Decision Making Process For Durable Products: A Case Study of Two-Wheelers in Ganjam

International Journal of Research in Finance and Marketing (IJRFM)
Available online at : http://euroasiapub.org/current.php?title=IJRFM

Vol. 7 Issue 5, May - 2017, pp. 63~70
ISSN(o): 2231-5985 | Impact Factor: 6.397 | Thomson Reuters Researcher ID: L-5236-2015
Decision making process for durable products: A case study of two-wheelers in

Ganjam
Dr. Priyadarshini Padhi

(Associate Prof., R.I.T, Brahampur)
M.I.G.-39, Stage -2, BRIT Colony,
Brahampur, Odisha,Ganjam-760001
Abstract- Buying involves parting with money, which may be part of a hard earned wage, profit
of a risky investment or even the entire savings of a lifetime. As the durable products are high
involvement products the consumers think much before taking a decision to purchase it.
Sometimes they take consultation of others. So, it is a very important complex human behavior. It
includes three important aspects of the concept - firstly, the process of buying or stages in the
decision to buy; secondly, Persons concerned directly or indirectly in the making of this decision
and thirdly, the factors or variables which determine the behavior of a buyer. In the era of
globalisation consumers are the pivot of all marketing activities. The modern marketing
management tries to solve the basic problems of consumers in the area of consumption. It involves
concentrated efforts to understand the buying process and all the factors influencing it so that they
can attain the objective of sustainable growth. This paper attempts to sketch out the decision
making process while purchasing durable products. It also tries to identify the factors influencing
brand selection.
Keywords: Brand selection, consumer behaviour, Decision making, Durable product,
Two-wheeler.
Introduction
In the modern consumer-oriented market all the marketing activity starts with the
consumer and ends with the consumer. Marketing success of an enterprise depends on its core
proficiency to satisfy the consumers. Comprehending consumer needs, expectations and
aspirations coupled with problems is a must to exploit marketing opportunities and meeting
challenges beset along with the opportunities. So, the marketing managers have to recognize all
where, how, when and under what condition of consumer behavior. Study of consumer behavior
explains how individuals make decisions to spend their valuable resources on consumption
related items. The real problem is to learn what a consumer takes into consideration when he
chooses a particular brand. It involves concentrated efforts to understand the buying process
and all the factors influencing it. The consumers are very cautious with reference to purchase of
consumer durables. A study of information search behavior of consumers helps the marketing
managers to take decision in respect of the four ps of the marketing mix.
International Journal of Research in Finance & Marketing

Email:- editorijrim@gmail.com, http://www.euroasiapub.org 63
An open access scholarly, peer-reviewed, interdisciplinary, monthly, and fully refereed journal
Vol. 7 Issue 5, May - 2017
ISSN(o): 2231-5985 | Impact Factor: 6.397 |
The two wheeler industry has witnessed a number of players with high level of sophisticated
technology. Bajaj Auto Ltd, Hero Moto Corporation (formerly Hero Honda), Honda Motorcycle
and Scooter India, LML Mahindra & Mahindra Limited, Royal Enfield Motor, Suzuki Motorcycle
India, TVS Motor , India Yamaha Motor are some of the major players who has their own market
shares in Indian market. As a leading manufacturing sector it is considered as one of the
controlling valve of economic growth. During last some years a number of legal steps have been
taken to take this sector to its peak position so that the economy can reach in its height. This
research work will provide wide knowledge and understanding of the behavior of the
customers with reference to the purchase of Motor cycle.
Literature Review
S. Poongavanam has tried to study the level of satisfaction and the after sales services
perception of consumers and to study the relationship between age, income, education level,
occupational and the two wheeler ownership. A fashionable and trendy bike which is good on
fuel and speed efficiency with legend and aesthetic looks attracts the consumers. Resale value
of an old two wheeler also influences the consumer choice.
Omesh Chhada has tried to make SWOT analysis of some reputed brands. He concluded that a
satisfied customer recommends a particular brand to others. So, the purchasing procedure is
not over with the purchase of a product.
H.D. Vyas has undertaken a study which focuses on factors and sources of information involved
in purchase of consumer durable. According to this study authorized dealers shop, technical
experts, TV and friends are the important sources of information.
In his studies Naveen Rai viewed that advertisements have great influence in brand selection
decision of customers.
Objective
1. To understand the methods used by the consumers while selecting a brand.
2. The impact of demographic factors on the selection of a particular brand.
3. Identify the factors influencing brand selection.
4. To suggest techniques to improve sales.
Methodology
Both primary and secondary data are used for the analysis. The primary data collected through
questionnaires administered to a sample of 110 consumers which is selected from two towns of
Ganjam i.e., Berhampur and Bhanjanagar. Pretested Questionnaire is used to collect the views of
the respondents. Secondary data is also collected through various publications of newspapers,
magazines, books and magazines websites of different two-wheeler companies. In order to answer
the researches questions and achieve the objectives of the study; the following hypotheses are
advanced and will be tested in the course of this study.

Hypothesis 1
Null Hypothesis H0: Age of the respondents and the factors considered for brand selection are
independent.
Hypothesis - 2
Null Hypothesis H0: Income of the respondents and the factors considered for brand selection are
independent.
Hypothesis - 3
Null Hypothesis H0: Qualification of the respondents and the factors considered for brand
selection are independent.
Hypothesis - 4
Null Hypothesis H0: Profession of the respondents and the factors considered for brand selection
are independent.
Hypothesis - 5
Null Hypothesis H0: marital status of the respondents and the factors considered for brand
Hypothesis - 6
Null Hypothesis H0: The degree of involvement of all the family members is equal for brand
selection while purchasing a bike.
Table 1 Demographic profile of the respondents

Age No of the respondents
>30 35
30-50 54
>50 21
Income No of the respondents
<20000 21
20000-40000 59
>40000 30
Qualifications No of the respondents
UG 48
PG 36
Professional 26
Occupation No of the respondents
Serviceman 39
Businessman 24
Professional 30
Marital status No of the respondents
Married 68
Unmarried 42
Source-Questionnaire

Table 2 Reasons leading to the selection of a brand
Factors considered for selection of a brand Respondents percentage

External factors 29
Technical factors 33
Cost factors 24
Service factors 14
Source-Questionnaire
According to 29% of the respondents external factors like brand name of the company, colour and
style are the important factors to be considered for selection of a particular brand whereas 14%
give importance to the after sales service and credit facilities arranged by the local dealers. They
considered these service factors as key elements which affect brand selection. Another 33% of the
respondents choose a particular brand due to the technical factors. On the other hand for 24% of
the respondents cost of the bike is the most important factor to be considered before purchasing
it.
Analysis and Interpretation

Hypothesis 1
Null Hypothesis H0: Age of the respondents and the factors considered for brand selection are
independent.
H1: Age of the respondents influences the factors considered for brand selection.
Table-3 Age and factors considered for brand selection
Age Factors considered for brand selection
External factors Technical factors Cost factors Service factors
>30 17 8 11 5
30-50 9 17 9 6
>50 6 11 6 5
The calculated value of Chi-square is 8.28and the table value of Chi-square for 6 degree of freedom
at 5 % level of significance is 12.6.As the calculated value is less than the table value the null
hypothesis is accepted. Age of the respondents and the factors considered for brand selection are
independent.
Hypothesis 2
Null Hypothesis H0: Income of the respondents and the factors considered for brand selection are
independent.
H1: Income of the respondents influences the factors considered for brand selection.

Table-4 Income and factors considered for brand selection

Income Factors considered for brand selection
>20000 7 8 12 6
20000-40000 11 13 9 5
>40000 14 15 5 5
The calculated value of Chi-square is 7.06 and the table value of Chi-square for 6 degree of freedom
hypothesis is accepted. Income of the respondents and the factors considered for brand selection
are independent.
Hypothesis 3
Null Hypothesis H0: qualification of the respondents and the factors considered for brand
H1: qualification of the respondents influences the factors considered for brand selection.
Table- 5 Qualification and factors considered for brand selection

Qualification Factors considered for brand selection
UG 15 8 9 5
PG 7 12 11 5
Professional 9 16 6 6
hypothesis is accepted. Qualification of the respondents and the factors considered for brand
Hypothesis 4
Null Hypothesis H0: Occupation of the respondents and the factors considered for brand selection
are independent.
H1: Occupation of the respondents influences the factors considered for brand selection.
Table-6 Occupation and factors considered for brand selection
Occupation Factors considered for brand selection
Serviceman 6 15 13 5
Businessman 17 11 7 6
Professional 9 10 6 5
The calculated value of Chi-square is 8.55and the table value of Chi-square for 6 degree of freedom

hypothesis is accepted. Occupation of the respondents and the factors considered for brand
Hypothesis 5
Null Hypothesis H0: marital status of the respondents and the factors considered for brand
H1: Marital status of the respondents influences the factors considered for brand selection.
Table- 7 marital status and factors considered for brand selection

Marital status Factors considered for brand selection
Married 10 24 14 7
Unmarried 22 12 12 9
at 5 % level of significance is 7.81. As the calculated value is less than the table value the null
hypothesis is accepted. Marital status of the respondents influences the factors considered for
brand selection.
Hypothesis - 6
Null Hypothesis H0: The degree of involvement of all the family members is equal for brand
selection while purchasing a bike.
H1: the degree of involvement of all the family members for brand selection while purchasing a
bike varies significantly.
Table- 8 Degree of involvement shown by different family members (in percent)
Rank Husband Wife Children Others
Very low 4 11 7 24
Low 7 18 11 23
Reasonable 11 19 15 14
High 24 24 12 18
Very high 54 28 55 21
Mean score 4.17 3.37 3.97 2.89
Source: Questionnaire
All the family members are involved in the purchase of a durable product. Bike is a product used
by all the family members. So accordingly there is a high degree of involvement of family members
in the purchase decision. The difference in degree of involvement by the different family members
is exhibited in the following table. As a primary decision maker husband has a very high influence
on the decision. Nature of the product is an important factor which decides the role of the family
members. Bike is a product which is used by husband but the whole family enjoys the riding. So,

housewife and children are also highly involved in the purchasing decision. The adolescent
children are more involved in the purchasing decision. The mean score involvement of wife and
children in purchasing a durable like two wheelers is calculated which is 3.37 & 3.97 respectively.
When a young earning member of a family makes a purchasing decision, the parents have an
influence in the decision making process. Peers and neighbors also have some influence on the
purchase process. The mean response score of such influence is 2.89. So, the degree of involvement
of all the family members for brand selection while purchasing a bike varies significantly.
Conclusion
The two-wheeler industry is one of the fastest growing industries. Around 75% of the market
share of automobile industry is grabbed by the two-wheeler manufacturers. India is the second
largest producer of two-wheelers in the whole world. In the era of globalisation consumers are
given many options to decide. Automobile sector is no exception. The customer preferences have
changed in favour of motor cycles and gearless scooters with higher technology, fuel economy and
aesthetic appeal. Study of consumer perceptions and behavior of motor cycle owners provides
important feedback to have innovative marketing strategies and effective sales promotion.
Before purchasing a durable product, the consumers prepare an evoked set. The actual brand
selection is done on the basis of this. External information search activity is carried on before a
particular brand is selected. The determinants of consumer behavior can be categorized as
cultural, socio-economic, personal and psychological factors. But from the analysis we observed
that the major demographic factors like age, education, profession and qualification etc do not
have considerable effect on the factors considered for brand selection. This may be due to the fact
that bike is a product used by all the family members. So accordingly there is a high degree of
involvement of family members in the purchase decision. The main earning male member is
generally highly involved in the brand selection process. But other members like the wife and
children are also highly involved in the brand selection process. Other persons like friends and
relatives are also somehow involved to some extent.
Effective sales promotion is inevitable to ensure that a product is shortlisted in the evoked list.
Goodwill of the brand, after sales service, availability of easy finance, updated technology with
reasonable price are some of the factors which increase the chances of a brand being selected for
purchasing. So, the marketers should consistently work to strengthen these areas.
Reference
1. Chundawat D.S., Gupta Seema (2003) Family Roles and Social Influences in Buying
Decision-making, The IUP Journal of Marketing Management, Vol. Aug 2003.
2. a study on consumer buying behaviour towards home appliances in salem city by
GEETHANJALI and Dr. S. ASSOK KUMAR (IJEMR October 2011-Vol1 Issue 5 - ISSN
2249 2585 )
3. Janaki P. , A study on consumer involvement in purchase of Home Appliance( IJMT,vol 2,
issue I,ISSN 2249-1058,p169-185)

4. A study on consumer buying behaviour towards home appliances in salem city by

GEETHANJALI and Dr. S. ASSOK KUMAR (IJEMR October 2011-Vol1 Issue 5 - ISSN
2249 2585 )
5. Nelson James E. (1979)s survey, Children As Information Sources In
The Family Decision To Eat Out, Advances in Consumer Research, Vol.06, pp. 419-423
6. Omesh Chadha , STUDY OF CONSUMER BUYING BEHAVIOR TOWARDS BIKES,IJRFM
Volume 1, Issue 2 (June, 2011) (ISSN 2231-5985)
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International Journal of Research in Finance and Marketing (IJRFM)

Available online at : http://euroasiapub.org/current.php?title=IJRFM

Decision making process for durable products: A case study of two-wheelers in

Dr. Priyadarshini Padhi

International Journal of Research in Finance & Marketing

International Journal of Research in Finance & Marketing

Table 1 Demographic profile of the respondents

International Journal of Research in Finance & Marketing

Table 2 Reasons leading to the selection of a brand

Factors considered for selection of a brand Respondents percentage

Analysis and Interpretation

International Journal of Research in Finance & Marketing

Table-4 Income and factors considered for brand selection

Table- 5 Qualification and factors considered for brand selection

International Journal of Research in Finance & Marketing

Table- 7 marital status and factors considered for brand selection

Rank Husband Wife Children Others

Mean score 4.17 3.37 3.97 2.89

International Journal of Research in Finance & Marketing

International Journal of Research in Finance & Marketing

4. A study on consumer buying behaviour towards home appliances in salem city by

International Journal of Research in Finance & Marketing

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