SUBMITTED BY: GAURAV PRATEEK KHANNA REG. NO: 11011109 COURSE : MBA
LITERATURE REVIEW
Joseph (2012) examined that automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. The likely capacity and production of the automotive sector for the period 200712, with an indication of the perspective for 10 to 15 years is expected that the automotive industry will grow quite rapidly in the next 10 years and is expected to reach production volumes of almost 3 million passenger cars and more than 30 million two wheelers. Mitra, Kushan (2011) conducted that recent price increase of petrol and diesel and its impact for car buyers in India. The price increase affects users of bikes which have petrol engines more than the middle class man who drives the diesel-variant of the Maruti Swift. Moreover, it notes that the move will also affect small and medium size scale manufacturing firms which routinely use diesel to operate their factories. Rising fuel prices will eventually pinch the wallets of all car and motorcycle drivers. But an absurd subsidy on diesel is skewing the Indian car market
Chidambaram and Alfread (2007) examined that there are certain factors which influence the brand preferences of the customers. Within this framework, the study reveals that customers give more importance to fuel efficiency than other factors. They believe that the brand name tells them something about product quality, utility, technology and they prefer to purchase the passenger cars which offer high fuel efficiency, good quality, technology, durability and reasonable price. Mandeep and Sandhu (2006) conducted that study covers the owners of passenger cars living in the major cities of the State of Punjab and the Union Territory of Chandigarh. The respondents perceive that safety and comfort are the most important features of the passenger car followed by luxuriousness. So the manufacturers must design the product giving maximum weightage to these factors.utility, technology and they prefer to purchase the passenger cars which offer high fuel efficiency, good quality, technology, durability and reasonable price.
OBJECTIVE OF STUDY
The purpose of this research is to study the behaviour of consumers, their importance in the aspects of life style, perception of product attributes and level of satisfaction. Hence, the study is aimed at the following objectives. To evaluate car owners perception and behaviour pertaining to the purchase and use of cars. To identify and analyze the factors influencing the purchase of cars.
SAMPLING SIZE:
Sample taken among them are 100 respondents
36-50
51 and above.
BELOW 18 0%
INTERPRETATION: The above data shows age of respondents. Mostly the age group of 26-35 are more into purchasing luxury cars.
Occupation
Service Business Student Housewife
OCCUPATION
SERVICE BUSINESS 0% 16% 11% STUDENT HOUSEWIFE
73%
INTERPRETATION: The above data shows occupation of respondents. 73 % respondents are from business class and 11 % from services.
Section II According to you which of these Factors are Affecting Car Purchasing Decision.
Price Of The Car.
PRICE OF THE CAR
STRONGLY AGREE AGREE 5% NEUTRAL 2% 2% 1% DISAGREE STRONGLY DISAGREE
90%
INTERPRETATION: This data shows that 90% respondent agreed that price factor affects the purchasing decision of the car as price plays an important role and only 2% disagreed that price factor does not affect the purchasing decision of the car.
80%
INTERPRETATION: This data shows that 80% respondent agreed that suggestion from family members affects the purchasing decision of the car and only 3% disagreed that price factor does not affect the purchasing decision of the car. It shows this is important factor while purchasing the car.
Family Needs
FAMILY NEEDS
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
5%
4%
10%
21%
60%
strongly agreed that family needs affects the purchasing decision of the car and 10% disagreed that family needs does not affect the purchasing decision of the car. It depends according to family needs .Every person have different criteria to consider this factor.
Status Symbol
STATUS SYMBOL
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
2%
10% 18%
0%
70%
INTERPRETATION: This data shows that 70% respondent strongly agreed that status symbol affects the purchasing decision of the car and 10% respondent does not consider the status symbol while purchasing the car. Most of the person consider this factor while car purchasing to show the status in the society.
Brand Name
BRAND NAME
STRONGLY AGREE AGREE NEUTRAL
2% 2% 15% 0%
DISAGREE
STRONGLY DISAGREE
81%
INTERPRETATION: This data shows that 81% respondent strongly agreed that brand name affects the purchasing decision of the car and 2 % respondent disagreed that the brand name factor does not affect the purchasing decision of the car. Most of the person considers this factor while car purchase to enhance their status in the society.
Income Level
INCOME LEVEL
STRONGLY AGREE AGREE NEUTRAL
3% 2% 0%
DISAGREE
STRONGLY DISAGREE
27%
68%
INTERPRETATION: This data shows that 68% respondent strongly agreed that income level affects the purchasing decision of the car and 2 % respondent disagreed that the income level factor does not affect the purchasing decision of the car. This is the important factor that affect the car purchasing decision . Every person buy the car according to their income level.
Festival seasons/Offers
FESTIVAL SEASONS/OFFERS
STRONGLY AGREE AGREE 4% 2% NEUTRAL 3% DISAGREE STRONGLY DISAGREE
22%
69%
INTERPRETATION: This data shows that 69% respondent strongly agreed that festival seasons /offers affects the purchasing decision of the car and 23 % respondent disagreed that the festival seasons/offers factor does not affect the purchasing decision of the car. Most of the customer prefer to buy car during the festival seasons and special offers.
17% 0% 2% 81% 0% 2%
INTERPRETATION: This data shows that 81% respondent strongly agreed that GOVERNMENT POLICIES AND REGULATIONS affects the purchasing decision of the car and 2 % respondent disagreed that it does not affect the purchasing decision of the car. The middle class families always consider this factor while taking car purchasing decision.
94%
INTERPRETATION: This data shows that 94% respondent strongly agreed that after sales services affects the purchasing decision of the car .Mostly customer consider the after sales services to taking car purchasing decision .This is the important factor
0% 4% 2%2%
92%
INTERPRETATION: This data shows that 92% respondent strongly agreed that installment payment facilities plays a vital role while purchasing a car.
83%
INTERPRETATION: This data shows that 83 % respondent strongly agreed that information provided by salespersons affects the purchasing decision of the car. This is the factor that affects car purchasing decision.
98%
INTERPRETATION: This data shows that 98% respondent strongly agreed that availability of spare parts affects the purchasing decision of the car. After sales Services important factor while taking decision to buy the car.
DISAGREE
STRONGLY DISAGREE
93%
INTERPRETATION: This data shows that 93% respondent strongly agreed that availability of service station affects the purchasing decision of the car. This is the factor that affects car purchasing decision. After Services important factor while taking decision to buy the car. Every person consider this factor because after sales services play important role to maintain the brand identity in the market.
FINDINGS
Factors that influence purchasing decisions: When purchasing anything other than a fast moving consumer item, the process should never be a case of simply picking up an item and paying for it, as it is likely that you will have problems with a purchase at sometime. When deciding whether to purchase a product or not there are many factors to consider, such as; Price of the car Family needs
Brand name
Income level
Government policies and regulations Import duties imposed by government Advertisement and promotion
CONCLUSION
The study was conducted to identify the factors that are affecting car purchasing decision. Consumer behaviour refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behaviour. After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume. Consumer behaviour is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.
REFERENCES
http://en.wikipedia.org/wiki/Automotive_industry_in_India Joseph (2012) A Study on Factors Influencing Buying Behaviour of Passenger Car Market in Tuticorin District - Tamil Nadu http://papers.ssrn.com/sol3/papers Charles Kelly (2010) Factors Which Influence Customer Buying Decision http://www.articlesbase.com/customer-service-articles/153956-factors-whichinfluence-customer-buying-decision-2205347.html Chidambaram and Alfread (2007)A Study on Brand Preference of Passenger Car with Reference to Coimbatore City, Indian Journal of Marketing, Vol.34, No.9, September 2007, p.30. Mandeep Kaur and Sandhu(2006), H.S., A Study on Factors Influencing Buying Behaviour of Passenger Car Market, Paradigm, Vol. 8, No.2, July December 2006, p.69. Mitra, Kushan (2011) Subsidizing the rich Business today.Vol. 20 Issue 13, p128129,p.2. Prashant (2011) Does buying a diesel car translate into savings in the long run http://articles.economictimes.indiatimes.com/2011-07-01/news/29726379_1_petroland-diesel-diesel-prices-litre