A DISSERTATION ON “Customer preferences and customer satisfaction with regard to specific brands of bikes (TVS, HONDA and BAJAJ) under 150cc category between the age group of 18-25 college going student on the basis of Price, Fuel efficiency, Brand name, Style and comfort -A case study of Yamuna Nagar” Submitted to KURUKSHETRA UNIVERSITY, KURUKSHETRA
In the partial fulfillment for the degree of Master of Business Administration (Session 2005-2007) Under the supervision of: Dr. VIKAS DRYAL Asst. Prof. & HOD, MBA
Submitted by: SAMIR BHAT Uni. Roll. ……….. Roll No. 1101/05 Regt. No. 05-TRY-01
Tilak Raj Chadha Institute of Management &Technology (Approved by AICTE & Affiliated to Kurukshetra University, Kurukshetra) Yamuna Nagar-135001)
ACKNOWLEDGEMENT
Acknowledgement I take this opportunity to express my profound debts of gratitude and obligation, to my esteemed guide Dr. Vikas Daryal, H.O.D., Tilak Raj Chadha Institute of Mgt. & Technology, Yamuna Nagar, for his most valuable help and creative suggestions at all stages of my work. His learned advice and guidance always kindled inspiration in the face of difficulties encountered in the course of this research work. I am also thankful to my mentor Dr. R.K. Garg, Director, Tilak Raj Chadha Institute of Mgt. & Technology, Yamuna Nagar, for allowing me to work on this project work and for his kind help always. I am highly grateful to my all lecturers and dedicated staff of Tilak Raj Chadha Institute of Mgt. & Technology, Yamuna Nagar for their kind help from time to time. I am also thankful to the respondents, all my friends and also to various Auto experts for their kind and valuable guidance, whom I consulted for my present work.
(Samir Bhat)
EXECUTIVE SUMMARY
Executive Summary To know about the consumer buying behavior and factor which affect the consumer buying decision process. As the objectives of my study is to analyze the customer perception and the customer satisfaction to wards specific brands of bike (TVS, HONDA, BAJAJ) between the age group of 18-25 College going student on the basis of Price, Fuel efficiency, Brand, Style and comfort name. Consumer buyer behavior refers to the buying behavior of final consumers – individuals and households who buys services and goods for personal consumption. Consumer behavior is influenced strongly by culture, social, personal and psychological factors. Culture factors include the set of basic values, perceptions, wants and behavior learned by a member of society from family and other important institutions. The social factors include consumer’s family, small group, social roles and status. The personal characteristics such as buyer’s age, life cycle stage, occupation, economic situations and life style influenced by four major psychological factors: Motivation, Perception, Learning, Belief and Attitudes. In this era of cut throat competition, no company can even survive in the market place without knowing its and its products strengths and weaknesses. It has to fortify itself against threats from the environment and exploit its strengths or increase profits. And in order to do so, the company has to conduct regular surveys to know the customer’s opinions, needs, and preferences. This helps the company to manufacture the product like wise for each customer’s expectations.
Contents Serial No.
Page No.
1.
Certificate
2.
Acknowledgement
3.
Executive summary
4.
Contents
5.
Introduction Profile of the study
• •
Significance of the study
6.
Objective of the study
7.
Literature Review
8.
Research Methodology •
Sampling & Sample Design
•
Analytical Tools
•
Data Collection
•
Hypothesis Testing
•
Limitations of the study
9.
Result & Discussions/Findings
10.
Recommendation
11.
Bibliography
12.
Annexure
INTRODUCTION
INTRODUCTION
PROFILE OF THE STUDY In this era of cut throat competition, no company can survive in the market place without knowing its product’s strengths and weaknesses. It has to fortify (Strengthen) itself against threats from the environment and exploit its strengths for increasing profits. In order to do so, the company has to conduct regular surveys to know the customer’s opinions, needs, and preferences. This helps the company to manufacture the product according to customer’s expectations. It has now become more important for the customer confidence and higher positioning of buyer perception. Thus, Surveys becomes genuine key to success. The Bike segment is Dominated by 4 major players viz. HERO HONDA , BAJAJ, TVS, ROYAL ENFIELD .Besides these, there are players like – HONDA(Alone) , LML, KINETIC, SUZUKI. The expanding Indian market, the growing size of the middle class and the rise in aspirations of the youth along with opening up of the Indian economy have collectively influenced the steady growth of the two wheeler market in India. With leading foreign brands in collaborations with Indian manufacturers entering the Indian market, the customer could not have asked for more. In fact, the Indian bike market has grown immensely and the preference for variety looks, design has brought in a number of models in the market. In the last 3 to 4 years, the craze for motorcycle over the scooters has picked up and one can find today even girls crazy for a motorbike not only in the Metros but in small towns and cities also.
Trying to catch up with these, manufacturers are busy working out on customer profiles. With the increase in competition one can find a think of discounts including: cash rebates and free accessories to push sales of the commuter bikes. Certain changes are also visible as far as customer preferences are concerned. The basic 100cc bike market is suddenly experiencing a slow down in the growth. This Commuter bike was a favorite till the other day, commanding up to 90% of the total bike sales. The shift towards 150 cc bikes is suddenly discernable and the segment is expected to grow in near future. Manufacturers are now rushing in to introduce bikes in this segment. Bajaj has
launched Pulsar-Dtsi 150cc higher on the power ladder, Honda has come up with Unicorn and TVS has recently launched Apache. The customer is the basic ingredient of marketing. The development of marketing strategy is based on understanding of consumer and there behavior. The present study attempts to understand the behavior of consumer for their choice in purchasing two-wheeler with special reference to bikes like Honda(Unicorn), TVS (Apache), and Bajaj(Pulsar 150cc). But consumer behavior and the derived consumer satisfaction cannot be intact. Now days the two wheeler industry is growing at its fast speed. The competition is very hard and so many choices are available to customers. Here I have tried to find out the level of customer satisfaction regarding (Unicorn, Apache, and Pulsar) two wheelers and also what modification they want in their products. So the study is all about the customer’s preference and their satisfaction with regard to bikes coming under 150cc segment.
BIG PLAYERS IN THE BIKE SEGMENT
Bajaj Auto Limited is one of the pioneering companies in the two wheeler industry. Bajaj Auto has a vast network of about 1500 service centers and 500 dealers all over India. It has 3 manufacturing plants located at Akurdi, Waluj and Chakan in Maharashtra. The company's technology partner is Kawasaki Heavy Industries, Japan. The company exports to ASEAN region, South America and Africa.
MILESTONES 1945 - Bajaj Auto comes into existence as M/s Bachraj Trading Corporation Private Limited. 1948 - Sales in India commence by importing two- and threewheelers. 1959 - Bajaj Auto obtains license from the Government of India to manufacture two- and three-wheelers. 1960 - Bajaj Auto becomes a public limited company. Bhoomi Poojan of Akurdi Plant. 1970 - Bajaj Auto rolls out its 100,000th vehicle. 1971- The three-wheeler goods carrier is introduced. 1972 - The Bajaj Chetak is introduced. 1975 - BAL & Maharashtra Scooters Ltd. joint venture. 1976 - The Bajaj Super is introduced. 1977 - The Rear Engine Autorickshaw is introduced. Bajaj Auto achieves production and sales of 100,000 vehicles in a
single financial year. 1981 - The Bajaj M-50 is introduced 1984 - Foundation stone laid for the new Plant at Waluj, Aurangabad. 1986 - The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles are introduced. 500,000 vehicles produced and sold in a single financial year. 1990 - The Bajaj Sunny is introduced 1991 - The Kawasaki Bajaj 4S Champion is introduced. 1998 - Kawasaki Bajaj Caliber rolls out of Waluj. 2001- Bajaj Auto launches its latest offering in the premium bike segment ‘Pulsar’. The Eliminator is launched. 2003- Pulsar DTS-i is launched. 2004 - Bajaj unveils new brand identity, new symbol, logo and brand line 2007 - 200 cc Pulsar DTS-i launched
Bajaj Pulsar DTSi 150cc Generation next technology included in the package of the equipments of this high flying bike is the revolutionary digital biking. Digital biking is the combination of various advanced systems like Digital Twin Spark ignition (DTSi). Its highly masculine outlook with sporty, dashing structure gives the complete satisfaction of dare riding. Bajaj Pulsar enables its rider to tackle the situation of overcrowded street due to the presence of 17" alloy wheels with 1330 mm wheelbase. Its comfort statement includes front telescopic suspension, Nitro X - Nitrogen assisted rear gas shockers with triple rated spring. Due to these comfort features, this bike is highly accommodative in any terrain. Feeling of proper riding is provided by different high end features like improved clutch, cylinder head with Roller Rocker Arms, optimized intake and exhaust systems & new valve timings. Its advanced Exhaust TEC (Torque Expansion Chamber) technology ensures the higher performance at lower rpm.
TVS Motor Company is part of Sundaram Clayton group in TVS group of companies. TVS Motor Company is the main flag ship company of Sundaram Clayton group. TVS Motors is the third largest two-wheeler manufacturer in Indian and ranks among the top ten globally. It is the first company in the world to be honored with the Deming Prize for Total Quality Management. The Company was the first in India to launch 2-seater 50cc moped and 100 cc Indo-Japanese Motorcycles. At Present TVS Apache, TVS Victor, TVS Scooty, TVS Centra and TVS Fiero are the popular bikes in Indian Market.
MILESTONES •
India’s first 2 seater 50cc Moped TVS 50, launched in Aug 1980.
•
In 1982 SCL established Joint Venture with Suzuki Motor Corporation.
•
In 1994 the company entered the market segment of scooters with introduction of Scooty 2S, which was totally an indigenous design.
•
Introduced India's first catalytic converter enabled motorcycle, the 110cc Shogun in Dec 1996.
•
Launched India's first 5-speed motorcycle, the Shaolin in Oct 1997.
•
Launched TVS Victor, 4-stroke 110 cc motorcycles, in August 2001; India’s first fully indigenously designed and manufactured motorcycle.
•
In 2000 the first 4 stroke motorcycle was launched called Fiero
•
Launched TVS Star in Sept 2004, a 100 cc motorcycle which is ideal for rough terrain
•
Launched TVS Apache in Nov 2005. It finally went on to be the Bike of the Year for 2006, winning 6 prestigious awards
TVS Apache TVS Apache with its shapely streamlined tank and engine design is really an eye -stopper. Its smooth and flawless finish makes this bike desirable to the market. Its tough but light 6 spoke black alloy wheels are really supportive for better control and excellent riding of this two wheeler. Its uniquely designed head lamp has become one of the best head turner in the market of two wheelers. Its 240 mm disc brake is helpful in stopping one in any sudden situation to avoid accident. Its all gear start and low friction engine with RCF technology are the key factor of better efficiency of this bike. It is further equipped with various upgraded technology like monotube inverted gas filled shocks, IDI lean burn, iE surge (intake and exhaust resonator), synchro stiff chassis etc. for the proper safety and security of the persons seating on the bike.
Its symbol, the Wings, represents the company's unwavering dedication in achieving goals that are unique and above all, conforming to international norms. These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. In September 2004, Honda Motorcycle and Scooters India Limited (HMSI), the wholly owned subsidiary of the Japan-based Honda Motor Company Limited (HMCL), launched its first 150cc motorcycle named 'Unicorn.' Priced at Rs. 50,043 (ex-showroom price, Delhi), Unicorn had a four stroke 13.3 bhp engine with five gears. The new bike was available in five colours and was designed to achieve a speed of 0 to 60 kmph in five seconds. Unicorn was promoted with the caption "Be a wing rider." (Refer Exhibit I for a visual of Unicorn). Targeted at youth, Unicorn looked sportier than all the existing motorcycles in the premium segment and was pitted against Bajaj Pulsar, the leader with 75 percent market share in that segment.
Honda Unicorn This bike with powerful 4 stroke 150 cc engine delivering output of 13.3 bhp engine clubbed with many other high end equipments like Constant Volume (CV) Carburetor, pulse exhaust system, offset crank and 2 way air jacket. Its multi mapping CDI, roller rocker arm, 5 speed gears, tumble free combustion etc. determine the performance as well as its aesthetic value. Its aerodynamic body lining, sporty and sleek
design, appealing tail lamp and excellent body graphics etc are enhancing its
style statement day by day. Unique shock absorbing mono suspension prevents discomfort due to the sudden jerk caused by uneven road. Its flexible seating arrangement, ample foot space gives the total comfort of journey. Fully equipped with various cutting edge technologies, this bike comes with hole plugging mechanism, tuff up tube, easy primary kick etc.
CONSUMER BEHAVIOUR Before getting into details of Consumer Behaviour, one must go through certain basic terminologies. In general terms both ‘Consumer’ and ‘Customer’ are considered the same but they are quite different. The term ‘Customer’ is some what different from the term ‘consumer’. The term customer is used to refer to someone who purchases goods and services from a particular store or company. Thus a customer is defined in terms of a specific term while a consumer is not ‘Consumer’ may be referred to any one engaged in evaluating, acquiring, using or disposing of goods and services which he
expects will satisfy his
needs. So ultimately Consumers are that individual who
consumes or uses a product,
which may or may not be purchased by him. So after getting into these terms we need to get into the details of “Consumer Behaviour”. Consumer Behaviour – Consumer behaviour refers to how a consumer behaves or acts or reacts in making a purchase of goods and services of his choice in different situations The term consumer Behaviour can be defined as, “The behaviour that consumers display in searching for purchasing, using, evaluating and disposing of products, services and ideas which they expect will satisfy their needs.” -
Leon G. Schiffman and Leslie Lazar Kanuk.
The study of consumer behaviour not only focuses on how and why consumers make buying decisions, but also focuses on the uses which consumers make of the goods they buy and their evaluation of these goods after use. If the goods after use don’t satisfy the consumers, they my feel dissatisfied perhaps because post- purchase services are not up to their satisfaction, and thus, this may influence their purchase of the goods and it may also influence the buying decision of many others who might come in contact with them.
The detailed study of Consumer Behaviour or Consumer Preferences focuses on Who Buys products or services? How do they buy products or services? Where do they buy them? How often do they buy them? When do they buy them? Why do they buy them? How often do they use them? These questions will help in understanding the factors that influence the decision making process of the consumers. The buyer’s decision making process includes the following:1. Problem recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post purchase behavior
1. Problem recognition: - First and the foremost step is to identify the problem i.e. what actually one wants with regard to the product. 2. Information Search: - Second step is to search the relevant information regarding the Product which one wants. 3. Evaluation of alternatives: - Third step is to evaluate the collected information i.e. analyze the information. 4. Purchase decision: - In forth step the product is actually purchased. 5. Post purchase behaviour: - In fifth step the consumer actually reacts against the quality, quantity etc received after the purchasing the product i.e. in this stage he reacts on the basis of his getting satisfied after the purchase of the product. The buyer’s decisions include the following: Product choice
Brand choice Dealer choice Purchase timing Purchase amount. Consumer perception How do Buyers form their preference? Their preferences are influenced by their past buying experience, friend’s and associate’s advice, and the marketer’s and competitor’s information and promises. Though customer preference is a very qualitative term and it is very difficult to measure. In this study an effort has been made to measure the customer preference level. Customer Satisfaction “Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance in relation to his or her expectation” As the definition makes it clear, satisfaction is a function of perceived performance and expectations. If the performance falls short of the expectations of the customer, the customer is dissatisfied. If the performance exceeds the expectations, the customer is highly satisfied or delighted. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch, when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional affinity with the brain, not just a rational preference. The result is high customer loyalty. In this highly competitive world customers plays a very important role. Thus, if a company wants to survive then it should look forward to the determinants of customer satisfaction. Though it is a very subjective issue that differs from individual to individual yet, identifying some basic parameters of customer satisfaction is important. Satisfaction is a person’s feeling of pleasure and disappointment resulting from comparing a product’s perceived performance in relation to his or her expectations. It is only the customer delight that marketer aims for.
Significance of the study To know about the customer preference and decision process with regard to 150cc bike. To know the Basic consumer buying behaviour and the reasons because of which they switch from one company to another.
To know about the company’s details (profile, Products) This study would help in revealing the type and specific qualities of the bikes offered by the company to their consumers. To study the satisfaction level of consumers who uses bikes. To study the factors influencing consumers to buy 150cc bikes. To study effect of advertisement on the purchasing decision of the consumers
OBJECTIVES OF THE STUDY
Objectives of the study The clear purpose or objective of the research enables the researcher to collect – necessary relevant information. The objective of the research is to know the
Customer preferences and customer satisfaction with regard to specific brands of bikes (TVS, HONDA and BAJAJ) under 150cc category between the age group of 18-25 College going student on the basis of Price, Fuel efficiency, Brand, Style and comfort name. . •
Knowledge about two-wheelers (Bikes).
•
Knowledge about the market share of two- wheeler.
•
To know about the leaders of the market in two wheelers (Bikes).
•
Find out the quantum of customer satisfaction with respect to 150cc bikes especially the college going students within the age group of 18-25.
•
Determine the influence of reference group in the purchase decision of college going students.
•
Find out the ways for improving of the services to attain level of customer satisfaction
.
Study area: Target segment:
YAMUNA NAGAR COLLEGE GOING STUDENTS
LITERATURE REVIEW
LITERATURE REVIEW Once the problem is formulated, the researcher has to undertake an extensive literature survey related to problem. The literature survey undertaken here includes books and different websites from the internet.
Customer preferences and customer satisfaction with regard to specific brands of bikes (TVS, HONDA and BAJAJ) under 150cc category between the age group of 1825 College going student on the basis of Price, Fuel efficiency, Brand, Style and comfort name The research project was to know the
. •
Schiffman. G. Leon and kanuk lazare Leslie
1
- Study of the customer
behaviour is the study of how individuals make decisions to spend their available resources (Time, Money and Efforts) on consumption related items. It includes the study what they buy, whey they buy it, when they buy it, where they buy it, how often they buy it and how often they use it. The primary purpose for the study consumer behaviour as apart of marketing curriculum is to understand how and how customers make their purchase decisions. There insights enable marketers to design more effective marketing strategies. •
Gupta.C .B and Dr. Nair. N.Rajan 2 - A business is based on understanding the customer and providing the kind of products that the customer wants.
•
Mamoria C.B. and Mamoria Satish
3
- Consumer behaviour is the process
where by individuals decide what, when, where, how and from whom to purchase goods and services. Buying behaviour may be viewed as an orderly process here by individual interacts with his environment for the purpose of making market decision on products and services.
•
Nair Suja. R.4 - The success of the firm will be determined by how effective it has been in meeting the diverse customer needs and wants by treating each customer as unique and offering products and services to suit his/her needs.
•
Bennett Peter.D. And Kassarjian Haroldh 5 - A great deal of research activity in marketing is design to shed light on the customer decision process.
• • • • •
Kothari C.R.6 For data analysis different statistical techniques are being used such as scaling techniques, correlation, hypothesis testing. http://www.tvsapache.com/home.aspx http://www.bajajauto.com/pulsar/ http://www.honda2wheelersindia.com/unicorn/ride_n_fly/be_a_wing_rider.asp http://auto.indiamart.com/motorcycles/
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research Methodology is a way to systematically solve the research problem, which is a science of study how research is done scientifically. Thus research methodology encompasses the research methods or techniques; the research is capable of being evaluated either by the researcher himself or by others.
⇒ SAMPLING Sampling may be defined as the selection of some parts of an agreement or totality for the purpose of study. All the items in any field of inquiry constitute a universe or population, a complete enumeration of all the items in the population is known as Census inquiry. But when the field of inquiry is large this method becomes difficult to adopt because of the limited no. of resources involved in the case sample survey method is chosen under which units are selected in such a way that they represent the entire universe.
SAMPLING DESIGN •
CENSUS METHOD: - All the items in any field of inquiry constitute a
‘Universe’ or ‘Population’. A complete enumeration of all the items in the ‘Population’ is known as a Census inquiry. It can be presumed that in such an inquiry, when all items are covered, no element of chance is left and highest accuracy is obtained. But in practical it is not true in all cases. This type of inquiry involves a great deal of time, money and energy. Therefore, when the field of inquiry is large, this method becomes difficult to adopt because of the resources involved. •
SAMPLING METHOD:- When field studies are undertaken in practical
life, consideration of time and cost almost invariably lead to a selection of respondents i.e. selection of only few items. The respondent selected should be as representative of total population. These respondents constitute what is
technically called a ‘Sample’ and the selection process is called ‘Sampling Technique’. The survey so conducted is known as ‘Sample Survey’. Implementation of Sample Design: - A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sampling design may as well lay down the number of items to be included in the sample i.e. the size of sample. Sample design is determined before the data are colleted.
Steps In Sampling Design :- While developing a research design following items are taken into consideration:I. Type of universe: - First and the foremost step is to clearly define the universe to be studied. As I have taken the area of Yamuna Nagar City (Haryana), so for me here the universe is Yamuna Nagar area. No doubt it is a finite universe but the area is very big and can’t be covered easily due to shortage of time. II. Sampling unit: - A decision has to be taken concerning a sampling unit before selecting sample. Here my sample unit includes college going students who own bikes. III. Size of sample: - This refers to the number of items to be selected from the universe to constitute a sample. Here I have taken the sample of 200 College going students who have bikes. IV. Parameters of interest: - In determining the sample design, one must consider the question of the specific population parameters which are of interest. Here I had taken only college going students who own their bike. V. Sampling procedure: - Finally the technique of selecting the sample is to be dealt with. That means through which method the sample has
been collected. There are various types of selecting the sample. This includes probability sampling, random sampling, stratified sampling, cluster sampling, convenience sampling. Here I have used the cluster sampling method for data collection, as Yamuna Nagar area is very big and there are many colleges as well as the hostels.
⇒ Analytical
tool
Multi Dimensional Scaling Multidimensional scaling (MDS) is a method for analyzing a (similarity or dissimilarity) proximity matrix based on a set of observations. The purpose of MDS is to model the proximity of observations in order to represent them as accurately as possible in a limited number of dimensions (usually 2). There are different MDS algorithms: XLSTAT uses the SMACOF (Scaling by Majoring a Convex Function) algorithm that minimizes the "normalized stress" function. Furthermore, there are several MDS models (or representation functions), i.e. several ways to transform the dissimilarities into disparities. The disparities are the distances that describe the optimal representation for the observations. The difference between the disparities and the distances measured on the representation resulting from the MDS is called the stress: the lower the stress, the better the representation of the observations. When the representation function simply respects the relative order of the observations, one speaks about ordinal MDS or non-metric MDS. When the dissimilarities are transformed into disparities using a specific parametric function, one speaks about metric MDS. The following models are available in the current version of XLSTAT: Metric MDS ·
Absolute MDS: each dissimilarity dij must exactly match the distance between
points i and j in the representation space. ·
Ratio MDS: the ratio of all distance pairs in the representation space must
correspond to the ratio of the corresponding dissimilarities. Interval MDS: the ratio of all differences between distances in the representation space must correspond to the ratio of the differences of the corresponding dissimilarities.
Note: the current version of XLSTAT does not support negative disparities that may occur if you use the "interval" model. If an error message is displayed on this subject, you must use another model to process your data.
Nonmetric MDS ·
ordinal (1): the order of the distances in the representation space must correspond
to the order of the corresponding dissimilarities. If there are two dissimilarities of the same rank, then there are no restrictions on the corresponding distances. ·
ordinal (2): identical to the previous model, but if dissimilarities exist in the same
rank, the corresponding distances must be equal. The stress measures the quality of the representation for a given number of dimensions. The lower it is, the better the representation. Various formulas have been proposed by different authors. Although the minimization is always based on the normalized stress, XLSTAT allows to show the results using the four formulas defined below: ·
Raw stress: it gives the quality of the representation based on the squared errors of
the representation compared with the disparities. The formula gives: Where Dij is the disparity between individuals i and j, and dij is the Euclidean distance on the representation for the same individuals. wij is the weight of the ij proximity (value is 1 by default). ·
Normalized Stress: it gives the quality of the representation based on the squared
errors of the representation compared with the disparities, divided by the sum of the squared disparities. The formula gives:
·
Kruskal's stress 1: it gives the quality of the representation based on the square
root of the squared errors of the representation compared with the disparities, divided by the sum of the squared distances on the representation. The formula gives: ·
Kruskal's stress 2: it gives the quality of the representation based on the square
root of the squared errors of the representation compared with the disparities, divided by the sum of the squared centered distances on the representation. The formula gives: where is the average of the distances on the representation. This formula usually results in a stress value that is approximately twice the value obtained for Kruskal's stress 1. In order to know if the representation quality is good enough, some rules exist, mostly based on the Kruskal's stress 1. However, the Shepard diagram that allows to compare the dissimilarities with the distances and to observe some ruptures in the ordination of the values is a empirical but reliable method. The more the chart looks linear, the better the representation. The way the stress evolves when the number of dimensions decreases is also interesting to detect if a significant amount of information is being lost in the selected representation.
MDS Interpretation The factors shown below in the table are selected are the basis of the study and are used to apply MDS (Multi Dimensional scaling) and the analyses are as follows (See Annexure 1). MDS (Multi Dimensional scaling) has been used because there are multiple factors and no other scaling technique could be used to show the analyses authenticated. Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Safety
Comfort Fuel efficiency
11
13
6
8
6
7
11
11
7
5
10
11
6
5
7
8
5
9
8
11
5
1
7
10
12
Style Performance
Correlation One of the Statistical tool which I am going to apply in my project is correlation. Correlation is their when change in the value of one variable influences the change in the value of other variable. “The statistical tool with the help of which relationship between two or more than two variables are studied is called correlation” It refers to the techniques used in measuring the closeness of the relationship between the variables. “Correlation analysis deals with the association between two or more variables.”
Correlation Let us take the hypothesis as:H0 = Let there is no correlation between various factors like Price, Brand name,
Fuel
Efficiency,
style
&
comfort
and
the
Purchase
of
bike(HONDA,BAJAJ and TVS) H1
=
Let there is correlation between various factors like Price, Brand name,
Fuel Efficiency, style & comfort and the Purchase of bike(HONDA,BAJAJ and TVS)
X Dx
HONDA
BAJAJ
TVS
-1
0
1
F
fdy
fdy2
fdxdy
Y Dy Price Brand Fuel Efficiency Style
-2 -1 0 1
23 14 18 32
4 24 10 6
5 4 6 12
32 42 34 50
-64 -42 0 50
128 42 0 50
36 10 0 -20
Comfort
2
20
17
5
42
42
168
-30
f fdx fdx2 fdxdy
107 -107 107 -12
61 0 0 0
32 32 32 8
200 -75 139 -4
28
388
-4
Coefficient of Correlation r
=
N ∑ fdxdy - ∑fdx∑fdy
=
√ N∑fdx2-(∑fdx)2 r
=
√N∑fdy2-(∑fdy)2
200x-4 – (-75)(28)__________
√ 27800-5625
r
=
√ 77600-784
+0.0314
Hence it has been proved that there is a correlation between various factors and purchase of bikes.
⇒ Data Collection The task of data collection begins after the research program has been defined and research design plan has been checked out. The data collected is important part of research. DATA COLLECTION METHOD In the data collection method different methods are adopted for primary data collection and secondary data collection. PRIMARY DATA COLLECTION Primary data is the data which is collected through observation or direct communication with the respondent in one form or another. These are several methods for primary data collection like Observation method, Interview method, through schedule, through questionnaires and so on. But as time was limited so, the relevant data was collected from the selected units by adopting and arranging personal interview with the shopkeeper and dealer along with a pre structured questionnaire. In this method I thank the views of shopkeepers and dealer through the use of questionnaire and general interview.
SECONDARY DATA COLLECTION The company’s past database is taken into reference along With company brochures. DATA COLLECTION INSTRUMENTS The data collection instruments used in the study is mentioned below:o QUESTIONNAIRE The method of data collection is quite popular. I prepared a questionnaire after knowing the different objectives of the study and considering all the things that are required for studying the dissertation topic.
⇒
Hypothesis Testing(By applying Chi-Square)
Chi-square test is used when the set of observed frequencies obtained after experimentation have to be supported by hypothesis or theory. The test is known as X2test of goodness of fit and is used to test if the deviation between observation (experiment) and theory may be attributed to chance (fluctuations of sampling). Here we have the assumption of H0 and H1. If the values come in accordance to the depicted values then the hypothesis is accepted else it’s rejected. Σ (O-E) 2 ——— E
x2 =
where,
O
=
observed frequency
E
=
Expected frequency
Chi-square test Let us take the hypothesis as:H0 = Let there is no correlation between various factors like Price, Brand name, Fuel Efficiency, style & comfort and the Purchase of bike(HONDA,BAJAJ and TVS) H1
=
Let there is correlation between various factors like Price, Brand
name, Fuel Efficiency, style & comfort
and the Purchase of
bike(HONDA,BAJAJ and TVS)
Honda
TVS
BAJAJ
f
Price
4
5
23
32
Brand
24
4
14
42
Fuel Efficiency
10
6
18
34
Style
6
12
32
50
Comfort
17
5
20
42
f
61
32
107
200
EXPECTED
HONDA
TVS
BAJAJ
f
Price
9.76
5.12
17.12
32
Brand
12.81
6.72
22.47
42
Fuel Efficiency
10.37
5.44
18.19
34
Style
15.25
8
26.75
50
Comfort
12.81
6.72
22.47
42
61
32
107
f
Observed Value 4
200
Expected value 9.76
(O-E)2 33.06
(O-E)2/E 3.38
24 10 6 17 5 4 6 12 5 23 14 18 32 20 χ
2
12.81 10.37 15.25 12.81 5.12 6.72 5.44 8 6.72 17.12 22.47 18.19 26.75 22.47 Calculated V
=
=
125.21 0.136 85.56 17.55 0.014 12.83 0.13 16 2.95 34.57 71.74 0.036 27.56 6.100 31.033
(r-1) (c-1)
=
(5-1) (3-1) = 8
for V =8
χ
So, χ
table value is less than χ
2
0.05
2
9.77 0.013 5.61 1.37 0.002 1.90 0.056 2 0.43 2.01 3.19 0.001 1.003 0.27
0.05
table value = 15.5 2
calculated value, so hypothesis
(Null) is rejected and the alternate hypothesis is accepted. Therefore there is a correlation between various factors like Price, rand name, Fuel Efficiency, style & comfort and the Purchase of bike (HONDA, BAJAJ and TVS)
LIMITATION OF THE STUDY Various hindrances occurred while carrying out the research. They have acted as limitation of the study and a few of them are:-
1. Short time period: The time period for carrying out the research was short as a result of which many facts have been left unexplored. 2. Small area for research: The area for study was Yamuna Nagar which is quite a small area to judge out the consumer preferences for the various brands of television. 3. Lack of resources: Lack of time and other resources as it was not possible to conduct survey at large level. 4. Small no. of respondents: Only 200 respondents have been chosen which is a small number, to represent whole of the population of college going students of Yamuna Nagar. 5. Unwillingness of respondents: While collection of the data many consumers were unwilling to fill the questionnaire. Respondents were having a feeling of wastage of time for them. 6. Confinement of Price: - Price of the bikes is confined only to a particular period. So the respondents were not able to fill in proper price of their bikes.
RESULTS AND DISCUSSIONS
Results and Discussions Table 1 Are your aware about 150 cc bike brands available in the market? Are your aware about 150 cc bike brands available in the market?
No. of respondents
Fully Aware Aware Less aware
93 76 31
Table 1 shows that 93 of respondents are fully aware about 150 cc bikes in market, 76 of respondents just aware about 150 cc bikes and only 31 of respondents are have little bit knowledge about 150cc.
Are your aware about 150 cc bike brands available in the market ?
No. of respondents
100
93 76
80 60
31
40 20 0
Fully Aware
Aware
Fig. 1
Less aware
Table 2 How do you come to know about this brand/model of 150 cc bike? How do you come to know about this brand/model of 150cc bike?
No. of respondents
Friends Advertisement Publicity Family members Any other
45 87 10 47 11
Table 2 shows that 45 of respondents came to know about brand of bikes from friends, 87 of respondents came to know about brand of bikes from advertisement, 10 of respondents came to know about brand of bikes from publicity, 47 of respondents came to know about brand of bikes from family members and 11 of respondents came to know about brand of bikes from other sources.
No. of respondents
How do you come to know about this brand/model of 150 CC bike ?
90 80 70 60 50 40 30 20 10 0
87
47
45
11
10 Friends
Advertisement
Publicity
Family members
Fig. 2
Any other
Table 3 Which factor influence you more to purchase a bike? Which factor influence you more to purchase a bike?
No. of respondents
Brand image Fuel efficiency Price Comfort Syle
53 81 27 17 25
Table 3 shows that 53 respondents are influenced to purchase a bike from its brand image, 81 respondents are influenced to purchase a bike from its Fuel efficiency, 27 respondents are influenced to purchase a bike from its lesser Price, 17 respondents are influenced to purchase a bike from its Comfort, 25 respondents are influenced to purchase a bike from its Style.
Which factor influence you more to purchase a bike ? 100 No. of respondents
81 80 60
53
40
27 17
20 0
Brand image
Fuel efficiency
Price
Comfort
Fig. 3
25
Syle
Table 4 Are you satisfied with its overall performance? Are you satisfied with its overall performance?
No. of respondents
Fully Satisfied Satisfied Moderate Less satisfied Poor
41 104 42 10 3
Table 4 shows that 41 of respondents are fully satisfied with the performance of their bikes, 104 of respondents are satisfied with the performance of their bike, 42 of respondents are moderate in satisfaction with the performance of their bikes and 3 of respondents are poorly satisfied with the performance of their bike.
Are you satisfied with its overall performance?
No. of respondents
120
104
100 80 60
42
41
40 10
20 0
Fully Satisfied
Satisfied
Moderate Less satisfied
Fig. 4
3 Poor
Table 5 According to you which company gives the most benefit to customers? According to you which company gives the most benefit to customers?
No. of respondents
Honda Bajaj TVS
63 109 28
Table 5 shows that 63 of respondents are saying that the Honda is providing more benefits of the services to the customers, 109 of respondents are saying that the Bajaj is providing more benefits of the services to the customers and 28 of respondents are saying that the TVS is providing more benefits of the services to the customers. According to you which company gives the most benefit to customers ?
28 63 Honda Bajaj TVS 109
Fig. 5
Table 6 Which type of media influence your purchase behaviour? Which type of media influence your purchase behaviour?
No. of respondents
T.V. Newspaper Wall painting Hording Magazine
114 33 5 12 36
Table 6 shows that 114 of respondents and influence to purchase their bike through T.V., 33 of respondents and influence to purchase their bike through Newspaper, 5 of respondents and influence to purchase their bike through Wall painting, 12 of respondents and influence to purchase their bike through Hording and 36 of respondents and influence to purchase their bike through Magazine.
Which type of media influence your purchase behaviour ?
No. of respondents
120
114
100 80 60
20 0
36
33
40
5 T.V.
New spaper
Wall painting
Fig. 6
12 Hording
Magazine
Table 7 Who influenced you more in your buying decision of bike? Who influenced you more in your buying decision of bike?
No. of respondents
Self Family Member Friends/Relative Mechanics
30 54 98 18
Table 7 shows that 30 of respondents have influence their buying decision from their self decision, 54 of respondents have influence their buying decision from their family members, 98 of respondents have influence their buying decision from their friends/relative and 18 of respondents have influence their buying decision from their Mechanics,
Who influenced you more in your buying decision of bike ? 98
No. of respondents
100 80 54
60 40
30 18
20 0
Self
Family Member Friends/Relative
Fig. 7
Mechanics
Table 8 In your opinion, what role advertisement plays? In your opinion, what role advertisement plays?
No. of respondents
Provides important details Creates awareness Misleading
65 125 10
Table 8 shows that 65 of respondents are in favor that advertisement provides important details, 125 of respondents are in favor that advertisement creates awareness and 10 of respondents are in favor that advertisement Misleading.
No. of respondents
In your opinion, what role advertisement plays ?
140 120 100 80
125
65
60 40 20 0
10 Provides important details
Creates awareness
Fig. 8
Misleading
RECOMMENDATI ONS
Recommendation Recommendation refers to the outcome of the research work done and the suggestions for implementation i.e. findings. 1. It is suggested that manufacturer should make all efforts to control cost. 2. New technology should be applied according to the requirement of the customer. 3. Provide various schemes which attract the customers. 4. Spare parts of the bikes should be easily available in the market. 5. Bike should be fuel efficient. 6. Bike should be available in different colours so as to attract college going students. 7. Bike should be given sportier look.
BIBLIOGRAPHY
BIBLIOGRAPHY 1.
Schiffman Leon G. and Kanuk Leslie Lazar
Consumer Behaviour
6th edition Published by: Prentice-hall of India Private Limited. ( page no. 2&6) 2.
Gupta C.B. and Dr. Nair N. Rajan
Marketing
Management 5th edition Published by: Sultan chand & sons (page no. 1.69) 3.
Mamoria C.B. and Mamoria Satish
Marketing
Management 4th edition Published by: Kitab Mahal (page no. 161) 4.
Nair Suja R.
Consumer Behaviour
Indian prospective Ist edition Published by: Himalaya Publicating Home ( page no. 3) 5.
Bennett Peter D. and Kassarjian Harold
Consumer
Behaviour 8th edition Published by: Prentice-hall of India Private Limited.(page no. 5) 6.
Kothari C.R
Research
Methodology Methods & Techniques 2nd edition Published by: Wishwa Publication (page no. 151, 94-95) 7.
http://www.tvsapache.com/home.aspx
8.
http://www.bajajauto.com/pulsar/
9.
http://www.honda2wheelersindia.com/unicorn/ride_n_fly/be_a_wing_rider. asp
10.
http://auto.indiamart.com/motorcycles/
11.
http://www.thehindubusinessline.com/iw/2004/11/28/stories/200411280042 1500.htm
12.
http://www.indiabike.com/infobank/unicorn/index.htm
13.
http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG098.htm
ANNEXURE
Questionnaire 1. Which Brand of bike you own? 2. What is the price of your bike? 3. How long do you own this Bike? •
Less than six month
•
Six month
•
One year
•
Two year
•
More than 2 years
4. How fuel efficient your bike is? 5. What is the top speed (km/hs) of your bike? 6. Are you aware about the 150cc bike brands available in the market? •
Fully aware
•
Aware
•
Less aware
7. Which of the following model/brand of 150cc motorcycle you like the most – 1
2
3
•
HONDA (Unicorn)
--
--
--
•
BAJAJ (Pulsar 150cc)
--
--
--
•
TVS
--
--
--
(Apache)
8. How did you came to know about this brand /model of 150cc bike – •
Through friends
•
Advertisement
•
Publicity
•
Family members
•
Any other
9. Which factor influence you more to purchase the bike –
10.
•
Brand image
•
Fuel efficiency
•
Price
•
Comfort
•
Style
How do you grade the following qualities•
Safety
•
Comfort
•
Fuel efficiency
•
Style
•
performance
11. Why did you prefer this model /bike? 1
2
3
4
•
Price
--
--
--
--
•
Mileage
--
--
--
--
•
After sales
--
--
--
--
--
--
--
Service •
Power
--
12. Are you satisfied with its overall performance? •
Fully satisfied
•
Satisfied
•
Average
•
Less satisfied
•
Poor
13. According to you which company gives the most benefits to customers? •
HONDA
•
BAJAJ
•
TVS
14.Which type of media influences your purchase behavior? • •
T.V
Newspaper •
Wall painting
•
Hording
•
Magazine
15. Who influenced you more in your buying decision of bike? •
Self
•
Family member
•
Friends/relatives
•
Mechanics
16. In your opinion, what role advertisement plays?
Name
•
Provides Important details
•
Creates awareness
•
Misleading
:
____________________________
Place
:
____________________________
Age
:
____________________________
Annexure 1 Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Safety
Comfort Fuel
11
13
6
8
6
7
11
11
7
5
10
11
6
5
7
8
5
9
8
11
5
1
7
10
12
efficiency Style Performance
XLSTAT 7.1 - Multidimensional Scaling (MDS) - 3/14/2007 at 4:06:41 PM Rank 1 Similarity matrix (converted to a dissimilarity matrix): workbook = Book1 / sheet = Sheet1 / range = $B$2:$F$6 / 5 rows and 5 columns 11 Uniform weighting (default) 7 No missing values 10 Metric Multidimensional Scaling 8 Multidimensional Scaling model: absolute 5 Stress used for the results: Kruskal's stress-1 Dimension of the representation space: 2 Repetitions: 10 Seed of the pseudo-random numbers generator: 4145765104 Iterations: 50 Convergence: 0.0001
Rank 2 13 11 11 5 1
Space with 2 Dimensions: Model: Dij= Pij
Observation coordinates: Observation Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Dim1 -0.649 -4.633 -1.495 2.140 4.637
Dim2 2.254 0.143 -0.010 -0.768 -1.620
Rank 3
Rank 4
6 11 6 9 7
8 7 5 8 10
Rank 5 6 5 7 11 12
Distances measured in the representation space:
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Ideal distances calculated using the model (disparities):
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Residual distances:
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Rank 1 0 4.509 2.417 4.112 6.554
Rank 2 4.509 0 3.141 6.833 9.437
Rank 3 2.417 3.141 0 3.713 6.341
Rank 4 4.112 6.833 3.713 0 2.639
Rank 5 6.554 9.437 6.341 2.639 0
Rank 1 0 5.000 2.000 4.000 7.000
Rank 2 5.000 0 1.000 7.000 11.000
Rank 3 2.000 1.000 0 3.000 5.000
Rank 4 4.000 7.000 3.000 0 2.000
Rank 5 7.000 11.000 5.000 2.000 0
Rank 1 0 -0.491 0.417 0.112 -0.446
Rank 2 -0.491 0 2.141 -0.167 -1.563
Rank 3 0.417 2.141 0 0.713 1.341
Rank 4 0.112 -0.167 0.713 0 0.639
Rank 5 -0.446 -1.563 1.341 0.639 0
Comparative table:
Pair Rank 2 - Rank 3 Rank 4 - Rank 5 Rank 1 - Rank 3 Rank 3 - Rank 4 Rank 1 - Rank 4 Rank 3 - Rank 5 Rank 1 - Rank 2 Rank 1 - Rank 5 Rank 2 - Rank 4 Rank 2 - Rank 5
Dissimila rity 1.000 2.000 2.000 3.000 4.000 5.000 5.000 7.000 7.000 11.000
Disparity 1.000 2.000 2.000 3.000 4.000 5.000 5.000 7.000 7.000 11.000
Distanc e 3.141 2.639 2.417 3.713 4.112 6.341 4.509 6.554 6.833 9.437
Iterations 26 23 16 26 14 22 26 19 23
Initial stress 1.076 0.746 0.604 0.633 0.658 0.644 0.738 0.660 0.551
Fin. stress 0.189 0.189 0.189 0.189 0.189 0.189 0.189 0.189 0.189
Summary of repetitions:
Repetition 1 2 3 4 5 6 7 8 9
Dissimi larity rank 1 2 2 3 4 5 5 6 6 7
Disparity rank 1 2 2 3 4 5 5 6 6 7
10
21
0.683
0.189
Annexure 1 Price Mileage After sales service Power
Rank 1 23 20 6 10
XLSTAT 7.1 - Multidimensional Scaling (MDS) - 3/14/2007 at 5:23:21 PM Similarity matrix (converted to a dissimilarity matrix): workbook = Book1 / sheet = Sheet1 / range = $B$2: $E$5 / 4 rows and 4 columns Uniform weighting (default) No missing values Metric Multidimensional Scaling Multidimensional Scaling model: absolute Stress used for the results: Kruskal's stress-1 Dimension of the representation space: 2 Repetitions: 10 Seed of the pseudo-random numbers generator: 766854828 Iterations: 50 Convergence: 0.0001 Space with 2 Dimensions: Model: Dij= Pij Observation coordinates: Observation Rank 1 Rank 2 Rank 3 Rank 4
Rank 2 Rank 3 Rank 4 14 9 9 12 17 1 17 16 12 7 5 22
Rank 1
Rank 2
23 20 6 10
Dim1 -1.711 -4.147 -5.108 10.965
Rank 3
14 12 17 7
Dim2 5.955 0.681 -7.816 1.179
Rank 4
9 17 16 5
9 1 12 22
Distances measured in the representation space:
Rank 1 Rank 1 Rank 2 Rank 3
0 5.809 14.184
Rank 4
13.546
Rank 2 5.809 0 8.551 15.12 0
Rank 3 14.184 8.551 0
Rank 4 13.546 15.120 18.419
18.419
0
Rank 3 17.000 6.000 0
Rank 4 13.000 16.000 18.000
18.000
0
Rank 3 -2.816 2.551 0 0.419
Rank 4 0.546 -0.880 0.419 0
Distance 5.809 8.551
Dissimila rity rank 1 2
13.546 15.120
3 4
Ideal distances calculated using the model (disparities):
Rank 1 Rank 1 Rank 2 Rank 3
0 3.000 17.000
Rank 4
13.000
Rank 2 3.000 0 6.000 16.00 0
Residual distances:
Rank 1 Rank 1 Rank 2 Rank 3 Rank 4
0 2.809 -2.816 0.546
Rank 2 2.809 0 2.551 -0.880
Comparative table:
Pair Rank 1 - Rank 2 Rank 2 - Rank 3
Dissimilarity 3.000 6.000
Rank 1 - Rank 4 Rank 2 - Rank 4
13.000 16.000
Dispa rity 3.000 6.000 13.00 0 16.00
Rank 1 - Rank 3
17.000
Rank 3 - Rank 4
18.000
0 17.00 0 18.00 0
Iterations 19 19 11 18 13 17 32 9 24
Initial stress 0.992 1.510 0.682 0.699 0.492 0.504 0.302 0.426 0.279
14.184
5
18.419
6
Fin. stress 0.149 0.149 0.149 0.149 0.149 0.149 0.149 0.149 0.149
Summary of repetitions:
Repetition 1 2 3 4 5 6 7 8 9
10
17
0.530
0.149
Chi-square test Honda
TVS
BAJAJ
f
Price
4
5
23
32
Brand
24
4
14
42
Fuel Efficiency
10
6
18
34
Style
6
12
32
50
Comfort
17
5
20
42
f
61
32
107
200
XLSTAT 7.1 - Tests on Contingency Tables (Chi-square...) - 3/15/2007 at 10:27:52 AM Data: workbook = Book1 / sheet = Sheet1 / range = $B$2:$D$6 / 5 rows and 3 columns
Independence tests between the rows and columns in the contingency table: Chi-square test: Chi-square (observed value) Chi-square (critical value) DF One-tailed p-value Alpha
30.286 15.507 8 0.000 0.05
Decision: At the level of significance Alpha=0.050 the decision is to reject the
null hypothesis of independence between the rows and the columns. In other words, the dependence between the rows and the columns is significant. Chi-square likelihood ratio test (Wilks' G²): Wilks' G² (observed value) Wilks' G² (critical value) DF One-tailed p-value Alpha
31.031 15.507 8 0.000 0.05
Decision: At the level of significance Alpha=0.050 the decision is to reject the null hypothesis of independence between the rows and the columns. In other words, the dependence between the rows and the columns is significant.
Table of the statistics testing the independence rows/columns:
Chi-square Wilks' G²
Value 30.286 31.031
Table of the coefficients: Coefficient Pearson's Phi Cramer's V Tschuprow's T Contingency coefficient Theil's U (R|C) Theil's U (C|R) Averaged Theil's U Goodman and Kruskal tau (R|C) Goodman and Kruskal tau (C|R) Averaged Goodman and Kruskal tau
Value 0.389 0.275 0.231 0.363 0.049 0.078 0.060 0.040 0.086 0.063
DF 8 8
p-value 0.000 0.000
