Asif Khan Maruti

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A PROJECT REPORT

ON

A STUDY ON COSUMER BEHAVIOUR TOWARDS MARUTI CAR

WITH SPECIAL REFERENCE TO SAGAR

Submitted in partial fulfillment of requirement for the degreeof

MBA-III SEM.

UNDER THE SUPERVISION OF SUBMITTED BYMISS ANKITA SHARMA ASIF NAGINA

TO

SWAMI VIVEKANAND UNIVERSITY, SAGAR (M.P.)

DECEMBER 201


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CERTIFICATE

This is to certify that Report entitled A STUDY ON CONSUMER BEHAVIOUR

TOWARDS MARITU CAR WITH SPECIAL REFERENCE TO SAGAR which is

submitted by MOHD. ASIF in partial fulfillment of the requirement for the award of

degree MBA. from SVN ni!ersity Sagar is a record of the candidate own wor"

carried out my Super!ision. The matter embodied in this report is original has not

been submitted for the award of any other degree

#ate Meno! N"#e

$MRS. NEHA DUBEY$


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DEC!ARATION

This is to certify that Report en%&e' A STUDY ON CONSUMER

BEHAVIOUR TOWARDS MARITU CAR WITH SPECIAL REFERENCE TO

SAGAR which is submitted by me in partial fulfillment of the requirement for

the award of degree MBA from SVN ni!ersity Sagar %omprises only my

original wor" and due ac"nowledgement has been made in the te&t to all other

material used.

NAM' () T*' ST#'NT

A++R(V,'# B- ( MOHD. ASIF)

............................................

*.(.# / #'AN $

S0AM, V,V'1ANAN# N,V'RS,T- SA2AR


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PREFACE

+reparing a pro3ect of this nature is an arduous tas" and , was fortunate

enough to get support from a large number o persons. , wish to e&press my deepsense of gratitude to all those who generously helped in successful completion

of this report by sharing their in!aluable time and "nowledge.

,t is my proud and pri!ilege to e&press my deep regards to Respected

*(# #r. +ramesh 2autam4 *ead of #epartment of Business Management4

S0AM, V,V'1ANAN# N,V'RS,T- SA2AR for allowing me to underta"e

this pro3ect., feel e&tremely e&hilarated to ha!e completed this pro3ect under the able

and inspiring guidance of MRS. N'*A #B'- She rendered me all possible

help me guidance while re!iewing the manuscript in finali5ing the report.

, also e&tend my deep regards to my teachers 4 family members 4 friends

and all those whose encouragement has infused courage in me to complete to

wor" successfully.

MOHD ASIF

MBA III SEM.


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ACKNOW!EDGEMENT

+reparing a pro3ect of this nature is an arduous tas" and , was fortunate

enough to get support from a large number o persons. , wish to e&press my deep

sense of gratitude to all those who generously helped in successful completion

of this report by sharing their in!aluable time and "nowledge.

,t is my proud and pri!ilege to e&press my deep regards to Respected4

*ead of #epartment #r.+ramesh 2autam4 #epartment of Business Management4 S0AM, V,V'1ANAN# N,V'RS,T- SA2AR for allowing me to

underta"e this pro3ect.

, feel e&tremely e&hilarated to ha!e completed this pro3ect under the able

and inspiring guidance of *e rendered me all possible help me guidance while

re!iewing the manuscript in finali5ing the report.

, also e&tend my deep regards to my teachers4 family members 4 friendsand all those whose encouragement has infused courage in me to complete to

wor" successfully.

MOHD. ASIF

MBA III SEM.


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CONTENTS

S.NO. PAGE

COVER PAGE

PREFACE

DEC!ARATION

CERTIFICATE

CHAPTER -1 INTRODUCTION

CHAPTER-2 RATIONA!E OF THE STUDY

SCOPE OF THE WORK

CHAPTER-" OBJECTIVE OF THE STUDYCHAPTER- !ITERATURE REVIEW

CHAPTER-# RESEARCH METHODO!OGY

CHAPTER-$ DATA INTERPETATION

CHAPTER-% RESU!T AND FINDINDS

CHAPTER-& !IMITATION

CHAPTER-' SUGGESTION

CHAPTER-10 CONC!USION

BIB!IOGRAPHY

UESTIONNAIRE

I*+/* * * A*345 I6*+7

The automobile industry is one of the core industries in ,ndia economy4 whose

prospect is reflecti!e of the economic resilience of the economy. ,ndian

automobile industry has come a long way to from the era of the Ambassador carto Maruti 677 to latest M/M 8ylo. An industry is highly competiti!e with a


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number of global and ,ndian companies present today. ,t is growing at a pace of

around 96: per annum for the last fi!e years and is pro3ected to be the third

largest auto industry by ;7: share in

domestic mar"et. The domestic twowheeler mar"et is dominated by ,ndian as

well as foreign players such as *ero *onda4 Ba3a3 Auto4 *onda Motors4 TVS

Motors4 and Su5u"i etc. Maruti dyog and Tata Motors are the leading

passenger car manufacturers in the country. And ,ndia is considered as strategic

mar"et by Su5u"i4 -amaha4 etc.

The ma3or players ha!e not left any stone unturned to be global. Ma3or of the

players ha!e got into the merger acti!ities with their foreign counterparts. Ci"e

Maruti with Su5u"i4 *ero with *onda4 Tata with )iat and latest Mahindra with

Renault.

,n twowheeler segment4 motorcycles ha!e the ma3or share4 *ero *onda4 the

leading bi"e manufacturer has more than @7: share in twowheeler segment4

followed by Ba3a3 Auto. ,n passenger car segment4 Maruti Su5u"i contributes

the @;: mar"et share4 with complete monopoly o!er the small car segments.

M/M en3oy the >;: mar"et share in Multi tility Vehicle in domestic mar"et.


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M8+* S9: I8 !*.

'stablished in #ecember 9D6

billion e&pansion pro3ect at the current site4 which has raised the total

production capacity to o!er 4774777

!ehicles.

,n the small car segment it produces the Maruti 677 and the Hen. The big car

segment includes the Maruti 'steem and the Maruti 9777. Along with them4 the

company also manufactures Maruti (mni. (ther models includes 0agon R andthe Baleno.


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*eadquarter in 2urgaon4 on 9? September ;77?4 Maruti dyog was renamed to

Maruti Su5u"i ,ndia Cimited. Both in terms of !olume of !ehicles sold and

re!enue earned4 the company is ,ndiaFs leading automobile manufacturers and

the mar"et leader in the car segment. Sales recorded in Eune ;7764 is Rs.

>4?@


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Buying beha!ior is an attempt to understand and predict human actions in the

buying role. The issues that dealt within the discipline of consumersI buying

beha!ior areJ

0hat products and ser!ices do the consumers buyK

*ow do they buyK

0hy do they buyK

)rom where do they buyK

0hen do they buyK

%onsumer beha!ior pro!ides a sound basis for identifying and understanding

consumer needs. ,t is the act of the indi!iduals directly in!ol!ed in obtaining

and using economic goods and ser!ices.

The study of consumer beha!ior is an essential component of mar"eting. The

adoption of mar"eting concept by the mar"eters pro!ides the impetus for the

study of consumer beha!ior.

,n case of New +roduct ,ntroduction in the mar"et4 there is a ris" of product

failure. To increase the chances of success of new products4 better information

of the consumer beha!ior is required. Their desires4 tastes and preferences are to

be ta"en care of. So from all these aspects the study of consumer beha!ior is

important.

The following are a few e&amples of the benefits of the study of consumer

beha!iour deri!ed by the different categories of peopleJ

9. A mar"eting manager would li"e to "now how consumer beha!iour will

help him to design better mar"eting plans to get those plans accepted

within the company.


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;. ,n a nonprofit ser!ice organisation4 such as a hospital4 an indi!idual in

the mar"eting department would li"e to "now the patientsF needs and how

best to ser!e those needs.


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There are four ma3or factors which influence the consumer buying beha!iour

are as followJ

CU!TURA! FACTORS

%ultural factors e&ert the broadest and deepest influence on consumer beha!ior.

The roles played by the buyers culture4 sub culture and social class are

particularly important.

CULTURE-

"asically, culture is the part of every society and is the

important cause of person wants and behavior. The

in#uence of culture on buying behavior varies from country

to country therefore mar!eters have to be very careful in

analy$ing the culture of dierent groups, regions or even

countries.

SUB-CULTURE-

%ach culture contains dierent subcultures such as religions,

nationalities, geographic regions, racial groups etc.


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&ar!eters can use these groups by segmenting the mar!et

into various small portions. 'or example mar!eters can

design products according to the needs of a particular

geographic group.

SOCIAL CLASS-

%very society possesses some form of social class which is

important to the mar!eters because the buying behavior of

people in a given social class is similar. n this way

mar!eting activities could be tailored according to dierent

social classes. (ere we should note that social class is not

only determined by income but there are various other

factors as well such as) wealth, education, occupation etc.


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SOCIA! FACTORS

REER!CE "ROU#S-

*eference groups have potential in forming a person

attitude or behavior. The impact of reference groups varies

across products and brands. 'or example if the product is

visible such as dress, shoes, car etc then the in#uence of

reference groups will be high. *eference groups also include

opinion leader +a person who in#uences other because of his

special s!ill, !nowledge or other characteristics.

A$IL%-

"uyer behavior is strongly in#uenced by the member of a

family. Therefore mar!eters are trying to nd the roles and

in#uence of the husband, wife and children. f the buying

decision of a particular product is in#uenced by wife then

the mar!eters will try to target the women in their

advertisement. (ere we should note that buying roles

change with change in consumer lifestyles.

ROLE A!& STATUSES-

%ach person possesses dierent roles and status in the

society depending upon the groups, clubs, family,

organi$ation etc. to which he belongs. 'or example a woman

is wor!ing in an organi$ation as nance manager. ow she is

playing two roles, one of nance manager and other of

mother. Therefore her buying decisions will be in#uenced by

her role and status.


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PERSONA! FACTORS

A buyerIs decisions are also influenced by personal characteristics. These

include the buyerIs age / stage in the life cycle4 occupation4 economic

circumstances4 lifestyle4 personality / self concept.

A"E ' STA"E I! T(E LIE C%CLE-

ge and life-cycle have potential impact on the consumer

buying behavior. t is obvious that the consumers change

the purchase of goods and services with the passage of

time. 'amily life-cycle consists of dierent stages such

young singles, married couples, unmarried couples etc

which help mar!eters to develop appropriate products for

each stage.

OCCU#ATIO!-

The occupation of a person has signicant impact on his

buying behavior. 'or example a mar!eting manager of an

organi$ation will try to purchase business suits, whereas a

low level wor!er in the same organi$ation will purchase

rugged wor! clothes.

ECO!O$IC CIRCU$CTA!CES-

Consumer economic situation has great in#uence on his

buying behavior. f the income and savings of a customer is

high then he will purchase more expensive products. /n the

other hand, a person with low income and savings will

purchase inexpensive products.

LIEST%LE-

0ifestyle of customers is another import factor aecting the

consumer buying behavior. 0ifestyle refers to the way a


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person lives in a society and is expressed by the things in

his1her surroundings. t is determined by customer interests,

opinions, activities etc and shapes his whole pattern of

acting and interacting in the world.

#ERSO!ALIT% A!& SEL-CO!CE#T-

2ersonality changes from person to person, time to time and

place to place. Therefore it can greatly in#uence the buying

behavior of customers. ctually, 2ersonality is not what one

wears3 rather it is the totality of behavior of a man in

dierent circumstances. t has dierent characteristics such

as) dominance, aggressiveness, self-condence etc which

can be useful to determine the consumer behavior for

particular product or service.

PSYCHO!OGICA! FACTORS

A personIs buying choices are influenced by four ma3or psychological factors

moti!ations4 perception4 learning4 beliefs and attitudes.

$OTI)ATIO!-

The level of motivation also aects the buying behavior of

customers. %very person has dierent needs such as

physiological needs, biological needs, social needs etc. The

nature of the needs is that, some of them are most pressing

while others are least pressing. Therefore a need becomes a

motive when it is more pressing to direct the person to see!

satisfaction.

PERCEPTION-

+erception is the process by which an indi!idual selects4 organi5es4 /

interprets information inputs to create a meaningful picture of the world. A


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moti!ated person is ready to act. *ow the moti!ated person actually acts is

influenced by his or her perception of the situation.

BELIES ' ATTITU&ES-

belief is a descriptive thought that a person holds about

something. Through doing 4 learning, people ac5uire beliefs

4 attitudes. These in turn in#uence their buying behavior.

2articularly important to global mar!eters is the fact that

buyers often hold distinct disbeliefs about brands or

products based on their country of origin. n attitude is

person6s enduring favorable or unfavorable evaluations,

emotional feelings, and action tendencies towards some

ob7ect or idea. 2eople have attitude toward almost

everything) religion, politics, clothes, music, food, and so on.

ttitude put them into a frame of mind of li!ing or disli!ing

an ob7ect, moving toward or away from it.

AUTOMOBI!E INDUSTRY IN INDIA

The ,ndian automoti!e industry has emerged as a Fsunrise sectorF in the ,ndian

economy. ,ndia is being deemed as one of the worldFs fastest growing passenger

car mar"ets and second largest two wheeler manufacturer. ,t is also home for the

largest motor cycle manufacturer and the fifth largest commercial !ehicle

manufacturer.

,ndia is e&pected to become the third largest automobile mar"et in the world.

)ord is loo"ing at ,ndia as a ma3or e&port hub4 as per Mr Eoginder Singh4

+resident and Managing #irector4 )ord ,ndia.

By ;7;74 the lu&ury car segment is estimated to be around three per cent of the

o!erall passenger car mar"et in ,ndia. So4 there is huge opportunity for growth.


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,ndia is going to be one of the biggest mar"ets for us4 worldwide4 according to

Tomas 'rnberg4 Managing #irector4 Vol!o Auto ,ndia.

,ndia is the largest base to e&port compact cars to 'urope. Moreo!er4 hybrid and

electronic !ehicles are new de!elopments on the automobile can!as and ,ndia is

one of the "ey mar"ets for them. 2lobal and ,ndian manufacturers are focusing

their efforts to de!elop inno!ati!e products4 technologies and supply chains.

C++* S/8+

The amount of cumulati!e foreign direct in!estment )#,$ inflow into the

automobile industry during April ;777 to No!ember ;79; was worth S= ?4@96

million4 amounting to > per cent of the total )#, inflows in terms of S=$4 as

per data published by #epartment of ,ndustrial +olicy and +romotion #,++$4

Ministry of %ommerce.

,ndiaFs scooter and motorcycle manufacturers ha!e registered > per cent growth

during AprilNo!ember ;79;4 according to the recent data released by the

Society of ,ndian Automobile Manufacturers S,AM$. Moreo!er4 the passenger

!ehicles segment grew at D.?9 per cent during AprilEune ;79;4 while o!erall

commercial !ehicle segment registered an e&pansion of .7 per cent yearon

year yoy$.

The ,ndian small and light commercial !ehicle segment is e&pected to more

than double by ;79@9 and to grow at 96.@ per cent compound annual growth

rate %A2R$ for the ne&t fi!e years4 according to a report titled4 FStrategic

Assessment of Small and Cight %ommercial Vehicles Mar"et in ,ndiaF by )rost

/ Sulli!an.


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M8;+ P866


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The Eoint Venture agreement was signed between 2o!ernment of ,ndia and

Su5u"i Motor %ompany now Su5u"i Motor %orporation of Eapan$ in (ct 9D6;.

The company went into production in a record time of 9< months and the first

car was rolled out from Maruti Su5u"i ,ndia Cimited 2urgaon in #ecember4

9D6 by manufacturing in totality one million !ehicles. ,t is "nown for

its mass production and selling of more than one million cars. Maruti Su5u"i

,ndia ltd is the ,ndiaIs automobile largest company which entered in the mar"et

with affirmed aim to render high quality fuel Gefficient and low cost !ehicles.

SAMP!E SI=E

The uni!erse for the study consists of teachers community in faculty of

commerce #ayalbagh 'ducational ,nstitute Agra. The number of respondents

included in the study was 9; out of ;7 sample or uni!erse for con!enience in

e!aluating and analy5ing the data and because of time constraint.


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RATIONA! OF THE STUDY

The study is global in scope4 since many of the ris"s in!ol!ed are global or

regional in nature.

)or this study4 stress is defined as a situation where pri!ate sector proponents

ha!e e&ited4 or are contemplating e&it from a pro3ect. ,nformation on stress was

deri!ed from the 0orld Ban"Fs +ri!ate +articipation in ,nfrastructure ++,$

dataset4 which was used as the source for much of the data used in the

estimation. This global dataset contains pro3ectspecific information on a large

number of pro3ects classifiable as +++4 including the total !alue of in!estment4

sector4 subsector4 type of transaction4 and multilateral participation. ,t co!ers

pro3ects which achie!ed financial closure from 9D6> up to the present. The data

is crosssectional4 with pro3ects classified according to their current status i.e.4

whether they are operational4 distressed4 canceled4 or concluded$. Although the

data is crosssectional4 it contains temporal information that can also be used in

analysis. Because the sample period spans the emergence of +++ in the late

9D67s4 through the Asian and Argentine crisis4 and beyond4 the sample includesmany pro3ects that ha!e undergone the most tumultuous e&periences in +++4 as


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well as the periods of consolidation that followed. The ++, dataset is augmented

by countryspecific macroeconomic data and4 where a!ailable4 additional

pro3ectspecific data such as country growth and e&change rate information.

Analy5ing and addressing stress also helps sta"eholders enhance +++Fs

attracti!eness as an in!estment4 by minimi5ing the fiscal and social impacts of

poorly designed and managed pro3ects.

SCOPE OF THE STUDY

The research was carried on in the 'astern Region of ,ndia. ,t is restricted to

Sagar where it has got 99 branch offices and < franchisees. , ha!e !isited

people randomly nearby my locality4 different shopping malls4 small retailers

etc.

OBJECTIVE OF THE STUDY

The basic ob3ecti!e of the pro3ect during the research and study will be focused

on the following parametersJ

To "now consume preference regarding small cars

To "now what features and ser!ices attract the customers

'ffect of brand image in buying beha!ior

,mpact of ad!ertisement in buying beha!ior

,mpact of celebrity endorsement in buying beha!ior

'ffect of family /friends in buying beha!ior )ocus group$

RESEARCH METHODO!OGY


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According to 2reen and Tall A research design is the specification of the

methods and procedures for acquiring the information needed. ,t is the o!erall

operational pattern or framewor" of the pro3ect that stipulates which

information is to be collected4 from where it is to be collected and by what

proceduresO

This research process based on primary data analysis and secondary data

analysis will be clearly defined to meet the ob3ecti!es of the study.

, chose the primary sources to get the data. A questionnaire was designed

in accordance with our mentor in Shirts. , chose a sample of about 5< P58


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Sampling planO is a distinct phase of research process. ,n this stage , ha!e to

determine who is to be sampled4 how large should be the needed sample and

how sampling unit is to be selected.

P>58*

,n my research4 , ha!e defined my population as a complete set of customers of

Sagar %ity.

S83>5 S+?7

As compared to census study4 a sample study has been conducted by us because

ofJ

0ide range of population4 it was impossible to co!er the whole

population

Time and money constraints.

S83>5 U*

,n this sur!ey , too" the list of customers from the dealers of Shirts

S83>5< T/@

Sampling technique implies the method of choosing the sample items4 the two

methods of selecting sample areJ

+robability method.

Nonprobability method.

+robability methodO is those in which e!ery item of the uni!erse has an equal

chance of the inclusion in the sample. Nonprobability methodsO are those that

do not pro!ide e!ery item in the uni!erse with "nown cause of being included in

the sampl

DATA SOURCES

Research is totally based on primary data. Secondary data can be used only

for the reference. Research has been done by primary data collection4 and


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primary data has been collected by interacting with !arious people. The

secondary data has been collected through !arious 3ournals and websites and

some special publications of B,RCA.

SAMP!ING

. S83>5< P+/+

The sample is selected in a random way4 irrespecti!e of them being in!estor

or not or a!ailing the ser!ices or not. ,t was collected through mails and

personal !isits to the "nown persons4 by formal and informal tal"s and

through filling up the questionnaire prepared. The data has been analy5ed by

using the measures of central tendencies li"e mean4 median4 mode. The

group has been selected and the analysis has been done on the basis

statistical tools a!ailable.

. S83>5 S9

The sample si5e of my pro3ect is limited to ;77 only. (ut of which only 95 D6


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AANA!YSISNA!YSIS INTERPRETATIONINTERPRETATION

Ine!-!e"%on

(b3ecti!e of the study J %onsumer buying beha!ior towards small / medium

car segment

)or this research pro3ect 4, choose the questionnaire as research tool and ta"e @7

participants who either willing to buy a car or ha!ing a car in small and middle

segment. So the findings are as follows


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. 1 D 7 6 /8+6

,nterpretationAmong @7 participants46>: respondents are currently ha!ing

car .Through we can find out the potential mar"et for car manufacturing

companies


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.2 W/ /8+ 7 6

,nterpretationJAmong 6>: respondents who ha!ing his own car

>


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,nterpretationJ

Appro& ?D: participants are satisfied with their current car i.e. their

e&pectation are fulfilled by the car and rest are unsatisfied with their car

performance

Some factor li"e mileage 4performance and easy ser!icing fulfill their

e&pectation


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. A+ 7 >58< * 47 8 /8+ * 8+ *+

,nterpretationJ

'!ery person wants to buy a car for himself or for his family. My research is

focus on middle income prospects and thus

?>: respondents are planning to buy a new car

;: respondents are not willing to buy new car in near future


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. # W/ 4+8 5 7 >++

,nterpretationJ Among @7 participants

@>:of respondents prefer to buy a car of Maruti


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. $ W7 5 7 >++ * 84? 3* /8+

,nterpretationJThe reason for the preference4 among @7 respondents

: followed by ser!ice and spares

.&. H +@*57 7 /8


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,nterpretationJ2enerally middle class respondents ne!er echange their car so

frequently so far. They will change their car after more then two year or abo!e

but the reason behind the changing the car are as follows

Almost @>: participants said tat they fed up with their car

Near


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,nterpretationJMiddle class segment generally influenced by family /friends

followed by brand as

@6: respondents influenced by family and friends

; : participants chane their decision due to brand because they are

brand conscious

Style / features are influenced only :

F8/*6


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F


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CON!USIONCON!USION RECOMMENDATIONRECOMMENDATION

)rom the analysis of the responses recei!ed from the customers in

#elhi4 o!erall findings show that Maruti Su5u"i is the most prefered

brand among the participants.

Maruti Su5u"i and *yundai4Tata Motors are the biggest competitor in

the small / madium car mar"et..

Among the fi!e attributes which we considered important for

customersI purchasing decision $ customers ga!e highest consideration

to mileage followed by the loo"s and style. (ther attributes li"e

comfort4 ser!ice and spares were considered later.

Most middle class person prefer Maruti Su5u"i in this segment and

usually they use car for their transport.

Ser!icemen still would li"e to go for small / medium car but withmileage with the first considerable thing followed by loo"s and style

and power.

Study shows that middle class segment highly influenced by family /

friends while purchasing the car. So companies should ad!ertise their

product targeted to families


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2radually *yundai / TATA captured the mar"et of Maruti due to

their new launching in small cars li"e TATA nanoetc and Maruti

should come up with more cheaper cars with the regular Maruti

Ad!antages li"e mileage.

6*8+

O4;/*? C63+ 47< 48?+ *8+6 63855 33 /8+

687 M8+* H8 GM TATA H78

M5

." I6 * >+6* /8+ > * 7+ >/*8*6

o -es

o No

'laborate 0hy -es Q 0hy No$. A+ 7 >58< * 47 8 /8+ * 8+ *+

o -es

o No

. # W/ 4+8 5 7 >++

o Maruti

o

*ondao 2M


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o TATA

o *yundai

I *+, * >586 6>/7..

. $ W7 5 7 >++ * 84? 3* /8+

o Mileage

o Coo"s and style

o %omfort

o Ser!ice and spares

o (ther

I *+, * >586 6>/7..

.6. *ow frequently do you change your carK 0hyKo 9; Months

o p to ; years

o More than ; year

o Till the life of the bi"e

R866

S*8*6 F86

T+

A?8/

T/5

R685

O*+

I *+, * >586 6>/7..

o )amily or )riends

o Ad!ertisement

o Brand

o Style / )eatures

o Technical Ad!ancement

o (ther ,ssue


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I *+, * >586 6>/7..

P+685 I+38*

N83

O//>8*

A

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Asif Khan Maruti