Customer Perception And Attitude Towards 100cc Bikes-Business Administration-Project Report, Projects for Business Administration. University of Management and Technology
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joliea13 July 2012

Customer Perception And Attitude Towards 100cc Bikes-Business Administration-Project Report, Projects for Business Administration. University of Management and Technology

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This is project report for Business Administration course completion. It was submitted to Waqas Hussain at University of Management and Technology. It includes: Consumer, Perception, Attitude, Selected, Brands, Bikes, Pr...
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A

DISSERTATION REPORT

ON Customer Perception and Attitude towards selected brands of 100c.c. bikes (TVS,HONDA HONDA and BAJAJ), Between the age group of 18-24 years in yamuna nagar on the basis of Price, Brand name and After sale services -A case study of Yamuna Nagar”

Submitted to

KURUKSHETRA UNIVERSITY, KURUKSHETRA

In the partial fulfillment for the degree of Master of Business Administration

(Session 2005-2007)

Under the supervision of: Submitted by: Mrs. BHARTI DUA Sanjeev Bhatia Faculty of M.B.A Roll.no. 1149/05

MBA(F) Univ. Regn.No.05-TRY-07 Univ Roll no

Tilak Raj Chadha Institute of Management &Technology (Approved by AICTE & Affiliated to Kurukshetra University, Kurukshetra)

Yamuna Nagar-135001)

Acknowledgment

This project report has been made possible through the direct & indirect co-

operation of various people whom I wish to express my thanks and

gratitude’s. I am very thankful to Dr. Vikas Daryal

(Head of Department, MBA, Tilak Raj Chadha Institute of Management &

technology, yamuna nagar) for helping me to do work on project.

I also want to express my grateful thanks to mrs. Bharti dua (Faculty) who

relised me where I am lacking while doing the project work.

I also wish to express sincere thanks to DR R.K Garg (Director Tilak Raj

Chadha Institute of Management & technology, Yamunanagar.)

I would also like to thanks the other Faculty members of the institute

and my friends for their advice and guidance along kindled inspiration in the

face of difficulties encountered in the course of this work and to create this

project report.

Finally with blessings of my parents and who had been a source

of strength and inspiration for me in this endeavor.

(SANJEEV BHATIA)

Executive Summary

To know about the consumer buying behavior and factor which As the objectives of my study is analyses the customer perception Customer Perception and Attitude towards selected brands of 100c.c. bikes (TVS,HONDA HONDA and BAJAJ), Between the age group of 18-24 years in yamuna nagar on the basis of Price, Brand name and After sale services

Consumer buyer behavior refers to the buying behavior of final consumers –

individuals and households who buys services and goods for personal

consumption. Consumer behavior is influenced strongly by culture, social ,

personal and psychological factors. Culture factors include the set of basic

values, perceptions, wants and behavior learned by a member of society

from family and other important institutions. The social factors include

consumer’s family, small group, social roles and status. The personal

characteristics such as buyer’s age, life cycle stage, occupation, economic

situations and life style influenced by four major psychological factors :

Motivation, Perception, Learning, Belief and Attitudes.

In this era of cut throat competition, no company can even survive in the

market place without knowing its and its products strengths and weaknesses.

It has to fortify itself against threats from the environment and exploit its

strengths or increase profits. And in order to do so, the company has to

conduct regular surveys to know the customer’s opinions, needs, and

preferences. This helps the company to manufacture the product like wise

for each customer’s expectations.

Influence customer to purchase the product.To know about the consumer preference and decision.To know the factors which influence customer to making there purchasing decision

After this I give my suggestion that may be helpful for the bike company

TABLE OF CONTENTS

1. Certificate

2. Acknowledgement

3. Executive Summary

4. Content

5. Introduction

6. Objective of the study

7. Literature Review

8. Research Methodology

a. Sampling & Sample Design

b. Analytical Tools

c. Data Collection

d. Hypothesis Testing

e. Limitations of the study

9. Result & Discussions/Findings

10. Recommendation

11. Bibliography

12. Annexure

INTRODUCTION

Everybody in this world is a consumer. We need a variety of goods

and services right from our birth to death. All consumers are buyers and all

buyers are not consumer. Then who are the consumer buyers and how they

behave while purchasing a particular product is very important for

marketers. Consumer buyer behavior refers to the buying behavior of final

consumers – individuals and households who buys services and goods for

personal consumption. Consumer behavior is influenced strongly by culture,

social , personal and psychological factors. Culture factors include the set of

basic values, perceptions, wants and behavior learned by a member of

society from family and other important institutions. The social factors

include consumer’s family, small group, social roles and status. The personal

characteristics such as buyer’s age, life cycle stage, occupation, economic

situations and life style influenced by four major psychological factors :

Motivation, Perception, Learning, Belief and Attitudes.

By keeping in view the importance of consumer behavior, the present

study deals with the consumer buyer behavior of two wheelers in Yamuna

nagar city.

Increasing urbanization, higher disposal incomes, falling interest rates

and poor public transport lead to increase in the volume of two-wheelers, 10

percent increase year after year for the past one decade.

In this era of cut throat competition, no company can even survive in

the market place without knowing its and its products strengths and

weaknesses. It has to fortify itself against threats from the environment and

exploit its strengths or increase profits. And in order to do so, the company

has to conduct regular surveys to know the customer’s opinions, needs, and

preferences. This helps the company to manufacture the product like wise

for each customer’s expectations.

It has now become more important for the customer confidence and

higher positioning of buyer perception. Thus, Surveys becomes genuine key

to success.

Consumers Behavior

Consumers Behavior can be defined as –

"The behavior that consumer display in searching for,

punching, using, evaluating and disposing of products & service that they

expect will satisfy their needs.”

The decision process & physical activity individuals engaging

when evaluating, acquiring, using or disposing of goods and services. A

consumer plays a no, of roles in purchase decision. The study, of consumer’s

behavior would be incomplete if it treated only one consumer role. Some

consumers Behavior role are

ROLE DESCRIPTION

Initiator The individual who determines that some or need or

want is not being met & authorize to rectify the

situation.

Influencer A person who by some intentional or unintentional

word or action influences the purchase decision, the

actual purchase and the use of the product or service.

Buyer The individual who actually makes the purchase

transaction.

User The person most directly involved in the

consumption or use of purchase.

Thus, the importance of CB lies in the fact that behavior can be under-

stand & influenced to ensure a positive purchase decision. So, a round

understanding of CB is essential to the long run success of any marketing

program. In fact, it is seen as a cornerstone of the marketing concept. That's

why the marketing managers interest lies exactly to ensure that his

marketing strategy result in purchase of the product.

MODELING BEHAVIOR

The study of consumer behavior is quite complex, because of the

many variable involved and their tendency to interact with and influence

each other. So, the most relevant variables and their influence can be shown

by a diagram, which is made up of three major sections.

1. External environment variable influencing behavior.

2. Individual determinants of behavior.

3. The consumer's decision process.

1. EXTERNAL VARIABLE:

The external environment is made up various influences as culture,

subculture, social class, social group, family and personal influences.

I) Culture:

The study of culture encompasses all aspect of a society such as its

religion knowledge, language, laws, customs, tradition, music, art,

technology, work pattern, products etc. for the purpose of CB culture

can be defined as the sum total of learned beliefs, value & custom that

serve to guide and direct the consumer behavior of members of a

particular society. Thus, the concept of culture offers many general &

specific insights into the behavior of consumers. So, it is a starting

point for the marketer who wishes to better understand a market.

a) Formal learning:

In which parent an elders teach children the proper way to behave &

this behavior influence his attitude towards the products.

b) Informal learning: In which learning takes place by imitating the behavior of the

parents, friends or by watching TV & film actors in action.

c) Technical Learning: In which instruction are given about the specify

method by which certain things have to be done such as painting,

dancing etc.

II) Subculture: These groups posses beliefs, values and customs that set

them apart from other members of the same society or culture. So,

there are subculture of students, Professors, marketers, & other group.

An individual may be member of more than one subculture at the

same time, and based upon it consumer’s behavior like product

purchase Patterns, Shopping behavior &: other Demographic &

Psychographic characteristics may differ. Thus, it .is imperative that

marketers understand who constitutes the most relevant subculture for

their particular or service.

III) Social Class Influences: Social class is defined as the division of

members of a society into a hierarchy of distinct status class, so that

members of each class have relatively the same status class, so that

members of each class have relatively the same status & members of

all other classes have either more or status. In this complex society, in

which financial wealth dictates status, one's possessions become a

substitute indicator of the individual worth value, wealth & so forth.

Members of specific social class differ in terms of what they consider

good taste. So, social class is also an important variable in

determining where a consumer shops. That's why marketers have

always catered to give them an edge, whether real or imagined, over

their pears.

IV) Social Group Influences: It can be viewed as a collection of people

who have a sense of relatedness resulting from some form of

interaction with one another. There are different types of reference

groups & each group has its own status, norms, role, socialization &

power.

REFERENCE GROUPS:

It refers to group that serve as trams of reference for individual in

their judgment, beliefs, purpose & consumption behavior. These

reference groups are highly relevant and potent influence in

consumer’s decision-making. To attract consumers a no of

promotional strategies are used & one of them is Reference group

appeal. There are helpful in increasing: brand awareness & serve to

reduce perceived & guide the individual value & behavior.

V) Family:

The family is a major influence on the consumption behavior of its

members; it is also the prime target market for most product

categories. Familiars can be defined as two or more person related by

blood, marriage or adoption that reside together. The basic function of

a family is the provision of economic & emotional support; childhood

socialization & a suitable life style for its members of consumer’s

related role of family members include influences, gatekeeper,

deciders, buyers, users, maintainers & disposers. Thus, the family

operates an economic unit, earning & spending money & the family

functions directly in the role of ultimate consumption. Each family

member influences the purchase decision. Family members have

individual and collective consumption priorities. Thus, the marketers

need to understand the nature, the family's influence on its members &

the way in which the purchase decision are made by the members.

The stages of a family's life cycle also influence the consumer

behavior.

VI) Personal factor/influence:

(a) Demographic factor & life cycle stage: The first factor influence a

buyer's decision is his age. There are certain physiological difference

between men & women, which result in there having different

consumption needs.

The consumption behavior is also influenced by the specific stage of

the family life cycle, which are as follows-

 Single stage (Young unmarried people living away

from home)

 Young newly married (no children)

 Full nest I (Youngest child under 6)

 Full nest II (Youngest child over 6)

 Empty nest I; older (married couples, no children

living at home, house hold head still working)

 Solitary Survivor - In (Labour Force)

 Solitary Survivor: Retired.

b) Education & Occupation: Education widens a person's horizon,

refines his tastes and makes his outlook more cosmopolitan. An

educated person as compared to somebody less educated is more

likely to consume educational facilities, books, magazines and other

knowledge oriented products and services. The occupation also shapes

the consumption needs. Some people require specialized equipment

for the purpose of their job.

c) Income: Income here means the income available for spending (i.e.

income after tax, provident fund and other statuary deduction). The

person's attitude towards spending versus saving and his borrowings

power are also important influencing factors.

d) Personality: Personality is defined as those inner psychological

characteristics that both determines and reflect how a person

responses to his environmental stimuli. Personality is enduring and

ensures that a person’s responses are consistent over time.

e) Life Style: Life styles are the pattern in which people live, as

expressed by the manner, in which they spend money and time on

various activities and interests. It is a function of opinion, social class,

demographic factors and personality etc.

f) Other Influences: This is the general category encompassing

influences on consumers. The influence might be the effects of media

i.e., whether consumer's behavior is more influenced by print media or

the electronic media. Other influences including physical

surroundings, the interpersonal setting, national events and other

situational variables.

2. INDIVIDUAL DETERMINANTS OF BEHAVIOR:

These variables influence how the consumer proceeds through a de-

cision process regarding products and services. The various individual

determinants are :

a) Consumer needs and motivation: Consumer has different needs and

attitudes towards any good and services and they accept different

goods or services with the expectation that they will satisfy their

needs. Motives are the internal factors that energize behavior and

provide guidance to direct the activated behavior. Involvement

describes the personal relevance or importance that consumer

perceives in a given purchase situation.

b) Perception: Perception can be defined as "how we see the world

around us;" Perception helps to explain the phenomenon of why

different individual responds definitely to the same stimulus under

same conditions.

c) Learning and Memory: Learning can be viewed as very significant

for marketer as it implies that consumers can be made to learn the

desired behavior through an interplay of motives stimuli, cues,

responses and reinforcements. Learning refers to the skill and

knowledge gained from part experience, which one tends to apply to

evaluate future decisions learning and memory processes can help to

understand that war frequency is needed to repeat, advertising

messages, how visual symbols and other techniques can facilitate

consumers learning and memory regarding products and how

consumer develop habitual purchase pattern for some goods.

d) Beliefs and Attitudes: A belief is a descriptive thought that a person

has about something. The belief may be based on some real facts or it

may merely be a notion or opinion that the person has. Attitude is a

person's enduring facing evaluation and tendency towards a particular

idea or object Attitudes strongly influence how consumers will act and

react to products and services and how they will respond to

communication that marketers develop to convince then to purchase

their products.

Thus, there were the various factors, which influence the consumer

behavior.

MOTORCYCLE

The motorcycle segment is dominated by 4 major players viz. HERO

HONDA, BAJAJ, TVS, ROYAL ENFIELD. Besides there are players like:-

HONDA(itself alone), LML,KINECTIC. The market share of each of the

player is as given below.

Near 70% of the motorcycle sales is from Indi-Japanese motorcycles

and rest coming from Indian motorcycle manufacturers. The Indo-Japanese

segment is catered by 4 to 6 models from each of the players viz. . HERO

HONDA, BAJAJ, TVS, ROYAL ENFIELD etc. But majority of sales is of

100cc to 125cc motorcycles. The Indo-Japanese motorcycles are costlier due

to import content and royalty payments to their Japanese collaborations. But,

These motorcycles are far ahead of Indian Manufacturers viz. Rajdoot from

EYML, Yexzdi from IDEAL JAWA; in terms of technology and fuel-

efficiency.

MARKET SHARE IN THE MOTORCYCLE SEGMENT

Sources:-- SIAMINDIA

The expanding Indian market, the growing size of the middle class and the

rise in aspirations of the youth along with opening up of the Indian economy

have collectively influenced the steady growth of the two wheeler market in

India. With leading foreign brands in collaborations with Indian

manufacturers entering the Indian market, the customer could not have asked

for more. In fact, the Indian bike market has grown immensely and the

preference for variety, looks, design has brought in a number of models in

the market. In the last 2 to 3 years, the craze for motorcycle over the scooters

has picked up and one can find today even girls craving for a motorbike. Not

only in the Metros but in small towns and cities also.

Trying to catch up with these, manufacturers are busy working out

customer profiles. With the competition hotting up one can find a host of

discounts including: cash rebates and free accessories to push sales of the

commuter bikes. Certain changes are also visible as far as customer

preferences are concerned. The basic 100cc bike market is suddenly

experiencing a slow down in the growth. This Commuter bike was a favorite

HERO HONDA 46.8%

HONDA 3.2%

TVS 9.4%

BAJAJ 24.6%

ROYAL ENFIELD 2.8%

LML 9.2%

KINETIC 4%

till the other day commanding up to 90% of the total bike sales. The shift

towards 100cc plus bikes is suddenly discernable and the segment is

expected to double in the next year itself.

Manufacturers are now rushing in to introduce bikes in this segment.

Bajaj had recently launched a spruced up version of its Caliber and is also

planning to upgrade the Pulsar-Dtsi higher on the power ladder. Hero Honda

is also upgrading its line-up to keep pace with the shift in demand by

launching: Ambition 135, CBZ star, Karizma etc.

But it’s not yet end of the road for the basic entry-level bike. We are

witnessing segmentation in the bike market, like the Bike market. The entry

level model will continue to be a high-interest segment for the aspirants.

Against this backdrop, the present project work has been undertaken.

With the focus of the consumer shifting to brand and product features, the

project is a study aiming at understanding what does a customer wants from

Power segment bikes(150cc & plus).

(In today’s challenging & competitive world of fast changing

technology, consumer tastes are also characterized by fast changes. So, to

survive in the market, a firm has to be constantly innovating and understand

the latest, consumer trends, tastes and preference. Consumer behavior

provides invaluable dues and guidelines to market on new technological

frontiers, which they should explore. It is realized by studying the buying

behavior of consumers that many consumer products that they felt reflected

their own special needs, personalities and lifestyles. To better meet the needs

of specific groups of consumers, most marketers adopted a policy of market

segmentation & successfully market to different segments the marketing

manager needs appropriate marketing strategies, which he can design only

when he can understand the factor, which account for these difference in

consumers behavior.

The most important reason for studying consumer behavior is the

significant role it plays in our lives. It plays a vital role in decision-making.

As consumer significantly affected certain decision's behavior or expected

actions. So, consumer behavior is said to be an applied discipline. Such

applications can exit at two different levels of analysis. The Micro

Perspective & Societal perspective. The micro perspective involves

understanding consumers for the purpose of helping a firm or organization

accomplish its objectives. The societal perspective can provide insight into

aggregate economic & social trends and can perhaps even predict such

trends. It may suggest ways to increase the efficiency of the mkt system &

improve the well being of people in society.

Major Players and Products Offered

As India is very potential market for two-wheeler. There are a number

of players competing with one another. In the mean time, there are 5 major

players fighting for an approx. two wheelers market of 50.18 lakh two-

wheelers annually. The structure of the industry has changed during the last

decade with a number of small companies being taken over by major

players. But, the competition has just begun to hot up with coming up of

MNCs. The major players are as follows:

1) HERO HONDA

Hero Honda has a reputation of being the most fuel-efficient and the

largest selling Indian motorcycle. Its commitment of providing high value

products at reasonable prices, led the world’s largest manufacturer of

motorcycles to collaborate with the world’s largest bicycle manufacturer.

It was this affinity in working cultures of HONDA Motor Company of

Japan and the HERO Group, that resulted in the setting up of the HERO

HONDA MOTORS LTD.

It’s main models are:

Commuter Bikes:-- * CD 100 * Splendor * Passion * CD-Down

Power Bikes:-- * Ambition 135 * CBZ * Karizma

2) BAJAJ

It is one of the Indian’s top 10 companies in terms of market

capitalization and among the top 5 in terms of annual turnover.

Established in 1945, it was incorporated as a trading company.

From 1948 till 1959, it imported scooters and three wheelers from

Italy and sold them in India. It then obtained a production license in

1959 and struck a technical collaboration with PIAGGIO of Italy in

1960. Now, it offers its offerings in all segments viz. mopeds,

scooters, scooterettes, motorcycles, three wheelers etc.

It’s main models are:

Commutor Bikes:-- * Caliber * CT100 * 4S Champ * Boxer

Power Bikes:-- * Pulsur * Pulsur-Dtsi * Discover * Eliminator

3) LML

LML is one of the leading scooter manufacturer in the country,

with a 30% market share in volume terms with its popular scooter

brand ‘Supremo’. It plant to facilitate authorized dealers with a

WAN(Wide area Network).

Now, as the trend is changing very fastly from scooters to bikes

from 2000, LML also entered into the field of bikes manufacturing.

It’s main models are:

Commutor Bikes:-- * Energy * Adreno

Power Bikes:-- * Graphtor

4. TVS

TVS is also a leading two-wheeler company began under with the

vision of the founder of the Sundaram Clayton Group the late Mr.

T.S.Srinivasan to design, develop and produce an affordable moped

for the Indian family.

Alongside the economy two wheeler range, it has constantly worked

on innovations in its motorcycle segment also. TVS continues to keep

one step ahead of its time by creating India’s first % speed gears bike.

It’s major models are:

Commutor bikes:-- * Suzuki Max 100 * Suzuki Max R * Suzuki

Samurai

Power Bikes:-- * Fiero * Fiero2

5. ROYAL ENFIELD

Established in 1955, Royal Enfield Motors is now a part of the Eicher

Group of companies- a Rs.10 billion conglomerate.

Royal Enfield’s corporate philosophy is built around quality and

unflinching loyality to the customer. It too from time to time by its

innovation introduced new bikes to maintain customer loyality.

It’s major models are:

Power Bikes:-- * Bullet STD12V * Bullet 500 * Bullet Machismo

6. KINETIC

Kinetic engineering Ltd. Is founded in the year 1970, is the leading

manufacturer and exporter of 2- wheelers. Born of the vision of late

Mr. H.K. Firodia, Kinetic Engineering Ltd; has produced very useful

bikes for over 2 decades.

It’s major models are:

Commuter bikes:- * Challenger * Beamer

7. HONDA

HONDA ,Japan is the world’s largest motorcycle manufacturer in the

world. It had already a collaboration with the HERO group,India to produce

bikes in India. Now, It launches its own bikes in India on its own too. Honda

group is the leading motor cycle company in terms of manufacturing and

latest technology.

It’s main model is :

Power Bike:-- * Unicorn

Significance of the study

 To know about the consumer buying behavior and factor which Influence customer to purchase the product.

 To know about the consumer preference and decision.

 To know the market shares that the company holds.

 To know the factors which influence customer to making there purchasing decision

 To find the promotional channel which creates more awareness about the bike available in the market.

Objectives of the study

 To identify the factor which influence the consumer behaviour

while selecting a particular brand.

 To ascertain consumer’s awwreness about various brands and

models of two wheelers.

 To extract the source of information through which buyers

came to know the various brands.

 To identify the most favourable choice of two wheelers.

 To provide the various suggestion to serve the consumer better.

 To determine the decision maker.

 To study the brand preferences of buyers.

LITERATURE REVIEW

Once the problem is formulated, the researcher undertakes an

extensive literature survey related to problem. The literature survey

undertaken here includes books and different websites from the

internet.

The research project was to know the Customer Perception and Attitude towards selected brands of 100c.c. bikes (TVS,HONDA HONDA and BAJAJ), Between the age group of 18-24 years in yamuna nagar on the basis of Price, Brand name

and After sale services -A case study of Yamuna Nagar”

Schiffman. G. Leon and kanuk lazare Leslie 1 - Study of the

customer behaviour is the study of how individuals make decisions

to spend their available resources (Time, Money and Efforts) on

consumption related items. It includes the study what they buy,

whey they buy it, when they buy it, where they buy it, how often

they buy it and how often they use it. The primary purpose for the

study consumer behaviour as apart of marketing curriculum is to

understand how and how customers make their purchase decisions.

There insights enable marketers to design more effective marketing

strategies.

Gupta.C .B and Dr. Nair. N.Rajan 2 - A business is based

on understanding the customer and providing the kind of

products that the customer wants.

Mamoria C.B. and Mamoria Satish 3 - Consumer

behaviour is the process where by individuals decide what,

when, where, how and from whom to purchase goods and

services. Buying behaviour may be viewed as an orderly

process here by individual interacts with his environment for

the purpose of making market decision on products and

services.

Nair Suja. R.4 - The success of the firm will be determined

by how effective it has been in meeting the diverse customer

needs and wants by treating each customer as unique and

offering products and services to suit his/her needs.

Bennett Peter.D. And Kassarjian Haroldh 5 - A great deal

of research activity in marketing is design to shed light on the

customer decision process.

Kothari C.R.6 For data analysis different statistical

techniques are being used such as scaling techniques,

correlation, and regression. Scaling technique helps in

analyzing the qualitative data.

 http://www.tvsapache.com/home.aspx  http://www.bajajauto.com/pulsar/  http://www.honda2wheelersindia.com/unicorn/ride_n_fly/be

_a_wing_rider.asp  http://auto.indiamart.com/motorcycles/

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