project on consumer buying decision process in purchasing economy class cars

A STUDY ON CONSUMER BUYING DECISION PROCESS OF ECONOMY CLASS CARS IN BENGALURU

Dissertation submitted in partial fulfilment of the requirements for the award of the

Degree of

MASTER OF BUSINESS ADMINISTRATION OF

BANGALORE UNIVERSITY By Guruprasad Upadhya 131GCMA044

Under the guidance of

Mr. A. Chandran

Assistant professor

R.V.INSTITUTE OF MANAGEMENT

Rashtreeya Sikshana Samithi Trust R V INSTITUTE OF MANAGEMENT

CA-17, 36th Cross, 26th Main, 4th „T‟ Block, Jayanagar, Bangalore – 560 041

2014–2015

A Study of Consumer Buying Decision Process of Economy Class Cars in Bengaluru

R. V. Institute of Management, Bengaluru

DECLARATION BY THE STUDENT

I hereby declare that “A Study on Consumer Buying Decision Process of

Economy Class Cars in Bengaluru” is the result of the project work carried

out by me under the guidance of Assistant Professor A. Chandran in partial

fulfilment for the award of Master‟s Degree in Business Administration by

Bangalore University.

I also declare that this project is the outcome of my own efforts and that it has not

been submitted to any other university or Institute for the award of any other degree

or Diploma or Certificate.

Place: Bengaluru Name: Guruprasad Upadhya

Date: Register Number: 131GCMA044



TABLE OF CONTENTS

Chapter No Chapter Headings Page

No

List of tables

List of figures

Executive summary

1

1.1 Automobile Industry

1.2History

1.3 Automobile Industry in India

1.4Growth

1.5Feature Trends in Automobile Industry

1.6Government Initiatives

01

01

04

06

06

07

2

2.1Introduction

2.2Defination

2.3Application of Consumer Behaviour

2.4Factors Influencing Consumer Behaviour

2.5Factors affecting consumer behaviour

2.6 Market Structure and Decision Process

2.7Development of Marketing Concept

2.8Implementing the Marketing Concept

2.9Role of Consumer Research

2.10STP

2.11Model and Process of Decision Making

2.12Economy Class Car

2.13Market Share in Passenger Cars in India

08

09

10

11

13

21

22

22

23

24

24

25

26

3 3.1Review of Literature

3.2Statement of the Problem

3.3Objective of the Study

3.4Scope of the Study

3.5Operational Definition

3.6Methodology

3.7Data collection

3.8Sampling

3.9Plan of Studies

3.10Limitation of the Study

28

33

34

34

34

35

35

35

36

36

4

Analysis and Interpretation 37-65

5

5.1 Findings

5.2Conclusion

5.3Suggestions

66

67

68

Bibliography

Annexure



List of Tables

Table no Description Pg no 2.1 Buying decision process 25

2.2 Passenger car differentiation 27

4.1 Depicting the Various cars owned by the respondents 37

4.2 Depicting the Number of Respondents owning the car 39

4.3 Depicting the Value or (price) of the various

respondents cars

40

4.4 Depicting the Various fuel types respondents

cars using

42

4.5 Depicting the Various Factors influenced the

Respondents at the time of buying a car

44

4.6 Depicting the Various factors that influenced the

respondents to buy the car over the other brands

46

4.7 Depicting the Car type the Target group prefer 48

4.8 Depicting the Various Respondents who are Brand

conscious

50

4.9 Depicting the Various perceptions of the Respondents

preference towards brands

52

4.10 Depicting the Various reasons that made the

Respondents to purchase their car

54

4.11 Depicting the Impact of colour on Target Groups

buying decisions

56

4.12 Depicting the Perceptions of Respondents about

economy class car prices

58

4.13 Depicting the Respondents various monthly Family

Income

60

4.14 Depicting the Various colours of the cars that the

respondents are more inclined to purchase

62

4.15 Depicting Respondents priorities while buying a car 64



List of Graphs

Figure no description Pg no

2.13 Market share of passenger cars in India 27

4.1 pie chart showing the various cars owned 38

4.2 Pie Chart depicting the number of respondents

owning the car

39

4.3 pie diagram showing the price of the various

respondents car

41

4.4 Diagram showing the fuel types respondents cars

using

43

4.5 pie chart showing the influencing factors at the

time of purchase of car

45

4.6 pie chart showing the various influencing group 47

4.7 diagram showing the car type the respondents

prefer

49

4.8 pie chart showing the respondents who are brand

conscious

51

4.9 pie chart depicting the perceptions of

respondent‘s preference towards brands

53

4.10 diagram showing the reasons that make

respondents to purchase the car

55

4.11 pie chart showing the importance of colour on

buying decision

57

4.12 pie chart showing the perceptions about

economy class car

59

4.13 diagram showing the respondents monthly

income

61

4.14 Pie chart showing the colours the respondents is

more inclined

63

4.15 diagram showing the various priorities while

buying the car

65



Executive Summery

In this Information Technology era importance of consumer behaviour cannot

be ignored. The manufacturer has understood that he is not the decider of

which products to be produced it is the consumer itself as there is a say

customer is the king.

This study is intending to identify the importance and factors that influence the

consumer in automobile industry to buy an economy class car. What are

consumer‘s preferences towards a particular brand and what are his view

points towards it. Also what is the information he uses before the purchase of

a car.

In this project brief study on automobile industry and its growth and evolution

has been analysed. Also the various factor affecting consumer decision

making and process is being analysed.

Various researchers‘ viewpoints and their views of consumer behaviour have

been analysed. Also study objectives and the type of survey method through

questionnaire are used and all the data are collected around urban areas.

Number of respondent considered is one hundred and their opinions has been

taken as a form of data collection and used for interpretation and suggestions

and outcome of the study is analysed.

Data collection is done from various sources such as magazines, reference

books from various authors, also various web sites regarding consumer

behaviour has been analysed. Also interpretation and analysis of data is done

and suggestions and conclusions are given for on how the consumers are

influenced by various factors knowingly and un-knowingly in their buying

decision process. Finally it is the consumer has to buy the products



CHAPTER 1

INTRODUCTION

1.1Automobile Industry

The automotive industry is a wide range of companies and organizations involved in

the design, development, manufacture, marketing, and selling of motor vehicles. It is

one of the world's most important economic sectors by revenue. The automotive

industry does not include industries dedicated to the maintenance of automobiles

following delivery to the end-user, such as automobile repair shops and motor fuel

filling stations.

Automotive industry is the key driver of any growing economy. It plays a pivotal role

in country's rapid economic and industrial development. It caters to the requirement of

equipment for basic industries like steel, non-ferrous metals, fertilisers, refineries,

petrochemicals, shipping, textiles, plastics, glass, rubber, capital equipments, logistics,

paper, cement, sugar, etc. It facilitates the improvement in various infrastructure

facilities like power, rail and road transport. Due to its deep forward and backward

linkages with almost every segment of the economy, the industry has a strong and

positive multiplier effect and thus propels progress of a nation. The automotive

industry comprises of the automobile and the auto component sectors. It includes

passenger cars; light, medium and heavy commercial vehicles; multi-utility vehicles

such as jeeps, scooters, motor-cycles, three wheelers, tractors, etc; and auto

components like engine parts, drive and transmission parts, suspension and braking

parts , electrical, body and chassis parts; etc

1.2History

The early history of the automobile can be divided into a number of eras, based on the

prevalent means of propulsion. Later periods were defined by trends in exterior

styling, size, and utility preferences. In 1768 the first steam powered auto-mobile

capable of human transportation was built by Nicolas-Joseph Cugnot. In 1807,

François Isaac de Rivaz designed the first car powered by an internal combustion

engine fuelled by hydrogen. In 1886 the first petrol or gasoline powered auto-mobile

http://en.wikipedia.org/wiki/Design

http://en.wikipedia.org/wiki/Business_development

http://en.wikipedia.org/wiki/Manufacture

http://en.wikipedia.org/wiki/Marketing

http://en.wikipedia.org/wiki/Selling

http://en.wikipedia.org/wiki/Motor_vehicle

http://en.wikipedia.org/wiki/Economic_sector

http://en.wikipedia.org/wiki/Revenue

http://en.wikipedia.org/wiki/Automobile_repair_shop

http://en.wikipedia.org/wiki/Motor_fuel

http://en.wikipedia.org/wiki/Filling_stations

http://en.wikipedia.org/wiki/Motor_vehicle

http://en.wikipedia.org/wiki/Nicolas-Joseph_Cugnot

http://en.wikipedia.org/wiki/Fran%C3%A7ois_Isaac_de_Rivaz

http://en.wikipedia.org/wiki/Internal_combustion_engine



http://en.wikipedia.org/wiki/Hydrogen



the Benz Patent-Motorwagen was invented by Karl Benz.[2]

This is also considered to

be the first "production" vehicle as Benz made several identical copies.

17th and 18th centuries

Ferdinand Verbiest, a member of a Jesuit mission in China, built the first steam-

powered vehicle around 1672 as a toy for the Chinese Emperor. It was of small

enough scale that it could not carry a driver but it was, quite possibly the first working

steam-powered vehicle.

Steam-powered self-propelled vehicles large enough to transport people and cargo

were first devised in the late 18th century. Nicolas-Joseph Cugnot demonstrated his

fardier à vapeur ("steam dray"), an experimental steam-driven artillery tractor, in

1770 and 1771. As Cugnot's design proved to be impractical, his invention was not

developed in his native France. The center of innovation shifted to Great Britain. By

1784, William Murdoch had built a working model of a steam carriage in Redruth.

The first automobile patent in the United States was granted to Oliver Evans in 1789,

and in 1801 Richard Trevithick was running a full-sized vehicle on the roads in

Camborne.

19th century

Many vehicles were in vogue for a time, and over the next decades such innovations

as hand brakes, multi-speed transmissions, and better steering developed. Some were

commercially successful in providing mass transit, until a backlash against these large

speedy vehicles resulted in the passage of the Locomotive Act (1865), which required

many self-propelled vehicles on public roads in the United Kingdom to be preceded

by a man on foot waving a red flag and blowing a horn. This effectively killed road

auto development in the UK for most of the rest of the 19th century; inventors and

engineers shifted their efforts to improvements in railway locomotives. Among other

efforts, in 1815, a professor at Prague Polytechnic, Josef Bozek, built an oil-fired

steam car. Walter Hancock, builder and operator of London steam buses, in 1838 built

a four-seat steam phaeton.

http://en.wikipedia.org/wiki/Benz_Patent-Motorwagen

http://en.wikipedia.org/wiki/Karl_Benz

http://en.wikipedia.org/wiki/History_of_the_automobile#cite_note-2

http://en.wikipedia.org/wiki/Ferdinand_Verbiest

http://en.wikipedia.org/wiki/Jesuit_China_missions

http://en.wikipedia.org/wiki/Steam

http://en.wikipedia.org/wiki/Nicolas-Joseph_Cugnot

http://en.wiktionary.org/wiki/dray#Noun

http://en.wikipedia.org/wiki/Artillery_tractor

http://en.wikipedia.org/wiki/William_Murdoch

http://en.wikipedia.org/wiki/Redruth

http://en.wikipedia.org/wiki/Patent

http://en.wikipedia.org/wiki/Oliver_Evans

http://en.wikipedia.org/wiki/Richard_Trevithick

http://en.wikipedia.org/wiki/Camborne

http://en.wikipedia.org/wiki/Brake

http://en.wikipedia.org/wiki/Transmission_%28mechanics%29

http://en.wikipedia.org/wiki/Steering

http://en.wikipedia.org/wiki/Public_transport

http://en.wikipedia.org/wiki/Locomotive_Act

http://en.wikipedia.org/wiki/Highway

http://en.wikipedia.org/wiki/Red_flag_%28politics%29

http://en.wikipedia.org/wiki/Horn_%28acoustic%29

http://en.wikipedia.org/wiki/Railway

http://en.wikipedia.org/wiki/Locomotive

http://en.wikipedia.org/wiki/Czech_Technical_University_in_Prague

http://en.wikipedia.org/wiki/Josef_Bozek

http://en.wikipedia.org/wiki/Walter_Hancock

http://en.wikipedia.org/wiki/Steam_bus

http://en.wikipedia.org/wiki/Phaeton_%28carriage%29



In 1867, Canadian jeweller Henry Seth Taylor demonstrated his 4-wheeled "steam

buggy" at the Stanstead Fair in Stanstead, Quebec, and again the following year. The

basis of the buggy, which he began, building in 1865, was a high-wheeled carriage

with bracing to support a two-cylinder steam engine mounted on the floor. What some

people define as the first "real" automobile was produced by French Amédée Bollée

in 1873, who built self-propelled steam road vehicles to transport groups of

passengers. The American George B. Selden filed for a patent on May 8, 1879. His

application included not only the engine but its use in a 4-wheeled car. Selden filed a

series of amendments to his application which stretched out the legal process,

resulting in a delay of 16 years before the US 549160 was granted on November 5,

1895. Karl Benz, the inventor of numerous car-related technologies, received a

German patent in 1886. The four-stroke petrol (gasoline) internal combustion engine

that constitutes the most prevalent form of modern automotive propulsion is a creation

of Nikolaus Otto. The similar four-stroke diesel engine was invented by Rudolf

Diesel. The hydrogen fuel cell, one of the technologies hailed as a replacement for

gasoline as an energy source for cars, was discovered in principle by Christian

Friedrich Schönbein in 1838. The battery electric car owes its beginnings to Ányos

Jedlik, one of the inventors of the electric motor, and Gaston Planté, who invented the

lead-acid battery in 1859.

The first carriage-sized automobile suitable for use on existing wagon roads in the

United States was a steam powered vehicle invented in 1871, by Dr. J.W. Carhart, a

minister of the Methodist Episcopal Church, in Racine, Wisconsin.It induced the State

of Wisconsin in 1875, to offer a $10,000 award to the first to produce a practical

substitute for the use of horses and other animals. They stipulated that the vehicle

would have to maintain an average speed of more than five miles per hour over a 200-

mile course. The offer led to the first city to city automobile race in the United States,

starting on July 16, 1878, in Green Bay, Wisconsin, and ending in Madison, via

Appleton, Oshkosh, Waupun, Watertown, Fort Atkinson, and Janesville. While seven

vehicles were registered, only two started to compete: the entries from Green Bay and

Oshkosh. The vehicle from Green Bay was faster, but broke down before completing

the race. The Oshkosh finished the 201 mile course in 33 hours and 27 minutes, and

http://en.wikipedia.org/wiki/Am%C3%A9d%C3%A9e_Boll%C3%A9e

http://en.wikipedia.org/wiki/George_B._Selden

http://worldwide.espacenet.com/textdoc?DB=EPODOC&IDX=US549160

http://en.wikipedia.org/wiki/Karl_Benz

http://en.wikipedia.org/wiki/Four-stroke_engine

http://en.wikipedia.org/wiki/Petrol_engine


http://en.wikipedia.org/wiki/Nikolaus_Otto

http://en.wikipedia.org/wiki/Diesel_engine

http://en.wikipedia.org/wiki/Rudolf_Diesel



http://en.wikipedia.org/wiki/Fuel_cell

http://en.wikipedia.org/wiki/Christian_Friedrich_Sch%C3%B6nbein



http://en.wikipedia.org/wiki/Electric_car

http://en.wikipedia.org/wiki/%C3%81nyos_Jedlik



http://en.wikipedia.org/wiki/Electric_motor

http://en.wikipedia.org/wiki/Gaston_Plant%C3%A9

http://en.wikipedia.org/wiki/Lead-acid_battery



posted an average speed of six miles per hour. In 1879, the legislature awarded half

the prize.

20th and 21st centuries

Steam-powered automobiles continued development all the way into the early 20th

century, but the dissemination of petrol engines as the motive power of choice in the

late 19th century marked the end of steam automobiles except as curiosities. Whether

they will ever be reborn in later technological eras remains to be seen. The 1950s saw

interest in steam-turbine cars powered by small nuclear reactors (this was also true of

aircraft), but the dangers inherent in nuclear fission technology soon killed these

ideas. The need for global changes in energy sources and consumption to bring about

sustainability and energy independence has led 21st century engineers to think once

more about possibilities for steam use, if powered by modern energy sources

controlled with computerized controls, such as advanced electric batteries, fuel cells,

photovoltaics, biofuels, or others.

1.3Automobile industry in India

The Automotive Industry in India is one of the largest automotive markets in the

world. It was previously one of the fastest growing markets globally, but it is

currently experiencing flat or negative growth rates. In 2009, India emerged as Asia's

fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand,

overtaking Thailand to become third in 2010. As of 2010, India was home to 40

million passenger vehicles. More than 3.7 million automotive vehicles were produced

in India in 2010 (an increase of 33.9%), making India the second fastest growing

automobile market in the world (after China). India's passenger car and commercial

vehicle manufacturing industry recently overtook Brazil to become the sixth largest in

the world, with an annual production of more than 3.9 million units in 2011. From

2011 to 2012, the industry grew 16-18%, selling around three million units.

According to the Society of Indian Automobile Manufacturers, annual vehicle sales

are projected to increase to 4 million by 2015, not 5 million as previously projected.

In India, automotive is one of the largest industries showing impressive growth over

the years and has been significantly making increasing contribution to overall

http://en.wikipedia.org/wiki/Sustainability

http://en.wikipedia.org/wiki/Energy_development

http://en.wikipedia.org/wiki/Biofuel

http://en.wikipedia.org/wiki/Car

http://en.wikipedia.org/wiki/List_of_countries_by_motor_vehicle_production





industrial development in the country. Presently, India is the world's second largest

manufacturer of two wheelers, fifth largest manufacturer of commercial vehicles as

well as largest manufacturer of tractors. It is the fourth largest passenger car market in

Asia as well as a home to the largest motor cycle manufacturer. The installed capacity

of the automobile sector has been 9,540,000 vehicles, comprising 1,590,000 four

wheelers (including passenger cars) and 7,950,000 two and three wheelers. The sector

has shown great advances in terms of development, spread, absorption of newer

technologies and flexibility in the wake of changing business scenario.

The Indian automotive industry has made rapid strides since de-licensing and opening

up of the sector in 1991. It has witnessed the entry of several new manufacturers with

the state-of-art technology, thus replacing the monopoly of few manufacturers. At

present, there are 15 manufacturers of passenger cars and multi-utility vehicles, 9

manufacturers of commercial vehicles, 16 of two/ three wheelers and 14 of tractor,

besides 5 manufacturers of engines. The norms for foreign investment and import of

technology have also been liberalised over the years for manufacture of vehicles. At

present, 100% foreign direct investment (FDI) is permissible under the automatic

route in this sector, including passenger car segment. The import of technology for

technology up-gradation on royalty payment of 5% without any duration limit and

lump sum payment of USD 2 million is also allowed under automatic route in this

sector. The Indian automotive industry has already attained a turnover of Rs. 1,

65,000 crore (34 billion USD) and has provided direct and indirect employment to

1.31 crore people in the country.

The growths of Indian middle class, with increasing purchasing power, along with

strong macro-economic fundamentals have attracted the major auto manufacturers to

Indian market. The market linked exchange rate, well established financial market,

stable policy governance work and availability of trained manpower have also shifted

new capacities and flow of capital to the auto industry of India. All these have not

only enhanced competition in auto companies and resulted in multiple choices for

Indian consumers at competitive costs, but have also ensured a remarkable

improvement in the industry's productivity, which is one of the highest in Indian

manufacturing sector.



1.4Growth

The growth story for the Indian automobile industry in 2014 rode on the two-wheeler

segment. The segment has clocked positive growth at 12.9 percent year-on-year to

reach sales of nearly 13.5 million units by October 2014.

India's automobile sector has also picked up pace, with eight of the country's leading

manufacturers' reporting combined passenger vehicle sales of 198,427 in November

2014, a 10 per cent annual rise. The rise in sales in November 2014 was led by Maruti

Suzuki, whose sales increased 17 per cent to 100,024 units in the domestic market.

The commercial vehicles (CV) industry in India has registered an increase of 8.59 per

cent in September 2014, as fleet owners have started to buy trucks in the anticipation

of an improved economic activity.

The automobile sector in Andhra Pradesh has a potential for US$ 1 billion investment

and US$ 1.50 billion output, according to a recent analysis by Automotive

Components Manufacturers‘ Association of India (ACMA) and city-based Andhra

Chamber of Commerce and Industry Federation (ACCIF).

1.5Future Trends in the Automobile Industry

As the auto-shows began in January 2014, the industry promised a blend of

technology and automotives. With the recession trend breaking its leashes form the

past two years, 2014 is expected to get back on track with the sales of automobiles in

the country. Almost Self-governing cars are predicted to be on the streets by 2020.

More than half the cars on the streets are going to be powered by diesel by 2020.

Industry watcher Gartner indicates that 30 percent of motorists want parking info. The

facility is likely to come up after glitches in the infrastructure catch up. High

Performance Hybrid cars are likely to gain greater popularity among consumers. The

Indian automobile industry has a prominent future in India. Apart from meeting the

advancing domestic demands, it is penetrating the international market too. Favoured

with various benefits such as globally competitive auto-ancillary industry; production

of steel at lowest cost; inexpensive and high skill manpower; entrenched testing and R



& D centres etc., the industry provide immense investment and employment

opportunities.

1.6Government Initiatives

The Government of India encourages foreign investment in the automobile sector and

allows 100 per cent FDI under the automatic route. To boost manufacturing, the

government had lowered excise duty on small cars, motorcycles, scooters and

commercial vehicles to eight per cent from 12 per cent, on sports utility vehicles to 24

per cent from 30 per cent, on mid-segment cars to 20 per cent from 24 per cent and on

large-segment cars to 24 per cent from 27 per cent.

India is probably the most competitive country in the world for the automotive

industry. It does not cover 100 per cent of technology or components required to

make a car but it is giving a good 97 per cent, highlighted Mr Vicent Cobee,

Corporate Vice-President, Nissan Motor‘s Datsun.

The vision of AMP 2006-2016 sees India, ―to emerge as the destination of choice in

the world for design and manufacture of automobiles and auto components with

output reaching a level of US$ 145 billion; accounting for more than 10 per cent of

the GDP and providing additional employment to 25 million people by 2016.‖



CHAPTER 2

THEORETICAL BACKGROUND

2.1Introduction

Consumer Behaviour is the study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of products, services,

experiences, or ideas to satisfy needs and the impacts that these processes have on the

consumer and society. Consumer behaviour is how individual customers, groups or

organizations select, buy, use, and dispose ideas, goods, and services to satisfy their

needs and wants. It refers to the actions of the consumers in the marketplace and the

underlying motives for those actions.

Marketers expect that by understanding what causes the consumers to buy particular

goods and services, they will be able to determine—which products are needed in the

marketplace, which are obsolete, and how best to present the goods to the consumers.

The study of consumer behaviour assumes that the consumers are actors in the

marketplace. The perspective of role theory assumes that consumers play various

roles in the marketplace. Starting from the information provider, from the user to the

payer and to the disposer, consumers play these roles in the decision process.

The roles also vary in different consumption situations; for example, a mother plays

the role of an influencer in a child‘s purchase process, whereas she plays the role of a

disposer for the products consumed by the family.

The study of consumers helps firms and organizations improve their marketing

strategies by understanding issues such as how

The psychology of how consumers think, feel, reason, and select between

different alternatives (e.g., brands, products, and retailers);

The psychology of how the consumer is influenced by his or her environment

(e.g., culture, family, signs, media);



The behaviour of consumers while shopping or making other marketing

decisions;

Limitations in consumer knowledge or information processing abilities

influence decisions and marketing outcome;

How consumer motivation and decision strategies differ between products that

differ in their level of importance or interest that they entail for the consumer;

and

How marketers can adapt and improve their marketing campaigns and

marketing strategies to more effectively reach the consumer.

2.2Definition

Consumer behaviour is "The study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of products, services,

experiences, or ideas to satisfy needs and the impacts that these processes have on the

consumer and society."

According to Engel, Blackwell, and Mansard, ‗consumer behaviour is the actions

and decision processes of people who purchase goods and services for personal

consumption‘.

According to Louden and Bitta, ‗consumer behaviour is the decision process and

physical activity, which individuals engage in when evaluating, acquiring, using or

disposing of goods and services‘.

Two different kinds of consuming entities: the personal consumer and the

organizational consumer.

Personal Consumer:- Buys goods and services for his or her own use, for the

use of the household or as a gift for a friend. The products are bought for final

use by individuals, who are referred to as end users or ultimate consumers.

Organizational Consumer: - Includes profit and non-profit businesses,

government agencies (local, state, national) and institutional (e.g. schools,

hospitals, and prisons), all of which buy products, equipment, and services in

order to run their organizations.



Behaviour occurs either for the individual, or in the context of a group (e.g.,

friend‘s influence what kinds of clothes a person wears) or an organization

(people on the job make decisions as to which products the firm should use).

Consumer behaviour involves the use and disposal of products as well as the

study of how they are purchased. Product use is often of great interest to the

marketer, because this may influence how a product is best positioned or how

we can encourage increased consumption. Since many environmental

problems result from product disposal (e.g., motor oil being sent into sewage

systems to save the recycling fee, or garbage piling up at landfills) this is also

an area of interest. Consumer behaviour involves services and ideas as well as

tangible products. The impact of consumer behaviour on society is also of

relevance. For example, aggressive marketing of high fat foods, or aggressive

marketing of easy credit, may have serious repercussions for the national

health and economy.

2.3Applications of consumer behaviour:

The most obvious is for marketing strategy—i.e., for making better marketing

campaigns. For example, by understanding that consumers are more receptive

to food advertising when they are hungry, we learn to schedule snack

advertisements late in the afternoon. By understanding that new products are

usually initially adopted by a few consumers and only spread later, and then

only gradually, to the rest of the population, we learn that (1) companies that

introduce new products must be well financed so that they can stay afloat until

their products become a commercial success and (2) it is important to please

initial customers, since they will in turn influence many subsequent

customers‘ brand choices.

Social marketing involves getting ideas across to consumers rather than selling

something. As a final benefit, studying consumer behaviour should make us

better consumers. Common sense suggests, for example, that if you buy a 64

liquid ounce bottle of laundry detergent, you should pay less per ounce than if

you bought two 32 ounce bottles. In practice, however, you often pay a size

premium by buying the larger quantity. In other words, in this case, knowing



this fact will sensitize you to the need to check the unit cost labels to

determine if you are really getting a bargain.

2.4Factors that influence the consumer behaviour are as

follows:

a. Marketing factors such as product design, price, promotion, packaging,

positioning and distribution.

b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and

attitudes towards the product.

d. Situational factors such as physical surroundings at the time of purchase,

social surroundings and time factor.

e. Social factors such as social status, reference groups and family.

f. Cultural factors, such as religion, social class—caste and sub-castes.

1. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time

depending on the nature of products. For example, kids prefer colourful and

fancy footwear, but as they grow up as teenagers and young adults, they prefer

trendy footwear, and as middle-aged and senior citizens they prefer more

sober footwear. The change in buying behaviour may take place due to several

other factors such as increase in income level, education level and marketing

factors.

2. Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave

differently. The differences in consumer behaviour are due to individual

factors such as the nature of the consumers, lifestyle and culture. For example,

some consumers are technoholics. They go on a shopping and spend beyond

their means.

They borrow money from friends, relatives, banks, and at times even adopt

unethical means to spend on shopping of advance technologies. But there are



other consumers who, despite having surplus money, do not go even for the

regular purchases and avoid use and purchase of advance technologies.

3. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For

example, the behaviour of the urban consumers is different from that of the

rural consumers. A good number of rural consumers are conservative in their

buying behaviours. The rich rural consumers may think twice to spend on

luxuries despite having sufficient funds, whereas the urban consumers may

even take bank loans to buy luxury items such as cars and household

appliances. The consumer behaviour may also vary across the states, regions

and countries. It may differ depending on the upbringing, lifestyles and level

of development.

4. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They

need to study the various factors that influence the consumer behaviour of

their target customers.

The knowledge of consumer behaviour enables them to take appropriate

marketing decisions in respect of the following factors:

a. Product design/model

b. Pricing of the product

c. Promotion of the product

d. Packaging

e. Positioning

f. Place of distribution

5. Leads to purchase decision:

Positive consumer behaviour leads to a purchase decision. A consumer may

take the decision of buying a product on the basis of different buying motives.

The purchase decision leads to higher demand, and the sales of the marketers



increase. Therefore, marketers need to influence consumer behaviour to

increase their purchases.

6. Varies from product to product:

Consumer behaviour is different for different products. There are some

consumers who may buy more quantity of certain items and very low or no

quantity of other items. For example, teenagers may spend heavily on products

such as cell phones and branded wears for snob appeal, but may not spend on

general and academic reading. A middle- aged person may spend less on

clothing, but may invest money in savings, insurance schemes, pension

schemes, and so on.

7. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living.

The more a person buys the goods and services, the higher is the standard of

living. But if a person spends less on goods and services, despite having a

good income, they deprive themselves of higher standard of living.

8. Reflects status:

The consumer behaviour is not only influenced by the status of a consumer,

but it also reflects it. The consumers who own luxury cars, watches and other

items are considered belonging to a higher status. The luxury items also give a

sense of pride to the owners.

2.5The factors that affect consumer behaviour

A. Marketing Mix Factors:

Each component of the market mix—product, pricing, promotion and place of

distribution—has a direct or indirect impact on the buying process of the consumers.

1. Product:

The special characteristics of the product, the physical appearance and the

packaging can influence the buying decision of a consumer.



2. Pricing:

The price charged on the product or services consumed by the consumer affect

the buying behaviour of the consumers. Marketers must consider the price

sensitivity of the target customers while fixing prices.

3. Promotion:

The variables of promotion mix such as advertising, publicity, public relations,

personal selling and sales promotion affect the buying behaviour of the

consumers. Marketers select the promotion mix after considering the nature of

the target audience.

4. Place:

The channels of distribution and the place of distribution affect the buying

behaviour of the consumers. The marketers make an attempt to select the right

channel and distribute the products at the right place.

B. Personal Factors:

The personal factors such as age, occupation, lifestyle, social and economic

status and the gender of a consumer may affect the buying decisions of the

consumers individually or collectively.

1. Age factor:

The age factor greatly influences the buying behaviour. For example,

teenagers prefer trendy clothes, whereas office executives prefer sober and

formal clothing.

2. Gender:

The consumer behaviour varies across gender. For example, girls prefer

certain feminine colours such as pink, purple and peach, whereas boys go for

blue, black and brown.



3. Education:

Highly educated persons may spend on books, personal care products, and so

on. But a person with low or no education may spend less on books and more

on personal grooming products.

4. Income level:

Normally, the higher the income level, the higher is the level of spending and

vice versa. But this may not be the case in developing countries, especially in

the rural areas.

5. Status in the society:

Persons enjoying higher status in the society spend a good amount of money

on luxury items such as luxury cars, luxury watches, and premium brands of

clothing, jewellery and perfumes.

C. Psychological Factors:

1. Learning:

It refers to changes in individual behaviour that are caused by information and

experience. For example, when a customer buys a new brand of apparels, and

is satisfied by its use, then they are more likely to buy the same brand the next

time. Through learning, people acquire beliefs and attitudes, which in turn

influence the buying behaviour.

2. Attitude:

It is human tendency to respond in a given manner to a particular situation or

object or idea. Consumers may develop a positive, or a negative, or a neutral

attitude towards certain products or brands, which in turn affects their buying

behaviour.



3. Motives:

A motive is the inner drive that motivates a person to act or behave in a certain

manner. A marketer must identify the buying motives of the target customers

and influence them to act positively towards the marketed products.

Some of the buying motives include the following factors:

a. Pride and possession

b. Love and affection

c. Comfort and convenience

4. Beliefs:

A belief is a descriptive thought that a person holds about certain things. It

may be based on knowledge, opinion, faith, trust and confidence. People may

hold certain beliefs of certain brands/products. Beliefs develop brand images,

which in turn can affect the buying behaviour.

D. Social Factors:

The social factors such as reference group‘s family and social status affect the

buying behaviour. Social factors in turn reflect a constant and dynamic influx

through which individuals learn different meanings of consumption.

1. Reference groups:

A reference group is a small group of people such as colleagues at workplace,

club members, friends circle, neighbours, family members, and so on.

The reference groups influence the members in following manner:

a. They influence members‘ values and attitudes.

b. They expose members to new behaviours and lifestyles.



c. They create pressure to choose certain products or brands.

2. Family:

The family is the main reference group that may influence the consumer

behaviour. Nowadays, children are well informed about goods and services

through media or friends circle, and other sources. Therefore, they influence

considerably in the decisions of buying both fast moving consumer goods and

durable items.

3. Roles and status:

A person performs certain roles in a particular group such as family, club,

organization, and so on. For example, a person may perform the role of a vice

president in a firm and another person may perform the role of a marketing

manager.

The vice president may enjoy higher status in the organization as compared to

the marketing manager. People may purchase the products that conform to

their roles and status, especially in the case of branded clothes, luxury

watches, luxury cars, and so on.

E. Cultural Factors:

There is a subtle influence of cultural factors on a consumer‘s decision

process. Consumers live in a complex social and cultural environment. The

types of products and services they buy can be influenced by the overall

cultural context in which they grow up to become individuals. Cultural factors

include race and religion, tradition, caste and moral values. Culture also

includes subcultures, sub-castes, religious sects and languages.

1. Culture:

It influences consumer behaviour to a great extent. Cultural values and

elements are passed from one generation to another through family,

educational institutions, religious bodies and social environment. The cultural



diversity influences food habits, clothing, customs and traditions. For

example, consuming alcohol and meat in certain religious communities is not

restricted, but in certain communities, consumption of alcohol and meat is

prohibited.

2. Subculture:

Each culture consists of smaller subcultures that provide specific identity to its

members. Subcultures include sub-castes, religious sects (Roman Catholics,

Syrian Catholics, Protestant Christians, etc.), geographic regions (South

Indians, North Indians) and language (Marathi, Malayalam, and Gujarati).

The behaviour of people belonging to various subcultures is different.

Therefore, marketers may adopt multicultural marketing approaches, that is,

designing and marketing goods and services that cater to the tastes and

preferences of the consumers belonging to different subcultures.

2.6The major variations are in market structure and demand, buyer

characteristics, and decisions processes and buying patterns:

(I) Market Structure and Demand:

The organizational marketer should recognise that several factors related to

market structure and demand distinguishes these buyers.

i. Geographical Concentration:

Buyers are more concentrated than in the consumer market. For example,

textiles are clustered pre-dominantly in the Western India.

ii. Fewer and Larger Buyer:

Buyers are also concentrated by size in the organizational market.

iii. Vertical or Horizontal Markets:



In a vertical market the product or service would be sold to virtually all

organizations in perhaps in one or two. Cotton knitting materials are used in

hosiery industries only. Horizontal markets are those which are broad, in

which the product or service is sold to a wide spectrum of industries.

i. Derived Demand:

Organizational demand is derived from consumer demand.

ii. Inelastic Demand:

Total industry demand for industrial goods is relatively unaffected by changes

in price in the consumer markets.

iii. Fluctuating Demand:

Organisational demand is characterised by much greater fluctuation than that

of consumer markets. Generally, organizational buying is closely related to the

economic cycle.

(ii) Buyer Characteristics:

There are several important organizational buyers characteristics typically

cited that differentiate them from final consumers.

i. Group Involvement:

As products purchased by organizational buyers are often costly and complex,

a group of individuals may be involved in the decision.

ii. Technical Knowledge:

Professional buyers, generally quite knowledgeable about the products or

services being bought, make the purchase decision.

iii. Rational Motivation:



Organizational buyers are often slowly directed by rational motivations. Such

factors are generally, economically based and can be translated into money, so

that costs and benefits may be carefully weighed.

(iii) Decision Process and Buying Pattern:

Organizational buying patterns are characterised by a number of differences

from final consumers in their decision process and purchase patterns.

1. Formality:

Often proposals, quotation requests and purchase contracts are involved which

lead to the formalities.

2. Complexity:

This is a prime cause if the formality necessary in purchasing. Products and

services are more technically complex for organizational buyers.

3. Lengthy Negotiations:

Organizations buying requires longer period than an individual consumer.

4. Large Orders:

Organizational purchases are large in size.

5. Direct Buying:

Marketing takes place from direct manufacturer to organizational buyers.

6. Importance of Service:

More than the final consumers, organizational buyers requires service because

it has a direct bearing on their costs, sales and profits.



2.7DEVELOPMENT OF THE MARKETING CONCEPT AND THE

DISCIPLINE OF CONSUMER BEHAVIOUR:

The field of consumer behaviour is rooted in the marketing concept, a

business orientation that evolved in the 1950s through several alternative

approaches toward doing business referred to respectively: -

1) The Production Concept.

2) The Product Concept.

3) The Selling Concept.

4) The Marketing Concept.

5) The Societal Marketing Concept.

1) THE PRODUCTION CONCEPT:

The production concept assumes that consumers are mostly interested in

product availability at low prices; its implicit marketing objectives are cheap,

efficient product and intensive distribution.

It makes sense when consumer are more interested in buying what‘s available

rather than wait for what they really want.

The main objective is to expand the market.

2) THE PRODUCT CONCEPT:

The product concept assumes that consumers will buy the product that offers

them the highest quality, the best performance, and the most features.

It ensures the company to improve the quality of its product and add new

features.

The product concept often leads to ―marketing myopia‖ that is focusing on

the product rather than the customer needs.

3) THE SELLING CONCEPT:

The assumption of the selling concept is that consumers are unlikely to buy

the product unless they are aggressively persuaded to do so – mostly through

―hard sell‖ approach.

The problem in this concept is that it fails to satisfy a customer.



Promotion can be done through advertisement, sales promotion and public

relation.

Today the selling concept is utilize be marketers of unsought products – that

is which people are not willing to buy it (such as life insurance).

4) THE MARKETING CONCEPT:

It started in 1950‘s when some marketers realized we can sell more products

by determining what consumer would buy.

Consumer need and wants became the firm‘s primary focus.

The marketers should made product what t can sell, instead of what it has

made.

5) THE SOCIETAL MARKETING CONCEPT:

Developing that product which benefits the society. Doing marketing in such

a way that it helps you in increasing your production & also giving benefits to

society.

The organization should determine the needs, wants and interest of target

markets and deliver the desired satisfaction more effectively and efficiently

then do competitors in a way that maintains or improves the customers and

society‘s well being.

2.8IMPLEMENTING THE MARKETING CONCEPT:

To identify unsatisfied consumer need, companies had to engage in extensive

marketing research. The marketing concept underscored the importance of

consumer research.

The strategic tools that are used to implement the marketing concept include

segmentation, targeting, positioning and the marketing mix.

2.9THE ROLE OF CONSUMER RESEARCH:

Consumer research describes the process and tools used to study consumer

behaviour.

Two theoretical perspectives that guide the development of consumer

research: -

Positive Approach:- It tend to be objective and empirical, to seek caused for

behaviour, and to conduct research studies that can be generalized to larger

population.



2.10SEGMENTATION, TARGETING, AND POSITIONING:

MARKET SEGMENTATION:

Dividing a market into distinct groups of buyers with different needs,

characteristics or behaviour who might require separate products or marketing

mixes. Market consists of buyers and, buyers differ in one or more ways.

They may differ in their wants, resources, locations, buying attitudes, and

buying practices.

MARKET POSITIONING:

Formulating competitive positioning for a product and a detailed marketing

mix. Developing a distinct image for the product or service in the mind of the

consumer, that will differentiate with the competitors.

MARKET TARGETING:

The process of evaluating each market segments attractiveness and selecting

one or more segments to enter.

MARKETING MIX:

The marketing mix consists of a company‘s service and/or product offerings

to consumers and the methods and tools it selects to accomplish the exchange.

The marketing mix consists of four elements:

1) The product or service that is the features, designs, brands, and packaging

offered, along with post purchase benefits such as warranties and return

policies.

2) The price – the list price, including discounts, allowances, and payment

methods.

3) The place – the distribution of the product or service through specific store

and non store outlets.

4) Promotion – The advertising, sales promotion, public relations, ad sales

efforts designed to build awareness of and demand for the product or service.



2.11CONSUMER BEHAVIOUR & DECISION MAKING ARE

INTERDISCIPLINARY:

Consumer Behaviour was a new field in the mid of late 1960, because the

marketing theorists borrowed the concepts from other scientific disciplinary

that is :-

Psychology The study of the individual, Sociology The study of groups,

Social Psychology The study of how an individual operates in groups,

Anthropology the influence of society on the individual, and Economics to

form the basis of the new marketing discipline.

A SIMPLIFIED MODEL OF CONSUMER DECISION MAKING:

The process of consumer decision making can be viewed as three distinct but

interlocking stages: the input stage, the process stage, and the output stage.

The Input Stage Influences the consumer‘s recognition of a product

need and consists of two major sources of information, the firm‘s

marketing efforts (the product itself, its price, its promotion and where

it is sold) and the external sociological influences on the consumers.

The Process Stage It is the model focuses on how consumers make

decisions. The psychological factors inherent in each individual.

The Output Stage It is the consumer decision making model consists

of two closely related post decision activities.



Table 2.1Buying decision process steps involves:-

.

2.12Economy Class car:

An economy car is an automobile that is designed for low cost purchase and

operation. Typical economy cars are small, lightweight, and inexpensive to buy.

Economy car designers are forced by stringent design constraints to be inventive.

Many innovations in automobile design were originally developed for economy cars.

an economy car has varied with time and place, based on the conditions prevailing at

the time, such as fuel prices, disposable income of buyers, and cultural mores. In any

given decade, there has generally been some rough global consensus on what

constituted the minimum necessary requirements for a highway-worthy car,

constituting the most economical car possible. today economy cars have specialised

into market niches. The small city car, the inexpensive-to-run but not necessarily very

small general economy car, and the performance derivatives that capitalise on light

weight of the cars on which they are based. Some models that started as economy cars

such as maruti, tata, M&M etc.

Problem recognition

Information search

Evaluation

Decision

Buy

Dissatisfaction= brand

Rejection

Satisfaction= brand Acceptance



Various passenger car companies in India are:-

Maruti Suzuki

Mahindra & Mahindra

TATA Motors

Honda cars India

Ashok Leyland ltd

Toyota

Volva

Ford

Hyundai motor India ltd

Nissan

Datsun

Fiat India

Skoda India ltd

Volkswagen

Renault

Table 2.2Passenger car are differentiated based upon:

Fuel type

Patrol

Diesel

Electric

CNG

Body type

Hatchback

Sedan

SUV/MUV

Mini van

Seating capacity

Up to 5

6-8

9 and above

Transmission

Automatic or manual

Engine type

Up to 75bhp

76-100bhp

101-150bhp

151-200bhp

201bhp and more



2.13Market share of various passenger cars in India as on 2014

Fig 2.1



CHAPTER THREE

DESIGN OF THE DISSERTATION

3.1Review of Literature

According to Mitchell and Walsh (2004):

Mitchell and Walsh pointed out that males and females want different products and

they are likely to have different ways of liking and obtaining these. Gender has an

important role in consumer behaviours. Because, the differences between men and

women about expectation, want, need, life-style etc. reflect to their consumption

behaviours.

According to ―Girrrl power and boyyy (2000):

Girrrl power and boyyy suggested that past, present, and future of consumer gender

identity‖ by (Kacen, 2000), consumption has always been gendered. Most of the

products made these days have a specific gender type, some have masculine features

and some have feminine features to them. Products‘ gender are created and sustained

by marketers for example; princess phones, Barbie dolls. Research suggests that

shopping is a more exciting activity for women with respect to men. Female

consumers feel more independent when they do shopping in accordance with men.

Another point that men and women present differentiation is women consider

shopping is a social need whereas male consumers pay importance to main function

of a product instead of secondary function.

Gender has an important role in consumer behaviour. Because, the differences

between men and women about expectation, want, need, life-style etc. reflect to their

consumption behaviour.

According to Cutler, Armstrong (2000):

Cutler suggested that Outward-oriented companies, are companies that seeking to

ensure customer satisfaction. The real mission of their marketing departments is

understand the needs and demands of clients and provides proper solutions to the

needs and desires of products. Outward-oriented companies are not companies that



are just looking to sell, but looking for long-term customer satisfaction by providing

top quality products with long-term goals and their own continued survival.

According to Christopher (1989):

Consumer Behaviour s studied by Christopher the shopping habits of consumers to

form an idea of whether or not the store concepts, product ranges and strategies of the

companies are appropriate towards consumer requirements. He believed that

consumer behaviours are unpredictable and changing continuously changing; while

trying to under try to understand how individual or group make their decision to spend

their available resources on consumption-related items. These are factors that

influence the consumer before, during, and after a purchase (Schiffiman and Kanuk,

1997), for example, feedback, from other customers, packing, advertising, product

appearance, and price (Peter &Olsonetc, 2005).

According to Foxall (2007):

Consumer purchasing behaviour tends to determine what it exactly is that drives

consumers when making buying decisions. Many studies have been performed

including the above mentioned with regard to consumer behaviourisms. Three

theories those understand the consumers‘ buying decision are; radical, teleological,

and Pico economics behaviourisms (Foxall, 2007). Even though, all three theories

take their own the consumers‘ choice, ―they still plays complementary role with

consumer behaviour‖

According to Rachlin (1994):

Rachlin (1994) points out that in order to understand the full complexity of

behaviour‘s consequences, a significant elapse of time may be required, as the events

that explain behavior are temporarily extended, it will take time for the whole

sequence to be completed and with that understand behavior. When it comes to

consumer buying behavior, teleological behaviourisms helps understanding

consumer‘s brand choice (Foxall, 2007). Teleological behaviourisms helps to

understand why consumers only consider only a few brands out of all the brands they

can choose from when making a buying decision (Foxall, 2007).

According to Solomon (1991):



Solomon (1991) stated that a consumer decision is a response to a problem. Schiffman

and Kanuk (1978) depicted that decision is the selection of an action from two or

more alternative choices. It means that there must be more that one alternative choice

whenever a customer is making a decision. Kotler (1996) pointed out that the

consumer buying process is the sum total of alternative, purchase decision, and

purchase evaluation.

According to Bennett (1997):

Bennet pointed out that on a certain order, food, clothing, housing, education,

services, and ideas, use or consumption. Decisions that make for consumption

demand for raw materials, transportation, technical services and the allocation of

resources causes‘ success and failure of other industries. Thus, consumer behaviour is

an important factor in recession or boom of commercial activity. Important factor in

successful marketing and promotional strategies, understands of consumer behaviour.

It is important for non-profit and for-profit organizations

According to Gold Smith (1999):

Gold Smith suggested that many marketing managers, put base of relationships with

customers based on a procedure that is called "individualism", "customer-oriented

mass" or "customize‖. Core of this style, adapted to the needs and demands of

individual goods and services for customers, not just one type of goods and services

provided to all customers. Thus, we can also assume customize the marketing mix as

a factor price, promotion, place, personnel, physical assets, and procedures

(processes). In this way, a new marketing mix formed

According to Wilkie (1999):

Wilkie suggested that peripheral vision is assumed that strong forces are directed

toward consumers who no strong feelings or beliefs of the pre-made plans to buy a

product. At this point, the consumer through the process of rational decision-making

or based on emotion, do not buy the product Instead, his buy directly cause by affect

of behaviour caused by environmental forces such as sales promotion tools, cultural



norms, physical environment and economic pressures. At the end, it is necessary to

note that most purchases are made with elements from each of the three perspectives

According to Bennett (1997):

Bennett suggested that a buyer in the purchase of goods and services doesn‘t have

detailed information of the other marketing mix elements. Buyer Orientation refers to

the process in which potential customers think, evaluate, discuss and finally decide on

a suitable source of supply for purchase product. The process of finding the source of

the customer calls "customer orientation". Buyer Orientation generally contains fifth

dimension that are the value, performance, value and benefits of diversity. At

following sections details of each of these dimensions is discussed. Apart from the

obvious attributes such as quality, fitness for purpose, reliability, etc., price,

Performance and reputation of the supplier to the buyer are important. In addition, the

buyers looking for capacity of technical and symbolic features like being unique, and

non- replacement and state of brand .but, there are other considerations. Value, Does

not depend on money and other issues are important to buyers. Such as physical

effort, distance and time needed to find a good source of product supply. Also,

problems such as through a sole source of supply of the product and are also effective.

According Kotler and Keller (2011):

Kotler and Keller highlighted the importance of understanding consumer buying

behaviour and the ways how the customers choose their products and services can be

extremely important for manufacturers as well as service providers as this provides

them with competitive advantage over its competitors in several aspects. For example,

they may use the knowledge obtained through studying the consumer buying

behaviour to set their strategies towards offering the right products and services to the

right audience of customers reflecting their needs and wants effectively.

According to Egen (2007):

Egen suggested that on the importance of understanding the consumer behaviour.

According to the author, better awareness of consumer buying behaviour is a positive

contribution to the country‘s economic state. The author further argues that the quality

of goods and products are exceptionally good in countries where buying behaviour of



consumers is well understood. This in turn increased the competitiveness of the

products and services in international market increasing the export potential of the

country. In addition to efforts of better understanding the consumers‘ buying

behaviour, companies also engage in advertising and promotion activities to influence

the consumers‘ purchasing decision. However, when they are engaging in such types

of activities, they need to consider other external factors such as the overall economic

conditions of the country, politics, technology and ethnic culture all of which are

beyond the control of both the company and consumer.

According to Hansen and Christensen (2003):

Hansen highlighted that Brand names present many things about a product and give

number of information about it to the customers and also tell the customer or potential

buyer what the product means to them. Further more it represents the customers‘

convenient summary like their feelings, knowledge and experiences with the brand.

More over customer do not spend much time to do find out about the product. When

customer considers about the purchase they evaluate the product immediately by

reconstructed product from memory and cued by the brand name.

According to Aaker( 1996):

Aaker highlighted A brand has a value; this depends on the quality of its products in

the market and the satisfaction or content of the customer in its products and services.

This provides the trust of the customers in the brand. If customers trust a brand quality

it makes a positive connection to the brand and customers will have a reason to

become a loyal to the brand. Loyalty and trust of the customers is very important for a

company because it reduces the chance of attack from competitors.

According to Keller(2008):

Keller suggested that Brands play a very important role in the consumer decision

making processes. It is really important for companies to find out customer‘s decision

making process and identify the conditions, which customers apply while making

decision (Cravens and piercy, 2003). Marketers are highly concerned to know how

brand names influence the customer purchase decision. Why customers purchase a

particular brand also implies how customers decide what to buy. Customers follow



the sequence of steps in decision process to purchase a specific product. They start

realizing a requirement of product, get information, identify & evaluate alternative

products and finally decide to purchase a product from a specific brand. When

customers purchase particular brand frequently, he or she uses his or her past

experience about that brand product regarding performance, quality and aesthetic

appeal.

According to Solomon (2006):

Solomon pointed out that The consumer decision making process defines different

steps when a consumer goes through to purchase a product. If customer wants to

make a purchase he or she takes a sequence of steps in order to do complete this

purchase. Problem recognition includes when consumer feel a significant difference

between the current state and ideal so consumer thinks there is some problem to be

solved. The problem may be small or big. In the second step, the consumer seeks

information about the product. The extent of information search relies on the level of

consumer involvement. In case of expensive products, the level of involvement is

high. Conversely, in case of relatively cheap products the level of involvement is

usually low. In the third step, the consumer evaluates the different attributes of the

brands. Consumer may consider the product attributes and compare brand products. In

the final step consumer makes his choice about a product. It‘s true that a consumer

may not necessarily go through all the decision making steps for every purchase he or

she makes. At times, consumer makes his or her decision automatically and the

decision may be based on heuristics or mental shortcuts. Other times, in case of high

involvement products consumer may take a long time before reaching a final purchase

decision. It depends on consumers‘ importance of the products like purchase of a car

or home. More over consumers try to make an estimated brand universe on the basis

of available information about the brands, and to make an estimated the utility

function on the basis of past consumption experience.

3.2Statement of the Problem:

Consumer decision making is an important aspect in marketing it makes the company

to understand the exact needs, wants, behaviours towards a particular products or

services. Consumers not only educate the vendors, manufacturers what kind of



products they are interested in what to produce, when to produce also guide them to

manufacture improved and quality products hence the need for the study is felt.

3.3Objectives of the Study:

To Study various factors influencing customer purchase decision

To Study various aspects of customers purchase decision

To analyse impact of brand name on customer purchase decision

To identify various sources of information used by consumer

3.4 Scope of the study

In today‘s world there is scarce city of resources. Customer‘s preferences changes day

by day their decision making is affected by various factors also income level has

increased and their need for quality products increased. As economy‘s literacy rate

has increased and today‘s technology era people are more information search

perspectives has made the automobile industries and other industries to design,

manufacture and innovate new features in their products. The study concentrates on

consumer decision in buying an economy class car in bengaluru and the respondent

studied will be around the urban bengaluru

3.5Operational Definition of the Concept

According to Walter and Paul, ―consumer behaviour is the process whereby

individuals decide whether, what, when, where, how and from whom to purchase

goods and services‖.

Consumer behaviour is influenced by various factors but in the final it is with the

person to decide what, when, where, how to purchase goods and services. It is the

psychological factors that tell on consumer while making purchase decision. Based

upon his situation, income available and other factors that make him to do the

purchase.



3.6Methodology

The research method of the study explains the systematic way of finding to the

predetermined objectives. Moreover it will provide a clean path to accomplish and

achieve clear solution for the problem stated. The following are the stages through

which the research will be passed to obtain the conclusions.

Define the research problem

Review the literature

Design research

Collection of data

Analysis of data

Report

A study is conducted to know the customers purchase decision about low budget car.

To know the behavior and attitude data is collected through structured questionnaire.

Where questions are in pre-arranged order. The questionnaire is designed for

customers who approach for buying a new car in various automobile dealers also

other customers who want to buy a new car.

3.7Data Collection

Primary data: The first hand data was collected from the respondents by

administrating a structured questionnaire.

Secondary data : The data is collected through

o Books

o Journals

o Academic reports

o Internet

3.8Sampling:

Sampling technique: The sampling technique used in the research is the

random sampling.

Sample size: 100 respondents.

Sample frame: Structured questionnaire



Method of Data Collection: Survey Method

3.9Plan of Analysis

The data collected is analysed and shown in the form of

Tables

Charts

Graphs

On the basis of information collected by questionnaire the charts and the tables will be

prepared. The tabulated data will be analysed with the help of percentages. The result

thus obtained will be depicted through charts and graphs. Inferences will be drawn

and suitable suggestions will be provided.

3.10Limitations of the Study

The limitations of the study are discussed as follows:

The respondents for the study are limited to 100 which are not enough to

determine the consumer behavior and their purchase decisions.

There is a possibility of biasness with regard to the opinion given by the

respondents of the study.

The results of the study are limited only in Bengaluru

A strong unwillingness on the part of the owners of various cars, to participate

and aid the research.



Chapter 4

Analysis and interpretations

Table 4.1: Depicting the Various cars owned by the

respondents

Parameters Number of

Respondents

Percentage

Maruti 53 53%

Toyota 10 10%

Honda 4 4%

Others 33 33%

Total 100 100%

Analysis:

Table shows that 53%of the Respondents own Maruti cars

33% of the Respondents have other cars like TATA, Mahindra, and Hyundai

etc

10% of the respondents own Toyota

4%of the respondents own Honda



Fig 4.1: pie chart showing the various cars owned

Interpretation:

As per analysis maruti cars are maximum owned by the respondents as it got huge

brand image as they are providing the various range of cars below 5lakhs and

followed by other car. As maruti cars have constantly upgraded their products in

design and quality under low budget car hence many prefer maruti.

53%

10%

4%

33%

Maruti Toyota Honda Others



Table 4.2: Depicting the Number of Respondents owning the car

Parameters Numbers of

Respondents

Percentage

Yes 96 96%

No 4 4%

Total 100 100%

Analysis:

The table shows that 94% of the respondents own the car and 4% of the respondents

do not own the car

Fig 4.2: Pie Chart depicting the number of respondents owning the

car

96%

4%

Yes

No



Interpretation:

The above pie chart clearly shows that majority of the respondents own the car and

limited number of respondents who doesn‘t own the car

Table 4.3: Depicting the Value or (price) of the various respondents

cars

Parameters (Rs.) Number of

Respondents

Percentage

2L- 3L 20 20%

3L-4L 40 40%

4L-5L 32 32%

5L or more 8 8%

Total 100 100%

Analysis:

Table shows that 40% of the respondent‘s cars Price lie between 3L-4L

32% of the Respondents cars price lies between 4L-5L

20%of the Respondents cars price lies between 2L-3L

8% of the respondents cars price lies between 5L or more



Fig 4.3: pie diagram showing the price of the various respondents car

Interpretation:

As per analysis most of the respondents cars are in range 3lakhs to 4lakhs this shows

that people are not only considering low price as main priorities but also comfort and

luxury, other features like A/c, GPS, music system etc as well.

20%

40%

32%

8%

2L- 3L

3L-4L

4L-5L

5L or more



Table 4.4: Depicting the Various fuel types respondents cars

using


Respondents

Percentage

Patrol 82 82%

Diesel 18 18%

CNG 0 0%

Others 0 0%

Total 100 100%

Analysis:

Table shows that 82% of the respondent‘s cars using patrol as fuel type

18% of the respondent‘s cars using diesel

0% of the respondents using CNG or other fuel types



Fig 4.4: Diagram showing the fuel types respondents cars using

Interpretation:

As most brand cars are let out into market either patrol or diesel most of the

respondents are using patrol because of their efficiency also coat of the diesel

car is somewhat high compared to patrol cars. Other type of cars like CNG,

battery cars etc have not got much of attentions of people to use because of its

lack of popularity or efficiency.

82%

18%0%0%

Patrol

Diesel

CNG

Others



Table 4.5: Depicting the Various Factors influenced the Respondents

at the time of buying a car


Respondents

Percentage

Price 55 55%

Brand Name 16 16%

Mileage 12 12%

Safety 12 12%

Others 5 5%

Total 100 100%

Analysis:

The table shows that 55% of the respondents are influenced by price in

buying a car

12% of the respondents influenced by the brand name

16% of the respondents are influenced by mileage

12%of the respondents are influenced by the brand name

5% of the respondents are influenced by other factors



Fig 4.5: pie chart showing the influencing factors at the time of

purchase of car

Interpretation:

The most important features of economy cars are its price. This price strategy is more

attracted by people who have limited income i.e. middle class families. For middle

income group first priority is price next is the bran image of the car later comes the

mileage and safety. Hence the car manufacture must keep in mind about the price

while targeting the middle income group as the final consumer for economy class cars

are the middle income group.

58%17%

12%

13%

Price Brand Name Mileage Safety



Table 4.6: Depicting the Various factors that influenced the

respondents to buy the car over the other brands

Parameters Numbers of

Respondents

Percentage

Advertisement 12 12%

Social Media 15 15%

Friends and Family

Members

60 60%

Relatives 5 5%

Others 8 8%

Total 100 100%

Analysis:

Table shows that 60% of the respondents were influenced by their family

members in buying their car over other brands

15% of the respondents were influenced by social media

12% of the respondents were influenced by Advertisement

8% of respondents were influenced by other factors and 5% of respondents by

relatives



Fig 4.6: pie chart showing the various influencing group

Interpretation:

A car represents luxury, needs etc but any person before buying the car consults from

others like family, friends, etc it is these influencing group that stimulates a person to

buying the car or not. As per analysis friend, family members influence most in

buying of cars over other brands. The information may be from the past experiences

with the brand, after sales services etc these factors influence the influencing group to

share their experiences regarding various brands.

17%

68%

6%

9%

Social Media Friends and Family Members Relatives Others



Table 4.7: Depicting the Car type the Target group prefer


Respondents

Percentage

Hatch back 68 68%

Sedan 10 10%

SUV 12 12%

Others 10 10%

Total 100 100%

Analysis:

Table shows that 68% of the target groups prefer hatch back as their car type

12% of the group prefer SUV

10%of the group prefer sedan and 10% of the groups prefer others



Fig 4.7: diagram showing the car type the respondents prefer

Interpretation:

As per analysis most of the consumers prefer hatch back followed by sedan and SUV

and others. This shows that people like more compact easy to drive, 4-5 person seater

and a cargo holder at the back. These types can be used for city type as there is traffic

all over city tease hatchback can over come it.

68%

10%

12%

10%

Hatch back Sedan SUV Others



Table 4.8: Depicting the Various Respondents who are Brand

conscious


Respondents

Total

Yes 83 83%

No 17 17%

Total 100 100%

Analysis:

Table shows that 83% of the respondents are brand conscious

17% of the respondents are not brand conscious



Fig 4.8: pie chart showing the respondents who are brand conscious

Interpretations:

Very person has taste and preferences based upon their life style and income level and

other factors. As per analysis it shows that most of the respondents owning the car are

brand conscious as well. They do choose. They consider not only low budget car but

also particular brands as per their experience.

83%

17%

Yes

No



Table 4.9: Depicting the Various perceptions of the Respondents



Respondents

Percentage

5 very high 45 45%

4 30 30%

3 12 12%

2 10 10%

1 very low 3 3%

Total 100 100%

Analysis:

Table shows that 45% the rating given by respondents about the brand of the car they

own is very high. 30% of the respondents rated 4. 12% of the respondents rated 3.

10% of the respondents have rated 2. 3% of the respondent rated 3 i.e. very low



Fig 4.9: pie chart depicting the perceptions of respondent’s


Interpretation:

As per analysis people are brand conscious as well they want to experience luxury and

comfort form their car. It is efficiency and convince that their brought to them. As

most of the respondents have rated their brands very high this shows that their

experiences with the car are good and satisfied.

45%

30%

12%

10%

3%

5 very high

4

3

2

1 very low



Table 4.10: Depicting the Various reasons that made the

Respondents to purchase their car


Respondents

Percentages

Increase in

disposable income

39 39%

Better safety at road 12 12%

Family needs 17 17%

Increase in family

size

23 23%

Suits your life style

and personality

09 09%

Total 100 100%

Analysis:

Table shows that 39% of the respondents purchase their car because of

increase in disposable income

23% of the respondents show that due to increase in family size they

purchase car

17% of the respondents show that family needs make them to purchase

car

12% of the respondents show that better safety at road is important

09% of the respondents show that purchase of car suits their

personality



Fig 4.10: diagram showing the reasons that make respondents to

purchase the car

Interpretation:

As per analysis it is the income level that make consumer to purchase a car

followed by family needs and increase in family size. As more and more

income is generated to consumer he/she purchase higher level car. As

economic conditions in the country improves and enhances the disposable

income consumer make will be used to buy comforts and luxury. . This trend

is reflected in growth of the per capita Disposable income and consequently

the growth of the Indian automobile industry. Similarly, the growing family

needs like working partners, increasing family size, status etc add to the

motives of buying a car.

43%

13%

19%

25%

Increase in disposable income

Better safety at road

Family needs

Increase in family size



Table 4.11: Depicting the Impact of colour on Target Groups buying

decisions


Respondents

Percentage

Very Important 60 60%

Important 15 15%

Average 20 20%

Doesn‘t Impact 5 5%

Total 100 100%

Analysis:

Table shows that 60% of the respondents colour is the very important factor

that influenced them in buying the car

15% of the target groups showed that colour is important

20% of respondents have given average rating on colour factors

5% of the target group have given doesn‘t impact rating on colour factors



Fig 4.11: pie chart showing the importance of colour on buying

decision

Interpretation:

As per analysis shown Colour is the important factor and is consumer psychology that

persuades them to buy the products. Hence colour aspects are important factors for

economy class car to sell. In general customers make an initial judgement on a

product within 90 seconds of laying eyes upon it, and staggeringly about 62%-90% of

that judgement will be based on colour.

60%15%

20%

5%

Very Important

Important

Average

Doesn’t Impact



Table 4.12: Depicting the Perceptions of Respondents about economy

class car prices


Respondents

Percentages

1L-2L 0 0%

2.01L-3.99L 43 43%

4.0L-5.0L 55 55%

5.01L- 8.0Lor more 2 2%

Total 100 100%

Analysis:

Table shows that 55% of the respondents have the perception that 4L-5L is the

economy class car

43% of the respondents have a belief that 2.01L-3.99L is the economy class

car

2% of the respondents have perception that 5.01L-8.0L is the economy class

car



Fig 4.12: pie chart showing the perceptions about economy class car

Interpretations:

Economy class car differ based upon perception of various people. Some may think

lowest price cars are economy class car but it is not. Analysis shows that all b/w Rs.

4L-5L are economy class cars according to the respondents. Hence this shows that

cars must have the luxury also safety and comfort. As some of the auto segment

launched 100000 lakh cars but it was not mentioned as economy class car. People

need luxury with safety and comforts at affordable price

0%

43%

55%

2%

1L-2L

2.01L-3.99L

4.0L-5.0L

5.01L- 8.0Lor more



Table 4.13: Depicting the Respondents various monthly Family

Income


Respondents

Percentage

Less then 25000 30 30%

25000-50000 50 50%

50000-1L 18 18%

1L-2L or more 2 2%

Total 100 100%

Analysis:

Table shows that 50% of the respondents have the family income of 25000-

50000

30% of the respondents have less than 25000 of family income

18% of the respondents have 50000-1L family income

2% of the family have 1L to 2L or more as their monthly family income



Fig 4.13: diagram showing the respondents monthly income

Interpretation:

Analysis shows the income factors and their affect on buying decision. As in India

rich people are in minimum and income level unevenly spread most are with rich

people. The automobile segment manufacturing economy class car target middle level

groups who are neither rich nor poor. Hence the study is important to know about

various income groups. As per Analysis there are more medium income group i.e.

25000-50000 hence the automobile industry should understand the needs of the buyer

and design the car.

30%

50%

18%

2%

Less then 25000

25000-50000

50000-1L

1L-2L or more



Table 4.14: Depicting the Various colours of the cars that the

respondents are more inclined to purchase


Respondents

Percentage

Red 15 15%

White 18 18%

Black 5 5%

Others 62 62%

total 100 100%

Analysis:

62% of the respondents preferred other colours which they are more inclined

to purchase

18% of the respondents prefer white

15% of the respondents prefer red

5% of the respondents prefer black



Fig 4.14: Pie chart showing the colours the respondents is more

inclined

Interpretation:

The analysis show that colour factors influences their buying behaviour. It is the

psychological thought that a colour has appealed to a person or not. Most of the

colours they choose are silver, grey, green etc. also the least response as some believe

that it resembles bad luck also red and white people prefer because the colour has

appealed to them.

15%

18%

5%

62%

Red

White

Black

Others



Table 4.15: Depicting the Respondents priorities while buying a car


Respondents

Percentage

Fuel Consumption 15 15%

Mileage(KM/litre) 60 60%

Pickup 10 10%

Stability at higher

Speed

8 8%

Top Speed 7 7%

Total 100 100%

Analysis:

Table shows that 60% of the respondents show mileage as top priorities while

buying a car

15% of the respondents responded fuel consumption is the top priorities

10% of the respondents go for pickup and 8%of the respondents opt for

stability at higher speed and 7% of the respondents choose top speed as their

buying priorities in purchase of a car.



Fig 4.15: diagram showing the various priorities while buying the car

Interpretation:

The customer choice of the car highly depends upon the performance and

maintenance costs of the car. This is the reason why this class of parameters was

chosen for this study. As per the analysis customers top priorities is towards mileage

as they are purchasing economy class car. Pickup, speed stability is other priorities

that after first priorities are met. Here respondents are more concerned about their

budget and maintenance cost.

15%

60%

10%

8%

7%

Fuel Consumption

Mileage(KM/litre)

Pickup

Stability at higher Speed

Top Speed



Chapter 5

Findings, conclusions and suggestions

5.1Findings:

Consumer behaviour changes based upon their income level, size of the family

and other needs. People buy the car based upon the income level and also their

personality life style also effects buying behaviour.

Usage of fuel in the cars also vary most of them use patrol compared to diesel

and other fuel types CNG or battery driven cars are not much used because of

their less efficiency and more maintenance cost.

Consumer behaviour while decision making is influenced by various factors

such as price, brand name, safety, mileage etc the main factors is price as most

of the economy class cars are bought by middle income groups.

Consumer is not only the sole decider but also there are external groups that

influence him regarding his purchase such as family members, advertisement,

social media etc. these groups will give him the idea about the car that he

wants to buy what features that has to be bought. Also influence him whether

to buy the car are not

Consumers in bengaluru most of them prefer in economy class cars is hatch

back type models because it is easy to use and maintain also not only 4 seaters

but also cargo holding at the back makes them its comfortable

Consumers are brand conscious whatever the income group may be they

prefer the brand which has features and best services provided by the dealers.

Most of the respondents are satisfied with their brand and the luxury, comfort,

efficiency it is providing.

Colour factors are important for the consumer and it also influence him in

selecting the particular car. Colour has psychological ability that appeals to the

consumer while buying the car.



According to consumers Economy class cars lies between 4lakhs to 5lakhs this

shows that it is not the price that matters to buy a car but a economy class car

must have safety, mileage, luxury, efficiency and stability.

Considering the features of the cars consumer‘s top priorities while purchase

of the car is mileage and safety. Every consumer considers these and compares

it with different brands.

5.2Conclusion:

The companies are operating in a highly aggressive and competitive global

market place and his climate has led to the emphasis on quality in all aspects.

However when studied from the customer point of view of a customer there seems

to be no major difference among the car brands in a segment as far as performance

is concerned . The brand perception is dependent mostly on the peripheral cues

depending upon the nature and quality of the service provided along with the

pricing, maintenance, availability of spare parts and related issues. It seems as an

under current sentiment is flowing and the perception of the customers is changing

according to it.

The study shows that brand perception is something which starts building up

before a car is purchased and goes on with its use and is reflected in the

recommendations the customer makes to his acquaintances for the same car.

Also, it‘s seen that customer might not be using the car still he holds the

perceptions about it. Brand personality of a car is enforced by the sellers in the

mindsets of the customers and the customers react to it by forming their

perceptions about the car and tis refect s in the overall brand image of the car. So

brand image and brand personality complement each other and the brand

perception aids the building brand image.

Finally there is no doubt that Indian car market may be growing with a double

digit figure still the car companies have a long way to travel to convince the

customers about the brand of their cars and how it suits prospective buyers.

Simply because it simply is not a guarantee that how so ever good the customer



might be holding the brand perception and how so ever good the brand image may

be it is not a guarantee that it will convert into sale. Cars just like clothes and

accessories suit the style and persona of a person and since all cars will become

commodity someday the key to sell and excel in the market will lie with a person

who knows how to use the perceptions of the customers to its use and sell the cars

‗coz ultimately only that car survives which sells

5.3 Suggestions:

Reference groups are the main influencing factors for consumer in his

buying decisions hence on should target those groups to identify consumer

behaviour

Price factor is the main priority for a middle level income groups hence the

price of the car must not be too high

Consumer behaviour is altered by the friends and family members in

buying decisions that thought must be changed because sometime those

external factors may give wrong information even if the particular car is

good quality.

Colour factors also affects the consumer decision process hence more

research should be conducted to know about which colour that appeals to

the consumer in buying a car

In economy class car consumer perceptions is not only price but also the

luxury, car features, also quality. Hence the dealers must concentrate not

only on lowering price but also improving quality.

Most of the consumers are brand conscious hence company must try to

retain its brand image by providing quality products.

Most of the consumers do not own the car but they have the perceptions

regarding the car so these customers can be persuaded through reference

groups in buying a car.



Bibliography

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Pearson, 2007.

Rajen Saxena, Marketing Management, 3rd Edition, TMH

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Annexure

Questionnaire

I am Guruprasad studying in final year MBA at R.V. Institute of Management,

Bengaluru. Pursuing dissertation on the topic‖ A Study on Consumer Buying

Decision Process of Economy Class Cars in Bengaluru‖. Request you to kindly

respond to the questions given below.

Name:Age:

Gender: Male Female

Business/ Profession:

1) Do you own a car?

a) Yes

b) No

2) If yes mention car name?

a) Maruti b). Toyota c). Honda d). others (specify)_________

3) What is the price of your car?

___________________________________

4) What is the fuel type of your car?

a) Petrol b) diesel c) CNG d) others (specify)……..

5) What factors influenced you at the time of selecting the car?

a) Price

b) Brand name

c) Mileage

d) Safety

e) Others (specify)______________



6) Who influenced you to prefer this car particularly over the other brands?

a) Advertisement

b) Social media

c) Dealers

d) friends, family members

e) Relatives

f) Others(specify)_______________

7) Which type of car do you prefer?

a) Hatch back b) Sedan c) SUV d) others (specify)__________

8) In case you already own a car, then answer the given question? Are you Brand

Conscious?

a) Yes

b) No

9) How do you rate the brand of the car you own? Tick

1 2 3 4 5

Very low very high

10) Why you bought your present car? Please rank from the highest order of

preference

a) Increase in disposable income

b) Better safety at road

c) Family needs

d) Increase in family size



e) Suits your life style and personality

11) To what extent does the color of the vehicle impact your buying decisions

a) Very imp b) important c) average d) doesn‘t impact

12) According to your perception economy class cars fall under the price ranges?

a) 1.00L-2 .00L

b) 2.01L- 3.99L

c) 4.00L- 5.00L

d) 5.01L-8lac or more

13) Monthly family income?

a) Less than 25000

b) 25000- 50000

c) 50000- 1 lac

d) 1 lac- 2 lac or more

14) Which colors of vehicle are you more inclined to purchase?

a) Red b) white c) black d) others( specify)__________

15) Mark the attributes which you consider to be most important while buying

acar?

Fuel consumption

Mileage (KM/ltr)

Pick up

Stability at higher speed

Top speed



Pilot study Report

Pilot study conducted on “A Study of Consumer Buying Decision Process of

Economy Class Cars in Bengaluru‖

A pilot study was conducted based upon consumer buying decision process in

buying a car in bengaluru. 10 people were targeted randomly who are new

customers who want to buy the car. Questionnaire was given to them in

various areas of bangaluru city and feedback on the quality of the

questionnaire was taken to further process the questionnaire. Various error and

repeated questions also some questions were not able to access by the people

are noted down and rectified and corrected. Also all the questions that were

used during research holds good and relevant for the research and its

objectives

project on consumer buying decision process in purchasing economy class cars

Marketing

study of consumer

process of decision

various cars

various respondents

bengaluru page

passenger cars

bengaluru dissertation

various factors