I n t e r n a t i o n a l J o u r n a l o f M a n a g e m e n t F o c u s | 31

A STUDY OF CONSUMER PERCEPTION & BEHAVIOUR TOWARDS PASSENGER

CARS IN TIRUR
K.P. NAJEEMUDEEN,
Research Scholar - Ph.D, Karpagam University, Coimbatore, TN
Dr. N. PANCHANATHAM,
Professor & Head, Department of Business Administration, Annamalai University, Chidambaram, TN

ABSTRACT

It is rightly said Yesterdays luxuries are todays necessities.

Cars though considered as luxury once, now occupies an important
part in day to day life and has become a necessity. A car satisfies the
need of owners for transportation. They also provide psychological
satisfaction from the pride of possession. The post globalization era
has witnessed the footprints of global automobile giants marching
towards India to tap Indias highly potential passenger car market. As
a result customers are flooded with a wide variety of options to choose
from. Understanding how consumers make purchase decisions can
help marketing managers in several ways. For example, if a manager
knows through research that fuel mileage is the most important
attribute for a certain target market, the manufacturer can redesign
the product to meet that criterion. In such a way the understanding of
consumer behavior and customer psychology helps the marketer to
identify customer needs and plan his production and marketing
activities accordingly. This study tends to analyse the impact of
customer perception and behavior in the purchase decision of
passenger cars.
INTRODUCTION
Over the past two decades, the face of the world consumer has truly changed. The era of
liberalization, privatization and globalization (LPG) has brought changes in society and lifestyle
of people. Goods are more available, information about these goods is more open and accessible,
and the ability to buy these goods from any nook and corner of the earth has become possible.
With the market being flooded with many me-too products the competition has become intense.
Consumers around the world vary tremendously in age, income, education level and tastes.
How these diverse consumers relate with each other elements of the world around them impacts
their choices among the incredible variety of goods and services available to them in the market.
As a result, the need to understand consumers and consumer behaviour has become a hot topic
around the globe, from boardroom and executive suites to universities and hospitals now than
ever before.

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Consumer behaviour as a discipline focuses on how individuals make decisions to spend

their available resources (time, money, effort) on consumption related items. That includes what,
why, when, where, how often they buy it, how they evaluate it after the purchase and the impact
of such evaluation on future purchase. The study of consumer behaviour also tends to analyse a
fascinating array of factors that influence purchase decisions and product use. But it is seldom
easy and sometimes impossible to understand or predict human behaviour, particularly when it
comes to decision making. It is a difficult and complicated task, filled with uncertainties, risks
and surprises because each individual is a unique product of heredity, environment and
experience. Accurate predictions can yield vast as well as fast fortunes and inaccurate
predictions can result in the loss of millions of rupees. For this reason, the buyers mind has been
termed as a black box, which should be opened by the seller to be a successful marketer.
In this digital era car is no more a luxury product. It has become a day to day necessity.
Now a day, people have started buying cars for business purpose, personal use or for showing
their prestige and social status. A proper understanding of the likes and dislikes of the car users
will help the car marketers to plan and design their product in such a way that it provides
maximum level of satisfaction to it end users. This study tends to flash some light upon the
factors that influence the buying decision of the customers, particularly in case of passenger cars.
For the purpose of this study, the personal variables like age, income, education, occupation etc.
of the customer have been collected and the influence of these personal variables on the
consumers perception, their buying behaviour and the decision process have been analyzed.

STATEMENT OF THE PROBLEM

The emergence of globalization and liberalization has paved way for stiff competition
among the variety of car industries which are focusing attention in capturing the Indian market.
Cars though considered as luxury once, now occupies an important part in day to day life and
has become a necessity. Tirur, the town which is selected for the study is one of the main
growing markets for passenger cars. At present, the demand for the passenger cars is on the
increase in the country. To be a successful marketer it is absolutely essential to read the minds
and perceptions of the prospective buyers of cars. The present study attempts to analyze the
variables that affect the buyer behaviour today.

REVIEW OF LITERATURE
Brown et al (2007) analyzed the consumers attitude towards European, Japanese and US
cars. The country of origin plays a significant role in the consumers behaviour. The brand name,
lower price and distributors reputation have a significant impact on the sale of passengers car.
Guiles (2008) identified that fuel economy and lower maintenance cost have its impact on
the consumers behaviour towards the passenger car.
Baumgartner and Jolibert (2008) revealed that the car produced in West Germany
received the highest rating on firm attitudes namely acceleration, safety, styling and
workmanship among the Americans. At the same time, the Japanese car ranked highest on fuel
economy and reliability.
Dornoff et al (2008) identified the market segment is the primary determinant of the
consumer behaviour in the passenger car market. The level of expectation and perception on
various attributes of car differ from consumers in one segment to another.
Dr. S. Subadra, Dr. K.M Murugesan and Dr. R. Ganapathi (2010) identified that driving
comfort and fuel economy are the most important features of a passenger car followed by
availability of spare parts and price of the car.
Dr. H.S Adithya (2013) identified that value for money and satisfaction are the two
important factors for purchase of passenger cars. Brand name followed by popularity is the most
frequent basis of selection of a brand. Advertisements are the main sources of knowledge about
latest brands and trends.

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However, the present study differs from the above, in that the buyer behaviour in Tirur
town in Malappuram district of Kerala state is sought to be analyzed here. The scope and the
area of the study are unique in nature.

OBJECTIVES OF THE STUDY

The purpose of this research is to study the behaviour of consumers, perception of
product attributes and level of satisfaction with respect to passenger cars. The following are the
objectives:
To understand the proportion of car owners in Tirur.
The market share of different brands of passenger cars in Tirur.
To identify and analyze the factors influencing the purchase of cars.

RESEARCH METHODOLOGY
A sample of 201 consumers was selected for the present study around Tirur town which
is in Malappuram district of Kerala. A structured questionnaire was designed and administered
among the respondents to give a fair representation to various attributes of the consumers. The
secondary data has been collected from various published articles, journals, magazines and also
through the internet. For the purpose of evaluation, the percentages and weighted score test
have been used for meaningful analysis and clear presentation.
Table 1: Market Share of Passenger Car Companies in Tirur
Company Name
Maruti Suzuki
Hyundai
Toyota
Chevrolet
Tata
Others

No. of Car Owners

94
12
10
5
4
12

From the above table we can understand that Maruti Suzuki is the brand of car with the
highest number of market share in Tirur. 94 respondents among the 137 car owners in Tirur are
having a car from Maruti Suzuki. 12 respondents are having Hyundai cars while 10 respondents
own Toyota cars. 5 and 4 number of people responded to be having Chevrolet and Tata cars
respectively while 12 people are having other brands like BMW, Fiat, Audi etc.
Table 2: Customers response on their purpose of buying a car
Purpose
Personal Use
Professional Use
Rent a car / Taxi
Status Symbol

No. of Persons
141
15
8
7

From the above table it can be understood that most of the people are buying a car for
their personal use only as almost 141 people have responded in favour of it while only 15
respondents are using their cars for professional use. While 8 respondents expressed their
intention for using their car for Rent a car or Taxi purpose, about 7 respondents are buying a car
for prestige or as a status symbol. This indicates that, 82% of the people are buying a car for their
personal use. Only 9% people are buying a car for professional use. While 5% of customers are
buying car for Rent a car or Taxi purpose, 4% people are using their car as a status symbol.

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Table 3: Customers response about their Fuel choice

Fuel Type
Petrol
Diesel
LPG

No. of Persons
82
87
2

As per the above table, 82 respondents have opted for petrol as the fuel for their car
while 87 respondents favoured diesel. Only 2 people are interested in LPG driven cars. It can be
understood that 51% of the customers prefer Diesel as their fuel while 48% are in favour of
Petrol. Just 1% of respondents favour LPG.
Table 4: Customers response about the Mode of Purchase they prefer
Purchase Mode

No. of Persons

Ready Cash

53

Finance / Bank Loan

118

The above table reveals that most of the customers prefer to avail bank loan or other
finance facilities for buying a car with 118 respondents in favour of Finance / Bank loan. Only 53
respondents are willing to purchase with Ready Cash. This denotes that about 69% of customers
prefer to purchase cars using Bank Loans and Finance facilities while only 31% can afford to
purchase cars paying Ready Cash.
Table 5: Customers response regarding the features influencing their buying decision

Total
Features

Space
Style
Resale Value
Interior
Comfort
Mileage
Engine Power

94
74
91
51
107
99
63

48
32
43
32
53
49
21

24
46
24
28
20
28
44

20
29
29
18
12
17
31

8
16
9
33
4
5
32

4
2
3
18
3
2
6

3
2
2
21
2
1
4

1379
1309
1365
1097
1434
1415
1220

Rank

3
5
4
7
1
2
6

14.96
14.20
14.81
11.90
15.55
15.35
13.23

From the above table we can understand that Driving cum Travel comfort is the prime
factor that the customers are looking for while selecting their car. Mileage is the 2nd important
factor while Interior space is in the 3rd position. Resale value is in the 4th rank. Style and design
of the car also influences their selection with 5th rank while engine power and interior design
shares 6th and 7th positions respectively.

I n t e r n a t i o n a l J o u r n a l o f M a n a g e m e n t F o c u s | 35
Table 6: Customers response regarding the other factors influencing their buying decisions
Feature
Price
Brand Name
Public Opinion
Style & Design
Technology
Service Facility
Discounts &
Offers
Advertisement
Spare Parts
availability
Salesman's
Personality &
Skills

10

98
93
106
90
43
62

48
47
52
42
27
20

27
23
19
23
22
43

16
19
11
28
31
30

4
7
3
8
34
31

1
3
2
2
19
5

1
3
2
3
19
4

1
2
1
2
2
3

3
1
2
1
1
2

2
3
3
2
3
1

Total
WS
1985
1951
2004
1939
1653
1796

45

26

24

21

30

23

27

1638

10

73

31

45

28

16

1888

51

32

27

17

32

17

20

1703

45

28

25

21

33

22

24

1660

Rank
2
3
1
4
9
6

From the above table we can learn that Public opinion or suggestions from referral group
is the prime factor to influence the customers purchase decision of cars. Price is the 2nd factor
while Brand name is in the 3rd position. Style and design of the car, advertisements, availability
of service and spare parts facilities nearby also have an impact on their purchase decision.
Salesmans personality and communication also have a major role while the engine technology
of the car is not much bothered about. But it is evident that unless all the other factors are
favourable, discounts and offers cannot induce customers to buy a particular model of car.

FINDINGS
The major findings from this study are:
The fact that about 68% of the population in Tirur owns a car indicates that Tirur is a very good
market for passenger cars.
Maruti Suzuki is the market leader in Tirur. It is far ahead of its nearest competitor Hyundai
with almost 8 fold of the market share of the latter.
Customers prefer petrol and diesel cars alike. There is not much demand for LPG driven
vehicles in Tirur.
Driving cum Travel comfort is the prime factor that the customers are looking for while
selecting their car. Mileage, Interior Space and Resale value are the other influencing
features.
Public opinion or suggestions from referral group is the prime factor that influences the
customers purchase decision of cars. Price, Brand name, Style and design of the car,
advertisements, availability of service and spare parts facilities nearby are also important.
Salesmans personality and communication skills also influence the customers. But without a
good public review no any offer or cash discount can help the car marketer to boost the sale.

RECOMMENDATIONS
To ensure that a product finds a place in the minds of consumers, the manufacturers should
position their products through sales promotional activities and advertisement through all
available media.

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April June 2014

Majority of the respondents reported that they formed their expectations through the
statement made by friends and relatives and therefore it would be beneficial if the extent of
influence of such groups is studied. It may be found through closely analysing the social
interactions of the consumers.
Experts believe that the main driver of the Indian car market is the availability of car finance
on easy installments at reasonable interest rates. Most of the respondents have reported that
the easy availability of finance induces them to buy cars. So the car dealers should have tieup arrangements with the authorized financial institutions to boost sales.
The respondents perceive that driving comfort and fuel economy are the most important
features of the passenger car followed by availability of spare parts and price of the car.
Hence the manufacturers should design the product giving maximum weightage to these
factors.
Car owners feel that the hospitality shown by the dealers is more during their visits to the
places of dealers before and immediately after the purchase. But after some time they face a
problem with their dealers regarding after sales service. Therefore, it is suggested that the
services rendered or to be rendered should be properly explained, friendly approach and
reliability in service are to be further improved.

CONCLUSIONS
Consumer Behaviour consists of all human behaviour that goes in making purchase
decisions. An understanding of the consumer behaviour enables a marketer to take marketing
decisions which are compatible with its consumer needs. There are four major classes of
consumer behaviour determinants and expectations, namely, cultural, socio-economic, personal
and psychological. The growth in the population of India and the increasing number of middle
class consumers has attracted the attention of car manufacturers and marketers. Realizing the
importance of passenger car industry in the present economic situation, the researcher has
analyzed the perceptions and behaviour of consumers that have a pivotal role to play in their
purchasing decision of passenger cars. Also certain product attributes are identified as having a
great influence over the purchase decision of the customers and satisfying them. The
manufacturers and marketers who study the behaviour of consumers and cater to their needs
will be successful. It may be concluded that consumer behaviour has a greater role to play in the
LPG era of economic activities for which a necessary survey and research should be conducted in
an efficient manner.

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