SUMMER INTERNSHIP PROJECT REPORT ON CUSTOMER BUYING BEHAVIOR REGARDING PURCHASE DECISION FOR MECHANICAL EQUIPMENTS

Submitted in partial fulfillment of the requirement for the award of the Degree in

MASTER OF BUSINESS ADMINISTRATION To GUJARAT TECHNICAL UNIVERSITY, AHMEDABAD Under the Guidance of
(Prof: Dr. Bijal Zaveri)

Prepared by Students Name: Saxena Gaurav P Enrolment No: 107420592010 SEM 2 PARUL INSTITUTE OF ENGINEERING & TECHNOLOGY

MBA Department, LIMDA

1

CERTIFICATE
This is to certify that the project work entitled CUSTOMER BUYING BEHAVIOUR REGARDING PURCHASE DECISION FOR MECHANICAL EQUIPMENTS was carried out by Mr. Gaurav Saxena in partial fulfillment of the Award of the degree in Master of Business Administration to the GUJARAT TECHNICANOLOGICAL UNIVERSITY, AHMEDABAD in the year 2011.It is certified that all correction/suggestion indicated for internal assessment have been incorporated in the Report deposited in the department library. The project report has been approved as it satisfies the academic requirements in respect of project work prescribed for the Master of Business Administration Degree.

Signature of Guide Name of Guide College

Signature of Director Name of Director : Parul Institute Engineering and Technology, MBA Department (Ins. Code 742)

INDEX
Chapter Name of The Chapter No.
Certificate Acknowledgement Declaration List of tables List of figures Synopsis Objectives Limitations 1. 2. 3. 4. 5. 6. 7. 8. Introduction to consumer buying behavior About Conmat systems pvt. Ltd. Literature review Research methodology Data analysis Findings Suggestions& Implications Conclusion Bibliography 2 4 5 6 7 8 9 10 12 15 19 21 24 46 49 51 53

Page No.

Annexure

55

ACKNOWLEDGEMENT
I would like to thank and acknowledge from the bottom of my heart to all the persons who had helped me in guiding & preparing my project work. It is a regard to all those who rendered their valuable support to make this project successful. First of all I would like to thank my parents, teachers, friends, family without whom this project wouldnt have been completed. Then I would like to thank the management of our college, PARUL AROGYA SEVA MANDAL especially DR. P G K MURTHY our respected director, who always motivate & inspire us to work harder. I am very much thankful to our Revered Professor Dr. Bijal Zaveri, the guide of our report. I am really indebt to her for taking active interest and enthusiastic support rendered by her and sparing her valuable time for us. I would also like to thank CONMAT SYSTEMS PVT LTD & Mr. Kalpesh Soni for giving permission to work with them and collect some important facts and information. And last but not the least, I would like to thank all the respondents who spare their valuable time for filling up the questionnaire and my parents without whose blessing, I would not have been successful in completing my project work.

DECLARATION I, the undersigned, Mr. GAURAV P SAXENA., hereby declare that this project work entitled CUSTOMER BUYING BEHAVIOUR REGARDING PURCHASE DECISION FOR MECHANICAL EQUIPMENTS is my own work & is not submitted to any other university or institutes for any other purpose. This is purely meant for academic purpose only.

__________________________ SAXENA GAURAV P MBA SEM 2 Roll no. 10

Table no. 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12

Title Awareness of the Conmats Product Consumers preferences Ranking of the various companies Annual turnover of customers Technological usage Preference for the products Estimated budget for the purchase Customers technological problems Customers service of the firm Responses of the after sales service Hypothesis Testing Dispatching Service

Pg no 24 26 26 28 30 32 34 36 38 40 42 44

FIG no.

Title

Pg no

5.1

Awareness of the Conmats Product

25

5.2

Ranking of the various companies

27

5.3

Annual turnover of customers

29

5.4

Technological usage

31

5.5

Preference for the products

33

5.6

Estimated budget for the purchase

35

5.7 5.8

Customers technological problems Customers service of the firm

37 39

5.9

Responses of the after sales service Dispatching service

41

5.10

45

SYNOPSIS
This is a brief note enabling the reader to know the content of project report on general basis. A trial is made to provide overview knowledge of the project report. Due to the limitations of the time, limited knowledge & the small sample size there are the chances of the error and mistakes, which are tried to be kept under control up to certain extent. This project is undertaken to know the costumers buying behavior regarding purchase decision for mechanical equipments. For gathering information, survey is conducted. A sample of 25 units is taken from the Baroda and Ahmedabad city which is selected on the basis of judgmental sampling method. For the data collection method both primary data i.e. questionnaire & secondary data that is internet and reference books are used. The questions asked in questionnaire are of Likert scale and multiple choice questions. From the data interpreted and analyzed the conclusion drawn was that the consumers are aware of the product only through one source that is internet. So the company should try to put more efforts on advertising.

Saxena Gaurav P Roll no. 10

OBJECTIVES
1. To study the customer buying behavior regarding the purchase decision for mechanical equipments. 2. To identify the awareness of the product among the customer. 3. To find customer willingness to upgrade with technology. 4. To know how much customers are willing to spend on a particular product.

LIMITATIONS
1. Because of short time and availability I was able to survey only 25 respondents. 2. Study is limited to Baroda and Ahmedabad city only. 3. Sample size is too small to come to any conclusions & there may be discrepancies in data due to this. 4. Data collected for my project are of primary in nature which may involve any personal bias & mistakes. 5. Results drawn are on the basis of information provided by respondent as per their understanding & there are possible chances of error & bias.

10

Ch -1 Introduction To Customer buying behaviour

11

Consumer behavior is the study of how individuals, groups & organization select, buy, use & dispose of goods, services, ideas or experiences to satisfy their needs & wants. Creating loyal customers is at the heart of every business. Buying behavior is defined as all psychological, social and physical behavior of potential customers as they become aware of, evaluate, purchase, consume, and tell others about product and services. Factors influencing consumer buying behavior are cultural factors, social factors, family, roles and status, personal factors, psychological factors. Consumer buying behavior can be complex buying behavior, dissonance reducing buying behavior, habitual buying behavior or variety seeking buying behavior. As marketing experts Don Peppers and Martha Rogers says: The only value your company will ever create is the value that comes from customers the ones you have now & the ones you have now and the ones you will have in the future. Businesses succeed by getting, keeping and growing customers. Customers are only reason you build factories, hire employees, schedule meetings, lay fibre optic lines or engage in any business activity. Without customers, you dont have a business. Consumer buying behavior is broadly explain by authors. It is very important factor for a marketer to collect data from survey The aim of the marketing is to meet and satisfy target customers needs and wants. The field of consumer behavior studies how individuals, groups, services, ideas or experiences to satisfy their needs and desires. Understanding consumer behavior and knowing customers are never simple. They may respond to influences that change their mind at the last minute.

12

Marketing & environmental stimuli enters the buyers consciousness. The buyers characteristics & decision process lead to certain purchase decision. Buyers decisions are affected many of the internal & external stimuli as well as the buyers characteristics. Consumer decision making varies with the type o buying decision. The decisions to buy toothpaste, a PC, tennis racket and a new car are all very different. Complex and expensive purchases are likely to involve more buyer deliberation and more participants.

TYPES OF CONSUMER PURCHASE BEHAVIOR

Consumers are faced with purchase decisions nearly every day. But not all decisions are treated the same. Some decisions are more complex than others and thus require more effort by the consumer. Other decisions are fairly routine and require little effort. In general, consumers face four types of purchase decisions:

Minor New Purchase these purchases represent something new to a consumer but in the customers mind is not a very important purchase in terms of need, money or other reason (e.g., status within a group).

Minor Re-Purchase these are the most routine of all purchases and often the consumer returns to purchase the same product without giving much thought to other product options (i.e., consumer is brand loyalty).

Major New Purchase these purchases are the most difficult of all purchases because the product being purchased is important to the consumer but the consumer has little or no previous experience making these decisions. The consumers lack of confidence in making this type of decision often (but not always) requires the consumer to engage in an extensive decision-making process..

Major Re-Purchase - these purchase decisions are also important to the consumer but the consumer feels confident in making these decisions since they have previous experience purchasing the product.

13

Ch 2 About Conmat Systems

14

Ideology: We believe that profit has no significance if the organization does not play its role, giving back the due to the society, environment and corporate social responsibilities. Vision: Excellence through technological solutions for customer delight. Mission: Achieve global supremacy for our products in terms of quality and price. Action: World class research, development and manufacturing facilities supported by best human resource and extensive service support system. Core Values:

We shall uphold dignity of the individual. We shall honor all commitments. We shall be committed to Quality, Innovation and Growth in everyendeavor. We shall be responsible corporate citizens. We shall ensure high level of corporate governance.

15

CONMAT is a group of companies, engaged in designing and manufacturing Construction Equipment, Material Handling Systems, and Industrial Storage Systems & Industrial Automation & Service provider for Oil & Gas Pipeline. Conmat produces Automatic Concrete Batching & Mixing Plants, Transit Mixers, Concrete Pumps and Concrete Paving Machines for Canals and Roads. Conmat provides standard & customized solution for Material Handling & Industrial storage systems like Automated Storage & Retrieval System, heavy Duty Racks, Mobile Storage Systems, Compactors, Mezzanine Floors & Assembly Line Conveyors. Conmat is also a leading service provider specialized in safe and innovative solutions for Managing, Maintenance and Modification to Pressurized Piping Systems, hydrocarbon Processing Unit, Fertilizers, Steel and Pharmaceutical Companies. Our full service inline includes Hot Tapping & Line Stop, In-Service Welding procedure development and Field Welding Services, Valve Repair Services, Field machining Services, Repair & Refurbishment of Dry Gas Seals, Circumferential barrier Seals and Multi-Ring Circumferential Seals. Our Journey The Group is growing by leaps & bounds, recording an average growth of 100 % over last few years and is expected to achieve bigger milestones in future. The group started its Indian operations from a small 200 Sq.Ft. rented space in 2002-03, today its State of the Art manufacturing facilities are spread over 2,50,000 Sq. ft. in and around Vadodara, Gujarat , having sales & service offices at Mumbai, Delhi, Kolkata, Pune, Bangalore, Hyderabad, Indore, Lucknow & London.

16

Our valued customers

General Motors DuPont Arvind Mills Delphi Automotive Systems ABB Ford Bayer ABS Moser Baer Sumitomo Systems Schneider Electric Denso India Reliance Whirlpool Torrent Pharmaceuticals Sun Pharmaceuticals Honeywell German Remedies Samsung Modern Petrofils Hindustan Inks and Resins Bluestar L.K. India & Many more ..

17

Ch 3 Literature Review

18

LITERATURE REVIEW
Existing literature is always like a guiding light in any research. Consumer buying behavior is very useful to know about the consumers behavior regarding a product. As, Philip Kotler , Kevin Lane Keller, Abraham Koshy&MithileshwarJha says consumer behavior is study of how individuals, groups & organization select, buy, use & dispose goods to satisfy their needs and wants. Also the marketing experts Don Peppers & Martha Rogers say that customers value is also very important. He said the only value your company will ever create is the value that comes from customers. He further says business succeeds by getting & growing customers. So, to know consumer behavior is very significant. In research methodology, in social sciences by Sadhu Singh John says that research is systematic activity directed towards discovery & development of knowledge. This paper examines customer satisfaction models for assessing the relationship of overall satisfaction with a product or service and satisfaction with specific aspects of the product or service for organizations having multiple units or subunits. These units could be stores, markets, dealers, divisions, etc. We suggest a methodology for studying whether the drivers of overall satisfaction vary across such units.

19

Ch 4 Research Methodology

20

RESEARCH METHODOLOGY Design: Research Design:

Research Design plan, structure & strategy of investigation conceived so as to obtain answers to research and to control variance. This definition consists of 3 important terms plan, structure & strategy. The plan is an outline of research scheme on which the researcher has to work. The structure of research is more specific outline and the strategy shows how the research will be carried out specifying the methods to be used in the collection and analyze of data. According to Green &Tull, A Research design is the specification of methods & procedures for acquiring the information needed. It is the overall operational pattern or frame work of the project the stipulates what information is to by collected from which source and by what procedures.

Type of Research Design:

Descriptive Research: Descriptive Research design is a fact finding investigation with adequate interpretation. Therefore researcher should give sufficient thought to frame research question and deciding the type of data to be collected and procedure to be used for this purpose.

Source of Data Collection:

To overcome the limitations of incompatibility obsolesce and bias, I went for primary data. But all information cannot be collected through primary data, so I even took help of secondary source i.e internet & reference books. Primary data was collected through administrating questionnaire cum interview schedules to interviewee. Data has been collected through Questionnaire method.

21

Sampling Techniques
Sampling unit The sampling unit was limited to Baroda and Ahmedabad city of Gujarat. Sampling Size Total of 25 people were contacted and survey was done accordingly. Sampling Design Judgmental sampling methods has been used.

Implementation
Before starting the actual research, a Questionnaire was shown to our project guide Prof. Dr. Bijal Zaveri, through her suggestions the questionnaire was modified. After that I prepared final Questionnaire in accordance with the objectives of research. The final questionnaire was handed to only those respondents who showed their desire to fill the questionnaire themselves

22

Ch 5 Data Analysis

23

Q.1 How did you came to know about CONMAT SYSTEMS product? Purpose: To know the awareness among the customers Response:

Through person

By Magazines

Internet

12

Through Exhibition

Others

Table no. 5.1 awarness of the Conmats Product

24

0 2 4 0 3

00

4 Through person By Magazines 0 12 Internet Through Exhibition Others

Fig no. 5.1 awarness of the Conmats Product

Analysis: From the graph & the table , most consumers are aware of the product through the Internet.

Q.2 Other than Us, which of the following companies have you heard of?(RANK THEM)
25

Purpose: To get an idea of the customers preferences for other companies Responses:

Rank 1 Names Schwing stetter Revathi Equipments Limited Apollo infratech Aquarius Engineers Diamond group Others TOTAL 11 3 4 2 4 3 3 4 2 5 1 8 25 25 2 3 4 5 6 TOTAL

25

25

0 6 25

4 5 25

5 3 25

4 4 25

7 3 25

5 4 25

25 25 150

Table no 5.2 consumers preferences

Names Schwing stetter Revathi Equipments Limited Apollo infratech Aquarius Engineers Diamond group Others
Table no 5.3 Ranking of the various companies

Rank 1 3 2 4 5 6

26

Rank
Rank

6 5 4 3 2 1

Schwing Revathi Apollo setter Equipments infratech Limited

Aquarius Engineers

Diamond group

Others

Fig no 5.2 Ranking of the various companies

Analysis: From the above graph and table we can conclude that schwing setter is the highly preferred firm after conmat systems.

Q.3 What is your estimated Turnover annually?

27

Purpose : To know the annual turnover of the customer Response:

Amount

Response

<1 crore

1-10 crore

15

>10 crore

10

Total
Table no 5.4 To find the annual turnover of customers

25

28

Response
16 14 12 10 8 6 4 2 0 <1 crore 1-10 crore >10 crore

Fig no 5.3 Responses of the customers

Analysis: The above cone graph represents that the turnover between 1 1-10 crores.

Q.4 If the turnover is greater than 10 crore, which of the technology do you use?
29

Purpose: To find which of the technology are they using. Response:

Technology usage

Response

Latest Technology

Traditional Technology

Total

10

`Table no 5.5 Technological usage

30

Latest Technology Traditional Technology

Fig no 5.4 Technological usage

Analysis: In the above graph and Table the total number of respondents are only 10 because in Q.3 the response to answer for the annual turnover for 10 crores is only 10. Graph and the data represents that out of 10 only 3 uses latest technology.

Q.5 Which of the following products are you looking for?(You can select more than one options)
31

Purpose : To know the preference for the products. Response: PRODUCT NAME Stationery concrete batching plant Mobile concrete batching plant Stationery concrete pump RESPONSES 12 18 8 16 10 10

Transit mixer Truck mounted concrete boom pump Concrete road paver

Concrete canal paver

Total
Table no 5.6 Prefernce for the products

80

32

7
90 80 70 60 50 40 30 20 10 0 7

Fig no 5.5 preference for the product

Analysis : The graph and table represents that Mobile concrete batching planting is the most preferred product because of its mobility in use. Note: In the above table the response rate is greater than 25 because customers were asked to select more than one options.

33

Q.6 What is the your estimated budget for the Purchase? Purpose : To know the customers willingness to spend Response :

Amount

Responses

<50 lacs

13

50-1 crore

>1 crore

Total
Table no 5.7 Estimated budget for the purchase

25

34

13 7

<50 lacs 50-1 crore 1 >1 crore

Fig 5.6 Estimated budget for the purchase

Analysis : Maximum number of the respondents prefer their purchase amount less than 50 lacs.

35

Q.7 Did you find any Technological Problems during the usage of Product? Purpose : To know whether the customers have any technological problems or not Response :

Options

Response

Rarely

15

Very often

Everytime

Total
Table no 5.8 customers technological problems

25

36

Rarely 7 15 Very often Everytime

7 Fig no 5.7 customers technological problems

Analysis : The graph and the table shows that customers faces very rarely technological problems.

37

Q.8 For hearing your problems how much did you have to wait to speak to CONMAT SYSTEMS customer service executive? Purpose : To know the customer service of the firm Response :

Response Less than 5 min About 15 min About half an hour 2 8 10

More than hour

Total
Table no5.9 customers service of the firm

25

38

10 9 8 7 6 5 4 3 2 1 0 Less than 5 min About 15 min

About half an hour

More than hour

Fig no5.8 customers service of the firm

Analysis : The responses and the graph shows that the customers have to wait for about half an hour to speak to customer care executive for hearing theirgreviances.

39

Q.9 How did you find CONMAT SYSTEMS after sales service? Purpose : To find the after sales service Response:

Options Very satisfied Satisfied Neutral Dissatisfied Very Dissatisfied Total

Table no 5.10 Responses of the after sales service

Responses 3 6 10 4 2 25

40

Total

Very Dissatisfied

Dissatisfied

Neutral

Satisfied

Very satisfied 0 5 10 15 20 25

Fig no 5.9 Responses of the after sales service

Analysis : From the data and graph customers find the after sales service neutral.

41

Q.9 How did you find CONMAT SYSTEMS after sales service?

Options Very satisfied Satisfied Neutral Dissatisfied Very Dissatisfied Total

Responses 3 6 10 4 2 25
Table no. 5.11 Hypothesis Testing

Rank 5 4 3 2 1

Ho:=4 Ha:4

X = X/n =3.16 S = (X-X) ^2/ n-1 = 1.106 t = X-/S/ n = -3.797

n=25 =0.05

Non rejection region

rejection region

=4 4

t0.05,24= 1.711

42

The value of the t is -3.797 and the table value of t is 1.711 therefore the value falls in the Non rejection region which means that the null hypothesis is accepted. From the test it can be concluded that 95% of the consumer are satisfied with the after sales service. Explanation:

x 5 5 5 4 4 4 4 4 4 3 3 3 3 3 3 3 3 3 3 2 2 2 2 1 1 79 3.16 1.106044 -3.79732

x-x 1.84 1.84 1.84 0.84 0.84 0.84 0.84 0.84 0.84 -0.16 -0.16 -0.16 -0.16 -0.16 -0.16 -0.16 -0.16 -0.16 -0.16 -1.16 -1.16 -1.16 -1.16 -2.16 -2.16

(x-x)^2 3.3856 3.3856 3.3856 0.7056 0.7056 0.7056 0.7056 0.7056 0.7056 0.0256 0.0256 0.0256 0.0256 0.0256 0.0256 0.0256 0.0256 0.0256 0.0256 1.3456 1.3456 1.3456 1.3456 4.6656 4.6656 29.36

mean = s= t=

43

Q.10 How do you find CONMAT SYSTEMS dispatching service? Purpose: To know the dispatching service Response:

Great Average Below average

7 13 5

Total
Table no 5.12Dispatching service

25

44

Total

Below average

Average

Great

10

15

20

25

Fig no 5.10 Dispatching service

Analysis : Customers responses to the dispatching services was Average.

45

Ch 6 Findings

46

Findings

Customers are aware of the products through the internet. Therefore the firm should put more efforts for the advertisement & promotion so that more customers can get attracted. The budget that the customers are willing to spend on the purchase is 50lacs to 1 crore due to wear and tear and life of the product which is estimated 3-4 years. There are very rare technological problems that the customers are facing. Because the company uses Programming Logic Control. The firms have separate employees for installation & service and that is why Customers are satisfied with the after sales service. The dispatching service of the firm is Average. Because it takes minimum 1-2 weeks for any product to be completed and that is why the dispatching service takes time. The most preferred product among customers is Mobile concrete batching plant because of the ease of mobility of the product. Schwing setter is the dominant firm in this field as the firm is in the field since decades.

47

Ch 7 Suggestions

48

Suggestions

The company should focus more on the advertisement and promotion so that customers get aware about the companys product. And the best way to deal is to promote the products through trade shows & internet where maximum customers get the knowledge about the product. Due to availability of Dominant companies in the field, CONMAT should improve with their focus on technology and customer satisfaction rate. As majority deals with low budget so company should apply various theories to produce the product with minimum investment of resources. So that it can increase its sales reasonably. The company should try to improve upon their product by modifying some features which should be different from competitors and difficult to imitate which will help the firm to get the strategic advantage like theyhave TWIN SHAFT Technology. The firm is in the star phase of BCG matrix. Therefore it should apply the strategy of continuous investment in order to keep up with the markets growth & share. The company should provide their products with low cost by utilizing minimum resources men money and machine due to cut throat competition in market so that it can have the strategic advantage.

49

Ch 8 Conclusion

50

Conclusion

In concluding part of the report it was a great experience working with the team of CONMAT SYSTEMS and would first of all like to thank the whole unit of CONMAT because without their cooperation and support the research would not have been possible. It was really great learning experience to me.

The study shows that the CONMAT SYSTEMS is a Brand name in todays date with more than 100% growth in last couple of years it has emerged as a big threat to the already existing dominant Industries.As a part of post purchase behaviour of customer they need to work upon the customer satisfaction through after sales services.As per their usage of the upgraded latest technology and with few minor improvements in long run it can be one of the leading industries in coming years.Thus the final conclusion is that in this phase company is at its best but need some more efforts to be on top.

51

Bibliography

52

Websites: 1. 2. 3. 4. 5. http://www.conmatindia.com/index.php
www.wikipedia.org/wiki/Consumer_behaviour.php www.knowthis.com www.constructionequipments.masterbuilder.co.in www.slideshare.net/Conmatsystems/conmat-systems-pvt-ltd

Reference books: 1) Marketing management Philip kotler, Kevin lane Keller-12th Edition 2) Marketing researcher Harner W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch. 7th edition 3) Consumer behavior Leon G. Schiffman, Leslie Lazar Kaunk. Magazines : 1. Construction world:June 2011.vol 13 No.9& No.4 2. Construction technology :June 2011 vol 8 No 4 3. Construction business today: May 2011 Vol 1 No 2

53

Annexure

54

QUESTIONNAIRE
We are students of Parul Institute of Management conducting a survey on the CUSTOMER BUYING BEHAVIOR REGARDING PURCHASE DECISION . This is undertaken as a part of the academic fulfilment of the MBA program. Q.1 How did you came to know about CONMAT SYSTEMS product? Through person By magazines Internet Through exhibition Others __________ Q.2 Other than Us, which of the following companies have you heard of?(RANK THEM) Schwing Setter Revathi Equipments Limited Apollo infratech Aquarius Engineers Diamond group Others___________ Q.3 What is your estimated Turnover annually? <1 crore 1-10 crore >10 crore Q.4 If the turnover is greater than 10 crore, which of the technology do you use? Traditional technology Latest technology Q.5 Which of the following products are you looking for?(You can select more than one options) Stationery concrete planting Mobile concrete batching planting Stationery concrete pump Transit mixer Truck mounted concrete boom pump Concrete road paver Concrete canal paver Q.6 What is the your estimated budget for the Purchase? <50 lacs 50lacs-1 crore > 1 crore
55

Q.7 Did you find any Technological Problems during the usage of Product? Rarely Very often Every time Q.8 For hearing your problems how much did you have to wait to speak to CONMAT SYSTEMS customer service executive? Less than 5 min About 15 min About half an hour More than hour Q.9 How did you find CONMAT SYSTEMS after sales service? Very satisfied Satisfied Neutral Dissatisfied Very Dissatisfied Q.10 How do you find CONMAT SYSTEMS dispatching service? Great Average Below average

Thank you

56

57