Summer Training Report

On
ANALYSIS OF CONSUMER BUYING
BEHAVIOUR
Submitted in partial fulfillment of the requirement for the
award of degree of
Bachelors of Commerce (H)
Session 2017-2020

Submitted by:
ABHISHEK
B.COM
Enrolment No.-90114788818

MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT

STUDIES,
Affiliated to Guru gobind singh Indraprastha university
 DECLARATION

This is to certify that I Abhishek Student of MAHARAJA AGRASEN INSTITUTE OF

MANAGEMENT STUDIES studying in Bcom H 5th Semester, ROLL NO – 90114788818 has
prepared a project report entitled Analysis of consumer buying behavior for the partial
fulfillment of degree of Bachelors of commerce from GGSIP UNIVERSITY.

I hereby declare that the project report submitted to the Kurukshetra University, Kurukshtra is a
record of an original work done by me under the guidance of Mr. Rajesh sir and this project work
has not performed the basis for the award of any Degree or diploma/ associate ship / fellowship
and similar project if any.

Signature of Candidate

Name – ABHISHEK

Roll No.-90114788818
 ACKNOWLEDGEMENT

I am neither expert nor a trend spotter. I am a management student with foundations of

management principles and theories who is keen in different industries, it's happening mainly in
hyundai.

I am highly obliged to Mr Dev kumar, my prime internal guide for his invaluable support;
guidance and knowledge that he has shared with me thereby aiding me in making this project a
success along with other employees who provided their utmost working knowledge, which has
broaden my area of interest and benefited mostly in completing the project.

I am highly grateful to my project guide Mrs. Varuna kharbanda (Assistant Professor,

MAIMS) for their inspiring presence and blessings for going ahead and fulfilling the project
report.

Lastly I thank faculty and staff members of MAIMS, Rohini which gave me an opportunity
regarding training purpose and helped me in building some experience in my career.

Student Name – ABHISHEK

Student Roll No - 90114788818

 INDEX

Chapter number Topic

CHAPTER 1 INTRODUCTION

1.1) Introduction to the Industry

1.2) Introduction to the Company

1.3) Introduction to the Topic

CHAPTER 2 LITERATURE REVIEW

CHAPTER 3 RESEARCH METHODOLOGY

3.0) Research methodology

3.1)Statement of the problem
3.2) Justification of the study
3.3) Objective of the study
3.4) Scope of the study
3.5 ) Research design
3.6) Collection of data
3.7)Sources of data collection
3.8)Sampling technique
3.9)Analytical tool used in study
3.10) Limitations of study

CHAPTER 4 ANALYSIS & INTERPRETATION

CHAPTER 5 FINDINGS, SUGGESTION & CONCLUSION

5.1) Findings

5.2) Conclusion
5.3) Suggestion

BIBLIOGRAPHY

ANNEXURE (IF-ANY)
 INTRODUCTION TO INDUSTRY

The automotive industry in India is one of the largest in the world which has
increased at the rate of 8.68 per cent over the past year i.e. with an annual
production of 23.37 million vehicles in FY 2014-15.In country’s gross domestic
product(GDP), this industry contributes about 7.1 per cent. Because of growing
middle class society and a young population, the Two Wheelers segment, becomes
the leader of the Indian Automobile market. Moreover, the growing interest of
companies in exploring the rural markets further aided the growth of the sector.

India is a significant auto exporter and in future it will become vast in the world by
its increasing auto export growth.By last year till now auto export rate has been
increased upto 15 per cent. Moreover government has been taking many initiatives
for the betterment of auto export rates.Soon India will emerged as a leader.
 HISTORY

First car in india was purchased in 1897 in Calcutta.Then in the following year
Jamshedji Tata and parsis in Bombay purchased one car and three cars
respectively.That same year, the first pneumatic tyres arrived in Bombay, with
Dunlop opening an office in the city.

Madras, it would appear, lagged behind, though it is related that a car was seen on
Mount Road on a brief outing in 1894. If that unconfirmed appearance is ignored,
the first recorded date of a car being in regular use in Madras is 1901. The car was
owned by A J Yorke, a director of Parry & Co. He drove it daily from Ben’s
Gardens, Adyar, to Parry’s in ‘Black Town’. The South’s first registered car, MC-1,
belonged to Francis Spring, at that time Secretary of the Madras Railway Board
and, in 1904, to become the Chairman of the Madras Port Trust and ‘father’ of the
Madras Harbour.
The first Indian-owned car in Madras, MC-3, was building contractor T
Namberumal Chetty’s.

India’s first steam car was built by Samuel John Green of Simpson & Co in 1903.
The Madras Mail hailed its appearance as the beginning of “a new industry for
Madras.” Two years later, Simpson’s built the first steam bus which ran between
Bezwada (Vijayawada) and Masulipatam (Machilipatnam) .It was possibly the
first motor bus service in the country.
When TVS commenced operations in 1912, motor transport received a fillip in
South India. The firm was founded by T V Sundram Iyengar to operate a bus
service. T V Sundram Iyengar and Sons Ltd (now Sundaram Motors) became a
vehicle dealer in 1922 after the lifting of Government restrictions on imported
vehicles of all types had been put in place during the Great War (1914-18). By
1920, the number of imported vehicles of all types had grown to nearly 13,500 and
two international automobile manufacturers, Ford and General Motors, sensing the
potential, set up local companies that year to sell
anservicetheirmotorcarsandtrucks.
In 1928, General Motors India Ltd commenced assembling trucks and cars in its
factory in Bombay.On December 4th the first car assembled in India. After Two
years, Ford Motor Co of India Ltd commenced assembly of automobiles in
Madras, and the next year in Bombay and Calcutta. And in 1936, Addison & Co
Ltd commenced assembly of cars and trucks in Madras.

Hindustan Motors Ltd, Calcutta, and Premier Automobiles Ltd, Bombay, were
established in 1942 and 1944 respectively to progressively manufacture complete
automobiles. Hindustan Motors, a Birla group company, began manufacturing
operations in 1948 by assembling Morris Oxford cars and Bedford trucks,
gradually indigenising the components. In 1957, the Morris Oxford, substantially
indigenised, was re-introduced as the Hindustan Ambassador.
 Common materials used to make car

The car industries don’t make up cars with only engines,HVAC systems,and so
on.The car industries use various materials to build cars which are as follows:-

 iron

 aluminum

 plastic steel

 glass

 rubber

 petroleum products

 copper

 steel and others.

These parts are used to create everything from those small things we don't think
about, such as dashboard needles and wiring, to the big stuff, such as the engine
block or the transmission gears.
 EXPORT

India's automobile exports have grown consistently and reached $4.5 billion in
2009, with the United Kingdom being India's largest export market, followed by
Italy, Germany, Netherlands, and South Africa.

India's have strong engineering base which result low - cost, fuel-efficient cars has
resulted in the expansion of manufacturing facilities of several automobile
companies like Hyundai, Nissan, Toyota, Volkswagen, and Maruti Suzuki.

In 2008, Hyundai Motors alone exported 240,000 cars made in India in South
Korean . In 2011 Nissan Motors plans to export 250,000 vehicles manufactured in
its India. Similarly, US automobile company, General Motors announced its plans
to export about 50,000 cars manufactured in India in 2011.

Ford Motors announced to set up a plant in India with an annual capacity of

250,000 cars, for US$500 million in September 2009. The cars will be
manufactured both for the Indian market and for export. The company said that the
plant was a part of its plan to make India the hub for its global production business
announced that it would source more than US$1 billion worth auto components
from India.

(A Tata Safari on display in Poznań, Poland.)

In 2009 China was surpassed that india was Asia's fourth largest exporter of cars
after Japan , Korea and Thailand by allowing foreign carmakers 100% ownership
of factories in India, which China does not allow.

In July 2010, PSA Peugeot Citroën was planning to re-enter the Indian market and
open a production plant in Andhra Pradesh that would have an annual capacity of
100,000 vehicles, investing € 700M in the operation. PSA's intention to utilise this
production facility for export purposes .

(The Ertiga, a model exported by Maruti Suzuki, India.)

In recent years, India has emerged as a leading center for the manufacture of small
cars. Hyundai, the biggest exporter from the country, now ships more than 250,000
cars annually from India. Apart from Maruti Exports' shipments to Suzuki's other
markets, Maruti Suzuki also manufactures small cars for Nissan, which sells them
in Europe. Nissan will also export small cars from its new Indian assembly line.
Tata Motors exports its passenger vehicles to Asian and African markets, and is
preparing to sell electric cars in Europe in 2010. The firm is planning to sell an
electric version of its low-cost car the Tata Nano in Europe and in the U.S.
Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV
models in the U.S. market. Bajaj Auto is designing a low-cost car for Renault
Nissan Automotive India, which will market the product worldwide. Renault
Nissan may also join domestic commercial vehicle manufacturer Ashok Leyland in
another small car project. While the possibilities for the Indian automobile industry
are impressive, there are challenges that could thwart future growth. Since the
demand for automobiles in recent years is directly linked to overall economic
expansion and rising personal incomes, industry growth will slow if the economy
weakens
 Top 10 export destinations

India exported $14.5 billion worth of automobiles . The 10 countries below imported 47.8%
of that total.

Ran Value Sh
Country
k (US$) are
$ 1.2
1 United States
billion 8.4%
$1
2 Mexico
billion 6.9%
$888.8
3 South Africa
million 6.1%

$637.4
4 United Kingdom
million 4.4%
$596.9
5 Sri Lanka
million 4.1%
$592.1
6 Bangladesh
million 4.1%
$580.4
7 Turkey
million 4%
$546.8
8 Nigeria
million 3.8%
United Arab $433.6
9
Emirates million 3%
$428.9
10 Colombia
million 3%

Indian automotive companies

 Chinkara Motors :- Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster,
Sailster
 Force Motors :-(earlier known as Tempo): one
 Hindustan Motors :- Ambassador
 Mahindra:- Major, Bolero, Scorpio, Thar, Xylo, Quanto, Verito, Verito
Vibe, Genio, XUV500, e2o.
 San Motors:-Storm
 Maruti Suzuki:- 800, Alto, Alto800, WagonR, Estilo, A-star, Ritz, Swift,
Swift DZire, SX4, Omni, Eeco, Gypsy, Ertiga, Celerio, Ciaz
 Tata Motors:- Nano, Indica, Vista, Indigo, Manza, Indigo CS, Sumo,
Grande, Venture, Safari, Xenon, Aria, Zest, Bolt

(Maruti Swift in India. Maruti Suzuki is a subsidiary of Suzuki Motor

Corporation of Japan)
(Mahindra XUV500, one of India's best selling indigenously developed SUV)
Few Interesting Facts:

1. The auto industry currently contributes 18% to the country's total excise
revenue.

2. Auto industry generates employment of 13 persons for each truck, 6 persons

for each car and four persons for each three wheeler and one person for two-
wheelers.
3. Auto industry currently employs 19.5 million people both directly and
indirectly.

4. If the industry produces as per its potential, it could generate employment of

over 35 million people by 2017.

5. Auto industry contributes 25% to the total manufacturing GDP.

6. There are 16 passenger vehicles per 1000 people in India.

7. According to Automotive Mission Plan 2006-16 auto industry turnover was

to reach $145 billion by 2016 but it is expected to be just over US$110
billion, a shortfall of about 25%.
 SWOT analysis of Automobile industry

Strengths

1. Evolving industry : Automobiles represent freedom and economic growth.

Automobiles allow people to live, work and travel in ways that were
unbelievable a century ago. Automobiles provides help to markets, to
doctors, to jobs. Nearly every automobile trip ends with either an economic
transaction or some other benefit to the quality of life.
2. Continuous production & technological advancement : With the help of
E-vehicles & alternative fuel such as Shell gas, CNG and others, Automobile
Companies are increasing R & D expenditure to drive the car with the
growth of use of renewable sources of energy which may be solar, wind etc.
 3. Growth shifting to Asian markets : Although American & European
market is the pulse of this Industry, but the focus is shifting to developing
markets like China, India & other Asian nations because of the rise in
income, changing lifestyle & stable economic conditions.
4. Increasing demand of VFM(value of money) vehicles : competition in the
developed markets has forced automobile manufacturers to target
developing economies. But these developing economies have high demand
for VFM products (value for money). In the automobile industry, VFM
products would be fuel efficient, high mileage vehicles because majority of
customers in these nations prefer vehicles for commuting. On the other hand,
developed nations need is of vehicles for interstate travelling, and high speed
vehicles suitable for long route with high engine power.
5. Increase in demand of luxury commercial vehicles : Companies like
VOLVO, Chrysler, Bharat Benz are betting high & are targeting the
developing nations due to increase in demand of Luxury public
transportation system.
6. Manufacturing facilities in our nations to control cost : In order to
control cost & to manage margins automobile companies like Harley, Volvo,
Bharat benz etc. are building their manufacturing facilities in developing
nations like India, China because these nations have cheap workforce, are
high in resources & are nearer to developed economies. These are classic
conditions of an emerging market.

Weaknesses

1. Cars recalled : the company recalled the vehicles with having some
technical dis-functionality or non-abidance to govt. led rules is becoming
very common.
2. Bargaining of consumers : Over the last 3-4 decades the automobile
market has shifted from demand to supply market. Availability of large
number of vehicals , and competition between them, and there are so many
of alternatives which car I brought,so there are so many power of consumer
to bargaining
 3. Growth rate of Automobile industry :is the in the hands of the government
due to regulations like excise duty, no entry of outside vehicles in the state,
decreasing number of validity of registration period & volatility in the fuel
prices. These factors always affect the growth of the industry.

Opportunities

1. Introducing fuel-efficient vehicles : now the time is vehicales have less

mantanace. Emerging markets will be the main growth drivers for a long
time to come, and hence fuel efficient cars are the need of the hour.
2. Strategic Alliances : Making strategic alliances can be a smart strategy for
Automobile companies. By using specialized capabilities & partnering with
other companies, they can differentiate their offerings.
3. Changing lifestyle & customer groups : Three powerful forces are rolling
the auto industry. Shift in consumer demand, expanded regulatory
requirements for safety and fuel economy, and the increased availability of
data and information. Also with the increase in nuclear families there has
been increase in demand of two-wheelers & compact cars and this will grow
further.
4. Market expansion : Entering new markets like Asian & BRIC nations will
result in upsurge in demand of vehicles. After these markets, other markets
are likely to emerge soon.
5. OEM priorities : Given the increase in electronic content, OEMs need to
collaborate with suppliers and experts outside the traditional auto industry.
Accomplishing this will require changes in the way OEMs function. OEMs
will be looking to their top suppliers to co-invest in new global platforms &
this will be the driving force in the future.

Threats

1. Competition : Presence of such a large number of players in the

Automobile industry results into extensive competition, every company
eating into others share leaving little scope for new players.
2. Volatility in the fuel Prices : At least for the passenger segment fluctuations
in the fuel prices remains the determining factor for its growth. Also
government regulations relating the use of alternative fuels like CNG. Shell
gas is also affecting the inventories.
 3. Sluggish Economy : Macroeconomic uncertainty, Recession, un-
employment etc. are the economic factors which will daunt the automobile
industry for a long period of time.
4. High fixed cost and investment in R & D : Due to the fact that mature
markets are already overcrowded, industry is shifting towards emerging
markets by building facilities, R & D centers in these markets. But the
ROI out of these decisions is yet to be capitalized.

Introduction to company

Hyundai motors:

Hyundai Motor India Limited (HMIL) is a part of Hyundai Motor Company

(HMC) and is owned by HMC.They have currently ten car models – Eon, i10,
Grand i10, Elite i20, Active i20, Xcent, Verna, CRETA, Elantra and Santa Fe.Thats
make them the largest passenger car exporter and the second largest car
manufacturer in India.They have their manufacturing plant in Chennai

which manufacture cars of good quality and testing capabilities.

HMIL is a great expoter across various countries like Africa, Middle East, Latin
America, Australia and the Asia Pacific. HMIL has been India’s number one
exporter for the last 10 years consecutively. For its growth and betterment HMIL
currently has 445 dealers and more than 1,100 service points across India.Hyundai
has a modern multi-million dollar R&D facility in Hyderabad to provide customers
with new equipped technology cars.. The R&D center endeavors to be a center of
excellence in automobile engineering.

Product range includes-

 Hyundai Eon (Launched 2011)

 Hyundai i10 (Launched 2010)

 Hyundai Grand i10 (Launched 2013)

 Hyundai Xcent (Launched 2014)

 Hyundai Elite i20 (Launched 2014)

 Hyundai i20 Active (Launched 2015)

 Hyundai 4S Fluidic Verna (Launched 2011)

 Hyundai Elantra (Launched 2010)

 Hyundai Creta (Launched 2015

Hyundai Motor Company Success Story

The Hyundai Motor Company was set up in 1967 as a subsidiary of the Hyundai
Engineering & Construction Company. It first started to work with ford company
by assembling cars and trucks. With the collabration with the ford company they
launched their first car in 1975 named as hyundai cortina. Within the next two
years they had become the 13th largest automaker in the world with 2% share in the
world retail market.

In 1975, the company decided to build its own car under the name ‘Hyundai’.
Their first car was ‘Hyundai Pony’which was designed by best five engineers over
the world. This car had a grest respones due to its size and capital,specialy in South
Korea. Next the Hyundai Pony entered the Canadian market and within 9 months
became the top-selling car there. By 1985, their production had exceeded more
than 1 million cars.

Soon they landed in US market wuth ‘Hyundai Excel’ car in 1986 which proved to
be a best seller because of its quality and low pricing. In 1986 more than 160,000
units were sold and the next year it crossed 260,000. Now Hyundai had established
itself as one of the top competitors in the world automobile industry. Their next
release was the midsize Sonata in the year 1988. This model did not click in the
U.S. market but by then Hyundai was already producing 4,000,000 units per year.

Why Hyundai

 They manufacture good cars with cheap rates.

 It has great market value

 Warranty period is sufficient

 Turbocharged and hybrid-powered

 Use modern technology to built cars

 It has various advantage over other cars

Our Facilities

(GOOD ENVIREMENT)

(PROPER WORK)
 (WELL MAINTAIN )

INTRODUCTION TO TOPIC

WHAT IS Consumer Behavior ?

The process of behaviour of a convinced customer by your professional skill to buy

any product is known as Consumer Behaviour. The more professional you are,the
more knowledge you have then only you can easily sell the product.“Consumer
Behavior is basically the process and activities that people do in order to search,
select, purchase, use, and dispose a product to satisfy their needs.”A successful
marketer needs to know the following things:
1. What are the things customer thinks about before buying the
product
2. What type of decisions he/she likes to make to buy product
3. Why your product i s bet ter t han anyone’s pr oduct
4. What factors can effect the purchase decision of the customer
5. What ar e the needs of the consum er
6. How the consumers gathers the information about a product to fulfill
the need
7. How consumer selects a specific product among alternatives
8. How consum er makes pur chase deci si on
9. How the needs of di fferent consumers vary
 DEFINITION

Consumer Behavior (or Buyer Behavior) is broadly defined by various scholars &
researchers as:

1. It’s the behavior displayed by the consumers during the acquisition,

consumption and disposition of products, services, time and ideas by
decision making units.

2. 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.
 3. 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.

4. 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.

5. The activities directly involved in obtaining, consuming, and disposing

of products and services, including the decision processes that precede and
follow these actions.

6. 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 your needs.

A MODEL OF CONSUMER BEHAVIOUR:

A consumer behaviour while buying any particular product depends upon various
factors. The beginning point of the decision process is provided by the company’s
marketing stimuli in the shape of product, promotion, and price and distribution
strategy. Mostly consumer purchase any product by viewing a specific brand name.
The term consumer behavior refers to the behavior that consumer display in
searching for purchasing, using, evaluating and disposing of products and services
that they expect will satisfy these needs. Consumer behaviour accounts the
decisions of the customer resources which they have to spend to buy a patricular
product. It includes the study of “what they buy”, “why they buy”, “when they
buy”, “where they buy”, “how often they buy” and “how they use”.

CULTURAL FACTORS:

Culture: It makes a significant role while a customer is buying a product.His/Her

whole decision depend upon their family perceptions and their way of doing
things.
Subculture: Social classes are relatively homogeneous and enduring divisions in a
society which are hierarchically ordered and whose members shares similar Values,
interest and behavior and social classes includes upper class, middle class and
lower class.

SOCIAL FACTORS:
References Groups: A persons reference groups consist of all the groups that have
a direct (face to face) are indirect influence on the person’s altitude or behavior.
This group to which the person, belongs and interacts.
Personal Factors: A consumer decision also influenced by his/her personal traits
and their way of living.Their way of thinking,way of doing things,salary influences
a customer in purchasing any product.

PSYCHOLOGICAL FACTORS:
Motivation: A person has many needs at any given time. Some needs are biogenic.
They arise from psychological states of tension such as hunger, try stand
discomfort.
Perception: Perception is defined as the process by which an individual selects,
organizes, intercepts, information, inputs to create a meaningful picture of the
world.

NEED FOR THE STUDY:

Consumer behaviour is important for company’s growth.They have to know the

needs and demands of the people so that they could work upon them and make
their company better. 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 also to attract various
new customers by their new bringing features. In this competitive market the level
of consumer satisfaction decides the success of any product and any company. The
customer who are really willing to buy a product should be targeted and it will lead
to better results.

OBJECTIVES OF THE STUDY:

The main objective is to determine the current consumer behavior levels of the
customers with regards to HYUNDAI.

 To study and analyze consumer shopping behavior towards HYUNDAI.

  To assess the behavior level of different type of customers buying at
HYUNDAI.

 To identify what type of strategies are suitable for the company to reach the
targeted customers.

 To find out the factors which influence the consumption of the products in
HYUNDAI.

 To identify effective advertising sources which are influencing

customer purchasing behavior at HYUNDAI.

 To find out how the consumers spent their incomes, time on the purchasing
of the products.

SOURCES OF INFLUENCE OF THE CONSUMER:

The consumer faces numerous of influence. Often, we take cultural influences for
granted, but they are significant. An American will usually not bargain with a
storeowner. This, however, is common practice in much of the world. Physical
factors also influence our behavior. We are more likely to buy a soft drink when we
are thirsty. For example, and food manufacturers have found that it is more
effective to advertise their products on radio in the late afternoon when people are
getting hungry. A person’s self-image will also tend to influence what he/she will
buy. An upwardly mobile manager may buy a flashy car to project an image of
success. Social factors also influence what the consumers buy-often, consumers
seek to imitate others whom they Admire, and may buy the same brands, the social
environment can include both the mainstream culture (e.g., Americans are more
likely to have corn flakes/ham and eggs for brake past than to have rice, which is
preferred in many Asian countries) and a sub culture (e.g., rap music often Appeals
to a segment within the population that seeks to distinguish itself from the main
stream population).Thus sneaker manufacturers are eager to have their products
worn by admired athletes. Finally, consumer behavior is influences by learning ±
you try a hamburger and learn that it satisfies your hunger and tastes good, and the
next time you are hungry, you may consider another hamburger.

Consumer buying decision

PROBLEM IDENTIFICATION

INFORMATION SEARCH

EVALUATION OF ALTERNATIVE

CHOICE OF PURCHASING DECISION

POST PURCHASE BEHAVIOUR

BUYER BEHAVIOUR ± CULTURAL FACTORS

Cultural factors have a significant impact on customer behavior. Cultural is the
most basic cause of a person’s wants and behavior. Growing up, children learn
basic values, perception and wants from the family and other important group.
Marketing are always trying to spot cultural shift which might point to new
products that might be wanted by customer or to increased demand. For example,
the cultural shift towards greater concern about health and fitness has created
opportunities (and now industries) servicing customers who wish to buy:
Low calorie foods
Health club memberships
Activity or health- related holidays etc.

Similarly the increased desire for leisure time has resulted in increased demand for
convenience product and service such as microwave ovens, ready meals and direct
marketing service businesses such as telephone banking and insurance.
Each culture contains sub-cultures´ groups of people with shared values. Sub-
cultures can include nationalities, religions, racial groups, or group of people
sharing the same geographical location. Sometimes a sub-culture will create a
substantial and distinctive market segment of its own.

BUYER BEHAVIOUR SOCIAL FACTORS:

Introduction: A customer’s buying behavior is also influenced by social factor,

such as the group to which the customer belongs and social status. In a group,
several individuals may interact to influence the purchase decision. The typical
roles in such a group decision can be summarized as follows:

Initiator: the people who first suggest or think the idea of buying a
particular product or service.
Influence: a person whose view or advice influences the buying decision.

Decide: the individual with the power and/or financial authority to make the
ultimate choice regarding which product to buy.

Buyer: The person who concludes the transaction.

User: The person (persons) who actually uses the product or service.
INDIVIDUAL FACTORS THAT SHAPE BUYER BEHAVIOUR PROCESS
HIGH INVOLVEMENT Extensive problem-solving (EPS)
LOW INVOLVEMENT Limited problem solving (LPS)
Reutilized response behavior (RRB)

CULTURAL FACTORS
Cultural factors exert a broad and deep influence on consumer behavior. The
marketer needs to understand the role played by the buyer’s culture, subculture,
and social class.
Culture
The set of basic values, perceptions, wants, and behaviors learned by a member of
society from family and other important institutions,
Subculture
A group of people with shared value systems based on common life experiences
and situations.
Social classes
Relatively permanent and ordered divisions in society whose members share
similar values, interests, and behaviors.
SOCIAL FACTORS
A consumer’s behavior also is influenced by social factors, such as the consumer’s
small groups, family, and social roles and status.
Groups
Two or more people who interact or accomplish individual or mutual goals.
Family
A family is a domestic group of people, or a number of domestic groups linked
through descent (demonstrated or stipulated) from blood relation, marriage or
adoption.
Roles and status
A person belongs to many groups- family, clubs, and organizations. The people’s
position in each group can be defined in terms of both role and status.

PERSONAL FACTORS
A buyer’s decisions also are influenced by personal characteristics such as the
buyer’s age and life cycle stage, Occupation, economic situation, lifestyle, and
personality and self-concept.
Age and life-cycle stage
People change the goods and services they buy over their lifetimes. Tastes and
preferences changes as lift-cycle goes.
Personality and self-concept
A persons’ distinguishing psychological characteristics that lead to relatively
consisting and lasting responses to his or her own environment.
PSYCHOLOGICAL FACTORS
A person’s buying choices are further influenced by four major psychological
factors: motivation, perception, learning, and attitudes.
Motivation
A need that is sufficiently pressing to direct the person to seek satisfaction of the
need.
Perception
The process by which people select, organize, and interpret information to form a
meaningful picture of the world.

Learning
Changes in an individual’s behavior arise from experience.
Beliefs and attitudes
A descriptive thought that a person holds about something is his/her belief. A
person’s consistently favorable or unfavorable evaluations, feeling, and tendencies
toward and object or idea is attitude. The common tools used to conduct data
analysis range from simple cross tabulations and segmentation analysis to more
sophisticated statistical methods such as multivariate and logistic regression
discriminates analysis and cluster analysis. In the last few years, optimization tools
and machine learning algorithms such as neural networks and genetic algorithms
have also been used to perform advanced data analysis. The study of consumers
helps firms and organizations improve their marketing strategies by understanding
issues such as
 The psychology of how consumers think, feel, reason, and select between
different alternatives (e.g., brands, products);
 The psychology of how the consumer is influenced by his or
her environment (e.g., culture, family, signs, media);
  The behavior of consumers while shopping or making other marketing
decisions;

Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome;
How consumer motivation and decision strategies differ between products that
differ in their level of importance or interest that they entail for the consumer;
and How marketers can adapt and improve their marketing campaigns and
marketing strategies to more effectively reach the consumer.
Understanding these issues helps us adapt our strategies by taking the consumer
into consideration. For example, by understanding that a number of different
messages compete for our potential customers’ attention, we learn that to be
effective, advertisements must usually be repeated extensively. We also learn
that consumers will sometimes be persuaded more by logical arguments, but at
other times will be persuaded more by emotional or symbolic appeals. By
understanding the consumer, we will be able to make a more informed decision
as to which strategy to employ.
 Behavior occurs either for the individual, or in the context of a group (e.g.,
friend’s influence what kinds of clothes a person wears) or an organization
(people on the job make decisions as to which products the firm should use).
 Consumer behavior involves the use and disposal of products as well as the
study of how they are purchased. Product use is often of great interest to the
marketer, because this may influence how a product is best positioned or
how we can encourage increased consumption. Since many environmental
 problems result from product disposal (e.g., motor oil being sent into sewage
systems to save the recycling fee, or garbage piling up at landfills) this is
also an area of interest.
 Consumer behavior involves services and ideas as well as tangible products.
 The impact of consumer behavior on society is also of relevance.

REVIEW OF LITARATURE/CONSUMER BEHAVIOUR:

(Kotler, 2012):- Its main objective is to study the customer thinking while
choosing and buying any product and its after results also.Like customer review
about the product and what changes can be made to make it a better product.

(Acebron et al, 2000) The aim of this study is to know people’s reaction about their
previously used product in fruits. In their studies the authors used structural
equation model in order to identify the relationship between the habits and
previous experience on the consumer buying decision.Study revealed that how a
person perception and its experience of previous used product influence to buy a

ny thing. They also found that the image of the product has a crucial impact on the
purchasing decision of the consumer and further recommended that the product
image should continuously be improved in order to encourage the consumers
towards purchasing.

(Variawa, 2010) This study conducted analyzed the influence of packaging on

consumer decision making process for Fast Moving Consumer Goods. The aim of
the research was to analyze the impact of packaging for decision making processes
of low-income consumers in retail shopping. A survey method has been used in
order to reach the research objectives. In a survey conducted in Star Hyper in the
town of Canterville 250 respondents participated. The findings of the research
indicate that low-income consumers have more preferences towards premium
packaging as this can also be re-used after the product has been consumed.
Although the findings indicate that there is a weak relationship between the
product packaging and brand experience. However, it has been proven by the
findings of the research that low-income consumers have greater brand experience
from the purchase of ‘premium’ products when compared to their experience from
purchasing ‘cheap’ brand products.

(Lee, 2005) carried out study to learn the five stages of consumer decision making
process in the example of China. The researcher focuses on the facts that affect the
consumer decision making process on purchasing imported health food products,
in particular demographic effects such as gender, education, income and marital
status. The author employed questionnaire method in order to reach the objectives
of the research. Analysis of five stages of consumer decision making process
indicate that impact of family members on the consumer decision making process
of purchasing imported health food products was significant.

The author further explains this by the fact Chinese tradition of taking care of
young and old family members have long been developed and marriage is
considered to be extremely important in Chinese tradition. This reflects in the
findings of the study that the purchase of imported health food products made by a
person for the people outside the family is declined significantly by both male and
female Chinese after they get married.
(Blackwell et al 2006): Five Stages Model of consumer decision making process
has also been studied by a number of other researchers. Although different
researchers offer various tendencies towards the definitions of five stages, all of
them have common views as they describe the stages in similar ways. According to
him, the five stages of consumer decision making process are
followings: problem/need recognition, information search, evaluation of
alternatives, purchase decision made and post-purchase evaluation.

(Neal and Questel, 2006): Each stage is then defined by a number of researchers
varying slightly but leading to a common view about what each stage involves
need recognition occurs when an individual recognizes the difference between
what they have and what they want/need to have. This view is also supported by
stating that need recognition occurs due to several factors and circumstances such
as personal, professional and lifestyle which in turn lead to formation of idea of
purchasing.

(Schiffman and Kanuk, 2007): In the next stage, consumer searches information
related to desired product or service. Information search process can be internal
and external. While internal search refers to the process where consumers rely on
their personal experiences and believes, external search involves wide search of
information which includes addressing the media and advertising or feedbacks
from other people.
(Keller, 2005): Once the relevant information about the product or service is
obtained the next stage involves analyzing the alternatives. Consider this stage as
one of the important stages as the consumer considers all the types and alternatives
taking into account the factors such as size, quality and also price.

(Backhaus et al, 2007): suggested that purchase decision is one of the important
stages as this stage refers to occurrence of transaction. In other words, once the
consumer recognized the need, searched for relevant information and considered
the alternatives he/she makes decision whether or not to make the decision.
Purchasing decision can further be divided into planned purchase, partially
purchase or impulse purchase.

(Neal et al, 2004): Finally, post-purchase decision involves experience of the

consumer about their purchase. Although the importance of this stage is not
highlighted by many authors argues that this is perhaps one of the most important
stages in the consumer decision making process as it directly affects the
consumers’ purchases of the same product or service from the same supplier in the
future.

(Perugini and Bagozzi, 2001): It is important to note that The Five Stage Model is
not the only model related to consumer decision-making, and there are also a range
of competing models that include Stimulus-Organism-Response Model of Decision
Making developed by Hebb in 1950’s, Prescriptive Cognitive Models, The Theory
of Trying, Model of Goal Directed Behavior and others.
 Research methodology.
Meaning of Research
The process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research, interviews,
surveys and other research techniques, and could include both present and
historical information.
3.1.1 Research process:-

Fig: 3.1
Formulating the research problem

Extensive literature survey

Developing the hypothesis

Preparing the research design

Research proposal

Field work or data collection

Preparation and analysis of data

Generalizations and interpretation

Preparation of written report

 Oral presentation

CHARACTERISTIC OF RESEARCH

Research is a process of pursuit of truth with the help of

study,observations,comparisons and experiment.It may be defined as collecting,
analyzing and interpreting information to answer questions.

 Controlled- In real life there will be many factors which will effect the ratio
between two quantities.So to be controlled is one of the characteristic of
research.To not to effected by other factors happening around the surroundings.
 Reliability- is a subjective term which cannot be measured precisely but today
there are instruments which can estimate the reliability of any research.
Reliability is the repeatability of any research, research instruments, tool or
procedure. If any research yields similar results each time it is undertaken with
similar population and with similar procedures, it is called to be a research.

 Valid and verifiable- This explains that the research work that you have done
is truly correct and it can be verified by others.
 Empirical- This means that any conclusion drawn are based upon hard
evidence gathered from information collected from real life experience or
observations.

RESEARCH METHODOLOGY INCLUDES:

 Gathering data from the market.
 Conducting consumer surveys.
 Determining the needs of the customers.
 Evaluating customer responses.
 Gathering sales and market share data.
 Testing the product and policies.

Statement of the Problem

The study is related to the consumer behavior of the Hyundai. To know about to
increase the sales of product by effective promotion, the changes required in
marketing area, and to know about the what types of tools is available for sales
promotion. The problem here is precisely defined as “Consumer Buying
Behavior”.

Justification of Study:
As we know, in organization the publicity and marketing is one of the main
aspects. It is very important for any organization to have a deep analysis of their
perspective customers and creating awareness regarding their products. The
importance of publicity and marketing also appreciates with the growing
competition in the economy. So I have selected 'CONSUMER BUYING
BEHAVIOR' used by hyundai as my topic.

Objectives of the study

Main objective

“Analyze the situation of the market to make the strategies of effective marketing”.

Sub Objectives of the Study

1. To get the first-hand experience in the field of selling and promotion.

2. Identifying customer needs and providing information to company.

3. To understand and analyze the Consumer Behavior towards the company.

Research Design

A research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research design is the conceptual structure within which
research is conducted. It constitutes the blueprint for the collection measurement
and analysis of data. Research design includes an outline of what the researcher
will do from writing the hypothesis and its operational implication to the final
analysis of data.

A research design is a framework for the study and is used as a guide in collecting
and analyzing the data. It is a strategy specifying which approach will be used for
gathering and analyzing the data.

The research design used in this project is Descriptive in nature. Descriptive

research includes surveys and fact-finding enquiries of different kinds. The main
purpose of this descriptive research is description of the state of affairs as it exists
at present. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened and what is
happening.
Sources of data collection: Data collection is in-fact, the most important aspect of
a survey. While collecting data utmost care must be exercised because data
constitute the foundation on which the superstructure of statistical analysis is built.
If the data are inaccurate and inadequate the entire analysis may be faulty and the
decision taken would be misleading.

The data can be collected from primary and secondary sources. The basic premises
of my study are supplemented with the secondary data.

Primary Data: The Data, which are collected directly by the researchers and
according to his/her requirement. These types of data are collected through
interviews, observations, discussion etc.

 Interviews
 Personal Investigation
 Observation Method
 Information from correspondents
 Information from superiors of the organization

Secondary Data: The secondary data is the data, which is not directly collected by
the researchers but is already prepared by the other people.

 Published Sources such as Journals, Government Reports,

Newspapers and Magazines etc.
 Websites like fazethree.com official site, etc. are also searched to
find data.
There are two methods of Data Collection and I have used both methods i.e.,
primary method and secondary method as well. In primary method for data
collection, I have conducted a survey. In this survey, two kinds of questionnaires
were prepared. One was related to customer and another one was related to
retailers. The survey is described in detail in the following section.

The sample size for survey was 100. In addition, Primary data has been collected
through Structured Questionnaires, Personal Interviews & Discussion with the
employees. Secondary data has been given by the Company executives in the form
of previous records and I have taken other data from the company website &
internet.

3.7 Sample Design

 Sampling Area:-

The sample of 100 has been chosen randomly from area around kundli, the people
residing in an area around kundli are considered as the population for the study.

 Sampling Size:-

The sample size of 100 is selected randomly. The study requires a depth
survey and keen observation in collecting data regarding the marketing strategies
of HYUNDAI.

 Sampling Technique:-

Only simple random sampling technique is adopted in selection of the

sample. In this technique, each and every unit of the population has an equal
opportunity of being selected in the sample.
3.8 TOOLS USED FOR ANALYSIS:

The tools used for the analysis are as follows:

 Pie charts: Pie charts are a type of graph that represent data as slices of
circle; pie charts are a way to graphically data so that they can be analyzed
quickly and easily.

 Tables: Tables are used to represent the response of the respondents in a

precise term so that it become easy to evaluate the data collected.

 Bar graphs: A bar graph is a chart that uses either horizontal or vertical bars
to show comparisons among categories. One axis of the chart shows the
specific categories being compared and the other axis represents a concrete
value.

3.9: Survey period:

10 June – 10 July, 2016

3.10: Limitations of the study

Even though every effort has been done to minimize the variations and present a
factual picture with the help of statistical method.

But no study is free from limitations, which are caused by constraints of time,
money, knowledge base and similar factors. An attempt was made to broad base
the study as far as possible, however it is but natural that this study also suffers
from some limitations, which are mentioned below:
 Lack of experience: I was new on the topic which was assigned to me. So
lack of experience in getting information from respondents came in to the
way of collecting the relevant data.

 Time Constraints: Time was a bit short to fathom into the depth of the
study. But still all efforts to the best possible extent have been made to
collect the data.

 Data collection Constraints: Since most of the data used is secondary in

nature, this poses the constraints on the validity and reliability of the data.

 Busy Employees: Employees are not available as are busy in their work

 Sources: Sources were confounded some time to give proper information.

SCOPE OF THE STUDY

Hyundai has about so many branches in NCR region. I am in kundli
showroom.The scope of the study is to identify the consumer behavior towards
HYUNDAI.

 It is aimed at enlightening the company about different steps to be taken up

to increase the share of Hyundai with regard other competitors.

 It also focuses on how to make the company to provide better

customer services.

ANALYSIS & INTERPRETATION

AGE GROUP OF THE RESPONDENTS:

The below table show the age grp of respondents

AGE NUMBERS OF RESPONDENTS

18-25 8
25-35 28
35-45 10
ABOVE 45 54
TOTAL 100

INFERENCE: from the above table.8% of person belong to age grp of 18to25
years, 28% of person belong to age grp of 25to35,10% of person belong to age grp
of 35to45,and at last 54% of person belong to above 45 age

OCCUPATION OF THE RESPONDENTS:

The below table show the type of respondents of the respondents surveyed
OCCUPATION NO. OF RESPONDENTS
STUDENT 10
BUSINESS MAN 40
PRIVATE EMPLOYEE 32
GOVT. EMPLOYEE 18
TOTAL 100

INFERENCE: from the above table.10% of person are student, 40% of person are
business man,32% of person are doing private employess,and at last 18% of person
are govertment employee.

PERSON WHO WANT CAR OR NOT:

The below table show how much a person want car or not

WANTED A CAR OR NOT NO OF RESPONDENTS

YES 80
NO 20
TOTAL 100

HAVING A CAR OR NOT

INFERENCE: from the above table 80% of people wanting car and 20% do not
want a car.

SOURCES OF INFORMATION

The below table show from where did the respondent get the information about the car

Sources of information No of respondents

Offers 15
Advertisement 27
Referred from friends and relatives 33
Technology 10
Finance schemes 15
Total 100

SATISFACTION WITH HYUNDAI COMPANY LTD

HYUNDAI performance mileage features Price Pick reliability Brand

up image
Excellent 10 25 24 2 5 8 20
Very good 25 24 15 18 6 2 20
Good 10 21 25 12 15 35 25
Average 21 10 10 14 5 6 8
Poor 0 2 1 8 2 3 1
INFERENCE:

From the above table 15% of people khown from offers, 27% of people known
from advt,33% of people known from their frds and relatives,10% of people
known from technology,15% of people known from finance schemes

PERFORMENCE:

The following table show that some of the brands of car respondents selected performance as their main
motive.

BRAND NO OF RESPONDENTS
Hyundai 32
maruti Suzuki 35
Tata 30
Mahindra 3
TOTAL 100

INFERENCE:

The above table show that maruti and tata company are the competitors with
Hyundai car

PRICE:

The following table show that some of the brands of respondents selected price as
their main motive
BRAND NO OF RESPONDENTS
Hyundai 31
maruti Suzuki 42
Tata 9
Mahindra 18
TOTAL 100

INFERENCE:

The above table show that maruti company are the competitor with Hyundai
company
PICK UP:

The following table shows that some of the brand of respondents selected pick up
as their main motive

BRAND NO OF RESPONDENTS
Hyundai 30
maruti Suzuki 10
Tata 10
Mahindra 50
TOTAL 100

INFERENCE:

The above table show that Mahindra company cars have more pick up as compare
to other .
LOW MAINTENANCE :

The following table show that some of the brands of respondents selected
maintenance as their main motive.

BRAND NO OF RESPONDENTS
Hyundai 30
maruti Suzuki 40
Tata 10
Mahindra 20
TOTAL 100
INFERENCE:

The above table show that Maruti company cars have less maintance as compare
to other .

BRAND IMAGE:

The following table shows that some of the brands of respondents selected brand
image is their main motive

BRAND NO OF RESPONDENTS
Hyundai 40
maruti Suzuki 20
Tata 10
Mahindra 30
TOTAL 100
 CONCLUSION

 45% of the respondents are Hyundai customers and hence it is most

preferred car brand out of various brands.

 40% of the respondents are know Hyundai cars have there good brand
image.

 Most of the respondents are getting information through friends before

purchasing there for use.

 Most of the respondents are wanting good satisfaction with dealer service
comparing to other brands.

 Most of the respondents are giving more preference to maintance.

 Most of the people said Hyundai car has good pick up.

FINDINGS

 50% of the Hyundai Ltd customers are business people and 32% of the
customers are private employees
 Most of the respondents belong to the age group of 18-45years.
 Hyundai i20 is the most preferred model in the Hyundai
 Most of the respondents getting information through the Media and friends
before purchasing the vehicle.
 Most of the respondents are motivated by their friends and family members.
 Most of the respondents have good satisfaction with the performance of their
car strength.
 64% of the respondents are satisfied with the mileage of their car.
 Most of the respondents felt that the price is reasonable.
 Cent percent of the respondents satisfied with the response of the sales
executive at first visit.
 60% of the Hyundai Ltd users have good satisfaction with the performance
given by the company.
 Most of the respondents are satisfied with the response of the company to
the complaints given by the customers.
 Most of the respondents are satisfied with the fulfillment of promises by the
company.

SUGGESTIONS

 The cars recently introduced by hyundai Ltd are mostly concerned about
home base. So, they should also consider commercial people while
manufacturing.

 Indian market is a price sensitive markets the cars should be at Minimum

price with maximum quality.

 The standard of pricing should be improved.

 Advertisements in Televisions, offers should be increased to attract the

People.
  If Hyundai Ltd can improve in Performance and brand image it will be the
best in all the other competition brands

Bibliography

Text Books
Consumer Behavior: Albert J. Dells Bittas
Consumer Behavior: David L. Loudon
Principles of Marketing: Philip Kotler
Marketing Management: Philip Kotler

Websites:
www.consumerbehavior.com
www.hyundai.com

malwa.hyundaimotor.in

http://www.oxforddictionaries.com/definition/english/culture
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pp. 127 – 140.

Backhaus, K. Hillig, T. and Wilken, R. (2007) “Predicting purchase decision with different
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Batra, S.K. & Kazmi, S. (2008) “Consumer Behaviour” 2nd edition, EXCEL Books

Blackwell, R., Miniard, P. and Engel, J. (2006) “Consumer behavior”, Mason: Thompson

East, R., Wright, M. & Vanhuele, M. (2013) “Consumer Behaviour: Applications in Marketing”
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Hoyer, W.D. & Macinnis, D.J. (2008) “Consumer Behaviour”, 5th edition, Cengage Learning

Hoyer, W.D., Macinnis, D.J. & Pieters, R. (2012) “Consumer Behaviour” 6th edition

Kacen. J. J. and Lee. J. A., (2002) “The influence of culture on consumer impulsive buying
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Kahle L.R. and Close, A. (2006) “Consumer Behaviour Knowledge for Effective Sports and
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Kotler, P. (2012) “Kotler on Marketing” The Free Press

Meldrum, M. & McDonald, M. (2007) “Marketing in a Nutshell: Key Concepts for Non-
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Neal, C., Quester, P. and Pettigrew, S. (2006) “Consumer Behaviour: Implications for Marketing
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QUESTIONNAIRE

1- NAME:-

2- AGE:-

(a)18-25 (b)25-35 (c)35-45 (d)above 45

3- GENDER

(a) Male (b)female

4- EDUCATION

(a)under graduate (b)graduate (c)post

graduate
 5- OCCUPATION

(a)student (b)business (c)govt employee (d)private

employee

6- INCOME PER MONTH

(a)5000-10000 (b)10000-20000 (c)20000-30000 (d)30000-4000

(e)above 40000

7- DO YOU HAVE OWN CARE

(a)yes (b)no

8- IF YES,WHICH BRAND YOU HAVE

(a)Hyundai (b)maruti suzuki (c)tata (d)Mahindra (e)_____________

9-WHAT IS THE MAIN MOTIVE BEHIND PURCHASING THAT BRAND

(a)performance (b) features (c)price (d)transport (e)brand

image (f) reliability

10-IN WHICH WAY YOU PREFERED IN BUYING THAT PERTICULAR BRAND CAR

(a)advt (b)refered from friend & relatives (c)

technology (d)finance schemes (e)offers

11-RANK YOUR CAR IN 1TO 5 NUMBERS

PERFORMANCE

MILIAGE

FEATURES

PRICE

PICK UP

RELIABILITY
BRAND IMAGE

12-IF YOU DON’T USE CAR,THEN WHICH BRAND YOU PREFER TO BUY

13- WHAT IS THE REASON FOR SELECTING THAT BRANDS

(A)performance (b) features (c)price (d)transport (e)brand image (f) reliability

14- IN WHICH WAY YOU PREFERED IN BUYING THAT BRAND CAR

(a)advt (b)refered from friend & relatives (c) technology (d)finance schemes
(e)offers