two wheeler

Volume 1, Issue 5 (October, 2012) ISSN: 2277‐6621

Journal of Asian Research Consortium 24

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A P e e r R e v i e w e d I n t e r n a t i o n a l J o u r n a l o f A s i a n R e s e a r c h C o n s o r t i u m

AJRM:

A S I A N J O U R N A L O F R E S E A R C H I N

M A R K E T I N G

AN EMPIRICAL STUDY OF BUYING BEHAVIOUR OF THE

TWO-WHEELER USERS IN JAIPUR DISTRICT

PROFESSOR RAJESH MAHROTRA*; SACHIN KUMAR SHARMA**

*Director, School of Business & Management,

National University, Jaipur, Rajasthan.

**Research Scholar, School of Business & Management,

National University, Jaipur.

ABSTRACT In the last decade, the transformation in technology and process of globalization results in an increase of consumer behavior. Marketing strategies are altered from product oriented to customer oriented. In automobile industry, market has shifted from scooter to motorcycle segment. This study aims to find out the consumer behavior towards the different types of two-wheeler existing into the market. This study describes the major factors, which affects the purchasing decision of an individual. A sample of 100 motorbike users selected randomly to study their buying behavior of users in. Data is collected through standardized questionnaires and other authenticates resources. Data is analyzed through different statistical methods. This study focuses on three major corporate players of two-wheeler industry. Viz. Hero motocorp Ltd. Bajaj and TVS. It only considers male customers of these companies. The result reveals cues that users are highly stimulated by socio-economic and demographic factors. This study concludes that mileage and engine power are the important factor which affects the buying behaviour while consumers are not bothered about price it shows the purchasing power of the consumer and demographic factors are key factors of influencing buying behaviour. The major challenges before Indian manufactures are how to expose determinants that directs the consumer in the buying decision of motorcycle. KEYWORDS: Consumers’ buying behavior, determinants factors, motorcycles market.

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INTRODUCTION

Indian automobile industry has rapidly grown since liberalization policy was announced in 1991 by the finance minister Dr. Manmohan Singh. Pre-liberalization there were only few two -wheeler models were available in the Indian automobile market. Currently India stands next to China in production of two-wheeler models. In the different parts of India, trend of two-wheeler market has bumped up due to poor public transportation system. Moreover, two-wheeler offers mobility and convenience to the individual and family. In 1948 Bajaj started importing Vespa scooters. In early 50’s production of scooters commenced by (API) Automobile Products of India. Till 1958 Enfield and API were only producers of two-wheelers in India. In 1960 Bajaj introduced itself as a producer of Bajaj scooters with technical collaboration of Piaggio an Italian company. Till mid 80’s the condition of two-wheeler motor cycles manufacturers was not very good. There were only three players named as Enfield, Escorts, Rajdoot. Two-wheeler market geared up with new technologies in mid 80’s when foreign manufacturing companies entered into India and started competition in automobile market. Post-liberalization, the sales have increased manifold times.

People who found difficult to use geared scooters and motorcycles, the Kinetic launched a gearless scooter in collaboration with Honda. It gained popularity in younger generation. The introduction of scooties created another segment for women and teenagers who could not found comfortable while driving either motorcycles or gearless scooters. TVS, Kinetic, and Hero started manufacturing mopeds. Kawasaki, Honda, Yamaha, collaborated with various two-wheeler companies in India. Yamaha, Escorts, Rajdoot faced vast competition with smaller 100 cc Japanese technology based motorcycles. These motorcycles were manufactured by Hero Honda (now Hero Moto Corp). Hero Honda was the only one company in India which was manufacturing four-stroke motorcycles at that time and these motorcycles gained immense popularity in 1990’s. The USP of Hero Honda was affordable range, highly fuel efficient with lower maintenance motorcycles. The Kyoto agreement and change in government’s policy affected two wheeler markets when the pollution control norms were announced. It was a big hit for two stroke technology because two stroke engines are less efficient than four stoke engines in terms of pollution control. Currently there are around 10 major players are manufacturing two-wheeler in India, they are Hero Honda, Bajaj, Honda, Hero, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha.

In present scenario, the two-wheeler market is witnessing a demand for higher volume engines because of the purchasing power increased and the taste and preferences are changed. Earlier the 100 cc motorcycles were being populated due to the high fuel efficiency offered by the Hero Honda (now Hero Moto corp) and Bajaj manufacturers. However, the market is rapidly maturing. There are ample of models are available into the market for the customers. All two wheeler manufacturing companies are focusing on their strengths and serving to their existing and prospective customers. Like any other industry, purchasing behavior is an important aspect which companies have to keep a track of in order to increase its sale. There has seen considerable change in its customer base as well as in the factors which have affected these changes. Companies need to understand these different aspects before devising a strategy or adopting any plan. This study shall determine the factors that influence the buying behavior of customers in a



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two wheeler market. To be more specific, the study shall be focused on the purchasing of a specific brand like Hero Honda and Bajaj, Which attracts and accommodates to customer with specific brand. The major problems facing to diverse Indian manufactures are how to expose determinants that direct consumer in the buying decision of motorcycle and which marketing factors drives consumer’s buying behavior. On the basis of research finding, Indian motorcycle companies can understand their consumer’s buying behavior and related issues, and be able to implement appropriate strategies to expand their market. The purpose of this is to assess the motorcycle market and understand the demand of the customers. Those motorcycles are considered in this study, which are available in the local market, like Hero, Bajaj, TVS and others.

The literature review is accessed with respect to the factors which determine the buying behaviour of a two-wheeler user.

REVIEW OF LITERATURE

Dhananjoy Datta (2010). There are many factors on which the buying behavior of the customers depends and these factors motivate them to purchase a two-wheeler. These factors include advertisement, word of mouth, references from family, friends, own experience, features, price, etc. The results of the survey done was that around 51% of the customers having two-wheelers fall in the age group of 20-30 years, while their income is below Rs. 5000. 64% people are unmarried and use Bajaj two wheelers. In most of the cases, the motivation comes from friends (44%) and family (31%). People also search for installment plans and finance schemes before purchasing a two wheeler.

Prof.S. Saaravanan and Prof. N. Panchanatham (2009), they discussed the essentials for promotion of a product .the result shows that a customer considers all factors at the time of purchasing a two wheeler, although majority of customers give importance to the brand image. This study also describes the socio-economic factors which satisfy two wheelers customers and that the employees and students crave for show room services.

Murphy John and Bellman Eric (2008). It has been discussed that in 1948, the Bajaj Auto Ltd came with importing and selling of Vespa scooters. The scope of the scooters had decreased since the boom in the motorcycle market segment. The customers’ preferences changed the automotive strategies adopted by the Hero Honda Motor Co. in India.

Lisa R. Klein and Gary T. Ford (2003). It has been stated by the authors that the customers can do a cost benefit analysis to choose a search strategy, i.e. what, when, how much and where to search, but the customers do not search much, which may be due to customers’ perception that the search costs are quite high or that the value of the search is quite low. As a part of pre-purchase search for perfect automobile as per their requirement, the customers in this digital age take the help of internet, websites as well as social networking sites to do a comparative study of the different models of different brands available in the market. Hence their opinion is also influenced by the reviews of the people already possessing the motorcycles and using it. Snelders & Schoormans (2000).Different techniques are suggested in the literature to find out which attributes consumers use to judge products. Simonson &Tversky (1992)Making a product



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different from its competitors by adding even a meaningless attribute can increase consumers’ quality perception or can decrease perceived risk Aaker & Jacobson (1994) Perceived quality is defined as the consumer's judgment about a product's overall excellence or superiority. Wallendorf (1979) Purchase decisions are based almost solely upon the attitude existing at the time of purchase.

OBJECTIVE OF THIS STUDY

To identify the market size of two-wheeler companies.

To identify the impact of demographic factors on purchasing of two-wheeler.

To study the various attributes that trigger consumers to buy specific two-wheeler brand like splendor, Pulsar, Karizma, victor.

METHODOLOGY

The methodology explains the collection and interpretation of the study instruments.

HYPOTHESES

1. H0: Two - wheeler customers are equally prevailing in Jaipur

H1: Two – wheeler companies has different share in two – wheeler market in Jaipur

2. H0: Demographic factor affect the buying behaviour of two - wheeler customers.

H1: Demographic factor doesn’t affect the buying behaviour of an individual.

3. H0: The various factors are equally significant for the customers buying behaviour of two-Wheeler.

H1: Every factor has different impact on the buying behaviour of customer.

UNIVERSE AND SAMPLE FOR RESEARCH

A total of 100 people are approached for the purpose of filling up the questionnaire. For this study researcher has selected Jaipur city as a universe. Simple random sampling is selected to collect the primary data through survey and the sample was mainly focused on three brands – Hero Honda (now Hero Moto Corp), Bajaj and TVS and secondary data is collected through Various publications of Indian and foreign government, books, journals, Magazines, Newspapers, websites of two wheeler companies etc.

(a)Questionnaire is based on review of literature, consultation with experts and observations.

(b) Review of academic literature, text and research articles, and indentified the variables that relates to the study



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(c) Pre-test to ensure the respondents understanding with the questionnaire from different age group of people.

After carrying out questionnaire a pre-test was conducted to review the quality, face soundness, and content validity of the measurement items in the questionnaire. An effort was put to make questionnaire easy and understandable to respondents, and at the same time making it a comprehensive tool to collect required information and data.

After pretest and alter the questionnaire, 100 self administered questionnaire were distributed in Jaipur City among different age group of people.

LIMITATIONS OF THE STUDY

A study of such magnitude is bounce to suffer from certain constraints and limitations,

Research is based on questionnaire and there is possibility of bias respondents those do not provide the actual information. Research is conducted in open market place where other numerous possible variables act on research.

MEASUREMENT AND CONDUCTING QUESTIONNAIRE

Questionnaires are made with close ended questions having 5 point rating scale and were used to measure respondent’s evaluation by asking them the level of importance with statements in the questionnaire that have been ranked from (1) most important to (5) least important. Each question consisted of many factors based on literature review, to evaluate the research accurately. The higher the score the more important the variables are as evaluative criteria. Five point scale were used to measure factors in such a way that mean scores could be calculated to show which factors are the most important to affect decision buyers purchasing motorcycle. With 5-points scales, the interval for breaking the range in measuring each variable is calculated by: 5-1/5 =0.8

It means items with scores fall between the ranges of:

1.00−1.80 are considered as the most important level

1.81−2.60 are considered as the important level

2.61−3.40 are considered as moderate level

3.41−4.20 are considered as the least important level

4.21−5.00 are considered as the not important level

Data from questionnaires are processed by Excel and SPSS Programme.


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This table shows that up to age group of 20 the most important factor is mileage and engine power is considered as a important factor. For age group of 20 to 3o the most important factor is engine power although it is very closed to mileage also. While in the age group of 30 to 40 and 40 to 50 mileage is the most important factor while purchasing a motorcycle. Price is considered as least important factor in all age group of people.

TABLE: 2 FACTORS CONSIDERED BY DIFFERENT EDUCATION STANDARD

Highest Qualification Mileage Engine Power Model Price Weight

Up to Xth 1.67 2 2.33 4.66 4.33

XIIth 1.95 2.17 3.38 3.31 4.29

Graduation 2.29 2.71 2.78 3.14 3.78

Post Graduation 2 2.55 2.97 3.28 4.15

PhD 1.6 2.8 3.1 3.4 4.1

Source : Primary Sources

This table shows that in different education standards, Xth standard educated people give most important weight age to mileage. XIIth, Graduate, Post graduate people give an importance to the engine power of motorcycle and the price is least important for them. While PhD degree holder also considered mileage as a most important factor at the time of purchasing a two-wheeler.

TABLE: 3 FACTORS IMPACT ON MARITAL STATUS

Marital Status Mileage Engine Power Model Price Weight

Single 2.22 2.44 3.08 3.37 3.83

Married 1.56 2.46 3.07 3.25 4.64


This table shows that engine power is most important for single while married persons give most importance to the mileage. Both single and married people are least concerned about the price of the two-wheeler.



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TABLE: 4 FACTORS CONSIDERED BY DIFFERENT OCCUPATION

Occupation Mileage Engine Power

Model Price Weight

Serviceman 2.04 2.76 2.95 3.1 4.1

Businessman 1.56 2.46 3.07 3.25 4.64

Student 2.02 2.02 3.44 3.41 4.11


This table shows that engine power is most important factor for students and serviceman at the time of purchasing a two-wheeler while businessman gives most importance to the mileage. Model is moderate for serviceman and businessman while price is least important factor for students.

The result from Table 1 to Table 4 supports to hypothesis no 2 and presents that null hypothesis H0 is accepted and alternative hypothesis H1 is rejected and result shows that demographic factors affect the buying behaviour of an individual at the time of purchasing two-wheeler.

3. H0: THE VARIOUS FACTORS ARE EQUALLY SIGNIFICANT FOR THE CUSTOMERS BUYING BEHAVIOUR OF TWO-WHEELER

H1: Every factor has different impact on the buying behaviour of customer.

TABLE : 5 PURCHASING BEHAVIOR FOR DIFFERENT BRANDS

Company Name Mileage Engine Power

Model Price Weight

Hero 1.58 2.2 3.25 3.44 4.11

Bajaj 2.21 2.75 2.78 3.21 4.03

TVS 2.63 3.45 2.63 3.36 4.27

Others 2.11 1.944 3.38 3.22 4.33


This table shows that mileage is most important factor for Hero customers while engine power is most important factor for Bajaj and TVS customers and all other customers are also consider engine power as a most important factor at the time of purchase of two-wheeler.



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The result from Table 5 supports to hypothesis no 3 and it represents that null hypothesis H0 is rejected and alternative hypothesis H1 is accepted which shows that every factor has different impact on the buying behavior of an individual.

CONCLUSION & RECOMMENDATIONS

This study has observed many factors which affects the consumers’ buying behaviour. In this study the impact of demographic factors like age, their education, and occupation has been studied. This study also focuses the market size of different two-wheeler manufacturers those are providing different varieties of product to the customers. At the time of purchasing two-wheeler customer has different choice for two-wheelers but the buying decision depends on various factors viz. mileage, engine power, model, price, and weight of the two-wheeler. The study finds that Hero motocorp Ltd is leading player in Jaipur city. Challanger is Bajaj and others are followers. Hero motocorp and Bajaj are the main corporate plyaers those are providing maximu varities to the customers this is one of the main reason also that they have maximum market share into the city. Customer has associated strong belief with Hero motocorp due to the mileage and resale value of the product.This study shows that Demographic factor also plays a vital role in the buying decision or buying behaviour of the consumer. It is found through the study that up to age group of 20 usually they are students they give prime importance to the mileage and the engine power as well as. For age group of 20 to 30 where serviceman, businessman and students lies, they consider engine power is most important factor although it is much closed to mileage also. While in the age group of 30 to 40 and 40 to 50, mileage is the most important factor while purchasing a motorcycle. It means the people those are in matured age or have responsibility of family they are more concerned about mileage. Price is considered as least important factor in all age group of people which shows that purchasing power of customer is increased in this city. Education factor also plays a important role at the time of purchasing two-wheeler. In different education standards, it has been found that student those are doing graduation or post graduation they are more concerned about engine power rather than mileage. While PhD degree holder also considered mileage as a most important factor at the time of purchasing a two-wheeler. This study suggests that marketers must offer more varieties to their prospective customer and the manufacturers must focus on the mileage of the two-wheeler. A customer requirement shows that they want mileage as well as engine power in the product. They are least bothered about the price. If price is more and mileage and power exists into the product they are ready to buy it. Manufacturer must focus on the requirement of the customer. This study has investigated only few factors which are affecting consumer buying behavior. While there are other factors also which can affect the consumers buying behavior. For the prospective research, if the respondent belongs to specific group or institutions researcher may get different result to the buying behavior of two-wheeler consumers.

REFERENCES

Aaker, D. A. (1991). Managing BrandEquity: Capitalizing On the Value of BrandName. The Free Press: New York.

Burnett, John J.,Promotion Management 1st ed., (McGraw Hill, 1998).



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Dhananjoy Datta stated(2010) Factor influencing customers buying behavior of two-wheeler at Agartala, Tripura, ICFAI University Journal

Howard, John A., Consumer Behaviour: Application of Theor,( McGraw Hill, New York), 1977.

Kotler, Philip, Marketing Management, (Prentice-Hall of India, New Delhi, 2000).

Levitt, Theodore, Marketing Myopia, (Harvard Business Review, August 1960), pp. 45-46.

Lisa R. Klein and Gary T. Ford (2003), Customer search for information in the digital age: An empirical study of pre purchase search for automobiles” Journal of Interactive Marketing.

Murphy John and Bellman Eric(2008) “Riding Two-Wheelers in India”, Wall Street Journal

Oliver, Richard K., A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions, (Journal of Marketing Research, 1980), pp. 460-490.

Prof. Sunila George, Prof. Raghbendra Jha and Prof. Hari K. Nagarajan(2000) “The Evolution and Structure of the Two-wheeler Industry in India,Journal -Indira Gandhi Research Institute, Mumbai

Prof.S. Saaravanan and Prof. N. Panchanatham, (2009) , Customer behavior towards show room services of two-wheeler, International Cross-Industry Journal - Perspectives of Innovations, Economics & Business.

Schiffman, Leon G. and Leslie Lazer Kanuk, Consumer Behaviour, (Prentice-Hall of India, New Delhi, 2005), p. 8.

Simonson, I., & Tversky, A. (1992).Choice in Context: Tradeoff Contrast andExtremeness Aversion. Journal of MarketingResearch, 29: 281-295.

Snelders, D., & Schoormans, J. P.L.(2000). Are Abstract Product QualificationsMore Subjective? A test of the Relationbetween Abstraction Level and OppositeNaming. Advances in Consumer Research

Wilson, Richard M.S. and Collin Gilligan, Strategic Marketing Management (Butterworth Heinemann, Oxford, 2005), p. 35.

WEBSITES

www.wikipedia.org/wiki/Pricing

www.amazon.com

www.fundoodata.com/ Automobile companies



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www.munjalauto.com

www.ai-online.com/

www.auto.indiamart.com/

www.autonews.com/

www.business.mapsofindia.com › Automobile

www.capitaline.com

www.ecnomitimes.com