Consumer Buying Behaviour at Hero Honda By Tarang Patil

8/7/2019 Consumer Buying Behaviour at Hero Honda By Tarang Patil

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1

ASTUDY

ONCONSUMER BUYING BEHAVIOUR AT TIME TO

PURCHASE HERO HONDA BIKE.

A Report submitted in partial fulfillment of the requirements for the award

of the degree of

BACHELO OF BUSINESS ADMINISTRATIONTO

SOUTH GUJARAT UNIVERSITY, SURAT

Submitted By:

TARANG P PATIL

T.Y.B.B.A. (SEM-VI) ROLL NO.-23

Under the guidance of

MR.HORMAZ.D.PATEL

Submitted To:

THE CO-ORDINATORTHE SURAT PEOPLE’S CO-OP. BANK COLLEGE OF

BUSINESS ADMINISTRATIONUDHNA (SUART)

March 2007



2

THE SURAT PEOPLE’S CO-OP. BANK COLLEGE OFBUSINESS ADMINISTRATION

CERTIFICATE OF THE FACULTY GUIDE

This is to certify that the project entitled “A STUDY ON CONSUMERBUYING BEHAVIOUR AT TIME TO PURCHASE HEROHONDA BIKE. Submitted in partial fulfillment for the award of the

degree of BACHELOR OF BUSINESS ADMINISTRATIONTO SOUTH GUJURAT UNIVERSITY, SURAT is a record of

bonafide research work carried out by TARANG P PATIL under my

supervision and guidance.

Signature Signature

Project Guide Co-Ordinator

(Prof .H.D.Patel) (MRS. DAISY S.T)



3

DECLARATION

I , TARANG P PATIL , here by declare that the project report entitled

―A STUDY ON CONSUMER BUYING BEHAVIOUR ATTIME TO PURCHASE HERO HONDA BIKE. under the

guidance of Prof H. D. PATEL submitted in partial fulfillment of

the requirement for the award of the degree of Bachelor of business administration to south Gujarat university ,Surat is my original Work - research study - carried out during 1

st

January, 2008 to 1st March ,2008 and not submitted for any otherdegree/ diploma/ fellowship or other similar titles or prizes to any other

institute or university by any other person.

Place: udhna signature

Date:

TARANG PATIL .P.

ROLL NO. 23



4

ACKNOWLEDGEMENT

This is the pleasure movement for me to explicate my energized

intelligence. Thanks to Co-Coordinator Prof S.Z. daisy and to my guide prof.H.D.Patel from the Surat people‘s co-op. bank college of business

administration udhna, Surat. For accommodating advice during the

research and help provided by them in preparation of this report. This report

is guided by their co-operation and practicable suggestion. This study work

could be finished with in the period.

I got chance to recognize my aratitute to all staff to B.B.A.

department for making available all facilities to complete the research

work. As well as to all others who extended the precious co-operation by

providing all documents and details required for this work.

Place: - Surat TARANG P PATIL

Date: - T.Y.B.B.A

Roll No.:-23



5

INDEX

NUMBER SUBJECTPAGE

NO.

1 INTRODUCTUION 7

INTRODUCTUION OF INDUSTRY 8-9

HISTORY OF COMPANY 10-14

2 THEORETICAL BACKGROUND 15-20

CONSUMER BUYING BEHAVIOUR

3 PROBLEM DEFINATION 21-23

PROBLEM DEFINATIONSCOPE OF STUDYOBJECTIVES OF STUDYLIMLTATIONS OF STUDY

4 RESEACH METHODOLOGY 24-31

INTRODUCTIONRESEARCH DESIGNSOURCES OF DATA

RESEARCH INSTRUMENTSAMPLING PLANDATA COLLECTION METHOD

5 DATA ANALYSIS AND INTERPRETATION 30-48

6 TESTING OF HYPOTHESIS 49-51

7 FINDINGS 52-53

8 SUGGESTIONS 54-55

9 SWOT ANALYSIS OF HERO HONDA 56-58

10 REFERENCE MATERIAL 59

BIBLIOGRAPHY 60-61

APPENDIX 62-66



6

LIST OF TABLE AND GRAPH

No. Name of Tables And Graphs Page

No1 Age wise Classification 33

2 Occupation wise Classification 34

3 Income wise Classification 35

4 Sources of finance 36

5 Analysis of Preferring Auto Mobile 37

6 Sources of Purchasing Bike 38

7 Age V/S usage of companies Bike 39

8 Decision maker for purchasing Bike 40

9 Feature Consideration when purchasing

Bike

42

10 Attributes of Showroom 44

11 Schemes that Attract most 46

12 Features of Purchasing Bike 48



7

CHAPTER : 1

INTRODUCTION

INTRODUCTION OF INDUSRY

HISTORY OF COMPANY



8

INTRODUCTION OF INDUSTERY

Throughout the centuries man has striven to expand his

capabilities through the use of machine. His ever inventive mind

has constantly devised ways to use tool to increase his abilities to

explore the world around him. To go faster, deeper, higher and

further than before. Coupled with his need to find new thrills, new

adventures and new modes of transportation, the invention

refinement of the motorcycle seems an inevitable out come.

It would seem that Michelangelo conceived of the bicycle as

early 14th century. And his drawing shows a remarkableresemblance to he modern day bike. It had wheels of similar size

and even pedals and chain. Albeit without any apparent means of

steering.

Through never built, it was a remarkably clever design, and

early bicycle makers would have done well to study his concepts,

there have, in fact been 4 machines built based on his drawing,

attesting to the viability of his design.

It wasn‘t until 1869 that the first serious attempts were made

to produce motor driven bicycles. These very first were powered

by steam, and driven by leather belts or as in the case of the roper

steam velocipede of 1869 by a system of levers attached to a crank

on the driven wheel.

In 1885 the Daimler, Europe this is consider by many as the

first true motorcycle or motor bicycle, as it was the first to employ

an internal combustion engine and was designed from the ground

up to be motor powered. Designed by gottlibe Daimler it was

powered by an Otto cycle engine producing about ½ horse powers.

Note this design again employed wooden wheels and Daimler



9

dropped the twist grip controls from his 1877 design in favor of

leavers on the frame.

In 1894 Hildebrand and Wolfmuller, France Worlds firstproduction motorcycle. It came with a 1428 cc water cooled four-

stroke motor producing 2.5 bhp. And speed of 25 mph.

In 1898 orient-Aster, USA the American made production

motorcycle was this entry built by the Metz Company, in Waltham,

mass, it used an aster engine that was a French copy of the Metz

Company, in Waltham, mass.



10

History OF COMPANY

Type : Public company

Founded : January 19, 1984

Headquarters : Haryana, Indian

Key People : Brijmohan lall munjal

(Chairman and managing Director)

Industry : Automotive

Produce : Motorcycle, Scooters



11

Hero Honda Motorcycles limited is an Indian manufacturer

of motorcycles and scooters. Hero Honda is a joint Venture that

began in 1984 between the Hero Group of India and Honda From

Japan. It has been the world‘s biggest manufacturer of 2-wheeled

motorized vehicles since 2001. When it produced 1.3 million

motorbikes in a single year. Hero Hondas splendor is the largest

selling motorcycle its 2 plants are in Dharuhera and Gurgaon, both

in Haryana India. It specializes in dual use motorcycles that are

low powered but very fuel efficient.



12

India has the largest number of two wheelers in the world with

41.6 million vehicles. India has a mix of 30 percent automobiles

and 70 percent two wheeler in the country. India was the second

largest two wheeler manufacturer in the world starting in the1950s

with the birth of Automobile products of India (API) thatmanufactured scooters. API manufactured the lambrettas but,

another company, Baja Auto Ltd. Surpassed API and remained

through the turn of the century from its association with piaggio of

Italy (manufactured of vespa)

The license raj that existed between the 1940s and 1980s in

India. Did not allow foreign companies to enter the market and

imports were tightly controlled. Customers in India were forced towait 12 years to buy a scooter from Bajaj. The CEO of Bajaj

commented that he did not need a marketing department, only a

dispatch department. By the year 1990, Bajaj had a waiting list that

was twenty-six times its annual output for scooters.

In the mid-1980s, the Indian government regulation changed

and permitted foreign companies to enter the Indian market

through minority joint ventures. The two wheeler market changed

with four indo-Japanese joint ventures: Hero Honda, TVS Suzuki,

Bajaj Kawasaki and Kinetic Honda. The entry of these foreign

companies changed the Indian market dynamics from the supply

demand side. With a larger selection of two-wheelers on the Indian

market, consumer started to gain influence over the products they

bought and raised higher customer expectations. The industry

produced more models, styling options, price, and different fuel

efficiencies. The foreign companies new technologies helped makethe products more reliable and with better quality. Indian

companies had to change to keep up with their global.

During the 80s, Hero Honda became the first company in India to

prove that it was possible to drive a vehicle without polluting the



13

roads. The company introduced new generation motorcycles that

set industry benchmarks for fuel thrift and low emission. A

legendary 'Fill it - Shut it - Forget it' campaign captured the

imagination of commuters across India, and Hero Honda sold

millions of bikes purely on the commitment of increased mileage.Hero Honda has consistently grown at double digits since

inception; and today, every second motorcycle sold in the country

is a Hero Honda. Every 30 seconds, someone in India buys Hero

Honda's top -selling motorcycle - Splendor. This festive season,

the company sold half a million two wheelers in a single month-a

feat unparalleled in global automotive history.

Hero Honda values its relationship with customers. Its uniqueCRM initiative - Hero Honda Passport Program, one of the largest

programs of this kind in the world, has over 3 million members on

its roster. The program has not only helped Hero Honda

understand its customers and deliver value at different price points,

but has also created a loyal community of brand ambassadors.

Performance vis-à-vis Industry

The Indian two wheeler industries has seen a paradigm shift from

being a regime of regulation and tight control in the 1980s to a

more liberalized and a competitive present day era. After missing

out on the initial boom in two wheeler segment during the period

of 1993-1996, Hero Honda has emerged as a world leader. The gap

between motorcycles sold by Hero Honda and its closest rival is

approximately 1 m units (23% of industry size). One of the reasons

for the tremendous performance of Hero Honda is the significantincrease of share of motorcycles in the two-wheeler segment, from

42% in FY99 to 77% in FY04. No doubt, that the shift in

preference of Indian populace from scooters and mopeds towards

motorcycles has facilitated the growth of Hero Honda. However its

performance vis-à-vis industry indicates that the performance of



14

Hero Honda was better than the industry peers, barring two years.

In the seven-year period ending FY04, it has achieved a CAGR of

30% in two-wheeler volumes against 11% of the industry.

Excellent Collaborator Relationship:

Hero Honda is now the leading two-wheeler Company in India in

terms of net sales (sales less excise duty value, which was Rs 3171

crores). It is both the leading two wheeler manufacturer andsales operation among Honda's worldwide operations. The

Company has maintained excellent relationship with all

stakeholders including its collaborators. Hero Honda has emerged

as the most successful joint venture Company of Honda in the

world, their relationship over 116 years old now.



15

CHAPTER:2

THEORITICAL BACKGROUND

CONSUMER BUYING BEHAVIOUR



16

CONSUMER BUYING BEHVIOUR

The main aim of marketing is meet and satisfy target

customers need and wants buyer behavior refers to the peoples or

organization conduct activities and together with the impact of

various influence on them towards making decision on purchase of

product and service in a market. The field of consumer behavior

studies how individuals, groups and organization select, buy, use

and dispse of goods, service, ideas, or experience to satisfy their

needs and desires understanding consumer behavior and knowingcustomer are never simple. The wealth of products and service

produced in a country make our economy strong. The behavior of

human being during the purchase is being termed as ―Buyer Behavior‖. Customer says one thing but do another. They may not

be in touch with their deeper motivations. They are responding to

influences that change their mind at the last minute. A buyer makes

take a decision whether save or spend the money.

Definition of Buyer Behavior:-

Buyer behavior is ―all psychological, Social and physicalbehaviors of potential customers as they become aware of evaluate,

purchase, consume and tell others about product & service.



17

Consumer Buying Decision Process

There are following five stages in consumer buying decisionprocess.

1. Problem identification:-The buying process starts when the buyer recognizes a problem or

need. The need can be triggered by internal or external stimuli.

Marketers need to identify the circumstances that trigger a

particular need. By gathering information from a number of

consumers, Marketers can identify the most frequent stimuli that

spark an interest in a product category. They can then develop

marketing strategies that trigger consumer interest.

2. Information Search:-The consumer tries to collect information regarding various

products/service. Through gathering information, the consumer

learns about completing brands and their features. Information maybe collected form magazines, catalogues, retailers, friends, family

members, business association, commercial, chamber of

commerce, telephone directory, tradefair etc. Marketers should

find out the source of information and their relative degree of

importance to the consumes.

Personal Sources: Family, friends, neighbor, as

quittances.

Commercial Source: Advertising, sales persons, dealers,packaging, displays.

Public sources: mass media, consumer, rating organizations.

Experimental sources: Handling. Examine, using the product.



18

3. Evaluation of alternative:-

There is no single process used by all consumers by one consumer

in all buying situations. There is several First, the consumerprocesses, some basic concepts are:

First, the consumer is trying to satisfy need.

Second, the consumer is looking for certain benefits from the

product solutions.

The marketer must know which criteria the consumer will

use in the purchase decision.

4 . Choice of purchasing decision:-

From among the purchase of alternatives the consumer makes the

solution. It may be to buy or not to buy. If the decision is to buy.

The other additional decisions are:

Which types of bike he must buy?

From whom to buy a bike?

How the payment to be made? And so on.

The marketer up to this stage has tried every means

to influence the purchase behavior, but the choice is properly

consumers. In the evaluation stage the consumer forms preferences

among the brands in the choice set. The consumer may also form

an intention to but the most preferred brand.



19

5. Post Purchase Behavior:-

After purchase the product, the consumer will experience the same

level of product. The Marketer‘s job not end when the product isbuying must monitor post-purchase satisfaction, post-purchase

action, post-purchase use and disposal

Post Purchase Satisfaction:-

The buyer, S satisfaction is a function Of closeness between the

buyer, S expectation and the products Perceiver performance.The larger the gap between expectation and performance, the

g greater the consumer dissatisfaction.

Post purchase Action:-

The Consumer, S satisfaction or dissatisfaction with the product

influence subsequent behavior. If the consumer satisfied, he or she

will exhibit a higher probability of purchasing the product again.Dissatisfaction consumer may abandon and return the product.

Post-Purchase Use or Disposal:-

The marketer should also monitor new buyers use and

dispose of the product. If the consumer store the product in a close,

the product is probably not very satisfying. If the consumer throws

the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment.



20

Characteristic of Buyer Behaviors

The chief characteristics of the buyers behaviors are as

follow:-

(1) It consists of mental and physical activities which consumers

undertake to get goods and services and obtain satisfaction from

them.

(2) It includes both observable activities such as walking through

the market to examine merchandise and making a purchase and

mental activities-such as forming attitudes, perceiving advertising

material, and learning to prefer particular brands.

(3) Consumer behaviors are very complex and dynamic toconstantly changing. And therefore, management need to adjust

with the change otherwise market may be lot.

(4) The individuals specific behaviors in the market place is

affected by internal factor, such as need , motives, perception, and

attitudes, as well as by external of enviourmenatal influences such

as the family social groups, culture, economics and business

influences.



21

CHAPTER:3

PROBLEM DEFINATION

PROBLEM DEFINATION

OBJECTIVE OF STUDY

LIMITATIONS OF STUDY



22

PROBLEM DEFINATION

To know the best consumer buying behavior and demand intothe minds of consumer of Surat city because always consumer say

something and does something. There are many companies

manufacturing motorcycles into the market, at the same time as

there are many companies manufacturing motorcycles, idea about

thinking of customer on whether, what, how, and for whom to

purchase the motorcycle.

Therefore, research is required to measure present consumer

buying behavior at the purchase of Hero Honda bike. so theresearcher problem is to identify what are the criteria that

prospective customer takes into consideration before buying the

motorcycles.

SCOPE OF STUDY

The main scope of the study is limited to Surat city.

It also analysis the benefits accruing to the company as a

result of those service.

This study has been made to find the level of satisfaction the

customer has regarding the service provider by bike place.



23

OBJECTIVES OF STUDY

To know market position of Hero Honda bike in the

market.

To know consumer behavior for purchase of two wheeler

bike.

Limitations of study

When the buyers are busy we can‘t get accurate data from

them.

According to the time limit of our project we can cover

only the some area.

During survey some respondents may not give answer in a

proper manner.



24

CHAPTER:-4

RESEARCH METHDOLOGY

INTRODUCTIONRSEARCH DESIGN

SOURCES OF DATASAMPLING PLAN

DATA COLLECTION METHOD



25

RESERCH METHODOLOGY

(A)IntroductionMarketing research is the function which links the

consumer, customer and public to the marketers through

information used to identify and define marketing, opportunities

and problems, generates refine marketing action; monitor

marketing performance; and improve understanding of marketing

as a process.

Marketing research specifies the information required

to address these issues; designs the method for collectioninformation manages and implements the data collection process;

analysis the results and communication the findings and their

implication.

Research definition:―Research is careful inquiry or examination to discover

new information and relationship and to expand and to verifyexiting knowledge,‖

Research always starts with questions or a problem. Its

purpose is to find answer to questions through the application of

the scientific method. It is a systematic and intensive study

directed towards a more complete knowledge of the subject

studies.





27

The present study seeks to find out the consumers attitude

towards buying of bike. The study also aims at findings out the

drawbacks of the marketing set up of Hero Honda PVT. LTD. So

this makes the study a descriptive one.

(D) Sources of Data

The sources of data collection methods are as follows.

a) Primary data:-

The primary data is that which details we collect first time

from the market and also used first time in the research. We also

say that the information is first time in the research decision. To

collect the primary data questionnaire is prepared structure non-

disguise questionnaire is prepared.

b) Secondary data:-

Secondary data are those data which are already collected by

someone for some purpose and are available for the present study;

secondary data are already collected by the company‘s records andother library‘s books. When the secondary data are sufficient, theresearcher has to be satisfied with the primary sources of data.

Secondary data can be used as bases for comparison with primary

data have been collected by questionnaire.



28

(E) Data Collection Method

Researcher instruments is the tool by which the researcher

can do research on specific problems or objective. The most

popular researcher instrument for collection data is

―Questionnaire‖ for a particular investigation. It is simple for a

moiled set of questions presented to respondents for their answers.

Due to this flexibility, it is most common instrument used to

collect the primary data. During the pre- testing of questionnaire, I

seen the reaction of respondents and suggestions required to make

change in research instrument.

The questionnaire contains three types of questions.

Open-ended question:-

It is helpful in knowing what is uppermost in the mind of the

respondents. It gives complete freedom to the respondent.

Dichotomous questions :-

It has only two answers in form ‗yes‘ or ‗n‘, ‗true‘ or ‗false‘,‗use‘ or ‗do not use‘. So the respondent is offered two or morechoice.

Multiple-choice question:-

In this, the respondent is offered two or more choice.



29

(F) Sampling plan

Sampling is a process of obtaining. The information aboutthe entire population by examine a part of it .The effectiveness of

the research depends on the sample size selected for the survey

purpose.

(A) sample Site:-

The survey was conducted in SURAT CITY.

(B)Sampling Unit:-

It means ―Who is to be surveyed‖. Here target populationis decided and it is who are interested to purchase ―Bike‖ andsampling frame is developed so that every one in the target

population has known chance of being sampled. So the survey is

conducted particularly in Surat City.

(C)Sample size:-

For the purpose of proper survey, there is need of perfect

research instruments to find out sample size for more accurate

result about buying behavior of bike. The sample size is 100

respondents.



30

Statically Formula for Sample Size is:-

n=p*q (z/e) 2

Were,

n=Sample Size

p=0.80(probability of satisfied customer)

q=0.20(I-p)

z=1.96(The z (95%) score associated with the degree of Confidence)

e=0.05 (tolerable error)

n= (0.84)*(016)*(1.96/0.05)2

= (0.1344)*(1536.64)

=206.52

Sample Size n=206.52

Here, from calculation n=206.52 is found but for the simplicity of

the study n=206.52have taken.



31

(D)Sampling Method:-

A Stratified random sample is one where the population is

divided in to mutually exhaustive strata or sub-group and then a

simple random is selected within each of strata on age groups,

occupation etc. It may be noted that stratification does not means

absence of randomness. I use a simple random sampling method.



32



33

1. AGE WISE CLASSIFICTION

Age (in year) No. of respondents Percentage (%)

18-20 30 30

21-25 37 37

26-30 15 15

31-35 06 06

36-40 07 07

41& above 05 05

Total 100 100

Age wise Classification

30, 30%

37, 37%

15, 15%

6, 6%

7, 7% 5, 5%

18-20

21-25

26-30

31-35

36-40

41& above

(Sources: Questionnaire-personal Detail)

Comment:-

Above Graph shows are 30% of respondent in age groupof 18-20, 37%of respondent in age group of 21-25, 15% of

respondent in age group of 26-30, 7% and 5% respondent are come

in 36-40 and 41&above.



34

2. OCCUPATION WISE CLASSIFICATION

Occupation Wise Classification

0

20

40

60

80

100

Servicemen

Stud

ent

Business

Profession

Others

Occupation

No. of Respondents

No. of respondents

Percentage (%)

(Sources: Questionnaire-personal detail)

Comment:-

Above Chart Shows that 47 respondent are Servicemen out

of 100 and 30 are the students. 12 respondents are businessman.

Occupation No. of respondents Percentage (%)

Servicemen 47 47

Student 30 30

Business 12 12

Profession 08 08

Others 03 03

Total 100 100



35

3. INCOME WISE CLASSIFICATION

Income Wise Classification

54, 54%

25, 25%

11, 11%

7, 7% 3, 3%

5000

5000-10,000

10,000-15,00015,000-20,000

20,000 Above

(Sources: - Questionnaire – Personal Detail)

Comment:-

Above graph shows that 54% of respondents are income

in <=5000 income level, Second 25% of respondents are of 5000-

10,000 income level. 11% of respondents are of 10,000-15,000,

7% of respondents are of 15,000-20,000 and remain 3% of

respondents above 20,000 of income level.

Income Level No. of respondents Percentage (%)

<= 5000 54 54

5000-10,000 25 25

10,000-15,000 11 11

15,000-20,000 07 07

20,000 Above 03 03

Total 100 100



36

4. SOURCES OF FINANCE

Sources of Finance No. of respondents Percentage (%)By cash 45 45

By Loan 55 55

Total 100 100

45 45

55 55

0

10

20

30

40

50

60

By cash By Loan

No. ofrespondents

Percentage (%)

(Sources: - Questionnaire Que.8)

Comment:-

Above Graph shows that 55 people purchase Hero

Honda Bike For by Loan and 45 people purchase Hero Honda Bikefrom Cash.



37

5. ANALYSIS OF PREFERING AUTO MOBILE

No. of respondents

Shivani

20%

Dhru

17%

Siddhi

11%

Other52%

(Sources: - Questionnaire – Que.7)

Comment:-

Above Chart shows that out of 100, 52 % respondents

prefer other Automobile to purchase bike. 20 % respondents prefer

shivani Automobile to purchase bike.

Auto Mobiles No. of respondents Percentage (%)

Shivani 20 20

Dhru 17 17

Siddhi 11 11

Other 52 52

Total 100 100



38

6. FROM WHICH SOURCE YOU PURCHSE BIKE?

No. of respondents

News Paper, 12

Friends, 26

Others, 48

T.V.Advertiseme

nt, 14

(Sources: - Questionnaire – Que.3)

Comment:-

Above graph shows that 48 % respondents are come to

know from the ‗other‘. Then 26 % respondents are come to know

from the ‗friends‘. 14 % & 12 % respondents are come to know

from the T.V.Advertisement & news paper.

Sources No. of respondents Percentage (%)News Paper 12 12

T.V.Advertisement 14 14

Friends 26 26

Others 48 48

Total 100 100



39

7 AGE V/S USAGE OF COMPANIES MOTORCYCLE

Age (in

year)

Hero

Honda

Bajaj TVS Yamaha Honda Total

18-20 15 05 03 02 05 30

21-25 23 06 03 03 02 37

26-30 09 02 01 03 00 15

31-35 02 00 01 01 02 06

36-40 01 2 02 01 01 07

41&

above

01 01 00 02 01 05

Total 51 16 10 12 11 100

Age V/S Of Companies Motorcycles

0

5

10

15

20

25

Hero Honda Bajaj TVS Yamaha Honda

No. Of Respond

ents

18-20

21-25

26-30

31-35

36-40

41& above

(Sources: - Questionnaire – personal detail)

Comment: -

Above Charts shows that 51 respondents are use Hero

Honda Company‘s Motorcycle. And 16 respondents are usingBajaj bikes.



40

4. Who is decision maker for purchasing bike in

your family?

Sources No. of respondents Percentage (%)Father 46 46

Self 42 42

Mother 10 10

Others 02 02

Total 100 100

FatherSelf

MotherOthers

No. of respondents

Percentage (%)

46

42

10

2

46

42

10

20

10

20

30

40

50

Decision maker for purchasing bike

No. of respondents

Percentage (%)

(Sources: - Questionnaire – personal detail & Que-4)

Comment:-

Above Graph shows that 46 % respondents take decision

by father for purchasing bike. And 42 % respondents are take

decision by self for purchasing bike.



41

5. WHAT FEATURES YOU CONSIDERS WHEN YOU

PURCHASE BIKE PLEASE GIVES THE RANK.

Weightage 6 5 4 3 2 1

Attributes Excellent Very

Good

Good Averag

e

Poor Very

Poor

Total Total

score

Price 30 20 18 16 10 06 100 426

Less

maintenance

18 11 17 30 13 11 100 358

Style 21 18 19 10 11 21 100 355

Durability 10 17 16 24 21 12 100 335

Mileage 24 19 14 17 09 17 100 381

Easy

Driving

20 12 21 23 10 14 100 367

Brand

Reputation

17 19 14 21 17 12 100 362

Color 28 19 18 13 10 12 100 406

Pick up 19 22 15 20 14 10 100 382

Total 187 157 152 174 115 115 900 3370



42

Attributes Weightage

Price 426

Less maintenance 358

Style 355Durability 335

Mileage 381

Easy Driving 367

Brand Reputation 362

Color 406

Pick up 382

Total 3370

Feature of purchasing Bike

12%

11%

11%

10%

11%

11%

11%

12%

11% Price

Less maintenance

StyleDurability

Mileage

Easy Driving

Brand Reputation

Color

Pick up


Comment:-

Above chart show that more no of respondents are give

more weightage to the price.



43

6. RATE THE FOLLOWING ATTRIBUTES OF

SHOW ROOM


Good

Good Average Poor Total

Available 30 24 18 16 12 100

After Service 16 35 24 15 10 100

Knowledge

Of Sales man

20 21 23 20 16 100

Service 25 18 27 19 11 100

Infrastructure 12 29 20 17 22 100

Total 103 127 112 87 71 500



44

Attribute of show room

30

16 20 2512

24

3521

18

29

18 24

2327

20

16 15

2019

17

12 1016 11

22

0

10

20

30

40

50

60

70

80

90

100

Available After Service Knowledge Of

Sales man

Service Infrastructure

no of respondents Poor

Average

Good

Very Good

Excellent


Comment:-

Above chart shows that 30 respondents out of 100 are

available who give Weight age on the excellent and second 35

respondents out of 100 are after service who gives Weight age onthe Very Good, 23 respondents are Knowledge of salesman who

give Weight age on the good, 27 respondents are service who give

Weight age on the good, 29 respondents are Infrastructure who

gives Weight age on the Very Good.



45

9. RATE THE FOLLOWING SCHEMES THAT

ATTRACT YOU MOST.


Good


Festival

Offer

43 21 12 14 10 100

Exchange

Offer

15 31 29 12 13 100

Special Gift 20 19 30 20 11 100

Cash

Discount

11 21 19 34 15 100

Anniversary

Offer

14 13 12 20 41 100

Total 103 105 102 100 90 500



46

0 20 40 60 80 100

Festival Offer

Exchange Offer

Special Gift

Cash Discount

Anniversary Offer

Poor

Average

Good

Very Good

Excellent


Comment:-

Above graph shows that in festival offer 43 respondents

out of 100 are give a excellent, then in exchange offer 31

respondents out of 100 are give a very good rank, in special gift 30

respondents are give a good rank, in cash discount 34 respondents

are give a average rank



47

10. RATE THE FOLLOWING FEATURE YOU HAVE

PURCHASE HERO HONDA BIKE


Good


Mileage 31 26 15 18 10 100

Available 14 25 32 16 13 100

Price 16 22 42 11 09 100

After

Service

20 31 25 14 10 100

Pick up 21 36 17 15 11 100

Style 18 25 15 26 16 100

Color 20 24 26 10 20 100

Average 27 24 20 15 14 100Total 167 213 192 125 103 800



48

31

14

16

20

21

18

20

27

26

25

22

31

36

25

24

24

15

32

42

25

17

15

26

20

18

16

11

26

10

13

9

10

11

16

20

1415

10

15

14

0 20 40 60 80 100

Mileage

Available

Price

After Service

Pick up

Style

Color

Average

Excellent

Very Good

Good

Average

Poor


Comment:-

Above graph show that respondents give more weightage

to the price then after they give more weightage to the mileage

before purchasing motorcycle.



49

CHAPTER: 6

TESTING OF HYPOTHESIS



50

TESTING OF HYPOTHESIS

A hypothesis is a proposition, which the researcher wants to

verify. It is tall test and my null hypotheses are,

H0: P = 0.40

H1: P ≠ 0.40

With reference to favorable market of Hero Honda Bike.

Now to verify this hypothesis I have taken significantlevel of

1 %. It means in the long run risk of making the wrong decision is

I out of every 100.

Since the sample size is more than 30 the use of Z test is

most applicable.

Now,

P = Probability of Hero Honda is given best by consumer.

Q = Probability of other company bike is given best by consumer.

X = Hero Honda bike is purchased by consumer.N = Total no. of Respondents.

P = x/n

=51/100

=0.51

q =1-p i.e. 0.49

Z calculation = p – q_______

_______

√ PQ

_______

100



51

= 0.51- 0.40

__________

__________

√ 0.49*0.4

________100

= 0.11

________

________

√ 0.00196

= 0.11

_______

0.04427

= 2.48

= 2.48 < 2.56

So, How may accepted at 1 % level of significance. It may be

concluded that 40 % of consumer go for other company bike and

60 % go for Hero Honda bike.



52

CHAPTER: 7

FINDINGS



53

Findings

The study shows that 51 respondents are using Hero Honda.

The current trend is that respondents give maximum no of point

to price and mileage.

The study show that 48 respondents are come to know from

―others‖ and 26 respondents are come to know from ―friends‖about Hero Honda bike.

The study shows that 55 respondents are purchase Hero Hondabike by Loan and 45 respondents are purchase Hero Honda bike

by cash.

The study shows that 31 respondents are give point to mileage.

The study shows that more no. of respondents gives more

weightage to price. The more no. of serviceman, Students,

Businessmen, and others give more weightage to the price when

Professionals give more weightage to the mileage.

The study shows that 46 respondents are father take a decision

to purchase bike And 42 respondents are self take a decision topurchase bike.

The study shows that 30 respondents are give rank to available

in show rooms and 35 respondents are give rank to after service.

The study shows that 43 respondents are giving excellent to

festival offer and 41 respondents are give poor rank to the

anniversary offer.

The study shows that 45 respondents are purchase Hero Honda

bike whose salary is below 5000 income.



54



55

SUGGESTIONS

1. Hero Honda should introduce a low price moped

2. For the promotion, company show make road-show that will

3. Increase the sales. The company should give more

concentrate on the advertisement.

4. Hero Honda Company should implement a new strategy to

reduce the competition and lead into the bike market.

5. As people expect more mileage per kilometer, company

should increase the mileage of the hero Honda bike.

6. Hero Honda should make a sports bike like to Kawasaki

Suzuki Hyabusa bikes which can run with maximum speeds.



56

SWOT

Analysis

OF HERO HONDA



57

SSW W OOT T AAnnaal l y y ssiiss

Strengths

Ability to understand customer‘s needs and wants

Recognized and established brand name

Effective advertising capability

Weaknesses

R&D is not close to the Hero manufacturing plant

Hero is vulnerable in the joint venture because

Honda Motor Company has so much power



58

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59

CHAPTRE: 8

REFERENCE MATERIAL

BIBLOGRAPHY

APPENDICES



60



61

BIBLIOGRAPHY

Marketing research, G.C.Beri, Third Edition, Tata McGraw

Hill Publishing Company Limited, New Delhi, 2000

Marketing management, Philip Kotler, Twelth (Millennium)edition, Prentice-Hall of India Private Limited, New Delhi, 2003

www.herohonda.com



62



63

APPENDICES

QUESTIONNAIRE

A STUDY ON CONSUMER BUYING BEHAVIOUR AT

TIME TO PURCHASE HERO HONDA BIKE.

1 Do you have own bike?

(a) Yes [ ]. (b) No [ ]

If yes than,

2 Which company bike do you have at present?

Company ____________________

3 Whom do you refer to purchasing bike?

(A) News paper [ ] (C) TV advertisement [ ]

(B) Friends [ ] (D) others [ ]

4 Who is decision maker for purchasing bike in your family?

(A) Father [ ] (B) Mother [ ]

(B) Self [ ] (D) other [ ]



64

5 How you purchase bike?

(A) By cash [ ] (B) By Loan [ ]

6 What features you considers when you purchase bike

please give the rank.

attributes excellent Very

good

good Average Poor Very

poor

price

Less maintenanceStyle

Durability

Mileage

Easy driving

Brand reputation

Color

7 Rate the following attribute of show room

Attributes 1 2 3 4 5

Available

After sales

Services

infrastructure

8 From where are you purchasing___________?



65

(A) Shivani Auto [ ] (C) Shiddi Auto [ ]

(B) Dhruv Auto [ ] (D) others [ ]

9 Rate the following schemes that attract you most.

attributes 1 2 3 4 5

Special

offer

Exchange

offer

Specialgift

Cash

discount

10 Rate the following feature you have purchase hero Honda

Bike.

Attribute 1 2 3 4 5Mileage

Available

Price

After service

Pick up

11 give your suggestion.

___________________________________________________

___________________________________________________

___________________________________________________



66

CUSTOMER PERSONAL INFORMATION:-

A. Name: - ___________________________________________

B. Address:-______________________________________________________________________________________

___________________________________________

C. phone no:-__________________________________________

D. Age (in year):-

18 to 20 [ ] 21 to 25 [ ]

26 to 30 [ ] 31 to 35 [ ]

36 to 40 [ ] 41 & above [ ]

E. Occupation:-

Services [ ] Businessman [ ]

Students [ ] Professional [ ]Others [ ]

F. monthly income:-

5000 [ ] 5000-10,000 [ ]

10,000-15,000 [ ] 15,000-20,000 [ ]

20,000 Above [ ]

Sing.___________________

Date.___________________



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Consumer Buying Behaviour at Hero Honda By Tarang Patil

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