Research Report

ON
Study on consumer behavior towards Power Segment Bikes

[150cc and Plus]

Submitted in the partial fulfillment for the award of Masters Degree in Business Administration (Session 2008 - 10)
SUBMITTED TO: Mrs. Anju Verma SUBMITTED BY: Harish Roll No.: 081021

S. D. COLLEGE OF MANAGEMENT, ISRANA, PANIPAT

KURUKSHETRA UNIVERSITY, KURUKSHETRA

PREFACE Management ideas without any action based on them mean nothing. That is why practical experience is vital for any management student. Theoretical studies in the classes are not sufficient to understand the functioning climate and the real problems coming in the way of management of Men, Material, Machine and Money. So practical exposures are indispensable to such courses. Thus practical experience acts as a supplement to the classroom studies. It offers an exposure to real practical of management in various organizations. It exposes invaluable treasures of expenses to a student. This dissertation deals with the application of theory to know the role of dealers in consumer buying behavior & customer satisfaction, through market survey & research. It was my fortune to do this dissertation. I learned a lot of new things which could never been learned from the theory classes. This dissertation report is a presentation of my work.

In the forthcoming pages, an attempt has been made to present a comprehensive report concerning different aspects of my dissertation, the overall knowledge gained by me will reflect in the report itself. Harish

ACKNOWLEDGEMENT
First of all I am deeply indebted to Department of Management, S.D. College of Management, Israna (Panipat) for allowing me to complete my research study at Consumer behavoiur towards Power Segment Bikes. It gives me immense pleasure to express my heartfelt gratitude to prof M. K. Kulshreshtha ,Director SDCM and respected guide Mrs. Anju Verma (MBA Lecturer) Israna (Panipat) for providing me articulate guidance and ceaseless encouragement throughout study. I shall be failing in my duty if I do not acknowledge the contribution of my family for their constructive cooperation.

Harish

DECLARATION

This is certified that the material embodied in the present work Consumer behavoiur towards Power Segment Bikes is based on my original research work. It has not been submitted in part or full for any other Diploma or Degree of any University. My indebtedness to other works has been duly acknowledged at the relevant places.

Harish

CERTIFICATE
This is to certify that the research work entitled Consumer behavior towards Power Segment Bikes has been undertaken by Mr. Harish under my supervision in the partial fulfillment of requirement of the post graduate course (MBA). The research work is candidates original work & this project report has not been submitted to any other university for any course.

This is also certified that Mr. Harish is the student of MBA Final in S.D College of Management Israna, (panipat) (Affiliated to Kurukshetra University, Kurukshetra).

Project Guide: Mrs. Anju Verma Faculty, MBA Deptt.,

Contents
Chapter 1 Chapter 2 Chapter 3 INTRODUCTION OBJECTIVE OF STUDY CONSUMER BUYING BEHAVIOUR Major Players & Product Offered Customer Satisfaction Customer Expectations Chapter 4 INDUSTRY PROFILE Introduction Participants of Two Wheeler Segment Growth of Two Wheeler Industry Chapter 5 RESEARCH METHODOLOGY Problem identification Scope of Study Research Design Sampling Plan

 Method Of Data Collection Sources Of Data Collection Limitations Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 ANNEXURES:- Questionnaire Bibliography DATA ANALYSIS MAJOR FINDINGS DATA INTERPRETATIONS RECOMMENDATIONS & SUGGESTIONS CONCLUSION

Chapter 1

INTRODUCTION

INTRODUCTION
In this era of cut throat competition, no company can even survive in the market place without knowing its and its products strengths and weaknesses. It has to fortify itself against threats from the environment and exploit its strengths or increase profits. And in order to do so, the company has to conduct regular surveys to know the customers opinions, needs, and preferences. This helps the company to manufacture the product like wise for each customers expectations. It has now become more important for the customer confidence and higher positioning of buyer perception. Thus, Surveys becomes genuine key to success.

MOTORCYCLE
The motorcycle segment is dominated by 4 major players viz. HERO HONDA, BAJAJ, TVS, ROYAL ENFIELD. Besides there are players like:- HONDA(itself alone), LML,KINECTIC. The market share of each of the player is as given below. Near 70% of the motorcycle sales is from Indi-Japanese motorcycles and rest coming from Indian motorcycle manufacturers. The Indo-Japanese segment is catered by 4 to 6 models from each of the players viz. . HERO HONDA, BAJAJ, TVS, ROYAL ENFIELD etc. But majority of sales is of 100cc to 125cc motorcycles. The Indo-Japanese motorcycles are costlier due to import content and royalty payments to their Japanese collaborations. But, These motorcycles are far ahead of Indian Manufacturers viz. Rajdoot from EYML, Yexzdi from IDEAL JAWA; in terms of technology and fuel-efficiency.

MARKET SHARE IN THE MOTORCYCLE SEGMENT

HERO HONDA HONDA TVS BAJAJ ROYAL ENFIELD LML KINETIC

46.8% 3.2% 9.4% 24.6% 2.8% 9.2% 4%

Sources:-- SIAMINDIA The expanding Indian market, the growing size of the middle class and the rise in aspirations of the youth along with opening up of the Indian economy have collectively influenced the steady growth of the two wheeler market in India. With leading foreign brands in collaborations with Indian manufacturers entering the Indian market, the customer could not have asked for more. In fact, the Indian bike market has grown immensely and the preference for variety, looks, design has brought in a number of models in the market. In the last 2 to 3 years, the craze for motorcycle over the scooters has picked up and one can find today even girls craving for a motorbike. Not only in the Metros but in small towns and cities also. Trying to catch up with these, manufacturers are busy working out customer profiles. With the competition hotting up one can find a host of discounts including: cash rebates and free accessories to push sales of the commuter bikes. Certain changes are also visible as far as customer preferences are concerned. The basic 100cc bike market is

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suddenly experiencing a slow down in the growth. This Commuter bike was a favorite till the other day commanding up to 90% of the total bike sales. The shift towards 100cc plus bikes is suddenly discernable and the segment is expected to double in the next year itself. Manufacturers are now rushing in to introduce bikes in this segment. Bajaj had recently launched a spruced up version of its Caliber and is also planning to upgrade the Pulsar-Dtsi higher on the power ladder. Hero Honda is also upgrading its line-up to keep pace with the shift in demand by launching: Ambition 135, CBZ star, Karizma etc. But its not yet end of the road for the basic entry-level bike. We are witnessing segmentation in the bike market, like the Bike market. The entry level model will continue to be a high-interest segment for the aspirants. Against this backdrop, the present project work has been undertaken. With the focus of the consumer shifting to brand and product features, the project is a study aiming at understanding what does a customer wants from Power segment bikes(150cc & plus).

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Chapter 2

OBJECTIVES OF THE STUDY

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Objectives of the project study

1. To study the rapid changing perception of consumers towards power segment bikes. 2. To study the satisfaction level of consumers, who uses bikes. 3. To study effect of advertisement on the purchases decision of the consumers. 4. To study the main factor that most influence the consumer to buy a bike. 5. To study the brand preferences of buyers. 6. To study the factors influencing consumers to buy power bikes.

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Chapter 3

CONSUMER BEHAVIOUR

BUYING

CONSUMER BEHAVIOR

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(In todays challenging & competitive world of fast changing technology, consumer tastes are also characterized by fast changes. So, to survive in the market, a firm has to be constantly innovating and understand the latest, consumer trends, tastes and preference. Consumer behavior provides invaluable dues and guidelines to market on new technological frontiers, which they should explore. It is realized by studying the buying behavior of consumers that many consumer products that they felt reflected their own special needs, personalities and lifestyles. To better meet the needs of specific groups of consumers, most marketers adopted a policy of market segmentation & successfully market to different segments the marketing manager needs appropriate marketing strategies, which he can design only when he can understand the factor, which account for these difference in consumers behavior. The most important reason for studying consumer behavior is the significant role it plays in our lives. It plays a vital role in decision-making. As consumer significantly affected certain decision's behavior or expected actions. So, consumer behavior is said to be an applied discipline. Such applications can exit at two different levels of analysis. The Micro Perspective & Societal perspective. The micro perspective involves understanding consumers for the purpose of helping a firm or organization accomplish its objectives. The societal perspective can provide insight into aggregate economic & social trends and can perhaps even predict such trends. It may suggest ways to increase the efficiency of the mkt system & improve the well being of people in society. Consumers Behavior can be defined as "The behavior that consumer display in searching for, punching, using, evaluating and disposing of products & service that they expect will satisfy their needs. The decision process & physical activity individuals engaging when evaluating, acquiring, using or disposing of goods and services. A consumer plays a no, of roles in purchase decision. The study, of consumers behavior would be incomplete if it treated only one consumer role. Some consumers Behavior role are

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ROLE Initiator Influencer

DESCRIPTION The individual who determines that some or need or want is not being met & authorize to rectify the situation. A person who by some intentional or unintentional word or action influences the purchase decision, the actual purchase and the use of the product or service.

Buyer User

The individual who actually makes the purchase transaction. The person most directly involved in the consumption or use of purchase.

Thus, the importance of CB lies in the fact that behavior can be understand & influenced to ensure a positive purchase decision. So, a round understanding of CB is essential to the long run success of any marketing program. In fact, it is seen as a cornerstone of the marketing concept. That's why the marketing managers interest lies exactly to ensure that his marketing strategy result in purchase of the product. MODELING BEHAVIOR The study of consumer behavior is quite complex, because of the many variable involved and their tendency to interact with and influence each other. So, the most relevant variables and their influence can be shown by a diagram, which is made up of three major sections. 1. 2. 3. External environment variable influencing behavior. Individual determinants of behavior. The consumer's decision process.

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1. EXTERNAL VARIABLE: The external environment is made up various influences as culture, subculture, social class, social group, family and personal influences. I) Culture: The study of culture encompasses all aspect of a society such as its religion knowledge, language, laws, customs, tradition, music, art, technology, work pattern, products etc. for the purpose of CB culture can be defined as the sum total of learned beliefs, value & custom that serve to guide and direct the consumer behavior of members of a particular society. Thus, the concept of culture offers many general & specific insights into the behavior of consumers. So, it is a starting point for the marketer who wishes to better understand a market. a) Formal learning: In which parent an elders teach children the proper way to behave & this behavior influence his attitude towards the products. b) Informal learning: In which learning takes place by imitating the behavior of the parents, friends or by watching TV & film actors in action. c) Technical Learning: In which instruction are given about the specify method by which certain things have to be done such as painting, dancing etc. II) Subculture: These groups posses beliefs, values and customs that set them apart from other members of the same society or culture. So, there are subculture of students, Professors, marketers, & other group. An individual may be member of more than one subculture at the same time, and based upon it consumers behavior like product purchase Patterns, Shopping behavior &: other Demographic & Psyographic characteristics may differ. Thus, it .is imperative that marketers understand who constitutes the most relevant subculture for their particular or service.

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III)

Social Class Influences: Social class is defined as the division of members of a society into a hiearchy of distinct status class, so that members of each class have relatively the same status class, so that members of each class have relatively the same status & members of all other classes have either more or status. In this complex society, in which financial wealth dictates status, one's possessions become a substitute indicator of the individual worth value, wealth & so forth. Members of specific social class differ in terms of what they consider good taste. So, social class is also an important variable in determining where a consumer shops. That's why marketers have always catered to give them an edge, whether real or imagined, over their pears.

IV)

Social Group Influences: It can be viewed as a collection of people who have a sense of relatedness resulting from some form of interaction with one another. There are different types of reference groups & each group has its own status, norms, role, socialization & power.

REFERENCE GROUPS: It refers to group that serve as trams of reference for individual in their judgment, beliefs, purpose & consumption behavior. These reference groups are highly relevant and potent influence in consumers decision-making. To attract consumers a no of promotional strategies are used & one of them is Reference group appeal. There are helpful in increasing: brand awareness & serve to reduce perceived & guide the individual value & behavior. V) Family: The family is a major influence on the consumption behavior of its members; it is also the prime target market for most product categories. Familiars can be defined as two or more person related by blood, marriage or adoption that reside together. The basic function of a family is the provision of economic & emotional support; childhood socialization & a suitable life style for its members of consumers related role of family members include influences, gatekeeper, deciders, buyers, users, maintainers & disposers. Thus, the family operates an economic unit, earning &

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spending money & the family functions directly in the role of ultimate consumption. Each family member influences the purchase decision. Family members have individual and collective consumption priorities. Thus, the marketers need to understand the nature, the family's influence on its members & the way in which the purchase decision are made by the members. The stages of a family's life cycle also influence the consumer behavior. VI) (a) Personal factor/influence: Demographic factor & life cycle stage: The first factor influence a buyer's decision is his age. There are certain physiological difference between men & women, which result in there having different consumption needs. The consumption behavior is also influenced by the specific stage of the family life cycle, which are as follows b) Single stage (Young unmarried people living away from home) Young newly married (no children) Full nest I (Youngest child under 6) Full nest II (Youngest child over 6) Empty nest I; older (married couples, no children living at home, house hold head still working) Solitary Survivor - In (Labour Force) Solitary Survivor: Retired.

Education & Occupation: Education widens a person's horizon, refines his tastes and makes his outlook more cosmopolitan. An educated person as compared to somebody less educated is more likely to consume educational facilities, books, magazines and other knowledge oriented products and services. The occupation also shapes the consumption needs. Some people require specialized equipment for the purpose of their job.

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c)

Income: Income here means the income available for spending (i.e. income after tax, provident fund and other statuary deduction). The person's attitude towards spending versus saving and his borrowings power are also important influencing factors.

d)

Personality: Personality is defined as those inner psychological characteristics that both determines and reflect how a person responses to his environmental stimuli. Personality is enduring and ensures that a persons responses are consistent over time.

e)

Life Style: Life styles are the pattern in which people live, as expressed by the manner, in which they spend money and time on various activities and interests. It is a function of opinion, social class, demographic factors and personality etc.

f)

Other Influences: This is the general category encompassing influences on consumers. The influence might be the effects of media i.e., whether consumer's behavior is more influenced by print media or the electronic media. Other influences including physical surroundings, the interpersonal setting, national events and other situational variables.

2.

INDIVIDUAL DETERMINANTS OF BEHAVIOR: These variables influences how the consumer proceeds through a decision process regarding products and services. The various individual determinants are :

a)

Consumer needs and motivation: Consumer has different needs and attitudes towards any good and services and they accept different goods or services with the expectation that they will satisfy their needs. Motives are the internal factors that energize behavior and provide guidance to direct the activated behavior. Involvement describes the personal relevance or importance that consumer perceives in a given purchase situation.

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b)

Perception: Perception can be defined as "how we see the world around us;" Perception helps to explain the phenomenon of why different individual responds definitely to the same stimulus under same conditions.

c)

Learning and Memory: Learning can be viewed as very significant for marketer as it implies that consumers can be made to learn the desired behavior through an interplay of motives stimuli, cues, responses and reinforcements. Learning refers to the skill and knowledge gained from part experience, which one tends to apply to evaluate future decisions learning and memory processes can help to understand that war frequency is needed to repeat, advertising messages, how visual symbols and other techniques can facilitate consumers learning and memory regarding products and how consumer develop habitual purchase pattern for some goods.

d)

Beliefs and Attitudes: A belief is a descriptive thought that a person has about something. The belief may be based on some real facts or it may merely be a notion or opinion that the person has. Attitude is a person's enduring facing evaluation and tendency towards a particular idea or object Attitudes strongly influence how consumers will act and react to products and services and how they will respond to communication that marketers develop to convince then to purchase their products. Thus, there were the various factors, which influence the consumer behavior.

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Types of Purchase decision Behavior:

CB changes depending upon the nature or type or buying gives rise to three types of buyer behavior: a) RR (routinized response) behavior. b) LPS (Limited problem solving) behavior. c) EPS (Extended problem solving) behavior. 1. R R behaviors: It occurs where there is low product involvement, the consumer known the brands available and criteria of choice and the stakes are not so high in terms of price, e.g. bread, pastes, soaps, soft-drinks etc. here the consumer expect a consistent quality in the product. New customers are drawn by sales promotion and product improvements. 2. LPS behavior: When the consumer knows the brands available but still needs additional information to make a correct choice. 3. EPS behavior: When new product category comes on the scene. Here, extensive information is needed on both the product category and the brand being made available.

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Major Players and Products Offered

As India is very potential market for two-wheeler. There are a number of players competing with one another. In the mean time, there are 5 major players fighting for an approx. two wheelers market of 50.18 lakh two- wheelers annually. The structure of the industry has changed during the last decade with a number of small companies being taken over by major players. But, the competition has just begun to hot up with coming up of MNCs. The major players are as follows:

1)

HERO HONDA
Hero Honda has a reputation of being the most fuel-efficient and the largest selling

Indian motorcycle. Its commitment of providing high value products at reasonable prices, led the worlds largest manufacturer of motorcycles to collaborate with the worlds largest bicycle manufacturer. It was this affinity in working cultures of HONDA Motor Company of Japan and the HERO Group, that resulted in the setting up of the HERO HONDA MOTORS LTD. Its main models are: Commuter Bikes:-- * CD 100 * Splendor * Passion * CD-Down Power Bikes:-- * Ambition 135 * CBZ * Karizma

2)

BAJAJ
It is one of the Indians top 10 companies in terms of market capitalization and among the top 5 in terms of annual turnover. Established in 1945, it was incorporated as a trading company. From 1948 till 1959, it imported scooters and three wheelers from Italy and sold them in India. It then obtained a production license in 1959 and struck a technical collaboration with PIAGGIO of Italy in 1960. Now, it offers its offerings in all segments viz. mopeds, scooters, scooterettes, motorcycles, three wheelers etc.

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Its main models are: Commutor Bikes:-- * Caliber * CT100 * 4S Champ * Boxer Power Bikes:-- * Pulsur * Pulsur-Dtsi * Discover * Eliminator

3)

LML
LML is one of the leading scooter manufacturer in the country, with a 30% market share in volume terms with its popular scooter brand Supremo. It plant to facilitate authorized dealers with a WAN(Wide area Network). Now, as the trend is changing very fastly from scooters to bikes from 2000, LML also entered into the field of bikes manufacturing. Its main models are: Commutor Bikes:-- * Energy * Adreno Power Bikes:-- * Graphtor

4.

TVS
TVS is also a leading two-wheeler company began under with the vision of the founder of the Sundaram Clayton Group the late Mr. T.S.Srinivasan to design, develop and produce an affordable moped for the Indian family. Alongside the economy two wheeler range, it has constantly worked on innovations in its motorcycle segment also. TVS continues to keep one step ahead of its time by creating Indias first % speed gears bike. Its major models are: Commutor bikes:-- * Suzuki Max 100 * Suzuki Max R * Suzuki Samurai Power Bikes:-- * Fiero * Fiero2

5.

ROYAL ENFIELD
Established in 1955, Royal Enfield Motors is now a part of the Eicher Group of companies- a Rs.10 billion conglomerate.

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Royal Enfields corporate philosophy is built around quality and unflinching loyality to the customer. It too from time to time by its innovation introduced new bikes to maintain customer loyality. Its major models are: Power Bikes:-- * Bullet STD12V * Bullet 500 * Bullet Machismo

6.

KINETIC
Kinetic engineering Ltd. Is founded in the year 1970, is the leading manufacturer and exporter of 2- wheelers. Born of the vision of late Mr. H.K. Firodia, Kinetic Engineering Ltd; has produced very useful bikes for over 2 decades. Its major models are: Commuter bikes:- * Challenger * Beamer

7.

HONDA

HONDA ,Japan is the worlds largest motorcycle manufacturer in the world. It had already a collaboration with the HERO group,India to produce bikes in India. Now, It launches its own bikes in India on its own too. Honda group is the leading motor cycle company in terms of manufacturing and latest technology. Its main model is : Power Bike:-- * Unicorn

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Customer Satisfaction
Satisfaction is a persons feelings of pleasure or disappointment resulting from comparing a products perceived performance in relation to his or her expectation As the definition makes it clear , satisfaction is a function of perceived performance and expectations. If the performance falls short of the expectations of the customer, the customer is dissatisfied. If the performance exceeds the expectations, the customer is highly satisfied or delighted. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch, when a better offer comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional affinity with the brain, not just a rational prefrence. The result is high customers loyality. In this highly competitive world customers plays a very important role. Thus, if a company wants to survive then it should look forward to the determinants of customer satisfaction. Though it is a very subjective issue that differs from individual to individual yet, identifying some basic parameters of customer satisfaction is important. Satisfaction is a persons feeling of pleasure and disappointment resulting from compairing a products perceived performance in relation to his or her expectations. It is only the customer delight that marketer aims for.

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Customer Expectations/ Wants

How do Buyers form their expectations? Their expectations are influenced by their past buying experience, friends and associates advice, and the marketers and competitors information and promises. In 2-wheeler industry dealers are the main bridge between the company and the customer. They come into the direct contact with customer. So, they play an eminent role in providing customer satisfaction. Though customer expectations is a very qualitative term and it is very difficult to measure. In this study an effort has been made to measure the customer expectations level. We can broadly divide the customer expectations into 2 parts:- Primary Expectations Secondary expectations

Primary Expectations:-The basic or primary expectations of the customer from a bike is : Price Safety level Brand Name Fuel- Efficiency Technical Collaborations Warranty terms

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Secondary Expectations:-The Secondary expectations of the consumers from bikes are: Availability of spare parts Financing schemes After- sale services Allied services Response times to complaint

Now, as secondary expectations of the customers while purchasing a power bike is a very wide and subjective terms. So, we are keeping the Secondary expectations away from the scope of our study. We are taking into a/c only the primary or basic consumers expectations.

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Chapter 4

INDUSTRY PROFILE

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INTRODUCTION
In 1855, Otto Daimler, a German inventor, presented the world with the first motorcycle. It was a far cry from the sleek model we see today. The first motorcycle was a clanking contraption that had a 4-stroke engine and was chain- driven. That year, Daimlers contemporary, Benz invented the first petrol driven Bike. Little known to many, motorcycles on Indian roads have a distinguished parentage. The Enfield bikes hails from England, where it came into prominence as a wartime vehicle. The JAWA made its way into INDIA from the Iron Curtain in Czechoslovakia. However the Yamaha is almost an exact replica of its counterpart in Japan. The short-lived Zundapp venture saw German- bred Fury bikes hit the Indian roads about 5 years ago. And almost all scooters on Indian roads trace their roots to Italian models that were popular in the 1950s. The Ind-Suzuki (later TVS-Suzuki) was the first bike to start off what is known as the 100cc revolution in the country? The Indi-Suzukis launch in the mid 80s saw a quantum leap in Indias 2 wheelers population as Hondas, Suzukis, and Yamahas roared onto the roads in their Indian avatars.

Bajaj Motors are the second largest manufacturers of scooters in the world, in addition to being the largest manufacturer of 2-wheelers in India? The Bajaj group has got models in the 3 key segments of the two-wheeler market, namely motorcycles, scooters and stepthrus. The down turn in Asian economy in 1998 has led to a shrink in the works 2-wheeler sales as Asia accounts for a major portion of sales.

PARTICIPANTS OF 2-WHEELER SEGMENT

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1. 2. 3.

Scooter Motorcycle Moped

1)

Scooters The scooter segment can be further classified in to the geared and the ungeared scooter segment. Geared scooters are generally metal bodies while the ungeared ones come in plastic bodies. The demand for the geared scooters is primarily from the middle aged group who have a family to look after. They would look out for the utility value of the vehicle. The demand for the geared scooters is price sensitive as compared to motorcycles. The demand for gearless scooters is mainly from the women, teenagers, students etc.. They are basically easy to ride and handle.

2)

Motorcycle The motorcycle is being increasingly used by the youngsters in urban areas and the rural folks as a sturdy means of personnel transportation. Bigger wheels, better road grip, high ground clearance, power, fuel efficiency and low maintenance costs are the major attractions of this segment. The motorcycle segment, too, can be further classified into Japanese and Indian motorcycle segments. The former consists of models manufactured out of Japanese technology , while the later consists of the high- powered bikes of the Rajdoot and Bullet range.

3)

Mopeds Mopeds are the entry level vehicles. The demand for the mopeds is predominately from lower to middle income families, who graduate from bicycle to motorized vehicle and also among college students.

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GROWTH OF TWO WHEELER INDUSTRY

India is the second largest manufacturer of two wheelers in the world. It stands next only to Japan and Chine in terms of the number of two wheelers produced and sold respectively. India is one of the very few countries manufacturing three wheelers in the worlds. It is the worlds largest manufacturer and seller of three wheeler. The two wheelers market has had a perceptible shift from a buyers market to a seller market with a variety of choices. Players will have to complete on various fronts viz pricing, technology product design, productivity, after sale service, marketing and distribution. In the short term, market shares of individual manufacturers are going to be sensitive to capacity, product acceptance, pricing and competitive pressures from other manufacturers. All the three segments, motor cycles, scooters and mopeds have witnessed capacity additions in the last one year and it will continue in the upcoming period as an when Honda opens a local subsidiary. Over this period, only the motorcycle segment is expected witness higher demand vis--vis supply, while the scooter and mopeds supply will outstrip demand. The Indian two-wheelers industry can be broadly classified into three major segments scooters, motorcycles and mopeds. The domestic two wheeler sales of 3.778mm in FY2000 constitutes scooter sales of 33.4%(39% inFY99), motorcycle 47.7%(41% inFY99) and moped 17.6% (20% in FY99). The motorcycle segment has gradually increased its presence from 27% in FY92 to 47.7% in FY2000 mainly at the expenses of the scooter and, to some extent, the moped segment Now 78.5% in FY03). The demand for scooter is on the wane and witnessed a 10% yoy fall in FY 2000. Than 40% YOY fall in 03, With the gradual shift in demand, sales in the scooter segment is expected to fall further, while on the other side motorcycle and scooterette segments will 34

record continued growth in the future. This will translate into a demand fall of around 20% in scooter while sales of scooterettes will rise by around 30% inFY01. With the ongoing expansion from Bajaj Auto Ltd., LML and TVS Suzuki, the capacity in the sector will increase from 2mm in FY 2000 to 2.15mm by FY01, leading to a surplus situation. We expect the motorcycle segment to continue to grow at an average of 20% in FY05. This will increase demand for motorcycles from 1.796mmin FY2000 to 2.15mm inFY01. The supply of motorcycles as per the present trend will increase from 2.08mm inFY2000 to 2.38mm in FY01. The segment will be witnessing several new entrants in FY05, mainly in the four stroke sub-segment like Suzuki, Dokuti etc. This will lead to an over supply situation and increase the competition in the Japanese segment. We expect the demand for mopeds to grow at a modest rate of 5% in FY01. The demand for mopeds will increase from 0.726mm in FY2000 to 0.7623mn in FY01. The moped production capacity is expected in increase from 1.17mn in FY2000 to 1.2mn in FY01. As incomes grow and people feel the need to own a private means of transport, sales of two wheelers will rise. Penetration is expected to increase to approximately to more than 25% by 2005 end.

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Chapter 5

Research methodology

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RESEARCH METHODOLOGY
The term research methodology comprises of all research activities. It includes various type of research such as marketing analysis, consumer research and advertisement research. This research study will be an analytical research study, with help of analytical research, consumer behaviour of motor bike users can be analysed of facts already available. This research include: Problem identification Scope of study Objective of study Research design Sampling plan Method of data collection Sources of data collection Limitations 1. Problem Identification: Marketer should be aware of the perception of customer about his product so that he can gain maximum out of it. He should be aware of who is decision maker as well as ultimate bayer of product. 2. Scope of study: The scope of this study is kept within the control of individual researcher. A200 motor bike customer are interviewed regarding the buying behaviour of motor cycle. (100+100 = YNR + KNL). 3. Research Design: The method adopted for research is Experience Survey i.e. survey of people who have practical experience of motorbike in Karnal, YNR in such a research design the

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decision regarding what, where, whom, how much, by what means are concerned. It is the blue print for the research undertaken. Measurement and Scaling Technique for Research: In this research the rating scale technique is used. Rating scale involves qualitative description of a limited no of aspects of thing or of traits of a person. In rating scale we judge properties of objects without reference with other similar object. Those ratings may be in such as form as: Like deslike above average average- below average Or Excellent good- average- below average poor The ranking can be done by graphic rating scale as: Like very much Like some what Natural Dislike some what Dislike very much So for research of consumer behaviour of youth male for motorcycle can be analyze by knowing the rating they are given to their own or other motor bike in market. 5. Sampling Plan: It includes sample unit, sample size, sample procedure. Sample Unit: Sample unit is target population of Karnal, who can afford to buy motorcycle or own motorcycle. Sample size: Research is done on 200 respondents of Karnal and YNR. 6. Method of data collection: Observation method Questionnaire method Data collection through journal, magazines Data collection through websites of various Co's related,& bike expert companies. 7. Sources of data collection: Primary sources: Sample survey of target population

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Secondary sources: Company pamphlets, different journal such as A+M, Business magazine as business world, business India, industry manual and web sides. 8. Limitations of Study: Resources for collection of data are less. Time period for data collection is short Difficult to get response from customer. Experience in field of research is difficult job. Shortage of time and money.

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Chapter 6

DATA ANALYSIS

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NO. OF TWO WHEELERS OWNED No. of Two Wheelers

One Two Three More than three Table 1 %age 65 23 9 3

One Two Three More than 3

This table and chart exhibits the no. of two wheeler owned by the respondents. It is clear from the above presentation that most of the consumer i.e. 65% have only one two wheeler and very few i.e. 12% have 3 or more than 3 vehicle.

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TYPES OF VEHICLES

Type of Vehicles
Motor Cycle Scooter Scooty Moped Table 2

%age Respondents 29% 46% 18% 7%

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Motor Cycle Scooter Scooty Moped

This table and chart exhibits the no. of two wheeler owned by the respondents. It is clear from the above presentation that most of the consumer i.e. 65% have only one two wheeler and very few i.e. 12% have 3 or more than 3 vehicle.

42

AWARENESS OF TWO WHEELER BRAND AVAILABLE IN THE MARKET %age of Respondents 43% 49% 8%

Aware
Fully Aware Less Aware Unware Table 3

Fully Aw are Less Aw are Unaw are

These table and chart shows the awareness of two wheeler brand available in the market. In exhibit that 49% of consumer are less aware about two wheelers brand and 43% consumers are fully aware. While 8% consumer are unaware about the brands of two wheelers available in the market.

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SWITCHABILITYOF CONSUMER Switchability

Yes No Table 4 %age Respondents 17% 83%

YES NO

This table and chart shows the switch ability of consumers regarding two wheeler. It shows that 83% of consumer are brand loyal and only 17% consumer goes for another option.

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SATISFACTION LEVEL OF CUSTOMER Satisfaction Level

Fully Satisfied Moderate satisfied Less Satisfied Net Satisfied Table 5 %age Respondents 79% 7% 5% 9%

Fully Satisfied Moderate Satisfied Less Satisfied Not Satisfied

This table and chart exhibits the satisfaction level of consumer regarding their vehicle. It shows that 79% customers are fully satisfy with their vehicle and 9% of consumers are not satisfy with their vehicle.

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ROLE PLAYED BY ADVERTISEMENT: Role

Present Vital Details Creates Awareness Misleading Anyother Table 6 %age Respondents 38% 57% 4% 1%

60% 50% 40% 30% 20% 10% 0% Present Vital Details Creates Aw areness Misleading Anyother

This table and graph shows the role played by advertisement. It shows that 57% customers replied that it creates awareness for them and 38% replied that it presents important details about the products while 4% said that advertisement are misleading.

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FEATURES OF TWO WHEELER IN ADVERTISEMENT WHICH ATTRACTS ATTENTION MORE: Rank 1 5 2 4 3 6

More
Mileage After Sale Service Attractive Colour Excellent Pick up Easy Starting Any Other Table 7
600% 500% 400% 300% 200% 100% 0% Mileage After Sale Attractive Service colour

Excellent pickup

Easy starting

Anyother

This table and graph shows the exhibits the features of two wheeler in advertisement attracts their attention more. First rank is given to mileage followed by attractive colours is starting excellent pickup etc. and last rank is given to any other features like comfort driving. Luggage space etc.

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INFLUENCE OF ADVERTISEMENT ON PURCHASE DECISION

Decision
Yes No Table 8

%age Respondents 46% 54%

46% 54%

Yes No

This table and chart shows the influence on purchase decision. It clearly predicts that 54% customers replied that advertisement has no influence on purchase decision while 46% replied that it influence purchase decision.

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AGE GROUP OF CONSUMERS %age Respondents 42% 47% 9% 2%

Age Group
18-25 26-40 41-55 56 & above Table 9

42%

47%

18-25 26-40 41-55 56& above

9%

This table and chart shows the age of group of customers It shows that 47% consumers are lie in the age group of 26 to 40 years followed by 42% in age group of 18-25 years and less percentage i.e. 2% lie in the age group of 56 years and above.

CUSTOMERS OCCUPATION

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Occupation
Students Business Person Service Person Professional Agriculturist Any other

%age Respondents 38% 19% 23% 11% 7% 2%

Table 10

7% 11%

2%

38%

Students Business Person Service Person Professional Agricultursit Any Other

23%

19%

This table and chart exhibits the customers occupation. It shows that 38% customers are students followed by service person i.e. 23% and only 2% belongs to other e.g. housewives etc.

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SEX OF CUSTOMERS Sex

Male Female Table 11 %age Respondents 67% 33%

33%

Male Fem ale

67%

This table and chart shows the sex of the customers. It shows that 67% are male while 33% are female customers.

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INCOME GROUP OF CUSTOMER

%age Respondents 21% 37% 30% 12%

Income (yearly) in Rs.

Below 60000 60001 100000 100001 150000 150001 & Above

Table 12

This table exhibits the income group of customer. It shows that 37% consumers are of the income group of Rs. 60001 to Rs. 100000 followed by income group Rs. 100001 to Rs. 150000 and veryless belong to the income group of Rs. 150001 and above.

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Chapter 7

FINDINGS

53

FINDINGS
The findings of the study are presented under the following four headings. 1) 2) 3) 4) Pre-Purchase Analysis Factors influencing brand preferences Brand wise ownership of the sample respondents and Post-Purchase analysis.

1)

Pre-Purchase Analysis:
Purchasing is a dynamic science and also the most important function of every family. A home maker must devote time, attention and energy to it. It is influenced by certain considerations which lead the consumers to select a particular brand of products. Besides, the availability of wide varieties of brands aggravates and complicates the act of purchasing. As purchasing is complicated involving many decisions at every step and as each family differs widely in this, it is felt necessary to study the purchasing habits of consumers in selecting the brands of Bikes in the study area. It is studied under the headings : (a) (b) (c) Sources of information Purpose of purchasing and Persons influencing purchase decision.

a)

Sources of Information:
In this survey an attempt is made to find the sources of information on which most

of the people rely for their purchase decision.

54

Chapter 8

Data interpretation

55

Table 1: Sources of Information for Selecting a Bike Sources Advertisement Sales People Relatives Friends Total Source: Primary data
Number of Respondents

Percentage 13 5 23 59 100

26 10 46 118 200

From the above table it could be inferred that out of the 200 respondents, 118 (59%) obtained the information from their friends. Forty six respondents (23%) got the information from relatives whereas twenty six respondents (13%) got the information from advertisements. It is interesting to note that only ten respondents (5%) got the information from sales people.

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b)

Reasons for buying:

Now-a-days Bikes are considered to be a matter of necessity. However, some

people consider it as a matter of prestige. There are people who may buy a Bike for the purpose of availing themselves of petrol allowance or cheap credit facilities. Here an attempt is made to analyse the reasons for buying a Bike.

Table 2: Reasons for Buying a Bike Category Comfort and convenience Status symbol Loan Facilities For Availing Petrol Allowances Total Source: Primary Data
Table 2 shows that out of the 200 respondents, 146 respondents (73%) have purchased a Bike for the purpose of comfort and convenience, while 30 respondents (15%) have purchased a Bike to use it as a status symbol. Fourteen respondents (7%) have purchased Bikes for the purpose of availing themselves to loan facilities. Only 10% respondents (5%) have purchased a Bike for the purpose of availing themselves to petrol allowance.

Number Respondents 146 30 14 10 200

of Percentage 73 15 7 5 100

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c)

Person influencing purchase decision:

Decision making is an act of projecting ones own mind upon an opinion or course

of action. Decision making is a conscious and human process, involving both individual and social phenomena based upon factual and value premises, which concludes, with a choice of one behavioural activity from among one or more alternatives with the intention of moving towards some desired state of affairs. Hence an attempt is made to find out the people who influence the purchase decision of a Bike.

Table 3: Decision Makers Regarding Purchase of a Bike Category Yourself Spouse Children Collectively Total Source: Primary data. Number Respondents 20 16 20 144 200 of Percentage 10 8 10 72 100

Table 3 shows that out of the 200 respondents, a vast majority of them (72%) took the decision collectively while buying a Bike, whereas 20 respondents (10%) took the purchase decision by themselves. Another 20 respondents (10%) were influenced by his/ her children while taking the purchase decision. Sixteen respondents (8%) were influenced bytheir spouse while buying a Bike.

II.

FACTORS INFLUENCING BRAND PREFERENCE:

The various factors influencing purchase of a Bike is analysed by adopting Garrets

ranking technique. The respondents were asked to assign the rank for the various factors namely, price, safety, brand name, fuel efficiency, technical collaboration, capacity of the vehicle and warranty terms.

Table 4: Factors Influencing the Purchase of A Bike

58

Factor/Rank

Number of Respondents I 28 23 33 78 12 II 22 16 61 30 34 22 15 III 13 23 36 31 49 37 11 IV 15 69 19 26 27 23 21 V 64 38 20 20 23 15 20 VI 32 28 16 6 19 53 46 VII 26 3 15 9 36 42 69

Total Respondents

Price Safety Brand Name Fuel Efficiency Technical

200 200 200 200 200 200 200

Collaboration Capacity of 8 the vehicle Warranty terms 18

Source: Primary data Garrets Formula: 100(Rii 0.5) Percent Position = Nj

Where Rij = Rank given for the ith variable by the jth respondents. Nj = Number of variable ranked by the jth respondent. By using this formula, the result obtained was compared with Garretts ranking table and the scores were given. The total scores of each item were added and ranks were given according to its total value.

Table 5 : Garretts Ranking Table S.N. Factors Score Average Rank

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1. Price 2. Safety 3. Brand Name 4. Fuel Efficiency 5. Technical Collaboration 6. Capacity of the vehicle 7. Warranty Terms Source: Primary data.

9539 10470 11336 12393 9750 8706 8013

Score 47.70 52.35 56.68 61.97 48.75 43.53 40.07

V III II I IV VI VII

It could be inferred from the table 5 that fuel efficiency is the most important factor influencing the purchase of a Bike followed by brand name, safety, price and the like.

III.

BRAND WISE OWNERSHIP:

Table 6 shows the brand wise classification of sample respondents:

Table 6: Brand Wise Classification of Sample Respondents Brand Name Hero Honda TVS Suzuki Honda Enfield Bajaj Total Number of Respondents 55 20 40 35 50 200

Source: Primary data. Table 6 clearly shows that Hero Honda is the most popular brand of Bike (52%) followed by Bajaj brand (14%) and TVS brand (10%) and the like.

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IV.

POST PURCHASE ANALYSIS:

Consumer decisions do not end with the act of purchase but continue as the

consumer uses the product and evaluates his or her purchase decision. Consumers tend to judge their experience against their expectations when performing a post-purchase evaluation. A long as positive reinforcement takes place, the cvonsumers will tend to continue to purchase the same brand and recommend the same brand to others as a natural corollary. Such behaviour at the post-purchase level is often termed brand allegiance. This brand allegiance is analysed. Through Consumer satisfaction and recommendation to others.

a)

CUSTOMER SATISFACTION:
Table 7 shows the degree of satisfaction of the sample respondents with regard to

performance of Bike.

Table 7: Satisfaction with their Bikes Factor Highly satisfied Satisfied Dissatisfied Total Source: Primary data. No. of Respondents 106 94 0 200 Percentage 53 47 0 100

Table 7 shows that out of the 200 respondents, 106 respondents (53%) are highly satisfied with their Bikes. Ninety four respondents (47%) are satisfied with their Bikes.

b)

RECOMMENDING TO OTHERS:
It has been already established in this survey that the respondents seek opinion from

the existing users while purchasing Bikes. It is clear (from the Table 1) that friends and relatives occupy an important place among the various sources of information available to the respondents. Only a customer who is fully satisfied with the product, will recommend

61

it to other prospective buyers. So, an attempt is made in this survey to find the percentage of respondents who recommend their brand to other prospective buyers.

Table : 8: Recommending the Brand to Others Factors Yes No Total Source: Primary data. No. of Respondents 200 0 200 Percentage 100 0 100

Table 8 shows that all the 200 respondents (100%) recommend the brand, which they own to others who are willing to purchase.

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Chapter9

Suggestions

63

SUGGESTIONS

On the basis of the findings, the following suggestions are made: 1) 2) 3) With a view to improve the fuel efficiency of the Bike, the manufacturers should spend a considerable amount on research and development. It is suggested that the manufacturers should make all efforts to control cost reduction. It is suggested that the brand image and brand loyalty could be boosted by selling quality Bikes at a reasonable price to suit the needs of middle income group.

64

Chapter 10

Conclusion

65

CONCLUSION Most of the respondents of KARNAL & YAMUNANAGAR cities are aware of many popular brands of Bikes. The customers give more importance to fuel efficiency than to other factors. They believe that the brand name tells them something about product quality, utility, technology and the like. The consumers prefer to purchase the Bikes which offer high fuel efficiency, good quality, technology, durability and reasonable price.

66

QUESTIONNAIRE

I am doing a survey and this survey is being conducted in lieu of the partial fulfillment of dissertation for the degree of M.B.A. and means no business. In this regard I wish to avail your kind co-operation. Tick( ) whichever is relevant. Q.1 How many two-wheelers you have at present? i) iii) Q.2 One Three ii) iv) Two More than Three

What type of Vehicle you have? i) iii) Motor Cycle Scooty ii) iv) Scooter Moped

Q.3

Which brand/ model of Two Wheeler you Owned? i) iii) v) Hero Honda TVS ENFIELD ii) iv) vi) Bajaj LML HONDA

Q.4

How did you come to know about your brand/model? i) iii) Through Friend Publicity ii) iv) Advertisement Any Other

67

Q.5

Awareness about the two wheeler brand/model available in market? i) Fully Aware ii) Less Aware iii) Unaware Reasons for preferring a particular brand/ model? i) iii) v) Price Resale value Look ii) iv) vi) Mileage Advertisement Any other

Q.6

Q.7

From where you bought you two-wheeler? i) iii) Showroom Previous owner ii) iv) Canteen Any other

Q.8

What are the media of Advertisement? i) iii) v) T.V. News Paper Sign Boards ii) iv) vi) Radio Magazine Any other

Q.9

Which media of advertisement is playing a vital role in increasing the awareness about Two Wheelers? i) iii) v) T.V. Newspaper Sign Boards ii) iv) vi) Radio Magazine Any other

Q.10

If any brand/ company offers any attractive scheme, will you go for that company/ brand. i) Yes ii) No

Q.11

Are you satisfied with your Two-Wheeler? i) iii) Fully Satisfied Less Satisfied ii) iv) Moderate Satisfied Not Satisfied

Q.12

In your opinion, what role advertisement is playing? i) ii) iii) iv) Present vital/ Important Details Creates Awareness Misleading Any Other

68

69

PERSONAL PROFILE
a) b) c) Name ___________________________________________________ Place ___________________________________________________ Age i) iii) d) 18-25 41-55 ii) iv) 26-40 56 and above

Occupation i) iii) v) Student Professional Agriculturist ii) iv) vi) Business Person Service Person Any other

e)

Sex i) Male ii) Female

f)

Income (Yearly Family income in Rs.) i) ii) iii) iv) Below 60000 60001 to 100000 100001 to 150000 150001 and above

70

Likert Scaling for Consumers

1. What type of Vehicle do you have? Scooters Motor-cycles Mopeds Scooty 2. 1 2 3 4 5

Which brand/ model of Two wheeler do youown? 1 2 3 Hero Honda Bajaj TVS LML ENFIELD HONDA Awareness about the Two-wheeler brand/model available. 1 2 Full Aware Less Aware Unaware Reasons for preferring a particular brand/ model? 1 Price Mileage Advertisement Look Any other From where you bought your Two-wheeler? 2 3 3 4 4 4 5 5 5

3.

4.

5.

6.

1 2 3 4 5 Showroom Canteen Previous Owner Any other Which media of advertisement is playing a vital role in increasing the awareness of Two-wheelers? TV Radio Newspaper Magazines 1 2 3 4 5 71

Sign Board Any other

BIBLIOGRAPHY
BOOKS:Philip Kottler S.A. Chunawalla C.R. Kothari S.A. Sherlerkar : : : : Marketing Management Essentials of Marketing Research Research Methodology Marketing Management

72

Leon. G. Schiffman James F. Engel & Roger D.Blackwell

: :

Leslie Lazar Kaunk-Consumer Behaviour Consumer Behaviour

DALIES: -- *Business Standard *Economic Times *Business Line MAGAZINES:-- *Business World *Business Standard *Indian Journal Of Marketing PORTALS:-- *www.siamindia.com *www.indiamarket.com *www.automeet.com *www.indiatimes.com *www.google.com *www.autoindia.com *www.overdrive.com *www.herohonda.com *www.bajajauto.com *www.enfieldindia.com *www.lmlindia.com *www.tvsindia.com

73

REVIEW OF EXISTING LITERATURE Various surveys and researches have been carried out regarding what a consumer wants from a bike. Some of them, which I will be taking into account are Parmod Pathak, Saumya Singh, does some of the work that had been already done in this regard and their work was published in Pradigm, Vol.VIII No. 1 January-June 2004. Another major contribution had been done byDubey J and Patel R and their work was published Management Vol. 42 in Indian No.11 (November ) pp. 66,70 Laudon D and Della Bitta Albert do another major contribution. Parmod Pathak, Saumya Singh reviewed about " What Does A consumer want from a Bike " dubey J and Patel R reviewed about "Role of Advertisement : in buying decision of bikes " Auto India and Overdrive India web sites provides us a lot of information about the various features provided by various power bikes. www.thehindubusinessline.com (how the 150cc mode 1 stake up) www.flonnet.com (Bike with milege and power) (150cc plus category) Motor Cycle Trader Feb. 03 (Power bike changing sunario)

74

DATA INTERPRETATION 65% have only one two wheeler and very few i.e. 12% have two or more than two vehicles. 46% of customer have scooter, 29% have motor cycle & 7% have moped etc. 30% consumer have Hero Honda has favourite brand, 19% Bajaj, 20% Suzuki, 17% LML & only 3% other brands has Enfield, Yezdi etc. 49% of consumer are less aware about two wheelers brand and 43% are fully aware, 8% are unaware. 21% of consumer are preffering any brand due to price, 23% due to mileage, 19% resale, 17% advertisement & 9% looks 67% consumer buy their vehicle from showroom, 18% from previous owner, 6% from canteen & 9% any other. The media of advertisement of more attraction are 61% T.V. 12% Radio,. 7% Newspaper, 9% any other. The media of advertisement of more attraction are 61% T.V. 12% Radio, 7% Newspaper, 9% magazine 11% any other. 83% of customer are brand loyal and other 17% go for another brand. 79% customer are fully satisfied, 7% modrate satisfied, 5% less satisfied and 9% not satisfied. 46% of respondents say yes due to influence of advertisement and 54% say no. Customer of 18-25 years have 42% of share in two wheeler market, 26-40 years have 47%, 41-51 have 9% and rest 56 years above.

75

 38% customers are students, 19% business persons, 23% service persons, 11% professionals, 7% agriculturist and 2% anyother. 67% customer are male, 33% are female. 21% customer are below income group of 60000, 37% are from 60001 to 100000, 30% are from 100000 to 150000 and 12% above income groups.

76