Factors Include in a bike purchase decision

Indore Management Institute And Research Center

A STUDY ON THE FACTORS INFLUENCING TO PURCHASE A BIKE Research and Compiled By:

Prabhat Chakradhari MBA 3rd Sem (H.R.M/Marketig)

ASSIGNMENT ON A STUDY ON THE FACTORS INFLUENCING THE PURCHASE OF BIKES

Research and Compiled By: Prabhat Chakradhari.

MBA 3rd Sem (H.R.M/Marketig)

Submitted To: [email protected]


Prof. Manupriya Gaur DECLARATION

I hereby declare that this project titled “A STUDY ON THE FACTORS INFLUENCING THE PURCHASE OF BIKES” submitted by me to Prof. Manupriya Gaur, is a bonafide work carried by me under the guidance of Prof. Manupriya Gaur. This has not been submitted earlier to any other University or Institution for the award of any degree diploma/ certificate or published any time before.

Place: Indore

Prof. Manupriya Gaur

Date:

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DEDICATION I dedicate my project to my mother and father who both supports and encourages me at every stage of my life especially in this project and also my teachers and Priyanka for their guidance and moral support in completion of this project. “My Wishes to Them”

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ACKNOWLEDGEMENT I would like to thank my Faculty members as well as the management of IMIRC who gave me lots of help and suggestions. Special thanks to Prof. Manupriya for helping me a lot and providing valuable suggestions, guidelines and moral support. I would also like to thank The Director Mr. Jayant K Mohoparta. I also like to thank Priyanka who helps me a lot whenever I needed especially in gathering the information.

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Table of Contents Preface..........................................................................................................................................

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CHAPTER 1 INTRODUCTION INTRODUCTION GENERAL INTRODUCTION TO THE STUDY Two-Wheeler industry is one of the largest industries in the automobile sector of global market. Being the leader in product and process technologies in the manufacturing sector, it has been recognized as one of the drivers of economic growth. During the last few decades, well¬-directed efforts have been made to provide a new look to the automobile policy for realizing the sector's full potential for the economy. The liberalization policies have led to continuous increase in competition which has ultimately resulted in modernization in line with the global standards as well as in substantial cut in prices. Aggressive marketing by the auto finance companies have also played a significant role in boosting automobile demand, especially from the population in the middle income group. Presently many international brands like Honda, Suzuki, etc. are competing with Indian brands such as Bajaj, Enfield etc. to capture Indian markets. These aggressive marketing strategies have resulted in making the consumer the major key for success in the industry. Each product offering is now designed to meet and exceed the expectations of the consumer. But understanding consumer behaviour and knowing consumers is never simple. And it is more difficult that to understand what a consumer perceives about the product. Customers may say one thing but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their minds at the last moment.

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THEORETICAL BACKGROUND OF STUDY Market The term market may be considered as a convenient meeting place where buyers and sellers gather together for the exchange of goods and services. Market means a group of people having unmet wants, purchasing power to make their demand effective and the will to spend their income to fulfill those wants. Today a market is equated with the total demand. The American marketing association defines a market, ‘as the aggregate demand of potential buyers for a product or service’. Under keen competition, a marketer wants to create or capture and retain the market i.e. customer demand through an appropriate marketing mix offered to a target market. The market offering i.e. supply must meet customer demand, which are unmet needs and desires. Marketing Marketing is a comprehensive term and it includes all resources and set of activities necessary to direct and facilitate the flow of goods and services form the producer to the consumer through the process of distribution. Businessmen regards marketing as a management function to plan promote and deliver products to the clients or customers. Human efforts, finance and management constitute the primary resources in marketing. We have twin activities, which are most significant in marketing: 1. Matching the product with demand i.e. customer needs and desires or the target market. 2. The transfer of ownership and possession at every stage in the flow of goods from the primary producer to the ultimate consumer. The American marketing association defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

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Indore Management Institute And Research Center Marketing Management Marketing management represents an important functional area of business management efforts for the flow of goods and services from the producer to the consumers. It looks after the marketing system of the enterprise. It has to plan and develop the product on the basis of known customer demand. Marketing management may be defined as, ‘a process of management of marketing programs for accomplishing organizational goals and objectives’. Marketing management has to build up appropriate marketing plan or marketing mix to fulfill the set goals of the business. It has to formulate sound marketing policies and programs. It looks after their implementation and control. It has to implement marketing strategies, programs and campaigns. It must evaluate the effectiveness of each part of marketing mix and introduce necessary modifications to remove discrepancies in the actual execution of plans, policies, strategies, procedures and programs. Marketing Mix Marketing mix is the set of marketing tools the firm uses to pursue its marketing objectives in the target market. There are four elements or variables that make a marketing mix, they are: 1. Decisions on product or service. 2. Decisions on promotion 3. Decisions on price 4. Decisions on distribution. The four ingredients are closely interrelated. Under the systems approach the decision in one area affects action in the other. Marketing mix decisions constitute a large part of marketing management. According to Philip Kotler the term marketing mix is, ‘the set of controllable variables that the firm can use to influence the buyers response’. In the simplest manner, the basic marketing mix is the blending of four inputs or sub mixes, which form the core of the marketing system. Product mix decision refers to decisions on product variety, quality, design, features, brand image, packaging, sizes, services, warranties and returns.

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Indore Management Institute And Research Center Price mix decision refers to decisions on the product list price, discounts, allowances, and payment period and credit terms available. Place mix decision refers to decisions on the channels, coverage, assortments, locations, inventory and transport of the market offering. Promotion mix decisions refer to decisions on the products advertising, sales promotion, sales force, public relations and direct marketing. Together they form the four P’s of marketing. Marketing Planning A marketing plan lies down in writing the marketing objectives, programs and policies to be adopted to achieve the set marketing objectives. Even before an integrated marketing plan is prepared the company shall prepare functional plan for each component of marketing mix. To have a sound marketing plan, every operation is to be examined and the problems are to be identified. The overall marketing plan should be linked to the distribution channel of the company to have effective marketing operations. The marketing planning covers the preparation of functional plans, integration of this plan and the preparation of master marketing plan to serve the objective of the organization. Marketing planning is bound to get a better hold of environmental factor. Marketing Research Marketing research is the systematic gathering, recording and analyzing of the data about problems connected to the marketing of goods and services i.e. problems relating to product, price, promotion and distribution of the 4p’s of the marketing mix. Marketing research is concerned with all those factors, which have a direct impact upon the marketing of products and services. Marketing research has grown along with the expanded role of marketing as the focus for the business decision-making. Need of marketing research Marketing research is conducted for different purposes. They are: 1. To estimate the potential market for a new product. 2. To know the reactions of consumers to a product already existing in the market. 3. To find out the general marketing condition and tendencies. 4. To know the types of consumer buying and their buying motives. 5. To know the reactions of failure of a product already in the market.

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Indore Management Institute And Research Center 6. To assess the strength and weakness of competitors. Consumer A person who purchase or has the capacity to purchase the goods of service often for sale by the marketing firm in order to satisfy personal need and desires. Perception Perception is the sensing of stimuli external to the individual organism the act or process of comprehending the world in which the individual exists. Perception has been defined by social psychologists as the “Complex process” by which people select organize and interpret sensory stimulation in to a meaningful and coherent picture of the work. Attitude Social psychologist defined attitude as an emotionalized predisposition to respond positively or negatively to an object. Predisposition can be thought of as categories of meaning stored in the memory of a person and are based on previous experience. Predisposing the person to have in specific manner towards a certain objects in the environment. Brand A brand is a name, term, symbol, design or a combination of them which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. Consumer Behavior The term consumer behavior can be defined, as, ‘the behavior that the consumer display in searching for, purchasing, using and evaluating products, services and ideas, which they expect, will satisfy their needs’. The study of consumer behavior enables marketers to understand and predict consumer behavior in the market place; it also promotes understanding of the role that consumption plays in the lives of individuals. Consumer behavior refers to all psychological social and physical behavior of potential consumers as they become aware of, evaluate, purchase and consume and tell others about products and services. It is the pattern of response of buyers to marketing offer of a firm. It refers to the process as how consumers make their purchase decisions. It is concerned with

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Indore Management Institute And Research Center what, why, how much, when and from whom buyers make their purchases of goods and services.

Model of consumer behavior The starting point of understanding consumer behavior is the stimulus-response model. Marketing and environmental stimuli enter the buyer’s consciousness. The buyer’s characteristics and decision process lead to certain purchase decisions. The marketer’s task is to understand what happens in the buyer’s consciousness between the arrival of outside stimuli and the buyers purchase decisions. 7O’s of Consumer Behavior Occupants. Are the one who are the creator of the market than an industry to its vertical growth through their marketing efforts and creative marketing strategy by generating need in consumers mind. Objects. Can be defined as goods or services offered to the market which can be accepted in the market and sold. Objectives. Why does the market buy, its creating and generating need in customers mind by analyzing consumer behavior and influences or the driving force to buy. Organizations. Is the one which participates In the market to satisfy consumers needs and wants by producing goods and services. Operations. How does the market buy a particular goods and services that consists marketing mix and strategies to serve the market. Occasions. Is one of the important factor in influencing consumers purchasing behavior as there are some products which are bought occasionally. Outlets. Where the consumer buys things from is one of the driving force in consumer behavior as consumers will prefer to purchase goods from places nearby and some special goods from special locations.

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Major Factors Influencing Consumer Behavior Consumers buying behavior is influenced by cultural, social, personal and psychological factors. Cultural Factors Cultural factors exert the broadest and deepest influence on consumer behavior. The roles played by the buyers culture, subculture and social class are particularly important. ○ Culture Culture refers to that complex whole which includes in it knowledge, beliefs, art or anything man acquires as a member of society. ○ Subculture Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Sub cultures include nationalities, religions, racial groups and geographic regions. ○ Social Class Virtually all-human societies exhibit social stratification. Stratification sometimes takes the form of a caste system where the members of different castes are reared for certain roles and cannot change their caste membership more frequently; stratification takes the form of social class. Social Factors ○ Reference Groups

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Indore Management Institute And Research Center A persons reference groups consists of all the groups that have a direct or indirect influence on the person’s attitudes or behavior. ○ Family The family is the most important consumer buying organization in the society and it constitutes the most influential primary reference group. ○ Roles and statuses A person participates in many groups, family, clubs, organizations etc. The person’s position in each group can be defined in terms of role and status. A role consists of the activities that a person is expected to perform. Each role carries a status.

Personal Factors ○ Age and stage in the life cycle People buy different goods and services over their lifetime. Taste in clothes, furniture and recreation is all age related. Consumption is shaped by the family life cycle. Marketers often choose life-cycle groups as their target market. ○ Occupation and economic circumstances Occupation also influences a person’s consumption pattern. Product choice is greatly affected by economic circumstances; spendable income, savings and assets, debts, borrowing power and attitude toward spending versus saving. ○ Lifestyle People from the same subculture, social class, and occupation may lead quite different lifestyles. A lifestyle is the person’s pattern of living in the world expressed in activities, interests and opinions. Lifestyle portrays the world person interacting with his or her environment. ○ Personality and self concept Each person has a distinct personality that influences buying behavior. It is that distinguishing psychological characteristics that lead to relatively consistent and enduring [email protected]

Indore Management Institute And Research Center responses to environment. Related to personality is self-concept or self image. Marketers try to develop brand images that match target markets self image. Psychological Factors ○ Motivation A person has many needs at a given time. A need becomes a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act. ○ Perception Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. How a, motivated person actually acts is influenced by his or her perceptions of the situation.

○ Learning When people act they learn. Learning involves changes in an individual’s behavior arising from experience. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues and positive reinforcement. ○ Beliefs and attitudes Through doing and learning, people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. The beliefs make up product and brand images and people act on these images. An attitude is a person enduring favorable or unfavorable evaluations, emotion feelings and action tendencies toward some object or idea. Thus a company would be well advised to fit product into existing attitudes rather than try and change people’s attitudes.

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CHAPTER 2 RESEARCH DESIGN RESEARCH DESIGN

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Indore Management Institute And Research Center Introduction The two-wheeler industry in India has grown rapidly in the country since the announcement of the process of liberalization in 1991 by the then finance minister Dr. Manmohan Singh, now Prime Minister of India. Previously, there were only a handful of two-wheeler models available in the country. Currently, India is the second largest producer of two-wheelers in the world. It stands next only to China and Japan in terms of the number of two-wheelers produced and the sales of two-wheelers respectively. In the year 2005-2006, the annual production of two-wheelers in India stood at around 7600801 units. The trend of owning two-wheelers is due to a variety of facts peculiar to India. One of the chief factors is poor public transport in many parts of India. Additionally, two-wheelers offer a great deal of convenience and mobility for the Indian family. Bajaj auto began trading in imported Vespa Scooters in 1948. Meanwhile Automobile Products of India (API) commenced production of scooters in the country in the early 50’s. Until 1958, API and Enfield were the only producers of two-wheelers in India. However, Bajaj signed a technical collaboration in 1960 with Piaggio of Italy to produce Bajaj Scooters. This deal expired in 1971. The condition of motorcycle manufacturers was no different. Until the mid 80’s, there were only three major motorcycle manufacturers in India namely Rajdoot, Escorts, and Enfield. The two-wheeler market was opened to foreign manufacturers in the mid 80’s. The industry, which had seen a smooth ride before, faced fierce foreign competition. Motorcycle companies like the Yamaha, Honda, and Kawasaki, set up shop in India in collaboration with various Indian two-wheeler companies. Companies like Escorts, Rajdoot and faced immense competition from smaller 100 cc Japanese technology motorbikes. Bikes manufactured by Hero Honda, the only company manufacturing four-stroke bikes at that time, gained massive popularity. In the mid 80’s, Kinetic introduced a variomatic gearless scooter in collaboration with Honda. This scooter became instantly popular with the younger generation, especially people who found it difficult to use geared scooters. The introduction of scooterettes created another segment for people such as women and teenagers who could not get used to driving either motorcycles or gearless scooters. Many companies such as Kinetc, TVS, and Hero also started manufacturing mopeds that proved immensely popular with people who wanted a simple riding machine. The change in the government’s policy owning to pollution control norms and the Kyoto agreement saw the phasing out of two stroke two-wheelers from production. Currently there are around 10 two-wheeler manufacturers in the country, they being Bajaj, Hero, Hero Honda, Honda, Indus, Kinetic, Royal Enfield, Suzuki, TVS, and Yamaha. The latest trend in the two-wheeler market is the introduction of electrically operated vehicles from a range of manufacturers such as Indus and Hero. These can be recharged from convenient household electrical points. The only disadvantage is speed, which is restricted to around 25 miles per hour. Currently, the motorcycle market is witnessing a demand for higher volume engines. Previously, the 100 c bikes were very popular owning to the high fuel efficiency offered. However, the market is maturing fast. Sensing this movement, Bajaj has introduced the Bajaj Pulsar, with 150, 180 and 200 cc engines with Dual Twin Spark Ignition (DTSi) technology. Continuing with monthly report of the sales figures of Indian bikes, here it presents the consolidated results for the month of July 2009. July has been the month which could safely be called as the best month for the Indian two wheeler industry after the black clouds of

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Indore Management Institute And Research Center recession. All the manufacturers performed well and the momentum definitely seems to be picking up. Let’s see how well the respective companies performed figurewise. Hero Honda: The leader of the industry for a long time now, continues its dominance with a huge gap. They reported an impressive 30.39 percent rise in sales compared to July 2008. Hero Honda sold 3,66,808 motorcycles compared to 2,81,317 sold in July 2008. The company reported a huge jump of 83.28 percent in its net profit at Rs. 500.11 crore for the previous quarter ended June 30. Net profit for the first quarter for the last fiscal was at Rs 272.87 crore. With a domestic market share of more than 59 percent, Hero Honda is in the strongest position in the history of Indian market claimed Pawan Munjal, CEO and MD of Hero Honda . With each passing month the strength of the brand gets even stronger and with the company’s concentration on volume selling models, it is expected to just grow bigger. Forthcoming launches expected from the company are ultra low cost 75cc and 110cc fuel efficient bikes which would be priced at Rs. 20,000 along with the much touted upgrade for Karizma. Bajaj Auto: After some dismal sales for the past few months, July was easily the best month for Bajaj. The company reported almost a negligible drop in sales. Bajaj sold a total of 1,92,835 vehicles this month as compared to 1,93,704 sold in July 08 with a positive change in the total vehicles exported which stood at 68,585 units in July 09 as compared to 67,253 units last July. Individually, Bajaj sold 1,68,163 motorcycles compared to 1,68,836 sold last July and a total of 1,68,731 two wheelers against 169,971 in July 08. With some good results coming their way, Bajaj announced an increase in their Pulsar’s production capacity to 50,000 bikes per month last month. This month, owing to good sale figures and good future prospects along with some dashing recent bikes in the market, Bajaj has announced an increase of domestic motorcycle production by about 25 percent in the forthcoming months. Bajaj reported that they sold about 10,000 units of the latest 100cc Discover DTS-Si already which was launched on 17 July 2009 and the plans for August are close to 20,000 units. It also reported that with some fantastic launches recently Bajaj has been able to match their year on year sales for the first time after the downturn last year. The company is also expected to launch a new entry level commuter bike along with Avenger getting the 220cc DTSi engine from the Pulsar 220 DTSi, though there is still no word on the launch of the much awaited Kawasaki Ninja 250R. TVS Motors: Standing third in terms of motorcycle sales in India is the Chennai based TVS Motor Company which posted a 2 percent increase in July 2009. TVS sold 1,20,994 units as against 1,18,545 units sold during the same month last year. If we talk about the domestic sales, TVS sold 1,07,883 units in July 09 as compared to 1,02,530 units in July 2008 registering a 5 percent growth in sales. Due to a strong demand for the recently launched Apache RTR 180 and Flame SR 125, motorcycles contributed the majority of sales contributing 42,998 units in July 09 but were lower than July 08 wherein the company sold 54,042 units. With the recent launch of TVS Scooty Streak, which contributed a significant part to the overall scooter sales, the total scooter sales increased by a healthy 15 percent with 27,673 units in July 09 compared to 24,156 units sold during July 08. Contrary to the case of Bajaj (where exports have become stable), TVS reported a drop in sales selling 13,061 units of two wheelers in July 2009

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Indore Management Institute And Research Center against 16,015 units sold in July 08. Forthcoming launches from TVS are expected to be concentrated on the entry level commuter segment and scooters along with a powerful bike. HMSI: Honda seems to be on a rampage with both of its arms registering impressive growth over the last few months. HMSI recorded its highest ever monthly sales of 1,12,855 units, compared to the 85,343 units sold during the same month last year which included domestic and exports marking an impressive hike of 32.24 percent in total sales. The newly revamped Activa seems to be spreading the same magic as its earlier predecessor did which helped HMSI sell 67,107 units of scooters with Aviator and Dio also adding a bit to the overall pie. Last July, this figure stood at 57,620 units. Motorcycle sales rose to a new high of 45,748 units compared to the 27,723 units sold in July 08, which were a significant 65 percent higher than July 08. Combined sales of Hero Honda and HMSI were close to 4.8 lakh units which clearly indicate the sort of a premium and trust the biggest brand in the world commands in India. Future launches from HMSI are expected to be a premium 100cc bike which would help the company further in their sales. Yamaha: It seems like Yamaha has stuck the right chord among the youth with its ultra stylish series of bikes. For many months now, they have been registering a growth in sales, negating the effect of the fact that their bikes are priced at a premium and are targeted more towards the image conscious and performance seeking crowd. This month Yamaha Motor India (IYM) reported a 46.85 percent increase in sales at 17,316 units compared with the 11,792 sold during July 08. Yamaha launched the new variant of the FZ series, the Fazer, this month along with inaugurating a new manufacturing facility at Surajpur, Uttar Pradesh. Forthcoming launches are expected to be more concentrated towards the volume and premium 125cc segments. Suzuki: Suzuki, the youngest player in India, also recorded an impressive increase in sales of 20.35 percent this July which stood at 12,585 units compared with 10,457 units sold during July 08 majorly lead by the perfectly positioned GS150R. Scooter sales also increased where Suzuki has the 125cc Access.

Review of Literature The Customer Perception Report includes questions in four key areas, Expectations, Purchase Decisions, Customer Service, and Future Purchases. So the customer should be invited to participate in the survey. Setting realistic expectations during the sales process is a vital component of making happy customers. How a company sets and meets product and service

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Indore Management Institute And Research Center expectations plays a pivotal role in fashioning customer opinions. How a company meets or exceeds expectations is measured in three important areas: product/service, support, and price. These three areas will be used to factor a score for the Expectations category. The results of the three questions will be used to factor an overall expectations perception score. The Purchase Decision category gives us a better understanding of how the customer perceives the purchase process. Two key areas for questions include an open ended question on why they purchased and a ratings question on their experience. The rating Question data will be used for the analysis of Purchase Decision category. The open ended responses from the “Why” questions will be used for product strengths analysis. The results of the purchase experience question will be used for the overall Purchase perception analysis. Customer service is one of the most important differentiations a company can have. For this report, customers will rate a company in three key areas: customer service, timeliness for problem resolution, and expertise. These three areas will be used to factor a score for the Customer Service category. Purpose of Literature Review Literature review is one of the prime parts of every project. The very basic purpose of the literature review is to gain insight on the theoretical background of the research problem. It helps the researcher to gain strong theoretical basis of the problem under study and also help to explore whether any one has done research on the related issue. That’s why literature review helps one to find out the path of problem solving. In this regards the very basic purpose of the literature review in this dissertation is same as mentioned Statement of the Problem We want to find out the main buying factor which influence towards the buying decision of motor cycle, choice of brand, budget limitation, mobility convince, parking problem, and maintenance at low cost. Need of the study We observed that in a last few decades, peoples are mostly liken to acquire the motorbikes for daily usage, and we also observed due to this buying trend so many new companies arrive [email protected]

Indore Management Institute And Research Center in India to introduce new brands in India Market. There is no doubt that the old companies market share is falling down. So this study will help to understand and identify what the consumer feels or perceives about motor bikes. This will help the marketer to identify which all are the factors that a consumer looks in to when he selects a particular bike. And also explains how a consumer selects and interprets the qualities of bike. Objectives of the Study The research has been undertaken with following hypothesis: 1. To analysis people perception towards the motor cycle brands. 2. To get feedback what people expect from motor cycle. 3. To analyze people perception towards services offered by different makes performance of the motor cycle. 4. Analysis financial factor influence buy process of motor cycle

Methodology The research will be done through survey method. The collection of data will be done through, focus group interview. The sample size taken for this research is 20 customers those who are having motor bikes. The area of this survey consists of IMIRC and Indore City. The collection of data will be done with the help of focus group interview. The designing of questionnaire needs precision and classification of the subject, so that the respondents can easily understand the question and can answer it sincerely and correctly.

Sources of Data

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Primary data:Primary data consists of original information for the specific purpose at hand. It is first hand information for the direct users of respondents. The tools used to collect the data may vary and can be collected through various methods like questionnaire, personal interview Secondary data:Secondary data is the data which is already been collected and assembled. This data is available with the companies or firms and it can be collected from newspapers, periodicals, magazines, websites etc. Sample Design Sample The sample size taken for this research is 20 customers having motorbikes. Sampling Technique Convenient Sampling technique is used for this assignment. Data Collection Tool Focus group interview will be used for collecting data. Statistical techniques 1. Bar Diagrams 2. Pie-Chart Scope of the study:The study helps in having an awareness of customer satisfaction towards motorbike usage. As the vehicle had a good convenient transportation in India, this study will help to know that how motorcycle increase their grip in vehicle industry. It also helps us to increase our practical knowledge towards marketing of a motorbike.

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Indore Management Institute And Research Center Limitations of the study:a) In this study it is not possible to collect the opinion of all the customers owing to personal constraints. So the assumptions are drawn on the basis of the information given by the respondents. b) The study needs to be completed within a specified time of one weak and in certain restricted areas. So the findings cannot be generalized as a whole.

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CHAPTER 3 ANALYSIS OF DATA COLLECTED

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Analysis of the Data Collected Age of the Respondents AGE

NO. OF

% OF

RESPONDENTS

RESPONDENTS

18-20

5

25%

22-25 30 and above

10 5

50% 25%

Total

20

100%

Pie 1 Analysis: 50% of the participants of the survey were between 22-25 age group and second most participants were between 18-22 age group as well as 30 and above. There were only 20 participants responded.

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Occupation of the Respondents Table No 2

No of Respondents

Occupation Employee student Total

% of Respondents

5 15 20

25% 75% 100%

Occupation of the Respondents

Analysis: The majority of respondents participated in the survey were students. There were 75% students and the 25% employees.

Q1. You purchase a bike because of its style and look?

No. of Respondent

Response

A B C D

5 5 5 5

Agree 4 Disagree 1 Agree 4 Disagree 1 Agree 4 Disagree 1 Agree 2 Disagree 3

Total

20

Agree 70% Disagree 30%

Group

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Indore Management Institute And Research Center Analysis:According to the response given by the respondents define style and look is the most influencing factor In bike purchase decision.

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Q2. You purchase a bike because of its power? No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

Analysis:Through this question I noticed that power in a bike is also a most concerning factor that can influence a purchase decision.

Q3. You purchase a bike because of its fuel efficiency?

No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

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Analysis:This question found one more important fact that fuel efficiency in a bike is not a biggest concern for new generation customers they want power along with little fuel efficiency as compare to other factors.

Q4. You purchase a bike because of its reliability? No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

Analysis:One surprising outcome came from this question that customers are less concerned about reliability In a bike.

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Q5. You purchase a bike because of its technology? No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

Analysis:If there is no latest technology in the bike it will not hamper customers purchase decision as long as such factors like power, looks, style are there.

Q6. You purchase a bike because of a trust on the Company?

Group A B C

No. of Respondent

Response

5 5 5

Agree 3 Disagree 2 Agree 3 Disagree 2 Agree 5 Disagree 0

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5

Agree 5 Disagree 0

Total

20


Analysis:The response defines that customer are more brand conscious they will purchase a bike from a trusted company.

Q7. You purchase a bike because of its better post sales service?

No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

Analysis: The results are equal as 50% customers are focused towards post sales service and 50% are not concerned.

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Q8. You purchase a bike because of less maintenance cost? No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

Analysis:The response to the question says customers are generally not conscious about maintenance cost however they may take it as a factor In there bike purchase decision.

Q9. You purchase a bike due to a status symbol?

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No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

Analysis: The response defines having a bike for status symbol matters to the customers now we can perceive that perhaps customers taste have changed.

Q10. You purchase a bike by being influenced by endorsement?

No. of Respondent

Response

A B C D

5 5 5 5


Total

20


Group

Analysis: [email protected]

Indore Management Institute And Research Center The response to the question is interesting as the customers will get influenced by an ideal person in the advertisement however a creative advertisement may help them In making a bike purchase decision.

Final Outcome

Analysis:Analysis to these bars is give through Findings and conclusion.

CHAPTER 5 FINDINGS AND CONCLUSION

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FINDINGS The old prophecy that once a customer is a customer has become a myth in the present days competitive world. Brand image is still a magic with the consumer. So to hold the customer to the brand and attract new consumers the companies must produce products those are efficient and competent along with its marketing activities that help in sales of the product. After analyzing the response of the consumers interviewing through focus group and observation the following were found in the study. •

Now a days the main customers are youngsters between 20-30 years of age.

•

Customers using motorbikes have almost monthly income between 10,000 and 20,000.

•

Bikers are influenced to make acquiring decision from friends and relatives. Also an advertisement plays a vital role in influencing the consumers.

•

The greater part is that the customers have complete knowledge about motorbike before customer buys a motorbike.

•

The majority of respondent are using bikes for personal purpose as well as professional purpose.

•

Motorbikes performance is good revealed by their personal experience of using the bike.

•

The motorbike customers will get satisfied about the availability of its spare parts post purchase.

•

Most of the consumers those who participated in the survey ranked Quality. Look and Power as most attractive attribute of motorbikes.

•

The performance of motorbikes is one of the influencing factors for the customers to buy a bike.

•

The customers preferred acquiring selected brands.

•

The customer wants that company should provide post sale service to the motorbikes.

•

The customer prefers that expert mechanics should be easily available.

•

The customers prefer local mechanics for maintenance and service of their bikes as compared to service center of motorbikes. [email protected]


CONCLUSION From this study, i found that motorbikes are highest buying trends in auto industry of India because it is convenient transportation mode in their respective cities. So I can conclude the following factor: •

Low income families prefer acquiring motorbikes.

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Mostly age group 20 to 30 years and youngsters want to purchase a bike.

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Most of the people get influenced to acquire motorbikes from getting information from friends and relatives, and advertisement.

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I can also say that In today’s scenario information and media is playing a very important role to motivate the customers in order to make a purchase decision, a customer gathers relevant information about a product before he or she buys it.

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Brand consciousness seems to be a bit changed or very less changed in a bike purchase decision, for example a customer using Bajaj’s bike may switch to Yamaha’s bike.

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Looks and Style have been a major factor in influencing and motivating a customer to purchase a bike as we can say like Yamaha launched its executive bike namely FZ 150cc which made differences In the market because its major competitor Pulsar 150cc, 180cc, 200cc, 220cc. And Hero Honda Karizma. Are highly powerful built up engine bikes, however the look and style of Yamaha FZ 150cc attracted youngsters and also sold heavily as a most recent bike. (cc / cubic capacity)

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In flash back Looks and Style along with power. Bajaj Pulsar 150cc, 180cc, 200cc, 220cc. As well as Hero Honda Karizma, CBZ, and TVS Apache RTR 160cc, 180cc skimmed Indian market because of creative looks and ultimate power (80km within 6sec) and top speed 135 KMPH (Kilometers per hour)

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Now major bike manufacturers like Bajaj, Suzuki, Yamaha are going to launch their executive bikes with extra ordinary power which is above 250cc by 2012.

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BIBLIOGRAPHY

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BIBLIOGRAPHY TEXTBOOKS REFERRED

• Consumer Behavior (Munish Vohra) • •

Consumer Behavior & Marketing Research (Suja. R. Nair) Research Methodology (S.L.Gupta)

WEB SITE REFERRED •

www.google.com

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www.yahoo.com

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www.wikipedia.com

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www.ask.com

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APPENDICES

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Questionnaire Questionnaire for this survey was unstructured and there were 10 questions as follows. Q1. You purchase a bike because of its style and looks? Q2. You purchase a bike because of its power? Q3. You purchase a bike because of its fuel efficiency? Q4. You purchase a bike because of its reliability? Q5. You purchase a bike because of its technology? Q6. You purchase a bike because of a trust on the company? Q7. You purchase a bike because of its better post sales service? Q8. You purchase a bike because of its less maintenance cost? Q9. You purchase a bike because of a status symbol? Q10. You purchase a bike by being influenced by endorsement?

Initially this questionnaire was tested through personal interview with 7 students at IMIRC.

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ASSIGNMENT ON A STUDY ON THE FACTORS INFLUENCING THE PURCHASE OF BIKES

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Factors Include in a bike purchase decision

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