SYMBI OSIS

College of Arts and Commerce

An Autonomous College
affiliated to
The Savitribai Phule Pune University
 

A PROJECT REPORT ON

A STUDY OF CONSUMER BEHAVIOUR ON TWO WHEELERS

(AUTOMOBILE INDUSTRY)
 
BY
 
AISHWARYA SHARMA
Roll no. 8324
YEAR 2016-17
 
 ABSTRACT
Nowadays we observe that consumers’ hopes and expectations are
changing, so they require to have more information about products. Instead
of just accepting goods and services offered by firms, they expect firms to
produce what they want.
Consumers want to know products’ details and thus can compare them with
the similar products produced by other firms so that they may decide to
choose the best product for themselves before buying it. Consequently
firms have to offer sufficient information to their consumers about their
products as this kind of consumer behavior is already on the verge of
increase.
Consumers want to know products’ details and thus can compare them with
the similar products produced by other firms so that they may decide to
choose the best product for themselves before buying it. Consequently
firms have to offer sufficient information to their consumers about their
products as this kind of consumer behavior is already on the verge of
increase.
 Consumers want to know products’ details and thus can
compare them with the similar products produced by
other firms so that they may decide to choose the best
product for themselves before buying it. Consequently
firms have to offer sufficient information to their
consumers about their products as this kind of consumer
behavior is already on the verge of increase.
 So a study had been conducted on “Consumer
Behaviour Towards Two-Wheelers” in the city Pune,
with a sample of 50 middle class consumers by selecting
two wheeler motor bikes and scooters and data had
been collected through structured questionnaire.
 INTRODUCTION

Consumer behavior is comparatively a new field of study.

The seller’s market has disappeared and buyers market has
come up. This led to paradigm shift of the manufacturer‘s
attention from product to consumer and specially focused
on the consumer behavior. The evaluation of marketing
concept from mere selling concept to consumer oriented
marketing has resulted in buyer behavior becoming an
independent discipline. The growth of consumerism and
consumer legislation emphasizes the importance that is
given to the consumer. Consumer behavior is a study of how
individuals make decision to spend their available resources
(time, money and effort) or consumption related aspects
(What they buy? When they buy?, How they buy? etc.).
 It is broadly the study of individuals, or organizations and the
processes consumers use to search, select, use and dispose of
products, services, experience, or ideas to satisfy needs and its
impact on the consumer and society.

 The term “customer” is specific in terms of brand, company, or

shop. It refers to person who customarily or regularly purchases
particular brand, purchases particular company‘s product, or
purchases from particular shop. Whereas the “consumer” is a
person who generally engages in the activities - search, select, use
and dispose of products, services, experience, or ideas
 COMPANY PROFILE OF AUTOMOBILE INDUSTRY(SPECIAL FOCUS ON TWO WHEELERS)

 The Indian Automobile market is a promising industrial sector

that is growing immensely every passing year. The automobile
industry has an enormous opportunity for creating new wealth by
delivering value to the world and also to the domestic user. The
aim is to analyze the growth and role of automobile industry in
terms of production, domestic sales & exports and to analyze
special focus on segmental analysis of two wheelers industry in
India. The increase in the demand for automobiles, powered by
the increase in the income is the primary growth driver of the
automobile industry in India.
 The Indian automobile sector can be divided into several
segments:
 Two and three wheelers

 Passengers cars
 Commercial vehicles(Heavy CVs/Light CVs)
 Utility vehicles(UVs)and tractors
All the major players in the market including BAJAJ AUTO,
HERO HONDA,TVS SUZUKI,ESCORT YAMAHA work over
time to grab the slice of two wheelers pie as possible, the market
is suddenly roaring for action. Most of them like BAJAJ AUTO,
HERO HONDA, YAMAHA, TVS are adding of their existing
range by launching new state of art product to meet competition
head on.
The industry is characterized by a very high percentage (75%) of
production in the 2/3 wheelers sector. India ranks as the largest
manufacturer of motorcycles and second largest in manufacturing
of scooters in the world. In the two wheelers market India has the
world second largest market (after China).In India every month
sold nearly 3-lakh motor cycle. The two- wheeler industry is
among the few that have managed to face the industrial slow
down.
 OBJECTIVE OF THE STUDY:

 The following objectives have been framed keeping in view their

relevance under the present marketing scenario:
 To check the brand preference of customer & retailers towards
two wheelers.
 To check the customer & retailers satisfaction level.
 To know which particular two-wheeler have more image in the
market.
 To know the most influence media to create awareness regarding
two wheelers.
 To know the market share of two-wheelers.
 To study the reasons for purchasing a specific brand of two-
wheelers.
 To investigate the role of family and friends in consumer’s buying
decision.
 To identify the factors influencing consumers in the
selection and purchase of a particular brand of two-wheeler.
 To study the effectiveness of advertising on the purchase
decision and brand ratings.
 To compare consumer behavior of urban and rural
consumers.
 To analyze the impact of behavioral factors of consumers on
choosing particular brand of motor bike.
 To study the consumer’s opinion of their motor bikes
regarding its features like appearance, mileage, price etc.
 RESEARCH METHODOLOGY
Research Methodology is the systematic, theoretical
analysis of the methods applied to a field of study. It
comprises the theoretical analysis of the body of methods
and principles associated with a branch of knowledge.
Typically, it encompasses concepts such as  theoretical
model, phases and quantitative or qualitative techniques.
A methodology does not set out to provide solutions - it is,
therefore, not the same as a method. Instead, a methodology
offers the theoretical underpinning for understanding which
method, set of methods, or best practices can be applied to
specific case, for example, to calculate a specific result.
 
 DATA COLLECTION
 A. Sources Of Data –
 Primary Sources :
 The primary data required for the study has been collected from
 QUESTIONNAIRE survey among urban middle class customers.
 PERSONAL INTERVIEWS with the families regarding the
buying decisions and brand preferences
 Secondary sources :
 The secondary data has been collected from
 Internet, websites
 Field surveys
 Case studies
 Books
 B. Methods Of Data Collection –
 Observation
 Questionnaire
 Personal Interviews

 SAMPLE
Individuals that are interviewed are termed as “population”.
When employing a small part of the total population, the correct
denomination is called sample. If the research is designed
correctly, sample serves as a scale model of the population.
 SAMPLING UNIT
A complete interaction and observation of all the customers of
two wheelers was not possible so a sample was chosen of 50
families. When the questionnaires were mailed to the sample
population, the first objective was to get more respondents in the
limited time. So it was mailed 50 known families with whom
online interviews could be conducted if necessary. The city of
Pune was chosen for my study because it is a large, industrialized
and prosperous city with high population which gives the great
opportunity for people to have a wide range of different branded
two wheelers.
 SAMPLING PLAN
The sample was made up of government officials, bank
employees, students as well as businessmen.
 Sample Unit – Customers of two wheelers .
 Sample Size – 50
 COLLECTED DATA
INTERPRETATION
According, to the Socio-economic Characteristics and Two-
wheeler Usage Pattern of the Consumers generated from the
collected primary data and the questionnaire among the
respondents:

Two-wheelers are mostly used by men than women. Hence, the

emphasis has given to males for this study. 70 percent of the Two-
wheeler users surveyed here are males. As Two-wheelers are more
popular among the youth, that too in the age group of 25-35,
almost 66 percent of the Two-wheeler users surveyed here are
below 35 years of age.
With respect to Educational Qualification 30 percent of the
Two-wheeler users are Graduates while 50 percent of them
comprises of higher secondary and below. Also majority of
the Two-wheeler users are students with no income or
working class with an income level less than Rs.20000. This
clearly states that Two-wheelers are mostly preferred by
students and the customers with a monthly income of less
than Rs.20000. It is also clearly understood that 80 percent
of the Two-wheeler users are members of Nuclear family
and hence we can assume that Two-wheelers are mostly
preferred by Nuclear (middle class) family with a size of 3-4
members.
 With reference to the primary data and survey done , it was found
that 70 percent of the respondents preferred bikes over scooters
and moped.
It is also clearly understood from that the 60 percent point of
purchase of two wheelers were from dealers rather than sub-
dealers and the mode of purchase of two wheelers according to
the survey were 40 percent ready cash while 60 percent
comprises of bank loans and other sources of finance.
 FINDINGS
 Most of the customers tend to gather maximum information on two-wheelers
for making a final decision on which brand and model to be purchased.
 Age and Occupation of the respondents have an impact on the sources of
information about two-wheelers.
 Brand of two-wheeler owned, type of two-wheeler owned, duration of
ownership of the two-wheeler, the duration of changing the Two-wheeler and
the number of brands considered before making the final buying decision also
have some bearing upon the buying motives of the customers towards Two-
wheelers.
 Customers put more faith on the feedbacks given by the existing two-wheeler
users and word of mouth reviews they gather from friends, family members,
collegues etc. than any other sources of information.
 Customers are widely using internet and social media for collecting
information about the latest models of two-wheelers, reading online reviews,
checking customer feedbacks, making comparisons of brands/models etc.
before zeroing at a final choice and this process seems to influence their
purchase decision.
 Many of the customers seek the opinion and recommendation
of two-wheeler mechanics about the best brands and models
of two-wheelers available in the market before making a
purchase decision.
 There is an increasing tendency among the customers to read
the reports and review articles in newspapers and automotive
magazines for gaining more information about the latest
models of two-wheelers available in the market and their
features.
 Customers tends to show a very low reliance upon television
commercials of two-wheeler companies now a days, as they
provide some biased, exaggerated and self-boosting
information about their own products, which may not be right
always.
 CONCLUSION AND SUGGESTIONS
 Introduction of a new brand may turn the market oligopolistic but
will definitely increase the market share.
 Looks and style should not be over stressed as compared to
quality and mileage.
 Research and development facilities should coordinate with the
marketing wing to give a customers what they want.
 Focus should be on young teenagers and executives as they
represent large portion of two wheeler user segment.
 360 degree of marketing approach with aggressive promotional
campaigns should be followed.
 Provide better sales follow up which almost every brand lacks.
 The research has showed that the bikes/scooters users of all
brands are dissatisfied with their ‘after sales experience’.
 Indian customers do not use two wheelers for fashion but, as a
necessity so mileage should be a concern.