Major Project Report

On

“Study on Consumer Perception towards Car Marketing”

Submitted in partial fulfilment of the requirements

For the award of the degree of

Bachelor of Business Administration (BBA)

Guru Gobind Singh Indraprastha University, Delhi

Guide: Dr, Saloni kalra Submitted by: Ravi Kumar

Designation: Professor Roll no.:04821401715

(Jagannath International Management School)

Batch (2015-2018)

1
 CERTIFICATE

This is to certify that Mr. Ravi Kumar a student of JAGANNATH INTERNATIONAL

MANAGEMENT SCHOOL NEW DELHI has completed project work on “STUDY ON
CONSUMER PERCEPTION TOWARDS CAR MARKETING” under my guidance and
supervision.

I certify that this is an original work and has not been copied from any source.

Signature of Guide

Name of Project Guide

Date-

2
 DECLARATION

I hereby declare that this Project Report entitled ‘STUDY ON CONSUMER PERCEPTION
TOWARDS CAR MARKETING’ submitted in the partial fulfillment of the requirement of
Bachelors of Business Administration (BBA) of JAGANNATH INTERNATIONAL
MANAGEMENT SCHOOL NEW DELHI is based on primary data and secondary found by
me in various departments, books, magazines and websites & Collected by me.

DATE: Ravi Kumar

BBA (2015-2018)

Enrollment No.04821401715

3
 Executive summary

The automobile industry today is the most lucrative industry. Due to the increase in
disposable income in both rural and urban sector and easy finance being provided by all the
financial institutes, the passenger car sales have increased at the rate of 38% per annum in
June 2005-06 over the corresponding period in the pervious year. Further competition is
heating up in the sector with a host of new players coming in and other like Porsche, Bentley,
Audi, and BMW all set to venture in the Indian markets. One factor that could help the
companies in the marketing of their product is by knowing and creating a personality for
their brands.

This report attempts to answer some of the questions regarding brand personality of selected
cars in India by conducting the market research. This report is categorized into parts, deals
with introduction to brand personality, companies selected, product and the industry.

The automobile industry today is the most lucrative industry. Due to the increase in
disposable income in both rural and urban sector and easy finance being provided by all the
financial institutes, the passenger car sales have increased at the rate of 25% per annum in
June 2005-06 over the corresponding period in the previous year. Further competition is
heating up in the sector with a host of new players coming in and others like Porches,
Bentley, Audi, and BMW all set to venture in Indian markets. One factor that could help the
companies in the marketing of their products is buying Behavior of the consumers. The
Buying Behavior of the customers can be studied by knowing their perceptions about the cars
in the market and about the possible entrants in the market. One such technique is by
knowing and creating a personality for the brands.

4
 TABLE OF CONTENTS

S No Topic Page No
1 Certificate 2
2 Acknowledgements 3
3 Executive Summary 4
4 Chapter-1: Introduction 6
Chapter- 1.1 Introduction to Industry
Chapter- 1.2 Introduction to Company
5 Chapter-2: Conceptual Discussion 16
6 Chapter-3: Research Methodology 21

3.1 Title
3.2 Title Justification
3.3 Objective of study
3.4 Research Methodology
3.4.1 Research Design- Exploratory/ Descriptive/
Experimental
3.4.2 Data Collection-
• Primary Data
• Secondary Data
3.4.3 Sampling
• Sampling Technique
• Sampling Design
• Sample Unit
• Sample Area
• Sample Size

3.5 Data Analysis Tools- Graphs, Chart, Percentage etc

3.6 Limitation of Study

7 Chapter-4: Data Analysis 26

8 Chapter-5: Findings 43

9 Chapter-6: Suggestions/ Recommendations 45

10 Conclusions 47

11 References/Bibliography 49

12 Appendices- Questionnaire 50

5
 Chapter-I
Introduction to the problem

6
It is fact that if you are satisfied you recommended to others. Word of mouth and customer
satisfaction play a very important role in determining market perception about an automobile.
It is the market perception that determines the success of a company and so it is very
important for the car manufacturers to measure the “willingness of existing users of a product
to recommend it to others”. The same is a lot of interest to customers as well for it helps them
make the purchase decision.

“What makes the perfect car that influence will willfully purchase?”

The project highlights the factors that influence the buying decision of a consumer.
The factor under consideration would be:
 Price
 Income of the consumer
 Features in the car
 Safety standard
 Warranty scheme
 Finance facility

Values

+ Benefits -

Features - Attributes

We cannot begin to address the customer satisfaction issue we define the parameters and
measures clearly.

7
The buying process involves the following steps:
Problem
Recognition

Information search

Evaluation

Decision

Buy

Post Purchase
Dissonance

Dissatisfaction = Satisfaction =
Brand Rejection Brand Acceptance

“The fact that word of mouth sales are a big deal in this industry has also helped. Industry
players and market surveys reveal that 20-30 percent of sales are through word of mouth”.

For the purpose of the project has undergone through

 Surveying the relevant consumer base through exhaustive questionnaire.

 Understand the elements underplaying in each segment
 Deducing A analytical overview through different statistical methods

8
Recommendation comes from satisfaction and satisfaction comes from

Product Quality Service Quality

Relationship
Quality

Overview of the auto segment

Indians have emerged as avid car enthusiasts sporting their prized possessions as status
symbols and speed machines. Foreign car companies have discovered the Indian consumer as
well as the R & D potential in the Indian technical fraternity and are setting up manufacturing
plants right and left across the country at lower costs. The Indian automobile industry is
currently experiencing an unprecedented boom in demand for all types of vehicles. This
boom has been triggered primarily by two factors:

(1) increase in disposable incomes and standards of living of middle class Indian families
estimated to be as many as four million in number; and

(2) The Indian government's liberalization measures such as relaxation of the foreign
exchange and equity regulations, reduction of tariffs on imports, and banking liberalization
that has fueled financing-driven purchases.

9
Industry observers predict that passenger vehicle sales will triple in five years to about one
million, and as the market grows and customer's purchasing abilities rise, there will be
greater demand for higher-end models which currently constitute only a tiny fraction of the
market. These trends have encouraged many multinational automakers from Japan, U. S. A.,
and Europe to enter the Indian market mainly through joint ventures with Indian firms.

India is increasingly becoming a global automotive hub both for the vehicles and component
industry. India is fast integrating itself into the world economy and open to international
automotive companies, who are increasingly investing in India.

Industry size

 The domestic Indian passenger car market (including utility vehicles) totaled 900,000 units
(with a CAGR of 10 per cent over the past 4 years) while the exports were 130,000 million units
(with a registered CAGR of 68 per cent over the past 4 years) during financial year 2004

 The Indian two-wheeler Industry is one of the largest in the world, and is expected to maintain
robust growth in the future.

 At the back of this phenomenal automotive growth is the success of the Indian auto component
industry. Presently a US$ 6.7 billion industry, it is expected to almost treble in less than eight
years time to US$ 17 billion by 2012

 India offers a distinct technological and cost-competitive advantage, which global Original
Equipment Manufacturers (OEMs) and automotive suppliers are leveraging for both
manufacturing and research facilities. The passenger car market is projected to grow at a CAGR
of 12.3 per cent over the next few years. Growth in the mid-size and premium car segments is
expected to outpace the overall market growth.

10
Indian Automobile Industry

11
Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in
the automobile industry in India are attracting big names with the big purse and they are
investing vigorously in infrastructure, design and development, and marketing. Automobile
industry in India is today poised for the big leap.

 India is the 2nd largest two wheeler manufacturer in the world

 Second largest tractor manufacturer in the world
 5th largest commercial manufacturer in the world
 3rd largest car market in Asia, surpassing China in the process

Automobile industry Contributes 17% of the total indirect taxes collected by the exchequer &
is a driver of product and process technologies, and has become a excellent manufacturing
base for global players, because of its

 high machine tool capabilities

 Extremely capable component industry
 Most of the raw material locally produced
 Low cost manufacturing base
 Highly skilled manpower
 Special capability in supplying large volumes

12
Indian Automobile Manufacturers in India and Plant Locations

Domestic and Foreign Vehicle Manufacturers:

Passenger Vehicles

The main domestic manufacturers of passenger vehicles are as follows:

 Maruti Udyog
 Tata / Telco
 Mahindra / Mahindra
 Hindustan Motors

Foreign competitors manufacturing locally including Hyundai, Ford, General Motors,

Honda, and Toyota.

13
Car demand has seen a turnaround since mid 2001 thanks to heavy discounts and
cheaper finance. A large number of new models, both locally assembled and imported,
have also revitalized the market.

In terms of volumes:
 The A/B segments are where India’s strength and future lies. The A/B segment
accounts for over 65% of the total passenger vehicles produced. Competition in this
segment is stiff with Maruti the market leader with around 55% market share. New
models from Telco (Indica), Hyundai (Santro) and Fiat (Palio) however are eroding
Maruti’s long standing dominance in this segment.

 The mid / luxury range is developing with the introduction of Ford (Ikon), Hyundai
(Accent/Sonata) and Skoda (Octavia), although the volumes are not significant.

 The UV segment remains sluggish with growth at just over 1%. The clear market
leader, Mahindra (44% market share) posted increased sales of 9% in the first 3
quarters of 2002/03. Toyota and Telco domestic UV business remains flat.
Commercial Vehicles

The main Indian companies in the Commercial Vehicle segment are:

 TATA Engineering and Locomotive Company (TELCO)

 Ashok Leyland
 Bajaj Tempo Ltd
 Eicher Motors Ltd
 Swaraj Mazda

There is only one international company currently manufacturing CVs in India, Volvo but
again volumes are not large. Other global players are active, although in partnership with one
of the domestic manufacturers E.g.:- IVECO (manufacturing their range of trucks in
association with Ashok Leyland.

14
There has been a significant turn around in this segment over the last 18 months with over
30% growth being seen in terms of both production and sales.

Automobile Manufacturers Market Share

Passenger Cars LCV
0.604 Mn 0.083 Mn

Hyundai Bajaj
Tempo Eicher HM
18% Ashok
Tata 7% 8% 2% M&M
Leyland
13% 30%
Fiat 1%
4%Ford
3%
HM
Maruti
2%
55% Honda Tata Swaraj
Toyota GM2%
0.3%Daimler
44% Mazda
Skoda1%
Mitsubish
Chrysler 8%
i 1%
0.2%
1%

15
 Chapter-II
Literature Review

16
Review of literature is the effective evaluation of selected literature on a research topic. It is
an essential part of the research process. It provides a background to the study being
proposed.

Verma and Madan (2011) in a study conducted in Indian context highlighted that retailers
are offering newer service dimensions to create unique shopping experiences for the
customers. However, whether consumers are able to perceive newer service dimensions and
getting affected for store patronage in new store formats or not, remains to be found out.
They emphasized the fact that Indian retail environment is going through a sea change due to
the introduction of new formats and opening up of retail industry, it becomes important to
understand the store image perceptions of consumers here. The study attempted to find out
the key factors that are perceived as important to Indian consumer in evaluation of a retail
format.

Jayawardhena (2011) in a study conducted in Central India, tested a conceptual model of

the effects of customer and service orientation (SO) behaviours of individual retail
employees on individual customers’ perceptions of service encounter quality (SEQ), service
quality (SQ), value, satisfaction, and behavioural intentions (BI).The sample was customers
of a supermarket in central India, and they completed questionnaires following mall
intercept. To test the hypotheses, structural equation modelling was employed. They found
that service and customer orientation (CO) behaviours are positively related to SEQ and SQ;
SEQ is positively related to SQ and customer satisfaction; SQ is positively related to value
perceptions and customer satisfaction; and customer satisfaction is positively related to retail
customers’ BI. However the study found that value is not related to customer satisfaction.

Ghosh, Tripathi and Kumar (2010) in their study conducted in Indian context, attempted to
address issues related to store attributes and their relevance in the store format selection.
Eleven variables (store attributes) had been identified based on theory and judgment. Factor
analysis had yielded three factors: Convenience and Merchandise Mix, Store Atmospherics,
and Services.

17
Ali, Kapoor and Janakiraman (2010) in a study conducted on households of Gomtinagar
area of Lucknow city analyzed a marketing strategy for a modern Food and Grocery market
based on consumer preferences and behaviour. The researchers personally surveyed a total of
101 households having sufficient purchasing power using structured questionnaire. The
results indicated that preferences of the consumers were their priority for cleanliness and
freshness of food products followed by price, quality, variety, packaging, and availability of
non-seasonal fruits and vegetables. It was found that the consumers' preferences of
marketplace largely depend on the convenience in purchasing at the marketplace along with
the availability of additional services, attraction for children, basic amenities, and
affordability.

Hemalatha, Ravichandran and Lakshmi (2010) found that there is a dearth of tested
instruments which could measure customer-perceived service quality of a retail store in the
Indian context. In order to understand the driving factors of a typical Indian retail customer,
the key objective of their study was to empirically test the service quality dimensions. The
study also carried out the gap analysis and identified the areas for improvements in retail
service quality.

Chakraborty (2010) in a study conducted in Hyderabad, India identified the driving

shopping motives of Indian consumer for Discount store formats. Factor analysis extracted
three shopping motives, two of which related to hedonic shopping motive and one to
utilitarian. The factors were named as diversion, socialization and utilitarian. Other three
dimensions of the study were store attributes, shopping outcomes, and shopping perceived
cost. Under each dimension, factors related to Discount store were identified.
Seock and Lin (2010) examined the cultural influences on young consumers’ loyalty
tendency and evaluations of the relative importance of apparel retail store attributes in
Taiwan and the USA. A structured questionnaire was developed to collect the data.
Factoranalysis was employed to identify dimensions of apparel retail store image attributes.
Multivariate analysis of variance and hierarchical multiple regression analysis were used to
examine the hypotheses. Results of the study showed that American consumers have

18
significantly greater collectivistic characteristics than Taiwanese. The study also found that
country of residence is a significant and stronger indicator in predicting loyalty tendency than
individualism and collectivism dimensions. The results of the study showed that evaluation
of the relative importance of retail store attributes is influenced by culture. Among the five
apparel retail store attribute dimensions identified in the study, Taiwanese and US
respondents’ evaluation of the importance of “convenience”, “product” and “information
communication” factors of retail store image attributes differed significantly.

Paswan, Pineda and Ramirez (2010) in a study conducted in Mexico investigated whether
influx of large stores is inevitable, by focusing on consumers' motivation for selecting a retail
store, and the association between these motivation dimensions and the shopping patronage.
The results indicated that consumer's preference for small stores is positively motivated by
functional benefits and familiarity with small stores; and negatively associated with the
functional benefits offered by large stores. These motivational dimensions were also found to
be positively associated with the share of wallet spent at small stores. It was found that
gender exhibited mixed effect on preference for small stores and the share of wallet. The
study revealed that women feel that large stores provide better functional benefits and
support for the local economy.

Huddleston, Whipple, Mattick, and Lee (2009) in their study conducted on US

households, compared and contrasted customer perceptions related to satisfaction with
conventional grocery stores as compared to specialty grocery stores. Their study examined
store attributes of product assortment, price, quality and service in order to determine which
attributes had the greatest impact on store satisfaction for each store format. The results
showed that perception of satisfaction were higher among specialty grocery store customers
compared to conventional grocery store customers. For both store formats, the study found
that store price, product assortment, service and quality positively influenced satisfaction.
Stepwise regression indicated that each store attribute contributed differently to store
satisfaction for conventional and specialty store formats.

19
Mittal (2009) compared the consumer evaluation of store attributes for grocery and apparel
retail segment. The author emphasized that the retail format which represents the right mix of
various store dimensions, will eventually depend upon the interplay between various store
attributes. This study used a research instrument developed by the author in an earlier study
for the comparative analysis. A very significant pointer from this research was that while
there is some commonality of attributes between retail sectors, the precise importance and
mix is, arguably, determined more by the motivation of the customer behind each specific
shopping excursion. The grocery and apparel store attributes dimensions that had emerged
from this study proved that the factors were different in terms of their composition and
importance.

20
 Chapter-III
Research Methodology

21
3.1 Title

“CONSUMER PERCEPTION TOWARDS CAR MARKETING”

3.2 Title Justification

"A careful investigation or inquiry especially through search for new facts in any branch of
knowledge."

3.3 Objective of study

❖
PRIMARY OBJECTIVE :-

Main objective of research study is the STUDY OF CONSUMER BEHAVIOUR

TOWARDS CAR MARKETING on the basis of the product feature and schemes of
the Magazines.
❖
SECONDERY OBJECTIVE:-

1. To study consumer behavior of car users.

2. To find out expectation of customers in current scenario.
3. To know the problems of customers and resolve them.

3.4 Research Methodology

Research is an original contribution to the existing stock of knowledge making for its
advancement search of knowledge through objective & systematic method of finding
solution to the problem of research. Every project requires genuine research. Success of any
project & getting genuine results from that depends upon the research method used by the
research.

The faction that provide base to the research are:

• Desire to get a research degree along with its consequential benefits.

• Desire to face challenge in solving the unsolved problem.

22
 • Desire to get intellectual joy of doing some creative work.
• Desire to be of service to the society.

3.4.1 Research Design-

Descriptive Research Design is used in my research

3.4.2 Data Collection-

 Data collection is a term used to describe a process of preparing and collecting data.
 Systematic gathering of data for a particular purpose from various sources, that has
been systematically observed, recorded, organized.
 Data are the basic inputs to any decision making process in business.
 The study is mainly based on the data collection from primary as well as
secondary sources.
 The study is mainly based on the data collection from primary as well as
secondary sources.

Primary data

 The data which are collected from the field under the control and supervision
of an investigator.
 Primary data means original data that has been collected specially for the purpose in
mind.
 This type of data are generally a fresh and collected for the first time.
 It is useful for current studies as well as for future studies.
 For example: your own questionnaire.

Secondary data

 Data gathered and recorded by someone else prior to and for a purpose other
than the current project.
 Secondary data is data that has been collected for another purpose.
 It involves less cost, time and effort.
 Secondary data is data that is being reused.

3.4.3 Sampling

• Sampling Unit
The first step in developing any sample design is to clearly define the set of
objectives technically called universe to be studied. The universe of my study
includes markets of vehicles.

23
 • Sample Size

This refers to the organizations surveyed. As large samples are more reliable and my
area of research was mobile companies to get the response of their employees,
therefore:

Sample Size : 100

Type of Question : Close-ended & Open-ended

Instrument Used : Questionnaire

Area covered : Delhi NCR

• Sampling Technique
This refers to procedure by which the organizations have been chosen. This is:
Non-probability Sampling
Convenience Sampling

• Scope of Study

The fundamental to the success of any formal research is sound research design.
Descriptive Research Design is used in my research. The scope of the research is to
study the Effectiveness of Promotional Schemes launched by different newspapers
for targeting students.

• Area of Study

Area of my research is Delhi NCR

3.5 Data Analysis Tools-

Graphs, Chart, Percentage etc.

3.6 Limitation of Study

24
 • The field work for the purpose of research was limited to some part of the Delhi only.
Therefore, it may not symbolize the overall consumers as perceptions of the
consumers may vary place to place due to demographic factors.
• The sample size is 100.
• The sample size taken is too small to analyze the data accurately and effectively.

• Time is one of the major constraints of the research.

• The study is based on primary data collected and not on the secondary data, therefore
data is collected through online survey, so any wrong or incorrect information given
by the respondents may mislead or delude the findings of the research.

• The data is collected from the customers or the end users are qualitative in nature that
views perception, options etc, these factors generally changes from time to time.

On the other occasion consumers were reluctant to give information, because they were busy.

25
 Chapter-IV
Data Analysis

26
Q1. Why you bought your present car? Please rank from the highest order of preference.

1. Increase in disposable income

2. Better safety at roads
3. Family needs
4. Increase in family size
5. Suits your lifestyle and personality

Motives For buying a car

40

35
39
30

25

20
23
Series1
15
17
10
12
5 9

0
In cre a s e in Be tte r s afe ty Fam ily n e e d s In cre a s e in Su its yo u r
dis po s able at ro ads fam ily s ize life s tyle an d
in co m e pe rs o n ality
Motives

Interpretation:

As per the analysis shows, increase in disposable income seems to be the most important
reason for buying a car. This trend is reflected in the growth of the Per capita Disposable
income and consequently the growth of the Indian automobile industry especially in the
B and C segment cars. Similarly, the growing family needs like working partners,
increasing family size, status, etc. add to the motives of buying a car.

27
Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of
your preference)

1. Affordable price
2. Technical superiority over competition
3. Comfort
4. Manufacturer’s image
5. Value for money
6. Safety
7. After sale services
P ro d u ct Sp e cific Re a s o n s fo r B u yin g a Ca r

2
10

32

Afforable prices
Technical superiority
Comfort
Manufacturer's image
28
Value for money
Safety
After sale services

9
12

Interpretation:

Indian market is still the hard nut to crack for most of the automobile manufacturers.
Though the Indian car industry is among the fastest growing car markets of the world still the
Indian psyche is too complex for the manufacturers to understand. The most important reason
for buying a car when it comes to B and C segment cars seems to be ‘value for money’. 32%
of the respondents suggested that affordable prices are the most important factor while
purchasing a car. This is the reason for sticking to a particular segment till the next
substantial rise in the personal disposable income. This reason is followed by ‘Value for
money’ where the customers look for the best product, best services and best repute all
bundled in one with the best deal they can strike.

28
Product Satisfaction Level

Q3. Please rate your existing car in terms of understated Interior Design features on a scale
of 1 to 5 where

1 Highly Dissatisfied
2 Dissatisfied
3 Neutral
4 Satisfied
5 Highly Satisfied

Interior Type
Seats design
Leg Room
Dash Board
Interior Color
Music System
Adjustable Front seat Headrest

In te rio rs fo r S e gm e n t B ca rs

100%

3 3 3 3 3 3
3

80% 1 1 1 1
1 3
4

4 4 4 Adjustable Front Seat Headrest

4
4
Level of satisfaction

4 Music System
60% 4 Interior Colour
Dash Board
3 3 Leg Room
3 4
3 4 Seat Design
3
40%

4 4
4 3
3 4 4

20%

4 4 4 4 4
3 3

0%
Maru ti Maru ti Ma ru ti In d ica Ave o S an tro Ge tz
Es tilo W a go n S w ift V2 Ca rs
R

29
 Interpretation:

Interiors play a very important role in deciding the sale of a car. More plush, comfortable
and exotic the interiors are more are the chances of its being popular among the customers.
For this reason manufacturers spend billions of dollars every year on R&D to continuously
improve the interiors of their cars. Seats, leg room, dash board, armrests etc are few of the
options which count for the interiors. As the analysis show Getz scores substantially high
w.r.t. its counterparts on the account of music system installed. Similarly, Indica V2 races far
ahead as far as leg room is concerned. However, Wagon R fares badly on this front. Overall,
almost all cars get a mixed response in this segment as far as the interiors are concerned.

30
Q4. Please rate your existing car in terms of understated Safety features on a scale.

Safety Parameters
Crossbar under Dashboard
Air Bags
Anti-Lock Breaking System
Aerodynamic Shape
Intensity of front lights

Customer Satisfaction on the Safety Parameter

100%

90% 3
3 4
4 5 4 4
Cus to m e r Satis factio n Le vel ( %age )

80%

3
70%
3
3 5
60% 4 4 4 Intensity of front light
Aerodynamic Shape
50% 4 ABS
Air Bags
3
40% 3 Crossbar under Dashboard
3 4 3 4
30%
1 3
1
1 1
20% 1 1

10% 3 3 3 3
3 3 3

0%

Maru ti Ma ru ti Maru ti In d ica Ave o San tro Ge tz

Es tilo W ago n Sw ift V2
(9 ) R( 2 3 )
Sa fe ty Param e te rs o f Diffe re n t cars

Interpretation:

As can be noted Maruti Swift and Indica V2 fight neck to neck on almost every front, with
Indica marginally better in features like crossbars under the dashboard and Anti Brake
systems. Most of the cars in this segment fare relatively similar and very close to each other
on most of the fronts.

31
Q5. Please rate your existing car in terms of following parameters

Parameter
Fuel Consumption
Mileage ( Km/ltr)
Pick Up
Stability at higher speed
Top speed

Customer Satisfaction Level on the Fuel Efficiency

100%

90% 3 3
3 4 4 4
4
80%

70%
3
Customer Satisfaction Level ( %age)

4
3
60% 4 5
4 5 Stability at higher speed
Pick up
50%
Mileage
4 Fuel Consumption
40%
3
4
4 3
30% 3 4

20%
4
3
10% 3 3 3 3 3

0%

Maruti Maruti Maruti In dica Aveo Santro Getz

Estilo Wago n Swift V2
(9 ) R(23)
Cars' Fuel Efficiency Param eters

Interpretation:

32
The customer choice of the car highly depends upon the performance and maintenance costs
of the car. This is the reason why this class of parameter was chosen for this study. And the
results show that Maruti’s Wagon R fares the best car in its segment as most fuel efficient car
of all. Similarly, Wagon R fares the best on the terms like mileage but it lags behind
Hyundai’s Santro on pick up front. So this segment shows a mixed bag of response for the
Fuel efficiency and mileage parameter. Indica V2 performs consistently on all the parameters
and Getz fares really well on pick up whereas it fares badly on fuel consumption. Considered
this condition for Getz it should be seen as a red signal for the manufacturers so that Getz
does not end up being like Fiat’s Palio famous as a car for ‘drinking petrol.

Dealer Service Satisfaction Level

33
Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where

1 Highly Satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
5 Highly Dissatisfied

Distance ( Proximity)
Advertisements (Promotions)
Technical Facilities
Cost of Service
Availability of Spares
Information Provided
Service Time
Charges
Staff
Car Handling ( Delivery & service)
Assured Customer Transactions
Ambience of Service Center
Finance ( Credit) Schemes

Dealers are the middle men between a car manufacturer and its customers. Dealer thus
becomes the most important link in joining the company to its customers as he is the person
who will sell the product, will deliver it and will keep on providing the after sales services to
the customers as and when required. So, it becomes necessary automatically to study dealer
as a part of customers’ satisfaction journey with the product called car!

Why Maruti fares so well ahead of its competitors till date and its the largest car company in
India with the largest market share in A and B segment is because during the protected
regime it build a dealers network so strong that its yet very difficult for most of the
competitors to set up a network as large as Maruti. So wherever you go its not difficult to
find a Maruti service station and a Maruti dealer. This is how Maruti has maintained
relationships with its customers and has been able to convert most of them into a repeat

34
customer. So, dealer network is something of such importance that while studying the
customer’s satisfaction profile its almost impossible to ignore it.

35
 Customer Satisfaction Level on the Basis of Dealers

100%

90% 2 3 3
4 4 4 5 4 4 4 4
Customer Satisfaction Level ( in %age terms)

4 5
80%
1
70% 4 2
3 2 4
2 4 4 4
60% 5 Hyundai
4 5
3 General Motors
50%
3 4 4 Tata Motors
4 4
40% 4 Maruti Suzuki
4 4 4 4 4
4
30%

20% 5 4
5 5 5 4 5
4 4 4 4 4 4
10%

0%

Dealers releated param ete rs fo r diff Man ufacturers

Interpretation:

While buying a car, dealers ‘choice play a very important role in deciding the company and
model’s choice. So dealers act as influencers on the complete buying behavior of the
prospective customers. Among all the listed factors Maruti fares the best among all its
counter parts in terms of dealer density which is quite obvious. Also, the cost of service
provided by Maruti dealers is the lowest followed by Tata Motors. Similarly, for B and C
segment cars Maruti emerges out as the clear winner among the four car companies studied
all thanks to the vast, extensive and well managed dealer system.

36
Q2. How do you rate the brand image of your car?

1 2 3 4 5
Very Low Very High
Brand Image

5
Cu s to m e r Pe rce p tio n ( Avg)

3 Series1

5
2 4 4 4
3 3 3
1

Ma ru ti Ma ru ti Ma ru ti In dica V2 Ave o S a n tro Ge tz

Es tilo W a go n R S w ift
Ca r Bra n d s

Interpretation:

As per the analysis, Santro is the car whose brand image is most preferred in the market. This
is because of the reason, that it’s from the house of Hyundai a South Korean company known
for its overall image. On the contrary Maruti Estilo and Aveo share the same platform on the
brand image. This can be attributed to the fact that both these cars are relatively new on the
block and market takes time to imbibe and give the brand an image. This is established by the
fact that Maruti’s Wagon R and Swift are exactly the same as far as the image is concerned.

37
 Customer Perception of Different Cars

5
Cu s to m e r Pe rce p tio n ( Avg)

3 Series1

5
2 4 4 4 4
3 3
1

Es te e m Ba le n o In digo In d igo Op tra Acce n t Ve rn a

Ma rin a
Ca r Bra n d s

Interpretation:

As the analysis reveals GM’s Optra fares as the Best Car as far as customers’ perception is
concerned about the brand image of the car in the C segment. This is because of the fact that
GM itself commands an amazing brand image among its customers. Accent and Verna both
Hyundai cars share the same position.

38
Q3. Will you recommend your car to your friends?

 Yes
 No

Customer's Ultimate Perception

80
73
70

60

50
Frequency

40

30 27

20

10

Ye s No
Customer Action ( Will you recommend your car to your friends?)

Interpretation:

It seems logical that satisfied customers will someday become loyal customers, in other
words there is a positive correlation between customer satisfaction scores and customer
buying behavior. If a customer rates the car very high in satisfying his or her needs, the car
manufacturer should expect more referrals and this is reflected in the analysis that 73%
customers say that they will refer their car to their friends even if they move to other segment
or other brand.

39
Q4. Will you buy your new car in the

 Same segment , same manufacturer

 Same segment, different manufacturer
 Upper segment, same manufacturer
 Upper segment, different manufacturer

Customer Perception

40

35

30
12

25
Values

7 C
20 6
B

15 7

23
10
17 17

5 11

Sa m e Se gm e n t, Sa m e Se gm e n t, U pp e r U pp e r
s am e diffe re n t S e gm e n t, Sa m e Se gm e n t,
m a n u fa ctu re r m a n u fa ctu re rs Ma n u fa ctu re r D iffe re n t
Ma n u fa ctu re r
Customer Actions

Interpretation:

The analysis shows that most people when moving to upper segment will prefer a different
manufacturer. And the next striking finding is that the customers will prefer both same and
different manufacturers in the B segment cars and there is not much difference in the C
segment also. This behavior is complex to understand as this are the customers who have
given whopping response for recommending their car to their friends. It’s the reason why
brand perception is so difficult to understand.

40
Demographics

age group
<21
21-35
36-55
>55

17
20

21

41

I surveyed around 100 people who belonged to various age groups. The survey of 4 age
groups was done. The four age groups were:
 Less than 21 years
 21 -35 years
 36-54 years
 More than 55 years

41
MONTHLY FAMILY INCOME

monthly family
income
<50,000
50,001-1,00,000
1,00,001-2,00,000
>2,00,001

19

33

19

28

I surveyed around 200 people who belonged to various monthly family income groups. The
survey of 4 income groups was done. The four income groups were:
 Less than 50000
 50000 - 1,00,000
 1,00,001 – 2,00,000
 More than 2,00,001
Interpretation:

Above graphs exhibits the income bracket of the sample size, as evident the majority of the
sample is in the income bracket of < 50,000 a month income. Though none of the bracket is
highly skewed, this enables the study to be wide and not dependent on a set income class,
which was a fortunately desirable result of simple random sampling.

42
Chapter-V
Finding

43
• The price according to the quality of the cars is acceptable.
• Peoples have high demand for the development of services of the product.
• There is a tough competition among mid-segment cars in Delhi NCR as people have
purchased.
• Maximum people prefer small segment cars rather than sedan cars.
• On the occasion of any kind of festivals or schemes draw more customers.
• Schemes with gift like insurance, vouchers, cash back attract more customers.
• There are a large number of showrooms in Delhi NCR and most of them deals with
small and medium segment cars. That’s why the price and quality are specific to
customer centric.
• Peoples are extremely interested in mid segment cars but low awareness about the
schemes lead to low volume of selling.

44
 Chapter-VI
Suggestions/Recommendations

45
 As the report mentions there are clue in the market that the cars are on a path of
becoming commodities just like the fate awaits for any other consumer goods.

 So what can be the role and scope of brands and their personality in the changes
scenario to establish the brand perception of any car in the mindset of a customer
present or potential can be one area of study?

 On the close lines, another area of study can be the importance of advertisements and
promotion schemes on the brand image of any car brand?

 Are the brands which advertise more have a positively high brand perception or it’s
the sales promotion schemes which create the ripples in the mindset of the
customers.

 Get your business on e-mapping services such as Yahoo! Maps, Bing Maps and
Google Maps. Once you've done so, your company will come up when people search
for car dealers in your area.

 Run an incentive to get people into your showroom. Enter anybody that comes in for
a test drive into a competition.

 Offer something such as a vacation or car accessories as a prize. Advertise your offer
through your website, social media pages and traditional marketing activities.

46
 Conclusion

 To conclude, the results show that the companies are playing on the peripheral cues to
maintain their Total Relationship Management and connect to the customers both
present and potential.
 The companies are operating in a highly aggressive and competitive global market
place and this climate has led to the emphasis on quality in all aspects. TQM focuses
on integration and coordination as well as the continuous improvement of all
activities and processes.
 Total Relationship Management (TRM) is a very recent marketing strategy and
philosophy. It focuses on and is concerned with all integrated internal and external
activities within and between the organizations.
 These two terms are integrated by the manufacturers by building good quality
products and building good relationship with dealers and enhancing service levels.

 However, when studied from the point of view of a customer there seems to be no
major difference among the car brands in a segment as far as performance is
concerned.
 The brand perception is dependant mostly on the peripheral cues depending upon the
nature and quality of the service provided along with the pricing, maintenance,
availability of spare parts and related issues. So, a question arises here that is this the
end of road for the branding of cars?

 The study shows that brand perception is something which starts building up before a
car is purchased and goes on with its use and is reflected in the recommendations the
customer makes to his acquaintances for the same car.
 Also, its seen that the customer might not be using the car still he holds the
perceptions about it.

47
 Brand personality of a car is enforced by the sellers in the mindsets of the customers
and the customers react to it by forming their perceptions about the car and this
reflects in the overall brand image of the car. So brand image and brand personality
complement each other and the brand perception aids the building of brand image.

 Dealers, as per the study findings, play a very important role in building up the brand
perception of the cars.

 Since dealers are the connecting link between the customers and the manufacturers
thus becoming the most important link in joining the company to its customers as he
is the person who will sell the product, will deliver it and will keep on providing the
after sales services to the customers as and when required.

48
 References/Bibliography

Sites Visited -

www.siamindia.com
www.autocarindia.com
www.overdrive.com
www.hyundai.co.in
www.ibef.org

URL-
https://www.elkjournals.com/MasterAdmin/UploadFolder/STORE%20IMAGE%20AND
%20ITS%20IMPACT%20ON%20CONSUMER%20BEHAVIOR/STORE%20IMAGE
%20AND%20ITS%20IMPACT%20ON%20CONSUMER%20BEHAVIOR.pdf

https://scholar.google.co.in/citations?user=2fsZntMAAAAJ&hl=en

http://www.madrasi.info/india-cars.php?mid-segment-cars

https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/top-10-selling-cars-
uvs-in-jan-maruti-suzuki-omni-re-enters-after-5-months/57379793

Books consulted -

Building Strong Brands- David A Aaker

Everybody Writes: You’re Go-To Guide to Creating Ridiculously Good Content

Book by Ann Handley

SERVICES MARKETING: THE INDIAN CONTEXT

Book by R. Srinivasan

Agri-input Marketing in India

Book by Pingali Venugopal and Ram Kaundinya

Marketing Management: Text and Cases Indian Context

Book by Tapan K. Panda

Ogilvy on Advertising
Book by David Ogilvy

The Consumer Mind: Brand Perception and the Implications for Marketers
Book by Pepe Martinez

49
 Appendices

Questionnaire

For Customers:

Q1. Why you bought your present car? Please rank from the highest order of preference

1. Increase in disposable income

2. Better safety at roads
3. Family needs
4. Increase in family size
5. Suits your lifestyle and personality

Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order of
your preference)

1. Affordable price
2. Technical superiority over competition
3. Comfort
4. Manufacturer’s image
5. Value for money
6. Safety
7. After sale services

50
Product Satisfaction Level

Q3. Please rate your existing car in terms of understated Interior Design features on a scale
of 1 to 5 where

1 Highly Dissatisfied
2 Dissatisfied
3 Neutral
4 Satisfied
5 Highly Satisfied

Interior Type 1 2 3 4 5
Seats design
Leg Room
Dash Board
Interior Colour
Music System
Adjustable Front seat Headrest

Q4. Please rate your existing car in terms of understated Safety features on a scale of 1 to 5

Safety Parameters 1 2 3 4 5
Crossbar under Dashboard
Air Bags
Anti Lock Breaking System
Aerodynamic Shape
Intensity of front lights

Q5. Please rate your existing car in terms of following parameters

Parameter 1 2 3 4 5
51
Fuel Consumption
Mileage ( Km/ltr)
Pick Up
Stability at higher speed
Top speed

Dealer Service Satisfaction Level

Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where

1 Highly Satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
5 Highly Dissatisfied

1 2 3 4 5
Distance ( Proximity)
Advertisements (Promotions)
Technical Facilities
Cost of Service
Availability of Spares
Information Provided
Service Time
Charges
Staff
Car Handling ( Delivery & service)
Assured Customer Transactions
Ambience of Service Center
Finance ( Credit) Schemes

Q2. How do you rate the brand image of your car?

1 2 3 4 5
Very Low Very High

52
Q3. Will you recommend your car to your friends?

 Yes
 No

Q4. If yes, will you buy your new car in the

 Same segment , same manufacturer

 Same segment, different manufacturer
 Upper segment, same manufacturer
 Upper segment, different manufacturer

Age group:
 <21 21-35
 36-55 >55
What is your monthly Family income?
 Less than 50000
 Rs 50,000 –Rs 1, 00,000
Rs 1, 00,001– Rs 2, 00,000
More than Rs 2, 00,001

Number of car’s owned:

Present Car (s) owned:

NAME: SEX:

Phone NO:

53