INDIAN CONSUMER PERCEPTIONS AND BEHAVIOUR: A STUDY

WITH SPECIAL REFERENCE TO CAR PURCHASE

Harihar Panigrahi Roll No. U211029
In this assignment, attempt has been made by the researcher to bring out Indian Consumer Perception and Behaviour with special reference to purchase of Cars. Regression Analysis (Bi-variate & Multi-variate) has been done to understand effect of various variable, followed by Factor and Cluster Analysis.

ExPGP 2011-2014 Xavier Institute of Management, Bhubaneswar

Table of Contents
Abstract Introduction -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------2 2-3 3-5 5-9 9 9 10 10 11 11 12 13 - 14 14 - 15 15 22 23 25 25 28 29 31 32 32 33 34 35 36 36 - 38 39 - 41 41 - 47 47 - 48 48 - 49 49 50 - 57 Overview of Automobile Industry Passenger cars Industry in India Statement of Problem Literature Review Objective of the Study

Scope of Study, Methodology & Sampling Design Data Requirement and Source of Data Analysis and Interpretation of Data Demographic Profile Behavioural Attribute Bi-variate Analysis

Multivariate Analysis Additive Model & Interpretation Multiplicative Model & Interpretation Factor Analysis Co-relation Matrix KMO and Bartletts Test Communalities Total Variance Scree Plot Rotated Component Matrix Grouping of Variables after Factorisation Cluster Analysis Dendrogram Descriptive Statistics & Interpretation Suggestions Conclusion References Annexure-A (Survey Questionnaire)

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Abstract
In recent days India is witnessing a change in consumerism. The market is now predominantly consumer driver. The focus is shifting for product based marketing to need based marketing. Consumer is given many options to decide. Passenger car segment is no exception to this general trend. An effective market communication is imperative for reaching the target audience. So it is important that we study the consumer perceptions and behaviour of the car owners which will give us feedback on how marketing strategies can be worked. A Simple Random sampling technique was adopted in the study to select the sample respondents. As the size of the universe is restricted, the study has been conducted on the respondents who are the owners of all the segments of passenger cars. A total of 100 surveys were prepared and out of this, only 71 surveyers responded. Data were collected through an online survey process with help of Qualitrics.com regarding perception of the respondents on the buying behaviours of cars. The following tools were used in testing the hypotheses and in the analysis of the data. Descriptive statistical tools such as Percentage, Mean, Median and Standard deviation have been used to describe the profiles of consumers, preferred product attributes and level of satisfaction. Annova test has been used to test the association between the consumer demographic characteristics and preferred product attributes and satisfaction. Multiple regression analysis has been used to study the influence of income, interest rate and inflation rate. Factor analysis is employed to identify the key factors responsible for the consumers purchase of cars and level of satisfaction after purchase. Cluster analysis has been used to identify the consumers with similar tastes and preferences with respect to purchase of car. Introduction Human beings, in general, are complex creatures who often do not seem even to know their own minds. It is seldom easy, and sometimes impossible, to generalize about human behaviour. Each individual is a unique product of heredity, environment and experience. Predicting such a strange behaviour of people is a difficult and complicated task, filled with uncertainties, risks, and surprises. Accurate predictions can yield vast fortunes and inaccurate predictions can result in the loss of millions of rupees. Today, business around the world recognizes that the consumer is the king. Knowing why and how people consume products helps marketers to understand how to improve existing products, what types of products are needed in the market place, or how to attract consumers to buy their products. The era of liberalization, privatization and globalization has brought changes in society and lifestyle of people. Today the success of any firm depends upon the satisfaction of consumers. For satisfying the consumers the firm should know about the behaviour of the consumers. In these circumstances understanding consumer is a very difficult task because of the changing technology, innovation, and changes in life style. Marketers can justify their existence only when they are able to understand consumers? wants and satisfy them. The modern marketing concept for successful management of a firm requires marketers to consider the consumer as the focal point of their business activity. Although it is important for the firm to understand the buyer and accordingly evolve its marketing strategy, the buyer or consumer continues to be an enigma sometimes responding the way the marketer wants and on other occasions just refusing to buy the product from the same marketer. For this reason, the buyer's mind has been termed as a black box, which should be 2|Page

opened by the seller to be a successful marketer. Proportion of Vehicles Registered in India, Germany, Japan and USA Marketers can justify their existence only when they are able to understand consumers wants and satisfy them. The modern marketing concept for successful management of a firm requires marketers to consider the consumer as the focal point of their business activity. Although it is important for the firm to understand the buyer and accordingly evolve its marketing strategy, the buyer or consumer continues to be an enigma sometimes responding the way the marketer wants and on other occasions just refusing to buy the product from the same marketer. For this reason, the buyers mind has been termed as a black box, which should be opened by the seller to be a successful marketer. The study of consumer behaviour also includes an analysis of factors that influence purchase decisions and product use. Understanding how consumers make purchase decisions can help marketing managers in several ways. For example, if a manager knows through research that fuel mileage is the most important attribute for a certain target market, the manufacturer can redesign the product to meet that criterion. If the firm cannot change the design in the short run, it can use promotion in an effort to change consumers decision making criteria. For example, an automobile manufacturer can advertise a cars maintenance-free features while downplaying fuel mileage.

Overview of the Automobile Industry

Industry performance in 2011-12 Production The cumulative production data for April-March 2012 shows production growth of 13.83 percent over same period last year. In March 2012 as compared to March 2011, production grew at a single digit rate of 6.83 percent. In 2011-12, the industry produced 20,366,432 vehicles of which share of two wheelers, passenger vehicles, three wheelers and commercial vehicles were 76 percent, 15 percent, 4 percent and 4 percent respectively.

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Domestic Sales The growth rate for overall domestic sales for 2011-12 was 12.24 percent amounting to 17,376,624 vehicles. In the month of only March 2012, domestic sales grew at a rate of 10.11 percent as compared to March 2011. Passenger Vehicles segment grew at 4.66 percent during April-March 2012 over same period last year. Passenger Cars grew by 2.19 percent, Utility Vehicles grew by 16.47 percent and Vans by 10.01 percent during this period. In March 2012, domestic sales of Passenger Cars grew by 19.66 percent over the same month last year. Also, sales growth of total passenger vehicle in the month of March 2012 was at 20.59 percent (as compared to March 2011). The overall Commercial Vehicles segment registered growth of 18.20 percent during April-March 2012 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered a growth of 7.94 percent, Light Commercial Vehicles grew at 27.36 percent. In only March 2012, commercial vehicle sales registered a growth of 14.82 percent over March 2011. Three Wheelers sales recorded a decline of (-) 2.43 percent in April-March 2012 over same period last year. While Goods Carriers grew by 6.31 percent during April-March 2012, Passenger Carriers registered decline by (-) 4.50 percent. In March 2012, total Three Wheelers sales declined by (-) 9.11 percent over March 2011. Total Two Wheelers sales registered a growth of 14.16 percent during April-March 2012. Mopeds, Motorcycles and Scooters grew by 11.39 percent, 12.01 percent and 24.55 percent respectively. If we compare sales figures of March 2012 to March 2011, the growth for two wheelers was 8.27 percent.

Exports During April-March 2012, the industry exported 2,910,055 automobiles registering a growth of 25.44 percent. Passenger Vehicles registered growth at 14.18 percent in this period. Commercial Vehicles, Three Wheelers and Two Wheelers segments recorded growth of 25.15 percent, 34.41 percent and 27.13 percent respectively during April-March 2012. For the first time in history car exports crossed half a million in a financial year. In March 2012 compared to March 2011, overall automobile exports registered a growth of 17.81 percent. 4|Page

Passenger Car Industry in India

SUMMARY With expected sales of ~2.5 million passenger vehicles in FY11e, Indias passenger vehicle market ranks as worlds seventh largest; larger than markets like United Kingdom, France and Spain by volume.

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 India has been one of the few markets globally to buck the recessionary trend and record a strong 25.6% volume growth in FY10. The growth momentum continues to be on track with first eleven months of FY11 registering a growth of 29.8% over the corresponding period in the previous year. Strong economic growth, rising disposable income levels, favourable demographics, easy financing environment and relatively low car penetration have been the prominent growth drivers for the industry. While at the one end, the growing domestic market is attracting foreign OEMs, on the other, established players are positioning themselves as strong contenders to offer low-cost car manufacturing capabilities to the world. So far, most foreign car makers, barring Hyundai have focused on the sedan and premium segment cars, shying away from the highly competitive small-car segment; with these players now launching small-cars that too designed keeping in mind specifically the Indian consumer, the small-car segment, which has so far been dominated by three players commanding over 80% of the volumes is likely to see increase in competitive intensity. Some of the newly launched models have had good initial response and have been aggressively priced, indicating new entrants strategy to grab market share while sacrificing profitability. Large established incumbents in the Indian passenger vehicle market derive strength from their low-cost manufacturing capabilities (especially in the small-car segment), strong brand recognition and wide distribution & servicing reach, something which can be difficult to replicate. We believe, while the incumbents will have these competitive advantage over newer entrants, these are likely to diminish in the long-run as new players with global experience gain brand recognition and expand their network and product offerings. Superior small-car portfolio, a wide distribution and service network and competitive pricing on the back of locally sourced auto components are going to be the key factors in determining the success of a foreign OEM in the Indian market. While competitive pressures are likely to intensify, we believe that strong GDP growth, rising disposable income levels, easy availability of finance and more particularly Indian consumers aspiration to own cars, especially given the state of public transport, would ensure that the industry will experience strong growth in the foreseeable future. We estimate the Indian passenger vehicle industry will reach ~4.85 million in annual sales by FY16, representing a growth of 10.8% CAGR over the next five years. Notwithstanding the strong long-term outlook, the industry faces certain near term challenges inform of rising commodity prices, interest rates, tightening liquidity scenario and increased competitive intensity. We believe that rising labour costs is also likely to see cost increases across the supplier network, though it is likely to be mitigated by greater scale economies and higher degree of automation. Within the lower priced segment (mini/compact), the price band is widening, with higher priced but better value products achieving higher volumes than some of the lower priced models. The price range may widen further depending on the success of the Nano segment.

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Strong growth drivers augur favourable prospects for the Indian passenger vehicle market
The domestic passenger vehicles industry has been on a relatively steady growth phase over most of the last decade and has registered a 10 years CAGR of 10.3% during the period. It has been one of the few markets worldwide which saw growing passenger car sales during the liquidity crisis and recessionary phase witnessed during FY09. Buoyant economic growth, rising disposable income levels, favourable demographics, strong growth from tier II/III cities and rural India, together with improving availability of vehicle financing at competitive interest rates have been the key factors fuelling growth in the Indian passenger vehicle market. Among the emerging markets, India continues to have one the lowest car density, estimated at 13 cars per 1,000 people compared to other markets such as China (45), Brazil (160), and Indonesia (42). The growth has also been supported by OEM led initiatives like whole host of new model offerings from both from existing companies as well as new entrants in the market.

Furthermore, in India, the car prices have remained relatively flat over the years (adjusted for the decline in duties) compared to steadily rising per capita income levels. In addition to the strong domestic demand, the OEMs have also been positioning themselves as competitive small-car makers, benefitting from Indias technological capabilities in the manufacturing small-cars, scale economies and a well-established component supplier base. Over the past 10 years, export of vehicles have grown at a CAGR of 31.7% to achieve volumes of 0.45 million units in FY10. ICRA expects overall growth momentum to be sustained driven by strong domestic demand and increased thrust on exports. The Indian Automobile Industry has got a tremendous market potential. With the growth of population and change in their pattern of life style as a result of urbanization, there has been a rapid increase in demand for Indian automobiles. The purpose of this chapter is to survey the growth of Automobile Industry in India and their role in economic development and to bring out the profile of the study area. The entire discussion has been divided into three main sections. The first section traces the growth of Automobile Industry. The second section discusses origin, growth and other aspects of Passenger Car Industry. The third section gives a brief profile of the study area. The Indian Automobile Industry has flourished like never before in the recent years. This extraordinary growth that the Indian automobile industry has witnessed is a result of a major factor namely, the improvement in the living standard of the middle class and an increase in their disposable incomes. Moreover, the liberalization steps, such as, relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies initiated by the Government of India, have played an equally important role in bringing the Indian Automobile Industry to great heights. The increased demand for Indian automobiles has resulted in a large number of multinational auto companies, especially from Japan, the U.S.A., and Europe, entering the Indian market and working in collaboration with the Indian firms. Also, the institutionalization of automobile finance has further paved the way to sustain a long term high growth for the industry. The Future Growth Drivers like higher GDP Growth, Indias huge geographic spread mass transport system, increasing road development, increasing disposable income with the service sector, cheaper (declining interest rates) and 7|Page

easier finance schemes, replacement of aging four wheelers, graduating from two wheelers to four wheelers, increasing dispensable income of rural agricultural sector, growing concept of second vehicle in urban areas. India produced about eight million two-wheelers, three million passenger cars and utility vehicles in 2009 2010. It ranks second in the world in the production of the two-wheelers and thirteenth in the production of the passenger cars.

Automobile Industry A Global Hub

15 manufacturers of passenger cars and multi-utility vehicles, 9 manufacturers of commercial vehicles, 16 manufacturers two/ three wheelers, 14 manufacturers tractors, 5 manufacturers of engines. 8|Page

Market Share of Car Manufacturers in India in 2012

Statement of the Problem

Due to the emergence of globalization and liberalization there is a stiff competition among the variety of car industries which are focusing attention in capturing the Indian markets. Cars though considered as luxury once, now occupies a part of day-to-day life and has become a necessity. People who were not ready to spend their money on luxuries have now changed their attitude that yesterdays luxuries are todays necessities. To be a successful marketer it is absolutely essential to read the minds and perceptions of the prospective buyers of cars. In addition to the above, the due weightage which is given by the Government for the growth of passenger car industry and the involvement of the consumers in the selection of a particular brand of car have also made the researcher to undertake a study on the passenger car industry with special reference to the perceptions, behaviour and satisfaction of owners of cars.

Review of Literature
Mandeep Kaur and Sandhu (2006) attempted to find out the important features which a customer considers while going for the purchase of a new car. The study covers the owners of passenger cars living in the major cities of the State of Punjab and the Union Territory of Chandigarh. The respondents perceive that safety and comfort are the most important features of the passenger car followed by luxuriousness. So the manufacturers must design the product giving maximum weightage to these factors.

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Chidambaram and Alfread (2007) postulates that there are certain factors which influence the brand preferences of the customers. Within this framework, the study reveals that customers give more importance to fuel efficiency than other factors. They believe that the brand name tells them something about product quality, utility, technology and they prefer to purchase the passenger cars which offer high fuel efficiency, good quality, technology, durability and reasonable price. Satya Sundaram (2008) analyzed how the competition makes the automobile manufacturer to launch at least one new model or a variant of the model every year. This survey also pointed out that diesel cars are becoming popular in India and the announcement of reductions in excise duties by the government has helped to some extent to boost the demand. Clement Sudhakar and Venkatapathy (2009) studied the influence of peer group in the purchase of car with reference to Coimbatore District. It was also found that the influence of friends is higher for the purchase of small sized and mid sized cars. Dr. S Subadra, Dr. K M Murugesan and Dr. R Ganapathi (2010) studied the behaviour of consumers, their importance in the aspects of life style, perception of product attributes and level of satisfaction in the purchase of car with reference to Namakkal District in Tamilnadu. It was also found that the influence of driving comfort and fuel economy are the most important features of the passenger car followed by availability of spare parts and price of the car. Brown et al (2010) analyzed the consumers attitude towards European, Japanese and the US cars. The country of origin plays a significant role in the consumers behaviour. The brand name, lower price and distributors reputation completely have a significant impact on the sale of passengers car. However, the present study differs from the above, in that, the buyer behaviour in entire India is sought to be analyzed here. The scope and the area of the study are unique in nature. Objectives of the Study The purpose of this research is to study the behaviour of consumers, their importance in the aspects of life style, perception of product attributes and level of satisfaction. Hence, the study is aimed at the following objectives. 1. To introduce samples for further analysis. 2. To identify the variables which effect domestic sale of cars in India through multivariate regression analysis and establish relations. 3. To identify the various socio-economic factors that influences the purchasing pattern of respondents. 4. To understand the causes for purchasing car. 5. To evaluate car owners perception and behaviour pertaining to the purchase and use of cars. 6. To identify and analyze the factors influencing the purchase of cars and 7. To make suggestions in the light of the findings of the study.

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Scope of the Study Now a days, car has become a necessity and forms a part of life. Therefore, there is a significant scope to examine the perception and purchase behaviour of the consumers of cars. The study is restricted to educated segments who are mostly in service spread across India mostly in Southern part of India. Methodology Before beginning to carry out the present study, the researchers initially conducted a pilot study in order to find out the feasibility and the relevance of the study. The present study is based on the perceptions, behaviour and satisfaction of the consumers for passenger cars. Sources of the primary and the secondary data are discussed. The researcher has used online survey technique for the purpose of collecting primary data. It took almost 4 weeks for the researcher to complete the process of collection. As the universe of the study is large, the researcher has decided to select sample respondents by adopting the Simple Random Sampling Technique. The secondary data have been collected from the companies bulletins, annual reports and websites. Further, the researchers has used national and international journals in the field of management, as well as marketing, business magazines, business dailies, referred text books in marketing management as well as consumer behaviour and academic studies conducted in the related areas for the purpose of building a strong conceptual background including the review of literature for the study. Sampling Design This study was conducted among the car owners residing most parts of South India baring few from other parts of India. A Simple Random sampling technique was adopted in the study to select the sample respondents. As the size of the universe is restricted, the study has been conducted on the respondents who are the owners of all the segments of passenger cars. A total of 100 surveys were prepared and out of this, only 71 surveyers responded. Data were collected through an online survey process with help of Qualtrics.com regarding perception of the respondents on the buying behaviours of cars. The following tools were used in testing the hypotheses and in the analysis of the data. Descriptive statistical tools such as Percentage, Mean, Median and Standard deviation have been used to describe the profiles of consumers, preferred product attributes and level of satisfaction. Annova test has been used to test the association between the consumer demographic characteristics and preferred product attributes and satisfaction. Multiple regression analysis has been used to study the influence of income, interest rate and inflation rate. Factor analysis is employed to identify the key factors responsible for the consumers purchase of cars and level of satisfaction after purchase. Cluster analysis has been used to identify the consumers with similar tastes and preferences with respect to purchase of car.

Data Requirement and Source of Data

The project assignment covers mainly 3 areas i.e. Part-A : Regression Analysis Bi-variate and Multivariate Part-B : Factor and Cluster Analysis. 11 | P a g e

For the part A of the assignment, the researcher had taken the relevant time series data from the following source. 1) Society of Indian Automobile Manufacturers Association (SIAM) 2) India Stat Data Base 3) CMIE Data Base Following Table shows Car Sales and its determinants.
Year Domestic Car Per Capita Net Inflation Interest Log_Domestic Log_Per_Capita Log_Inflation Log_Interest Sales (x 1000) Income in Rs. Rate Rate _Car_Sale _Income _Rate _Rate (x 1000) 233.388 6.93 9.94 16.5 2.37 0.84 1.00 1.22 240.44 7.86 1.13 16.5 2.38 0.90 0.05 1.22 251.879 12.18 12.29 16.5 2.40 1.09 1.09 1.22 253.407 10.93 19.9 16.5 2.40 1.04 1.30 1.22 257.648 10.35 12.45 19 2.41 1.02 1.10 1.28 365.918 9.76 4.8 19 2.56 0.99 0.68 1.28 518.762 11.34 4.58 15 2.71 1.05 0.66 1.18 666.144 13.65 7.96 16.5 2.82 1.14 0.90 1.22 755.229 16.19 12.3 14.5 2.88 1.21 1.09 1.16 672.69 17.82 2.92 14 2.83 1.25 0.47 1.15 648.458 18.31 12.77 13 2.81 1.26 1.11 1.11 907.384 20.52 3.77 12 2.96 1.31 0.58 1.08 827.863 21.96 3.03 11.5 2.92 1.34 0.48 1.06 825.08 21.85 3.53 11.5 2.92 1.34 0.55 1.06 903.713 20.42 1.7 10.75 2.96 1.31 0.23 1.03 1211.979 23.19 1.12 10.25 3.08 1.37 0.05 1.01 1469.866 28.55 2.76 10.25 3.17 1.46 0.44 1.01 1617.423 33.75 2.69 10.25 3.21 1.53 0.43 1.01 2017.622 38.25 10.48 12.25 3.30 1.58 1.02 1.09 2047.668 40.61 9.1 14.5 3.31 1.61 0.96 1.16 2483.605 46.49 1.78 13 3.40 1.67 0.25 1.11 2788.665 54.84 9.56 11.75 3.45 1.74 0.98 1.07

1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

For the part-B of the assignment a Survey questionnaire covering various aspects of consumer behaviour for the car purchase has been framed out by the researcher including demographic profile. An online survey managed by Qualtrics.com covering the questionnaire was sent out to various respondents known to the researcher in all parts of Country and almost 2 weeks was given to the respondents to answer the questions. There after response as received from the respondents were exported in the form of excel file for further analysis with help of SPSS. (For details of the questionnaire, refer annexure-A at the end). Following link can be referred for the online survey questionnaire done through Qualtrics.com. https://qasiatrial.asia.qualtrics.com/SE/?SID=SV_bazduwbr8rwF6xn

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Analysis and Interpretation of Data

The results of the analysis of the collected data are presented below: Demographic Profile :

Interpretation (Demographic Profile): 1. Maximum population (approx. 70%) of respondents are from South India followed by East. Hence, the consumer buying behaviour will represent the South Indian behaviour to a large extent.

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2. There is almost a homogeneous distribution of income of the respondents across all slabs excepting less than Rs. 5 Lakhs. This indicates that most of the respondents are either in middle class or higher middle class and their affordability for the car is good. 3. The age, occupation and nature of job distribution indicate that most of the respondents are in middle age and their occupation is service in private organisations. To a great extent it can be inferred that being in service with private organisations, the salary might be good. 4. More than 50% of respondents are having post graduate and PhD degrees and this indicate that the education and knowledge level of respondents is very high. Behavioural Attribute : Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Factor Mileage / Fuel Economy Availability of Service Station Near Comparison of cars before buying Air Conditioning System Easy Availability of Spare Parts Technology Power and Pick Up Driving Comfort Family Needs Road Grip Child Lock Price Based on Type of Fuel i.e. / Diesel / Petrol / Electric Colour of the Car Brand Name of the car Free Pickup & Drop during Service Good Audio/Video System Advice from Friends / Colleagues Anti Brake Skidding Advice from Family Members Air Bags Car Accessories Resale Value Insurance Facility Extended Warranty Environmental / Pollution norms and regulations Instalment Payment Facility Fog Light Mean 1.254 1.380 1.380 1.408 1.423 1.479 1.521 1.549 1.549 1.62 1.662 1.676 1.704 1.704 1.831 1.845 1.873 1.887 1.930 1.944 1.958 1.972 1.986 2.042 2.099 2.127 2.225 2.324 Standard Deviation 0.47 0.57 0.57 0.495 0.525 0.557 0.557 0.529 0.580 0.618 0.736 0.789 0.684 0.684 0.697 0.951 0.735 0.662 0.834 0.504 0.933 0.845 0.933 1.034 1.030 0.940 0.974 1.039 Median 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 14 | P a g e

29 30 31 32 33 34 35 36 37 38 39

Rear View Camera and Reverse Gear Sensor In Built Navigation System Location Of The Car Dealer Shop Status Symbol Sleek Gear Shift Knob Advertisements And Promotions Buying during Festival Season / Promotional Offers Mobile Charger Chrome Plated Door Handles Availability Of Variety Of Cars Under One Roof Soft Drinks Holder

2.352 2.366 2.408 2.423 2.451 2.577 2.620 2.648 2.746 2.803 2.958

0.927 0.815 1.103 0.921 0.891 0.822 1.019 1.232 1.130 1.203 1.006

2 2 2 2 2 3 3 3 3 3 3

29 30 31 32 33 34 35 36 37 38 39

Interpretation (Behavioural Attribute) :

Most of the respondents have rated Mileage / Fuel Economy as having strong influence on purchase decision of the car. This is simple due to the fact that all the respondents are in private service where their salary comes to their account after deduction of income tax unlike other service. Since fuel expenses is a recurring expenses all the respondents need to have less cash outflow when buying fuel which is indicative of fuel economy. This is in expected lines. In the next category of strong to moderate influence are (1) Availability of Service Station (2) Comparison of cars before Buying (3) Air Conditioning system (4) Availability of spare parts (5) Technology (6) Power and Pick Up (7) Driving Comfort (8) Family Needs (9) Road Grip (10) Price. This is based on the obtained mean values varying between 1.38 1.67. The rest of the factors moderately influenced the respondents in their purchase decision.

Part-A : Regression Analysis

Bi-Variate Analysis:
Bi-variate analysis is one of the simplest forms of the quantitative (statistical) analysis. It involves the analysis of two variables (often denoted as X, Y), for the purpose of determining the empirical relationship between them. In order to see if the variables are related to one another, it is common to measure how those two variables simultaneously change together. Bi-variate analysis can be helpful in testing simple hypothesis of association and causality checking to what extent it becomes easier to know and predict a value for the dependent variable if we know a case's value on the independent variable. We want to explain variation of domestic sales of car in India with respect to independent variable which in our case is net per capita availability of income.

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A Priori Reasoning: With constant increase in Indian GDP year on year and with effect of globalisation
effect, the net per capita income / disposable income at the hands of every Indian is increasing. Further with advent of MNCs in Indian market, the job prospect as well as better salary makes the pay cheques thicker and thicker. As a result, a rational human being would prefer to spend his disposable income in buying expensive products like cars, electronic goods etc. This is more likely to push demand of car sales. In the Bi-variate analysis, we will consider Domestic sale of cars as dependent variable and per capita net availability of income (PCNI) is independent variable. Bi-Variate Data Set

Year

Domestic Car Per Capita Net Log_Do Log_Per Per Capita 2 Sales (x 1000) Income in Rs. mestic_ _Capita Net Income (x 1000) Car_Sale _Incom in Rs. (x 1000) e 233.388 240.44 251.879 253.407 257.648 365.918 518.762 666.144 755.229 672.69 648.458 907.384 827.863 825.08 903.713 1211.979 1469.866 1617.423 2017.622 2047.668 2483.605 2788.665 6.93 7.86 12.18 10.93 10.35 9.76 11.34 13.65 16.19 17.82 18.31 20.52 21.96 21.85 20.42 23.19 28.55 33.75 38.25 40.61 46.49 54.84 2.37 2.38 2.40 2.40 2.41 2.56 2.71 2.82 2.88 2.83 2.81 2.96 2.92 2.92 2.96 3.08 3.17 3.21 3.30 3.31 3.40 3.45 0.84 0.90 1.09 1.04 1.02 0.99 1.05 1.14 1.21 1.25 1.26 1.31 1.34 1.34 1.31 1.37 1.46 1.53 1.58 1.61 1.67 1.74 48.02 61.73 148.30 119.52 107.18 95.32 128.49 186.26 262.21 317.65 335.41 421.14 482.24 477.52 416.94 537.78 814.94 1139.06 1463.06 1648.77 2161.51 3006.88

1989-90 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

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Summary of all 5-Types of Equations

Sl. Equation Form No.
Y = a + bX 1 Car Sale = -260.019+56.995*PCNI R =0.979 (0.000) Log Y = a + b Log X Log(Car Sale) = 1.176+1.333*Log(PCNI) R =0.935 (0.000) Y = a + bx + cx2 Car Sale = -239.095+55.032*PCNI+0.034*PCNI (0.000) (0.811) Y = a + bt
2

a
-260.019

b
56.995

c
-

Sig. Level
0.000

0.979

1.176

1.333

0.935

0.000

R =0.979

-239.095

55.032

0.034

0.979

0.000 & 0.811

Car Sale = -248.798+108.452*Year_Count R =0.859 (0.000) Log Y = a + bt Log(Car Sale) = 2.271+0.053*Year_Count R =0.963 (0.000)
2

-248.798

108.452

0.859

0.000

2.271

0.053

0.963

0.000

1. Scatter Plot, Model and Co-efficients for the Equation Form : Y = a + bX

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2) Scatter Plot, Model and Co-efficients for the Equation Form: LogY = a + bLogX

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3) Scatter Plot, Model and Co-efficients for the Equation Form: Y = a + bX + cX2

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4) Scatter Plot, Model and Co-efficients for the Equation Form : Y = a + bt

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5) Scatter Plot, Model and Co-efficients for the Equation Form: LogY = a + bt

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Conclusion :
1) In all the 5 equation forms i.e. (1) Y=a+bX, (2) LogY=a+bLogX, (3) Y = a+bX+cX2, (4) Y = a+bt and (5) Log Y = a+bt, the value of R2 which is the co-efficient of determination that explains explanatory power of the regression equation is high excepting for the equation (4) which is slightly lower compared to others and in acceptable limits. This means the variables have strong co-relation. 2) Similarly, the significance level for all the 5 forms of equations is very good excepting for the equation form (3) i.e. qudratic one (only square one) and within 0.10 and hence acceptable. This means, we do not have sufficient reasons to reject the hypothesis. However, looking into all 5 forms of the equations with their R2 values and significance level, we can fairly estimate that the a priori reasoning that Sale of Cars will depend upon the net availability of per capita income follows all 4 equation form no. i.e. (1) Y=a+bX, (2) LogY=a+bLogX, (3) Y = a+bt and (4) Log Y = a+bt. However, among all these 4 forms, the value of R2 is high in equation form (1) i.e. Y = a+bX. Hence,we can conclude that the regression quation for this bivariate data as :Car Sale = - 260.019 + 56.995*PCNI (0.000)

R =0.979

Multi-Variate Analysis:
We want to explain variation of domestic sales of the car in India with respect to the independent variables. Based on the details as obtained from CMIE, India Stat and SIAM data base we can define dependent and independent variables, as indicated below. Dependent Variable : Year wise sale of cars Independent Variables : Per Capita Income, Inflation Rate, Lending (Interest) Rate 22 | P a g e

A Priori Reasoning : With constant increase in Indian GDP year on year and with effect of globalisation
effect, the net per capita income / disposable income at the hands of every Indian is increasing. Further with advent of MNCs in Indian market, the job prospect as well as better salary makes the pay cheques thicker and thicker. As a result, a rational human being would prefer to spend his disposable income in buying expensive products like cars, electronic goods etc. This is more likely to push demand of car sales. Increase in inflation rate will lead to reduction in purchasing power of prospective car buyers and hence this may lead to reduction of sale of cars. Most of the Indian consumers buy their cars with bank loans. With increase in lending rates by the banks, the prospective car buyers will think twice before going for bank loans. Hence, the increase in bank loan will lead to reduction in sale of cars. Now, we shall test the hypothesis with both models i.e. Additive as well as Multiplicative Model.

Additive Model: As per additive model for regression, we can write the following equation i.e.
Domestic Car Sales = a + b1*Per Capita Net Income+b2*Inflation Rate+b3*Interest Rate + U Where a = Constant i.e. Y axis intercept b1 = Co-efficient of Per Capita Income b2 = Co-efficient of Inflation Rate b3 = Co-efficient of Interest Rate and U = Error Term After incorporating the details i.e. dependent and independent variables in SPSS package, we get the following output. Also, 3 iterations with elimination of one of independent variables at each time was done to see the effect more in detail.

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Dependent Variable Domestic car Sale (1) (2) (3) (4)

Constant (a)

Slope-X1 (b1) Per Capita net Income (PCNI)

Slope-X2 (b2) Inflation Rate -8.895 (0.122) 14.711 (0.646) -6.305 (0.205)

Slope-X3 (b3) Interest Rate 12.15 (0.337) -172.411 (0.008) 2.54 (0.824) -

Adjusted R^2

-388.938 3288.089 -302.36 -208.254

57.964 (0.000) 57.32 (0.000) 56.607 (0.000)

0.979 0.278 0.977 0.979

The estimated Equation can be written by taking the values from the output as: (Additive Regression Model)
Domestic Car Sale = -388.938+57.964*PCNI-8.895*Inflation Rate+12.15*Interest Rate
(0.00) (0.122) (0.337) 2 Adjusted R =0.979

Interpretation:
1) The adjusted R2 which is a better estimate of co-efficient of determination (which defines the explanatory power of regression equation) is 0.979. This means, the variability of Domestic Sale of Car can be very well explained by these 3 variables i.e. Per capita Net Income, Inflation Rate as well as Interest rate.

24 | P a g e

2) The value of F in the SPSS output is 324.075 which is very high. This means F is statistically significant i.e. there is a fair degree of association between dependent and independent variable. This is also explained by the explanatory power i.e. Adjusted R2. 3) Excepting inflation rate, all other variables are positively co-related. This means, with increase of per capita net income and decrease in inflation rate, there will be increase in sale of cars, which is a priori correct. However, the above equation also tells us that with increase in interest rate, there will be increase in sale of car which is not a priory correct. 4) The sign of the slope of the variable per capita net income (PCNI) is positive and it is highly significant also i.e. 0.001 (less than 10%). Also, the sign of the slope of the variable Inflation Rate is negative and its significance level is very close to cut off limit of 10% (it is 12.2%). Even though from a theoretical perspective we can ignore significance of inflation rate (due to its significance level > 10%) but the fact lies that since the slope of the variable is negatively co-related, the sale of car will increase with decrease in inflation rate. 5) Further, the significance level of the variable Interest Rate is 0.337 which is very high which means this variable is statistically in significant and this is also explained by the +ve slope un-standardized coefficient. The +ve relationship between domestic Car sales and interest rate is impractical. However, since the co-efficient is statistically not significant, one can not be sure about the impact of the variable. 6) From all the standardized coefficients, it is clear that the value of the standardized coefficients for the per capita net income is highest (1.006) compared to that of other variables. This means, per capita net income (PCNI) is most important variables in explaining the variation as compared to other variables.

Multiplicative Model: As per multiplicative model for regression, we can write the following equation i.e.
b1 b2 b3 Domestic Car Sales = a *Per Capita Net Income *Inflation Rate *Interest Rate

Taking Log on both sides, we can rewrite the above equation as :Log_Domestic Car Sales=Log a + b1*Log_Per Caipta Net Income + b2*Log_Inflation Rate + b3*Log_Interest Rate+U Where a = Constant i.e. Y axis intercept b1 = Co-efficient of Per Capita Income b2 = Co-efficient of Inflation Rate b3 = Co-efficient of Interest Rate and U = Error Term After incorporating the details i.e. dependent and independent variables in SPSS package, we get the following output. As done in case of additive model, here also 3 additional iterations by eliminating the independent variables one at a time is conducted to see the effect and the summary of the same is put below.

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26 | P a g e

Dependent Variable Log_Domestic car Sale

Constant (a)

Slope-X1 (b1)

Slope-X2 (b2)

Slope-X3 (b3)

Adjusted R^2

Log_Per Capita Log_Inflation Log_Interest net Income Rate Rate (PCNI) 1.401 6.426 1.707 1.267 1.288 (0.000) 1.241 (0.000) 1.311 (0.000) -0.082 (0.209) 0.134 (0.419) -0.091 (0.094) -0.098 (0.799) -3.214 (0.000) -0.366 (0.272) 0.935 0.517 0.932 0.938

(1) (2) (3) (4)

The estimated Equation can be written by taking the values from the output as: (Multiplicative Regression Model)
Log_Domestic Car Sale = 1.401+1.288*Log_PCNI-0.082*Log_Inflation Rate-0.098*Log_Interest Rate
(0.00) (0.209) (0.799) 2 Adjusted R =0.935

Interpretation: Log-Linear
1) The adjusted R2 which is a better estimate of co-efficient of determination (which defines the explanatory power of regression equation) is 0.935. This means, 93.5% of the total variance of the Domestic Sale of Car can be very well explained by these 3 variables i.e. Per capita Net Income, Inflation Rate as well as Interest rate. 2) The value of F in the SPSS output is 101.436 which is very high. This means F is statistically significant i.e. there is a fair degree of association between dependent and independent variables. This is also explained by the explanatory power i.e. Adjusted R2. 3) Excepting PCNI, all other two variables are negatively co-related. This means, with increase of per capita net income, decrease in inflation rate and decrease in interest rate, there will be increase in sale of cars, which is a priori correct. 4) The sign of the slope of the variable per capita net income (PCNI) is positive and it is highly significant also i.e. 0.001 (less than 10%). Also, the sign of the slope of the variables Inflation Rate and Inflation rate is negative and their significance level is more than the cut off limit of 10%. 5) Further, the significance levels of the variable Interest Rate and Inflation Rate are higher than the cut off limits of 10% which means these variable are statistically not significant.

27 | P a g e

6) From all the standardized coefficients, it is clear that the value of the standardized coefficients for the per capita net income is highest (0.935) compared to that of other variables. This means, per capita net income (PCNI) is most important variables in explaining the variation as compared to other variables. 7) The slope of the independent variable which is called the elasticity for that variable indicates that keeping other variables fixed, any percentage change in independent variable will change the dependent variable to that extent. In this case, 1% change on per capital net income will bring 1.288% change in domestic car sale.

Part-B : Factor and Cluster Analysis

Factor Analysis Factors influencing purchase Factor Analysis is an interdependent technique. In interdependent techniques, the variables are not classified as independent or dependent variable, but their interrelationship is studied. It is a data reduction technique applicable when there is a systematic dependence amongst a set of observed or manifest variables and the researcher is interested in finding out something more fundamental (or latent) which creates this commonality. Factor analysis is done mainly for following reasons. 1. To identify a new smaller set of uncorrelated variables to be used in subsequent multiple regression analysis. 2. To identify underlying dimensions/factors that are unobservable but explain correlations among a set of variable. The general purpose of factor analysis is to find a method of summarizing the information contained in a number of original variables into a smaller set of new composite dimensions (Factors) with minimum loss of information. It usually proceeds from the correlations matrix formed out of the selected variables included in the study. The appropriateness of the factor model can also be calculated from this. Next, Factor extraction, the number of factors necessary to represent the data and the method of calculating them must be determined. At this step, how well the chosen model fits the data is also ascertained. Rotation focuses on transforming the factors to make them more interpretable and following this, scores for each factor can be computed for each case. These scores are then used for further analysis. For our study, it is interesting to study the factors which can be derived out of several variables which contribute in influencing the purchase of a car. There are 39 variables under the heading factors influencing purchase. These variables were subject to correlation analysis first

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Co-Relation Matrix
Rear_View_Camera_Reverse_Gear_Sensor

Co-Relation Matrix

Variables
Price Suggestion_from_family Family_Needs Status_Symbol Brand_Name Comparison_of_Cars Preference_Festive_Offer Type_of_Fuel Advice_from_Colleagues Environment_Polution_Norms Advertisement_Promotion Driving_Comfort Resale_Value Installament_Payment Insurance_Facility Extended_Warranty Dealer_Location All_Cars_Under_one_roof Technology Mobile_Charger Road_Grip Fuel_Economy Power_Pickup Color_of_Car Chrome_Plated_Door_Handles Fog_Light Soft_Drink_Holder Sleek_Gear_Shift_Knob Audio_Video_System Air_Conditioning_System Inbuilt_Navigation_System Anti_Brake_Skidding Air_Bag Child_Lock_Rear_windows Car_Accessories Easy_Access_Spare_Parts Availabiility_Service_Station Free_Pickup_Drop_During_Service

1 0.025 -0.011 0.191 0.133 0.12 0.025 -0.011 0.205 1 -0.01 -0.085 0.05 1 1

-0 -0.1 0.01 -0.1 -0.1 -0 -0

-0 0.01 -0.1 -0.1 -0.1 -0.2 -0.1 -0.2 -0.3 -0.2 -0 0.15 -0.1 0.11 -0 -0 -0 0.08 0.13 0.24 -0 -0.2 0

-0 -0.1 -0.1 -0.01 -0.1 0 -0 -0

-0

-0.1

-0 -0.1 0.05 -0.1 -0.1 -0.1 -0.02 -0.2 -0.01 -0 -0 -0 0.2

-0.1

1 0.205 -0.07 -0.068 0.03 0.18 0.03 0.12 0.14 0.11 0.06 0.06 0.17 0.28 0.12 0.09 -0 0.32 0.07 0.26 -0 0.16 -0 0.469 0.32 0.04 0.22 0.01 -0.2 0.13 0.11 0.19 0.12 0.1 1 1

0.15 0.01 -0 0.08 0.12 0.02 -0 0

-0.2 -0.2 -0.2 0.1 0.16 0.2 0.23 0.22 -0 0.02 0.07 0.27 0.18 0.21 0.27 0.03

-0.1 0.24 0.06 0.35 0.16 0.25 0.06 0.09 0.01 -0.1 0.19

0.191 -0.071 -0.013

-0 0.05 0.08 0.16 0.05 -0 -0.1 0.04 0.2 0.05 -0 -0.2 -0

0.23 0.11 0.24 0.21 0.18 0.1 0.11 0.07 0.07 0.07 -0.08 -0.1 -0.1 -0 -0.1 0.08 0.08 0.05 -0.2 -0.1 0 -0.03 -0 -0.02 -0 -0 -0.2 0.1 -0.1

0.133 -0.068 -0.085 0.469 -0.031

0.1 0.04 0.06 0.03 0.16 0.05 0.06 0.25 0.15 -0.1 -0.2 -0.2 -0.1

-0 0.16 0.1 -0.02 0.2 0.23 0.13 0.31 0.18 0.12 0.11 0.03 0.08 0.17 0.07 0.16 0.02 0.07

0.119 0.026 0.05 0.316 0.128

0.13 0.04 0.2 -0.2 0.23 0.06 1 0.06 0.17 1 0 0 1 0

-0.2 -0 0.17 -0 0.04 -0.14 -0.1

0.18 -0.028 0.037 0.109 0.13

0.08 0.22 0.16 0.18 -0.1 0.28 0.25 0.27 0.28 0.24 0.16 0.02 0.1 -0.1 0.06 -0.1 -0.1 0.04 -0.3 -0.2 0.17 -0.2 0.14 -0.1 -0.1 -0.3 -0.2 -0.04 0.3 -0.02 0.06 0.1 0.18 0.13 0.23 0.28 0.35 0.16 0.08 0.23 0.23 0.1 0.19 0.11 0.06 0.03 0.1 0.14 0.07 -0.1 0.32 0.11 0.22 0.14 0.09 0.05 0.43 0.15 0.1 -0 0.05 0.13 0.03 0.01 -0 -0 0.15 0 0.05 0.02 0.04 -0.1 -0 -0.2 -0.1 -0.1 0.06 -0 -0 0.15 0.08 -0.1 0.02 -0 1 -0.1 -0.2 0.07 0.18 -0.07 -0 -0

-0.127 0.034 -0.017 0.224 0.193 0.04 0.08 0.012 0.116 -0.024 0.009 0.12

0.2 0.22 0.06 0

-0.059 0.136 0.316 -0.23 0.099 -0.17 0.16 0.17 -0.148 0.114 0.074 -0.04 -0.027 0.23 0.18 -0.047 0.064 0.26 0.162 0.1 0.06 -0.1 0.18

0.13 0.26 0.28 0.31 0.55 0.5 0.36 0.21 0.29 0.29 0.33 0.28 0.15 0.02 0.07 0.31 0.15 0.16 0.03 0.07 -0 0.26 0.12 0.27 0.29 0.24 0.27 0.26 0.18 0.15 0.1 0.14 0.24 0.12 0.35 0.32 0.2 0.11 0.13 0.17 0.02 0.31 0.18 0.13 0.01 0.27 1 1 -0.1 -0.15 0.21 0.19 0.32 0.24 0.13 0.01 0.22 0.29 0.3 0.15 0.45 0.26 0.52 0.18 0.32 0.14 0.19 0.27 0.07 0.15 0.29 0.04 0.28 0.22 0.19 0.22 0.45 0.04 0.34 0.2 0.03 0.38 0.3 0.25 0.39 0.25 0.01 0.26 0.07 0.07 0.15 0.26 0.27 0.21 0.09 0.27 0.15 0.04 -0 0.08 -0.1 -0.1 0.01 0.36 0.16 0.14 0.18 1 0.64 0.31 0.23 0.17 0.22 0.31 0.22 0.12 0.02 0.1 0.33 0.08 0.09 0.37 0.08 0.32 0.19 0.02 1 1 -0 -0.2 0.07 0.34 0.2 0.28 0.3 0.56 0.36 0.37 0.29 0.45 0.36 0.3 0.16 0.06 0.39 0.31 0.25 0.43 0.15 0.35 0.08 0.22 0.15 0.08 0.26 0.35 0.31 0.38 0.5 0.53 0.39 0.22 0.38 0.4 0.24 0.28 0.12 0.37 0.34 0.28 0.34 0.15 0.24 0.09 0.35 0.26 0.26 0.29 0.48 0.32 0.35 0.4 1 0.54 0.19 0.32 0.23 0.32 0.18 0.33 0.27 0.38 0.22 0.35 0.23 0.17 0.06 0.21 0.02 0.07 0.09 0.32 0.14 0.34 0.29 1 0.14 0.35 0.11 0.12 0.03 0.21 0.31 0.36 0.31 0.34 0.16 0.23 -0.1 0.21 0.06 0.17 0.12 0.32 0.16 0.22 0.39 1 0.33 0.45 0.19 0.34 0.15 0.13 0.2 0.11 0.24 0.31 0.26 0.32 0.11 0.07 0.04 0.23 0.15 0.42 0.14 0.09 1 0.39 0.13 0.29 0.16 0.45 0.38 0.25 0.55 0.39 0.53 0.15 0.53 0.39 0.36 0.17 0.29 0.15 -0.1 0.38 0.29 0.5 0.17 0.29 0.22 0.01 0.18 0.21 0.3 0.42 0.28 0.28 0.22 0.34 0.25 0.37 0.3 0.19 1 0.25 0.1 0.12 0.21 0.09 0.02 0.03 0.22 0.22 0.09 0.01 0.09 0.17 0.09 0.31 0.22 -0.1 1 0.41 0.24 0.3 0.14 0.07 0.12 0.27 0.41 0.27 0.23 0.1 0.19 0.21 0.26 0.27 0.1 1 0.23 0.38 0.37 0.25 0.32 0.18 0.32 0.17 0.16 -0.1 1 0.44 0.36 0.42 0.24 0.27 0.06 0.12 0.15 1 1 -0 0.26 0.19 0.37 0.24 -0 -0.05 0.32 0.16 0.13 0.31

0.02 0.13

-0 0.26 0.15

0.013 0.059 -0.012 -0.01 0.04 -0.02 0.28 0.13 0.1 0.28 0.1 0.13 -0.071 0.172 0.081 -0.03 0.057 -0.23 0.25 0.23 -0.071 0.279 0.127 -0.18 0.03

-0 0.31 0.14 0.01 0.38

-0.2 0.27 0.28 0.05 0.55 0.24 0.22 0.3 0.64

-0.118 0.121 0.243 -0.01 0.163 -0.07 0.28 0.35 0.13 0.5 0.12 0.29 0.25 0.31 0.56

-0.191 0.093 0.002 0.053 0.054 -0.02 0.24 0.16 0.03 0.36 0.35 0.3 0.39 0.23 0.36 0.53 -0.162 0.148 0.235 0.157 0.248 -0.04 0.02 0.23 -0.266 -0.101 0.055 0.045 0.146 -0.19 0.1 0.23 -0.007 0.001 0.163 -0.05 -0.042 0.17 0.06 0.19 -0.065 -0.047 0.251 0.038 0.157 -0.013 -0

-0.144 -0.042 -0.088 0.076 0.062 -0.2 0.16 0.08 0.01 0.21 0.32 0.15 0.25 0.17 0.37 0.39 0.54

-0 0.29 0.2 0.45 0.01 0.22 0.29 0.22 0.19 0.14

-0 0.29 0.11 0.26 0.26 0.31 0.45 0.38 0.32 0.35 0.33 0

-0.198 0.114 0.352 -0.04 -0.085 -0.03 -0.1 0.1 0.15 0.33 0.13 0.52 0.07 0.22 0.36 0.4 0.23 0.11 0.45 0.39 1 0.28 0.17 0.18 0.07 0.12 0.3 0.24 0.32 0.12 0.19 0.13 0.29

-0.1 0.11 0.05 0.15 0.02 0.32 0.15 0.02 0.16 0.28 0.18 0.03 0.34 0.29 0.5 0.25

-0.074 -0.049 0.055 0.201 0.103 0.04 -0.1 0.06 0.02 0.02 0.31 0.14 0.26 0.1 0.06 0.12 0.33 0.21 0.15 0.16 0.17 0.1 0.41

0.15 0.085 0.05 -0.019 -0.14 0.04 0.03 0.04 0.07 0.18 0.19 0.27 0.33 0.39 0.37 0.27 0.31 0.13 0.45 0.29 0.12 0.24 0.23

-0.097 0.008 0.009 0.004 0.195 -0.09 -0.3 0.1 -0.1 0.31 0.13 0.27 0.21 0.08 0.31 0.34 0.38 0.36 0.2 0.38 0.22 0.21 0.3 0.38 0.44 -0.107

0.52 0.36 0.46 0.07 0.13 0.38 0.39 0.35 0.18 0.24 0.19 0.15 0.15 0.29 0.45 0.13 0.03 0.51 0.35 0.18 0.16 0.29 0.19 0.28 0.23 1 0.44 0.4 0.27 0.25 0.17 0.15 0.12 0.37 0.25 0.2 0.47 1 0.2 0.2 0.13 0.28 0.22 0.25 0.3 0.07 0.23 0.08 0.17 1 0.3 0.15 0.2 0.16 0.1 0.29 0.25 0.12 0.32 1 0.08 0.24 0.07 0.31 0.2 0.48 0.3 0.17 1 0.69 0.57 0.28 0.37 0.07 0.1 0.22 1 0.68 0.29 0.2 0.07 0.06 0.26 1 0.48 0.11 0.01 -0.1 0.09 1 0.03 0.26 0.18 0.13 1 0.35 0.38 0.35 1 0.65 0.33 1 0.32 1

Rear_View_Camera_Reverse_Gear_Sensor -0.018 -0.049 -0.073 0.225 0.226 -0.04 -0.2 0.14 -0 0.15 0.01 0.07 0.09 0.09 0.25 0.28 0.22 0.31 0.11 0.25 0.01 0.09 0.14 0.37 0.36 0.52
-0.033 0.121 -0.016 0.235 0.309 0.08 -0.2 -0.1 -0.1 0.03 0.051 -0.021 0.202 0.18 -0.144 0.12 0.05 -0.1 0.11 0.06

0.08 0.187 0.112 0.132 -0.07 0.17 0.07 -0.2 0.16 0.27 0.15 0.27 0.37 0.43 0.34 0.35 0.34 0.24 0.55 0.18 0.02 0.07 0.25 0.42 0.36 0.29

-0 0.29 0.15 0.08 0.15 0.15 0.23 0.16 0.31 0.39 0.21 0.03 0.12 0.32 0.24 0.46 0.45 0.44 -0

-0.146 0.019 -0.002 0.207 0.181 0.08 0.14 0.32 -0.1 0.07 0.15 0.04 0.04 0.32 0.35 0.24 0.17 0.23 0.26 0.53 0.3 0.22 0.27 0.18 0.27 0.07 0.13 0.4 -0 0.08 0.28 -0.146 -0.193 -0.009 0.095 0.111 -0.18 -0.1 0.22 -0.135 -0.248 0.07 0.071 0.077 0

0.19 0.08 0.09 0.06 -0.1 0.32 0.15 0.42 0.22 0.41 0.32 0.06 0.13 0.03 0.27 0.13 0.3 -0

-0 0.26 -0.1 0.22 0.08 0.02 0.22 0.35 0.21 0.21 0.11 0.53 0.28 0.09 0.27 0.17 0.12 0.38 0.51 0.25 0.28 0.15 0.08 -0 0.19 -0.1

-0.18 0.022 0.114 0.028 -0.09 -0.3 0.14 -0.1 0.12

0.15 0.26 0.02 0.06 0.07 0.39 0.28 0.01 0.23 0.16 0.15 0.39 0.35 0.17 0.22 0.2 0.24 0.69

-0.2 0.09 -0.2 0.27 -0.1 0.22 -0.1 -0.2 0.08 0.26 0.07 0.17 0.04 0.36 0.22 0.09 0.1 -0.1 -0.02 0.35 0.18 0.15 0.25 0.16 0.07 0.57 0.68 -0 0.05 0.07 0.29 -0.1 0.45 0.01 0.07 0.26 0.29 0.09 0.12 0.23 0.17 0.34 0.17 0.19 0.00 -0.05 0.18 0.16 0.12 0.3 -0 0.15 -0.1 0.27 0.19 0.34 0.16 -0

-0.019 0.102 0.274 0.066 0.166 -0.03 -0.01 0.199 0.212 -0.08 0.159 -0.02 -0.008 0.225 0.266 -0.15 -0.106 0.22 0.027

0.1 0.31 0.28 0.29 0.48

-0.185 0.164 0.178 0.071 0.065 -0.01 0.3 0.43 0.18 0.24 0.21 0.04 0.36 0.34 0.35 0.48 0.32 0.32 0.15 0.29 0.25 0.09 0.21 0.26 0.32 0.24 0.29 0.37 0.07 0.29 0.2 0.37 0.2 0.11 0.03 0.02 -0.01 0.06 -0 0.26 0.32 0.2 0.14 0.28 0.38 0.35 0.34 0.22 0.14 -0.1 0.3 0.22 0.27 0.37 0.13 0.15 0.28 0.3 0.5 0.2 0.08 0.12 0.3

0.2 0.31 0.32 0.14 0.16 0.42 0.15 0.37 0.31 0.26 0.19 0.16 0.19 0.19 0.25 0.23 0.25 0.48 0.07 0.07 0.01 0.26 0.35

0.1 0.06 -0.1 0.18 0.38 0.65

-0.1 0.068 -0.23 0.1 0.1 -0.1 0.18 0.24 0.03 0.18

0.4 0.29 0.39 0.09 0.38 0.19 -0.1 0.1 0.24 0.31 0.15 0.23 0.47 0.17 0.32 0.17 0.22 0.26 0.09 0.13 0.35 0.33 0.32

This is the correlation matrix and where the co-relation co-efficient is higher than 0.5, the same are highlighted in red font. Since, it is not clearly legible to see the entire co-relation matrix, for convenience the same is shown in 2 separate pages. Co-Relation Matrix in expanded View

29 | P a g e

Free_Pickup_Drop_During_Service

Chrome_Plated_Door_Handles

Environment_Polution_Norms

Availabiility_Service_Station

Inbuilt_Navigation_System

Advertisement_Promotion

Child_Lock_Rear_windows

All_Cars_Under_one_Roof

Preference_Festive_Offer

Air_Conditioning_System

Easy_Access_Spare_Parts

Advice_from_Colleagues

Suggestion_from_family

Sleek_Gear_Shift_Knob

Installament_Payment

Audio_Video_System

Anti_Brake_Skidding

Comparison_of_Cars

Extended_Warranty

Soft_Drink_Holder

Insurance_Facility

Driving_Comfort

Mobile_Charger

Dealer_Location

Car_Accessories

Status_Symbol

Fuel_Economy

Power_Pickup

Family_Needs

Type_of_Fuel

Resale_Value

Color_of_Car

Brand_Name

Technology

Road_Grip

Fog_Light

Air_Bag

Price

Environment_Polution_Norms

Advertisement_Promotion

All_Cars_Under_one_Roof
-0.1 -0 -0.2 1

Preference_Festive_Offer

Advice_from_Colleagues

Suggestion_from_family

Installament_Payment

Comparison_of_Cars

Extended_Warranty

Insurance_Facility

Driving_Comfort

Dealer_Location

Status_Symbol

Family_Needs

Type_of_Fuel

Resale_Value

Brand_Name

Variables
Price Suggestion_from_family Family_Needs Status_Symbol Brand_Name Comparison_of_Cars Preference_Festive_Offer Type_of_Fuel Advice_from_Colleagues Environment_Polution_Norms Advertisement_Promotion Driving_Comfort Resale_Value Installament_Payment Insurance_Facility Extended_Warranty Dealer_Location All_Cars_Under_one_roof Technology Mobile_Charger Road_Grip Fuel_Economy Power_Pickup Color_of_Car Chrome_Plated_Door_Handles Fog_Light Rear_View_Camera_Reverse_Gear_Sensor Soft_Drink_Holder Sleek_Gear_Shift_Knob Audio_Video_System Air_Conditioning_System Inbuilt_Navigation_System Anti_Brake_Skidding Air_Bag Child_Lock_Rear_windows Car_Accessories Easy_Access_Spare_Parts Availabiility_Service_Station Free_Pickup_Drop_During_Service

1 0.025 -0.011

0.025 -0.011 0.191 0.133 0.12 1 0.205 0.205 1 -0.01 -0.085 0.05 1 1

-0 -0

-0.1 0.01 -0.1 -0.1 -0 -0

-0

0.01 -0.1 -0 -0 -0

-0.1

-0.1

-0.2 0

-0.2 0.15

-0.07 -0.068 0.03 0.18 0.03 0.12 0.14 0.11 0.06 0.06 0.17 0.28 0.12 0.09 0.32 0.07 0.26 -0 -0 0.16 0.1 0.1 0.08 0.13 0.24 -0 -0.2 -0.2 -0.2 -0 -0.1 0.469 0.32 0.04 0.22 0.01 -0.2 0.13 0.11 0.19 0.12 1 0.13 0.04 1 1 0.2

-0.1 0.24

0.191 -0.071 -0.013 0.119 -0.031 -0.127 0.012 -0.059 -0.148 -0.047 0.013 -0.071 -0.071 -0.118 -0.191 -0.162 -0.198 -0.007 0.026 0.05

0.05 0.08 0.16 -0 -0

0.133 -0.068 -0.085 0.469

0.04 0.06 0.03 0.16 0.05 0.06 0.25

0.316 0.128

-0.2 0.23 0.06 0 0.02 1 0.1

0.18 -0.028 0.037 0.109 0.13 0.116 -0.024 0.009 0.136 0.316 0.114 0.074 0.064 0.26 0.12 0.2

0.08 0.22 0.16 0.18 -0.1 0.28 0.25 0.27 0.28 0.24 0.16 0.02 0.06 0.17 1 0 -0 0.1 -0 0 1 0.18 0.13 0.23 0.28 0.35 0.16 0.08 0.23 -0 0.15 1 0.13 0.1 0.1 1 0.3 -0 0.05 0.13 0.03 0.01 0.5 -0 0.2 0.36 0.21 0.29 0.3 0.15 0.45

0.034 -0.017 0.224 0.193 0.04 0.08

0.22 0.06 0

-0.23 0.099 -0.17 0.16 0.17 -0.04 -0.027 0.23 0.18 0.162 0.1 0.04 0.03 0.06 -0.1 0.18 -0.02 0.28 0.13

0.13 0.26 0.28 0.31 0.55

0.02 0.13 0.28

0.14 0.24 0.12 0.35 0.32 0.38 1 0.64 0.3 1

0.26 0.15

0.13 0.01 0.22 0.29

0.059 -0.012 -0.01 0.172 0.081 0.279 0.127 0.121 0.243 -0.18

0.25 0.39 0.25 0.01 0.56 0.36 0.37 0.29 1 0.53 0.39 0.22 1 0.54 0.19 0.14 1

-0.03 0.057 -0.23 0.25 0.23

0.31 0.14 0.01 0.38 0.5

0.64 0.31 0.23 0.17 0.22

-0.2 0.27 0.28 0.05 0.55 0.24 0.22 0.3

-0.01 0.163 -0.07 0.28 0.35 0.13

0.12 0.29 0.25 0.31 0.56

0.093 0.002 0.053 0.054 -0.02 0.24 0.16 0.03 0.36 0.35 0.148 0.235 0.157 0.248 -0.04 0.02 0.23 0.114 0.352 0.001 0.163 -0.04 -0.085 -0.03 -0.1 -0 0.1 -0 -0 0 0.29 0.2

0.39 0.23 0.36 0.53

-0.144 -0.042 -0.088 0.076 0.062

-0.2 0.16 0.08 0.01 0.21 0.32 0.15 0.25 0.17 0.37 0.39 0.54

0.45 0.01 0.22 0.29 0.22 0.19 0.14 0.4

-0.266 -0.101 0.055 0.045 0.146 -0.19 0.1 0.23 -0.05 -0.042 0.17 0.06 0.19

0.29 0.11 0.26 0.26 0.31 0.45 0.38 0.32 0.35 0.33 0.23 0.11 0.45 0.28 0.17 0.18 0.07 0.12 0.1 0.3 0.24 0.32 0.12 0.19

0.15 0.33 0.13 0.52 0.07 0.22 0.36

-0.065 -0.047 0.251 0.038 0.157 -0.013 -0.097 -0.107 -0.033 -0.146 0.15 0.085

-0.1 0.11 0.05 0.15 0.02 0.32 0.15 0.02 0.16 0.28 0.18 0.03 0.34 0.06 0.12 0.33 0.21 0.15 0.2

-0.074 -0.049 0.055 0.201 0.103 0.04 -0.1 0.06 0.02 0.02 0.31 0.14 0.26 0.008 0.009 0.004 0.195 -0.09 -0.3 0.1

0.05 -0.019 -0.14 0.04 0.03 0.04 0.07 0.18 0.19 0.27 0.33 0.39 0.37 0.27 0.31 0.13 -0.1 0.31 0.13 0.27 0.21 0.08 0.31 0.34 0.38 0.36 -0 0.15 0.01 0.07 0.09 0.09 0.25 0.28 0.22 0.31 0.11 -0 0.29 0.15 0.08 0.15 0.15 0.23 0.16 0.31 -0 0.19 0.08 0.09 0.06 -0.1 0.32 -0 0.15 0.26 0.02 0.06 0.07

-0.018 -0.049 -0.073 0.225 0.226 -0.04 -0.2 0.14 0.121 -0.016 0.235 0.309 0.08 -0.2 -0.1 0.18 0.12

0.08 0.187 0.112 0.132 -0.07 0.17 0.07 -0.2 0.16 0.27 0.15 0.27 0.37 0.43 0.34 0.35 0.34 0.24 -0.1 0.03 -0 0.019 -0.002 0.207 0.181 0.08 0.14 0.32 -0.1 0.07 0.15 0.04 0.04 0.32 0.35 0.24 0.17 0.23 0.26 0.05 -0.1 0.11 0.06 -0 0.08 0.28 -0 0.26 -0.1 0.22 0.08 0.02 0.22 0.35 0.21 0.21 0.11 0.19 -0.1 -0.2 0.08 0.26 0.07 0.17 0.04

0.051 -0.021 0.202 -0.144 -0.019 -0.185 -0.01 -0.008 -0.106

-0.146 -0.193 -0.009 0.095 0.111 -0.18 -0.1 0.22 -0.135 -0.248 0.102 0.164 0.199 0.225 0.22 0.07 0.071 0.077 0

-0.18 0.022 0.114 0.028 -0.09 -0.3 0.14 -0.1 0.12 0.274 0.066 0.166 -0.03 0.178 0.071 0.065 -0.01 0.212 -0.08 0.159 -0.02 0.266 -0.15 0.027 -0.1 0.068 -0.23 -0 0.05 0.07 0.29 -0 0.15 -0 0.1 0.1

-0.2 0.09 -0.2 0.27 -0.1 0.22 -0.1

-0.1 0.45 0.01 0.07 0.26 0.29 0.09 0.12 0.23 0.2 0.31 0.32 0.14 0.16 0.42 0.3 0.5 0.4 0.29 0.39 0.09

0.3 0.43 0.18 0.24 0.21 0.04 0.36 0.34 0.35 0.48 0.32 0.32 0.15 -0.1 0.27 0.19 0.34 0.16 -0 0.26 0.32 -0.1 0.18 0.24 0.03 0.18 0.2 0.14 0.28 0.38 0.35 0.34 0.22 0.14

0.02 -0.01 0.06

30 | P a g e

Technology

Price

Rear_View_Camera_Reverse_Gear_Sensor

Variables
Price Suggestion_from_family Family_Needs Status_Symbol Brand_Name Comparison_of_Cars Preference_Festive_Offer Type_of_Fuel Advice_from_Colleagues Environment_Polution_Norms Advertisement_Promotion Driving_Comfort Resale_Value Installament_Payment Insurance_Facility Extended_Warranty Dealer_Location All_Cars_Under_one_roof Technology Mobile_Charger Road_Grip Fuel_Economy Power_Pickup Color_of_Car Chrome_Plated_Door_Handles Fog_Light Soft_Drink_Holder Sleek_Gear_Shift_Knob Audio_Video_System Air_Conditioning_System Inbuilt_Navigation_System Anti_Brake_Skidding Air_Bag Child_Lock_Rear_windows Car_Accessories Easy_Access_Spare_Parts Availabiility_Service_Station Free_Pickup_Drop_During_Service

-0.3 -0.2 -0.1 0.11 0.05 -0.2 0.1 -0 -0 -0

-0 0

-0.1 -0

-0.1 -0.01 -0.1 -0 0.2 0.1 -0.1 0.15 0.01 0.05 0

-0 -0

-0.1

-0 -0

-0.1 0.05 -0.1 -0.1 -0 0.2 -0.2 -0.2 -0 -0

-0.1 -0.02 -0.2 -0.01 -0.2 0.1 0.16 0.2

-0

-0.1

0.08 0.12 0.02

0.23 0.22

0.06 0.35 0.16 0.25 0.06 0.09 0.01 -0.1 0.19 -0.1 0.04 -0 0.17 0.16 -0 0.15 -0.1 -0.02 0.2

0.02 0.07 0.27 0.18 0.21 0.27 0.03 0.11 0.07 0.07 0.07 -0.08 -0.1 -0.1 0 -0.03 -0 0.3 -0.02 -0 -0 -0 -0.2 0.1 0.1 -0.1

0.23 0.11 0.24 0.21 0.18 0.1 -0

0.23 0.13 0.31 0.18 0.12 0.11 0.03 0.08 0.17 0.07 0.16 0.02 0.07 -0.1 0.08 0.08 0.05 -0.2 -0.1 -0.2 -0.04 -0.2 -0.02 0.06

0.04 -0.14 -0.1 0.1

-0.1 0.06 -0.1 0.15 0

0.04 -0.3 -0.2 0.17 -0.2 0.14 -0.1 -0.1 -0.3 -0 -0.2 -0.1 -0.1 0.06 -0 -0 -0 -0.1 -0

0.23 0.1 0.19 0.11 0.06 0.03

0.14 0.07 -0.1 0.32 0.11 0.22 0.14 0.09 0.05 0.43 0.15 0.07 0.18 -0.07

0.05 0.02 0.04 -0.1

0.29 0.33 0.28 0.15 0.02 0.07 0.31 0.15 0.16 0.03 0.07 0.11 0.13 0.17 0.02 0.31 0.18 0.13 0.01 0.27

0.26 0.12 0.27 0.29 0.24 0.27 0.26 0.18 -0.1 -0.15 0.21 0.19 0.32 0.24 0.2 0.28 0.03 0.3 0.5 0.4 -0.1 -0.2 0.01 0.36 0.16 0.14 0.18 0.07 0.34 0.2

0.15 0.08 -0.1 -0

0.26 0.52 0.18 0.32 0.14 0.19 0.27 0.07 0.15 0.29 0.04 0.28 0.22 0.19 0.22 0.45 0.04 0.34 0.26 0.07 0.07 0.15 0.26 0.27 0.21 0.09 0.27 0.15 0.04 0.31 0.22 0.12 0.02 0.45 0.36 0.3 0.1 0.08 -0.1 -0 0.33 0.08 0.09 0.37 0.08 0.32 0.19 0.02

0.16 0.06 0.39 0.31 0.25 0.43 0.15 0.35 0.08 0.22 0.15 0.08 0.26 0.35 0.31 0.38

0.38 0.4 0.24 0.28 0.12 0.37 0.34 0.28 0.34 0.15 0.24 0.09 0.35 0.26 0.26 0.29 0.48 0.32 0.35

0.32 0.23 0.32 0.18 0.33 0.27 0.38 0.22 0.35 0.23 0.17 0.06 0.21 0.02 0.07 0.09 0.32 0.14 0.34 0.29 0.35 0.11 0.12 0.03 0.21 0.31 0.36 0.31 0.34 0.16 0.23 -0.1 0.21 0.06 0.17 0.12 0.32 0.16 0.22 0.39 0.33 0.45 0.19 0.34 0.15 0.13 1 0.39 1 0.29 1 0.5 0.25 1 0.41 0.3 0.2 0.11 0.24 0.31 0.26 0.32 0.11 0.07 0.04 0.23 0.15 0.42 0.14 0.09 0.3 0.42 0.28 0.28 0.22 0.34 0.25 0.37 0.1 -0 0.3 0.19 0.1 0.39 0.13 0.29 0.16 0.45 0.38 0.25 0.55 0.39 0.53 0.15 0.53 0.39 0.36 0.17 0.29 0.15 -0.1 0.38 0.17 0.29 0.22 0.01 0.18 0.21 0.1 1 0.41 0.24 1 0.3 0.12 0.21 0.09 0.02 0.03 0.22 0.22 0.09 0.01 0.09 0.17 0.09 0.31 0.22 -0.1 0.14 0.07 0.12 0.27 0.41 0.27 0.23 0.19 0.21 0.26 0.27 -0 0.23 0.38 0.37 0.25 0.32 0.18 0.32 0.17 0.16 -0.1 0.44 0.36 0.42 0.24 0.27 0.06 0.12 0.15 1 1 0.26 0.19 0.37 0.24

0.13 0.29

0.29 0.5 0.25 0.16 0.17 0.1 0.38 0.22 0.21

0.45 0.29 0.12 0.24 0.23

-0.05 0.32 0.16 0.13 0.31

0.38 0.44

0.52 0.36 0.46 0.07 0.13 0.38 0.39 0.35 0.18 0.24 0.19 0.15 0.15 0.29 0.45 0.13 0.03 0.51 0.35 0.18 0.16 0.29 0.19 0.28 0.23 1 0.4 0.44 1 0.2 0.4 0.2 1 0.3 0.2 0.27 0.25 0.17 0.15 0.12 0.37 0.25 0.13 0.28 0.22 0.25 0.3 0.15 1 1 0.2 0.16 0.3 0.1 0.2 0.47 0.07 0.23 0.08 0.17 0.29 0.25 0.12 0.32 0.2 0.2 0.48 0.3 0.1 0.17 0.22

Rear_View_Camera_Reverse_Gear_Sensor 0.25 0.01 0.09 0.14 0.37 0.36 0.52

0.55 0.18 0.02 0.07 0.25 0.42 0.36 0.29 0.53 0.3 0.22 0.27 0.18 0.27 0.07 0.13

0.39 0.21 0.03 0.12 0.32 0.24 0.46 0.45 0.44

0.15 0.42 0.22 0.41 0.32 0.06 0.13 0.03 0.27 0.13 0.39 0.28 0.01 0.23 0.16 0.15 0.39 0.35 0.17 0.22 0.36 0.22 0.09 0.1 0.17 0.34 0.17 0.19 0.00 -0.05 0.18 0.16 0.12 0.3

0.08 0.24 0.07 0.31 1 0.68 0.29 1

0.53 0.28 0.09 0.27 0.17 0.12 0.38 0.51 0.25 0.28 0.15 0.08

0.69 0.57 0.28 0.37 0.07

0.24 0.69

0.07 0.06 0.26

-0.1 -0.02 0.35 0.18 0.15 0.25 0.16 0.07 0.57 0.68 0.2 0.37 0.3

0.48 0.11 0.01 -0.1 0.09 1 0.03 0.26 0.18 0.13 1 0.35 0.38 0.35 1 0.65 0.33 1 0.32 1

0.1 0.31 0.28 0.29 0.48

0.29 0.25 0.09 0.21 0.26 0.32 0.24 0.29 0.37 0.07 0.29 -0.1 0.3 0.22 0.27 0.37 0.13 0.15 0.28 0.2 0.08 0.12

0.2 0.11 0.03

0.15 0.37 0.31 0.26 0.19 0.16 0.19 0.19 0.25 0.23 0.25 0.48 0.07 0.07 0.01 0.26 0.35 0.1 0.06 0.38 0.19 -0.1

-0.1 0.18 0.38 0.65

0.1 0.24 0.31 0.15 0.23 0.47 0.17 0.32 0.17 0.22 0.26 0.09 0.13 0.35 0.33 0.32

31 | P a g e

Free_Pickup_Drop_During_Service

Chrome_Plated_Door_Handles

Availabiility_Service_Station

Inbuilt_Navigation_System

Child_Lock_Rear_windows

Air_Conditioning_System

Easy_Access_Spare_Parts

Sleek_Gear_Shift_Knob

Audio_Video_System

Anti_Brake_Skidding

Soft_Drink_Holder

Mobile_Charger

Car_Accessories

Fuel_Economy

Power_Pickup

Color_of_Car

Road_Grip

Fog_Light

Air_Bag

KMO and Bartletts Test

KMO-Bartlett measure of sampling adequacy is an index used to test appropriateness of the factor analysis. Bartlett's test of sphericity is used to test whether the correlation matrix is an identity matrix. The test value (1346) and the significance level (P<.01) which are given above indicate that the correlation matrix is not an identity matrix, i.e., there exists correlations between the variables. Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy or KMO measure is more than 0.5, and then it is good to use factor analysis. If the KMO is closer to 0, then the factor analysis is not a good idea for the variables and the data. The value of test statistics is given above as 0.641, which means the factor analysis for the selected variables is found to be appropriate to the data. The Principal Components Analysis (PCA) is used to extract factors. The PCA is a method used to transform a set of correlated variables into a set of uncorrelated variables (here factors) so that the factors are unrelated and the variables selected for each factor are related. Communalities Communality (h2): It shows how much each variable is accounted for by the underlying factor taken into consideration. It is the summation of factor loading squares on all factors extracted in case of a variable External communalities are estimates of the variance in each variable accounted for by the components. The communalities in the below table are moderately high, which indicates that the extracted components represents the variables to a great extent.

32 | P a g e

Communalities Initial
Price Suggestion_from_family Family_Needs Status_Symbol Brand_Name Comparison_of_Cars Preference_Festive_Offer Type_of_Fuel Advice_from_Colleagues Environment_Polution_ Norms Advertisement_Promotion Driving_Comfort Resale_Value Installament_Payment Insurance_Facility Extended_Warranty Dealer_Location All_Cars_Under_one_roof Technology Mobile_Charger Road_Grip Fuel_Economy Power_Pickup Color_of_Car Chrome_Plated_Door_ Handle Fog_Light Rear_View_Camera_ Reverse_Gear_Sensor Soft_Drink_Holder Sleek_Gear_Shift_Knob Audio_Video_System Air_Conditioning_System Inbuilt_Navigation_ System Anti_Brake_Skidding Air_Bag Child_Lock_Rear_ Windows Car_Accessories Easy_Access_Spare Parts Availabiility_Service Station Free_Pickup_Drop_ During_Service Extraction Method : Principal Component Analysis 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 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000

Extraction
0.675 0.726 0.494 0.698 0.678 0.781 0.717 0.722 0.635 0.697 0.692 0.654 0.635 0.689 0.784 0.684 0.720 0.611 0.744 0.824 0.762 0.742 0.676 0.728 0.732 0.750 0.765 0.736 0.722 0.723 0.732 0.764 0.773 0.882 0.683 0.720 0.721 0.835 0.681

33 | P a g e

Total Variance: The below table explains the total variance contributed by each component. We can see from the below table that the percentage of total variance contributed by first component is 20.809, by 2 nd component is 8.519, by 3rd component is 6.917, by 4th component is 5.942, by 5th component is 5.061, by 6th component is 4.393, by 7th component is 4.096, by 8th component is 3.816, by 9th component is 3.482, by 10th component is 3.179, by 11th component is 2.853 and by 12th component is 2.694.

It is also very clear from the table that there are total 12 distinct components for the given set of variables. 34 | P a g e

Scree Plot The scree plot gives the number of components against the eigen values which helps to determine the optimum number of components.

In the scree plot, the component having steep slope indicate that good percentage of the total variance explained by that component and hence that component is justified. The components having less/shallow slope indicates that the contribution of total variance is less and this component should not be justified. In the above plot, the first 12 components have step slope and others have shallow slope. This indicates that the ideal number of components is 12.

35 | P a g e

Rotated Component Matrix

In the rotated factor/component matrix, it is important to identify the maximum value of the factors irrespective of signs. The maximum in each row indicates that the respective variable belongs to the respective factor. In the above table of rotation component matrix, the maximum value in each rows have been encircled in pink colour. The encircled variables against each column are highly co-related to each other and can be given a common name.

Grouping of Variables after Factorisation:

After finding the common variables against each factor, it is time to name the factors such that the revised name can be used in place of those variables, which will represent all the grouped variables.

36 | P a g e

Name of the Variable

Instalment Payment Insurance Facility Mobile Charger Chrome Plated Door Handles Soft Drink Holder Audio_Video System Free_Pick up & Drop during service Family Needs Driving Comfort Technology Road Grip Rear Window Child Lock Inbuilt Navigation system Anti Brake Skidding (ABS) Air Bag Environment Pollution Norms Resale Value Extended warranty Dealer Location All Cars under one roof Easy access of Spare parts Availability of Service Station Preference during Festive Offer Fog Light Rear View Camera & Reverse Gear Sensor Sleek Gear Shift Knob Status Symbol Brand Name Suggestion from Family Power & Pick Up Colour of the Car Air Conditioning System Type of Fuel Fuel Economy Advice from Colleagues Car Accessories Comparison of Cars Advertisement and Promotions Price

Factor Value
0.622 0.536 0.645 0.553 0.699 0.695 0.521 0.563 0.723 0.585 0.689 0.612 0.766 0.808 0.864 0.427 0.567 0.428 0.770 0.676 0.704 0.840 0.421 0.721 0.691 0.576 0.714 0.802 0.485 0.637 0.598 0.546 0.645 0.675 0.761 0.519 0.816 0.486 0.772

Factor Number

Factor Name

Factor No. 1

Value for Money

Factor No. 2

Technology for Family Safety

Factor No. 3

Driver Safety and Ease of Navigation

Factor No. 4

Customer Delight

Factor No. 5

Any Time Any Where Service

Factor No. 6

Car Upholstery

Factor No.7

Personality & Brand Status

Factor No. 8

Aesthetics & Family Comfort

Factor No. 9

Fuel Sensitiveness

Factor No. 10

Miscellaneous Market Study & Advertisements Price

Factor No. 11 Factor No. 12

37 | P a g e

After having the factoring completed as above, we can redefine the observations with simple average method and the result is shown below. Summary after Factorisation
Respondent No. Value for Money Technology for Family Safety Driver Safety and Ease of Navigation Customer Delight Any Time Car Any Where Upholstery Service Personality & Brand Status Aesthetics & Fuel Miscellane Market Price Family Sensitivene ous Study & Comfort ss Advertisem ents

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71

2.14 2.86 3.71 1.14 1.29 1.86 2.00 1.14 2.00 2.57 2.71 2.29 2.14 2.29 2.57 3.00 2.29 2.29 3.57 3.00 1.29 1.86 2.43 2.14 1.43 2.71 3.00 2.14 2.29 1.57 3.57 1.43 1.14 2.86 2.57 1.57 1.71 2.29 2.29 3.57 2.14 2.29 2.00 1.57 2.29 2.14 1.57 2.71 1.71 3.14 3.57 2.43 2.00 3.00 2.14 1.86 2.14 2.71 2.00 2.14 2.43 1.14 3.43 2.57 3.71 2.00 3.14 1.43 2.71 4.43 2.43

2.00 2.40 2.80 1.20 1.20 1.40 1.00 1.20 1.80 1.80 2.20 1.40 1.60 2.00 1.20 2.00 2.20 1.80 1.20 2.40 1.40 1.00 2.00 1.80 1.20 2.00 1.40 1.20 1.20 1.40 1.00 1.40 1.20 2.00 2.00 1.40 1.20 1.60 2.00 1.60 2.00 1.40 1.60 1.60 2.00 1.00 1.00 1.60 1.20 1.80 2.00 2.00 1.20 1.00 1.40 1.40 1.40 1.00 1.40 1.60 1.00 1.60 2.20 1.40 1.80 2.20 1.40 1.00 1.40 1.20 2.00

3.00 2.33 3.33 1.33 1.33 2.33 2.00 1.00 3.00 1.67 2.33 3.00 2.33 2.00 2.00 3.00 2.67 2.33 2.33 3.00 3.00 3.00 2.00 3.00 2.00 3.00 3.33 2.67 2.00 1.33 1.33 1.00 1.00 2.00 1.33 3.00 2.33 2.00 4.00 4.00 1.33 3.00 1.67 2.33 2.00 1.00 1.00 1.33 1.33 2.67 2.00 2.00 2.33 3.00 1.00 2.33 2.00 1.00 1.33 1.33 1.67 1.33 2.00 1.33 1.33 1.33 1.67 1.67 1.67 2.00 2.33

2.20 2.80 2.80 2.00 2.00 2.20 1.80 1.20 1.80 2.40 2.00 2.20 2.60 2.20 1.20 3.20 1.80 2.20 4.20 4.20 1.00 1.40 2.60 2.80 2.40 2.60 3.00 3.40 2.00 2.60 1.80 1.80 1.60 2.80 2.40 1.60 1.80 2.20 2.00 3.60 2.60 3.40 2.20 2.00 2.60 2.00 1.40 1.80 1.60 2.40 3.40 2.00 1.80 1.80 1.80 1.40 1.60 2.20 2.60 2.20 1.20 1.80 1.80 3.20 3.60 2.60 4.20 1.20 1.60 3.40 2.40

1.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 1.00 1.00 2.00 1.50 1.50 1.50 2.00 3.00 2.00 1.00 1.00 2.00 1.00 2.00 1.50 1.00 1.00 1.00 2.00 1.00 1.00 1.00 2.00 2.00 1.00 1.50 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.50 1.00 1.00 1.00 1.00 2.00 1.50 1.50 1.00 1.00 1.00 2.00 2.00 2.00 1.00 1.50 1.00 1.00 1.00 1.00 2.00 1.50 2.00 1.00 1.50 1.00 2.00

2.50 3.00 3.00 1.00 2.25 2.00 2.50 1.50 2.00 2.25 2.50 2.50 2.00 2.50 2.00 2.50 3.25 2.25 3.75 3.50 2.50 2.00 2.50 2.75 2.50 3.50 2.75 3.50 4.25 2.75 2.25 1.50 1.50 2.75 2.25 2.25 2.00 2.00 2.50 3.00 2.00 2.25 1.75 2.50 2.00 2.25 2.25 3.25 2.25 3.25 3.00 2.00 2.50 2.50 1.75 1.75 1.75 2.25 2.00 2.25 2.25 2.25 2.25 2.50 3.25 2.25 3.25 2.25 2.25 2.75 2.50

2.50 2.00 2.50 2.00 2.00 2.00 2.50 1.50 2.00 2.50 1.50 1.50 1.00 2.50 2.00 2.00 3.00 2.50 1.00 3.00 2.00 2.00 1.50 3.50 1.00 2.50 1.00 2.50 3.50 2.50 3.50 1.00 1.50 2.00 2.00 3.00 2.00 1.50 2.00 2.00 1.50 3.00 2.00 1.50 3.00 2.00 2.00 2.50 2.00 2.00 2.50 3.00 3.50 1.50 1.00 1.00 2.50 2.00 1.00 2.00 2.00 4.00 2.00 1.50 2.00 2.00 3.00 3.00 1.50 2.50 2.00

1.50 1.75 2.25 1.75 1.50 1.50 1.50 1.50 1.75 2.00 1.75 1.75 1.00 2.25 1.50 1.25 1.25 1.75 2.00 2.25 1.50 1.25 2.00 2.00 1.25 2.00 1.50 1.25 2.25 1.50 1.75 1.50 1.50 2.00 1.75 1.50 1.50 2.00 1.75 1.75 1.25 1.00 1.50 1.25 2.00 1.25 1.25 1.50 1.50 2.00 2.00 2.00 1.75 1.50 1.25 2.00 1.50 1.75 1.50 2.00 1.00 1.50 1.50 1.25 2.75 2.25 1.25 1.25 1.75 1.50 1.75

1.50 1.50 2.00 1.50 1.50 1.00 1.50 1.50 2.00 1.50 2.00 1.00 1.00 2.00 2.00 1.50 1.00 1.50 1.00 2.00 1.00 1.00 2.50 1.50 2.00 2.00 2.00 1.00 1.50 1.50 1.50 1.50 1.00 1.00 1.00 1.00 1.00 1.50 1.50 2.50 1.00 2.00 1.50 1.00 1.50 1.00 1.00 1.00 1.50 1.00 2.00 1.50 2.00 1.00 1.50 1.00 1.00 1.00 1.50 2.00 2.00 1.50 1.50 1.00 1.50 1.50 3.00 1.00 1.50 1.50 2.00

2.50 2.00 2.50 1.50 2.50 1.50 2.50 2.00 2.50 2.50 1.50 2.00 2.00 2.00 2.00 1.50 2.00 2.00 3.00 2.50 1.00 1.00 2.00 1.50 1.50 2.00 3.50 1.00 2.50 2.00 1.00 2.00 2.00 2.50 2.00 1.00 2.00 2.00 1.50 2.00 1.00 3.00 1.50 1.50 2.50 1.50 2.00 2.00 1.50 2.50 2.50 2.00 3.00 1.00 1.50 1.50 1.50 1.50 2.00 2.00 1.00 1.50 1.50 1.50 2.00 2.00 2.00 2.00 2.00 3.50 2.00

2.00 1.50 2.00 1.50 1.50 1.50 1.50 2.50 2.50 2.00 3.00 1.50 1.50 2.50 1.50 1.50 1.50 2.00 3.00 2.50 1.00 2.00 2.50 1.00 1.50 2.50 1.50 2.50 2.00 2.50 2.00 1.50 2.50 1.50 2.00 1.50 2.00 2.50 1.00 2.50 2.50 2.50 2.00 1.50 2.50 2.00 1.50 1.50 2.00 2.50 2.00 2.50 2.50 2.00 1.50 1.50 1.00 2.00 2.50 2.00 1.50 2.50 2.50 2.00 2.50 1.50 1.50 4.00 2.00 1.50 2.00

2.00 1.00 1.00 2.00 1.00 2.00 2.00 2.00 2.00 2.00 1.00 1.00 1.00 2.00 2.00 1.00 2.00 5.00 1.00 1.00 2.00 1.00 2.00 1.00 2.00 2.00 1.00 1.00 2.00 2.00 2.00 1.00 2.00 1.00 2.00 4.00 2.00 1.00 1.00 2.00 1.00 2.00 2.00 1.00 1.00 3.00 3.00 2.00 1.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 2.00 2.00 2.00 1.00 4.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00

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Cluster Analysis
Cluster is a group of similar objects (cases, points, observations, examples, members, customers, patients, locations, etc) Cluster Analysis is a set of data-driven partitioning techniques designed to group a collection of objects into clusters, such that the number of groups (clusters) as well as their forms are unknown the degree of association or similarity is strong between members of the same cluster is weak between members of different clusters. The nature of Cluster Analysis is data exploration that conducted in repetitive fashion. Clusterization is not a single grouping, but the process of getting well interpretable groups of objects under consideration. Cluster Analysis classifies objects e.g. respondents, products or entities so that each object is very similar to others within the cluster with respect to some predetermined selection criterion or variable specified. The resulting clusters of objects exhibit high internal (within the cluster) homogeneity and high external (between the cluster) heterogeneity. The objective is to classify a sample of entries into a small number of mutually exclusive clusters based on the premise that they are similar within clusters but dissimilar among clusters. Following demographic features are used for the cluster analysis.

Demographic Feature
1 Total Income in Rs Age Education Level Marital Status Occupation < 5 Lakhs 18 24 Yrs Diploma Single Service 2 5 10 Lakhs 25 34 Yrs Graduate Married Business 3

Scale
4 15 20 Lakhs 45 54 Yrs PhD Divorced House Wife 5 >20 Lakhs 55 64 Yrs >65 Yrs 6 10 15 Lakhs 35 44 Yrs Post Graduate Widowed Student

Dendrogram A dendrogram is a tree-structured graph used in heat maps to visualize the result of a hierarchical clustering calculation. The result of a clustering is presented either as the distance or the similarity between the clustered rows or columns depending on the selected distance measure.

From the below Dendrogram, we can make it out which are those Indian consumers, which can be clubbed/clustered into 4 type of cluster based on the 5 factors that has been considered for cluster analysis. With a scale of 15 on dendrogram these are:-

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Cluster-1

Cluster-3 Cluster-4

Cluster-2

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Description
Cluster-1 Cluster-2 Cluster-3 Cluster-4

Sample Srl. No. of the Respondents in the specific Cluster Size

36 31 2 2 65,71,1,47,58,34,45,4,20,61,67,7,66,42,53,24,43,5,22,23,12,13,29,70,55 ,33,68,69,44, 60,11,63,41,46,2,52 9,50,64,10,16,56,37,54,19,17,14,27,49,18,26,25,57,15,36,40,21,28,35,8, 39,48,38,51,3, 6,32 59,62 30,31

Descriptive Statistics : The below table gives descriptive statistics for the dependent variables for each
of the clusters, whose short summary is shown below.

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Interpretation :
Demographic Profile : On the demographic profiles considered, there is distinct observation
among the 4 clusters as found through cluster analysis, as mentioned below. Cluster No. Demographic Profile Total Income Age Cluster-1 Education Level Marital Status Occupation Observation Above 15 Lakhs Between 25 64 Years Graduates & Post Graduates Most are Married Mostly in Service Most between 35 44 Years Few are at PhD Level Few are Single Very Few have own Business Remarks

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Cluster No.

Demographic Profile Total Income Age

Observation Between 5 - 15 Lakhs Most between 25 44 Years Mostly Graduates Most are Married Mostly in Service Between 5 - 15 Lakhs All are between 25 44 Yrs All are having PhD All are Married All of them are in Service Between 10 - 20 Lakhs All are between 45 54 Yrs. All are having Diploma All are Married All of them are in Service

Remarks Few between 15 20 Lakhs Few between 45 54 Years Few are Diploma & Post Graduates Few are Single Very Few have own Business

Cluster-2

Education Level Marital Status Occupation Total Income Age

Cluster-3

Education Level Marital Status Occupation Total Income Age

Cluster-4

Education Level Marital Status Occupation

Other Behavioural Profile:

clusters. Cluster No. Observations

From the descriptive as shown in previous pages, we can interpret the

consumer behaviour profile from the descriptive as mentioned below for each of these 4 different type of

Highly Price Conscious & strongly agree that price, Fuel Economy and Air Conditioning system is important influencing factor They agree on taking suggestions from their family & colleagues before purchase of the car and family need is equally important. Neutral on Status symbol & Chrome plated door handles. However agree on the fact that Brand name is important for car. Agree on the fact that they compare the cars before buying and neutral on the fact that they prefer to buy the cars during festive or promotional offers. Agree on the type of fuel to be used and also on the environmental / pollution norms before purchase of the car. Purchase decision is Neutral on advertisement/promotions, Instalment Payment & availability of Mobile charger, soft drinks holder in the car Agree on the fact that Technology, Driving comfort, Road Grip, Power & Pick Up, Resale value, Colour of the Car, Fog Lights, Rear View Camera & Reverse Gear Sensor, Sleek Gear Shift Knob, High Quality Audio/Video System, Inbuilt navigation system, ABS, Air Bags, Child Lock Rear Windows, Insurance Facility, Extended warranty and free pick up and drop during servicing are important factor on car purchase

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 Almost neutral on the fact that Car Dealer should be nearby and all cars must be under one roof for deciding which car to purchase Very strongly agree on the fact that availability of spare parts and nearby service station is an important factor that need to be considered before purchase of the car.

Cluster No.

Observations Agree that price, taking suggestions from their family members/colleagues, family needs and preference to buy cars during festive or promotional offers are important. Agree of the fact that Status symbol, Brand name is important for car. Strongly agree on the fact that they compare the cars before buying. Strongly agree that fuel economy and Power & Pick Up are important to be considered before deciding on the car purchase. This is supported by that fact that this group is relatively younger group in age who believes in power & pick up combined with very good fuel economy. Agree on the type of fuel to be used and also on the environmental / pollution norms before purchase of the car.

Purchase decision is Neutral on advertisement/promotions, availability of Mobile charger, Chrome plated door handles, Fog Lights, Rear View Camera & Reverse Gear Sensor, Sleek Gear Shift Knob, Inbuilt navigation system and soft drinks holder in the car Agree on the fact that Instalment Payment, Technology, Driving comfort, Road Grip, Resale value, Colour of the Car, High Quality Audio/Video System, Air Conditioning System, ABS, Air Bags, Child Lock Rear Windows, Insurance Facility, Extended warranty, Near By Dealer Location and free pick up and drop during servicing are important factor on car purchase Almost neutral on the fact that all cars must be under one roof for deciding which car to purchase Almost very strongly agree on the fact that availability of spare parts and nearby service station is an important factor that need to be considered before purchase of the car.

Cluster No.

Observations Strongly agree that family needs, Environmental / Pollution norms, Technology, Fuel Economy, Power & Pick Up, ABS, Air Bags and Child Lock for Rear Windows are very important influencing factor that need to be considered before purchase of the car. Disagree with the fact that Status symbol, preference during festive or promotional offers,

availability of soft drinks holder in the car are important factor that need to be looked into during purchase of the car. Neutral with facts on Brand name, Advertisement & Promotions, Near By Dealer Location, all cars must be under one roof, availability of Mobile charger, Chrome plated door handles, Rear View Camera & Reverse Gear Sensor and Sleek Gear Shift Knob.

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 Agree on the fact that they compare the cars before buying and sensitive about type of fuel to be used in the car before purchase. Purchase decision is Neutral on availability of High Quality Audio/Video System and free pick up and drop during servicing. Agree on the fact that Price, taking suggestions from their family members/colleagues, Instalment Payment, Driving comfort, Road Grip, Resale value, Colour of the Car, Fog Lights, Air Conditioning System, Inbuilt navigation system, Insurance Facility, availability of spare parts and nearby service station and Extended warranty are important factor on car purchase.

Cluster No.

Observations Strongly agree that family needs, Instalment Payment, Insurance Facility, Road Grip, Fuel Economy, Power & Pick Up, Fog Lights, Air Conditioning System, ABS and Air Bags are very important influencing factor that need to be considered before purchase of the car. Disagree with the fact that, preference during festive or promotional offers, Advertisement & Promotions, Near By Dealer Location, all cars must be under one roof are important factor that need to be looked into during purchase of the car. Neutral with facts on Status symbol, availability of soft drinks holder in the car are factors of consideration during purchase decision of the car. Agree on the fact that they compare the cars before buying and sensitive about Environmental / Pollution norms and type of fuel to be used in the car before purchase. Agree on the fact that Price, Technology, Brand name, taking suggestions from their family members/colleagues, Driving comfort, availability of Mobile charger, Resale value, Colour of the Car, Chrome plated door handles, Rear View Camera & Reverse Gear Sensor, Sleek Gear Shift Knob, High Quality Audio/Video System, Inbuilt navigation system, Child Lock for Rear Windows, availability of and free pick up and drop during servicing and Extended warranty are important factor on car purchase. Almost very strongly agree on the fact that availability of spare parts and nearby service station is an important factor that need to be considered before purchase of the car.

Suggestions
1. The respondents perceive that Fuel Economy, Availability of nearby Service station are the most important features of the passenger car followed by availability of spare parts, Technology, Family Needs, Child Lock for the Rear Windows and price of the car, thus the manufacturers should design the product giving maximum weightage to these factors. 2. Experts believe the main driver of the Indian car market is the availability of car finance on easy instalments and reasonable interest rates. Most of the respondents also reported that due to the easy availability of finance they buy cars. So the car dealers should have tie-up arrangements with the authorized financial institutions to boost sales. 47 | P a g e

3. Most of the respondents preferred to have the Air Bags and Anti Brake Skidding feature in the car which is meant for safety of the Driver. Mostly, in the salarised class in India the driver is the key bread owner of the family and safety for the owner of the car is having much of importance. Hence, the Govt. of India as well as all manufacturers need to seriously think of making ABS and Air Bags as a must feature in all cars in line with European countries. 4. The study reveals that the middle class population has risen to 13 per cent of the total population. Hence the brand image and brand loyalty could be boosted by selling quality cars at a reasonable price to suit the needs of the middle income group. 5. Car owners feel that the hospitality shown by the dealers is more during their visits to the places of dealers before and immediately after the purchase. But after some time they face a problem with their dealers regarding after sales service. Therefore, it is suggested that the services rendered or to be rendered should be properly explained, friendly approach and reliability in service are to be further improved.

Conclusion
Consumer Behaviour consists of all human behaviour that goes in making purchase decisions. An understanding of the consumer behaviour enables a marketer to take marketing decisions which are compatible with its consumer needs. There are four major classes of consumer behaviour determinants and expectations, namely, cultural, socio-economic, personal and psychological. The socio-economic determinants of consumer behaviour consist of age, marital status, occupation, education, income, family size etc. Realizing the importance of passenger car industry in the present economic situation, the researcher has analyzed the perceptions, and behaviour of consumers related to this product. It is rightly said; yesterdays luxuries are todays necessities. Hence in this digital world, car is no longer a luxury. From the discussions made in the previous chapters, there are certain product attributes which are identified in the study as influencing the purchase decision and satisfying the consumers. The growth in the population of India and the increasing number of middle class consumers has attracted the attention of car manufacturers and marketers. The manufacturers and marketers who study the behaviour of consumers and cater to their needs will be successful. It may be concluded that consumer behaviour has a greater role to play in the LPG era of economic activities for which a necessary survey and research should be conducted in an efficient manner.

The study shows that brand perception is something which starts building up before a car is purchased and goes on with its use and is reflected in the recommendations the customer makes to his acquaintances for the same car. Also, its seen that the customer might not be using the car still he holds the perceptions about it. Brand personality of a car is enforced by the sellers in the mindsets of the customers and the customers react to it by forming their perceptions about the car and this reflects in the overall brand image of the car. So brand image and brand personality complement each other and the brand perception aids the building of brand image. Since dealers are the connecting link between the customers and the manufacturers thus becoming the most important link in joining the company to its customers as he is the person who will sell the product, will deliver it and will keep on providing the after sales services to the customers as and when required.

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So, it becomes necessary automatically to study dealer as a part of customers satisfaction journey with the product called car! Their proximity to the customers, the service provided by them and the relationship maintained by them with the customers helps the car companies to establish and reinstate the brand personality communicated by them to the customers. Finally the major point that emerges out of this detailed study is a caution for the car companies. It says that there is no doubt that Indian car market may be growing with a double digit figure still the car companies have a long way to travel to convince their customers about the brand personality of their cars and how it suits the prospective buyers. Simply because it simply is not a guarantee that how so ever good the customer might be holding the brand perception and how so ever good the brand image may be it is not a guarantee that it will convert into sale. Cars just like clothes and accessories suit the style and persona of a person and since all cars will become commodity someday the key to sell and excel in the market will lie with a person who knows how to use the perceptions of the customers to its use and sell the cars coz ultimately only that car survives which sells!

References :
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. www.siamindia.com www.autocarindia.com www.overdrive.com www.indiastat.com Chidambaram and Alfread A Study on Brand Preference of Passenger Car with Reference to Coimbatore City, Indian Journal of Marketing, Vol.34, No.9, September 2007, p.30. Churchill, Gilbert A., and Carol Suprenant, An Investigation into the Determinants of Customer Satisfaction, Journal of Marketing Research, 14th November 1982, p.54. Clement Sudhakar J., and Venkatapathy R., A Study on Automobile Purchase Peer Influence in Decision Making, Indian Journal of Marketing, Vol.35, No.6, June 2009, p.16. Furse, David H, Girish N. Punj and David W.Stewart, A Typology of Individual search strategies among purchasers of New Automobiles, Journal of Consumer Research, Vol.10, March 1984, p.43. Gaedebe, R (2007), Consumer Attitude towards Cars Made in Developing Countries, Journal of Retailing, 49 (summer), pp. 13 24. Joseph W. Newman, Richard Stalin, Pre-purchase Information seeking for New Cars and Major Household Appliances, Journal of Marketing Research, Vol. IX, August 1972, p.20. Joseph W. Newman, Richard Werbel, Automobile Brand Loyalty, Journal of the Academy of Marketing Science, Vol. 2 (4), (Fall), 1974, p.19.

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Annexure-A: Consumer Behaviour in India for Car Purchase

According to you, which of these factors are affecting Car Purchasing Decision in India.
Q1 Price is one of the most important factor for purchase decision Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q2 You take Suggestions from your family Members before selecting the car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q3 Family Needs is important for you Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q4 You purchase the car for Status Symbol Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q5 Brand Name is Important for Buying the car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

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Q6 You compare various cars before buying Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q7 You prefer to buy the car during Festival Season / Promotional Offers Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q8 You give importance to Type of Fuel used by the car i.e. Diesel/Petrol/Electric Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q9 You take Advice of from your Friends / Colleagues Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q10 You are very particular about Environmental / Pollution norms and regulations what the car conforms Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q11 You also look for Advertisements And Promotions of the car before purchase Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

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Q12 Driving Comfort is one of the factor you look for Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q13 Resale Value is a factor for consideration before car purchase Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q14 Selection of Car is influenced by Installment Payment Facility Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q15 Selection of Car is influenced by Insurance Facility Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q16 Your selection is also influenced by Extended Warranty feature as offered by manufacturers Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q17 Location Of The Car Dealer Shop is important to you as well Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

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Q18 You would like to have Availability Of Variety Of Cars Under One Roof before buying Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q19 You look out for the available Technology Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q20 Mobile Charger Port is important to you Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q21 Road Grip is important to you Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q22 You check Mileage / Fuel Economy before purchase of the car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q23 You check & compare for Power and Pick Up before purchasing the car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

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Q24 The Colour of the Car is important for you Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q25 You prefer to have Chrome Plated Door Handles in your car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q26 You will look out for Fog Lights option as well Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q27 Your selection of car depends upon availability of Rear View Camera and Reverse Gear Sensor Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q28 Your selection of car depends upon availability of Soft Drinks Holder near Driver Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q29 Your selection of car depends upon availability of Sleek Gear Shift Knob Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

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Q30 Your selection of car depends upon availability of Good Audio/Video System Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q31 Your selection of car depends upon availability of Air Conditioning System Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q32 Your selection of car depends upon availability of In Built Navigation System Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q33 You will give importance to availability of Anti Brake Skidding (ABS) in the car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q34 You will give importance to availability of Air Bags in the car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q35 Your selection of car depends upon availability of Child Locks for the Rear Windows Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

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Q36 Other Car Accessories are important aspects of your selection of car Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q37 Easy Availability Of Spare Parts is important factor for your car selection Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q38 Availability of Service Station in the vicinity is equally important factor for car selection Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q39 You prefer to have Free Pick up & Drop during Servicing Strongly Agree (1) Agree (2) Neutral (3) Disagree (4) Strongly Disagree (5)

Q40 Which region of the country do you live in? East (1) West (2) North (3) South (4) Central (5)

Q41 What is your approx. total income before taxes? Less than 5 Lakhs (1) Between 5 - 10 Lakhs (2) Between 10 - 15 Lakhs (3) Between 15 - 20 Lakhs (4) > 20 Lakhs (5)

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Q42 What is your age? 18 - 24 Years (1) 25 - 34 Years (2) 35 - 44 Years (3) 45 - 54 Years (4) 55 - 64 Years (5) Above 65 Years (6)

Q43 What is your education level? Diploma (1) Graduate (2) Post Graduate (3) PhD (4)

Q44 What is your marital status? Single (1) Married (2) Widowed (3) Divorced (4)

Q45 What is your gender? Male (1) Female (2) Q46 What is your Occupation? Service (1) Business (2) Student (3) House Wife (4)

Q47 Which type of Organisation you are working? Private (1) Public (2) Government (3) Others (4)

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