RESEARCH

METHODOLOGY
TERM PAPER

TOPIC: CONSUMER BEHAVIOUR

TOWARDS TWO-WHEELER
MOTORBIKES

SUBMITTED TO:
SUBMITTED BY: MRS.
TUSHINDERPREET VIJAY KUMAR
SHARMA (LECT. L.S.B.)
SEC. RR1901
ROLL
NO. A-18

ACKNOWLEDGEMENT

The real spirit of achieving is through the way of excellence of

austere discipline, without which I would never have succeeded in
finishing it without the co-operation, encouragement and help
provided to me by various personalities. With this deep felt
consent and pleasure, I would like to express my heartfelt
gratitude to all those who helped me in preparation of this term
paper.

It gives me immense pleasure in expressing my deepest and

sincerest gratitude towards my project guide Mrs. Tushinderpreet
(lect. of Research Methodology) and for her considerate help,
inspiring guidance throughout this work.

I shall be failing in my duty if I do not thank all the other Quality

Personals and other lect. for source of constant encouragement and
co-operation, throughout my project.

I would be defying if I do not mention my constant source of

inspiration and vitality, that is, my parents who invested their
present for my future and for their co-operation, support &
encouragement without which I could not have seen the light of
the day.

ABSTRACT

The Research is basically consumer oriented and the more emphasis is on the consumer rather
than on the product. The essence of modern marketing lies in maximizing profit along with
creating value satisfaction for the costumers. The needs and desires of the costumers have to be
coordinated with the set of products and production programs. Therefore, success of every
product depends as its ability to create a community of satisfied consumers. All the business
activities should be carried out in ways which are directed towards the satisfaction of the
consumer needs. Consumer behavior is affected by many variables ranging from personal
needs, professional needs, attitudes and values, personality characteristics, social economic
and cultural background, age, gender, professional status to social influences of various
kinds exerted a family, friends, colleagues, and society as a whole. The combination of these
factors help the consumer in decision making further Psychological factors that as individual
consumer needs, motivations, perceptions attitudes, the learning process personality
characteristics are the similarities, which operate across the different types of people and
influence their behavior.

INTRODUCTION
The two-wheeler industry in India has grown rapidly in the country since the announcement of
the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh, now
Prime Minister of India. Previously, there were only a handful of two-wheeler models available
in the country. Currently, India is the second largest producer of two-wheelers in the world.
It stands next only to China and Japan in terms of the number of two-wheelers produced and the
sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-
wheelers in India stood at around 7600801 units.
The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief
factors is poor public transport in many parts of India. Additionally, two-wheelers offer a great
deal of convenience and mobility for the Indian family. Bajaj auto began trading in imported
Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced
production of scooters in the country in the early 50’s. Until 1958, API and Enfield were the
only producers of two-wheelers in India. However, Bajaj signed a technical collaboration in
1960 with Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971. The condition of
motorcycle manufacturers was no different. Until the mid 80’s, there were only three major
motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield.

The two-wheeler market was opened to foreign manufacturers in the mid 80’s. The industry,
which had seen a smooth ride before, faced fierce foreign competition. Motorcycle companies
like the Yamaha, Honda, and Kawasaki, set up shop in India in collaboration with various
Indian two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition
from smaller 100 cc Japanese technology motorbikes. Bikes manufactured by Hero Honda, the
only company manufacturing four-stroke bikes at that time, gained massive popularity. In
the mid 80’s, Kinetic introduced a variomatic gearless scooter in collaboration with Honda. This
scooter became instantly popular with the younger generation, especially people who found it
difficult to use geared scooters. The introduction of scooterettes created another segment for
people such as women and teenagers who could not get used to driving either motorcycles or
gearless scooters. Many companies such as Kinetc, TVS, and Hero also started manufacturing
mopeds that proved immensely popular with people who wanted a simple riding machine.

The change in the government’s policy owning to pollution control norms and the Kyoto
agreement saw the phasing out of two stroke two-wheelers from production. Currently there are
around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda,
Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha.

The latest trend in the two-wheeler market is the introduction of electrically operated
vehicles from a range of manufacturers such as Indus and Hero. These can be recharged from
convenient household electrical points. The only disadvantage is speed, which is restricted to
around 25 miles per hour. Currently, the motorcycle market is witnessing a demand for higher
volume engines. Previously, the 100 c bikes were very popular owning to the high fuel efficiency
offered. However, the market is maturing fast. Sensing this movement, Bajaj has introduced the
Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi)
technology.

An analysis of the consumer’s behavior in terms of consumer consumption patterns,

consumer preferences, consumer motivation, consumer buying process and shopping
behavior is very much helpful to formulate a firm’s marketing strategy.
So the ultimate objective of a business firm is to create a consumer who is said to be pivot
around which the entire business of a firm revolves. Thus the marketing concept is consumer
oriented and the emphasis is more on the consumer rather than on the product. The essence of
modern marketing lies in building of profit along with creating meaningful value satisfaction for
the costumers, whose needs and desires have to be coordinated with the set of products and
production programs. Therefore, marketing success an enterprise depends as its ability to create a
community of satisfied consumers. All the business activities should be carried out in ways
which are directed towards the satisfaction of the consumer needs. A consumer decision to
purchase a particular brand of motor cycle consumers result to complex interplay of consumer
variables the starting point for the company provides the decision process marketing stimuli in
shape of brand, promotion, and price and distribution strategy. The potential consumer along
with other stimuli already exciting receives the marketing stimuli in the environment. The stimuli
is social economic, cultural, technological and political in nature.

MAJOR FACTORS INFLUENCING BUYING BEHAVIOR

Consumer behavior is affected by number of variables ranging from personal, professional

needs, attitudes and values, personality characteristics, social economic and cultural background,
age, gender, professional status to social influences of various kinds exerted a family, friends,
colleagues, and society as a whole. The combination of these factors help the consumer in
decision making further Psychological factors that as individual consumer needs, motivations,
perceptions attitudes, the learning process personality characteristics are the similarities, which
operate across the different types of people and influence their behavior.
There are four major factors which influences on the buying behavior of consumer.
1. Cultural factors
2. Social factors
3. Personal factors
4. Psychological factors

1. Cultural factors: Consumer behavior cultural can be defined as the some total of
learned belief, values and customs that serve to guide and direct the consumer behavior
of all members of that society.
Cultural is a learned through the following three ways:-
1. Formal learning
2. Informal learning
3. Technical learning.
Cultural is a most fundamental determinant person’s wants and behavior, the growing
child acquires a set of values, perceptions, preferences and behavior, through his family
and key institutions.

2. Social factors: Consumer behavior is also influenced by such social factors as

reference groups, family and social roles and status.

3. Personal Factors: Buyer’s decisions are also influenced by personal characteristics,

the buyers’ age, life cycle stages, occupation, economic circumstances, lifestyle and
personality and self-concept.

Psychological Factors: Abraham Mallows’ needs can be ranked in order of importance

from the low biological needs to the higher levels of psychological needs. MASLOW’S
hierarchy of human needs make us understand consumer motivation. It is useful for the marketer
who can identify what generic level need this brand is capable fulfilling and accordingly position
his brand up with relevant marketing inputs. Brands such as food and clothes are bought to fulfill
psychological needs.

OBJECTIVES OF THE STUDY

1) To study the behavioral factors of consumers in motor bikes.

2) To analyze the impact of behavioral factors of consumers on choosing particular brand of
motor bike.
3) To suggest various factors to improve sales.
4) To study the consumers’ opinion of their motor bikes regarding its features like
appearance, mileage, price etc.

RESEARCH METHODOLOGY
Source of Data:

Primary Data:
The primary data collected through questionnaires administered to a sample of 50 consumers
selected from Lovely Professional University.

Secondary Data:
Secondary data was collected through various publications of newspapers, magazines, books and
journals, websites of Hero Honda, Bajaj and TVS bikes.

Sample Design:
A total of 50 consumers were selected from the University Campus for this study to analyze the
consumer’s behavior with reference to select motor bikes i.e., Hero Honda, Bajaj, and TVS bike

REVIEW OF LITRATURE
G. JHON (2005), has published in his study that hero Honda bikes has increased customer
satisfaction through bike improvements and new product introductions. Among vehicles
segments small car owners have greater satisfaction with their original bike compare to those in
other segment, however the average kilometer driven on a small vehicle are nearly 10% less than
the industry average. Many individual companies and some industries monitor customer
satisfaction on a continual basis.

K. BOWON et al. (2003), discussed in their article that “socio marketing: strengthening
company-customer bond that optimizing customer retention using CRM linked with social
cause-related marketing. Establishing a socially responsible synergy between company and
customer-company and customer is targeted to managers seeking creative and innovative
approaches that strengthen the value equation. The discussion focuses on the progression of
CRM from early links to basic database information to its current complex form whereby
customer may outsourced if they do not meet loyalty and mutual value parameters. A ten
question testing CRM strategy is included along with the steps required for adding SCRM to
company-customer relationships.

W. GIANFRANCO et al. (2008) concluded in their article that satisfying different groups IS
outsourcing a Korean IS company’s experience: it is important for a service company to fully
take into account the differences in customers in the client company. There are project directors
who interface with and accept the final product (i.e. IT Systems) from the IS company, users
who actually use the IT systems for their daily use and finally operators who do maintenance
works for the IT systems.

M. KATSIOLOUDES et al. (2008) demonstrated in their study on “customer relationship

benefits” that customers relational benefits have been identified as a driving motivation for
consumers to engage in long term relationships with service providers. Such benefits can be
expected to play a crucial role in the success of service firms when extending their business into
other countries and culture. The aim of this article is to deepen our understanding of the role of
relational benefits in developing long term relationships with consumers in a cross cultural
context. Specifically, propositions focusing on the moderating role of power distances,
individualism/collectivism, and masculinity/feminist and uncertainty avoidance for the benefits-
outcomes relationship are developed. The article concludes with a discussion of potential
implications for service firms and researcher.

S. MACAULAY et al. (1998) elaborated in their study that the objective of this study are to
explain the importance of company culture and to point to the appropriateness of customer
orientation as a method of expressing culture. The article further determines the connection
between customer satisfaction and employee satisfaction and points to possible resistance when
creating company’s culture/mission through customer orientation.

A.RUSELL et al. (2008) published critical success factors in the personal selling process. This
article identifies selling techniques that are critical success factors at sales people who sell bank
products and services in Ecuador. The study examines the selling technique of Top and bottom
sales performers in Ecuadorian banking industry. Both self reported and supervisor ratings are
used to measure salesperson performance. The results suggest that differences in performances
between top and bottom performing salesperson relate to use of five selling themes.

CHAKROBORTY.G et al. (2007) concluded in their study that the drivers that influence
customer satisfaction in a B2B context. A survey-based field study has conducted in which 1068
business customers of a manufacturer of Hydraulic and pneumatic equipment participated.
Buyers/users reported their perception about and satisfaction with a supplier product related
services. Three drivers of customer satisfaction, reliability, product related information, and
commercial aspects were identified the importance at the last two drivers differed depending on
the buyers/users primary functional area.

BOND U et al. (2003) demonstrated in their article “developing and managing effective
customer relationship research” in the area of interpersonal relationship can be employed to
assist marketers in developing strong customer relationship to gain competitive advantage or to
position themselves in the market place. The process of relationship formation, maintenance and
dissolution is used as a framework for examining key elements of successful relationship.

K. MOLINARI et al. (2008) emphasized in their article to provide4 an understanding of how

satisfaction, quality, and value affected repurchase and positive word-of-mouth in a business to
business setting most previous studies in this area apply to business to customer situations. An
exploratory pilot study was undertaken to gain a better understanding of the users and to test the
research instrument. Structural equation modeling was used tom test the constructs. The results
showing the best fit model identified a number of relationships that were unexpected.
AAKER (1997) developed a theoretical framework of the brand personality in his study that
constructed by determining the number and nature of dimensions of brand personality (sincerity,
excitement, competence, sophistication and ruggedness). To measure the five brand personality
dimensions a valid and generalized measurement scale is created. Finally theoretical and
practical implication regarding the symbolic use of brands is discussed.

Questionnaire

Name:-________________ Contact No.:-______________

Age:-__________ Occupation:-__________

Q1. Do you have motor bike?

Yes No

Q2. Which bike do you have?

Hero Honda Bajaj T.V.S Any other

Q3. Which model do you have?

If Hero Honda: - Splendor Karizma Passion Ambition other

If Bajaj: - Discover Pulsar 135 Pulsar 150 Pulsar 180 other

If T.V.S: - city sports Star city Apache 150 Apache 180 other

Q4. Usage of your bike for: -

To workplace to college

For household work & family use

Q5. What are your views regarding “COST” of your bike?

Very cheap Cheap

Expensive Very Expensive

Q6. Where do you get your Bike Serviced?

Company showrooms Authorized service station

Other road side mechanics

Q7. How is the availability of Spare parts?

Easily available scarcely available Not available

Q8. What factors attract you to but your Present bike?

Factors Rank – 1 Rank - 2 Rank - 3 Rank - 4 Rank - 5

Style and Look
After sale support
Mileage
Quality of the product
Price
Smooth grip and
comfort
(1. Is for Highest and 5. is for Lowest)

Q9. Are you satisfied with the cooperation of serviceman at company’s show room?

Highly satisfied Satisfied

Average Dissatisfied

Highly satisfied

Q10.Are you satisfied with the performance of your bike?

Highly satisfied Satisfied

Average Dissatisfied

Highly satisfied
Q11. What improvements and promotion you suggest to gain more sales volume as the market
share?

Improvement in Advertisement Exchange Offer Schemes

Cost Reduction Gift Schemes

Improvement in After Sales Services

Q12. Give your suggestions in serving you better?

Signature: ______________ Thanks for filling this in.

Statistics

do_u_have_mot which_bike_do_ usage_of_ur_bik views_regarding avilability_of_spa

age orbike u_have e _cost_of_bike reparts style

N Valid 50 50 37 37 37 37

Missing 0 0 13 13 13 13

Mean 22.0000 1.2600 1.9189 2.2162 1.9459 1.1622

Median 22.0000 1.0000 2.0000 2.0000 2.0000 1.0000

Std. Deviation 1.82946 .44309 .89376 .67227 .52419 .44181

Range 8.00 1.00 3.00 2.00 2.00 2.00

 Age

Cumulative
Frequency Percent Valid Percent Percent

Valid 18.00 1 2.0 2.0 2.0

19.00 4 8.0 8.0 10.0

20.00 5 10.0 10.0 20.0

21.00 10 20.0 20.0 40.0

22.00 10 20.0 20.0 60.0

23.00 10 20.0 20.0 80.0

24.00 5 10.0 10.0 90.0

25.00 4 8.0 8.0 98.0

26.00 1 2.0 2.0 100.0

Total 50 100.0 100.0

do_u_have_motorbike

Cumulative
Frequency Percent Valid Percent Percent

Valid yes 37 74.0 74.0 74.0

no 13 26.0 26.0 100.0

Total 50 100.0 100.0

74% of respondents have bike.

 which_bike_do_u_have

Cumulative
Frequency Percent Valid Percent Percent

Valid hero honda 14 28.0 37.8 37.8

bajaj 14 28.0 37.8 75.7

tvs 7 14.0 18.9 94.6

any other 2 4.0 5.4 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

Hero Honda and Bajaj have equal 37.8% owners. People like these company most.

usage_of_ur_bike

Cumulative
Frequency Percent Valid Percent Percent

Valid to workplace 5 10.0 13.5 13.5

to college 19 38.0 51.4 64.9

to family use 13 26.0 35.1 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

51.4% respondent use bike for college purpose. Most bike users are youth.
 views_regarding_cost_of_bike

Cumulative
Frequency Percent Valid Percent Percent

Valid very cheap 6 12.0 16.2 16.2

cheap 27 54.0 73.0 89.2

expensive 4 8.0 10.8 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

73% respondent think their bikes prices are cheap.

avilability_of_spareparts

Cumulative
Frequency Percent Valid Percent Percent

Valid easily aqvailable 32 64.0 86.5 86.5

scarcely available 4 8.0 10.8 97.3

not available 1 2.0 2.7 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

86.5% respondent say spare parts of these companies are easily available.
 style_look

Cumulative
Frequency Percent Valid Percent Percent

Valid 1.00 2 4.0 5.4 5.4

2.00 10 20.0 27.0 32.4

3.00 19 38.0 51.4 83.8

4.00 6 12.0 16.2 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

According to the data 51.4% respondent rank style look at third rank.

aftersales_support

Cumulative
Frequency Percent Valid Percent Percent

Valid 2.00 4 8.0 10.8 10.8

3.00 13 26.0 35.1 45.9

4.00 15 30.0 40.5 86.5

5.00 4 8.0 10.8 97.3

6.00 1 2.0 2.7 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

75.65 respondent rank after sales support at third and fourth rank.
 mileage

Cumulative
Frequency Percent Valid Percent Percent

Valid 1.00 19 38.0 51.4 51.4

2.00 16 32.0 43.2 94.6

3.00 2 4.0 5.4 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

94.6% respondents rank mileage at first & second rank.

quality_of_product

Cumulative
Frequency Percent Valid Percent Percent

Valid 1.00 4 8.0 10.8 10.8

2.00 1 2.0 2.7 13.5

3.00 8 16.0 21.6 35.1

4.00 9 18.0 24.3 59.5

5.00 10 20.0 27.0 86.5

6.00 5 10.0 13.5 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

Major respondents rank quality of product at third, fourth and fifth rank.
 price

Cumulative
Frequency Percent Valid Percent Percent

Valid 1.00 13 26.0 35.1 35.1

2.00 10 20.0 27.0 62.2

4.00 2 4.0 5.4 67.6

5.00 12 24.0 32.4 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

62% respondents rank price at first & second position.

Comfort

Cumulative
Frequency Percent Valid Percent Percent

Valid 1.00 1 2.0 2.7 2.7

4.00 6 12.0 16.2 18.9

5.00 8 16.0 21.6 40.5

6.00 22 44.0 59.5 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

Respondents rank comfort at sixth rank.

 satisfaction_level_showroom

Cumulative
Frequency Percent Valid Percent Percent

Valid highly satisfied 25 50.0 67.6 67.6

satisfied 11 22.0 29.7 97.3

dissatisfied 1 2.0 2.7 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

97.3% respondent are either highly satisfied or satisfied with the showroom
facilities.

satisfaction_from_performance_of_bike

Cumulative
Frequency Percent Valid Percent Percent

Valid highly satisfied 18 36.0 48.6 48.6

satisfied 17 34.0 45.9 94.6

average 2 4.0 5.4 100.0

Total 37 74.0 100.0

Missing System 13 26.0

Total 50 100.0

94% of respondents are either satisfied or highly satisfied with the bike
performance.
Bibliography