A Study on

“Analysis of Consumer Buying Behavior of Luxury Cars of Maruti

Suzuki in Balasore”

A
Synopsis
Submitted to the
Fakir Mohan University
In partial fulfillment of the requirements for Degree of
MASTER OF BUSINESS ADMINISTRATION
By
PREETAM DANDPAT
Roll No. 13201FM174003
Regd. No.- 01985/17

Under
The Guidance of
Prof. Devi Prasad Mishra

P.G DEPARTMENT OF BUSINESS MANAGEMENT

FAKIR MOHAN UNIVERSITY
VYASA VIHAR, BALASORE, ODISHA

P.G DEPARTMENT OF BUSINESS MANAGEMENT

FAKIR MOHAN UNIVERSITY
VYASA VIHAR, BALASORE, ODISHA

APRIL 2019
 CONTENT

1. Introduction
2. Background of the study
3. Rational of the study
4. Scope of the study
5. Review of literature

i) Identification of research gap

6. Methodology

i) Statement of the problem

ii) Research objectives
iii) Hypotheses of the study
iv) Research Design
v) Sampling Design
vi) Source of Data & Method of Data collection
vii) Period of study
viii) Statistical tools to be used

7. Sequence of the study/ chapterisation

8. References

Signature of the Guide Signature of the student

INTRODUCTION
Having a jewelry, car or any costly product is not only a necessity for consumers in India.
It is associated with the status that consumer holds. They want to climb in the social mobility
ladder by showing off these 'status associated products'. This has lead to a remarkable increase in
the growth rate in sales of luxury branded items. People would rarely see on Indian roads BMZ,
Mercedes car a decade ago are now finding , Audi, Maruti Suzuki, Hyundai, Volkswagon,
Chevrolet, Volvo etc. being regularly driven on Indian roads with high pride and flaunt. The
Indian car market is now one of the most vivacious, widespread, and optimistic market globally. In
such a scenario the global luxury car manufactures need to understand the Indian consumer psyche
on a much serious note for doing business in India. Hence a research was undertaken to study the
buying Behavior of Luxury Car Owners in Balasore.

BACKGROUND OF THE STUDY

The growth potential of the Indian Automobile industry is rapidly increasing .There has been an
increase in the demand for Indian automobiles with changes in the customer life style. The surge
of urbanization has also influenced the patterns of customers buying behavior in the luxury car
market in India.

Since the first car rolled out on this street of India, the automobile industry of the country has
come a long way. With the growth of industry, the number of car buyer is also increasing .when
compared to past few years there is an increase in the number of people buying cars. The annual
production of the automobile industry in India is approximately two million units. The production
capacity has made this industry the eleventh largest in the world. The automobile marketing in
India holds huge potential that attracts car manufactures all over the world.

RATIONALE OF THE STUDY

The main aim of the study is to determine the buying behaviour of the customers towards luxury
cars in Balasore. This study aims to identify factors that influence the buying behaviour of the
customer in the luxury car market of Balasore.

SCOPE OF THE STUDY

It is aimed to study the car market and buying behavior of the customer. The project is analyzed
the demographic, Psychographic and buying characteristics of the customers in buying the car. It
includes the detail study of customers focusing on the various parameters that lead to identifying
and understanding the perception of the consumers in buying the car brands.
REVIEW OF LITEARTURE

A strong element of human involvement, very limited supply and the recognition of value by
others are key components (Cornell 2002, p. 47). The word luxury ―defines beauty; it is art
applied to functional items. Like light, luxury is enlightening. Luxury items provide extra pleasure
and flatter all senses at once . . . Luxury is the appendage of the ruling classes (Kapferer 1997, p.
253).

Whereas necessities are utilitarian objects that relieve an unpleasant state of discomfort, luxuries
are characterized as objects of desire that provide pleasure (Berry 1994), and as ―non-essential
items or services that contribute to luxurious living; an indulgence or convenience beyond the
indispensable minimum (Webster‘s Third New International Dictionary 2002). Parallel social
influences on the predisposition to purchase luxuries might be the desire to emulate the lifestyle of
the affluent (O’Cass & Frost 2004; Amaldoss & Jain 2005).

Consequently, the luxury market may be thought of as a developing mass market, which includes
not only members of the richest social class but also those at a more modest socioeconomic level
(Nueno & Quelch 1998; Yeoman & McMahon-Beattie 2006). Truong et al. (2008) and Gardyn
(2002) note that luxury goods have become more accessible and therefore more consumers are
willing and able to pay a price premium for status goods. Indian consumers are motivated to buy
luxury products, as these products act as a symbol or marker of status and class that Indian
consumers like to display (Chadha & Husband, 2006; Debnam & Svinos, 2006; Thomas, 2007).

In the last seven years the research into customer perception and behaviour in the automobile has
been driven by American researchers (Haubl, 1996; Iacobucci, et al. 1996; McCarthy et al., 1992;
Purohit, 1992; Sullivan, 1998; Rosecky and King, 1996). Very few authors and writings have
investigated customer perceptions of luxury cars (Rosecky and King, 1996) and much of this work
is focused on consumer loyalty and brand switching ((Iacobucci, et al. 1996; Lapersonne et al.,
1995; McCarthy et al., 1992; Purohit, 1992).

The major research focus has been on low priced segment car ranges rather than the luxury
segment in which choice between brand concept image and individual choice of potential buyers
play a great role. Therefore, they have neglected customers’ individual differences (especially
‘attitudes’ and ‘specificity’) that provide different perceptions towards the automobiles or their
marquees, which are important in purchase decision making (Jahoda, 1966; Festinger, 1964;
Rosecky and King, 1996; Markin, 1969).

These research carry the beliefs that automobiles’ customers ‘merely’ strive for ‘functional,
tangible, visible characteristics’ (Kapferer,1997), or ‘utilitarian needs’ (Havlena and Holbrook,
1986; McClelland, 1951). This agrees in line with Lancaster’s theory (1966) that demanders buy
groups of features rather than products, their opinions regarding the similarity of products must
also be determined by features. Research into purchasing patterns, however, indicates that it is not
the objective features (tangible or technical attributes) themselves, but rather the subjective
perception of these that determines consumer choice (Bauer and Herrmann, 1995).

RESEARCH GAP
The different aspects of literature related to consumer buying behavior on luxury car of
researchers over the years have been collected and used for this study, but there is a huge gap
existing for the comprehensive research on Maruti Suzuki’s Luxury car. Most of search and
studies are being done on a comparative aspect of various luxury car brands. My study is based on
only a luxury brand car of Maruti Suzuki.
RESEARCH METHODOLOGY
RESEARCH DESIGN
I proposed to first conduct a intensive secondary research to understand the full impacts
and implications of the industy ,to review and critique the industry norms and reports,on
which certain issues shall be selected,which I feel remain unanswered or liable to
change,this shall be further taken up,in the next stag eof exploitory research.this stage
shall help me to restrict and select only the important question and issue,which inhabit
growth and segmentation ikn the industry.

SOURCE OF DATA

Ther are two types of data we have taken

1.PRIMARY DATA

2.SECONDARY DATA

PRIMARY DATA

New data gathered to help solve the problem at hand.as compared to secondary data
which is previously gathered data. An example is information gathered by a
research,consists of original informations that comes from people and include information
gathered from surveys ,focous groups ,indipendet observations and test
results,experimentation .primary data is basically is collected by tgetting questionare
filled by respondants

SECONDARY DATA

Information that already exists somewhere,having been collected from an other purpose.
Sources include company log book,company websites,subscription services.data that have
been already been collected and published for another research project

PERIOD OF STUDY
This study covers the period of 45 days

OBJECTIVES OF THE STUDY

 To assess the awareness of buyers about the brands, products, special features and
accessories of Luxury cars.
 To analyse the purchase patterns and the factors influencing the brand preference of
Luxury cars.
 To examine the pre-purchase behaviour of buyer of Luxury cars.
HYPOTHESIS

The following hypotheses were formulated for the study:

1. The major drivers of consumer behavior of luxury cars are economic status, lifestyle and social
status.
2. Consumers of luxury cars consider brand, latest technology and safety features as more
important than economic considerations and fuel efficiency

SEQUENCE OF THE STUDY / CHAPTERISATION

Chapter-1
Is introduction which consists of background of the study, research problem, need of the
study and sequence of the study.

Chapter-2
Is review of literature which consists of Introduction to literature survey, contribution of
the present study & research gap.

Chapter-3
Is conceptual framework which consists of concept of Consumer Buying Behaviour.

Chapter-4
Is research methodology which deals with objective, hypothesis, scope and research design
of the study.

Chapter-5
Is company profile which deals with history and background of the company.

Chapter-6
Is analysis and interpretation of data in which company’s financial performance is
analyzed along with WCM and its impact on profitability performance by various statistical tools
& techniques.

Chapter-7
Is findings, suggestions and conclusion which contains summery of findings, conclusion,
implication of the study, limitation of the study and scope for further research.
REFERENCS
JOURNALS

Tadajewski, M., "A History of Marketing Thought," Ch 2 in Contemporary Issues in

Marketing and Consumer Behaviour, Elizabeth Parsons and Pauline Maclaran (eds),
Routledge, 2009, pp 24-25

^ Sheth, J.N.,"History of Consumer Behavior: a Marketing Perspective", in Historical

Perspective in Consumer Research: National and International Perspectives, Jagdish N. Sheth
and Chin Tiong Tan (eds), Singapore, Association for Consumer Research, 1985, pp 5-7.

^ Fullerton, R.A. "The Birth of Consumer Behavior: Motivation Research in the 1950s,"
Journal of Historical Research in Marketing, Vol. 5, No. 2, 2013, pp.212-222

^ Tadajewski, M., "A History of Marketing Thought," Ch 2 in Contemporary Issues in

Marketing and Consumer Behaviour, Elizabeth Parsons and Pauline Maclaran (eds),
Routledge, 2009, p. 28

^ Kardes, F., Cronley, M. and Cline, T., Consumer Behavior, Mason, OH, South-Western
Cengage, 2011 p.7

^ BusinessDictionary.com. (2019). What is a consumer? definition and meaning. Retrieved

from http://www.businessdictionary.com/definition/consumer.html

^ Kardes, F., Cronley, M. and Cline, T., Consumer Behavior, Mason, OH, South-Western
Cengage, 2011 p.9; Sassatelli, R., Consumer Culture: History, Theory and Politics, Sage,
2007, p. 10
WEBSITES
 http://www.marutisuzukinexa.org.in/
 https://www.luxurycars.org.in/Scripts/Publications.aspx?publication=Annual
 https://www.marketingstrategy.org.in/Scripts/AnnualPublications.aspx?
head=Statistical%20Tables
 %20Relating%20to%20Banks%20in%20India