Chapter — IV Demographic Profile of Consumers of Cause, Consumer Pre-Purchase and Purchase Decision — An Analysis80 CHAPTER -IV DEMOGRAPHIC PROFILE OF CONSUMERS OF CAUSE, CONSUMER PRE-PURCHASE AND PURCHASE DECISION —AN ANALYSIS 4.1. INTRODUCTION TO DEMOGRAPHIC VARIABLES Consumers, while buying goods differ by nature in their taste, attitude, belief, income, sex, age, occupation, purchasing power, family situation and marital status because their characteristics are never simple such as age, sex, marital status, income, occupation, and education which are most often used as the basis for market segmentation. Demography refers to the vital and measurable statistics of a population. Demographics help to locate a target market, while psychological and socio cultural characteristics help describe its members how they think and feel. Leon and Leslie Lazar have explained that, “Demographic information is the most accessible and cost-effective way to identify a target market. Indeed, most secondary data, including census data, are expressed in demographic terms”. Demographics are easier to measure than other segmentation variables as they are invariably included in psychographic and socio cultural studies which add meaning to the findings. According to William D and Jerome, “Demographic variables are the most popular bases for distinguishing customer groups. One reason is that consumer wants, preferences and usage rates are °?_ The demographic environment often associated with demographic variables is of major interest to marketers because it involves people, and people make up markets. Internationally acclaimed authors of marketing in recent times Philip Kotler and Gary Armstrong have indentified that, “The world population is growing at an explosive rate. It now exceeds 6.5 billion people and will exceed 8.1 billion by the year 2030.The world’s large and highly diverse population poses both opportunities and challenges”. In this context it is81 better to collect about details their personal and demographic factors to understand their preference towards Maruti Suzuki Cars. The sample size of the research is 537, which is collected in a continued sampling method because the population is restricted to the car user in Chennai city with the particular brand 4.1.1 Age As consumer wants, abilities and preferences change with age. Sherkekar, Nirmala and Salvador have found that, “Age influences on consumer behaviour with reference to durable as well as non durable goods”. As product needs often vary with consumers age, marketers have found age to be a particularly useful demographic variable to distinguish segments. Many marketers have carved themselves a niche in the marketplace by concentrating on a specific age segment to increase their marketshare. The following table gives a clear view on different age group of consumers of car. Table No. 4.1 Age of Consumers Variables Frequency | Valid Percent Comulative 18-25 yrs 136 253 253 | 26- 35 yrs at 5.0 30.4 36-45 yrs 155 28.9 59.2 46-55 yrs im) 318 91.1 Above 55 yrs 48 89 100.0 Total 537 100.0 Source: Primary data82 It is found from the above table that 25.3% of the consumers belong to the age group of 18-25 years and 5.0% belong to 26-35years. Correspondingly the age groups of 36-45, and 46-55 represent 28.9% and 31.8% respectively. The unique representation of 8.9%is done by the age group above 55 years. ‘This percentage analysis of the sample unit reveals that the majority of car consumers are in the age group of 36 to 55 years. 4.1.2. Gender Gender is vital in determining the product utility, loyalty, need recognition and satisfaction, Kumar and Zeithmal in their analysis found that, “Male and female consumers have different perceived notion regarding price, quality and performance of the product’. The present research encountered with different consumer gender background. The following table gives a clear notion about male and female consumers of car Table No. 4.2 Gender of Consumers Variables Frequency | Valid Percent Cumulative Male 513| 955| 95.5 Female 24 4.5 100.0 Total | 537 100.0 Source: Primary data From the above table, it is found that out of 537 consumers of car, 95.5% of male consumers and 4.5% of female consumers independently purchased cars for their personal usage. The table also indicates that the sample unit is dominated by male consumers.83 4.1.3 Income A person’s economic condition will affect product choice. Marketers of income-sensitive goods watch trends in personal income, savings, and interest rates. Varshney R.L and $.L. Gupta in their futuristic study revealed that, “There has been a growth in the demand for passenger cars in Indian domestic market, with a 250 million-strong Indian middle class representing a strong buying power”®, Income segmentation has been used by the marketers of products and services such as automobiles, clothing. cosmetics and travel. Philip Kotler and Gary Armstrong have enlightened that, “Many companies target affluent consumers with luxury goods and convenience services””. The following table gives the information about the income of the respondent consumers. Table No. 4.3 Income of Consumers . Valid Cumulative Variables Frequency | porent Pact Less than 3 lakhs 168 31.3 313 3-5 lakhs 113 21.0 52.3 5-10 lakhs 132 24.6 76.9 Above 10 lakhs 124 23.1 100.0 Total 537 100.0 Source: Primary data From this table, it is understood that 31.3% and 21.0% of the sample are drawing income below Rs.3,00,000 and between Rs.3,00,000 and Rs.5,00,000 respectively. The income between Rs.5,00,000 and Rs.10,00,000 category is 24.6% and consumers drawing more than Rs.10,00,000 are to the extent of84 23.1%. This income table analysis shows that all the income groups are more or less equally representing in the sample. 4.1.4 Education Education is the single most important thing that separates humans from other species. In the present world, education is seen as the most important part of one’s life. Without it, one cannot have many chances of carving a successful life. Kalpendra in his analytical study explained that, “Education is the driving force of human development and has huge benefits in the fields of health, employment, poverty reduction, environmental awareness, and _ civic participation”. The following table gives a clear idea about the educational level of consumers of car. Table No. 4.4 Education of Consumers Variables Frequency roid eomulative ercent Percent Below $.8.L.C 20 37 37 H.S.C 43 8.0 11.7 UG 325 60.5 72.3 PG 66 123 845 Professionals 83 15.5 100.0 Total 537 100.0 Source: Primary data From the above table, it is known that out of 537 consumers of car 3.7% of them are below S.S.L.C and 8.0% of them are and H.S.C, 60.5% of them are Undergraduates and 12.3% of them are Postgraduates. The remaining 15.5% consumers are professionals. This clearly indicates the sample unit is dominated by UG level consumers.8&5 4.1.5 Area of Residence The researcher has divided the Chennai city consumer into five areas namely the East, the West, the Central, the South and the North for the study. The following table gives the information about the area of residence of the car users. Table No. 4.5 Education of Consumers . . Cumulative Variables Frequency | Valid Percent | “Devout East 45 8.4 84 | West 59 11.0 19.4 | Central 156 29.1 48.4 South 202 37.6 86.0 North 15 14.0 100.0 Total 537 100.0 Source: Primary data From this table, it is found that 8.4% and 11.0% of the consumers are residing in the area of the East and the West of Chennai city respectively. The Central and the South residence in the Chennai city represent 29.1% and 37.6% respectively and the consumers of the North represent to the extent of 14.0%%. This indicates that the South and the Central areas dominate the Maruti car users in Chennai city. 4.1.6 Type of Family The family is the most important consumer buying organization in society, and it has been researched extensively. C.B. Gupta and Rajan Nair have suitably explained that, “Marketers are interested in the roles and86 influence of the joint family and nuclear family in the purchase of different Despite the continuous and growing impact of products and services’ urbanization, secularization, and westernization, the traditional joint household, both in ideal and in practice, remains the primary social force in the lives of most Indians. Loyalty to family is a deeply held ideal for almost everyone. The following table gives a clear notion about the type of family of the car users. Table No. 4.6 Consumers Family Type Valid ] Cumulative ariabies Frequency | percent Percent Nuclear Family 366 68.2 68.2 Joint Family 171 318 100.0 Total 537/100. Source: Primary data From the above table, it is found that 68.2% of the consumers represent the nuclear family and the remaining 31.8% belong to the traditional joint family system. This indicates that the sample unit is dominated by car users of the Nuclear Family. 4.1.7. Number of Family Members The family system is given a lot of importance in India. Uma Chandrasekhar and Krishnamurthy have analyzed and revealed that, “Now a days cach and every member of the family is aware of many things which include durable products as well. Many times, the decisions are not taken by the individuals in the families but it is found that most of the times taken 10 jointly”. ‘Therefore, irrespective of the number of members in the family all the families are taken as a sample for this study. The following table exhibits the number of family members in the study. ;Table No. 4.7 No. of Family Members Variables | Frequency nom ' Cumulative 2 - 5 3 9 cB 82 153 162 4 259 48.2 64.4 5 and above 191) 35.6 100.0 Total 537 100.0 Source: Primary data 87 From this table, it is known that the 2 members family is to be .9% and 3 members family to be 15.3% and 4 members family to be 48.2% and 5 members family to be 35.6%. From this it is further observed that the families having four members dominate the sample unit. 4.1.8 Type of Residence Type of residence has a significant effect on consumer purchase behaviour. Independent house owner’s behaviour could be different from those consumers who are residing in a rental flat because of parking and other facilities. Consumers who are residing in a rental flat and having a problem with parking would choose a small car. The following table gives the information about the type of residence of the car users.88 Table No. 4.8 Type of Residence of Consumers Variables Frequency ee Cee Independent house (own) 334 622 22 Own Flat 153 28.5 90.7 Independent house (Rental) 23 43 95.0 Rental Flat 27 5.0 100.0 Total 537/ 100.0 Source: Primary data From this table, it is understood that 62.2% of the consumers are residing in their own independent houses and 28.5% of them in their own flats and 4.3% of the consumers are residing in the rental houses and 5.0% of them in the rental flats. This indicates that the consumers having own independent house dominate in this study. 4.1.9 Occupation Occupation is the widely used determinant of social class. A person’s ‘occupation affects the goods and services bought. Marketers try to identify the occupational groups that have an above-average interest in their products and services. A company can even specialize in making products needed by a given occupational group. In this context, S.L.Gupta and Sumitra Pal have rightly explained that, “Generation of income depends upon occupation held by the consumers. It is treated as segmentation variable widely used in products and sll services in durable”''. The following table shows the different occupation of respondents.89 Table No. 4.9 Consumers Occupation . " Cumulative Variables Frequency | Valid Percent) ~ event Government 47 8.8 | 8.8 | Private Service 81 15.1 23.8 Professionals | 57 10.6 34.5 Business | 329 613 95.7 Others 23 43 100.0 Total 537 100.0 Source: Primary data From the above table, it is observed that 8.8% of respondents are employed in the government organizations, where as 15.1% and 10.6% are in private service and professionals respectively. The majority of the samples size which is 61.3% belongs to business people. This percentage analysis of the sample unit reveals that the majority of people owning the Maruti cars are business people. 4.1.10 Marital Status ‘The married people would like to be more economical in their spending. Rajan Nair N and Sanjith R. Nair have further explained that, “Now a days in many families though there is a possibility of double income, marital status will have more impact on their spending and preference to particular produc The following table explains the marital status of respondents. 2,90 Table No. 4.10 Consumers Marital Status Variables | Frequency | Valid Percent Comalative Married a14| 71 77 Unmarried 123 2.9 100.0 Total 537 100.0 Source: Primary data It is inferred from the table that 77.1% of the sample consumers are married and 22.9% are unmarried. In this sample, it is found that the number of married consumers is more than the unmarried consumers 4.1.1 Year of Car Purchase Year is very an important aspect of consumers car purchase. It is always at the end of the year consumers make their car purchase because it is them the manufacturers offer the highest rebates to the consumer, because manufacturers are trying to move the last bit of inventory to make room for the New Year’s makes and models. The following table gives a clear view about the year of car purchase. Table No. 4.11 Consumers Year of Car Purchase a Valid Cumulative Variables Frequency | Percent Percent 2007 & before 243 45.3 45.3 2008 119 22.2 67.4 2009 84 15.6 83.1 2010 91 16.9 100.0 Total 537 100.0 Source: Primary data91 From the above table it is understood that 45.3% of the sample size bought their car before 2007 and before. 22.2% and 16.6% of respondents bought in the years 2008 and 2009 respectively and the remaining 16.9% consumers bought in the year 2010. The sample represents that more number of consumers bought their cars in the year 2007 & before. This indicates that the majority of the sample unit bought their cars in 2007 and before. 4.1.12 Purchase Purpose The first thing to consider when buying a car is, knowing the exact purpose of buying it. When consumers know and understand the purpose of buying a car, it will be easier for them to plan what type of car they want to buy, how much they have to spend and other things related to it. Having a purpose is essential for buying a car and having the imagination as to what their dream car looks like and the first step of getting the right car. The following table explains the consumers purpose of car purchase. Table No. 4.12 Consumers Purpose of Car Purchase Variables Frequency paid t Comulative [Own use 423, 78.8 78.8 | Commercial use | 7 3.2 819 Office use 19 3.5 85.5] Own cum office 78 oa 100.0 Total - 537 100.0 Source: Primary data From the above table institutes that 78.8% of the sample size bought their car for their own use. 3.2% and 3.5% of the respondents bought for their commercial and office use and the remaining 14.5% bought for own cum office92 purpose. This clearly indicates that the sample unit is preferred mostly for own and personal use. 4.1.13 No. of Cars Compact cars, especially hatchbacks predominate due to affordability, fuel efficiency, congestion, and lack of parking space in most cities. Maruti is a popular brand and has very good market share. Maruti 800, launched in 1984, created the first revolution in the Indian auto sector because of its low pricing. It had the highest market share until 2004, when it was overtaken by other low cost models from Maruti such as the Alto and the Wagon R. Car consumers are fascinated to go for more than one car. The following table exhibits the number of cars owned by consumers. Table No. 4.13 No. of Cars Owned by Consumers Variables Frequency Pee Cumulative Only one 239] 44s 44.5 2 187| 348] 7933 3 | 63| 7 ai 4 and above 48 8.9 100.0 Total 537 wool Source: Primary data ‘The above table explains that 44.5% of the respondents own only one car. 34.8% and 11.8% of the respondents own 2 and 3 cars respectively and the remaining 8.9% consumers own 4 and above. This indicates that the consumers having one car dominate the sample unit.93 4.1.14 Mode of Purchase Buying a car with cash is obviously the better choice as consumers would not be paying any extra money for buying the car in the form of bank interest. Of late, financing has become a highly prevalent trend in our society. It is an effective substitute for making cash payments and gives you an option of paying back the entire amount over a period of time by making E.M.I’s. Car financing is one of the most popular financing options car buyers go for. The following table is set to know the mode of car purchase. Table No. 4.14 Consumers Mode of Car Purchase Variables Frequency ae ‘ Cumulative | Cash basis 225 a9] at | Cash and eredit 308 | 574 99.3 Others P 4 | wv 100.0 Total 537| 100.0] Source: Primary data From the above table it is found that 41.9% of the sample size represents cash basis. 57.4% of the consumers bought through cash and credit basis and the remaining .7% of them consumers bought the car as gifts. This indicates the sample unit is mostly preferred cash and credit mode for car purchase. 4.1.15 Type of Fuel It is important to note that there is a general trend towards cleaner fuels and reducing the dependence on diesel and petrol. Nowadays, environmental impact of a fuel type is also considered during the purchase process. This is more so with the recent attention for global warming and the like. All the fuel94 types discussed here have different environment effects. The effect of usage of cach fuel depends upon the chemical content of fuel and the emission after combustion. Here, petrol has the disadvantage of emitting carbon monoxide, which is a very poisonous gas. The petrol engine’s exhaust smoke is invisible but it is quite a dangerous gas which also contributes for global warming. Diesel, though it emits dusty gas, has more environment friendly emissions than petrol. Diesel fumes do not contain certain harmful gases present in petrol fumes. Nonetheless, LPG/CNG are much more environmental friendly because it is completely combusted and produces a clean exhaust gas. So the researcher has taken due care in preparing the following table. Table No. 4.15 Type of Fuel Used by the Consumers Variables Frequency | Valid Percent | Cumulative Diesel 114 21.2 21.2 [Petrol 397 BI 95.2 LPG (Duo) 26 48 100.0 Total P 537 100.0 Source: Primary data From the above table it is empirical that 21.2% of respondents are using diesel, where as the majority of 73.9% of the respondents use petrol cars and the remaining 4.8% of consumers use LPG. It clearly indicates that there is more number of consumers uses petrol cars than other type of fuel cars.95 4.1.16 Car Segment Market sectors are usually determined by market segmentation, which divides a market into different categories. Cars may be classified by a number of different criteria; however, comprehensive classification is elusive, because a vehicle may fit into multiple categories, or do not completely satisfy the requirements for any. The smaller the sector, the more its members will have in common. Sellers may decide to compete in the whole market or only in segments that are attractive to them or where they have an advantage. The numbers of respondents possessing different car segments are given below. Table No. 4.16 Consumers Car Segment Variables Frequency poe ‘ Cumulative Compact Car (small car) 184 343 343 Mid-size hatchback 226 2.1 764 Semi-luxury sedan 104 19.4 95.7 suv 18] 34 99.1 MUV : 5 9 100.0 Total : 537 100.0 Source: Primary data From the above table it is confirmed that 34.3% of consumers drive Maruti small cars. 42.1% of the strong consumers drive Maruti mid-size hatchback cars and 19.4% of the consumers drive Maruti semi-luxury sedan cars and the remaining 3.4% of consumers drive Sports utility vehicle with more powerful engine for adventure. This clearly indicates that the attraction of the respondents is more for the Mid-size hatchback car segment.4.1.17 Brand 96 In the contemporary world of marketing, brand plays a very vital role in attracting consumers to indentify the brand name of one maker to the other maker. Maruti Suzuki has more than 14 brands in the Indian market and each brand is targeted to a group of consumers in several segments. Thus makes possible for the company to be the market leader with strong market share. The following table gives a clear notion about the consumer brand of Maruti Cars. Table No. 4.17 Consumers Brand of Maruti Cars Variables Frequency vid Cumulative Martui 800 52 9.7 97 Alto B 13.6 233 Swift 149 27.7 51.0 Wagon R 58 10.8 61.8 A Star 5 9 62.8 | Ritz 18 34 66.1 Swift Dire 58 10.8 76.9 Sx4 27 5.0 | 81.9 Other models 97 18.1 100.0 Total 537 100.0 Source: Primary data From the above table it is found that 9.7% of consumers drive Maruti 800. 13.6% of consumers drive Maruti Alto cars. 27.7% of strong consumers drive Maruti Swift. 10.8% of consumers drive Wagon R, .9% and 3.4% consumers drive A Star and Ritz respectively. 10.8% and 5.0% of consumers own Swift Dzire and Sx4 models. the remaining 18.1% of consumers experience with the97 SUV type of models like Grant Vitra and Gypsy. It is clear that the majority of the consumers of the sample size drive Maruti Swift for its contemporary look and design. 4.1.18 Consumers Choice of Next Purchase Increasing competition between makes has intensified the importance of brand identity. As product standards continue to rise, the perceived image of a car make plays a key role in the buying decision. Maruti Suzuki must develop attributes and values that reflect changing social values which influence buyers emotionally, in order to maintain their positions in the Indian market. Table No. 4.18 Consumers Choice of Next Purchase Variables Frequency paid a | Cumulative Maruti Suzuki 147 274 274 Hyundai 119 22 49.5 | Tata 49 1 58.7 Ford 218) 40.6 993 Other 4 7 100.0 Total 7 537 100.0 Source: Primary data From the above table it is understood that 27.4% of consumers of the sample size are likely to continue with Maruti brands. 22.2% and 9.1% of consumers are wi ing to drive Hyundai and Tata cars. 40.6% of the sturdy consumers prefer Ford cars and the remaining .7% of the sample size prefer to go for German luxury cars like VW, BMW, AUDI and Mercedes Benz. The study clearly indicates that the majority of consumers are not willing to go for98 Martui Suzuki cars on their next purchase rather they prefer Ford for its brand value and better performance. 4.2 FACTORS OF CONSUMERS BEHAVIOUR TOWARDS CAR The present study exposes consumer behaviour changes during the purchase of cars. In order to study the behaviour aspects the various behavioural consumer elements such as Pre-purchase, Product Attribute, Purchase Decision, Information Search and Post-purchase behaviour are thoroughly analyzed to sharply estimate factors that affects purchase behaviour of car consumers in Chennai. Since these consumer behaviour elements are ascertained through multi variable in likert’s five point scale a systematic reduction because highly indispensable for the consistent and unbiased estimate of the sample unit. In this context, factor analysis is applied to reduce the variables into predominant factors. 4.2.1 Factors of Pre-purchase Behaviour The Pre-purchase behaviour of the consumers comprises 21 variables in Likert’s five point scale, which need to be reduced. The application of factor analysis presented the following table. Table No. 4.19 KMO and Bartlett's Test of Pre-purchase Behaviour Kaiser-Meyer-Olkin Measure of 16 Sampling Adequacy. Bartlett's Test of | Approx. Chi-Square | 359.762 Sphericity ar 210 Source: Computed data From the above table it is found that the Kaiser-Meyer-Olkin value point .716 and the approximate value of Bartlett's Test of Sphericity is 3595.762,99 which are statistically significant. This indicates the sample size is adjustable for the data reducing. The following communality table gives the variance range of the 21 variables. Table No. 4.20 Communalities of Pre-purchase Behaviour [| tnitiat | extraction | PRI | 1.000 497 PR2 | 1.000 623 PR3_| 1.000 77 PR4_| 1.000 651 | PRS 1.000 726 | | pre | 1.000 616 | | PR7 | 1.000 582 PR8 | 1.000 ATA PRO | 1.000 656 PRIO | 1.000 743 | Pri | 1.000 687 | PRI2 | 1.000 673 PRI3 | 1.000 61! PRI4 | 1.000 685 PRIS | 1.000 532 PRI6 | 1.000 558 PRI7 | 1.000 53 pris | 1.000 784 PRI9 | 1.000 646 PR20 | 1.000 794 PR21 | 1.000 735 Source: Computed data