Indian Streams Research Journal

Available online at www.isrj.net

Volume 2, Issue. 7, Aug 2012

ISSN:-2230-7850
ORIGINAL ARTICLE

A Critical Analysis of Consumer buying behavior

of two wheelers (observations pertinent to
Ahmednagar city, Maharashtra)
Faiz Ahmed Shaikh
Research Student, Institute of Management Studies, Career development & Research,
Ahmednagar (M.S)
Abstract:
India is the second largest producer of two wheelers vehicle in the world. In the last two
years, the Indian two wheeler industry has seen spectacular growth as majority of
Indians especially youngsters prefer these as most convenient means of transport. The
objective of two wheeler industry is to sustain market share through satisfying customer
needs and expectations. The manufacturers therefore, have to understand the real needs,
wants, belief and attitude of customer towards the product and after sales service. A
strong understanding of consumer buying behavior is required for sustenance and
growth of the business. To get a first hand input I have taken response of customers
(actual & potential two wheeler buyers) in the questionnaire. The analysis of data was
done using chi-square test. I am hopeful the present study will positively contribute to
two wheeler industry to understand the attributes of the product that customer expect
from the company.
Keywords: Two wheeler industry, Customer need, Market share, Consumer preference.
INTRODUCTION
The two wheeler industry in India is one of the largest in the world and one of the fastest growing globally.
India manufacture over 18 million vehicles ( including four wheeled vehicle ) every year. [1] It is the
world's second largest manufacturer of motorcycles, there are eight key players in the Indian market that
produced 13.8 million units in the year 2010-11.[2] At present the dominant products of the automobile
industry are two wheelers with a market share of over 75% . The industry has attained a turnover of more
than USD 35 billion & provides direct and indirect employment to over 13 million people.[3].
The Indian two wheeler industry has come a long way since its humble beginning in 1948 when
Bajaj Auto started importing and selling Vespa scooters in India. Since then, the customer preferences have
changed in favor of motorcycles and gearless scooters that score higher on technology, fuel economy and
aesthetic appeal, at the expense of metal bodied geared scooters and mopeds. [4]. These changes in
customer preference have had an impact on the fortunes of the lead manufacturers. The erstwhile leaders
have either perished or have significantly lost market share, whereas new leaders have emerged. The two
wheeler industry consists of three segments viz., scooters, motorcycles and mopeds. With an expanding
market and entry of new players over the last few years, the Indian two wheeler industry is now approaching
a stage of maturity. Previously, there were only a handful of two wheeler models available in the country.
Currently, India is the second largest producer of two wheelers in the world. It stands next only to China and
Japan in terms of the number of two wheelers produced and the sales respectively. There are many two
wheeler manufacturers in India. The major players in the two wheeler industry are Hero Motor Corp., Bajaj
Auto Ltd., TVS Motor Company Ltd., The Honda motorcycle and scooter India Pvt. Ltd., Suzuki
motorcycle India Pvt. Ltd., India Yamaha motor Pvt. Ltd., Ectrotherm India Ltd.(Yo bikes) accounting for
Please cite this Article as : Faiz Ahmed Shaikh, A Critical Analysis of Consumer buying behavior... : Indian Streams
Research Journal (Aug. ; 2012)

A Critical Analysis of Consumer buying behavior...

over 93% of the sales in the domestic two wheeler market. It is noteworthy that motor bike segment share is
just below 80% of the total two wheeler market in India which is dominated by Hero Honda with a market
share of 59% . Scooter segment market share is about 18% which is led again by Honda motorcycle and
scooter India Pvt. Ltd., with a market share of 43%. [5].
The level of technology change in the motor vehicle industry has been high but, the rate of change
in technology has been medium. Consumers are very important for the survival of the motor vehicle
manufacturing industry. This research paper gives insight of the two wheeler consumer preference in
Ahmednagar (Maharashtra) including the different brands, competition and the trends in the domestic
sales. The paper also shows the oligopolistic nature of the Indian two wheeler industry and the propensity of
the major players to increase their share.
It is extremely important to analyze the state of competition to check whether a few firms may
increase their dominance and also the implications of after sales services provided by the two wheeler firms
to the consumers.[12]
RATIONALE OF THE STUDY
In India the growing economic well being is reflected in rising per capita GDP. This makes two wheelers
more affordable. The Indian two wheeler industry is destined to grow rapidly and therefore, there is always
the propensity of the key manufacturers aspiring to increase their share. The two wheeler industry in India is
one of the largest in the world and also one of the fastest growing globally. With an expanding market and
entry of new players over the last few years, the Industry is now approaching the stage of maturity. Every
year a large variety of two wheelers are introduced into the market. In today's competitive environment,
many National and Multinational two wheeler industries have gained remarkably by taking notice of
consumer preferences, innovative marketing strategies and sales promotion. In two wheeler marketing,
relationship with consumer is very important and their cannot be good relationship unless we understand
customer preferences well. In this regard a questionnaire war prepared so as to assess the consumer needs.
The ever increasing number of two wheeler models will compel the industry to take notice of consumer
buying behavior. This will enable industry to fulfill the customer's desire by giving him exactly what he
wants in terms of brand popularity, price range, fuel efficiency, after sales service, model and colour of the
vehicle.
In the present study I have made an effort to understand the fine aspects of consumer buying
behavior. I strongly believe if two wheeler industries understand and cater to the demands of consumer it
will develop into a beneficial preposition for both the two wheeler industry as well as the consumers.
BJECTIVE OF THE STUDY
This study focus on identifying the most preferred two wheeler manufacturing companies, the most sellable
brands /models, customer needs/ inclination and the market demand of the two wheelers. The information
on aforesaid factors will help manufacturer determine its manufacturing and marketing strategies for
sustaining and growth of the business.
REVIEW OF LITERATURE
In the review of literature I found that many researchers have contributed to the theme 'Consumer buying
behavior of two wheeler' in India. Yet, their remain some lacuna on the part of manufacturer pertinent to the
regional consumer preferences that need to be taken notice of.
(Anuj kumar Kanojia, 2011) in his article explored the impact of consumer preference on sales of
two wheeler in urban areas of India. However, the study also showed that urban and rural regions have
different preferences when it comes to selecting the vehicle model.
(Hemant C R, 2011) emphasized the need of continuous market research. He suggested that there
is a genuine need of continuous sales analysis so as to sustain the market share.
(Rishikesha T Krishnan and Ganesh N Prabhu, 1999) suggested in their study entitled 'Creating
successful new products: Challenges for Indian industry' that success of business in India will be
determined by the marketing strategies targeting the rising urban middle class.
(Virupaxi Bagodi and Biswajit Mahanty, 2008) highlighted customer satisfaction as corner stone
of sustainable growth in two wheeler industry.
(K Narsaimhan, 2003) this paper reviews the current marketing practices in the two wheeler
industry and their impact on consumer.
(Joshi V and Little I, 1996) this paper studied the evolution of the competition structure of the two
Indian Streams Research Journal Volume 2 Issue 7 Aug 2012

A Critical Analysis of Consumer buying behavior...

wheeler industry in India and stress consumer preference as an important factor in planning sales
strategies.
RESEARCH METHODOLOGY
The data was collected in the first quarter of the year 2012. In the present study I have used the primary data.
A group of sixty respondents (Customers) from different areas of Ahmednagar were selected. The group
consisted of potential two wheeler buyers of different sex, age groups and financial status. A questionnaire
with relevant multiple attributes was designed to generate the primary data. The respondents were asked to
register their response in multiple options as per the nature of question. The data was tabulated as per
attributes for the interpretation and analysis.
SAMPLE DESIGN
Non probability convenient sampling method is used. The potential two wheeler customers willing to
respond to the questionnaire were identified. Sixty customers out of two hundred approached volunteered
for the response. So the sample size is sixty and the area of work is Ahmednagar city.
RESULT ANALYSIS
The data has been presented in tabulated format. I have used chi-square test for the analysis of the data.

A) Analysis on the basis of proportion.

1. Two wheeler leading companies.
Sr.No
Company name
1
Hero
2
Honda
3
Yamaha
4
Bajaj
5
Suzuki
6
TVS
7
Yo bike

Respondent
22
10
6
6
5
8
3

Percentage
36.66
16.66
10.00
10.00
8.33
13.35
5.00

Inference: Hero and Honda together have a 53.32% market share & are the 2 wheeler market
leaders. The remaining 5 companies together share 46.68% sales.

2. Preferred Price range of vehicle.

Sr.No
Price (in thousands)
1
30-40
2
41-50
3
51-60
4
61-70
5
Above 70

Respondent
4
29
20
5
2

Percentage
6.66
48.33
33.33
8.33
3.33

Inference: 48.33% of consumer prefer to buy a two wheeler in price range of Rs.41,000-50,000.

3. Non-Gear / Gear two wheeler Preferred.

Sr. No
Gears
Respondent
1
Non gear
23
2
4
24
3
5
9
4
6
2
5
Auto. gear
2

Indian Streams Research Journal Volume 2 Issue 7 Aug 2012

Percentage
38.33
40.00
15.00
3.33
3.33

A Critical Analysis of Consumer buying behavior...

Inference: The Non-Gear two wheeler is preferred by 38.33% buyers, 40.00% buyers preferred
the four gear vehicle. This observation is further clarified in the chi square test
analysis which supports the hypothesis that two wheeler non gear/ gear models sales
depend on gender of consumer. Non-gear two wheeler is presumably preferred by
female buyers.

4. Range of Fuel efficiency of two wheelers.

Sr. No
Fuel efficiency of vehicle
1
25-35Kmpl
2
35-45Kmpl
3
45-55Kmpl
4
55-65Kmpl
5
Above 65Kmpl

Respondent
3
11
22
18
6

Percentage
5.00
18.33
36.66
30.00
10.00

Inference:36.66% respondents have two wheelers with fuel efficiency in the range of 45-55kmpl.

5. Expected frequency of servicing / maintenance.

Sr. No
1
2
3
4
5

Period of servicing(Month)
2
3
4
5
6

Respondent
19
15
20
1
5

Percentage
31.66
25.00
33.33
1.66
8.33

Inference: 33.33% consumers prefer to have servicing of vehicle done once in four months.

6. Consumers current two wheeler status.

Sr. No
1
2
3
4
5

How old is vehicle (in years)

1-5
5-10
10-15
15-20
Above 20

Respondent
26
12
9
10
3

Percentage
43.33
20.00
15.00
16.66
5.00

Inference: 43.33% of consumers have two wheeler that is 1 to 5 years old. This can be co related
with the chi square test analysis which supports the hypothesis that two wheeler
purchase depend on age group. Thus , most of the vehicles purchased in last five years
belong to young consumers.
7. Colour preference of the vehicle.

Sr. No
color
Respondent
Percentage
1
Black
16
26.66
2
Grey
2
3.33
3
White
6
10.00
4
Purple
1
1.66
5
Red
21
35.00
6
Golden
1
1.66
7
Blue
7
11.66
8
Silver
6
10.00
Inference: Red 35.00% & Black 26.66% colour two wheelers are most preferred by the
consumers.
Indian Streams Research Journal Volume 2 Issue 7 Aug 2012

A Critical Analysis of Consumer buying behavior...

8. Most preferred two wheeler manufacturers.

8. Most preferred two wheeler manufacturers.

Sr. No
vehicle
Respondent
1
Hero
15
2
Honda
11
3
Yamaha
7
4
Bajaj
7
5
Suzuki
8
6
TVS
9
7
Yo bike
3
8
Other
0
Inference: 25.00% consumers prefer to buy two wheeler of Hero motor corp.

Percentage
25.00
18.33
11.66
11.66
13.33
15.00
5.00
0.00

B)Analysis on the basis of Chi Square test.

Table 1: Age group.

VEHICLE/
HERO
AGE
HONDA/
Oij-Eij
18-25
12(8.81)
26-40
4(5.75)
ABOVE 40 7(8.43)
23

HONDA
/ Oij-Eij

TVS/ Oij-Eij OTHERS/

Oij-Eij

TOTAL/
Oij-Eij

5(3.83)
3(2.5)
2(3.66)
10

1(2.68)
5(1.75)
1(2.56)
7

23
15
22
60(75.88)

5(7.66)
3(5)
12(7.33)
20

Ho: Age Group independent on vehicle

H1:Age Group dependent on vehicle
2=(
Oij/Eij)-N
2=75.88-60 =15.88
Calculated 2=15.88 where Table 2=12.529
As cal 2>Tab 2 hence reject Ho and accept H1.
Inference: age group is dependent on vehicle i.e. there is significant relationship between two wheeler
model and age group.

Table 2: Gender.
VEHICLE/
HERO
GENDER
HONDA
Oij-Eij
MALE
13(10.5)
FEMALE
8(10.5)
21(21)

HONDA
Oij-Eij

TVS
Oij-Eij

OTHERS
Oij-Eij

TOTAL
Oij-Eij

2(5.5)
9(5.5)
11(11)

2(3.5)
5(3.5)
7(7)

13(10.5)
8(10.5)
21(21)

30(34.04)
30(34.08)
60(68.08)

Ho: vehicle independent on gender

H1: vehicle dependent on gender
2=(
Oij/Eij)-N
2=68.08-60 =8.08
Calculated 2=8.08 where Table 2=7.815
As cal 2>Tab 2 hence reject Ho and accpt H1.
Inference: Two wheeler purchase is dependent on gender of buyer.

Indian Streams Research Journal Volume 2 Issue 7 Aug 2012

A Critical Analysis of Consumer buying behavior...

Table 3: Annul income

VEHICLE/
HERO
INCOME
HONDA
GROUP.
Oij-Eij
<1 LAC
9(7.66)
1-2 LAC
5(6.9)
2-4 LAC
6(6.51)
ABOVE 4
3(1.91)
LAC
23(22.98)

HONDA
Oij-Eij

TVS
Oij-Eij

OTHERS
Oij-Eij

TOTAL
Oij-Eij

3(3.33)
2(3)
4(2.83)
1(0.83)

2(2.33)
3(2.1)
2(1.98)
0(0.58)

6(6.66)
8(6)
5(5.6)
1(1.66)

20(20.38)
18(19.89)
17(17.6)
5(6.51)

10(9.99)

7(6.99)

20(19.92)

60(64.38)

Ho: vehicle independent on annual income

H1: vehicle dependent on annual income
2=(
Oij/Eij)-N
2=64.38-60 =4.38
Calculated 2=4.38 where Table 2=16.919
As cal 2>Tab 2 hence accept Ho.
Inference: Two wheeler vehicle is independent of annual income of consumer.
CONCLUISION
The analysis of data on the basis of proportion and chi square test indicates that Hero Motor Corp. and
Honda Motorcycles and Scooters India Pvt. Ltd. are the most preferred manufacturers and therefore the
market leaders in the two wheeler segment. The sales are strongly correlated with age group of the
consumers. Interestingly the purchase of two wheeler is independent of the annual income of buyer, this
could perhaps be due to the easy loan available and customer friendly marketing strategies adopted by the
dealers. A significant proportion of the population, 48.33% customers prefer to buy a two wheeler in the
range of Rs. 41,000-50,000/- having fuel efficiency of 45-55 Kmpl. The non gear model is preferred by
38.33% and with gear (4 gears) model is preferred by 40.00% consumers. The data is further correlated with
the gender of consumer. Presumably females and aged males prefer non gear vehicle where as male in
general prefer vehicle with gear. As for maintenance of vehicle is concerned the general concenses among
consumers indicate they prefer servicing the vehicle once in four months. Further, 43.33% consumers
happen to have vehicle that is 1 to 5 years old indicating old two wheeler vehicles are rapidly being
replaced. Finally the colour of vehicle seems to play an important role in consumer preference. The
observations indicate a strong affinity for the red colour (35.00%) followed by black (26.66%) and blue
(11.66%) colour of the vehicle.
The research findings indicate the various characteristics of two wheeler consumer behavior in the
Ahmednagar city, Maharashtra. These observations if taken into consideration by the manufacturers will
positively influence the sales as it would cater to the needs of the potential two wheeler consumers.
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1.
http:// www.ima
ginemore.com/automobileindustryindia.html
2.
Automotive Component Manufacturers Association of India (ACMA). 1998. Automotive
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www.fadaweb.com/two_wheeler_industry.html
4.
http://www.researchandmarkets.com/reports/1054677/indian_two_wheeler_industry.pdf
5.
Anuj Kumar kanojia (2011), Analyzing the state of competition in Indian two wheeler industry. A
report submitted to Competition Commission of India, New Delhi
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Anuj Kumar kanojia (2011), Analyzing the state of competition in Indian two wheeler industry. A
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Hemant C R (2011) A project report on customer satisfaction of two wheelers industry with special
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Rishikesha T. Krishnan & Ganesh N. Prabhu,(1999) Creating Successful New Products:

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A Critical Analysis of Consumer buying behavior...

Challenges for Indian Industry http://www.iimb.ernet.in/~rishi/epwcsnp.pdf

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Handbook of Business Strategy Volume: 7 Issue: 1

Indian Streams Research Journal Volume 2 Issue 7 Aug 2012