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A Study of Buying Behaviour of Customers Towards Small Car Segment in Haryana

The document discusses a study on customer buying behavior towards small cars in Haryana, India. It aims to identify the major factors influencing customers' decisions to buy small cars and the important car attributes. A survey was conducted with 165 respondents and factor analysis was performed on 23 variables related to customers' opinions before buying. The findings showed that psychological and showroom factors most significantly impacted buying decisions.

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0% found this document useful (0 votes)
49 views20 pages

A Study of Buying Behaviour of Customers Towards Small Car Segment in Haryana

The document discusses a study on customer buying behavior towards small cars in Haryana, India. It aims to identify the major factors influencing customers' decisions to buy small cars and the important car attributes. A survey was conducted with 165 respondents and factor analysis was performed on 23 variables related to customers' opinions before buying. The findings showed that psychological and showroom factors most significantly impacted buying decisions.

Uploaded by

Praveen Kumar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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International Journal of Entrepreneurship and Small Business Management.

Volume 1, Number 1 (2014), pp. 1-20


© International Research Publication House
http://www.irphouse.com

A Study of Buying Behaviour of Customers Towards


Small Car Segment in Haryana

Dr. D.P. Warne and Kavita Rani


1
Associate Professor, Deptt. of Commerce, Chaudhary Devi Lal University,
Sirsa–125055, Haryana
2
Doctoral Scholar, Deptt. of Commerce, Chaudhary Devi Lal University,
Sirsa–25055, Haryana
E-mail: 1dpwarne_mgt1@yahoo.com, dpwarne@gmail.com, E-mail:
2
kavitamadal@gmail.com.

Abstract

This study mainly focuses on influencing variables which have direct


bearing on customers buying behavior towards small cars in Sirsa
district. The information was collected from different areas of Sirsa
district with the particularly help of questionnaires. Factor analysis and
ANOVA have been used on data of 23 variables to test the significant
difference between the groups of respondents that have the most
significant effect on customers’ behaviour towards small cars. The
total of 165 respondents had been taken as a sample. The findings
indicate that factor 3 is at the top by which customers make their
psychological opinion for buying (Mean-4.30) followed by factor 4
after showroom variability (Mean-4.215), these factors become more
effective and factor 1 personal desire (Mean-3.77) and factor 2
financial views (Mean-3.57) are less effective. The analysis of the
study revealed an understanding of the customers differ significantly
by gender, age, education, occupation and monthly income. The results
of the study set up relationship between the variables which affect the
customer’s buying behaviour regarding small car segment.

Keywords: Buying behaviour patterns, Psychological factors, Factor


analysis, and ANOVA.
2 Dr. D.P. Warne & Kavita Rani

1. Introduction
“The individuals make decisions related to spend their available resources, i.e. time,
money, and efforts on consumption-related items and make a plan like what to buy,
when , why , where , how often to buy and how often to uses it. The goal of studying
customers’ behaviour is to satisfy their needs. The study of customers’ behaviour has
been conducted by way of analysis of factors that influence purchase decisions and
product use. Philip kotler remarks that “customers are neither so simple that they do
not require to be studied, nor so complex that their study is impossible” the study of
customers behaviour provides a sound basis for identifying and understanding
customers’ needs. The study of customers' behaviour is concerned with customers’
buying behaviour rather than consumption. It is sometimes easy and sometimes
impossible, to predict the behaviour of people. Accurate prediction can yield vast
fortunes and inaccurate predictions can result in the loss of millions of rupees. It is a
complicated task, filled with uncertainties, risk and surprises. In recent era business
around the world recognizes that customer is the king. Knowing why and how people
consume products helps manufacturers and marketers to understand how to improve
existing products what types of products are needed in the market place or how to
attract customers to buy their products. Marketers can justify their existence only when
they are able to understand customers wants and satisfy them. For example, if a
manager knows through research that fuel mileage is the most important attribute for a
certain market, the manufacturer can redesign the product to meet those criteria. A car
that satisfies the needs of owners for transportation also obtain psychological
satisfaction from the possession of products. For the purpose of this study, the personal
variables like gender, age, income, occupation, education, etc., have been selected and
the influence of these personal variables on the customers’ perception, their buying
behaviour and the decision process have been analyzed. The behaviour of customers is
affected by various uncontrollable variables also via economic, social, psychological,
technical and personal factors. In economic factor we include personal income, family
income, standard of living, economic condition. The recent cut down of the growth
certain sectors of the vehicle industry have estimate for the auto component sector in
2012-13 is 8-10%.

2. Review of literature
Mandeep Kaur and Sandhu (2006) attempted to find out the important features which a
customer considers while going for the purchase of a new car. The study covers the
owners of passenger cars living in the major cities of the State of Punjab and the Union
Territory of Chandigarh. The respondents perceive that safety and comfort are the most
important features of the passenger car followed by luxuriousness. So the
manufacturers must design the product giving maximum weight age to these factors.
A Study of Buying Behaviour of Customers Towards Small Car Segment 3

S. Subadra, Dr. K. M. Murugesan, Dr. R. Ganapathi (2010) examined that


demographic factors to understand the buying behaviour by family size, occupation,
age, education qualification, life style are the major factors which affect customers
behaviours. The study covers the customer's perception of car owners of Namkkal
district. Descriptive Statistical tools such as Mean, Median and Standard deviation
have been used to describe the profiles of customers, preferred product attributes and
level of satisfaction. T-Test, F-Test and ANOVA have been used to test the significant
difference between the groups of respondents in their perception and satisfaction for
selected independent variables like age, sex and income. Chi-Square test has also been
used to test the association between the customer’s demographic characteristics and
preferred product attributes and satisfaction.
A.M.Elanthiraiyan , Dr.V.Balakrishnan (2012) analyzed that marketers can justify
their existence only when they are able to understand customers wants and satisfy them
for example if a manager knows through research that fuel mileage is the most
important attribute for a certain target market, the manufacturer can redesign the
product to meet that criterion. The study covers the car owners of Selam district in
Tamilnadu. The demand for the small car segment is increasing because of the
growing number of nuclear families, driving comfort, technology etc.
M.S.Vidyarthy (2012) stated that customers lifestyle effect the customers’
behaviour of car owners living in chennai. The study comprised factors like pick up,
design, mileage, brand, technology, status, lifestyle, grip to consider customer
behaviour. It also includes sociological, psychological, personal, technological factors
to judge customer behaviour. A Simple Random sampling technique was adopted in
the study to select the sample respondents. Data were collected through an interview
schedule regarding the perception of the respondents on the usage of Automobiles.
Descriptive statistical tools such as Percentage, Mean, Median and Standard deviation
have been used to describe the profiles of customers, preferred product attributes and
level of satisfaction.
H.S.Adithya (2013) analyzed four major determinants of customers' behaviour,
namely cultural, social, economic, personal and psychological. The study covers the
customer’s perception and behaviour of car owners in Bangalore city. Most of the
respondents believe that brand image, celebrity, advertisement, price, discount,
satisfaction are most important factors while purchasing a car.
G.Syamala (2013), studied the satisfaction level of customers who own small car.
The research covered the areas of Aundh, Pashan, Baner in Pune, Maharashtra. It can
be concluded by saying that customers formed happy to purchase and satisfied with
small cars. Small Cars have truly gained popularity due its affordability factor and low
cost over a period of time.
Nirav R Vyas (2013) analyzed the effect of the profession over buying behaviour
towards the car. This covers the impact of country origin of car purchasing decision
with different profession. This paper is an attempt to probe into a niche segment of
customers and to find out whether the “country of origin” of the brands of cars, make a
4 Dr. D.P. Warne & Kavita Rani

significant impact positively or negatively towards the buying behavior of the


customers.

3. Objectives
1. To study the customers preference towards small car segment.
2. To identify the major factors influencing the decision to buy a small car
3. To find the important attributes of a car that influences the decision to purchase
a small car

4. Research Methodology
4.1 Hypothesis
H01= There is no significant effect of demographic variables of customer on factors
influencing buying behaviour.
Reliability and Validity: The response of 23 items selected for respondents generally
making an opinion before buying a small car were collected in 5-point likerts scale 1
for strongly agree, 2 for agree, 3 for neutral, 4 for disagree and 5 for strongly disagree.
The interactive cronbach’s Alpha values for reliability in responses of respondents
were found 0.814. The different items in the question contain the questionnaire cover
the contents of research significantly.
Sample Size and Data Collection Method: Non probability convenience cum
judgment sampling was used and responses of 165 customers were taken from
different areas of Sirsa district. For analysis mean, standard deviation, factor analysis
has been applied. For confirmation of descriptive statistic f-test statistic is used. To test
the appropriateness of factor analysis technique correlation between the variables are
checked and Keiser-Meyer-Olkin (KMO) measure of sample adequacy is also used for
the same. The population correlation matrix is an identical matrix, is rejected by
Bartlett’s test of sphericity. The approximate Chi-square value is 1461.911 with 253
degree of freedom, which is significant at 0.05 levels. The value of KMO statistic,
0.763 is also larger than 0.6. Further, a principal component analysis method is used
for extraction of variable for the component (factor) concerned. The extraction
communalities, averagely for each variable has been found 0.672 which is the amount
of variance a variable share with all the other variables being considered. It is also the
percentage of variance explained by common factors. Theoretically, sample size is
enough to calculate factor analysis. The overall items explained by reproduced
correlation matrix in opinion making of buying toward car has shown that 32% non-
redundant residuals with absolute values greater than 0.05, representing a satisfactory
model fit.
A Study of Buying Behaviour of Customers Towards Small Car Segment 5

5. Analysis and interpretation


Table 1: Descriptive Statistics.

Mea Std. Analysis


n Deviation N
To what extent advertisement influence you to buy 4.07 .703 165
the car?
To what extent dealer influence you to buy the car? 3.68 .869 165
To what extent family members influence you to buy 4.25 .760 165
the car?
To what extent friends influence you to buy the car? 4.05 .731 165
To what extent relatives influence you to buy the car? 3.80 .717 165
To what extent technician council influence you to 4.18 .876 165
buy the car?
To what extent color influence you to buy the car? 4.39 .687 165
To what extent discount scheme influence you to buy 4.08 .815 165
the car?
To what extent after sale services influence you to 4.13 .905 165
buy the car?
To what extent financial facilities influence you to 4.01 .991 165
buy the car?
To what extent interiors influence you to buy the car? 4.14 .936 165
To what extent resale value influences you to buy the 4.30 .815 165
car?
To what extent space influence you to buy the car? 4.39 .778 165
Services 3.61 1.258 165
Price 3.65 1.109 165
Mileage 3.41 1.168 165
Smooth Ride 3.70 1.217 165
Luxury 3.75 1.213 165
Value for money 3.56 1.095 165
Maintenance 3.61 1.167 165
Looks 3.73 1.185 165
Comfort 3.82 1.231 165
Safety 3.85 1.182 165
Source: Primary (Data Processed Through PASW Statistic18.0)

Table 1 shows descriptive analysis, statistics which give the value of the mean and
standard deviation for making an analysis of the total sample size that is 165. If the
value comes between (1-1.99) then it comes under 5th position, if the value comes
between (2-2.99) then it comes between 4th position, if the value comes between (3-
6 Dr. D.P. Warne & Kavita Rani

3.99) then the value comes between 3rd position, if the value comes between (4-4.99)
then the value comes between 2nd position and if the value comes between the (5-5.99)
then the value comes between 1st position.

Table 2: Correlation matrix.

Reacti V V V V V V V V V V V V V V V V V V V V V V V
on 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Items
Corr V 1. - .1 .2 .2 .1 - .2 .0 .2 .1 .0 .0 .0 .0 .0 .0 .0 - - .0 .0 -
elati 1 00 .0 14 54 47 08 .0 34 91 18 05 04 26 85 37 81 88 21 .0 .0 86 27 .0
on 0 41 60 02 64 57
V - 1. - .0 - .1 .1 - - .1 .1 .0 .0 - - - .0 - - - - - -
2 .0 00 .0 25 .0 71 31 .0 .0 01 45 26 50 .0 .1 .0 29 .0 .2 .0 .0 .0 .0
41 0 63 16 22 25 79 29 39 32 11 51 29 08 59
V .1 - 1. .3 .3 .0 - .2 .2 .0 - .1 - .1 .1 .0 .1 .0 .0 .0 .0 .1 .1
3 14 .0 00 29 82 99 .0 51 37 87 .1 83 .1 65 85 80 55 63 67 97 88 66 48
63 0 02 00 64
V .2 .0 .3 1. .4 .1 .2 .2 .0 .1 .3 .0 .1 .1 .1 .1 .0 .0 .0 .0 - .0 .1
4 54 25 29 00 61 48 41 39 46 76 02 57 92 91 52 59 93 41 57 28 .0 24 11
0 15
V .2 - .3 .4 1. .1 .1 .0 .1 .1 .1 .0 .1 .0 .1 .0 .1 - - - - - .0
5 47 .0 82 61 00 82 86 92 62 99 23 73 18 95 04 92 40 .0 .0 .0 .0 .0 00
16 0 11 28 38 80 14
V .1 .1 .0 .1 .1 1. .2 .0 - .2 .2 - .3 - - .0 - - - - - - -
6 08 71 99 48 82 00 08 56 .0 87 38 .0 20 .0 .0 76 .0 .0 .0 .0 .1 .0 .2
0 21 07 30 20 67 83 23 91 51 86 32
V - .1 - .2 .1 .2 1. .1 .0 .0 .3 .1 .3 - - - - - - - - - -
7 .0 31 .0 41 86 08 00 91 86 86 88 23 40 .0 .1 .0 .1 .1 .1 .1 .1 .1 .2
60 02 0 11 35 88 44 50 08 84 15 21 47
V .2 - .2 .2 .0 .0 .1 1. .3 .3 .0 .1 .0 - - - - - .0 - - - -
8 34 .0 51 39 92 56 91 00 66 77 40 45 92 .0 .0 .0 .0 .1 54 .0 .0 .0 .0
22 0 15 47 79 26 02 28 24 22 39
V .0 - .2 .0 .1 - .0 .3 1. .4 .0 .5 .1 - .0 .0 .0 .0 .1 .1 - - .0
9 91 .0 37 46 62 .0 86 66 00 00 08 26 29 .0 10 20 92 20 65 03 .0 .0 16
25 21 0 12 03 81
V .2 .1 .0 .1 .1 .2 .0 .3 .4 1. .2 .2 .1 - - - .0 .0 .0 - - - -
1 18 01 87 76 99 87 86 77 00 00 95 77 95 .0 .0 .0 95 09 65 .0 .0 .0 .0
0 0 02 85 03 50 53 06 94
V .1 .1 - .3 .1 .2 .3 .0 .0 .2 1. .1 .6 .0 - - - .0 - - - .0 -
1 05 45 .1 02 23 38 88 40 08 95 00 52 45 46 .1 .0 .0 33 .0 .1 .0 41 .0
1 00 0 36 87 11 48 73 67 74
A Study of Buying Behaviour of Customers Towards Small Car Segment 7

V .0 .0 .1 .0 .0 - .1 .1 .5 .2 .1 1. .0 - - - - .0 - - - - -
1 04 26 83 57 73 .0 23 45 26 77 52 00 92 .1 .1 .0 .0 39 .0 .0 .1 .1 .1
2 07 0 17 79 43 19 94 41 35 59 11
V .0 .0 - .1 .1 .3 .3 .0 .1 .1 .6 .0 1. .0 - - - .0 .0 - .0 - -
1 26 50 .1 92 18 20 40 92 29 95 45 92 00 98 .0 .0 .0 11 86 .1 00 .0 .0
3 64 0 88 67 15 53 10 84
V .0 - .1 .1 .0 - - - - -
.0 - .0 1. .5 .5 .5 .5 .5 .4 .4 .5 .5
1 85 .0 65 91 95 .0 .0 .0 .0 .0
46 .1 98 00 65 41 27 05 30 81 65 17 38
4 79 30 11 15 12 02 17 0
V .0 - .1 .1 .1 - - - .0 -- - - .5 1. .4 .4 .4 .5 .4 .4 .4 .5
1 37 .1 85 52 04 .0 .1 .0 10 .0
.1 .1 .0 65 00 31 81 27 21 13 02 31 27
5 29 20 35 47 85
36 79 88 0
V .0 - .0 .1 .0 .0 - - .0 -- - - .5 .4 1. .3 .3 .4 .4 .2 .3 .3
1 81 .0 80 59 92 76 .0 .0 20 .0
.0 .0 .0 41 31 00 79 57 59 16 24 53 45
6 39 88 79 03
87 43 67 0
V .0 .0 .1 .0 .1 - - - .0 .0- - - .5 .4 .3 1. .6 .4 .3 .5 .5 .6
1 88 29 55 93 40 .0 .1 .0 92 95
.0 .0 .0 27 81 79 00 21 40 93 82 61 16
7 67 44 26 11 19 15 0
V .0 - .0 .0 - - - - .0 .0 .0 .0 .0 .5 .4 .3 .6
1. .4 .3 .6 .6 .5
1 21 .0 63 41 .0 .0 .1 .1 20 09 33 39 11 05 27 57 21
00 85 95 52 02 21
8 32 11 83 50 02 0
V - - .0 .0 - - - .0 .1 .0 - - .0 .5 .5 .4 .4 .4 1. .4 .3 .3 .4
1 .0 .2 67 57 .0 .0 .1 54 65 65 .0 .0 86 30 21 59 40 85 00 83 80 71 48
9 02 11 28 23 08 48 94 0
V - - .0 .0 - - - - .1 - - - - .4 .4 .4 .3 .3 .4 1. .3 .4 .3
2 .0 .0 97 28 .0 .0 .1 .0 03 .0 .1 .0 .1 81 13 16 93 95 83 00 08 05 99
0 64 51 38 91 84 28 50 73 41 53 0
V .0 - .0 - - - - - - - - - .0 .4 .4 .2 .5 .6 .3 .3 1. .7 .5
2 86 .0 88 .0 .0 .1 .1 .0 .0 .0 .0 .1 00 65 02 24 82 52 80 08 00 06 85
1 29 15 80 51 15 24 03 53 67 35 0
V .0 - .1 .0 - - - - - - .0 - - .5 .4 .3 .5 .6 .3 .4 .7 1. .6
2 27 .0 66 24 .0 .0 .1 .0 .0 .0 41 .1 .0 17 31 53 61 02 71 05 06 00 64
2 08 14 86 21 22 81 06 59 10 0
V - - .1 .1 .0 - - - .0 - - - - .5 .5 .3 .6 .5 .4 .3 .5 .6 1.
2 .0 .0 48 11 00 .2 .2 .0 16 .0 .0 .1 .0 38 27 45 16 21 48 99 85 64 00
3 57 59 32 47 39 94 74 11 84 0
Source: Data Processed Through PASW Statistic 18

Table 2 shows the correlation matrix which tells about the correlation with each
variable. The interior portion of the table contains correlation coefficient for all pairs of
variables. The values along the diagonal, which represent associations between each
variable and itself, equal +1.000. This diagonal also serves as a line of symmetry.
Correlation matrix contains the correlation coefficient as well as significant values and
8 Dr. D.P. Warne & Kavita Rani

sample size for the data used to analyze each pair of variables. This table gives the
correlation between the original variables. Before conducting a principle components
analysis, we want to check the correlation between the variables. There should be at
least 3 items which show the value above than 0.3. There are 23 variables in this table
and 14 variables that have value above than 0.4, so this table fulfill the condition.

Table 3: KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .763
Bartlett's Test of Sphericity Approx. Chi-Square 1461.911
Df 253
Sig. .000
Source: Data processed through PASW statistics 18 version

Table 3 shows the value of KMO (Keiser-Meyer-Olkin) and barlett’s test. To test
the appropriateness of factor analysis techniques correlation between the variables
Keiser-Meyer-Olkin (KMO) measure of sample adequacy is used for the same. The
population correlation matrix is an identity matrix, which is rejected by the Bartlett’s
test of sphericity. The approximate Chi-square value is 1461.911 with 253 degree of
freedom, which is significant at 0.05 level of significance. The value of KMO statistic
is 0.763 which is more than 0.6.

Table 4: Communalities.

Initial Extraction
To what extent advertisements influence you to buy the car? 1.000 .680
To what extent dealer influence you to buy the car? 1.000 .746
To what extent family members influence you to buy the car? 1.000 .665
To what extent friends influence you to buy the car? 1.000 .653
To what extent relatives influence you to buy the car? 1.000 .622
To what extent technician council influence you to buy the 1.000 .633
car?
To what extent color influence you while purchasing a car? 1.000 .551
To what extent discount scheme influence you while 1.000 .516
purchasing a car?
To what extent after sale service influence you while 1.000 .768
purchasing a car?
To what extent finance facility influences you while 1.000 .683
purchasing a car?
To what extent interior influence you while purchasing a car? 1.000 .752
To what extent resale value influences you while purchasing a 1.000 .678
car?
A Study of Buying Behaviour of Customers Towards Small Car Segment 9

To what extent space influence you while purchasing a car? 1.000 .760
Services 1.000 .683
Price 1.000 .608
Mileage 1.000 .635
Smooth Ride 1.000 .674
Luxury 1.000 .668
Value for money 1.000 .723
Maintenance 1.000 .570
Looks 1.000 .762
Comfort 1.000 .734
Safety 1.000 .701
Source: Data processed through PASW statistics 18
Extraction Method: Principal Component Analysis.

Table 4 shows the communalities matrix which shows each variable share variation
with each other. Communalities are for correlation analyses the portion of variance
accounted for in each variable by the rest of variables. This is the proportion of each
variable’s variance that can be explained by the principal components extraction
communalities for each variable is also calculated which give the average of each
variable has been found.672 which is the amount of variance a variable share with all
the variables being considered. They are reproduced variances from the number of
components that we have saved.

Table 5: Total Variance Explained.

Compon Initial Eigen values


Extraction Sums of Rotation Sums of
ent Squared Loadings Squared Loadings
Tota % of Cumula Tot % of Cumula Tot % of Cumula
l Varia tive % al Varia tive % al Varia tive %
nce nce nce
1 5.47 23.810 23.810 5.47 23.810 23.810 3.99 17.359 17.359
6 6 3
2 3.06 13.327 37.137 3.06 13.327 37.137 2.63 11.456 28.815
5 5 5
3 1.91 8.331 45.468 1.91 8.331 45.468 2.24 9.768 38.583
6 6 7
4 1.56 6.822 52.290 1.56 6.822 52.290 1.94 8.442 47.025
9 9 2
5 1.23 5.356 57.646 1.23 5.356 57.646 1.92 8.365 55.390
2 2 4
6 1.10 4.816 62.462 1.10 4.816 62.462 1.48 6.447 61.836
8 8 3
10 Dr. D.P. Warne & Kavita Rani

7 1.09 4.773 67.236 1.09 4.773 67.236 1.24 5.399 67.236


8 8 2
8 .926 4.027 71.262
9 .808 3.512 74.775
10 .684 2.975 77.749
11 .638 2.775 80.524
12 .569 2.473 82.997
13 .547 2.378 85.375
14 .498 2.164 87.539
15 .458 1.993 89.532
16 .417 1.811 91.343
17 .389 1.692 93.036
18 .354 1.538 94.573
19 .342 1.487 96.061
20 .297 1.290 97.351
21 .247 1.073 98.424
22 .188 .819 99.243
23 .174 .757 100.000
Extraction Method: Principal Component Analysis.
Source: Data Processed Through PASW Statistic 18

Table no 5 shows the total variance explained table Eigen values are the variance
of the principal components .It shows that Eigen value greater than 1.0 (default option)
result in 7 factors being extracted. From the cumulative percentage of variance
accounted for 67.236 of the total variance by these 7 extracted factors. The first
component accounts for the most variance and have the highest Eigen value, and the
second component account for the next variance factor and so on.

Chart 1
A Study of Buying Behaviour of Customers Towards Small Car Segment 11

The scree plot shows the distinct break occur at 7 factors. It shows component
numbers on x-axis and Eigen value on y-axis .In chart till variable 7 the Eigen value is
greater than 1 and after the 7th variable the line is almost goes flat. Components with
Eigen value greater than 1 show high variance and Eigen value less than 1 show less
variance.

Table 6: Component Pattern Matrixa

React Component Matrix Rotated Component Matrix


ion 1 2 3 4 5 6 7 1 2 3 4 5 6 7
items
V1 .058 .363 - - .270 - .075 .061 - - - .214 .785 -
.162 .273 .605 .044 .033 .103 .027
V2 - .119 .261 .093 .324 .319 .659 .080 - .047 .031 .001 - .833
.118 .182 .094
V3 .211 .357 - - .181 .311 - .133 .036 - .265 .718 .037 -
.508 .323 .033 .244 .008
V4 .125 .602 .003 - .058 .128 - .040 .095 .304 - .720 .169 -
.474 .175 .033 .030
V5 .052 .545 - - .084 .204 - - .062 .111 .037 .760 .142 .072
.165 .496 .035 .044
V6 - .439 .280 - - - .495 - .272 .317 - .117 .287 .521
.140 .202 .211 .106 .289 .083
V7 - .472 .329 - - .319 - - - .623 .112 .279 - .039
.236 .013 .095 .231 .162 .096 .190
V8 - .494 - .114 .098 - - - - .063 .418 .193 .507 -
.049 .374 .297 .137 .022 .082 .189
V9 .035 .482 - .489 - .073 - - .106 .014 .850 .071 .151 -
.518 .145 .018 .010 .078
V10 - .628 - .290 .034 - .299 - .062 .214 .481 .004 .574 .268
.043 .143 .302 .023
V11 - .576 .595 .150 .061 .005 - .068 - .837 .030 .053 .102 .128
.116 .163 .125
V12 - .399 - .502 - .345 .000 - - .089 .794 .082 - .075
.143 .355 .038 .058 .101 .120
V13 - .537 .582 .214 - - - - .034 .860 .061 - .103 -
.084 .151 .084 .223 .002 .066 .003
V14 .769 .151 .140 - - .016 - .519 .598 .126 - .162 - -
.108 .186 .043 .088 .005 .079
V15 .720 .006 - - - .011 - .421 .589 - - .200 - -
.037 .220 .199 .021 .103 .129 .019 .130
12 Dr. D.P. Warne & Kavita Rani

V16 .596 .080 .001 - - .017 .265 .195 .751 - - .112 .003 .115
.179 .413 .067 .058
V17 .771 .122 .020 .096 .201 .045 .110 .738 .309 - .072 .100 .065 .112
.045
V18 .758 .029 .132 .224 .149 .033 .023 .755 .295 .038 .057 - - .037
.066 .022
V19 .687 .086 - .125 - - - .348 .712 .071 .102 - .078 -
.011 .437 .177 .077 .107 .250
V20 .633 - - .067 - .096 .163 .324 .627 - .119 - - .002
.077 .138 .323 .201 .028 .128
V21 .735 - .128 .180 .393 - - .860 .072 - - - .074 -
.054 .081 .093 .022 .059 .066 .057
V22 .773 - .170 .076 .319 .004 - .829 .184 .003 - .029 .025 .035
.005 .011 .102
V23 .793 - .005 .052 .195 .102 - .768 .255 - - .091 - -
.075 .123 .108 .027 .101 .120
Source: Data Processed through PASW statistics 18
Extraction Method: Principal Component Analysis
a) 7 components extracted.
b) Rotation method: varimax with Kaiser normalization

Table no. 6 shows the component pattern matrix.It shows the coefficient used to
express the standardized variable in the term of factors. These coefficients represent
the correlation between the factors and variables. The component matrix shows the
relationship between factors and variable.The correlation possible values range from -1
to +1. The rotated component matrix is used for interpreting factors. Each factor
composed of that variable loaded 0.30 or higher loading on that factor.In case where
two variable are loaded 0.30 or higher than 0.30 the highest loading is taken on that
factor by ignoring the minus and plus sign. The purpose of the rotation is to make
things easier for the structure of the analysis, so that each factor will have nonzero
loadings for only some of the variables without affecting the communalities and the
percentage of variance explained.

Table 7: Reproduced Correlations.


Reactio V V V3 V V V V V V V V V V V V V V V V V V V V
n items 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Repr V .6 - .17 .2 .2 .2 - .4 .0 .3 .0 - .0 .0 .0 .0 .0 - .0 - .1 .0 -
oduc 1 80 .0 0 80 60 05 .1 02 42 84 67 .1 31 44 48 10 95 .0 22 .1 02 78 .0
ed a 8 28 62 06 20 14
Corre 8
A Study of Buying Behaviour of Customers Towards Small Car Segment 13

lation V - .7 - - .0 .3 .0 - - .1 .1 .1 .0 - - - .0 .0 - - - .0 -
2 .0 4 .00 .0 39 47 87 .1 .0 82 66 17 23 .1 .1 .0 90 43 .3 .0 .0 57 .0
88 6 9 42 76 72 29 89 30 10 80 02 82
a
V .1 - .66 .4 .5 - .0 .2 .2 .0 - .2 - .1 .2 .1 .2 .0 .0 .1 .0 .1 .1
3 70 .0 5a 49 29 .0 45 49 81 97 .1 31 .2 53 12 34 12 68 09 21 62 10 93
0 37 51 36
9
V .2 - .44 .6 .6 .2 .3 .2 .0 .1 .2 .0 .2 .2 .1 .1 .1 .0 .0 - .0 .0 .0
4 80 .0 9 53 06 31 38 28 65 46 96 25 33 37 91 39 22 15 43 .0 03 78 75
4 a 35
2
V .2 .0 .52 .6 .6 .2 .2 .2 .1 .1 .1 .0 .0 .1 .1 .1 .0 - - - - - .0
5 60 3 9 06 22 29 62 24 10 51 47 86 64 42 42 22 77 .0 .0 .0 .0 .0 15
9 a 60 48 33 82 01
V .2 .3 - .2 .2 .6 .2 .0 - .3 .3 - .2 .0 - .2 - - - - - - -
6 05 4 .03 31 29 33 07 39 .0 57 12 .0 98 36 .0 05 .0 .1 .0 .0 .2 .1 .2
7 7 a 23 34 33 61 25 13 36 47 51 66
V - .0 .04 .3 .2 .2 .5 .0 .0 .0 .5 .2 .5 - - - - - - - - - -
7 .1 8 5 38 62 07 51 48 84 87 26 12 01 .0 .1 .1 .1 .1 .1 .2 .2 .1 .1
28 7 a 30 49 17 50 34 24 08 01 57 80
V .4 - .24 .2 .2 .0 .0 .5 .4 .4 .1 .2 .1 - - - .0 - .0 - - - -
8 02 .1 9 28 24 39 48 16 52 51 12 87 17 .0 .0 .0 17 .0 47 .0 .0 .0 .0
7 a 45 64 93 46 92 15 64 67
6
V .0 - .28 .0 .1 - .0 .4 .7 .4 .0 .6 .0 .0 - .0 .0 .0 .1 .1 - - -
9 42 .0 1 65 10 .0 84 52 68 85 33 47 79 03 .0 27 94 62 84 40 .0 .0 .0
7 23 a 31 40 72 04
2
V .3 .1 .09 .1 .1 .3 .0 .4 .4 .6 .2 .3 .2 - - .0 .0 .0 .0 - - - -
1 84 8 7 46 51 57 87 51 85 83 77 48 73 .0 .1 32 94 33 77 .0 .0 .0 .1
0 2 a 14 03 28 22 32 28
V .0 .1 - .2 .1 .3 .5 .1 .0 .2 .7 .1 .7 .0 - - .0 .0 - - .0 .0 -
1 67 6 .15 96 47 12 26 12 33 77 52 09 24 61 .1 .1 02 47 .0 .2 26 41 .0
1 6 1 a 44 18 33 36 92
V - .1 .23 .0 .0 - .2 .2 .6 .3 .1 .6 .1 - - - - - - .0 - - -
1 .1 1 1 25 86 .0 12 87 47 48 09 78 04 .1 .1 .1 .0 .0 .0 07 .1 .1 .0
2 62 7 34 a 41 87 22 12 25 42 25 45 91
V .0 .0 - .2 .0 .2 .5 .1 .0 .2 .7 .1 .7 .1 - - - .0 .1 - - .0 -
1 31 2 .23 33 64 98 01 17 79 73 24 04 60 12 .0 .0 .0 47 07 .1 .0 01 .1
3 3 6 a 92 44 25 56 09 03
14 Dr. D.P. Warne & Kavita Rani

V .0 - .15 .2 .1 .0 - - .0 - .0 - .1 .6 .6 .5 .5 .5 .6 .5 .4 .5 .5
1 44 .1 3 37 42 36 .0 .0 03 .0 61 .1 12 83 11 56 63 54 08 03 85 51 65
4 2 30 45 14 41 a
9
V .0 - .21 .1 .1 - - - - - - - - .6 .6 .5 .4 .4 .5 .5 .4 .4 .5
1 48 .1 2 91 42 .0 .1 .0 .0 .1 .1 .1 .0 11 08 46 92 62 55 07 07 70 24
5 8 33 49 64 31 03 44 87 92 a
9
V .0 - .13 .1 .1 .2 - - .0 .0 - - - .5 .5 .6 .3 .3 .5 .5 .2 .3 .3
1 10 .0 4 39 22 05 .1 .0 27 32 .1 .1 .0 56 46 35 99 59 51 37 13 12 46
6 3 17 93 18 22 44 a
0
V .0 .0 .21 .1 .0 - - .0 .0 .0 .0 - - .5 .4 .3 .6 .6 .4 .4 .6 .6 .6
1 95 9 2 22 77 .0 .1 17 94 94 02 .0 .0 63 92 99 74 47 48 40 46 70 38
7 0 61 50 12 25 a
V - .0 .06 .0 - - - - .0 .0 .0 - .0 .5 .4 .3 .6 .6 .4 .4 .6 .6 .6
1 .0 4 8 15 .0 .1 .1 .0 62 33 47 .0 47 54 62 59 47 68 77 33 67 73 41
8 06 3 60 25 34 46 25 a
V .0 - .00 .0 - - - .0 .1 .0 - - .1 .6 .5 .5 .4 .4 .7 .5 .3 .3 .4
1 22 .3 9 43 .0 .0 .1 47 84 77 .0 .0 07 08 55 51 48 77 23 50 71 99 51
9 1 48 13 24 33 42 a
0
V - - .12 - - - - - .1 - - .0 - .5 .5 .5 .4 .4 .5 .5 .3 .3 .4
2 .1 .0 1 .0 .0 .0 .2 .0 40 .0 .2 07 .1 03 07 37 40 33 50 70 14 67 37
0 20 8 35 33 36 08 92 28 36 56 a
0
V .1 - .06 .0 - - - - - - .0 - - .4 .4 .2 .6 .6 .3 .3 .7 .7 .6
2 02 .0 2 03 .0 .2 .2 .0 .0 .0 26 .1 .0 85 07 13 46 67 71 14 62 30 77
1 0 82 47 01 15 40 22 25 09 a
2
V .0 .0 .11 .0 - - - - - - .0 - .0 .5 .4 .3 .6 .6 .3 .3 .7 .7 .6
2 78 5 0 78 .0 .1 .1 .0 .0 .0 41 .1 01 51 70 12 70 73 99 67 30 34 82
2 7 01 51 57 64 72 32 45 a
V - - .19 .0 .0 - - - - - - - - .5 .5 .3 .6 .6 .4 .4 .6 .6 .7
2 .0 .0 3 75 15 .2 .1 .0 .0 .1 .0 .0 .1 65 24 46 38 41 51 37 77 82 01
3 14 8 66 80 67 04 28 92 91 03 a
2
Source: Data Processed Through PASW Statistics 18
Extraction Method: Principal Component Analysis.
a) Reproduced communalities
b) Residuals are computed between observed and reproduced correlation. There are
81 (32.0%) non redundant residuals with absolute values greater than .05.
A Study of Buying Behaviour of Customers Towards Small Car Segment 15

Table 7 shows the reproduced correlation which contains two items i.e the
difference between the reproduced correlation matrix and the original correlation
matrix is the residual matrix. The reproduced correlation matrix is the correlation
matrix based on the extracted components. The reproduced correlation matrix of
overall items extracts factors affecting buying behaviour which has shown 81(32%)
non redundant residuals with absolute values greater than 0.05, indicating a
satisfactory making the model fit

Table 8: Overall item variation explained in factor wise.


Factors Factors Coefficient Variable Factor Items
interpretation value
(% of
variance
explained)
F1 Personal .738 V17 Smooth ride (v17)
desire (23.810) .755 V18 Luxury (v18)
.860 V21 Looks (v21)
.829 V22 Comfort (v22)
.768 V23 Safety (v23)
F2 Technical and .598 V14 Services (v14)
Financial view .589 V15 Price (v15)
(13.327) .751 V16 Mileage (v16)
.712 V19 Value for money (v19)
.627 V20 Maintenance (v20)
F3 Psychological .623 V7 Color (v7)
(8.331) .835 V11 Interior (v11)
.860 V13 Space (v13)
F4 After .850 V9 After sale services(v9)
showroom .794 V12 Resale value(v12)
variability(6.8
22)
F5 Reference .718 V3 Family members(v3)
group(5.356) .720 V4 Friends(v4)
.760 V5 Relatives(v5)
F6 Promotional .785 V1 Advertisement (v1)
(4.816) .507 V8 Discount schemes (v8)
.574 V10 loan facility(v10)
F7 Counseling .833 V2 Dealer(v2)
(4.773) .521 V6 Technician council(v6)
Source: Data Processed Through PASW Statistic 18
16 Dr. D.P. Warne & Kavita Rani

Table 9: Overall confirmation of factors affecting buying behaviour by


demographic variable.
Confirmatory Statistics
Factors Me Gender Age Educatio Occupati Monthly
an n on Income
f- S- f- S- f- S- f- S- f- S-
valu valu valu valu valu valu valu valu valu valu
e e e e e e e e e e
1. Personal 3.77 .057 .812 1.48 .221 1.73 1.62 2.11 .100 1.55 .202
desire 3 3 8 6
 Smooth ride 3.70 .055 .815 2.02 .113 1.57 .197 .743 .528 .714 .545
5 7
 Luxury 3.75 .044 .835 .213 .887 .784 .504 1.35 .260 1.46 .226
2 6
 Looks 3.73 .543 .462 1.76 .155 .521 .668 1.50 .214 2.33 .706
8 9 1
 Comfort 3.82 1.95 .164 .192 .902 1.91 .129 1.43 .235 1.52 .210
5 4 3 5
 Safety 3.85 .586 .445 2.47 .063 2.13 .098 3.30 .022 .962 .412
8 1 1 *
2. Technical 3.57 3.50 .063 1.34 .261 3.43 .018 .317 .813 .525 .666
and financial Facets 0 6 9 *
 Services 3.61 3.45 .065 .924 .431 3.73 .012 .190 .903 .304 .822
4 7 *
 Price 3.65 3.75 .055 3.33 .021 2.47 1.24 .294 1.83 .143
0 6 * 0 .064 8 3
 Mileage 3.41 .239 .626 1.82 .145 5.34 .002 .563 .640 .476 .700
1 3 *
 Value for 3.56 2.76 .098 1.04 .374 1.06 .366 .041 .989 .567 .637
money 7 6 3
3.61 1.28 .259 .984 .402 1.41 .239 1.22 .301 1.28 .282
 Maintenance 1 9 8 3
3. Psychologica 4.30 .031 .860 1.32 .269 1.50 .216 1.72 .164 1.05 .371
l 2 1 7 2
 Color 4.39 .104 .747 3.34 .021 .832 .478 2.09 .103 .586 .625
9 * 8
 Interior 4.14 .969 .326 .900 .443 1.57 .198 .916 .435 .638 .592
4
 Space 4.39 .120 .729 1.52 .210 1.69 .170 3.53 .016 2.53 .058
7 8 9 * 9
A Study of Buying Behaviour of Customers Towards Small Car Segment 17

4. After 4.21 1.96 .163 1.29 .277 2.64 .051 1.45 .228 5.24 .002
showroom 5 8 9 9 8 9 *
variability
 After sale 4.13 .003 .958 .245 .864 3.84 .011 .156 .926 3.52 .016
services 5 * 9 *
4.30 6.44 .012 2.35 .074 1.62 .186 4.05 .008 4.55 .004
 Resale value 1 * 4 5 6 * 7 *
5. Reference 4.03 3.29 .071 2.81 .041 .218 .884 2.59 .054 1.48 .221
group 4 1 * 7 4
 Family 4.25 12.4 .001 1.13 .338 .801 .495 2.53 .059 3.63 .014
1 * 3 4 9 *
 Friends 4.05 .002 .965 3.20 .025 .688 .561 .592 .621 2.17 .094
5 * 1
 Relatives 3.80 .950 .331 1.24 .296 .526 .665 2.21 .088 .488 .691
3 7
6. Promotional 4.05 .342 .560 5.65 .001 .169 .917 1.65 .178 4.18 .007
7 * 9 9 *
 Advertising 4.07 8.19 .005 5.68 .001 5.46 .001 2.08 .104 2.73 .045
3 * 4 * 8 * 8 8 *
 Discount 4.08 1.23 .267 5.96 .001 .894 .446 .270 .847 2.18 .092
scheme 8 4 * 3
4.01 .002 .962 1.21 .307 .694 .557 1.62 .187 5.62 .001
 Finance 3 0 0 *
facility
7. Counseling 3.93 .037 .848 .974 .407 2.88 .037 3.54 .016 3.45 .018
8 * 9 * 0 *
 Dealer 3.68 .261 .610 .173 .915 3.22 .024 3.52 .016 3.77 .012
1 * 9 * 9 *
 Technician 4.18 .047 .828 1.27 .284 1.28 .283 1.51 .214 8.28 .000
council 6 1 1 4 *
Source: Primary (Data Processed Through PASW 18 Version)

Table 9 shows the ANOVA value and the significance value of demographic
variable such as gender, age, education, occupation and monthly. Factor 1 (personal
desire) has no significant effect on demographic variables, however, occupation have
effects on personal desire specially on safety. Factor 2 (Technical and financial facets)
is affected by education variable and in factor 2 variable service and mileage is
affected by education and price is affected by age. Factor 3 (psychological) factor has
no effect on demographic variable, but age has an effect on color and occupation has
an effect on space. Factor 4 (after showroom variability) has the effect of monthly,
income and education. In factor 4 educations have an effect on after sale services,
Gender, occupation and monthly income have a significant effect on resale value. Age
has a significant effect on reference group. In factor 5 Gender and monthly income
18 Dr. D.P. Warne & Kavita Rani

have a significant effect on family and age has an effect on friends. Age and monthly
income have a significant effect on promotional variables (factor 6). Wherever gender,
age, education, monthly income has significant effect on advertising and Age has a
significant effect on discount scheme, Monthly income has a significant effect on
finance facility. Education, occupation, monthly income has significant effect on
counseling. In factor 7 dealers have significant effect on education, occupation and
Monthly income have a significant effect on technician counselling.

6. Conclusion and Suggestions


Customer behaviour consists all dimensions of human behaviour that helps in making
purchase decision .An understanding of the customers behaviour enables a marketer to
take marketing decisions which are compatible with its customers needs, There are
four major dimensions of customers behaviour namely, cultural, socio-economic,
personal and psychological. The demographic determinants of customers' behaviour
consist of gender, age, educational qualification, occupation, monthly income. Factor
1(personal desire) and factor 2(technical and financial facets) has mean to identify
customer behaviour with value (3.77) and (3.57) which is less effective in comparison
with factor 3(psychological) and factor 4 (after showroom variability) which have
highest mean value that is (4.30) and (4.215) are more effective. According to this
study monthly income is variable that affects the customer behaviour regarding buying
a small car and age, education and occupation have comparatively but less effect on
customer behaviour.
Suggestions: It is recommended on the basis of the study that the price of the car
should be at par or slightly lower so that the customers may purchase a car instead of
using van or taxi and further vehicle manufacturers should improve the knowledge of
customers about the operations and maintenance of vehicles.

7. Further area of Research


The study has covered and analyzed 165 questionnaires for taking the customers view
about the various questions along with variables. This study covered the district of
Sirsa only . It may be extended with more items and more question in other districts of
the state to have understood the customers' behaviour regarding small cars.

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A Study of Buying Behaviour of Customers Towards Small Car Segment 19

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