INSTITUTE FOR EXCELLENCE

IN HIGHER EDUCATION,
BHOPAL
2014-15

For partial fulfillment of degree of

Bachelor of Commerce
Accounts Honors

CONSUMER PREFERENCE BETWEEN

MARUTI SUZUKI AND HONDA ON
INCOME BASIS
RESEARCH GUIDE

TEACHER GUIDE

PROFESSOR S.S. VIJAYWARGIYA

MRS. NIDHI MASIH

HEAD OF DEPARTMENT

(COMMERCE DEPARTMENT)

(COMMERCE DEPARTMENT)

SUBMITTED BY:
HARSH VIJAY WARGIYA
B.COM II YR A/C C
113114

Certificate
This is to certify that Harsh Vijay Wargiya is a regular student of Institute for
Excellence in Higher Education. She has conducted an authentic research on the
topic Consumer preference between Maruti Suzuki and Honda on Income
basis and has completed her research methodology report successfully under the
able guidance of Mrs. Nidhi Masih. The report is being prepared for her honors
papers of B.Com part II (Accounts Honors) for examination 2014 and is being
submitted thereof.

Mrs. Nidhi Masih

Commerce department
(Teacher guide)

DECLARATION
2

I hereby declare that the project entitled Consumer preference between Maruti
Suzuki and Honda on Income submitted to Institute of Excellence in Higher
Education, is record of original work done by me under the guidance of Mrs.
Nidhi Masih (Department of commerce).
Any inferences, research or similarity is purely coincidental.

Acknowledgement
I would like to take this opportunity to thank Dr. Meera Pingle (Director, Institute
for Excellence in Higher Education, Bhopal), Dr. S.S. Vijayvargiya (Head of
commerce department) and Mrs. Nidhi Masih (Teacher guide) to have provided
me with such a great opportunity to work on this research project. I am grateful to
3

all the respondents of the questionnaires for being so much co-operative and
patient to fill in all the required answer in the questionnaires. The project would
not have been such a success without their contribution.
Last, but not the least, I would like to thank my family, friends and all those who
helped me in some way or the others in the successful completion of this research
project.

Harsh Vijay Wargiya

B.com II year
Accounts Honors
Section C
Roll No. 113114

Preface
In this modern world of globalization and innovation, research is not an unknown
word. People in every corner of the world talk about research. Today research is
done in all the fields like commerce, science, architecture, economics, etc. The
purpose of research is both academic instruction and outside. However,
significance of research lies in its quality. Therefore, it is necessary for a
4

researcher to concentrate on the layout and design of research as well as the

methodology and tools used in the research.
Taking all the necessary factors in mind, this research work has been done on the
basis of survey to study the topic, Consumer preference between Maruti Suzuki
and Honda on Income basis. The research has been done through a scientific
study to observer the preference of consumers between Maruti Suzuki and Honda
based their income. In this research report, a survey was conducted to find out
which car company people prefer more and is their choice affected by their
income. The purpose of conducting research is solved by doing chi-square test of
the collected data.
Regarding this research report, it consists of eight chapters well arranged in
coherent manner. These chapters include theoretical aspect of research, concepts
used in the study as well as the findings of the study and the result arrived upon.

index
Chapter 1

Introduction8
1.1About topic9
1.2
Significance of research topic.13

Chapter 2
Literature
review.14
5

Chapter 3
Objectives of research
study.19
Chapter 4 Hypothesis of
research...21
4.1 Concepts and types of hypothesis22
4.2 Hypothesis of research study..24
Chapter 5
Research
methodology.25
5.1 Types of
research..26
5.2 Research
design.27
5.3 Sample
design.29
5.3.1 Types of sampling.30
5.3.2 Techniques of sampling31
5.3.3 Sampling unit33
5.3.4 Variables under the research study.33
Chapter 6
Data Collection...
..34
6.1 Data collection methods.36
6.2 Data collection tools used in research39

Chapter 7
Data Analysis and
Interpretation.40
7.1 Interpretation
41
7.2 Chi-square 64
7.3 Testing of hypothesis question69

Chapter 8
Findings and
Conclusion..71
Bibliography
..75
Annexure
.76

LIST OF TABLES
TABLE NAME

PAGE NUMBER

1.1 -

42

1.2 -

43

1.3 -

44

1.4-

45

1.5-

46

1.6-

47

1.7-

48

1.8-

49

1.9-

50

1.10-

51

1.11-

52

1.12-

53

1.13-

54

1.14-

55

1.15-

56

1.16-

57

1.17-

58

1.18-

59

1.19-

60

1.20-

61

Analysis table

67

1. INTRODUCTION
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Research comprises "creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of humans, culture and society, and the use of this
stock of knowledge to devise new applications."[1] It is used to establish or confirm facts,
reaffirm the results of previous work, solve new or existing problems, support theorems, or
develop new theories. A research project may also be an expansion on past work in the field.
To test the validity of instruments, procedures, or experiments, research may replicate
elements of prior projects, or the project as a whole. The primary purposes of basic research
(as opposed to applied research) are documentation, discovery, interpretation, or the research
and development (R&D) of methods and systems for the advancement of human knowledge.
Approaches to research depend on epistemologies, which vary considerably both within and
between humanities and sciences. There are several forms of research: scientific, humanities,
artistic, economic, social, business, marketing, practitioner research, etc.
Research has been defined in a number of different ways.
A broad definition of research is given by Martyn Shuttleworth - "In the broadest sense of the
word, the definition of research includes any gathering of data, information and facts for the
advancement of knowledge.
Another definition of research is given by Creswell who states that - "Research is a process
of steps used to collect and analyze information to increase our understanding of a topic or
issue". It consists of three steps: Pose a question, collect data to answer the question, and
present an answer to the question.
The Merriam-Webster Online Dictionary defines research in more detail as "a studious
inquiry or examination; especially : investigation or experimentation aimed at the discovery
and interpretation of facts, revision of accepted theories or laws in the light of new facts, or
practical application of such new or revised theories or laws".

Steps in conducting research

Research is often conducted using the hourglass model structure of research.[7] The
hourglass model starts with a broad spectrum for research, focusing in on the required
information through the method of the project (like the neck of the hourglass), then expands
the research in the form of discussion and results. The major steps in conducting research are:

Identification of research problem

Literature review

Specifying the purpose of research

Determine specific research questions

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Specification of a Conceptual framework - Usually a set of hypotheses [9]

Choice of a methodology (for data collection)

Data collection

Analyzing and interpreting the data

Reporting and evaluating research

Communicating the research findings and, possibly, recommendations

The steps generally represent the overall process, however they should be viewed as an everchanging iterative process rather than a fixed set of steps. Most researches begin with a
general statement of the problem, or rather, the purpose for engaging in the study. The
literature review identifies flaws or holes in previous research which provides justification
for the study. Often, a literature review is conducted in a given subject area before a research
question is identified. A gap in the current literature, as identified by a researcher, then
engenders a research question. The research question may be parallel to the hypothesis. The
hypothesis is the supposition to be tested. The researcher(s) collects data to test the
hypothesis. The researcher(s) then analyzes and interprets the data via a variety of statistical
methods, engaging in what is known as Empirical research. The results of the data analysis in
confirming or failing to reject the Null hypothesis are then reported and evaluated. At the end
the researcher may discuss avenues for further research.
Rudolph Rummel says, "... no researcher should accept any one or two tests as definitive. It
is only when a range of tests are consistent over many kinds of data, researchers, and
methods can one have confidence in the results."

DEFINITION
Research has been defined in a number of different ways.
A broad definition of research is given by Martyn Shuttleworth - "In the broadest sense of the
word, the definition of research includes any gathering of data, information and facts for the
advancement of knowledge."
Another definition of research is given by Creswell who states that - "Research is a process of
steps used to collect and analyze information to increase our understanding of a topic or issue". It
consists of three steps: Pose a question, collect data to answer the question, and present an
answer to the question.
The Merriam-Webster Online Dictionary defines research in more detail as "a studious inquiry or
examination; especially : investigation or experimentation aimed at the discovery and
10

interpretation of facts, revision of accepted theories or laws in the light of new facts, or practical
application of such new or revised theories or laws".

About cars
A car is a wheeled, self-powered motor vehicle used for transportation. Most definitions of the
term specify that cars are designed to run primarily on roads, to have seating for one to eight
people, to typically have four wheels, and to be constructed principally for the transport of
people rather than goods. The year 1886 is regarded as the birth year of the modern car. In that
year, German inventor Karl Benz built the Benz Patent-Motorwagen. Cars did not become
widely available until the early 20th century. One of the first cars that were accessible to the
masses was the 1908 Model T, an American car manufactured by the Ford Motor Company. Cars
were rapidly adopted in the United States of America, where they replaced animaldrawn carriages and carts, but took much longer to be accepted in Western Europe and other lessdeveloped parts of the world.
Cars are equipped with controls used for driving, parking, and passenger comfort and safety.
New controls have also been added to vehicles, making them more complex. Examples
include air conditioning, navigation systems, and in car entertainment. Most cars in use today are
propelled by an internal combustion engine, fueled by deflagration of gasoline (also known as
petrol) or diesel. Both fuels cause air pollution and are also blamed for contributing to climate
change and global warming. Vehicles using alternative fuels such as ethanol flexible-fuel
vehicles and natural gas vehicles are also gaining popularity in some countries.
Road traffic accidents are the largest cause of injury-related deaths worldwide. The costs of car
usage, which may include the cost of: acquiring the vehicle, repairs and auto maintenance,
fuel, depreciation, driving time, parking fees, taxes, and insurance, are weighed against the cost
of the alternatives, and the value of the benefits perceived and real of vehicle usage. The
benefits may include on-demand transportation, mobility, independence and convenience. The
costs to society of encompassing car use, which may include those of: maintaining roads, land
use, pollution, public health, health care, and of disposing of the vehicle at the end of its life, can
be balanced against the value of the benefits to society that car use generates. The societal
benefits may include: economy benefits, such as job and wealth creation, of car production and
maintenance, transportation provision, society wellbeing derived from leisure and travel
opportunities, and revenue generation from the tax opportunities. The ability for humans to move
flexibly from place to place has far-reaching implications for the nature of societies.
The term motorcar has formerly also been used in the context of electrified rail systems to
denote a car which functions as a small locomotive but also provides space for passengers and

11

baggage. These locomotive cars were often used on suburban routes by both interurban and
intercity railroad systems.
It was estimated in 2010 that the number of cars had risen to over 1 billion vehicles, up from the
500 million of 1986. The numbers are increasing rapidly, especially in China, India and
other NICs.

Company profile
A short description about the companies taken in this research work:

Maruti Suzuki
Maruti Suzuki India Limited commonly referred to as Maruti and formerly known as Maruti
Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese
automobile and motorcycle manufacturer Suzuki. As of November 2012, it had a market share of
37% of the Indian passenger car markets. Maruti Suzuki manufactures and sells a complete range
of cars from the entry level Maruti 800 (discontinued), Alto, to the hatchback Ritz, Celerio, , AStar, Swift, Wagon R,Zen and sedans DZire, Ciaz, Kizashi and SX4, in the 'C'
segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand
Vitara.
The company's headquarters are at No 1, Nelson Mandela Road, New Delhi. In February 2012,
the company sold its ten millionth vehicle in India. R.C Bhargava is the chairman and Kenichi
Ayukawa is the ceo of Maruti Suzuki.

Honda
Honda Cars India Ltd (HCIL) is a subsidiary of the Honda of Japan for the production,
marketing and export of passenger cars in India. Formerly known as Honda Siel Cars India Ltd,
it began operations in December 1995 as a joint venture between Honda Motor Company and
Usha International of Siddharth Shriram Group. In August, 2012, Honda bought out Usha
International's entire 3.16 percent stake for 1.8 billion in the joint venture. The company
officially changed its name to Honda Cars India Ltd (HCIL) and became a 100% subsidiary of
Honda.
It operates production facilities at Greater Noida in Uttar Pradesh and at Bhiwadi in Rajasthan.
The company's total investment in its production facilities in India as of 2010 was over 16.2
billion. Mr. Hironori Kanayama is the chairman and ceo of HonDA.

1.2 SIGNIFICANCE
12

Present situation
In the present era of rapid industrialization and development cars have become a need for the
urban population. In the developed countries it is considered a basic need whereas in the
developing and underdeveloped countries it is no longer a luxury. With entry of small cars it has
come under the reach of middle class people. Day by day the number of cars on roads is
increasing in every part of the world. The big car companies like Mercedes, Audi, BMW, Ferrari
etc. have become well-known names all over the world. In India Maruti Suzuki, Tata, Mahindra
etc. have become popular.
While purchasing any product the most influencing factor is the purchasing power of consumer
which is solely dependent on his income. Same goes with cars, people buy standard cars, sedan,
SUV, etc. according to their purchasing capacity. Preference for various brands is also influenced
by which income group people belong. Like middle class people go for Maruti, Tata, Honda,
Hyundai etc. whereas the rich class people go for Mercedes, Audi, Jaguar, BMW, etc.

13

14

2. REVIEW OF LITERATURE
1. The study of consumer preference & amp; Consumer preference towards various brands of
cars- by Rishi Kapoor
Published by: Rishi Kapoor on Feb 25, 2011
This research work was based on the consumer preference for various car companies having
a significant present in India. Maruti Suzuki, Tata, Fiat and Hyundai were taken into account
for the collection of data of consumer preference. For data collection 100 persons were
visited and all the people were owners of cars. The respondents were chosen through
judgmental sampling residing in Ambala. Five attributes were considered for consumer
15

preference. Out of which customers gave highest consideration to looks and style followed
by mileage. Other attributes like comfort, services and spares were considered later. This
research work also took into account brand awareness and the finding was that electronic
media is the most commonly used medium for brand awareness. The findings also indicated
that Maruti is the top player in Indian markets followed by Hyundai. The findings of this
work can be used in future research work also.
2. Comparative study of Maruti Suzuki and Hyundai- by Monish Shah
Published on: July 6, 2012
This research work is a comparative study of marketing strategy of Maruti Suzuki and
Honda. For the research work, a survey was conducted in Mumbai. The samples were
selected on random basis. For data collection the researcher visited various dealers and asked
them about the marketing strategies of companies and the requirements of consumers. He
also asked the users of Maruti Suzuki and Hyundai about their preferences while buying a car
and are they satisfied by the services of dealers. The findings suggest that marketing strategy
is a crucial factor for success of a car in markets. It also indicated that customers are attracted
through media publicity and mouth publicity. The consumers preferred petrol model of car
rather than diesel model and they were satisfied with the performance of car as well as
service of car. The researcher suggested for a customer relation strategy and focus on midsize cars. With the growth of middle class sector companies should focus on mid-size cars for
increasing their sales.

3. Analysis of Research in Consumer Behavior of Automobile Passenger Car Customer- by

Vikram shende
Published by: International Journal of Scientific and Research Publications, February 2014
This research work is based on the consumer behavior of the owners of passenger cars. 100
people in Pune were surveyed for this research. The purpose was to find out the preference of
consumers in each segment of passenger car like mini, sedan, mid-size, SUV, etc. The
researcher focused on the change in scenario of cars being considered a necessity rather than
luxury in India. The findings showed that in the category of personal preference dominant
factors were comfort in driving, value for money and interior design, which topped the
requirement list. It also that indicated that women drivers give emphasis to safety features

16

also. The conclusion is that an analysis of consumer behavior should be done to provide the
product compatible to needs of consumer.
4. Consumer preference and Automobile Market in India- by Aman Saxena
Published by: International Journal of Interdisciplinary and Multidisciplinary Studies
This research was based on the consumer preference with respect to position of automobile
market in India. The focus of the study on the factors that influence a person while buying a
car. For research work, a survey was conducted on 1046 men and women in Bengaluru. The
findings showed that the preference is characterized by distinctiveness of an individuals
expectations, for multiple options, heavy tendency of abandoning Brand loyalty and
switching towards competitor brands which provide higher value to the consumer. It also
identified a new generation of consumers which are difficult to classify by conventional
demographic factors and unless their thought process and buying behavior preferences are
fully understood, decisions on product designs, product variants, branding and distribution
channels are likely to be misled. The study suggest that the automobile company should work
upon that change in preferences of the consumers to gain a good market share in the Indian
automobile markets.

5. Market survey report on small car- by Prannoy Raj

Published by: Prannoy Raj on May 27, 2011
This research work is based on survey which has been done to know about most convenient
small car. The study sample consists of 200 respondents living in Delhi. The researcher has
used probability sampling in which stratified random sampling is used. A comparison is done
among all the car companies in India. The findings were that Maruti dominates the Indian
markets followed by Hyundai and Tata. It also showed people prefer an average of 15 kmpl
from a small car. The researcher focused on small car segment which pushed the automobile
sector in India. The study suggested that the automobile companies need to work on
providing more features in small cars.
17

18

3.1 OBJECTIVES OF RESEARCH STUDY

The purpose of research is to discover answers to questions through the application of
scientific procedures. The main aim of research is to find out the truth which is hidden and
which has not been discovered yet. Though each research study has its own research purpose,
we may think of research objectives as falling into a number of following broad groupings:

To gain familiarity with the phenomenon or to achieve new insights into it.

To portray accurately the characteristics of a particular individual, situation or a group.

To determine the frequency with which something occurs or with which it is associated
with something else.

To test a hypotheses with a casual relationship between variables

19

Objectives of my research work:

To observe the consumer preference for Honda and Maruti Suzuki
To observe the change in consumer preference with respect to the income group to
which the consumer belongs
To get a thorough knowledge of the factors that influence the buying decision of the
consumer
To understand the brand value of Honda and Maruti in Indian markets

To know the requirements of people from cars as a means of transport

20

4 Hypothesis of research
FRAMING THE HYPOTHESIS

4.1 Meaning of hypothesis

A hypothesis is considered as the principal instrument in research. Its main function is to
suggest new experiments and observations.

21

Thus, hypothesis is a tentative explanation for an observation, phenomenon, or scientific

problem that can be tested by further investigation. It offers a solution of the problem that is
to be verified empirically.
HYPO + THESIS = HYPOTHESIS
Hypo means a tentative or subject to the verification.
Thesis means statement about the solution of the problem.

Definition:
According to Black and Champion:
A tentative statement about something, the validity of which is usually unknown is known
as hypothesis.
According to Webster:
A tentative assumption made in order to draw out and test its logical or empirical
consequences.

Characteristics of hypothesis:
1. Hypothesis should be clear and precise. If the hypothesis is not clear and precise, the
inferences drawn on its basis cannot be taken as reliable.
2.

Hypothesis should be capable of being tested.

3. Hypothesis should state relationship between variables. One should be able to judge the
dependent and independent variable.

4. Hypothesis should be limited in scope and should be specific .a researcher must

remember that narrower hypothesis are generally more testable.
5. Hypothesis should be stated in simple terms, it will be easily understandable by all
concerned.
6. Hypothesis should be consistent with most known facts. It should be the one which
judges accept as being the most likely one.
7. Hypothesis must explain the facts that gave rise to the need for exploring facts.

Necessity in hypothesis
22

To be complete the hypothesis must include three components:

The variables.

The population.

The relationship between the variables.

A hypothesis should be:

stated clearly using appropriate terminology;

testable;

a statement of relationships between variables;

limited in scope (focused).

4.2

Types of hypothesis

1. NULL HYPOTHESIS
A null hypothesis (H0) is a concept which arises in the context of statistical hypothesis
testing. A common convention is to use the symbol H0 to denote the null hypothesis.
The null hypothesis describes in a formal way some aspect of the statistical behavior of a set
of data and this description is treated as valid unless the actual behavior of the data
contradicts this assumption. In other words, one may either reject, or not reject the null
hypothesis. Failing to reject H0 says that there is no strong reason to change any decision or
procedures predicated on its truth, but it allows the possibility of obtaining further data and
then re-examining the same hypothesis.
2. ALTERNATIVE HYPOTHESIS
The alternative hypothesis, Ha, is a statement of what a statistical hypothesis test is set up to
establish.
For example: in a clinical trial of a new drug, the alternative hypothesis might be that the new
drug has a different effect, on average, compared to that of the current drug.

HYPOTHESIS OF MY RESEARCH WORK

Topic: Consumer preference for Maruti Suzuki and Honda cars in Bhopal on basis of
Income

NULL HYPOTHESIS (H0):

There is no significant relationship between income of consumer and their preference

for Maruti Suzuki and Honda
23

ALTERNATIVE HYPOTHESIS (Ha):

There is a significant relationship between income of consumer and their preference

for Maruti Suzuki and Honda

Attributes:
A
Income is less than 5 lakhs
a
Income is more than 5 lakhs

B
Preference for Maruti Suzuki
b
Preference for Honda

24

5.1 TYPES OF RESEARCH

A research can be of various types. Type of research depends upon the nature enquiry taking
place by the researcher. Following are the various types of research:
1)

Descriptive Research:

25

Descriptive research means description of state of affairs as it exists at the present. The main
characteristic of this research is that the researcher does not have any control over the variables.
He can only report what has happened and what is happening. It includes surveys and fact
finding enquiries of different kinds.
2) Analytical Research:
In this type of research the researcher has to use facts or information already available and
analyze these to make critical evaluation of the material related with individual group or
situation.
3) Applied Research:
Applied research is concerned with solution of particular problem. Thus it aims at finding a
solution to an immediate problem faced by the society, industry or business organization. This is
also known as Action research.
4) Fundamental Research:
This research is mainly concerned with formulations of theories and approaches. It is original
and investigative study of a basic nature which is carried out to originate a new knowledge or to
make additional contribution to knowledge.
5) Experimental Research:
This research is based on experiments conducted in a laboratory. Under this, a lab is set up and
environmental conditions are created to study variables. Hawthorne Experiment is one examples
of this type of research.
6) Ex-post facto Research:
This type of research is based on analytical and scientific examination of relationship between
independent and dependent variables. This is an empirical research and the researcher does not
have any control over the independent variable.

7) Qualitative Research:
This type of research is concerned with qualitative phenomenon relating to or involving quality
aspect of an event. For example: Motivation research.
8) Quantitative Research:
Quantitative research is based on the measurement of quantity or amount. It is applicable to
phenomenon that can be expressed in terms of quantity. For example: Commercial Research.
9) Conceptual Research:

26

Conceptual research is one which is related to some abstract ideas or theories. It is generally used
by the philosophers and thinkers to develop new concepts.
10) Historical Research:
It is that research which utilizes historical sources like documents, remains etc. to study events or
ideas of the past including the philosophies of persons and groups at any remote point of time.
11) One time Research:
One time research portrays a single event. Hence it is also known as longitudinal research.
12) Explanatory:
It is related with cause and effect relationship. It is either related to present or to past. This
research emphasizes highly on conceptual part.
13) Exploratory:
The researcher emphasizes upon exploring or inventing something new from existing concept.
This research leads to development of new insight. The researcher can exercise control over the
variables. This research is related to future.
14) Case study:
This type of research study is done for an event. It is an intensive research. As the scope of case
study is narrow, census can be conducted for this research.
RESEARCH TYPE IN RESEARCH REPORT:
My research is an experimental as well as analytical research.

5.2 RESEARCH DESIGN

A research design is a systematic plan to study a scientific problem. The design of a study
defines the study type (descriptive, correlation, semi-experimental, experimental, review, metaanalytic) and sub-type (e.g., descriptive-longitudinal case study), research question, hypotheses,
independent and dependent variables, experimental design, and, if applicable, data collection
methods and a statistical analysis plan. It is the conceptual structure within which research is
conducted. It constitutes the blueprint for the collection, measurement and analysis of data.

TYPES
1.

Descriptive Design

Definition and Purpose

27

Descriptive research designs help provide answers to the questions of who, what, when, where,
and how associated with a particular research problem; a descriptive study cannot conclusively
ascertain answers to why. Descriptive research is used to obtain information concerning the
current status of the phenomena and to describe "what exists" with respect to variables or
conditions in a situation.

2.

Experimental Design

Definition and Purpose

A blueprint of the procedure that enables the researcher to maintain control over all
factors that may affect the result of an experiment. In doing this, the researcher attempts to
determine or predict what may occur. Experimental Research is often used where there is time
priority in a causal relationship (cause precedes effect), there is consistency in a causal
relationship (a cause will always lead to the same effect), and the magnitude of the correlation is
great. The classic experimental design specifies an experimental group and a control group. The
independent variable is administered to the experimental group and not to the control group, and
both groups are measured on the same dependent variable. Subsequent experimental designs
have used more groups and more measurements over longer periods. True experiments must
have control, randomization, and manipulation.

3.

Exploratory Design

Definition and Purpose

An exploratory design is conducted about a research problem when there are few or no earlier
studies to refer to. The focus is on gaining insights and familiarity for later investigation or
undertaken when problems are in a preliminary stage of investigation.
The goals of exploratory research are intended to produce the following possible insights:

Familiarity with basic details, settings and concerns.

Well-grounded picture of the situation being developed.

Generation of new ideas and assumption, development of tentative theories or

hypotheses.

Determination about whether a study is feasible in the future.

Issues get refined for more systematic investigation and formulation of new research
questions.
28

Direction for future research and techniques get developed.

RESEARCH DESIGN IN RESEARCH REPORT:

The research design used in my project is experimental and descriptive.

5.3 SAMPLE DESIGN

In statistics, quality assurance, & survey methodology, sampling is concerned with the selection
of a subset of individuals from within a statistical population to estimate characteristics of the
whole population. Each observation measures one or more properties (such as weight, location,
color) of observable bodies distinguished as independent objects or individuals. In survey
sampling, weights can be applied to the data to adjust for the sample design, particularly
stratified sampling. Results from probability theory and statistical theory are employed to guide
practice. In business and medical research, sampling is widely used for gathering information
about a population.
The sampling process comprises several stages:

Defining the population of concern

Specifying a sampling frame, a set of items or events possible to measure

Specifying a sampling method for selecting items or events from the frame

Determining the sample size

Implementing the sampling plan

Sampling and data collecting

Data which can be selected

Advantages of Sampling

Sampling saves time and money

Sampling saves labor.

Sample coverage permits a higher overall level of adequacy than a full enumeration.

Complete census is often unnecessary, wasteful, and the burden on the public.

29

5.3.1TYPES OF SAMPLING
1.

Probability

A probability sampling is one in which every unit in the population has a chance (greater than
zero) of being selected in the sample, and this probability can be accurately determined. The
combination of these traits makes it possible to produce unbiased estimates of population totals,
by weighting sampled units according to their probability of selection.
Probability sampling includes: Simple Random Sampling, Systematic Sampling, Stratified
Sampling, Probability Proportional to Size Sampling, and Cluster or Multistage Sampling. These
various ways of probability sampling have two things in common:
1.

Every element has a known nonzero probability of being sampled and

2.

Involves random selection at some point.

2.

Non-probability sampling

It is any sampling method where some elements of the population have no chance of selection
(these are sometimes referred to as 'out of coverage'/'under covered'), or where the probability of
selection can't be accurately determined. It involves the selection of elements based on
assumptions regarding the population of interest, which forms the criteria for selection. Hence,
because the selection of elements is nonrandom, nonprobability sampling does not allow the
estimation of sampling errors. These conditions give rise to exclusion bias, placing limits on how
much information a sample can provide about the population. Information about the relationship
between sample and population is limited, making it difficult to extrapolate from the sample to
the population.
Non- probability sampling methods include accidental sampling, quota sampling and purposive
sampling. In addition, nonresponsive effects may turn any probability design into a nonprobability design if the characteristics of nonresponsive are not well understood, since
nonresponsive effectively modifies each element's probability of being sampled.

5.3.2TECHNIQUES OF SAMPLING
1.

PROBABILITY SAMPLING

A.

Simple random sampling

30

In a simple random sample (SRS) of a given size, all such subsets of the frame are given an equal
probability. Furthermore, any given pair of elements has the same chance of selection as any
other such pair (and similarly for triples, and so on). This minimises bias and simplifies analysis
of results. In particular, the variance between individual results within the sample is a good
indicator of variance in the overall population, which makes it relatively easy to estimate the
accuracy of results.
.

B.

Systematic sampling

Systematic sampling relies on arranging the study population according to some ordering scheme
and then selecting elements at regular intervals through that ordered list. Systematic sampling
involves a random start and then proceeds with the selection of every kth element from then
onwards. In this case, k= (population size/sample size). It is important that the starting point is
not automatically the first in the list, but is instead randomly chosen from within the first to the
kth element in the list. A simple example would be to select every 10th name from the telephone
directory (an 'every 10th' sample, also referred to as 'sampling with a skip of 10').

C.

Stratified sampling

Where the population embraces a number of distinct categories, the frame can be organized by
these categories into separate "strata." Each stratum is then sampled as an independent subpopulation, out of which individual elements can be randomly selected. There are several
potential benefits to stratified sampling.
Each stratum is treated as an independent population, different sampling approaches can be
applied to different strata, potentially enabling researchers to use the approach best suited (or
most cost-effective) for each identified subgroup within the population.

D.

Probability-proportional-to-size sampling

In some cases the sample designer has access to an "auxiliary variable" or "size measure",
believed to be correlated to the variable of interest, for each element in the population. These
31

data can be used to improve accuracy in sample design. One option is to use the auxiliary
variable as a basis for stratification, as discussed above.
Another option is probability proportional to size ('PPS') sampling, in which the selection
probability for each element is set to be proportional to its size measure, up to a maximum of 1.
In a simple PPS design, these selection probabilities can then be used as the basis for Poisson
sampling. However, this has the drawback of variable sample size, and different portions of the
population may still be over- or under-represented due to chance variation in selections.

E.

Cluster sampling

Sometimes it is more cost-effective to select respondents in groups ('clusters'). Sampling is often

clustered by geography, or by time periods. (Nearly all samples are in some sense 'clustered' in
time - although this is rarely taken into account in the analysis.) For instance, if surveying
households within a city, we might choose to select 100 city blocks and then interview every
household within the selected blocks.

2.

NON PROBABILITY SAMPLING

A.

Quota sampling

In quota sampling, the population is first segmented into mutually exclusive sub-groups, just as
in stratified sampling. Then judgment is used to select the subjects or units from each segment
based on a specified proportion. For example, an interviewer may be told to sample 200 females
and 300 males between the age of 45 and 60.
It is this second step which makes the technique one of non-probability sampling. In quota
sampling the selection of the sample is non-random. For example interviewers might be tempted
to interview those who look most helpful. The problem is that these samples may be biased
because not everyone gets a chance of selection. This random element is its greatest weakness
and quota versus probability has been a matter of controversy for several years.

B.

Accidental sampling

Accidental sampling (sometimes known as grab, convenience or opportunity sampling) is a type

of non-probability sampling which involves the sample being drawn from that part of the
population which is close to hand. That is, a population is selected because it is readily available
and convenient. It may be through meeting the person or including a person in the sample when
one meets them or chosen by finding them through technological means such as the internet or
through phone. The researcher using such a sample cannot scientifically make generalizations
about the total population from this sample because it would not be representative enough. For
example, if the interviewer were to conduct such a survey at a shopping center early in the
morning on a given day, the people that he/she could interview would be limited to those given
32

there at that given time, which would not represent the views of other members of society in such
an area, if the survey were to be conducted at different times of day and several times per week.
This type of sampling is most useful for pilot testing.

C.

Purposive sampling

The researcher chooses the sample based on who they think would be appropriate for the study.
This is used primarily when there are a limited number of people that have expertise in the area
being researched.

SAMPLING TECHNIQUE IN RESEARCH REPORT:

In this project, probability sampling is used. In probability sampling, stratified random sampling
is used because respondents were divided among two age groups and then on the basis of their
preference for fast food.

5.3.3SAMPLING UNIT
The sampling unit is the unit on which the actual measurement of a character is made. In
replicated experiments, where the plot is the population, the sampling unit is smaller than the
plot. Examples of sampling units are a plant, a leaf, a group of plants (hill, row), a specified area,
a farm, a village, a farmer, etc. The characteristics of a good sampling unit are:
(1) It is easy to identify.
(2) It is easy to measure.
(3) It has high precision and low cost.

Sampling frame

In statistics, a sampling frame is the source material or device from which a sample is drawn. It
is a list of all those within a population who can be sampled, and may include individuals,
households or institutions.
33

SAMPLING UNIT IN RESEARCH REPORT:

In this report sampling unit means the people who are earning less than 5 lakh and who are
earning more than 5 lakh in Bhopal. A survey on 60 people was done who were selected on
random basis.

5.3.4VARIABLES UNDER THE RESEARCH

Independent Variables (IV) & Dependent Variables (DV)
In an experiment, the independent variable is the variable that is varied or manipulated by the
researcher, and the dependent variable is the response that is measured.
An independent variable is the presumed cause, whereas the dependent variable is the presumed
effect.
The IV is the antecedent, whereas the DV is the consequent. In experiments, the IV is the
variable that is controlled and manipulated by the experimenter; whereas the DV is not
manipulated, instead the DV is observed or measured for variation as a presumed result of the
variation in the IV.
VARIABLES IN RESEARCH REPORT:
The variables in my research study are:

Income of consumers i.e. less than 5 lakhs and more than 5 lakhs
Preference of consumers for Maruti Suzuki and for Honda

34

6. data collection
MEANING AND DEFINATION
Collection of data means the methods that are to be employed for obtaining the required
information from the units under investigation.
The method of collection of data depends upon the nature, object and scope of investigation on
one hand and the availability of money and the time on the other. It is prime importance to know
very clearly the points on which data is to collect for analysis of problem at hand.
35

6.1 data collection method

METHODS OF DATA COLLECTION

Primary data

Secondary data

PRIMARY DATA: - Primary data is one which is collected by the investigator himself for the
purpose of a specific enquiry or study. Such data is original in character and its generated by
survey conducted by individuals or research institutions.
SECONDARY DATA: - When an investigator uses the data which has already being collected by
others such data is called as secondary data. The secondary data can be obtained from journals,
report government publications, publications of professionals and research organizations etc.

6.2 data collection tools

SOURCES OF PRIMARY DATA

There are various modes of collection of primary data. They are following:

OBSERVATION

EXPERIMENTS

QUESTIONNAIRE/SCHEDULE

INTERVIEW

CASE STUDY
1. OBSERVATION

Watching with a view to derive to a conclusion is known as observation. In observation method,

the information is sought by way of investigators own direct observation without asking from
respondents
Goode and Hatt say science begins with observation and must ultimately return to observation
for its final validation.
Moses AND Kalton say observation implies the use of eyes rather than the ears and the voice.
According to oxford concise dictionary,

36

Observation means accurate watching, knowing of phenomena as they occur in nature with
regard to cause and effect or mutual relation.
2. EXPERIMENTS
An experiment has been considered as the basis of scientific method. It is extensively used in
physical sciences but its application is greatly limited in social sciences. Experiments cannot be
perfectly carried out in science which deals with human behavior. The behavior of human being
cannot be controlled and it cannot be subjected to laboratory test. Experimental method is now
finding place in social science also due to scientific equipment that has been made available to
social scientists.

According to GREENWOOD, an experiment is the proof of testing hypothesis which seeks to

loop up two factors into a casual relationship through the study of contrasting situations which
have been controlled on factors except the one of interest the latter being either the hypothetical
cause or the hypothetical effect.
3. QUESTIONNAIRE
Questionnaire is an important tool in obtaining the important information in particular field of
enquiry. In general the word questionnaire refers to a device for securing answers to questions,
by using a form which the respondents fill in him. On the other hand schedules the name usually
applied to a set of questions which are asked and filled in by the interviewer in a face to face
situation. In both the cases, the wording of the questions is the same foe all respondents.
According to Davis & Jensen A questionnaire is a systematic compilation of question that is
submitted to a sampling of population from which information is desire.
According to Goode & Hatt In general questionnaire refers to a device for securing answers to
questions by using a form which the respondent fills in himself.

4. SCHEDULE
Schedule may be defined as a Performa that consist a set of questions which are asked and filled
by the investigator in a face to face situation with another. In this method of data collection the
interviewer put certain question and the respondents furnish certain answer and the interviewer
record as it is given.
5. INTERVIEW
The interview is the implement par excellence of the field worker; particularly in an
underdeveloped country both because of both types of problem tackled and the environment
from which data are to be collected.

37

SOURCES OF SECONDARY DATA

A) Published Sources
1. Official publications of the government at all levels - Central, State, Union territories and
councils.
2. Official publications of foreign countries.
3. Newspapers and Journals of repute, both local and international.

B) Un-published Sources
1. Unpublished findings of certain inquiry committees.
2. Research workers' findings.
3. Unpublished material found with Trade Associations, Labor
Commerce.

Organizations and Chambers of

DATA COLLECTION IN RESEARCH WORK:

My research study has used both primary data and secondary data in the following way:1.
PRIMARY DATA- In order to know about the income of consumers, their preference for
a particular type of car company, what kind of services they want and what facilities they want in
a car, primary data was collected with the help of questionnaires
2.
SECONDARY DATA- In order to know about the previous research done on the similar
topics and know about their shortcomings and scope of research, secondary data was collected
from internet.

38

39

7. DATA ANALYSIS AND INTERPRETATION

7.1 INTERPRETATION
Interpretation refers to the test of drawing inferences from the collected facts after an analytical
and experimental study. In fact it is a search for broader meaning of research finding. The task of
interpretation has two measure aspects:
1.
The effort to establish continuity in research through linking the result of a given study
with those of another.
2.

The establishment of some explanatory concepts.

PRE-REQUISITES OF INTERPRETATION:
40

1.

Data must be homogeneous.

2.
Interpretation of data is based on availability of information and if there are errors, it has
to locate in the testing itself.

ANALYSIS OF CLOSE ENDED

QUESTIONS
1.

In which income group do you belong out of the options given below?

a)

Less than 5 Lakh

b)

More than 5 Lakh

Analysis table 1.1

Options

Total

No. of respondents

36

24

60

Percentage

60

40

100

41

Interpretation:
The table above shows that out of 60 respondents 36 earn less than 5 lakh and 24 earn more than
5 lakh.

Question 2
36
40

24

30
20
10
0

2.

Which companys car will you purchase?

a)

Maruti Suzuki

b)

Honda

Analysis table 1.2

Options

Total

No. of respondents

18

42

60

Percentage

30

70

100

42

Interpretation:
The table above shows that number of people preferring Honda are more than double of number
of people preferring Maruti Suzuki. This indicates a high demand for Honda.

Question 2

50
40
30
20
10
0

3.

Among listed fuels which fuel will you use in your car?

a)

Petrol

b)

Diesel

c)

CNG

d)

LPG
Analysis table 1.3

43

Options

Total

No. of respondents

20

30

10

60

Percentage

33.33

50

17.67

100

Interpretation:
Out of 60 respondents, half (30) of them prefer diesel model cars, 20 prefer petrol model cars
and 10 prefer CNG. Higher preference for diesel is because of its price which is lower than price
of petrol. Also there is no demand for LPG as a fuel among respondents.

Question 3
35
30
25
20
15
10
5
0

4.

Which type of seater car will you prefer?

a)

4 seater

b)

6 seater

c)

7 seater

d)

9 seater

Analysis table 1.4

Options

Total

No. of respondents

12

34

12

60

44

20

Percentage

20

56.57

3.33

100

Interpretation:
Out of 60 respondents, 34 respondents prefer 6 seater car, 12 prefer 4 seater and 7 seater car each
and 2 people prefer 9 seater car.

Question 4
30
25
20
15
10
5
0

5.

What is your color preference?

a)

Black

b)

Silver

c)

White

d)

Red

Analysis table 1.5

45

Options

Total

No. of respondents

28

12

16

60

Percentage

46.67

20

26.67

6.66

100

Interpretation:
Out of 60 respondents, 28 prefer black color car, 12 prefer silver color, 6 prefer white color car
and 4 prefer. High demand of black color indicates inclination of people of people of Bhopal for
black color in automobiles.

Question 5
30
25
20
15
10
5
0

6.

In how many seats will you install air bags?

a)

Drivers seat

b)

Both the front seats

c)

All seats

d)

None

Analysis table 1.6

46

Options

Total

No. of respondents

30

18

60

Percentage

13.37

50

30

6.66

100

Interpretation:
Out of 30 respondents, half(30) of them prefer 30 airbags in both the seats, 28 prefer them in
drivers seat only and 18 prefer them in both the seats. While 4 people dont want airbags in their
cars. A majority of people (56) want airbags in their cars showing a concern for safety in car.

Question 6
35
30
25
20
15
10
5
0

7.

Which kind of car will you be buying?

a)

Brand New car

b)

Pre-owned car

Analysis table 1.7

Options

No. of respondents

56

Percentage

93.34

47

Total

60

6.66

100

Interpretation:
Except for 4 respondents rest all of the respondents would like to buy a brand new car. There is
absolute lack of interest for pre-owned cars.

Question 7

60
50
40
30
20
10
0

8.

What is your budget to buy a car?

a)

3-5 Lakh

b)

5-8 Lakh

c)

8-10 Lakh

d)

More than 10 Lakh

Analysis table 1.8

48

Options

Total

No. of respondents

28

22

60

Percentage

13.34

46.66

36.66

3.34

100

Interpretation:
Out of 60 respondents, 28 would like to buy a car costing between 5 lakh and 8 lakh, 22 would
like to buy a car costing between 8 and 10 lakh and 8 people would like to buy a car costing
between 3 lakh and 5 lakh. The rest 2 respondents would like to buy a car costing above 10
lakhs. A majority of respondents (50) demand a car costing between 5 lakh and 10 lakh.

Question 8
30
25
20
15
10
5
0

9.

Which mode of payment will you prefer to make payment for your car?

a)

Down Payment

b)

EMI

c)

Full Cash

d)

Cheque

49

Analysis table 1.9

Options

Total

No. of respondents

10

42

60

Percentage

16.67

70

6.67

6.66

100

Interpretation:
Out of 60 respondents, 42 prefer to pay for their car through EMI i.e. loans, 10 prefer down
payment and 4 prefer full cash payment and payment by Cheque each. A majority prefer to
purchase a car by taking loan.

Question 9
45
40
35
30
25
20
15
10
5
0

10.

Which cc engine will you most likely to buy?

a)

500-750

b)

750-1000

c)

1000-1250

d)

Above 1250
Analysis table 1.10

50

Options

Total

No. of respondents

16

30

10

60

Percentage

6.67

26.67

50

16.66

100

Interpretation:
Out of respondents, half of them (30) prefer an engine between 1000-1250 cc, 16 prefer an
engine between 750-1000 cc and 4 prefer an engine between 500-750 cc. Rest 10 respondents
prefer an engine above 1250 cc. More than half of the people a car of more than 1000 cc showing
a need for powerful vehicles on Indian roads.

Question 10
35
30
25
20
15
10
5
0

11.

Which model will you prefer in the car which you will buy?

a)

Standard

b)

Above Standard

c)

Delux

d)

Super Delux
Analysis table 1.11

51

Options

Total

No. of respondents

46

12

60

Percentage

76.67

20

3.33

Interpretation:
Out of 60 respondents, 46 prefer a car above standard, 12 prefer delux model car and 2 prefer
super delux. However, none of the respondent would like to but standard model car.

Question 11
50
45
40
35
30
25
20
15
10
5
0

12.

For what purpose will you use your car?

a)

For Day to Day use

b)

For trips

c)

For Delivery purpose

d)

For Rental purpose

Analysis table 1.12

52

Options

Total

No. of respondents

44

14

60

Percentage

73.34

23.33

3.33

100

Interpretation:
Out of 60 respondents, 44 respondents want a car for day to day use, 14 respondents want it for
long trips only and 2 respondents want it for delivery purposes i.e. business purposes. However,
none of the respondents want a car for rental purposes.

Question 12
50
45
40
35
30
25
20
15
10
5
0

13.

What kind of car will you purchase?

a)

SUV

b)

Hatch bag

c)

Luxury

d)

Van

Analysis table 1.13

53

Options

Total

No. of respondents

30

18

60

Percentage

13.34

50

30

6.66

Interpretation:
Out of 30 respondents, half of them (30) want a hatch bag car, 18 want a luxury car, 8 want
SUVs and 4 want van. A majority of people want a hatch bag and luxury car indicating a demand
of luxury and comfort in cars.

Question 13
35
30
25
20
15
10
5
0

14.

Which of the following security feature will you install in your car?

a)

Child lock

b)

Power door lock

c)

Central locking

d)

More than 1
54

Analysis table 1.14

Options

Total

No. of respondents

16

16

24

60

Percentage

6.66

26.67

26.67

40

Interpretation:
Out of 60 respondents, 16 would like to install power door lock, 16 would like to install central
locking and 4 would like to install a child lock feature. While the rest 24 respondents want more
than 1 feature mentioned above to be installed in their cars.

Question 14
30
25
20
15
10
5
0

15.

What kind of music system will you install in your car?

a)

Tweeters

b)

Super Tweeters

c)

Woofers

d)

Michigan
Analysis table 1.15
55

Options

Total

No. of respondents

10

44

60

Percentage

6.66

16.67

73.34

3.33

100

Interpretation:
Out of 60 respondents, 44 prefer woofers music system, 10 prefer super tweeters music system, 4
prefer tweeters music system and 2 prefer Michigan music system. A majority of people music
system of above average standards in their cars.

Question 15
50
45
40
35
30
25
20
15
10
5
0

16.

Of which brand, you will chose to buy your music system?

a)

Sony

b)

Pioneer

c)

JCB

d)

Others
56

Analysis table 1.16

Options

Total

No. of respondents

42

60

Percentage

70

3.34

13.33

13.33

100

Interpretation:
Out of 60 respondents, 42 prefer music system of Sony, 8 prefer music system of JCB and 2
prefer music system of Pioneer. While 8 respondents prefer a brand other than these 3 brands.
This shows a high demand for Sony music systems and indicates its popularity among people.

Question 16
45
40
35
30
25
20
15
10
5
0

17.

Which kind of spoilers will you buy for your car?

a)

Plastic

b)

Carbon Plated

c)

Metal

d)

No Spoiler
Analysis table 1.17
57

Options

Total

No. of respondents

22

28

60

Percentage

3.33

36.67

46.67

13.33

100

Interpretation:
Out of 60 respondents, 28 prefer metal spoilers, 22 prefer carbon plated spoilers and 2 prefer
plastic spoilers. While rest 8 respondents dont want spoilers in their cars. However among the
people who want spoilers in their cars, a majority prefer high quality spoilers.

Question 17
30
25
20
15
10
5
0

18.

According to you which companys car is more expensive?

a)

Maruti Suzuki

b)

Honda
Analysis table 1.18

Options

Total

No. of respondents

16

44

60

Percentage

26.67

73.33

100

58

Interpretation:
According to 44 respondents cars of Honda are more expensive than cars of Maruti Suzuki.
While 16 respondents say that cars of Maruti Suzuki are more expensive than cars of Honda.
This indicates the view of people considering Maruti Suzuki a cheap brand in comparison to
other brands.

Question 18

50
40
30
20
10
0

19.

Which headlight will you install in your car?

a)

Projector

b)

Halogen

c)

With fog Lamps

d)

LED

59

Analysis table 1.19

Options

Total

No. of respondents

18

34

60

Percentage

3.33

10

30

56.67

Interpretation:
Out of 60 respondents, 34 prefer LED headlights, 18 prefer headlights with fog lamps, 6 prefer
halogen headlights and 2 prefer projector headlights. A majority of respondents would like to
install good quality headlights.

Question 19
40
35
30
25
20
15
10
5
0

20.

Do you already own a car?

a)

Yes

b)

No

Analysis table 1.20

Options

Total

No. of respondents

34

26

60

Percentage

56.67

43.33

100

60

Interpretation:
Out of the people surveyed, 34 of them already own a car and 26 of them didnt own a car.

Question 20

40
30
20
10
0

ANALYSIS OF OPEN ENDED

QUESTIONS
1. While buying a car, what other features will you prefer in your car?
This question was asked to find out the requirements of consumers when it comes to
features of a car. Based on responses my analysis is:

61

A majority of people want safety features in their cars showing the concern for
safety by the respondents.
Many people also want powerful ACs in their cars. This demand can be due to
increasing temperature in the city.
Fog tail lamps is also preferred by a few people.
A few people gave emphasis on high quality music system in their cars also.
People also demand alloy wheels instead of normal wheels.
Features to provide luxury and comfort are also demanded by many consumers.

2. Which companys service do you like and why?

This question was asked to find out that services of which company satisfies the
consumers in better way. Based on responses my analysis is:

Consumers of Honda were satisfied by its services and consumers of Maruti

Suzuki were satisfied by its services. It shows that both the companies give
adequate services to its customers.
While the respondents who dont own a car feel that services of Maruti Suzuki is
better than that of Honda.
This shows the brand image of Maruti in Indian markets.
Maruti Suzuki has a better reputation than Honda so a majority of people hold the
view that services of Maruti Suzuki is better.

3. Which companys car has a higher resale value and give reasons why?
This question was asked to know which companys car has better re-sale and the
reason behind it. Based on responses my analysis is:

Only consumers of Honda think that cars of Honda has better resale value than
cars of Maruti Suzuki.
Majority of people believe that cars of Maruti Suzuki has a better resale value.
Here, Maruti Suzuki is way ahead than Honda.
This is because of the brand image and reputation of Maruti Suzuki.
Many respondents said that they have a trust in cars of Maruti Suzuki and they are
assure of its performance. This lead to higher votes for Maruti Suzuki.

4. Which kind of car will you like to buy if you can increase your budget and why?
This question gave a condition to the respondents of increasing their budget and then
considering a car for buying. Based on responses my analysis is:

62

A majority of people gave emphasis to luxury and comfort in cars after increasing
their budget.
SUVs were the most common reply for this question.
Some people even thought of BMW and Audi when asked for increase in budgets.
This shows the desire for high end cars by middle class people.
Also, consumers of Maruti and Honda opted for a higher model car of the same
company respectively
It can be concluded that on an increase in budget people go for luxury in cars
rather than its basic needs.

5. Which car will you be buying and why?

This was the final question which asked the respondents that what car they will be
buying after considering all the factors. Based on responses my analysis is:

WagonR and Swift were the most preferred cars of Maruti Suzuki.
City and Brio were the most preferred cars of Honda.
Here, also customers of Maruti Suzuki stuck to Maruti Suzuki only and customers of
Honda stuck to Honda only.
This signifies the brand loyalty of people pf Bhopal and their trust in brand.
Mileage, looks, seating space, comfort, etc. were the reasons given for buying a
particular car.

7.2 chi square

CHI SQUARE TEST

63

The chi-square test is an important test among the several tests of significance developed by
statisticians. This test was developed by Professor Fisher and first time used by Karl Pearson.
Chi square, symbolically written as 2 (pronounced as Ki-square), is a statistical measure
used in the context of sampling analysis for comparing a variance to a theoretical variance.
As a non-parametric test, it can be used to determine if categorical data shows dependency or
the two classifications are independent. It can also be used to make comparisons between
theoretical populations and actual data when categories are used. Thus, the chi square is
applicable in large number of problems. The test is, in fact, a technique through the use of
which it is possible for all researchers to
(i) Test the goodness of fit;
(ii) Test the significance of association between two attributes, and
(iii)

Test the homogeneity or the significance of population variance.

CHARACTERSTICS OF CHI-SQUARE TEST

Following are the important characteristics of 2 test:
As this test is non-parametric test hence it is based on the frequencies and not on the
parameters like mean and standard deviation.

The test is used for testing the hypothesis and is not for estimation.

This test can also be applied to a complex contingency table with several classes and as
such is very test in research work.
This test is an important non-parametric test as no rigid assumptions are necessary in
regard to the type of population, no need of parameter values and relatively less
mathematical details are involved.

It is used when there is a need of comparing between expected and observed frequencies.

Chi-square distribution is a skewed distribution particularly with smaller degree of

freedom and as the sample size and degree of freedom increases and becomes large, chi
square distribution approach normality.
IMPORTANCE OF CHI-SQUARE TEST
Chi-square test enables us to find out the degree of discrepancy between observed and
expected frequency also known as theoretical frequency and then to determine whether the
discrepancy so obtained between observed and expected frequency is due to error of
sampling or error of chance. Hence, chi square test enables us to compare observed and
expected frequencies objectively, since it is not possible to tell just by looking at them
whether they are different enough to be considered statistically significant. Statistically
significance in this case implies that differences are not due to chance alone, but instead may
be indicative of other processes at work.
PRACTICAL APPLICATION OF CHI-SQUARE TEST
64

CONDITIONS FOR THE APPLICATION OF CHI-SQUARE TEST

The following conditions should be satisfied before 2 can be applied:

Observations recorded and used are collected on a random basis.

All the items in the sample must be independent.

No group should contain very few items, say less than 10. In case where the frequencies
are less than 10, regrouping is done by combining the frequencies of adjoining group so that
the new frequencies become greater than 10. Some statistician take this number as 5, but 10
is regarded as better by most of the statisticians.
The overall number of items must also be reasonably large. It should normally be at least
50, howsoever small the number the groups may be.
The constraints must be linear. Constraints which involve linear equations in the cell
frequencies of a contingency table are known as linear constraints.

ANALYSIS TABLE

65

Q.NO

OPTION
A

OPTION OPTION
B
C

OPTION TOTAL
D

36

24

No option

No option

60

18

42

No option

No option

60

20

30

10

12

34

12

60

28

12

16

60

30

18

60

56

No option

No option

60

28

22

60

10

42

60

10

16

30

10

60

46

12

60

11

60

12

44

16

60

13

18

30

60

14

16

16

24

60

15

10

44

60

16

42

60

17

22

28

60

18

16

36

No option

No option

60

19

18

34

60

20

34

26

No option

No option

60

7.3 HYPOTHESIS TESTING QUESTION:

Q1.
a)

In which income group do you belong out of the options given below?
Less than 5 Lakh
66

b)

More than 5 Lakh

Q2.
a)
b)

Which companys car will you purchase?

Maruti Suzuki
Honda

ANALYSIS SHEET OF ABOVE HYPOTHESIS TESTING QUESTION

PARTICULARS
Income is less than 5
lakhs
Income is more than 5
lakhs
TOTAL

Preferring Maruti
Suzuki
12

Preferring Honda

TOTAL

24

36

18

24

18

42

60

STEPS INVOLVED IN APPLYING CHI-SQUARE TEST

For the purpose of applying chi-square test 60 respondents have been taken into consideration.
The application of chi-square test has been done on the frequency of 2 hypothesis testing
questions. The respondents have been chosen randomly from the population (area of research).
The steps to be followed for calculating the value of chi-square are:
STEP 1: Formulation of hypothesis:
The very first step is the formulation of null and alternate hypothesis.

NULL HYPOTHESIS (H0):

There is no significant relationship between income of consumer and their preference for Maruti
Suzuki and Honda

ALTERNATIVE HYPOTHESIS (Ha):

There is a significant relationship between income of consumer and their preference for Maruti
Suzuki and Honda
STEP 2: Preparation of 2*2 Table
A 2*2 is prepared with the help of total columns of analysis sheet.
AB=12

aB=6

B=18

Ab=24

ab=18

b=42

A=36

a=24

N=60

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AB= Income less than 5 lakhs and preferring Maruti Suzuki

Ab= Income less than 5 lakhs and preferring Honda
aB= Income more than 5 lakhs and preferring Maruti Suzuki
ab= Income more than 5 lakhs and preferring Honda

STEP 3: Calculation of expected frequencies.

Then the expected frequencies are calculated on the basis of formed hypothesis corresponding to
each cell by formula. The expected frequency for any given cell is worked out as under:
Expected frequency of any cell= (Row total of the row of that cell)*(Column total for the column
of that cell)
Grand total
i.e. EF = Ri *Ci /N
Where,
EF = expected frequency
Ri = sum total of rows in which Ei lies
Ci= Sum total of columns in which Ei lies
n = total number of samples.
Expected frequencies are as follows:
(Group A) AB=36*18/ 60= 10.8
(Group B) Ab=36*42 / 60= 25.2
(Group C) aB=24*18/ 60 = 7.2
(Group D) ab= 24*42/ 60 = 16.8

STEP 4: PREPARATION OF CHI-SQUARE TABLE

Obtain the difference between observed and expected frequencies and find out the squares
of such differences i.e. calculate (OF EF)2

Divide the quantity (OFEF) 2 obtained as stated above by the corresponding expected
frequency to get (OFEF) 2 / EF and this should be done for all the cell frequencies.
Chi-square table
Group

OF

EF

OF-EF
68

(OFEF) 2

(OFEF) 2 /

EF
A

12

10.8

1.2

1.44

0.133

24

25.2

-1.2

1.44

0.057

7.2

-1.2

1.44

0.2

18

16.8

1.2

1.44

0.085

Total

60

60

5.76

0.475

STEP5: CALCULATION OF VALUE OF CHI-SQUARE

Find the summation of values of (OFEF) 2 / Ei or we can write it as (OFEF) 2 / EF.
the required 2 value.

This is

From the above table the value of chi-square is 2 = 1.2

STEP6: CALCULATION OF DEGREE OF FREEDOM

Degree of freedom is calculated in supposition that in a certain lot of sample there can be some
defective items, the lot may not be good. Hence we need to decide the number items to be tested
and the criteria for accepting or rejecting the hypothesis.
Here, the degree of freedom is calculated by the given formula:
Degree of freedom=(R-1) (C-1) where,
R=total no. of rows
C=total no. of columns.
Here, degree of freedom = (2-1) (2-1) = 1

STEP7: DECIDING LEVEL OF SIGNIFICANCE

Level of significance means that researcher is willing to take a certain percentage of risk with a
probability of rejecting true Ho. Hence a level of significance is decided.
Here, level of significance is taken as 5%.
STEP8: FINDING OUT THE TABLE VALUE
Table value is found at after deciding level of significance and degree of freedom from the 2
table.
69

Here, taking 5% level of significance and 1 degree of freedom, the table value comes out to be
3.841.

RESULT:
From the above calculations, observed value is 0.475 and the table value is 3.841.The observed
value is relatively smaller than the table value. Hence observed value lie in acceptance region. It
does not lie in the rejection area. So, the null hypothesis is accepted.
Therefore, by taking 5% level of significance and 1 degree of freedom null hypothesis is
accepted.

CONCLUSION:
By taking 5% level of significance and 1 degree of freedom null hypothesis is accepted and hence
we conclude that, There is no significant relationship between income of consumer and their
preference for Maruti Suzuki and Honda.

70

FINDINGS
On the basis of survey done on 60 people living in Bhopal I found out that:

The people were selected on random and there wasnt much difference between number
of people earning less than 5 lakhs annually and number of people earning more than 5
71

lakhs annually. Similarly, there wasnt much difference between number of people who
own a car and do own a car.
There is a huge demand for Honda cars in Bhopal in comparison to Maruti Suzuki.
But, majority of people think that cars of Maruti Suzuki is cheaper than cars of Honda.
Most of the people are willing to buy diesel model cars because of its price being lower
than that of petrol.
There is a certain craze for black color cars in Bhopal.
Most of the people would like to buy car in arrange of 5 lakhs and 10 lakhs. They also
prefer above standard models. This indicates towards high demand of mid-size cars like
Swift and Brio in Bhopal.
Most of the people want to buy a SUV showing a craze for SUV cars in Bhopal.
People of Bhopal also give emphasis on music system in cars and they want good quality
systems in their cars. Sony is the most trusted brand for music systems in Bhopal.
When it comes to safety feature in cars air bags and safe locking system are preferred by
a majority of people.
People prefer to buy a brand new car mostly and the mode of payment they prefer is
taking loan and then paying monthly installments. This shows that people dont want to
spend a lump sum amount on purchase of car.
Most of the people would like to buy a car for day to day purposes. This shows change in
pattern of demand of cars from a luxury item to necessity item.
A majority of people demand for LED lights showing a fascination of LED lights in
Bhopal.
Fog lamp, powerful ac and safety features are the features that people demand more in
cars.
When the people were asked about resale value many of them think that cars of Maruti
Suzuki has a better resale value.
When the people were ask for increase in budget, a majority of them desired a SUV or a
sedan showing the desire for luxury and comfort in cars.
Honda city and Maruti Suzuki swift are other cars that are in demand.

Suggestions
Several suggestions which I would like to give are:

People these days have good knowledge about cars and are very demanding when it
comes to features of car. So the companies need to work on providing more features.
With the growth of middle class sector in India demand for mid-size cars is also increasing.
72

People these days are focusing on safety features so the companies should work on that also.
Also with the fall in demand of petrol there will be rise in demand for petrol cars.
Honda has a huge demand but is should work on building trust among people. Whereas
Maruti Suzuki should work on increasing the demand of its cars.
Consumers should be regularly aware about products in order to make a good purchase
decision.

CONCLUSION
My conclusion from this project is that the preference of consumers for a brand is not based on
their income. It is based on the services and the popularity of the brand.
With the rise of middle class people in India there is a huge demand for mid-size cars. Earlier it
was believed that Indians focus only on mileage while purchasing automobiles. But the scenario
has changed. Now many other factors like safety features, comfortable seating, powerful ACs,
etc. influence the decision of consumers. Maruti Suzuki which used to dominate the Indian 4
wheeler markets has lost its significance now. It is facing a lot of competition now especially
from Honda.
73

As the knowledge of people in automobiles is increasing they are becoming more aware which
has made people choosier and more demanding while buying a car. While conducting research I
also concluded that people these days are very much interested in the automobiles.
This research work helped me in applying the theoretical knowledge of research in a practical
manner. It also helped to know about the change in tastes and preferences of consumers with
respect to change in Indian economy.
This research work is entirely based on the survey conducted on 60 people in Bhopal. I hope that
errors (if any) are within permissible limits.

74

75

Books referred:

TITLE
Research Methodology
(Methods and Techniques)
Research Methodology

AUTHORS

New Age
Dr. KOTHARI

International
(P) Limited

CAUVERY &

SUDHANAYAK
S. Chand
& GIRIJA & MEENAKSHI

Research Methodology
BHATTACHARYA
Research Methodology

PUBLISHER

Excel Books
Prentice hall

PANNEERSELVAM

of India
private ltd

Research Methodology
In Management

Dr. MICHAEL

Himalaya
House

Publishing

WEBSITES:
http://en.wikipedia.org/wiki/Car
http://en.wikipedia.org/wiki/Maruti_Suzuki
http://en.wikipedia.org/wiki/Honda
http://www.scribd.com/doc/49537851/The-Study-of-Consumer-Preference-ampConsumer-Perception-Towards-Various-Brands-of-Cars#scribd
https://www.scribd.com/doc/91319924/Major-Project-Customers-Perception-TowardsMid-Segment-Cars-and-Impact-of-Brand-Ambassador-on-Their-Sale3135p://en.wikipedia.org/wiki/Research

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