A STUDY ON PRODUCT CUSTOMER PRODUCT PREFERENCE TOWARDS HERO HONDA BIKES PURCHASE IN ARVINTH AUTO AGENCY AT TUTICORIN BY S.

UMA (Reg.No:95410631052) Of Dr. SIVANTHI ADITANAR COLLEGE OF ENGINEERING (Affiliated to Anna University of Technology, Tirunelveli) TIRUCHENDUR-628215

A PROJECT REPORT Submitted to the DEPARTMENT OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION ANNA UNIVERSITY Tirunelveli September-2011

BONAFIDE CERTIFICATE

Certified that this project report titled A STUDY ON CUSTOMER PRODUCT PREFERENCE TOWARDS HERO HONDA BIKES PURCHASE IN ARVINTH AUTO AGENCY AT TUTICORIN. is the bonafide work of Miss.S.UMA (Registration Number: 95410631052) who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not from part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Supervisor

Head of the Department

Submitted to the Project and Viva Examination held on

Internal Examiner

External Examiner

DECLARATION

I hereby declare that this project A STUDY ON CUSTOMER PRODUCT PREFERENCE TOWARDS HERO HONDA BIKES PURCHASE IN ARVINTH AUTO AGENCY AT TUTICORIN. submitted for the award of Degree of Master of Business Administration in Anna University, Tirunelveli has been carried under the guidance of Mr.S. Siva Subramanian M.B.A., M. Phil Lecturer, Department of Management Studies, Dr.Sivanthi Aditanar College of Engineering, Tiruchendur. The entire research is my original work which does not form part of the award of any other degree.

Place: Tiruchendur Date :

Signature of the student ( S.UMA) (Reg.No:95410631052)

ACKNOWLEDGEMENT I thank The Lord almighty for giving me the knowledge and strength in completing this project. I would like to acknowledge my sincere thanks to our beloved Principal Dr. J. MAGESHWARAN, M.E., Ph.D., FIE, MISTE for giving me an opportunity to do this project. I render my special thanks to Director Dr. P. NAGARAJAN B.G.L., M.L.S., M.Com. M.B.A., Ph.D., who gave me the opportunity to do this project. I would like to thank Dr. P. AMIRTHA GOWRI, M.Com, M. Phil., Ph.D., Head of the Department of Management Studies for her moral support during the project. I am also grateful to Mr. S. SIVA SUBRAMANIAN M.B.A., M. Phil., Lecture in Department of Management Studies for the support and valuable guidance to complete the project. I express my grateful thanks to other faculties of department of management studies for their help and assistance. I express my thanks to my parents for their love and support and for being my source of inspiration. I thank all the people who have extended their support to make this project successfully.

S.UMA

TABLE OF CONTENTS

CHAPTER NO

TITLE

PAGE NUMBER

1.1INTRODUCTION 1.2 STATEMENT OF THE PROBLEM 1.3 SCOPE OF THE STUDY 1.4 OBJECTIVES OF THE STUDY 1.5 LIMITATION OF THE STUDY 1.6 REVIEW OF LITERATURE: 1.7 RESEARCH METHODOLOGY 1.8CHAPETERISATION

2.1 HISTORY OF TWO WHEELER 2.2 INDUSTRAY PROFILE 2.3 COMPANY PROFILE 2.4 SWOT ANALYSIS HERO HONDA

3.1 DATA ANALYSIS AND INTERPRETATION

4.1 FINDINGS 4.2 SUGGESTIONS 4.3 CONCLUSION QUESTIONAIRE BIBLIOGRAPHY

LIST OF TABLES TABLE NUMBER 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 TITLE Age wise classification Educational wise classification Occupation wise classification Monthly income of the respondents Price range afford by the respondents Source of information about the company Reasons for choosing the company Reasons for choosing this brand The offer mostly preferred for bike Brand preferred by the respondents for the current purchase Satisfaction with the present bike Respondents opinion regarding price of bike Usage of vehicle of the respondents Maintenance procedure adopt in servicing vehicle Satisfaction with the service of bike Preference of the customer service enter Respondents opinion regarding the service Mileage promised by the dealer Actual mileage of the vehicle Usage of the vehicle Satisfaction level towards mileage Relationships between choosing the brand name and income. Relationships between price range and the level of satisfaction. PAGE NUMBER

3.24

WEIGHTED AVERAGE METHOD

LIST OF CHARTS CHART NUMBER 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 Age wise classification Educational wise classification Occupation wise classification Monthly income of the respondents Price range afford by the respondents Source of information about the company Reasons for choosing the company Reasons for choosing this brand The offer mostly preferred for bike Brand preferred by the respondents for the current purchase Satisfaction with the present bike Respondents opinion regarding price of bike Usage of vehicle of the respondents Maintenance procedure adopt in servicing vehicle Satisfaction with the service of bike Preference of the customer service enter Respondents opinion regarding the service Mileage promised by the dealer Actual mileage of the vehicle Usage of the vehicle Satisfaction level towards mileage TITLE PAGE NUMBER

CHAPTER 1 INTRODUCTION AND DESIGN OF THE STUDY 1.1INTRODUCTION India is a vast country with a burgeoning population that is more than 1 billion and is next only to china. Though the lifestyles of the rural masses have undergone a sea change with the increased infrastructural facilities, application of modern techniques in cultivation, and better access to urban areas, the situation in India is still not rosy. However, of late, the situation has changed drastically with even Multi National Companies (MNCs) competing keenly for a share in the rural markets. This is welcome news for the rural consumers who have been ignored by the corporate world from time immemorial. Rural Marketing can be defined as the activities taking place in rural markets to influence the rural consumers to buy specific products or services for satisfying their needs and wants by conveying through print, electronic and mass media. There are several peculiar characteristics that can be observed in the rural markets and in rural consumers, With the advent of modern sophisticated technology, media coverage has been far and wide. Due to increased audio and visual media coverage, sending message to the masses in a set of capsules, each depicting a particular factor, a product or services has been possible. The surface transport is one area where vast improvements can be noticed with improved roads, transportation and other means. Small and big means of transport have allowed the rural consumer to shop for his goods and services beyond his village boundaries. An important aspect of this development is that the consumer is slowly realizing the number of products, brands and services available in the market, a scope which was unnoticed earlier. The two-wheeler market in India is the biggest contributor to the automobile industry with a size of Rs.100,000 million. The two-wheeler market India comprises of 3types of vehicles- namely motorcycles, scooters, and mopeds. Foreign collaborations have been playing a major role in the growth of the Indian twowheeler market, and most of them are Japanese firms. The modern two- wheeler firms in India have been manufacturing new categories of two-wheeler such as step- thrus and scooterettes. These have been produced by combining two or more two wheeler segments. Foreign firms have already taken initiatives to own their two- wheeler subsidiaries in India.

Among the 3 segments of the Indian two wheeler market, major growth trends have been seen in the motorcycle segment over the last four to five years. One good reason for such increase in the demand for motorcycles is due to its resistance and balance even on bad roads. Most of the rural areas in India do not have decent roads and hence the need for good, shock-resistant, and steady two-wheelers such as motorcycles has been felt. Some of the major players in the Indian motorcycles market are Hero Honda CBZ, Bajaj Pulsar, TVS and Apache. Other brands include Splendor, Passion, Fiero, Victor, Star City, Boxer, CD Dawn, Karizma, Caliber, etc. Having classified the motorcycle brands into economy, executive, and premium segments, Bajaj stands as the leader in the economy segment. Hero Honda leads in the executive segment, and there is a competition in the premium segment between Hero Honda and Bajaj. A key element in marketing strategy is brand name. It is extremely difficult to establish a successful brand name, but once a brand name is established, it is an invaluable asset. Marketing activities exert an enormous impact on individuals. Consumer behaviour is relevant to our

understanding of both public policy issues and the dynamics of popular culture. A sound understanding of consumer behaviour is essential in the long run success of any marketing program. Marketers try to satisfy consumer needs, but the reason why any product is purchased can vary widely. The identification of consumer needs and exceptions is an important step towards ensuring that the appropriate needs will be met by a product. Consumers does not make decision in vacuum. Their purchases are strongly influenced by cultural, social, personal and psychological factors. The markets are customer-driven these days. To understand the customer is no easy job as his behaviour is mostly unique and predictable. This has made the firms to step into the shoes of the consumer and understand him from his point of view in selection and purchase of products and services. Companies often introduce products with unique features to compete with the dominant brands in the market. Customers are having a lot of offers from differentiate companies which always shakes their loyalty. Customers give their commitment to support two or three companies for the product.

1.2 STATEMENT OF THE PROBLEM The product preference reveals that for the selection of durable products, especially two wheelers, the customer has to spend much time to evaluate and choose desired one based on their need and economic condition. The marketing strategies followed by the manufacturer and marketer as well as pre-conceived idea of the buyer also play vital role in selection of a particular product and get satisfied. So to analyze factors contributing product preferences of two wheeler. 1.3 SCOPE OF THE STUDY The study focus on how and why the consumers make decisions to purchase Hero Honda bike. To know the change in demand pattern of the customer. It would help us understanding the changes in the requirements and preferences. Study of perception act as a ladder to develop new product. This Report will be helpful for Retailer and Company so that they can understand the consumer behaviour and can satisfy the consumer on better manner. 1.4 OBJECTIVES OF THE STUDY The objectives of the study are as follows: To study the product preference of two wheeler buyers in Arvinth auto agency at Tuticorin. To analyze the social factors which influence the purchasing decisions. To study and evaluate customers perception and expectations in selection of a particular brand. To know about the service quality in Arvind Auto Agency at Tuticorin. 1.5 LIMITATION OF THE STUDY The customers provided data from their memory. So the data furnished by the sample customer may not be accurate. The data are qualitative in nature which is collected from the customers. Hence it may not be precise. The study is restricted to Arvinth Auto Agency at Tuticorin. so the results cannot be generalized. The sample for the study was only120.So it could not reveal the entire customer opinion.

1.6 REVIEW OF LITERATURE Raju et al., (1990); Parasuraman et al., (1996), quality of the product plays a major role in the consumers preference of the product, their satisfaction and repurchases intention. Burger and Schott,(1972); Richardson et al.,(1996) a, b; Dick et al.,(1996)in their study found that favourable attitude of consumers towards store brand initiates them buy regularly. Day G.S.A had a put forth a Two dimensional concept of brand Loyalty He stated that brand attributes as well as purchase are needed to measure brand loyalty. Statistical analysis of purchases of convenience food brands shows that the true loyal buyers are very conscious of the need of the economies when buying, confident of brand judgement and heavy use of the product. The taste study revealed that consumers rate private lables higher than manufacturer brands, Richardson,(1997). Sarwade W.K in this research on Emerging dimensions of buyers behaviour in rural area studied the marketing and consumer behaviour aspects such as place of buying, frequency of purchase, brand decisions, buying motives, shopping behaviour and brand choice of buyers with reference to selected products in rural area. The study revealed that, most of the rural consumers are not aware of the product. The corporate image is playing a very significant role in popularizing the product in rural area.

Vikas Saraf, in his research on Branding-Hub of the corporate wheel studied the necessity of branding. The study reveals the changing basis for brand management and it also revealed that, how to create brand image and brand loyalty. The author concludes that branding is everything and Brands are not simply products or services. Brands are the sum totals of all the images that people have in their heads about a particular company and a particular mark.

1.7 RESEARCH METHODOLOGY Definition of Research Research methodology is a way to systematically solve the research problem. The following are the contents in this part. (a) Research design (b) Sources of data collection (c) Sampling procedure (d) Tools for analysis RESEARCH DESIGN The research design is purely the framework or plan for a study guides the collection and analysis of data. It is a strategy specifying which approach will be used for gathering and analyse the data. The research design used here is Descriptive research. Descriptive research includes survey and fact of different kinds. The major purpose of Descriptive research is description of affairs as it exists at present. SOURCES OF DATA Primary data The primary data were collected using questionnaire method. Secondary data The secondary data were collected from the books and websites.

SAMPLING PROCEDURE Sampling size Sample sizes of 120 respondents were chosen among customers in Arvinth auto agency at Tuticorin.

 Types of sampling The type of sampling used in convenience sampling. Statistical tool The data collected was analysed with appropriate technique. The techniques used for the analysis is: Percentage Analysis Chi-Square Test Weighted Average Method Percentage Analysis The percentage analysis is used to calculate the present of the favourable and unfavourable responses. Percentage = (Number of Response/ Number of total Respondents)*100 Chi-Square Test Chi- square ( Where O- Observed frequency E- Expected frequency An important characteristic of the chi-square is the de3grees of freedom. It is equal to the product of number of rows less one and number of columns less one. (i.e.) Degrees of freedom (n) = (R-1) (S-1) R- Number of Rows. S - Number of Column. ) = (O-E) 2 / E

Weighted Average Method XW = xw/ w Where XW - Represent the Weighted arithmetic mean X - Represents the variable W -Represents the Weighted attached to the variable X 1.8 CHAPETERISATION The project title is A STUDY ON CUSTOMER PRODUCT PREFERENCE TOWARDS HERO HONDA BIKES PURCHASE IN ARVINTH AUTO AGENCY AT TUTICORIN. Chapter 1 It consists of introduction, statement of the problem, Objective of the study, and Scope of the study, Limitations of the study, Review of literature, and Research Methodology. Chapter 2 It consists of industry Profile and Company Profile of the Organization. Chapter 3 It represents the Data Analysis and Interpretation. Chapter 4 It consists of findings, Suggestions, and Conclusion.

CHAPTER 2 2.1HISTORY OF TWO WHEELER The motors on minibikes, scooters, and mopeds, or motorized velocipedes, are usually air-cooled and range from 25 to 250 cubic cm (1.5 to 15 cubic inches) in displacement; the multiple-cylinder motorcycles have displacements of more than 1,300 cubic cm. The automobile was the reply to the 19th-century dream of self-propelling the horsedrawn carriage. Similarly, the invention of the motorcycle created the self-propelled bicycle. The first commercial design was a three-wheeler built by Edward Butler in Great Britain in 1884. This employed a horizontal single-cylinder gasoline engine mounted between two steerable front wheels and connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles, or pedal cycles by adding small, centrally mounted spark ignition engines. There was then felt the need for reliable constructions. This led to road trial tests and competition between manufacturers. Tourist Trophy (TT) races were held on the Isle of Man in 1907 as reliability or endurance races. Such were the proving ground for many new ideas from early two-stroke-cycle designs to supercharged, multivalve engines mounted on aerodynamic, carbon-fibre reinforced bodywork. 2.2 INDUSTRAY PROFILE The Indian two wheeler market has a size of over Rs. 100,000 million The Indian two wheeler segment contributes the largest volumes amongst all the segments in automobile industry. Though the segment can be broadly categorized into 3 sub-segments viz; scooters, motorcycles and mopeds; some categories introduced in the market are a combination of two or more segments e.g. scooterettes and step throws. The market primarily comprises five players in the two wheeler segment with most of the companies having foreign collaborations with well-known Japanese firms earlier. But most of the companies are now planning 100% subsidiaries in India. India is the second largest manufacturer and producer of two-wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively.

This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheeler industry has come long way since its humble beginning in 1948 when Bajaj Auto started importing and selling Vespa Scooters in India. Majority of India`s middleclass population use motorcycles as a means of private transport. Traditionally, while motorcycles accounted for a large chunk of twowheelers demand in the rest of Asia, scooters dominated the Indian twowheelers market. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. Demand for motorcycles picked up gradually from 199495, following the introduction of 100 cc motorcycles, which are not only highly fuelefficient, but also safer. The share of motorcycles in the total twowheelers market zoomed from 26.0% in 199091 to 80% in 200910. The motorcycles segment grew by 25% in 200910, with domestic sales rising by 26% and exports increasing at 14% in 200910. Strong rural demand and lower base of 200809 were the major drivers for demand growth in 200910. Like many other nations India highly developed transportation system has played a very important role in the development of the country economy over the past to this day. Empowered by its present growth, today the automobile industry in the country can produce a diverse range of vehicles under three broad categories namely cars, two-wheelers and heavy vehicles. One can say that the

automobile industry in the country has occupied a solid space in the platform of Indian economy. Furthermore, with increasing women working population, changing social philosophy and broadmindedness, the penetration of two-wheelers that is currently at abysmally low level is expected to increase significantly going forward. 2.3 COMPANY PROFILE Hero Honda Motors Ltd. is the world's largest manufacturer of two wheelers, based in India. The company is a joint venture between India's Hero Group and Honda Motor Company, Japan

that began in 1984. In 2001, the company achieved the coveted position of being the largest twowheeler manufacturing company in India and the World No.1 two-wheeler company in terms of unit volume sales in a calendar year by a single company. Hero Honda has retained that coveted position till date. Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds, someone in India buys Hero Honda's top-selling motorcycle Splendor. VISION The Hero Honda story began with a simple vision the vision of a mobile and an empowered India, powered by Hero Honda. This vision was driven by Hero Hondas commitment to customer, quality and excellence, and while doing so, maintaining the highest standards of ethics and societal responsibilities. STRATEGY Hero Hondas key strategy has been driven by innovation in every sphere of activity building a robust product portfolio across categories, exploring new markets, aggressively expanding the network and continuing to invest in brand building activities. MANUFACTURING Hero Honda bikes are manufactured across three globally benchmarked manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar, in the hill state of Uttrakhand. TECHNOLOGY In the 1980s Hero Honda pioneered the introduction of fuel-efficient, environment friendly four-stroke motorcycles in the country. Today, Hero Honda continues to be technology pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the Glamour FI in June 2006. PRODUCTS Hero Honda's product range includes variety of motorcycles that have set the industry standards across all the market segments. The company also started manufacturing scooter in 2006. Hero Honda offers large no. of products and caters to wide variety of requirements across all the segments.

DISTRIBUTION The Companys growth in the two wheeler market in India is the result of an intrinsic ability to increase reach in new geographies and growth markets. Hero Honda's extensive sales and service network now spans close to 4500 customer touch points. These comprise a mix of authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the country. BRAND The Company has been continuously investing in brand building utilizing not only the new product launch and new campaign launch opportunities but also through innovative marketing initiatives revolving around cricket, entertainment and groundlevel activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf. Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi 2010. QUALITY POLICY Excellence in quality is the core value of Hero Honda's philosophy. We are committed at all levels to achieve high quality in whatever we do, particularly in our products and services which will meet and exceed customers growing aspirations through: Innovation in products processes and services. Continuous improvement in our total quality management systems. Teamwork and responsibility. RECENT PERFORMANCE OF TWO WHEELERS IN INDIA Two-wheeler sales in the country have sky rocketed in the recent years and the annual sales of motorcycles in India is expected to cross the 10 million mark by 2010.the low penetration of twowheelers in the country (31 two wheeler per 1000 citizens in 2005) leaves immense scope for the growth of the market. Overall, the industry sales of two wheelers have grown by 15 % from 6.57 million in 2004/2005 to 7.57 million in 2006/2007. The buoyant Indian Economy with a growth rate of around 8% per annum is further expected to fuel the growth of two wheelers in the country. The share of motorcycle have increased over the years ,while that of other two wheelers like geared scooterettes and mopeds have shown a

negative growth or remained stagnant. The two-wheelers have penetrated 7% of rural households and 24% of urban markets, thus leaving an immense scope for the4 market to grow. 2010-11 Performance Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent Net profit after tax at Rs. 1927.90 Crores.

2.4 SWOT ANALYSIS HERO HONDA STRENGTHS

Huge brand equity/reputation among customers Models/products in almost every bike segment Healthy growth in profits Brilliant relations with customers and dealers Strong Resale Value International Technology with international collaboration Quality product for each category Dedicated Human Resource Awareness in the people Highly competitive features

WEAKNESS

Hero is very much dependent on Honda Low cash reserves due to massive dividend payouts Very difficult to cop up if contract discontinues Imports >31% of its spare parts requirements

OPPORTUNITIES

Bikes Segment is still a fast growing sector 150cc segment

Exports market is yet to be properly exploited Variants can be launched to increase the market share Hero Honda is the most reliable bike manufacturer in India Strong brand follower

THREATS

Executive segment It will be a great threat for Hero is the collaboration breaks All major bike makers in the world are lining up for India future lies in the 150cc and 125cc markets Low cash reserves now dominated by Bajaj Strong competition from Bajaj, Yamaha & TVS

CHAPTER III DATA ANALYSIS AND INTERPRETATION 3.1 AGE WISE CLASSIFICATION OF THE RESPONDENTS Table 3.1 shows age -wise classification of the respondents. TABLE 3.1 AGE WISE CLASSIFICATION OF THE RESPONDENTS

SI.NO

AGE

NUMBER OF RESPONDENTS

PERCENTAGE

1 2 3 4

20-30 30-40 40-50 Above 50 Total

45 40 26 9 120

38 33 22 7 100

Source: primary Data INFERENCE The above table 3.1 shows that 38% of the respondents are in the age group of 20-30 years, 33% of the respondents are in the age group 30-40 years, 22% of the respondents are in the age group 40-50 years, and 7% of the respondents are in the age group above 50.

CHART 3.1 AGE WISE CLASSIFICATION OF THE RESPONDENTS

40 35 30 percentage

38 33

25
20 15 10 5 0 20-30 30-40 Age

22

40-50

Above50

3.2 EDUCATIONAL WISE CLASSIFICATION OF THE RESPONDENTS Table 3.2 shows educational -wise classification of the respondents. TABLE 3.2 EDUCATIONAL WISE CLASSIFICATION OF THE RESPONDENTS SI.NO EDUCATIONAL QUALIFACTION 1 2 3 4 S.S.L.C Under graduate Post graduation Others Total Source: primary Data INFERENCE The above table 3.2shows that 33% of the respondents are others categories of education, 26% of the respondents are post graduation, 22% of the respondents are under graduate,19% of the respondents are s.s.l.c NUMBER OF RESPONDENTS 23 26 32 39 120 19 22 26 33 100 PERCENTAGE

CHART3.2 EDUCATIONAL WISE CLASSIFICATION OF THE RESPONDENTS

40 35 30

38 33

percentage

25 20 15 10 5 0 20-30 30-40

22

40-50

Above50

Educational qualifaction

3.3 OCCUAPTION WISE CLASSIFICATION OF THE RESPONDENTS Table 3.3 shows occupation -wise classification of the respondents. TABLE 3.3 OCCUPATION WISE CLASSIFICATION OF THE RESPONDENTS SI.NO OCCUPATION NUMBER OF RESPONDENTS 1 2 3 4 5 6 Private Government Professional Businessman Student Others Total Source: primary Data INFERENCE The above table3.3 shows that 30% of the respondents are private employee,22% of the respondents are government employee,16% of the respondents are others and professional,12% of the respondents are businessman,4% of the respondents are student. 36 26 19 14 5 20 120 30 22 16 12 4 16 100 PERCENTAGE

CHART3.3 OCCUPATION WISE CLASSIFICATION OF THE RESPONDENTS

30

25 30 20

percentage

22 15 16 10 12 16

OCCUPATION

3.4 MONTHLY INCOME OF THE RESPONDENTS Table 3.4 shows monthly income of the respondents. TABLE 3.4 MONTHLY INCOME OF THE RESPONDENTS SI.NO MONTHLY INCOME OF THE FAMILY(IN RS) 1 2 3 4 Below 5000 5000-10000 10000-20000 Above 20000 Total Source: primary Data INFERENCE The above table 3.4 shows that 39% of the respondents salary was Rs 5000- 10000 per month,36% of the respondents salary was Rs 10000-20000,19% of the respondents salary was below 5000,6% of the respondents salary was above 20000. 22 47 44 7 120 19 39 36 6 100 NUMBER OF RESPONDENTS PERCENTAGE

CHART3.4 MONTHLY INCOME OF THE RESPONDENTS

45 40 35 39 36

percentage

30 25 20 15 10 6 5 0 Below 5000 5000-10000 10000-20000 Above 20000 19

monthly income

3.5 PRICE RANGE AFFORD BY THE RESPONDENTS Table 3.5 shows price range afford by the respondents. TABLE 3.5 PRICE RANGE AFFORD BY THE RESPONDENTS SI.NO PRICE RANGE(in Rs) 1 2 3 4 40000-50000 50000-60000 60000-70000 Above 70000 Total Source: primary Data INFERENCE The above table3.5 shows that 37% of the respondents like the price range from Rs 4000050000,29% of the respondents like the price range from Rs50000-60000,18% of the respondents like the price range 70000. from Rs60000-70000,16% of the respondents like the price range above NUMBER OF RESPONDENTS 44 35 21 20 120 37 29 18 16 100 PERCENTAGE

CHART 3.5 PRICE RANGE AFFORD BY THE RESPONDENTS

40

35

30

percentage

25

20

37 29

15

10

18

16

0 40000-50000 50000-60000 60000-70000 Above 70000

price range

3.6 SOURCE OF INFORMATION ABOUT THE COMPANY Table 3.6 shows source of information about the company TABLE 3.6 SOURCE OF INFORMATION ABOUT THE COMPANY SI.NO SOURCE NUMBER OF RESPONDENTS 1 2 3 4 Advertisements Friends/Family Past buying experience Others Total Source: primary Data INFERENCE The above table3.6 shows that 63% of the respondents know about their product by friends/family, 21% of the respondents know about their product by advertisements, 15% of the respondents know about their product by past buying experience, 1% of the respondent know about their product by others sources. 25 75 18 2 120 21 63 15 1 100 PERCENTAGE

CHART 3.6 SOURCE OF INFORMATION ABOUT THE COMPANY

70 63 60

50

percentage

40

30 21 20 15

10 1 0 Advertisements Friends/Family Past buying experience Others

source of information

3.7 REASONS FOR CHOOSING THE COMPANY Table 3.7 shows reasons for choosing the company TABLE 3.7 REASONS FOR CHOOSING THE COMPANY SI.NO REASONS NUMBER OF RESPONDENTS 1 2 3 4 5 More models Reasonable price Goodwill/high quality Good services Others Total Source: primary Data INFERENCE The above table 3.7 shows that 36% of the respondents are choosing the company for goodwill/high quality, 34% of the respondents are choosing the company for reasonable price, 18 41 42 11 8 120 15 34 36 9 6 100 PERCENTAGE

15% of the respondents are choosing the company for more models, 9% of the respondents are choosing the company for good services, 6% of the respondents are choosing the company other reasons. for

CHART 3.7 REASONS FOR CHOOSING THE COMPANY

40 35 30

percentage

25 20 34 15 10 15 5 0 More models Reasonable price Goodwill/high quality Good services 9

36

Reasons

3.8 REASONS FOR CHOOSING THIS BRAND Table3.8 shows reasons for choosing this brand TABLE 3.8 REASONS FOR CHOOSING THIS BRAND

SI.NO REASONS

NUMBER OF RESPONDENTS

PERCENTAGE

1 2 3 4 5

Brand name Fuel Efficiency Driving comfort Resale value Others Total

22 56 17 13 12 120

18 47 14 11 10 100

Source: primary Data INFERENCE The above table3.8shows that 47% of the respondents are choosing the brand for fuel efficiency,18% of the respondents are choosing the brand for brand name,14% of the respondents are choosing the brand for driving comfort,11% of the respondents are choosing the brand for resale value,10% of the respondents are choosing the brand for other reason.

CHART 3.8 REASONS FOR CHOOSING THIS BRAND

50 45 40 35

percentage

30 25 20 15 10 5 0 Brand name Fuel Efficiency Driving comfort Resale value Others 18 14 47

11

10

Reasons

3.9 THE OFFER MOSTLY PREFERRED FOR BIKE Table3.9 shows the offer mostly preferred for bike TABLE 3.9 THE OFFER MOSTLY PREFERRED FOR BIKE SI.NO OFFER NUMBER OF RESPONDENTS 1 2 3 4 Exchange offer Prize coupons Scratch guards Tour bonanza Total Source: primary Data INFERENCE The above table 3.9 shows that 34% of the respondents preferred mostly for bike Scratch guards, 33% of the respondents preferred bike in prize coupon and exchange offer. 39 40 41 120 33 33 34 100 PERCENTAGE

CHART 3.9 THE OFFER MOSTLY PREFERRED FOR BIKE

35 30 25 20 33 33 34 15 10 5 0 Exchange offer Prize coupons Scratch guards 0 Tour bonanza

percentage

offers

3.10 BRAND PREFERRED BY THE RESPONDENTS FOR THE CURRENT PURCHASE Table 3.10 shows the analysis of the respondents brand preference for their current purchase. TABLE 3.10 BRAND PREFERREDBY THE RESPONDENTS FOR THE CURRENT PURCHASE SI.NO BRAND NAMES NUMBER OF RESPONDENTS 1 2 3 4 5 SPLENDER + SUPER SPL CBZ PASSION PRO SPLENDER PRO Total Source: primary Data INFERENCE The above table 3.10 shows that 33%of the respondents like splender+,32% of the respondents like super spl,19% of the respondents like cbz,10% of the respondents like passion pro,6% of the respondents like splender pro. 39 38 23 12 8 120 33 32 19 10 6 100 PERCENTAGE

CHART 3.10 BRAND PREFERRED BY THE RESPONDENTS FOR THE CURRENT PURCHASE

35 30 25

percentage

20 33 15 10 5 0 SPLENDER + SUPER SPL CBZ PASSION PRO SPLENDER PRO 19 10 6 32

Brand Name

3.11 SATISFACTION WITH THE PRESENT BIKE Table3.11shows satisfaction with the present bike of the respondents TABLE 3.11 SATISFACTION WITH THE PRESENT BIKE SI.NO SATFICATION LEVEL 1 2 3 4 5 Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total Source: primary Data INFERENCE The above table 3.11shows that 29% of the respondents are satisfied with present bike, 28% of the respondents are neutral with present bike, 26% of the respondents are highly satisfied with present bike, 14% of the respondents are dissatisfied with present bike, 3% of the respondents are highly dissatisfied with present bike. NUMBER OF RESPONDENTS 31 33 34 17 5 120 26 29 28 14 3 100 PERCENTAGE

CHART 3.11 SATISFACTION WITH THE PRESENT BIKE

30

25

20

percentage

15 26 10

29

28

14 5 3 0 Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

satisfaction level

3.12 RESPONDENTS OPINION REGARDING PRICE OF BIKE

Table 3.12 shows the respondents opinion regarding the price. TABLE3.12 RESPONDENTS OPINION REGARDING PRICE OF BIKE

SI.NO OPINION

NUMBER OF RESPONDENTS

PERCENTAGE

1 2 3 4

High price Moderate price Cheap price Low price Total

23 71 24 2 120

19 59 21 1 100

Source: primary Data INFERENCE The above table 3.12shows that 59% of the respondents opinion regarding price of bike was moderate, 21% of the respondents opinion regarding price of bike was cheap, 19% of the respondents opinion regarding price of bike was high, 1% of the respondent opinion regarding price of bike was low.

CHART 3.12 RESPONDENTS OPINION REGARDING PRICE OF BIKE

70 60 50

percentage

40 30 20 10 0 High price Moderate price Cheap price 19 21 1 Low price 59

price

3.13 USAGE OF VEHILE OF THE RESPONDENTS Table 3.13 shows the classification of the respondents according to their usage of vehicles. TABLE 3.13 USAGE OF VEHILE OF THE RESPONDENTS

SI.NO USAGE OF VEHILE

NUMBER OF RESPONDENTS

PERCENTAGE

1 2 3 4

1-6 Months 6 Months-1 Year 1 Year-2 Year More than 2 Year Total

16 34 44 26 120

13 28 37 22 100

Source: primary Data INFERENCE The above table3.13 shows that 37% of the respondents use the vehicle 1 year-2 year, 28% of the respondents use the vehicle 6 months-1 year, 22% of the respondents use the vehicle more than 2 years, 13% of the respondents use the vehicle 1-6months.

CHART 3.13 USAGE OF VEHILE OF THE RESPONDENTS

40 35 30

Percentage

25 20 15 10 13 5 0 1-6 Months 6 Months-1 Year 1 Year-2 Year More than 2 Year 28 22 37

Usage of vehile

3.14 MAINTENANCE PROCEDURE ADOPT IN SERVICING VEHICLE Table 3.14 shows the classification of the respondents according to their maintenance procedure. TABLE3.14 MAINTENANCE PROCEDURE ADOPT IN SERVICING VEHICLE SI.NO MAINTENANCE PROCEDURE 1 2 3 4 5 Periodical Monthly once Once in 3 months Once in 6 months Only after a break down Total Source: primary Data INFERENCE The above table 3.14 shows that 46% of the respondents are servicing the vehicle once in 3 months, 42% of the respondents are servicing the vehicle monthly once, 8% of the respondents are servicing the vehicle only after a break down, 3% of the respondents are servicing the vehicle periodical, 1% of the respondent are servicing the vehicle once in 6 months. NUMBER OF RESPONDENTS PERCENTAGE 4 50 54 2 10 120 3 42 46 1 8 100

CHART 3.14 MAINTENANCE PROCEDURE ADOPT IN SERVICING VEHICLE

50 45 40 35

Percentage

30 25 20 15 10 5 0 Periodical Monthly once Once in 3 months 3 8 1 Once in 6 months Only after a break down 42 46

Maintence procedure

3.15 SATISFACTION WITH THE SERVICE OF BIKE Table3.15 shows satisfaction with the service of bike of the respondents TABLE 3.15 SATISFACTION WITH THE SERVICE OF BIKE SI.NO SATISFACTION LEVEL NUMBER OF RESPONDENTS 1 2 3 4 5 Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total Source: primary Data INFERENCE The above table 3.15 shows that 48% of the respondents are satisfied with the service, 39% of the respondents are neutral with the service,9% of the respondents are highly satisfied with the service,3% of the respondents are dissatisfied with the service,1% of the respondent is highly dissatisfied with the service. 11 57 46 4 2 120 9 48 39 3 1 100 PERCENTAGE

CHART 3.15 SATISFACTION WITH THE SERVICE OF BIKE

50 45

48

39 40 35 30 25

percentage

20 15 9 10 5 0 3 1

satifaction level

3.16 PREFERENCE OF THE CUSTOMER SERVICE CENTER Table 3.16 shows the classification of the respondents according of the respondents according to their preference of the customer service centre TABLE 3.16 PREFERENCE OF THE CUSTOMER SERVICE CENTER SI.NO SERVICE NUMBER OF RESPONDENTS 1 2 3 Authorized Dealers Sub Dealers Others Total Source: primary Data INFERENCE The above3.16 table shows that 57% of the respondents are preferred service in authorized dealers only, 33% of the respondents are preferred service in sub dealers only, and 10% of the respondents are preferred service from others. 68 39 13 120 57 33 10 100 PERCENTAGE

CHART 3.16 PREFERENCE OF THE CUSTOMER SERVICE CENTER

60 50 40

percentage

30 20 10 0

57

33

10 Authorized Dealers Sub Dealers Others

service center

3.17RESPONDENTS OPINION REGARDING THE SERVICE Table 3.17 shows the opinion of the respondents regarding the service of bike. TABLE 3.17 RESPONDENTS OPINION REGARDING THE SERVICE SI.NO OPINION NUMBER OF RESPONDENTS 1 2 3 4 Excellent Good Fair Poor Total Source: primary Data INFERENCE The above table 3.17shows that 54% of the respondents opinion regarding the service is good, 27% of the respondents opinion regarding the fair, 13% of the respondents opinion regarding the service is excellent, 6% of the respondents opinion regarding the service is poor. 16 65 32 7 120 13 54 27 6 100 PERCENTAGE

CHART 3.17 RESPONDENTS OPINION REGARDING THE SERVICE

60 50 40 30 20 10 0 Excellent

54

percentage

27

13 6

Good

Fair

Poor

service

3.18 MILEAGE PROMISED BY THE DEALER Table 3.18 shows the classification of the respondents according to their mileage promised by the dealer TABLE 3.18 MILEAGE PROMISED BY THE DEALER SI.NO MILEAGE OF VEHICLE NUMBER OF RESPONDENTS 1 2 3 4 50 km\litre 51-60 km\litre 61-70 km\litre 70 and above Total Source: primary Data INFERENCE The above table 3.18 shows that 64% of the dealers are promised vehicle mileage must be 5160 km/litre, 26% of the dealers are promised vehicle mileage must be 61-70 km\litre,8% of the dealers are promised vehicle mileage must be 50km\litre,2% of the dealers are promised vehicle mileage must be 70 and above. 10 77 31 2 120 8 64 26 2 100 PERCENTAGE

CHART 3.18 MILEAGE PROMISED BY THE DEALER

70 60 50

Percentage

40 30 20 10 8 0 2 50 km\litre 51-60 km\litre 61-70 km\litre 70 and above 26 64

mileage

3.19 ACTUAL MILEAGE OF THE VEHICLE Table 3.19 shows the classification of the respondents according to their actual mileage of the vehicle TABLE 3.19 ACTUAL MILEAGE OF THE VEHICLE SI.NO ACTUAL MILEAGE NUMBER OF RESPONDENTS 1 2 3 4 50 km\litre 51-60 km\litre 61-70 km\litre 70 and above Total Source: primary Data INFERENCE The above table 3.19 shows that 59% of the respondents yield actual mileage of the vehicle is 51-60 km\litre, 23% of the respondents yield actual mileage of the vehicle is 50k\litre,17% of the respondents yield actual mileage of the vehicle is 61-70km\litre,1% of the respondents yield actual mileage of the vehicle is 70 and above. 27 71 20 2 120 23 59 17 1 100 PERCENTAGE

CHART 3.19 ACTUAL MILEAGE OF THE VEHICLE

60 50 40 30 20 10 0 50 51-60 61-70 km\litre km\litre km\litre mileage 23 17 1 70 and above 59

percentage

3.20 USAGE OF THE VEHICLE Table 3.20 shows the classification of the respondents according to their usage of the vehicle. TABLE 3.20 USAGE OF THE VEHICLE SI.NO USAGE OF VEHICLE NUMBER OF RESPONDENTS 1 2 3 4 5 Very often Daily Weekly Once Once in two days Based on needs Total Source: primary Data 7 76 31 2 4 120 6 65 25 1 3 100 PERCENTAGE

INFERENCE The above table 3.20 shows that 65% of the respondents use the vehicle daily,25% of the respondents use the vehicle weekly once, 6% of the respondents use the vehicle very often,3% of the respondents use the vehicle based on needs, 1% of the respondent use the vehicle once in two days.

CHART 3.20 USAGE OF THE VEHICLE

70 60 50

65

Percentage

40 30 20 10 0 Very often Daily Weekly Once in Based Once two on days needs 6 1 25

Usage of vehile

3.21 SATISFACTION LEVEL TOWARDS MILEAGE Table 3.21 shows the classification of the respondents according to their satisfaction level towards mileage. TABLE 3.21 SATISFACTION LEVEL TOWARDS MILEAGE

SI.NO

SATISFACTION LEVEL

NUMBER OF RESPONDENTS

PERCENTAGE

1 2 3 4 5

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total

9 85 16 7 3 120

8 70 13 6 3 100

Source: primary Data INFERENCE The above table 3.21 shows that 70% of the respondents are satisfied towardsmileage,13% of the respondents are neutral towards mileage,8% of the respondents are highly satisfied towards mileage,6% of the respondents are dissatisfied towards mileage 3% of the respondents are highly dissatisfied with the mileage of vehicle.

CHART 3.21 SATISFACTION LEVEL TOWARDS MILEAGE

70 60 50

Percentage

40 70 30 20 10 8 0

13 6 3

satisfaction level

CHI-SQUARE ANALYSIS TABLE3.22 RELATIONSHIPS BETWEEN CHOOSING THE BRAND NAME AND INCOME. Null Hypothesis (H0 ): There is no relationships between choosing the brand name and income. Alternative Hypothesis (H1 ): There is relationship between choosing the brand name and income. The table below shows the results of a survey in which 120 respondents were categorized according to the level of income and preference for brand. Brand Brand name & Fuel efficiency Income Driving comfort Resale value & Others Total

Below5000 5000-10000 10000-20000 Above 20000 Total CALCULATION Observed frequency 12 5 5 29 8 10 28 12 11 &

12 29 28

5 8 12

5 10 11

22 47 51

69

25

26

120

Expected frequency (22 69/120) = 12.7 (22 25/120 ) = 4.6 (22 26/120 ) = 4.8 (69 47/120 ) = 2.8 (25 47/120 ) = 9.8 (26 47/120) = 10.2 (69 51/120) = 29.3 (25 51/120) = 10.6 (26 51/120) =11.1

(O-E)2 0.422 0.173 0.054 3.9 3.2 0.03 1.75 1.89 15.6

(O-E)2 / E 0.33 0.04 0.012 0.144 0.326 0.003 0.059 0.178 1.412 (O-E)2 / E= 2.21

Degrees of freedom=(R-1) (S-1) =(3-1)(3-1)=4 The table value of ( Hence the table value of INFERENCE Hence the null hypothesis is accepted and there is no relationship between choosing the brand name and income.
.05

) for 4 degrees of freedom at 5% level of significance is 11.07. calculated value of ( )

TABLE 3.23 RELATIONSHIPS BETWEEN PRICE RANGE AND THE LEVEL OF SATISFACTION. Null Hypothesis (H0 ): There is no relationships between price range and the level of satisfaction. Alternative Hypothesis (H1 ): There is relationship between price range and the level of satisfaction. The table below shows the results of a survey in which 120 respondents were categorized according to price range and the level of satisfaction towards bike. Satisfaction level Highly satisfied and satisfied Neutral, dissatisfied and highly dissatisfied Total

price range 40000-50000 and50000-60000 60000-70000 Above 70000 Total 80 40 120 and 16 17 33 64 23 87

CALCULATION Observed frequency 64 23 16 17 Expected frequency (87 80/120) = 58 (87 40 /120 ) = 29 (80 33 /120 ) = 22 (40 33 /120 ) = 11 (O-E)2 36 36 36 36 (O-E)2 / E 0.56 1.56 2.25 2.2 (O-E)2 / E= 6.57 Degrees of freedom=(R-1) (S-1) = (2-1)(2-1)

=1 The table value of ( Hence table value of INFERENCE Hence the null hypothesis is rejected(H0). Accepted alternative hypothesis (H1). There is relationship between price range and the level of satisfaction.
.05

) for 1 degrees of freedom at 5% level of significance is 3.841. ).

calculated value of (

TABLE 3.24 WEIGHTED AVERAGE METHOD Ranking the factors for choosing the brand.

Reason for choosing the brand Brand name

II

III

IV

Weighted average

Rank

665=330

244=96

183=54

92=18

31=3

501/120 =4.2

Better look & style Good mileage Good pickup & speed Good after sales services Price

145=70

694=276

183=54

142=28

51=5

433/120 =3.61

IV

455=225

244=96

213=63

182=36

121=12

432/120 =3.6

195=96

554=220

143=42

162=32

161=16

406/120 =3.4

VI

445=220

374=148

123=36

112=22

161=16

442/120 =3.7

III

235=115

354=140

193=57

72=14

361=36

362/120 =3

VII

New models

515=255

284=112

123=36

192=38

101=10

451/120 =3.8

II

INFERENCE The above table shows the customer rating of various factors as the purpose of product preference. According to their customers is ranked using the Weighted Average Method .The Brand name is ranked first as the reasons for choosing the brand and Price is ranked at last.

CHAPTER 4 FINDINGS, SUGGESTIONS AND CONCLUSION 4.1 FINDINGS 38% of the respondents are in the age group of 20-30 years. 33% of the respondents are others categories of education. 30% of the respondents are private employee. 39% of the respondents salary was Rs 5000- 10000 per month. 37% of the respondents like the price range from Rs 40000-50000. 63% of the respondents know about their product by friends/family. 36% of the respondents are choosing the company for goodwill/high quality. 47% of the respondents are choosing the brand for fuel efficiency. 34% of the respondents preferred mostly for bike Scratch guards. 33%of the respondents like splender+. 29% of the respondents are satisfied with present bike. 59% of the respondents opinion regarding price of bike was moderate. 37% of the respondents use the vehicle 1 year-2 year. 46% of the respondents are servicing the vehicle once in 3 months. 48% of the respondents are satisfied with the service. 57% of the respondents are preferred service in authorized dealers only. 54% of the respondents opinion regarding the service is good. 64% of the dealers are promised vehicle mileage must be 51-60 km/litre. 59% of the respondents yield actual mileage of the vehicle is 51-60 km\litre. 65% of the respondents use the vehicle daily. 70% of the respondents are satisfied towards mileage.

4.2SUGGESTIONS The sales promotion offers are not impressive. Hence, the company should work towards providing more sales promotion offers to attract the customers. The customers are not with the price level, so they can better consider the price levels. Factors like goodwill/high quality and special features are admired the respondents, hence this feature has to be continued. Most of the respondents like the brand splender+, so its suggested that the Dealers use the advertisements tactics to that induce the people to prefer other brand too. Providing prober awareness to the customers to servicing the vehicle at least once in 2 months. Some standard should be maintained in their services to make the customers well satisfied.