STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS TRACTORS IN JALANDHAR

1

A STUDY ON RURAL PURCHASE BEHAVIOR

TOWARDS TRACTORS IN JALANDHAR

Submitted to: Dr. Anand thakur

SUNNY KUMAR PANDEY

Registration no: 11004178

Roll no: RQ1002B24

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CERTIFICATE

This is to certify that SUNNY KUMAR PANDEY bearing Registration no. 11004178, have completed dissertation / capstone project titled A STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS TRACTORS IN JALANDHAR under my guidance and supervision. To the best of my knowledge, the present work is the result of their original investigation and study. No part of the dissertation has ever been submitted for any other degree at any University.

The dissertation is fit for submission and the partial fulfillment of the

Conditions for the award of.........................

Signature and Name of the Research Supervisor Designation School Lovely Professional University Phagwara, Punjab.

Date :

3

ACKNOWLEDGEMENT

I feel immense pleasure to give the credit of my project work not only to one individual as this work is integrated effort of all those who concerned with it. I want to owe my thanks to all those individuals who guided me to move on the track.

This report entitled A STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS TRACTORS IN JALANDHAR is the outcome of my CAPSTONE PROJECT at JALANDHAR.

I sincerely express my gratitude and lot of thanks to Dr. ANAND THAKUR and to the other faculties for helping me in completing my project work and making it a great success.

Last but not least, I would thank all my friends, faculty members and all respondents who rendered their precious time for contributing their skills and to fill the questionnaire, which made my project more appealing and attractive.

SUNNY PANDEY

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PREFACE

As MBA degree require equal attention practical as well as theoretical aspect of the business, various problems are to be dealt with in these courses, that is why research programs are there to give deep as well as thorough knowledge of the subjects. The way to aware the people is marketing.

During my project work I observed all the aspects of tractor and gathered all the necessary information regarding it. I was given thorough knowledge about each and every aspect of the Tractors.

My project entitled A STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS TRACTORS IN JALANDHAR sincere effort has been made to bring about the lucid facts it is hoped that this report meets the given expectations and various requirements of the research.

In the first phase introduction to the topic is given. After that a market research is performed with a sample size of 100 people. The research study was limited to Jalandhar city. Here, in my survey, I have contacted the respondents through personal interviews only.

The objective of the research is to study the customer awareness regarding Tractors and to know the different parameters that influence the customer in purchasing the tractor.

In the last phase of the report findings, suggestions and conclusions have been drawn. The Rs 7,000-crore Indian tractor industry has been growing sluggishly at two per cent per annum for some years now, and the trend is likely to continue this year. Industry sources attribute this to several factors. But the most important is the general slowdown of the rural economy.

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INDEX

CHAPTER TOPIC PAGE NUMBER

1 1.1 INTRODUCTION

1.1.1 THE BLACK BOX MODEL 1.1.2 UNDERSTANDING THE RURAL CUSTOMER

1.2 TRACTOR INDUSTRY IN INDIA

2 REVIEW OF LITERATURE

3 OBJECTIVE 12

4 NEED AND SCOPE OF THE STUDY 13

5 RESEARCH METHODOLOGY 14

6 DISCRIPTION OF QUESTIONNAIRE 17

7 DATA ANALYSIS AND INTERPRETATION 18

8 FINDINGS OF THE STUDY 34

9 SUGGESTIONS 36

10 LIMITATIONS OF THE STUDY 37

11 CONCLUSION 38

12 REFERENCES 42

13 APPENDIX 44

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CHAPTER 1

1.1 INTRODUCTION

Consumer behavior is the study of when, why, how, and where people do or do not buy

a product. It blends elements from psychology, sociology, social

anthropology and economics. It attempts to understand the buyer decision making process,

both individually and in groups. It studies characteristics of individual consumers such

as demographics and behavioral variables in an attempt to understand people's wants. It

also tries to assess influences on the consumer from groups such as family, friends,

reference groups, and society in general.

Customer behavior study is based on consumer buying behavior, with the customer playing

the three distinct roles of user, payer and buyer. Relationship marketing is an influential

asset for customer behavior 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.

Each method for vote counting is assumed as social function but if Arrows possibility

theorem is used for a social function, social welfare function is achieved. Some

specifications of the social function,

decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and

strong Pareto optimality, no social choice functions meet these requirements in an ordinal

scale simultaneously. The most important characteristic of a social function is identification

of the interactive effect of alternatives and creating a logical relation with the ranks.

Marketing provides services in order to satisfy customers. With that in mind, the productive

system is considered from its beginning at the production level, to the end of the cycle, the

consumer.

1.1.1 THE BLACK BOX MODEL

The black box model shows the interaction of stimuli, consumer characteristics, and decision process and consumer responses. interpersonal stimuli (between people) or intrapersonal stimuli (within people). The black box model is related to the black box theoryprocesses inside a consumer, but theconsumer. The marketing stimuli are planned and processed by the companies, whereas the environmental stimuli are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buand the decision process, which determines the buyers response.

The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. in reality many decisions are not made in awareness of a determined problem by the consumer.

1.1.2 UNDERSTANDING THE RURAL CUSTOMER

In the initial years the focus was on the easily accessible well developed urban market. Soon there was proliferation of brands and intense competition resulting in the near saturation of the urban market. This forced companies to go for greener a pasture that is new markets.eyes turned to the world most promising potential market of 742 million rural consumerwho had yet to taste the fruit of modernity. A promise that seem ready to be fulfilled because of explosion in the buying capacity in the rural sector.

1.2 TRACTOR INDUSTRY IN INDIA

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THE BLACK BOX MODEL

The black box model shows the interaction of stimuli, consumer characteristics, and decision process and consumer responses. It can be distinguished between

(between people) or intrapersonal stimuli (within people). The black box black box theory of behaviorism, where the focus is not set on the

a consumer, but the relation between the stimuli and the response of stimuli are planned and processed by the companies, whereas the

environmental stimuli are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buand the decision process, which determines the buyers response.

The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. in reality many decisions are not made in awareness of a determined problem by the

UNDERSTANDING THE RURAL CUSTOMER

In the initial years the focus was on the easily accessible well developed urban market. Soon ration of brands and intense competition resulting in the near saturation of

the urban market. This forced companies to go for greener a pasture that is new markets.eyes turned to the world most promising potential market of 742 million rural consumerwho had yet to taste the fruit of modernity. A promise that seem ready to be fulfilled because of explosion in the buying capacity in the rural sector.

TRACTOR INDUSTRY IN INDIA

The black box model shows the interaction of stimuli, consumer characteristics, and decision It can be distinguished between

(between people) or intrapersonal stimuli (within people). The black box , where the focus is not set on the

between the stimuli and the response of the stimuli are planned and processed by the companies, whereas the

environmental stimuli are given by social factors, based on the economical, political and cultural circumstances of a society. The buyers black box contains the buyer characteristics

The black box model considers the buyers response as a result of a conscious, rational decision process, in which it is assumed that the buyer has recognized the problem. However, in reality many decisions are not made in awareness of a determined problem by the

In the initial years the focus was on the easily accessible well developed urban market. Soon ration of brands and intense competition resulting in the near saturation of

the urban market. This forced companies to go for greener a pasture that is new markets. All eyes turned to the world most promising potential market of 742 million rural consumers, who had yet to taste the fruit of modernity. A promise that seem ready to be fulfilled because

TRACTOR INDUSTRY IN INDIA

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Tractor industry plays an important part as agriculture sector has a major contribution to Indias GDP. Tractors are part of agricultural machinery industry. Tractors came to India through imports and later on were indigenously manufactured with the help of foreign collaborations. The manufacturing process started in 1961-62. Indian tractor industry is relatively young but now has become the largest market worldwide.

There are currently 14 players in the industry. Mahindra & Mahindra is the leading player in the industry. Monsoon season is a key driver for sales of tractors. A series of good or bad monsoon can affect the sales. In recent years the industry has registered a good growth in sales, both domestic as well as exports. This is also partly because of the initiative of the government to boost up agriculture and agricultural machinery industry.

The tractor penetration level in India is very low as compared to the world standards. Also the penetration levels are also not uniform throughout the country. While the northern region is now almost saturated in terms of new tractor sales, the southern region is still under penetrated. The medium horse power category tractors, 31-40 HP, are the most popular in the country and fastest growing segment.

This report gives an insight into the tractor industry in India, discussing its inception and growth. It analyzes the current scenario of tractors in India, industry size, domestic and exports trends and Indias share in global market. Lastly, it discusses the players in the industry and profiles the top players.

CHAPTER 2

REVIEW OF LITERATURE

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Srivastava et al (2011) surveyed the market to know the difference between rural and urban consumer approach towards buying a product. He finally got that possible to capitalize on the similarities among the rural markets. The most important difference between rural and urban is in the degree of sophistications of the consumers. Urban consumers are generally familiar with such products, their attitude and value related to purchase and consumption will be different. Here the marketer may have to work harder to sell their goods in rural area because of diversity of values and attitudes present in these regions.

Subhadra et al (2010) attempted to find out the important features which a customer considers while going for the purchase of a new car. The study covers the owners of passenger cars living in the major cities of the State of Punjab and the Union Territory of Chandigarh. The respondents perceive that safety and comfort are the most important features of the passenger car followed by luxuriousness. So the manufacturers must design the product giving maximum weightage to these factors.

dhumal naresh et al (2010) surveyed to know the difference in purchasing behavior of rural and urban consumer. He found out that rural consumer is discerning in the rural market is vibrant. at the current rate of growth it will soon outstrip the urban market. The rural market is not sleeping anymore.

Singh et al (2009) tries to find out 1. Personal socio-economic characteristics of the farmers. 2. And the association of socio-economic status with economic motivation of the farmers and discovered that except education, age, land holding and socio-economic status have been found to have significant association with economic motivation.

Malik (2009) wanted to find out the factor effect the purchase decision in durable goods. He found that due to increased income and living standard, the growth rate of the industry is in the peak position and it will rise in the future.

Feng jianying et al (2009) tries to find out that what is the farmers brand perception towards farm machinery in china. Finally he found out that farmers have different perception toward domestic and foreign brands of agricultural machinery. The information channels of brand are mainly from friends, relatives and neighbors, so word of mouth spreading is very important for a brand.

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Pathak SV et al (2009) tries to find the impact of buyers perception of product quality in India found that the quality perception, brand recognition, store reputation and price play an important role in buyers perception

Agarwal et al (2009) tries to know the role of children in purchasing decision. he found that Children of different demographics have a good knowledge of the product and the influence is very prominent in making a purchase decision. They even have the ability to judge the product on different parameters.

Parimal et al (2009) wanted to know the Shopping behavior of rural consumer migrated to urban areas where what factors purchases influence urban retail shopping environment. The study has identified seven factors such as: Recreational and Shopping Conscious, Favorable attitude towards urban shopping environment, Enjoy shopping, Price Conscious, Comparison shopping/ complainer, Perfectionist, High quality conscious which effect the shopping behavior.

Dhumal et al (2008) tried to find that buying decision different demographics in rural and urban areas. The different aspect of the demographics was age, occupation, economic situation, lifestyle and others. He finally found that the buying decision of the consumer of different demographics differ from rural to urban area. The rural area is more bounded by the tradition, custom and values which bring a gigantic change in the life style and personality of the consumers of the rural areas where people are more attached towards the western culture. Low capita income of the consumers in the rural areas restricts them for low consumption pattern as compared to the urban population where the consumer are more brand conscious and are very ready to pay high.

Dhumal M et al (2008) wanted to find what influences purchasing decision of the rural market population. He finds that the communication mix, brands, peer pressure and other motivational factors affect most in the purchasing decision.

Zacharias S et al (2008) wanted to find the impact of the opinion leaders in purchase decision of color TV in rural market. He found that the effect of opinion leaders, word of mouth and differential effect of friends and family are the important factor in TV purchasing decision.

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Dhumal M et al (2008) wanted to find what influences purchasing decision of the rural market population. He found that the communication mix, brands, peer pressure and other motivational factors affect most in the purchasing decision.

Bajaj S (2007) researched to investigate the impact of global and local brand in making a purchase of the product. He finds that the global brands are more influential in nature then local brand. Consumers perceive global brands to be of superior quality.

Singh gyanendra (2004) Tries to find out the impact of farm mechanization in india and he find that the status of agricultural mechanization in India, including the aspects of production of implements and equipment, after- sales- services, level of their adoption and the role of different public and private Institutions in supporting and promoting this critical input for making Indian agriculture to meet the international challenges of productivity and cost of production.

Singh et al (2004) surveyed to know the practical application of rural consumer behavior findings in Indian markets has often posed a problem for marketers for two reasons. First, most consumer researches in rural market has used a piecemeal approach. Second, there has been no comprehensive framework to integrate the findings in a meaningful manner. The paradigm is an attempt which provides a comprehensive framework that will enable marketers to understand, integrate and apply consumer behavior in the rural market.

CHAPTER 3

OBJECTIVE

1 To study

2

To study the different parameters that influence the customer in purchasing the tractor.

3 To study the major market leader among various

market payers.

4 To study consumers satisfaction towards purchased

tractors

5 To study the various problems faced by customers in

their tractor.

6 To study

their existing

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study the customer awareness regarding

To study the different parameters that influence the customer in purchasing the tractor.

To study the major market leader among various market payers.

To study consumers satisfaction towards purchased tractors

To study the various problems faced by customers in their tractor.

study the satisfaction level of theexisting tractor.

regarding tractors.

To study the different parameters that influence the

To study the major market leader among various

To study consumers satisfaction towards purchased

To study the various problems faced by customers in

the customers with

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CHAPTER 4

NEED AND SCOPE OF THE STUDY

NEED: There is an immense need in finding out the behavior in purchase pattern of the consumer to know the changes that occurred in the market. It is required to know about the purchasing pattern as it will reveal the answer that

1. Why users of tractor has declined this days. 2. What could be the possible reason that can enhance the purchasing rate of tractors? 3. How different attitude, motivation, personality, perception, lifestyle and knowledge

effect in the sales? 4. Which factors have dominated in the saturation of the market, since the market is

growing? 5. Does the condition of this buying pattern can be changed or will it be more prominent

in the future.

SCOPE: the study will help me to know the scope that can be helpful in knowing the purchasing pattern of the consumer. It will also elaborate about

1. The future of tractors in villages near Jalandhar. 2. Consumer (in rural areas) what they need? 3. How different companies need to enhance their product accordingly 4. What could be the new areas that will be benefitted after the change? 5. What will be the future customer?

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CHAPTER 5

RESEARCH METHODOLOGY

Research means a search for knowledge or gain some new knowledge and methodology can properly refer to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principles particular to a branch of knowledge. A Research methodology has a specified framework for collecting the data in an effective manner. Research methodology means a "defining a problem, defining the research objectives, developing the research plan, collecting the information, analyzing the information and presentation of findings." Such framework is called "Research Design". The research process that was followed by me consisting following steps;

A) Defining the problem and research objectives B) Developing the research plan C) Collection of information D) Analyzing the information E) Presentation of findings

A) Defining the problem and research objectives The definition of problem includes the study of RURAL PURCHASE BEHAVIOR TOWARDS TRACTORS IN JALANDHAR B) Developing the Research Plan The development of research plan has following steps: 1. Data source

2. Research approach

3. Research instrument 4. Sampling plan

i) Sample unit ii) Sample size iii) Contact methods

1. Data Source: The researcher can get two types of data:

a) Primary Data b) Secondary Data

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2. Research Approach

Survey is best suited for descriptive and analytical research. Survey are undertaken to learn about people's knowledge, beliefs, preferences, satisfaction and so on and to measure these magnitudes in the general public. Therefore, I have done this survey for Descriptive and analytical research process.

Descriptive research includes surveys and fact finding enquiries of different kinds. The main purpose is description of the state of affairs is noted down and analytical research used to analyze the material and facts.

3. Research instrument

Questionnaire: Questionnaire (also known as self-administered survey) is a type of statistical survey handed out in paper form usually to a specific demographic to gather information in order to provide better service or goods. A document that contains a set of questions that has been specially formulated as a means of collecting information and surveying opinions, etc on a specified subject or theme, etc . A questionnaire was constructed for my survey.

4. Sampling plan Sample is a group of few items which represents the population or universe from where it has

been taken. The sampling plan calls for three decisions;

a) Sample unit b) Sample size c) Contact methods

a) Sample unit who is to be surveyed? The target population must be defined that has to be sampled. It is necessary so as to develop a sample frame so that everyone in the target population has an equal chance of being sampled. I have completed my survey in Jalandhar.

b) Sample size - how many people have to be surveyed? Generally, large sample size gives more reliable results than small samples. The sample consisted of 100 respondents. The sample was drawn from people having different

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educational qualification, age group, occupation and income. The selection of the respondents was done on the basis of Simple Random Sampling. Simple random sampling is the technique in which every item in the universe and population has an equal chance of being selected in the sample. Researcher has no role to play or he cannot influence the selection process there is no possibility of biasness. It can easily assess the accuracy of estimate.

c) Contact methods Once the sampling plan has been determined the Questionnaire is how the subject should be contracted i.e. by telephone interview, personal interview, observation, mail etc. here, in my survey, I have contacted the respondents through personal interviews.

D) Collecting the information After this, I have collected the information from the respondents with the help of Questionnaire.

D) Analyze the information

E) Presentations of findings

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CHAPTER 6

DISCRIPTION OF QUESTIONNAIRE

Q1. This question wanted to know the consumer awareness towards the different brands of tractor that they know.

Q2. The question will find out the major players in the market and what is the common power requirement of the tractors in the market.

Q3. What is the purpose of buying the tractor will be described in this question.

Q4. This question will find out what a consumer expect from their tractor and in what order.

Q5. Does season influence their behavior of buying?

Q6. How different financial sector have their influence on the buying behavior.

Q7. Which factor among the option (given) influence the consumer most while purchasing tractor?

Q8. What are the various sources that effect purchasing of tractor?

Q9. What different problem they face after purchasing tractor (can be utilized by the different companies)

Q10. This question tends to find out the satisfaction level of the consumer.

Q11. What is consumer perception about their tractor is described in the question.

Q12. What modification they wanted in the future for their tractor.

Q13. Does any tractor company influence them advertisement.

Q14. Does newspaper advertisement effect purchasing. Which one is described here?

Q15. Does the consumer want to be in contact with company for any queries?

CHAPTER 7

DATA ANALYSIS AND

Q1. How many tractor companies do you know about?

Companies

Tafe

Farmtrac

Mahindra

Sonalika

Swaraj

John Deer

Indofarm

New Holland

0102030405060708090

100

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DATA ANALYSIS AND INTERPRETATION

ractor companies do you know about?

No. of Respondents

100

75

100

100

90

50

35

100

No. of Respondents

No. of Respondents

NTERPRETATION

No. of Respondents

19

Interpretation:

From the above graph it is clear that all the 100 respondents are aware of Tafe, Mahindra,

Sonalika, New Holland Tractors, 90 respondents are aware of Swaraj, 75 respondents are

aware about Farmtrac, 50 respondents are aware of John Deer and 35 respondents have

shown their awareness regarding Indofarm Tractor.

Q2. Which tractor do you own and what is its HP?

(a) Tractor

Companies %age of Respondents

Tafe 11%

Farmtrac 9%

Mahindra 28%

Sonalika 17%

Swaraj 22%

John Deer 6%

Indofarm 3%

New Holland 11%

(b) Segment wise HP Range

0%

5%

10%

15%

20%

25%

30%

0%

10%

20%

30%

40%

50%

60%

70%

Below 30

HP Range

Below 30

31-40

More than 40

20

%age of Respondents

%age of Respondents

31-40 More than

40

%age of Respondents

%age of Respondents

%age of Respondents

15%

65%

20%

%age of Respondents

%age of Respondents

21

Interpretation :

From the above data it is clear that majority (27%) of the respondents have Mahindra

Tractors. 23% of the respondents have Swaraj and 16% respondents have Sonalika Tractors

followed by Tafe, New Holland, Farmtrac, John Der and Indofarm.

It is also revealed from the data of Segmetwise HP Range that majority of the respondents

have 31-40 HP range of tractors, 15% respondents have below than 30 HP and remaining

20% respondents have more than 40 HP ranges of tractors.

Q3. What work you generally take from a tractor?

Type of Work %age of Respondents

Agriculture 80%

Haulage 20%

Interpretation:

From the above graph it is clear that majority (80%) of the respondents use tractors for the

agriculture purpose and remaining 20% respondents use the tractors for haulage purpose.

Q4. What do you expect from a

Type of Work

Road Speed

Ground Clearance

Backup Torque

Fuel Efficiency

Good Looks

Less Maintenance

Availability of workshops/mechanics

Good Resale Value

Turning Radius

Size of Tractor

05

101520253035404550

105

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Q4. What do you expect from a Tractor? Please allocate 100 points among the options.

No. of points

10

5

0

50

5

10

Availability of workshops/mechanics 10

5

0

5

0

50

510 10

50

5

No. of points

among the options.

Interpretation:

There are many factors on which the success of

Maintenance, and After Sale Services etc.

The above question is asked to the respondents with the objective to know the expectation

of the customer. From the above graph it is clear that majority of the respondents h

given 50 points to Fuel Efficiency. 10 points each are given to Less Maintenance and

Availability of workshops /mechanics and road speed. 5 points each are given to ground

clearance, good looks, good resale value and size of tractor.

Q5. In which season do you prefer to buy a

Season

Spring

Summer

Autumn

Rainy

Winter

0%

10%

20%

30%

40%

50%

60%

70%

Spring Summer

23

There are many factors on which the success of tractor depends i.e. Fuel Efficiency,

Sale Services etc.


of the customer. From the above graph it is clear that majority of the respondents h



looks, good resale value and size of tractor.

son do you prefer to buy a tractor?

%age of Respondents

65%

15%

5%

10%

5%

Summer Autumn Rainy Winter

%age of Respondents

%age of Respondents

tractor depends i.e. Fuel Efficiency,


of the customer. From the above graph it is clear that majority of the respondents have



%age of Respondents

Interpretation:

As the spring season is the season of farmers

to buy a tractor in Spring Season. From the above graph it is clear that majority (65%) of the

respondents would like to buy a tractor in spring season. 15% respondents would like to buy

tractor in summer, 10% in rainy season and remaining 5% each in autumn and winter sea

respectively.

Q6. Which financial sector influences

Particulars

Loan Facility

Price

Discounts

Buy Back Scheme

Personal Selling

0

1

2

3

4

5

6

Loan Facility Price

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season of farmers in India so most of the respondents would like

in Spring Season. From the above graph it is clear that majority (65%) of the


tractor in summer, 10% in rainy season and remaining 5% each in autumn and winter sea

sector influences you most while buying a tractor? (Rank the order).

Ranking

1

2

3

4

5

Price Discounts Buy Back

Scheme

Personal

Selling

Ranking

in India so most of the respondents would like

in Spring Season. From the above graph it is clear that majority (65%) of the


tractor in summer, 10% in rainy season and remaining 5% each in autumn and winter season

(Rank the order).

Ranking

Interpretation:

With the majority of our countrys population engaged in farming and agriculture, our Farm Equipment Loans help rural India surge ahead in a big way. So majority of the respondents have given first rank to Loan Faci

Scheme and fifth to Personal Selling

Q7. To what extent does these factors affect to the choice of a scale). Factors Brand Name After Sale Services Availability of spare parts Kind of work to be taken from the Coverage area Fuel Efficiency Warranty

Interpretation:

There are many factors which affects the buying

after sale services, availability of spare parts etc. From the above data it is clear

majority of the respondents have given 9 point scale each to

Fuel Efficiency. 8 points each are given to

coverage area and warranty of the tractor.

7.47.67.8

88.28.48.68.8

9

25

ur countrys population engaged in farming and agriculture, our Farm Equipment Loans help rural India surge ahead in a big way. So majority of the respondents

Loan Facility, second to Price, third to Discounts, fourth to Personal Selling.

Q7. To what extent does these factors affect to the choice of a tractor?

Scale 9 8 8

Kind of work to be taken from the tractor 9 8 9 8

There are many factors which affects the buying behavior of the customers like brand name,

after sale services, availability of spare parts etc. From the above data it is clear

majority of the respondents have given 9 point scale each to Brand name, kind of work

8 points each are given to after sale services, availably of spare parts,

coverage area and warranty of the tractor.

Scale

ur countrys population engaged in farming and agriculture, our Farm Equipment Loans help rural India surge ahead in a big way. So majority of the respondents

, fourth to Buy Back

tractor? (Rate on 1-10

of the customers like brand name,

after sale services, availability of spare parts etc. From the above data it is clear that

Brand name, kind of work and

after sale services, availably of spare parts,

Scale

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Q8. How much do these sources influence the purchase of a particular brand of tractor?

Source Strongly

Disagree

Disagree Neutral Agree Strongly

Agree

Relatives 10 10 40 20 20

Neighbors

/Villagers

5 10 15 65 5

Mechanics 0 0 5 20 75

Spare part

shops

0 5 10 15 70

Old Customers 0 0 10 10 80

Interpretation:

From the above graph it is clear that majority of the respondents are influenced by

mechanics spare parts shops and old customers during purchase of a particular brand of

tractor.

0

10

20

30

40

50

60

70

80

90

Strongly

Disagree

Disagree Neutral Agree Strongly

Agree

Relatives

Neighbors /Villagers

Mechanics

Spare part shops

Old Customers

Q9. What are the problems faced by yo

Problems Faced

Oil Leakage

Differential Noise

Non Availability of spare parts

Slow Speed

Not Good for Trolley

Clutch Plate Problem

Gear Box Noise

Less Backup Torque

Heating of engine

Not Fuel Efficient

Frequent maintenance required

Heavy drop in RPM

Front Lifting

0

1

2

3

4

5

6

7

8

27

Q9. What are the problems faced by you in your tractor? (Rate on 1-10 scale)

Rating

3

3

Non Availability of spare parts 3

3

3

4

4

4

4

5

Frequent maintenance required 5

5

7

Rating

10 scale)

Rating

Interpretation:

From the above graph it is clear that majority of the respondents have rated Front Lifting as

the major problem which is faced

Leakage, Differential Noise, Non Availability of spare parts, Slow Speed etc.

10. What satisfaction level you have from your

Highly Not

Satisfied

Not Satisfied

0% 5%

Interpretation:

From the above graph it is clear that majority (75%) of the respondents are satisfied with

their tractor, 10% feels highly satisfied, 10% says neutral and 5% are not satisfied with their

present tractor.

0%

Highly Not Satisfied

Not Satisfied

Neutral

Satisfied

Highly Satisfied

28


the major problem which is faced by the customers followed by other problems like Oil


10. What satisfaction level you have from your tractor?

Not Satisfied Neutral Satisfied Highly Satis

10% 75% 10%



0% 20% 40% 60% 80%


by the customers followed by other problems like Oil


Highly Satisfied

10%



Series1

Q11. How do you describe your tractor on following attributes?

High Quality

Expensive

A Brand I trust

Well Built

Good Value for money

Interpretation:

From the above graph is clear that majority of the respondents are brand loyal so majo

of the respondents said that

built, third to quality, fourth to

0

1

2

3

4

5

6

High Quality Expensive

29

How do you describe your tractor on following attributes?

3

5

1

2

4

From the above graph is clear that majority of the respondents are brand loyal so majo

of the respondents said that Sonalika is brand that they can trust. Second rank goes to

fourth to good value for money and fifth rank goes to

Expensive A Brand I

trust

Well Built Good Value

for money

From the above graph is clear that majority of the respondents are brand loyal so majority

Second rank goes to well

and fifth rank goes to expensive.

Series1

30

12. What are the new features you expect from tractor manufacturers?

High Fuel Efficiency 60%

Heavy Front Alignment 15%

Break System 10%

Gear Shifting 10%

Others 5%

Interpretation:

From the above graph it is clear that majority (60%) of the respondents want high fuel

efficiency, 15% want heavy front alignment, 10% want change in break system, other 10%

respondents want soft gear shifting and remaining 5% respondents want other new features

in their tractor.

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

High Fuel Efficiency

Heavy Front Alignment

Break System

Gear Shifting

Others

Series1

Q13. Have you seen tractor advertisements?

(a) Response

Response

Yes

No

(b) Sources of advertisement

Sources of advertisement

Newspaper /journals

Through Reference

Wall Paintings

Hoardings

Exhibition /Trade Shows

Through Supplier Visit

Radio FM

Others

0 50

Yes

No

31

advertisements?

No. of Respondents

120

80

(b) Sources of advertisement

No. of Respondents

50

10

15

10

0

15

20

10

50 100 150

No. of Respondents

No. of Respondents

No. of Respondents

32

Interpretation:

From the above data it is clear that out of 100 respondents 60 respondents have seen

tractor advertisements.

23 respondents have seen advertisement of tractor in newspapers and journals, 19

respondents have heard the advertisement of tractor in Radio FM. 8 respondents have

tractor ad in wall paintings and other 7 respondents have come to know about tractor

advertisement through supplier visit. 5 respondents have come to know about tractor Ad

through hoardings, references and remaining 5 respondents through other sources.

38%

8%11%

8%0%

12%

15%

8%

No. of Respondents

Newspaper /journals

Through Reference

Wall Paintings

Hoardings

Exhibition /Trade Shows

Through Supplier Visit

Radio FM

Others

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Q14. What is your favorite newspaper or magazine?

Punjab Kesari 20%

Dainik Bhaskar 10%

Ajit 40%

Jagbani 20%

Dainik Jagran 10%

Interpretation:

As we know that tractors are mostly used in villages and farmers are in the villages of Punjab

are familiar to Punjabi as compare to Hindi languages. So the majority of the respondents

said that Ajit is their favorite newspaper followed by Jagbani, Punjab Kesari, Dainik Bhaskar

and Dainik Jagran.

20%

10%

40%

20%

10%

Chart Title

Punjab Kesari

Dainik Bhaskar

Ajit

Jagbani

Dainik Jagran

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CHAPTER 8

FINDINGS OF THE STUDY

From the above study it is clear that majority (80%) of the respondents use tractors for

the agriculture purpose and remaining 20% respondents use the tractors for haulage

purpose.

There are many factors on which the success of tractor depends i.e. Fuel Efficiency,

Maintenance, and After Sale Services etc. From the study it is clear that majority of the

respondents have given 50 points to Fuel Efficiency. 10 points each are given to Less

Maintenance and Availability of workshops /mechanics and road speed. 5 points each

are given to ground clearance, good looks, good resale value and size of tractor.

As the spring season is the season of farmers in India so most of the respondents would

like to buy a tractor in Spring Season. From the above study it is clear that majority

(65%) of the respondents would like to buy a tractor in spring season. 15% respondents

would like to buy tractor in summer, 10% in rainy season and remaining 5% each in

autumn and winter season respectively.

With the majority of our countrys population engaged in farming and agriculture, our

Farm Equipment Loans help rural India surge ahead in a big way. So majority of the

respondents have given first rank to Loan Facility, second to Price, third to Discounts,

fourth to Buy Back Scheme and fifth to Personal Selling.

There are many factors which affects the buying behavior of the customers like brand

name, after sale services, availability of spare parts etc. From the above data it is clear

that majority of the respondents have given 9 point scale each to Brand name, kind of

work and Fuel Efficiency. 8 points each are given to after sale services, availably of spare

parts, coverage area and warranty of the tractor.

From the above research it is clear that majority of the respondents are influenced by

mechanics, spare parts shops and old customers during purchase of a particular brand of

tractor.

35

Majority of the respondents have rated Front Lifting as the major problem which is faced

by the customers followed by other problems like Oil Leakage, Differential Noise, Non

Availability of spare parts, Slow Speed etc.

Most of the respondents are satisfied with their tractor i.e. 75%, 10% feels highly

satisfied, 10% says neutral and 5% are not satisfied with their present tractor.

From the above study is clear that majority of the respondents are brand loyal so

majority of the respondents said that Sonalika is brand that they can trust. Second rank

goes to well built, third to quality, fourth to good value for money and fifth rank goes to

expensive.

It is also revealed from the study that majority (60%) of the respondents want high fuel

efficiency, 15% want heavy front alignment, 10% want change in break system, other

10% respondents want soft gear shifting and remaining 5% respondents want other new

features in their tractor.

From the above study it is clear that out of 100 respondents 60 respondents have seen

Tractors advertisements. So tractor should put more emphasis on TV advertisements.

As we know that tractors are mostly used in villages and farmers are in the villages of

Punjab are familiar to Punjabi as compare to Hindi languages. So the majority of the

respondents said that Ajit is their favourite newspaper followed by Jagbani, Punjab

Kesari, Dainik Bhaskar and Dainik Jagran.

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C H A P T E R - V I CHAPTER 9 SUGGESTIONS

Dealers recommend the company to use following source of ads.

Organization of full service camps and demos will be more effective other media's.

Direct contact program will yield more promising results the co should make these as

regular feature.

Participation in rural prestigious & famous fairs & melas would be the best media to

convey messages.

Keeping in view the increasing competition, the company should increase its warranty

period from one year to two years at least. This would attract more customers.

ITL's tractors are generally used in Punjab only and to little extent in Haryana, Rajasthan,

and Himachal. It should make every possible effort to improve its sales in other states

also like Andhra Pradesh. Gujarat, Madhya Pradesh, J & K. U.P., etc... This can be

achieved by:

Conducting demonstration by organizing exhibition of the different models of the

tractors.

Giving dealer high Incentive, particularly in these States.

There is less emphasis on advertisement of Tractors. By increasing the advertisement

expenditure company can create more awareness among the people.

Training should be given to the salesmen on how to make more sales through building

better relationships and handling promotion material efficiently.

Sales executives of the company should try to solve the grievances of dealers as early as

possible which will reduce the risk that dealers will shift to other brands.

Provide more benefits to dealers in comparison to its competitors.

Higher official of the company must also visit the different outlets at least once a month

to get the feedback about the companys salesman and supervisor, because at times

supervisor can be biased.

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In order to make branches like Combines, Thrashers, Maize reaper and three wheeler

etc. more popular, the company needs to develop new promotional strategies.

CHAPTER 10

LIMITATIONS OF THE STUDY

Although I have done sincere efforts to collect authentic and relevant information, the study

may have the following limitations:

It was very difficult for me to get fulfill the forms because of respondents busy

schedule and not providing me sufficient time to fill the form seriously.

Scope of study is limited to Jalandhar only because of limited time and money. So

results of study may not be generalized.

This study is based on the assumption that responses are true and factual

although at times that may not be the case.

Though every care has been taken to eliminate such biases, but considering the

human factor the possibility of small bias having come up cannot be ruled out

altogether.

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CHAPTER 11

CONCLUSION

The Rs 7,000-crore Indian tractor industry has been growing sluggishly at two per cent per annum for some years now, and the trend is likely to continue this year. Industry sources attribute this to several factors. But the most important is the general slowdown of the rural economy.

In the rural areas, tractors are used not just for farm operations, but also as a means of transport for both men and materials. By doing the survey of 100 respondents I have concluded that:

From the above study it is clear that majority (80%) of the respondents use tractors for

the agriculture purpose and remaining 20% respondents use the tractors for haulage

purpose.

All the dealers are using latest advertising skills like Demo in Fairs, giving ads on cable

network etc. to enhance their sales.

Tractor Industry is in the growth stage and new policies are to be made to develop the

growth.

As the spring season is the season of farmers in India so most of the respondents would

like to buy a tractor in Spring Season. From the above study it is clear that majority

(65%) of the respondents would like to buy a tractor in spring season. 15% respondents

would like to buy tractor in summer, 10% in rainy season and remaining 5% each in

autumn and winter season respectively.

Since the district has been developing in the literacy rate. Some dealers of the company

are improving the image and position of their respective companies.

The banks are also providing attractive loan schemes to motivate the farmers to

buy tractors

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Sale of tractor has increased in each year. This shows the company is doing well

in market and giving tough competition to its competitors

However, India is the worlds second largest maker of tractors, which form one of the most

important agriculture equipments. The New Industrial Policy has de-licensed the

manufacture of tractors in India and since 1970 the production of tractors has been

witnessing steady growth. Tractor manufacture is now firmly established in India and is

highly competitive with rapid advances being made in technical design and quality with

increasing attention to export markets. The growth in the sales of tractor touched an all

time high in the last five years to about 30% in 2004-05 at 249,000 units, inclusive of

exports. This is in comparison to 191,000 units in the previous year.

There is a need of some improvement in fuel efficiency: Improving fuel efficiency, of the

tractor engines, is a matter of national importance, as any saving effected in fuel

consumption would reduce the drain on foreign exchange and therefore should receive

utmost priority from all concerned Reducing the specific fuel consumption is an expensive

and time consuming

Exercise and requires a specialized expertise and knowledge, which is not readily available

with the industry. It is suggested that assistance from organizations like ARAI, Ricardo GK

and AVL Austria, which conduct research, of this type would be desirable, to get the desired

results, quickly. Studies covering suitability and optimum utilization or of tractors, of

different HPs, for different sizes of land holdings, different soils or different crops should be

sponsored such studies could be the base for incentives for encouraging, techno-

economically efficient, tractor models

Improvement in quality of tractor implements: All the benefits that one can expect, from a

fuel efficient engine, can be nullified if matching implements are not used with the tractor.

If, properly designed implements, matched to the tractors are used 20% to 30%

improvement, in performance efficiency and proportional fuel economy can be achieved

Production, of tractor implements, is reserved by the Govt, for the small scale sector, which,

40

in many cases, need up gradation, in respect of design and materials used. To achieve this, it

is suggested, that each tractor manufacturer, should design implements properly matched

to their tractors and, of standardized quality and make the knowhow for the same, available

to the implement manufacturers and adopt a system, of quality audit and monitoring, to

ensure production of desired quality implements

Incentives for innovation: Because of, the expensive and time consuming, steps required

for developing original design of tractors and, introducing them in the markets,

entrepreneurs choose the easier option of importing the designs. Suitable incentives, for

indigenous development, of new tractor model, should be provided.

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C H A P T E R - V I I CHAPTER 12 REFERENCES 1. Global journal of management and business research Volume 11, issue 5 on

April 2011 By SINGH JAGWINDER (national institute of technology, Jalandhar, Punjab, India)

http://globaljournals.org/GJMBR_Volume11/10-A-Comparison-Of-Rural-And-Urban-Buying-Of-Consumer-Durables.pdf

2. India innovation in rural market BY PROF. ARORA PANKAJ

http://www.brandchannel.com/images/papers/522_2011-03_India_Rural_Marketing.pdf

3. Consumer behavior in rural marketing-a new paradigm

BY: DR. SRIVASTAVA SATYA PRAKASH & KUMAR MANISH

http://www.google.co.in/url?sa=t&rct=j&q=Consumer+behavior+in+the+rural+market+is+even+mor

e+perplexing+because+of+a+singular++lack+of+consistency+in+groups+which+are+homogeneous+i

n+parameters+of+demographics-

++Age%2C+occupation%2C+education+and+income.+&source=web&cd=1&ved=0CB0QFjAA&url=htt

p%3A%2F%2Fajtmr.com%2Fpapers%2Fvol1issue1%2FCONSUMER-BEHAVIORIN-RURAL-

MARKETING.pdf&ei=Td3JTtC0OYmzrAe1w4XmDQ&usg=AFQjCNEzEwG9ZBJTogmK7PDNdkvcs2L-4g

4. By:SINGH G (Asian Inst. Technology Bangkok, Thailand) & DOHAREY R S

(Joint Commissioner) (machinery), Ministry Of Agriculture, New Delhi, India http://www.indianjournals.com/ijor.aspx?target=ijor:aet&volume=23&issue=1and2&article=001

5. Scope, Progress and Constraints of Farm Mechanization in India BY:JOGINDER SINGH (Professor-cum-Head, Department of Economics, Punjab Agricultural

University, Ludhiana)

http://www.google.co.in/url?sa=t&rct=j&q=In+the+context+of+increasing+commercialization+of+ag

riculture%2C+mechanization+is+very+important.+There+has+been+increase+in+the+use+of+farm+

machinery+in+Indian+Agriculture+as+it+contributed+to+the+increase+in+output+due+to+timeliness

+of+operations+and+increasing+precision+in+input+application.&source=web&cd=1&ved=0CB0QFj

42

AA&url=http%3A%2F%2Fagricoop.nic.in%2FFarm%2520Mech.%2520PDF%2F05024-

03.pdf&ei=8d7JTsbrLIvRrQehq_mWDg&usg=AFQjCNE3d8ijgotl0WA0FQKxaybfcqJ-mQ

6. http://www.researchandmarkets.com/info/terms.asp

Government of India.Singh, G. 1997. Agricultural Mechanization and Agro-Processing after

independence. Central Institute of Agricultural Engineering, Bhopal.

Singh, G. and Bharadwaj, K.C. 1985. Directory of Agricultural Machinery and Manufacturers, Central

Institute of Agricultural Engineering, Bhopal.

Singh, Gajendra; Singh, Gyanendra and Nachiket Kotwaliwale. 1999. Agricultural Production and

processing technology for women in Indian agriculture. International Journal of Gender, Technology

and Development, Asian Institute of Technology, May-August

Singh, Gyanendra. 1998. An analytical approach to farm mechanization in India-agricultural

machinery development and promotion. Journal of Rural Development

Singh, Gyanendra. 1994. Weight matrix of Indian cattle and their draught power. Indian Journal of

Agricultural

Other references

1. Saini, D.R,Stretegy of Rural Mrketing,

2. Pradeep kashyap & sidharta Raut :"Rural Marketing

3. Schiffman,L & L Knauk. Consumer behavior.7th ed. prentice hall

4. Survey of Indian Industry, 2003, the Hindu.

5. Kotler.P Principals of marketing.13e south Indian context.

6. Business Line,,Big Brands innovate to tap the rural market July 03 (2002)

(www.exchange4media.com)

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CHAPTER 13

APPENDIX

QUESTIONNAIRE

Q1. How many tractor companies do you know about?

Tafe Farmtrac

Mahindra Sonalika

Swaraj John Deer

Indofarm New Holland

Q2. Which tractor do you own and what is its HP?

________________________________________________________

Q3. What work you generally take from a tractor?

Agriculture Haulage

Q4. What do you expect from a Tractor? Please allocate 100 points among the options.

Road Speed Ground Clearance

Backup Torque Fuel Efficiency

Good Looks less Maintenance

Availability of Good Resale Value

Workshops/mechanics

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Turning Radius Size of Tractor

Q5. In which season do you prefer to buy a tractor?

Spring summer

Autumn Rainy

Winter

Q6. Which financial sector influences you most while buying a tractor? (Rank the order).

Loan Facility Price

Discounts Buy Back Scheme

Personal Selling

Q7. To what extent does these factors affect to the choice of a tractor? (Rate on 1-10 scale)

Brand Name

After Sale Services

Availability of spare parts

Kind of work to be taken from the tractor

Coverage area

Fuel Efficiency

Warranty

Q8. How much does this source influence the purchase of a particular brand of tractor?

Strongly Agree Neutral Disagree Strongly

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Agree Disagree

Relatives

Neighbors /Villagers

Mechanics

Old Customers

Spare part shops

Q9. What are the problems faced by you in your tractor? (Rate on 1-10 scale)

Oil Leakage Differential Noise

Slow Speed Not Good for Trolley

Clutch Plate Problem Gear Box Noise

Less Backup Torque Heating of engine

Not Fuel Efficient Heavy drop in RPM

Front Lifting

Non Availability of spare parts

Frequent maintenance required

Q10. What satisfaction level you have from your tractor?

Highly Not Satisfied Not Satisfied

Neutral Satisfied

Highly Satisfied

Q11. How do you describe your tractor on following attributes?

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High Quality Expensive

A Brand I trust well Built

Good Value for money

Q12. What are the new features you expect from tractor manufacturers?

High Fuel Efficiency Heavy Front Alignment

Break System Gear Shifting

Others

Q13. Have you seen any tractor advertisements?

Yes No

Q14. What is your favorite newspaper or magazine?

Punjab Kesari Dainik Bhaskar

Ajit Jagbani

Dainik Jagran

Q15. Do you want someone from Tractor Company to get in touch with you?

Yes No

Name : __________________________________________________

Village : __________________________________________________

Phone No : __________________________________________________

Engine No. :__________________________________________________

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Chassis : __________________________________________________

Tractor Model: _________________________________________________

Year & Month of Purchase: ______________________________________

STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS TRACTORS IN JALANDHAR

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