A

DISSERTATION REPORT ON

“Consumer Purchase Behaviour of Two wheelers”

A report submitted in partial fulfilment of the requirement for the award of

degree of
Masters of Business Administration

By
Souvik Saha
MBA (2016-2018)
Marketing Specialization
UNI. ROLL NO. - 107/MBA/161097
UNI.REG NO. - 107-1121-0042-16

INDIAN INSTITUTE OF SOCIAL WELFARE AND BUSINESS MANAGEMENT

1|Page
 COLLEGE CERTIFICATE

It is to certify that Souvik Saha is a bonafide student of Indian Institute of Social

Welfare and Business Management, Roll number 107/MBA/161097, session
2016- 2018. He has submitted a Dissertation report on “Consumer Purchase
Behaviour of Two wheelers” in partial fulfilment of the requirements for the
award of MBA in Marketing at IISWBM is an authentic work carried out by him
under my supervision and guidance.

[Signature of Project Mentor]

 DECLARATION

I hereby declare that the Dissertation report titled “Consumer Purchase

Behaviour of Two wheelers”, submitted in the partial fulfilment of the
requirement for the award of degree of MBA, is my original work.

This has not been submitted in part or full towards any other degree or
diploma.

Souvik Saha
Indian Institute of Social Welfare and Business Management
MBA (Day) 2016-2018
Place: Kolkata
Date:
 ACKNOWLEDGEMENT

I would sincerely like to thank Dr. Archana Sharma and Dr Tanima Ray for their
able guidance and valuable advice and constant guidance throughout the year.
Without their help, the successful completion of this project would not have been
possible.

I would also like to thank Dr. Chinmoy Jana (HOD, IISWBM) and all other faculty
members of IISWBM for their constant support whenever necessary.

Finally, I would also like to thank all the respondents who have been very co-
operative and helpful to me, without them the fulfilment of the research would not
be possible.

The work and study for this preparation of this project has been a great learning
curve for me and I believe that this would help me in my future in the corporate
environment.

Souvik Saha
Indian Institute of Social Welfare and Business Management
MBA (Day) 2016-2018
Place: Kolkata
Date:
 CONTENTS

Serial Page
Topic
No. No.
1 Abstract 6
2 Introduction 7
3 Key players in the two wheeler industry 8
4 Factors Impacting Consumer Behaviour 8
5 Marketing mix and consumer behaviour 9
6 Objective of the study 10
7 Problem Statement 10
8 Scope of the Study 10
9 Research Methodology 11
9.1 Nature of Study 11
9.2 Research Design 11
9.3 Data Collection Methods 11
9.4 Sampling Technique 11
9.5 Sample Size 11
9.6 Questionnaire Design 12
10 General Distribution the Respondents Taken Part in the Survey 13
11 Analysis 16
11.1 Source of Advice 16
11.2 Preferred Two Wheeler 17
11.2.1 Preferred Two Wheeler vs. Gender 17
11.2.2 Preferred Two Wheeler vs. Age group 18
11.3 Primary Purpose of Usage 20
11.4 Segmentation of Consumer 21
11.4.1 On Basis of Age 21
11.4.1.1 Under 25 years age group 21
11.4.1.2 26-35 years age group 21
11.4.1.3 Above 35 years age group 22
11.4.2 On Basis of Income 23
11.4.2.1 Average monthly family income below 30000 23
11.4.2.2 Average monthly family income 30000-50000 23
11.4.2.3 Average monthly family income more than 50000 24
11.4.3 On an Overall Basis 25
7 11.5 4Ps of Marketing 26
11.6 Customer Retention 30
11.7 Ranking of Suitable Mode of Transport 31
12 Conclusion 32
13 Recommendations 33
14 Limitations 35
15 Bibliography 36
16 References 36
17 Annexure 37
 Abstract

The objective of the study is to find out the impact of major factors that influence the consumer
buying behaviour of two wheelers. The purpose of this paper is to find out the essential traits of
the two wheelers and the consumers that results to successful selling of the product, which
contributes to the success of the brand in a highly competitive market. The project is about
finding out the relationship between consumer categories and their purchase behaviour.
Four major factors mainly influences the consumer buying behaviour. They are:
 Personal factors
 Psychological factors
 Social factors
 Cultural Factors
The main focus of marketing lies on the consumer and product and making value proposition to
the consumers. Personal factors that determines the consumer buying behaviour are personality,
attitude, values, gender, etc. Psychological factors that determines the consumer buying
behaviour includes motivation, perception, learning, belief, etc. Social factors includes
belongingness, laws, policies, norms, reference groups etc. Cultural factors includes social class
and factors specific to different regions.
 Introduction
India is the second largest manufacturer of two wheeler in the world. Motor cycles constitute
major segment of the Indian two wheeler industry, the other being the scooty segment that’s
growing rapidly too. India’s two wheeler industry had a small beginning in the early 50’s. The
two wheeler market was open to the foreign competition in the mid 80’s. With the availability of
fuel efficient low power bikes, demand swelled. This resulted in the introduction of four stroke
bikes (100cc category) which gained the top slot. The first Japanese motorcycles were introduced
in the early 80’s. TVS Suzuki and Hero Honda brought in the first two stroke and four stroke
engine respectively. In the 90’s the major of the annual growth rate of 25% on an average for
motorcycle segment was brought mostly by Japanese motorcycle. With the successful launch of
“Pulsar”, Bajaj entered high power bike segment in 2001.
Indian population prefers two wheelers because of the small manageable size, low maintenance
cost, low price, easy loan repayments and the fact that Indian roads are congested and narrow.
Two wheeler market comprises broadly of two segments, Regular segment and Premium
segment. Regular segment mainly comprises the need based users, who uses mainly for
commuting or business purpose. The basic features of the bike are of main consideration here.
The Premium class two wheelers are seen as a status symbol mostly by the youth and by the
higher income group people. The style, brand, power are of major influence in the purchase
decision here. Indian two wheeler has grown at a very fast rate in the last decade.
Major factors that led to the growth of two wheeler industry are:
 Growth in Gross Domestic Product (GDP)
 Increase in average family income
 Financing has become easier
 Reduction in taxes and duties
 Introduction of International standards in India
 Economic and fuel efficient engines
 Teenagers and youth getting more attracted.
Indian two wheeler industry has grown 25% CGAR (Compounded annual growth rate) in the last
decade. But the estimated growth of two wheeler in the next 5 years comes down to 10-12%
CAGR. Hardening interest rates, increasing fuel cost, rising commodity prices and with the
increase in number of players in the market may lead to down fall of the growth rate of the
industry in the short term. But the long term perspective is expected to remain stable and high.
Several new players have entered into the Indian market. Entry of new players will intensify the
completion. Future growth like to come from rural and semi-urban areas. Wide distribution of
network, supply chain and strong product availability will lead to competitive advantage.
 Key players in the two wheeler industry
There are many two wheeler manufactures in India. Major players in the two wheeler industry
being
 Hero Motocorp
 Bajaj Auto
 Honda motorcycles and scooters in India limited (HMSI)
 TVS Motors
 Royal Enfield
 Suzuki
 KTM

 Factors Impacting Consumer Behaviour

 It has been established that the consumer buying behaviour is the outcome of the needs
and wants of the consumer and they purchase to satisfy these needs and wants. Although
it sounds simple and clear, these needs can be various depending on the personal factors
such as age, psychology and personality. Also there are some other external factors which
are broad and beyond the control of the consumer.
 There is a wide range of factors that can affect consumer behaviour in different ways.
These factors are divided by Hoyer et al. (2012) into four broad categories: situational,
personal, social and cultural factors.
 Situational factors impacting consumer behaviour may include location, environment,
timing and even weather conditions (Hoyer et al., 2012).In this case situational factors
can be the connectivity strengths, server issues, etc. or the attractiveness of the pop-ups
and all. In order to benefit from situational factors major retailers attempt to construct
environment and situations that motivate perspective customers to make purchase
decision.
 Personal factors, on the other hand, include taste preferences, personal financial
circumstances and related factors. The impact of personal factors on consumer decision-
making is usually addressed by businesses during market segmentation, targeting and
positioning practices by grouping individuals on the basis of their personal circumstances
along with other criteria, and developing products and services that accommodate these
circumstances in the most effective manner.
 Lastly, cultural factors affecting consumer behaviour are related to cross-cultural
differences amongst consumers on local and global scales. Culture can be defined as “the
ideas, customs, and social behaviour of a particular people or society” (Oxford
Dictionaries, 2015) and the tendency of globalisation has made it compulsory for cross-
cultural differences amongst consumers to be taken into account when formulating and
communicating marketing messages.
 Marketing Mix and Consumer Behaviour

 Marketing mix or 4Ps of marketing is one of the major concepts in the field of marketing
and each individual element of marketing mix can be adopted as an instrument in order to
affect consumer behaviour.
 Core elements of marketing mix consist of product, price, place and promotion.
Marketing mix has been expanded to comprise additional 3Ps as processes, people and
physical evidence.
 Product element of marketing mix relates to products and services that are offered to
customers to be purchased. Products can have three levels: core, actual and supporting
products
 Price represents another critically important element of marketing and four major types of
pricing strategies consist of economy, penetration, skimming, and premium pricing
strategies (East et al., 2013).
 Place element of marketing mix relates to point of distribution and sales of products and
services. Advent of online sales channel has changed the role of place element of
marketing mix to a considerable extent.
 Promotion element of marketing mix refers to any combination of promotion mix
integrating various elements of advertising, public relations, personal selling and sales
promotions to varying extents (Kotler, 2012).
 Processes, on the other hand, refer to business procedures and policies related to products
and services. For example, integration of a greater range of payment systems.
 People element of marketing mix is primarily related to skills and competencies of the
workforce responsible for customer service aspect of the business. Importance of people
element of marketing mix in general, and providing personalised customer services in
particular is greater today than ever before.
 Physical evidence relates to visual tangible aspects of a brand and its products. In case of
online shopping, packaging of the product is a good example of physical evidence. It also
includes good user interface, associated support, performance, etc.
 Objective of the study
 To understand and analyse what consumers expect from two wheelers.
 To analyse how the factors like age and financial situation influence on the factors that
the consumers looks for and ultimately affects the purchase decision
 How the consumers can be segmented and targeted
 To analyse the consumer perception towards the 4Ps of marketing in the two wheeler
market.

Problem Statement
With the increase in competition in the two wheeler segment and the product lifecycle of two
wheeler slowly moving towards the maturity stage, it is very important to understand the factors
that influences the purchase behaviour of the consumers. By understanding the factors, the
organisations can properly segment the market according to the factors and emphasize on the
particular factors while the product is being offered to the consumers, on basis of which segment
of the market is being targeted.

Scope of the Study

The primary agenda of this study is to understand the various factors that influences the
consumer purchase behaviour for various segments of the two wheeler market.
 In Scope: The survey is conducted only on those customers who have responded and
answered all the questions of the structured questionnaire.
 Out of Scope: Customers, who have not responded or responded incompletely, are not
considered for repeat survey.
 The customer sample of the survey was composed primarily of male and female
customers (customer segmentation is based on gender).
 The customer sample is divided into 3 age groups: namely below 25, 26-35, above 35.
(Customer segmentation is based on age).
 The customer sample is divided into 3 income groups: namely less than 30000, 30000-
50000, above 50000. (Customer segmentation is based on average monthly family
income).
 The occupation of the respondents that were taken into account includes: Student, Private
employee, Self Employed, Homemaker and Government Employee
 The Location of residence of the respondents taken into account includes: Metro, Urban
and rural.
 Research Methodology
 Nature Of Study
The study is to determine the consumer’s behaviour for two wheelers in India. The study is a
quantitative one in which structured questionnaire is designed and administered to elicit
responses. The study is both analytical and descriptive in nature whereby primary data has been
collected through structured questionnaire.

 Research Design

For the purpose of dissertation I have used both Exploratory and Descriptive Research
Design.
 Exploratory Research is used to define research problems, gather information and for
developing hypothesis.
 Descriptive Research is used to describe the characteristics of certain groups and to
determine whether certain variables are associated.

 Data Collection Methods

 Since it is not practically feasible to find out the online buying behaviour of the entire
population of India, an online form consisting of questionnaire was floated in different
social networking/professional networking platforms like Facebook, WhatsApp and e-
mail, so that respondents having diverse views could be gathered from diverse
backgrounds.
 Face to face personal interviews was also used a medium to collect data for some of the
respondents, so as to motivate them to take part in the survey.

 Sampling Technique
As the sample audience is not large and this being a market oriented study, non-probability
sampling method i.e. convenience sampling was preferred. This method is the most preferred
method used by researchers for various studies.

 Sample Size
The issue of sample size for all non-probability sampling techniques (except quota sampling)
is ambiguous and there are no rules. Crimp and Wright (1995) offered some guidance by
proposing that sample size anything larger than 30 and below 500 is appropriate for the
research methods. The sample size selected for this research is 120.
 Questionnaire Design
A structured questionnaire was developed to carry out this study with reference to the inputs
and information obtained from online research. It consists of questions related to personal
details, demographic profiles of consumers, socio economic class of consumers. The source
from which they seek advice from. Their primary purpose of usage. The factors that the
consumers feel to be important while taking purchase decision. The distribution and
promotion factors that influences their purchase behaviour. And their opinions about
repurchase decision.

Rating scale

1 2 3 4 5
Very Moderately Important Less Important Not
Important Important Important
 General Distribution of the Respondents Taken Part
in the Survey
 Age Distribution

Age Distribution
>35
32% (38)
<25
41% (50)

26-35
27% (32)
<2526-35>35

 Out of 120 respondents, 50 respondents are under <25 years old, 32 respondents
belongs to 26-35 years category and 38 respondents are >35 years old.

 Gender Distribution
Gender Distribution

Female 38%

Male 62%

MaleFemale
 Out of 120 respondents, 75 are male and 45 are female
 Income Distribution

Income ditribuition
19%
18%

63%

<3000030000-50000>50000

 Out of 120 respondents, 22 has average family income <30000, 75 has average
family income 30000-50000, and 23 has average family income >50000.

 Home Town Distribution

Rural
Home town distribution
8%

Urban
25%

Metro
67%

MetroUrbanRural

 Out of 120 respondents, 80 respondents have their place of residence in metro, 30

respondents have their place of residence in urban, 10 respondents have their
place of residence in rural areas.
 Occupation Distribution

Occupation Distribution
Govt Employee, 6, Homemaker, 7, 6%
5%

Student, 59, 49%

Private Employee,
35, 29%

Self employed, 13, Unmployeed, 0, 0%

11%

StudentSelf employedPrivate EmployeeGovt EmployeeUnmployeedHomemaker

 Out of 120 respondents, 59 respondents were students, 40 respondents were

employed among which 35 were in private sector while 5 were in public sector,
and 11 respondents were self-employed. None being unemployed.
 Analysis
 Source of Advice
 Two wheeler is a limited occasion or a onetime purchase for a large section of Indians
thus it involves a lot of thought and deliberation. So we should look into the factors from
whom a buyer seeks opinion while buying a two wheeler.

Source of advice

mostly occupied by
respondents whose primary purpose of usage is "Interest"
I don't take advice mostly occupied by
students and employees

Friends and colleagues

mostly occupied by
Family female and homemakers

mostly occupied by
Dealer
employees

0 10 20 30 40 50 60 70 80

 As per the data collected most of the buyers seeks advice from Friends and Colleagues
indicating the factor that two wheeler is societal luxury and has a high status value and
the comments and the experience of friends and colleagues is adhered to by more than
60% of the respondents. What we also found is that these respondents are mostly student
and employees.
 From the data we also find that almost 25% of respondents seeks advice from their
family. This also shows how to cultural factors and psychological factors and the family
values also plays a big role in the process of decision making. These respondents are
mostly female and few of them being home makers.
 Seeking advice from Dealers hasn’t been of much choice for most of the respondents.
The percentage being less than 8%. This shows the dealers’ influence in the decision
making process is very minimum indicating the role of the dealer is only limited to the
selling process.
 A few respondents who purchased two wheeler just out of interest were found not to
eager to seek advice. Though the percentage of such respondents being very less. This
indicates some people may be very individualistic in their choice and are not influenced
by the family and societal values.
 Preferred Two Wheeler

Preferred Two wheeler

60

50

40

30 mostly occupied by mostly occupied by

>35 age group respondents whose primary purpose of usage is "Interest"
20
10

0
Scooty (without gear) Motorcycle (with gear)

MaleFemale

 From the collected data we can see that most female consumers prefers to buy a
scooty (without gear) only a few of them preferred motorcycle (with gear) and it was
found that purchased the two wheeler mostly out of “interest” i.e. the internal desires.
 Most male consumers preferred to buy motorcycle (with gear). Though the age group
increased to >35 years category, some of the preferences shifted towards scooty
(without gear) two wheelers.

Preferred Two Wheeler vs. Gender

 As both the variables are categorical in nature we have done Pearson Chi-square test.
The null hypothesis (H0) states that there is no association between the gender and
preferred two wheeler. The alternative hypothesis (H 1) states that there is association
between the gender and preferred two wheeler.

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent

Gender * Preferred Two

120 100.0% 0 0.0% 120 100.0%
wheeler
 Gender * Preferred Two wheeler Cross tabulation
Count
Preferred Two wheeler
Motorcycle Scooty Total

Gender Female 8 41 49
Male 54 17 71
Total 62 58 120

Chi-Square Tests

Asymptotic
Significance Exact Sig. Exact Sig. (1-
Value df (2- sided) (2- sided) sided)

Pearson Chi-Square 52.761a 1 .000

b 50.056 1 .000
Continuity Correction
Likelihood Ratio 58.943 1 .000
Fisher’s Exact Test
.000 .000
Linear-by-Linear Association 52.321 1 .000
N of Valid Cases 120

 Here, as the Pearson chi-square significance value is .000 which is less than .05 thus
null hypothesis is rejected and we can say that there is an association between the
gender and preferred two wheeler.
 From the data we can see that the male consumers are preferring geared motorcycles
whereas the female consumers are preferring non-geared two wheelers like scooty.

Preferred Two Wheeler vs. Age group

 As both the variables are categorical in nature we have done Pearson Chi-square test.
The null hypothesis (H0) states that there is no association between the Age group and
preferred two wheeler. The alternative hypothesis (H 1) states that there is association
between the Age group and preferred two wheeler
 Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent

Age * Preferred Two

120 100.0% 0 0.0% 120 100.0%
wheeler

Age * Preferred Two wheeler Cross tabulation

Count
Preferred Two wheeler
Motorcycle Scooty Total

Age <25 30 20 50
26-35 20 12 32

>35 12 26 38
Total 62 58 120

Chi-Square Tests

Asymptotic
Significance
Value df (2- sided)

Pearson Chi-Square 9.035a 2 .011

Likelihood Ratio 9.183 2 .010
Linear-by-Linear Association 6.370 1 .012
N of Valid Cases 120

 Here, as the Pearson chi-square significance value is .011 which is less than .05 thus
null hypothesis is rejected and we can say that there is an association between the age
group and preferred two wheeler.
 From the data we can see that the youth and the middle aged consumers are preferring
geared motorcycles whereas the consumers who are above 35 years old are preferring
non-geared two wheelers like scooty.
 Primary Purpose of Usage

Primary purpose of usage

Business, 14, 12%

Interest, 28, 23%

Commuting, 78,
65%

CommutingInterestBusiness

 From the collected data we found that a huge percentage of the consumers purchases
two wheelers with its primary purpose of usage being commuting
 23% of the respondents said that they purchased the two wheeler with the primary
purpose of it being their interest to fulfill their desires.
 Though a few respondents did say that they want to primarily use their two wheeler
for business purpose and all these respondents were self-employed people.
 Segmentation of Consumer
 On Basis of Age
1) The young and dynamic group, under 25 years age group

40
35
30
25
20
15
10
5
0

most important moderately important important less important not important

 This group’s purchase decision is mainly influenced brand name, style and driving
comfort than by any other factors. A large percentage of this respondent considered these
three factors to be most important or moderately important.
 Factors like price, mileage, technical specifications appears to be secondary issue to this
group of respondents. Therefore these factors primarily takes the backseat.
 Warranty issues, maintenance cost, after sales service are not much importance to this
group. These lie somewhere between important and less important category.

2) The middle aged and aspiring group, 26-35 years age group
 This group’s purchase decision is mainly influenced by technical specifications and
driving comfort. A large percentage of this respondent considered these three factors to
be most important or moderately important.
 The factors like brand, price, mileage, style fall under moderately important factor under
this group of respondents.
 Warranty, after sales service and maintenance cost are of less importance to this
respondent category as well.

3) The higher middle aged and Generation-X group, above 35 years age group

 This group’s purchase decision is mainly influenced by price, mileage and driving
comfort. Most of the respondents in this category considered this factors as most
important.
 Factors such as technical specs, maintenance cost and after sale service is considered
important and moderately important by most of them
 Brand name, style are of much less importance to this group of respondents.
 Surprisingly warranty is not given much importance on again.
 On Basis of Income
1) The lower income group, average monthly family income below 30000

 To this group of consumers, factors like price, mileage, maintenance cost and after sales
service is of most importance.
 These segment is the most price sensitive consumers and seems to prefer lower running
cost along with initial purchase investment.
 Driving comfort and style seems to get a bit of moderate importance as there might be a
change in perception with most consumers looking for the best deal on offer.
 Warranty appears to be somewhat important but not much as expected from this group.
 Brand name and technical specifications are not of much importance to this group of
respondents.

2) The moderate income group, average monthly family income 30000-50000

 The only factor that’s most influencing this segment of consumers is the driving comfort.
We can find maximum people considered it as most important.
 Price, brand name, mileage, style mostly fall in the moderately important category. Thus
these factors also plays a big role in the consumer purchase behaviour in this segment.
 Technical specifications, after sales service and maintenance cost are important to this
group but not to great extent so as to influence the purchase behaviour.
 Surprisingly warranty is very less important to this category.

3) The high income group, average monthly family income more than 50000

 The brand name and style seems to mainly influence this group’s purchase behaviour,
with most of the consumers rating it as most important.
 This two factors is followed by technical specifications and driving comfort that has
moderate influence on the purchase decision.
 Price, maintenance cost and after sales service is somewhat important to this category.
 Warranty seems to play no role when it comes to influencing purchase decision of this
category.
 On an Overall Basis, taking all the respondents together

80
70
60
50
40
30
20
10
0

most important moderately important important less important not important

 Driving comfort, brand name and price seems to be prior importance.

 This is followed by style and mileage where the consumers are rating it as moderately
important factor.
 Factors like technical specifications, maintenance cost and after sales service are
somewhat important. But doesn’t play a huge role when comes to influencing the
purchase decision.
 Warranty seems to have lost all battles as very few rated this factor as important and most
of them considered it as less important.
 4Ps of Marketing
 Price

Price
less important not important
2% 1%

important most important

25% 36%

moderately
important 36%
most importantmoderately importantimportantless importantnot important

 As we considered only the price on an overall scale, we found a large proportion of the
respondents considered as an important determinant in their purchase decision. Around
36% reported it as most important and 36% also reported it as moderately important.
From this we can infer that in the final choice of product, price is an important
determinant in a price-sensitive market like India.

 Product:
Two wheeler users can be broadly divided into two categories
 Mileage oriented: the mileage oriented mainly consist on motorcycles that are low in
power generation but are excellent when it comes to offering mileage and great value for
money.
This segment consist of 100-125cc bikes. The major consumer who fall in this segment
are the daily commuters who require maximum fuel efficiency and low running and
maintenance cost. The consumers having moderate to low average monthly family
income mainly falls in this category. Top bikes in this segment are Splendor from Hero
Motocorp, Discover from Bajaj Auto and CB Shine from Honda. The price range falls
between 50000- 70000 ex showroom.
 Style and comfort oriented: this segment includes bikes that are more youth centric and
gives design, style and power more preference than to mileage. These category of
consumers are ready to pay extra to get these features. The consumers who are of high
income group also lies in this category. These people tends to have higher preference on
the comfort level and the brand name. This segment consist of two wheelers of 150cc and
above. Top bikes in this segment are, Pulsar from Bajaj Auto and CBR from Honda,
Royal Enfield Thunderbird. The price range falls between 80000 and above ex
showroom.
 Place
In Indian market two wheeler are sold or purchased through very limited number of
marketing channels. The major types of marketing channels are:
 Company’s outlets
 Company’s dealers
 Sub dealers
The marketing channels mainly works with coordination among each other in different
geography and demography to cater the needs of different segments of the market. These
segments are Metro, Urban and Rural market.
To target the consumers of the metro cities the company’s outlets are mostly worked upon. In
this market the sale is higher than that of other segments and the purchase is driven by brand
equity, performance and comfort of the two wheeler. In metro cities the average disposable
income of the consumer is higher than that of the other to segments. So the price factor
doesn’t affect the purchase as much. So companies prefer to open their own outlets by which
they can save the dealer’s margin and maintain brand equity in terms of product and service
quality. It also helps to serve products meant for niche segment.
To target the urban market company’s dealers are mainly used. The dealer network works on
franchise model. Dealers are allotted as per company’s policies and two wheelers are
delivered to them from company’s production units directly as per prior booking and also
sales forecast. The dealer are expected to be more familiar with the local consume behavior
and requirements.
The rural market is mainly targeted through intensive distribution network of dealer and sub
dealers. This model also work on franchise model and is very helpful in market penetration
and growth.
The various factors of the outlets that influences the consumer purchase behaviour are:
 Accessibility and location
 Information provided
 Customer friendly
 Finance options
 Schemes and discounts
 Brand outlet factor
mostly repondents
from rural and
Accessibilty and location urban areas mostly ccupied
o by
students
under 25 ars
ye
Information provided

most
ly occupied by
respo
ndents whose income is
Finance options
< 50000

Schemes and discounts

mostly occupied by
female

Customer friendly

0 5 10 15 20 25 30 35

 From the data we found that being customer friendly helps the dealers a lot in attracting
new customers and also retaining the old customers. Most of the respondents opted for
customer friendly behaviour as the most influencing factor.
 Around 25% of the respondents also opted for finance option as an influencing factor.
Most of the respondents that opted for this option belonged to middle to lower income
group. This shows the easy financing options is increasing the purchase power of the
customers and helping in optimal utilization of their capital fund. More customers are
getting attracted to easier payments options like EMI and low down payment, rather than
going for a bank loan with hefty interest rate. Financing options are helping in increasing
the number of rural customers.
 20% of the respondents who were mainly students and under 25 year age prefers to seek
information about the product from dealer itself. Thus the dealer must have complete
information about the product line that he is carrying, and also needs to understand what
the customer is looking for and should ultimately match the product to the customers’
needs, to close to deal.
 Schemes and discounts seems to attract the female customers more. They are looking for
the best financial deal.
 Accessibility and location of the dealer is best utilized by the organisations when it comes
to segmentation and targeting the customers. The respondents mostly from rural and
urban areas has preferred this factor as influencing, as they would wish the dealers to be
located closer to the home town.
  Promotion
There have been some great ad campaigns by the motorcycle manufactures over the years. As
the two wheeler market of India has become more matured, the quality of advertisement has
definitely improved. While most ad campaigns mostly concentrated on mileage and price,
e.g. TVS Sport. There are also a few that emphasizes on style and technical specifications
like Bajaj Pulsar and Dominar. Thus the ad campaigns have added a brand personality to
these different products. The ad campaigns also clearly defines the market segment that is
being targeted. Any advertisement giving a huge emphasis on brand building has been
amazingly successful in the two wheeler market.

Advertisement and promotion impact

Depends on the advertisement and brand

mostly repondents whose

No, I take decision without being biased purpose of usage is of "Interest"

Yes, to some extent

Yes

0 10 20 30 40 50 60

 From the data collected, we found that more than 60% of the respondent said that
advertisement and promotions has direct influence on their purchase behavior either
directly or to a certain extent.
 Around 22% respondent said impact of the advertisement varies with various brands in
market, these people are expected to be more brand conscious and tries to match the
brand along with their personality traits.
 Though about 12% respondent said that ad campaigns have no influence on their
purchase decision. These people are more dependent on the information that they have
seeded either from their friends or family and prefers to purchase the two wheeler out of
interest to fulfill their desires.
 But with the two wheeler product lifecycle reaching maturity stage, it is very important
for the manufactures to create good quality ad campaigns and try to influence the
purchase decision of the remaining 88% of the targeted customers through it.
 Customer Retention
From the consumer perspective although replacement involves fresh spending of capital. But
some consumers still goes ahead with the repurchase decision mainly to upgrade to the improved
technologies. Having best in class features, attractive style, better performance has to the
increased spending capabilities of the consumers and also acts as the main ingredients for raising
the replacement demand.
45 mostly respondents of
>50000 income group and home town is in metro
40

35

30

25

20

15

10

0
Yes No, I would choose anotherNo, I will opt for a car No, I don't want to
brand repurchase

 From the data collected most of the customers prefers buying a two wheeler as a “first
time buy”. Only 30-35% respondents opted that they would prefer to go for a repurchase.
Out of which around 22% customers are looking to shift to a new brand may be due to
some dissatisfaction or out of the eagerness to try a new brand.
 The manufactures should try to retain these 22% group of customers as much as possible
so as to increase the brand loyalty and also to have an increased sales figure.
 30% of respondents said they don’t want to opt for any kind of repurchase.
 28% respondents said they would opt a new car this time instead of a two wheeler. These
people mainly belonged to higher income group and had their home in the metros.
 Ranking of Suitable Mode of Transport
The respondents were asked to rank the following modes of transport which according to them is
most economical and comfortable mode of transport, that best suits them.

Suitabilty Ranking

60% 53% 56%

50% 47%
43%
40%

30%

20%

10%

0%
Two wheeler Private car Metro Public bus/train
Rank-1st Rank-2nd Rank-3rd Rank-4th

 From the collected data, we found 53% voted two wheeler as 1st, 47% voted private cars
as 2nd, 43% voted Metro railway as 3rd and 56% voted public bus/train as 4th.
 Thus we conclude that two wheeler stills best suits and serves the needs of the consumers.
 Conclusion

After the analysis, we came out with the findings that advice from friends and family
members is of high influence when it comes to the purchase of high involvement product.
We also found that the price sensitivity declines with the increase in income and choice
of brand is also gaining more importance. The two wheeler market broadly comprises of
two segments, one being price and mileage sensitive and the other being design, comfort
and brand oriented. Form the data we also found most males prefer buying geared
motorcycles whereas the females are preferring for the without gear scooty. But within
the male segment, with increase in age the preference is shifting from geared motorcycles
to the without geared ones. Thus it can be easily stated that today’s motorcycles are
becoming more youth centric. Whereas the without ones are more old aged and utility
centric in nature.
From the data we found the style oriented consumers and price sensitive segments are
both influenced by the advertisements, but each group seeking different aspects. The first
group looks for design and personality factor while the second group looks for mileage
factor. Overall it was found that the maintenance and service provided by the dealers
were given a secondary weightage. While warranty terms doesn’t seem to be an
influencing factor at all.
Coming to retention of customers it is very important for the brands to provide good
quality product as well as service. With so many brand existing in the market right now,
the switching cost for the consumers is very less. It is very important for the
manufactures concentrate on the quality product so retain maximum customers and
influence them for repurchase of the same brand.
The ranking scale of suitable mode of transport confirmed that two wheeler still preferred
by most customers with the top most priority. Thus it is important for the brands to have
lead on this factor and keep improving the technology, design and service so as to cater
the ever changing needs of the consumers.
 Recommendations
 The manufactures should concentrate on providing good quality product and service so as
to meet the consumers’ expectations. We can clearly see that the experience of family
and friends has direct influence on purchase decision.
 Every two wheeler of the manufacturer should have a predefined target market and the
positioning of the product is done accordingly. The motorcycles that are meant for
targeting the budget segment customers should concentrate providing the customers with
mileage bikes and the ones that running cost. For this category the design element can be
given lesser importance so as to cut down the cost. But for the high end customers the
main emphasis should be laid on the design and style element and the brand personality
aspects. Even if this raises the price and running cost, the high end customers will readily
accept it.
 Driving comfort is becoming an important factor of influence. This is where, the without
geared two wheelers i.e., the scooty market is rising. The sole concentration should be
laid on the driving comfort and utility increment for this segment of two wheeler mainly
targeting the female and older generation among male.
 Warranty doesn’t seem to be of much importance to customers these days. The
manufactures can therefore let go the idea of having long warranty periods and cut down
on cost.
 Advertisements and promotions are very important these days with integrated
communication coming into play. And the customers are becoming knowledgeable. The
customers are looking at these ads as a source of information. Thus it is very important to
create an ad campaign not only which is creative but also has a clear message to
consumers, what the product is all about.
 Average replacement period of two wheeler is coming down to 7 years (Data source-
Economic Times, August 2017) thus it is important not only to have new customers but
also to retain the old customers for repurchase. This thereby demands for high quality
service and experience to be provided to the customers and make them satisfied.
 Increase in the average rural income and with government policies of improving road
standards in rural areas has created an increased demand for two wheelers in the rural
areas. With such high competition existing in the market and the product having already
reached the maturity, it is important to look for new penetration areas. The rural market
can easily be the solution to this problem
 It also important for all the manufactures to keep improving and upgrading the
technologies so as to be at the competitor’s parity and also may have some completive
advantage. To solve this issue, investment and motivation should be constantly added on
to the R&D division of the manufactures. The sales growth is expected to increase as the
consumers are rapidly trying to increase on their living standards by upgrading new
technologies.
 Huge proportion of the modern day two wheeler being the young and dynamic
generation, the concentration on building mileage oriented bikes should be shifted
towards building
 design and style and performance oriented bikes so as to match the new needs of modern
era and ultimately have a growth in sales figure.
 The reach of dealers and distributors should be increased mainly to reach the semi urban
and rural market. The higher the accessibility the higher can chance of completion of
purchase process.
 The dealers also should be given proper training so as have a customer friendly behaviour
and should be thoroughly informed about the products that they are carrying, as they are
becoming the face of the brands to customers. The dealers are the ones who can directly
match the customers’ needs with the product and influence the purchase behaviour.
 Higher finance options should be provided to customers. The better the financial deal,
higher the chance of purchase. Low cost EMI options is the hottest trend these days for
influencing the consumer purchase behaviour against bank loans with hefty interest rates.
 Building brand loyalty is a must in a competitive market, where the consumers switching
cost is low. This is where the customer relationship management comes into play.
Maintain the customers’ database, reminding them of timely service, frequently asking
them about level of satisfaction, building loyalty bonds can certainly ease out the cause.
 Limitations

Every research has certain limitations. Therefore, it is necessary to acknowledge them. Following
are the few constraints faced while conducting the study.
1. Sample size is relatively small compared to the large population of India. Hence the
results of the study are not sufficient enough to make concrete recommendations.
2. Limited time and resources may affect the methodology of the research.
3. Some data responses were collected online which is not a very reliable method
because there is no face to face interaction with the respondents and therefore the
respondents may manipulate the data.
4. There is a possibility of some cultural biasness.
5. Some responses of some respondents were seen to have effect of Central tendency.
6. Some external stimuli might affect the perspective of the respondent while data was
being collected.
 Bibliography
 Schiffman Leon G. and Kanuk Leslie Lazar, Consumer behaviour, Pearson education,
2006, 9th edition.
 Kothari C R, Research methodology methods and techniques, Wishwa Prakashan, 1990,
2nd edition.
 Kotler Philip and Keller Kevin Lane and Koshy Abraham and Jha Mithileshwar,
Marketing Management, Pearson education, 2014, 14th edition.
 Malhotra Naresh K. and Dash Satyabhusan, Marketing Research, Pearson education,
2016, 7th edition.

References

 https://en.m.wikipedia.org/wiki/Consumer_behaviour
 http://www.oxfordreference.com/view/10.1093/oi/authority.20110803095634202
 https://onlinelibrary.wiley.com/journal/14791838
 https://www.google.co.in/url?url=http://www.ijecbs.com/July2011/8.pdf&rct=j&sa=U&ved=2a
hUKEwj34tCsobXaAhXBvY8KHYXSAMwQFjAHegQIBRAB&q=reference+site+for+consumer+beha
biour&usg=AOvVaw0rW-C_iu4Qg45HPCfMDMIw
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m
 https://www.scribd.com/doc/102963689/Consumer-Buying-Behaviour-in-Indian-Motorcycle-
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 https://www.scribd.com/doc/54719279/Buying-Behaviour-of-Two-Wheeler-REPORT
 Annexure
 Questionnaire

1. Name (optional)
2. Gender
a. Male
b. Female
3. Age
c. 18-25
d. 26-35
e. Above 35
4. Occupation
a. Student
b. Private employee
c. Government employee
d. Self employed
e. Home maker
f. Unemployed
5. Hometown
a. Metro
b. Urban
c. Rural
6. Average monthly family income
a. Less than 30000
b. 30000-50000
c. More than 50000
7. What is the primary purpose of your two wheeler usage?
a. Commuting
b. Business
c. Interest
8. Where do you like to seek advice from?
a. Family
b. Friends and colleagues
c. Dealer
d. I don’t take advice
9. Which one of these two wheelers would you prefer buying?
a. Motor cycle (with gear)
b. Scooty (without gear)
10. Please rate each of the factors according to your consideration of importance while
buying (1- most important, 2- moderately important, 3- important, 4- less important
and 5- not important)
a. Price
b. Mileage
c. Brand name
d. Driving comfort
e. Technical specifications (torque, wheel base, etc.)
f. Style
g. Maintenance cost
h. Warranty
i. After sales service
11. Which factor of a brand outlet/ dealer can have maximum influence on your purchase?
a. Accessibility and location
b. Information provided
c. Customer friendly
d. Finance options
e. Schemes and discounts
12. Does advertisement and promotion have impact on your purchase decision?
a. Yes
b. Yes, to some extent
c. No, I take decision without any bias
d. Depends on the advertisement and the brand being advertised
13. If you already a two wheeler would you like to repurchase another two wheeler of
the same brand?
a. Yes
b. No, I would opt for a car
c. No, I will choose another brand
d. No, I don’t want to repurchase
14. Rank the following according to suitable (Economical and comfortable) mode of
transport.
a. Private car
b. Two wheeler
c. Metro railway
d. Public bus/ train