BUYING BEHAVIOUR FOR SMALL CARS

INTRODUCTION

These days small cars are gaining huge attention by consumers in India. The entry of various small cars in the recent years witnesses the flourishing small car market. Various factors have catalyzed in pushing the segment popularity. The rise in the fuel price is one such reason. As these cars are affordable and fuel efficient, they easily lure the middle class population of the country. Presently, the market is flooding with small cars like Tata Indica, Maruti Suzuki Alto, Maruti Suzuki Wagon R, Hyundai Santro Xing, Hyundai Santro i10, Chevrolet Spark and more. The small car segment is the most competitive car segment currently in India. The car manufacturers launch new models on regular basis to surpass each other and capture the Indian market. Tata Motors cheapest car, the Nano, expected to cost Rs 1 lakh has created a sensation the small car industry with its debut in the auto expo 2008. The car is designated as the cheapest car in the world. Many global auto manufacturers are also planning to enter the small car market segments. The coming year will witness a flourishing growth in the small car sectors with the intrusion of auto majors like the Fiat, Ford, General Motors, Honda, Skoda, and Volkswagen. The car industry at present is in the way of investing over Rs 70,000 crore in India and 65% of which is aimed towards small car production sector.

WHY SMALL CARS ARE PREFERRED IN INDIA?

Two wheeler users or secondhand car users generally opt for small cars as they are affordable. These cars are much fuel efficient when compared to mid-size or luxury cars. The ever-increasing fuel price has affected the manufacturer as well as buyers. When car manufacturers are trying to attract more customers, the consumers are looking for fuel efficient cars. Small cars being a solution to this crisis getting more attention. India is famous for congested roads and small lanes, where driving big cars is a hassle. Thus Indian buyers choose small cars for commuting. Small cars are more compact and can be maintained pretty well when compared to the other segment cars. They are much reliable in terms of life and also resale value.

CONSUMER BUYING BEHAVIOR

"The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society." 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.

MAJOR SMALL CAR MANUFACTURERS

MARUTI UDYOG LTD. GENERAL MOTORS INDIA FORD INDIA LTD. HINDUSTAN MOTORS HYUNDAI MOTOR INDIA LTD. DC DESIGNS SWARAJ MAZDA LTD HONDA MOTORS LTD

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

NEED RECOGNITION
There will come a moment in time that will set off the decision making process. This will be realization, gradual or immediate, by the potentially interested consumer that they have some kind of problem or need for a product or service. The need might be simple and caused by an internal stimuli, eg. Our stomach is rumbling we are hungry and fancy a hamburger, we have headache and must buy some pills. Or it might be in response to some external marketing stimulus. More complex need recognition: On the other hand the need recognition might be more complex. Perhaps the existing product, i.e. the cooker is broken or worn out and needs replacing, or perhaps a newer more modern product is now available in the market. The chill of the winter might persuade a family for a vacation in the sun, or a special offer from Chevrolet might conceive them to forgo the holiday this year. Sometimes need might be more deeply hidden, perhaps within the subconscious, and be more to do with some sought of status anxiety or self-esteem problem. An aroused customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins.

INFORMATION SEARCH
Sources of collecting information

The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customers value and respect personal

sources more than commercial sources (the influence of word of mouth). The challenge for the marketing team is to identify which information sources are most influential in their target markets.

CONSUMER BEHAVIOR: 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 focusing more on manufacturer and C2C websites and less on third-party information sites and independent e-tailer sties.

KEY FACTORS IN VEHICLE CHOICE

When it comes to making their final decision about which vehicle to buy, consumers focus on factors such as reliability, safety, price and fuel economy. At the bottom of the list are cash-back incentives, named by fewer than half of consumers. The importance of incentives as a deciding factor has declined for the past several years, indicating that consumers today seem less interested in gimmicks when it comes to their car purchases. Where consumers are in the buying cycle can make a difference in how they rank the factors that influence their vehicle choice. For example, additional warranty coverage is important to consumers who are furthest away from the point of purchase; it was named by 69% of respondents who were 13 to 18 months from purchase. However, the number

declines as consumers get closer to actually buying the car: 55% of respondents who were within three months of purchase said extra warranty coverage was important. This reflects the fact that consumers will narrow down the factors that really matter to them as they get closer to the point of purchase. Demographic factors such as age and gender accounted for some variances. For example, older consumers tend to put more emphasis on reliability and safety than do younger respondents. Those in the 50-plus age group were also more concerned with environmental issues and fuel economy. The youngest respondents were most likely to rate the ability to research information on the Internet as an important factor in their vehicle decision. Women tend to rate most of the factors as more important than do men. The difference was most pronounced for cash-back incentives, low financing, safety, environmental issues, fuel economy and additional warranty coverage.

FACTORS INFLUENCING BUYERS BEHAVIOR

Final (or ultimate) consumers purchase for:

1. personal, 2. family, or 3. household use

FACTOR ANALYSIS FOR FACTORS AFFECTING CAR PURCHASING DECISION

S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 S12 S13 S14 S15 S16 S17 S18 S19 S20 S21 S22 S23 S24 S25 S26 S27 S28 S29 S30

Initial 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

Extract .833 .692 .760 .600 .695 .795 .512 .731 .783 .875 .851 .682 .642 .628 .674 .615 .562 .707 .855 .528 .662 .610 .542 .687 .835 .684 .844 .683 .857 .650

FACTORS CONSIDERED FOR THE PURPOSE OF STUDY

Factor 1: S1 : Price Of The Car S19 : Information Provided By Salesperson S25 :Safety S27 : Easy Availability Of Spare Parts S29 : Technology Factor 2: S10 : Government Policies And Regulations S11 : Import Duties Imposed By Government

Factor 3: S3 : Family Needs S5 : Brand Image S6 : Income Level S8 : Special Family Programs/Events Like Anniversary, Birthday S15 : Insurance Facility S18 : Credit Card Acceptance S26 : Car Accessories

Factor 4: S14 : Installment Payment Facility S16 : Location Of The Car Dealer Shop S24 : Looks S28 : Availability Of Service Station Factor 5: S4 : Status Symbol S12 : Advertisements And Promotions S17 : Home Delivery Facility S30 : Overall, I Am Satisfied With My Car I Own

Factor 6: S2 : You Take Suggestions Of Your Family Members S9 : Family Members & Friend Circle

S13 : After Sales Service

Factor 7: S20 : Availability Of Variety Of Cars Under One Roof S21 : Information Provided By Various Car Related Magazines S22 : Mileage S23 : Power

Factor 8:

Factor 9: S7 : Festival Season/Offers

POST PURCHASE EVALUATION

The final stage of decision making process is something known as post purchase evaluation. It is common for the customers to experience some concerns after making a purchase depending on Importance and value of the decision. Satisfaction After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer 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 buyers 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. Cognitive dissonance 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

CONCLUSIONS
Since Indian Automobile market is continuously in the prowl of surging as a major car manufacturer, people are purchasing car as there is increase of income of common people as well as change in tastes and preferences of consumers. It is important for the car manufacturers and car dealers to be able to understand the different factors affecting the extent in car purchasing behaviour. The factor analysis results indicate that factor 1 which consists of Information provided by salesperson; safety; easy availability of spare parts; technology are affecting the car purchasing behavior. People are more conscious about the on spot information provided about various cars who serves according to the needs and wants of the customer. The type of technology used and the wider reach of the service stations also affect the most on car purchasing decision. While government obligations and various policies like import duties, custom exemptions is seen as second most affecting driver factor 2, of purchase of cars. Factor 3 includes family needs; brand image; income level; special family programs/events like Anniversary, Birthday; insurance facility; credit card acceptance; car accessories affects customers car purchase decision. This shows that importance of family decisions, special occasions in family and the various services provided by car dealers. Factor 4, Table 7 includes installment payment facility; location of the car dealer shop; looks; availability of service station showing customers accessibility to the service provided. Factor 5 shows the impact of various promotional activities and extra care taken by car dealers. Factors 6 shows the impact of suggestion provided by family members and peers as well as price and after sales service provided. Factor

7 includes the infrastructural benefits of the shop and the variety of cars it stores .The last but not the least ones shows the impact of factors of technical specifications of the car and the festive season offers Overall, various internal and external factors like extra care facilities, location of the shops, various information provided by car dealers, advertisement and print media promotions, features of the car in all are contributing in making car purchasing behaviour of customers.

ANNEXURE

Opinion Survey
Section I
Demographic Factors
NameGender.. Age
Below18 18-25 26-35 36-50 51 and above

Occupation
Service Business Student Housewife

Section II
According to you which of these Factors are Affecting Car Purchasing Decision in India. Please fill according to instruction in bracket given below (SA-Strongly Agree; A-Agree; N-Neutral; DA-Disagree; SDA-Strongly Disagree) Sl.No 1. 2. 3. 4. 5. 6. 7. 8. 9. Statements Price Of The Car You Take Suggestions From Your Family Members Family Needs Status Symbol Brand Name Income Level Festival Season/Offers Special Family Programs/Events Like Anniversary, Birthday Family Members & Friend Circle Strongly Agree Agree Neutral Disagree Strongly Disagree

10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.

Government Policies And Regulations Import Duties Imposed By Government Advertisements And Promotions After Sales Service Installment Payment Facility Insurance Facility Location Of The Car Dealer Shop Home Delivery Facility Credit Card Acceptance Information Provided By Salesperson Availability Of Variety Of Cars Under One Roof Information Provided By Various Car Related Magazines Mileage Power Looks Safety Car Accessories Easy Availability Of Spare Parts Availability Of Service Station Technology Overall, I Am Satisfied With My Car I Own

BUYER BEHAVIOR FOR BUYING A LAPTOP

Buying a new laptop can present many challenges, especially if you're unfamiliar with laptops or notebook computers. The first laptop was created in the year 1982

and today we are in the year 2009, just by seeing the time span we can understand that so many options will be available to the buyer in the market. Over the last little while so much new laptop technology has hit the market... Intel Duo Processors, SLI, Dual Graphics... it can all be totally minded boggling to the average consumer. For the first time laptop buyer understanding all the techno jargon can be downright scary. Mainly because a whole new generation of notebook technology comes around every two years or less - probably much less when you consider all the new advances made recently. Regardless of all these fancy new improvements, devices and notebook technology, one always considers that he / she is buying a new laptop for you and you alone. You must first decide if all this new stuff is important to you? Do you really need all this new notebook technology? But most of all before one can consider that question you must first figure out WHY you want a laptop? Why are you buying a laptop? What chores or tasks do you want the laptop to perform? So what do you need the laptop for? Do you need a lightweight portable laptop for business trips or meetings? Do you need a student notebook for classes? Or do just want a desktop replacement computer that you can easily move around in your home? There are certain features of a Laptop which the buyer surely considers before buying a Laptop. These features are: RAM

 Processor System Hard Drive Memory Space Weight Size Price Warranty Battery Life Basically there are three key features which affect consumer buyer behavior for laptop: Social Features Personal Features Psychological Features Nowadays the Laptop Companies are finding it so much difficult to understand the Buyer Behaviour that now they have started offering online customization or designing of Personal Laptop according to the Buyers preference or purpose of buying e.g. DEL. These factors clearly depict clear difficult Laptop market conditions for the buyer, which makes it important to understand it.