Consumer preferences of small car in india INTRODUCTION The purpose of this study is to gain a better understanding of factors that influence consumer buying behavior in cars. Specifically !e considered a number of internal factors that influence consumer behavior including perception motivation and learning. "o! a consumer#s attitude !hich is a lasting evaluation of a person ob$ect or issue can affect !hat they buy also e%amined. Revie!ed other factors that influence consumer purchasing decisions and b uying behavior including personal social and situational issues. The personal influences o n consumers are important determinants of their needs and !ants. Such factors as age income family status and chosen lifestyle are strongly related to the types of products people buy and the specific brands they select. &%amined the stages of the consumer decision'ma(ing process for buying a car) problem recognition information search evaluation of alternatives bet!een different brands of cars product choice and post purchase evaluation !ith respect to after sales service customer relationship and resale value of the car.
Struggling with your essay? We can help! *e can help get your course!or( bac( on trac( ta(e a loo( at our services to learn more about ho! !e can help. &ssay *riting Service &ssay +ar(ing Service ,lac ,lace e an Order Or der
Custom *ritten *or( -uaranteed on Time -et The -rade ou ou ordered /lso addressed the impact of of the amount of effort effort e%pended and of perceived ris(0 factors associated !ith relative importance and perceived conse1uences of the purchase from the consumer#s perspective.
2.2 The Decisional 3actors 4uyer decision processes are the decision ma(ing processes underta(en by consumers in regard to a potential mar(et transaction before during and after the purchase of a product or service.
Consumers have to ma(e different (inds of decisions everyday according to their different needs. Some of the decisions are playing critical roles in consumers# daily life for e%ample purchasing a ne! home or purchasing a car !hereas some times the decisions are made on a virtually automatic basis. There are not a lot p ublished research articles available on the decision'framing process. ,uto C. proposed a conceptual model of the buying decision framing process. This model focuses on the information search phase !hich includes t!o reference points) an initial !hich is internal to the company'e%pectations and buying ob$ectives and a final one that ta(es into account the sales message and $ustification5re!ard of the offer. These t!o stages lead to the final choice. 4urt and 4abin developed a model see 3igure...This model is in line !ith previous one but gives an emphasis on an evaluation phase in the process. This model includes five stages) problem recognition information search evaluation of alternatives purchase decisions and outcomes. 6ocational +ar(eting mi% is used to reinforce the advantages of the car carefully reflecting its core values and positioning. It confirms ho! and !hy it !ill be of interest to various segments of the car' buying public.
Influences on the Consumer ,urchase Decision ,rocess +ar(eting mi% influences •
,roduct
•
,rice
•
,romotion
•
,lace
,sychological Influences •
+otivation
•
,ersonality
•
,erception
•
6earning
•
7alues beliefs
•
6ifestyle.
8,rice# ' Reflecting the ,ositioning Strategy The company should have a clear understanding of its (ey target mar(et for e.g. 9oung people and other price'conscious car buyers: for small car segment and should design'pricing strategies to best address their needs and the positioning of the car. 8,romotion# ' Communicating ,ublicity in the form of motoring revie!s and test drives are critical to the success of a trade launch as this activity should generate sufficient consumer curiosity and interest in the ne! models. 4y getting potential car buyers to test drive a car product usage increases. This has a (noc( on effect to car sales. The primary above the lin e medium used to promote and communicate a ne! car is through advertising. The choice of T7 and outdoor advertising ma(es perfect mar(eting sense. Socio'Cultural Influences li(e the cultural influences caste setup and hierarchies se% role playing also laterally or directly influences the final decision The consumer#s behaviour is also influenced by 9other: social factors as the reference groups family social rules and statuses / buyer#s decisions are also strongly influenced by personal characteristics li(e) •
/ge and 6ife'cycle Stage
•
Occupation or ,rofession
•
&conomic Situation
•
6ifestyle
2.; Research ,urpose 2. To study ho! internal and e%ternal factors influence middle class consumers# decision' ma(ing processes for buying an entry level car. ;. To study the repurchase purchase and post purchase activities consumers engage in !hen ma(ing decisions of purchasing a ne! car. <. Understand ho! situational factors can influence consumer behaviour.
=. Describe ho! consumers# relationships !ith other people and sources influence their decision'ma(ing processes.
,rimary Ob$ective) To study the buying process and associated behaviors in entry level cars and the perception Indian brands versus -lobal brands in the minds of the Indian class conscious consumers.
Secondary Ob$ective) 2. &valuate the passenger car segment and assess visible changes that have ta(en place over the years. ;. 4uying behavior !ith respect to the passenger car segment.
2.< Scope of the Study /t the end of the study the follo!ing aspects !ould be Covered) 2. Understand ho! consumer find any visible differences in the global vs Indian brands. ;. "o! does it effect buying decisions> <. Influence of the dealers if any in the final decision ma(ing process. =. &nvironmental influence if any. ?. &%tent of availability of alternatives'CSD Second "and Cars +ar(et 'and their resultant influence of decision ma(ing process altogether
C"/,T&R ; 6IT&R/TUR& R&7I&* Understanding the automotive purchase process is crucial for automotive manufacturers and dealers. "uge amount of information available to consumers re1uire manufacturers and dealers to understand consumer decision'ma(ing and the modes of influence !hich can affect consumer ne! car purchasing. @otler et al. describes the customer buying behaviour as the buying behaviour of the final customers !ho purchase goods and services for personal consumption. / company get great advantages by understanding ho! customers respond to mar(eting stimuli that include the four ,#s) product price place and promotion.
Other stimuli in the customer#s environment such as economic technological pol itical and cultural also affect all customers# buying decision. /ll these stimuli enter the buyer#s blac( bo% !here they through the buyer decision process are turned i nto a set of buyer responses. / consumer behavior model *heel of Consumer /nalysis !as created by A. ,aul ,eter and Aerry C. Olson 92BB=: as a basis for e%plaining car buying beh avior. /ccording to the /merican +ar(eting /ssociation consumer behavior is defined as the dynamic interaction of affect and cognition behavior and environmental events by !hich human beings conduct the e%change aspects of their lives. +ar(eters can analyse consumer behavior situation according to the three elements using the *heel of Consumer /nalysis the environment behavior and affect5cognition . "o!ever because these three factors interact and influence each other no one factor can be iso lated from the other.
This essay is an example of a student's work Disclaimer This essay has been submitted to us by a student. This is not an e%ample of the !or( !ritten by our professional essay !riters. *ho !rote this essay Re1uest removal &%ample &ssays
,arenthood changes the area of responsibility !hereby parents are e%pected to use their po!er i n the interests of their infant not themselves . The children are used in literature and films to symbolise a lessening in materialistic tendencies of parents and the authors proceed to sho! that there are differences bet!een the materialism levels of parents 9lo!er: and non'parents 9higher:. +any researches have been done on the consumer buying process and associated behaviour but the study done by 7alerie S. 3ol(es 9from The University of Southern California: actually helped to discover the ne! meaning of the buying behaviour. "e concluded It is the interaction of the situation and the individual that leads to behavior. The study of consumer behavior is $ustified as a separate domain of in1uiry because !hen situational cues lead people to perceive themselves as customers they then interpret the !orld differently than !hen they do not perceive themselves as customers and that influences their behavior. / study conducted by &van "irsh Steve "edlund E +ar( Sch!eiger in ;FF2 about the perception of the brands !hich concludes that in the absence of a strong brand price is the only plausible !ay to affect near'term demand. "ence curtailing incentives in an effort to build brand is not li(ely an economically viable option.
+any manufacturers have made brand positioning and devel opment a (ey item on their mar(eting agenda. et brands are not the product of manufacturers# mar(eting efforts. Instead consumers base their understanding of an automotive brand#s value on their accumulated e%perience !ith that brand#s products. If you !ant to change the 4rand change the products G for the better. The research conducted on the buying behaviour of cars and !hat role does the brand play in it by San(ar Radha(rishnan in Aune ;FF2 !as a great help for conducting survey on the consumer behaviour for buying cars !ith relation to the perception of brands. / thought provo(ing point thro!n up by the survey !as the vie! that advertising does not have any impact on the choice of a particular brand by the prospective buyer. 4uying a ne! car often set in motion by emotional need'based factors. The study found that the more rational reasons for buying a car are fre1uently spar(ed off by the psychological benefits that o!ning a car bring. &motions also !or( throughout the purchase process right do!n to the choice of the brand. The study found that both rational and emotional factors trigger the decision to buy a car and also operate throughout the purchase process. The study drives home a point that branding is here to stay. This is especially true of the category such as cars !here it is often difficult to distinguish bet!een the competing models on purely technical or functional parameters. The brand thus becomes the most meaningful differentiator and a safe choice. *hile the functional parameters do trigger the decision to purchase a car and also operate through the purchase process. +any researches have been done on the consumer buying behaviour but the study done by 7alerie S. 3ol(es 9from The University of Southern California: actually helped to discover the ne! meaning of the buying behaviour. "e concluded It is the interaction of the situation and the individual that leads to behavior. The study of consumer behavior is $ustified as a separate domain of in1uiry because !hen situational cues lead people to perceive themselves as customers they then interpret the !orld differently than !hen they do not perceive themselves as customers and that influences their behavior. / study conducted by &van "irsh Steve "edlund E +ar( Sch!eiger in ;FF2 about the perception of the brands !hich concludes that in the absence of a strong brand price is the only plausible !ay to affect near'term demand. "ence curtailing incentives in an effort to build brand is not li(ely an economically viable option. +any manufacturers have made brand positioning and devel opment a (ey item on their mar(eting agenda. et brands are not the product of manufacturers# mar(eting efforts. Instead consumers base their understanding of an automotive brand#s value on their accumulated e%perience !ith that brand#s products. If you !ant to change the 4rand change the products G for the better.
Freelance Essay Writing acancies ooking to "ecome a writer?
Due to high demand for our services !e#re al!ays loo(ing for ne! !riters. If you#re interested in becoming a freelance !riter then !hy not read more about our freelance !riter $obs. 3reelance *riting Aobs
/ll these points !ere found very useful from the mar(eter#s perspective to improve the image of the brand in the minds of the consumers. Since brand form an important attribute for the decision ma(ing of a high involvement product li(e a car. The ethical and non'ethical practices in mar(eting are under e%ercise also . +ar(eting practice is no! busy integrating the potential of information and communication technologies through the utiliHation of databases and Internet mar(eting. 4illions of potential consumers can no! be reached this !ay. Singhapa(di 92BBB: sho!ed that mar(eting managers !ho perceive an ethical problem in a situation are more li(ely to have an ethical intention. "ence !e suggest that mar(eting professionals engage in more thought and reflect on their mar(eting practices on the Internet. This could lead to a greater consciousness and hence to the development of more ethical intentions and practices. The 1uestion of adopting an ethical mar(eting behavior does not only boil do!n to providing a firm#s policy concerning information privacy it should also be demonstrated in mar(eting actions. /ccording to Cherrier 9;FF?: there are t!o !ays to vie! ethical consumption) Conservative and liberal. /ccording to the conservative vie! consumers need to obey a prescriptive set of ethical norms in order to consume ethically. /s the number of mar(eting messages increases the more difficult it is to reach out !ith the intended mar(eting message. The cluttered mar(eting environment and the continuous e%posure of mar(eting communication are challenging for mar(eters. 9Rosengren ;FF: Consumer perception and purchase of fair trade products have been a topic of intrigue for researchers for a long time because of the comple%ities involved in accurately measuring !hy and ho! consumers go for ethical goods. ,revious research has attributed the fair trade concept to be of interest to only a small group of usually ethically minded consumers and recently to more highly educated high income !omen. Demographics also played a great part in the ethical purchases of consumers !ith research from 6ittrell and Dic(son 92BBB: that fair'trade buyers !ere demographically homogeneous and consisted of highly educated !ell'off !omen in their forties !ith a large portion being teachers health professionals and social !or(ers. 3orte E 6amont 92BB: found out that there is an increase in purchases based on a company#s role in the society !ith consumers more li(ely to purchase from a company that is actively involved in social activities in their communities than those !hich are not. Social responsibility and ethical purchase is not the dominant issue in consumer purchase decision 94oulstridge E Carrigan ;FFF: cited in ,elsmac(er et al 9;FF?: as most consumers do not carry out !hat they say they !ill do during ans!ering research 1uestions.
/ccording to 4oulstridge and Carrigan 9;FFF: consumers are e%pecting that companies have high ethical behaviour and are !illing to pay more for products produced by companies !ith high ethical behaviour. "o!ever products produced from companies that are unethical are still bought but they are e%pected to be cheap. The consumers# !ay of retribution against unethical companies are through decreased !illingness to pay high prices. /nother aspect is ho! the businees ethics affect business relationships. /ccording to Jineldin 9;FFF: long'term relationships are built on ethical and moral understanding !hich is crucial for mutal benefits and a re!arding relationship. 3urthermore the importance of business ethics is determined by consumers interest in a $ust and good society. +a(ing the decision regarding an automobile in not at all different .It vibrates on the same platform and re1uires similar decisional inputs before the consumer arrives at the final !ord.
The National Surveys Tata +otor# s Nano has been ran(ed last among entry level small cars in terms of customer satisfaction according to mar(et research firm TNS. In the K;F2F four'!heeler Total Customer Satisfaction 9TCS:K study b y TNS /utomotive +aruti SuHu(i India#s 9+SI: best selling model /lto topped the entry level small car category. Omni and the once bread'and'butter model +FF follo!ed the list. The customer e%pectations even at the bottom end are rising. The o!ners of Tata Nano e%pect more in terms of design and +aruti FF o!ners e%pect better servicing as the years go by. Nano has been having issues follo!ing fire incidents !ith si% reported cases since its launch in ;FFB. Tata +otors had offered to provide additional safety measures free of cost as a precautionary measure although it claimed that the Nano is absolutely safe. The study pointed out that car o!ners in Northern India are relatively less satisfied compared to those in other parts of the country primarily because of after sales services as the age of the car gro!s./part from the entry level compact car segment +SI#s Jen &stilo and /'Star $ointly topped the premium compact car category in customer satisfaction. The survey covered B
Struggling with your essay? We can help! *e can help get your course!or( bac( on trac( ta(e a loo( at our services to learn more about ho! !e can help. &ssay *riting Service &ssay +ar(ing Service ,lace an Order
Custom *ritten *or( -uaranteed on Time
-et The -rade ou ordered In intervie!s companies identified t!o critical issues for the gro!th of the small car mar(et) /ffordability E Credit) In Indian terms even small cars are costly ' the average small car costs around 2; times average annual disposable income. Small fuel efficient cars !ill remain the main mar(et .It is not only a matter of the cost of the vehicle in the sho!room it is also the total cost of o!nership. 4ut !hat is changing is that vehicle demand used to be driven by government by institutions and private companies ' no! it is being driven by private middle'class consumer demand. /nd for this set of consumers affordability is the (ey issue. The financing and ta%ation !ill continue to shape the mar(et for larger cars. The medium segment is still d ominated by company cars the sort of thing that medium' to high'level managers get. &ither companies buy fleets or they offer employees finance. /nd in this segment a lot !ill depend on !hether there are ne! fringe benefit ta%es. /ttitudes) Indians are savers they are frugal they are cost conscious and they are very driven by value for money . +ost companies believe that this means that medium siHed cars !ill remain hard to sell in volume ' but that despite the conservatism of consumers attitude changes !ill drive small car sales. There is a huge social shift in India . ,eople are coming from rural areas to the cities t!o' !heelers are giving !ay to four !heelers and as a result the very small FF'2FFF cc car mar(et is going to gro! very fast. ,lus !e are moving to an era of dual incomes husband and !ife both !or(ing and !e are also seeing ne! concerns about t!o'!heeler safety that support small car sales. / gro!ing percentage of vehicles in the Indian mar(et !ill run on alternative fuels Crisil Research said the Nano price point !ould see a L? per cent increase in the number of families that can afford a car. "o!ever it forecast that at the significantly redefined threshold for car o!nership in India annual car sales have the potential to increase by ;F per cent over ;FFM'F. India#s entry'level car mar(et is estimated at =FFFFF units a year primarily consisting of +aruti' SuHu(i#s FF and /lto and some base models of the " yundai Santro and +aruti#s *agon'R cars that are priced belo! Rs
The survey had a sample siHe of 2 million households e%trapolated to ;2?.B million households in India !ith at least one earner. The survey analysis suggests that the potential buyers of cars are households !ith an annual income of Rs ;FFFFF and above that do not o!n a car. The analysis considers all households that can afford a small car and do not currently o!n a single car. /ccording to the survey !hich had a sample siHe of nearly a million households over 2;. million households out of the 2B million households !ith annual income above Rs ;FFFFF currently do not o!n a car 9either ne! or second hand:. In the case of households !ith a nnual income bet!een Rs 2?FFFF and Rs ;FFFFF there are 2F million households that o!n a t!o'!heeler but do not currently have a car. The survey sho!s nearly ?? per cent of the 2.L million demand is e%pected from rural India and smaller to!ns !ith the near'term demand from the si% super metros estimated at F.;? million. *ithin this as many as F. million non'car households !ho !ere planning to buy only a t!o' !heeler may no! aspire for a car due to the lo!er price point for a car li(e the Nano.
This essay is an example of a student's work Disclaimer This essay has been submitted to us by a student. This is not an e%ample of the !or( !ritten by our professional essay !riters. *ho !rote this essay Re1uest removal &%ample &ssays
If one !ere to assume that no household !ith annual income above Rs ?FFFFF !ould buy a small car the near'term demand estimate is still very high at over 2.;L milli on units.
C"/,T&R < R&S&/RC" +&T"ODO6O- <.2 Research design and method Research +ethod The study !ill be divided into three parts) 2. The des( research
;. The field research <. Report !riting The des( research !ill comprise of evaluating the secondary data to assess the follo!ing) a. Understanding the overall passenger car mar(et. b. /ssess the visible changes that have ta(en place in the mar(et. c. &valuate the current trends in the buyer behavior. d. Understand the current consumer approaches to!ards global vs Indian brands. The field research !ill be re'validation of the findings of the secondary data findings and to achieve the primary ob$ective. a. +ethod of data collection) Structured disguised 1uestionnaire !ill be developed to understand the consumer perception of global vs Indian brands. b. Sampling) 2. Sample ,rofile) This !ill a mi% of dealers and prospective consumers of car selected through the simple random sampling. 3or the dealer it !ill be stratified sampling selection techni1ue used. ;. Sample SiHe ) Dealers ' 2F Consumers ' ?F <. Sampling Techni1ue) Simple random sampling for the consumer and stratified sampling for the dealers.
6imitations of the Study 2. Sample siHe is not large enough to obtain absolute results. 7ariability may e%its. ;. The study is based on the findings of single city only i.e....the +umbai city only. <. The research is restricted to the mini cars segment only. =. The genuineness of data may be 1uestioned .
<.; Data +ethod of data collection)
Structured disguised 1uestionnaire !ill be developed to understand the consumer perception of global vs Indian brands. Sampling) This !ill a mi% of dealers and prospective consumers of car selected through the simple random sampling. The field!or( !ould be underta(en !ith the structured disguised 1uestionnaire to understand the middle class consumer#s perception of global 7s Indian brands. The Sample ,rofile comprises of dealers and prospective class conscious consumers of car selected through the simple random sampling. 3or the dealer !ill be stratified sampling selection techni1ue used a sample siHe of 2F. The sample siHe of consumers comprises of ?F.
C"/,T&R = D/T/ /N/6SIS Car purchasing decision is an important decision for most of India young consumers. +ore than half of respondents made their decision from initial decision to buy to placing the order bet!een t!o !ee(s to three months. ,eople get information from different channels car sales staff Internet family5friend !ord of mouth car sho!s etc. 3rom this survey !e find out that !ith the rapid development of Internet a lot of consumers start to use Internet to get car information 9Internet has become ;nd most used channel to get information and is $ust behind dealer staff in our study:. The Internet is usually the first place for young consumers to go !hen they !ant to buy a car0 their ne%t step maybe ta(e place in the sho!room then follo!ed by a test drive. The field!or( is underta(en !ith the structured disguised 1uestionnaire to understand the consumer perception of global 7s Indian brands. The Sample ,rofile comprises of dealers and prospective consumers of car selected through the simple random sampling. 3or the dealer it !ill be stratified sampling selection techni1ue used fir a sample siHe of 2F. The sample siHe of consumers comprises of ?F. Simple random sampling is used for the consumer and stratified sampling for the dealers. The age group of the sample profile is depicted in the Diagram2. The diagram reflects the ;F'
4y Diag.< it is found that out ?F of the respondents have more than ; cars. 3rom Diag.= E ? In +ini'siHed car segment "undai Santro is o!ned by ma%imum respondents follo!ed by 3iat ,alio and +aruti Jen. In +id'siHed segment "undai /ccent is o!ned by ma%imum respondents follo!ed by "onda City and +aruti &steem.
+ini'Segment Cars +id'segment Cars Consider the follo!ing ,arameters for their ,urchase of Cars) Diagrams L'2< depict the parameters that people consider to purchase a ne! car. Out of the total respondents surveyed =? of the people highly agree 4R/ND as parameter0 ?F as ST6& ? as +I6/-& == as S,/C& ;L as comfort ?= as CR&DIT SC"&+&S ?= as CO6OUR <= as accessories. Diagram 2= reflects the respondent#s need to bu y a ne! car. = of the respondents said they !ould buy a ne! car as their family siHe is increased =L to upgrade for a better car and only L !ere first time buyers. Diagrams 2?'2 In the mini'segment car companies# ma%imum customers are highly satisfied !ith the good dealer coverage and the facilities in the outlet of +aruti Udyog. Secondly most of the customers consider that "yundai +otors 9@orean Company: has emerged to be the No. 2 brand today and !ith ma%imum customers being highly satisfied !ith its after sales service. Tata +otors image and brand is deteriorating. 3iat India is doing average in all aspects
C"/,T&R ? 3INDIN-S ?.2 Implications /s the younger people get of buying age consumers !ill spend more time on Internet and purchase more and more products by Internet including cars therefore car manufacturers and retail dealers should thin( about ho! they should do in the different decision ma(ing phases in the e'!orld and should try to !or( closely !ith automotive Internet companies and increase its budgets on Internet advertising and mar(eting. In the needs recognition phase car manufacturers may use banner advertising sponsorships and interstitials !hich could e%pose customers to products and services.
In addition car manufacturers and dealers may design some online surveys to get to (no! !hat customers really need5!ant for the cars0 In the information search phase car manufacturers and dealers may provide some online 1ueries !hich could ans!er consumers# 1uestions and provide useful information for consumers# decision ma(ing0 In the evaluation of alternatives stage consumers may use community mar(eting customer feedbac( message boards customer revie!s and blogs5+SN spaces to help customers though the evaluation process to!ard their final purchasing goal. In the purchase phase car manufacturers could use gift registries email mar(eting and online dialogue functionality to help consumers ma(e final purchase or even additional purchases. In the post'purchase phase auto ma(ers and retailers may regularly chec( the positive or negative comments and feedbac(s posted on some !ebsites# forums by some users.
?.; The Conclusions On the basis of analysing secondary and primary data the follo!ing recommendations are made !ith respect to the consumer behaviour of passenger car segment in S/S Nagar) /s the age group ;F'
It is observed that customer is more !illing to buy a ne! car than going for seconds. So Car manufacturers may launch e%change schemes and offers to push the ne! models in the mar(et. *e can also conclude that the internationality of the brands does have an effect on the purchase decision of the car in the minds of the consumers. /s !e had already seen that the foreign brands li(e "yundai "onda 3iat are doing really !ell due to their e%cellence in the product 1uality technology features price etc. /ll these attributes does play a very important role in comparison !ith the local brands li(e +aruti SuHu(i Tata +otors etc. !hose share in the mar(et is d eclining day by day. Car mar(et in ''''' is gro!ing consistently and the flood of ne! models aggressive a dvertising coupled !ith competitive pricing and various finance options customer is very much positive to o!n a four'!heeler. Observing the recommendations it may be concluded that car manufacturers already moving the gear to motivate customer !ith attractive advertising and positioning and innovations in scheme designing tie'ups !ith various auto loan providers has ignited the gro!th fuel a nd the pricing game has started in the mar(et. So the customer has more choices at competitive prices. So !ith more car brands set to enter the country and e%isting players planning to launch ne! models the options available to the prospective buyer are going to increase. "o!ever ta(ing a decision on !hich model to buy is also going to get more challenging. 3or the Indian car buyer it#s perhaps time to get more mar(et savvy.
