CONSUMER BEHAVIOUR

OF SKODA AUTOMOBILE

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 ACKNOWEDGEMENT

I would like express my special thanks of gratitude to my teacher Ms.

Hetal Philip as well my principle Ms. Kavita Sharma who gave me this
golden opportunity to do project on the topic consumer behavior of Skoda
automobile which also helped in doing a lot of research and I came to
know so many new things I am really thankful to them.

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Secondly, I would like to thank my family and friends who helped me in
finalizing the project within the given limited time frame.

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INDEX

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 INTRODUCTION

Economics is concerned with consumer behavior, the behavior that

people seek to acquire goods and services that will satisfy their needs and
wants. Consumer behaviour is the study of how individual customers,
groups or organizations select, buy, use, and dispose ideas, goods, and
services to satisfy their needs and wants.
It refers to the actions of the consumers in the marketplace and the
underlying motives for those actions. Various theories have been
developed from time to time to explain consumer behaviour. Two such
theories in our course are:
 Cardinal utility analysis
 Ordinal utility analysis

Cardinal utility: Cardinal utility analysis the oldest theory of

demand which provides an explanation of consumer's demand for
a product and derives the law of demand which establishes an
inverse relationship between price and quantity demanded of a
product. In cardinal utility analysis; the price that the con sumer is
willing to pay for the commodity is taken into consideration.

Ordinal utility: The term ordinal means ranking in order of

preference. It implies that the consumer is capable of simply
compromising the utility observed from different goods or unit s
from some goods.

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 FACTOR AFFECTING CONSUMER
BEHAVIOUR

1. CULTURAL FACTORS
Consumer behavior is deeply influenced by cultural factors, such as
buyer’s culture, subculture and social class.

• Culture
Essentially, culture is the share of each company and is the major cause
of the person who wants and behavior. The influence of culture on the
purchasing behavior varies from country to country, therefore sellers have
to be very careful in the analysis of the culture of different groups, regions
or even countries.

• Subculture
Each culture has different subcultures, such as religions, nationalities,
geographical regions, racial, etc. marketing groups may use these groups,
segmenting the market in several small portions. For example, marketers
can design products according to the needs of a specific geographical
group.

• Social Class
Every society has some kind of social class is important for marketing
because the buying behavior of people in a particular social class is
similar. Thus, marketing activities could be adapted to different social
classes. Here we should note that social class is not only determined by
income, but there are several other factors such as wealth, education,
occupation etc.
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2. PERSONAL FACTORS

Personal factors may also affect consumer behavior. Some of the

important factors that influence personal buying behavior are: lifestyle,
occupation, age, personality and self-esteem.

• Age
Age and life cycle have a potential impact on the purchasing behavior of
consumers. It is obvious that consumers change the purchase of goods and
services over time. Family life cycle consists of different stages as young
singles, married couples and unmarried couples etc. that help marketers
to develop suitable products for each stage.

• Occupation
The occupation of a person has a significant impact on their buying
behavior. For example, a marketing manager of an organization is trying
to buy business suits, while a low-level worker in the same organization
buy-resistant clothing work.

• Lifestyle
Lifestyle clients is another factor affecting import purchasing behavior of
consumers. Lifestyle refers to the way a person lives in a society and
express things in their environment. It is determined by the client’s
interests, opinions, etc. and activities shapes their whole pattern of acting
and interacting in the world.

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 SKODA

Škoda Auto, more commonly known as Škoda, is a

Czech automobile manufacturer founded in 1895 as Laurin & Klement.
Its headquarters are in Mladá Boleslav, Czech Republic.

In 1925 Laurin & Klement was acquired by the industrial

conglomerate Škoda Works, which itself became state owned in 1948.
Then it was gradually privatized and in Škoda became a wholly owned
subsidiary of the Volkswagen Group.

Škoda automobiles are sold in over 100 countries and in, total global sales
reached 1.21 million units, and the operating profit was €1.6 billion. As
of 2017, Škoda's profit margin was the second highest of all VW Group
brands after Porsche.

Skoda has been in the automobile industry for the past 122 years and it
has been constantly doing well for over the years. For the year 2017
Skoda’s annual turnover was 1.6 billion pounds. After the first world war
Skoda started producing trucks and then over the years with time it
excelled in a wide rage of cars including SUV’s and sedans and
hatchbacks. Some of the best models of Skoda are Laura, Octavia, and
their latest release KODIAQ.

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 COMPETITORS OF ŠKODA

With great brand image and prejudice Skoda has also many competitors
in its stream. Skoda specializes in cars of mid-range to luxurious sedans.
With Soda there are also others brands and companies producing and
specializing in the same product line and price range.

Some of the competitors of Skoda in the market are:

 Honda
 Toyota
 Chevrolet
 Volkswagen
 Hyundai

Most of the brands listed above produce the same quality and featured
cars like that of Skoda so they pose a direct threat to the firm but they have
s still managed to stay firm in their existence.

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