PROJECT REPORT ON FACTOR AFFECTING

CAR BUYING BEHAVIOUR OF CUSTOMER.

SUBMITTED BY: SUBMITTED TO:GAURAV PRATEEK KHANNA MR. ASHWINI PANESARREG. NO: 11011109COURSE : MBA

INTRODUCTION TO AUTOMOBILES INDUSTRY

• The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.

• 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.

• Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog.

• In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles.

• Landmark of Indian automobile Industry.

• 1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves Company, Mumbai.

 • 1901 First Indian to own a car in India – Jamsetji Tata.

 • 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata.

 • 1905 Fiat Motors.

 • 1928 Chevrolet Motors.

• 1942 Hindustan Motors

LITERATURE REVIEW

Joseph (2012) examined that automobile industry in India happens to be the ninth largest in the world. Following Japan, South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles. The likely capacity and production of the automotive sector for the period 2007-12, with an indication of the perspective for 10 to 15 years is expected that the automotive industry will grow quite rapidly in the next 10 years and is expected to reach production volumes of almost 3 million passenger cars and more than 30 million two wheelers.

Mitra, Kushan (2011) conducted that recent price increase of petrol and diesel and its impact for car buyers in India. The price increase affects users of bikes which have petrol engines more than the middle class man who drives the diesel-variant of the Maruti Swift. Moreover, it notes that the move will also affect small and medium size scale manufacturing firms which routinely use diesel to operate their factories. Rising fuel prices will eventually pinch the wallets of all car and motorcycle drivers. But an absurd subsidy on diesel is skewing the Indian car market

• Chidambaram and Alfread (2007) examined that there are certain factors which influence the brand preferences of the customers. Within this framework, the study reveals that customers give more importance to fuel efficiency than other factors. They believe that the brand name tells them something about product quality, utility, technology and they prefer to purchase the passenger cars which offer high fuel efficiency, good quality, technology, durability and reasonable price.

 • Mandeep and Sandhu (2006) conducted that study covers the owners of

passenger cars living in the major cities of the State of Punjab and the Union Territory of Chandigarh. The respondents perceive that safety and comfort are the most important features of the passenger car followed by luxuriousness. So the manufacturers must design the product giving maximum weightage to these factors.utility, technology and they prefer to purchase the passenger cars which offer high fuel efficiency, good quality, technology, durability and reasonable price.

OBJECTIVE OF STUDY

The purpose of this research is to study the behaviour of consumers, their importance in the aspects of life style, perception of product attributes and level of satisfaction. Hence, the study is aimed at the following objectives.

 • To evaluate car owners‟ perception and behaviour pertaining to the

purchase and use of cars.

• To identify and analyze the factors influencing the purchase of cars.

NEED AND SCOPE OF STUDY

• Nowadays, car has become a necessity and forms a part of life. Therefore, there is a significant scope to examine the perception and purchase behavior of the consumers of cars.

• This study tries to analyze the influence of perception in the consumers‟ mind and how this information can be used successfully by marketers to gain entry into the minds of the consumers. The scope of this research has a very good future.

RESEARCH METHODOLOGY &DESIGN

• Primary data: The primary data was collected from the respondents by administering structured, questionnaire and also through observations, interviews and discussion with management teams.

 • Secondary data: A part from primary data the secondary data is being collected through textbooks,

internet, and articles.

 • SAMPLING TECHNIQUE:

Random sampling

 • SAMPLING SIZE:

 

Sample taken among them are 100 respondents

 

 

 

DATA ANALYSIS AND INTERPRETATION• AGE

 • Below18 18-25 26-35 36-50 51 and above.

INTERPRETATION:

The above data shows age of respondents. Mostly the age group of 26-35 are more into purchasing luxury cars.

18-2520%

26-3544%

36-5025%

51&ABOVE11%

AGE

Occupation

• Service Business Student Housewife

 

INTERPRETATION:

The above data shows occupation of respondents. 73 % respondents are from business class and 11 % from services.

11%

73%

16%

OCCUPATIONSERVICE BUSINESS STUDENT HOUSEWIFE

Section IIAccording to you which of these Factors are Affecting Car Purchasing Decision.

• Price Of The Car.

INTERPRETATION:

This data shows that 90% respondent agreed that price factor affects the purchasing decision of the car as price plays an important role and only 2% disagreed that price factor does not affect the purchasing decision of the car.

90%

5%

2% 2% 1%

PRICE OF THE CARSTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

You Take Suggestions From your Family Members

10%

80%

7%

3%

SUGGESTION FROM YOUR FAMILY MAMBERSSTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 80% respondent agreed that suggestion from family members affects the purchasing decision of the car and only 3% disagreed that price factor does not affect the purchasing decision of the car. It shows this is important factor while purchasing the car.

Family Needs

60%21%

5%4%

10%

FAMILY NEEDSSTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 60% respondent strongly agreed that family needs affects the purchasing decision of the car and 10% disagreed that family needs does not affect the purchasing decision of the car. It depends according to family needs .Every person have different criteria to consider this factor.

Status Symbol

70%

18%

10%2%

STATUS SYMBOLSTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 70% respondent strongly agreed that status symbol affects the purchasing decision of the car and 10% respondent does not consider the status symbol while purchasing the car. Most of the person consider this factor while car purchasing to show the status in the society.

Brand Name

81%

15% 2% 2%

BRAND NAMESTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 81% respondent strongly agreed that brand name affects the purchasing decision of the car and 2 % respondent disagreed that the brand name factor does not affect the purchasing decision of the car. Most of the person considers this factor while car purchase to enhance their status in the society.

 Income Level

68%

27%

3% 2%

INCOME LEVELSTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 68% respondent strongly agreed that income level affects the purchasing decision of the car and 2 % respondent disagreed that the income level factor does not affect the purchasing decision of the car. This is the important factor that affect the car purchasing decision . Every person buy the car according to their income level.

Festival seasons/Offers

69%

22%

4%2% 3%

FESTIVAL SEASONS/OFFERSSTRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 69% respondent strongly agreed that festival seasons /offers affects the purchasing decision of the car and 2- 3 % respondent disagreed that the festival seasons/offers factor does not affect the purchasing decision of the car. Most of the customer prefer to buy car during the festival seasons and special offers.

Government policies and Regulation

81%

17%

2%

GOVERNMENT POLICIES AND REGULATIONSSTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 81% respondent strongly agreed that GOVERNMENT POLICIES AND REGULATIONS affects the purchasing decision of the car and 2 % respondent disagreed that it does not affect the purchasing decision of the car. The middle class families always consider this factor while taking car purchasing decision.

 After sales services

94%

6%

AFTER SALES SERVICESSTRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 94% respondent strongly agreed that after sales services affects the purchasing decision of the car .Mostly customer consider the after sales services to taking car purchasing decision .This is the important factor

Installment Payment Facility

92%

4% 2% 2%

INSTALLMENT PAYMENT FACILITYSTRONGLY AGREE AGREE NEUTRALDISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 92% respondent strongly agreed that installment payment facilities plays a vital role while purchasing a car.

 Information Provided By Salesperson

83%

10% 7%

INFO PROVIDED BY SALESPERSONSTRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 83 % respondent strongly agreed that information provided by salespersons affects the purchasing decision of the car. This is the factor that affects car purchasing decision.

Easy Availability Of Spare Parts

98%

2%

AVAILABILTY OF SPARE PARTSSTRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 98% respondent strongly agreed that availability of spare parts affects the purchasing decision of the car. After sales Services important factor while taking decision to buy the car.

Availability of Services Station

93%

7%

AVAILABILITY OF SERVICE STATIONSTRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

INTERPRETATION: This data shows that 93% respondent strongly agreed that availability of service station affects the purchasing decision of the car. This is the factor that affects car purchasing decision. After Services important factor while taking decision to buy the car. Every person consider this factor because after sales services play important role to maintain the brand identity in the market.

FINDINGS

• Factors that influence purchasing decisions:• When purchasing anything other than a fast moving consumer item, the

process should never be a case of simply picking up an item and paying for it, as it is likely that you will have problems with a purchase at sometime. When deciding whether to purchase a product or not there are many factors to consider, such as;  

• Price of the car

 • Family needs

 • Brand name

 • Income level

 

• Government policies and regulations

 • Import duties imposed by government

 • Advertisement and promotion

 • After sales services

 • Instalment payment facility

 • Safety

 • Easy Availability of spare parts..

 

CONCLUSION

• The study was conducted to identify the factors that are affecting car purchasing decision.

• Consumer behaviour refers to the selection, purchase and consumption of goods and services for the satisfaction of their wants. There are different processes involved in the consumer behaviour.

• After selecting the commodities, the consumer makes an estimate of the available money which he can spend. Lastly, the consumer analyzes the prevailing prices of commodities and takes the decision about the commodities he should consume.

• Consumer behaviour is deeply influenced by cultural factors such as: buyer culture, subculture, and social class.

REFERENCES 

• http://en.wikipedia.org/wiki/Automotive_industry_in_India

 • Joseph (2012) “A Study on Factors Influencing Buying Behaviour of Passenger Car

Market in Tuticorin District - Tamil Nadu” http://papers.ssrn.com/sol3/papers

 • Charles Kelly (2010) “Factors Which Influence Customer Buying Decision”

http://www.articlesbase.com/customer-service-articles/153956-factors-which-influence-customer-buying-decision-2205347.html

 • Chidambaram and Alfread (2007)„A Study on Brand Preference of Passenger Car with

Reference to Coimbatore City‟, Indian Journal of Marketing, Vol.34, No.9, September 2007, p.30.

 • Mandeep Kaur and Sandhu(2006), H.S., „A Study on Factors Influencing Buying

Behaviour of Passenger Car Market‟, Paradigm, Vol. 8, No.2, July – December 2006, p.69.

 • Mitra, Kushan (2011) “Subsidizing the rich” Business today.Vol. 20 Issue 13, p128-

129,p.2.

 • Prashant (2011) “Does buying a diesel car translate into savings in the long run”

http://articles.economictimes.indiatimes.com/2011-07-01/news/29726379_1_petrol-and-diesel-diesel-prices-litre