A. Janani Selvabala, PhD scholar.

Email jsofty_1987@rediff.com

PURCHASE BEHAVIOUR OF SMALL CAR BUYERS IN

VIRUDHUNAGAR DISTRICT
INTRODUCTION
The purpose of this study is to gain a better understanding of factors that influence buyers buying
behavior in cars. Specifically, we considered a number of internal factors that influence buyer
behavior including perception, motivation and learning. How a buyer's attitude, which is a lasting
evaluation of a person, object, or issue, can affect what they buy also examined.
After liberalization and globalization the car industry in India has undergone Phenomena change.
The small car industry in India is fast adapting to the changing time. The small car in India is
increasing by leaps and bounds. In the beginning, Tata and Fiat are the main payers in the small car
market, later many foreign/global brands entered into the automobile market like Suzuki, Hyundai,
Daewoo, Fort etc.
Increase in number of car buyers and heavy usage is credited to increasing per capita income and
several car model availability .Traditionally, economists and market researchers were inquisitive
about identifying the factors that may have an effect on consumers automobile purchase of buying
behaviors, and have developed different models to estimate market share. A consumers buying
preference behavior is influenced by cultural, social, personal and psychological factors. Most of
these factors are uncontrollable and beyond the hands of marketers but they have to be considered
while trying to understand the complex behavior of the consumers. In this study, the researcher
tried to emphasizes the importance of demographic variable and its impact on the small car buyer
preference by considering consumers characteristics and gender as factor that will have an effect
on the vehicle preference.
Reviewed other factors that influence buyer purchasing decisions and buying behavior including
personal, social, and situational issues. The personal influences on consumers are important

determinants of their needs and wants. Such factors as age, income, family status, and chosen
lifestyle are strongly related to the types of products people buy and the specific brands they select.
Examined the stages of the consumer decision-making process for buying a car: problem
recognition, information search, evaluation of alternatives between different brands of cars,
product choice and post purchase evaluation with respect to after sales service, customer
relationship, and resale value of the car.
Also addressed the impact of the amount of effort expended and of perceived risk; factors
associated with relative importance and perceived consequences of the purchase, from the buyer's
perspective.

LITERATURE REVIEW
Understanding the automotive purchase process is crucial for automotive manufacturers and
dealers. Huge amount of information available to consumers require manufacturers and dealers to
understand consumer decision-making and the modes of influence which can affect consumer new
car purchasing.
Kotler et al. describes the customer buying behaviour as the buying behaviour of the final
customers who purchase goods and services for personal consumption. A company get great
advantages by understanding how customers respond to marketing stimuli that include the four P's:
product, price, place and promotion.
Other stimuli in the customer's environment such as economic, technological, political and cultural
also affect all customers' buying decision. All these stimuli enter the buyer's black box where they,
through the buyer decision process, are turned into a set of buyer responses.
A consumer behavior model, Wheel of Consumer Analysis, was created by J. Paul Peter and Jerry
C. Olson (1994) as a basis for explaining car buying behavior.
According to the American Marketing Association, buyer behavior is defined as the dynamic
interaction of affect and cognition, behavior, and environmental events by which human beings
conduct the exchange aspects of their lives.

Marketers can analyze buyer behavior situation according to the three elements using the Wheel of
buyer Analysis the environment, behavior, and affect/cognition . However, because these three
factors interact and influence each other, no one factor can be isolated from the other.
Parenthood changes the area of responsibility whereby parents are expected to use their power in
the interests of their infant, not themselves .
The children are used in literature and films to symbolise a lessening in materialistic tendencies of
parents, and the authors proceed to show that there are differences between the materialism levels
of parents (lower) and non-parents (higher).
Many researches have been done on the consumer buying process and associated behaviour but
the study done by Valerie S. Folkes (from The University of Southern California) actually helped
to discover the new meaning of the buying behaviour.
He concluded, It is the interaction of the situation and the individual that leads to behavior. The
study of consumer behavior is justified as a separate domain of inquiry because when situational
cues lead people to perceive themselves as customers, they then interpret the world differently than
when they do not perceive themselves as customers, and that influences their behavior.
A study conducted by Evan Hirsh, Steve Hedlund & Mark Schweiger in 2001 about the perception
of the brands, which concludes that in the absence of a strong brand, price is the only plausible
way to affect near-term demand. Hence, curtailing incentives in an effort to build brand is not
likely an economically viable option.
The research conducted on the buying behaviour of cars and what role does the brand play in it by
Sankar Radhakrishnan in June 2001 was a great help for conducting survey on the consumer
behaviour for buying cars with relation to the perception of brands.
A thought provoking point thrown up by the survey was the view that advertising does not have
any impact on the choice of a particular brand by the prospective buyer. Buying a new car often set
in motion by emotional need-based factors. The study found that the more rational reasons for
buying a car are frequently sparked off by the psychological benefits that owning a car bring.

Emotions also work throughout the purchase process, right down to the choice of the brand. The
study found that both rational and emotional factors trigger the decision to buy a car and also
operate throughout the purchase process.
The study drives home a point that branding is here to stay. This is especially true of the category
such as cars, where it is often difficult to distinguish between the competing models on purely
technical or functional parameters. The brand thus becomes the most meaningful differentiator and
a safe choice. While the functional parameters do trigger the decision to purchase a car and also
operate through the purchase process.
According to Zineldin (2000) long-term relationships are built on ethical and moral understanding
which is crucial for mutal benefits and a rewarding relationship. Furthermore, the importance of
business ethics is determined by consumers interest in a just and good society.
Making the decision regarding an automobile in not at all different .It vibrates on the same
platform and requires similar decisional inputs before the consumer arrives at the final word.

STATEMENT OF THE PROBLEM

Purchase behavior and buying are inter-related. A supportive purchase behavior is very crucial for
an enhanced buying activity of a buyer. Thus facilitate the buyers to purchase the small car. The
involvement of the purchase behavior is most vital factor for encourage the buying the small car.
Some unexpected factors lead problems in purchasing the small cars areBuyer decision processes are the decision making processes undertaken by consumers in
regard to a potential market transaction before, during, and after the purchase of a product or
service.
Consumers have to make different kinds of decisions everyday according to their different
needs. Some of the decisions are playing critical roles in consumers' daily life, for example,
purchasing a new home or purchasing a car, whereas some times the decisions are made on a
virtually automatic basis. There are not a lot published research articles available on the decisionframing process. Puto, C. proposed a conceptual model of the buying decision framing process.

This model focuses on the information search phase which includes two reference points:
an initial which is internal to the company-expectations and buying objectives, and a final one that
takes into account the sales message and justification/reward of the offer.
These two stages lead to the final choice. Burt and Babin developed a model, see
Figure...This model is in line with previous one but gives an emphasis on an evaluation phase in
the process.
This model includes five stages: problem recognition, information search, evaluation of
alternatives, purchase decisions, and outcomes.
Locational Marketing mix is used to reinforce the advantages of the car carefully reflecting its core
values and positioning. It confirms how and why it will be of interest to various segments of the
car-buying public.

OBJECTIVES OF THE STUDY

This study entitled Purchase behavior of small car buyers in Virudhunagar district. The present
study was undertaken with the following objectives.
1 To analyze the demographic profile of small car buyers in Virudhunagar district.
2

To examine the awareness and attitude of small car buyers in Virudhunagar district

3
4

towards the various brands of small cars.

To identify the factors influencing the purchase of small cars.
To ascertain the problems relating to the purchase of small cars by the buyers in

Virudhunagar district.
To offer the suitable suggestions for effective the purchase of small car by the buyers in
Virudhunagar district.

SCOPE OF THE STUDY

This study is to be undertaken in Virudhunagar district. This study covers only the buyers of small
car in Virudhunagar district. This study is developed by the view point of Small-car buyers and
not in the producers point of view.

RESEARCH METHODOLOGY

The present study is going to be based on both primary and secondary data. The primary
data has been planned to be collected with the help of sample survey of buyers of small car in the
study area.
First hand dada are collected from the field through an interview schedule and also through
observation. A number of discussions would be made with knowledgeable persons such as expert
buyers for design the interview schedule.

The interview schedule drafted at first instance would be circulated among a few research
scholars and field experts for a critical review with regard to wording, format and sequence. It will
be redrafted in the light of their comments.
The study would also widely use the secondary data. The secondary data for the study shall
be collected from the documents of small car buyers and relevant persons. Besides, the data is to
be collected from standard text books of related topic, business dailies and financial magazines as
available online.