A STUDY ON CUSTOMER PREFERANCE TOWARDS

HEAVY COMMERECIAL VEHICLE IN EICHER

ABSTARCT:
The main objective of this study is to determine customer perception when they would like
to purchasing a heavy commercial vehicle with various factors like mileage, resale value,
sale after service, performance, comfortness, discounts, new technology, down payment,
availability of spare parts and to know which of the above factors compliment more to
increase the sales of the company as well as growth of the company. The duration of the
study was between June and July of 2018. The study is based on primary data collected from
respondents using well structured questionnaire. The buyers of heavy commercial vehicle in
Bangalore city were included for this study. Random sampling method is adopted 50-55
respondents for this study.
The result revealed that the consumer preference has a positive impact on the factors that
build confidence in increasing companies sales, it has been found that the factors like
loading ability, cargo weight, pay load, performance, safety, resale value, service ability
plays a very important role preference of the heavy commercial vehicle. Customers will
purchase heavy commercial vehicle because of high safety, good mileage, saving cost,
sleeper cabin, and standard features are fog lamp and GPS tracing and music system.
Customers are willing to purchase Eicher heavy commercial vehicle because of unique
features in Eicher which is not provided by other commercial vehicles companies like
Ashoka Leyland Tata Bharat Benz and research says customers more satisfied in Eicher
commercial vehicles.

INTRODUCTION:
Customer preference are defined has individual tastes as measured by the utility of the
various goods. They allow the consumers to rank these goods depending upon the quantum
of utility derived by the action of using up a resource. It is to be noted that consumers will
purchase the vehicles based on their income and prices. Customers will purchase the vehicle
on the basis their likes and dislikes. Consumer preference is the foundation of consumer
demand. The consumer reaction will be based on changes in price and their willingness to
pay and accordingly the profitability depends upon the understanding of consumer
behaviour.
Customer preference on a heavy commercial vehicle would be based on the various factors
that are decided by their profitability as per their requirements. They considered various
factors while purchasing a heavy commercial vehicle those factors are resale value, mileage,
performance, discounts, latest technology and strong relationship management, after sales
service might be the key reason for the customer preference of the heavy commercial
vehicle.
STATEMENT OF PROBLEM:
The consumer preference of various products is decided by their own features, it is very much
essential Eicher company to know what the features are is required to influencing consumer
buying Behaviour. The automobile industry is facing very competitive sector as variety of new
vehicles is launched every day. The automobile manufacturing industries need to determine
the buying behaviour of their market to sustain in the competition. Here analysing the various
factors which influence the customers are determined along with service level need to be
Delivered. Therefore, this study has been conducted to find the customer preference towards
Heavy commercial vehicles and to know the respondent’s problems towards Low and medium
duty commercial vehicles. (R&S, April 2016)

A&P, (2016) “A study on customer preference towards heavy commercial vehicle in Ashok
Leyland”, 2016

OBJECTIVE OF THE PROJECT:

 The various factors will be considered by the consumers while purchasing heavy
commercial vehicle
 The possible improvements in features of heavy commercial vehicle
 To determine which is the most attractive attributes for purchasing heavy commercial
vehicle
 To study association between demographic variables (such as income level, gender,
education level, and family size) and different attributes of heavy commercial vehicle
 To know the consumer decision making process.

LIMITATIONS OF STUDY:
 Small sample size (55)
 Study is limited in Bangalore city only

RESEARCH METHODOLOGY:

Research methodology helps to deals with a range of ways to make the most out of solving
research problems. Research methodology is a way to consistently solve the research
problem. This research follows survey research methodology based on present research in
related area. For this study questionnaires were constructed to study the consumer
preference towards heavy commercial vehicle in Eicher.
REVIEW OF LITERATURE:
Fareena sultan

Consumer preferences appear in technological innovations. Studies consumer response to

different levels of automation over time. Looks at preferences for existing and transitional
technologies when future ones are expected. Focuses on technological consumer goods that
are expected to take overtime.

Mandeep Kaur and Sandhu

He tried to find out the most important features a customer might consider while buying a
new car, the respondents identified that safety and comfort were the most important
features of the passenger car followed by luxury.

E. Thangasamy & Dr. Gautam Patikar:

The consumers aim at complete maximum consumer profit, be it durables or non-durable

goods while making such purchases to satisfy their wants, for this reason, the marketers
continually rely on research studies about the changing consumer behaviour to position their
product planning and development approach to meet the requirements efficiently.

Rakesh Kumar

The term consumer behaviour is defined as the behaviour that consumer display in searching
for, buying, using, analysing and disposing of product, services and ideas that they except will
satisfy their needs. Consumer behaviour is the process whereby, individuals decide whether,
what, when, how, and from whom to purchase goods and services. Due to the increase in
income level and easy finance being provided the financial institutes, the four wheelers sales
have been tremendously increased.

D.Arthi &K. Malar Mathi

Customer playing the three important roles of user, payer and buyer differ in their aim of
buying a product, some customer will purchase for their need, while some purchase for the
want of status, Status seeking consumers are those who give much importance to the non-
functional factors of the product such as attractiveness, brand, social comparison, prestige
than the functional factors.

Menon Balakrishnan & Dr. Jagathy Raj (May 2012)

New development and acceptance for studying consumer preferences of car owners
highlighted on various consumers buying behaviour factors of passenger car owners in the
state of Kerala. Their findings indicate that customer focus is a major differentiator in the
passenger car industry
DR.R. Ranganathan (2018)

In convertible industry after sales services is very important. As the joint dealer, while
purchasing a vehicle he must look at all the features of the vehicle and they will see the unique
features of the vehicle like mileage of the vehicle, resale value of the vehicle.

Dr. vishal S Rana (June 2015)

Companies today are becoming customer essential & highly focusing on satisfying their
customers as they realized that in present competition, satisfying and delighting the
customers is very hard. Because of the rapid changes in needs, expectations and lifestyles of
customers, most of the companies are in confusion.

DATA ANALYSIS AND INTERPRETATION:

In the current scenario, preference among the customer for selecting a heavy commercial
vehicle is different from one person to another person. And on the basis of different consumer
behaviour. so, to understand preference of different customer various factors such as mileage
of the vehicle, performance of the vehicle and Resale value of the vehicle and they used in
the recent technology in the vehicle which is not create in the competitor’s commercial
vehicle. Because as we mentioned above while customer is buying a commercial vehicle he
thinks carefully about various factors that are decided by the customers as per the needs.
There are various factors studied in case of purchasing of purchasing of a heavy commercial
vehicle. The factors such as service quality, Delivery time and Customization strong
Relationship management, Accessibility comfort Availability of vehicles, Latest technology
and Resale value might be the key reasons for the customer preference of the heavy
commercial vehicle.

PERCENTAGES ANALYSIS OF DEMOGRAPHIC VARIABLES

VARIABLES CATEGORY PERCENTAGE
Education 10th 8.7%
12th 0.7%
Graduation 0.5%
Post-graduation 0.1%
Gender Male 8.0%
Female 2.0%
Age 10-20 1.06%
20-30 8.51%
30-40 0.215%
40-60 0.215%
Residence Rural 7.0%
Urban 3.0%
Above table shows that out of 80 respondents in the demographic factors like Education,
Income level, Age, Gender, Residence. In education Level most of the peoples were
educated under post-Graduation with the percentage of 8.7%, 0.7%, 0.5%, 0.1%. The age of
the respondents who has knowledge about Heavy commercial Vehicle most of the peoples
are come under the age of 20-30 with the percentage of 8.51% Because The age of 20-30
considered as a youths Because They are more interested in Advance technology of
premium features of the Heavy commercial vehicle (HMD) Out of respondents most of the
male peoples are aware about the commercial vehicle And when I am conducting research
most of the members are live in Rural areas Rather than Urban Areas and Overall
Demographic variables tells the situation or consumer preference towards Heavy
commercial vehicle (HMD).

RELATIONSHIP BETWEEN EDUCATION QUALIFICATION AND BRAND OF THE VEHICLE AND

NATURE OF RESIDENCE:

When I asked about their Education towards consumers, some peoples have done their
education in a Basic, some of Were studied Till fifth And some of the were didn’t studied
Anything and Also they chosen good commercial vehicle From the Word of mouth and Their
own driving Experience And Advertising or By Newspaper So it’s all tell about commercial
vehicle gave a best result by their own Experience And Here as I observed Most of the
members were came from Rural Background and they choose only particular Brand on the
Basis of Their Mileage of the Vehicle And performance of the vehicle and Resale value of the
vehicle As we know Consumer preference will More impact on Brand Because of the way
they Providing Services Towards consumers, Service of the vehicle overall tells that There is
a significant coefficient of correlation Between the Education qualification and Brand of the
vehicle It tells that consumer are more strong while choosing Brand of the commercial
Vehicle As I met consumer some consumers are living In urban areas and some consumers
are living in Rural areas, Most of the consumers who were live in rural areas they are little
unknown about the Brand when compared to who are living in urban areas So there is little
significant coefficient of correlation Between the Nature of Residence And Brand of the
Vehicle.

ANALYSIS FOR BRAND OF THE VEHICLE

Particulars Percentage
Eicher 43.5%
Ashoka Leyland 28.3%
Tata 17.4%
Bhatart Benz 10.9%

From the above table it is inferred that out of 80 respondents, 43.5% Purchased
vehicles from Eicher, and 28.3% respondents purchased vehicle from Ashoka Leyland, 17.4%
respondents and 10.9% respondents purchased a vehicle from Bharat Benz in Bangalore city
and most of the customers were purchased a vehicle in Bangalore and Here most of the
customers purchased a Low medium duty vehicle From the Eicher Rather than the other
Brands.

ANALYSIS FOR TECHNOLOGY

PARTICULARS PERCENTAGE
Un Required 5.5%
Neither Required nor Required 5.2%
Required 33.8%
Highly Required 55.4%

From the above table that out of 80 respondents, The actual question New technology is
required, or unrequired, or Highly required for High Medium Duty commercial vehicle out of
that respondents 55.4% respondents said is Highly required, and 33.8% respondents said is
required, 5.2% respondents is neither required nor Required and 5.5% us required overall
says most of the members were technology is required for High medium duty commercial
vehicle.
RELATIONSHIP BETWEEN ATTRIBUTES AND PREFERANCE IN BRAND OF THE COMMERECIAL
VEHICLE:

VARIABLES EICHER ASHOKA TATA BHARAT BENZ

LEYLAND
Mileage of the Good Good Good Good
vehicle
Performance of Average Good Average Good
the vehicle
Serviceability Average Good Good Good
of the vehicle
Resale value Good Good Good Good
for the vehicle
Availability of Costly & Good Low cost & Good Good
the Spare Parts Good
Technology of Good Good Average Good
the vehicle
Loading Ability Depends on pay Depends on pay Depends on pay Depends on pay
of the vehicle load load load load
Down payment Access able Access able Access able Access able
for the vehicle
Safety of the Good Good Average Good
vehicle

Above table shows that outcome of relationship between various factors or attributes of
the High medium duty commercial vehicle like mileage of the vehicle, performance, Resale
value, Service Availability of the vehicle, Technology of the vehicle, Down payment of the
vehicle, safety of the vehicle are the important reason for preferring the High medium duty
commercial vehicle, so variable brand gives in various different factors and other brand
vehicle influence the factors to the dependent and independent Brands. and Based on the
above analysis it is inferred that there is a significant relationship between these
independent factors and the dependent variable brand of the vehicle.

FINDINGS, RECOMMENDATION AND CONCLUSION

The study reveals or says that most of respondents in Bangalore city who purchased a High
medium Duty commercial vehicle have their education up to Tenth of the age Between 30-
40 who owns the High medium Duty commercial vehicle Majority falls under the age of 60 in
that most of the male respondents were aware about the commercial vehicle and having
their own vehicle, Females don’t have idea about the commercial vehicle But females know
the Basics of commercial vehicle like carrying of goods from one place to another place and I
came to know from the consumers their income from the commercial vehicle is actually
good because they are getting lot of benefits from commercial vehicle Especially from Eicher
commercial vehicle like mileage of the vehicle, performance, Resale value, Service
Availability of the vehicle, Technology of the vehicle, Down payment of the vehicle, overall
customers are happy from purchasing of Eicher low medium duty commercial vehicle.
On the basis of research and data analysis and interpretations, The required suggestions
from the personnel experience towards consumer feedback first and foremost in Eicher
company want to provide a good service rather than implementation of new technology
Because Most of the customers will not satisfied providing of serviceability By Eicher It will
helps to increase the sales of the company as well as growth of the company, and the sales
person should come to know about the complete detail about the product, like Usage of the
vehicle, Safety of the vehicle, Performance of the vehicle and The sales person should
confident about his product and Then only He can sell the product to the consumers.
Eicher doing or working on Giving a more and more benefits to the consumers like Mileage
of the vehicle, and performance of the vehicle, safety of the vehicle, But Eicher Want to
improve in Serviceability And availability of the spare parts of the vehicle from these factors
of Eicher High medium Duty commercial vehicle customers can easily satisfied and It helps
to increase the sale of the company as well as growth of the company.