pre purchase behavior of customers regarding two...

PRE PURCHASE BEHAVIOR OF CUSTOMERS REGARDING TWO

WHEELER

KAVITA1

PRIYANKA2

1Doctoral Scholar, Department of Commerce, C.D.L.U., Bharat.

2Assistant Professor (Contract Basis), Department of Commerce, C.D.L.U., Bharat.

ABSTRACT

Purpose- The purpose of the paper is to analyze the pre purchase behavior of customers regarding

two wheeler in Sirsa (Haryana).

Design/methodology/approach- The pre purchase behavior among customers are analyzed using the

Descriptive Statistics, F- Test and Analysis of Variance. ANOVA is used for analysis the effects of

factors on customer behavior.

Findings- The study results shows the various dimension of factors that affect the pre purchasing

decision of the buyers. The analysis results that technical designing, financial Schemes, advertisement

mode and personal benefits are the factors that significantly affected by demographic variable so the

analysis reject the null hypothesis. There is a significant effect of demographic variables on

purchasing decisions of the customers.

Originality/Value- The study help the customers to check important variable before purchasing two

wheeler.

Keywords- Demographic Variables, Factor Affecting Pre Purchase Behavior, Goodwill of Two

Wheeler Brands, Features of Two Wheeler, F-Test and ANOVA.

Introduction

Consumer behavior is affected by various variables ranging from personality characteristics,

professional needs, attitudes and values, social economic and cultural background, Age, Gender,

professional status to social influences of various kinds exerted a family, friends, colleagues, and

society as a whole. The combination of these factors help the consumer in decision making. There are

four major factors which influences on the buying behavior of consumer i.e Cultural factors, Social

factors, Personal factors and Psychological factors.

The Automobile Industry is growing faster now two wheelers are more in demand. Market leadership

cannot be taken for granted because customer loyalty does not exist. India is the second largest

producer of the two-wheeler in the world. The customer today has a much wider choice. The two

wheeler segment contribute the largest volume in automobile industry in India. The country stands

next to China and Japan in terms of production and sales respectively. The industry is growing at a

rate of 30% annually. It consists of three segment viz. scooter, motorcycle and moped. Majority of

Indians, especially the youngster prefer motorbikes rather than cars. Capturing a large share in the two

wheeler industry, bikes and scooter covers a major segment. Bikes are considered to be the favorites

among the young generation, as they help in easy means of transport, styling and mileage and has

more visual appeal.

Consumers are the main mantra of the business, hence the business is consumer behavior

centric. So there is need to study the consumer behaviour. The study of consumer behaviour provides

INTERCONTINENTAL JOURNAL OF MARKETING RESEARCH REVIEWISSN:2321-0346 - ONLINE ISSN:2347-1670 - PRINT -IMPACT FACTOR :4.311VOLUME 5, ISSUE 9, SEPTEMBER 2017

An Open Access, Peer Reviewed, Refereed, Online and Print International Research Journalwww.icmrr.org 35 [email protected]

a sound basis for identifying and understanding customers‟ needs. Customers' behaviour study is

concerned with his buying behaviour rather than consumption. It might be easy sometimes easy but

might be impossible to predict the behaviour of consumer. The analysis results that technical

designing, financial Schemes, advertisement mode and personal benefits are the factors that

significantly affected by demographic variable.

The Indian two wheeler industry has shown rapid rate of growth in last one decade. Its share

in automobile industry has increased from 15% in 2001 to 16.3% in 2015. Annual sales by industry

have increased from Rs. 7486 crore in 2001 to Rs. 30096.82 crore in 2010. This is also the period

which witnessed the end of Hero Honda‟s 27 years old JV with Honda in 2010. Rising income levels,

reducing excise duties, higher loan tenure and loan-to-value offered by the financing companies have

all fuelled the growth of two-wheeler demand. Besides, mounting traffic chaos and limited parking

space has also increased the demand for two-wheelers from households that can afford or actually do

own a car (Shah, K. and Dangarwala, U.R., 2017).

Review of literature

Singh and Gupta (2012) studied the Indian Automobile Industry by making the SWOT

analysis of the Indian automobile industry.The study showed that India has the potential to develop

into a significant market for automobile manufacturers. Indian automotive industry holds significant

scope for expansion, both in the domestic market, where the vehicle penetration level was on the

lower side as compared to world average. Shende (2014) find out the factors influencing customer‟s

preferences for a particular segment of cars. The study helpful for existing and new entrant car

manufacturing companies in India to find out the customer expectations and their market offering.

Disposable income is the main point of this study which influenced both rural and urban sectors. The

demand for small cars was highest because lower per-capita incomes and high traffic density in urban

area mini and compact sub-segment uses by the customers. Thus the disposable income and

consumers behavior factors influenced the customers. Warne, D.P. and Rani, K. (2014) studied the

customers buying behavior towards small cars segment in Sirsa district. The Factor analysis and

ANOVA techniques had been used on data collected through well structured questionnaire. A data of

23 variables was used to test the significant difference between the groups of respondents that was the

most significant effect on customer‟s behavior towards small cars. The total 165 respondents had been

taken as a sample. According to this study, monthly income is the variable that mostly effect the

customers behavior regarding buying a small car.

Kaushal (2014) examined the buyer behavior in reference to car purchase intentions and

automobile marketing strategies in Uttar Pradesh. In the study, 400 car buyer respondent‟s survey has

been made and responses of all the respondents measured using five-point Likart scale. The

exploratory factor analysis was used to identify the various influencing factors of purchasing the car.

The study is useful for five factors such as security, quality, performance, value and technology and

these dimensions is better predictor of buyers purchase intention towards cars. Gupta and Agarwal

(2013) studied the consumer perception and behavior of the car owners of Alwar district. In this

study, pre testing has been done and a simple random sampling technique was adopted to select the

sample respondents. In this study, 500 interview schedules were prepared but 300 interview schedules

were filled up by the respondents. Descriptive statistical tools such as percentage a mean, median and

standard deviation had been used to describe the profiles of customers. ANOVA, T-test and F-test had

been used to test the significant difference between the groups of respondents in their perception and

satisfaction for selected independent variables like age, sex and income. This study concluded that

consumer behavior plays a vital role in cars marketing.



Chacko and Selvaraj (2014) studied on buying behavioral pattern of Women drivers regarding

B segment cars in Bangalore. Survey has been conducted in analyzing the customer‟s preferences in

buying a car by data collected through questionnaire from 50 consumers in Bangalore. The study

based on consumer buying behaviour, with the consumer playing the three distinct roles of users,

payer and buyer. Number of factors which are responsible for the changing purchase preference of the

consumer in four wheelers. Among those variables Safety, Maintenance, Mileage, Easy mode of

financing and easy driving are found to be pointed influencing buying preference of consumers.

Murugan and Ganapathy (2014) revealed the factors in the advertisements which influencing buying

motives, product recognition, buying decision and the information enhancement of the product. It also

explores the relationship between the effect of advertisements and post purchase behaviour of the

customers. Murugan and Shanthi (2014) focused on women consumers „awareness, preferences and

purchase decision of two wheeler in metro cities like Chennai, Mumbai, Delhi and Kolkata. Also

aimed to examine the influence of regions on women consumers on their preference, attitude, decision

making and satisfaction. A survey conducted and 400 completed questionnaires were used in data

analysis 100 in each four metro cities. The finding reveals that the perception of women consumers

towards the two wheeler purchase decision differ widely

Objectives

1. To study the origin and growth of two wheelers market.

2. To examine effect of the demographic variables on respondents for buying different two-

wheelers.

3. To explore the factors that influence on respondents behaviour while purchasing two-

wheelers.

Research Methodology

The study is based upon primary data collected from non-probability convenience sampling

from 150 respondents which includes students, businessman, serviceman and professional persons of

Sirsa district through well structured questionnaire.

H01: There is no significance effect of demographic variables on factors affecting buyer behaviour.

H02: There is no significance effect of factors on buyer‟s perception.

Tools and Technique

The responses so gathered were considered for further analysis. Descriptive statistics has been used

for the analysis of the gathered responses. Testing of hypotheses is made using Factor Analysis and

Analysis of Variance (ANOVA) techniques.

Analysis and Interpretation

The study deals with the analysis of customer‟s perception about the two wheelers being

manufactured by various companies. Hence, the company has to conduct regular surveys to know the

customer‟s opinions, needs, and preferences. This helps the company to manufacture the product like

wise for each customer‟s expectations. It has now become more important for the customer

confidence and higher positioning of buyer perception. Consequently, Surveys becomes genuine key

to success.



Chart 1 Brand Preference of two-wheelers

Chart 1 shows the customers perception regarding avalible two wheeler brands. According to the

responses Hero Honda is the brand that preferred by respondent in comparison to other available

brands.

Table 1

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .658

Bartlett's Test of Sphericity Approx. Chi-Square 2.819E3

Df 990

Sig. .000

Source: Data processed by SPSS (16.0)

Table1 shows the Kaiser-Meyer-Olkin Measure of Sampling Adequacy. The approximate chi-square

statistics is 2.819 with 990 degree of freedom, which is significant at the 0.05 level. The value of

KMO statistics (0.658) is also large (>0.6). The Sig. value for this analysis leads reject the null

hypothesis and conclude that there are correlations in the data set that are appropriate for factor

analysis.



Table 2

Descriptive Statistics

Mean

Std.

Deviation

Analysis

N

To what extent price affect your choice of this brand?(v1) 4.66 .858 150

To what extent fuel tank capacity affect your choice of this brand?

(v2) 1.77 .944 150

To what extent better resale value affect your choice of this brand?

(v3) 2.34 1.163 150

To what extent mileage affect your choice of this brand? (v4) 4.47 .721 150

To what extent low maintenance cost affect your choice of this

brand? (v5) 2.83 1.186 150

To what extent easy starting affect your choice of this brand? (v6) 4.33 .766 150

To what extent brake affect your choice of this brand? (v7) 4.33 .660 150

To what extent family members affect you while taking purchasing

decision? (v8) 4.13 1.441 150

To what extent Friends affect you while taking purchasing decision?

(v9) 3.45 1.364 150

To what extent colleagues affect you while taking purchasing

decision? (v10) 1.96 1.320 150

To what extent your own decision affects you while taking

purchasing decision? (v11) 4.45 .729 150

To what extent any others affect you while taking purchasing

decision? (v12) 1.31 .787 150

To what extent would you like to purchase two-wheelers on festival

season? (v13) 2.77 1.410 150

To what extent would you like to purchase two-wheelers to be given

as a gift? (v14) 1.94 1.352 150

To what extent would you like to purchase two-wheelers on new

year? (v15) 2.07 1.171 150

To what extent would you like to purchase two-wheelers on special

scheme? (v16) 3.99 1.198 150

To what extent would you like to purchase two-wheelers on any

others? (v17) 1.36 .735 150

To what extent you purchased this vehicle for service/job? (v18) 2.77 1.973 150

To what extent you purchased this vehicle for business? (v19) 1.99 1.599 150

To what extent you purchased this vehicle for status symbol?(v20) 1.72 1.254 150

To what extent for you purchased this vehicle for saving of time?

(v21) 4.13 .797 150



To what extent for you purchased this vehicle for household use?

(v22) 4.20 .875 150

To what extent from television you collect the information for this

vehicle? (v23) 3.41 1.765 150

To what extent from radio you collect the information for this

vehicle? (v24) 1.39 .644 150

To what extent from magazine you collect the information for this

vehicle? (v25) 1.46 .692 150

To what extent from sign board you collect the information for this

vehicle? (v26) 1.68 .992 150

To what extent from newspapers you collect the information for this

vehicle? (v27) 3.05 1.302 150

To what extent from friend circle you collect the information for this

vehicle? (v28) 4.41 .813 150

To what extent you satisfied with the performance of engine power of

your two-wheeler? (v29) 4.66 .834 150

To what extent you satisfied with the performance of pick-up of your

two-wheeler? (v30) 3.99 .700 150

To what extent you satisfied with the performance of safety of your

two-wheeler? (v31) 4.11 .710 150

To what extent you satisfied with the performance of control of your

two-wheeler? (v32) 4.12 .704 150

To what extent you satisfied with the color of your two-wheeler?

(v33) 4.57 .628 150

To what extent you satisfied with the head light of your two-wheeler?

(v34) 3.99 .525 150

To what extent you satisfied with the side indicator of your two-

wheeler? (v35) 3.59 1.030 150

To what extent you satisfied with the seating comfort of your two-

wheeler? (v36) 4.45 .719 150

To what extent you satisfied with the foot rest of your two-wheeler?

(v37) 3.71 1.113 150

To what extent you satisfied with the wheel design of your two-

wheeler? (v38) 3.83 1.039 150

To what extent you satisfied with the space of your two-wheeler?

(v39) 4.14 .956 150

To what extent you satisfied with the less waiting time in service

centre? (v40) 3.99 1.111 150

To what extent you satisfied with the co-operation of service centre

staff? (v41) 3.65 .906 150

To what extent you satisfied with the timely delivery of vehicle?

(v42) 3.39 .919 150



To what extent you satisfied with the quality of service? (v43) 3.81 .822 150

To what extent you satisfied with the service charges? (v44) 3.73 .932 150

To what extent you satisfied with the low cost of spare parts? (v45) 3.72 .970 150

Source: Primary Data processed by SPSS (16.0)

Table 2 shows the descriptive statistics in which Price, Mileage, seating Comfort, easy starting,

Engine Power, Break and Color have mean value grater than 4.5 which shows price, engine power

and color are the main features which customers are preferred when they have to take decisions for

purchasing Two wheelers. Customers will take the Purchasing decisions with the help of family

members.

Table 3

Total Variance Explained

Component

Initial Eigen Values Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total % of

Variance

Cumulative

% Total

% of

Variance

Cumulative

% Total

% of

Variance

Cumulative

%

1 5.267 11.704 11.704 5.267 11.704 11.704 3.800 8.445 8.445

2 4.625 10.277 21.981 4.625 10.277 21.981 3.599 7.998 16.443

3 3.029 6.731 28.712 3.029 6.731 28.712 3.313 7.363 23.806

4 2.970 6.600 35.312 2.970 6.600 35.312 3.177 7.060 30.866

5 2.524 5.609 40.922 2.524 5.609 40.922 2.960 6.578 37.444

6 2.134 4.743 45.664 2.134 4.743 45.664 2.446 5.434 42.879

7 1.897 4.215 49.880 1.897 4.215 49.880 2.356 5.236 48.115

8 1.554 3.453 53.332 1.554 3.453 53.332 2.348 5.217 53.332

Source: Data processed by SPSS (16.0) Extraction Method: Principal Component Analysis.

According to Table No. 3 the Eigen values are the variance of the principal components. It shows that

Eigen value greater than 1.0 results in 8 factors being extracted. From the cumulative percentage of

variance accounted for 53.332 of the total variance by these 8 extracted factors. The first component

accounts for the most variance and have the highest Eigen value, and the second component account

for the next variance factor and so on.



Table No.4. Dimensions of Different Factors according to Gender and Age

Sr.

No. Name of Factors

Mean

Value

Gender Age

F- value Sign.

Value F- value

Sign.

Value

1.

Technical

Designing and

Services

(4.05%)

Engine Power (V29) 4.66

.030 .864 1.248 .290

Pick Up (V30) 3.99

Safety (V31) 4.11

Control (V32) 4.12

Color (V33) 4.57

Seating Comfort

(V36) 4.45

Foot Rest (V37) 3.71

Space (V39) 4.14

Co-operation of Staff

(V41) 3.65

Timely Delivery

(V42) 3.39

Quality of Service

(V43) 3.81

2.

Advertisement

and Finance

Schemes

(2.90%)

Price(V1) 4.66

1.037 .310 2.913 .057

Mileage(V4) 4.47

Easy Starting(V6) 4.33

Brake(V7) 4.33

Any Others(V12) 1.31

As a Gift(V14) 1.94

Special Scheme(V16) 3.99


Status Symbol(V20) 1.72

Saving of Time(V21) 4.13

Household Use(V22) 4.20

Radio(V24) 1.39

Magazine(V25) 1.46

Sign Board(V26) 1.68

3

Mode of

Information

and Personal

Benefits

(2.49%)

Resale Value(V3) 2.34

.104 .747 1.811 .167

Low Maintenance

Cost(V5) 2.83

Colleagues(V10) 1.96

Service/Job(V18) 2.77

Business(V19) 1.99

Newspaper(V27) 3.05

4

Advisory,

Designing and

Showroom

Facilities

(3.93%)

Family Members(V8) 4.13

8.683 .004 5.153 .007

Friends(V9) 3.45

Own Decision(V11) 4.45

Wheel Design(V38) 3.83

Less Waiting 3.99



Time(V40)

Service Charges(V44) 3.73

5

Occasion and

Looks

(3.11%)

Festival(V13) 2.77

4.640 .033 1.232 .295

New Year(V15) 2.07

Head

Light(V34)

3.99

Side Indicator(V35) 3.59

6

Information

Tools and

Economically

(3.57%)

Television(V23) 3.41

11.740 .001 .295 .745 Low Cost of Spare

Parts(V45) 3.72

7 Extra Benefits

(1.77%) Fuel Tank(V2) 1.77 055 .814 .665 .516

8

Valuable

Information

(4.41%)

Friend Circle(V28) 4.41 3.367 .069 9.416 .000

Source: Primary Data Processed by SPSS 16.0

Table 4 shows the dimensions of different factors according to gender and age while the customers

took decision about purchasing a two wheeler. By implementing analysis of variance we can say that

occasion, looks and economic factors have values less than .05 which means that gender doesn‟t have

significant effect on purchasing decisions on the other hand age having singnificant value greater than

.05 which shows that age have significant effect on these factors. Two wheeler designing and show

room facility is the factor that is significantly affected by age and gender.

Table No. 5 Factors Dimension Based on Family Income and Educational Qualification

Sr.

No. Name Of Factors

Mean

Value

Family Income Education

Qualification

F- value Sign.

Value F- value

Sign.

Value

1.

Technical

Designing and

Service

(4.05%)

Engine Power (V29) 4.66

3.650 .007 3.951 .021

Pick Up (V30) 3.99

Safety (V31) 4.11

Control (V32) 4.12

Color (V33) 4.57

Seating Comfort

(V36) 4.45

Foot Rest (V37) 3.71

Space (V39) 4.14

Co-operation of Staff

(V41) 3.65

Timely Delivery

(V42) 3.39

Quality of Service 3.81



(V43)

2.

Financial

Scheme,

Features and

Advertisement

(2.90%)

Price(V1) 4.66

2.053 .090 .444 .642

Mileage(V4) 4.47

Easy Starting(V6) 4.33

Brake(V7) 4.33


As a Gift(V14) 1.94

Special Scheme(V16) 3.99


Status Symbol(V20) 1.72

Saving of Time(V21) 4.13

Household Use(V22) 4.20

Radio(V24) 1.39

Magazine(V25) 1.46

Sign Board(V26) 1.68

3

Personal

Benefits and

Mode of

Information

(2.49%)

Resale Value(V3) 2.34

1.687 .156 1.348 .263

Low Maintenance

Cost(V5) 2.83

Colleagues(V10) 1.96

Service/Job(V18) 2.77

Business(V19) 1.99

Newspaper(V27) 3.05

4

Advisory,

Designing and

Showroom

Facilities

(3.93%)

Family Members(V8) 4.13

3.612 .008 .539 .584

Friends(V9) 3.45

Own Decision(V11) 4.45

Wheel Design(V38) 3.83

Less Waiting

Time(V40) 3.99

Service Charges(V44) 3.73

5

Occasion and

Looks

(3.11%)

Festival(V13) 2.77

1.981 .100 1.211 .301 New Year(V15) 2.07

Head Light(V34) 3.99

Side Indicator(V35) 3.59

6

Information

Tools and

Economically

(3.57%)

Television(V23) 3.41

3.237 .014 1.756 .176 Low Cost of Spare

Parts(V45) 3.72

7 Extra Benefits

(1.77%) Fuel Tank(V2) 1.77 1.113 .353 1.477 .232

8

Valuable

Information

(4.41%)

Friend Circle(V28) 4.41 2.272 .064 17.645 .000

Source: Primary Data Processed by SPSS 16.0

Table No. 5 shows that technical designing, services, show room facilities and economical features

are significantly affected by family income and valuable information and technical services are

significantly affected by education qualification.



1. Technical Designing and Service: Two-wheelers companies have to take further steps to

promote Technical Designing and Service. Engine power affected the purchase behaviour of

customers with 4.05% of variance. Seating comfort, color, space, safety, control, pick-up are also

affected the purchase decision of customers. Two-wheelers companies are getting aware of

technological aspects and designing facts in changing scenario of technology.

2. Financial Scheme, Features and Advertisement: This factor consists 2.90% of variance

which is less variance show than the first factors. It reveals that the two-wheelers company should

provide financial discount and others scheme on two-wheelers. Two-wheelers companies should

provide good facilities to customers like easy starting, mileage and brake. Two-wheelers companies

should give concern on advertisement also to boost the sales.

3. Personal Benefits and Mode of Information: This factor consists of 2.49% variance which

is less than the first two factors. It means that two-wheelers companies should provide various

benefits like as resale value, low maintenance cost. It usually related to person personal benefits along

with human behaviour. Two-wheelers companies should concern on feedback mode of information to

boost the sales.

4. Advisory, Designing and Showroom Facilities: Includes 3.93% of variance. It reflects that the

two-wheelers companies should be concerned to how to affect the parents, friends of the customers.

The two-wheelers companies must be aware of designing facts. The two-wheelers companies should

feel concerned over the service being rendered at showroom to attract the customers.

5. Occasion and Looks: This factor consists 3.11% of variance. It divulges that the two wheelers

companies should give launch the discount schemes on various occasions like New Year and others

festivals to attract the customers. The two-wheelers companies should also concern on attractive looks

to attract the customers.

6. Information Tools and Economically: This factor consists 3.57% of variance. The two-wheelers

companies should give concern with the means for providing information to consumer so as to boost

the sales of the company. The companies should provide spare parts at low cost to the customers to

attract them.

7. Extra Benefits: This factor consists 1.77% of variance. It is the lowest variance of all the factors.

It usually related to personal benefits along with human behaviour.

8. Valuable Information: This factor consists 4.41% of variance. It is the highest variance carried by

the factor than the others factor. Hence, the company should start the special family programs to

promote the two-wheelers features.

Findings and Conclusions

Further, the new and improved features on the two wheelers, their stylish and trendy looks

and a rage with the country's youth who form a substantial influence in determining the consumer

behavior have ensured that the two wheelers remain on top of the automobile industry's agenda in

India. The study results show the various dimensions of the factors that affect the purchasing decision

of the buyers. The analysis results that technical designing, financial Schemes, advertisement mode

and personal benefits are the factors that significantly affected by demographic variable so the

analysis reject the null hypothesis. There is a significant effect of demographic variables on

purchasing decisions of the customers.



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