filling the questionnaire. I will be

very thankful. I assure you that the information will be kept confidential.

A) DEMOGRAPHIC PROFILE

NAME: __________________________

CONTACT NO. -______________________

GENDER: Male Female

QUALIFICATION:

B) QUESTIONS

1. Do you own a four wheeler? YES

NO

2. Which is your most preffered price brand for buying a four wheeler? 1-5 lks

3-5 lks

5-10 lks

10-15 lks


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3. While making a purchase decision on which factors you focus the most? Reliability

Safety

Product features Price

Fuel efficiency

4. Which of the following provided you with most significant information for making your purchase decision?

Tv advertisement s

Newspapers &magazines

Online sources

Product demos

Sales representatives

Experienced users

5. Why u want to buy a four wheeler? Safety

Economy luxury

Style

Comfort

6. Does the brand image of four wheelers have any influence on your buying decision? Yes

No

7. How far celebrity endorsements influence your buying decision? Highly influenced

Somewhat influenced

Neutral


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Less influenced

Not influenced

8. How far the availability of service &spare parts influenced your choice?

Highly influenced Influenced

Neutral

Less influenced

Not influenced

9. What factors makes you to purchase it from a specific dealer?

Loyalty Service quality

Accessibility

Brand image

10. Who influenced you the most to buy a 4 wheeler? Family

Friends &relatives

Colleagues

Others (specify)

11. Rate the factors that influence your decisions to buy four wheelers?Highly influenced Influenced Not influenced

Style

Price

Mileage

Product features


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Technology

Safety

Comfort

Colour

Luxury

THANK YOU.

arun cb term paper

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