A

SUMMER INTERNSHIP PROJECT REPORT

ON

“ A STUDY OF CUSTOMER PERCEPTION TOWRADS THE CAR

PURCHASE IN TATA MOTORS DEALERSHIP “

SUBMITTED TO

“SAVITRIBAI PHULE PUNE UNIVERSITY”

IN PARTIAL FULFILMENT OF THE REQUIREMENT OF
MASTER IN BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
AKSHAYKUMAR DATTATRAYA SHINDE

UNDER THE GUIDANCE OF

MRS. MADHURI CHAUDHARI

SMDYPSS’s
Dr. D.Y. PATIL CENTRE FOR MANAGEMENT & RESEARCH,
CHIKHALI, PUNE– 411062

2021-2023
 DECLARATION

I AKSHAYKUMAR DATTATRAYA SHINDE studying in MBA (2021-23) at

Dr. D.Y. PATIL CENTER FOR MANAGEMENT & RESEARCH, declare that the
information I have gathered duringthe period of field work Report I have collected all these
information is correctly in this particular period, which is to be completed as per rules of the
Savitribai Phule Pune University.

I have prepared this report independently and I have gathered all the relevant information
personally. I also agree in principle not to share the vital information with any other person
outside the organization and will not submit the project report to any other university.
I honestly express that the formation is not collected with any commercial intention and
motivation Thus, the sole object of collecting information is of academic purpose and I sure
that collected information is of academic purpose shall be only for fieldwork Report and
Nothing else.

(Signature of Student)

AKSHAYKUMAR DATTATRAYA SHINDE

2
 ACKNOWLEDGEMENT

I own a great deal to Dr. D.Y. PATIL CENTER FOR MANAGEMENT & RESEARCH
for laying the building blocks of logic and pragmatism in my life. This report, in a way is a
reflection of these values. The Organization Traineeship Segment (OTS) provided us with a
unique opportunity of working with an organization. I would like to express my earnest
gratitude and thanks to Dr. SUNIL DHANAWADE Director of O u r Dr. D.Y. PATIL
CENTER FOR MANAGEMENT & RESEARCH for his support and kind blessings.
I like to thank my project guide Mrs. Madhuri Choudhari for constant follow-up and
valuable suggestions provided throughout. She has always been an everlasting source of
inspiration and guidance.
I owe my special thanks to Miss. Trupti ma’am, HR, & MR. Shailender Naik, Sr. Sales
Manager, all the sales and service team of Shridha Motors for their encouragement and their
valuable guidance and support.
I am also grateful to all of them who are directly or indirectly involved in driving this
project to a success. I would like to thank my friends, and colleagues for their continuous
support.

3
 INDEX

Chapte Particulars Page

rNo. No.
I. Introduction
1.1 Introduction of the study 5
1.2 Statement of problem 8
1.3 Objective of study 9
1.4 Scope of study 10
1.5 limitations of the Study 11
II. Literature Review & theory 12
III. Research methodology
3.1 Process Of Marketing Research 15
3.2 Research and Data Collection Methods 17
3.3 Data collection & Sample Size 24
3.3 Sampling Technique 24
IV. Organizational Profile 25
V. Data Analysis and Interpretation 26
VI. Findings , Suggestions and Conclusion
6.1 Findings 43
6.2 Suggestions 44
6.3 Recommendation 45
6.4 Contribution to host Organization
6.5 Conclusion 46
Bibliography 47
Annexure 48

4
 INTRODUCTION

The Automobile sector in India has undergone significant transformation in the past
decade. This industry in India is to grow near about 3.62% per cent annually. Customer
preferences became complex and are undergoing rapid change due to the exposure to huge
number of information sources. So study of consumer preferences became even more
imperative for retailers today than in past. This study is conducted on consumer preferences
and consumer purchasing behavior while purchasing the automobiles. Marketers’ survival
depends on consumer satisfaction. Consumer satisfaction depends on their expectation and
actual performance of the particular brand. In brand preference, advertising plays a major
role. In the modern highly communicated world, every individual is influenced to some
degree by advertising. Both public sector and private sector or domestic and foreign firms
have learned from their past experiences that their success is determined by their ability to
communicate effectively and efficiently with their target audiences.
Automobiles have become essential part in lifestyle of the people in the society.
There are number of automobile brands are available in the market. In those brands, some
brands are very famous not only in Andhra Pradesh but also globally. For the research
purpose passenger car segment has be\en selected. This is the most preferred segment of the
consumers in Andhra Pradesh. Not lacking behind, automobile companies are also
advertising their products through various media and spending huge amount on celebrities
to endorse their product. To withstand in this heavy competition firms are using various
techniques like using celebrities, investing on research to study the pulse of target audience,
investing on promotional activities etc. Celebrities have the huge power to influence
consumer’s purchase decision. So the large amounts of funds are spent as the celebrity
endorsement can bestow unique features upon a product that it may have lacked otherwise.
The automobile Company especially on Advertising spends around 50-60% of the total
cost. Various Movie Actors and Sports Players are hired to endorse the brands.

Consumer buying behavior is the decision process in which consumers or buyers of goods
tend to react while purchasing the product of their choice. It refers to the final purchase of
the ultimate customer. The buying behavior of passenger cars are based on major cluster of
factors inclusive of social, economical, cultural, and psychological needs. Along with

5
buying behavior another variable ,customer’s perception on deciding factors like price,
income distribution, and utility, culture, family size etc take major role in decision of
choosing a product to buy or not to buy.
The viable nature among the automobile players has initiated the major companies in
the industry to take up unique strategies to fight competition among them. Among the
categories of the car segments, B Segment sees the maximum competition because it offers
the consumers a wide range of models to choose from. The major companies see to that
they provide quite a range of vehicles in all segments of the vehicle categories so that the
end user ends up in using in any one of their vehicle. To support the push of sales
advertisements play a major role in providing a choice medium, a reachable one for the
consumers. The flamboyance of the cars can be appealed through the Television medium
and closely by the print and of late the online medium. Both the mediums have their own
uniqueness in reaching the audience in marketing a product. In addition to this celebrity
endorsements and testimonial advertisements have come long way and they are also
contributing to some extent to sell their cars. The Indian Automotive Industry after de-
licensing in July 1991 has grown at a spectacular rate on an average of 17% for last few
years.
The industry has attained a turnover of USD $35.8 billion, (INR 165,000 crores) and
an investment of USD 10.9 billion. The industry has provided direct and indirect
employment to 13.1 million people. Automobile industry is currently contributing about 5%
of the total GDP of India. India's current GDP is about $1.4 trillion and is expected to grow
to $3.75 trillion by 2020.

6
New car buyers

To participate in a car survey to share their views and opinion about the new car model.
Understand their preference and intention of the customer wile purchasing a car. What they
expect from the company if they are purchasing there new first car. Understanding the
attitudes and needs of its customer base and to identify what could be improved to better
meet their customers’ requirements.
The organization performance is to find competition in the multi-utility vehicle segment
where their product sales were stagnating.
To understand challenges we needed to consider a number of factors including: evolving
customer requirements, increased competition, fluctuating price elasticity and new fuel
dynamics.

7
 STATEMENT OF PROBLEM
Consumer choice process is a complex phenomenon. Consumer buying
decision with reference to product or services involves many processes and complex it
is complicated for consumer durables like automobiles. The literature on brand
preference studies reveals that customer has to spend considerable amount of time to
evaluate and select appropriate brand which matches their needs and economic
conditions for the selection of durable products, especially passenger cars. The pre-
conceived idea of the buyer as well as marketing strategies followed by the
manufacturer and marketer also play a vital role in selection of a particular brand. In
the region of Andhra Pradesh very limited number of attempts has been made to study
the impact of brand preference factors on customer satisfaction. Based on these basic
reasons, the present study on the factors contributing brand preference of passenger
cars and its impact on customer satisfaction level has been conducted.

8
 OBJECTIVE

The present study is conducted with the following objectives

1. To identify the age of responds perception’s and car class of buyers

perception in passenger car sector.
2. To Study the Use of Car’s and fuel preferences
3. To study the different features of customer perception

9
 SCOPE OF STUDY
There is lot of potential for further research in this area. This section suggests few
potential avenues for future research, which may be pursued by researchers based on their
area of interest.
Since this study is confined to the Pune only, the researcher may focus on the other parts
of country to generalize the findings of the study. Inter-State comparison can be made to
study the topic in a comprehensive way.
Researcher may concentrate on marketing mix to have in depth knowledge of the state.
An examination into the financial implications of purchasing a vehicle could be
conducted across the state.
Researcher may examine how marketing programme strategies affect consumer
perceptions for premium cars.

Topics-
1. Only SUV and MUV vehicles are taken for the observation.
2. This project do not covers towards purchasing commercial vehicles and light weight
commercial vehicles.
3. The income level of customer in particular is not limited.

10
 LIMITATIONS OF STUDY
1. Improper address provided in database :

The address provided given ware either not complete. It became problematic to
collect sample and fulfill the requirement as per the guide line.

2. Short time span :

Target sample for small car was 50 intended customers

11
 REVIEW OF LITERATURE

William B Dodds (1991) investigated the effects of the intrinsic cues of price
brand and store information on consumer perception of product quality. They found
that price had a positive effect on perceived quality but a negative effect on perceived
value and respondent’s willingness to buy. Samson Itamer (1992) has observed that
purchase decisions are determined on the basis of both absolute attributes of the
alternatives and their relative positions within the particular choice set under
consideration. He has further suggested that consumers are less likely tochoose
alternatives that are offered with unneeded features or premium even when the features
do not reduce the value of the product in any way. Aradhana Krishna (1994) viewed
that buyers purchase behavior can be influenced not only by the current price of a
product but also by what price they expect in future.

Gerald D Bell (1967) studies how a new car buyer feels about his purchase and
what factors determine his reactions when he begins living with his new car. The
finding of this investigation suggests the effect of a customer’s self confidence his
personality and the quality of service he receives upon his cognitive dissonance.
Edward L Grubb and Greg Hupp (1968) test a methodology for measurement of self
concept and consumer behavior in comparable terms and therefore to further
substantiate the relationship of self theory to consumer behavior. The author suggest
that the owner of a specific make of automobiles perceive themselves as having self
concepts similar to those of others who own the make of an automobile. Darlin Doman
(1983) in the article has mentioned that satisfied new car buyers discuss their
experiences with eight people dissatisfied buyers complain to an average of twenty two
people.

C. W Park et al (1994) assessing the consumer knowledge has observed that

consumer knowledge is an important construct in understanding consumer behavior
such as information search and information processing. Increase in self assessed
knowledge was associated with decrease in utilization of sales people’s
recommendations. Andrew et al (1996) assess number of different measures of

12
consumer expertise by examining their ability to predict correct choices in the stimulus
based choice tasks. Pavleen et al (2003) in their article have perceived that the family
of a reference group has one of the strongest most immediate and most pervasive
effects on a consumer’s personality motivation and attitude.
Thorough understanding of the behavior of the target market enables a marketer to
make marketing decisions which are compatible with its consumer needs. Major
determinants of consumer behavior which have to be studied by the marketer are
cultural, socio-economic, personal and psychological. With regard to the study area ie.
Automobile sector there is enormous change in the purchase pattern of customers
especially rising income has enhanced the purchasing power and more and more people
are able to afford a car. Broadening of the target market has been observed in the recent
past. Customer demands are not static, they change with the rise in expectations and
with the exposure to new information, so continuous focus on the changes is necessary
for every company to exist in the market.
Rahul Singh and Shiny Raizada (2020) explored the consumer behavior,
thinking and usage patterns of those who have bought a mid-range priced SUV in the
last 10 months before the pandemic period or is planning to buy one in the next 10
months during the Pandemic period. The study is focused on four major factors Media
Consumption, Unaided recall, Brand preferences and Price perception and decision
making.
Tejaswi Vellampalli (2017) studied the factors influencing post purchase
behavior of Passenger Car customers of Hyundai to understand the satisfaction level
and its influencers. The author explored the variables influencing post purchase
behavior of automobile buyers.
Kusuma P(2015)conducted study in the state of Karnataka to identify the
factors that influence the consumer buying behavior patterns of passenger car owners.
Researcher also developed a theoretical model, which influence the consumer buying
patterns of passenger cars, so that further research could be done, based on the
theoretical model developed by him.
Arpita Srivastavaand Mitu Matta (2014) explored the consumer behavior
towards passenger cars in Delhi NCR. The study focused on important behavioral
aspects like information search and evaluation, brand preference and brand loyalty and
factors of motivation. Research concluded that automobile manufacturers have to
13
understand the factors which enhance the level of satisfaction of customers while
developing their products to meet customer’s needs and while designing the marketing
programs and strategy.
Sangeeta Gupta ( 2013) investigated the role of reference group in influencing
the buying behavior of car owners within the city of New Delhi.. The results revealed
that there is strong correlation between the attitude of reference group towards
attributes like fuel efficiency, mileage, price in buying decision and buying decisions of
target market.

Brown et al (2010) analyzed the consumer’s attitude towards US, European and
Japanese cars. It has been identified from the study that the country–of–origin plays a
significant role in the consumer’s behavior. The brand image, reasonable price and
distributor’s reputation will have a significant influence on the sale of passenger’s car.

14
RESEARCH METHODOLOGY

PROCESS OF MARKETING RESEARCH

Define the problem

And research objective.

Develop the research

Plan

Collect the information

Analyze the
Information

Present the finding

Make the decision

15
Methodology means the way the sample and the sample size is selected is of data
collection, various tools are used for studying problems with certain objects (or)
objects in view it is back bone of the study. The research design undertaken in this
study is exploratory in nature, i.e. to discover the potential opportunities. The
Population for the study on consumer perception regarding purchasing behavior of
Passenger cars is residents of Pune (Urban) belonging to middle and upper classes. The
questionnaire for this study was a structured questionnaire. The numbers of questions
were about 10. All the questions were asked to consumers to know their perception.
The questionnaire was designed in such a format that it was easy to get the basic
Personal information about respondent like name; e-mail address and phone number
were collected. Questions relating to Information like Preferred brands, product
offering (lifestyle) and consumer perception were also included. Sample size is 50.
Sample is selected through Random Sampling method.

16
 RESEARCH METHOD
Marketing research methodology requires the application of system approach to
the task of collecting, organizing, analyzing and interpreting desired marketing
information. This means that each step in the research with all other information and
executed as specified at proper time and in the desired sequence.
Market research is directly concerned with all three operations, input, process
and output. Input is the data (fact), figure and value often qualified. Research process
the collected data is to analyze the data fats and figure in proper conclusion. In data
processing we have the operation of editing, classification and Output of the data is in
the form of information and answer of the problem for which the research is formed.

17
Methods of Data Collection
I. COLLECTION OF PRIMARY DATA
We collect primary data during the course of doing experiments in an experimental
research but in case we do research of the descriptive type and perform surveys, whether
sample surveys or census surveys, then we can obtain primary data either through
observation or through direct communication with respondents in one form or another or
through personal interviews. This, in other words, means that there are several methods of
collecting primary data, particularly in surveys and descriptive researches. Important ones
are:
1. Observation method,
2. Interview method,
3. Through questionnaires,

Observation method:
The observation method is the most commonly used method especially in studies relating
to behavioral sciences. In a way we all observe things around us, but this sort of
observation is not scientific observation. Observation becomes a scientific tool and the
method of data collection for the researcher, when it serves a formulated research
purpose, is systematically planned and recorded and is subjected to checks and controls
on validity and reliability. Under the observation method, the information is sought by
way of investigator’s own direct observation without asking from the respondent. For
instance, in a study relating to consumer behavior, the investigator instead of asking the
brand of wrist watch used by the respondent, may himself look at the watch. The main
advantage of this method is that subjective bias is eliminated, if observation is done
accurately. Secondly, the information obtained under this method relates to what is
currently happening; it is not complicated by either the past behavior or future intentions
or attitudes. Thirdly, this method is independent of respondents’ willingness to respond
and as such is relatively less demanding of active cooperation on the part of respondents
as happens to be the case in the interview or the questionnaire method. This method is

18
particularly suitable in studies which deal with subjects (i.e., respondents) who are not
capable of giving verbal reports of their feelings for one reason or the other However,
observation method has various limitations. Firstly, it is an expensive method. Secondly,
the information provided by this method is very limited. Thirdly, sometimes unforeseen
factors may interfere with the observational task. At times, the fact that some people are
rarely accessible to direct observation creates obstacle for this method to collect data
effectively. While using this method, the researcher should keep in mind things like:
What should be observed? How the observations should be recorded? Or how the
accuracy of observation can be ensured? In case the observation is characterized by a
careful definition of the units to be observed, the style of recording the observed
information, standardized conditions of observation and the selection of pertinent data of
observation, then the observation is called as structured observation. But when
observation is to take place without these characteristics to be thought of in advance, the
same is termed as unstructured observation. Structured observation is considered
appropriate in descriptive studies, whereas in an exploratory study the observational
procedure is most likely to be relatively unstructured.

Interview method:
The interview method of collecting data involves presentation of oral-verbal stimuli and
reply in terms of oral-verbal responses. This method can be used through personal
interviews and, if possible, through telephone interviews. Personal interviews: Personal
interview method requires a person known as the interviewer asking questions generally
in a face-to-face contact to the other person or persons. (At times the interviewee may
also ask certain questions and the interviewer responds to these, but usually the
interviewer initiates the interview and collects the information.) This sort of interview
may be in the form of direct personal investigation or it may be indirect oral investigation.
In the case of direct personal investigation the interviewer has to collect the information
personally from the sources concerned. He has to be on the spot and has to meet people
from whom data have to be collected. This method is particularly suitable for intensive
investigations. But in certain cases it may not be possible or worthwhile to contact
directly the persons concerned or on account of the extensive scope of enquiry, the direct
personal investigation technique may not be used. In such cases an indirect oral
examination can be conducted under which the interviewer has to cross-examine other
19
persons who are supposed to have knowledge about the problem under investigation and
the information, obtained is recorded. Most of the commissions and committees
appointed by government to carry on investigations make use of this method. The method
of collecting information through personal interviews is usually carried out in a structured
way. As such we call the interviews as structured interviews. Such interviews involve the
use of a set of predetermined questions and of highly standardized techniques of
recording. Thus, the interviewer in a structured interview follows a rigid procedure laid
down, asking questions in a form and order prescribed. As against it, the unstructured
interviews are characterized by a flexibility of approach to questioning. Unstructured
interviews do not follow a system of pre-determined questions and standardized
techniques of recording information. In a non-structured interview, the interviewer is
allowed much greater freedom to ask, in case of need, supplementary questions or at
times he may omit certain questions if the situation so requires. He may even change the
sequence of questions. He has relatively greater freedom while recording the responses to
include some aspects and exclude others. But this sort of flexibility results in lack of
comparability of one interview with another and the analysis of unstructured responses
becomes much more difficult and time-consuming than that of the structured responses
obtained in case of structured interviews. Unstructured interviews also demand deep
knowledge and greater skill on the part of the interviewer. Unstructured interview,
however, happens to be the central technique of collecting information in case of
exploratory or formulate research studies. But in case of descriptive studies, we quite
often use the technique of structured interview because of its being more economical,
providing a safe basis for generalization and requiring relatively lesser skill on the part of
the interviewer. We may as well talk about focused interview, clinical interview and the
non-directive interview. Focused interview is meant to focus attention on the given
experience of the respondent and its effects. Under it the interviewer has the freedom to
decide the manner and sequence in which the questions would be asked and has also the
freedom to explore reasons and motives. The main task of the interviewer in case of a
focused interview is to confine the respondent to a discussion of issues with which he
seeks conversance. Such interviews are used generally in the development of hypotheses
and constitute a major type of unstructured interviews. The clinical interview is
concerned with broad underlying feelings or motivations or with the course of
individual’s life experience. The method of eliciting information under it is generally left
20
to the interviewer’s discretion. In case of non-directive interview, the interviewer’s
function is simply to encourage the respondent to talk about the given topic with a bare
minimum of direct questioning. The interviewer often acts as a catalyst to a
comprehensive expression of the respondents’ feelings and beliefs and of the frame of
reference within which such feelings and beliefs take on personal significance.
Through questionnaires:
This method of data collection is quite popular, particularly in case of big enquiries. It is
being adopted by private individuals, research workers, private and public organizations
and even by governments. In this method a questionnaire is sent (usually by post) to the
persons concerned with a request to answer the questions and return the questionnaire. A
questionnaire consists of a number of questions printed or typed in a definite order on a
form or set of forms. The questionnaire is mailed to respondents who are expected to read
and understand the questions and write down the reply in the space meant for the purpose
in the questionnaire itself. The respondents have to answer the questions on their own.
The method of collecting data by mailing the questionnaires to respondents is most
extensively employed in various economic and business surveys.
The merits claimed on behalf of this method are as follows:
1. There is low cost even when the universe is large and is widely spread geographically.
2. It is free from the bias of the interviewer; answers are in respondents’ own words.
3. Respondents have adequate time to give well thought out answers.
4. Respondents, who are not easily approachable, can also be reached conveniently.
5. Large samples can be made use of and thus the results can be made more dependable
and reliable.

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 II. COLLECTION OF SECONDARY DATA

Secondary data means data that are already available i.e., they refer to the data which
have already been collected and analyzed by someone else. When the researcher utilizes
secondary data, then he has to look into various sources from where he can obtain them.
In this case he is certainly not confronted with the problems that are usually associated
with the collection of original data. Secondary data may either be published data or
unpublished data. Usually published data are available in:
(a) Various publications of the central, state are local governments;
(b) Various publications of foreign governments or of international bodies and their
subsidiary organizations;
(c) Technical and trade journals;
(d) Books, magazines and newspapers;
(e) Reports and publications of various associations connected with business and industry,
banks, stock exchanges, etc.;
(f) Reports prepared by research scholars, universities, economists, etc. in different fields;
an
(g) Public records and statistics, historical documents, and other sources of published
information.

The sources of unpublished data are many; they may be found in diaries, letters,
unpublished biographies and autobiographies and also may be available with scholars and
research workers, trade associations, labor bureaus and other public/ private individuals
and organizations. Researcher must be very careful in using secondary data. He must
make a minute scrutiny because it is just possible that the secondary data may be
unsuitable or may be inadequate in the context of the problem which the researcher wants
to study. In this connection Dr. A.L. Bowley very aptly observes that it is never safe to
take published statistics at their face value without knowing their meaning and limitations
and it is always necessary to criticize arguments that can be based on them. By way of
caution, the researcher, before using secondary data, must see that they possess following
characteristics:

22
1. Reliability of data: The reliability can be tested by finding out such things about the
said data:
(a) Who collected the data?
(b) What were the sources of data?
(c) Were they collected by using proper methods?
(d) At what time were they collected?
(e) Was there any bias of the compiler?
(t) What level of accuracy was desired? Was it achieved?

2. Suitability of data: The data that are suitable for one enquiry may not necessarily be
found suitable in another enquiry. Hence, if the available data are found to be unsuitable,
they should not be used by the researcher. In this context, the researcher must very
carefully scrutinize the definition of various terms and units of collection used at the time
of collecting the data from the primary source originally. Similarly, the object, scope and
nature of the original enquiry must also be studied. If the researcher finds differences in
these, the data will remain unsuitable for the present enquiry and should not be used.

3. Adequacy of data: If the level of accuracy achieved in data is found inadequate for the
purpose of the present enquiry, they will be considered as inadequate and should not be
used by the researcher. The data will also be considered inadequate, if they are related to
an area which may be either narrower or wider than the area of the present enquiry. From
all this we can say that it is very risky to use the already available data. The already
available data should be used by the researcher only when he finds them reliable, suitable
and adequate. But he should not blindly discard the use of such data if they are readily
available from authentic sources and are also suitable and adequate for in that case it will
not be economical to spend time and energy in field surveys for collecting information.
At times, there may be wealth of usable information in the already available data which
must be used by an intelligent researcher but with due precaution.

23
 Research method was involved 1 method
DATA COLLECTION

 The data collection and the survey were done in PUNE area.
 The data collection for the project is mainly from secondary sources.

Sample Size-

50 Prospective Customers

Sampling Technique Types

1) Simple Random Sampling

2) Convenience Sampling

3) Systematic Sampling

4) Cluster Sampling

5) Stratified Sampling

Used Simple Random Sampling:-

The secondary data is collected from various business news papers and websites,
research paper, journal and various magazines. The secondary data gave me brief
overview of the current market situation, the history of the company and the sales
figures of the latest quarter.

24
25
 DATA ANALYSIS
1. What is Age of respondent?

Age Respondent Percentage (%)

20-25 5 10
26-30 10 20
31-35 15 30
36-40 11 22
41-45 6 13
46-50 3 5
Total 50 100

For SUV/ MUV

AGE OFRESPONDENT

5% 10%
13% 20-25
26-30
20%
31-35
22% 36-40
41-45
46-50
30%

SUV - Sport utility vehicle

MUV - Multi Utility Vehicle
Sedan - a 4-door passenger
car with a trunk

26
Interpretation:

 For SUV car 30% age of 31-35 are going to purchase the car.
 31-40 ages of peoples are very likely to purchase SUV car. This age group
peoples are interested in the SUV vehicles.
 The company’s target customer should be from the same age group.
 From the 20-25 age group and 41-50 age group there was less response compared
to the other age group.
 As per the Doughnut chat the 50% of people are from 31-40 age group and they
are the intended customer for the SUV car.
 20-25 age groups (youngsters) are showing the positive response towards the
SUV car. This shows that the SUV car vehicles craze is increasing day by day in
youngsters.

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2. What is age of responds for premium compact cars?

Age Respondent Percentage (%)

20-25 9 18
26-30 7 14
31-35 9 18
36-40 12 24
41-45 9 18
46-50 4 8
Total 50 100

Age of Responds

AGE OF RESPONDENT

8%
18% 20-25
18% 26-30
31-35
14%
36-40
41-45
24% 46-50
18%

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Interpretation:

 The highest interest is from 36-40 age groups for premium compact car is24%.

 As per the doughnut chat the respond for premium compact car is 18% from the
41- 45 age groups.
 From the common class and upper common classes their first choice is premium
car.
 For premium cars the interest of 20-25 group responded is 18%. This age group
is having more interest in premium cars.
 31-35 age group of respondent are having 18% share in this doughnut chat.

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 3. How do you finance the purchase of your car?

Purchase Responds Percentage (%)

Spot Price 4 8

Loan 45 90

Exchange 1 2
Total 50 100

Exchg 2% Spot 8%

Loan 90%

Interpretation:

 Due to easy availability of the loans and financing options most of the people are
opting for them.
 There are very few people who have enough amounts that they can easily put in
for the purchase of vehicle.
 Most of the people prefer for going into the finance schemes as they have pay a
small amount of down payment and the rest they can pay conveniently in small
installments.


30
4. Which of the following group’s are best describes your household’s total
monthly income before taxes?

 Reviews taken for upper compact/ premium compact car Sample size –50
Monthly Income Respondents Percentage (%)

Below 10,000 0 0
10,001 -15,000 0 0
15,001 – 20,000 0 0
20,001 – 30,000 0 0
30,001 – 40,000 21 42
40,001 – 50,000 19 38
50,001 - 75,000 7 15
75,001 – 1,00,000 3 5
Total 50 100

Upper compact/ Premium compact

0% car.
5% 0% 0% 0%
10,000 or less
10,001 - 15,000
15% 15,001-20,000
42% 20,001-30,000
30,001-40,000
40,001-50,000
38% 50,001-75,000
75,001-100,000
100,001 or more

31
Interpretation:

 From 10,000 to 30,000the respondents use to get terminate.

 Our target customer was between 30,001 to 100,000 or more than that monthly
income before taxes.
 42% respondent’s monthly income is form 30,001 – 40,000.
 38%respondent’s monthly income is form 40,001 – 50,000.
 Income from 30,000 - 50,000 comes from medial class family are very interested in
premium cars. As the pie chart shows the class according to their income we can
see they are price concise and very sensitive for choosing their car.
 80% intended buyers are from 30,000-50,000 class.
 Income is the common factor in choosing this class of car.

32
5. Which of the following group’s are best describes your household’s total
monthly income before taxes?
Reviews taken for SUV and MUV car
Sample size –50

Monthly Income Respondents Percentage (%)

Below 10,000 0 0
10,001 -15,000 0 0
15,001 – 20,000 0 0
20,001 – 30,000 0 0
30,001 – 40,000 8 16
40,001 – 50,000 17 34
50,001 - 75,000 11 22
75,001 – 1,00,000 12 24
1,00,001 Above 2 4
Total 50 100

0% SUV and MUV

0% 0% 0%
4%
16% 10,000 or less
10,001 - 15,000
24% 15,001-20,000
20,001-30,000
30,001-40,000
40,001-50,000

34% 50,001-75,000
75,001-100,000
22%
100,001 or more

33
 Interpretation:

 From 10,000 to 30,000the respondents use to get Terminate.

 Our target customer was between 30,001 to 100,000 or more than that
monthly income before taxes.
 34% respondent’s monthly income is form 40,001 –50,000.
 22% respondent’s monthly income is form 50,001 –75,000.
 40,000-75,000 income comes from upper class and they are ready to spend
more money in car.
 56% respondents are from this class that shows that they are spending
more money for comfort, space and power For SUV cars the intended
buyers are from 40,000 to 100,000 and more monthly income. This shows
that they spend more money in cars.























34



6. Which of the following best describes the new vehicle you intended to
purchase?

Decision Respondents Percentage (%)

First time buyer 10 20

Replacement 25 50
vehicle for my
household
Additional vehicle 15 30
for my household
Total 50 100

Purchase decision making process of new car

30

25

20

15

10

0 Replacement My household's
Additional
vehicle for first ever vehicle
vehicle for my
my household (first time buyer)
household
Purchase decision making
process of new car 15 25 10

35
Interpretation:

 10 of the respondent purchasing decision making process was purchasing there

first car in their family.
 25 respondent was replacing there vehicle with new car.
 15 respondents was purchasing additional car for their household or additional
car for their personal use. 

36
7. Is the new vehicle you are intended to purchase for personal use or both
personal and commercial use?

Intend Responds Percentage (%)

Personal Use 20 40
Commercial Use 18 36
Personal & Commercial 12 24
Use
Total 50 100

Intend to purchase type –

Intend to purchase type

25

20

15

10

0
Personal and
Personal use Commercial use
commercial use

Total (50) 20 18 12

37
Interpretation:

 Out of total 50 samples, Intended customer 20 respondent are going to

purchase car for personal use.
 18 respondents are going to purchase car for commercial use.
 12 respondents are going to use car for both personal n commercial use.


38
8. What is Customer preference to change vehicle?

Customer Responds Percentage (%)

Preference
1-2 Year 8 16
2-3 Year 10 20
3-5 Year 14 28
More Than 5 Year 18 36
Total 50 100

Customer Preference-

Customer Preference
20
18
16
14
12
10
8 Customer preference
6
4
2
0
1-2 Year 2-3 Year 3-5 Year More tha 5
Year

Interpretation:

 From the above diagram customer 50 customers preferred to change their

vehicle after one or two year.

39
9. Which Type Of Fuel Preferred?

Fuel Responds Percentage (%)

Petrol 20 40
Diesel 15 30
CNG 12 24
Electrical 03 06
Total 50 100

Type of fuel use –

Types Of fuel use

25

20

15

Types Of fuel use

10

0
Petrol Diesel CNG Electrical

Interpretation:

 Over 20 customers preferred and are using car running on petrol,

 15 Customers preferred and are using car running on diesel,
 12 Customers preferred and are using car running on CNG,
 03 Customers preferred and are using car running on Electrical

40
10. Which Features needed by the customer in the car?

Product Not Neutral Important Extremely Percentage

Attributes Important Important (%)

Space 15 20 10 5 100
Size & 10 15 20 5 100
Shape
Technology 16 10 19 5 100
Brand 12 14 11 13 100
Image
Interior 11 15 16 8 100
Comfort 10 14 20 6 100
Power 09 18 21 2 100
Fuel 08 10 26 6 100
Efficiency
Avg. 100
Percentage

Features-

Features

6 5
2 Space
5 Size and shape
6 Technology
Brand Image
5
Interior
Comfort
8
Power
Fuel efficiency
13

41
Interpretation:
Customer preferred following features

 5% space,
 5% size and shape,
 5% technology,
 13% brand image,
 8% interior,
 6% comfort,
 2% power
 6% fuel efficiency.

42
 FINDINGS

The important findings of the study are summarized and suitable conclusions drawn are
presented below.

 The company’s target customer should be from the same age group.
 From the common class and upper common classes their first choice is premium
car.
 Due to easy availability of the loans and financing options most of the people are
opting for them.
 There are very few people who have enough amounts that they can easily put in
for the purchase of vehicle.
 Most of the people prefer for going into the finance schemes as they have pay a
small amount of down payment and the rest they can pay conveniently in small
installments.
 45 of the respondent purchasing decision making process was purchasing there
first car in their family.
 30 respondent was replacing there vehicle with new car.
 The important findings of the study are summarized and suitable conclusions
drawn are presented below.

43
 SUGGESTIONS

 The companies should concentrate on making superior engineering, design of the

car and should try to enhance their brand image as these are the most important
factors which buyers considers before purchasing these segment of cars.
 Companies should introduce these segment of cars at little low price as the price is
one of the important factor for the people for not having a big car.
 According to the survey, approximately 90% of the people purchase car on
installments, therefore it is very important for the companies to offer attractive
financing options in order to attract the customers.
 Since all aged group customers are well aware about the brands, companies should
concentrate on their brand value in the market.
 Indian consumers are price sensitive. So, companies should be aware of the pricing
strategies
 Advertisements have very high impact on all members of the family. so while
creating the advertisement, companies should focus upon the preferences of target
market.
 Indian consumer purchases products when they feel they are getting something
additional to the product. So companies should follow effective offer strategies.
 Companies should implement schemes in terms of Maintenance to attract the
customer who has more concern about Maintenance.
 Organizations should maintain safety and comfort features which are recommended
by the government and SIAM (Society for Indian Automobile Manufacturers).

44
 RECOMMENDATIONS

 The study shows that all aged groups are well aware about brands of automobile and
their purchasing decision depends on the brand image.
 There is an impact of income of the customers, which is directly proportional to the
price of the car. Purchasing decisions of individuals depends on their family
members.
 Price is a key element, which shows high impact on the automobile customers,
Customers are giving priority to the offers and benefits while taking the purchase
decision, Customers are more concerned about family needs while taking the
decision to purchase a car.
 Fuel efficiency is another important factor of concern for the customer who is
planning to purchase the car. Buying decision also depends on the Price of the car,
Comfort and engine power are other two important areas customer is giving
importance with regard to their automobile purchase decisions.

Learning from the Project

 Understood the customer perception about buying Car

 I understood the purchase pattern of the customer

45
 CONCLUSION

 From the exploratory survey with dealers it was found that Income, age, gender are
very important factors that influence the purchase decision.
 According to dealers people give more weight age to the brand engine, comforts, price
and reliability of the vehicle.
 On an average 8 people out of 10 take test drive of the car on their visit to the
showroom.
 5 people out of 10 purchase the car after taking the test drive.
 According to dealer 80% to 90% people purchase the cars on loan.
 Most of them prefer petrol engines according to the dealer’s response.
 From the questionnaire study it was found that most of the people who are the owners
of big cars (Sedan, SUV, MUV) prefer to buy the cars of the companies who is having
a very good brand image and superior engineering.
 According to survey it was found that people prefer to have SUVs and MUVs when
they want to go for diesel engine and like to have compact car in case of petrol engine.

46
 BIBLIOGRAPHY
1. Lahari Chaitanya atal, ―Patient Satisfaction towards Multi specialty Hospital- A
case study of Ramesh Hospitals, Vijayawada‖ International Journal of Business,
Management and Allied Sciences, Volume 4,Issue 3, PP 4449-4455, July-Sept 2017.
2. Rahul Singh and Shiny Raizada, ― Customer Analysis of Mid-Range Sport Utility
Vehicle in India‖ Customer analysis of SUV, Nov 2020 Vol. 23 Issue 17.
3. Tejaswi vellampalli et al., ―Factors Influencing Post Purchase Behavior of
Passenger Car Customers of Hyundai International Journal of Business, Management
and Allied Sciences, Volume 4,Issue 3, PP 4372-4377, July-Sept 2017.
4. Ashok Reddy Thontla,” Barriers to Adopting E-commerce for SMEs in Developing
Cities: An Exploratory Study in Hyderabad International Journal of Economic
Research, Vol 14, Number 18, 2017.
5. G Arpita Srivastava1 and Mitu Matta2 (2014), ― Consumer Behavior Towards
Passengers Cars - A Study in Delhi NCR‖ Global Journal of Finance and
Management. ISSN 0975-6477 Volume 6, Number 6 (2014), pp. 589-598
6. G Arpita Srivastava1 and Mitu Matta2 (2014), ― Consumer Behavior Towards
Passengers Cars - A Study in Delhi NCR‖ Global Journal of Finance and
Management. ISSN 0975-6477 Volume 6, Number 6 (2014), pp. 589-598
7. Adithya, H. S. (2013), ―Customer Perception and Behaviour of car Owners – an
Empirical Study in Bangalore City‖, Global Research Analysis, Vol. 2, No. 1.
8. Saurabh (2012), ―Consumer Behaviour Towards Cars in Punjab: A Comparative
Study of Rural and Urban Consumers‖, Ph.D. dissertation submitted to Guru Nanak
Dev University, Amritsir.
9. www.carewale.com
10. www.timesofindia.com
11. www.india.car.net
12. www.carazoo.com
13. www.wikipedia.com
14. www.team-bhp.com/forum/india-car-scene
15. www.toostep.com/trends/indian-autombole

47
 APPENDIX

QUIESTIONNAIRE:-

Name Of The Customer:______________

Sex: Male/Female

Contact Number__________________

1. Age of respondent

20-25
26-30
31-35
36-40
41-45
46-50

2. What is age of responds for premium compact cars?

20-25
26-30
31-35
36-40
41-45
46-50

3. How do you finance the purchase of your car?

Spot Price

Loan

Exchange

48
4. Which of the following group’s are best describes your household’s total
monthly income before taxes for Compact & Premium car?

Monthly Income

Below 10,000
10,001 -15,000
15,001 – 20,000
20,001 – 30,000
30,001 – 40,000
40,001 – 50,000
50,001 - 75,000
75,001 – 1,00,000

5. Which of the following group’s are best describes your household’s total
monthly income before taxes for SUV & MUV car?

Monthly Income

Below 10,000
10,001 -15,000
15,001 – 20,000
20,001 – 30,000
30,001 – 40,000
40,001 – 50,000
50,001 - 75,000
75,001 – 1,00,000
1,00,001 Above

6. Which of the following best describes the new vehicle you intended to
purchase?

Decision
First time buyer
Replacement vehicle for my
household
Additional vehicle for my
household

49
7. Is the new vehicle you are intended to purchase for personal use or both
personal and commercial use?

Intend
Personal Use
Commercial Use
Personal & Commercial Use

8. What is Customer preference to change vehicle?

Customer Preference
1-2 Year
2-3 Year
3-5 Year
More Than 5 Year

9. Which Type Of Fuel Preferred?

Fuel
Petrol
Diesel
CNG
Electrical

10. Which Features needed by the customer in the car?

Product Attributes
Space
Size & Shape
Technology
Brand Image
Interior
Comfort
Power
Fuel Efficiency

50