REPORT ON BUYING BEHAVIOUR

OF HONDA JAZZ

PGP 2010-12

SUBMITTED TO: SUBMITTED BY :

Mr. Nitin Malik Abhishek Kumar Singh

Akash Bhatnagar

Ankit Tomar

Ankita Mishra

Rashmi Jha

Shravan Pandey

ACKNOWLEDGEMENT

The report submitted is an outcome of the complete team efforts done by

the group members. Also we would like to thank our MARKETING

RESEARCH teacher Mr. Nitin Malik to deliver the best Conceptual

knowledge in the class without which we could not have maintained a

fluent Work. Last but not the least we would like to thank all the persons

who contributed by their opinion and suggestion on the data survey form

given to them .

TABLE OF CONTENTS

LIST OF TABLE USED

EXECUTIVE SUMMARY

PROBLEM DEFINITION

RESEARCH DESIGN

DATA ANALYSIS

RESULTS

LIMITATIONS

CONCLUSION AND RECOMMENDATION

REFERENCES

QUESTIONNAIRE FORMAT

STATISTICAL OUTPUT

LIST OF TABLES USED

In the following survey we have used chi square technique for the data

analysis part the tables used to compare the attributes are given as

follows-

Usage by gender

Income by gender

Segment by gender

Usage by income

EXECUTIVE SUMMARY

Major findings in our survey is that if we consider gender wise

than we configured from the report that there are more in number of

female users than their male counterparts who use Honda Jazz.

Then comes the income part in which we have found out that

income slab of 6-10 lakhs in both the gender has considered more usage

of Honda Jazz.

In this we have found out that in this case positioning of jazz is

advantageous as people were able to remember the segment correctly

even those people also who hasn’t considered Jazz.

Irrespective of gender people who own Honda Jazz fall in the

income slab of 6-10 lakhs.

From the research we concluded that Positioning strategy of Honda

Jazz is not totally non uniform but in some cases their strategy has

worked out well like in case where we have asked people about the

segment to which Honda Jazz falls in and maximum people have

recalled and mentioned it correctly.

PROBLEM DEFINITION

MANAGEMENT DECISION PROBLEM

Why Honda Jazz is loosening fizz in competition not only to others

of same segment but also to its Honda brand “city”.

MARKET RESEARCH PROBLEM

To determine the buying behavior of Honda Jazz in the market on

the basis of parameters like gender and income.

Problems which management is facing while positioning:

On the basis of secondary data collected we have found out the

following:

Company wants to launch their product for the general people but due

to the high price only premium class people are able to purchase this car

Even though 50,000 enquiries for Jazz since its launch in June, the

conversions have only been around 4,000, whereas in case of City the

enquiries and conversions are both on an upswing. In fact, Jazz has

helped increase the volumes for City,” City, a saloon, cost Rs 1.25 lakh

more than Jazz.

Jazz sales have been declining month on month. In June it were a little

above 2,000 units, 1,037 in July, 1,029 in August and just 504 units in

September.

The problem with Jazz is its exorbitant pricing, due to which it is not

only helping the customers go in for City by paying a lakh more but its

is also making other cars in its competition like Hyundai i20 and Skoda

Fabia look good.

The other thing is the saloon versus the hatchback phenomena, people

are seeing more value in City and they wouldn’t mind paying a little

extra and get a saloon over a hatchback. According to the information

“The market for premium hatchbacks is still very small in India and the

pricing of Jazz plays to its disadvantage.”

Besides the car being extremely expensive, it is also underpowered with

a 1.2 litre engine.

“A typical customer who has a sub Rs 5 lakh hatchback and is looking

for an upgrade with Rs 8 lakh budget will naturally go in for a better

powered City with a 1.5 litre engine than spending a huge amount to

again purchase a hatchback. On the other hand, if we look at City,

which is in the Rs 8 lakh plus segment, the only other competition is

from Fiat’s Linea.

After the initial spurt in Linea sales, there is a slump as it is

underpowered with a 1.3/1.4 liter engine, thus boosting City sales

again.”

A Honda dealer, who did not wish to be named, said that since the

launch of Jazz, they have witnessed a 30% increase in City sales.

“People come enquiring for Jazz but ultimately settle down for City,

especially after the refreshed version of the same was launched in

September. However, in the last few days we are seeing the upgrades

from Jazz to City are reducing, maybe people have started to understand

what the Jazz category is.”

Honda Siel had been operating on a single shift since last year due to

declining sales, and According to Sen, “since September we have

resumed operating on double shift as we are facing delivery constraints,

which is adding to our backlog. City, which constitutes close to 70% of

our total sales volumes, has a backlog of three weeks. Currently, the

company in a single shift produces 5,000 units monthly.

Sen said, “The situation is better now but still very fluid. In June we had

reduced production of City in order to meet the demand for Jazz.

RESEARCH DESIGN

The nature of our research design is causal research, as we tried to find

out what new can be done to push the product (Jazz), in the market the

report requires knowledge of secondary data which we have discussed

about in the beginning itself the sales figures and what are all its factors

in deciding the declining of sales in the market has been well explained

in the report.

There are basically two types of scaling techniques one is comparative

and other is non-comparative, in comparative the researcher asks the

respondent to compare the features of two or more products for eg.

Which car do you prefer in this all the cars in the given segment can be

compared and in non comparative scaling analysis is done on the

product features basis and not on comparative basis. Eg.whether the

people are happy with the after sales value of Honda Jazz or not.

The research includes mainly likert scaling like we have asked the

customers rate the features of Honda Jazz on scale basis like:

1-strongly agree, 5-strongly disagree

Then we have used ordinal scale by asking questions like which is your

Most preferred car in the hatchback segment rate it according to you.

Then we have used ratio scale in which we have asked the respondents

about their income slab.

The data from the primary sources were collected in the questionnaire

that was distributed in the form of hard copy & was a direct approach.

The secondary data were mostly collected from the Automobile

magazine articles & official website of Honda & its related websites .

The questionnaire was made short, keeping in mind that people may not

lose interest while filling up the questionnaire. Also the questions were

kept in a very comprehensive method. The personal information

required for the questionnaire was putted in a way that could be filled

without much of hesitations. It was designed in a very concise manner

through which it was easy to derive the conclusion required. Once the

questionnaire was prepared, it was checked from the faculty at iilm &

was modified for the betterment of the survey again.

The pretesting was conducted with a closed group of people with whom

it can be critically observed any further modifications.

The sampling was targeted on the part of the population which was

expected to be well informed about the product & should be able to

answer the questionnaire. The sample size was kept short i.e. 66 so that

it was more viable to build the structure of the conclusion to be derived

from the qualitative questions. The survey was conducted in the areas

well dense with the required sample size.

DATA ANALYSIS

PlAN OF ACTION

Management Decision Problem-We started with management

decision problem by discussing about what are the problems faced by

the measurement while pushing Honda Jazz in the market.

Market Research Problem- In market research problem we discussed

about what all can be done to improve the positioning strategy of Honda

Jazz .

Secondary Data Collection- In this we have collected the secondary

data about the problem definition which is available in the internet with

facts and figures which is being mentioned above.

Questionnaire Preparation and Pretesting- After preparation of the

questionnaire we have done pretesting and made some changes to it

also.

Primary Data Collection And Field Work- Primary data is been

collected through the questionnaire in which we have taken a sample

size of sixty six and we compared the attributes such as

usage ,income ,segment,after sales service etc.

Data Analysis Using SPSS- After collecting and entering the data using

SPSS we have used chi-square as our comparable factor and compared

different attributes like gender with usage ,gender with income etc.

RESULTS

Gender does not play any role in the buying behavior of Honda Jazz

According to the chi-square table the value comes out to be 0.310

which is less than 0.05 so the null hypothesis is not rejected hence

gender does not plays any role in buying behavior of Jazz.

- On the basis of frequency table which is shown in the statistical

output page it is been found out that the income plays an

important role in buying behavior of Honda Jazz ,on this basis we

also found out that specially the income slab of 6-10 lakhs are

more concern about the buying behavior of Honda Jazz.

-One more thing we found out from the respondents that

maximum people were able to recall about the Jazz like it is

positioned in hatchback segment even those who don’t have Jazz

they were also able to recall that which segment it is falling in.

LIMITATIONS

The study had the limitation of absence of a direct approach with the

organization so the information could not be verified & forwarding of

the report & suggestions was not possible. Also due to the limited time

frame it was not possible to go deep in the problem or to find its perfect

solution. There was also a limitation of the sample size of the desired

kind.

Due to the lack of reach of area that can be covered the result may fail to

tell the trends of the large geographical area.

CONCLUSION AND RECOMMENDATION

Finally we concluded from the survey conducted is that there is no

gender biasness towards buying behavior of Honda Jazz ,female are

more interested in Jazz than male, another that which we concluded

from our survey is that the majority income level which shows the

buying behavior comes under an income slab of 6-10 lakhs.

Based on our findings in the project the management can seriously think

upon firstly the pricing issue then the attractiveness towards female

which is more rather than male population.

REFERENCES

1. http://www.hondacarindia.com/jazz/index.aspx

2. http://www.smokeriders.com/History/Honda_History/

body_honda_history.html

STATISTICAL OUTPUT

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

usage * Gender 66 100.0% 0 .0% 66 100.0%

usage * Gender Cross tabulation

Count

Gender Total

Male Female

usage yes 15 7 22

no 35 9 44

Total 50 16 66

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square 1.031a 1 .310

Continuity Correctionb .505 1 .477

Likelihood Ratio 1.003 1 .316

Fisher's Exact Test .367 .236

Linear-by-Linear Association 1.016 1 .314

N of Valid Cases 66

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.33.

b. Computed only for a 2x2 table

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Income * Gender 66 100.0% 0 .0% 66 100.0%

Income * Gender Cross tabulation

Count

Gender Total

male female

Income 3-5 LAKHS 13 5 18

6-10 LAKHS 28 10 38

ABOVE 10 LAKHS 9 1 10

Total 50 16 66

Cases

Valid Missing Total

N Percent N Percent N Percent

Segment * Gender 66 100.0% 0 .0% 66 100.0%

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Exact Sig. (2-

sided)

Exact Sig. (1-

sided)

Pearson Chi-Square .077a 1 .782

Continuity Correctionb .000 1 1.000

Likelihood Ratio .078 1 .780

Fisher's Exact Test 1.000 .544

Linear-by-Linear Association .075 1 .784

N of Valid Cases 66

a. 1 cells (25.0%) have expected count less than 5. The minimum expected count is 3.39.

b. Computed only for a 2x2 table

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

usage * Income 66 100.0% 0 .0% 66 100.0%

usage * Income Cross tabulation

Count

Income Total

3-5 LAKHS 6-10 LAKHS

ABOVE 10

LAKHS

usage yes 7 14 1 22

no 11 24 9 44

Total 18 38 10 66