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Project report on customer preference towards various

TWO WHEELERS
Submitted in the partial fulfilment of the course work
of XI Economics
(2017-18)

Submitted to:- Submitted by:-


Mr. Giridhar Gopal Himanshu Talwar
(P.G.T. Economics) Roll.no.-16
(G.P.S) XI-Comm. /B

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DECLARATION

I, Himanshu Talwar do hereby declare that the project titled customer preference

towards various Air conditioner brands is an original piece of work prepared by

me. It is not copied one and has not been submitted to any board/university earlier.

While preparing this project, I have followed all the guidelines issued by CBSE in this

regard.

(Himanshu Talwar)

XI-comm. /B

Roll.No-16

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CERTIFICATE

It is to certify that the project titled Customer preference towards various Two

Wheelers prepared by Himanshu Talwar is an original piece of work and submitted

for the partial fulfilment of course work of XI-economics prescribed by CBSE, the

student has worked under my supervision and carried out the original work.

(Giridhar Gopal)

(P.G.T. Economics)

(G.P.S)

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ACKNOWLEDGEMENT

Every project big or small is successful largely due to the effort of a number of

wonderful people who have always given their valuable advice or lent a helping

hand. I sincerely appreciate the inspiration; support and guidance of all those people

who have been instrumental in making this project a success.

I, Himanshu Talwar, the student of Gobindgarh Public School (Mandi Gobindgarh),

am extremely grateful to my teacher Mr. Giridhar Gopal for the confidence

bestowed in me and entrusting my project entitled Customer preference on various

Two Wheelers.

At this juncture I feel deeply honoured in expressing my sincere thanks to Mr. Manoj

kumar (H.O.D Economics dept.) for making the resources available at right time and

providing valuable insights leading to the successful completion of my project.

Last but not the least I place a deep sense of gratitude to my family members and

my friends who have been constant source of inspiration during the preparation of

this project work.

(Himanshu Talwar)

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CONTENTS

S. No. Contents Page No.

Declaration

Certificate

Acknowledgement

Introduction

Major Players of the Industry

Research Methodology

Analysis and Interpretation

Findings

Suggestions

Conclusion

Annexure

INTRODUCTION
Meaning of customer

A customer is an individual or business that purchases the goods or services


produced by a business. Attracting customers is the primary goal of most public-
facing businesses, because it is the customer who creates demand for goods and
services. Businesses often compete through advertisements or lowered prices to
attract an ever-larger customer base.

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Meaning of customer preference

Definition: Preferences refer to certain characteristics any consumer wants to have in


a good or service to make it preferable to him. This could be the level of happiness,
degree of satisfaction, utility from the product etc.

Description: Preferences are the main factors that influence consumer demand.
Economists study preferences to perceive the demand for each commodity and the
future implications it may cause.

Factors affecting customer preference

Consumer preferences describe the reasons for the choices people make when
selecting products and services. Analyzing the factors that determine consumer
preferences helps businesses target their products towards specific consumer
groups, develop new products and identify why some products are more successful
than others.

Advertising

Advertising plays an important role in consumer preference, especially for non-


durable goods such as food or magazines. Advertising informs consumers of
available goods and services and also shapes their impressions of these products.
Advertising can also create demand; for example, a consumer may not have wanted
a new cell phone until he saw flashy new phones on TV.

Social Institutions

Social institution, including parents, friends, schools, religion and television shows
also influence consumers' preferences. For example, kids might want to have the
same toys their schoolmates have, while young adults may purchase the same
products their parents used to buy.

Cost

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Consumers usually choose to purchase more of a good if the price falls. For
example, a sale or reduced prices may increase consumption of a good. On the
other hand, an increase in price may cause reduced consumption, especially if the
good has available substitutes.

Consumer Income

Consumers often desire more expensive goods and services when their income
increases. If they suffer a decrease in income, they are more likely to choose less
expensive goods and services. For example, business selling luxury goods, such as
jewellery, will probably be more successful in a high-income area than a low-income
area.

Available Substitutes

If a product has several substitutes -- alternative products that consumers may


choose instead a particular brand of product -- consumers will be more sensitive to
changes in price. However, if consumers do not perceive similar products to be
effective substitutes -- for example, consumers who do not think Coke and Pepsi are
equally delicious -- they will be less likely to switch to a substitute based on price.
This concept is called the price elasticity of demand.

Customers buying behavior is enormous, and highlights the importance of the


customer at the center of the marketer's universe. Each customer is unique with
different needs and wants and buying choices and habits are influenced by habit,
and choice that are in turn tempered by psychological and social drivers that affect
purchase decision processes. It is a complex multidimensional variable. Customer
buying behavior is critical for influencing not only product purchase decisions but
also important marketing decisions for commercial firms, nonprofit organizations, and
regulatory agencies. Applications of customer buying behavior decisions lie on
marketing strategies, regulatory policies, social marketing, and informed individual.
Buying Behavior is the decision processes and acts of people involved in buying and
using products. Customer buying behavior is the sum total of a consumer's attitudes,
preferences, intentions and decisions regarding the consumer's behavior in the
marketplace when purchasing a product or service. The study of customer behavior

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draws upon social science disciplines of anthropology, psychology, sociology and
economics.

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MAJOR PLAYERS OF THE INDUSTRY

India is among the few nations on the planet where every second person has a two
wheeler. The two wheeler industry grew by almost 13%, and that figure is on the rise
ever since. Following is a list of the best performing two wheeler companies in the
country:

Hero MotoCorp

Hero MotoCorp is the biggest manufacturer of two wheelers in the world given the
number of units made per year. The company is also known for its innovative
methods, especially after it made the headlines by manufacturing the planets most
fuel efficient two wheeler Splendor iSmart, which offers a mileage of about 102
kilometres per litre. The company commenced operations in 1984 as Hero Honda,
but soon a merger between Hero Cycles of India and Honda Motors of Japan
ensued, and following the split between both companies in 2010, Hero Cycles and
Honda Motors turned into competitors. Some of the popular two wheelers
manufactured by Hero MotoCorp include Splendor, Glamour, CBZ, Achiever,
Karizma, Hunk, Passion and CB series two wheelers. The company is also famous
for designing the Pleasure and Maestro scooters.

Honda Motorcycle and Scooter India

The first name that pops into every individuals mind when considering the purchase
of a two wheeler is Activa. Honda Motorcycle and Scooter India (HMSI) is Indias
second biggest two wheeler manufacturer as it sells in excess of two lac units of the
Activa alone every month. During the 1980s, Honda dominated the Indian two
wheeler industry along with Kinetic Engineering Limited. Both companies partnered
between 1984 and 1998 before Mahindra Motors acquisition of Kinetic. The Honda
Active, which has been in production since 2000 in India, is the countrys best selling
two wheeler. HMSI also partnered with Honda MotoCorp until 2010 after which it
started to sell its own motorcycles such as Shine, Unicorn, CBR 150R and 250R,
Dream Yuga, CB Trigger, etc. The Shine and Unicorn brands of the company are

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currently among the best-selling bikes in the country. Although the growth of the
companys sales is relatively slow, the company seems to be making healthy
progress with each passing year.

Bajaj Auto

Bajaj is one of the few successful automobile companies in India that sells not only
two wheelers, but also three and four wheelers. The company was established
during the 1930s in Rajasthan, and has since grown into one of the biggest two
wheeler manufacturers in India. Bajaj had a fairly successful stint between the 1960s
and 1990s when majority of vehicles that rules the streets of India were
manufactured by the company. Scooters such as Vespa 150, Priya and Bajaj Chetak
were among the companys best-selling products. It was only in the 1990s that Bajaj
conceded its place as the market leader following the widespread manufacture of
motorcycles.

Despite people preferring motorcycles over scooters, Bajaj stayed in the market by
manufacturing its own set of bikes. At the moment, the companys portfolio includes
some of Indias most popular and best-selling two wheelers, including Avenger,
Pulsar, Platina and Discover. The company is now preparing to release variants of
the Platina and CT100 to improve its market share in the 100cc segment. The
company also manufactures other popular bikes such as Kawasaki Ninja and KTM
Duke.

India Yamaha Motor


A segment of Yamaha Motor Company of Japan, India Yamaha Motor holds 4% of
countrys motorcycle market, and about 7.5% of the nations scooter market. Around
15,000 scooters are sold every month by India Yamaha Motor. A few of the popular
two wheelers manufactured by the company include the R15, SZ-X, FZ16, Fazer, SS
125, Crux, YBR 110 and YBR 125. India Yamaha Motor is also renowned for selling
racing super bikes such as R1 and YZF R1M. While the R1 costs around Rs.22 lacs,
the YZF-R1M is priced at around Rs.29 lacs.

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TVS Motor Company
Having commenced operations in 1877, TVS Motor Company initially plied its trade
in sectors such as automobile, finance and insurance. Since 1955, however, TVS
began shifting its focus on automobile alone. The company gained worldwide
recognition during the 1980s when it collaborated with Suzuki Motors to release two
wheelers such as Suzuki Samurai, Suzuki Shogun and Suzuki Fiero. So far as the
scooter market is concerned, TVSs Scooty brand is among the best performers over
the past two decades. Scooty, as a brand, remains the most preferred scooter
among working women and college girls. Jupiter and Wego are two of the other
scooters manufactured by the company, and they are both doing substantially well in
the Indian market.

Apart from the aforementioned two wheeler manufacturers in the country, the other
brands that seem to be catching up include Mahindra, Harley Davidson, Suzuki,
Triumph Motorcycles, Piaggio and Royal Enfield.

Some of the models currently sold by top two-wheeler manufacturers in India:-

Hero Karizma ZMR


Hero Xtreme Sports
Hero Hunk
Hero Ignitor
Hero Super Splendor
Hero Passion Pro
Hero Maestro
Hero Pleasure
Bajaj Pulsar RS 200
Bajaj Pulsar 220
Bajaj Avenger 220 DTS-i
Bajaj New Discover 150
Bajaj Discover 125 M
Yamaha YZF R15 Ver. 2.0
Yamaha Fazer Ver. 2.0 (FI)
Yamaha Fazer

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Yamaha Alpha
Yamaha Ray Z
Honda Stunner
Honda Twister
Honda CB Trigger-STD
Honda CB Trigger-CBS
Honda Activa
Royal Enfield Thunderbird 500
Royal Enfield Thunderbird 350
Royal Enfield Classic Desert Storm
Royal Enfield Classic Battle Green
Royal Enfield Bullet 500
TVS Apache Series RTR
TVS Phoenix 125
TVS Jupiter
TVS Wego

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RESEARCH METHODOLOGY

Objectives of the study

TWO WHEELER BRANDS IN INDIA

The research study tends to follow some specific objectives

THE OBJECTIVES OF THIS STUDY ARE:-

To know the personal views of people regarding choices among various

branded Air Conditioners.


To study which branded Air Conditioner is mostly preferred by people as per

their choices.
Comparison between various branded Air Conditioners
Find out the factors influencing peoples choice at the time of purchasing Air

Conditioner.

Type of research-exploratory research

Instrument used-questionnaire

Sample size- 40

Type of sampling- convenience sampling

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LIMITATIONS

While surveying I encountered some problems like:-

A survey should involve a larger sample size otherwise the finding of

the survey cannot be generalised.


In some of the retail showrooms it was not allowed to get the

questionnaires filled.
Many of the respondents were not ready to get the questionnaires

filled.
Some people were in a hurry while filling the questionnaires due to

which there was a lack of active participation of people.


Another problem which I faced was that people were hesitating to give

information about their views freely.

ANALYSIS AND INTERPRETATION

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Q-1.Which two Wheeler do you prefer?

Options Numbers Percentage


Hero Karizma ZMR 8 20

Bajaj Pulsar RS 200 6 15

Yamaha YZF R15 Ver. 2.0 9 22.5

Honda Activa 9 22.5

Any other 8 20

40 100%
Total

Interpretation- It is concluded that most of the people prefer Yamaha YZF R15
Ver. 2.0 or Honda Activa. 20 percent of the people like Hero Karizma ZMR too.
However Bajaj Pulsar RS 200 are least preffered. 20 percent of people are the
ones who like any other Two Wheeler.

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Q-2.Where do you buy Two wheelers from?

Options People Percentage


Authorised Dealers 23 57.5
Second hand 5 12.5
Both 12 30
total 40 100

Interpretation- it is concluded that most of the people prefer buying Two

wheelers form Authorised Dealers. Some percentage of people buys Two

Wheelers form both Second Hand and Authorised Dealers. However very small

percentage of percent prefers buying second hand.

Q-3.How often do you buy Two Wheelers?

Options People Percentage

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Once in a 5 Years 21 52.5
Once in 3 Years 14 35
Once in a Year 2 5
No at all 3 7.5
Total 40 100

Interpretation-we can conclude that most of the people buy Two Wheelers once

in 5 Years, followed by people buying Two Wheelers Once in a 3 Years. 7.5

percent people buy Two Wheelers once in a year. And just 5 percent people dont

buy two wheelers at all.

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Q-4.If prices of your preferred brand increase will you purchase again?

Options People Preference


Yes 34 85
No 6 15
Total 40 100

Interpretation- it is concluded that almost 85 percent of population will buy Two

wheelers even after their prices increase. However 15 percent of people will stop

buying Two wheelers in this case.

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Q-5.Which factor influences you to go for a particular brand?

Options People Percentage


Quality 9 22.5
Durability 14 35
Price 6 15
Variety 11 27.5
Any other 0 0
Total 40 100

Interpretation- it is concluded that the factor of durability affects the customer

preference the most, followed by variety, quality, price.

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Q-6.Do you normally switch over the brand?

Options People Percentage


Yes 27 67.5
No 13 32.5
Total 40 100

Interpretation- It is concluded that 67.5 percent people normally switch over

different brands. However 32.5 percent people do not switch over the brands.

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Q-7.What kind of promotional tool do you prefer?

Options People Percentage


Lucky coupon 4 10
Free gift 10 25
Discount 20 50
Buy one get one free 6 15
Total 40 100

Interpretation- It is concluded that discount is the most preferred promotional

tool by the people, followed by free gifts , buy one get one free offer , and lucky

coupon.

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Q-8.Would you buy preferred brand at low cost with negligible quality?

Options People Percentage


Yes 11 27.5
No 27 67.5
Total 40 100

Interpretation- most of the people wont prefer buying preferred brand at low

quality standards. However just 27.5 percent of the people would buy their

preferred brand even at negligible quality standards.

Q-9.what is the least you would spend on a Two Wheelers (in rupees)?

Options People Percentage


More than 100000 13 12.5

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50000-70000 5 32.5
30000-40000 19 47.5
More than 3000 3 7.5
Total 40 100

Interpretation- It is concluded that most of the people spend more 50000-70000

on their two wheelers, followed by 32.5 percent people spending money between

30000-40000. Just 12.5 percent people spend less than 30000 rupees on their

two wheelers. However a marginal population of 7.5 percent people spend more

than 100000 rupees on their two wheelers.

Q-10.What is your Colour Preference?

Options People Percentage


Any 7 17.5
Black 12 30
Metallic 6 15
White 10 25
Yellow 5 12.5
Total 40 100

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Interpretation- It is concluded that most of the people contacted like Black

Colour. 25 percent of the people like White Colour, 12.5 Yellow, 15% Mettalic and

17.5% dont have any preference for colour for their Two Wheeler.

Q-11.Does advertisement has any effect on your purchase?

Options people Percentage


Yes 11 27.5
No 18 45
Sometimes 11 27.5
total 40 100

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Interpretation- it is concluded that most of the people have no effect of

advertisement on their choice. However 27.5 percent of people sometimes

change their choices according to the advertisement. 27.5 percent of people

agree that advertisement has an effect on their choices.

Q-12.Would you buy during a Festival Season ?

Options People Percentage


Yes 31 77.5
No 9 22.5
Total 40 100

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Interpretation- it is concluded that more than 77 percent people would buy Two

Wheelers during a Festival Seasons. However just 22.5 percent people wont buy

Two Wheelers during a Festival Seasons.

Q-13.Do you use two wheelers for School or tution going?

Options People Percentage


Yes 21 52.5
No 7 17.5
Sometimes 12 30
Total 40 100

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Interpretation - it is concluded that most of the people prefer Two wheelers for

office/school going. Just 17.5 percent people dont prefer two wheelers. However

12 percent sometimes prefer to go on two wheelers.

Q-14.Do you prefer brand marking?

Options People Percentage


Yes 35 87.5
No 5 12.5
Total 40 100

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Interpretation- it is concluded that more than 87 percent people prefer brand

marking. However 12.5 percent of people dont prefer brand marking.

Findings

-It is concluded that most of the people prefer Yamaha YZF R15 Ver. 2.0 or

Honda Activa. 20 percent of the people like Hero Karizma ZMR too.

However Bajaj Pulsar RS 200 are least preffered. 20 percent of people are

the ones who like any other Two Wheeler.

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it is concluded that most of the people prefer buying Two wheelers form

Authorised Dealers. Some percentage of people buys Two Wheelers form

both Second Hand and Authorised Dealers. However very small

percentage of percent prefers buying second hand.

we can conclude that most of the people buy Two Wheelers once in 5

Years, followed by people buying Two Wheelers Once in a 3 Years. 7.5

percent people buy Two Wheelers once in a year. And just 5 percent

people dont buy two wheelers at all.

t is concluded that almost 85 percent of population will buy Two wheelers

even after their prices increase. However 15 percent of people will stop

buying Two wheelers in this case.

it is concluded that the factor of durability affects the customer preference

the most, followed by variety, quality, price.

It is concluded that 67.5 percent people normally switch over different

brands. However 32.5 percent people do not switch over the brands.

It is concluded that discount is the most preferred promotional tool by the

people, followed by free gifts , buy one get one free offer , and lucky

coupon.

most of the people wont prefer buying preferred brand at low quality

standards. However just 27.5 percent of the people would buy their

preferred brand even at negligible quality standards.

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It is concluded that most of the people spend more 50000-70000 on their

two wheelers, followed by 32.5 percent people spending money between

30000-40000. Just 12.5 percent people spend less than 30000 rupees on

their two wheelers. However a marginal population of 7.5 percent people

spend more than 100000 rupees on their two wheelers.

It is concluded that most of the people contacted like Black Colour. 25

percent of the people like White Colour, 12.5 Yellow, 15% Mettalic and

17.5% dont have any preference for colour for their Two Wheeler.

it is concluded that most of the people have no effect of advertisement on

their choice. However 27.5 percent of people sometimes change their

choices according to the advertisement. 27.5 percent of people agree that

advertisement has an effect on their choices.

it is concluded that more than 77 percent people would buy Two Wheelers

during a Festival Seasons. However just 22.5 percent people wont buy

Two Wheelers during a Festival Seasons.

it is concluded that most of the people prefer Two wheelers for

office/school going. Just 17.5 percent people dont prefer two wheelers.

However 12 percent sometimes prefer to go on two wheelers.

it is concluded that more than 87 percent people prefer brand marking.

However 12.5 percent of people dont prefer brand marking.

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Suggestions

After accessing the whole project, what came out in picture is as follows:-

After going through the market research it is found that branded Two wheelers

are increasing day by day in India. That sounds good for international as well as

domestic market. The Two wheeler manufacturing companies should focus on

increasing the product quality to grasp more customers. New offers should be

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introduced to establish the company name. More focus should be paid on

advertisement of products.

Conclusion

It was a wonderful and learning experience for me to work on this project. This

project took me through the various phases of project development and helped

me in understanding how to make questionnaires deeply. The joy of working and

the thrill of tackling the various challenges and problems gave me a feel of

economists.

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It was through this project that I came to know how to design a questionnaire. I

enjoyed each and every bit of work I had done in this project.

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