Project on buying behaviour

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CHAPTER ONE INTRODUCTION

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consumer buying behaviour on electric two wheeler

Transcript of Project on buying behaviour

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CHAPTER ONE

INTRODUCTION

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INTRODUCTION

Introduction to the Study

Consumer Behaviour is the study of individuals, groups, or organizations and the

processes they use to select, secure, use, and dispose of products, services, experiences, or

ideas to satisfy needs and the impacts that these processes have on the consumer and society.

It blends elements from psychology, sociology, social anthropology, marketing and

economics. It attempts to understand the decision-making processes of buyers, both

individually and in groups such as how emotions affect buying behaviour. It studies

characteristics of individual consumers such as demographics and behavioural variables in an

attempt to understand people's wants. It also tries to assess influences on the consumer from

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

The personal consumer is the individual who buys good and services for his own use or for

his household usage. They buy goods for ultimate consumption; hence, they are called as

“end users”, or “Ultimate users”. The year 2000s have borne witness to spectacular shifts in

the marketplace activated by prickly changes in the lifestyle patterns of the past and present

and the essential revolution in the communication technology. Time tested concepts on brand

loyalty and mass marketing, are being turned on their heads as they fail to gauge the

behaviour of new generation customers. The behaviour is characterized by the exceptionality

of individual prospects, the preference for numerous options, inclination to abandon brand

loyalty and switch to competition brands that give higher apparent value. The new breed is

even willing to import to satisfy specific requirement. It is complicated to categorize this

generation by conservative demographic factors and unless their contemplation process and

buying behaviour are fully understood, decisions on product designs and packaging, branding

and distribution channels are likely to be misplaced.

Customer behaviour study is based on consumer buying behaviour, with the customer

playing the three distinct roles of user, payer and buyer. Research has shown that consumer

behaviour is difficult to predict, even for experts in the field. Relationship marketing is an

influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of

the true meaning of marketing through the re-affirmation of the importance of the customer or

buyer. A greater importance is also placed on consumer retention, customer relationship

management, personalization, customization and one-to-one marketing. Social functions can

be categorized into social choice and welfare functions.

Buying Behaviour; Purchase decision making pattern that is a complex amalgam of needs and

desires, and is influenced by factors such as the consumer's societal role (parent, spouse,

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worker,) etc. social and cultural environment and norms, aspirations and inhibitions.

Consumer buyer behaviour is considered to be an inseparable part of marketing and Kotler

and Keller (2011) state that consumer buying behaviour is the study of the ways of buying

and disposing of goods, services, ideas or experiences by the individuals, groups and

organizations in order to satisfy their needs and wants.

Buyer behaviour has been defined as “a process, which through inputs and their use though

process and actions leads to satisfaction of needs and wants” (Enis, 1974, p.228). Consumer

buying behaviour has numerous factors as a part of it which are believed to have some level

of effect on the purchasing decisions of the customers.

Alternatively, consumer buying behaviour “refers to the buying behaviour of final consumers,

both individuals and households, who buy goods and services for personal consumption”

(Kumar, 2010, p.218). From marketers’ point of view issues specific aspects of consumer

behaviour that need to be studied include the reasons behind consumers making purchases,

specific factors influencing the patterns of consumer purchases, analysis of changing factors

within the society and others.

Customer satisfaction, a business term is a measure of how products and services supplied by

a company meet or surpass customer expectation. It is seen as a key performance indicator

within business and is part of the four perspectives of a Balanced Scorecard. In a competitive

marketplace where businesses compete for customers, customer satisfaction is seen as a key

differentiator and increasingly has become a key element of business strategy.

Significance of the Study

This study has an overview of Go Green BOV company or organization. The study

gain knowledge about the company, focusing on overall industry and on the customer buying

behavior.

Literature Review

Kotler and Keller (2011) highlight the importance of understanding consumer buying

behaviour and the ways how the customers choose their products and services can be

extremely important for manufacturers as well as service providers as this provides them with

competitive advantage over its competitors in several aspects. For example, they may use the

knowledge obtained through studying the consumer buying behaviour to set their strategies

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towards offering the right products and services to the right audience of customers reflecting

their needs and wants effectively.

Another valuable argument is provided by Egen (2007) on the importance of understanding

the consumer behaviour. According to the author, better awareness of consumer buying

behaviour is a positive contribution to the country’s economic state. The author further argues

that the quality of goods and products are exceptionally good in countries where buying

behaviour of consumers is well understood. This in turn increased the competitiveness of the

products and services in international market increasing the export potential of the country.

Meanwhile, high quality of domestic products and services lead to sophisticated domestic

customers’ base (Blackwell et al, 2006).

Kotler (2005) it is essential to mention that despite the great efforts to learn and understand

the buying behaviour of consumers, it is very difficult to identify the exact reasons why a

consumer purchases and prefers one product or service over another one. This is because

consumers sometimes make purchasing decisions based on their emotional beliefs which they

even themselves are not well aware of.

The assumption that people have series of needs which lead to drive state. Faison and

Edmund (1977)

“Those acts of individuals directly involved in obtaining, using, and disposing of economic

goods and services, including the decision processes that precede and determine these acts”

Engel, (1986)

Consumer behaviour is the study of how people buy, what they buy, when they

buy and why they buy. Kotler (1994)

Consumer behaviour is the study “of the processes involved when individuals or groups

select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs

and desires” Solomon (1995)

“the behaviour that consumers display in searching for, purchasing, using, evaluating, and

disposing of products and services that they expect will satisfy their needs” Schiffman (2007)

One of the current fundamental assumptions in consumer behaviour research is that

individuals often purchase products for their subjectively perceived values rather than their

primary functions (Stávková, Stejskal & Toufarova, 2008). This does not mean that the

products’ basic functions are not important, but that the contemporary role of a product is

more than its basic use-value (Solomon, 2004). Frequently, consumers do not rate products

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according to their core attributes (i.e., the primary utility they provide) but, above all,

according to the so-called real product (i.e., a particular products’ qualities) and the extended

product, which represents the set of intangible factors that confer a desired perceived

advantage on the consumer – including image, consultancy, and after-sale service (Foret &

Procházka, 2007).

Acebron et al (2000). The aim of the study was to analyze the impact of previous experience

on buying behaviour. In their studies the authors used structural equation model in order to

identify the relationship between the habits and previous experience on the consumer buying

decision. Their findings show that personal habits and previous experience on of the

consumers have a direct impact on the consumers’ purchase decision. They also found that

the image of the product has a crucial impact on the purchasing decision of the consumer and

further recommended that the product image should continuously be improved in order to

encourage the consumers towards purchasing.

Lee (2005) carried out study to learn the five stages of consumer decision making process in

the example of China. The researcher focuses on the facts that affect the consumer decision

making process on purchasing, in particular demographic effects such as gender, education,

income and marital status. The author employed questionnaire method in order to reach the

objectives of the research. Analysis of five stages of consumer decision making process

indicate that impact of family members on the consumer decision making process of

purchasing was significant.

One of the common models of consumer decision making process has been offered by

Blackwell et al (2006). According to him, the five stages of consumer decision making

process are followings: problem/need recognition, information search, evaluation of

alternatives, purchase decision made and post-purchase evaluation.

Each stage is then defined by a number of researchers varying slightly but leading to a

common view about what each stage involves. For example, according to Bruner (1993) first

stage, need recognition occurs when an individual recognizes the difference between what

they have and what they want/need to have. This view is also supported by Neal and Questel

(2006) stating that need recognition occurs due to several factors and circumstances such as

personal, professional and lifestyle which in turn lead to formation of idea of purchasing.

In the next stage, consumer searches information related to desired product or service

(Schiffman and Kanuk, 2007). Information search process can be internal and external. While

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internal search refers to the process where consumers rely on their personal experiences and

believes, external search involves wide search of information which includes addressing the

media and advertising or feedbacks from other people (Rose and Samouel, 2009).

Once the relevant information about the product or service is obtained the next stage involves

analyzing the alternatives. Kotler and Keller (2005) consider this stage as one of the important

stages as the consumer considers all the types and alternatives taking into account the factors

such as size, quality and also price.

Backhaus et al (2007) suggested that purchase decision is one of the important stages as this

stage refers to occurrence of transaction. In other words, once the consumer recognized the

need, searched for relevant information and considered the alternatives he/she makes decision

whether or not to make the decision. Purchasing decision can further be divided into planned

purchase, partially purchase or impulse purchase as stated by Kacen (2002) which will be

discussed further in detail in the next chapters.

Finally, post-purchase decision involves experience of the consumer about their purchase.

Although the importance of this stage is not highlighted by many authors Neal et al (2004)

argues that this is perhaps one of the most important stages in the consumer decision making

process as it directly affects the consumers’ purchases of the same product or service from the

same supplier in the future.

It is important to note that The Five Stage Model is not the only model related to consumer

decision-making, and there are also a range of competing models that include Stimulus-

Organism-Response Model of Decision Making developed by Hebb in 1950’s, Prescriptive

Cognitive Models, The Theory of Trying (Bagozzi and Warsaw, 1990), Model of Goal

Directed Behaviour (Perugini and Bagozzi, 2001) and others.

Focus of the Problem

The study was done on consumer buying behavior in electric two wheelers. The focus

of the study was mainly to understand the factors influencing the customers while buying

electric two wheelers and to identify the different variables in comparison to non-electric two

wheelers. It was also in consideration to know the problems faced by customers who are

using electric two wheelers.

Objectives of the Study

• To identify the factors influencing the customers while buying electric two wheelers

• Proper understanding of major problems faced by electric two wheeler users.

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• To suggest ways to improve level of customer satisfaction

Scope of Study

The Study facilitated to acquaint about the customers buying behaviour on electric

two wheelers and to know about the customers overall experience in using electric two

wheelers which would help the company to improvise themselves.

Research methodology

Research Methodology deals with the method of study i.e. how the study was carried

out and what were the various techniques used. It is a investigation or enquiry in a systematic

manner in order of find solution to problem in research. It consists of defining and redefining

problems, collecting and evaluating data, making deduction and reaching calculation,

formulating suggested solution etc.

Research Design

Research design is a conceptual structure with in which research would be conducted.

Research design involves the following considerations:

• Means of obtaining the information.

• Availability & skills of the researcher & his staff.

• Explanation of the way in which selected means of obtaining information will be

organized.

• Time availability for research.

• The cost factor relating to research

Sampling Design

It includes size of sample & the technique that we used for selecting the different

items from the sample. A sampling design is a definite plan for obtaining a sample from a

given population. It refers to the technique that the researcher adopts in selecting items for the

sample. It should be ensured in the sampling process itself that the sample selected is

representative of the population

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Sample size - By sample size we mean that the number of people to be selected from the

population to make a sample. A sample size should be sufficient enough that can serve our

purpose. It should have Efficiency, Flexibility, and Reliability. My sample size is of 100

customers of Go Green BOV.

Sample unit - Sample unit is individual customers of the company whose buying behavior has

to be examined.

Sample technique- This is the type of technique that one uses to select the items for the

sample. The sampling method that I have used is convenient sampling, which is a type of

Non- Probabilistic sampling.

Collection of Data

Data collection includes the type of data & the source of data that we used while

doing a project. The data is collected from both primary and secondary sources

Primary Data: Primary data is the data which is new .We use the primary source to

collect the primary data. Primary source include interviewing method. As a primary Source of

data I have filled the questionnaires from different customer who have purchased electric two

wheelers form Go Green Bov.

Questionnaire: A questionnaire is prepared to examine the buying behavior and to

identify factors which influences consumer buying behavior of electric two wheelers. The

language of questionnaire should be so simple & easy so that everyone can answer easily.

These questions has helped me to study the Consumer’s Buying Behavior

Secondary Data: The data which is already in existence is known as secondary data.

Secondary sources include websites, brochures of the respective companies, various papers,

and magazines published from time to time. Historical documents and other sources of

published information.

The four methods of secondary data collection are as follows:

1) Internet search, using online resources to gather data for research purposes. This method is

not usually very reliable and requires appropriate citation and critical analysis for findings.

2) Library search and indexing, this technique requires to go through written texts that have

already done similar work and utilizing their researches for your dissertations.

3) Data collection organizations, for example Gallup and AC Nielsen conduct researches on a

recurrent basis ranging in a wide array of topics.

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4) News Papers and Magazines, journals and other similar periodicals

.

Limitations of the Study

Though the present study aimed to achieve the above- mentioned objectives in full

earnest and accuracy, it was hampered due to certain limitations. Some of the limitations of

this study may be summarized as follows:

• The time constraint faced in the project might have affected the comprehensiveness of

its finding

• The sample size was small and hence the results can have a degree of variation.

• The response of the customers in giving information was lukewarm.

• Hesitance from authorities to share the internal information.

• Questionnaire is subjected to errors.

• Getting accurate responses from the respondents due to their inherent problems were

difficult. They were partial, and refused to cooperate.

• Since we did not had the privilege to work on a large scale, so many finding and

recommendations may not be as much in tune with their ground realities .

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CHAPTER TWO

INDUSTRY, COMPANY AND PRODUCT

PROFILE

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INDIAN AUTOMOBILE INDUSTRY

History

In 1897, the first car ran on an Indian road. Through the 1930s, cars were only

imported, and in very small numbers. An embryonic automotive industry emerged in India in

the 1940s. Hindustan was launched in 1942, long-time competitor Premier in 1944, building

GM and Fiat products respectively. Mahindra & Mahindra was established by two brothers in

1945, and began assembly of Jeep CJ-3A utility vehicles. Following 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. In 1953, an import

substitution programme was launched, and the import of fully built-up cars began to be

restricted.

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

and the license raj, which hampered the Indian private sector. After 1970, with restrictions on

the import of vehicles set, the automotive industry started to grow; but the growth was mainly

driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item. In

the 1970s, price controls were finally lifted, inserting a competitive element into the

automobile market. However, by the 1980s, the automobile market was still dominated by

Hindustan and Premier, who sold superannuated products in fairly limited numbers. During

the eighties, a few competitors began to arrive on the scene.

In 1986, to promote the auto industry, the government established the Delhi Auto

Expo. The 1986 Expo was a showcase for how the Indian automotive industry was absorbing

new technologies, promoting indigenous research and development, and adapting these

technologies for the rugged conditions of India. The nine-day show was attended by then

Prime Minister Rajiv Gandhi.

Liberalisation And Its Effect On The Industry

Eventually multinational automakers, such as, Suzuki and Toyota of Japan and

Hyundai of South Korea, were allowed to invest in the Indian market, furthering the

establishment of an automotive industry in India. Maruti Suzuki was the first, and the most

successful of these new entries, and in part the result of government policies to promote the

automotive industry beginning in the 1980s. As India began to liberalise its automobile

market in 1991, a number of foreign firms also initiated joint ventures with existing Indian

companies. The variety of options available to the consumer began to multiply in the nineties,

whereas before there had usually only been one option in each price class. By 2000, there

were 12 large automotive companies in the Indian market, most of them offshoots of global

companies.

In 2000, in tune with international standards to reduce vehicular pollution, the central

government unveiled standards titled "India 2000", with later, upgraded guidelines to be

known as Bharat stages. These standards are quite similar to the stringent European standards,

and have been implemented in a phased manner, with the latest upgrade being implemented in

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13 cities and, later, in the rest of the nation. Delhi (NCR), Mumbai, Kolkata, Chennai,

Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur and Agra are the

13 cities where Bharat Stage IV has been imposed while the rest of the nation is still under

Bharat Stage III.

Exports

Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and

neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe

(Hungary). After some growth in the mid-nineties, exports once again began to drop as the

outmoded platforms provided to Indian manufacturers by multinationals were not

competitive. This was not to last and today India manufactures low-priced cars for markets

across the globe. As of 18 March 2013, global brands such as Proton Holdings, PSA Group,

Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to

the competitiveness of the market, as well as the global economic crisis.

India's automobile exports have grown consistently and reached $4.5 billion in 2009,

with the United Kingdom being India's largest export market, followed by Italy, Germany,

Netherlands, and South Africa.According to the New York Times, India's strong engineering

base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the

expansion of manufacturing facilities of several automobile companies like Hyundai, Nissan,

Toyota, Volkswagen, and Maruti Suzuki. In 2008, South Korean multinational Hyundai

Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000

vehicles manufactured in its India plant by 2011.Similarly, US automobile company, General

Motors announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to set up a plant in India with an

annual capacity of 250,000 cars, for US$500 million. The cars will be manufactured both for

the Indian market and for export. The company said that the plant was a part of its plan to

make India the hub for its global production business. Fiat Motors announced that it would

source more than US$1 billion worth auto components from India. In 2009 India (0.23m)

surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea

(1.12m) and Thailand (0.26m) by allowing foreign carmakers 100% ownership of factories in

India, which China does not allow.

In recent years, India has emerged as a leading center for the manufacture of

small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars

annually from India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti

Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also

export small cars from its new Indian assembly line. Tata Motors exports its passenger

vehicles to Asian and African markets, and is preparing to sell electric cars in Europe in 2010.

The firm is planning to sell an electric version of its low-cost car the Tata Nano in Europe and

in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV

models in the U.S. market. Bajaj Auto is designing a low-cost car for Renault Nissan

Automotive India, which will market the product worldwide. Renault Nissan may also join

domestic commercial vehicle manufacturer Ashok Leyland in another small car project.

While the possibilities for the Indian automobile industry are impressive, there are challenges

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that could thwart future growth. Since the demand for automobiles in recent years is directly

linked to overall economic expansion and rising personal incomes, industry growth will slow

if the economy weakens.

Growth Drivers Of The Industry

• Passenger vehicles are to increase at a CAGR of 16% between 2013-2020.

• Two-wheelers and three-wheelers are projected to expand at a CAGR of 9%

between 2013-2020.

• A growing working population and an expanding middle class are expected

to remain key demand drivers. GDP per capita has grown from USD 1,432.25

in 2010 to USD 1,500.76 in 2012, and is expected to reach USD 1,869.34 by

2018.

• India has the world’s 12th largest number of high net worth individuals, with

a growth of 20.8%, the highest among the top 12 countries.

• Increasing disposable incomes in the rural agri-sector.

• The presence of a large pool of skilled and semi-skilled workers and a strong

educational system.

• A large number of products are available to consumers across various

segments. With the entry of a number of foreign players and reduced overall

product lifecycle, quicker product launches have become the order of the day.

• The availability of a variety of vehicle models meets diverse need and

preferences.

• Easy finance schemes, owing to which the auto finance industry has grown at

the rate of 13% between 2008-13. Car finance penetration has increased from

68% to 70% between 2008-10 and between 70% to 72% in 2011-13.

• Favourable government policies like lower excise duties, automotive mission

plans, the constitution of NATRiP etc.

Fdi Policy In Automobile Industry

100% FDI is allowed under the automatic route in the auto sector, subject to all the

applicable regulations and laws.The Foreign Direct Investment in Indian Automobile Industry

has opened up new avenues for the development of this important sector of Indian industries.

The liberalization of government policies regarding FDI in the automobile industry of India

has increased the scope of this industry. The first FDI player in the Indian automobile

industry was Suzuki. In 1980s this company entered into a joint venture with Maruti Udyog, a

state run enterprise. The then Indian government permitted this company to enter the Indian

automobile market in 1983.In 1991, the government of India liberalized its policies regarding

the automobile industry of India Foreign Direct Investment in the automotive industry of

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India was permitted. In 1993, FDI was also allowed in the passenger car segment of Indian

automobile industry

Electric Vehicle And Hybrid Vehicle Industry In India

During April 2012, the Indian government planned to unveil the road map for the

development of domestic electric and hybrid vehicles (xEV) in the country. A discussion

between the various stakeholders, including Government, industry, and academia, was

expected to take place during 23–24 February. The final contours of the policy would have

been formed after this set of discussions. Ministries such as Petroleum, Finance, Road

Transport, and Power are involved in developing a broad framework for the sector. Along

with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and

Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota

Kirloskar), were involved in this task. The Government has also proposed to set up a Rs 740

crore research and development fund for the sector in the 12th five-year plan during 2012-17.

The idea is to reduce the high cost of key imported components such as the battery and

electric motor, and to develop such capabilities locally.

The category of battery electric vehicles, along with extended-range electric vehicles,

attracts a disproportionate amount of media attention compared to the mild and full hybrids

that have been on the market for several years now. But the number of electric vehicles that

will actually be built between now and 2015 is a small fraction of the total projected for the

two hybrid types.

Pure battery electric vehicles, or BEVs, store energy in a lithium-ion battery pack

sized from 20 to 80 kilowatt-hours, powering one or more electric motors that provide torque

to the wheels. In dispensing with the combustion engine and its associated mechanical

drivetrain, BEVs radically reduce the complexity and parts count of a typical vehicle, while

offering designers new opportunities in both structure and packaging.

The typical range for first-generation B- and C-segment BEVs is likely to be roughly

100 miles, which raises fears of the dreaded “range anxiety” among buyers. Alleviating this

worry leads to a variation on the BEV, the extended-range electric vehicle, or E-REV.

The E-REV design gives range comparable to a combustion-engined car, which

BEVs simply can’t do with today’s battery technology. But the gain in range comes with a

cost: E-REVs carry the complexity and expense of a second powertrain – the liquid-fuelled

generator set – that may rarely, if ever, be used by drivers.

Factors Affecting The Market

As the global vehicle market has stabilised following the precipitous declines of 2008

and 2009, roll-outs of advanced technology vehicles have been delayed by some companies

(e.g. General Motors) but sped up by others (e.g. Nissan, most German makers).

There are four concerns that must be addressed in the public eye to enable the

widespread roll-out of electric-drive vehicles. They include concerns over adequate supplies

of electricity to recharge plug-in cars; analyses of the ‘wells to wheels’ carbon impact of cars

powered largely or exclusively by electricity; the troubling question for vehicle makers of

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whether they are willing to see their core energy storage medium produced by an entirely

separate industry; and the emergence of lithium as a strategic commodity, along with the

associated geopolitics.

Electric Vehicle Market Forecast

The battle over market projections for battery-electric vehicles (BEVs), including

extended-range EVs (EREVs) over the next 10 years is marked by a fascinating blend of data,

assumptions, and quasi-religious beliefs.On one hand stands Nissan CEO Carlos Ghosn, who

says that BEVs and EREVs will make up 10% of global vehicle sales by 2020, or perhaps 8m

vehicles out of a total global production of 80m. Earlier, he said he expects the Nissan-

Renault alliance to build as many as 500,000 electric vehicles alone by the end of 2012, when

five battery plants across the globe come on line. More recently, Nissan spokespeople have

ramped that back to a capacity of 550,000 units by 2016.

On the other hand are numerous industry analysts who believe that battery powered

vehicles will struggle even to reach beyond 1 or 2% of the global total in 2020.Putting on our

thickest future-vision spectacles, just-auto estimates that BEVs and EREVs (vehicles with

“large” battery packs) will take at best 3 to 5% of the market 10 years hence, in 2020.

In 2013-14, electric two-wheeler sales crashed to a mere 21,000 units from 100,000

two years ago. If that did not fully reflect the dismal show, consider this: As many as 960

distributors of e-bikes - nearly half the total number of dealers in the country in 2011-12 -

have shut shop in the past 24 months. Worse, 26 of the 35 major electric two-wheeler makers

during the peak sales period (between November 2010 and March 2012) are out of business

today, thanks to poor demand. Companies like Ultra Motors, BSA Motors and Luminous

Power Technologies winding down their businesses has also meant a loss of 10,000 direct and

indirect jobs.

The drive has not been any less bumpy for cars, either. Mahindra & Mahindra, which

bought Reva Electric four years ago to venture into the electric car segment under the

Mahindra Reva brand, had set a target of selling 500 units when it launched the Mahindra

e20. The company has managed to sell only 1,000 units of the electric car in the past 15

months. While the plan was to make the product available in eight cities, the company has not

been able to take it beyond its limited distribution network in Delhi, Mumbai, Bangalore and

Pune.

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National Electric Mobility Mission Plan

The government's inability to implement the ambitious National Electric Mobility

Mission Plan (NEMMP), unveiled in January last year by the then prime minister, Manmohan

Singh, is seen as a key reason for the failure of electric vehicles. Though the scheme was to

offer subsidies and create supporting infrastructure for e-vehicles, the plan has mostly

remained on papers.

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COMPANY PROFILE

Go GreenBOV is the leading manufacturer of Electric two wheeler and three

wheeler based out at Bangalore with headquarters in JP Nagar.Go GreenBOV was

started in 2007, with an aim to reduce carbon emission and give an eco-friendly

environment to the world. Customer base of the company is in entire south at present,

but looking for Pan India presence in near future. The parent company of Go

GreenBOV is ACTD .ACTD was born with a vision to revolutionize policies and

create innovative products for the improvement of the sector and the country. By

designing the electric 2 wheeler – Go GreenBOV– ACTD has provided the national

consumer base with a greener and energy efficient option.

Go GreenBOV electric two-wheelers are highly advanced with cruise control

technology, Theft braking system, Lock braking, International styling, Keyless entry,

No number plate, No licensee and a lot of other feature. Go Green BOV operates

throughout Karnataka with a very strong Dealership network. Apart from being light

on pocket and light on conscience GO Green BOV bikes are easy to use, lightweight

and maintenance free providing a stress free experience Its factory is located in Kolar

district and the warehouse is located in JP Nagar Bangalore. The production capacity

of Go Green BOV factory is around 800 to 900 bikes. Majority of the parts of Go

Green BOV bikes are imported from outside. The batteries are imported from Korea,

plastic parts, controllers, motor etc. are imported from China.

The major competitors of Go Green BOV are Hero electric, Romai, Amphere

etc.. The core competency of Go Green BOV is that it is the only electric bike in India

which gives a mileage of 100 km in a single charge. The cost of travelling 100 km in

a GoGreen Bike is Rs 10 only. The company also has a social presence in the form of

Facebook and twitter page. With zero emissions the vehicle provides a solution for a

better planet, because in the long run economic sustainability depends upon ecological

sustainability. Consumers have to spend zero on fuel/petrol which helps in immense

cost saving. Further the futuristic design of our models, adds a spark to the trendy

youth as well as the veterans. As an independent, neutral and professional

organization, Go GreenBOV is committed to working towards a future that can fulfil

the needs of both mankind and the environment in the long term. In the ever changing

markets in which Go GreenBOV operates, its focus is on serving customers,

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achieving success and constantly enhancing its appeal to customers, partners and

staff.

Mission Statement

To create energy efficient vehicles that empowers our customers to lead

sustainable and greener lifestyles. To consistently innovate and redesign our products

in keeping with the values of Green/ Sustainable Engineering thereby providing

maximum profit and leading to minimum emissions planetary risk.

Vision Statement

To reboot our load by actively choosing alternative energy sources that can

ensure minimized pollution, maximum profitability, a developed economy and a

greener planet.”To lend nature a helping hand by reducing pollution by One degree

every year”

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Target Segments

The company focuses on two wheeler segment of electric vehicle market. It is

also planning to start producing electric three wheelers and electric vehicle for the

handicapped. Company’s main target customers are middle and lower class people.

Majority of the parts of Go Green BOV bikes are imported from outside. The

batteries are imported from Korea, plastic parts; controllers, motor etc. are imported

from China. Its customer base is mainly located in Karnataka, Tamil Nadu and in

some parts of Andhra Pradesh. The major competitors of Go Green BOV are

Amphere and Zon. The core competency of Go Green BOV is that it is the only

electric bike in India which gives a mileage of 100 km in a single charge.

The cost of travelling 100 km in a Go Green Bike is Rs 10 only. The

production capacity of Kolar plant is around1200 bikes per month. The production

plant is spread over an area of 5 acres. The company also has a social presence in the

form of Facebook and twitter page. Company is also planning to launch new products

in the electric Ride-on vehicle segment for kids. Some of the products in this segment

include Electric Ride on car, Electric Ride on Bike, Electric Ride on Truck etc. It also

produces electric wheel chair for rental model. The company is planning to come out

with electric cycles in the near future.

Advantages of using electric bike:

1. No Petrol, No Exhaust, absolutely zero-emission transportation

2. Pollution free & silent

3. A feel of smooth riding all weather/ hassle free riding

4. Zero maintenance and nominal cost operation.

5. Motor Vehicle Registration is not required.

6. Light weight

7. Cost economical

8. No Helmet, No Insurance is mandatory

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Distribution Channel: Product distribution (or place) is one of the four elements of

the marketing mix. Distribution is the process of making a product or service

available for use or consumption by a consumer or business user, using direct means,

or using indirect means with intermediaries. Go GreenBov has the following three

distribution channels through which its products are delivered to the end customers.

Figure 1: Distribution Channels

Sales Force

The revenue for a company is generated by the sales department. Therefore

the sales force has to be very strong and aggressive. The sales force has to highly

skilled in product knowledge, understanding different customers and pushing the

product aggressively and yet convincingly to the customers.

Whenever there are enquiries for the vehicle, they have to follow up regularly

so that they do not lose the customer. The sales force has to track customers who are

in need, using various sources.

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Promotional Strategies

Product promotion is one of the necessities for getting our brand in front of

the public and attracting new customers. There are numerous ways to promote a

product where the company uses more than one method. A strong set of promotional

strategies can help position of a company in a favourable light with not only current

customers but new ones as well.

Social Methods

Social media websites such as Facebook and Twitter offer companies a way

to promote products and services in a more relaxed environment. This is direct

marketing at its best. Social networks connect with a world of potential customers that

can view Go GreenBOV Company from a different perspective. Rather than seeing

the company as "trying to sell" something, the social network can see a company that

is in touch with people on a more personal level. This can help lessen the divide

between the company and the buyer, which in turn presents a more appealing and

familiar image of the company.

Mail Order Marketing

Customers who come into business are not to be overlooked. These customers

have already decided to purchase the product can be helpful in getting personal

information from these customers. These are customers who are already familiar with

your company and represent the target audience you want to market your new

products to.

Events

Go Green Management selected some prime locations in Bangalore city for

conducting road show campaigns for creating brand awareness and promoting our

vehicles, distributed pamphlets and broachers to the people also gave test rides to the

prospective customers. On June 5th being the world Environment day showcased the

Go GreenBOV vehicles in different IT parks located at different parts of Bangalore.

Go GreenBOV participated in business opportunity meet organized by Franchise

India at Calicut, Trivandrum, Madurai and Cochin.

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Segmentation

A marketing term referring to the aggregating of prospective buyers into

groups (segments) that have common needs and will respond similarly to a marketing

action. Market segmentation enables companies to target different categories of

consumers who perceive the full value of certain products and services differently

from one another. Go GreenBOV segmented the market as Urban and Rural markets.

The following factors that Go GreenBOV has the advantages over the urban market.

High carbon emission.

24 hours power supply

High income of the customers

Awareness on the vehicle

Targeting.

The consumers a company wants to sell its products and services to, and to

whom it directs its marketing efforts. Identifying the target market is an essential step

in the development of a marketing plan. A target market can be separated from the

market as a whole by geography, buying power and demographics, as well as by

psychographics. Go GreenBOV is a company which targets all the age groups by its

different models. Kohra is the basic model targeting the students from the age 15

years to 18 years as to ride the electric vehicles license is not required. They can take

this to schools and colleges. Kimaya is the stylish model that is mainly targeted on

young generation especially ladies. Comfort level of this vehicle suits for ladies.

Sunoti is the vehicle specially designed for delivery persons. Go GreenBOV targeted

Restaurants and Pharmaceutical companies. Because of the high mileage and goods

carrying space is suited for this vehicle. Kavach is the top end model that targeted the

customers who want more mileage.

Positioning

Once the organization decides on its target market, it strives hard to create an

image of its product in the minds of the consumers. The marketers create a first

impression of the product in the minds of consumers through positioning. Positioning

helps organizations to create a perception of the products in the minds of target

audience.

For increasing the brand awareness marketing team have initiated new

strategies, for few days company approached to the newspaper distribution centres in

different areas in Bangalore and gave Go GreenBOV vehicles pamphlets to distribute

it along with the newspapers, where it create more awareness in minds of the

customer.

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Technology

BLDC motors are a type of synchronous motor which is assisted by Hall

sensor at throttle grip. The powerful Torque generated by these motors is an interplay

of magnetic field generated by Rare Earth Permanent magnets and electromagnets on

the motor. This motor controlled by state-of-the-art embedded system technology

coupled with reliable power electronics gives the rider a smooth riding experience

with a high starting capability and ability to climb high gradients. Features

Simple construction

Ease of control

High dynamic response

High efficiency

High reliability

Noiseless operation

Better speed vs Torque characteristic

The following are the technological factors of Go GreenBOV:

Continues innovation & research.

New product development, R&D has changed the facial of industry.

Technological sophistication has made more comprehensive & user friendly.

Hybrid concept.

Regular Up gradation in Motor standardization.

Regular Innovation like Cruise control system, Anti-Theft Locking, 3 Speed

toggle switch etc. in E bike.

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VARIOUS MODELS AVAILABLE WITH THE COMPANY

KAVACH

Figure 2: Kavach

KIMAYA

Figure 3: Kimaya

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KOHRA

Figure 4: Kohra

SUNOTI

Figure 5: Sunoti

SPECIFICATIONS

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Table no 1: Specifications of vehicles

Model Name

Sunoti

kavach

Kohra

Kimaya

Battery Specification

48V, 20 AH/48V,

35AH

60V, 35AH

48V, 20AH

60V, 20AH

Payload Capacity 150 Kg.

180 Kg

180 Kg

180 Kg

Mileage/ Charge

60Km ,110 Km

110 Km

60 Km

60 Km

Sector Target

Delivery, Daily

Use

Long

Distance

commuters

Anybody

between age

group of 15-

80

Ladies,

youngsters

Price (INR)

44,000

53,500

35,000

49,000

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CHAPTER THREE

DATA ANALYSIS AND INTERPRETATION

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DAILY TRAVELLING DISTANCE

Table 2: Table showing details of distance travelled by the respondents daily

DISTANCE NO OF RESPONDENTS PERCENTAGE

10-20KM 45 45%

20-30KM 29 29%

30-40KM 20 20%

40-50KM 6 6%

50 AND ABOVE 0 0%

Figure 6 : Daily travelling distance

Interpretation: It can be inferred from the figure that most number of customers

(45%) travel a distance of 0-20 km daily, 29% of the customers travel a distance

between 20-30 km a day, 20% of the customers travel a distance of 30-40 km a day,

6% of customers travel 40-50 km a day, and none of the customers travel above 50

km a day. From the figure it is understood that the number of daily travelers are

higher than people who rarely use the vehicle, and this can be mainly because most

users use it for going to their work place.

0

5

10

15

20

25

30

35

40

45

50

10-20KM 20-30KM 30-40KM 40-50KM

NO OF RESPONDENTS

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MAJOR PROBLEMS FACED BY CUSTOMERS

Table 3: Table showing details of customers facing problems regarding mileage of

vehicle

WHETHER PROBLEM

FACED

NO OF CUSTOMERS PERCENTAGE

YES 36 36%

NO 64 64%

Figure 7: Problems faced by customers.

Interpretation: It can be inferred from the figure that 36% of customers ae facing

problems with the mileage of the vehicle, whereas 64% of customers do not face any

problem regarding the mileage of the vehicle. The majority of users do not face

problem shows that the quality of the vehicle may not be the real problem and

mileage can even go down due to un proper usage of the vehicle.

YES

NO

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MAJOR PROBLEMS FACED BY CUSTOMERS

Table 4: Table showing details of customers who face problems with Sevice of

vehicle

WHETHER PROBLEM

FACED

NO OF CUSTOMERS PERCENTAGE

YES 73 73%

NO 27 27%

Figure 8: Service of vehicles

Interpretation: It can be inferred from the figure that 73% of customers face

problems with the servicing done on the vehicle by the company whereas 27% of

customer’s do not face any issue with the service provided by the company. The

majority of customers face problems in servicing their vehicle show that the company

needs to address this issue with more care and do the need full to make the customers

feel better about the same.

YES

NO

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MAJOR PROBLEMS FACED BY CUSTOMERS

Table 5: Table showing details of customers who face problems with charging the

vehicle.

WHETHER PROBLEM

FACED

NO OF CUSTOMERS PERCENTAGE

YES 22 22%

NO 78 78%

Figure 9: Problems in charging

Interpretation: It can be inferred from the figure that 22% of the customers face

problems with the charging of the vehicle whereas 78% of the customers do not face

any problem with the same. This show that though the majority do not face a problem,

a considerable number of customer’s face an issue with charging their vehicle and it

need to be addressed and problems need to be resolved.

YES

NO

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MAJOR PROBLEMS FACED BY CUSTOMERS

Table 6: Table showing details of customers who face miscellaneous problems.

WHETHER PROBLEM

FACED

NO OF CUSTOMERS PERCENTAGE

YES 61 61%

NO 39 39%

Figure 10: Miscellaneous problems

Interpretation: It can be inferred from the figure that 61% of the customers

miscellaneous problems with the vehicle and 39% of the customers do not face any

miscellaneous problems. Miscellaneous problems include problem with the fiber

body, chase, shock absorbers, stand, tires, alloy wheels etc. which can happen due to

un proper usage and errors during the manufacturing or assembling process as well.

YES

NO

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FREQUENCY OF PROBLEMS

Table 7: Table showing details of frequency of problems faced by customers

DURATION NO OF

RESPONDANTS

PERCENTAGE

ONCE IN A MONTH 18 18%

ONCE IN 3 MONTHS 27 27%

ONCE IN 6 MONTHS 33 33%

ONCE IN A YEAR 22 22%

Figure 11: Frequency of problems.

Interpretation: It can be inferred from the figure that 18% of the customers face

problems with vehicles once in a month, 27% of the customers face problems once in

3 months, 33% of the customers face problems with the vehicle once in 6 months, and

22% of the customers face problems with the vehicle once in a year. There is a

considerable number of customers who face problems once in in a month or three

month which is a serious issue, which even can happen when the problems are not

resolved properly once they occur.

ONCE IN A MONTH

ONCE IN 3 MONTHS

ONCE IN 6 MONTHS

ONCE IN A YEAR

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RATING ON SERVICE

Table 8 : Table showing details of Service done on vehicles rated on a scale of 1-5

(5 being the highest and 1 being the lowest)

RATING NO OF CUSTOMERS PERCENTAGE

1 20 20%

2 23 23%

3 31 31%

4 16 16%

5 10 10%

Figure 12: Rating on Service

Interpretation: The figure shows the details of rating done by the customers on

service done by the company over its vehicles, 20% of the customers rated it as 1,

23% of the customers rated it as 2, 31% of the customers rated it as 3, 16% of the

customers rated it as 4, 10% of the customers rated it as 5. Considering the small

number of respondents who rated it highest, it can be understood that the majority are

not satisfied with the service provided by the company and it needs to be improved.

1

2

3

4

5

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RATING ON SOLVING PROBLEMS

Table 9: Table showing details of whether problems are being resolved rated on a

scale of 1-5 (one being the lowest and 5 being the highest)

RATING NO OF CUSTOMERS PERCENTAGE

1 10 10%

2 18 18%

3 33 33%

4 25 25%

5 14 14%

Figure 13: Rating on Solving of problems

Interpretation: The figure shows the details of rating done by the customers on

whether the problems are resolved by the company, 10% of the customers rated it as

1, 18% of the customers gave a rating of 2, 33% of customers gave a rating of 3, 25%

of customers rated it as 4 and 14% of customers rated it as 5. Considering that the

number of customers who has given highest rating is less, the ability of resolving

problems by the company is questioned. It can be due to lack of training or even may

be because of insufficient resources for resolving the problems.

1

2

3

4

5

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RATING ON REPEATED PROBLEMS

Table 10: Table showing details of customers facing same problem again rated on a

scale of 1-5 ( 1 being the lowest and 5 being the highest)

RATING NO OF CUSTOMERS PERCENTAGE

1 22 22%

2 11 11%

3 29 29%

4 17 17%

5 21 21%

Figure 14: Rating on Repeated problems

Interpretation: The figure shows that about 21% of the customers have not faced the

same problem again as they have given it a rating of five, 17% of customers gave

rating of 4, 29% of customers gave a rating of 3, 11% of customers rated it 2 and 22%

of customers rated the lowest in scale. Though the result gives somewhat an equal

distribution in the rating scale, it can happen majorly due to problems when not

resolved on time and by proper way.

1

2

3

4

5

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TRAINING OF STAFF

Table 11: Table showing details of whether the service personals are well trained

rated in a scale of 1-5 (1 being the lowest and 5 being the highest)

RATING NO OF CUSTOMERS PERCENTAGE

1 3 3%

2 17 17%

3 31 31%

4 22 22%

5 27 27%

Figure 15: Training of Staff

Interpretation: The figure shows that majority of the customers have given a

medium rating regarding whether the service employees are trained or not. 31% of

the customers gave a rating of 3 which is the largest, 27% of the customers have given

the highest rating, 22% of people gave a rating of 4 which is near to the highest, 3%

of customers gave the lowest rating of 1. The graph shows requirement of training by

service personals. This could happen due to errors which happened from staff by

which the customer had problems with vehicle or even the way staff deals with the

customers can be the reason for lower ratings.

1

2

3

4

5

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SPARE PARTS AVAILABILITY

Table 12 : Table showing details of whether spare parts are readily available for

replacement

RATING NO OF CUSTOMERS PERCENTAGE

1 21 21%

2 16 16%

3 34 34%

4 18 18%

5 11 11%

Figure 16: Spare parts availability.

Interpretation: It is shown in the figure that 11% of customers gave a rating of 5

regarding the availability of spare parts, 18% of the customers gave a rating of 4, 34%

of customers gave a rating of 3, 16% of customers gave a rating of 2 and 21% of

customers gave the lowest rating of 1. The results shows that the availability of spare

parts is low and it can happen due to multiple reasons, timely updating of the

inventory levels of spare parts as per the requirement if not done properly can lead to

this problem.

1

2

3

4

5

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HOW CUSTOMER COME TO KNOW ABOUT VEHICLE

Table 13: Table shows details of how the customers come to know about electric

two-wheelers.

SOURCE NO OF CUSTOMRES PERCENTAGE

FRIENDS 26 26%

FAMILY 12 12%

ADVERTISEMENT 41 41%

PRINTED ARTICLES 21 21%

Figure 17: How customer come to know about vehicle

Interpretation: It can be understood from the figure that majority of customers came

to know about the vehicle through advertisements, that is 41%, 26% of customers

come to know about from friends, 12% from family and 21% from printed articles. It

shows that advertisements play a vital role in generating awareness among customer

than any other source of information and the company needs to focus on

advertisements so that it helps them in gaining more customers.

FRIENDS

FAMILY

ADVERTISEMENT

PRINTED ARTICLES

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WHO INFLUENCED CUSTOMERS

Table 14: Table shows who influenced the customers to purchase the vehicle

DECISION NO OF CUSTOMRES PERCENTAGE

SELF DECISION 49 49%

FRIENDS 18 18%

FAMILY 21 21%

COLLEAGUES 12 12 %

Figure 18: Who influenced customers.

Interpretation: From the figure it can be understood that nearly half of the

customers (49%) themselves decided to buy the vehicle, 18% of them were influenced

by their friends, 21% of them were influenced by family and 12% of them were

influenced by their colleagues. It shows that purchase decisions are mostly taken by

the customer himself though there are influences from others and the probable reason

could be that the vehicle is for self or personal use and people choose vehicles

according to their comfort.

SELF DECISION

FRIENDS

FAMILY

COLLEGUES

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FOR WHOM THE VEHICLE WAS BOUGHT

Table 15: Table shows the detail of for whom the customer bought the vehicle

USER NO OF CUSTOMERS PERCENTAGE

SELF USE 37 37%

CHILDREN 16 16%

SPOUSE 32 32%

PARENTS 15 15%

Figure 19: For whom the vehicle was bought

Interpretation: It can be understood from the figure that majority of the customers

(37%) were using the vehicle by themselves, 16% of them bought it for their children,

15% of them bought it for their parents and 32% of them bought it for their spouse.

The result support the previous finding that most of the time purchase decisions are

influenced by the customers themselves and is because they buy it for their own use.

SELF USE

CHILDREN

SPOUSE

PARENTS

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SPENDING ON VEHICLE

Table 16: Table showing details of money spend by customers on buying the electric

two wheeler

AMOUNT NO OF CUSTOMERS PERCENTAGE

0-15000 0 0%

15000-30000 0 0%

30000-45000 85 85%

45000 AND ABOVE 15 15%

Figure 20: Spending on vehicle

Interpretation: The figure explains that 85% of the customers had to spend between

Rs 30000-45000 and the rest 15%had spent more than Rs 45000 for purchasing the

vehicle. This result is based on the model of vehicle the customer opted for and the

amount spend is the price of the vehicle itself.

0-15000

15000-30000

30000-45000

45000 AND ABOVE

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INFLUENCE BY PRICE OF CONVENTIONAL FUELS

Table 17: Table showing the details of whether price of conventional fuels

influenced their buying decision

DECISION NO OF CUSTOMERS PERCENTAGE

YES 78 78%

NO 22 22%

Figure 21: Conventional fuel price influence

Interpretation: It can be understood from the figure that 78% the customers were

influenced by the high price of conventional fuels and 22% of the customers were not

influenced by the same. It can be inferred that if fuel price were low it could have

affected the sales negatively. Vehicles are often chose by customers on basis on

economic usage particularly if it is for daily use, and electricity is considered cheaper

than conventional fuels like petrol and diesel.

YES

NO

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FACTORS INFLUENCED THE CUSTOMERS

Table 18: Table shows the details of highest rating done by the customers on

various factors which influenced the customers while buying the vehicle.

FACTORS NO OF CUSTOMERS PERCENTAGE

PRICE OF

CONVENTIONAL FUELS

26 26%

MILEAGE 20 20%

PAY LOAD 10 10%

COST PER KM 39 39%

SPEED 15 15%

Figure 22: Factors influenced the customers

Interpretation: The figure explains the factors which influenced the customers while

they decided buying the vehicle, 26% of customers rated price of conventional fuels

as five(the highest), 20% of customers gave mileage the highest rating of five, 10% of

customers rated pay load of the vehicle with the highest, 39% of the customers rated

cost per kilometer with highest rating, 15% of the customers rated speed with the

highest rating. It can be understood that the probable reason for higher rating on cost

per kilometer is that people prefer to spend less on every kilometer they travel and

thus all other factors stands secondary based on the result generated.

PRICE OF CONVENTIONALFUELS

MILEAGE

PAYLOAD

COST PER KM

SPEED

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FACTORS INFLUENCED THE CUSTOMERS

Table 19: Table showing details of highest rating done by the customers on various

factors which influenced the customers while buying the vehicle.

FACTORS NO OF CUSTOMERS PERCENTAGE

PRICE 12 12%

LESS POLLUTION 47 47%

GOVERNMENT

SUBSIDY

0 0%

MAINTENANCE 31 31%

SERVICE

AVAILABILITY

14 14%

Figure 23: Factors influenced the customers

Interpretation: It can be inferred from the figure that less pollution and less

maintenance are two major influencing factors as per the rating given by the

customers, 47% osf customers rated 5 for less pollution, 31% customers rated 5 for

maintenance, 12% of customers rated 5 for price, and 14% of customers rated 5 for

service availability. Less pollution is another factor which is highly rated by the

customers probably because of the promotions done by the company, the company

promotes green energy and stands for reducing pollution.

PRICE

LESS POLLUTION

MAINTENANCE

SERVICE AVAILABILITY

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LEVEL OF SATISFACTION

Table 20: Table shows the details of number of customers who are satisfied with the

vehicle

LEVEL OF

SATISFACTION

NO OF CUSTOMERS PERCENTAGE

HIGHLY SATISFIED 20 20%

SATISFIED 46 46%

DISSATISFIED 28 28%

HIGHLY DISSATISFIED 6 6%

Figure 24: Level of satisfaction

Interpretation: The figure represents the level of satisfaction by the customers, 20%

of the customers are highly satisfied, 46% of the customers are satisfied, 28% of the

customers are dissatisfied and 6% of customers are highly dissatisfied. The results

shows that the majority of customers are satisfied about the vehicle and is probably

due to the satisfactory performance of the vehicle while usage though there is scope

for improvising various aspects.

HIGHLY SATISFIED

SATISFIED

DISSATISFIED

HIGHLY DISSATISFIED

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RECOMMENDATION BY USERS

Table 21: Table shows the detail of customers who would recommend others to buy

an electric two wheeler.

RECOMMENDATION NO OF CUSTOMERS PERCENTAGE

YES 64 64%

NO 36 36%

Figure 25: Recommendation by users

Interpretation: The figure shows percentage of customers who would recommend

others to buy this vehicle, 64% of customers would recommend others, whereas 36%

of customers would not. Though the majority would recommend , there are

considerable number of customers who would not recommend the vehicle to others

which shows that they might not be satisfied with some or the other factor,

considering previous results the probable reasons may not be the vehicle quality but

the service provided by the company

YES

NO

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SERVICE SATISFACTION

Table 22: Table shows the details of whether the customers are satisfied with the

company’s after sale service

LEVEL OF

SATISFACTION

NO OF CUSTOMERS PERCENTAGE

HIGHLY SATISFIED 19 19%

SATISFIED 38 38%

DISSATISFIED 23 23%

HIGHLY DISSATISFIED 20 20%

Figure 26: Service satisfaction

Interpretation: It can be inferred from the figure that 19% of the customers are

highly satisfied with the company’s after sales service, 38% are satisfied, 23% of

customers are dissatisfied and 20% of customers are highly dissatisfied. The result

supports the previous findings that the service provided by the company needs to be

improved because of the considerable number of customers being unsatisfied about

the same.

HIGHLY SATISFIED

SATISFIED

DISSATISFIED

HIGHLY DISSATISFIED

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MOST PREFERRED FEATURES

Table 23: Table shows the different features of electric two wheelers most preferred

by different customers.

FEATURES NO OF CUSTOMERS PERCENTAGE

STORAGE SPACE 13 13%

SPEED 17 17%

ECONOMY 28 28%

AFTER SALE SERVICE 9 9%

SPARE AVAILABILITY 7 7%

Figure 27: Most preferred features

Interpretation: The figure shows that 13% of customers prefer storage space the

most, 17% of customers prefer the speed of the vehicle, 28% of customers prefer the

economic way of travel offered by the vehicle, 9% of customers prefer after sales

service as the most attractive factor whereas 7% of customers say spare availability as

most attractive factor. It is understood from the figure that the results support the

previous finding that customers prefer an economic way of travelling and probably

due to this economy is the most preferred feature for a major number of customers.

STORAGE SPACE

SPEED

ECONOMY

AFTER SALE SERVICE

SPARE AVAILABILITY

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MOST PREFERRED FEATURES

Table 24: Table shows the different features of electric two wheelers most preferred

by different customers.

FEATURE NO OF CUSTOMERS PERCENTAGE

RESALE VALUE 0 0%

COMFORT 5 5%

EASY RIDE 6 6%

SAFETY 11 11%

ZERO MAINTENANCE 4 4%

Figure 28: Most preferred features

Interpretation: It is understood from the figure that 5% of customers were attracted

by comfort of the vehicle, where as 6% of the customers prefer the easy ride offered

by the vehicle, 11% of the customers were attracted by the safety features of the

vehicle and 4% of customers believe that zero maintenance is the most attractive

factor, The results shows that safety is another most preferred feature by a major set

of customers due to the high rate of accidents happen daily and due to the

specifications electric vehicles are usually less prone to accidents.

RESALE VALUE

COMFORT

EASY RIDE

SAFETY

ZERO MAINTENANCE

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AGE GROUP OF CUSTOMERS

Table 25 : Table showing details of age group of customers

AGE GROUP NO OF CUSTOMERS PERCENTAGE

15-25 YEARS 10 10%

26-35 YEARS 27 27%

36-45 YEARS 39 39%

46-55 YEARS 15 15%

56-65 YEARS 9 9%

Figure 29: Age group of customers

Interpretation: It is understood from the figure that 10% of the customers belong to

15-25 age group, 27% customers belong to 26-35 age group, 39% of customers

belong to 36-45 age group, 46-55 age group represents 15% of the customers and 9%

of customers belong to 55-65 age group. The results shows that youngsters and

middle age people combines the majority of user of electric two wheelers.

15-25 YEARS

26-35 YEARS

36-45 YEARS

46-55 YEARS

56-65 YEARS

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GENDER OF CUSTOMERS.

Table 26: Table showing details of Gender of customers

GENDER NO OF CUSTOMERS NO OF CUSTOMERS

MALE 87 87%

FEMALE 13 13%

Figure 30: Gender of customers.

Interpretation: Figure shows the details of gender of respondents, 87% of the

respondents were male and 13% of respondents were female. Though it is shown in

the result that majority of the customers are men, people who actually use the vehicle

include family members and spouse of the buyer, hence the vehicle is not only meant

for male users.

MALE

FEMALE

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OCCUPATION OF USERS

Table 27: Table showing details of occupation of customers

OCCUPATION NO OF CUSTOMERS PERCENTAGE

STUDENT 5 5%

PRIVATE EMPLOYEE 42 42%

GOVERNMENT JOB 12 12%

OWN BUSINESS 15 15%

OTHERS 26 26%

Figure 31: Occupation of users

Interpretation: Figure represents the occupation of the respondents, 5% of them

were students, 42% of them were private employees, 12% of them were having

government job, 15% of them were having own business and 26% of them were

engaged with other jobs. People with private job being more in number can be

explained on the basis of demography and it has probably no relation with the buying

behavior.

STUDENT

PRIVATE EMPLOYEE

GOVRNMENT JOB

OWN BUSINESS

OTHERS

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ANNUAL INCOME OF USERS

Table 28: Table showing details of annual income of customers

ANNUAL INCOME NO OF CUSTOMERS PERCENTAGE

0-200000 15 15%

200000-300000 20 20%

300000-400000 26 26%

ABOVE 400000 39 39%

Figure 32: Annual income of Users

Interpretation: The figure explains the annual income of respondents, 15% of them

have it between 0-2 lakhs, 20% of the respondents have between 2 lakhs and 3lakhs,

26% of the customers have between 3 lakhs and 4 lakhs, 39% of the customers have

above 4 lakhs of annual income.it shows that majority of the users belong to middle

class families with proportionate income.

0-200000

200000-300000

300000-400000

ABOVE 400000

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MOST PREFERRED FEATURE OF ELECTRIC TWO WHEELER BASED ON THE AGE

GROUP OF THE CUSTOMERS.

Table no 29: Table showing details of most preferred features based on age groups.

FEATURE AGE GROUP

15-25 26-35 36-45 46-55 56-65

STORAGE SPACE 9 5

SPEED 2 14

ECONOMY 10 10 9

AFTER SALE

SERVICE

9

SPARE

AVAILABILITY

3 4

RESALE VALUE

COMFORT 5

FRIENDLY&EASY

RIDE

6

SAFETY 2 3 6

ZERO

MAINTENANCE

3

Interpretation: Comfort in usage was the most preferred feature by the age group of 15-25

whereas After Sale Service was the most preferred factor by the age group of 26-35, After

sales service being an unavoidable factor for any vehicle the reason for this feature being

preferred most is obvious, Speed is the most preferred feature by age group of 36-45 as it is

necessarily required in for a daily user who travels long distance, economy is the most

preferred feature by both age groups 46-55 & 56-65 mostly because of the high mileage

which the vehicle provide when compared to petrol vehicles available in the market and the

low cost per kilometer offered by the vehicle.

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CUSTOMERS WHO WERE INFLUENCED BY THE HIGH PRICE OF CONVENTIONAL

FUELS BASED ON DIFFERENT AGE GROUPS

Table 30: Table showing details of customers who were influenced by the high price of

conventional fuels based on different age groups.

AGE GROUP NO OF CUSTOMERS

15-25 9

26-35 16

36-45 40

46-55 14

56-65 9

Figure 33: customers influenced by high price of conventional fuels based on age group.

Interpretation: it is evident from the figure that all the customers from different age

group has similar opinion about the influence of high price of conventional fuels in their

buying decision, high price of petrol and diesel has always influenced life of people and

thereby it has an influence in the entire economy of the nation, the survey throws light into

the fact that people would always prefer alternatives to conventional fuels and electric

vehicles are an excellent solution available at this point of time.

15-25 26-35 36-45 46-55

0

5

10

15

20

25

30

35

40

45

NO OF CUSTOMERS

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CHAPTER FOUR

SUMMARY OF FINDINGS, SUGGESTIONS

AND CONCLUSION

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FINDINGS AND SUGGESTION

It was found from the study that most of the customers come to know about

electric two wheelers from advertisement; a few through printed articles, friends and

family, and it can be inferred that marketing activities of the company has been a

success as it could generate awareness and interest among potential buyers in the city.

Majority of the customers bought the vehicle on own interest and others

buying decision were influenced by their family, friends and their colleagues. It shows

that family, friends and colleagues always plays a vital role in buying decision of the

customers. Majority of the customers bought the vehicle for self-use, near to the

majority of customers bought the vehicle for their spouse, a few for their parents and

for children too, and the buying decision is hence influenced by the user too.

Majority of the customers spend between thirty thousand and forty five

thousand Rupees to buy their vehicles and a few have spent more than that, which

shows that people are willing to adopt newer technology and concepts and are less

concerned with the money they spend, this assumption can be supported when we

compare the price of these vehicles with non-electric two wheelers. Petrol vehicles are

available within the same price range which have greater acceptance and wide usage

in the market, keeping this fact in mind we can definitely say that people are ready to

try innovative ideas.

Another important finding was that high price for conventional fuels had an

effect in buying decision of customers as they do not want to spend too much in

buying fuel and need an economic alternative which can bring down their day to day

expenses.

When customers were asked about the factors which influenced them while

they decide upon the vehicle, multiple factors were identified such as mileage, pay

load, cost per kilometer, speed, price, pollution etc. Price of conventional fuels, least

maintenance when compared to non-electric vehicle and availability of service were

also considered by the buyers while they decided upon the purchase. Zero pollution

and cost per kilometer stood as major reasons why they purchased the vehicle when

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compared to other factors. The feature of which mostly liked by the customers is it

being economic compared to non-electric two wheelers

Majority of the customers are satisfied with the vehicle and are willing to recommend

the same to others they know. It was also inferred from the study that majority of

customers are satisfied with the company after sale service.

It was observed from the survey that majority of the respondents represents the

age group of 36-45 which shows that middle aged people are more interested in

buying the vehicle when compared to young as well as elder people. 87% of

customers are male but it can be inferred from the study that though women are not

majority buyers, when it comes to usage number of both men and women users are

some what equal. It was also revealed in the study that most of the users are employed

in private firms.

Income of a buyer has always been an influencing factor in a buying decision and

majority of the customers have an annual income above four lakh Rupees, which

shows that it is affordable for them to buy a petrol vehicle but they preferred an

electric vehicle because of various factors influenced them.

Most of the customers use their electric two wheelers on a daily basis and majority of

the travel about 10-20 kilometres, it shows that the vehicle has an unavoidable role in

their daily life. It was found in the study that the customers are facing various

problems while using the vehicle which include problems such as mileage, charging,

service and miscellaneous problems, Service was found to be the most reported

problem among the customers.

Though the frequency of problems faced by the customers varies, it was found

that most of the customers find a problem with the vehicle at least once in six months

and few of them have problems once in three months as well as once in a year. Few of

the customers complaints that the problems are not resolved completely even after

servicing is done and they have to face same problems again. Some of the respondents

say that the service personals are not well trained as well as the spares are not readily

available.

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SUGGESTIONS

In addition to findings, this study also provides several scopes for further research,

which will be addressed in the following paragraphs. Following are the suggestions:-

The price of the electric two wheelers need to be decreased, it can be done by

adopting sophisticated technologies and carrying out mass productions or

some discounts on price or offers could be given in order to increase the sales

More awareness needs to be created among the consumers regarding the

Electric Two wheelers and their benefits. It can be promoted continuing the

same methods already the company has adopted as the survey results indicates

that customers were attracted by the advertisement of the company

More number of service centre’s need to be opened at least in major areas to

cater to the problems & needs of the customers when needed. Service being a

major issue for the company, it is suggestable that the company invest more its

time and resources in improvising this area so that the existing customers

remain satisfied which will definitely help to improve the number of

customers.

As most of the people prefer high speed, speed of the vehicle can be improved

by giving importance to safety aspect as well it is because both factors are

preferred by customers as resulted in the survey.

Give high quality service training for servicing people. Training requirement

of the service employees were a major concern for customers reflected in the

survey results, staff can be trained both in technical and customer care aspects,

giving proper service and resolving the issues on time would improvise the

customers satisfaction level to a greater extend.

Increase the availability of spare parts in all showrooms. Thorough check in

the inventory need to be carried out and the requirement need to be forecasted,

only then customers can be provided with spare parts whenever it is required.

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CONCLUSION

As one of the major objective of the study was to identify the factors which

influence the customers buying behavior, the study explains that the buying behaviour

of customers are influenced by Social and economic factors and buying is a part of

satisfying needs and desires. It was also understood from the study that individuals

often purchase products for their subjectively perceived values rather than their

primary functions and this does not mean that the products’ basic functions are not

important, but that the contemporary role of a product is more than its basic use-value.

Another objective of the study was to understand the satisfaction level of

customers, from the study conducted it was concluded that though majority of the

customers are satisfied with vehicle there are factors which need to be improved. It

also shows that there is a combination of positive and negative effect of those factors

on customer satisfaction level. It is very difficult to identify the exact reasons why a

consumer purchases and prefers one product or service over another one. This is

because consumers sometimes make purchasing decisions based on their emotional

beliefs which they even themselves are not well aware of.

Suggestions are made purely based on the survey results which include ways

to improve the product as well as measures which can be taken to increase the

customer satisfaction level which would help this wonderful organization with a great

motive of promoting green energy to reduce carbon footprints to achieve greater

heights.

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BIBLIOGRAPHY

Kotler, P., & Keller, K. L. (2009). “Marketing management”. Upper Saddle River,

N.J : Pearson Prentice Hall.5th ed, Print.

Egan, John. “Marketing Communications.” 2007 : n. pag. Print.

Kotler, Philip et al. Principles Of Marketing. 4th ed. Pearson, 2005. Print.

McGivern, Yvonne. The Practice Of Market And Social Research: An Introduction.

2nd ed.Prentice Hall, 2006. Print.

Edmund W. J. Faison, “A useful Concept for Consumer Behavior,”Journal of Consumer

Research, 1977, print

Engel, James F. and Roger D. Blackwell (1982), "Consumer Behavior,"5th ed Hinsdale,

IL: Dryden Press2006, Print

Solomon, M.R. 1995, “Consumer Behaviour”, 3rd ed. Prentice Hall, 2005, Print.

Stavkova, J., Stejskal, l., Toufarova, Z.. “Factors influencing consumer

behaviour”. Agriculture Journal, 2008, Print

Foret, M. and P. Prochazka (2007) “Buying Behaviour of Households in the.

Czech Republic.”Journal of Agricultural Economics, Czech, Vol.53, 2007, Print

Acebron et al., 2000, Acebron L.B., Mangin J.-P.L., Dopico D.C., “personal

habits and previous experience on consumers’ purchase decision”,

Journal of International Food and Agribusiness Marketing 11, 3, 2000, Print.

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ANNEXURE

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QUESTIONNAIRE

Respected Sir/Ma’am, I am an MBA student from SSTM COCHIN, This survey is

conducted as a part of my academic project on the topic “A Study On Customer Buying

Behavior On The Electric Two Wheelers”

1) How much do you travel daily: ________________

a) 10-20 km b) 20-30 km c) 30-40 km d) 40-50 km e) Above 50 km

2) What are the problems that you have with your vehicle? Yes or No

a) Mileage Problems c) Charging Problems

b) Service problems d) Miscellaneous

3) How frequently do you face the problems?

a) Once in a Month b) Once in 3 Months c) Once in 6 Months d) Once in

a Year

4) Rate the following on a scale of 1 to 5? (5 being the highest and 1 being the lowest)

a) Servicing done for the vehicle b) Problems are being resolved

c) You don’t get the same problem again d) Service personnel are well

trained

e) Spare parts are readily available for

replacement

5) How do you come to know about electric Two-wheelers?

a) Friends b) Family c) Advertisement c) Printed articles.

6) Who influenced you to purchase the vehicle?

a) Self decision b) Friends c) Family d) Colleagues

7) For whom you bought this vehicle?

a) Self use b) Children c) Spouse d) Parents

8) How much amount of money you spend on buying your bike?(In INR)

a) 0-15000 b) 15000-30000 c) 30000-45000 d) more than 45000

9) Did the high price of conventional fuels influence your buying decision?

a) Yes b) No

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10) How would you rate the factors that influenced you while buying e- two wheeler? (5

being highest and 1 being lowest)

a) Price of conventional fuels b) Mileage

c) Pay load d) Cost per km

e) Speed f) Price

g) Less pollution h) Government Subsidy

i) Maintenance j) Service availability

11) Are you satisfied with the vehicle: ___________________

A) highly satisfied b) satisfied c) dissatisfied d) highly dissatisfied

12) Will you recommend others to buy an Electric two wheeler: ______

a) Yes b) No

13) Are you satisfied with the company aftersales service: ___________________

a) highly satisfied b) satisfied c) dissatisfied d) highly dissatisfied

14) Select the feature of your current electric two wheeler you like the most?

1. Storage space 2.Speed

3. Economy

4. After sale service.

5. Spare availability. 6. Resale value.

7.Comfort journey

8. Friendly and easy ride.

9.Safety

10. Zero maintenance.

Name: ______________________________

Age: _______________________

a) 15-25yrs b) 26-35yrs c) 36-45yrs d) 46-55yrs e) 56-65yrs

Gender: ______________

a) MALE b) FEMALE

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Occupation: __________________________

a) Student b) Private Employee c) Government Employee

c) Own Business d) Other

Annual Income: ________________

a) 0 - 200000 b) 200000 – 300000 c) 300000 – 400000 d) Above 400000