A Project Report on

A Study on CONSUMER BUYING BEHAVIOUR at

HYDERABAD

A Project Report submitted to JNTUH in partial fulfillment of the

requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION By

VIKRANTREGD.No.10311E0004

Under the guidance of

Mr.

DEPARTMENT OF MANAGEMENT STUDIES

Sreenidhi Institute of Science & TechnologyApproved by A.I.C.T.E, New Delhi, Accredited by NBA,

Affiliated to JNT University, HyderabadHyderabad – 500082.

CERTIFICATE

1

This is to certify that the project report titled “A Study on

Performance appraisal system” carried out in IVRCL Limited,

Hyderabad is being submitted by K.Srujana (10311E0038), in

partial fulfillment for the award of Master of Business

Administration to the Jawaharlal Nehru Technological

University, is a record of confide work carried out by her under

my guidance and supervision. The results embodied in this thesis

have not been submitted to any other University or Institute for the

award of any Degree or Diploma.

Project guide: Head of the Department/Director

Mr. Dr.Y.SATHYANARAYANA

Asst.Professor SMS,SNIST

DECLARATION

2

I hereby declare that this Project Report entitled “A Study on

Consumer buying behaviour” at infrastructures and projects

limited; HYDERABAD is a bonafied work done by me for the

award of degree of Master of Business Administration submitted

to JNT University, Hyderabad. The results embodied in this thesis

have not been submitted to any other University or Institution for

the award of any Degree/Diploma Certificate or Published any time

before.

Place:

Date (vikrant)

ACKNOWLEDGEMENT

3

I am thankful to Mr. M.Lenin Babu M.B.A, Asst.Professor for being my

project guide..

My profound thanks to Dr.Y.Satyanarayana, , Director, SMS , Sreenidhi

Institute of Science & Technology, who was patient in giving direction to my

project in his capacity.

I would like to thank IVRCL, HYDERABAD for giving me an

opportunity to undergo an project in their esteemed organization.

I express my sincere gratitude to Mr.P.RAMESH (Manager – HR &

Admn) and other personnel staff for guiding and encouraging me to the

completion of project on time.

I am thankful Dr.V.Vasudeva Rao, Principal and Dr.P.Narasimha

Reddy, Director of Sreenidhi Institute of Science & Technology, for making it

convenient to under take a project work.

(VIKRANT)

INDEX

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TOPIC PAGE NO

CHAPTER 1 INDUSTRY PROFILE COMPANY PROFILE INTRODUCTION TO CONSUMER BEHAVIOUR

CHAPTER 2 OBJECTIVES OF THE STUDY NEED & SCOPE OF THE STUDY RESEARCH METHODOLOGY

DATA ANALYSIS

DATA SOURCE

CHAPTER 3 DATA ANALYSIS & INTERPRETATION

CHAPTER 4 FINDINGS SUGGESTIONS

ANNEXURE

BIBLIOGRAPHY

5

Chapter-1

INDUSTRY PROFILE

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Automobile industry in India

The automobile industry in India is the ninth largest in the world with an annual

production of over 2.3 million units in 2008 In 2009, India emerged as Asia's fourth

largest exporter of automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed

restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki

and Mahindra and Mahindra, expanded their domestic and international operations.

India's robust economic growth led to the further expansion of its domestic automobile

market which attracted significant India-specific investment by multinational automobile

manufacturers. In February 2009, monthly sales of passenger cars in India exceeded

100,000 units.

bryonic automotive industry emerged in India in the 1940s. Following the independence,

in 1947, the Government of India and the private sector launched efforts to create an

automotive component manufacturing industry to supply to the automobile industry.

However, the growth was relatively slow in the 1950s and 1960s due to nationalization

and the license raj which hampered the Indian private sector. After 1970, the automotive

industry started to grow, but the growth was mainly driven by tractors, commercial

vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the

Indian market ultimately leading to the establishment of Maruti Udyog. A number of

foreign firms initiated joint ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government

chose Suzuki for its joint-venture to manufacture small cars. Following the economic

liberalization in 1991 and the gradual weakening of the license raj, a number of Indian

and multi-national car companies launched operations. Since then, automotive component

and automobile manufacturing growth has accelerated to meet domestic and export

demands.

HISTORY OF THE TWO WHEELERS:7

The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an

internal –combustion engine (or, less often by an electric engine). The automobile was

the reply to the 19th –century reams of self-propelling the horse-drawn bikeriage.

Similarly, the invention of the motorcycle created the self –propelling bicycle. The first

commercial design was three-wheeler built by Edward Butler in Great Britain in 1884.

This employed a horizontal single-cylinder gasoline engine mounted between two steer

able front wheels and connected by a drive chain to the rear wheel. The 1900s saw the

conversion of many bicycles or pedal cycles by adding small, centrally mounted spark

ignition engine engines. There was then felt the need for reliable constructions. This led

to road trial tests and competition between manufacturers. Tourist Trophy (TT) races

were held on the Isle of main in 1907 as reliability or endurance races. Such were the

proving ground for many new ideas from early two-stroke-cycle designs to supercharged

multivalent engines mounted on aerodynamic, bikebon fiber reinforced bodywork.

INVENTION OF TWO WHEELERS:

The invention of two wheelers is a much-debated issue. “Who invented the first

motorcycle?” May seem like a simple question, “safety”, bicycle, i.e., bicycle with front

and rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel.

Those bicycles in turn described from high-wheel bicycles. The high –wheelers

descended from an early type of pushbike, without pedals, propelled by the rider’s feet

pushing against the ground. These appeared around 1800, used iron banded wagon

wheels, and were called “bone-crushers”, both for their jarring ride, and their tendency to

toss their riders. Gottiieb Daimler (who credited with the building the first motorcycle in

1885, one wheel in the front and one in the back, although it had a smaller spring-loaded

outrigger wheel on each side. It was constructed mostly of wood, the wheels were of the

iron-banded wooden-spooked wagon-type and it definitely had a “bone-crusher” chassis!

FURTHER DEVELOPMENTS:

Most of the developments during the early phase concentrated on three and four-

wheeled design since it was complex enough to get the machines running with out having

to worry about them falling over. The next notable two-wheeler though was the

Hildebrand & Wolf Mueller, patented in Munich in 1894. In 1895, the French firm of

DeDion-button built and engine that was to make the mass production and common use 8

of motorcycle possible. The first motorcycle with electric start and a fully modem

electrical system; the Hence special from the Indian Motorcycle Company astounded the

industry in 1931. Before World War 1, IMC was the largest motorcycle manufacturer in

the world producing over 20000 bikes per year.

INCREASING POPULARITY:

The popularity of the vehicle grew especially after 1910, in 1916; the Indian

motorcycle company introduced the model H racer, and placed it on sale. During World

War 1, all branches of the armed forces in Europe used motorcycles principally for

dispatching. After the war, it enjoyed a sport vogue until the Great Depression began in

motorcycles lasted into the late 20th century; weight the vehicle being used for high-speed

touring and sport competitions. The more sophisticated of a 125cc model. Since then, an

increasing number of powerful bikes have blazed the roads.

HISTORICAL INDUSTRY DEVELOPMENTS:

Indian is the second largest manufacturer and producer to two wheelers in the

World. It stands next only to Japan and China in terms of the number of V produced and

domestic sales respectively. This destination was achieved due to variety of reason like

restrictive policy followed by the government of India towards the passenger bike

industry, rising demand for personal transport, inefficiency in the public transportation

system etc. The Indian two-wheelers industry made a small beginning in the early 50s

when Automobile products of India (API) started manufacturing scooters in the country.

Until 1958, API and Enfield were the sole producers.

The two –wheelers market was opened were opened to foreign competition in the

mid-80s. And the then market leaders-Escorts and Enfield – were caught unaware by the

onslaught of the 100cc bikes of the four Indo- Japanese joint ventures. With the

availability of fuel-efficiency low power bikes, demand swelled, resulting in Hero Honda

–then the only producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki

and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles

respectively. These two players initially started with assembly of CKD Kits, and later on

progressed to indigenous manufacturing.

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The industry had a smooth ride in the 50s, 60s and 70s when government

prohibited new entries and strictly controlled capacity expansion. The industry saw a

sudden growth in the 80s. The industry witnessed a steady of 14% leading to a peak

volume of 1.9 mn vehicles in 1990.

In 1990 the entire automobile industry saw a drastic fall in demand. This resulted

in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn

vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93

and FY94. Hero Honda showed a marginal decline in 1992.

The reason for recession in the sector were the incessant rise in fuel prices, high

input costs and reduced purchasing power due to significant like increased production in

1992, due to new entrants coupled with recession in the industry resulted in companies

either reporting losses or a fall in profits.

CONCLUSION:

The two-wheelers market has had a perceptible shift from a buyers market to a

sellers market with a variety of choice, players will have compete on various fronts viz.

pricing, technology product design, productivity after sale service, marketing and

distribution. In the short term, market shares of individual manufacturers are going to be

sensitive to capacity, product acceptance, pricing and competitive pressures from other

manufacturers.

As incomes grow and people grow and people feel the need to own a private means

of transport, sales of two-wheelers will rise. Penetration is expected to increase to

approximately to more than 25% by 2005.

The motorcycle segment will continue to lead the demand for two-wheelers in the

coming years. Motorcycle sale is expected to increase by 20% yoy as compared to 1%

growth in the scooter market and 3% by moped sales respectively for the next two years.

The four-stroke scooters will add new dimension to the two-wheeler segment in the

coming future.

The Asian continent is that largest user of the two-wheelers in the world. This is due to

poor road infrastructure and low per capita income, restrictive policy on bike industry.

This is due to oligopoly between top five players in the segment, compared to thirsty

manufacturers in the bike industry.

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Hero Honda motors LTd., is one of the leading companies in the two-wheeler

industry. At present it is the market leader in the motorcycle segment with around 47%

the market share during FY 2000 –01. During the year, company posted a 41.15% yoy

rise in turnover to Rs.31, 686.5mn in motorcycles which driven by a 35.17% yoy rise in

Motorcycle sales volumes. The company has emerged as one of the most successful

players, much ahead of its competitions an account of its superior and reliable product

quality complemented with excellent marketing techniques. The company has been

consistently addressing the growing demand for motorcycles and has been cumulative

customer base of over 4 million customers, which is expected to reach 5min mark with

rural and semi-urban segment being the new class of consumers.

COMPANY PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest

manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler

manufacturing company in India and also, the 'World No.1' two-wheeler company in

terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain

this position till date.

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Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30

seconds, someone in India buys Hero Honda's top-selling motorcycle – Splendor.

Vision

The Hero Honda story began with a simple vision – the vision of a mobile and an

empowered India, powered by Hero Honda. This vision was driven by Hero Honda’s

commitment to customer, quality and excellence, and while doing so, maintaining the

highest standards of ethics and societal responsibilities. Hero Honda believes that the

fastest way to turn that dream into a reality is by remaining focused on that vision.

Strategy

Hero Honda’s key strategy has been driven by innovation in every sphere of activity –

building a robust product portfolio across categories, exploring new markets, aggressively

expanding the network and continuing to invest in brand building activities.

Manufacturing

Hero Honda bikes are manufactured across three globally benchmarked manufacturing

facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state

of Haryana in northern India. The third and the latest manufacturing plant is based at

Haridwar, in the hill state of Uttrakhand.

Technology

In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment

friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be

technology pioneer. It became the first company to launch the Fuel Injection (FI)

technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.

Products

Hero Honda's product range includes variety of motorcycles that have set the industry

standards across all the market segments. The company also started manufacturing

scooter in 2006. Hero Honda offers large no. of products and caters to wide variety of

requirements across all the segments.

Distribution

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The company's growth in the two wheeler market in India is the result of an intrinsic

ability to increase reach in new geographies and growth markets. Hero Honda's extensive

sales and service network now spans close to 4500 customer touch points. These

comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-

appointed outlets across the country.

Brand

The company has been continuously investing in brand building utilizing not only the

new product launch and new campaign launch opportunities but also through innovative

marketing initiatives revolving around cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf.

Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was

played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth

Games Delhi 2010.

2010-11 Performance

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent

Net profit after tax at Rs. 1927.90 Crores

Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per

share on face value of each share of Rs. 2 each

EBIDTA margin for the year 13.49 per cent

EPS of Rs. 96.54

2009-10 Performance

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total net operating income of Rs. 15860.51 Crores, growth of  28.1 per cent

Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent

Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2

EBIDTA margin for the year 17.4  per cent

EPS of Rs. 111.77, growth of 74.1  per cent

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HERO HONDA'S MISSION  

Hero Honda’s mission is to strive for synergy between technology, systems and human

resources, to produce products and services that meet the quality, performance and price

aspirations of its customers. At the same time maintain the highest standards of ethics and

social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the

organization forge a unique and mutually beneficial relationship with all its stake holders.

  HERO HONDA'S MANDATE  

Hero Honda is a world leader because of its excellent manpower, proven management,

extensive dealer network, efficient supply chain and world-class products with cutting

edge technology from Honda Motor Company, Japan. The teamwork and commitment

are manifested in the highest level of customer satisfaction, and this goes a long way

towards reinforcing its leadership status

BOARD OF DIRECTORS  

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director

2 Mr. Pawan Munjal Managing Director & C.E.O.

3 Mr. Toshiaki Nakagawa Joint Managing Director

4 Mr. Sumihisa Fukuda Technical Director

5 Mr. Sunil Kant Munjal Non-Executive Director

6 Mr. Suman Kant Munjal Non-Executive Director

7 Mr. Takashi Nagai Non-Executive Director

8 Mr. Yuji Shiga Non-Executive Director

9 Mr. Pradeep Dinodia Non-executive & Independent

Director

10 Gen. (Retd.) V. P. Malik Non-executive & Independent

Director

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11 Mr. Analjit Singh Non-executive & Independent

Director

12 Dr. Pritam Singh Non-executive & Independent

Director

13 Ms. Shobhana Bhartia Non-executive & Independent

Director

14. Mr. M. Damodaran Non-executive & Independent

Director

15. Mr. Ravi Nath Non-executive & Independent

Director

16. Dr. Anand C. Burman Non-executive & Independent

Director

 

BRIEF PROFILE OF DIRECTORS

    MR. BRIJMOHAN LALL MUNJAL

  Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and

the $ 3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry

(CII), Society of Indian Automobile Manufacturers (SIAM) and was a Member of the

Board of the Country's Central Bank (Reserve Bank of India). In recognition of his

contribution to industry, Mr. Munjal was conferred the Padma Bhushan Award by the

Union Government.

  Mr. Brijmohan Lall Munjal is currently on the board of the following companies:  

No. Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-time Director

2 Hero Honda Finlease Limited Chairman and Director

3 Munjal Showa Limited Chairman and Director

4 Easy Bill Limited Director

5 Rockman Industries Limited Director

6 Shivam Autotech Limited Director

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KEY MILESTONES OF HERO HONDA  

Year Event

1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed

Shareholders Agreement signed

1984 Hero Honda Motors Ltd. Incorporated

1985 First motorcycle "CD 100" rolled out

1987 100,000th motorcycle produced

1989 New motorcycle model - "Sleek" introduced

1991 New motorcycle model - "CD 100 SS" introduced

500,000th motorcycle produced

1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder

Managing Director, Mr. Raman Kant Munjal

1994 New motorcycle model - "Splendor" introduced

1,000,000th motorcycle produced

1997 New motorcycle model - "Street" introduced

Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated

1998 2,000,000th motorcycle produced

1999 New motorcycle model - "CBZ" introduced

Environment Management System of Dharuhera Plant certified with ISO-14001

by DNV Holland

Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of

founder Managing Director, Mr. Raman Kant Munjal

2000 4,000,000th motorcycle produced

Environment Management System of Gurgaon Plant certified ISO-14001 by DNV

Holland

16

Splendor declared 'World No. 1' - largest selling single two-wheeler model

"Hero Honda Passport Programme" - CRM Programme launched

2001 New motorcycle model - "Passion" introduced

One million production in one single year

New motorcycle model - "Joy" introduced

5,000,000th motorcycle produced

2002 New motorcycle model - "Dawn" introduced

New motorcycle model - "Ambition" introduced

Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh

and Zaheer Khan as Brand Ambassadors

2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark

Splendor has emerged as the World's largest selling model for the third calendar

year in a row(2000, 2001, 2002)

New motorcycle model - "CD Dawn" introduced

New motorcycle model - "Splendor +" introduced

New motorcycle model - "Passion Plus" introduced

New motorcycle model - "Karizma" introduced

2004 New motorcycle model - "Ambition 135" introduced

Hero Honda became the World No. 1 Company for the third consecutive year.

Crossed sales of over 2 million units in a single year, a global record.

Splendor - World's largest selling motorcycle crossed the 5 million mark

New motorcycle model - "CBZ*" introduced

Joint Technical Agreement renewed

Total sales crossed a record of 10 million motorcycles

2005 Hero Honda is the World No. 1 for the 4th year in a row

New motorcycle model - "Super Splendor" introduced

New motorcycle model - "CD Deluxe" introduced

New motorcycle model - "Glamour" introduced

New motorcycle model - "Achiever" introduced

First Scooter model from Hero Honda - "Pleasure" introduced

2006 Hero Honda is the World No. 1 for the 5th year in a row

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15 million production milestone achieved

2007 Hero Honda is the World No. 1 for the 6th year in a row

New 'Splendor NXG' launched

New 'CD Deluxe' launched

New 'Passion Plus' launched

New motorcycle model 'Hunk' launched

20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched

Splendor NXG lauched with power start feature

New motorcycle model 'Passion Pro' launched

New 'CBZ Xtreme' launched

25 million production milestone achieved

CD Deluxe lauched with power start feature

New 'Glamour' launched

2009

2010

2011

Hunk' (Limited Edition) launched

Splendor completed 11 million production landmark

New motorcycle model 'Karizma - ZMR' launched

Silver jubilee celebrations

New model Splendor Pro launched

Launch of new Super Splendor and New Hunk

New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme,

Karizma

Crosses the landmark figure of 5 million cumulative sales in a single year

PROMINENT AWARDS TO THE COMPANY  

Yea

r

Awards & Recognitions

Two-wheeler Manufacturer of the Year award by Bike India magazine.

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201

1

201

0

Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and Bike Awards.-   CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new corporate entity" by CNBC Awaaz Consumer Awards-  "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz Consumer Awards-   Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for Hero GoodLife-  "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion Marketing Award of Asia Order of Merit for Hero GoodLife-   Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most Trusted Brand" 2011 survey

Company of the Year awarded by Economic Times Awards for Corporate

Excellence 2008-09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 -

Two-wheeler Manufacturer of the Year

CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009

200

9

'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards

2009 and Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun

& Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles'

category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

200

8

NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the

Coveted "NDTV Profit Business Leadership Award 2008"

TopGear Design Awards 2008 - Hunk Bike of the Year Award

NDTV Profit Car India & Bike India Awards - NDTV “Viewers’ Choice

Award” to Hunk in Bike category

IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty

Awards - “Customer and Brand Loyalty Award” in Automobile (two-wheeler)

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sector

Asian Retail Congress Award for Retail Excellence (Strategies and Solutions

of business innovation and transformation) - Best Customer Loyalty Program in

Automobile category

NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:

No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

200

7

The NDTV Profit Car India & Bike India Awards 2007 in the following category:

Overall "Bike of the Year" - CBZ X-treme

"Bike of the Year" - CBZ X-treme (up to 150 cc category)

"Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.

"Bike of the Year" - CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine

“Most Trusted Company” , by TNS Voice of the Customer Awards 2006.

CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer

Awards 2006.

200

6

Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two

Wheeler Company).

One of the 8 Indian companies to enter the Forbes top 200 list of world’s most

reputed companies.

No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

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Best in its class awards for each category by TNS Total Customer Satisfaction

Awards 2006:

Splendor Plus (Executive)

CD Deluxe (Entry)

Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand

Equity Survey 2006.

Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two

Wheeler Company).

Top Indian company in the Automobile - Two Wheeler sector by Dun &

Bradstreet - American Express Corporate Awards 2006.

Hero Honda Splendor rated as India's most preferred two-wheeler brand at the

Awaaz Consumer Awards 2006.

Certificate of Export Excellence for outstanding export performance during 2003-

04 for two-wheeler & three- wheelers - Complete (Non SSI) by Engineering

Export Promotion Council.

The NDTV Profit Car India & Bike India Awards 2006 in the following category:

Bike Maker of the Year

Bike of the Year - Achiever

Bike of the Year - Achiever (up to 150 cc category)

Bike of the Year - Glamour (up to 125 cc category)

NDTV Viewers' Choice Award to Glamour in the bike category

CORPORATE SOCIAL RESPONSIBILITY (CSR)  

 STAKEHOLDER TIES AT THE GRASSROOTS

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  Hero Honda Motors takes considerable pride in its stakeholder relationships, especially

ones developed at the grassroots. The Company believes it has managed to bring an

economically and socially backward region in Dharuhera, Haryana, into the national

economic mainstream.

An Integrated Rural Development Centre has been set up on 40 acres of land along the

Delhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water, and

education facilities for both adults and children-now nurtures a vibrant, educated and

healthy community.

The Foundation has adopted various villages located within vicinity of the Hero Honda

factory at Dharuhera for integrated rural development. This includes:

Installation of deep bore hand pumps to provide clean drinking water.

Constructing metalled roads and connecting these villages to the National

Highway (NH -8).

Renovating primary school buildings and providing hygienic water and toilet

facilities.

Ensuring a proper drainage system at each of these villages to prevent water-

logging.

Promoting non-conventional sources of energy by providing a 50 per cent subsidy

on biogas plants.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55

students from nearby areas. It has now grown into a modern Senior Secondary, CBSE

affiliated co-educational school with over 1200 students and 61 teachers. The school has a

spacious playground, an ultra-modern laboratory, a well-equipped audio visual room, an

activity room, a well-stocked library and a computer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and

hockey and football grounds are used by the local villagers. In the near future, sports

academies are planned for volley ball and basket ball, in collaboration with National

Sports Authority of India.

Vocational Training Centre

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In order to help local rural people, especially women, Hero Honda has set up a Vocational

Training Centre. So far 26 batches comprising of nearly 625 women have been trained in

tailoring, embroidery and knitting. The Company has helped women trained at this centre

to set up a production unit to stitch uniforms for Hero Honda employees. Interestingly,

most of the women are now self-employed.

   Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of

Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36

adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to another

100 adults by getting village heads and other prominent villagers to motivate illiterate

adults.

   Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes,

by the Foundation by providing financial help and other support to the families.

   Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep

health care services to the local community. Free health care and medical camps are now

a regular feature in the Hero Group's community outreach program

KEY POLICIES    AN ENVIRONMENTALLY AND SOCIALLY, AWARE

COMPANY  

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of

the way in making your world a better place to live in. Besides its will to provide a high-

quality service to all of its customers, Hero Honda takes a stand as a socially responsible

enterprise respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation

programmers but also expresses the increasingly inseparable balance between the

economic concerns and the environmental and social issues faced by a business. A

business must not grow at the expense of mankind and man's future but rather must serve

mankind.

"We must do something for the community from whose land we generate our

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wealth."

A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.

  Environment Policy

  We at Hero Honda are committed to demonstrate excellence in our environmental

performance on a continual basis, as an intrinsic element of our corporate philosophy.

To achieve this we commit ourselves to:

Integrate environmental attributes and cleaner production in all our business

processes and practices with specific consideration to substitution of hazardous

chemicals, where viable and strengthen the greening of supply chain.

Continue product innovations to improve environmental compatibility.

Comply with all applicable environmental legislation and also controlling our

environmental discharges through the principles of "alara" (as low as reasonably

achievable).

Institutionalise resource conservation, in particular, in the areas of oil, water,

electrical energy, paints and chemicals.

Enhance environmental awareness of our employees and dealers / vendors, while

promoting their involvement in ensuring sound environmental management.

 Quality Policy

  Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in

our products and services which will meet and exceed customer's growing aspirations

through:

Innovation in products, processes and services.

Continuous improvement in our total quality management systems.

Teamwork and responsibility.

 Safety Policy

  Hero Honda is committed to safety and health of its employees and other persons

who may be affected by its operations. We believe that the safe work practices lead to

24

better business performance, motivated workforce and higher productivity.

We shall create a safety culture in the organization by:

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers and

contractors.

Continuous improvements in safety performance through precautions besides

participation and training of employees.

INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX MOTORS) PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS

PVT LTD. is established on 21st march 2003. The business is running by only one man.

The owner name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.

Generally the sale will be either on cash basis or on institutional basis. Bank

like ICICI, HDFC and CENTURION are providing loans to customers.

Advertising strategy of phoenix motors:

They are giving the ads through newspapers, wall paintings, hoardings

and field staff. They are upgrading sales by introducing the schemes, group bookings,

institutional sales and customer door-to-door activities.

Categorization of Staff members:

Staff members are categorized for technicians, 25 members are

allotted for field staff, 5 members are recruited for sales for persons, 5 persons are placed

for evaluating for spare parts, 5 members are allotted for managerial accounts and another

3 persons for cash transaction and other members are allotted for remaining work.

Customer relationship:

25

They entertain the showroom providing a customer’s huge having

pool game, internet facility and television with home there system. They provide bile

maintenance programs on every week.

According to other dealers PHOENIX motors in first in sales and best in service. They

treat customer, is the very important person at PHOENIX motors customer satisfaction is

their motto, why because, they will satisfied customer is the best advertisement. They

provide better value for the customers and as well as employees also. At PHOENIX

motors the customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS:

Average they are selling 25 vehicles per day. PHOENIX motors PVT L.T.D

is the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify leader

through quality dealer). At PHOENIX motor they gave the quality service to the

customers why because ‘the cost is long forgotten but the quality is remembered for

ever”. They treat quality has a...

Q Quest for excellence

U Understanding customer’s needs

A Action to achieve customer’s appreciation.

L Leadership determined to be a leader

I involving all the people

T Team spirit to work for a common goal

Y Yard sticks to measure programs.

WARRANTY ON PROPRIETARY ITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will be

directly handled by the respective original manufactures (OEM’s) except AMCO for

batteries and Dunlop and Falcon tires and Tubes. In case of any defect in proprietary

items, other than the above two mentioned OEM’S the dealers must approach the Brach 26

office dealer of the respective manufacture. For AMCO batteries and Dunlop and falcon

tires, tubes claims will be accepted at our authorized dealerships per the mutually agreed

terms and conditions between HERO HONDA and of these two OEM’s in case the claim

is not accepted for invalid reasons. Then the claim along with the refusal note form the

OEM can be sent to the warranty section at gorgon plan after due to recommendation of

the area service engineer. If any other six services or subsequent paid services is not

availed as per the recommended schedule given in the owner’s manual. If HERO

HONDA recommended engine oil is not used. To normal wear & tear components like

bulbs, electric wiring, filters, spark plug, clutch plates, braded shoes, fasteners, shim

washers, oil seals, gaskets, rubber parts (other than tyre and tube) plastic components,

chain$ sprockets and in case of wheel rim misalignment or bend.

If there is any damage due o modification or fittings of accessories other than ones

recommended by HERO HONDA. If the motor has been used in any competitive events

like tracking races or rallies. If there is any damage to the painted surface due to industrial

pollution or other extraneous factors. For clams made for any consequential damage due

to any previous malfunction. For normal phenomenon like noise, vibration, oil seepage,

which do not affect the performance of the motorcycles.

SOCIAL SERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently the

phoenix motors organized a BLOOD DONATION CAMP for the trust on 21st January

2006.they motivated on the consumers to participated in this camp and also provide

certificate for the customers

THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

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28

29

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CUSTOMER RELATIONSHIP:

      To entertain the customers the showroom providing a customers huge having pool

game, Internet facility and television with home theatre system. They provide bike

maintenance programs on every week.   According to other dealers PHOENIX motors in

first in sales and best in service. They treat customer, is the very important person at

PHOENIX motors customer satisfaction is their motto, why because, the well satisfied

customer is the best advertisement. They provide better value for the customers and as

well as employees also. At PHONIX motors the customer is the boss.

SOCIAL SERVICE ACTIVITIES     

  PHOENIX Motors participates in social service activities. The Phoenix motors

organize a BLOOD DONATION CAMP for the trust in every year. They motivated on

the customers to participated in this camp and also provide Certificate for the customers.

CONSUMER BUYING BEHAVIOR

Definition:

Consumer behavior refers to the mental and emotional process and the observable

behavior of consumers during searching, purchasing and post consumption of a product

or service.

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Consumer behavior involves study of how people buy, what they buy, when they buy and

why they buy. It blends the elements from psychology, sociology, sociopsychology,

anthropology and economics. It also tries to assess the influence on the consumer from

groups such as family, friends, reference groups and society in general.

Buyer behavior has two aspects: the final purchase activity visible to any observer and the

detailed or short decision process that may involve the interplay of a number of complex

variables not visible to anyone.

What influences consumers to purchase products or services? The consumer buying

process is a complex matter as many internal and external factors have an impact on the

buying decisions of the consumer.

When purchasing a product there several processes, which consumers go through. These

will be discussed below.

Purchase decision

Through the evaluation process discussed above consumers will reach their final purchase

decision and they reach the final process of going through the purchase action e.g. The

process of going to the shop to buy the product, which for some consumers can be as just

as rewarding as actually purchasing the product. Purchase of the product can either be

through the store, the web, or over the phone.

Post Purchase Behavior

Ever have doubts about the product after you purchased it? This simply is post purchase

behavior and research shows that it is a common trait amongst purchasers of products.

Manufacturers of products clearly want recent consumers to feel proud of their purchase,

it is therefore just as important for manufacturers to advertise for the sake of their recent

purchaser so consumers feel comfortable that they own a product from a strong and

reputable organization. This limits post purchase behavior. i.e. You feel reassured that

you own the latest advertised product.

Factors influencing the behavior of buyers.

32

Consumer behavior is affected by many uncontrollable factors. Just think, what

influences you before you buy a product or service? Your friends, your upbringing, your

culture, the media, a role model or influences from certain groups?

Culture is one factor that influences behavior. Simply culture is defined as our attitudes

and beliefs. But how are these attitudes and beliefs developed? As an individual growing

up, a child is influenced by their parents, brothers, sister and other family member who

may teach them what is wrong or right. They learn about their religion and culture, which

helps them develop these opinions, attitudes and beliefs (AIO) . These factors will

influence their purchase behavior however other factors like groups of friends, or people

they look up to may influence their choices of purchasing a particular product or service.

Reference groups are particular groups of people some people may look up towards to

that have an impact on consumer behavior. So they can be simply a band like the Spice

Girls or your immediate family members. Opinion leaders are those people that you look

up to because your respect their views and judgments and these views may influence

consumer decisions. So it maybe a friend who works with the IT trade who may influence

your decision on what computer to buy. The economical environment also has an impact

on consumer behavior; do consumers have a secure job and a regular income to spend on

goods? Marketing and advertising obviously influence consumers in trying to evoke them

to purchase a particular product or service.

Peoples social status will also impact their behavior. What is their role within society?

Are they Actors? Doctors? Office worker? and mothers and fathers also? Clearly being

parents affects your buying habits depending on the age of the children, the type of job

may mean you need to purchase formal clothes, the income which is earned has an

impact. The lifePerformence of someone who earns £250000 would clearly be different

from someone who earns £25000. Also characters have an influence on buying decision.

Whether the person is extrovert (out going and spends on entertainment) or introvert

(keeps to themselves and purchases via online or mail order) again has an impact on the

types of purchases made.

Maslow’s Hierarchy of Needs

Abraham Maslow hierarchy of needs theory sets out to explain what motivated

individuals in life to achieve. He set out his answer in a form of a hierarchy. He suggests

33

individuals aim to meet basic psychological needs of hunger and thirst. When this has

been met they then move up to the next stage of the hierarchy, safety needs, where the

priority lay with job security and the knowing that an income will be available to them

regularly. Social needs come in the next level of the hierarchy, the need to belong or be

loved is a natural human desire and people do strive for this belonging. Esteem need is

the need for status and recognition within society, status sometimes drives people, the

need to have a good job title and be recognized or the need to wear branded clothes as a

symbol of status.

But how does this concept help an organization trying to market a product or service?

Well as we have established earlier within this website, marketing is about meeting needs

and providing benefits, Maslow’s concept suggests that needs change as we go along our

path of striving for self-actualization. Supermarket firms develop value brands to meet the

psychological needs of hunger and thirst. Harrods develops products and services for

those who want have met their esteem needs. So Maslow’s concept is useful for

marketers as it can help them understand and develop consumer needs and wants.

CUSTOMER

A competitor, in order to achieve the loyalty of the customers, offer an endless

information flow on the products and services and thereby continuously educates the

customer about the opportunities in the market. Therefore today even an ordinary person,

is in possession of the large amount of data to use for the purpose of making a decision as

to which products/ services he would go in for. The competitive environment is making

the customer wisher day by day and he is able to take a large number of decisions on his

own. The experts’ advice of the olden days is being replaced by the customer’s own

wisdom. This is making the market place more complicated and unpredictable. The

customer is getting smarter today and he is able to decide his own money’s worth and

therefore, organization across the board are `pursuing the customer’s views to streamline

their business strategies to remain customer- worthy.

People are the prime factor for any organization to maintain the effectiveness and

thus develop the right focus for the people, so that each one perceives as clearly as

possible his position in the cycle of growth and prosperity of the organization. Agendas

will have to be drawn in such a manner and communicated so effectively that the

individual is able to enjoy a meaningful life in the organization, endowed with authority

and responsibility for the role he plays.34

“One should be able to see for oneself the impact of the contributions one has

made towards the growth and prosperity cycle of the organization. As a matter of fact the

relationship between the people and the organization should be so designed that each one

is here to experience the pleasure of winning and pain of losing. People alone are of no

significance unless and until they have an intimate and continuous interaction with the

process”.

Therefore organization have to take continuous care to update their quality of the

people and that of processes simultaneously so that a healthy relationship is built up and

maintained making the relationship happy and healthy one. This, when done, should

generate in people a sense of entrepreneurship ownership of the organization.

“Since the customer are the main focus of any organization its structure should be

so flat i.e., people fluently interact with the customer and maintain continuous feedback

about the customer’s moods and methods in order to shape its business portfolio and

strategies”.

It is very important to find whether the fundamentals of the organization are

getting strong as desired. It is therefore rightly said that a well trained army with quality

arms and ammunitions and with a sense of involvement can got the nations frontiers inn

desirable and dependable manner similarly: people at the operation level with superior

competency and capability supplied with superior products and strategies can acquire a

place for an organization in the market place. Retail outlets are the contact points of the

customers and therefore the image of the organization largely depends upon the quality of

the people managing the interventions and transactions at the level.

The Consumer Market:

The consume market consists of all the individuals and households who buy or

acquire goods and services for personal consumption. The simplest model consumer

buyer behavior is the stimulus – response model. According to this model marketing

stimuli ( the four Ps) and the major forces (economic, technological, political, cultural)

enter the consumer’s “black box” and reproduce certain responses.

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Social factors influence buyer’s behavior. A person’s reference group-family,

friends, social organizations, professional associations- strongly affect product and brand

choices. The buyer’s age, life-cycle stage, occupation, economic circumstances,

lifePerformence, personality, and other personal. Characteristics influence his or her

buying decisions. Consumer life-Performences the pattern of acting and interacting in the

world are also an important influences on purchase decisions.

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Complete model of consumer behavior

Stimuli (marketer dominated, other)

External

search

Memory

Internal search

Exposure

Attention

Comprehension

Acceptance

Retention

Search

Need recognit

ion

Alternative

evaluationPurch

ase

Outcomes

DissatisfactionSatisfaction

Individual differences resources motivation & involvement knowledge attitudes personality, values, lifestyle

Influences culture social class family situation

Start

Finally, consumer-buying behavior is influenced by four major psychological

factors- motivation, perception, learning, and beliefs and attitudes. Each of these factors

provides a different perspective for understanding the workings of the buyer’s black box.

CONSUMER PERCEPTION

It can be defined as the process by which an individual selects, organizes, and

interprets stimuli into a meaningful and coherent picture of the world. A stimulus is a

unit of input to any of the senses. Examples of stimulus ie, sensory input include

products, packages, brand names, advertisements, and commercials, sensory receptor.

Marketers do not want their target audience to look only at the models in their ads.

They want to communicate something about their products as well. Marketers often use

attractive models,humour, other factors to attract the target market’s interest. Information

processing is a series of activities by which stimuli are perceived, transformed in to

information, and stored. Information processing model has four major steps or stages,

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Consumer Decision-Making Process

Postpurchase Behavior

Postpurchase Behavior

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Need RecognitionNeed Recognition

Cultural, Social, Individual and Psychological

Factors affect

all steps

Cultural, Social, Individual and Psychological

Factors affect

all steps

a) Exposure

b) Attention

c) Interpretation, and

d) Memory

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The first three constitute perception.

Exposure occurs when a stimulus such as an Advertisement hoarding comes within the

range of a person’s vision. Attention occurs when the information from vision pass on to the

brain for processing. Interpretation is the assignment of meaning to the received sensations.

Memory is the short – term use of the meaning for immediate decision-making or the longer-

term retention of the meaning.

The basic components shown in the figure can be arranged into four groups:

1. Stimuli, which serve as the raw material to be processed.

The stages of processing activities, which are linked by arrows and mainly internal to the

customer.

Situational and consumer characteristics which can influence the nature of these

processing activities, and an executive system, which guides the process by regulating the type

and intensity of processing activities engaged in, at any time.

Consumer Buying Behavior

Possibly the most challenging concept in marketing deals with understanding why buyers do

what they do (or don’t do). But such knowledge is critical for marketers since Wanting a strong

understanding of buyer behavior will help shed light on what is important to the customer and

also suggest the important influences on customer decision-making. Using this information,

marketers can create marketing programs that they believe will be of interest to customers.

As you might guess, factors affecting how customers make decisions are extremely complex.

Buyer behavior is deeply rooted in psychology with dashes of sociology thrown in just to make

things more interesting. Since every person in the world is different, it is impossible to have

simple rules that explain how buying decisions are made. But those who have spent many years

analyzing customer activity have presented us with useful “guidelines” in how someone decides

whether or not to make a purchase.

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In fact, pick up any textbook that examines customer behavior and each seems to approach it

from a different angle. The perspective we take is to touch on just the basic concepts that appear

to be commonly accepted as influencing customer behavior. We will devote two sections of the

Principles of Marketing Tutorials to customer behavior. In this section we will examine the

buying behavior of consumers (i.e., when people buy for personal reasons) while in the Business

Buying Behavior tutorial we will examine factors that influence buyer’s decisions in the business

market.

Why Consumers Buy

As we discussed in the What is Marketing? tutorial, customers make purchases in order to satisfy

needs. Some of these needs are basic and must be filled by everyone on the planet (e.g., food,

shelter) while others are not required for basic survival and vary depending on the person. It

probably makes more sense to classify needs that are not a necessity as wants or desires. In fact,

in many countries where the standard of living is very high, a large portion of the population’s

income is spent on wants and desires rather than on basic needs.

In this tutorial when we mention the consumer we are referring to the actual buyer, the person

spending the money. But is should also be pointed out that the one who does the buying is not

necessarily the user of what is bought and that others may be involved in the buying decision in

addition to the actual buyer. While the purchasing process in the consumer market is not as

complex as the business market, Wanting multiple people involved in a purchase decision is not

unusual. For example, in planning for a family vacation the mother may make the hotel

reservations but others in the family may have input on the hotel choice. Similarly, a father may

purchase snacks at the grocery store but his young child may be the one who selected it from the

store shelf.

So understanding consumer purchase behavior involves not only understanding how decisions

are made but also understanding the dynamics that influence purchases.

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What Influences Purchasing

As we discussed the decision-making process for consumers is anything but straight forward.

There are many factors that can affect this process as a person works through the purchase

decision. The number of potential influences on consumer behavior is limitless. However,

marketers are well served to understand the KEY influences. By doing so they may be in a

position to tailor their marketing efforts to take advantage of these influences in a way that will

satisfy the consumer and the marketer (remember this is a key part of the definition of

marketing).

 

For the purposes of this tutorial we will break these influences down into three main categories:

Internal, External and Marketing. However, those interested in learning more about customer

buying activity may want to consult one or more consumer behavior books where they will find

additional methods for explaining consumer buying behavior.

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For the most part the influences are not mutually exclusive. Instead, they are all interconnected

and, as we will see, work together to form who we are and how we behave.

For each of the influences that are discussed we will provide a basic description and also suggest

its implication to marketers. Bear in mind we only provide a few marketing implications for each

influence; clearly there are many more.

Internal Influences: Perceptual Filter

We start our examination of the influences on consumer purchase decisions by first looking

inside ourselves to see which are the most important internal factors that affect how we make

choices.

Perceptual Filter

Perception is how we see ourselves and the world we live in. However, what ends up being

stored inside us doesn’t always get there in a direct manner. Often our mental makeup results

from information that has been consciously or subconsciously filtered as we experience it, a

process we refer to as a perceptual filter. To us this is our reality, though it does not mean it is an

accurate reflection on what is real. Thus, perception is the way we filter stimuli (e.g., someone

talking to us, reading a newspaper story) and then make sense out of it.

Perception has several steps.

Exposure – sensing a stimuli (e.g. seeing an ad)

Attention – an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)

Awareness – assigning meaning to a stimuli (e.g., humorous ad for particular product)

Retention – adding the meaning to one’s internal makeup (i.e., product has fun ads)

How these steps are eventually carried out depends on a person’s approach to learning. By

learning we mean how someone changes what they know, which in turn may affect how they act.

There are many theories of learning, a discussion of which is beyond the scope of this tutorial,

however, suffice to say that people are likely to learn in different ways. For instance, one person

may be able to focus very strongly on a certain advertisement and be able to retain the

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information after being exposed only one time while another person may need to be exposed to

the same advertisement many times before he/she even recognizes what it is. Consumers are also

more likely to retain information if a person has a strong interest in the stimuli. If a person is in

need of new car they are more likely to pay attention to a new advertisement for a car while

someone who does not need a car may need to see the advertisement many times before they

recognize the brand of automobile.

Marketing Implications:

Marketers spend large sums of money in an attempt to get customers to have a positive

impression of their products. But clearly the existence of a perceptual filter suggests that getting

to this stage is not easy. Exposing consumers to a product can be very challenging considering

the amount of competing product messages (ads) that are also trying to accomplish the same

objective (i.e., advertising clutter). So marketers must be creative and use various means to

deliver their message. Once the message reaches consumer it must be interesting enough to

capture their attention (e.g., talk about the product’s benefits). But attending to the message is

not enough. For marketers the most critical step is the one that occurs with awareness. Here

marketers must continually monitor and respond if their message becomes distorted in ways that

will negatively shape its meaning. This can often happen due in part to competitive activity (e.g.,

comparison advertisements). Finally, getting the consumer to give positive meaning to the

message they have retained requires the marketer make sure that consumers accurately interpret

the facts about the product.

Internal Influences: Knowledge

Knowledge is the sum of all information known by a person. It is the facts of the world as he/she

knows it and the depth of knowledge is a function of the breadth of worldly experiences and the

strength of an individual’s long-term memory. Obviously what exists as knowledge to an

individual depends on how an individual’s perceptual filter makes sense of the information it is

exposed to.

Marketing Implications:

Marketers may conduct research that will gauge consumers’ level of knowledge regarding their

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product. As we will see below, it is likely that other factors influencing consumer behavior are in

large part shaped by what is known about a product. Thus, developing methods (e.g., incentives)

to encourage consumers to accept more information (or correct information) may affect other

influencing factors.

Internal Influences: Attitude

In simple terms attitude refers to what a person feels or believes about something. Additionally,

attitude may be reflected in how an individual acts based on his or her beliefs. Once formed,

attitudes can be very difficult to change. Thus, if a consumer has a negative attitude toward a

particular issue it will take considerable effort to change what they believe to be true.

Marketing Implications:

Marketers facing consumers who have a negative attitude toward their product must work to

identify the key issues shaping a consumer’s attitude then adjust marketing decisions (e.g.,

advertising) in an effort to change the attitude. For companies competing against strong rivals to

whom loyal consumers exhibit a positive attitude, an important strategy is to work to see why

consumers feel positive toward the competitor and then try to meet or beat the competitor on

these issues. Alternatively, a company can try to locate customers who feel negatively toward the

competitor and then increase awareness among this group.

Internal Influences: Personality

An individual’s personality relates to perceived personal characteristics that are consistently

exhibited, especially when one acts in the presence of others. In most, but not all, cases the

behaviors one projects in a situation is similar to the behaviors a person exhibits in another

situation. In this way personality is the sum of sensory experiences others get from experiencing

a person (i.e., how one talks, reacts). While one’s personality is often interpreted by those we

interact with, the person has their own vision of their personality, called Self Concept, which

may or may not be the same has how others view us.

Marketing Implications:

For marketers it is important to know that consumers make purchase decisions to support their

44

self concept. Using research techniques to identify how customers view themselves may give

marketers insight into products and promotion options that are not readily apparent. For example,

when examining consumers a marketer may initially build marketing strategy around more

obvious clues to consumption behavior, such as consumer’s demographic indicators (e.g., age,

occupation, income). However, in-depth research may yield information that shows consumers

are purchasing products to fulfill self-concept objectives that have little to do with the

demographic category they fall into (e.g., senior citizen may be making purchases that make

them feel younger). Appealing to the consumer’s self concept needs could expand the market to

which the product is targeted.

Internal Influences: LifePerformence

This influencing factor relates to the way we live through the activities we engage in and

interests we express. In simple terms it is what we value out of life. LifePerformence is often

determined by how we spend our time and money.

Marketing Implications:

Products and services are purchased to support consumers’ lifePerformences. Marketers have

worked hard researching how consumers in their target markets live their lives since this

information is key to developing products, suggesting promotional strategies and even

determining how best to distribute products. The fact that lifePerformence is so directly tied to

marketing activity will be further examined as we discuss developing target market strategies

(See Targeting Markets) tutoria

Internal Influences: Motivation

Motivation relates to our desire to achieve a certain outcome. Many internal factors we have

already discussed can affect a customer’s desire to achieve a certain outcome but there are

others. For instance, when it comes to making purchase decisions customers’ motivation could

be affected by such issues as financial position (e.g., Can I afford the purchase?), time

constraints (e.g., Do I need to make the purchase quickly?), overall value (e.g., Am I getting my

money’s worth?), and perceived risk (e.g., What happens if I make a bad decision?).

45

Marketing Implications:

Motivation is also closely tied to the concept of Involvement, which relates to how much effort

the consumer will exert in making a decision. Highly motivated consumers will want to get

mentally and physically involved in the purchase process. Not all products have a high

percentage of highly involved customers (e.g., milk) but marketers who market products and

services that may lead to high level of consumer involvement should prepare options that will be

attractive to this group. For instance, marketers should make it easy for consumers to learn about

their product (e.g., information on website, free video preview) and, for some products, allow

customers to experience the product (e.g., free trial) before committing to the purchase

Internal Influences: Roles

Roles represent the position we feel we hold or others feel we should hold when dealing in a

group environment. These positions carry certain responsibilities yet it is important to understand

that some of these responsibilities may, in fact, be perceived and not spelled out or even accepted

by others. In support of their roles, consumers will make product choices that may vary

depending on which role they are assuming. As illustration, a person who is responsible for

selecting snack food for an office party his boss will attend may choose higher quality products

than he would choose when selecting snacks for his family.

Marketing Implications:

Advertisers often show how the benefits of their products aid consumers as they perform certain

roles. Typically the underlying message of this promotional approach is to suggest that using the

advertiser’s product will help raise one’s status in the eyes of others while using a competitor’s

product may have a negative effect on status.

External Influences: Culture

Consumer purchasing decisions are often affected by factors that are outside of their control but

have direct or indirect impact on how we live and what we consume. One example of this are

cultural factors

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Culture represents the behavior, beliefs and, in many cases, the way we act learned by interacting

or observing other members of society. In this way much of what we do is shared behavior,

passed along from one member of society to another. Yet culture is a broad concept that, while

of interest to marketers, is not nearly as important as understanding what occurs within smaller

groups or Sub-Cultures to which we may also belong. Sub-cultures also have shared values but

this occurs within smaller groups. For instance, sub-cultures exist where groups share similar

values in terms of ethnicity, religious beliefs, geographic location, special interests and many

others.

Marketing Implications:

As part of their efforts to convince customers to purchase their products, marketers often use

cultural representations, especially in promotional appeals. The objective is to connect to

consumers using cultural references that are easily understood and often embraced by the

consumer. By doing so the marketer hopes the consumer feels more comfortable with or can

relate better to the product since it corresponds with their cultural values. Additionally, smart

marketers use strong research efforts in an attempt to identify differences in how sub-culture

behaves. These efforts help pave the way for spotting trends within a sub-culture, which the

marketer can capitalize on through new marketing tactics (e.g., new products, new sales

channels, added value, etc.).

External Influences: Group Membership

In addition to cultural influences, consumers belong to many other groups with which they share

certain characteristics and which may influence purchase decisions. Often these groups contain

Opinion Leaders or others who have major influence on what the customer purchases. Some of

the basic groups we may belong to include:

Social Class – represents the social standing one has within a society based on such

factors as income level, education, occupation

Family – one’s family situation can have a strong effect on how purchase decisions are

made

47

Reference groups – most consumers simultaneously belong to many other groups with

which they associate or, in some cases, feel the need to disassociate

Marketing Implications:

Identifying and understanding the groups consumers belong to is a key strategy for marketers.

Doing so helps identify target markets, develop new products, and create appealing marketing

promotions to which consumers can relate. In particular, marketers seek to locate group leaders

and others to whom members of the group look for advice or direction. These opinion leaders, if

well respected by the group, can be used to gain insight into group behavior and if these opinion

leaders accept promotional opportunities could act as effective spokespeople for the marketer’s

products.

External Influences: Purchase Situation

Purchase Situation

A purchase decision can be strongly affected by the situation in which people find themselves. In

general, a situation is the circumstances a person faces when making a purchase decision, such as

the nature of their physical environment, their emotional state, or time constraints. Not all

situations are controllable, in which case a consumer may not follow their normal process for

making a purchase decision. For instance, if a person needs a product quickly and a store does

not carry the brand they normally purchase, the customer may choose a competitor’s product.

Marketing Implications:

Marketers can take advantage of decisions made in uncontrollable situations in at least two ways.

First, marketers can use promotional methods to reinforce a specific selection of products when

the consumer is confronted with a particular situation. For example, automotive services can be

purchased that promise to service vehicles if the user runs into problems anywhere and at

anytime. Second, marketers can use marketing methods that attempt to convince consumers that

a situation is less likely to occur if the marketer’s product is used. This can also be seen with auto

products, where marketers explain that using their product will prevent unexpected damage to

their vehicles.

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Types of Consumer Purchase Decisions

Consumers are faced with purchase decisions nearly every day. But not all decisions are treated

the same. Some decisions are more complex than others and thus require more effort by the

consumer. Other decisions are fairly routine and require little effort. In general, consumers face

four types of purchase decisions:

Minor New Purchase – these purchases represent something new to a consumer but in the

customer’s mind is not a very important purchase in terms of need, money or other reason (e.g.,

status within a group).

Minor Re-Purchase – these are the most routine of all purchases and often the consumer

returns to purchase the same product without giving much thought to other product

options (i.e., consumer is brand loyalty).

Major New Purchase – these purchases are the most difficult of all purchases because the

product being purchased is important to the consumer but the consumer has little or no

previous experience making these decisions. The consumer’s lack of confidence in

making this type of decision often (but not always) requires the consumer to engage in an

extensive decision-making process..

Major Re-Purchase - these purchase decisions are also important to the consumer but the

consumer feels confident in making these decisions since they have previous experience

purchasing the product.

For marketers it is important to understand how consumers treat the purchase decisions they

face. If a company is targeting customers who feel a purchase decision is difficult (i.e., Major

New Purchase), their marketing strategy may vary greatly from a company targeting customers

who view the purchase decision as routine. In fact, the same company may face both situations at

the same time; for some the product is new, while other customers see the purchase as routine.

The implication of buying behavior for marketers is that different buying situations require

different marketing efforts.

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How Consumers Buy

So now that we have discussed the factors influencing a consumer’s decision to purchase, let’s

examine the process itself. This process is presented in a sequence of 5 steps as shown below.

However, whether a consumer will actually carryout each step depends on the type of purchase

decision that is faced. For instance, for minor re-purchases the consumer may be quite loyal to

the same brand, thus the decision is a routine one (i.e., buy the same product) and little effort is

involved in making a purchase decision. In cases of routine, brand loyal purchases consumers

may skip several steps in the purchasing process since they know exactly what they want

allowing the consumer to move quickly through the steps. But for more complex decisions, such

as Major New Purchases, the purchasing process can extend for days, weeks, months or longer.

So in presenting these steps marketers should realize that, depending on the circumstances

surrounding the purchase, the importance of each step may vary.

Purchase Decision Steps 1 and 2

1. Need/Want/Desire is recognized

In the first step the consumer has determined that for some reason he/she is not satisfied (i.e.,

consumer’s perceived actual condition) and wants to improve his/her situation (i.e., consumer’s

perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell the

consumer that food or drink is needed. External factors can also trigger consumer’s needs.

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Marketers are particularly good at this through advertising, in-store displays and even the

intentional use of scent (e.g., perfume counters). At this stage the decision-making process may

stall if the consumer is not motivated to continue (see Motivation above). However, if the

consumer does have the internal drive to satisfy the need they will continue to the next step.

2. Search for Information

Assuming consumers are motivated to satisfy his or her need, they will next undertake a search

for information on possible solutions. The sources used to acquire this information may be as

simple as remembering information from past experience (i.e., memory) or the consumer may

expend considerable effort to locate information from outside sources (e.g., Internet search, talk

with others, etc.). How much effort the consumer directs toward searching depends on such

factors as: the importance of satisfying the need, familiarity with available solutions, and the

amount of time available to search. To appeal to consumers who are at the search stage,

marketers should make efforts to ensure consumers can locate information related to their

product. For example, for marketers whose customers rely on the Internet for information

gathering, attaining high rankings in search engines has become a critical marketing objective.

Purchase Decision Steps 3, 4 and 5

3. Evaluate Options

Consumers’ search efforts may result in a set of options from which a choice can be made. It

should be noted that there may be two levels to this stage. At level one the consumer may create

a set of possible solutions to their needs (i.e., product types) while at level two the consumer may

be evaluating particular products (i.e., brands) within each solution. For example, a consumer

who needs to replace a television has multiple solutions to choose from such as plasma, LCD and

CRT televisions. Within each solution type will be multiple brands from which to choose.

Marketers need to understand how consumers evaluate product options and why some products

are included while others are not. Most importantly, marketers must determine which criteria

consumers are using in their selection of possible options and how each criterion is evaluated.

Returning to the television example, marketing tactics will be most effective when the marketer

can tailor their efforts by knowing what benefits are most important to consumers when selecting

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options (e.g., picture quality, brand name, screen size, etc.) and then determine the order of

importance of each benefit.

4. Purchase

In many cases the solution chosen by the consumer is the same as the product whose evaluation

is the highest. However, this may change when it is actually time to make the purchase. The

"intended" purchase may be altered at the time of purchase for many reasons such as: the product

is out-of-stock, a competitor offers an incentive at the point-of-purchase (e.g., store salesperson

mentions a competitor’s offer), the customer lacks the necessary funds (e.g., credit card not

working), or members of the consumer’s reference group take a negative view of the purchase

(e.g., friend is critical of purchase). Marketers whose product is most desirable to the consumer

must make sure that the transaction goes smoothly. For example, Internet retailers have worked

hard to prevent consumers from abandoning online purchase (i.e., online shopping carts) by

streamlining the checkout process. For marketers whose product is not the consumer’s selected

product, last chance marketing efforts may be worth exploring, such as offering incentives to

store personnel to "talk up" their product at the checkout line.

5. After-Purchase Evaluation

Once the consumer has made the purchase they are faced with an evaluation of the decision. If

the product performs below the consumer’s expectation then he/she will re-evaluate satisfaction

with the decision, which at its extreme may result in the consumer returning the product while in

less extreme situations the consumer will retain the purchased item but may take a negative view

of the product. Such evaluations are more likely to occur in cases of expensive or highly

important purchases. To help ease the concerns consumers have with their purchase evaluation,

marketers need to be receptive and even encourage consumer contact. Customer service centers

and follow-up market research are useful tools in helping to address purchasers’ concerns.

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CHAPTER 2

53

OBJECTIVE OF THE STUDY:

Main objective: The main objective of the study is to study the buying motives of the

customers regarding purchasing bikes in Hero MotoCorp Ltd. (Formerly Hero Honda Motors

Ltd.).

SPECIFIC OBJECTIVES:

1. To gain an understanding of the theories and concepts of Buyer Behavior, to find the age

group, educational back ground, occupation / profession and income and income level of the

respondents.

2. To know whether the customer is interested to purchase bikes in Hero MotoCorp Ltd.

(Formerly Hero Honda Motors Ltd.) or not.

3. To find respondents reason for purchasing the bikes in Hero MotoCorp Ltd. (Formerly Hero

Honda Motors Ltd.)

4. To know the important reason the respondents give to each factor for purchasing bikes in Hero

MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.).

5. To know the customer service satisfaction from the respondents.

6. To know the awareness of the brand Hero MotoCorp Ltd.

NEED FOR THE STUDY:

Customers consider various factors for purchasing of bikes in Hero MotoCorp Ltd.

(Formerly Hero Honda Motors Ltd.). The factors they consider are based on certain demographic

variables such as income, age, occupation etc. It also depends on attributes and life Performance

of the customer buying behavior becomes essential to get a competitive edge.

SCOPE OF THE PROJECT

The study aims to measure buying behavior level of the customers regarding Hero MotoCorp

Ltd. industries. The area within which the study was conducted regarding the information the

primary data is collected in the form of questionnaire collected from the dealers in Rangareddy

54

district. To sum up the project had within the scope of the study in the area of “Customer

Buying Behavior” of Hero MotoCorp Ltd. in Rangareddy district for a particular time (2012).

The research measures the experiences of customers. Defines and analyses the experiences based

on key deliverables. Gains insights into Customer expectations.

Research Methodology

SOURCES OF DATA:

DATA COLLECTION INSTRUMENTS:

PRIMARRY METHOD:

Primary data are those, which are collected fresh and for the first time and this happen to

be original in character. In this study primary data was collected by interview schedule method.

SECONDARY METHOD:

Secondary data are those, which are collected from existing data. Secondary data for this

study include appropriate material from newspaper, Magazines, Broachers, Company Reports,

Standard Text Books, and information from Internet has also been acquired wherever necessary.

FIELD WORK:

The project involved a fieldwork of around 1 month 15 days where in the survey was

carried out.

The survey was conducted in different areas of Hyderabad such as Koti, bowenpally, Ameerpet,

L.B Nagar, Hayath nagar.

55

METHODOLOGICAL ASSUMPTIONS:

a) The primary data has been collected by an interview schedule.

b) The sample for the study was selected on a convenience basis

c) All primary data collected is true and reflects the actual actions of the

Respondents.

d) The data collected has been coded, tabulated and analyzed into logical

Statement using simple statistical methods, pie charts, etc.

DESCRIPTION OF THE RESEARCH DESIGN:

A research design is a logical and systematic plan prepared for directing a research study

it specifies the methodology and technique to be adopted for achieving the objectives. It

constitutes the blueprint for the collection, measurement and analysis of data.

The main aim of the study is to evaluate the brand image of Hero Honda. The study is

descriptive in nature. Surveys are best-suited method for descriptive research. So survey method

is used for the study.

The preparation of a research plan for a study aids in establishing direction to the study and

knowing exactly what has to be done and how and when it has to be done at every stage.

A research plan describes the boundaries of research activities and enables the research to

channel his energies in the right work. With clear research objectives, in view the research can

proceed systematically towards his achievements.

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SAMPLING PROCEDURES:

Sampling is a systematic approach for selecting a few elements from an entire collection

of units (population) in order to make some inference about the total population it is a small

specimen or a segment of the whole population representing its general qualities as for as

possible. The study was undertaken by convenience sampling.

SAMPLE SIZE:

The study is conducted on a sample of 100 respondents.

SAMPLING FRAME:

The population for the study consists of Big bazaar owners in the cities of Hyderabad and

Secunderabad.

RESEARCH INSTRUMENTS:

An interview schedule was used to conduct the study.

LIMITATIONS:

I. The Time Period Of Project Is 45 Days.

II. Though The Customers Wanted To Give Information They could not Give As It Wastes

Their Business Time.

III. The Accuracy Of The Answers Depends Upon The Mode Of Interest Of Respondents.

IV. The opinions of the sample may or may not depict the exact opinions of the total

population.

57

CHAPTER 3

DATA ANALYSIS

&

INTERPRETATION

58

AGE GROUP OF THE RESPONDENTS:

The below table shows the age group of the respondents surveyed:

18-28 28-38 38-48 Above 48 Total

0

20

40

60

80

100

120

No Of Respondents

No Of Respondents

INFERENCE: From the above table, 8% of the respondents belong to the age group of 18-28

years, 28% of the respondents belong to the age group of 28-38 years, 10% of the respondents

belong to the age group of 38-48 years, 54% of the respondents belong to the age group of above

48 years.

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AGE No Of Respondents

18-28 8

28-38 28

38-48 10

Above 48 54

Total 100

OCCUPATION OF THE RESPONDENTS:

The below table shows the type of respondents of the respondents surveyed.

Studen

t

Business

Private

Employe

e

Govt Em

ployee

Total

0

20

40

60

80

100

No Of Respondents

No Of Respondents

INFERENCE: From the above table 0% of the respondents are students, 50% of the respondents

are businessmen, 32% of the respondents are private employee, 18% of the respondents are Govt

employee.

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Occupation No Of Respondents

Student 0

Business 50

Private Employee 32

Govt Employee 18

Total 100

WANTING A BIKE OR NOT:

The below table shows that whether the respondents is wanting a bike or not

Wanting a bike or not No of respondents

Yes 80

No 20

Total 100

80%

20%

Having a two wheeler or not

Yes

No

INFERENCE:

From the above table 80%of people wanting bike and 20% do not want bike.

TYPE OF BIKE THAT THE RESPONDENT IS WANTING:

61

The below table shows the type of BIKE that the respondent is wanting.

Type of BIKE No of respondents % of respondents

100CC 51 51

180CC 14 14

150CC 26 26

200CC 09 9

100CC 180CC 150CC 200CC0

20

40

60

80

100

120

% of respondentsNo of respondents

INFERENCE:

From the above table 51%of the respondents are Wanting Hero MotoCorp Ltd 100CC BIKE.

14%of the respondents want 180CC. 26%of the respondents are wanting 150CC.9% of the

respondents want 200CC.

SOURCES OF INFORMATION

The below table shows, from where did the respondent get the information about the

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BIKE.

Sources of information No of respondents

Offers 15

Advertisements 27

Referred from friends & relatives 33

Technology 10

Finance Schemes 15

Total 100

INFERENCE:

63

15.00%

27.00%

33%

10%

15% Offers

Advertisements

Referred from friends &relatives

Technology

Finance Schemes

From the above table 15%of people known from offers, 27% of people known from

advertisements, and 33% of people known from their friends and relatives, 10% of people known

from technology, 15% of people known from finance schemes.

SATISFACTION WITH HERO MOTOCORP LTD BIKE:

HERO Performance Mileage Features Price pickup Reliability Brand Image

Excellent 10 25 24 02 05 08 20

Very good 25 24 15 18 06 02 20

Good 10 21 25 12 15 35 25

Average 21 10 10 14 5 6 8

Poor 0 2 1 8 2 3 1

Perform

ance

Mileag

e

Featu

res Price

pickup

Reliab

ility

Brand Im

age

0%10%20%30%40%50%60%70%80%90%

100%

PoorAverageGoodVery goodExcellent

INFERENCE:

From the above table 17% of the respondents preferred PERFORMENCE as their main motive,

22% of the respondents preferred PRICE as their main motive, 4%of the respondents preferred

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FEATURES as their main motive, 22% of the respondents preferred TRANSPORT as their

main motive, 2% of the respondents preferred RELIABILITY as their main motive, 21% of the

respondents preferred BRAND IMAGE as their main motive.

PERFORMENCE:

The following table shows that, some of the brands of bikes respondents selected performance as

their main motive.

No of respondents

HEROBAJAJHONDASUZIKITotal

65

Brand No of respondents

HERO 32

BAJAJ 35

HONDA 30

SUZIKI 03

Total 100

INFERENCE:

The above table shows that Bajaj and Honda companies are the competitors with HERO Bikes.

PRICE:

The following table shows that, some of the brands of respondents selected PRICE as their main

motive.

Brand No of respondents

HERO 31

BAJAJ 18

HONDA 42

SUZIKI 9

Total 100

HERO BAJAJ HONDA SUZIKI Total0

20

40

60

80

100

120

No of respondents

No of respondents

66

INFERENCE:

The above table shows that HONDA is the competitor with HERO MOTO CORP LTD.

PICK UP:

The following table shows that, some of the brands of respondents selected PICK UP as

their main motive.

Brand No of respondents

HERO 50

BAJAJ 10

HONDA 30

SUZIKI 10

Total 100

HERO BAJAJ HONDA SUZIKI Total

No of respon-dents

50 10 30 10 100

5

25

45

65

85

No of respondents

Axis Title

INFERENCE:

67

The above table shows that HERO is the best.

MILEAGE:

The following table shows that, some of the brands of respondents selected MILEAGE as their

main motive.

MILEAGE No of respondents

HERO 50

BAJAJ 10

HONDA 30

SUZIKI 10

Total 100

HERO BAJAJ HONDA SUZIKI Total

0

20

40

60

80

100

120

No of respondents

No of respondents

INFERENCE:

68

The above table shows that HERO is the best.

RELIABILITY:

The following table shows that, some of the brands of respondents selected RELIABILITY as

their main motive.

Reliability No of respondents

HERO 35

BAJAJ 15

HONDA 30

SUZIKI 20

Total 100

HERO BAJAJ HONDA SUZIKI Total0

20

40

60

80

100

120

No of respondents

No of respondents

INFERENCE:

The above table shows that HONDA is the competitor with HERO .

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FEATURES:

The following table shows that, some of the brands of respondents selected FEATURES as their

main motive.

FEATURES No of respondents

HERO 35

BAJAJ 15

HONDA 30

SUZIKI 20

Total 100

HERO BAJAJ HONDA SUZIKI Total0

20

40

60

80

100

120

No of respondents

No of respondents

INFERENCE:

The above table shows that HERO is the best.

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BRAND IMAGE:

The following table shows that, some of the brands of respondents selected BRAND IMAGE is

their main motive

Brand Image No of respondents

HERO 40

BAJAJ 20

HONDA 30

SUZIKI 10

Total 100

HERO BAJAJ HONDA SUZIKI Total

0

20

40

60

80

100

120

No of respondents

No of respondents

INFERENCE:

71

The above table shows that HERO is the best.

Respondents:

Respondents who want to buy the BIKE of a particular brand:

Brand No of respondents

HERO 40

BAJAJ 15

HONDA 30

SUZIKI 15

Total 100

HERO BAJAJ HONDA SUZIKI Total0

20

40

60

80

100

120

No of respondents

No of respondents

INFERENCE:

72

The above table shows 40% of the respondents want to buy HERO BIKES.

CHAPTER-IV

73

CONCLUSION

45% of the respondents are Hero MotoCorp Ltd customers and hence it is most

Preferred BIKE brand out of various brands.

Hero MotoCorp Ltd 150CC is the most preferred model out of all products

60% of the respondents are considering Hero MotoCorp Ltd brand before

Purchasing there for use.

Most of the respondents are getting information through friends

Before purchasing the BIKE.

Most of the respondents are Wanting good satisfaction with dealer

Service comparing to other brands.

Most of the respondents are giving more preference to mileage.

60% of the respondents are affecting by their friends and relatives.

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FINDINGS

50% of the Hero MotoCorp Ltd customers are business people and 32% of the customers

are private employees.

Most of the respondents belong to the age group of 18-50 years.

Hero MotoCorp Ltd 150CC is the most preferred model in the Hero MotoCorp Ltd

products.

Most of the respondents getting information through the Media and friends before

purchasing the vehicle.

Most of the respondents are motivated by their friends and family members.

Most of the respondents have good satisfaction with the performance of their BIKE

strength.

64% of the respondents are satisfied with the mileage of their BIKE.

Most of the respondents felt that the price is reasonable.

Cent percent of the respondents satisfied with the response of the sales executive at first

visit.

60% of the Hero MotoCorp Ltd users have good satisfaction with the performance given

b the company.

Most of the respondents are satisfied with the response of the company to the complaints

given by the customers.

Most of the respondents are satisfied with the fulfillment of promises by the company.

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SUGGESTIONS

The BIKEs recently introduced by Hero MotoCorp Ltd are mostly concerned about home

base. So, they should also consider commercial people while manufacturing.

Indian market is a price sensitive market’s the BIKEs should be at Minimum price with

maximum quality.

The standard of pricing should be improved.

Advertisements in Televisions, offers should be increased to attract the People.

If Hero MotoCorp Ltd can improve in Performance and brand image it will be the best in

all the other competition brands.

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QUESTIONNAIRE

BUYING MOTIVES FOR TWO WHEELERS

1. NAME:

2. AGE :

18-25 25-35 35-45 Above-45

3. GENDER

Male Female

4. EDUCATION

Under Graduate Graduate Post Graduate Professional

5. OCCUPATION

Student Business Govt. Employee Private Employee

6. INCOME PER MONTH

5000-10000 10000-20000 20000-30000

7. DO YOU HAVE OWN BIKE

Yes No

8. IF YES, WHICH BRAND YOU HAVE

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HERO BAJAJ HONDA SUZUKI

9. WHAT IS THE MAIN MOTIVE BEHIND PURCHASING THAT BRAND?

Performance FEATURES Price

TRANSPORT Reliability Brand Image

10 IN WHICH WAY YOU PREFERED IN BUYING THAT PERTICULAR BRAND

BIKE ?

Advertisement Referred from friends & Relatives

Technology Finance Schemes’ Offers

11. RANK THE BIKE YOU OWN ON THESE FACTORS

POOR AVERAGE GOOD VERY GOOD EXCELLENT

Performance

mileage

Features

Price

Pick up

78

Reliability

Brand Image

12. IF YOU DON’T USE BIKE, THEN WHICH BRANDS YOU PREFER TO BUY?

HERO BAJAJ HONDA

SUZUKI

13. WHAT IS THE REASON FOR SELECTING THAT BRAND?

Performance Price Mileage

Finance Facility Brand Image Reliability

14. IN WHICH WAY YOU PREFERED IN BUYING THAT BRAND?

Offer Advertisement Referred from Friends & Relatives

Technology Finance Schemes’

79

BIBILIOGRAPHY

S.No. AUTHOR NAME REFERED BOOKS

1. PHILLIP KOTLER Principles of Marketing – 11th Edition

Prentice Hall India.

2. PHILLIP KOTLAR Marketing Management – Millennium

Edition.Prentice Hall India

3. V.S.RAMASWAMY & Marketing Management -7th Edition

NAMAKUMARI Millennium India Ltd.

4. RICHARD R STILL Sales Management -5th Edition

Prentice Hall India.

5. G.C.BERI Marketing Research -6th Edition

Tata McGraw Hill Co.Ltd.

6. LUCK DAVID & Marketing Research -7th Edition

ROBIN RONALD Prentice Hall India.

WEB SITES

WWW.GOOGLE.COM

WWW.HERO HONDA.COM

WWW.GOOGELFINANCE.COM

WWW.INDUSTRYSINDIA.COM

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