Professional Documents
Culture Documents
STUDY
ON
CONSUMER BUYING BEHAVIOUR AT TIME TO
PURCHASE HERO HONDA BIKE.
A Report submitted in partial fulfillment of the requirements for the award
of the degree of
Submitted By:
TARANG P PATIL
T.Y.B.B.A. (SEM-VI) ROLL NO.-23
Submitted To:
THE CO-ORDINATOR
THE SURAT PEOPLES CO-OP. BANK COLLEGE OF
BUSINESS ADMINISTRATION
UDHNA (SUART)
March 2007
Signature
Signature
Project Guide
(Prof .H.D.Patel)
Co-Ordinator
(MRS. DAISY S.T)
DECLARATION
2
Place: udhna
Date:
signature
TARANG PATIL .P.
ROLL NO. 23
ACKNOWLEDGEMENT
3
Place: - Surat
TARANG P PATIL
Date: -
T.Y.B.B.A
Roll No.:-23
INDEX
4
NUMBER
SUBJECT
INTRODUCTUION
INTRODUCTUION OF INDUSTRY
HISTORY OF COMPANY
THEORETICAL BACKGROUND
5
6
7
8
9
10
21-23
PROBLEM DEFINATION
SCOPE OF STUDY
OBJECTIVES OF STUDY
LIMLTATIONS OF STUDY
RESEACH METHODOLOGY
7
8-9
10-14
15-20
PROBLEM DEFINATION
PAGE
NO.
24-31
INTRODUCTION
RESEARCH DESIGN
SOURCES OF DATA
RESEARCH INSTRUMENT
SAMPLING PLAN
DATA COLLECTION METHOD
TESTING OF HYPOTHESIS
FINDINGS
SUGGESTIONS
REFERENCE MATERIAL
BIBLIOGRAPHY
APPENDIX
30-48
49-51
52-53
54-55
56-58
59
60-61
62-66
Page
No
1
2
3
4
5
6
7
8
9
33
34
35
36
37
38
39
40
42
10
11
12
44
46
48
CHAPTER :
1
INTRODUCTION
INTRODUCTION OF INDUSRY
HISTORY OF COMPANY
INTRODUCTION OF INDUSTERY
Throughout the centuries man has striven to expand his
capabilities through the use of machine. His ever inventive mind
has constantly devised ways to use tool to increase his abilities to
explore the world around him. To go faster, deeper, higher and
further than before. Coupled with his need to find new thrills, new
adventures and new modes of transportation, the invention
refinement of the motorcycle seems an inevitable out come.
It would seem that Michelangelo conceived of the bicycle as
early 14th century. And his drawing shows a remarkable
resemblance to he modern day bike. It had wheels of similar size
and even pedals and chain. Albeit without any apparent means of
steering.
Through never built, it was a remarkably clever design, and
early bicycle makers would have done well to study his concepts,
there have, in fact been 4 machines built based on his drawing,
attesting to the viability of his design.
It wasnt until 1869 that the first serious attempts were made
to produce motor driven bicycles. These very first were powered
by steam, and driven by leather belts or as in the case of the roper
steam velocipede of 1869 by a system of levers attached to a crank
on the driven wheel.
In 1885 the Daimler, Europe this is consider by many as the
first true motorcycle or motor bicycle, as it was the first to employ
an internal combustion engine and was designed from the ground
up to be motor powered. Designed by gottlibe Daimler it was
History OF COMPANY
Type
: Public company
Founded
: Automotive
10
Produce
: Motorcycle, Scooters
India has the largest number of two wheelers in the world with
41.6 million vehicles. India has a mix of 30 percent automobiles
and 70 percent two wheeler in the country. India was the second
largest two wheeler manufacturer in the world starting in the1950s
with the birth of Automobile products of India (API) that
manufactured scooters. API manufactured the lambrettas but,
another company, Baja Auto Ltd. Surpassed API and remained
through the turn of the century from its association with piaggio of
Italy (manufactured of vespa)
The license raj that existed between the 1940s and 1980s in
India. Did not allow foreign companies to enter the market and
imports were tightly controlled. Customers in India were forced to
wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj
commented that he did not need a marketing department, only a
dispatch department. By the year 1990, Bajaj had a waiting list that
was twenty-six times its annual output for scooters.
In the mid-1980s, the Indian government regulation changed
and permitted foreign companies to enter the Indian market
through minority joint ventures. The two wheeler market changed
with four indo-Japanese joint ventures: Hero Honda, TVS Suzuki,
Bajaj Kawasaki and Kinetic Honda. The entry of these foreign
companies changed the Indian market dynamics from the supply
demand side. With a larger selection of two-wheelers on the Indian
market, consumer started to gain influence over the products they
bought and raised higher customer expectations. The industry
produced more models, styling options, price, and different fuel
efficiencies. The foreign companies new technologies helped make
the products more reliable and with better quality. Indian
companies had to change to keep up with their global.
12
During the 80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle without polluting the
roads. The company introduced new generation motorcycles that
set industry benchmarks for fuel thrift and low emission. A
legendary 'Fill it - Shut it - Forget it' campaign captured the
imagination of commuters across India, and Hero Honda sold
millions of bikes purely on the commitment of increased mileage.
Hero Honda has consistently grown at double digits since
inception; and today, every second motorcycle sold in the country
is a Hero Honda. Every 30 seconds, someone in India buys Hero
Honda's top -selling motorcycle - Splendor. This festive season, the
company sold half a million two wheelers in a single month-a feat
unparalleled in global automotive history.
Hero Honda values its relationship with customers. Its unique
CRM initiative - Hero Honda Passport Program, one of the largest
programs of this kind in the world, has over 3 million members on
its roster. The program has not only helped Hero Honda understand
its customers and deliver value at different price points, but has
also created a loyal community of brand ambassadors.
14
CHAPTER:2
THEORITICAL BACKGROUND
CONSUMER BUYING BEHAVIOUR
15
CONSUMER BUYING
BEHVIOUR
The main aim of marketing is meet and satisfy target
customers need and wants buyer behavior refers to the peoples or
organization conduct activities and together with the impact of
various influence on them towards making decision on purchase of
product and service in a market. The field of consumer behavior
studies how individuals, groups and organization select, buy, use
and dispse of goods, service, ideas, or experience to satisfy their
needs and desires understanding consumer behavior and knowing
customer are never simple. The wealth of products and service
produced in a country make our economy strong. The behavior of
human being during the purchase is being termed as Buyer
Behavior. Customer says one thing but do another. They may not
be in touch with their deeper motivations. They are responding to
influences that change their mind at the last minute. A buyer makes
take a decision whether save or spend the money.
16
1. Problem identification:The buying process starts when the buyer recognizes a problem or
need. The need can be triggered by internal or external stimuli.
Marketers need to identify the circumstances that trigger a
particular need. By gathering information from a number of
consumers, Marketers can identify the most frequent stimuli that
spark an interest in a product category. They can then develop
marketing strategies that trigger consumer interest.
Personal Sources:
Family, friends, neighbor, as
quittances.
Commercial Source: Advertising, sales persons, dealers,
packaging, displays.
Public sources: mass media, consumer, rating organizations.
Experimental sources: Handling. Examine, using the product.
17
3.
Evaluation of alternative:-
18
5. Post Purchase Behavior:After purchase the product, the consumer will experience the same
level of product. The Marketers job not end when the product is
buying must monitor post-purchase satisfaction, post-purchase
action, post-purchase use and disposal
Post-Purchase Use or Disposal:The marketer should also monitor new buyers use and
dispose of the product. If the consumer store the product in a close,
the product is probably not very satisfying. If the consumer throws
the product away, the marketer needs to know how they dispose of
it; especially it can be hurt the environment.
19
20
CHAPTER:3
PROBLEM DEFINATION
PROBLEM DEFINATION
OBJECTIVE OF STUDY
LIMITATIONS OF STUDY
21
PROBLEM DEFINATION
To know the best consumer buying behavior and demand into
the minds of consumer of Surat city because always consumer say
something and does something. There are many companies
manufacturing motorcycles into the market, at the same time as
there are many companies manufacturing motorcycles, idea about
thinking of customer on whether, what, how, and for whom to
purchase the motorcycle.
Therefore, research is required to measure present consumer
buying behavior at the purchase of Hero Honda bike. so the
researcher problem is to identify what are the criteria that
prospective customer takes into consideration before buying the
motorcycles.
SCOPE OF STUDY
The main scope of the study is limited to Surat city.
It also analysis the benefits accruing to the company as a
result of those service.
This study has been made to find the level of satisfaction the
customer has regarding the service provider by bike place.
22
OBJECTIVES OF STUDY
To know market position of Hero Honda bike in the
market.
To know consumer behavior for purchase of two wheeler
bike.
Limitations of study
When the buyers are busy we cant get accurate data from
them.
23
CHAPTER:-4
RESEARCH METHDOLOGY
INTRODUCTION
RSEARCH DESIGN
SOURCES OF DATA
SAMPLING PLAN
DATA COLLECTION METHOD
RESERCH METHODOLOGY
24
(A)Introduction
Marketing research is the function which links the
consumer, customer and public to the marketers through
information used to identify and define marketing, opportunities
and problems, generates refine marketing action; monitor
marketing performance; and improve understanding of marketing
as a process.
Marketing research specifies the information required
to address these issues; designs the method for collection
information manages and implements the data collection process;
analysis the results and communication the findings and their
implication.
Research definition:
Research is careful inquiry or examination to discover
new information and relationship and to expand and to verify
exiting knowledge,
Research always starts with questions or a problem. Its
purpose is to find answer to questions through the application of
the scientific method. It is a systematic and intensive study
directed towards a more complete knowledge of the subject
studies.
25
Sources of Data
Primary data:-
Secondary data:-
Dichotomous questions :It has only two answers in form yes or n, true or false,
use or do not use. So the respondent is offered two or more
choice.
28
29
Were,
n=Sample Size
p=0.80(probability of satisfied customer)
q=0.20(I-p)
z=1.96(The z (95%) score associated with the degree of
Confidence)
e=0.05 (tolerable error)
n= (0.84)*(016)*(1.96/0.05)2
= (0.1344)*(1536.64)
=206.52
Sample Size n=206.52
Here, from calculation n=206.52 is found but for the simplicity of
the study n=206.52have taken.
(D)Sampling Method:30
31
No. of respondents
30
32
Percentage (%)
30
21-25
26-30
31-35
36-40
41& above
Total
37
15
06
07
05
100
37
15
06
07
05
100
7, 7%
5, 5%
6, 6%
30, 30%
18-20
21-25
26-30
31-35
15, 15%
36-40
41& above
37, 37%
33
Occupation
Servicemen
Student
Business
Profession
Others
Total
No. of respondents
47
30
12
08
03
100
Percentage (%)
47
30
12
08
03
100
100
80
60
No. of respondents
40
Percentage (%)
20
er
s
O
th
si
on
Pr
of
es
ne
s
us
i
B
St
ud
rv
ic
e
Se
en
t
0
m
en
No. of Respondents
Occupation
Income Level
<= 5000
5000-10,000
10,000-15,000
15,000-20,000
20,000 Above
Total
No. of respondents
54
25
11
07
03
100
Percentage (%)
54
25
11
07
03
100
7, 7%
3, 3%
11, 11%
5000
5000-10,000
10,000-15,000
54, 54%
15,000-20,000
20,000 Above
25, 25%
4. SOURCES OF FINANCE
35
Sources of Finance
By cash
By Loan
Total
No. of respondents
45
55
100
55
60
45
Percentage (%)
45
55
100
55
45
50
No. of
respondents
Percentage (% )
40
30
20
10
0
By cash
By Loan
(Sources: - QuestionnaireQue.8)
Comment:Above Graph shows that 55 people purchase Hero
Honda Bike For by Loan and 45 people purchase Hero Honda Bike
from Cash.
36
Auto Mobiles
Shivani
Dhru
Siddhi
Other
Total
No. of respondents
20
17
11
52
100
Percentage (%)
20
17
11
52
100
No. of respondents
Shivani
20%
Other
52%
Dhru
17%
Siddhi
11%
37
Sources
News Paper
T.V.Advertisement
Friends
Others
Total
No. of respondents
12
14
26
48
100
Percentage (%)
12
14
26
48
100
No. of respondents
News Paper, 12
T.V.Advertiseme
nt, 14
Others, 48
Friends, 26
Hero
Honda
15
23
Bajaj
TVS
Yamaha
Honda
Total
05
06
03
03
02
03
05
02
30
37
38
26-30
31-35
36-40
41& above
Total
09
02
01
01
51
02
00
2
01
16
01
01
02
00
10
03
01
01
02
12
00
02
01
01
11
15
06
07
05
100
No. Of Respondents
25
20
18-20
21-25
15
26-30
31-35
10
36-40
41& above
0
Hero Honda
Bajaj
TVS
Yamaha
Honda
No. of respondents
46
42
10
02
100
39
Percentage (%)
46
42
10
02
100
46
46
42
40
42
30
No. of respondents
20
Percentage (%)
10
10
10
2
Father
Self
Mother
Percentage (%)
No. of respondents
Others
40
Weightage
Attributes
6
Excellent
4
Good
30
18
5
Very
Good
20
11
Price
Less
maintenance
Style
Durability
Mileage
Easy Driving
Brand
Reputation
Color
Pick up
Total
2
Poor
18
17
3
Averag
e
16
30
10
13
1
Very
Poor
06
11
21
10
24
20
17
18
17
19
12
19
19
16
14
21
14
10
24
17
23
21
11
21
09
10
17
28
19
187
19
22
157
18
15
152
13
20
174
10
14
115
Attributes
Price
Less maintenance
Style
Durability
Mileage
Easy Driving
Brand Reputation
Color
41
Weightage
426
358
355
335
381
367
362
406
Total
100
100
Total
score
426
358
21
12
17
14
12
100
100
100
100
100
355
335
381
367
362
12
10
115
100
100
900
406
382
3370
Pick up
Total
382
3370
11%
Price
12%
Less maintenance
12%
Style
11%
Durability
Mileage
11%
11%
Easy Driving
Brand Reputation
Color
10%
11%
Pick up
11%
Excellent Very
Good
30
24
16
35
20
21
Good
Average
Poor
Total
18
24
23
16
15
20
12
10
16
100
100
100
25
12
103
27
20
112
19
17
87
11
22
71
100
100
500
18
29
127
42
no of respondents
90
80
12
10
16
15
18
24
20
70
60
16
23
50
11
22
19
17
27
Average
20
24
40
35
30
20
30
10
21
29
20
25
After Service
Knowledge Of
Sales man
Service
0
Available
12
Infrastructure
Good
Very Good
18
16
Poor
Excellent
Excellent Very
Good
43
21
Good
Average
Poor
Total
Festival
12
14
10
100
Offer
Exchange
15
31
29
12
13
100
Offer
Special Gift 20
19
30
20
11
100
Cash
11
21
19
34
15
100
Discount
Anniversary 14
13
12
20
41
100
Offer
Total
103
105
102
100
90
500
the Very Good, 23 respondents are Knowledge of salesman who
give Weight age on the good, 27 respondents are service who give
Weight age on the good, 29 respondents are Infrastructure who
gives Weight age on the Very Good.
44
Anniversary Offer
Cash Discount
Poor
Average
Special Gift
Good
Very Good
Excellent
Exchange Offer
Festival Offer
0
20
40
60
80
100
45
Excellent
Mileage
Available
Price
After Service
Pick up
Style
Color
Average
Total
31
14
16
20
21
18
20
27
167
Very
Good
26
25
22
31
36
25
24
24
213
Good
Average
Poor
Total
15
32
42
25
17
15
26
20
192
18
16
11
14
15
26
10
15
125
10
13
09
10
11
16
20
14
103
100
100
100
100
100
100
100
100
800
46
Average
27
Color
20
Style
18
Pick up
21
After Service
20
24
20
24
15
26
25
14
10
15
20
26
36
17
16
15
Excellent
Very Good
11
Good
31
Price
16
22
Available
14
25
25
42
16
26
20
11
32
31
Mileage
14
15
40
60
18
80
10
Average
Poor
9
13
10
100
47
CHAPTER: 6
TESTING OF HYPOTHESIS
48
TESTING OF HYPOTHESIS
A hypothesis is a proposition, which the researcher wants to
verify. It is tall test and my null hypotheses are,
H0: P = 0.40
H1: P 0.40
With reference to favorable market of Hero Honda Bike.
Now to verify this hypothesis I have taken significantlevel of
1 %. It means in the long run risk of making the wrong decision is
I out of every 100.
Since the sample size is more than 30 the use of Z test is
most applicable.
Now,
P = Probability of Hero Honda is given best by consumer.
Q = Probability of other company bike is given best by consumer.
X = Hero Honda bike is purchased by consumer.
N = Total no. of Respondents.
P = x/n
=51/100
=0.51
q =1-p i.e. 0.49
Z calculation
= pq
49
_______
_______
PQ
_______
100
= 0.51- 0.40
__________
__________
0.49*0.4
________
100
=
0.11
________
________
0.00196
0.11
_______
0.04427
= 2.48
= 2.48 < 2.56
So, How may accepted at 1 % level of significance. It may be
concluded that 40 % of consumer go for other company bike and
60 % go for Hero Honda bike.
50
CHAPTER: 7
FINDINGS
51
Findings
The study shows that 51 respondents are using Hero Honda.
The current trend is that respondents give maximum no of point
to price and mileage.
The study show that 48 respondents are come to know from
others and 26 respondents are come to know from friends
about Hero Honda bike.
The study shows that 55 respondents are purchase Hero Honda
bike by Loan and 45 respondents are purchase Hero Honda bike
by cash.
The study shows that 31 respondents are give point to mileage.
The study shows that more no. of respondents gives more
weightage to price. The more no. of serviceman, Students,
Businessmen, and others give more weightage to the price when
Professionals give more weightage to the mileage.
The study shows that 46 respondents are father take a decision
to purchase bike And 42 respondents are self take a decision to
purchase bike.
The study shows that 30 respondents are give rank to available
in show rooms and 35 respondents are give rank to after service.
The study shows that 43 respondents are giving excellent to
festival offer and 41 respondents are give poor rank to the
anniversary offer.
The study shows that 45 respondents are purchase Hero Honda
bike whose salary is below 5000 income.
52
53
SUGGESTIONS
1. Hero Honda should introduce a low price moped
2.
3.
4.
54
SWOT
Analysis
OF
HERO
HONDA
55
SWOT Analysis
Strengths
Ability to understand customers needs and wants
Recognized and established brand name
Effective advertising capability
Weaknesses
R&D is not close to the Hero manufacturing plant
Hero is vulnerable in the joint venture because
Honda Motor Company has so much power
56
Opportunities
Threats
CHAPTRE: 8
REFERENCE MATERIAL
BIBLOGRAPHY
APPENDICES
58
59
BIBLIOGRAPHY
www.herohonda.com
60
APPENDICES
QUESTIONNAIRE
61
[ ].
(b) No [ ]
If yes than,
[ ]
[ ]
(C) TV advertisement [ ]
(D) others
[ ]
[ ]
[ ]
(B) Mother
(D) other
[ ]
[ ]
[ ]
(B) By Loan
62
[ ]
attributes
excellent Very
good
good
Average Poor
price
Less maintenance
Style
Durability
Mileage
Easy driving
Brand reputation
Color
Available
After sales
Services
infrastructure
63
[ ]
[ ]
Very
poor
___________________________________________
___________________________________________
C. phone no:-__________________________________________
D. Age (in year):18 to 20
26 to 30
36 to 40
[ ]
[ ]
[ ]
21 to 25
31 to 35
41 & above
[ ]
[ ]
[ ]
E. Occupation:Services [ ]
Students [ ]
Others
[ ]
Businessman [ ]
Professional [ ]
F. monthly income:5000
10,000-15,000
20,000 Above
[ ]
[ ]
[ ]
5000-10,000
15,000-20,000
[ ]
[ ]
Sing.___________________
Date.___________________
65