Indian Institute of Management, Sambalpur

Batch: 2023 – 25

Market Research Report on “EV Rental in Tier 3 Cities”

Under the Guidance of

Prof. Prasanna Kumar

In partial fulfilment of the course requirements of

Marketing Research

Presented by:
Group 2

Arpita Singh– 2023MBA171

Ashrut Sharma – 2023MBA174
Divyanshu Dhoundiyal– 2023MBA181
Neha Naincy– 2023MBA207
Ruchin Choudhary – 2023MBA319
Vishakha Tripathi – 2023MBA237

Date of Submission
March 12, 2024

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 Table of Contents

S. No. Title Pages

Table of Contents 2

1. Introduction 3

1.1 Problem Statement 3

1.2 Objective of the study 4

2. Qualitative Analysis 4

2.1 In-Depth Interview (IDI) Questionnaire for College Students (Male) 4

2.2 In-Depth Interview (IDI) Questionnaire for E-Commerce Delivery 6

Personal
2.3 In-Depth Interview (IDI) Questionnaire for Working Mother (Security 8
Guard)
2.4 In-Depth Interview (IDI) Questionnaire for College Students (Female) 11

3 Quantitative Analysis 13

3.1 Generic Questionnaire 13

3.2 Specific Questionnaire 15

3.3- 3.11 Quantitative Analysis of Different Factors 17-20

4. Recommendation on Quantitative Analysis 20

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1. Introduction
Title: A Market Research Study on Exploring the Viability of Electric Two-Wheeler
Rentals in Tier 3 Cities.
Electric vehicles (EVs) have emerged as a possible option to solve environmental issues and
urban mobility difficulties in the fast-expanding transportation scene. Due to the Indian
government's high objectives of electrifying the transportation sector and decreasing carbon
emissions, there has been a growing interest in electric mobility options nationwide. During
this period of change, the growing market for electric two-wheeler rental services has
attracted the interest of both customers and industry participants.

This market study aims to investigate the particulars of electric vehicle (EV) two-wheeler
rental services in Tier 3 cities in India. Tier 3 cities, which are generally disregarded in
discussions about urban mobility, provide distinct potential and problems for the
implementation of electric vehicles (EVs) and related rental services. This research intends
to get significant insights into the preferences, habits, and attitudes of prospective customers
towards electric two-wheeler rentals by specifically examining these cities.

This study aims to get a detailed knowledge of the elements that are either promoting or
impeding the adoption of electric vehicle (EV) two-wheeler rental services in Tier 3 cities. It
will do this by conducting a thorough examination of market trends, customer preferences,
regulatory frameworks, and competitive landscapes. This study aims to provide valuable
insights to industry players, policymakers, and stakeholders by addressing the gaps in the
existing literature and highlighting the untapped potential of these markets. The ultimate goal
is to assist in their strategic decision-making processes and contribute to the sustainable
growth of the electric mobility ecosystem in India.

1.1 Problem Statement

Although there is increasing interest in electric mobility solutions across India, the feasibility
of electric two-wheeler rental services in Tier 3 cities is still unknown. Although these
locations provide unique prospects for market development, they also present certain
obstacles that need to be resolved to promote universal acceptance. Hence, the primary
objective of this study is to ascertain the viability and reception of electric two-wheeler rental
services among customers residing in Tier 3 cities in India. The research has a specific goal
of comprehending the elements that influence customer preferences, behaviors, and attitudes
toward electric two-wheeler rentals. Additionally, it intends to discover the obstacles and
facilitators that affect the market penetration of these rentals in the cities. This research aims
to analyze market trends, regulatory frameworks, competitive landscapes, and consumer
insights to offer practical recommendations to industry players, policymakers, and
stakeholders. The goal is to help them effectively navigate and take advantage of the
opportunities in the growing electric mobility market in Tier 3 cities.
1.2Objective of the study
This market research study aims to evaluate the possibility of electric two-wheeler rental
services in Tier 3 cities in India. The research aims to gain insights into the elements that

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influence the adoption of electric two-wheeler rentals in Tier 3 cities by analyzing customer
preferences, behaviors, and perceptions, as well as market trends, regulatory frameworks,
and competitive landscapes. This thorough research aims to provide information to industry
participants, governments, and stakeholders about the unexplored opportunities and obstacles
in these markets. Ultimately, this will help in the sustainable expansion of the electric
mobility ecosystem in India.

2. Qualitative Analysis
2.1 In-Depth Interview (IDI) Questionnaire for College Students (Male)
1. Can you walk me through a typical day in your life, focusing on your transportation needs
and experiences?
2. What are the main challenges you face when it comes to getting around for daily tasks like
grocery shopping, commuting to work, and spending time with your girlfriend?
3. Could you elaborate on your frustrations with public transportation, particularly in terms
of reliability, cost, and convenience?
4. How do you currently cope with the challenges of transportation, such as waiting for
public transport or booking exclusive auto rides?
5. You mentioned renting electric two-wheelers as a preferred option. What factors influence
your decision to choose electric vehicles over traditional ones?
6. What specific features or services are most important to you when considering electric
two-wheeler rentals, such as pricing, availability, and quality of service?
7. How do you perceive the environmental impact of transportation choices, particularly
about CO2 emissions and energy conservation?
8. Could you elaborate on your concerns about the safety and reliability of electric vehicles,
especially considering recent incidents involving EVs catching fire?
9. What assurances or measures do you think would increase your trust in electric vehicles,
particularly in terms of quality testing and regulatory oversight?
10. Considering your height and your girlfriend's, as well as the need for a smooth riding
experience, what specific features or accommodations would you expect from an electric
vehicle rental service?
11. In your opinion, what role do electric vehicle charging stations play in your decision to
rent electric two-wheelers, and how important is their proximity to your college and other
frequented locations?
12. Can you share any past experiences or preferences regarding renting electric vehicles, if
any, and how they have influenced your perception of such services?
13. How do you envision the ideal electric vehicle rental and charging infrastructure to meet
your needs and preferences effectively?
14. Lastly, could you provide any additional insights or suggestions for improving the
accessibility, affordability, and sustainability of electric mobility solutions in your area?

User Persona Profile:

Name: Raj
Demographics:

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• Age: 20-25
• Gender: Male
• Location: Tier 3 City
• Education: College student
• Socioeconomic Status: Low-income
Psychographics:
• Raj is a diligent college student with a demanding academic schedule.
• He values independence and autonomy, preferring to travel alone for errands and leisure
activities.
• He cares about the environment and actively seeks eco-friendly solutions to reduce carbon
emissions.
• Raj values quality service and is willing to pay for it, but within his limited budget
constraints.
• He is tech-savvy and appreciates the convenience of electric vehicles for his daily
commuting needs.
• Raj enjoys spending quality time with his girlfriend and seeks affordable ways to do so.
Main Challenges:
• Limited income restricts his ability to afford personal transportation.
• Frustration with unreliable public transportation options and high costs of exclusive auto
rickshaw rides.
• Plan romantic outings or activities to maintain a healthy balance between academic
and personal life.
• Concerns about the safety and reliability of electric vehicles due to recent viral incidents.
Values:
• Independence and autonomy in his daily activities.
• Environmental sustainability and reducing carbon footprint.
• Quality service and affordability.
• Convenience and ease of transportation.
• Spending quality time with loved ones.
Motivation:
• Raj is motivated by the desire for efficient and economical transportation solutions that
align with his values of sustainability and affordability.
• He seeks reassurance and trust in electric vehicles, knowing that they offer a safer and more
environmentally friendly alternative to traditional petrol-powered vehicles.
• Convenience and ease of access to electric vehicle rental and charging stations near his
college are essential motivators for Raj.
Key Emotional Drivers:
• Frustration with current transportation options.
• Desire for independence and autonomy.
• Concern for the environment and future sustainability.
• Anxiety about safety and reliability.
Powerful Language:
• "Escape the frustration of waiting endlessly for unreliable public transport."
• "Empower yourself with the freedom to travel on your terms."

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• "Join the movement towards a greener, more sustainable future."
• "Experience the thrill of smooth and effortless rides."
• "Trust in our commitment to safety and quality assurance."

2.2 In-Depth Interview (IDI) Questionnaire for E-Commerce Delivery

Personal
1. Introduction:
• Can you please tell me a bit about yourself and your profession?
• How long have you been working as a delivery person for e-commerce orders, and what
motivated you to choose this line of work?
2. Usage Patterns:
• Could you describe a typical day in your life as a delivery person?
• How many deliveries do you usually make in a day, and what is the average distance you
cover?
• Can you walk me through the process of how you currently acquire and use electric two-
wheelers for your deliveries?
3. Challenges and Pain Points:
• What are some of the biggest challenges you face when it comes to transportation for your
deliveries?
• How do you currently overcome these challenges, and what impact do they have on your
daily routine and productivity?
• Are there any specific pain points or frustrations you experience with the existing rental
services for electric two-wheelers?
4. Rental Service Preferences:
• What factors are most important to you when choosing a rental service for electric two-
wheelers?
• How do you prioritize between cost, reliability, battery range, and other features when
selecting a service provider?
• Are there any specific features or services that you wish rental companies offered to better
meet your needs?
5. Battery Range and Charging:
• How crucial is the battery range of the electric two-wheeler for your daily deliveries?
• Can you describe your experiences with ensuring that the electric two-wheeler you rent has
enough charge to cover your delivery routes?
• What challenges do you face in terms of accessing charging infrastructure for electric
vehicles in your city?
6. Financial Considerations:
• How does the cost of renting an electric two-wheeler impact your budget and earnings as a
delivery person?
• Are you willing to pay a higher rental price for a more reliable or higher-quality service, or
do you prioritize affordability above all else?
7. Safety and Reliability:

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• What are your concerns regarding the safety and reliability of electric two-wheelers
provided by rental services?
• Have you ever encountered any issues related to vehicle maintenance, breakdowns, or
accidents while using rental electric two-wheelers?
8. Future Needs and Expectations:
• Looking ahead, what improvements or changes would you like to see in the rental services
available for electric two-wheelers in your city?
• How do you envision the ideal rental service that perfectly meets your needs as a delivery
person?
9. Environmental Consciousness:
• How important is the environmental impact of your work to you, particularly in terms of
using eco-friendly transportation options?
• Do you actively seek out or prefer rental services that offer electric two-wheelers as a more
sustainable alternative to traditional vehicles?
10. Closing Thoughts:
• Is there anything else you would like to share or any additional insights you think would be
helpful for us to know about your experiences as a delivery person using rental electric two-
wheelers?

User Persona Profile:

Name: Rajesh Kumar
Demographics:
• Age: 28-35
• Gender: Male
• Occupation: E-commerce Orders Delivery Personnel
• Income: Low to Moderate
• Location: Tier 3 City
Psychographics:
• Lifestyle: Busy and demanding
• Tech-Savvy: Moderate to high, familiar with electric vehicles
• Mobility Needs: High, constantly on the move for work
• Financial Attitude: Budget-conscious, seeks value for money.
• Environmental Awareness: Moderate, open to eco-friendly solutions
Main Challenges:
• Financial Constraints: Limited income restricts purchasing a personal vehicle.
• Mobility Issues: Needs to efficiently carry multiple orders throughout the city.
• Time Constraints: Long working hours demand quick and reliable transportation solutions.
• Limited Charging Infrastructure: Relies on rental services for charged EVs at pick-up
points.
Values:
• Affordability: Seeks cost-effective solutions that provide value for money.
• Reliability: Values dependable services that ensure smooth operations during work hours.
• Efficiency: Prioritizes time-saving solutions to meet delivery deadlines effectively.

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• Sustainability: Open to eco-friendly alternatives to minimize environmental impact.
Motivation:
• Job Performance: Strives to fulfil delivery commitments promptly and efficiently.
• Financial Stability: Seeks cost-effective transportation solutions to optimize earnings.
• Environmental Consciousness: Motivated to reduce carbon footprint by using electric
vehicles.
• Convenience: Values hassle-free rental services that provide charged EVs at convenient
pick-up points.
Key Emotional Drivers and Powerful Language:
•"Maximizing Efficiency": Highlighting how using electric two-wheelers can streamline
delivery operations, enabling Rajesh to complete more deliveries in less time.
•"Affordable Solutions": Emphasizing the cost-effectiveness of the rental service, reassuring
Rajesh that quality transportation doesn't have to break the bank.
•"Reliable Support": Assuring Rajesh of consistent availability of charged EVs at pick-up
points, relieving him of worries about battery range.
•"Eco-Friendly Advantage": Appealing to Rajesh's environmental consciousness by
showcasing the positive impact of using electric vehicles on reducing carbon emissions.
•"Empowering Mobility": Framing the rental service as a tool that empowers Rajesh to
overcome mobility challenges and excel in his demanding job.

2.3 In-Depth Interview (IDI) Questionnaire for Working Mother (Security

Guard)
1. Transportation Challenges:
• Can you describe your typical daily commute routine, including the modes of transportation
you use?
• What are the biggest challenges you face when it comes to transportation for your work,
dropping your kids to school, and running errands?
• How do you currently address these transportation challenges, and what solutions have you
tried in the past?
2. Quality and Reliability of Rental Services:
• When renting electric two-wheelers for your daily commute, what factors are most
important to you in terms of quality and reliability?
• Can you share any experiences you've had with electric two-wheeler rental services in
terms of vehicle performance and overall satisfaction?
• How do you typically assess the reliability and safety of a rental service before using it for
your commute?
3. Charging Station Accessibility:
• How important is the availability of charging stations for electric two-wheelers when
considering rental services?
• Have you encountered any challenges in accessing charging stations conveniently located
near your frequent destinations?
• What impact does the availability (or lack thereof) of charging infrastructure have on your
decision to rent electric two-wheelers for your commute?

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4. Financial Constraints:
• Can you discuss the financial considerations involved in renting electric two-wheelers for
your daily commute?
• How do the costs associated with rental services fit into your budget, and what strategies do
you employ to manage these expenses?
• Have you ever faced difficulties or felt strained financially due to the costs of transportation
for your work and other responsibilities?
5. Safety Concerns:
• How important is safety to you when choosing transportation options for your daily
commute, especially during night shifts and while traveling alone?
• What safety measures do you typically take to ensure your well-being during commutes,
and how do these concerns influence your choice of transportation?
• Can you describe any specific safety concerns or incidents you've encountered while
commuting, and how they have impacted your overall experience?
6. Emotional Impact and Coping Mechanisms:
• How do the challenges you face in transportation and balancing your responsibilities affect
you emotionally?
• What strategies or coping mechanisms do you employ to deal with the stress and anxiety
associated with these challenges?
• Are there any moments or experiences that stand out to you as especially difficult or
emotionally taxing in relation to transportation and daily commutes?
7. Long-term Goals and Solutions:
• Looking ahead, what are your aspirations or goals when it comes to transportation solutions
for your daily commute and responsibilities?
• In an ideal scenario, what features or services would your perfect electric two-wheeler
rental service offer to address your needs and concerns?
• How do you envision overcoming the challenges you face in transportation, and what
support or resources would be most helpful in achieving these goals?
8. Community and Social Support:
• To what extent do you rely on support from your community or social networks in
managing transportation challenges and responsibilities?
• Are there any community resources or initiatives that you've found helpful in addressing
transportation-related issues, such as carpooling or shared transportation services?
• How do you think community or government organizations could better support individuals
like yourself who face transportation barriers in their daily lives?
9. Reflections on Personal Journey:
• Looking back on your experiences with transportation and commuting, how do you feel
about the progress you've made and the challenges you've overcome?
• What lessons have you learned along the way, and how have these experiences shaped your
perspective on transportation and mobility?
• Is there anything else you'd like to share about your journey and the role that transportation
plays in your life?

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User Persona Profile:
Name: Maya Sharma
Demographics:
• Age: 30-40 years old
• Gender: Female
• Location: Tier 3 City
• Socioeconomic Status: Low-income
• Marital Status: Married
• Number of Children: 2 (Aged 7 and 10)
Psychographics:
• Occupation: Security guard at college
• Work Schedule: Demanding, involves long hours and night shifts.
• Daily Routine: Involves multiple commutes for dropping kids to school, going to work,
running errands, and shopping.
• Financial Constraints: Unable to afford personal vehicle, relies on daily rentals for
transportation.
• Technological Proficiency: Basic understanding of technology prefers hassle-free services.
Main Challenges:
• Limited Transportation Options: Unable to afford personal vehicle, relies on rental services
for commuting.
• Hectic Schedule: Juggling multiple responsibilities including work, childcare, and
household errands.
• Safety Concerns: Works night shifts and travels alone, prioritizes safety during commutes.
• Financial Constraints: Needs affordable rental options due to limited budget.
Values:
• Family: Prioritizes the safety and well-being of her children.
• Convenience: Values services that simplify her daily routines and errands.
• Affordability: Seeks cost-effective transportation solutions due to financial constraints.
• Safety: Values services that prioritize safety during commuting, especially during night
shifts.
• Sustainability: Prefers eco-friendly transportation options like electric vehicles.
Motivation:
Maya is motivated by the need to efficiently manage her hectic schedule while ensuring the
safety and well-being of her family. She seeks affordable and convenient transportation
solutions that align with her values of sustainability and safety. Maya's primary motivation is
to find reliable rental services that offer electric two-wheelers with charging stations
conveniently located near her frequent destinations like the college campus, residential area,
and market.
Key Emotional Drivers:
• Security: Maya seeks reassurance and peace of mind during her commutes, especially
during night shifts.
• Convenience: She desires services that simplify her daily routines and errands, reducing
stress and saving time.

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• Empowerment: Access to affordable and reliable transportation options empowers Maya to
fulfill her responsibilities and navigate her busy schedule with confidence.
Powerful Language:
•"Experience hassle-free commutes with our convenient rental services."
•"Ensure your safety during every journey with our reliable electric two-wheelers."
•"Empowering women like Maya to conquer their daily challenges with affordable
transportation solutions."
•"Simplify your busy life with our eco-friendly and cost-effective rental options."
•"Join Maya in her journey towards a safer, greener, and more convenient way of
commuting."

2.4 In-Depth Interview (IDI) Questionnaire for College Students (Female)

1. Introduction and Background:
• Can you tell me a bit about yourself and your current living situation?
• What motivated you to pursue your master's degree?
• How long have you been living in Sambalpur, and what were your experiences like in Delhi
before this?
2. Transportation Needs and Challenges:
• How do you currently navigate around Sambalpur and its surrounding areas?
• Can you describe any challenges you face in accessing transportation for your daily needs?
• How often do you find yourself needing to travel long distances, such as the 20 kilometres
to the market?
3.Experience with Electric Two-Wheeler Rentals:
• Have you ever used electric two-wheeler rental services before? If so, what was your
experience like?
• What factors do you consider when choosing a rental service for your transportation needs?
• Are there any specific features or services you prioritize when selecting a rental provider?
4.Financial Considerations:
• How important is affordability to you when it comes to renting a two-wheeler for daily use?
• Would you be willing to pay a slightly higher price for additional benefits or services, or is
minimal rental cost your primary concern?
• Have you encountered any unexpected fees or charges when renting electric two-wheelers
in the past?
5.Service Quality and Reliability:
• What aspects of a rental service are most important to you in terms of quality and
reliability?
• Have you ever experienced any issues with vehicle maintenance or reliability when renting
electric two-wheelers?
• How crucial is it for you to have access to charging stations near your college campus and
residential area?
6.Safety and Security:
• How important is safety to you when using rental two-wheelers for transportation?

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• What safety measures or features do you expect from a rental service to ensure your peace
of mind?
• Have you ever felt unsafe or vulnerable while using rental two-wheelers, particularly
during late-night outings?
7.Environmental Consciousness:
• Are you environmentally conscious when it comes to your transportation choices?
• How important is it for you to use eco-friendly modes of transportation, such as electric
two-wheelers?
• Would you be willing to prioritize sustainability over other factors when selecting a rental
service?
8.Future Expectations and Preferences:
• What improvements or additional services would you like to see offered by electric two-
wheeler rental services in Sambalpur?
• Do you have any specific preferences or requirements for your transportation needs in the
future?
• How do you envision your transportation needs evolving as you progress through your
master's program and beyond?
9.Closing Remarks:
• Is there anything else you would like to share about your experiences or preferences
regarding electric two-wheeler rentals?
• Do you have any final thoughts or suggestions for rental service providers based on your
experiences and needs?
• Thank you for taking the time to participate in this interview. Your insights are invaluable
in helping us understand the needs of individuals like yourself in Sambalpur.

User Persona Profile:

Name: Riya Sharma
Demographics:
• Age: 21
• Gender: Female
• Education: Pursuing Masters
• Previous Location: Delhi
• Current Location: Sambalpur (Tier 3 City)
• Living Arrangement: Resides within college campus
Psychographics:
• Lifestyle: Active and independent
• Tech-Savvy: Comfortable with technology, relies on digital solutions
• Environmental Consciousness: Concerned about sustainability, prefers eco-friendly options
like electric vehicles
• Social: Enjoys spending time with friends and exploring new places
Main Challenges:
• Limited Mobility: Lack of personal transportation options in a tier 3 city, with no nearby
markets, necessitates travel of around 20 kilometres for basic necessities.

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• Financial Constraints: Unable to afford personal vehicle ownership, seeks cost-effective
alternatives.
• Safety Concerns: Desires assurance of safety while traveling alone, particularly during
medical emergencies and late-night outings.
Values:
• Convenience: Seeks hassle-free transportation solutions that align with her busy academic
schedule and social commitments.
• Affordability: Values economical options that provide quality service without burdening
her limited budget.
• Sustainability: Prioritizes eco-friendly practices and supports initiatives that reduce
environmental impact.
Motivation:
• Independence: Wishes to maintain her independence even after her companion's departure,
requiring reliable transportation for various needs.
• Safety and Security: Prioritizes personal safety, especially in unfamiliar surroundings and
during emergencies.
• Convenience and Accessibility: Seeks accessibility to charging stations and rental services
conveniently located near her college campus, residential area, and marketplaces for
seamless travel experiences.
Emotional Drivers and Powerful Language:
• Empowerment: "Unlock Your Freedom with Riya's Choice - Renting Electric Two
Wheelers!"
• Peace of Mind: "Stay Safe and Secure with Riya's Trusted Electric Rental Services."
• Thrive in Independence: "Embrace Your Independence with Riya's Convenient Mobility
Solutions."
• Sustainable Living: "Join Riya in Building a Greener Tomorrow - Ride Electric, Ride
Responsibly!"

3. Quantitative Analysis
3.1 Generic Questionnaire

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 Fig :1 Generic Questionnaire for quantitative analysis

3.2 Specific Questionnaire

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Fig :2 Specific Questionnaire for quantitative Analysis

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Relationship between the satisfaction level of service based on age, the graphical analysis shows
that with the increasing level of age, the satisfaction level increased. The data appears to be
grouped into two categories, Group X and Group Y. It appears that younger people (18-25) tend
to be less satisfied with the service than older people (26-35).

3.4 Quantitative Analysis of Satisfaction Level Vs Gender.

How does the satisfaction level change with gender, from the graph it is evident that males were
comparatively more satisfied than women folks. The data is spread out more for women than for
men. The whiskers, which show the most extreme values, extend further for women than for
men. This suggests that there is a wider range of satisfaction levels among women who
responded to the survey.

3.5 Quantitative Analysis of Satisfaction Level Vs Average price charged

per kilometer.

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The better the price the better the satisfaction level. Customers paying more per kilometer tend to
report higher satisfaction, suggesting a link between price and service experience. However,
satisfaction levels vary at each price point, indicating other factors are also at play. Interestingly,
some high-paying customers remain unsatisfied, highlighting the complexity of price-
satisfaction dynamics.

3.6 Quantitative Analysis of Satisfaction Level vs. Speed of transportation and

price.

The analysis of satisfaction level with a conjoint analysis by using a conjoint argument, shows
people who go with higher segment prices are not very happy with the current services.

3.7 Quantitative Analysis of finding rental services easy/tough Vs Gender.

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