A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE.

A Report submitted in partial fulfillment of the requirements for the award of t he degree of BACHELO OF BUSINESS ADMINISTRATION TO SOUTH GUJARAT UNIVERSITY, SURAT Submitted By: TARANG P PATIL T.Y.B.B.A. (SEM-VI) ROLL NO.-23 Under the guidance of MR.HORMAZ.D.PATEL Submitted To: THE CO-ORDINATOR THE SURAT PEOPLES CO-OP. BANK COLLEGE OF BUSINESS ADMINISTRATION UDHNA (SUART) March 2007 1

THE SURAT PEOPLES CO-OP. BANK COLLEGE OF BUSINESS ADMINISTRATION CERTIFICATE OF THE FACULTY GUIDE This is to certify that the project entitled A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE. Submitted in partial fulfi llment for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION TO SOU TH GUJURAT UNIVERSITY, SURAT is a record of bonafide research work carried out b y TARANG P PATIL under my supervision and guidance. Signature Project Guide (Prof .H.D.Patel) Signature Co-Ordinator (MRS. DAISY S.T) DECLARATION 2

I , TARANG P PATIL , here by declare that the project report entitled A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE. under the guidanc e of Prof H. D. PATEL submitted in partial fulfillment of the requirement for th e award of the degree of Bachelor of business administration to south Gujarat un iversity , Surat is my original Work - research study - carried out during 1st J anuary, 2008 to 1st March ,2008 and not submitted for any other degree/ diploma/ fellowship or other similar titles or prizes to any other institute or universi ty by any other person. Place: udhna Date: signature TARANG PATIL .P. ROLL NO. 23 ACKNOWLEDGEMENT 3

This is the pleasure movement for me to explicate my energized intelligence. Tha nks to Co-Coordinator Prof S.Z. daisy and to my guide prof. H.D.Patel from the S urat peoples co-op. bank college of business administration udhna, Surat. For acc ommodating advice during the research and help provided by them in preparation o f this report. This report is guided by their co-operation and practicable sugge stion. This study work could be finished with in the period. I got chance to rec ognize my aratitute to all staff to B.B.A. department for making available all f acilities to complete the research work. As well as to all others who extended t he precious co-operation by providing all documents and details required for thi s work. Place: - Surat Date: Roll No.:-23 TARANG P PATIL T.Y.B.B.A INDEX 4

NUMBER SUBJECT INTRODUCTUION INTRODUCTUION OF INDUSTRY HISTORY OF COMPANY CONSUMER BUYING BEHAV IOUR PAGE NO. 7 8-9 10-14 15-20 21-23 1 2 3 THEORETICAL BACKGROUND PROBLEM DEFINATION PROBLEM DEFINATION SCOPE OF STUDY OBJE CTIVES OF STUDY LIMLTATIONS OF STUDY 4

RESEACH METHODOLOGY INTRODUCTION RESEARCH DESIGN SOURCES OF DATA RESEARCH INSTR MENT SAMPLING PLAN DATA COLLECTION METHOD 24-31 5 6 7 8 9 10 DATA ANALYSIS AND INTERPRETATION TESTING OF HYPOTHESIS FINDINGS SUGGESTIONS SWOT ANALYSIS OF HERO HONDA REFERENCE MATERIAL BIBLIOGRAPHY APPENDIX 30-48 49-51 52-53 54-55 56-58 59 60-61 62-66 5

LIST OF TABLE AND GRAPH No. 1 2 3 4 5 6 7 8 9 10 11 12 Name of Tables And Graphs Age wise Classification Occupation wise Classification Income wise Classificatio n Sources of finance Analysis of Preferring Auto Mobile Sources of Purchasing Bi ke Age V/S usage of companies Bike Decision maker for purchasing Bike Feature Co nsideration when purchasing Bike Attributes of Showroom Schemes that Attract mos t Features of Purchasing Bike Page No 33 34 35 36 37 38 39 40 42 44 46 48 6

CHAPTER : 1 INTRODUCTION INTRODUCTION OF INDUSRY HISTORY OF COMPANY 7

INTRODUCTION OF INDUSTERY Throughout the centuries man has striven to expand his capabilities through the use of machine. His ever inventive mind has constantly devised ways to use tool to increase his abilities to explore the world around him. To go faster, deeper, higher and further than before. Coupled with his need to find new thrills, new adventures and new modes of transportation, the invention refinement of the moto rcycle seems an inevitable out come. It would seem that Michelangelo conceived o f the bicycle as early 14th century. And his drawing shows a remarkable resembla nce to he modern day bike. It had wheels of similar size and even pedals and cha in. Albeit without any apparent means of steering. Through never built, it was a remarkably clever design, and early bicycle makers would have done well to stud y his concepts, there have, in fact been 4 machines built based on his drawing, attesting to the viability of his design. It wasnt until 1869 that the first seri ous attempts were made to produce motor driven bicycles. These very first were p owered by steam, and driven by leather belts or as in the case of the roper stea m velocipede of 1869 by a system of levers attached to a crank on the driven whe el. In 1885 the Daimler, Europe this is consider by many as the first true motor cycle or motor bicycle, as it was the first to employ an internal combustion eng ine and was designed from the ground up to be motor powered. Designed by gottlib e Daimler it was 8

powered by an Otto cycle engine producing about horse powers. Note this design a gain employed wooden wheels and Daimler dropped the twist grip controls from his 1877 design in favor of leavers on the frame. In 1894 Hildebrand and Wolfmuller , France Worlds first production motorcycle. It came with a 1428 cc water cooled fourstroke motor producing 2.5 bhp. And speed of 25 mph. In 1898 orient-Aster, USA the American made production motorcycle was this entry built by the Metz Com pany, in Waltham, mass, it used an aster engine that was a French copy of the Me tz Company, in Waltham, mass. 9

History OF COMPANY Type Founded : Public company : January 19, 1984 Headquarters : Haryana, Indian Key People : Brijmohan lall munjal (Chairman and managing Director) Industry : Automotive 10

Produce : Motorcycle, Scooters Hero Honda Motorcycles limited is an Indian manufacturer of motorcycles and scoo ters. Hero Honda is a joint Venture that began in 1984 between the Hero Group of India and Honda From Japan. It has been the worlds biggest manufacturer of 2-whe eled motorized vehicles since 2001. When it produced 1.3 million motorbikes in a single year. Hero Hondas splendor is the largest selling motorcycle its 2 plant s are in Dharuhera and Gurgaon, both in Haryana India. It specializes in dual us e motorcycles that are low powered but very fuel efficient. 11

India has the largest number of two wheelers in the world with 41.6 million vehi cles. India has a mix of 30 percent automobiles and 70 percent two wheeler in th e country. India was the second largest two wheeler manufacturer in the world st arting in the1950s with the birth of Automobile products of India (API) that man ufactured scooters. API manufactured the lambrettas but, another company, Baja A uto Ltd. Surpassed API and remained through the turn of the century from its ass ociation with piaggio of Italy (manufactured of vespa) The license raj that exis ted between the 1940s and 1980s in India. Did not allow foreign companies to ent er the market and imports were tightly controlled. Customers in India were force d to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for s cooters. In the mid-1980s, the Indian government regulation changed and permitte d foreign companies to enter the Indian market through minority joint ventures. The two wheeler market changed with four indo-Japanese joint ventures: Hero Hond a, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign comp anies changed the Indian market dynamics from the supply demand side. With a lar ger selection of two-wheelers on the Indian market, consumer started to gain inf luence over the products they bought and raised higher customer expectations. Th e industry produced more models, styling options, price, and different fuel effi ciencies. The foreign companies new technologies helped make the products more r eliable and with better quality. Indian companies had to change to keep up with their global. 12

During the 80s, Hero Honda became the first company in India to prove that it wa s possible to drive a vehicle without polluting the roads. The company introduce d new generation motorcycles that set industry benchmarks for fuel thrift and lo w emission. A legendary Fill it - Shut it - Forget it campaign captured the im agination of commuters across India, and Hero Honda sold millions of bikes purel y on the commitment of increased mileage. Hero Honda has consistently grown at d ouble digits since inception; and today, every second motorcycle sold in the cou ntry is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda s top selling motorcycle - Splendor. This festive season, the company sold half a mill ion two wheelers in a single month-a feat unparalleled in global automotive hist ory. Hero Honda values its relationship with customers. Its unique CRM initiativ e - Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helpe d Hero Honda understand its customers and deliver value at different price point s, but has also created a loyal community of brand ambassadors. Performance vis--vis Industry The Indian two wheeler industries has seen a paradigm shift from being a regime of regulation and tight control in the 1980s to a more liberalized and a competi tive present day era. After missing out on the initial boom in two wheeler segme nt during the period of 1993-1996, Hero Honda has emerged as a world leader. The gap between motorcycles sold by Hero Honda and its closest rival is approximate ly 1 m units (23% of industry size). One of the reasons for the tremendous perfo rmance of Hero Honda is the significant increase of share of motorcycles in the two-wheeler segment, from 42% in FY99 to 77% in FY04. No doubt, that the shift i n preference of Indian populace from scooters and mopeds towards 13

motorcycles has facilitated the growth of Hero Honda. However its performance vi s--vis industry indicates that the performance of Hero Honda was better than the industry peers, barring two years. In the seven-year period ending FY04, it has achieved a CAGR of 30% in two-wheeler volumes against 11% of the industry. Excellent Collaborator Relationship: Hero Honda is now the leading two-wheeler Company in India in terms of net sales (sales less excise duty value, which was Rs 3171 crores). It is both the leadin g two wheeler manufacturer and sales operation among Honda s worldwide operation s. The Company has maintained excellent relationship with all stakeholders inclu ding its collaborators. Hero Honda has emerged as the most successful joint vent ure Company of Honda in the world, their relationship over 116 years old now. 14

CHAPTER:2 THEORITICAL BACKGROUND CONSUMER BUYING BEHAVIOUR 15

CONSUMER BUYING BEHVIOUR The main aim of marketing is meet and satisfy target customers need and wants bu yer behavior refers to the peoples or organization conduct activities and togeth er with the impact of various influence on them towards making decision on purch ase of product and service in a market. The field of consumer behavior studies h ow individuals, groups and organization select, buy, use and dispse of goods, se rvice, ideas, or experience to satisfy their needs and desires understanding con sumer behavior and knowing customer are never simple. The wealth of products and service produced in a country make our economy strong. The behavior of human be ing during the purchase is being termed as Buyer Behavior. Customer says one thing but do another. They may not be in touch with their deeper motivations. They ar e responding to influences that change their mind at the last minute. A buyer ma kes take a decision whether save or spend the money. Definition of Buyer Behavior:Buyer behavior is all psychological, Social and phys ical behaviors of potential customers as they become aware of evaluate, purchase , consume and tell others about product & service. 16

Consumer Buying Decision Process There are following five stages in consumer buying decision process. 1. Problem identification:The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Mark eters need to identify the circumstances that trigger a particular need. By gath ering information from a number of consumers, Marketers can identify the most fr equent stimuli that spark an interest in a product category. They can then devel op marketing strategies that trigger consumer interest. 2. Information Search:The consumer tries to collect information regarding variou s products/service. Through gathering information, the consumer learns about com pleting brands and their features. Information may be collected form magazines, catalogues, retailers, friends, family members, business association, commercial , chamber of commerce, telephone directory, tradefair etc. Marketers should find out the source of information and their relative degree of importance to the co nsumes. Personal Sources: Family, friends, neighbor, as quittances. Commercial Source: A dvertising, sales persons, dealers, packaging, displays. Public sources: mass media, consumer, rating organizations. Experimental sources: Handling. Examine, using the product. 17

3. Evaluation of alternative:There is no single process used by all consumers by one consumer in all buying s ituations. There is several First, the consumer processes, some basic concepts a re: First, the consumer is trying to satisfy need. Second, the consumer is looki ng for certain benefits from the product solutions. The marketer must know which criteria the consumer will use in the purchase decision. 4 . Choice of purchasing decision:From among the purchase of alternatives the consumer makes the solution. It may be to buy or not to buy. If the decision is to buy. The other additional decisio ns are: Which types of bike he must buy? From whom to buy a bike? How the paymen t to be made? And so on. The marketer up to this stage has tried every means to influence the purchase behavior, but the choice is properly consumers. In the ev aluation stage the consumer forms preferences among the brands in the choice set . The consumer may also form an intention to but the most preferred brand. 18

5. Post Purchase Behavior:After purchase the product, the consumer will experien ce the same level of product. The Marketers job not end when the product is buyin g must monitor post-purchase satisfaction, post-purchase action, post-purchase u se and disposal Post Purchase Satisfaction:The buyer, S satisfaction is a function Of closeness between the buyer, S expectation and the products Perceiver performance. The lar ger the gap between expectation and performance, the g greater the consumer diss atisfaction. Post purchase Action:The Consumer, S satisfaction or dissatisfaction with the pr oduct influence subsequent behavior. If the consumer satisfied, he or she will e xhibit a higher probability of purchasing the product again. Dissatisfaction con sumer may abandon and return the product. Post-Purchase Use or Disposal:The marketer should also monitor new buyers use an d dispose of the product. If the consumer store the product in a close, the prod uct is probably not very satisfying. If the consumer throws the product away, th e marketer needs to know how they dispose of it; especially it can be hurt the e nvironment. 19

Characteristic of Buyer Behaviors The chief characteristics of the buyers behaviors are as follow:(1) It consists of mental and physical activities which consumers undertake to g et goods and services and obtain satisfaction from them. (2) It includes both ob servable activities such as walking through the market to examine merchandise an d making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands. (3) Consumer beh aviors are very complex and dynamic to constantly changing. And therefore, manag ement need to adjust with the change otherwise market may be lot. (4) The indivi duals specific behaviors in the market place is affected by internal factor, suc h as need , motives, perception, and attitudes, as well as by external of enviou rmenatal influences such as the family social groups, culture, economics and bus iness influences. 20

CHAPTER:3 PROBLEM DEFINATION PROBLEM DEFINATION OBJECTIVE OF STUDY LIMITATIONS OF STUDY 21

PROBLEM DEFINATION To know the best consumer buying behavior and demand into the minds of consumer of Surat city because always consumer say something and does something. There ar e many companies manufacturing motorcycles into the market, at the same time as there are many companies manufacturing motorcycles, idea about thinking of custo mer on whether, what, how, and for whom to purchase the motorcycle. Therefore, r esearch is required to measure present consumer buying behavior at the purchase of Hero Honda bike. so the researcher problem is to identify what are the criter ia that prospective customer takes into consideration before buying the motorcyc les. SCOPE OF STUDY The main scope of the study is limited to Surat city. It also analysis the benef its accruing to the company as a result of those service. This study has been ma de to find the level of satisfaction the customer has regarding the service prov ider by bike place. 22

OBJECTIVES OF STUDY To know market position of Hero Honda bike in the market. ior for purchase of two wheeler bike. Limitations of study When the buyers are busy we cant get accurate data from them.

To know consumer behav

According to the time limit of our project we can cover only the some area. ng survey some respondents may not give answer in a proper manner. 23

Duri

CHAPTER:-4 RESEARCH METHDOLOGY INTRODUCTION RSEARCH DESIGN SOURCES OF DATA SAMPLING PLAN DATA COLLECTION METHOD RESERCH METHODOLOGY 24

(A)Introduction Marketing research is the function which links the consumer, customer and public to the marketers through information used to identify and define marketing, opp ortunities and problems, generates refine marketing action; monitor marketing pe rformance; and improve understanding of marketing as a process. Marketing resear ch specifies the information required to address these issues; designs the metho d for collection information manages and implements the data collection process; analysis the results and communication the findings and their implication. Research definition: Research is careful inquiry or examination to discover new information and relati onship and to expand and to verify exiting knowledge, Research always starts with questions or a problem. Its purpose is to find answer to questions through the application of the scientific method. It is a systematic and intensive study dir ected towards a more complete knowledge of the subject studies. (B) Research design 25

Research design is the plan, structure and strategy of investigation conceived so as to obtain answer to research question and to control variance. - BY KERLINGER From definition it is evident that research design is ore or less a blueprint o f research. At the outset may be noted that there are several ways of studying a nd tackling a problem. There is no signal perfect design. The research design ca n be classified in to true broad categories: (A) Exploratory (B) Descriptive (C) Casual Exploratory research is focus on the discovery of ideas. Exploratory res earch is carried out to define problems and developed hypothesis to test later. An exploratory study is generally based on the secondary data that are reading a vailable. It does not have to change his focus of direction, depending on the av ailability of new ideas and relationship among variables. Descriptive studies ar e undertaken in many circumstances. Descriptive studies can be complex, determin ing a high degree of scientific skill on the part of the researcher. Casual rese arch helps in determined cause and effect relationship. Between two or more vari ables. The present study seeks to find out the consumers attitude towards buying of bik e. The study also aims at findings out the 26

drawbacks of the marketing set up of Hero Honda PVT. LTD. So this makes the stud y a descriptive one. (D) Sources of Data The sources of data collection methods are as follows. a) Primary data:The primary data is that which details we collect first time from the market and also used first time in the research. We also say that the information is first time in the research decision. To collect the primary data questionnaire is pre pared structure nondisguise questionnaire is prepared. b) Secondary data:Secondary data are those data which are already collected by someone for some pu rpose and are available for the present study; secondary data are already collec ted by the companys records and other librarys books. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire. (E) Data Collection Method 27

Researcher instruments is the tool by which the researcher can do research on sp ecific problems or objective. The most popular researcher instrument for collect ion data is Questionnaire for a particular investigation. It is simple for a moile d set of questions presented to respondents for their answers. Due to this flexi bility, it is most common instrument used to collect the primary data. During th e pre- testing of questionnaire, I seen the reaction of respondents and suggesti ons required to make change in research instrument. The questionnaire contains t hree types of questions. Open-ended question:It is helpful in knowing what is uppermost in the mind of th e respondents. It gives complete freedom to the respondent.

Dichotomous questions :It has only two answers in form yes or n, true or false, us ot use. So the respondent is offered two or more choice.

Multiple-choice question:In this, the respondent is offered two or more choice. (F) Sampling plan 28

Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose. (A) sample Site:The survey was conducted in SURAT CITY. (B)Sampling Unit:It means Who is to be surveyed. Here target popula tion is decided and it is who are interested to purchase Bike and sampling frame i s developed so that every one in the target population has known chance of being sampled. So the survey is conducted particularly in Surat City. (C)Sample size: For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more accurate result about buying behavior of bike. The sample size is 100 respondents. Statically Formula for Sample Size is:n=p*q (z/e) 2 29

Were, n=Sample Size p=0.80(probability of satisfied customer) q=0.20(I-p) z=1.96 (The z (95%) score associated with the degree of Confidence) e=0.05 (tolerable e rror) n= (0.84)*(016)*(1.96/0.05)2 = (0.1344)*(1536.64) =206.52 Sample Size n=20 6.52 Here, from calculation n=206.52 is found but for the simplicity of the stud y n=206.52have taken. (D)Sampling Method:30

A Stratified random sample is one where the population is divided in to mutually exhaustive strata or sub-group and then a simple random is selected within each of strata on age groups, occupation etc. It may be noted that stratification do es not means absence of randomness. I use a simple random sampling method. 31

1. AGE WISE CLASSIFICTION Age (in year) 18-20 No. of respondents 30 32 Percentage (%) 30

21-25 26-30 31-35 36-40 41& above Total 37 15 06 07 05 100 Age wise Classification 37 15 06 07 05 100 7, 7% 6, 6% 5, 5% 30, 30% 18-20 21-25 26-30 31-35 36-40 41& above 37, 37% 15, 15% (Sources: Questionnaire-personal Detail) Comment:Above Graph shows are 30% of re spondent in age group of 18-20, 37%of respondent in age group of 21-25, 15% of r espondent in age group of 26-30, 7% and 5% respondent are come in 36-40 and 41&a bove. 2. OCCUPATION WISE CLASSIFICATION 33

Occupation Servicemen Student Business Profession Others Total No. of respondents 47 30 12 08 03 100 Percentage (%) 47 30 12 08 03 100 Occupation Wise Classification No. of Respondents 100 80 60 40 20 0 m en en t ne s si on St ud O th er s s No. of respondents Percentage (%) rv ic e Se Occupation (Sources: Questionnaire-personal detail) Comment:Above Chart Shows that 47 respo ndent are Servicemen out of 100 and 30 are the students. 12 respondents are busi nessman. 3. INCOME WISE CLASSIFICATION 34 Pr of es B us i

Income Level <= 5000 5000-10,000 10,000-15,000 15,000-20,000 20,000 Above Total No. of respondents 54 25 11 07 03 100 Income Wise Classification Percentage (%) 54 25 11 07 03 100 7, 7% 11, 11% 3, 3% 5000 5000-10,000 10,000-15,000 54, 54% 15,000-20,000 20,000 Above 25, 25% (Sources: - Questionnaire Personal Detail) Comment:Above graph shows that 54% of respondents are income in <=5000 income level, Second 25% of respondents are of 500010,000 income level. 11% of respondents are of 10,000-15,000, 7% of respond ents are of 15,000-20,000 and remain 3% of respondents above 20,000 of income le vel. 4. SOURCES OF FINANCE 35

Sources of Finance By cash By Loan Total No. of respondents 45 55 100 Percentage (%) 45 55 100 55 60 50 40 30 20 10 0 By cash By Loan 45 45 55 No. of respondents Percentage (% ) (Sources: - QuestionnaireQue.8) Comment:Above Graph shows that 55 people purchase Hero Honda Bike For by Loan and 45 people purchase Hero Honda Bike from Cash. 5. ANALYSIS OF PREFERING AUTO MOBILE 36

Auto Mobiles Shivani Dhru Siddhi Other Total No. of respondents 20 17 11 52 100 Percentage (%) 20 17 11 52 100 No. of respondents Shivani 20% Other 52% Dhru 17% Siddhi 11% (Sources: - Questionnaire Que.7) Comment:Above Chart shows that out of 100, 52 % respondents prefer other Automobile to purchase bike. 20 % respondents prefer s hivani Automobile to purchase bike. 6. FROM WHICH SOURCE YOU PURCHSE BIKE? 37

Sources News Paper T.V.Advertisement Friends Others Total No. of respondents 12 14 26 48 100 Percentage (%) 12 14 26 48 100 No. of respondents News Paper, 12 T.V.Advertiseme nt, 14 Others, 48 Friends, 26 (Sources: - Questionnaire Que.3) Comment:Above graph shows that 48 % respondents are come to know from the other. Then 26 % respondents are come to know from the f riends. 14 % & 12 % respondents are come to know from the T.V.Advertisement & new s paper. 7 AGE V/S USAGE OF COMPANIES MOTORCYCLE Age (in year) 18-20 21-25 Hero Honda 15 23 Bajaj 05 06 TVS 03 03 38 Yamaha 02 03 Honda 05 02 Total 30 37

26-30 31-35 36-40 41& above Total 09 02 01 01 51 02 00 2 01 16 01 01 02 00 10 03 01 01 02 12 00 02 01 01 11 15 06 07 05 100 Age V/S Of Companies Motorcycles 25 No. Of Respondents 20 18-20 15 21-25 26-30 31-35 36-40 41& above 5 10 0 Hero Honda Bajaj TVS Yamaha Honda (Sources: - Questionnaire personal detail) Comment: Above Charts shows that 51 r espondents are use Hero Honda Companys Motorcycle. And 16 respondents are using B ajaj bikes. 4. Who is decision maker for purchasing bike in your family? Sources Father Self Mother Others Total No. of respondents 46 42 10 02 100 39 Percentage (%) 46 42 10 02 100

Decision maker for purchasing bike 50 40 30 20 10 0 Father Self Mother 10 10 2 2 46 46 42 42 No. of respondents Percentage (%) Percentage (%) No. of respondents Others (Sources: - Questionnaire personal detail & Que-4) Comment:Above Graph shows tha t 46 % respondents take decision by father for purchasing bike. And 42 % respond ents are take decision by self for purchasing bike. 5. WHAT FEATURES YOU CONSIDERS WHEN YOU PURCHASE BIKE PLEASE GIVES THE RANK. 40

Weightage Attributes Price Less maintenance Style Durability Mileage Easy Drivin g Brand Reputation Color Pick up Total 6 Excellent 30 18 21 10 24 20 17 28 19 187 5 Very Good 20 11 18 17 19 12 19 19 22 157 4 Good 18 17 19 16 14 21 14 18 15 152 3 Averag e 16 30 10 24 17 23 21 13 20 174 2 Poor 10 13 11 21 09 10 17 10 14 115 1 Very Poor 06 11 21 12 17 14 12 12 10 115 Total 100 100 100 100 100 100 100 100 100 900 Total score 426 358 355 335 381 367 362 406 382 3370 Attributes Price Less maintenance Style Durability Mileage Easy Driving Brand Re putation Color 41 Weightage 426 358 355 335 381 367 362 406

Pick up Total 382 3370 Feature of purchasing Bike 11% 12% 12% 11% Price Less maintenance Style Durability Mileage 11% 10% 11% 11% Easy Driving Brand Reputation Color Pick up 11% (Sources: - Questionnaire personal detail & Que-5) Comment:Above chart show that more no of respondents are give more weightage to the price. 6. RATE THE FOLLOWING ATTRIBUTES OF SHOW ROOM Attributes Available After Service Knowledge Of Sales man Service Infrastructure Total Excellent Very Good 30 24 16 35 20 21 25 12 103 18 29 127 42 Good 18 24 23 27 20 112 Average 16 15 20 19 17 87 Poor 12 10 16 11 22 71 Total 100 100 100 100 100 500

Attribute of show room 100 90 80 70 60 50 40 30 20 10 0 Available After Service Knowledge Of Sales man Service 30 16 24 35 21 20 18 29 25 12 Infrastructure 18 24 23 27 12 16 10 15 20 16 11 19 17 20 Poor Average Good Very Good Excellent 22 no of respondents (Sources: - Questionnaire personal detail & Que-6) Comment:43

Above chart shows that 30 respondents out of 100 are available who give Weight a ge on the excellent and second 35 respondents out of 100 are after service who g ives Weight age on Attributes Excellent Very Good 43 21 Good Average Poor Total Festival 12 14 10 100 Offer Exchange 15 31 29 12 13 100 Offer Special Gift 20 19 30 20 11 100 Cash 11 21 19 34 15 100 Discount Anniversary 14 13 12 20 41 100 Of fer Total 103 105 102 100 90 500 the Very Good, 23 respondents are Knowledge of salesman who give Weight age on the good, 27 respondents are service who give We ight age on the good, 29 respondents are Infrastructure who gives Weight age on the Very Good. 9. RATE THE FOLLOWING SCHEMES THAT ATTRACT YOU MOST. 44

Anniversary Offer Cash Discount Poor Average Good Very Good Excellent Special Gift Exchange Offer Festival Offer 0 20 40 60 80 100 (Sources: - Questionnaire personal detail & Que-9) 45

Comment:Above graph shows that in festival offer 43 respondents out of 100 are g ive a excellent, then in exchange offer 31 respondents out of 100 are give a ver y good rank, in special gift 30 respondents are give a good rank, in cash discou nt 34 respondents are give a average rank 10. RATE THE FOLLOWING FEATURE YOU HAVE PURCHASE HERO HONDA BIKE Attributes Mileage Available Price After Service Pick up Style Color Average Tot al Excellent 31 14 16 20 21 18 20 27 167 Very Good 26 25 22 31 36 25 24 24 213 G ood 15 32 42 25 17 15 26 20 192 Average 18 16 11 14 15 26 10 15 125 Poor 10 13 0 9 10 11 16 20 14 103 Total 100 100 100 100 100 100 100 100 800 46

Average Color Style Pick up After Service Price Available Mileage 0 20 18 27 24 25 24 26 15 36 31 22 25 32 26 20 10 26 17 25 42 15 14 20 16 Excellent Very Good Good Average Poor 21 20 16 14 31 15 14 11 16 11 10 9 13 10 15 18 20 40 60 80 100 (Sources: - Questionnaire personal detail & Que-10) Comment:Above graph show tha t respondents give more weightage to the price then after they give more weighta ge to the mileage before purchasing motorcycle. 47

CHAPTER: 6 TESTING OF HYPOTHESIS 48

TESTING OF HYPOTHESIS A hypothesis is a proposition, which the researcher wants to verify. It is tall test and my null hypotheses are, H0: P = 0.40 H1: P 0.40 With reference to favor able market of Hero Honda Bike. Now to verify this hypothesis I have taken signi ficantlevel of 1 %. It means in the long run risk of making the wrong decision i s I out of every 100. Since the sample size is more than 30 the use of Z test is most applicable. Now, P = Probability of Hero Honda is given best by consumer. Q = Probability of other company bike is given best by consumer. X = Hero Honda bike is purchased by consumer. N = Total no. of Respondents. P = x/n =51/100 =0. 51 q =1-p i.e. 0.49 Z calculation = pq 49

_______ _______ PQ _______ 100 = 0.51- 0.40 __________ __________ 0.49*0.4 _____ ___ 100 = 0.11 ________ ________ 0.00196 0.11 _______ 0.04427 = = 2.48 = 2.48 < 2.56 So, How may accepted at 1 % level of significance. It may b e concluded that 40 % of consumer go for other company bike and 60 % go for Hero Honda bike. 50

CHAPTER: 7 FINDINGS 51

Findings The study shows that 51 respondents are using Hero Honda. The current trend is t hat respondents give maximum no of point to price and mileage. The study show th at 48 respondents are come to know from others and 26 respondents are come to know from friends about Hero Honda bike. The study shows that 55 respondents are purch ase Hero Honda bike by Loan and 45 respondents are purchase Hero Honda bike by c ash. The study shows that 31 respondents are give point to mileage. The study sh ows that more no. of respondents gives more weightage to price. The more no. of serviceman, Students, Businessmen, and others give more weightage to the price w hen Professionals give more weightage to the mileage. The study shows that 46 re spondents are father take a decision to purchase bike And 42 respondents are sel f take a decision to purchase bike. The study shows that 30 respondents are give rank to available in show rooms and 35 respondents are give rank to after servi ce. The study shows that 43 respondents are giving excellent to festival offer a nd 41 respondents are give poor rank to the anniversary offer. The study shows t hat 45 respondents are purchase Hero Honda bike whose salary is below 5000 incom e. 52

53

SUGGESTIONS 1. Hero Honda should introduce a low price moped 2. For the promotion, company show make road-show that will Increase the sales. The company should give more concentrate on the advertisement. Hero Honda Company s hould implement a new strategy to reduce the competition and lead into the bike market. 3. 4. 5. As people expect more mileage per kilometer, company should increase the mile age of the hero Honda bike. 6. Hero Honda should make a sports bike like to Kawa saki Suzuki Hyabusa bikes which can run with maximum speeds. 54

SWOT Analysis OF HERO HONDA 55

SWOT Analysis Strengths Ability to understand customers needs and wants name Effective advertising capability

Recognized and established brand

Weaknesses R&D is not close to the Hero manufacturing plant Hero is vulnerable in the joint venture because Honda Motor Company has so much power 56

Opportunities Global expansion into the Caribbean and Central America Expansion of target market (include women) et Threats Become Indias leader in the scooter mark

Honda Motorcycles and Scooters India can take 57

Bajaj Motors is a strong competitor

away market share and cause joint venture to go sour

CHAPTRE: 8 REFERENCE MATERIAL BIBLOGRAPHY APPENDICES 58

59

BIBLIOGRAPHY Marketing research, G.C.Beri, Third Edition, Tata McGraw Hill Publishing Company Limited, New Delhi, 2000 Marketing management, Philip Kotler, Twelth (Millenniu m) edition, Prentice-Hall of India Private Limited, New Delhi, 2003

www.herohonda.com 60

APPENDICES QUESTIONNAIRE 61

A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE. 1 Do y ou have own bike? (a) Yes [ ]. (b) No [ ] If yes than, 2 Which company bike do you have at present? Company ____________________ 3 Whom do you refer to purchasing bike? (A) News paper (B) Friends [ ] [ ] (C) TV advertisement [ ] (D) others [ ] 4 Who is decision maker for purchasing bike in your family? (A) Father (B) Self [ ] [ ] (B) Mother (D) other [ ] [ ] 5 How you purchase bike? (A) By cash [ ] (B) By Loan [ ] 62

6 What features you considers when you purchase bike please give the rank. excelle nt Very good good Average Poor Very poor attributes price Less maintenance Style Durability Mileage Easy driving Brand re putation Color 7 Rate the following attribute of show room Attributes Available After sales Services infrastructure 1 2 3 4 5 8 From where are you purchasing___________? (A) Shivani Auto [ ] (B) Dhruv Auto [ ] (C) Shiddi Auto (D) others [ ] [ ] 63

9 Rate the following schemes that attract you most. attributes Special offer Exchange offer Special gift Cash discount 1 2 3 4 5 10 Rate the following feature you have purchase hero Honda Bike. Attribute Milea ge Available Price After service Pick up 1 2 3 4 5 11 give your suggestion. ___________________________________________________ ___ ________________________________________________ _______________________________ ____________________ CUSTOMER PERSONAL INFORMATION:A. Name: - __________________ _________________________ B. Address:-__________________________________________ _ 64

___________________________________________ ____________________________________ _______ C. phone no:-__________________________________________ D. Age (in year) :18 to 20 26 to 30 36 to 40 E. Occupation:Services [ ] Students [ ] Others [ ] F . monthly income:5000 10,000-15,000 20,000 Above [ ] [ ] [ ] 5000-10,000 15,00020,000 [ ] [ ] Businessman [ ] Professional [ ] [ ] [ ] [ ] 21 to 25 31 to 35 41 & above [ ] [ ] [ ] Sing.___________________ Date.___________________ 65