1.

Project Title A Study on Consumer Perception about brand

Volkswagen on Surat City

Subject
Subject Area
Duration:2 months

2. Summary

3. Principal and Co-Investigators Details

4. Introduction

4.1 Consumer Perception about Brands

In psychological terms, perception is our ability to make some kind of sense of reality
from the external sensory stimuli to which we are exposed. Several factors can influence
our perception, causing it to change in certain ways. For example, repeated exposure to
one kind of stimuli can either make us oversensitive or desensitized to it. Additionally, the
amount of attention we focus on something can cause a change in our perception of it.
(Lars Perner 2010)
A brand, or a brand name, is the attempt to impose some kind of identifying feature on a
product or service so that it is easily recognized by the general public. A brand is
oftentimes associated with an image, a set of expectations or recognizable logo. The goal
of a brand is to set a product or service apart from others of its kind, and influence the
consumers to choose the product over similar products simply because of its associations.
(Lars Perner 2010)
Brand is essentially the sum of all experiences related to the product, service, and
companies that make and deliver the product. Brand perceptions are shaped by functional
experiences (i.e. speed, quality, reliability, ease of use) as well as emotional experiences
i.e. make me feel better, improve my performance, make my life/job more gratifying or
easier the customer associates with the product and company. (Lars Perner 2010)
Brand experiences and perceptions for the same are developed over time through a variety
of sources, including:

Previous experience with the brand

Interactions with sales, customer service, and other employees

Recommendations from friends and colleagues

Reviews by reputable sources

Advertising

Brand managers need to understand how customers perceive and select brands in specific
product categories and market segments. It is also needful to know what is important to
customers when making a brand decision, where customers get information about
products and services, and what customers think about your brand. (Lars Perner 2010)

4.2 Automobile Industry

The automotive industry is a wide range of companies and organizations involved in
the design, development, manufacture, marketing, and selling of motor vehicles. It is one of
the world's most important economic sectors by revenue. The automotive industry does not
include industries dedicated to the maintenance of automobiles following delivery to the enduser, such as automobile repair shops and motor fuel filling stations. (Rae 2013)

Automobile Industry deals with the manufacturing of:

Passenger cars are motor vehicles with at least four wheels, used for the transport of
passengers, and comprising no more than eight seats in addition to the driver's seat.

Light commercial vehicles (LCV) are motor vehicles with at least four wheels, used for
the carriage of goods. Mass given in tons (metric tons) is used as a limit between light
commercial vehicles and heavy trucks. This limit depends on national and professional
definitions and varies between 3.5 and 7 tons. Minibuses, derived from light commercial
vehicles, are used for the transport of passengers, comprising more than eight seats in
addition to the driver's seat and having a maximum mass between 3.5 and 7 tons.

Heavy trucks (HCV) are vehicles intended for the carriage of goods. Maximum
authorised mass is over the limit (ranging from 3.5 to 7 tons) of light commercial
vehicles. They include tractor vehicles designed for towing semi-trailers.

Buses and coaches are used for the transport of passengers, comprising more than eight
seats in addition to the driver's seat, and having a maximum mass over the limit (ranging
from 3.5 to 7 tones) of light commercial vehicles. (oica 2014)

4.2.1 Automobile Industry in India:

The automobile industry is one of Indias most vibrant and growing industries. This industry
accounts for 22 per cent of the country's manufacturing gross domestic product (GDP). The
auto sector is one of the biggest job creators, both directly and indirectly. It is estimated that
every job created in an auto company leads to three to five indirect ancillary jobs.
India's domestic market and its growth potential have been a big attraction for many global
automakers. India is presently the world's third largest exporter of two-wheelers after China
and Japan. According to a report by Standard Chartered Bank, India is likely to overtake
Thailand in global auto-export market share by the year 2020.
The next few years are projected to show solid but cautious growth due to improved
affordability, rising incomes and untapped markets. With the governments backing, and
trends in the international scenario such as the decline in prices of natural rubber, the Indian
automobile industry is slated to witness some major growth.(ibef 2007)

The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry
during the period April 2000 August 2014 was recorded at US$ 10,119.68 million, as per
data by Department of Industrial Policy and Promotion (DIPP).
Data from industry body Society of Indian Automobile Manufacturers (SIAM) showed that
137,873 passenger cars were sold in July 2014 compared to 131,257 units during the
corresponding month of 2013. Among the auto makers, Maruti Suzuki, Hyundai Motor India
and Honda Cars India emerged the top three gainers with sales growth of 15.45 per cent, 12
per cent and 11 per cent, respectively.
The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of
increased demands from the urban market. Total sales across different vehicle segments grew
12 per cent year on year (y-o-y) to 1,586,123 units.
Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per cent of
the total two-wheeler market from just 8 per cent a decade back. The ever-rising demand for
scooters, which has far outstripped supply has prompted Honda to set up its first dedicated
scooter plant in Ahmedabad.
Tractor sales in the country is expected to grow at a compound annual growth rate (CAGR)
of 89 per cent in the next five years making India a high-potential market for many
international brands. (ibef 2007)

Figure 1: Segment Wise market share (stockshastra 2012)

The ranks that customers place for choosing products are: reliability, durability, easy
maintenance, service, ease of use, a trusted brand name, and low price etc. The quality of a
product has a considerable impact towards its performance, thus it is linked to a customer's
worth and satisfaction. Similar is the case with the purchase of an automobile. People prefer
a motorbike over a four-wheeler car, because the former is economical and affordable. As
there are a lot of motorbike companies in the market currently thus there is a huge
competition among the players. As a result people also have a set of choices and preferences
over a company or a brand. (ibef 2007)

Figure 2: Players in Market (stockshastra 2012)

4.3 Brand Profile: Volkswagen Brand

Volkswagen group (pronounced [folks-wagon]), and its subsidiary is a German
multinational automotive manufacturing company having its headquarter in Wolfsburg of
Lower Saxony in Germany. It designs as well as manufactures and distributes passenger and
commercial vehicles, engines, turbo machinery and motorcycles. In 2012, it produced the
second-largest number of motor vehicles of any company in the world. It has maintained its
largest market share in Europe for over the past two decades. As of 2013, it was ranked ninth
in the Fortune Global 500 list of the world's largest companies over the globe. (Volkswagen
2014)
Volkswagen group includes 12 brands with passenger cars under the Audi, Bentley, Seat,
Skoda, Bugatti, Porsche, Lamborghini, and Volkswagen marques; motorcycles under the
Ducati brand; and commercial vehicles under the MAN, Neoplan, Scania, and Volkswagen
Commercial Vehicles marques. The company has operations in approximately 150 countries
and operates 100 production facilities across 27 countries. (Volkswagen 2013)

Significance:
For any brand to remain in market, it main focus needs to on consumer needs and
wants. Hence, Consumer Perception about brand is a critical factor. The automobile
market has recently seen a rise in competition as compared to other markets.
Automobile is a dynamic industry in India. So, for a brand such as one belonging to an
automobile, it is necessary to research into what are the factors that most affect a
persons decision to buy a car. As for investing in items of basic need such as rice,
wheat people do not care much about brand but for investing in luxury goods such as
car, people do think deeply and value of brand matters.
The study makes an attempt to know the perception of consumer about famous
automobile brand Volkswagen. It seeks to understand how consumer perceives an
image for a particular brand. Also it helps to understand how consumer perception

about the brand can change his or her buying decision for the same. The importance of
this study is to know what consumers perceive about the Volkswagen brand.

Objective of the study

Primary objective:
The primary objective is to know about the consumer perception about brand Volkswagen
in Surat City.

Secondary objective:
1. To analyze how the consumer perception for a brand can affect the willingness of buying
it.
2. To study the determinants and variables affecting the consumer perception for a
particular brand.
In brief, the objective of this Study is to know peoples perception and how it affects its
purchasing decision of a brand.

5 Literature Review
5.1 LR Plan
In order to get literature review for my subject the literature reviews plan, which I considered
was various perspectives surrounding the topic such as:

One of the perspective was to understand what consumer perception is.

Next I tried to find how consumer perception affects brand or a company.

Following to which I tried to understand how consumer perception about a brand

affects his/her purchase behaviour for the same.

Finally, I tried to generalise my search for finding consumer perception for

automobile industry over the globe and for the country India.

With the help of Google Scholar, JSTQR and ProQuest database I found out approximately
20 literature reviews which were closet and near to my topic A study on Consumer
Perception about a brand Volkswagen in Surat city for the literature review.

5.2 Consumer Perception

Consumer value is a concept of continuing interest to scholars, marketing researchers, and to

many marketing practitioners. However, the presence of multiple meanings, the use of
different terms, and even the existence of a diversity of opinions regarding its features and
nature reflect the complexity of its study and give rise to the possibility of confusion in its
application. (Raquel and M ngeles 2006) Presents a review of the existing literature on the
concept of value in order to shed light on the confusion surrounding this construct. As a result
of this review and analysis, the features that characterize the concept of consumer value are
determined and a conceptual framework is proposed as a basis for future research.

5.3 Consumer Perception affects Brand or a Company

The paper of (Zhonqqin and Kondap 2006) examines the usefulness of the brand origin
concept in shaping the perception of Indian consumers. The results demonstrated that most
consumers can identify the brand origin correctly but the recognition power decreases when
the brand has a long history of "localization". The results also implied that the origin is a
useful concept for companies engaging in an emerging market such as India.
Understanding consumer responses to brands has become an important topic for both
academicians and practitioners. The customer-based brand equity scale asks consumers to
respond to a set of questions designed to determine brand loyalty, brand associations,
perceived quality and awareness, and is generally an overall measure of the strength of
a brand. Another option for the same is the Implicit Association Test (IAT). The IAT taps
into consumer feelings about brands without using traditional paper-and-pencil scale items.
Research of (Priluck and Till 2010) compares a standard brand equity scale with the IAT to
determine instances when they may diverge in their measurement of brand attitudes.
The brand image is of paramount importance for customers as well as marketers. Beyond
their functional utility, products have a symbolic meaning. (Farhat and Khan 2012) Parts of
this symbolic meaning are accounted for by concepts like brand image and product-user
image. The product image influences consumer preferences and satisfaction through a
congruence effect. Inter-relationships exists between the various facets of the brands and
corresponding outcomes.
Brand equity, perceived risk, and customer loyalty have significant and positive relationship
to customer involvement.

Brand equity

and customer loyalty

partially

mediate

the

relationship between perceived risk and customer involvement, while customer loyalty has
slightly stronger mediating effect on customer involvement than brand equity. (Hu 2012)
A product recall is a request to return to the manufacturer, a batch, unit or an entire
production run of a product, generally over safety concerns or design defects or labelling
errors. All the firms' efforts concentrate to settle in the consumer mind permanently. The
success

of

the

marketer

depends

in

forming

the perception or

changing

the

perception depends. The research paper of (Venugopal, et al. 2012) provides an insight into
the effect of product recalls on the brand perception by the people and the brand image in

their minds. The choice of brand name for a product can change the consumers judgment
about the product and their purchase decision-making process. With competition getting
fiercer and product quality becoming more homogenous, a better brand name can be decisive
in product choice if the consumers compare several products. The research offers new
physiological insights about how brand names are processed in the consumer's brain in order
to identify potential determinants of better brand names. (Hillenbrand, et al. 2013)
Brand personality is a strategic tool for brand differentiation and creation of consumerbrand relationships. Brand personality also influences consumer responses to persuasion
attempts. Brand personality matters when consumers interpret and react to persuasion
attempts:

flattery

from

sincere brand decreased brand attitude

and

increased

disappointment, yet these effects did not occur for the exciting brand. This research of
(Guvremont and Grohmann 2013) suggests that managers should consider brand personality
when designing brand communications and managing customer interactions.
The entrance of new international brands affects market dynamics in a market where national,
international and private brands are present. Hence its necessary to understand the
phenomena of consumer choice and preference in the backdrop of such a market.
The consumer choice is model in the context of these different categories of brands by using
a multinomial discrete choice model. The estimated model of (Ghose and Lowengart 2013)
provides several diagnostic findings of managerial interest especially with respect to what
kinds of product attributes differentially affect choice probabilities of different categories
of brands - the international, the national and the private.

5.4 Consumer Perception about a brand affects his/her purchase behaviour

for the same.
When consumers see a high degree of fit between the new product and the existing brand,
brand extensions, sub-brands, and nested brands are about equally preferred. (Bhatt, Kelley
and O'Donnelle 1998) But when consumers perceive little fit, a new brand name is the most
preferred, followed by nested brands, sub-brands, and extensions, in that order.
The processes of consumer perception and decision making remain relatively complex
phenomena. One way in which these processes may be influenced is through the explicit
mentioning of product attributes in advertising. The study investigates consumer
perceptions of mentioned product attributes in magazine advertising for a specific product
category. Results of (Puth, Mostert and Ewing 1999) confirm a clear relationship between

attributes specifically mentioned in advertising for the three selected brands and respondents'
rating of those attributes against evaluative criteria for the product category.
(Tran and Fabrize 2013) Examines the effect of brand names (foreign versus national)
on consumer perception. It investigates how product ratings affect the relationship
between brand names and consumer perception which is measured by brand attitude,
advertisement feeling, purchase intention, and advertisement attitude. The results show that
the national brand causes more positive consumer perception than the foreign brand. The
findings

suggest

that

product

attribute

information

moderates

the

relationship

between brand names and consumer perception. The results are important and relevant to
branding strategies marketers use to counteract competitive brands.

5.5 Consumer Perception for automobile industry over the globe and for
the country India.
A potential customer from an automobile discriminates between available features, prioritize
ones preferences and evaluate their relative worth taking. Therefore, one should not only
consider the characteristics of vehicle but also their relative utility as perceived by customer
and price they are willing to pay. Based on his analysis, (Lopes, et al. 2006) concluded that
an understanding of consumer behaviour relative to the attributes of goods, such
as automobiles, could enhance the management of the industry value chain.
Study of (Lee 2009)

examines relationships between consumer personality and brand

personality as the self-concept of consumers and explores applications to branding strategies

in consumer markets. A conceptual framework was developed to explain the effect of brand
identification on brand purchasing. The important variables of this framework included the
work-hard, positive and adventure constructs of consumer personality, and the upscale and
honest constructs of brand personality. The empirical results indicate there are positive
relationships between consumer personality and brand personality as the self-concept. These
relationships had a statistically significant effect on consumers' identification with a brand.
The paper considers how product characteristics, segment differences, and brand-name
effects determine the price structure of the new car market. The study has clear implications
for auto manufacturers, distributors and advertisers. It demonstrates the role of brands,
segments, and observed product differences in the price structure of the automobile market.

The paper provides new interesting insights into critical issues for pricing strategy
and brand management. (Baltas and Saridakis 2009)
Globalization and liberalization, with the entry of foreign companies, changed the automobile
scenario in India. These companies started capturing the hearts of Indian customers with their
choice of technological and innovative product features, with quality and reliability.
(Balakrishnan and Jagathy V P 2012) came up with the identification of possible parameters
and a framework development, that influence the consumer purchase behaviour patterns of
passenger car owners in the State of Kerala.
Keeping in consideration that people have a criteria of preference in the minds before they go
to purchase a motorbike, the researcher has tried to summate some of the factors which
people evaluate before the actual purchase. Through the paper of (Shakeel-Ul-Rehman 2013)
he tried to explore a real order of preference which a customer places and rank of some
important

factors,

which

play

an

important

role in making

the

final

purchase

decision towards a two-wheeler.

Knowledge of consumer behaviour is one of the important situations for the marketing
manager. Quite simply, in order to make successful decisions the manager must have an
understanding of how consumers are likely to respond to the actions of the company. In
addition, an understanding of the factors that influence consumers may assist an individual in
understanding his or her own buying patterns. Because of all these facts, research of
(Kabadayi, Alan and zkan 2013) is significantly important for the marketing managers who
are working in automobile market.
Consumer perception has an equivalent role to play in the growth and development of the
Automobile industry. Consumer perceive each brand in form of certain categories.
Combining these categories helps the consumer to outline the perception about the brand.
Hence for doing so, (D. P. Pednekar 2013) study seems significant.

6. Medhodology

My research findings includes integration of both primary and secondary analysis.

Primary analysis data includes data gathered in form of questionare.
Secondary analysis data include journals, newspaper, magazines and information collected
from websites. The data for the aforementioned project has been gathered through authentic
and reliable secondary sources. The primary advantage of secondary data is that it is cost
effective and less time consuming. It provides a way to access the work of the best scholars
all over the world.

7. Work Elements

8. Time Schedule

Literature Review
Finalisation of Questionare

9. Budget Details