TERM PAPER

Submitted to- Mr. Ajay Chandel

Sub- Consumer Behavior
Topic- Students motive for buying a four wheeler

Submitted by:
ARUN CHAUDHARY
MBA 3rd SEM
ROLL NO-RR1802B31
REGD NO- 10810504
GROUP-2(S.No- 6)
ACKNOWLEDGEMENT

This term paper bears the imprint of many people and without their support it
would not have existed. First of all I would like to express my sincere ineptness
and profound sense of gratitude to my parents whose support in all manners had
made me capable to complete this project.
I acknowledge my deepest thanks to Mr. Ajay Chandel for all his care
and encouraging words and given suggestions at different point of times. At the
outset I would like to put on record my sincere gratitude to all of my friends for
giving me valuable ideas throughout of my project.

Arun Chaudhary

TABLE OF CONTENTS
• EXECUTIVE SUMMARY
• NEED AND SCOPE OF STUDY
• OBJECTIVES
• LITERATURE REVIEW
• THEORETICAL FOUNDATION
• RESEARCH METHODOLOGY
• DATA ANALYSIS AND INTERPRETATION
• FINDINGS
• CONCLUSION
• BIBLIOGRAPHY
• ANNEXURE

Executive Summary
Competitive pressures and increasing complexity have led automotive companies to look for an
edge wherever they can find it. Improved consumer insight into vehicle shopping and buying
behaviour can provide that valuable advantage. This report contains insight that can help vehicle
manufacturers and dealers develop and execute more effective strategies in areas such as sales,
marketing and advertising, after sales service, Customer Relationship Management (CRM) and
manufacturer/dealer collaboration specially when are targeting students. Various motives behind
purchasing of a car have been described in the study.

SIGNIFICANCE OF THE STUDY

The study of buying motives is very important in framing price policies, product policies, and
distribution policies and also in designing the sales promotion programmes. It is important for
the marketers to understand the buyer motives due to the following reasons.

• It is helpful in understanding the buying motives and preferences of different customers.

This enables the marketer to design appropriate marketing strategies.

• It helps to plan and modify products according to the taste and preference of customers.

• It is also helpful in framing suitable pricing policies.

• It is also helps in determining advertising budget.

• It helps in planning and designing sales promotion strategies.

Objective of my study
• TO STUDY THE MOTIVATIONAL FACTORS WHICH
ENCOURAGE STUDENTS TO PURCHASE CARS?
• TO STUDY THE FACTORS WHICH AFFECT THE
PURCHASE DECISION OF STUDENTS?
LITERATURE REVIEW
Article 1- CONSUMER BEHAVIOR: THE PSYCHOLOGY OF MARKETING
(International journal on marketing may 2006)
Analysis- this article focuses on following points:

• The psychology of how consumers think, feel, reason, and select between different
alternatives (e.g., brands, products);
• The psychology of how the consumer is influenced by his or her environment (e.g.,
culture, family, signs, media);
• The behavior of consumers while shopping or making other marketing decisions;
• Limitations in consumer knowledge or information processing abilities influence
decisions and marketing outcome;
• How consumer motivation and decision strategies differ between products that differ in
their level of importance or interest that they entail for the consumer; and
• How marketers can adapt and improve their marketing campaigns and marketing
strategies to more effectively reach the consumer.

Article 2- Consumer's Decision Making- Preeminent Tool to Analyze Consumer Behaviour

(http://www.articlesbase.com/marketing-articles/consumers-decision-making-preeminent-tool-
to-analyze-consumer-behaviour-40412.html)
Analysis - Consumer's behavior under this article is based on information seeking and processing
attributes usually directed by a goal. For instance, buying a tooth paste from shop can have a
certain goal of choosing product that can taste good. Based on general perception about most
acknowledged and common ‘cognitive view', Batra & Kazmi (2004) asserts broader stages of a
consumer's decision making process that includes problem identification (feeling need of a new
car), information search ( on internet and showrooms), evaluation of alternatives (comparing
brands, for instance' on basis of repute and features), outlet selection and purchase ( purchasing
selected item) and post-purchase action (satisfaction or dissonance).

Article 3- Responding to Changing Consumer Trends and Buying Behaviour

(article by John Frankfin, Professor University of Michigan)
Analysis- This article describes that how with changing time consumer behavior towards
purchasing cars have changed. Now before purchasing a new car they go for extensive
research and now even the preferences have been changed. This article throw light on
this issue only.

Article 4- Consumer Behaviour: Turning to the Web and New C2C Tools

Consumers today have a multitude of sources from which to gather information during the
vehicle buying process, but the Internet tops the list. The web has become a standard resource in
the shopping process for eight out of 10 consumers when researching car purchases. However,
the way they use it is changing. As the web matures, vehicle buyers are visiting fewer sites and
focussing more on manufacturer and C2C websites and less on third-party information sites and
independent e-tailer sties.
Article 5- Marketing Changes in Consumer Buying Behaviour in Indian Scenario

Analysis -The Indian consumers of today are unique in the following respects:
1) Indian consumers have become value sensitive and are not much price sensitive as was the
case earlier. If they feel that a particular product offers them more value and its price is high,
even then they are willing to buy the product.
2) The Indian consumers strictly follow their culture, tradition and values, as a result of which
foreign companies were forced to give an Indian touch to them in order to succeed in India.
McDonalds, MTV, Pepsi, Star TV, Coca Cola India and many more had to Indianise themselves
to flourish in India. Karva Chauth is celebrated with more zeal and enthusiasm than the
Valentine Day.
3) The Indian consumer of today gives preference to features of a product rather than its brand
name. The trend that higher segment consumers only buy the top brands has also come to an end.
4) Even after liberalization Indian companies and brands are doing very well. It is clearly evident
from the fact that despite many foreign brands being sold in India, Raymond is still India’s
largest textile company and Haldiram is doing well despite the presence of McDonalds and Pizza
Hut.
5) The consumers today are not confined to a single brand and prefer change rather than sticking
to the same brand. Not often do we see any home with cars of the same brand or household
products of the same brand.
6) The use of credit card for shopping is a new emerging trend in India. Also consumers are
availing credit or loan from banks and other financial institutions to fulfill their needs and wants.
7) The Indian consumers are spending thick and fast on premium and luxury products.
8) The Indian consumers have shown another major change in their buying behaviour. They just
don’t want availability of products, they also want better experience, services and ambience. This
has led to the growth of shopping malls where shopping, entertainment and better facilities are
all available under one roof.
9) The rural Indian consumers are also showing signs of change. They have all the modern
amenities at their home and their standard of living is fast improving. The rural households have
earned huge money due to price rise in real estate. They are also shifting towards industrial and
services sector, hence their purchasing power is increasing. It is reflected in their living standard
and possession of all electronic gadgets and luxury cars.
10) There is a stiff competition in the Indian market today and it has become a buyer’s market
from seller’s market. Customers are the ultimate beneficiary of the fierce competition in the
market. Competition has reduced prices to a great extent and has forced the manufacturer to
maintain product quality to sustain in the highly competitive market.

Article 6- Social group influence on buyers

It is the customer, who makes the decision of buying something, right? But how does he/she
reach to that decision? There's a complete procedure and different stages to this
decision and as a marketer, you must know the process. For the reason that you are not
going to win a customer unless you are well in terms with the factors that influence the
buying behavior.
Article 7- How Customers Can Take Their Satisfaction Into Their Own Hands

It is fair to say that most consumers choose a desired product or service based on price, a good
sales pitch, appealing advertising or simply because it is a once in a lifetime offer. Whatever
the motive for buying, the implicit objective is to obtain value for money. For each
consumer the definition of value for money may be different but ultimately clients are
content if their expectations are met.
 THEORETICAL FOUNDATION
AUTOMOBILE INDUSTRY IN INDIA
In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that
Indian automobile industry will achieve mass motorization status by 2014.

Industry Overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile
Industry of India has come a long way. During its early stages the auto industry was overlooked
by the then Government and the policies were also not favorable. The liberalization policy and
various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian
Automobile Industry.
Indian auto industry, which is currently growing at the pace of around 18 % per annum, has
become a hot destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an economy, and
India is no exception to it. With the growth of transportation system the Automotive Industry of
India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian
economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can
be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.

Snippets

• The first automobile in India rolled in 1897 in Bombay.

 • India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of the segment size.
• Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle market.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the world.
• The number one global motorcycle manufacturer is in India.
• India is the fourth largest car market in Asia - recently crossed the 1 million mark.

Segment Know how

Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda
contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS
makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market
share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger
cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds
42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata
Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.

Miscellaneous
Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country
by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area
of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions
and insurance services to create a complete range of services required for both auto companies
and customers. It will also have a multi-purpose convention centre for auto fairs and product
launches.

The following links gives the complete picture of Indian Auto Industry:

The first auto vehicle rolled out in India at the end of 19th century.
Today, India is the the 2nd largest tractor and 5th largest commercial
Automobile History vehicle manufacturer in the world. Hero Honda with 1.7M motorcycles a
year is now the largest motorcycle manufacturer in the world.

On the cost front, OEMs eyeing India in a big way to source products
and components at significant discounts to home market. On the revenue
Industry Investment
side, OEMs are active in the booming passenger car market in India.

The passenger car and motorcycle segment in Indian auto market is

growing by 8-9 per cent. The two-wheeler segment will clock 11.5% rise
Industry Growth
by 2007. Commercial vehicle to grow by 5.2 per cent.

India is the 11th largest Passenger Cars producing countries in the world
and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4-
Vehicle Production wheelers manufacturer. Hero Honda is the leading 2-wheelers
manufacturer.

Auto Export Passenger vehicle exports have grown over five times and two-wheeler
exports have reached more than double. Exports of auto components,
whose manufacturing costs are 30-40 per cent lower than in the West,
have grown at 25% a year between 2000 to 2005.
 Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors
India is the second largest player in passenger car market. Tata Motors is
Auto Companies the fifth largest medium & heavy commercial vehicle manufacturer in
the world.

Know about the number of vehicles registered as Transport or Non-

Vehicle Distribution Transport in the Indian states and Union Territories.

Get all the contact details of Automobile Association of Upper India

(AAUI), Automotive Research Association of India (ARAI), Automobile
Associations
Association of Southern India (AASI), Automotive Component
Manufacturers Association of India (ACMA) and more

Major Manufacturers in Automobile Industry

• Maruti Udyog Ltd.

• General Motors India
• Ford India Ltd.
• Eicher Motors
• Bajaj Auto
• Daewoo Motors India
• Hero Motors
• Hindustan Motors
• Hyundai Motor India Ltd.
• Royal Enfield Motors
• Telco
• TVS Motors
• DC Designs
• Swaraj Mazda Ltd
Government has liberalized the norms for foreign investment and import of technology and that
appears to have benefited the automobile sector. The industry has adopted the global standards
and this was manifested in the increasing exports of the sector. After a temporary slump during
1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in
2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02.

Anticipating Consumer Changes

What do these findings tell us? They make it clear that consumer behaviour is evolving and that
automotive companies need to anticipate this evolution in order to be part of, or even influence,
the changes.
Effective web strategies will be vitally important, as the online landscape evolves rapidly with
the emergence of powerful consumer-to-consumer tools like blogs, discussion forums, social
networking sites and virtual worlds. Automotive companies will need to stay focussed on
environmental developments and evolving consumer attitudes about fuel-efficient and
alternative-fuel vehicles.
Manufacturer/dealer collaboration in the form of effective retail integration and integrated lead
management will become more important than ever to satisfy increasingly sophisticated and
demanding consumers and to retain loyalty. And companies will need to establish and maintain a
true two-way dialogue with individual customers through personalised communication.
MOTIVATORS FOR STUDENTS FOR PURCHASING A FOUR
WHEELER

PERSONAL SELLING:
CONSUMER BUYING BEHAVIOR

CONSUMER BUYING vs. ORGANIZATIONAL BUYING

Final (or ultimate) consumers purchase for:

• personal,
• family, or
• household use

Organizational consumers purchase for:

• further production,
• usage in operating the organization, and/or
• resale to other consumers

In case of students almost all of them final consumers or they are the ultimate users of the
cars. It is rarely possible that a student does an organizational buying.

Consumer (students) Buying Behavior

The decision processes and acts of final household consumers associated with evaluating,
buying, consuming, and discarding products for personal consumption
Consider the purchase an automobile. You generally will not consider different options until
some event triggers a need, such as a problem needing potentially expensive repair. Once this
need has put you "on the market", you begin to ask your friends for recommendations regarding
dealerships and car models. After visiting several dealerships, you test drive several models and
finally decide on a particular model. After picking up your new car, you have doubts on the way
home, wondering if you can afford the monthly payments, but then begin to wonder if instead
you should have purchased a more expensive but potentially more reliable model. Over the next
five years, the car has several unexpected breakdowns that lead you to want to purchase a
different brand, but you have been very happy with the services of the local dealership and
decide to again purchase your next car there.

In this particular case, the following generic model of consumer decision making appears to
hold:

=====>need recognition
=====>information search
=====>evaluation of alternatives
=====>purchase decision
=====>post purchase behavior

Now consider the purchase of a quart of orange juice. You purchase this product when you do
your grocery shopping once per week. You have a favorite brand of orange juice and usually do
your grocery shopping at the same store. When you buy orange juice, you always go to the same
place in the store to pick it up, and never notice what other brands are on the shelf or what the
prices of other brands are. How is it that the generic model above works differently in this
second scenario? Why does it work differently? Why would we generally need the ministrations
of a sales person in the sale of a car, but we generally do not need the help of a salesperson in the
purchase of orange juice?

How can the marketer of orange juice get a consumer like you to exert more effort into
information search or to consider alternative products? How is it that the marketer of your brand
got you to ignore alternative competing brands? What is the involvement of salespeople in sales
promotions that might be associated with products such as orange juice?

Consumer behavior researchers are not so interested in studying the validity of the above generic
model, but are more interested in various factors that influence how such a model might work.

INFLUENCES ON THE GENERIC MODEL

• External
o Group
-e.g., cultural, family, reference group influences
o Environmental/situational
-e.g., time of day, temperature and humidity, etc.
• Internal
o Lifestyle, personality, decision making process, motivation, etc.

GROUP INFLUENCES ON STUDENT BUYING BEHAVIOR

Culture
The set of basic values, beliefs, norms, and associated behaviors that are learned by a member of
society.

Note that culture is something that is learned and that it has a relatively long lasting effect on the
behaviors of an individual. As an example of cultural influences, consider how the salesperson in
an appliance store in the U.S. must react to different couples who are considering the purchase of
a refrigerator.

Social Class

A group of individuals with similar social rank, based on such factors as occupation, education,
and wealth. Here we can say that the social class for the students will be their colleagues only.

Reference Groups
Groups, often temporary, that affects a person's values, attitude, or behaviors

• E.g., your behaviors around friends at school/college are probably different from your
behaviors around your parents, no matter your age or stage in the family life cycle. If you
were a used car salesperson, how might you respond differently to a nineteen year old
prospect accompanied by her boyfriend from one accompanied by two girlfriends?
• Opinion leader

A person within a reference group who exerts influence on others because of special
skills, knowledge, personality, etc.

o You might ask the webmaster at work for an opinion about a particular software
application. Software manufacturers often give away free beta copies of software
to potential opinion leaders with the hope that they will in turn influence many
others to purchase the product.
• Family
A group of people related by blood, marriage, or other socially approved relationship. In
case of students their decision is affected is most by this only and the reason being that
they are ultimately financed by their parents or any other family member in most of the
cases.

ENVIRONMENTAL / SITUATIONAL INFLUENCES ON STUDENT

BUYING BEHAVIOUR BEHAVIOR

Circumstances, time, location, etc.

Do you like grapes? Do you like peas?

You might like grapes as a snack after lunch, but probably not as a dessert after a fancy meal in a
restaurant. You might like peas, but probably not as a topping on your pancakes. Everyday
situations cause an interaction between various factors which influence our behaviors. If you
work for tips (a form of incentive related to commission) as a waiter or waitress, you must
certainly be aware of such interactions which can increase or decrease your sales.

If you are doing your Saturday grocery shopping and are looking for orange juice, you are
probably much more sensitive to price than if you stop at the quick store late at night, when you
are tired and cranky, after a late meeting at the office. A prospect shopping for a new automobile
while debating the wisdom of a necessary expensive repair to his car might be more interested in
what cars are on the lot than in shopping for the best deal that might involve a special order.

INTERNAL INFLUENCES ON STUDENT BEHAVIOR

Personality

A person's distinguishing psychological characteristics that lead to relatively consistent and

lasting responses to stimuli in the environment

We are each unique as individuals, and we each respond differently as consumers. For example,
some people are "optimizers" who will keep shopping until they are certain that they have found
the best price for a particular item, while other people are "satisficers" who will stop shopping
when they believe that they have found something that is "good enough." If you are a salesperson
in a retail shoe store, how might you work differently with these two personalities?

Lifestyle and Psychographics

• Lifestyle is a pattern of living expressed through a person's activities, interests, and

opinions
• Psychographics is a technique for measuring personality and lifestyles to developing
lifestyle classifications

Motivation: Multiple motives

Students usually have multiple motives for particular behaviors. These can be a combination of:

• Manifest
known to the person and freely admitted
• Latent
unknown to the person or the person is very reluctant to admit

Note: different motives can lead to the same behavior; observing behavior is not sufficient to
determine motives.

Such various motives forces an individual/student whaen actually want to make a purchase for
the product.

How might a salesperson discover these motives? What features should a salesperson
emphasize?

CONCEPTUAL FRAMEWORK
 Introduction to buying motives Consumer or buyer is the central figure of all marketing
activities. It is the consumer who determines the growth, prosperity and even existence of a
business enterprise. Hence the marketer should always feel the pulse of customers. In order to
understand the pulse of the customers, the marketer needs to understand fully the working of
buyers mind. It helps him to plan his production and distribution to suit to the needs and
convenience of customers‘ .It also helps him to plan suitable marketing strategies. Thus it is very
essential for every marketer to know his customers buying motives.

Buying motives Motive is a strong feeling, instinct, desire or emotion that makes a person to do
something. When a motive makes a person to buy a product, then it becomes a buying motive.
Thus buying motive means the influence and considerations which makes a customer to buy a
particular product. According to D.J.Duncan, ―buying motives are those influences or
considerations which provide the impulse to buy, induce action or determine choice in the
purchase of goods and services‖. Buying motives are mainly two types, manifest motives and
latent motives. Manifest motives are those motives which are known to the customer and also
ready to admit them. But on the other hand latent motives are either known to the customer.
Buying motive can also be calculated as follows
1. Product or patronage motives

2. Emotional and rational motives

3. Inherent and learned motives

Product and patronage motives

a. Product motives: it refers to those influences and reasons which make the consumer to buy a
certain product in preference to another. These explain why people buy a certain product.
Product are of two types:

i. Primary product motives: These motives induce a consumer to purchase general class of the
product. These motives relate to the basic needs of people like hunger, thirst, sleep
ii. Selective product motives: these motives determine which particular brand or item will be
purchased from the general class

b. Patronage motives: these are the motives which determine where or from whom products are
purchased. These are the considerations which induce a buyer to buy goods from specific stores.
Following are the key patronage motives:
i. Price

ii. Location

iii. Quality

iv. Variety

v. Services

vi. Personality of the owner or salesman

Emotional or Rational motives

A. Emotional motives: these are the motives which are affected by the feeling of heart. Thus,
emotional motives are physiological and psychological needs such as thirst , hunger, sex
attraction etc. The emotional motives are of the following types;

i. Sex or romance

ii. Love of others

iii. Social acceptance motive

iv. Vanity motive

v. Recreation and relaxation motive

vi. Curiosity motive

vii. Emulative motive

viii. Comfort and convenience motive

B. Rational motives: these are the motives where a consumer takes the decision of purchasing a
product by his head and means i.e., after careful consideration and logical thinking. In making
rational purchases, the consumer considers price, durability, dependability, efficiency etc.
Rational motives are of the following types:

i. Monetary gain

ii. Efficiency in operation

iii. Dependability motive

Inherent and Learned motives

A. Inherent motives: these are the motives for the satisfaction of which a consumer his best
efforts and if these motives are not satisfied he feels mental tension.
B. Learned motives: these are the motive which are acquired or learned by a consumer from the
environment and education. These motives are social status, social acceptance, religious belief,
fear, security etc.

Involvement
Has to do with an individual's

• intensity of interest in a product and the

• importance of the product for that person

The purchase of a car is much more risky than the purchase of a quart of orange juice, and
therefore presents a higher involvement situation. This modifies the way that the generic model
works.

As involvement increases, consumers have greater motivation to comprehend and elaborate on

information salient to the purchase. A life insurance agent, for example, would typically be more
interested in contacting a young couple who just had a baby than an eighteen year old college
student - even though the new parents might be struggling to make ends meet while the student is
living more comfortably. Although the annual investment into a policy is much lower if started at
a younger age, most young college students are not open to thinking about long term estate
planning. A young couple with a new child, however, is much more open to thinking about
issues associated with planning for the child's future education, saving to buy a house, or even
saving to take an extended vacation upon retirement.

TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES

Routinized

• used when buying frequently purchased, low cost items

• used when little search/decision effort is needed
• e.g., buying a quart of orange juice once per week

Limited Problem Solving

• used when products are occasionally purchased

• used when information is needed about an unfamiliar product in a familiar product
category

Extended problem solving

• used when product is unfamiliar, expensive, or infrequently purchased

• e.g., buying a new car once every five years

Under what sorts of conditions the assistance of a salesperson would be needed? Not needed?

Usually student go through a extended problem solving before making their purchase decision
because they want to purchase a car which would suit their personality, increase their position in
fronts of friends etc. so before making final decision the go through a problem solving research.

POST-PURCHASE CONSUMER BEHAVIOR

Satisfaction

After the sale, the student will likely feel either satisfied or dissatisfied. If the student believes
that s/he received more in the exchange than what was paid, s/he might feel satisfied. If s/he
believes that s/he received less in the exchange than what was paid, then s/he might feel
dissatisfied. Dissatisfied students are not likely to return as customers and are not likely to send
friends, relatives, and acquaintances. They are also more likely to be unhappy or even abusive
when the product requires post-sale servicing, as when an automobile needs warranty
maintenance.

The above idea can be modeled as Humans' basic exchange equation:

Profit = Rewards - Costs

Unfortunately, even a student who "got a good deal" with respect to price and other terms of the
sale might feel dissatisfied under the perception that the salesperson could have made even
better.

This idea is called equity theory, where we are concerned with:

Outcomes of A
Inputs of A

vs.

Outcomes of B
Inputs of B

Consider, for example, that you have purchased a used car for $14,000 after finding that the
"e;blue book" value is listed at $16,000. You are probably delighted with the purchase until you
accidentally meet the prior owner who had received a trade-in of $10,000 on the car just a few
days before. That the dealer appears to have received substantially greater benefit than you could
lead to extreme dissatisfaction, even though you received good value for the money spent.
(Note that the selling dealer might actually have paid $12,000 for the car at a statewide dealer's
auction, and then might have incurred another $1,000 in expenses associated with transporting
the car and preparing it for sale. Management of buyer perceptions is very important!)

An issue related to this is attribution theory. According to attribution theory, people tend to
assign cause to the behavior of others. Mary's life insurance agent advises her to purchase a
whole life policy, while her accountant advises her, "buy term insurance and invest the
difference.". The reason, explains the accountant, "is that insurance agents receive substantially
higher commission payments on sales of whole life policies."

If Mary believes that the insurance agent is recommending a product merely because he receives
a higher commission, she will likely be displeased with the relationship and will not take his
recommendation. If the agent is able to show Mary that the recommended product is the best
solution for her situation, then she will likely attribute his recommendation to having her best
interests in mind and will not be concerned about how it is that he is compensated for his
services.

Cognitive dissonance

It has to do with the doubt that a person has about the wisdom of a recent purchase

It is very common for people to experience some anxiety after the purchase of a product that is
very expensive or that will require a long term commitment. Jane and Fred, for example, signed
a one year lease on an apartment, committing themselves to payments of $1500 per month. A
week later, they are wondering if they should have instead leased a smaller $900 apartment in a
more rough part of town; they are not sure if they really can afford this much of a monthly
obligation. Dick and Sally, on the other hand, ultimately rented the $900 apartment, and now are
wondering if the savings in rent will be offset by noisy and sometimes unsafe conditions in this
neighborhood.

Perhaps neither couple would be experiencing this anxiety if their landlords had given them just
the smallest of assurances that they had made a good decision. After a close on products that are
expensive or that require a long term commitment, the salesperson should provide the prospect
with some reasons to be happy with the decision. Allow the car buyer to reinforce her own
positive feelings by calling her a week after the purchase to ask how things are going. Call the
new life insurance policy holder after two months to see if there are any questions; a lack of
questions can only help the buyer to convince himself that he did the right thing.

RESEARCH METHODOLOGY
Research Problem: -“To study the factors which affect the purchase

behavior of students for buying cars.”

Type Of Research: -

A DESCRIPTIVE RESEARCH DESIGN was used. Considering the time

constraints, descriptive research leading to conclusive result is the most
suitable design for this research.

Source Of Data Collection: -

 Personal discussions (Primary source)

 Questionnaire (Secondary source)
 Articles from internet ( Secondary source)

The questionnaire was designed in such a way to cover as many aspects as

possible.

Sample Design:- CONVENIENCE SAMPLING

Sample Size: - 50

Sample Unit:- INDIVIDUAL

Geographical Location: - Lovely professional university

B. Questionnaire Design: ---

 “A Questionnaire whether it is called a schedule, interview form or measuring instrument is a
formalized set of questions for obtaining information from the respondent”

SOURCES OF DATA:
The data has been collected from both primary and secondary sources, to get information
regarding the study.

PRIMARY DATA:
Primary data has been collected through questionnaires. The questionnaire was mostly related to
likely hood scale and perception of the customers against cars.

SECONDARY DATA:
Secondary data has been taken from bellow sources:
1. Pamphlets
2. Advertisement
3. Newspapers
4. Internet

DATA ANALYSIS AND INTERPRETATION

 1. Do you own a four wheeler?
• Yes

• No

No. of respondents

YES 23

NO 27

Interpretation - no of students owning a car are almost equally distributed. From above we can
see the data ratio is of 27:23 which is approximately equal.

2. Which is your most preffered price brand for buying a four wheeler?
• 1-3 lks

• 3-5 lks

• 5-10 lks

• 10-15 lks

No of respondents

1-3 lks 5

3-5 lks 12
 5-10 lks 23

10-15 lks 10

10-15

5-10

3-5

1-3

Interpretation- fron above we can interpret that maximum no of students prefer range of 5-10
lak as in india maximum range of cars lies in this section only.

3.While making a purchase decision on which factors you focus the most?
• Reliability

• Safety

• Product features

• Price

• Fuel efficiency
Multiple
One way Comparisons
ANOVA
Scheffe
(I) focus (J)
Sum focus
of Squares DfMean Mean Square Std. ErrorF Sig. Sig.95% Confidence Interval
Between Groups 24.847 4 Difference (I-J)
6.212 .488 .745Lower Bound Upper Bound
Reliability
Within Groups Safety
344.028 27-1.50000 12.742 2.91453 .991 -11.1273 8.1273
Total product
368.875 features 311.38889 1.68271 .952 -4.1694 6.9472
Price -.25000 2.30414 1.000 -7.8610 7.3610
fuel efficiency .50000 2.91453 1.000 -9.1273 10.1273
Safety Reliability 1.50000 2.91453 .991 -8.1273 11.1273
product features 2.88889 2.66059 .879 -5.8996 11.6773
Price 1.25000 3.09133 .997 -8.9613 11.4613
fuel efficiency 2.00000 3.56956 .988 -9.7909 13.7909
product features Reliability -1.38889 1.68271 .952 -6.9472 4.1694
Safety -2.88889 2.66059 .879 -11.6773 5.8996
Price -1.63889 1.97315 .951 -8.1566 4.8788
fuel efficiency -.88889 2.66059 .998 -9.6773 7.8996
Price Reliability .25000 2.30414 1.000 -7.3610 7.8610
Safety -1.25000 3.09133 .997 -11.4613 8.9613
product features 1.63889 1.97315 .951 -4.8788 8.1566
fuel efficiency .75000 3.09133 1.000 -9.4613 10.9613
fuel efficiency Reliability -.50000 2.91453 1.000 -10.1273 9.1273
Safety -2.00000 3.56956 .988 -13.7909 9.7909
product features .88889 2.66059 .998 -7.8996 9.6773
Price -.75000 3.09133 1.000 -10.9613 9.4613
Homogeneous Subsets
Scheffe
Subset for
alpha = 0.05
Focus N 1
product features 18 23.1111
fuel efficiency 2 24.0000
reliability 6 24.5000
Price 4 24.7500
Safety 2 26.0000
Sig. .890
Means for groups in homogeneous subsets
are displayed.

Statistics
Focus
N Valid 32
Missing 0
Mean 2.81

Focus
Cumulative
Frequency Percent Valid Percent Percent
Valid reliability 6 18.8 18.8 18.8
safety 2 6.2 6.2 25.0
product features 18 56.2 56.2 81.2
price 4 12.5 12.5 93.8
fuel efficiency 2 6.2 6.2 100.0
Total 32 100.0 100.0
Interpretation: THE MOST FOCUS IS ON PRODUCT FEATURES AS SHOWN BY THE
GRAPH. Here maximum no of students are interested in product features, although brand is also
a considerable point.

4. Which of the following provided you with most significant information for making your
purchase decision?
• Tv advertisement s

• Newspapers &magazines

• Online sources

• Product demos

• Sales representatives

• Experienced users
 No of respondents
Tv advertisement s 28

Newspapers &magazines 2

Online sources 5

Product demos 1

Sales representatives 4

Experienced users 10

Interpretation- from above data we can interpret that advertisement on tv impact the purchase
decisions of students a lot and one of the biggest reason vehind this the celebrity endorsement
done.

5. Why u want to buy a four wheeler?

• Safety

• Economy luxury

• Style
 • Comfort

no of respondents
safety 15
Economy luxury 7
style 23
comfort 5

Interpretation – maximum no of students want to have a car just to show style in front of their
friends. Although safety is also a considerable point in this.

Ques6. Does the brand image of the four wheeler have any influence of your buying decision?

T-Test

One-Sample Statistics
Std. Std. Error
N Mean Deviation Mean
influence 32 1.22 .420 .074
 One-Sample Test
Test Value = 0
95% Confidence Interval
Sig. (2- Mean of the Difference
t Df tailed) Difference Lower Upper
influence 16.414 31 .000 1.219 1.07 1.37

T Test

Group Statistics
influe Std. Std. Error
nce N Mean Deviation Mean
bm yes 25 23.4800 3.68691 .73738
no 7 25.0000 2.23607 .84515

Frequencies

Statistics
influence
N Valid 32
Missing 0
Mean 1.22
 Influence
Frequenc Valid Cumulative
y Percent Percent Percent
Valid yes 25 78.1 78.1 78.1
no 7 21.9 21.9 100.0
Total 32 100.0 100.0

INTERPRETATION: THIS GRAPH SHOWS THAT 78% STUDENTS ARE

INFLUENCED BY THE BRAND IMAGE. It means that brand image have a significant impact
on the purchase decision of the students.
7. How far celebritiy endowrsement influence your buying decision?
• Highly influenced

• Somewhat influenced

• Neutral

• Less influenced

• Not influenced

No of respondents

Highly influenced 12

Somewhat influenced 8

Neutral 15

Less influenced 7

Not influenced 8

Interpretation – although maximum no of students says that are neutral by celebrity endorsement
still many are influenced by it.
8.How far the availability of service &spare parts influenced your choice?
• Highly influenced

• Influenced

• Neutral

• Less influenced

• Not influenced

No of respondents
Highly influenced 8

Influenced 28

Neutral 4

Less influenced 3

Not influenced 7
Interpretation – more than half of the students consider the services and avalibility of spare
parts before making a purchase decision.

9.What factors makes you to purchase it from a specific dealer?

• Loyalty

• Service quality

• Accessibility

• Brand image

Loyalty 13

Service quality 12

Accessibility 3

Brand image 23
Interpretation – from above data we can conclude that maximum no of students are impacted
by the brand that is why they consult a same dealer before making a purchase of their car.

Ques10 Who influence you the most to buy the four wheeler?

Statistics
Most
N Valid 32
Missing 0
Mean 1.59

Most
Cumulative
Frequency Percent Valid Percent Percent
Valid family 17 53.1 53.1 53.1
frds&relatives 12 37.5 37.5 90.6
colleagues 2 6.2 6.2 96.9
others 1 3.1 3.1 100.0
Total 32 100.0 100.0

Frequencies

Statistics
most
N Valid 32
Missing 0
Mean 1.59
 most

Frequenc Valid Cumulative

y Percent Percent Percent
Valid family 17 53.1 53.1 53.1
frds&relative 12 37.5 37.5 90.6
colleagues 2 6.2 6.2 96.9
others 1 3.1 3.1 100.0
Total 32 100.0 100.0

INTERPRERATION: THE REFERENCE GROUP WHICH INFLUENCED THE

STUDENTS MOST ARE THEIR FAMILY.
Since the funds for making purchase are generally provided to students by their family only so
the decision is influenced by them a lot.

11.Rate the factors that influence your decisions to buy four wheelers?

Highly infuenced Influenced Not influenced

Style 18 22 10

Price 35 7 8

Mileage 27 10 13

Product features 32 17 1

Technology 42 8 0

Safety 26 15 9

Comfort 41 9 0

Colour 47 3 0

Luxury 50 0 0
Interpretation- almost all the above mentioned factors affects the actual purchase decision of
students.

Findings:
Following are the important findings of the study.

Reliability:
18.8% rely on the this factor the most
.
Safety:
6.2%focus on the safety factor.

Product features:
56.2% focus on the product features .while making a purchase decision & this is the highest %
out of all.

Price:
12.5%give weightage to this price factor.

Fuel efficiency:
Only 6.2% give importance to this fuel factor.

Brand image:
78% are totally influenced by the brand image & this is the highest of the both.
21.9% are not at all influenced by this factor.

Reference group:
Family:
53% motivated through their families & holds the highest %.

Frds& relatives:
37.5% are influenced by frds & relatives.

Colleagues:
Only 6.2% students give importance to their mates.
 CONCLUSION

The collected data has been analyzed and interpreted here. Tables and charts have been used to
make the data more clear.

In my opinion & study I have came to the conclusion that as this search is done on students ,so
their motives , choice, preferences .for buying a four wheeler is also according to their age .Here
age really matters a lot in to their motive factors for four wheelers. As youngsters focus mostly
on the outer features of the product, so my findings are also according to this only.

As it is clear from the result that 56% students give importance to the product features.

78% are influenced by the brand image while they make their buying decisions.

53% are motivated by their families,in the study of reference group category.
BIBLIOGRAPHY

REFERENCE TO A BOOK

• Kothari, C.R. (2004), Research Methodology, New Age International publishers. ,

New Delhi.
• Kotler, P. (2006), Marketing Management, Pearson publishers Ltd., New Delhi.
• Schiffman, kanuk(2009), Consumer behavior, Pearson publishers Ltd., New
Delhi.

REFERENCE FOR AN ARTICLE

• frankfin, john, (2007) , INTERNATIONAL JOURNAL ON MARKETING, May 7

• Sharma, pramod, (2005), “Indian car market scenario changing” , The Financial
express, Nov
• Joshi , Karan, (2009), “car market- a changing ball”, The Financial express,
March.

REFERENCE TO WEB PAGE

• http%3A%2F%2Fwww.economicswebinstitute.org%2Fessays
%2Fcarthai.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfuLWnA
w&usg=AFQjCNFRIsEDMgCrQnfTy_NFrt7tDI78uA&sig2=m6GdUADX47zMkac0BR
nWig

• http://www.sykronix.com/tsoc/courses/sales/sls_cons.htm

• http://www.google.co.in/url?
sa=t&source=web&ct=res&cd=4&ved=0CB8QFjAD&url=http%3A%2F
%2Fwww.3daycar.com%2Fmainframe%2Fsponsors%2Fconference%2Fdec00conf
%2Fnewbuyerres.pdf&rct=j&q=consumer+behaviour+of+car&ei=ObcjS9jlO4uUkAXfu
LWnAw&usg=AFQjCNFUXNCvJuwyX6BU4rfH7uyHmlMA0A&sig2=IqtG6bd2__03t
21x6KYVew

• http://en.allexperts.com/q/Horses-Behavior-Issues-3329/2009/5/consumer-behaviour.htm

• http://www.omaccanada.ca/en/ooh/strengths/behaviour/default.omac
ANNEXURE

QUESTIONNAIRE

I, Arun Chaudhary student of MBA III Semester at Lovely Professional University,

Phagwara is conducting a research on topic “STUDENT MOTIVES FOR BUYING A CAR”. Kindly help me
to gather the information by sparing your 10-15 minutes for filling the questionnaire. I will be
very thankful. I assure you that the information will be kept confidential.

A) DEMOGRAPHIC PROFILE

NAME: __________________________

CONTACT NO. - ______________________

GENDER: Male Female

QUALIFICATION:

B) QUESTIONS

1. Do you own a four wheeler?

• YES

• NO

2. Which is your most preffered price brand for buying a four wheeler?
• 1-5 lks

• 3-5 lks

• 5-10 lks

• 10-15 lks
3. While making a purchase decision on which factors you focus the most?
• Reliability

• Safety

• Product features

• Price

• Fuel efficiency

4. Which of the following provided you with most significant information for making your
purchase decision?
• Tv advertisement s

• Newspapers &magazines

• Online sources

• Product demos

• Sales representatives

• Experienced users

5. Why u want to buy a four wheeler?

• Safety

• Economy luxury

• Style

• Comfort

6. Does the brand image of four wheelers have any influence on your buying decision?
• Yes

• No

7. How far celebrity endorsements influence your buying decision?

• Highly influenced

• Somewhat influenced

• Neutral
 • Less influenced

• Not influenced

8. How far the availability of service &spare parts influenced your choice?
• Highly influenced

• Influenced

• Neutral

• Less influenced

• Not influenced

9. What factors makes you to purchase it from a specific dealer?

• Loyalty

• Service quality

• Accessibility

• Brand image

10. Who influenced you the most to buy a 4 wheeler?

• Family

• Friends &relatives

• Colleagues

• Others (specify)

11. Rate the factors that influence your decisions to buy four wheelers?
Highly influenced Influenced Not influenced

Style

Price

Mileage

Product features
Technology

Safety

Comfort

Colour

Luxury

THANK YOU.