Anda di halaman 1dari 42

Indore Management Institute And Research Center

A STUDY ON THE FACTORS


INFLUENCING TO PURCHASE A
BIKE

Research and Compiled By:


Prabhat Chakradhari
MBA 3rd Sem (H.R.M/Marketig)

ASSIGNMENT ON
A STUDY ON THE FACTORS INFLUENCING THE
PURCHASE OF BIKES

Research and Compiled By:


Prabhat Chakradhari.
MBA 3rd Sem (H.R.M/Marketig)

Submitted To:

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Prof. Manupriya Gaur

DECLARATION

I hereby declare that this project titled “A STUDY ON THE FACTORS INFLUENCING THE
PURCHASE OF BIKES” submitted by me to Prof. Manupriya Gaur, is a bonafide work carried
by me under the guidance of Prof. Manupriya Gaur. This has not been submitted earlier to
any other University or Institution for the award of any degree diploma/ certificate or
published any time before.

Place: Indore Prof. Manupriya Gaur

Date:

prabhat08@imi.ac.in
Indore Management Institute And Research Center

DEDICATION

I dedicate my project to my mother and father who both supports and


encourages me at every stage of my life especially in this project and also my
teachers and Priyanka for their guidance and moral support in completion of
this project.

“My Wishes to Them”

prabhat08@imi.ac.in
Indore Management Institute And Research Center

ACKNOWLEDGEMENT

I would like to thank my Faculty members as well as the management of IMIRC who
gave me lots of help and suggestions. Special thanks to Prof. Manupriya for helping me
a lot and providing valuable suggestions, guidelines and moral support.

I would also like to thank The Director Mr. Jayant K Mohoparta.


I also like to thank Priyanka who helps me a lot whenever I needed especially in gathering
the information.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Table of Contents
Preface..........................................................................................................................................

prabhat08@imi.ac.in
Indore Management Institute And Research Center

CHAPTER 1 INTRODUCTION

INTRODUCTION

GENERAL INTRODUCTION TO THE STUDY

Two-Wheeler industry is one of the largest industries in the automobile sector of global
market. Being the leader in product and process technologies in the manufacturing sector, it
has been recognized as one of the drivers of economic growth. During the last few decades,
well¬-directed efforts have been made to provide a new look to the automobile policy for
realizing the sector's full potential for the economy. The liberalization policies have led to
continuous increase in competition which has ultimately resulted in modernization in line
with the global standards as well as in substantial cut in prices. Aggressive marketing by the
auto finance companies have also played a significant role in boosting automobile demand,
especially from the population in the middle income group.

Presently many international brands like Honda, Suzuki, etc. are competing with Indian
brands such as Bajaj, Enfield etc. to capture Indian markets.
These aggressive marketing strategies have resulted in making the consumer the major key
for success in the industry. Each product offering is now designed to meet and exceed the
expectations of the consumer. But understanding consumer behaviour and knowing
consumers is never simple. And it is more difficult that to understand what a consumer
perceives about the product. Customers may say one thing but do another. They may not be
in touch with their deeper motivations. They may respond to influences that change their
minds at the last moment.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

THEORETICAL BACKGROUND OF STUDY

Market
The term market may be considered as a convenient meeting place where buyers and sellers
gather together for the exchange of goods and services. Market means a group of people
having unmet wants, purchasing power to make their demand effective and the will to spend
their income to fulfill those wants. Today a market is equated with the total demand.
The American marketing association defines a market, ‘as the aggregate demand of potential
buyers for a product or service’.
Under keen competition, a marketer wants to create or capture and retain the market i.e.
customer demand through an appropriate marketing mix offered to a target market. The
market offering i.e. supply must meet customer demand, which are unmet needs and desires.

Marketing
Marketing is a comprehensive term and it includes all resources and set of activities
necessary to direct and facilitate the flow of goods and services form the producer to the
consumer through the process of distribution. Businessmen regards marketing as a
management function to plan promote and deliver products to the clients or customers.
Human efforts, finance and management constitute the primary resources in marketing.
We have twin activities, which are most significant in marketing:

1. Matching the product with demand i.e. customer needs and desires or the target market.
2. The transfer of ownership and possession at every stage in the flow of goods from the
primary producer to the ultimate consumer.

The American marketing association defines marketing as the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational objectives.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Marketing Management
Marketing management represents an important functional area of business management
efforts for the flow of goods and services from the producer to the consumers. It looks after
the marketing system of the enterprise. It has to plan and develop the product on the basis of
known customer demand.
Marketing management may be defined as, ‘a process of management of marketing programs
for accomplishing organizational goals and objectives’.
Marketing management has to build up appropriate marketing plan or marketing mix to fulfill
the set goals of the business. It has to formulate sound marketing policies and programs. It
looks after their implementation and control. It has to implement marketing strategies,
programs and campaigns. It must evaluate the effectiveness of each part of marketing mix
and introduce necessary modifications to remove discrepancies in the actual execution of
plans, policies, strategies, procedures and programs.

Marketing Mix
Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in
the target market.

There are four elements or variables that make a marketing mix, they are:
1. Decisions on product or service.
2. Decisions on promotion
3. Decisions on price
4. Decisions on distribution.
The four ingredients are closely interrelated. Under the systems approach the decision in one
area affects action in the other. Marketing mix decisions constitute a large part of marketing
management.
According to Philip Kotler the term marketing mix is, ‘the set of controllable variables that
the firm can use to influence the buyers response’. In the simplest manner, the basic
marketing mix is the blending of four inputs or sub mixes, which form the core of the
marketing system.
Product mix decision refers to decisions on product variety, quality, design, features, brand
image, packaging, sizes, services, warranties and returns.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Price mix decision refers to decisions on the product list price, discounts, allowances, and
payment period and credit terms available.
Place mix decision refers to decisions on the channels, coverage, assortments, locations,
inventory and transport of the market offering.
Promotion mix decisions refer to decisions on the products advertising, sales promotion, sales
force, public relations and direct marketing. Together they form the four P’s of marketing.

Marketing Planning
A marketing plan lies down in writing the marketing objectives, programs and policies to be
adopted to achieve the set marketing objectives. Even before an integrated marketing plan is
prepared the company shall prepare functional plan for each component of marketing mix.
To have a sound marketing plan, every operation is to be examined and the problems are to
be identified. The overall marketing plan should be linked to the distribution channel of the
company to have effective marketing operations.
The marketing planning covers the preparation of functional plans, integration of this plan
and the preparation of master marketing plan to serve the objective of the organization.
Marketing planning is bound to get a better hold of environmental factor.

Marketing Research
Marketing research is the systematic gathering, recording and analyzing of the data about
problems connected to the marketing of goods and services i.e. problems relating to product,
price, promotion and distribution of the 4p’s of the marketing mix.
Marketing research is concerned with all those factors, which have a direct impact upon the
marketing of products and services. Marketing research has grown along with the expanded
role of marketing as the focus for the business decision-making.

Need of marketing research


Marketing research is conducted for different purposes. They are:
1. To estimate the potential market for a new product.
2. To know the reactions of consumers to a product already existing in the market.
3. To find out the general marketing condition and tendencies.
4. To know the types of consumer buying and their buying motives.
5. To know the reactions of failure of a product already in the market.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

6. To assess the strength and weakness of competitors.

Consumer
A person who purchase or has the capacity to purchase the goods of service often for sale by
the marketing firm in order to satisfy personal need and desires.

Perception
Perception is the sensing of stimuli external to the individual organism the act or process of
comprehending the world in which the individual exists.
Perception has been defined by social psychologists as the “Complex process” by which
people select organize and interpret sensory stimulation in to a meaningful and coherent
picture of the work.

Attitude
Social psychologist defined attitude as an emotionalized predisposition to respond positively
or negatively to an object. Predisposition can be thought of as categories of meaning stored in
the memory of a person and are based on previous experience. Predisposing the person to
have in specific manner towards a certain objects in the environment.

Brand
A brand is a name, term, symbol, design or a combination of them which is intended to
identify the goods or services of one seller or group of sellers and to differentiate them from
those of competitors.

Consumer Behavior
The term consumer behavior can be defined, as, ‘the behavior that the consumer display in
searching for, purchasing, using and evaluating products, services and ideas, which they
expect, will satisfy their needs’. The study of consumer behavior enables marketers to
understand and predict consumer behavior in the market place; it also promotes
understanding of the role that consumption plays in the lives of individuals.
Consumer behavior refers to all psychological social and physical behavior of potential
consumers as they become aware of, evaluate, purchase and consume and tell others about
products and services. It is the pattern of response of buyers to marketing offer of a firm. It
refers to the process as how consumers make their purchase decisions. It is concerned with

prabhat08@imi.ac.in
Indore Management Institute And Research Center

what, why, how much, when and from whom buyers make their purchases of goods and
services.

Model of consumer behavior


The starting point of understanding consumer behavior is the stimulus-response model.
Marketing and environmental stimuli enter the buyer’s consciousness. The buyer’s
characteristics and decision process lead to certain purchase decisions. The marketer’s task is
to understand what happens in the buyer’s consciousness between the arrival of outside
stimuli and the buyers purchase decisions.

7O’s of Consumer Behavior


Occupants. Are the one who are the creator of the market than an industry to its vertical
growth through their marketing efforts and creative marketing strategy by generating need in
consumers mind.
Objects. Can be defined as goods or services offered to the market which can be accepted in
the market and sold.
Objectives. Why does the market buy, its creating and generating need in customers mind by
analyzing consumer behavior and influences or the driving force to buy.
Organizations. Is the one which participates In the market to satisfy consumers needs and
wants by producing goods and services.
Operations. How does the market buy a particular goods and services that consists marketing
mix and strategies to serve the market.
Occasions. Is one of the important factor in influencing consumers purchasing behavior as
there are some products which are bought occasionally.
Outlets. Where the consumer buys things from is one of the driving force in consumer
behavior as consumers will prefer to purchase goods from places nearby and some special
goods from special locations.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Major Factors Influencing Consumer Behavior


Consumers buying behavior is influenced by cultural, social, personal and psychological
factors.
Cultural Factors
Cultural factors exert the broadest and deepest influence on consumer behavior. The roles
played by the buyers culture, subculture and social class are particularly important.

○ Culture
Culture refers to that complex whole which includes in it knowledge, beliefs, art or
anything man acquires as a member of society.

○ Subculture
Each culture consists of smaller subcultures that provide more specific identification and
socialization for their members. Sub cultures include nationalities, religions, racial groups
and geographic regions.

○ Social Class
Virtually all-human societies exhibit social stratification. Stratification sometimes takes
the form of a caste system where the members of different castes are reared for certain
roles and cannot change their caste membership more frequently; stratification takes the
form of social class.

Social Factors
○ Reference Groups

prabhat08@imi.ac.in
Indore Management Institute And Research Center

A persons reference groups consists of all the groups that have a direct or indirect
influence on the person’s attitudes or behavior.

○ Family
The family is the most important consumer buying organization in the society and it
constitutes the most influential primary reference group.

○ Roles and statuses


A person participates in many groups, family, clubs, organizations etc. The person’s
position in each group can be defined in terms of role and status. A role consists of the
activities that a person is expected to perform. Each role carries a status.

Personal Factors
○ Age and stage in the life cycle
People buy different goods and services over their lifetime. Taste in clothes, furniture and
recreation is all age related.

Consumption is shaped by the family life cycle. Marketers often choose life-cycle groups
as their target market.

○ Occupation and economic circumstances


Occupation also influences a person’s consumption pattern.

Product choice is greatly affected by economic circumstances; spendable income, savings


and assets, debts, borrowing power and attitude toward spending versus saving.

○ Lifestyle
People from the same subculture, social class, and occupation may lead quite different
lifestyles. A lifestyle is the person’s pattern of living in the world expressed in activities,
interests and opinions. Lifestyle portrays the world person interacting with his or her
environment.

○ Personality and self concept


Each person has a distinct personality that influences buying behavior. It is that
distinguishing psychological characteristics that lead to relatively consistent and enduring

prabhat08@imi.ac.in
Indore Management Institute And Research Center

responses to environment. Related to personality is self-concept or self image. Marketers


try to develop brand images that match target markets self image.

Psychological Factors
○ Motivation
A person has many needs at a given time. A need becomes a motive when it is aroused to
a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the
person to act.

○ Perception
Perception is the process by which an individual selects, organizes and interprets
information inputs to create a meaningful picture of the world. How a, motivated person
actually acts is influenced by his or her perceptions of the situation.

○ Learning
When people act they learn. Learning involves changes in an individual’s behavior
arising from experience. Learning theory teaches marketers that they can build up
demand for a product by associating it with strong drives, using motivating cues and
positive reinforcement.

○ Beliefs and attitudes


Through doing and learning, people acquire beliefs and attitudes. These in turn influence
buying behavior. A belief is a descriptive thought that a person holds about something.
The beliefs make up product and brand images and people act on these images.

An attitude is a person enduring favorable or unfavorable evaluations, emotion feelings


and action tendencies toward some object or idea. Thus a company would be well advised
to fit product into existing attitudes rather than try and change people’s attitudes.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

CHAPTER 2 RESEARCH DESIGN

RESEARCH DESIGN

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Introduction

The two-wheeler industry in India has grown rapidly in the country since the announcement
of the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh,
now Prime Minister of India. Previously, there were only a handful of two-wheeler models
available in the country. Currently, India is the second largest producer of two-wheelers in
the world. It stands next only to China and Japan in terms of the number of two-wheelers
produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual
production of two-wheelers in India stood at around 7600801 units. The trend of owning
two-wheelers is due to a variety of facts peculiar to India. One of the chief factors is poor
public transport in many parts of India. Additionally, two-wheelers offer a great deal of
convenience and mobility for the Indian family. Bajaj auto began trading in imported Vespa
Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of
scooters in the country in the early 50’s. Until 1958, API and Enfield were the only producers
of two-wheelers in India. However, Bajaj signed a technical collaboration in 1960 with
Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971. The condition of
motorcycle manufacturers was no different. Until the mid 80’s, there were only three major
motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield. The two-wheeler
market was opened to foreign manufacturers in the mid 80’s. The industry, which had seen a
smooth ride before, faced fierce foreign competition. Motorcycle companies like the
Yamaha, Honda, and Kawasaki, set up shop in India in collaboration with various Indian
two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition
from smaller 100 cc Japanese technology motorbikes. Bikes manufactured by Hero Honda,
the only company manufacturing four-stroke bikes at that time, gained massive popularity. In
the mid 80’s, Kinetic introduced a variomatic gearless scooter in collaboration with Honda.
This scooter became instantly popular with the younger generation, especially people who
found it difficult to use geared scooters. The introduction of scooterettes created another
segment for people such as women and teenagers who could not get used to driving either
motorcycles or gearless scooters. Many companies such as Kinetc, TVS, and Hero also
started manufacturing mopeds that proved immensely popular with people who wanted a
simple riding machine. The change in the government’s policy owning to pollution control
norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from
production. Currently there are around 10 two-wheeler manufacturers in the country, they
being Bajaj, Hero, Hero Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and
Yamaha. The latest trend in the two-wheeler market is the introduction of electrically
operated vehicles from a range of manufacturers such as Indus and Hero. These can be
recharged from convenient household electrical points. The only disadvantage is speed,
which is restricted to around 25 miles per hour. Currently, the motorcycle market is
witnessing a demand for higher volume engines. Previously, the 100 c bikes were very
popular owning to the high fuel efficiency offered. However, the market is maturing fast.
Sensing this movement, Bajaj has introduced the Bajaj Pulsar, with 150, 180 and 200 cc
engines with Dual Twin Spark Ignition (DTSi) technology.
Continuing with monthly report of the sales figures of Indian bikes, here it presents the
consolidated results for the month of July 2009. July has been the month which could safely
be called as the best month for the Indian two wheeler industry after the black clouds of

prabhat08@imi.ac.in
Indore Management Institute And Research Center

recession. All the manufacturers performed well and the momentum definitely seems to be
picking up. Let’s see how well the respective companies performed figurewise.
Hero Honda: The leader of the industry for a long time now, continues its dominance with a
huge gap. They reported an impressive 30.39 percent rise in sales compared to July 2008.
Hero Honda sold 3,66,808 motorcycles compared to 2,81,317 sold in July 2008. The
company reported a huge jump of 83.28 percent in its net profit at Rs. 500.11 crore for the
previous quarter ended June 30. Net profit for the first quarter for the last fiscal was at Rs
272.87 crore.
With a domestic market share of more than 59 percent, Hero Honda is in the strongest
position in the history of Indian market claimed Pawan Munjal, CEO and MD of Hero Honda
. With each passing month the strength of the brand gets even stronger and with the
company’s concentration on volume selling models, it is expected to just grow bigger.
Forthcoming launches expected from the company are ultra low cost 75cc and 110cc fuel
efficient bikes which would be priced at Rs. 20,000 along with the much touted upgrade for
Karizma.
Bajaj Auto: After some dismal sales for the past few months, July was easily the best month
for Bajaj. The company reported almost a negligible drop in sales. Bajaj sold a total of
1,92,835 vehicles this month as compared to 1,93,704 sold in July 08 with a positive change
in the total vehicles exported which stood at 68,585 units in July 09 as compared to 67,253
units last July. Individually, Bajaj sold 1,68,163 motorcycles compared to 1,68,836 sold last
July and a total of 1,68,731 two wheelers against 169,971 in July 08. With some good results
coming their way, Bajaj announced an increase in their Pulsar’s production capacity to
50,000 bikes per month last month. This month, owing to good sale figures and good future
prospects along with some dashing recent bikes in the market, Bajaj has announced an
increase of domestic motorcycle production by about 25 percent in the forthcoming months.
Bajaj reported that they sold about 10,000 units of the latest 100cc Discover DTS-Si already
which was launched on 17 July 2009 and the plans for August are close to 20,000 units. It
also reported that with some fantastic launches recently Bajaj has been able to match their
year on year sales for the first time after the downturn last year. The company is also
expected to launch a new entry level commuter bike along with Avenger getting the 220cc
DTSi engine from the Pulsar 220 DTSi, though there is still no word on the launch of the
much awaited Kawasaki Ninja 250R.
TVS Motors: Standing third in terms of motorcycle sales in India is the Chennai based TVS
Motor Company which posted a 2 percent increase in July 2009. TVS sold 1,20,994 units as
against 1,18,545 units sold during the same month last year. If we talk about the domestic
sales, TVS sold 1,07,883 units in July 09 as compared to 1,02,530 units in July 2008
registering a 5 percent growth in sales.
Due to a strong demand for the recently launched Apache RTR 180 and Flame SR 125,
motorcycles contributed the majority of sales contributing 42,998 units in July 09 but were
lower than July 08 wherein the company sold 54,042 units. With the recent launch of TVS
Scooty Streak, which contributed a significant part to the overall scooter sales, the total
scooter sales increased by a healthy 15 percent with 27,673 units in July 09 compared to
24,156 units sold during July 08. Contrary to the case of Bajaj (where exports have become
stable), TVS reported a drop in sales selling 13,061 units of two wheelers in July 2009

prabhat08@imi.ac.in
Indore Management Institute And Research Center

against 16,015 units sold in July 08. Forthcoming launches from TVS are expected to be
concentrated on the entry level commuter segment and scooters along with a powerful bike.
HMSI: Honda seems to be on a rampage with both of its arms registering impressive growth
over the last few months. HMSI recorded its highest ever monthly sales of 1,12,855 units,
compared to the 85,343 units sold during the same month last year which included domestic
and exports marking an impressive hike of 32.24 percent in total sales. The newly revamped
Activa seems to be spreading the same magic as its earlier predecessor did which helped
HMSI sell 67,107 units of scooters with Aviator and Dio also adding a bit to the overall pie.
Last July, this figure stood at 57,620 units. Motorcycle sales rose to a new high of 45,748
units compared to the 27,723 units sold in July 08, which were a significant 65 percent higher
than July 08.
Combined sales of Hero Honda and HMSI were close to 4.8 lakh units which clearly indicate
the sort of a premium and trust the biggest brand in the world commands in India. Future
launches from HMSI are expected to be a premium 100cc bike which would help the
company further in their sales.
Yamaha: It seems like Yamaha has stuck the right chord among the youth with its ultra
stylish series of bikes. For many months now, they have been registering a growth in sales,
negating the effect of the fact that their bikes are priced at a premium and are targeted more
towards the image conscious and performance seeking crowd. This month Yamaha Motor
India (IYM) reported a 46.85 percent increase in sales at 17,316 units compared with the
11,792 sold during July 08. Yamaha launched the new variant of the FZ series, the Fazer, this
month along with inaugurating a new manufacturing facility at Surajpur, Uttar Pradesh.
Forthcoming launches are expected to be more concentrated towards the volume and
premium 125cc segments.
Suzuki: Suzuki, the youngest player in India, also recorded an impressive increase in sales of
20.35 percent this July which stood at 12,585 units compared with 10,457 units sold during
July 08 majorly lead by the perfectly positioned GS150R. Scooter sales also increased where
Suzuki has the 125cc Access.

Review of Literature

The Customer Perception Report includes questions in four key areas, Expectations, Purchase
Decisions, Customer Service, and Future Purchases. So the customer should be invited to
participate in the survey. Setting realistic expectations during the sales process is a vital
component of making happy customers. How a company sets and meets product and service

prabhat08@imi.ac.in
Indore Management Institute And Research Center

expectations plays a pivotal role in fashioning customer opinions. How a company meets or
exceeds expectations is measured in three important areas: product/service, support, and
price. These three areas will be used to factor a score for the Expectations category. The
results of the three questions will be used to factor an overall expectations perception score.
The Purchase Decision category gives us a better understanding of how the customer
perceives the purchase process. Two key areas for questions include an open ended question
on why they purchased and a ratings question on their experience. The rating
Question data will be used for the analysis of Purchase Decision category. The open ended
responses from the “Why” questions will be used for product strengths analysis. The results
of the purchase experience question will be used for the overall Purchase perception analysis.
Customer service is one of the most important differentiations a company can have. For this
report, customers will rate a company in three key areas: customer service, timeliness for
problem resolution, and expertise. These three areas will be used to factor a score for the
Customer Service category.

Purpose of Literature Review

Literature review is one of the prime parts of every project. The very basic purpose of the
literature review is to gain insight on the theoretical background of the research problem. It
helps the researcher to gain strong theoretical basis of the problem under study and also help
to explore whether any one has done research on the related issue. That’s why literature
review helps one to find out the path of problem solving. In this regards the very basic
purpose of the literature review in this dissertation is same as mentioned

Statement of the Problem

We want to find out the main buying factor which influence towards the buying decision of
motor cycle, choice of brand, budget limitation, mobility convince, parking problem, and
maintenance at low cost.

Need of the study

We observed that in a last few decades, peoples are mostly liken to acquire the motorbikes
for daily usage, and we also observed due to this buying trend so many new companies arrive

prabhat08@imi.ac.in
Indore Management Institute And Research Center

in India to introduce new brands in India Market. There is no doubt that the old companies
market share is falling down. So this study will help to understand and identify what the
consumer feels or perceives about motor bikes. This will help the marketer to identify which
all are the factors that a consumer looks in to when he selects a particular bike. And also
explains how a consumer selects and interprets the qualities of bike.

Objectives of the Study

The research has been undertaken with following hypothesis:


1. To analysis people perception towards the motor cycle brands.
2. To get feedback what people expect from motor cycle.
3. To analyze people perception towards services offered by different makes
performance of the motor cycle.
4. Analysis financial factor influence buy process of motor cycle

Methodology

The research will be done through survey method. The collection of data will be done
through, focus group interview.

The sample size taken for this research is 20 customers those who are having motor bikes.

The area of this survey consists of IMIRC and Indore City.

The collection of data will be done with the help of focus group interview. The designing of
questionnaire needs precision and classification of the subject, so that the respondents can
easily understand the question and can answer it sincerely and correctly.

Sources of Data

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Primary data:-

Primary data consists of original information for the specific purpose at hand. It is first hand
information for the direct users of respondents. The tools used to collect the data may vary
and can be collected through various methods like questionnaire, personal interview

Secondary data:-

Secondary data is the data which is already been collected and assembled. This data is
available with the companies or firms and it can be collected from newspapers, periodicals,
magazines, websites etc.

Sample Design

Sample

The sample size taken for this research is 20 customers having motorbikes.

Sampling Technique

Convenient Sampling technique is used for this assignment.

Data Collection Tool

Focus group interview will be used for collecting data.

Statistical techniques

1. Bar Diagrams

2. Pie-Chart

Scope of the study:-


The study helps in having an awareness of customer satisfaction towards motorbike
usage. As the vehicle had a good convenient transportation in India, this study will help to
know that how motorcycle increase their grip in vehicle industry. It also helps us to increase
our practical knowledge towards marketing of a motorbike.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Limitations of the study:-


a) In this study it is not possible to collect the opinion of all the customers owing to
personal constraints. So the assumptions are drawn on the basis of the information
given by the respondents.

b) The study needs to be completed within a specified time of one weak and in
certain restricted areas. So the findings cannot be generalized as a whole.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

prabhat08@imi.ac.in
Indore Management Institute And Research Center

CHAPTER 3 ANALYSIS
OF DATA COLLECTED

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Analysis of the Data Collected

Age of the Respondents

AGE NO. OF % OF
RESPONDENTS RESPONDENTS
18-20 5 25%
22-25 10 50%
30 and above 5 25%
Total 20 100%

Pie 1

Analysis:
50% of the participants of the survey were between 22-25 age group and second most
participants were between 18-22 age group as well as 30 and above. There were only 20
participants responded.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Occupation of the Respondents

Table No 2

Occupation No of Respondents % of Respondents


Employee 5 25%
student 15 75%
Total 20 100%

Occupation of the Respondents

Analysis:

The majority of respondents participated in the survey were students. There were 75%
students and the 25% employees.

Q1. You purchase a bike because of its style and look?

Group No. of Respondent Response


A 5 Agree 4 Disagree 1
B 5 Agree 4 Disagree 1
C 5 Agree 4 Disagree 1
D 5 Agree 2 Disagree 3
Total 20 Agree 70% Disagree 30%

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Analysis:-
According to the response given by the respondents define style and look is the most
influencing factor In bike purchase decision.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Q2. You purchase a bike because of its power?

Group No. of Respondent Response


A 5 Agree 3 Disagree 2
B 5 Agree 5 Disagree 0
C 5 Agree 3 Disagree 2
D 5 Agree 3 Disagree 2
Total 20 Agree 70% Disagree 30%

Analysis:-
Through this question I noticed that power in a bike is also a most concerning factor that can
influence a purchase decision.

Q3. You purchase a bike because of its fuel efficiency?

Group No. of Respondent Response


A 5 Agree 3 Disagree 2
B 5 Agree 3 Disagree 2
C 5 Agree 3 Disagree 2
D 5 Agree 4 Disagree 1
Total 20 Agree 65% Disagree 35%

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Analysis:-
This question found one more important fact that fuel efficiency in a bike is not a biggest
concern for new generation customers they want power along with little fuel efficiency as
compare to other factors.

Q4. You purchase a bike because of its reliability?

Group No. of Respondent Response


A 5 Agree 4 Disagree 1
B 5 Agree 3 Disagree 2
C 5 Agree 1 Disagree 4
D 5 Agree 3 Disagree 2
Total 20 Agree 55% Disagree 45%

Analysis:-
One surprising outcome came from this question that customers are less concerned about
reliability In a bike.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Q5. You purchase a bike because of its technology?

Group No. of Respondent Response


A 5 Agree 5 Disagree 0
B 5 Agree 3 Disagree 2
C 5 Agree 0 Disagree 5
D 5 Agree 1 Disagree 4
Total 20 Agree 45% Disagree 55%

Analysis:-
If there is no latest technology in the bike it will not hamper customers purchase decision
as long as such factors like power, looks, style are there.

Q6. You purchase a bike because of a trust on the Company?

Group No. of Respondent Response


A 5 Agree 3 Disagree 2
B 5 Agree 3 Disagree 2
C 5 Agree 5 Disagree 0

prabhat08@imi.ac.in
Indore Management Institute And Research Center

D 5 Agree 5 Disagree 0
Total 20 Agree 80% Disagree 20%

Analysis:-
The response defines that customer are more brand conscious they will purchase a bike from
a trusted company.

Q7. You purchase a bike because of its better post sales service?

Group No. of Respondent Response


A 5 Agree 3 Disagree 2
B 5 Agree 2 Disagree 3
C 5 Agree 1 Disagree 4
D 5 Agree 4 Disagree 1
Total 20 Agree 50% Disagree 50%

Analysis:
The results are equal as 50% customers are focused towards post sales service and 50% are
not concerned.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Q8. You purchase a bike because of less maintenance cost?

Group No. of Respondent Response


A 5 Agree 3 Disagree 2
B 5 Agree 3 Disagree 2
C 5 Agree 3 Disagree 2
D 5 Agree 4 Disagree 1
Total 20 Agree 65% Disagree 35%

Analysis:-
The response to the question says customers are generally not conscious about maintenance
cost however they may take it as a factor In there bike purchase decision.

Q9. You purchase a bike due to a status symbol?

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Group No. of Respondent Response


A 5 Agree 3 Disagree 2
B 5 Agree 4 Disagree 1
C 5 Agree 4 Disagree 1
D 5 Agree 2 Disagree 3
Total 20 Agree 65% Disagree 35%

Analysis:
The response defines having a bike for status symbol matters to the customers now we can
perceive that perhaps customers taste have changed.

Q10. You purchase a bike by being influenced by endorsement?

Group No. of Respondent Response


A 5 Agree 5 Disagree 0
B 5 Agree 5 Disagree 0
C 5 Agree 3 Disagree 2
D 5 Agree 3 Disagree 2
Total 20 Agree 80% Disagree 20%

Analysis:

prabhat08@imi.ac.in
Indore Management Institute And Research Center

The response to the question is interesting as the customers will get influenced by an ideal
person in the advertisement however a creative advertisement may help them In making a
bike purchase decision.

Final Outcome

Analysis:-
Analysis to these bars is give through Findings and conclusion.

CHAPTER 5 FINDINGS AND


CONCLUSION

prabhat08@imi.ac.in
Indore Management Institute And Research Center

FINDINGS

The old prophecy that once a customer is a customer has become a myth in the present days
competitive world. Brand image is still a magic with the consumer. So to hold the customer
to the brand and attract new consumers the companies must produce products those are
efficient and competent along with its marketing activities that help in sales of the product.

After analyzing the response of the consumers interviewing through focus group and
observation the following were found in the study.

• Now a days the main customers are youngsters between 20-30 years of age.
• Customers using motorbikes have almost monthly income between 10,000 and
20,000.

• Bikers are influenced to make acquiring decision from friends and relatives. Also an
advertisement plays a vital role in influencing the consumers.

• The greater part is that the customers have complete knowledge about motorbike
before customer buys a motorbike.
• The majority of respondent are using bikes for personal purpose as well as
professional purpose.
• Motorbikes performance is good revealed by their personal experience of using the
bike.
• The motorbike customers will get satisfied about the availability of its spare parts
post purchase.
• Most of the consumers those who participated in the survey ranked Quality. Look
and Power as most attractive attribute of motorbikes.
• The performance of motorbikes is one of the influencing factors for the customers to
buy a bike.
• The customers preferred acquiring selected brands.
• The customer wants that company should provide post sale service to the motorbikes.
• The customer prefers that expert mechanics should be easily available.
• The customers prefer local mechanics for maintenance and service of their bikes as
compared to service center of motorbikes.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

CONCLUSION

From this study, i found that motorbikes are highest buying trends in auto industry of India
because it is convenient transportation mode in their respective cities. So I can conclude the
following factor:
• Low income families prefer acquiring motorbikes.
• Mostly age group 20 to 30 years and youngsters want to purchase a bike.
• Most of the people get influenced to acquire motorbikes from getting information
from friends and relatives, and advertisement.
• I can also say that In today’s scenario information and media is playing a very
important role to motivate the customers in order to make a purchase decision, a
customer gathers relevant information about a product before he or she buys it.
• Brand consciousness seems to be a bit changed or very less changed in a bike
purchase decision, for example a customer using Bajaj’s bike may switch to
Yamaha’s bike.
• Looks and Style have been a major factor in influencing and motivating a customer to
purchase a bike as we can say like Yamaha launched its executive bike namely FZ
150cc which made differences In the market because its major competitor Pulsar
150cc, 180cc, 200cc, 220cc. And Hero Honda Karizma. Are highly powerful built up
engine bikes, however the look and style of Yamaha FZ 150cc attracted youngsters
and also sold heavily as a most recent bike. (cc / cubic capacity)
• In flash back Looks and Style along with power. Bajaj Pulsar 150cc, 180cc, 200cc,
220cc. As well as Hero Honda Karizma, CBZ, and TVS Apache RTR 160cc, 180cc
skimmed Indian market because of creative looks and ultimate power (80km within
6sec) and top speed 135 KMPH (Kilometers per hour)
• Now major bike manufacturers like Bajaj, Suzuki, Yamaha are going to launch their
executive bikes with extra ordinary power which is above 250cc by 2012.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

BIBLIOGRAPHY

prabhat08@imi.ac.in
Indore Management Institute And Research Center

BIBLIOGRAPHY

TEXTBOOKS REFERRED

• Consumer Behavior (Munish Vohra)


• Consumer Behavior & Marketing Research (Suja. R. Nair)
• Research Methodology (S.L.Gupta)

WEB SITE REFERRED

• www.google.com
• www.yahoo.com
• www.wikipedia.com
• www.ask.com

prabhat08@imi.ac.in
Indore Management Institute And Research Center

APPENDICES

prabhat08@imi.ac.in
Indore Management Institute And Research Center

Questionnaire
Questionnaire for this survey was unstructured and there were 10 questions as follows.

Q1. You purchase a bike because of its style and looks?


Q2. You purchase a bike because of its power?
Q3. You purchase a bike because of its fuel efficiency?
Q4. You purchase a bike because of its reliability?
Q5. You purchase a bike because of its technology?
Q6. You purchase a bike because of a trust on the company?
Q7. You purchase a bike because of its better post sales service?
Q8. You purchase a bike because of its less maintenance cost?
Q9. You purchase a bike because of a status symbol?
Q10. You purchase a bike by being influenced by endorsement?

Initially this questionnaire was tested through personal interview with 7 students at IMIRC.

prabhat08@imi.ac.in
Indore Management Institute And Research Center

ASSIGNMENT ON
A STUDY ON THE FACTORS INFLUENCING THE
PURCHASE OF BIKES

prabhat08@imi.ac.in
Indore Management Institute And Research Center

SUBMITTED TO:- SUBMITTED BY:-

prabhat08@imi.ac.in