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Chameli Devi Institute of Management & Research
Indore
MUV (Multi utility vehicles): A Study of Factors
Affecting Buying Behaviour
A
Major Research Project
Report
Submitted for the Partial Fulfilment
Of the Award of
Post Graduate Diploma in Management Course
By
Chameli Devi Institute of Management & Research
(2008-2010)
Research Guide: Research Candidate:
Prof. TARUN KUSHWAHA RAJEEV SINGH
Faculty CIMR, Indore Batch (2008-2010)
AICTE Enrolment No.
08/CDIM/MP/PGDM/FT/038
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Certificate of Faculty Guide
This is to ce
tif y that Rajeev Singh stude ¡ t of PGDM Program has completed
his Major Research Pro ject e ¡ titled M V M lti tilit i l A
t F t A ti B i B i under my guidance ¢
He carried this pro ject with full sincerity and dedication.
Faculty Guide Date:
Prof. TARUN KUSHWAHA
Faculty CIMR, Indore
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STUDENTS DE CLARATION
I hereby declare that the pro ject report entitled M V M lti tilit
i l A t F t A ti B i B i submittedby me to Chameli Devi Institute of Management & Resear ch (CIMR), Indore for
consideration of the award of Post Graduate Diploma in Management (PGDM)
represents my own work except for the guidance and/or suggestions received,
which have been suitably acknowledged.
I further state that this work does not form part of my or any other report
submitted to this or any other University/Institution for the award of any
degree or diploma.
Date:
Place:
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ACK NOW LEDGEMENT
I take great pleasure in expressing my deep sense of gratitude and heartf elt
thanks to all those who helped me throughout this pro ject. I consider this
privilege to acknowledge my special thanks to my respected f ather Shri S.S.
Rajput and my respected mother Smt. Asha Singh Rajput as due to their
support and guidance I am standing here and doing the pro ject and also I
would like to express my heartf elt gratitude to all who have shared their
valuable time and helped me directly or indirectl y in the preparation of this
pro ject.
I am very thankful to Dr. Naresh Singh, Director CIMR and also I would like to
grab this opportunity to acknowledge my most respectable guide Prof . Tarun
Kushwaha under whose able guidance my pro ject could get a shap e.
It will be unf air if I will not thanks to my f amily and my f riends who had
supported me, motivated me and they all increase my enthusiasm for the
completion of assigned job and there support made it possible for me to
achieve this task.
Rajeev Singh
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TABLE OF CONTENTS
Chapter-1 Pag
INTRODUCTION 01 06
Conceptual Framework 07 10
Review of Literature 11
Ob jective of Study 12
Chapter-2
METHODOLOGY 13 15
The Research Design 14
The Sample 14
The Tools 15
For Data Collection For Data Analysis
Chapter-3
DATA ANALYSIS & DISCUSSIONS 16 21
Chapter-4
CONCLUSION 22 23
Chapter-5 LIMITATIONS 24 25
Chapter-6
SUGGESTIONS AND IMPLICATIONS OF STUDY 26 28
Chapter-7
REFERENCES 29 30
Chapter-8
APPENDICES 31 36
Q uestionnaire 32 34
Data Sheet
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INTRODUCTION
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CONCEPTUAL FREMEWORK
The passenger car business comprises of MUV S and cars, as is thecase in rest of the world. It is only in India that they have been looked
as two separate business segment due to historical reasons. Coming to
the market scenario, it has not been a good time for the car industry
with growth continuing to be sluggish. As a result the industry in the
first five month of FY 2010has remained virtually flat in fact it has
declined marginally. The main reason for this is that there is an
absence of a feel good factor. for car sales or for that matter, most of
the consumer durable items, it is very essential that people be in
positive frame of mind. The problem is not of funds. The banks areflush with funds and even consumers have money but they are
postponing their purchases in these times of insecurity and
uncertainty.
We are witnessing such a trend, which has taken away a chunk of car
volumes. This is evident from the fact that the personal segment in
utility vehicles is showing healthy growth rates as compared to the
commercial segment where the demand growth is sluggish. Even we
are witnessing higher growth from the personal segment.
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REVIEW OF LITERATURE:
AN OVERVIEW OF CONSUMER BUYING BEHAVIOUR
Definition:
Consumer behaviour refers to the mental and emotional process and the observable behaviour
of consumers during searching, purchasing and post consumption of a product or service.
Consumer behaviour involves study of how people buy, what they buy, when they buy and
why they buy. It blends the elements from psychology, sociology, sociopsychology,
anthropology and economics. It also tries to assess the influence on the consumer fromgroups such as family, friends, reference groups and society in general.
Buyer behaviour has two aspects: the final purchase activity visible to any observer and thedetailed or short decision process that may involve the interplay of a number of complex
variables not visible to anyone.
Factors Affecting Consumer Buying Behaviour:
Consumer buying behaviour is influenced by the major three factors:
1. Social Factors2. Psychological Factors
3. Personal Factors.
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A. Social Factors
Social factors refer to forces that other people exert and which affect consumers¶
purchase behaviour. These social factors can include culture and subculture, roles and family,
social class and reference groups.
Example:
By taking into consideration Reference group, these can influence/ affect the consumer buying behaviour. Reference group refers to a group with whom an individual identifies
herself/ himself and the extent to which that person assumes many values, attitudes or behaviour of group members. Reference groups can be family, school or college, work group,
club membership, citizenship etc.
Reference groups serve as one of the primary agents of consumer socialization andlearning and can be influential enough to induce not only socially acceptable consumer
behaviour but also socially unacceptable and even personal 6 destructive behaviour.
For example, if fresher student joins a college / university, he/she will meet different
people and form a group, in that group there can be behaviour patterns of values, for example
style of clothing, handsets which most of group member prefer or even destructive behaviour
such as excessive consumption of alcohol, use of harmful and addictive drugs etc. So,
according to how an individual references him / herself to that particular reference group, this
will influence and change his/her buying behaviour.
A. Psychological Factors
These are internal to an individual and generate forces within that influence her/his purchase behaviour. The major forces include motives, perception, learning, attitude and personality.
Example:
Attitude is an enduring organization of motivational, emotional, perceptual and
cognitive processes with respect to some aspect of our environment. Consumer form attitude
towards a brand on the basis of their beliefs about the brand. For example, consumers of Sony
products might have the belief that the products offered by Sony are durable; this will
influence those customers to buy Sony products due to this attitude towards the brand.
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C. Personal Factors
These include those aspects that are unique to a person and influence purchase
behaviour. These factors include demographic factors, lifestyle, and situational factors.
Example:
Lifestyle is an indicator of how people live and express themselves on the basis of their activities, interests, and opinions. Lifestyle dimension provide a broader view of people about
how they spend their time the importance of things in their surroundings and their beliefs on broad issues associated with life and living and themselves. This is influenced by
demographic factors and personality.
Definition:
Consumer buying decision process is the processes undertaken by consumer in regard
to a potential market transaction before, during and after the purchase of a product or service.
Consumer decision making process generally involves five stages:
Need Recognition
Purchase decision making process begins when a buyer becomes aware of an
unsatisfied need or problem. This is the vital stage in buying decision process, because
without recognizing the need or want, an individual would not seek to buy goods or service.
There are several situations that can cause problem recognition, these include:
Depletion of stock
Need
Recognition Post
PurchaseAlternative
EvaluationSearch
Information
Purchase
Action
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Dissatisfaction with goods in stock
Environmental Changes Change in Financial Situation
Marketer Initiated Activities
Example:
When a person recognizes that he/she is having a difficulty that he/she is not able to
travel with his/her family member. Then recognizes that his/her must have car and needs to
buy a new car.
Information Search
After the consumer has recognized the need, he / she will trying to find the means to
solve that need. First he will recall how he used to solve such kind of a problem in the past,
this is called nominal decision making. Secondly, a consumer will try to solve the problem byasking a friend or goes to the market to seek advice for which product will best serve his
need, this is called limited decision making.
Sources of information include:
Personal sources
Commercial Sources
Public sources
Personal experience
Example: (continuing from previous«)
The person after recognizing that his/her need, he/she will eventually try to find
out how he/she can purchase the car. If he/she cannot make a decision his/herself then he/shewill ask a friend to help out, if the friend do not have sufficient knowledge, he/she would go
to automobile showroom of a different different company and try to get adequate informationregarding price, feature, performance and after sale service.
Alternatives evaluation
Consumers¶ evaluates criteria refer to various dimension; features, characteristics
and benefits that a consumer desires to solve a certain problem. Product features and its
benefit is what influence consumer to prefer that particular product. The consumer will
decide which product to buy from a set of alternative products depending on each unique
feature that the product offers and the benefit he / she can get out of that feature.
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Example: (continuing from previous«)
When that user got enough information concerning the different brands of cars
available in the market, he/she will decide which kind of car and also which company or
brand he/she is going to buy depending upon his/her need.
Purchase Action
This stage involves selection of brand and the retail outlet to purchase such a
product. Retail outlet image and its location are important. Consumer usually prefers a nearby
retail outlet for minor shopping and they can willingly go to a far away store when they
purchase items which are of higher values and which involve higher sensitive purchasedecision. After selecting where to buy and what to buy, the consumer completes the final step
of transaction by either cash or credit.
Example: (continuing from previous«)
After selecting company or brand of the car and model from different alternatives of
cars, he/she will make a final decision of where to buying that car and make the final
transaction procedures.
Post-purchase Actions
Consumer favourable post-purchase evaluation leads to satisfaction. Satisfactionwith the purchase is basically a function of the initial performance level expectation and
perceived performance relative to those expectations. Consumer tends to evaluate their
wisdom on the purchase of that particular product. This can result to consumer experiencing
post purchase dissatisfaction. If the consumer¶s perceived performance level is below
expectation and fail to meet satisfaction this will eventually cause dissatisfaction, and so the
brand and/ or the outlet will not be considered by the consumer in the future purchases. This
might cause the consumer to initiate complaint behaviour and spread negative word-of-mouth
concerning that particular product.
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Example: (continuing from previous«)
If he/she decided to buy a car he/she will try to compare the performance, speed,
mileage and comfort of the particular car, whether they meet his/her expectations. If he/she
would find that his/ her expectations are meet she will be satisfied, if she found that there are
more additional features that he/she did not expect this car to have, she will be delighted,
otherwise she will be dissatisfied.
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INTRODUCTION TO AUTOMOBILE INDUSTRY
The automobile industry has changed the way people live and work. The earliest of modern
cars was manufactured in the year 1895.
Shortly the first appearance of the car followed in India. As the century turned, three cars
were imported in Mumbai (India). Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the beginning of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was
created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by
Henry Ford's first experimental car that same year.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost
that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminium body.
It was usually driven by chauffeurs and emphasis was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes.
Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminium body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited
more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than
their predecessors.
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The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless
tires.
The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It
was built on compact and stylized lines, and was capable of 230 kmh (144 mph).
This was the Indian automobile history, and today modern cars are generally light,
aerodynamically shaped, and compact.
Facts & Figures
The automobile industry in India is on an investment overdrive. Be it passenger car or two-
wheeler manufacturers, commercial vehicle makers or three-wheeler companies - everyone
appears to be in a scramble to hike production capacities. The country is expected to witness
over Rs 30,000 corer of investment by 2010.
Over the next one year, some 20 new cars will be seen on Indian roads. Take note of this,Maruti Udyog is coming up with new ³SPLASH´ during the next few months.
Hyundai will also be unmasking the Verna and a brand new diesel car. General Motors will
be launching a mini and may be a compact car.
Most of the companies have made their intentions clear. Maruti Udyog has set up the second
car plant with a manufacturing capacity of 2.5 lakh units per annum for an investment of Rs
6,500 corer (Rs 3,200 corer for diesel engines and Rs 2,718 corer for the car plant itself).
Hyundai and Tata Motors have announced plans for investing a similar amount over the
next 3 years. Hyundai will bring in more than Rs 3,800 crore to India. Tata Motors will be
investing Rs 2,000 crore in its small car project.
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General Motors will be investing Rs 100 crore, Ford about Rs 350 crore and Toyota
announced modest expansion plans even as Honda Siel has earmarked Rs 3,000 crore over
the next decade for India - a sizeable chunk of this should come by 2010 since the company
is also looking to enter the lucrative small car segment.
.Talking about the commercial vehicle segment, Ashok Leyland and Tata Motors have each
announced well over Rs 1,000 crore of investment. Mahindra & Mahindra's joint venture
with International Trucks is expected to see an infusion of at least Rs 500 crore.
Industry performance in 2008-09
The Indian automotive market managed to stand up to the vagaries of the economic
meltdown to show slightly positive growth during fiscal 2008-09. Overall vehicle sales at
97.23 lakh grew 0.71 per cent from 96.54 lakh units in 2007-08.
When major automotive markets reported a 30-40 per cent decline, only a handful of
countries managed to show positive growth. A few months ago, India was looking at negative
growth but has turned around. It is actually better than expected.
Passenger vehicle sales at 15.51 lakh registered flat growth while commercial vehicle salesshowed a 21 per cent drop.
SIAM has a positive outlook for the current financial year. While it foresees a 7-8 per cent
growth for the commercial vehicle segment, the industry body predicts a 3-5 per cent growth
for passenger vehicles. The three-wheeler segment may grow 5-8 per cent growth while two-wheelers may show 3-5 per cent growth.
The passenger vehicle market has weathered the downturn largely due to market leader
Maruti Suzuki which holds 48 per cent of the market. The compact car giant clocked 7.22
lakh units for 2008-09. Closest rival Hyundai Motor India sold 2.44 lakh cars, a growth of
13 per cent. Tata Motors¶ sales grew 1.3 per cent at 2.30 lakh units while Mahindra &
Mahindra posted 2.5 per cent growth at 1.06 lakh units.
Most premium carmakers saw volumes shrink last fiscal. Toyota Kirloskar Motor¶s
numbers fell 15 per cent to 46,892 units while Ford India¶s sales were down 17 per cent to
27,976 units. Honda Siel Cars India also saw a 17 per cent drop at 52,420 units while
General Motors India was down 8 per cent to 61,526 units.
Among commercial vehicle makers, all major players saw substantial fall in volumes. Market
leader Tata Motors with a 60 per cent plus share, showed 22 per cent drop in numbers at
2.34 lakh units while Ashok Leyland showed 37 per cent drop at 47,632.
Eicher¶s sales volume fell 37 per cent at 17,341 units and Force Motors was down 28 per
cent at 7,819 units. ³The freight movement is unlikely to improve this fiscal which willimpact truck sales.
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Two-wheeler sales grew 2.6 per cent to 74.38 lakh units. ³Hero Honda has made up for the
erosion of sales volume for other two-wheeler makers including Bajaj Auto and TVS Motor Company,´ said Mr. Matta. Hero Honda clocked 36.40 lakh units, a growth of 12.5 per cent.
Bajaj Auto¶s volumes dropped 23 per cent to 12.86 lakh units while TVS saw a marginal
decline at 11.36 lakh units. Honda Motorcycle and Scooter India¶s sales surged 16 per cent
to 10.15 lakh units.
MUV VEHICAL IN INDIA
MAHINDRABOLERO
Mahindra Bolero is one of the most successful and popular utility vehicle of the Mahindra
and Mahindra Group. The car is robust in appearance and it has been elegantly designed,
keeping in mind the conditions of the Indian roads.
Mahindra Bolero is also among the best fuel efficient cars of India as the manufacturer has
equipped it with a 2500 cc diesel engine with5- speed transmission.
MAHINDRASCORPIO
Mahindra & Mahindra Limited launched Mahindra Scorpio as its first Sports Utility Vehicle
in India in 2002.
This SUV has redefined the expectations for the design of SUVs with its sturdy looks and
powerful performance, the sophisticated interior design adds to the further glory to the
appearance.
MAHINDRA XYLO
Mahindra & Mahindra Limited launched their latest Multi Utility Vehicle (MUV) ³Xylo´ in
India on January 13, 2009. The car boasts of having all the luxurious features that are seen intoday¶s sedans, with the ample space of a utility vehicle. Xylo's muscular stance contributes
to its commanding road presence. Fully packed with the latest features, the MUV is sure to
impress Indian consumers and provide a stiff competition to the other vehicles within its
class.
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Performance Of Mahindra XYLO
Under the hood of Mahindra Xylo lies a 4-cylinder turbocharged, mEagle diesel engine,
which generates a power of 112bhp @ 3800 rpm and a peak torque of 24 kgm @ 1800-3000
rpm. The powerful engine is developed on the NEF CR De platform and is mated to 5-gears
manual transmission. The car accelerates from rest to 60 km/h in just 5.8 seconds.
PRODUCTS OF MUV
MAHINDRA ³ SCORPIO´
MAHINDRA ³ BOLERO´
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MAHINDRA ³ XY LO´
TATA SAFARI
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MAHINDRA ³ MA RSH A L´
MAHINDRA ³ MA XX
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OBJECTIVES OF THE STUDY
The study has been under taken to analyze the customer buying behaviour towards the
MUV.Today the MUV market is reporting a steady and rising growth in the automobile
market. Consumer is interested in investing their money in MUV¶S instead of the luxury cars.
Basic problem which a consumer face while buying a MUV is product differentiation and thelevel of competition in this segment. This study will provide an opportunity for the
companies as well as for the researchers interested in the automobile sector to know the
factors changing the trends of the consumers buying behaviour as well as affecting its buying
behaviour.
And the other objectives are:
To know the strength and weaknesses of the ³ M £ V .
Brand name plays a vital role for launching a new product.
To know the perception towards the Brand about the sales service offers to buy MUV
products.
To know the customer opinion of various cars and MUV product.
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DESIGN OF STUDY
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RESEARCH METHODOLOGY
RESEARCH METHOD
Two broad research methodologies can be used to answer any research question.
They are ± Experimental research or Non experimental research. In experimental research,
there is control over the extraneous variable and manipulation of at least one variable
investigator. In Non experimental research, there is no intervention beyond that needed for
the purpose of measurement.
The study uses Non experimental research method.
RESEARCH DESIGN:
A research design is a statement or specification of the methods and procedures used
for acquiring the information needed for the solution of some specific problems. It provides a
scientific frame work for conducting a research.
Although research design may be classified by many criteria, the most useful one
concerns the major purpose of the investigation. On the basis, research design can be
classified into three classes ± Exploratory, Descriptive and Casual. If no formal design or
structural questionnaires are used, exploratory design is used. If a person is conversant with
the problem environment, or is conducting the research for some specific purpose using
structural questionnaire to gather information, the research design is descriptive. Casual
research design is used to establish cause and effect relationship.
For descriptive studies and also casual studies, data analysis and project output are
critical aspects of research planning. This study uses descriptive design.
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DATA COLLECTION METHOD
The following steps are involved in the data collection process:
1. Finding out the type of information required in the investigation process.
2. Establishing the facts that are available at present and the additional facts
required.
3. Identification of the source from where they can be available.
4. Selection of appropriate information collection method.
The data required from this study is collected from primary and secondary sources;
The data collected are both Quantitative and Qualitative.
PRIMARY SOURCES:
The primary source used for gathering data required for this survey is ± Survey method.
In the survey method a Survey of the consumer¶s behaviour towards Four-wheeler is
done. A planned effort is made using structured questionnaire to interview the respondents.
The respondents are the owner of the four-wheeler, who are interviewed, are chosen using
non probability sampling method. The survey can be done through personal interviews. In
this study respondents are interviewed personally so that the errors involved in gathering
primary data are minimized.
SECONDARY SOURCES:
The secondary sources used for collecting data are:
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1. Internal Sources
Company¶s Reports.
Company¶s Publications.
Company¶s Employees.
2. External Sources
Information was gathered from Magazines like ± Auto Expo, Car Bazaar, and Business
World & Business Today.
Business dailies like ± The Economic Times, The Business Line etc.
News Paper like ± The Hindustan Times, Business Standard & The Corporate Times.
Apart from this some information was also taken from internet.
SAMPLING PROCESS:
Taking into account the practical considerations (such as time limit, cost, etc) the study
a sample survey as the means of gathering primary information. A sample survey allows a
reason to concentrate his attention upon a relatively small number of people and hence, to
devote more time and energy to ensure that the information collected from them is moreaccurate.
DEFINING THE POPULATION:
The first thing that a sample plan must include is the definition of the population to
be investigated. The population should be defined as clearly as possible. The population
chosen for the study, taking into consideration the objective of the study is defined as, all the
customer of four-wheeler.
SAMPLE DESIGN:
Sample design is the heart of the sample planning process. A sample design involves
specifications of the type of sample used, the appropriate sampling unit, and the sample size.
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TYPE OF SAMPLE:
The study use non-probability sampling. Most of the sampling in marketing research
is non-probability in nature. Of the various non probability methods, convenience sampling
method is used in this study rather than using a table of random number as in probability
sampling. Convenience sampling means that the sampling units are accessible, convenientand easy to measure.
The advantage of choosing a non-probability sampling methods is that the
sampling error will be lesser when compared to probability sampling.
SAMPLING UNIT:
The sampling unit forms the basis of the entire sampling procedure. It is that which is
actually chosen by the sampling process. The sampling unit may contain one or more
population elements. The sampling units in the study consist of the private employees,government employees, business people and others.
SAMPLE SIZE:
The sample consist of 100 customer selected from the Indore using convenience sampling
method. Out of the customers selected for the study, some did not own four-wheeler and
some had not responded well. Hence they had to be replaced by other customers.
LIMITATIONS:
Taking the market conditions into consideration the survey, which includes a sampleof 100, was a respective one.
Due to the limitation of span of time and limited resources survey was conducted for a
period of 4 weeks.
The geographic region covered for the survey was limited to the boundaries of the
Indore city.
Since the survey was conducted at the residential localities and the person who owns a
fore Vehicle.
Improper response from customers and buyers, but it was minimal.
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Scientific methods of post testing could not be conducted.
Minimal possible bias in administrating the questions at the survey conducted areas.
The reaction and attitudes are subjected to changes according to needs and time.
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PROJECT ANALYSIS
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INTERPRETATION -1
1. Customer¶s needs towards MUV.
PARTICULAR NO. OF RESPONDENT PERCENTAGE (%)
BIG/FAMILY CAR 40 40%
LOOKS 21 21%
ECONOMICAL 24 24%
LUXARY/ COMFORT 15 15%
TOTAL 100 100%
FROM THE INTERPRETATION IT IS CONCLUDED THAT THE
MAJOR NEEDS OF THE CUSTOMER TOWARDS ³MUV´
40% CUSTOMERS HAD TO BUY A BIG OR FAMILY CAR.
21% CUSTOMERS HAD TO BUY A NEW LOOK OR NEW MODEL OF THE
CAR.
24% CUSTOMERS HAD TO BUY AN ECONOMICAL/REASONABLE CAR.
15% CUSTOMERS HAD TO BUY LUXARY AND COMFORATBLE CAR.
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CIMR
PIE CHAR T OF INTERPR ETATION - 1:
40%
21%
24%
15%
N D TOWARD "MUV"
BIG/¤ A¥ ILY CAR
LOOKS
ECONO ¦ ICAL
LUXARY/CO ¦ § ORTABLE
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CIMR
INTERPRETATION -2
2. Value Perception of the Customers towards ³MUV´
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
HIGH VALUE 36 36%
TOTAL VALUE 43 43%
SOMEWHAT VALUE 18 18%
NO VALUE 03 3%
TOTAL 100 100%
FROM THE INTERPRETATION 2 IT IS CONCLUDED THAT.....
36% CUSTOMERS ARE GETTING HIGH VALUE FROM THE ³MUV´.
43% CUSTOMERS ARE GETTING TOTAL VALUE FROM THE ³MUV´
18% CUSTOMERS ARE GETTING LITTLE VALUE FROM THE ³MUV´
ONLY 3% CUSTOMERS ARE NOT GETTING VALUE FROM THE
³MUV´
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CIMR
PIE CHAR T OF INTERPR ETATION - 2:
36%
43%
18%
3%
VALUE PERCEPTION OF THE CUSTOMERS
HIGH VA UE
TOTA VA UE
SOMEWHAT VA© UE
NO VA© UE
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CIMR
INTERPRETATION -3
3. PRICE OF THE MUV
PARTICULAR NO. OF
RESPONDENT PERCENTAGE
VERY COSTLY 0 0%
COSTLY 25 25%
REASONABLE 75 75%
TOTAL 100 100%
FROM THE INTERPRETATION 3 IT IS CONCLUDED THAT...
0% CUSTOMERS ARE NOT RECOGNIZED ³MUV´ AS A VERY
COSTLY CAR.
25% CUSTOMERS ARE RECOCOGNIZED IT AS A ONLY COSTLY
CAR.
75% CUSTOMERS ARE VERY COMFORTABLE WITH THE PRICE OF
THE MUV, AND RECOGNIZED IT AS A REASONABLE CAR.
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CIMR
PIE CHAR T OF INTERPR ETATION - 3
0%
25%
75%
PRICE OF THE MU
VERY COST Y
COST Y
RESONAB E
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CIMR
INTERPRETATION -4
CUSTOMERS WANTS EXTRA FACILITIES IN ³ M V XY LO)´
PARTICULER NO. OF RESPONDENT PERCENTAGE
MUSIC SYSTEM 21 21%
LUGGAGE SPACE 29 29%
SMALL REFRIGRETOR 18 18%
ULTRA POWER
STEERING 14
14%
ABS 18 18%
TOTAL NO. OF
RESPONDENT100 100%
FROM THE INTERPRETATION 4, IT IS CONCLUDED THAT...
21% CUSTOMERS WANT MUSIC SYSTEM IN MAHINDRA ³ M V
29% CUSTOMERS WANT LUGGAGE SPACE IN ³ M V
18% CUSTOMERS HAVING A UNIQUE DEMAND. THEY WANT A SMALL
FRIZ IN THE ³ M V
14% CUSTOMERS BELIEVE IN COMFORTABLE DRIVING AND THEY WANT
ULTRA POWER STEERING IN ³ M V
18% CUSTOMERS REALLY BELIEVE IN TECHNOLOGY. THEY WANT ABS
IN THEIR ³ M V
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CIMR
PIE CHAR T OF INTERPR ETATION - 4
21%
29%
18%
14%
18%
EXTRA IN MU
MUSIC SYSTEM
LUGGAGE SPACE
REFRIGRETOR
ULTRA POWER STEERING
ABS
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CIMR
INTERPRETATION -5
4. HOW CUSTOMER GOT TO KNOW ABOUT MUV
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
T.V ADVERTIESMENT 36 36%
FRIENDS 10 10%
NEWS PAPER 16 16%
MAGAZINES 16 16%
OTHERS 22 22%
TOTAL 100 100%
FROM THE INTERPRETATION 5, IT IS CONCLUDED THAT...
36% CUSTOMERS GOT TO KNOW ABOUT MUV THROUGH
ADVERTIEZMENT.
10% CUSTOMERS BOUGHT THE MUV THROUGH FRIENDS.
16% CUSTOMERS GOT TO KNOW ABOUT MUV THROUGH NEWSPAPER.
16% CUSTOMERS GO THROUGH THE MAGAZINES.
22% CUSTOMERS GOT TO KNOW ABOUT THE MUV THROUGH OTHER
SOURCES.
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CIMR
PIE CHAR T OF INTERPR ETATION - 5
%
10%
1 %
1 %
22%
GOT TO KNOW ABOUT MU
T.V ADVERTIESMENT
FRIENDS
NEWSPAPER
MAGAZINES
OTHER
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CIMR
INTERPRETATION -6
5.
MODE OF PURCHASE...
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
FINANCE 71 71%
CASH29 29%
TOTAL 100 100%
FROM THE INTERPRETATION 6, IT IS CONCLUDED THAT...
71% OF THE MUV CUSTOMERS HAVE GONE THROUGH THE FINANCE.
21% OF THE MUV CUSTOMERS HAVE GONE THROUGH THE CASH.
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CIMR
PIE CHAR T OF INTERPR ETATION - 6
71%
29%
MODE OF PURCHASE
FINANCE
CA H
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CIMR
INTERPRETATION -7
6. CUSTOMER SATISFACTION TOWAR DS ³MUV´
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
HIGHLY SATISFIED 54 54%
SATISFIED 32 32%
DISSATISFIED 07 7%
HIGHLY DISSATISFIED 07 7%
TOTAL 100 100%
FROM THE INTERPRETATION 7, IT IS CONCLUDED THAT...
54% CUSTOMERS ARE HIGHLY SATISFIED WITH THE MUV
PERFORMANCE.
32% CUSTOMERS ARE ONLY SATISFIED WITH THE ³ M V .
7% CUSTOMERS ARE DISSATISFIEDWITH THE ³ M ! V
7% CUSTOMER ARE REALLY NOT HAPPY WITH THE MUV
PRODUCT AND THEY ARE HIGHLY DISSATISFIED WITH THE
³ M " V .
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CIMR
PIE CHAR T OF INTERPR ETATION - 7
54%
32%
7%
7%
SATISFACTION LE E OF MU CUSTOMERS
HIGH# Y SATISFIED
SATISFIED
DISSATISFIED
HIGH $ Y DISSATISFIED
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CIMR
INTERPRETATION -8
7. INFLUENCE TO PURCHASE ³ M V
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
SELF DECISION 46 46%
KIDS 18 18%
FRIENDS 18 18%
OTHERFAMILY
MEMBER 18 18%
TOTAL 100 100%
FROM THE INTERPRETATION 8, IT IS CONCLUDED THAT...
46% CUSTOMERS HAVE TAKEN SELF DECISION.
18% CUSTOMERS DECISION WAS INFLUENCED BY KIDS
18% CUSTOMERS DECISION WAS INFLUENCED BY FRIENDS
18% CUSTOMERS WERE INFLUENCED BY OTHER FAMILY MEMBERS
INCLUDING KIDS
54% CUSTOMERS ARE INFLUENCED BY THEIR FAMILY.
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CIMR
PIE CHAR T OF INTERPR ETATION - 8
46%
18%
18%
18%
INFLUENCE TO PURCHASE
SE % F DECISION
KIDS
FRIENDS
OTHER FAMI& Y MEMBER
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CIMR
INTERPRETATION -9
8.
ROLE OF ADVERTIEZMENTS IN DECISION MAKING
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
REALLY HELPFULL 54 54%
SOMETIME IT IS
HELPFULL36 36%
NOT HELPFULL 10 10%
TOTAL 100 100%
FROM THE INTERPRETATION 9, IT IS CONCLUDED THAT...
54% CUSTOMERS BELIEVE THAT T.V ADVERTIEZMENT IS REALLY
HELPFULL IN DECISION MAKING.
36% CUSTOMERS SAID THAT, IT IS SOMETIME HELPFULL IN DECISIONMAKING.
ONLY 10% CUSTOMERS DO NOT BELIEVE THAT, T.V ADVERTIEZMENT IS
NOT HELPFUL IN DECISION MAKING.
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CIMR
PIE CHAR T OF INTERPR ETATION - 9
54%
36%
10%
ADVERTIEZMENT IS HELPFUL FOR DECISION
MAKING
REA ' ' Y HE ' PFU '
SOMETIME IT IS HE ( PU( (
NOT HE ( PFU (
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CIMR
INTERPRETATION -10
9. AVAILABILITY OF SPARE PARTS OF ³MUV´
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
HARDLY AVAILABLE 32 32%
AVAILABLE 22 22%
EASILY AVALABLE 46 46%
TOTAL 100 100%
FROM THE INTERPRETATION 10, IT IS CONCLUDED THAT...
32% CUSTOMERS ARE NOT HAPPY WITH THE AVAILABILITY OF SPARE
PARTS OF MUV.
22% CUSTOMERS SAID THAT, SPARE PARTS OF ³MUV´ARE AVAILABLE
IN THE MARKET.
46% CUSTOMERS ARE REALLY HAPPY WITH THE AVAILABILY OF MUV
SPARE PARTS. THEY ARE EASILY AVAILABLE IN THE MARKET.
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CIMR
PIE CHAR T OF INTERPR ETATION - 10
32%
22%
46%
AVAILABILIT OF SPARE PARTS
HARD ) Y AVAI ) AB ) E
AVAI)
AB)
E
EA 0 I 1 Y AVAI 1 AB 1 E
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CIMR
INTERPRETATION -11
11
CUSTOMER¶S RECOMMENDATION TO OTHERS
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
XYLO 64 64%
SCORPIO 11 11%
SAFARI 14 14%
INNOVA 11 11%
TOTAL 100 100%
FROM THE INTERPRETATION 11, IT IS CONCLUDED THAT...
64% CUSTOMERS WOULD LIKE TO PREFFER ³XY LO´ TO THEIR FRIENDS
AND FAMILY MEMBERS.
11% CUSTOMERS WOULD PREFFER ³ SCORPIO´ TO THEIR FRIENDS AND
FAMILY MEMBERS.
14% CUSTOMER WOULD PREFFER ³T AT A S AFA RI´
11% CUSTOMERS WOULD LIKE TO PREFFER ³ T OY OT A INNOVA´ TO
THEIR FRIENDS AND FAMILY MEMBERS.
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CIMR
PIE CHAR T OF INTERPR ETATION - 11
64%
11% 14%
11%
BRAND PREFERRENCE
MAHINDRA XY 2 O
MAHINDRA SCORPIO
TATA SA 3 ARI
TOYOTA INNOVA
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CIMR
INTERPRETATION -12
12. CUSTOMER SATISFACTION WITH AFTER SALE SERVICE
PARTICULER NO. OF RESPODENT PERCENTAGE
HIGHLY SATISFIED 21 21%
SATISFIED
57 57%
DISSATISFIED 11 11%
HIGHLY DISSATISFIED 11 11%
TOTAL 100 100%
FROM THE INTERPRETATION 12, IT IS CONCLUDED THAT...
21% CUSTOMERS ARE HIGHLY SATISFIED WITH THE AFTER SALE
SERVICE OF ³ M 4 V .
57% CUSTOMERS ARE ONLY SATISFIED WITH THE AFTER SALE SERVICE
OF ³ M 5 V .
11% CUSTOMERS ARE NOT SATISFIED WITH THE AFTER SALE SERVICEOF ³ M 6 V .
11% CUSTOMERS ARE HIGHLY DISSATISFIED WITH THE AFTER SALE
SERVICE OF´ M 7 V .
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CIMR
PIE CHAR T OF INTERPR ETATION - 12
21%
57%
11%
11%
CUSTOMER SATISFACTION WITH AFTER SALE
SERVICE
HIGH8 Y SATISFIED
SATISFIED
DISSATISFIED
HIGH 9 Y DISSATISFIED
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CIMR
INTERPRETATION -13
13. COMPANY CONTACT & COMMUNICATION
AFTER SALE
PARTICULAR NO. OF
RESPONDENT
PERCENTAGE
ONCE IN A MONTH 25 25%
ONCE IN A QUATER 14 14%
ON EVERY OCCASSION 14 14%
NEVER 46 46%
TOTAL 100 100%
FROM THE INTERPRETATION 13, IT IS CONCLUDED THAT...
ACCOR DING TO 25% CUSTOMERS, COMPANY CONTACTS THE
CUSTOMER ONCE IN A MONTH.
ACCOR DING TO 14% CUSTOMERS, COMPANY CONTACTS THE
CUSTOMER ONLY ONCE IN A QUATER.
ACCOR DING TO 14% CUSTOMERS, COMPANY CONTACTED THE
CUSTOMER ON EVERY OCCASSION.
ACCOR DING TO 46% CUSROMERS, COMPANY DID NOT CONTACTED THE
CUSTOMER TILL NOW.
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CIMR
PIE CHAR T OF INTERPR ETATION - 13
25%
14%
15%
46%
COMPANY CONTACT WITH THE CUSTOMERS
ONCE IN A MONTH
ONCE IN A QUARTER
ON E @ ERY OCCAA ION
NE @ ER
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CIMR
F INDIN GS
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CIMR
FINDINGS
Basing on the data gathered from the customers, which was analyzed, the
following observations are made.
MUV(XYLO, SCORPIO, SAFARI, INNOVA) is providing quality products to the
customers.
By finding Mahindra XYLO as a family car, majority of the customers preferred it.
Mahindra XYLO has an ability to give total value to the customers.
Majority of the customers are really satisfied with the XYLO¶s price. The XYLO¶s
price is very reasonable when compared to the TATA SAFARI and TOYOTA
INNOVA.
Most of the customers are really satisfied with ³XY LO´
Now a day¶s family members are playing a major role in buying pattern and
especially kids are playing a vital role in deciding the colour of the car. Apart from
that, majority of the customers are taking their own decision in buying ³XY LO´
Most of the customers are attracted to purchase XYLO through the TV
advertisements. Also print media like magazines and newspapers played a major rolein the sale of ³ M B V .
79% customers have gone through the finance. Now it could be a great opportunity
for those banks, which are providing auto finance to the customers.
Large amount of customers believe that TV advertisements are really helpful in
decision making. But some customers thought that, TV advertisement is not so much
helpful in decision making.
Almost 78% customers are satisfied with the after sale services.
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CIMR
The spare parts of the MUV are easily available in the market,
Customers are really satisfied with MUV and the majority of the customers wouldsuggest to their friends or family members to buy MUV in future.
46% customers said that, Company did not contacted them even a single time after
they bought the ³MUV´.
Most of the customers wants music system and luggage space in the ³ M C V
SOME MAJOR FACTS AND INFORMATION
Customers are highly dissatisfied with the XYLO E2 model. The customers are not
ready to pay 6, 50, 000/- to buy the base model of the XYLO, but they are very much
ready to pay 8, 00,000/- to buy top model (E8).
A.C is the major problem, which customers are facing in the E2 model.
TOYOTA INNOVA could be a major threat to ³XY LO´ because of price .
Customers are also facing problem at the time of servicing.
Some customers are demanding a unique feature in MUV. They want a small
refrigerator in the ³ M D V .
25% to 30% customers have changed their decision from INNOVA to XYLO. 25 to
30% customers wanted to buy TOYOTA INNOVA but after launching the
MAHINDRA XYLO they changed their decision.
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CIMR
I d i d some ex t E F acti G it H
dur i I P
t Q e survey. I chose 4 mai I market s of Indore cit y and f i nd
out 100 M P V s whi ch were runni ng i n t he cit y. T hi s acti vit y t ook four day.
A f t er t he compl eti on of t hi s acti vit y I found t hat .
Out of 100 MUVs
As we know that, Mahindra XYLO was launched recently in the Indian market. In its
initial stage Mahindra XYLO have got 30,000 bookings within the three months span.
Mahindra XYLO is going to give a tough competition to its competitors.
We are expecting that Mahindra XYLO would be a successful car in the future and also
Mahindra XYLO has an ability to be a market leader.
TOYOTA INNOVA 25
MAHINDRA SCORPIO 20
TATA SAFARI 18
TOYOTA QUALIS 14
CHEVROLET TAVERA 11
MAHINDRA XYLO 07
MISTUBISHI PAJERO 05
TOTAL 100
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CIMR
LIMITATIONS
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CIMR
LIMITATIONS
Taking the market conditions into consideration the survey, which includes a
sample of 100, was a respective one.
Due to the limitation of span of time and limited resources survey was conducted for a
period of 4 weeks.
The geographic region covered for the survey was limited to the boundaries of Indore
city.
Improper response from customers and buyers, but it was minimal.
The survey was conducted at the residential localities and the person who owns the
MUV.
Minimal possible bias in administrating the questions at the survey conducted areas.
The reaction and attitude are subjected to changes according to the needs and time.
Some locations in the Indore city were very difficult to find out, so to cover those
areas I took telephonic interview.
Especially in telephone, customers were not responding properly. But it was minimal.
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CIMR
SUGGESTION
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CIMR
SUGGESTION
After analyzing the findings, the following suggestions have been prepared.
Great care has been taken in making these suggestions for improvement of customersatisfaction:
A constant urge to upgrade and keep pace with the changing times gives organization
the competitive advantages or cutting edge over the competition.
The service centre must be ready with all type of spare parts all over the time.
Improve the cooling system in MUV base model.
The after sale service has to be improved and make availability at service centres even
in rural areas so as to face the competition existing in the MPV segments.
Introduce new multicolour graphics, which would be attracting more people,
especially kids.
There is very less advertising for MUV. The advertising has to be done repeatedly so
that the brand awareness could be maintained and new customers are attracted, which
helps in improving the market share.
Introduce low instalments and low down payment schemes to attract more people.
Satisfy existing customers by giving more values and offers.
Company has to contact the customers more and more frequently.
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CIMR
There is a heavy demand for Mahindra MUV in the market, so the supply has to be
improved to meet the demand of the customers.
Inspect the servicing centres continuously so that they try to follow rules and
regulations strictly, and will serve the car on time.
Try to maintain reasonable price of the MUV, as this is the key factor in customer
buying decision.
All the cars of Mahindra must be available at the each and every showroom.
Company must try to tap the rural areas with the help of print media and hoardings.
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CIMR
QUESTIONNAIRE
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CIMR
Name: ....................................
Date: ..................................
Q1: What is/was your need regarding MUV?
.................................................................................................................
Q2: Are you getting total value of the money?
High Value Total value Somewhat Value Nothing
Q3: How is price of the ³MUV´?
Very costly Costly Reasonable
Q4: What do you want extra in ³MUV´?
1..................... .................... 2 .......................................... 3..........................................
Q5: Top of Mind (TOM)
a) How do you got to know about ³MUV´
Advertisement Friends Newspaper Magazines Others
Q6: Mode of purchase?
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CIMR
Finance Cash
Q7: Who influence to purchase ³MUV´?
Self Decision Kids Friends Other Family
Member
Q8: How much you are satisfied with ³MUV´?
Highly satisfied Satisfied Highly Dissatisfied Dis satisfied
Q9 : Is advertisement is helpful for decision making ?
Really helpful Sometime helpful It is not helpful
Q10: Availability Of ³MUV´ Spare parts .
Hardly Available Available Easily Available
Q11: Brand Preference?
Xylo Scorpio Safari Innova
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CIMR
Q12: Are you satisfied with the after sale service of ³MUV´ ?
Highly Satisfied Satisfied Dissatisfied Highly Dissatisfied
Q13: How is your Company contact?
Once in a month Once in quarter on every Occasion Never
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CIMR
BIBLIOGRAPHY
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BIBLIOGRAPHY
BOOKS AUTHOR
MARKETING MANAGEMENT PHILLIP KOTLER, KOSHI & JHA
PRINCIPAL OF MARKETING PHILIP KOTLER & AMSTRONG
RESEARCH METHODOLOGY R.C KOTHARI
CONSUMER BEHAVIOR LOUDON & DELLA BITTA
WEBSITES:
http://www.mahindra.com
http://www.carwale.com
http://www.google.com
PRINT MEDIA:
THE TIMES OF INDIA
THE HINDU
AUTO EXPO MAGAZINES
AUTO CAR MAGAZINES
BUSINESS WORLD MAGAZINES