PROJECT REPORT

ON
“ A study on consumer behavior towards Hyundai cars in Kanpur ”

Submitted in partial fulfillment of the requirement

For the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

DEPARTMENT OF BUSINESS ADMINISTRATION
SESSION (2019-20)

UNDER THE GUIDANCE OF :- SUBMITTED BY :-

Ms. STUTI JAIN PRASHANT MISHRA
ASSISTANT PROFESSOR ROLL NO. - 0303468
BATCH: BBA 2018 - 2021 BATCH: BBA 2018 - 2021

DAYANAND ACADEMY OF MANAGEMENT STUDIES, KANPUR

AFFILIATED TO
C.S.J.M UNIVERSITY, KANPUR
 ACKNOWLEDGEMENT

In the accomplishment of this study, I would like to express my sincere

gratitude and regards to my internal guide Miss Stuti Jain for her constant
inspiration, supervision and invaluable guidance.

With regards

Signature of students

Prashant Mishra
 PREFACE

A professional course in {Bachelor of business administration} is

incomplete unless the theoretical knowledge acquired in the class room is
backed up by practical exposure, as theories alone do not give perfection
to any discipline. The gap between theory and practiced is bridged by the
market survey report, which has been an integral part of the syllabus

This present project report is an image of what I have done and observed
during my market survey in kanpur.

This report is the result of the work done during the as research the periods...

I have tried my level best to be as a systematic as possible and to avoid any sort of
biases.
 STUDENT DECLARATION
I, Prashant Mishra student of BBA at Dayanand Academy Of
Management Studies, Kanpur, hereby declare that the project work
entitled “ A study on consumer behavior towards Hyundai cars in
Kanpur ” is compiled and submitted under the guidance of Ms. Stuti
Jain . This is my original work .

Whatever information furnished in this project is true to the besy my

knowledge.

PRASHANT MISHRA
BBA II YEAR
ROLL NO. 0303468
 INDEX

CHAPTER 1 : INTRODUCTION
 Includes an introductory paragraph about the topic. (1-2)
 Industry Profile (2-7)
 Company profile & SWOT analysis (8-16)

CHAPTER 2 : Review of Literature

 Theoretical background and definitions of the terms used in study (17-20)

CHAPTER 3 : Research Methodology

 Research Problem (21-22)
 Objective of the study (22)
 Research Design (22)
 Sampling (Sample Unit, population, Sample area, sample size & sampling
 technique ) (23)
 Data Collection (Data Type, Sources of data, Description of the questionnaire) (23)

CHAPTER 4 : DATA ANALYSIS & INTERPRETATION

 Description of Data (24-34)
 Detail of the statistical techniques used (24-34)
 Analysis of data FINDINGS (35-36)

CHAPTER 5 : CONCLUSION & SUGGESTIONS

 Conclusion (37-38)
 Advantage of the study (38)
 Limitations of the study (39)
 Suggestions (40)

CHAPTER : 6 REFERENCES ( BIBLIOGRAPHY)

 ANNEXURE- (QUESTIONNNARE & other supporting data) (41-47)
 Chapter-I
INTRODUCTION

1
“ A study on consumer behavior towards Hyundai cars in Kanpur ”
This thesis is an investigation into consumer perceptions towards HYUNDAI CAR in

Kanpur. It is a well-known fact that automobile Industry is the cornerstone of some of the

most influential economics in the world like USA and Japan. Indian automobile industry is

all set to play the same role in Indian economy. Hyundai automobile ltd. is one of the most

modern, growing and vibrant automobile company on the global map. The four-wheeler

market of Hyundai is also one of the fastest growing company market in India.

INDUSTRIAL PROFILE

“In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that
Indian automobile industry will achieve mans motorization status by 2014”.

In India, as in many other countries, the auto industry is one of the largest industries. It is
one of the key sectors of the economy. The industry comprises of automobile and the auto
components sectors and encompasses commercial vehicles, multi utility vehicles, passenger cars,
two-wheelers, three-wheelers, tractors and related auto components. The industry has shown
great advances since deli censing and opening up of the sector to foreign direct investment (FDI)
in 1993. It has deep forward and backward linkages with the rest of the economy, and hence, has
a strong multiplier effect. This results in the auto industry being the driver of economic growth
and India is keen to use it as a lever of accelerated growth in the country

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto industry was
overlooked by the then Government and the policies were also not favorable. The liberalization
policy and various tax reliefs by the Govt. of India in recent years have made remarkable impacts

2
on Indian Automobile Industry, which is currently growing at the pace of around 25% per
annum, has become a hot destination for global auto players like Volvo, General Motors, Ford,
Hyundai, Tata motors and other big players who are emerging slowly.
Today Indian automotive industry is fully capable of producing various kinds of vehicles
and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles. A well
developed transportation system plays a key role in the development of an economy, and India is
no exception to it. With the growth of transportation system the Automotive Industry of India is
also growing at rapid speed, occupying an important place on the ‘canvas’ of Indian economy.
During the early stages of its development, Indian automobile industry heavily depended
on foreign technologies. However, over the years, the manufacturers in India have started using
their own technology evolved in the native soil. The thriving market place in the country has
attracted a number of automobile manufacturers including some of the reputed global leaders to
set their foot in the soil looking forward to enhance their profile and prospects to new heights.

At present about 75 percent of India’s automobile industry is made up by small cars, with
the figures ranking the nation on top of any other country on the globe. Over the next two or
three years, the country is expecting the arrival of more than a dozen new brands making
compact car models. The automobile sector of India is the seventh largest in the world. In the
year, the country manufacturers about 2.6 million cars making up an identifiable chunk in the
world’s annual production of about 73 million cars in a year.

3
 EVOLUTION OF THE AUTOMOBILE INDUSTRY IN INDIA

In India, since the early 1940s when the auto industry rolled out first passenger car, its
significance in the economy has progressively increased. However, from its early days until the
mid-1980s for two-wheelers and LCVs, and until the early 1990s for passenger cars, the focus of
development of the automotive industry has been on import substitution. The current low
penetration levels in India in all three segments of the industry, namely commercial vehicles,
passenger cars and two wheelers and under-exploitation of the potential of this industry to foster.
The growth of the economy have resulted in the auto industry contributing a relatively low
(nearly 5 per cent) share of industrial output in India compared to the 8-10 per cent range in other
developing countries such as Mexico and Brazil and much higher (15-17 per cent range) in
developed countries such as the United States and Germany. Even the share of employment is
low at 2.5 per cent for the auto industry in India compared to 3-7 per cent in developing
countries and around 15 per cent in mature economies.

The economic liberalization that dawned in India in the year 1991 has succeeded in bringing
about a sustained growth in the automotive production sector triggered by enhanced
competitiveness and relaxed restrictions prevailing in the India soil. A number of Indian
automobile manufacturers including Tata Motors, Maruti Suzuki, Mahindra and Mahindra, and
TVS motors have dramatically and internationally to attain its rightful place in the world trade. A
global recession for last two year notwithstanding, the industry has shown appreciable resilience
and adjusted to the challenges of the environment.

There are at present 13 manufacturers of passenger cars and multi utility vehicles, 7
manufacturers of commercial vehicles, 11 of 2 or 3 wheelers and 10 tractors besides 4
manufacturers of engines. The industry has an investment of a sum exceeding US$ 10 billion.
During 1999-2000 the turnover of the automotive industry as a whole was US$ 12.5 billion

4
approximately. The industry employs 500,000 people directly and more than 10 million people
indirectly and is now inhabited by global majors in keen competition.

The Automobile industry in India is the seventh largest in the world with an annual production
of over 2.6 million units in 2009. In 2009, India emerged as Asia’s fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top
the world in car volume with approximately 611 million vehicles on the nation’s roads. Indian
automobile industry has matured in last few years and offers differentiated products for different
segments of the society. It is currently making inroads into the rural middle class market after its
inroads into the urban markets and rural rich.
In the recent years Indian automobile sector has witnessed a slew of investments. India is on
every major automobile player’s radar.

Indian automobile industry is also fast becoming an outsourcing hub for automobile companies
worldwide, as indicated by the zooming automobile exports from the country. Due to rapid
economic growth and higher disposable income it is believed that the success story of the Indian
automobile industry is not going to end soon. Automobile industry in India also received an
unintended boost from stringent government auto emission regulations over the past few years.
This ensured that vehicles produced in India conformed to the standards of the developed world.

CURRENT STATUS OF THE AUTOMOTIVE INDUSTRY

The industry over a period of time has installed a robust capacity as given below:
SEGMENT INSTALLED CAPACITY
COMMERCIAL VECHICLES 41000

CARS AND MULTI UTILITY VECHICLES 1146000

TWO AND THREE WHEELERS 5696000

GRAND TOTAL 7252000

5
SEGMENT KNOWHOW

Among the two-wheelers segments, motorcycles have major share in the market. Hero Honda
50% motorcycles to the markets. In it Honda holds 46% share in scooter and TVS makes 82% of
the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose.
Piaggio hold 40% of the market share. Among the passenger transport, Balaji is the leader by
making 68% of the three-wheelers contribution to the market.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger
cars and is a complete monopoly in multipurpose vehicles. In commercial vehicle, Tata Motors
dominates the market with more than 60% share.
Tata Motors is also the world’s fifth largest medium & heavy commercial vehicle manufacturer.
The passenger car and motorcycle segment in India auto market is growing by 8-9 per cent. The
two-wheelers segment will close 11.5% rise by 2007. Commercial vehicle to grow by 5.2%.
passenger vehicle exports have grown over five times and two-wheelers exports have reached
more than double. Exports of auto components, whose manufacturing costs are 30-40 per cent
lower than in the West, have grown at 25% a year between 2000 to 2005.

FACTS ABOUT THE AUTOMOBILE INDUSTRY

 The first automobile in India rolled in 1897 in Bombay.
 India is being recognized as potential emerging auto market.
 Foreign players are adding to their investments in India auto industry.
 Within two-wheelers, motorcycles contribute 80% of the segment size.
 India is the largest three-wheeler market in the world.
 India is the largest two-wheeler manufacturer in the world.
 India is the second largest tractor manufacturer in the world.
 India is the fifth largest commercial vehicle manufacturer in the world.
 The number one global motorcycle manufacturer is in India.
 India is the fourth largest car market in Asia – recently crossed the 1 million
mark.

6
CURRENT SCENARIO OF THE AUTOMOBILE INDUSTRY
According to Commerce Minister Kamal Nath, India is an attractive destination for global auto
giants like BMW, General Motors, Ford and Hyundai who were setting base in India, despite the
absence of specific trade agreements.
 On the cost front of Indian automobile industry, OEMs are eyeing India in a big
way, investing to source products and components at significant discounts to
home market.
 On the revenue side, OEMs are active in the booming passenger car market in
India.
 By 2011, India is expected to witness over Rs 40,000 crore of investment.

The automobile industry in India is on an investment overdrive. Be it passenger car or two-

wheelers manufacturers, commercial vehicle makers or three-wheelers companies – everyone
appears to be in a scramble to hike production capacities
.
EMERGING TRENDS IN THE AUTOMOBILE INDUSTRY

Globalization is pushing auto majors to consolidate, to upgrade technology, enlarge product

range, access new markets and cut costs. They have resorted to common platforms, modular
assemblies and systems integration of component suppliers and e-commerce. The component
industry is undergoing vertical integration resulting into emergence of ‘ systems and assembly
suppliers’ rather than individual component suppliers. Thus, while most component suppliers are
integrating into tier 2 and tier 3 suppliers, larger manufacturers and multinational corporations
(MNCs) are being transformed into tier 1 companies.
To meet the concomitant testing and certification activities relating to higher safety and emission
norms, testing infrastructure in the country is being overhauled. A substantive state funding is
being planned in upgrading the testing infrastructure with participation of industry.
Environmental pollution and the need to conserve existing supply of fossil fuels have led to
search for alternative fuels. In addition to supporting Greenfield research in this area, an
ambitious phased programme to upgrade carbon fuel quality commensurate with higher emission
norms is also being undertaken.

7
 COMPANY PROFILE:

Hyundai Motor Company is the South Korean automobile manufacturing company.

It is placed sixth among the automobile maker in the world. Hyundai was started in 1967,

when the founders decided to assemble someone else‟s vehicles. The founder developed his

own vehicles and succeeding in exporting vehicles to other countries. The company

launched its first car, Cortina, in 1968. In 1975, the Pony, the first Korean car was released

by the Hyundai with styling by Giorgio Giugiaro of Ital. Design and power train technology

provided by Japan‟s Mitsubishi Motors. Pony became the top-selling car on the Canadian

market due to its higher degree of quality and refinement in the lowest price auto segment.

In 1985, the one millionth car from Hyundai was built.

In 1986, Hyundai began to sell cars in the United States. The company started to

produce models with its own technology in 1988, beginning with the mid-size Sonata. In

1991, the company succeeded in developing its first proprietary gasoline engine, the four

cylinders Alpha, and also its own transmission, thus paving the way for technological

independence. In 1996, Hyundai Motor India Limited was established with a production

plant in Irungattukottai near Chennai, India.

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC). In 1998, Hyundai began to overhaul its image in an attempt to establish
itself as a world-class brand. Hyundai Motor Group, invested heavily in the quality, design,
manufacturing and long-term research of its vehicles. In 2004, Hyundai was ranked second
in “initial quality” in a survey/study by J. D. Power and Associates.

8
Hyundai is now one of the top 100 most valuable brands all over the world. Since 2002,
Hyundai has also been one of the worldwide official sponsors of the FIFA World Cup. In
2011, Hyundai sold 4.05 million cars worldwide and the Hyundai Motor Group was the
world‟s fourth largest automaker. Hyundai vehicles are sold in 193 countries through some
5,000 dealerships.

HMIL is the largest passenger car exporter and the second largest car manufacturer in India.
Currently, the company markets more than 30 variants of passenger cars in six segments.
HMIL‟s first passenger car, the Hyundai Santro was launched in 23 rd September 1998, and
was a runaway success. HMIL forms a critical part of HMC‟s global export hub, it touched
1.5 million in exports in March 2012. It currently exports to more than 120 countries across
the world and has been India‟s number one automobile exporter for seven year in a row. In
September 3, 2013, Hyundai launched its much awaited car, Grand i10.

9
MANUFACTURING FACILITIES:
Hyundai operates the world‟s largest integrated automobile manufacturing
facility in Ulsan, South Korea, which has an annual production capacity of 1.6 million
units. Hyundai has its production plants all over the world which include: The Ulsan
Plant, the Asan Plant, the Jeonju Plant, the America Alabama Plant, the China Plant, the
Indian Plant, the Turkey Plant, the Russia Plant and the Brazil Plant.
In India, the Hyundai Plant is located in Irungattukottai, 30 kilometres from Chennai.
This plant was set up in May 1996 and rolled out the first Santro seventeen months
afterwards. The plant is built on 500+ acres of land and had an investment of INR 2,500
crores. HMIL‟s fully integrated state-of-the art manufacturing plant near Chennai boasts
of advanced production, quality and testing capabilities. To cater to rising demand the
company commissioned its second plant in February 2008, having an installed capacity
of 330,000 units per annum. Both the manufacturing units are capable of producing
630,000 vehicles annually. To support its growth and expansion plans HMIL currently
has 346 dealers and around 800 centres across India. In its commitment to provide
customers cutting edge global technology, HMIL set up a modern multi-million dollar
Research & Development facility in Hyderabad. In terms of worldwide sales, the US,
Chinese and Indian Marketing are doing well. Hyundai has also developed a model in
India for sales. Hyundai will grab a large share of the car market by turning its
operations in China and India into key design, manufacturing and export hubs for its
entire global operations. Hyundai has 6 centres worldwide, located in Korea, Germany,
Japan and India. Additionally, there is an American design centre in California that
develops designs for US market.

10
TECHNOLOGY:
Hyundai has the Alpha Engine, Theta Engine, S Engine, Lambda FR Engine,
Theta GDI Engine, Class- best power trains, environment-friendly exhaust systems,
green engines, power train centre and highest performing power trains etc. Hyundai‟s
current design philosophy is known as Fluidic Sculpture, which is heavily inspired by
nature. Hyundai Motor India Engineering (HMIE) gives technical and engineering
support in vehicle development and CAD &CAE support to Hyundai‟s main R&D
centre in Namyang, Korea.

In 2010, Hyundai started its design activities at Hyderabad R&D centre with Styling,
Digital Design & Skin CAD Teams. The R-engine for passenger Diesel cars that meet
the Euro-5 Environmental Regulation Standards is developed by Hyundai and the
company received certification for “low-pollution emitting vehicle in the metropolitan
area”. The company‟s TAU engine received the honour of being named as the World‟s
10 Best Engines‟ for the past two consecutive years.

VISION AND VALUES:

Hyundai released its „Vision 2020‟ to establish the firm as the global leader in the
automobile market. The company focuses on key vision strategies.
Automotive Vision: “to become a trusted lifetime partner of our customer, we will bring
a new perspective to automobiles through innovative mobility solutions based on human-
centric, eco-friendly technologies and services”.
Steel Vision: “as an eco-friendly, resource-circulating company, we will lead a new era

in the steel industry by providing high value-added products and services and realizing

world‟s best competitiveness based on co-operative relations with our stakeholders”.

Construction Vision: “As a global leading provider of high-value engineering solutions,

we will create the foundation for a batter life through cross-business synergy and
convergence with future technologies”.

Hyundai focuses on five main values: Customer Challenge, Collaboration, People and
Globality. Providing customers top service will be at the top of their agenda. The company
will venture into new areas and not remain traditional. The company will have a spirit of
collaboration. People will be respected and valued. The company is not limited to country-
centric areas but will be known in the global arena.

11
 SWOT ANALYSIS
A scan of the internal and external environment is an important part of the strategic planning
process. Environmental factors internal to the firm usually can be classified as strengths (S)
or weaknesses (W), and those external to the firm can be classified as opportunities (O) or
threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm’s resources and
capabilities to the competitive environment in which it operates.

STRENGTHS:
A firm’s strengths are its resources and capabilities that can be used as a basis for developing
a competitive advantage Examples of such strengths of HYUNDAI:

 Hyundai have a good reputation among customers.

 Well established co. since 1993

 Trusted brand in INDIA.

 Strong distribution network all over India.

 It has the maximum number of service station all over.

 Exclusive access to high grade natural resources.

12
WEAKNESSES:
The absence of certain strengths may be viewed as a weakness. For example, each of the
following may be considered weaknesses;

 Lack of patent protection.

 The company has low brand recognition in A segment and passenger car.

 High cost structure.

 Lack of access to the best natural resources.

 Lack of access to provide the services for dealing of second hand cars.

In some case, a weakness maybe the flip side of a strength . Take the case in which a firm
has a large amount of manufacturing capacity. While this capacity may be considered a
strength that competitors do not share, it also may be a considered a weakness if the large
investment in manufacturing capacity prevents the firm from reacting quickly to changes in
the strategic environment.

Opportunities
The external environmental analysis may reveal certain new opportunities for profit and
growth. Some examples of such
Opportunities include;

 An unfulfilled customer need.

 Arrival of new technologies.

 Loosening of regulations.

 Removal of international trade barriers.

13
Threats:
Changes in the external environmental also may present threats to the firm. Some examples
of such threats include;

 Shifts in consumer tastes away from the firms products.

 Emergence of substitute products.

 New regulations.

 Increased trade barriers.

MARKET STRATEGY IMPLEMENTATON

1) Product development with vendors: In case product development part a team of

engineers would be talking to its major vendors for reducing the cost of equipments
supplied by them. These vendors are the major suppliers of Hyundai components such as
Deep Hyundai, Hans and Himgiri etc
.
2) Advertising: The advertising may involve the process of advertisements on Television,
Radio, Newspaper, Auto Magazines and events like Auto Expo

a) T.V. Advertising ; T.V. advertising may involve the advertisement at peck hours of
television viewing or during the cricket match time in the slog over which in turn may
lead to maximize exposure and thus maximum impact on final buyers.

b) Advertising in news paper (twice in weak); The concept of advertising on

newspaper may increase the sale since the newspaper would be able to explain the
characteristics and features of cars, because it is an easy way to reaching the decision
makers and thus in turn may directly influence their decision.

c) Advertising on Radio; with FM catching more and more popularity amongst people
especially people love to listen to FM while driving. Thus this could be another mean
of influencing the prospects for services like True Value at the time of 1hour in the
morning and 1 hour in the evening when the people are actually traveling towards
their office or coming come back.
14
 d) Auto Magazines (monthly) and Auto expo (yearly); The Company would advertise
on auto magazine like Auto cars, Motoring etc where entire information on product
and newer features would be explained. The cover page or back page advertisement
would be used for PRODUCT COMMUNICATION

.
3 Celebrity Endorsement; This entirely depends on the company’s policy whether they
would like to spend a fixed amount (which may depending upon the
personality). The celebrity would be the Brand Ambassador for the company
like Actor SHAH RUKH KHAN is the Brand Ambassador for Hyundai
Santro.

4 Incentives / Penalty on meeting a sales target: The company would work with dealers
with the policy of carrot and stick which may involve incentives like a foreign tour
package, gifts and monetary incentives such as increased margin for meeting a sales
target or working with dealers on contractual basis rather than a permanent basis if they
are not able to reach sales over a period of time.

5 Financing through various Banks: currently Hyundai has its tie up with SBI financing
and the process is limited to getting the car financed through 9000 branches which the firm
would go out to increase along with the financing tie ups with other banks in a way
increasing the reach and more customers.
For rural market a finance scheme for farmers would provide for installments to coincide
with the times when his crop is sold in the market .i.e. CROP CYCLE (paid every six months
after the rabi and kharif harvests).

6 Assemble line modifications: Since in A1 and A2 segments there is need of

change in the design and specification this would involve change in assembly line.

7 Vehicle for corporate: Their N2N feet management system would be used for this
purpose in which their main purpose would be to finance the vehicles for corporate.

15
Achievements of Hyundai Motors India Ltd :

 Hyundai Santro Crosses the Million Mark; HMIL achieved yet another mile stone by selling
more than 1 million Santro in the domestic and Export market since its introduction in 1998.
Santro is India s first high Technology compact car. Commenting on the achievement, H.S.
Lheem, MD, HMIL, said,” This new record of selling 1 million Santro exemplifies the unmatched
equity of the Santro brand across the world. Santro offers refined ride, impressive fuel economy
and comfortable interiors.

 Hyundai’s 2nd all India free car care clinic; HMIL, recently Conducted its second nationwide
free car care clinic campaign from Jan29th- Feb 11th 07 at over 310 Hyundai dealer workshops
across the country. The clinic was conducted to facilitate Hyundai car better and at a reasonable
cost. The Free Car Care Clinic offered a comprehensive 80-point thorough examination of the
engine compartment, under body, AC, body, interior and exterior etc. Customers also availed free
car wash and attractive discounts ranging between 5to20 percent with a special discount on the
Emblem. Special discounts were offered on service merchandising like engine flush, anti- rust
coating, engine de-carbonization and car polish.

16
CHAPTER-2
REVIEW OF
LITERATURE

17
 This chapter reviews concepts and theories by researchers that are highly
related to the area of study. The chapter provides a critical analysis of the views
and insights of various researchers on the subject area. The chapter starts by
explaining the basics of the study, being consumer behaviour. Consumer
behaviour for premium passenger cars in Uttar Pradesh is brought to light. The
factors that are believed to effect consumer preference for premium passenger
cars are then discussed. Further, the literature will examine how the Indian car
industry is segmented. The chapter then reviews effects of consumer
ethnocentrism with regard to the evaluation of global brands and local brands by
Indian consumers.
The literature review offers the theoretical background to the research
including definitions, framework, concepts and models. Definitions of what
constitutes consumer behaviour, along with the consumer decision-making
process, will be articulated. Further to the above, a different view of consumer
behaviour will be offered along with the role and value of possessions.

Piplai (Research Entitled: Automobile Industry: Shifting Strategic Focus)

Piplai (2001) examines the effects of liberalization on the Indian vehicle
industry in terms of production, marketing, export, technology tie-up, product up-
gradation and profitability. Till the 1940s, the Indian auto industry was non-
existent, since automobile were imported from General Motors and Ford. In early
1940s, Hindustan Motors and Premier Auto started by importing Know-How

from General Motors and Fiat respectively. Since the 1950s, a few other
companies entered the market for two wheelers and commercial vehicles (CVs).
However most of them either imported or indigenously produced auto
components till the mid-1950s, when India had launched import substitution
programme, thereby resulting in a distinctly separate auto component sector.

18
Due to the high degree of regulation and protection in the 1970s and 1980s, the
reforms in the early 1990s had led a boom in the auto industry till 1996, but the
response of the industry in terms of massive expansion of capacities and entry of
multinationals led to an acute over capacity. Intense competition had led to price
wars and aggressive cost-cutting measures including layoffs and large scale
retrenchments. Indian companies have started focusing on the price-sensitive
consumer. Utility Vehicles, foreign companies continues utilising their expertise
on technology-intensive vehicles for individual and corporate usage.
Thus, Piplai (2001) concludes that vehicle industry in India has not gained
much from the reforms, other than being thrusted upon a high degree of
unsustainable competition.

Howard, J. A. and Sheth, J.N. (Research Entitled: Model of Buyer

Behaviour)
Howard and Sheth (1968), postulates one of the best known models of
consumer behaviour, which explains interactions, the theory of buyer behaviour.
Practically between the inputs (stimuli that the consumer receives from his or her
environment) and outputs (the consumers‟ actions, as observable results of the
input stimuli) of decision-making are the „constructs‟, which are the processes,
the consumer goes through to decide upon his or her action. Authors grouped
these into following two areas:

1. Perceptual: Those concerned with obtaining and handling information

about the product and services.
2. Learning: The process of learning that leads to the decision
itself.
In light of the above model the consumer decision-making is a process that
the consumer goes through.

19
Sagar, Ambuj, D. & Chandra & Pankaj (Research Entitled:
Technological Change in the Indian Passenger Car Industry)
Sagar et al. (2004), discussed, as to how the Indian car industry has
advanced technologically driven by a confluence of factors such as intense
competition, demanding consumer preferences, Government policies (especially
tightening emission standards), and the global strategies of the various players.
They elaborated that car manufacturers in India are based on designs, incorporating
advanced technologies, that are often comparable with those available globally and
Indian car exports are also growing rapidly.

Mandeep Kaur and Sandhu H.S. (Research Entitled: A Study on Factors

Influencing Buying Behaviour of Passenger Car Market)
Mandeep Kaur and Sandhu (2006), attempts to find out the important
features which a customer considers while going to purchase a new car. The
premium car owners perceive that safety and comfort are the most important
features of the passenger car followed by luxuriousness.

20
CHAPTER 3
Research
Methodology

21
Research Problem
A research problem is a statement about an area of concern, a condition to be improved, a
difficulty to be eliminated, or a troubling question that exists in scholarly literature, in theory, or
in practice that points to the need for meaningful understanding and deliberate investigation. In
some social science disciplines the research problem is typically posed in the form of a
question. A research problem does not state how to do something, offer a vague or broad
proposition, or present a value question.
The purpose of a problem statement is to:
1. Convincing the reader to the importance of the research .
2. Provides the framework for reporting the results.
3. Places the problem into a particular context.

As a Researcher I want to propose a study on Consumer Behaviour towards Hyundai on

customers in Kanpur.
1. Are the advertisements of Hyundai effective enough?
2. Does advertising campaign help in brand recall of Hyundai?

Research Objective
Research Objectives describe concisely what the research is trying to achieve. They summarize
the accomplishments a researcher wishes to achieve through the project and provides direction
to the study. They are the points of finding information from certain types of research. The
main purpose of research objectives is to tell the readers what the researcher wishes to achieve
through the study. Research objectives tells the direction of research and in addition points out
the possible problems of the study. the Questions and subjects are the key factors for
determining the objectives of research. A research objective must be achievable.
To assess the likeability and perception of customers towards the advertisements of
Hyundai.
To Understand the Consumer Behaviour towards Hyundai Cars.

RESEARCH DESIGN
Research design constitutes the blue print for the collection, measurement, and analysis of the
data. It includes sampling plan, designing of the instrument, data collection plan, and pilot
testing.
Essentials of Research Design
 It is an activity and a time based plan.
 A plan is always based on research questions.
 It is a framework for specifying relationship between the variables. Defining the type of
variables such as dependent, independent, moderating variables, etc.
 It is a guide for selecting resources and types of information.
 Research design is Descriptive in nature.

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Sampling
Sample Unit: Each and every member of sample is called sampling unit.
Population: It refers to group of people or objects that form the subject of study in a particular
survey and are similar in one or more ways.
Population here is the number of residents in Kanpur.
Sample Size: Sample size is taken to be 100 respondents.
Sample Design: Probability Sampling
Sampling Technique: Convenience
Area of study: Kanpur, Uttar Pradesh
Statistical tool Applied: Percentage Analysis , Bar Charts

Data Collection
Data Type
Data collection methods: The source of data includes primary and secondary data sources.
Primary data: Primary data has been collected directly from sample respondents through
questionnaire.
Secondary data: Secondary data collected from textbooks, Newspapers, magazines, and
Internet sources.

Description of Questionnaire
A questionnaire is a research instrument consisting of a series of questions for the purpose of
gathering information from respondents.
The Questionnaire in this report provides a means for collecting responses regarding the
consumer behavior towards Hyundai for promoting the sales of its Cars.

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 CHAPTER 4

DATA ANALYSIS &

INTERPRETATION

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 DATA ANALYSIS

FOR EXISTING CUSTOMER OF CARS

Qu.-1 Which car do you own?

This first question was in the questionnaire to know, which person is having which car? With
the help of this question we can know about the distribution of B segment car in Dwarka region.
In the answer of this question 15 people said Maruti Zen, 20 people said for Santro Zing. 5
people said Fiat palio. 10 people said Indica. IN this question we see that santro and Zen are
highly distributed in the Dwarka region.

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Qu.-2 Why did you buy this car?

This question was there in the questionnaire to check why did person buy the car? What was the
need to buy the car? In the response 29 people said because of “family need”. They bought the
car because of the need of the family. Then after 17 people said, “to get comfort” and “increase
in the income”. So, it can be concluded that most of the people bought the car because of need
of family and get comfort.

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.Qu.-3 Why did you purchase this car?

I analysis this question on each and every car, which was opted by the respondents. Taking
Hyundai Santro Xing first, 12 people said they bought Santro Xing, because of advance quality.
7 people choose Santro because of value for money. So, it can be concluded that Santro is
providing value for money to the customer and it is having advance technology

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Qu.-4 Source of finance of your existing car is?

In this question I asked about their source of finance. In replied 40% person said own resources,
30 % said bank loan, and 25 % said company loan and remaining for i.e., 5% for institutional
loan. So it can be concluded that bank loan among people is most preferred after own recourses.

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Qu.-5 From where you gathered information about the car?

Every person collects some information before buying a car about its features, company and
other things. So this question was aimed to know about their information gathering. 45 people
said they gathered information from words of mouth. While 25 people aid they collect
information from Dealer itself.

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Qu.-6 Are you satisfied with your car?

I have done this analysis on every car.

In the case of Maruti Zen, 5, 10, 5,5and 5 people were strongly satisfied, satisfied, can’t say,
dissatisfied and strongly satisfied respectively. In the case of Hyundai Santro Xing, 10 and 20
people were strongly satisfied and satisfied respectively. In the case of fiat Palio, 2 1, 1 and 1
people were strongly satisfied satisfied, can’t say, dissatisfied and strongly satisfied
respectively. In the case of Maruti Wagon R, 3,5,2,3 and 2 people was strongly satisfied,
satisfied, can’t say, dissatisfied and strongly satisfied respectively. In the case of Tata indica, 5,
5, 5 and 5 people were strongly satisfied, satisfied, can’t say, dissatisfied and strongly satisfied
respectively

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Qu.-7 Rank your car on following attributes?

I have done my analysis on each car.

Hyundai Santro

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no. of the people

20 20 20
20
15 15 15
15 15
15 15
15
10 10 10 10 10 10
10
5 5 5
Strongly satisfied
5

0 satisfied

can't say

dissatisfied

strongly Dissatisfied

On the price factor 10, 15 and 5 Santro owner were strongly satisfied, satisfied and cant say
respectively. On the comfort factor 15, 10 and 5 Santro owner were strongly satisfied, satisfied
and cant say respectively. Its means most of Santro driver was happy with Santro. 20 and 10
Santro owners were strongly satisfied and satisfied respectively with the performance of Acs.
On the Fuel efficiency factor 20 and10 Santro owners were satisfied and can’t say respectively.
15 and 5 Santro owner were strongly satisfied and in cant say position respectively on the issue
of maintenance cost. 20 and 10 Santro owners were strongly satisfied and satisfied respectively
with the driving of the car. 15 and 15 Santro owners were strongly satisfied and satisfied
respectively with the performance of Engine. On the availability of spare parts 10, 15 and 5
Santro owner were strongly satisfied, satisfied and can’t say respectively

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Qu-8. Have you come across any promotional event conducted by Hyundai during last one

month?

(A) YES (B) No

Customer opinion No. of customers

Yes 61

No 49

Total 100

Table No.15

Fig. No. 15

From the table and graph above it can be seen that 61% of respondent’s come across promotion

of Hyundai and 49% do not come across promotion of Hyundai.

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 Qu-9. What more do you expect from your dealer?

(A) Information about new cars (B) Information about service and mileage

(C) Assistance regarding loans and insurance (D) Understanding customer needs

Expectations of customer No. of customers

Information about service and mileage 68

Assistance regarding loans and insurance 8

Understanding customer needs 20

Information about new car 4

Total 100

Table. No.13

Fig. No. 13

Most of the customers are expecting the information about service and mileage regarding the cars from
the dealer. From the above analysis we come to know about the customer’s expectations and their post
purchase service demands from the dealer.

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Qu-10. What’s your opinion on the price list of Hyundai cars?

(A) Affordable by common man (B) Affordable only by rich man (C) Can’t say

Customer opinion on pricelist of Hyundai No. of customers

car

Affordable by common man 30

Affordable by only rich man 60

Can’t say 10

Total 100

Table. No.11

Fig. No. 11

More than 80% of customers think that Hyundai cars are affordable only by rich men. These

cars are too expensive for an economic/common man of the society.

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 FINDINGS

Why do people buy cars?

Family need reign supreme as a reason for a car purchase. Surprisingly 34% of the car owner
bought their car as it suited their personality and lifestyle.

Family is a focal point of a car purchase. Family needs is exactly what the mid car segment
should fulfill.

The decision to buy a car is a collective one made by the whole family. The car is bought not to
fulfill the need of the one particular person need but to cater the entire family’s needs.
Therefore the entry-level car should be a family car, which can satisfy the needs of the whole
family.

Secondly, the other most important reason for car purchase was it suited the respondents’
lifestyle and personality

This reason was particularly evident in the car owner segment. These people might have bought
the car for some other reason. But after owning it for a while, feel that the car is a necessary
component of their life style.

In order to attract to these people to a new purchase, companies must hit them at the above
point. It should be projected to fit the life style of these people or rather better their lifestyle.

People already owing a particular are also consulted by a large no. of potential buyers.
Companies should make sure that the early buyers of he entry level are completely satisfied
with the product.

In the case of non-car owner, they tend to obtain information from the people already owning
the car. The reason could be that, they are a little apprehensive about the purchase and want to
quench their anxiety.

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Where do potential car owner look for information about a car?

The car owners as well as non-car owners are influenced by newspaper and TV ads.

Word of mouth publicity is very powerful tool, it was chosen by 45% car owner and 32 % by
non-car owner. The role of dealers is very important as 10 % of car owners and 26 % of non car
owners are likely to consulate dealers in order to get the information about the various cars
existing in the market.

Source Of finance

Most of respondents use personal resources to obtain funds for the car purchase.40% of car
owner purchased the car by their resources. It was 30 % for non-car owners. The bank loan can’
be ignored, it was 30% and 40% in the case of existing customer and potential customers. Car
owners and non-car owners also prefer company loan as well.

Car purchase plan of car owners

In my study I found that the nearly 20% of the existing car owner want to replace their car with
a mid size / luxury car. The attitude could be due to additional features in the new cars, which
attract these people, or the non-performance of their existing car may compel them to replace
the car.

Customer expectation out of B segment Car:

Features, which a respondents expects in a car, are followed-

 Safety
 Driving
 Loan
 Price
 Comfort
 Value for money

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 CHAPTER 5
CONCLUSIONS
&
SUGGESTIONS

37
 CONCLUSION

During my Research I concluded –

 Hyundai Santro and Maruti Zen are more distributed in the region.

 In decision-making process, family plays a considerable role.

 Word of mouth is quite famous to get information about a car.

 Before buying a car people consider its price with the advance technology.

 Some people also consider loan for buying a car.

ADVANTAGES OF STUDY:

The advantages of the study can be enumerated as under:

• This study helps in understanding consumers behavior towards Hyundai Cars of consumers in
Kanpur.

• This is also helpful for management for launching of new advertisement campaigns by
understanding the effectiveness of different types of advertisement campaigns .

• Management also gets insight to take various decisions on different aspects such as cost
cutting, celebrity endorcements etc.

• The study also helps the readers, investors, promoters to understand the strategies adopted by
management .

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LIMITATIONS OF STUDY:

The present study is subjected to following limitation:

 To develop the relationship through personal interaction by taking such appointment

from Bank Manager and can be bias in their decision.

 Due to time constraints able to visit only seventy five branches of different banks, and

conduct seven event shows in different place of the city.

 During the event shows I met lot of customers some were interested to buy and some

were already owner.

 The sample was restricted to 75 banks and 10 event shows, which may restrict the scope

and completion of study.

 Owing to their pre owned car, shortness of time and due to privacy some customers

were not willimg to give their time.

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 SUGGESTIONS
In order to provide the entire short in the armory of their employees the company should
Implement these policies at level:

1. The firms will have to set up small experimental shops where an organization can house its best
talent to pursue experiment innovate Develop cutting edge products, dream up new and better ways of
Running a business in order to develop positive value addition to the Organization.

2. The company should arrange for inter corporate programmers so that the best practice of concepts
would be interchanged.

3. The company should arrange for games etc in order to create a forum of informal interaction
between customer and employees. These meeting will help employees develop new skills or get an idea
for a new product etc.

4. The company should provide their employee to go in for management programmers from top
management Schools in gain new ways of doing thing.

5. The organization environment should be made conducive like the introduction of flexi-time, the
accessibility of the work place 24 hours

6. A separate column in the appraisal from should be there for new skill acquired. Then on the basis
of 2 or3 new skill acquired he should be appraised and also the compensation be raised. This will go a
long way in motivating employees in developing new competencies.

7.The training programmed should be serviced from outside. Various leaders in various fields
should be invited as faculty or for guest lecture.

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 CHAPTER 6
REFERENCES
(BIBLIOGRAPHY)

41
 ANNEXURE

HYUNDAI CARS
*Required

1. Name *

2. Age *

3. Gender

Female
Male

4. annual Income

5000-10000
10000-20000
20000-30000
More than 30000

5. Occupation

6. Number of members

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7. Which car do you

own?

Maruti Zen
Hyundai Santro Xing
Fiat Palio
Tata Indica
Wagon R
Other:

8. How much old your car is

Less than 1 year

1-2 yrs
2-3 yrs
More than 3 yrs
Other:

9. You bought car to?

Reduse the risk of accident

Increase in income
To get comfort
Change in lifestyle and personality
Family need
Distance between home and workplace
Other:

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10. Who influenced you to buy this

car?

Family
Advertising and promotional campaign
Person, who is owning the car
You decide your own
Friends
Other:

11. Why did you purchase this

car?

Advance Technology
After Sales Service
Company Name
No. Of Service Stations
Value For Money
Easy Availability Of Spare Parts
Other:

12. Source of finance of your car

is?

Own resourse
Bank loan
Company loan
Financial institutes
Other:

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13. From where you gathered information about the

car?

Newspaper and T.V. Ads.

Words of mouth
Dealer
Promotional campaign
Other:

14. Are you satisfied with your

car?

Strongly satisfied
Satisfied
Can't say
Dissatisfied
Strongly dissatisfied

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15. Rank your car on following attributes on scale of 1-5 .
(Where 1= Strongly satisfied, 2= Satisfied, 3= Can't say, 4= Dissatisfied And 5= Strongly
Dissatisfied)

1 2 3 4 5

Price

Comfort

AC''s

Fuel efficiency

Maintenance cost

Easy driving

Engine

Availability of accessories

16. Do you want to give any advice to the company .

17. Do you replace this

car?

Yes
No

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18. Yes, If you wanna replace your car than which car will you buy and why ?

BIBLIOGRAPHY
Newspapers, Journals & Magazines
•Business World
•The Economist
•Economic Times
•Auto car India

Websites
•www.hyundai.co.in
•www.hyundai.com
•www.google.com
•www.agencyfaqs.com
•www.brandchannel.com
•www.superbrands.org
•www.marketingprofs.com
•www.netmba.com
•www.economictimes.com
•www.blonnet.com
•www.ecnomist.com
•www.bsmotoring.com
•www.autoworld.com
https://forms.gle/iB4jqjJ4wDKnVTXF9

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