A study on two wheeler bike in the Rural Area

INDUSTRY PROFILE:1.1 Introduction of Automobile industry:The automotive industry design, develop, manufacturer, market and sales the worlds motor vehicles. In 2008-09 more the 70 million motor vehicle including cars and commercial vehicles were produced world wide. In the 2008-09 the automobile industry produced over the 70 million vehicle, and employed over the 9 million people and represented over 5% of world total manufacturing employment. In 2008-09, the global vehicle registrations reach nearly 901 million vehicle. • The largest market of Europe is the 35% • North America 32.6% • Asia is the 23.8% • South Africa 4.6% • The middle east and Africa 3.6% The fastest growing market for automobiles are china, India, Russia, and brazil. In 2008 with rapidly rising oil prices, industries such as the automotive industries are experiencing a combination of pricing pressures fro row material cost and change in consumer buying habit. The industry is also facing to increase external competition from the public transport sector as the consumer re-evaluate their private vehicle usage.

1 The S.P.B. college of Business Administration

A study on two wheeler bike in the Rural Area

In the automobile industry there are a many players as the Hero Honda motor limited, Bajaj auto limited, TVS motor company limited. The other players of the two wheeler industry as the kinetic motor company limited, kinetic engineering limited, LML, Yamaha motors India limited, Majestic Auto limited, Royal Enfield, and Hero Honda motorcycle and scooter private limited. There are a various models of the different companies as the following Hero Honda:• CD 100 • Hero Honda Sleek • Splendor • Hero Honda Street • CBZ • Passion • Ambition • CD Down • Splendor plus • Passion plus • Karizma • CBZ star(*) • Ambition 135 • Super splendor • CD Deluxe
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A study on two wheeler bike in the Rural Area

• Glamour • Achiever TVS:• TVS Centra • TVS Fiero • TVS S Apache • TVS Victor • TVS star • TVS scooty pep Bajaj:• Bajaj avenger • Bajaj CT 100 • Bajaj platina • Bajaj Discover dtsi • Bajaj pulsar dtsi • Bajaj wave • Bajaj wind 125 Yamaha:• Yamaha G5 • Yamaha cruxs • Yamaha gladiator Kinetic:• Kinetic Aquila • Kinetic boss • Kinetic challenger
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A study on two wheeler bike in the Rural Area

• Kinetic comet • Kinetic GF

1.3 Automobile industry in India
The Indian automobile Industry consist of five segment: commercial vehicles, multi utility vehicles, and passenger cars, two-wheeler, three wheeler, tractors. The automobile industry in India the tenth largest in the world with the annual production of the approximately 2 million unit expected to become one of the major global automotive industries in coming year. A number of the domestic companies produce to the automobile industry in india and growing presence of multi national investment to has increase in over all growth. De-licensing in 1991 has put the Indian automobile industry on a new growth track, attracting foreign auto gains to setup the production facilities in the country to take advantage of various benefit it's offers. this took that Indian automobile production from the 5.3 million unit in the 2001-02 to 10.8 million unit in 2007-08. the other reason is to be attracting global auto manufacture to Indian are the country's large class population, growing earning power, strong technology capability and availability of trained manpower at competitive price.

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A study on two wheeler bike in the Rural Area

1.4 TWO-WHEELER INDUSTRIES
India is the second largest two-wheeler manufacture in the world and largest manufacture in the in the world. Indian two-wheeler segment include in a range of vehicle such as the scoter-geared and unguarded, moped and motorcycle. In india there are a 3 scooter manufactures, and 3 moped manufacture, Hero Honda, TVS, Bajaj Auto, Suzuki, Yamaha, etc are leading manufacturer. They have also dominated the global area after piaggo. production of the automobile industry during the financial year 2008-2009 is 17.22 million

Production of the two-wheeler automobile industry Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Production (in units) of two wheelers ( in million) 6.52 7.60 10.78 13.58 17.22

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A study on two wheeler bike in the Rural Area

Sales of the two-wheeler bike in the Indian market Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Total sales (in units) of two wheelers (in million) 6.20 7.05 11.42 7.86 12.16

Export of the two-wheeler bike in the Indian market Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Total exports (in units) of two wheelers (in lakhs) 3,66,407 5,13,256 9,25,464 11,20,103 13,18,308

1.2

HISTORY OF HERO HONDA

6 The S.P.B. college of Business Administration

A study on two wheeler bike in the Rural Area

Hero Honda is worlds third largest two wheeler maker. India has the largest no of the two wheeler in the world with 41.6 million vehicles. India has a mix 30% of the automobiles and 70% of the two wheeler in the country. India was the second largest two wheeler manufacture in the world starting in the 1950 birth of the (Automobile product of India)API that manufactured the scooter. What started out as a Joint Venture between Hero Group, the world's largest bicycle manufacturers and the Honda Motor Company of Japan, has today become the World's single largest two wheeler Company. Coming into existence on January 19, 1984, Hero Honda Motors Limited gave India nothing less than a revolution on two-wheels, made even more famous by the 'Fill it - Shut it - Forget it ' campaign. In the words of Mr. Brijmohan Lall Munjal, the Chairman and Managing Director, "We will continue to make every effort required for the development of the motorcycle industry, through new product development, technological innovation, investment in equipment and facilities and through and through efficient management."

2.1 COMPANY PROFILE

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A study on two wheeler bike in the Rural Area

Type:- Public company Founded:- January 19, 1989 Headquarter:- Hariyana, India Key people:- Brijmohan lall Monjal (Chairman & managing director) Industry:- Automobile industry Product:- Motorcycle, Scooter

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A study on two wheeler bike in the Rural Area

Hero Honda motorcycle limited is an Indian manufacture of the motorcycle and scooters. Hero Honda is a joint venture began 1984 between the Hero group of India from Japan. It has world biggest manufacturer of two-wheeled motorized vehicle since 2001. when it is produced 1.3 million motorbikes in a single year. India has largest number of the two-wheeler in the world with 41.6 million vehicles. India has a mix 30% of the automobiles and 70% twowheeler in the country. India has a second largest two-wheeler manufacturer in the world starting 1950s with birth automobile product of India (API) that manufacture scooters. In the 1980s, the Indian government regulation changed and permitted foreign companies to enter the Indian market through minority join venture as the: Hero Honda, TVS, Suzuki, Bajaj kawasaki, and kinetic Honda etc. The entry of the foreign companies charged the Indian market dynamic from the supply and demand side. With a large selection of two-wheelers on the Indian market, consumer started to be gain influence over the products they bought and raised higher consumer expectation. The industry produce more models, styling option, price and different fuel efficiencies. The foreign companies have to new technology helped make the product more reliable and with their better quality. Indian companies had to changed keep up with their global. During the 80's Hero Honda became the first companies in India to prove that it was possible to drive a vehicle without polluting roads. The company introduced to new generation of the motorcycle that set the industry
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A study on two wheeler bike in the Rural Area

benchmark for fuel thrift and low emission. Hero Honda sold the million bike purely on the commitment of increase the mileage. Hero Honda has consistently grown at double digit since inception; and today every second motorcycle sold in the country as the Hero Honda. Every 30 second, someone in India buys Hero Honda's top selling motorcycle splendor. Hero Honda value relationship with the customers. It's unique CRM (customer relationship management) initiative – Hero Honda passport program, one of the largest program of this kind of the world. The program has not only helped Hero Honda understand to it's customer and deliver value as different price points. Vision:• The vision was driven by the Hero Honda commitment to customer quality, and excellence and while doing so maintain, the highest standard of ethics and societal responsibilities. Mission:•

Hero Honda mission is to strive for synergy between technology, system and human resources to produce products and service that meet quality, perfomance and price aspiration of it's of it's customer. At the same time maintain the highest standard of ethics and responsibilities.

Objective & goal:• " To provide the excellent transportation to the common man at easily affordable price and provide total satisfaction in all it's spheres activity.
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A study on two wheeler bike in the Rural Area

" The objective of the Hero Honda company is to focus on the customer, providing reliable, and affordable mobility for the stake holders, like supplier, employees, society and environment at large.

1.3 Milestone:1983

Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan, signed.

• Shareholders Agreements signed. 1984 • Company incorporated.

Technical collaboration signed. First motorcycle (Model CD 100) produced. 200 motorcycles per day production. Quality circles launched.

1985
• •

1986

1987 • Engine plant started. 1989

New motorcycle model - "Sleek" introduced.

1991 • New motorcycle model - "CD 100 SS" introduced. • 5,00,000 motorcycle produced.

Mobile Service Workshop launched.

1992
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A study on two wheeler bike in the Rural Area

A school named Raman Kant Vidya Mandir inaugurated in memory of the first Managing Director of Hero Honda Motors Limited.

1993 • Sponsored Hero Group - Five Nations Cricket Tournament 1994 • New motorcycle model – "Splendor" introduced. • 1,000,000 motorcycle introduced. 1997 • New motorcycle model - "Street" introduced.

Foundation stone of Raman Munjal Vikas Kendra foundation stone laid by Chief Minister of Haryana.

1998 • 2,00,000 motorcycle produced. 1999 • New motorcycle model – "CBZ" introduced.

Sponsored '7th World Cup Cricket tournament' at England.

2000 • 4,00,000th motorcycle produced. • "Hero Honda passport programme" – CRM programme launched. • Appointed Sourav Ganguly, & Hrithik Roshan are brand ambassadors. • Sponsored '20th Cinema Express Award' 2001 • New motorcycle model – "Passion" introduced. • 5,00,000th motorcycle produced. 2002 • New motorcycle model – "Down" introduced.
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A study on two wheeler bike in the Rural Area

• New motorcycle model – "Ambition" introduced. • Appointed Virender sehwag, Mohmad kaif, Yuvraj singh, Harbhajan singh, and Zaheer khan as the brand ambassadors. • Mr. Pawan Munjal, Managing Director of Hero Honda Motors Ltd. 2003 • Become the first Indian company to crossed the cumulative 7 million sales mark. • New motorcycle model – " CD Down" introduced. • New motorcycle model – " Splendor plus" introduced. • New motorcycle model – "Passion plus" introduced. • New motorcycle model – "Karizma" introduced. 2004 • Crossed sales in over the 2 million unit in a single year, a global record. • Splendor – World's largest selling motorcycle crossed the 5 million mark. • New motorcycle mode – "CBZ*" introduced. • New motorcycle mode – "Ambition 135" introduced. • Joint technical agreement with Honda renewed. • Total sales crossed a 10 million motorcycle. 2005 • Hero Honda is the world largest No 1 two-wheeler company for the 4 year in row. • New motorcycle model – "Super splendor" introduced. • New motorcycle model – "CD Deluxe" introduced.
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A study on two wheeler bike in the Rural Area

• New motorcycle model – "Glamour" introduced. • New motorcycle model – "Achiever" introduced. • First scooter model from Hero Honda –"Pleasure" introduced. 2006 • Hero Honda is the world largest No 1 two-wheeler company for the 5 year in row. 2008 • Hero Honda is the world largest No 1 two-wheeler company for the 8 year in row. • New motorcycle model – "splendor NXG" introduced. 2009 • New motorcycle model – "Hunk" launched. • New motorcycle model – "Karizma - ZMR" launched.

1.4 AWARDS:1991 • Economic Times – Harvard business school awards for corporate performance for Hero Honda motor limited. 1992 • Honorary membership – Indian institution of industrial engineering. 1994 • Businessman of the year by business India. 1995 • National awards for outstanding contribution to the development of Indian small scale industry. 1999
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A study on two wheeler bike in the Rural Area

• National productivity awards for the best productivity awards in the category of automobile and tractor presented by the vice president of India. 2001 • Winner of the reviews 200 Asia's leading companies awards(9th rank amongst the top 10 Indian companies) 2002 • Winner of the reviews 200 Asia's leading companies awards(4th rank amongst the top 10 Indian companies) • Entrepreneur of the year award by business standard. • Business leadership awards Madras Management Association. 2003 • Winner of the reviews 200 Asia's leading companies awards(3rd rank amongst the top 10 Indian companies) 2004 • Corporate excellent award 2004 by Indian institute of material management. 2005 • Awaaz consumer award 2005 – India's most preferred two-wheeler brand by the CNBC in the automobile category. • Bike maker of the year award by overdrive magazine. 2006 • The NDTV profit car India & Bike India award in 2006 in the following category. • Bike of the year – Achiever. • Bike of the year – Achiever (up to 150cc category.)
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A study on two wheeler bike in the Rural Area

• Bike of the year Glamour (up to 125cc category) • No 1 automobile industry by TNS corporate social responsibility awards. 2007 • Bike of the year award CBZ X -treme by overdrive magazine. • The NDTV profit car India & Bike India award in 2006 in the following category. • Over all bike of the year CBZ X- treme. • Bike of the year CBZ X- treme up to (150cc category) 2008 • NDTV profit business leadership awards year 2008. • Top gear design awards 2008 – Hunk bike of the year award. • NDTV profit car India & bike India awards – Bike manufacturer of the year. 2009 • NDTV profit business leadership awards year 2009 – two-wheeler category. • Two-wheeler manufacturer of the year – By NDTV profit car & bike award 2009. 2010 • Company of the year awarded by economic times awards for corporate excellence 2008-09. • CNBC TV 18 overdrive Awards 2010 "Hall of fame" to splendor.

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A study on two wheeler bike in the Rural Area

3.1 CUSTOMER BUYING BEHAVIOR
The main aim of the marketing is to meet and satisfy target customer need and wants buyer behavior refers to the peoples of organization conduct activity and together with impact of various influence on them towards
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A study on two wheeler bike in the Rural Area

making decision on purchase of product and service in a market. The field of the customer behavior studies how individuals, group and organization select, buy, use and dispose of goods, service, ideas or experience to satisfied their needs and desire understanding consumer behavior and knowing customer are never simple. The wealth of products and service produced in a company make our economy strong. The behavior of human being during the purchase is being termed as ''Buyer behavior". Customer one says one thing but do another. They may not be in touch with their deeper motivations. They are responding to influence that chain their mind at the last minute. A buyer makes take a decision whether save or spend the money. "Buyer behavior is all psychological, social and physical behaviors of potential customer as they become aware of evaluate, purchase, consumer and tell others about product & service."

3.2 CONSUMER BUYING DECISION PROCESS:There are a following five stage in consumer buying process.

3.2.1 Problem Identification:The buying process start with when buyer recognizes a problem or need. The need can be internal or external stimuli. Marketers need to identify the circumstance that trigger a particular need. By gathering information from number of the customers, marketers can identify the most frequent stimuli that spark and interest in a product category. They can then develop marketing strategies that trigger consumer interest.

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A study on two wheeler bike in the Rural Area

3.2.2 Information search:The consumer tries to collect the information regarding various products and service. through gathering the information, the consumer learn about completing brand and their features. Information may be collected from magazine, newspaper, retailer, friends, family, members, telephone dictionary, business association, etc. marketers should find out the sources of information and their relative degree of important to consumers. Personal sources:- Family, friends, neighbor, etc. Commercial sources:- Advertising, sales person, dealers, packaging. Public sources:- mass media, consumer, rating organizations.

3.2.3 Evaluation of alternative:There is a no single process used by all consumers by one consumer in all situations. There is several first, the consumer processes, some basic concept are: First the consumer is trying to satisfy needs. Second, the consumer is looking for certain benefit for product solutions. The marketer must know which criteria the consumer will use in the purchase decision.

3.2.4 Choice of purchasing decision:From among the purchase of alternatives the consumer make solution. it may be to buy or not. If the decision is to buy . the other additional decision are : Which type of bike he must buy? From whom to buy a bike? How the payment to be made? And so on
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A study on two wheeler bike in the Rural Area

The marketers up to this stage has tried every means to influence the purchase behavior, but the choice is properly consumers. In the evaluation stage the consumer forms preference among the brand in the choice set. The consumer may also form an intension to but the most preferred brand.

3.2.5 Post Purchase Behavior:After purchase the product, the consumer will experience the same level of product. The marketer's job not end when the is buying must monitor postpurchase satisfaction, post- purchase action, post purchase use and disposal. (1) Post purchase action:The customer, satisfaction or dissatisfaction with the product influence subsequent behavior. if the customer satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfaction of consumer may abandon and return the product. (2) Post-purchase use or disposal:The marketer should also monitor new buyers use 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 marketers needs to know how they dispose of it; especially it can be hurt the environment.

3.3 characteristic of buyer behaviors:The chief characteristics of the buyer behavior are as follow:•

It consist of mental and physical activities which consumer undertake to get goods and services and obtain satisfaction from them.
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A study on two wheeler bike in the Rural Area

• It includes both observable activities such as the walking through the market to examine merchandise and making a purchase and mental activities such as forming attitudes, perceiving advertising material, and learning to prefer particular brands. • Consumer behavior are very complex and dynamic to constantly changing. And therefore, management need to adjust with the change otherwise market may be lot.

The individuals specific behavior in the market place is affected by internal factor, such as need, motives, perception, attitudes, as well as by external of environmental influence such as the family, social groups, culture, economics and business influences.

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A study on two wheeler bike in the Rural Area

4.1 SWOT ANALYSIS:-

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A study on two wheeler bike in the Rural Area

Strength:• Ability to understand customer's need and wants. • Recognized and established brand name. • Effective advertising capability.

Weakness:•

R&D is not close to the Hero manufacturing plant.

• Hero is vulnerable in the joint venture. • Honda motor company has to much power.

Opportunity:• Global expansion in to the Caribbean and central America. • Expansion of the target market • Becomes India's leader in the scooter market.

Threats:• Honda motorcycle and scooter India can take away market share and cause joint venture. • Bajaj motors is a strong competitor.

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A study on two wheeler bike in the Rural Area

5.1 Introduction:-

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A study on two wheeler bike in the Rural Area

"Marketing research means the systematic gathering, recording, analyzing of the data about problem relating to the marketing of goods and service" Marketing research has proved an essential tools to make all the needs of marketing management. Marketing research therefore is the scientific process of gathering and analyzing of marketing information to meet the need of marketing management. But the gathering of observation is must be systematic. The systematic conduct of research requires:•

Orderliness, in which the measurements are accurate.

• Impartiality in analysis and interpretation. All the research can be categorized in to basic and applied. 1. BASIC RESEARCH:- Basic research is that intended to expand the body of knowledge for the use of other. 2. APPLIED RESEARCH:- Applied research is one, which is carried out to find the solution for a particular problem or for guiding a specific decision. It is usually private in nature.

5.2 Objective of study:• To study automobile industry. • To study the marketing practices of followed by rural area. • To study the buyer behavior of rural consumer regarding twowheelers.
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A study on two wheeler bike in the Rural Area

• To identify the place of purchase and measure the satisfaction level of rural buyer.

5.3 Benefits of the study:• It will help to the company for evaluating the various products and services of Hero Honda bike. • The company would be able to design various schemes and service of the Hero Honda bike. • The company would be able to understand the consumer need's and preference.

5.4 Process of the Marketing Research:The marketing research is done in the systematic process. I have pursued the below process of the marketing study at Hero Honda.

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A study on two wheeler bike in the Rural Area

Problem Identification

Research Design

Data Collection

Data Analysis & Interpretation

Research Report

5.4.1 Problem Identification:The first and the most important step of marketing research is properly defining the problem. In order to identify the research problem two categories of problem should be carefully noticed.

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A study on two wheeler bike in the Rural Area

Here the researcher's problem are:• • •

The awareness of two wheeler bike is very less. The price of the various products of two wheeler bike are high. A number of the customers are not satisfied with services, new scheme and offers.

5.4.2 RESEARCH DESIGN:Research design indicates the method and procedure of conducting research study. Research design can be done in the following three types:1. Exploratory Research:Exploratory research focus on the discovery of new ideas and is generally based on the secondary data. 2. Descriptive Research:Descriptive research is undertaken when the researcher want to know the characteristics of certain groups. 3. Causal or Experimental research:An experimental research is undertaken to identify causes and effect relationship between two variables. The research design is: Descriptive research design

5.4.3 Data Collection and Sampling:28 The S.P.B. college of Business Administration

A study on two wheeler bike in the Rural Area

(A) Sources of data collection:Basically there are a two types of data i.e. secondary and primary

(I) Primary data collection:Primary data collection contains the following four types method:(1) Observation method:It contains causal observation, systematic observation, direct observation, and contrived observation. (2) Experimental Method. (3) Panel Method. (II) Secondary data collection:It can be collected from internal and external sources. 1. Internal sources:Various internal sources like employee, books, sales activity, stock availability, product cost, etc.

2. External sources:Libraries, trade publication, literatures, etc are some important sources of external data. The researcher has used primary data for the core purpose the project and primary data has been gathered by survey method. The researcher has also used secondary data. (B) Data collection tools:-

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A study on two wheeler bike in the Rural Area

To conduct a survey, the researcher has selected a structured questionnaire as an instruction for gathering valuable information from the customers. Questionnaire, which is used for the survey, is consisting of questions and checklist questions to check the customer feedback. (C) Sampling plan:The researcher has design a sampling plan that is consist of five decisions. (I) Sampling unit:Who is to be surveyed? The researcher has selected youngsters, businessman, and housewives in the rural area. (II) Sampling type:There are a two types of the sampling i.e. probability sampling and Non -. Probability sampling (i) Probability sampling:Probability sampling means each unit of the universe has equal chance of getting selected. The most frequently used sampling method are as below: (A) Simple Random Sampling. (B) Stratified Random Sampling. (C) Multi-stage Random Sampling. (D) Cluster Sampling. (E) Multi – phase Sampling. (F) Replicated Sampling. Probability

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A study on two wheeler bike in the Rural Area

(II) Non – Probability sampling:Non – probability sampling contains following methods:(A) Judgment sampling. (B) Convenience sampling. (C) Panel sampling. (D) Quota sampling. For this purpose the researcher has used non probability convenience sampling. (III) Sample size: Sample size means limited number of the respondent cover under the research study from a population and the researcher has taken a survey 100 respondent to know the buying behavior of the customer. (Iv) Sampling area:The researcher's area for survey was: • Kosad • Chaprabhata (V) Sampling unit:Here the researcher has randomly selected the respondent of the rural area of kosad and chaprabhata.

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A study on two wheeler bike in the Rural Area

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A study on two wheeler bike in the Rural Area

Qu-1 Age group wise classification Age 18-25 25-35 35-50 Above 50 Total Number of respondent Percentage

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A study on two wheeler bike in the Rural Area

Qu-02 Occupation wise classification Occupation Student Self business Businessman Service Total No of respondent 22 32 12 34 100 Percentage 22% 32% 12% 34% 100%

OCCUPATION WISE DISTRIBUTION
100

100 RESPONDENT 80 60 40 22 20 0
ST UDE NT SE LF B USI NE SS B USI NE SSNE SM A N SE R V I C E

32 12

34

T OT A L

OCCUPATION

RESPONDENT

Interpretation The graph indicate to the 34% respondent are the service people, and 32% are the self business, and 22% are the student, and 12% are the businessman who have to purchase the bike.

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A study on two wheeler bike in the Rural Area

Qu-03 Education wise classification Education S.S.C H.S.C Graduate Post-Graduate Total No of respondent 5 35 20 40 100 Percentage 2.5% 17.5% 10% 20% 100%

RESPONDENT

5

35

100

20

40

Interpretation The above table 40 respondent are post graduate and

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A study on two wheeler bike in the Rural Area

Qu-04 Do you have a own bike? Answer Yes No Total No of respondent 88 12 100 Percentage 88% 12% 100%

D YO H O U AVEB E IK 88 RESPONDENT 100 80 60 40 20 0 YE S AN W R S EE N O RSO DN EP NET 12

Interpretation In the above table there is a 88% respondent have to a bike and 12% respondent have to not the own bike.

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A study on two wheeler bike in the Rural Area

Qu-05

37 The S.P.B. college of Business Administration

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