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Chapter 1

Introduction

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1.1 Introduction
One thing that we have in common is that we all are consumers. In fact everybody in this world
is a consumer. Every day of our life we are buying and consuming an incredible variety of goods
and services. However, we all have different tastes, likes, dislikes, and adopt different behavior
patterns while making purchase decisions. The term consumer behavior refers to the behavior
that consumers display in searching for purchasing using evaluation and disposing in searching
for purchasing using evaluating and disposing of products and services that they exact will
satisfy how individuals make decisions to send their available resources (time, money and
effort) on consumption related items. It includes the study of ³ What they buy´, ´Why they buy´,
³When they buy it´, ³Where they buy it´, ³how often they buy it´ and ³how often they use.

Definitions:

Consumer Behavior (or Buyer Behavior) is broadly defined by various scholars & researchers
as:.
 Its the behavior displayed by the consumers during the acquisition, consumption and
disposition of products, services, time and ideas by decision making units.
 It is the body of knowledge which studies various aspects of purchase and consumption
of products and services by individuals with various social and psychological variables at
play.
 The behavior that the consumers display in searching for, purchasing, using, evaluating
and disposing of products and services that they expect will satisfy their needs.
 The process and activities people engage in when searching for, selecting, purchasing,
using, evaluating, and disposing of products and services so as to satisfy their needs and
desires.
 The activities directly involved in obtaining, consuming, and disposing of products and
services, including the decision processes that precede and follow these actions..

The American Marketing Association (AMA) defines consumer behavior as ³The dynamic
interaction of cognition, behavior & environmental events by which human beings conduct the
exchange aspect of their lives. Consumer behavior is helpful in understanding the purchase
Behavior and preferences of different consumers. As consumers, we differ in terms of sex age,
education, occupation, income, Family setup, religion, nationality and social status. Because of
this different background factors, have different needs and we have only buy those products and
services, which we think, will satisfy our needs.

1.2 About MRF


Madras Rubber Factory Limited, commonly known by the abbreviation MRF, is an Indian
multinational and the largest manufacturer of tyres in India and the fourteenth largest
manufacturer in the world It is headquartered in Chennai, India. The company manufactures
rubber products including tyres, treads, tubes and conveyor belts, paints and toys.[ MRF also
runs the MRF Pace Foundation, Chennai and MRF Challenge in motorsport.

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History of MRF
Madras Rubber Factory was started by K. M. Mammen Mappillai as a toy balloon manufacturing
unit in 1946 at Tiruvottiyur, Madras (now Chennai). In 1952, the company ventured into the
manufacture of tread rubber. Madras Rubber Factory limited was incorporated as a private
company in November 1960 and ventured into manufacture of tyres in partnership with
Mansfield Tire & Rubber company based in Ohio, United States.[1] The company went public
on 1 April 1961 and an office was established in Beirut, Lebanon to develop the export market in
1964 and its current logo of the muscleman was born In 1967, it became the first Indian company
to export tyres to USA.
In 1973, MRF started manufacturing Nylon tyres for the first time. The Company entered into
with a technical know-how collaboration with B.FGoodrich in 1978. The Mansfield Tire &
Rubber Co sold out its share in 1979 and the name of the company was changed to MRF Ltd in
the year. The company finalized a technical collaboration agreement with Marangoni TRS SPA,
Italy for the manufacture of pre-cured tread rubber for retreading industry. MRF tyres supplied
tyres to Maruti 800, India's first modern small car.[1] In 1989, the company collaborated with
Hasbro International United States, the world's largest toy maker and launched Funskool India.
Also, they entered into a pact with Vapocure of Australia to manufacture polyurethane paint
formulations and with Italian tyre manufacturer Pirelli for conveyor and elevator belt
manufacture. During the year 2004-05, the product range of the company expanded with Go-kart
& rally tyres and tyres for two/three wheelers.

1.3 Statement of the Problem


The problems to be addressed in the study is to identify the factors influencing the customers
while purchasing tyres and to identify which factor influence the customer while purchasing
The tyre.

1.4 Objectives Of The Study:


1. To study the factors influencing buying behavior.

2. To find out the critical factors influencing buying behavior of tyre.

3. To know the customer perception towards MRF tyres.

4. To understand the relationship between social factors and purchase of tyre.

1.5 Scope Of The Study:

Consumer behavior plays a major role for the growth of the company in the modern market
scenario. The basic idea of this study is to find out the factors influencing the customers while
purchasing tyres . The needs have to be recognized and necessary steps have to be taken to make
the changes. India is growing rapidly and changes are dynamic. People are changing,the
preference and the demand is changing. The market also has to change accordingly.The purpose
of consumer behavior is not only for retaining the customers but also attracting new customers

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and increasing the sales also creating and maintenance of brand awareness. In this competitive
market the level of consumer satisfaction decides the success of any product and any company.
The right consumers have to be targeted and the right strategy should be implemented at the right
time.

1.6 Methodology of the study

The research is aimed at to find out which factor is influencing the customer to purchase tyres.
The primary data is collected through questionnaire survey method. The secondary data is
collected from various articles and internet. Quantitative techniques like Percentage analysis, are
used for data analysis purpose with the help of MS Excel tool.

1.7 Limitations of the study


The researcher only get limited time to complete the project. I is difficult to find out MRF users
with this limited time

1.8 Chapterization

Chapter 1: Introduction
Chapter 2: Review of Literature
Chapter 3: Theoretical Review
Chapter 4: Data Analysis
Chapter 5: Findings and Suggestions
Chapter 6: Conclusion

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Chapter 2
Review of Literature

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2.1 Literature Review
According to Krugman (1965) consumer behavior is described as the actions, thought process
and perceived outcome, in collaboration with environmental factors, during the course of
decision making, which could result in a purchase. Some of the factors that are significant in
consumer behaviour are 23 external environment, demographics and personal characteristics,
which are influenced by the consumer‘s beliefs, values and attitudes.

Venketeshwarlu, Kumar and Rajnath (1966) conducted an study to identify as how informal
social group influence the brand preference on their members. The design of the experiment
consisted of socio-metrically selecting ten groups of women who were close friends, neighbours
or relatives, who might go shopping together. It can also be conducted that the informal groups
had a definite influence on their members towards conformity behaviour with respect to brand
preference.

Sabeson (1992) in his study stated that, high quality, price and taste of the products were the
major criteria based on which the consumers selected a brand of rocessed fruits and vegetable
productsAshalatha (1998) studied the factors influencing the

performance of BAMUL milk for a sample of 100 respondents The study revealed that the
factors such as door delivery, clean packing, quality, hygienic preparation, time saving and
reliability, good value for money, freshness and desired flavour were important in the order in
influencing the decision of buyers for BAMUL milk.

The study undertaken by Sheeja (1998) in Coimbatore district considered the quality aspects like
aroma, taste, freshness and purity as the major factors deciding the preference for a particular
brand of processed spices.

Hans B. Thorelli (2001) has specified that needs are identified as important in consumers on their
purchase intentions. The influence of physiological needs as factors in consumer perception has
been clearly demonstrated in a number of studies. Secondly psychological needs also influence
perception in similar manner. For instance the consumer‘s mental state of affinity may play a
role in purchase decisions. Thirdly, the sociological needs such as a status, dominance and love
affiliation also contribute to purchase choices. This concept has been widely accepted by
behavioural scientists that,when needs drive a consumer to purchase a product, the follow up is
naturally to go in for collecting information on the purchase.

Dabholkar and Bagozzi et al, (2002) O’Cass and Fenech, (2002); Childers et al., (2001); Davis,
(1993)25. In their study reveal that if more attractive online stores were developed, this would
raise the issue of examining what factors affect consumers to shop online. Therefore, a
framework is needed to structure the complex system of effects of these different factors, and

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develop an in-depth understanding of consumers’ perceptions toward Internet shopping and their
intentions to shop online.

Ahmed, Johnson, Yang, Kheng, Fatt, Teng and Boon (2002) revealed that brand, price and
country of origin (quality, taste and image of the country) are the aspects of product evaluation.
Brand and price are more important than country of origin in evaluating low-involved products
for consumer

Techinder Pal Singh, M.A. (2004) have found that the roles played by family members differ
with regard to the product being purchased, the stage in the decision- making process, and
characteristics of families and spouses. These roles may change over time due to changes in the
environment, such as economic development, which consequently may lead to adjustments in the
role structure of the decision-making process.

Deepak (2004) in his article has revealed that one key to understand consumer behavior is
to assess the consumers underlying culture, sales culture based on age, religion, geography and
language, ethnic edge, beliefs, attitudes, values, customs, symbols and rituals. The final outcome
of the study states that MNCs manage to entice a few Indians away from their culture, but they
can never make all Indians completely strangers to their own culture. Society as group is a
stronger entity than any brand or product

According to chidamparm and Ganeshan (2004) factors which influence the rural consumers are
packaging, advertisements, Brand name, Quantity, Quality, price , sales promotions,
advertisements, , location of the store, personality and past experience influence the buying
behaviour of the consumers

Subrahamanya Sharma and Ramesh Kasturi (2004)in their study have examined the
relationship between quality attributions and rational buying behaviour to examine
consumer‘s perception regarding the information support 29 available to judge quality and
to finally examine discernable non-defensive mechanism used for quality evaluation. The
study revealed that the difference between perceived quality and actual possessed quality
gives rise to dissonance. Persisted dissonance leads to attribution of reasons to overcome
the ill effects of dissonance. This information provided with respect to clothes and
cosmetics was inadequate than fertilizers, pesticides and pharmaceuticals. Vendors either
maintain silence or suppress the features, which they feel that were detrimental to sale.
Inadequate information leads to inadequate cognitive support and the corresponding
dissonance. There was no uniformity of opinions of consumers concerning the usage of
information while judging the quality of the product. Consumers have ranked durability as
an important factor for judging quality of clothes, cosmetics and pharmaceutical products
and brand name with respect to fertilizers and pesticides.

According to (Hansen et al) 2004 the reason of social factors such as the suggestions from
families and friends impact the process of customer online shopping is that clients become more

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cautious when they are facing a new consumption channel, and the experiences from families
and friends have a reference value for their purchasing decision

According to Fredrick W (2005) people will consume more when the price of the product is
lower and they have beliefs that high quality goods will only get at high price.

Kolter (2005) have explained that in the pre-purchase evaluation that consumers always
compare between different products and brands to make a purchasing decision. In this stage,
consumers pay particular attention to the attributes which are most relevant to their needs.
Attributes like quantity, size, quality and price are commonly used to judge a brand by
consumers. Any changes in these attributes can affect consumers‘ decisions on brand or
product choices.

Vincent (2006) elicited that quality was an important factor that draws consumer towards
branded products. Branded products were accepted as good quality products. People do not mind
paying extra for branded products, as they get value for money. Media is a key constituent in
promoting and influencing brand. A child's insistence affects family's buying behaviour.
Children are highly aware and conscious of branded items. Although unbranded products
sometimes give same satisfaction as branded products, customers would still prefer to purchase a
branded product.

Regarding the consumers interest in pre-purchase information, Hans B. Thorelli, (2007)


described that the consumers who have higher education might be more information-minded than
those with less education. Actual or potential buyers or owners of a product were more likely to
be better informed than others

Gerald Linda (2007) has found that, once consumers purchase and use a product they
may become either satisfied or dissatisfied. Research has uncovered several
determinants which appear to influence satisfaction, including demographic variables,
personality variables, expectations and other factors. For example older consumers tend to
have lower expectations and to be more satisfied. Higher education tends to be associated
with lower satisfaction. Men tend to be more satisfied than women. The more confidence
one has in purchase decision making and the more competence in a given product area,
the greater the satisfaction seems to be. There is also a greater satisfaction when
relevant other consumers are perceived to be more satisfied.

Gerald Linda (2007) has found that, once consumers purchase and use a product they may
become either satisfied or dissatisfied. Research has uncovered several determinants which
appear to influence satisfaction, including demographic variables, personality variables,
expectations and other factors. For example older consumers tend to have lower
expectations and to be more satisfied. Higher education tends to be associated with lower
satisfaction. Men tend to be more satisfied than women. The more confidence one has in
purchase decision making and the more competence in a given product area, the greater

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the satisfaction seems to be. There is also a greater satisfaction when relevant other
consumers are perceived to be more satisfied.

Rajan Varghese (2008) analyzed whether consumers are influenced by income and other
household characteristics while making purchase choices and examined the current buying
behaviour of consumer in durable and FMCG’s. He found that the higher income segment was
willing to pay higher price for more product attributes. But in the mid segment, brand name takes
a back seat while choosing a brand. The price value equation is arrived by placing product
attribute delivering important benefits on top of the priority but followed by price. He concluded
that benefits must be suitably communicated to the target audience by properly combining the
utility and emotional appeal of the product.

George Katona, and Eva Muller (2008) have conducted study on the earlier shopping behaviour
which provided three broad classes of variables, as potential determinants of information source
usage patterns of durable goods buyers. They are (a) personal or background characteristics of
consumers consisting of demographic descriptors such as age, education, and occupation, as well
as satisfaction with the previous buying and ownership experience, (b) situational factors at the
time of purchase, including such variables as economic constraints, condition of previously
purchased product (if any) and (c) characteristics of consumer‘s purchase decision process
consisting of internal factors such as size of the evoked set of brands, evaluative criteria, specific
self confidence etc.

Vithala R. Rao, (2008) In a research study has examined therelationship between the
amount of explicit information and brand perceptions and the effect on perceptions of
brand image (conjured up by the brand name alone) though other sources of
information use were available. The main objective of this research was to study the
degree of relationship between market place related beliefs and pre-purchase external
search for information exhibited by consumers prior to purchase. In some cases little or
no external search occurred.

Agarwal (2010) ¬in this study has focused on examining the relationships between consumer
characteristics, including gender, nationality and level of materialism with brand perception. He
has concluded that Consumers perceive brands as providing both emotional benefits (display of
status, wealth and prestige) and utilitarian benefits (quality and low price). Their brand
perception may influence their intention to purchase the brand.

Terrence O‘Brien (2010) has examined our factors i.e demographic personality, source and
message and product class and their effects on information handling. The products
chosen for the study were cars and breakfast. It was found that the factors had varying
effects on information handling. Search initiation had no effect on these variables, nor did
education, sex and education affected search initiation. Higher educated subjects were
more likely to go in search of information probably because they were more familiar

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with sources and benefits of such a search in difference being greater for the
presumably higher interest product class of automobiles. The psychological variable,
a personality measure, has no effects on search or decision making but was found to
influence the way information was asked.

Ms. Pinto Raina, and Dr. Rodriguese Melo Filipe (2011) in their article Consumer Behaviour
Towards The Chocolate Products Of Cadbury India Ltd. - A Study‖have explained that
consumers differ in many ways i.e in likes, dislikes, attitudes, income levels etc. consumers
thus engage in buying activity according to their needs, preferences and buying power.
Consumer behaviour focuses on how individuals make decisions to spend their valuable
resources (time, money, efforts) on consumption related items. This includes that they buy,
why they buy, where they buy from, how often they buy it, how often they use it, how
they evaluate it after the purchase and the impact of such evaluation on future purchases.
Consumer Behaviour can be defined as the ―decision-making process and physical activity
involved in acquiring, evaluating, using and disposing of goods and services‖. In order to
succeed in any business in today's competitive market, marketers have to know everything
they can about consumers. They must know what the buyers want, what the buyers
think etc. Consumer behavior is integral to marketing, thus marketing involves sizing
up Consumer behavior and responding to it appropriately through strategy. Consumer
behavior is complex, dynamic, multi-dimensional process and all marketing decisions
are based on assumptions about Consumer behavior. To understand the likes and dislikes
of consumers, extensive consumer research studies are conducted. In this context
Consumer behavior towards the chocolate products of Cadbury India Limited is undertaken
as a study.

Bhagat (2012) concluded that today, companies focus on consumer to reach success in the
global competitive environment. In new marketing approaches, focus on consumer activities take
place of focused on product/service activities. The companies analyse consumer qualifications
and form their marketing strategies based on them. The consumers are affected from some
individual and environmental factors, such as motivation, personality, perception, learning,
values, beliefs, attitudes, life style, personal influence, reference group, family influence, social
class and culture in their buying decision process. The aim 59 of this study is to focus on
affecting factors on the consumer buying behaviour in teenager consumer market, because
teenager consumers are one of the important market segments of companies.

Manoj Kumar Sharma(2014)has evaluated the theory of ―Cognitive Dissonance‖ is of great


importance in consumer behaviour and marketers havelots of interest in analyzing the
post purchase behaviour of consumers

experienced by them. This paper has explored the factors that create Cognitive Dissonance
in consumer buying decision making, particularly among theconsumer goods purchaser in
the city areas. Some of these are due to family status, religious value, customs, belief etc.

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the study also reveals the problems and identified probable solutions to overcome these
problems. This article explores the implications of Cognitive Dissonance on varied aspects
of consumer buying behaviour, and the factors leading to dissonance post purchase

2.2 Inferences from the reviews.


The findings from the literature reviews depicted that personal factors, demographic factors
social factors, psychological factors, cultural factors are influencing consumers in there buying
behavior.

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CHAPTER 3
THEORETICAL REVIEW

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3.1 Theories on Consumer Behaviour

Consumer behaviour can be examined as it is a decision making process of an individual


when consumer is engaged in evaluating, acquiring, using or disposing goods/services.
The decision making basically dependent on two important aspects i.e the consumer‘s
expected amount of satisfaction and the resources that are available to him for spending. In
other words, Consumer Behaviour can be defined as the sum total of how individuals and
groups recognize and determine their needs and ``how can and how often they purchase
and experience goods and services to meet those needs. It includes the ``what-where-when
and how of the purchase and experience process. The study of consumer behaviour
investigates and develops methods of quantity, forecast and influence the behaviour of
consumers.

3.1.2 Determinants of Consumer Behaviour

1. Economic Determinants

2. Sociological Determinants

3. Psychological Determinants.

3.1.2.1 Economic Determinant

i) Income: Income reflects purchasing power. Higher the income, higher is

the purchasing power of a person and vice versa.

ii) Income expectations of consumers

iii) Availability of consumer credit. Higher the availability of consumer

credits higher the tendency among consumer to buy durables such as T.V.

Car, House etc.

iv) Possession of liquid assets such as cash.

v) Economic Theories such as (i) Law of Diminishing Marginal Utility and

(ii) Law of Equilibrium – Marginal Utility.

2.2.4 Sociological Determinants

i) Family: In every family there is a role specialization. They are (i)

Husband dominated decisions (ii) Wife dominated decisions and (iii)

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joint decisions.

ii) Reference groups: These are the groups used by an individual as a point

of reference for his own judgment, beliefs and behaviour.

iii) Opinion Leaders: A person makes reference to an individual and not to a group in
order to formulate his or her behaviour pattern (ex: a father in the family or in the
Church, eldest brother in the family, a teacher in the school or college etc.)

3.1.2.2 Psychological Determinants

i) Motivation Theory: Human Behaviour is motivated, and an unsatisfied need is a


motivator.

ii) Learning Theory: There develops a bond between behaviour producing

stimulus and a behaviour response. As advertisement is a stimulus purchase is the


response.

iii) Psycho-analytical Theory: A person is unable to satisfy all his needs. As a result such
unsatisfied needs create tension within a person. Such tension is always said to exist in
the sub-conscious and continues to influence consumer behaviour.

iv) Perception: Different individuals perceive different products, brands, stores and ads
differently.

v) Personality traits : An understanding of personality traits of the consumer helps


marketers to identify the kind of behaviour their consumers might have which helps a
long way in formulating suitable marketing strategies.

vi) Attitudes : Attitudes towards products vary among different individuals

vii) Self-concept: Individual behaviour is influenced by his own images as

viewed by himself or the manner in which he wants others to see him.How consumers make
decisions to spend their available resources such as money, time and effort on
consumption is the subject of consumer behaviour.Consumer behaviour has two aspects:
the final purchase activity which is visible to us and the decision process which may
involve the interplay of number of complex variables which is not visible to us. In fact,
purchase behaviour is the end result of a long process of consumer decision making. The
study involves what the consumers buy, why they buy it, how they buy it, where they buy
it, how frequently they buy it and how they dispose of the product after use.

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3.2 Consumer vs. Customer

The term consumer is used for both personal consumer and organizational
consumers and represent two different kinds of consuming entities. The personal
consumer buys goods and services for her or his personal use (such as cosmetics), or for
household consumption (such as rice, sugar, furniture), or just for one member of the
family (such as a school bag for the son), or a birthday gift for a friend (such as a
pen set). In all these cases, the goods are bought for final use, referred as ``end users, or
``ultimate consumers‗.The other category of consumer is the organizations (such as local
or state government, schools, hospitals etc.) buy products, equipment and services
required for running these organizations. Manufacturing firms buy raw materials to
produce and sell their own goods. They buy advertising services to communicate with
their consumers. Government institutions buy office products. needed for everyday
operations. Anyone who regularly makes purchases from a store or a shop or a company
is termed as ``consumer‗‗ of that shop or store or the company. Thus a consumer is
typically defined in terms of specific shop or store or company.

3.3 Factors Influencing Consumer Behaviour

Consumer behaviour is influenced by various factors. They may be grouped into three
broad categories, namely, economic factors, sociological factors and psychological factors.
They are discussed here briefly.

3.3.1 Economic factors

Consumers are influenced by various economic factors. Major economic factors are
discussed here.

A. Personal income: It is most the important factor as it provides the consumer the
purchasing power. However, he has to set aside a part of his income for meeting pre-
emptive demand like taxes, debt repayment, interest payment etc. The balance is his
disposable income. While decline of the disposable income decreases, consumer spending
increase in the same and enhances consumer spending. Change in disposable income
brings in change in demand for different categories of goods. The consumer first tries to
meet his minimum subsistence need of his family. Surplus of his disposable income over
his expenses for essential needs represents his discretionary income. Rise in discretionary
income usually leads a consumer to spend more on the items that enhances his living
standards. If discretionary income increases on long–term basis, the consumer is induced
to change his life-style.

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B. Family income: In joint family consumer behaviour is influenced by total income of
all the family members. Increase in one member‗s income may be neutralized by the
decline in other member‗s income. Hence, consumer behaviour is greatly affected by the
family requirements as a whole.

C. Expectation about future income: Volume of current spending of the consumer is greatly
determined by his optimism or pessimism about his future income. If he apprehends his
future to be black, he will spend only to meet his basic needs. On the other hand he
will spend more on non-essential goods, if he expects that his income will increase in near
future.

C.Liquid asset position: If a consumer holds more money or near-money form of assets, i.e.
cash in hand, bank deposits, share certificates, bonds etc., he becomes more carefree in
spending his income. He usually holds these assets for acquiring durables and meeting
future contingencies.

D. Availability of credit facilities: Easy availability of credit usually in the shape of


deferred payment; installment purchasing, hire-purchase arrangements induce the consumers
to purchase consumer durables. The consumer would have postponed the purchase, if
such facilities were not available. Such facilities make him spend his current income
more openhandedly.

Standard of living: Standard of living to which the consumer is a ccustomed has a great
impact on his spending habit. His income may suddenly fall, but his spending will not
decrease proportionately as he will find it very difficult to come down from his
established living standard. He will try to meet his expenses by borrowing. However, if
his income increases on a permanent basis he will be allured to enhance his standard of
living.

3.3.1 Sociological Factors Influencing Consumer Behaviour

Individuals live in-groups. Social scientists have attempted to explain behaviour of a


group of individuals and the way groups affect individual behaviour. These scholars
have also enquired how individual behaviors in marketing decisions are affected by
groups. Groups may take the form of family,reference group, social class and caste.
Apart those cultures of the group to which the consumer belongs have a dominant
influence on the consumer decision making process. Here these issues are discussed briefly.

A. Family: It is the primary group. It connects the individual with a wider society.
Through it the individual learns the role appropriate to his adult life. Most of the
consumer‗s decisions are taken within the family environment and the hopes, attitudes
and values of other family members affect these decisions. Since, family members
consume the product, they have vital roles in decision making process. They have to

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play four roles: initiator, motivator, decider and user.An individual may play more than
one role. While the initiator senses the need for the product, the motivator provides
information for taking purchase decision. The decider has the final say about the
decision, whereas the user is directly involved in using the product. Developed countries
possess the nuclear families in great number, i.e. families consisting of father, mother
and children. The house-wife is the decider for purchasing goods like food, clothing,
cosmetics etc., while father has the say in spending on education, insurance and housing,
finally, children have say in clothes, recreational facilities like TV, stereo set and so on.
Proportion of family budget to be spent on various items depends on the stage of the
family life–cycle. For instance, spending on food, clothing, child-care goes
increasing during the period between the births of the first child to the marriage of
that child.

B. Reference groups: The consumer is not only a member of his family, but also a
member of some groups outside his family. These groups are called reference groups.
Such groups may be social and professional. They influence the consumer‗s opinions,
beliefs and aspirations. The consumer accepts information received from their groups
on products, price, performance style etc., group norms draw the attention of its
members towards a new product or a new brand.

C. Opinion leaders: In every intimate reference group, there is an informal group


leader. The beliefs, attitudes, actions and behaviors of leaders are considered an ideal to
be followed by the followers. The follower respects the leader and seeks his advice. He is
considered the innovator in the group who first tries new ideas and products. Then his
followers try to follow him. These opinion leaders play key role in influencing the
purchasing behaviour of their followers.

D. Social class and caste: Social class is a larger group than an intimate group. Income,
power, ownership, education, consumption pattern, occupation, and place of residence of
the individual members form such group. In India people are divided into three classes,
rich people, people of middle income and the poor. Caste on the other hand, is a
group and the membership of it is determined by birth. Few centuries ago caste system
originated from the specialization of occupation. In India, there are four brand categories
of castes, Brahmins, Kshatriyas, Vaishyas and Sudras.Each social class and caste develops
its own tastes, styles and behaviour pattern. It is found that a member of a class select a
particular brand of product,they buy at a particular store which supports their group
norms. It does not mean that all are same stores and follow the same pattern. For
instance, people of one caste may not take their meal from a hotel, if the meal is cooked
by people of other caste or community. Thus it is evident that buying behaviour is
highly influenced by such social groups.

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D. Culture: It refers to the behavioural pattern, which passes on socially from one
generation to the next. It includes beliefs, normal values, norms, customs and normative
behaviour. Cultures are usually area specific. However, two nations can enjoy a
common cultural heritage. Culture influences consumers. Knowledge of consumer‗s
culture helps the marketer in understanding the extent to which the consumer is more
than just a set of biological instinct.

Sub-culture: It is a group within a culture. It means that there are subcultures like
students, professionals, football players, prison inmates etc.

Individuals may be members of more than one sub-culture at a time. Such groups
have unique consumption pattern. Marketers should understand the cultural and
sub-cultural values that are relevant to the product. They should never contradict these
cultural values while promoting and distributing a product and fixing prices.

3.3.3. Psychological Factors Determine Consumer Behaviour

According to the concepts of modern psychologists, some major factors internal to the
consumer determine his consumption behvaiour. These factors are motivation, perception,
learning, attitude and personality, and discussed here briefly.

A. Motivation: It is the governing force of behaviour. It links the stimulus with


response. It refers to the urge, drives and desires which initiates a chain of events. This
chain of events is called behaviour. With these driving forces, a person tries to reduce his
state of tension to protect and satisfy his selfconcept. It is the complex network of
physiological and psychological mechanism. Motives may range from mere biological
needs like hunger to the most advanced desire of self- actualization. The consumer is
driven by some motives. He wants to satisfy his needs and that is why he initiates some
actions to achieve his ends. Authorities like Maslow and McClelland have contributed
heavily on motivation theory stock of purchases of the product. From investigation it
is revealed that 99% of the stimuli that individuals perceive come from sight and the rest
from hearing. That is why marketers prefer visual advertisement to audio-based
advertisement. Knowledge of consumer perceptions helps us understanding how their
behaviours are influenced by their perceptions.

B. Learning: In Psychology learning means any change in behaviour arising out of


experience. Process of learning is made up of four stages: drive,cue, response and
reinforcement. Drive refers to an inner excited state of mind that justifies actions. Hunger
can be a drive. Cue is a stimulus received from environment. Advertisement refers to the
consumer‗s reaction to cues. For instance, due to an amid temperature he may buy a
soft drink to overcome thirsty. Reinforcement describes the reward one gets from one‗s

18
response if the consumer is satisfied with that soft drink, and if he prefers the
brand, then reinforcement happens. Thus, his habit of purchasing will be formed. If he
is dissatisfied, there will be no reinforcement, consequently his learning habit form rear of
purchasing will perish.Most of the consumer behaviour arises out of consumer‗s learning

process. His prior experience and learning guide him for decision making. That is why
most of the people are brand loyal. Brand switching is possible only when new
brands are more satisfying than the existing ones.

C. Attitudes: Knowledge about attitude of a consumer helps in understanding and


predicting a consumers behaviour. It refers to an inclination to behave in a particular way
then a particular stimulus is provided. Inclination about a product, people, and places
may be favourable or adverse. Attitude develops gradually as a result of experience.

D. Perception: It is the process by which the mind receives, organizes and interprets
stimuli. Perception leads to thought and thought leads to action. Perceptions have meaning
for an individual. An individual has no confusion about his perception. However,
perception depends on personal factors like ability to see or hear the message, the need
moods, values all that modify message one receives. Behaviour is highly influenced by
one‗s perception. Consumer decision is guided by the perception of the concerned
individual. One has one‗s perception about product, brand price, stores existing in the
market. The attitude has three major components: Cognitive, Affective and Conative.
Cognitive component speaks of the consumer‗s beliefs about an object, such beliefs relate
to whether the object is good or bad, necessary or unnecessary. It is based on consumers
past experience.Affective component of attitude relates to the consumer‗s feeling about the
object whether it is pleasant or unpleasant. It speaks of his emotion. Cognitive component is
an individual‘s response to the object. It is based on the first two components. It is easy
to confirm the attitude of a consumer but it is very difficult to bring change in attitude.
Attitude change requires shift from original attitude based on a disposition to act in the
opposite direction to create an opposite disposition. The most powerful instrument of
attitude change is advertisement.

E. Personality: It is something that makes a person distinct from everyone else. It consists
of the mannerisms, habits and actions. It is the function of inner drives, learned motives
and experiences. In Psychology it is considered that personality develops out of the
interplay of three components,, ‗The ego‘and ‗Super ego‘. ‗id‘ controls the instinct of
an individual and the super ego‘ controls the ‗Id‘ by suppressing anti-social behaviour.
The ‗super ego‘ drives a person in the high-minded pursuits of civilization. The ego‘
component reconciles the conflicting demands of ‗Id‘ and super ego‘. Personality is
expressed in terms of one‗s traits like suggestiveness, honesty, independence, and
sociability. Again, one may be introvert or extrovert in nature. Consumers behaviour is

19
determined by his personality, i.e., by his thinking about honesty,anxiety and
aggressiveness. Marketers attempt to exploit these traits through advertisement.

3.4 Purchase Decision

The final is a deliberation, which usually, in the rural context, takes longer time as
compared to the time spent in information search of alternatives. Due to resource
constraint or lack of exposure or personal orientation, rural consumers spend considerably
lesser time on the IInd and IIIrd stages of the buyer behaviour process.

The factors, which influence the final choice, are:

A Attitude of others

B Unanticipated situational factors

C Perceived risk

The issue of attitude of others in addition to that of friends and relatives, who may be
existing owners of the products, refered in this case as the retailer or the dealer. In some
cases the final choice is made on the advice given at the channel level. Alternatively, in
some cases it is the complementary product that makes final purchase decision far easier.
For instance, a person in the village buying the Eveready Jeevan Saathi brass torch will
rely on the batteries of the same company.

3.5 Post Purchase Behaviour

Within the framework of the buyer behaviour process, the post purchase behaviour forms
a critical part, as it lays foundation for repeated purchases and development of loyalties.
In the context of the rural markets loyalties have been found to be higher and extended.
Penetrative pricing of a homogenous product quality similar to that of available product
quality in the urban markets and making the product available will be the key to
service in the rural markets. Just like the urban middle class, villagers demand value for
money. In conclusion the critical factors for the rural consumer in the buying decision
process would be:

(i) Need for the product.

(ii) Purchasing capacity.

(iii) Attitude towards the product.

(iv) Cost benefits analysis done by the consumer before buying the product.

(v) Social values governing the society

20
Chapter 4
Data analysis

21
The topic is to find out the factors influencing consumer behavior and customer perception
towards MRF.Here the questionnaire is been interpreted using percentage analysis
and thehypothesis is tested using various statistical tools. The questionnaire consists of
16 questions. The graphs are plotted on the basis of the number and percentage of
respondents.

4.1 RESPONDENTS CLASSIFIED BASED ON GENDER

Table 4.1

Sl no Gender No of Percentage
respondents
1 Male 31 62
2 Female 19 38
Total 50 100
Chart No 4.1

INTERPRETATION

From the above analysis it is clear that 62% of respondents are male, and 38% of the respondents are
female. While comparing the data, we can determine that the number of male respondent is higher than
that the female respondents

22
4.2 RESPONDENTS CLASSIFIED BASED ON MARITAL STATUS

Table 4.2

Sl no MARITAL STATUS No of respondents Percentage


1 MARRIED 41 82
2 SINGLE 9 18
Total 50 100

Chart 4.2

INTERPRETATION

From the above analysis it is clear that 82% of respondents are single, and 8% of the respondents are
married. While comparing the data, we can determine that the number of single respondents are higher
than that the married respondents.

4.3 RESPONDENTS CLASSIFIED BASED ON EDUCATION

SL NO EDUCATIONAL
QUALIFICATION
No of Percentage
respondents
1 HSC 3 6.4
2 GRADUATE 18 38.3
3 PG 25 53.2
4 UG 1 2.1
TOTAL 47 100
CHART 4.3

23
INTERPRETATION

From the above analysis it is clear that 53% are doing PG and 38.3 are graduates 6.4 are HSC’s and 2.1
percent is under graduate .from the 50 respondents 47 respondents are willing to tell their education
qualification.

4.4 RESPONDENTS CLASSIFIED BASED ON INCOME

SL NO INCOME
No of Percentage
respondents
1 Below 20000 29 58
2 20000 -29000 5 10
3 30000-39000 5 10
4 Above 40000 11 22
TOTAL 50 100
Chart 4.4

INTERPRETATION

From the above analysis it is clear that majority of the respondents are earning below 20000 and 11
among 50 respondents are earning above 40000.

24
4.5RESPONDENTS CLASSIFIED BASED ON THEIR VEHICLE

SL NO VEHICLE
No of Percentage
respondents
1 2 WHEELER 25 51
2 CAR 49 49
3 JEEP 0 0
4 SUV 0 0
TOTAL 49 100
Chart 4.5

INTERPRETATION

From the above analysis it is clear that majority(25) of the respondents are using car and 24 (49%) are
using bikes and one reluctant to respond.

4.6 RESPONDENTS CLASSIFIED BASED ON THEIR PREVIOUS EXPERIENCE

Table 4.6

Sl no EXPERINCE No of Percentage
respondents
1 YES 38 76
2 NO 12 24
Total 50 100

Chart 4.6

25
INTERPRETATION

From the above analysis it is clear that majority(38) of the respondents were used MRF and 12 (24%) are
not using MRF

4.7 RESPONDENTS CLASSIFIED BASED ON THEIR INFLUENCE

Table 4.7.1

SL NO FRIENDS
No of Percentage
respondents
1 NOT AT ALL 6 12
INFLUENTIAL
2 SLIGHTLY 12 24
INFLUENTIAL
3 SOMEWHAT 14 28
INFLUENTIAL
4 VERY INFLUENTIAL 11 22
5 EXTREMILY 7 14
INFLUENTIAL
TOTAL 50 100

INTERPRETATION

From the above analysis it is clear that friends have somewhat influential in purchasing tyre and 24 % are
responding that they have slightly influential from their friends

Table 4.7.2

26
SL NO Colleagues
No of Percentage
respondents
1 NOT AT ALL 9 18
INFLUENTIAL
2 SLIGHTLY 15 30
INFLUENTIAL
3 SOMEWHAT 20 40
INFLUENTIAL
4 VERY INFLUENTIAL 3 6
5 EXTREMILY 3 6
INFLUENTIAL
TOTAL 50 100

INTERPRETATION

From the above analysis it is clear that colleagues have somewhat influential in purchasing tyre and 30%
are responding that they have slightly influential from their colleagues in buying tyres

Table4.7.3

SL NO Parents
No of Percentage
respondents
1 NOT AT ALL 11 22
INFLUENTIAL
2 SLIGHTLY 15 30
INFLUENTIAL
3 SOMEWHAT 11 22
INFLUENTIAL
4 VERY INFLUENTIAL 8 16
5 EXTREMILY 5 10
INFLUENTIAL
TOTAL 50 100

INTERPRETATION

From the above analysis it is clear that parents have slightly influential in purchasing tyre and 22% are
responding that they have not at all influential and somewhat influential from their parents in buying
tyres

Table 4.7.4

27
SL NO Siblings
No of Percentage
respondents
1 NOT AT ALL 13 26
INFLUENTIAL
2 SLIGHTLY 11 22
INFLUENTIAL
3 SOMEWHAT 13 26
INFLUENTIAL
4 VERY INFLUENTIAL 11 22
5 EXTREMILY 2 4
INFLUENTIAL
TOTAL 50 100

INTERPRETATION

From the above analysis respondents responded that siblings have not at all influential and somewhat
influential in purchasing tyre and 11% are responding that slightly influential and very influential from
their siblings in buying tyres.

Chart 4.7

4.8 RESPONDENTS RANKED BRANDS BASED ON THEIR PREFERENCE

Table 4.8.1

28
SL NO Rank 1
No of Percentage
respondents
1 Ceat 12 24
2 MRF 24 48
3 Appllo 6 12
4 Yokohama 1 2
5 Bridgestone 7 14
TOTAL 50 100

INTERPRETATION

From the above table it is clear that majority of the respondents prefer mrf as rank 1 and 24% are
preferring Ceat .

Table 4.8.2
SL NO Rank 2
No of Percentage
respondents
1 Ceat 9 18
2 MRF 13 26
3 Appllo 12 24
4 Yokohama 5 10
5 Bridgestone 11 22
TOTAL 50 100

INTERPRETATION

From the above table it is clear that majority of the respondents prefer mrf as rank 2 and 24 % prefer
Apollo.

Table 4.8.3
SL NO Rank 3
No of Percentage
respondents
1 Ceat 13 26

29
2 MRF 6 12
3 Appllo 20 40
4 Yokohama 6 12
5 Bridgestone 5 10
TOTAL 50 100

INTERPRETATION

From the above table it is clear that majority of the respondents prefer Apollo as rank 3 and 26 % prefer
Ceat

Table 4.8.4
SL NO Rank 4
No of Percentage
respondents
1 Ceat 9 18
2 MRF 7 14
3 Appllo 10 20
4 Yokohama 20 40
5 Bridgestone 4 8
TOTAL 50 100

INTERPRETATION

From the above table it is clear that majority of the respondents prefer Yokohama as rank 4 and 20 %
prefer Apollo

Table 4.8.5
SL NO Rank 5
No of Percentage
respondents
1 Ceat 13 26
2 MRF 3 6
3 Appllo 4 8
4 Yokohama 15 30
5 Bridgestone 15 30
TOTAL 50 100

INTERPRETATION

From the above table it is clear that majority of the respondents are Yokohama and bridgestone are the
least preferred tyres by the customer.

30
Chart 4.8

4.9 RESPONDENTS RANKED FACTORS BASED ON THEIR PREFERENCE

TABLE 4. 9.1
SL NO Rank 1
No of Percentage
respondents
1 PRICE 9 18
2 QUALITY 21 42
3 DURABILITY 9 18
4 STYL SND DESIGN 3 6
5 BRAND 8 16
TOTAL 50 100

INTERPRETAION

From the table it is clear that respondents prefer quality as number umber 1 factor and then only they
prefer other factors in buying tyres

TABLE 4.9.2
SL NO Rank 2
No of Percentage
respondents
1 PRICE 13 26
2 QUALITY 18 36
3 DURABILITY 9 18
4 STYL SND DESIGN 2 4
5 BRAND 4 8
TOTAL 50 100

31
Interpretation
The table shows that respondents are preferring quality as number 2 factor and price is also other factors

TABLE 4.9.3
SL NO Rank 3
No of Percentage
respondents
1 PRICE 17 34
2 QUALITY 6 12
3 DURABILITY 9 18
4 STYL SND DESIGN 12 24
5 BRAND 6 12
TOTAL 50 100

Interpretation
The table shows that respondents are price as number 3 factor 17 out of 50 are preferring it

TABLE 4.9.4
SL NO Rank 4
No of Percentage
respondents
1 PRICE 11 22
2 QUALITY 10 20
3 DURABILITY 8 16
4 STYL SND DESIGN 10 20
5 BRAND 11 22
TOTAL 50 100

INTERPERTATION
From the table the fourth factor which customers consider while purchasing tyres are price and
branding and 22% are responding that they consider this factors.

TABLE4.9.5
SL NO Rank 5
No of Percentage

32
respondents
1 PRICE 8 16
2 QUALITY 2 4
3 DURABILITY 5 10
4 STYL SND DESIGN 21 42
5 BRAND 6 12
TOTAL 50 100

INTERPERTATION
From the table the fourth factor which customers consider while purchasing tyres are style and
design and 42% are considering that

Chart 4.9

4.10 I make purchase decisions by myself without seeking opinions from others
SL NO Response
No of Percentage
respondents
1 SA 16 32
2 A 9 18
3 N 14 28
4 D 6 12
5 SD 5 10
TOTAL 50 100

33
Chart 4.10

Interpretation
It is clear that the 16 out of 50 respondents are selecting brands their own and it may because
of different factors which they are influenced

4.11 I have personal interest towards MRF due to previous experience


SL NO Response
No of Percentage
respondents
1 SA 16 32.7
2 A 9 18.4
3 N 13 26.5
4 D 5 10.2
5 SD 6 12.2
TOTAL 49 100
Chart 4.11

34
Interpretation
16 respondants are responding that they have a personal interest towards MRf this may becasuse
of previous experience and sales promotions

4.12 i consider my lifestyle or way of living while choosing a product

SL NO Response
No of Percentage
respondents
1 SA 21 42.9
2 A 18 36.7
3 N 6 12.2
4 D 3 6.1
5 SD 1 2
TOTAL 49 100
Chart4. 12

35
Interpretation
Majority ie,21 out of 49 are considering their lifestyle as a factor for buying MRF this may
because of quality and durability

4.13 My decisions are affected by brand image and sales person approach
SL NO Response
No of Percentage
respondents
1 SA 11 22.4
2 A 14 28.6
3 N 10 20.4
4 D 5 10.2
5 SD 9 1
TOTAL 50 100
Chart 4.13

Interpretation
Majority of the customers are depending on the sales promotional technique and sales person,if
they are able to convince the customers then the customer will buy the product

4.14 I believe it is wiser to buy affordable tyres overlooking quality and


grandeur
SL NO Response
No of Percentage
respondents
1 SA 17 3.7
2 A 12 24.5
3 N 11 22.4
4 D 5 10.2

36
5 SD 4 8.2
TOTAL 49 100
Chart 4.14

Interpretation
17 out of 49 respondents are buying tyres which is affordable for them and they are not
considering other factors like durability,sales promotion etc

4.15 The quality of MRF tyres is good


SL NO Response
No of Percentage
respondents
1 SA 20 40.8
2 A 15 30.6
3 N 11 22.4
4 D 2 4.1
5 SD 1 2
TOTAL 49 100

Chart 4.15

37
Interpretation
From the survey it is clear that MRF has a strong customer relationship and they are maintain it
properly that’s why most of the customers are agreeing that the quality is good

4.16 MRF tyres are affordable


SL NO Response
No of Percentage
respondents
1 SA 19 38.8
2 A 14 28.6
3 N 13 26.5
4 D 1 2
5 SD 2 4.1
TOTAL 50 100

Chart 4.16

38
Interpretation
From the survey it is clear that MRF is affordable for the customers to buy. consumers who
prefer price will always buy MRF TYRES.

4.17 I think the promises made by MRF about its product are genunine
SL NO Response
No of Percentage
respondents
1 SA 19 38.8
2 A 14 28.6
3 N 13 26.5
4 D 1 2
5 SD 2 4.1
TOTAL 50 100
Chart 4.17

Interpretation
Most of the respondents are using MRF and it shows its qualiy and sales promotional ethics
which MRF is following

4.18 MRF tyres are better than competitors


SL NO Response
No of Percentage
respondents
1 SA 12 24
2 A 19 38
3 N 11 22
4 D 4 8
5 SD 4 8
TOTAL 50 100

39
Chart 4.18

Interpretation
Most of the customers from the survey is telling that MRF is better than its competitors and it
shows the customer perception towards MRF.

40
CHAPTER 5
FINDINGS AND SUGGESTIONS

5.1 Findings
 As per the findings majority of the respondents are male and they are single.

 Majority of the respondents have a monthly income less than 20000

 Most of the respondents are post graduates and they are owning car

 Majority of the respondents have experience with MRF

 As per the survey friends and colleagues have more influential in buying tyre

 As per the survey most of the respondents prefer MRF

41
 Most of the respondents select tyres themselves and they refer sales person and sales
promotion

 Most of the people are considering quality as their main factor for purchasing tyre.

 Majority of the respondents have a good opinion about MRF and this shows their
relationship with customers.

 As per the findings majority of the respondents are responding that MRF is considered as
the affordable tyres

 As per the findings MRF is better than its competitors

5.2 Suggestion

 Price is the factor which the respondent will consider while making purchases of tyres if
they are influenced on the basis of price discounts, MRF can beat its competitors

 Majority of the respondents are influenced by sales promotions if they are focused more
on advertisements they can increase their sales.

42
CHAPTER 6
CONCLUSION

Conclusion
The conclusion of factors affecting customer behavior while purchasing tyres are mentioned below

 Majority of the customers are influenced by their colleagues and friends while purchasing tyres.
 Large number of customers are choosing tyres on the basis of their life styles and preferences
 Majority of the customers are influenced by sales persons and sales promotional techniques
 Quality is the major factor while customer prefer while purchasing tyre
 Price and durability is other factor which customer consider while purchasing tyre
 Most of customers are telling that MRF is affordable and durable
 Majority of the respondents choose MRF themselves

43
Bibliography
References
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Brand Management Vol.: 20, No.: 1, pp. 48-57, March, 1 2011.
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Mason: Thompson
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45
APPENDIX

As part of my MBA project, I am conducting a survey to investigate the factors influencing buying
behavior and customer perception with special reference to MRF tyres. I will appreciate if you
could complete the following survey.

Name

Age

46
GENDER Male☐ Female☐

Marital Status ☐ Married ☐ Single

1. What is your highest educational qualification?


☐ H.S.C ☐ Graduate

☐ P.G. ☐ Diploma

2. Which income category best describes your monthly income ?


☐ Below Rs 10,000 ☐Rs 10,000 – Rs 19,000 ☐Rs. 20,000 – Rs. 29,000 ☐Rs.
30,000.00 – Rs. 39,000 ☐Rs 40,000 and above.

3. Which vehicle do you own ?


Bike/Scooter☐ Car☐ Jeep☐ SUV☐

4. Have you ever purchased MRF tyre for your vehicle


Yes ☐ No☐

5. How much influential are the following categories of reference group on your tyre purchase
Not at all Slightly Somewhat Very Extremely
influential Influential influential influential Influential
1.Friends
2.Colleagues
3.Parents
4.Siblings

6. Rank the following factors in the order of importance while buying tyres. (Rank from 1-5; Rank
1 the most important factor and Rank 5 the least important factor OBJ 2
☐ Price
☐ Quality
☐Durability

47
☐Style and design
☐ Brand
7. Rank the following tyre brands in the order of your preference ((Rank from 1-5; Rank 1 the most
preferred brand and Rank 5 the least preferred brand
☐MRF
☐CEAT
☐APPOLO
☐YOKOHAMA
☐BRIDGESTONE

8. Mark your agreement to the following statements


Strongly Agree(1) Agree(2) Neutral(3) Disagree(4) Strongly Disagree(5)

Description SA A N D SD
1 2 3 4 5

1.I make purchase decisions by myself without seeking opinions


from others

2.I have a personal interest towards MRF due to previous experience


3.I consider my lifestyle or way of living while choosing a product

4.My decisions are affected by brand image and sales person


approach
5.I believe it is wiser to buy affordable tyres overlooking quality and
grandeur

9. Mark your agreement to the following statements

48
Strongly Agree(1) Agree(2) Neutral(3) Disagree(4) Strongly Disagree(5)

Description SA A N D SD
1 2 3 4 5

1. The quality of MRF tyres is good


2. MRF tryres are affordable
3. I think the promises made by MRF about its products are genuine

4. MRF tyres are better than competitors product

49

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