A

PROJECT REPORT

ON

“Consumer Buying Behaviour Pattern for Hyundai Cars”

Submitted to

Welingkar Institute of Management Development & Research

In partial fulfillment of award of PGDBA

Submitted by:

Nikhil Bharat Avalani

DPGD/JL09/0259

Marketing

Welingkar Institute of Management Development & Research,

May – 2011

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Acknowledgement

Many people have helped me on this project and each of their contribution is valuable.

I would like to take this opportunity to acknowledge and thank Hyundai Car Service Station in

Mumbai for providing me with this highly coveted opportunity to associate my Project with

their esteemed organization. My debts for assistance in making this report are more than can be

identified here. This whole effort is the result of guidance, assistance and inspiration of several

people who helped me through my study and preparation of this report.

I would like to express my heartiest gratitude for the invaluable help of the employees of

Hyundai Motors. Their knowledge, nature, judgment, support along with their experience was an

immense source of inspiration in completing this project and preparing this report.

I further feel indebted to Sales Manager of Hyundai Motors, Mumbai for his assistance,

encouragement, inspiration and various suggestions from the conception to completion of the

project. He has helped me to prepare a factual, realistic and pragmatic report in limited period

than would have been possible.

Last but not the least I thank to all my friends who have directly or indirectly helped me in

completion of my summer project report.

Nikhil Bharat Avalani

DPGD/JL09/0259

Marketing

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Executive Summary

Title - Consumer Buying Behaviour Pattern for Hyundai Cars

Industry – Automobile Industry

Company – Hyundai Motors India Ltd

Products Offered – Cars

Objectives

The main objective of the study is to identify the consumer buying pattern with Hyundai

Cars.

To analyse the number and percentage of respondents owning Hyundai Car on the basis of

income, occupational level.

To analysis the percentage of respondents owning Hyundai on the basis of the causes and

sources of awareness.

To analysis the preference of Hyundai on the basis of price.

To analysis the result of consumer satisfaction on the basis of future purchase and

comparison of Hyundai with other brands.

Research Methodology

Research Type – Descriptive Research

Method of Data Collection

The data collected during the project was secondary as well as primary data.

Primary Data Sources: Primary data is collected directly by meeting the consumers who own

Hyundai Cars

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Secondary Data Sources: Internet, Company profile, brochures.

Sampling Plan

Sampling Technique – Non Probability Purposive & Convenience Sampling

Sample Universe – All the Hyundai car owners in Mumbai

Sample Frame – Mumbai Region I (Central Line, few areas of Harbor line and some areas of

Western Line)

Sample Unit – All respondents

Sample Size – 100

Key Findings

In the analysis of consumer Buyer behavior pattern with Hyundai cars, 100 consumers

were interviewed who are Hyundai car owners.

When the cause was analyzed behind the purchase of Hyundai car it was found that the

Hyundai car is purchased because of Manufacturer’s reputation and availability of

services.

Customers feel that the Hyundai car is reasonably priced.

30 % of the people gave much preference to the pickup and 20% to engine capacity and

also some importance were given towards looks, mileage etc. Most of the Hyundai car

customers are satisfied about the performance of pickup, mileage, interior, Road

handling, comfort, visibility, service.

On the basis of comparison Hyundai car with its competitors like Honda, ford, Hindustan

Motors, Maruti etc. with respect to the market where the survey was conducted as per the

information we have got we can say that 45% of them are satisfied with the performance

they had expected from the Hyundai Car.

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Conclusion

From the findings and analysis it is clear that Hyundai Car is highly preferred when compared to

the other brands of car in the same segment. With the analysis through the survey conducted for

a period of 2 months in Mumbai on the consumer buyer behaviour of Hyundai Car, the findings

and analysis shows that 80% of the consumers are happy with the product performance and also

sales service and rest 20% of them says that they are dissatisfied. Since each customer is like an

asset for an organization the company should try to improve in the area of dissatisfaction. Finally

we conclude that the Hyundai is MORE POWER, MORE FUN car which is a complete family

car and is accepted by most of them and it gives consumer satisfaction as per study undertaken.

Key Recommendations

Improve the model

Establish more service centers and provide the best service.

Come with a ‘clean proposal’. Never hide the facts, be honest in selling your vehicles, in

describing the PLUS / MINUS facts, “customers friendly” attitude is a must for any Business

Deal.

Spare parts should be made available at lower rate.

Please provide High-way horn and reverse horn.

Dealers should be courteous in all the time as they are at the time of selling the car. This

show, the dealers are not focusing on customer care.

Change the look and increase the Mileage consumption.

Improve service and train the service personnel. After sales service is a very important factor

in case of automobile sector which may induce buying or stop people from buying the

particular brand of vehicle.

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Key Limitations

No project is ideal. In reality different problems were encountered which acted as limitations of

the project such as-

Some of the respondents were not ready to reveal relevant information which was

required for the project. Because the information collected from the customers by

meeting them at their working places, company service centers, during the business

hours, or at the parking lot where they may or will be busy with some other work, the

information extracted would not be sufficient from the respondents.

There was time constraint (2 months) for completing the entire project and meeting all

the objectives. Due to which only 100 no. of respondents could be surveyed, who

represents the population

The study is limited to Mumbai city only.

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Index

CONTENTSPAGE NO

Introduction 8

Automobile Industry 12

Company Profile 20

Research Methodology 29

Data Analysis & Interpretation 36

Observations & Findings 54

Conclusion 57

Recommendations 59

Bibliography 61

Annexure 63

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8

CHAPTER 1

INTRODUCTION

CHAPTER 1

INTRODUCTION

It is true fact that if you are satisfied you recommended to others. Word of mouth and customer

satisfaction play a very important role in determining market perception about an automobile. It

is the market perception that determines the success of a company and so it is very important for

the car manufacturers to measure the “willingness of existing users of a product to recommend it

to others”. The same is a lot of interest to customers as well for it helps them make the purchase

decision.

A car is one of the most significant purchases that an Indian household makes and this project

addresses the most important question that perplexes car manufacturers:

“What makes the perfect car that influence will willfully purchase?”

The project highlights the factors that influence the buying decision of a consumer.

The factor under consideration would be:

Price

Income of the consumer

Features in the car

Safety standard

Warranty scheme

Finance facility

Is an Indian consumer ready for more? Which is the driving motive behind the effective demand

of the car? How the coming of new models like i20 does is going to effect the buying decision of

consumer and especially the Tata 1 lakh car.

In other words, from the spread of choices offered by various manufacturers under various

segments, of which one the customer will finally turn the ignition on and drive.

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Customer satisfaction index: some of the most advance thinking in the business world recognizes

that customer relationships are best treated as assets, and that methodical analysis of these

relationships can provide a road map for improving them.

Consumer Behaviour is the study of how individuals, groups and organizations select, buy, use

and dispose of goods, services, ideas or experiences to satisfy their needs and wants.

Need to Study Consumer Behaviour

Studying consumers provides clues for

1. Improving/introducing products & services

2. Setting prices

3. Devising channels

4. Crafting messages

5. Developing other marketing activities

6. Look for emerging trends and new opportunities

Factors influencing Consumer Behaviour

Cultural – broadest and deepest influence

Social

Personal

Psychological

The buying process involves the following steps:

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Problem Recognition

Information search

Evaluation

Post Purchase Dissonance

Buy

Decision

Satisfaction = Brand Acceptance

Dissatisfaction = Brand Rejection

The

Automobile industry in India is one of the largest in the world and one of the fastest growing

globally. India manufactures over 17.5 million vehicles (including 2 wheeled and 4 wheeled) and

exports about 2.33 million every year. It is the world's second largest manufacturer of

motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and

commercial vehicle manufacturing industry is the seventh largest in the world, with an

annual production of more than 3.7 million units in 2010. According to recent reports, India is

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CHAPTER 2

INDUSTRY PROFILE

CHAPTER 2

INDUSTRY PROFILE

set to overtake Brazil to become the sixth largest passenger vehicle producer in the world,

growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India

emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea,

and Thailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million automotive

vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second

fastest growing automobile market in the world. According to the Society of Indian Automobile

Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and

more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes

with approximately 611 million vehicles on the nation's roads.

A chunk of India's car manufacturing industry is based in and around Chennai, also known as

the "Detroit of India" with the India operations of BMW, Ford, Hyundai and Nissan

headquartered in the city. Chennai accounts for 60 per cent of the country's automotive exports.

Gurgaon and Manesar in Haryana are hubs where all of the Maruti Suzuki cars in India

are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular

production hub with companies like General Motors, Volkswagen, Skoda, Mahindra

and Mahindra, Tata Motors, Mercedes Benz, Fiat and Force Motors having

assembly plants in the area. Ahmedabad with the Tata Nano plant, Halol with General

Motors, Aurangabad with Audi, Kolkatta with Hindustan Motors, Noida with

Honda and Bengaluru with Toyota are some of the other automotive manufacturing regions

around the country.

The Indian automobile industry seems to come a long way since the first car that was

manufactured in Mumbai in 1898. The automobile sector today is one of the key sectors of the

country contributing majorly to the economy of India. It directly and indirectly provides

employment to over 10 million people in the country. The Indian automobile industry has a well

established name globally being the second largest two wheeler market in the world, fourth

largest commercial vehicle market in the world, and eleventh largest passenger car market in the

world and expected to become the third largest automobile market in the world only behind USA

&China.

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The growth of the Indian middleclass along with the growth of the economy over the last few

years has resulted in a host of global auto giants setting their foot inside the Indian Territory.

Moreover India also provides trained manpower at competitive costs making the country a

manufacturing hub for many foreign automobile companies.

Key automobile manufactures in India

Maruti Udyog

General Motors

Ford India Limited

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motors India Limited

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Limited

The Indian car industry has undergone tremendous change in recent times in terms of innovative

designs, concepts and technology. The efforts of the car manufacturers in India also started

reflecting in the sales figures. In 2009, the festive season brought cheers in the car market for

major players like Honda Siel Cars India (HSCI), General Motors India (GMI) and Hyundai

India boosting their sales records. The trend is still ticking in the same spirit and the year 2010 is

also expected to yield good results for the automobile industry in India with touching 10 to 12%

growth.

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There are some of the car manufacturing companies in India like Toyota, Hyundai, Maruti

Suzuki, Ford and Skoda which hope to make it big in next few years. These and other major

players such as M&M and Hindustan Motors are devising new techniques to accelerate growth.

Many of them have already launched the new luxury to economic class car models in India and

many others are in the process to tap the market with their new offerings.

Despite the fiscal slowdown worldwide, India had maintained its growth rate at a steady 8-8.5

per cent and the automobile industry has also grown in excess of 13 per cent over the last few

years. With easy financing options and with the wide range of cars being launched frequently,

the Indian automobile enthusiasts have never seen it better.

Recently, the President of the industry body Society of Indian Automobile Industry (SIAM),

Pawan Goenka commented that the Indian Automobile Industry is expected to grow at the rate of

15 to 16 per cent in 2011. And this growth will be across the categories – from two wheelers and

four wheelers to commercial vehicles.

According to a study by Booz & Company, a Global Management Consulting Company, the

Indian Automobile industry will overtake the European market and is slated to become the

world’s fourth largest by 2015 and will be selling almost 6 million units annually by 2020.

In the Automotive Mission Plan – 2006-2016 it is stated, ‘By 2016, India would emerge as the

world’s seventh largest car producer (as compared to the eleventh largest currently) and retain

4th largest position in world truck manufacturing sector. Further, by 2016, the automotive sector

would double its contribution to the country’s GDP from current levels of 5 per cent to 10 per

cent. Its contribution to the manufacturing sector would rise to 30-35 per cent from the current

level of 17 per cent. This is because the share of manufacturing in GDP is expected to go up to

around 35 per cent from current level of 17 per cent by 2016’.

The Union Budget of 2011-12 was termed as a ‘Reform Oriented Budget’ by Dr Pawan Goenka,

President, and SIAM. Several reform initiatives including roadmap for Direct Taxes Code,

Constitutional Amendment Bill for Goods & Services Tax (GST) which would be tabled in the

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current session of the Parliament and also pilot project across 11 states for implementation of IT

towards GST introduction is positive for the automobile industry.

Investments:

Most car brands have either come up with India specific models and/or have launched

international models to satisfy the consumer’s enthusiasm for newer vehicles. General Motors

(GM) India plans to launch six new vehicles over the next two years in India at an investment to

the tune of US$ 300 million. GM has invested over US$ 1 billion in India till date.

To meet the rising demand from the local market, Toyota Kirloskar Motors Ltd (TKML), the

local subsidiary of the Japanese company, will invest US$ 66.45 million to enhance its capacity

by 60,000 units in the next one year.

Mahindra & Mahindra Ltd (M&M) has begun work on its seventh tractor plant at Zaheerabad in

Andhra Pradesh (AP). The plant with a proposed capacity of 100,000 units a year would entail an

investment of US$ 66.97 million.

UK-based luxury and sports car maker Aston Martin has marked its entry into India with the

launch of its entire range, which includes the V8 Vantage Coupe, V8 Vantage Roadster, V12

Vantage, DB9 Coupe, DB9 Volante, V8 Vantage S, Virage and the four door sports car Rapide.

British carmaker Bentley has launched a 4-seater coupe of its Continental GT luxury sedan with

a price tag of US$ 4, 31,290 (ex-showroom, Delhi). The company aims to cross the 100-units

mark in the Indian market by 2012.

Daimler, the parent company of Mercedes Benz, is planning to launch a compact car in India

based on the Smart range. France’s Renault and Japan’s Nissan will provide technical assistance

to alter and modify the basic design of Daimler’s Smart two-seater car.

BMW India is planning to increase its dealership network in 2011. Under its Phase-1 expansion

plan, the automobile manufacturer has set up 12 outlets in the country. In Phase-2, it has planned

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to increase it to 22 outlets from the present 18. The company inaugurated its new outlet OSL

Prestige in Bhubaneswar recently.

Hyundai Motor India Ltd (HMIL) will soon be setting up a greenfield plant in India. The

company will be spending US$ 89.1 million for this purpose. This plant will be utilised to build

1.5 lakh diesel engines.

Honda SIEL India Ltd is planning to launch their small car in India in 2011.

Renault recently launched its five-year plan which will focus on India and other emerging

markets. The company will be launching the Koleos and Fluence in India in 2011 as well as an

SUV in 2012.

Toyota has unveiled the 2011 Etios, which was specially developed for India. The five- door

variant of the Etios will be launched in April by the company in 2012. Toyota will construct a

second plant at its Bidali complex in Karnataka in an investment worth US$ 713.8 million for the

manufacture of the Etios, with its two varieties, the sedan and the hatchback.

Mitsubishi is planning to introduce new models in India and tweak the existing ones. As part of

the plan, the company will launch the new Lancer in India and Lancer Evo X and two SUV’s

Pajero Sport and the 2010 Outlander.

Daimler India Commercial Vehicles plans an investment of US$ 981 million over a five year

period in the manufacture of light, medium and heavy duty trucks at its plant in Oragadam.

Hero Honda and Ashok Leyland-Nissan are also planning new factories.

Domestic Market/Sales:

According to SIAM, the cumulative production data for April-January 2011 shows production

growth of 27.45 per cent over same period in 2010. In March 2011 as compared to March 2010,

production grew at 20.62 per cent. The industry produced 17,916,035 million vehicles of which

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share of two wheelers, passenger vehicles, three wheelers and commercial vehicles were 75 per

cent, 17 per cent, 4 per cent and 4 per cent respectively.

The growth rate recorded for Domestic Sales for 2010-11 was 26.17 per cent amounting to

15,513,156 vehicles.

Passenger Vehicles segment grew at 29.16 per cent during April-March 2011 over same period

last year. Passenger Cars grew by 29.73 per cent, Utility Vehicles grew by 18.87 per cent and

Multi-Purpose Vehicles grew by 42.10 per cent in this period.

The overall Commercial Vehicles segment registered growth of 26.97 per cent during April-

March 2011 as compared to the same period last year. While Medium & Heavy Commercial

Vehicles (M&HCVs) registered growth of 31.78 per cent, Light Commercial Vehicles grew at

22.88 per cent.

Three Wheelers sales recorded a growth rate of 19.44 per cent in April-March 2011. While

Passenger Carriers grew by 22.03 per cent during April-March 2011, Goods Carriers registered

growth of 9.45 per cent.

Two Wheelers registered a growth of 25.82 per cent during April-March 2011. Mopeds,

Motorcycles and Scooters grew by 23.53 per cent, 22.86 per cent and 41.79 per cent respectively.

Maruti Suzuki posted a 14.7 per cent rise in January car sales while Mahindra & Mahindra

reported a sales growth of 22 per cent in comparison to last year.

Tata Motors posted a 15 per cent rise in January sales. Tata Motors has reported a consolidated

net profit of US$ 540.3 million for the quarter ended December 2010, up 273 per cent as

compared to US$ 144.89 in same quarter the previous year.

Skoda Auto India has reported impressive sales growth for January 2011, with total sales for

January 2011 at 2825 units, as against 1881 units in January 2010.

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Volkswagen too has registered impressive growth in 2011 with more than 5000 units of the Polo

hatchback and its sedan version, the Vento, in January.

Exports

During April-March 2011, overall automobile exports registered a growth rate of 29.64 per cent.

Passenger Vehicles registered marginal growth at 1.64 per cent in this period. Commercial

Vehicles, Three Wheelers and Two Wheelers segments recorded growth of 69.51 per cent, 55.86

per cent and 35.04 per cent respectively during April-March 2011.

Road Ahead:

After robust sales last year, the Indian automobile industry seems set to sustain the growth

trajectory in 2011 with a slew of new launches, while trying to keep prices competitive.

According to a report by KPMG, ‘Demographically and economically, India’s automotive

industry is well-positioned for growth, servicing both domestic demand, and, increasingly export

opportunities...Manufacturers are already planning for the future: early advocates of

technological and distribution alliances have yielded generally positive results, enabling

domestic OEMs to access global technology and experience, and permitting them to grow their

ranges with fewer financial risks’.

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Hyundai Motor India Limited

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company

(HMC), South Korea and is the largest passenger car exporter and the second largest car

manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The

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CHAPTER 3

COMPANY PROFILE

CHAPTER 3

COMPANY PROFILE

A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the

Verna, the A5 segment includes the Sonata Transform and the SUV segment includes the Santa

Fe.

 

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most

advanced production, quality and testing capabilities in the country. To cater to rising demand,

HMIL commissioned its second plant in February 2008, which produces an additional 300,000

units per annum, raising HMIL’s total production capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian customers with cutting-edge global

technology, HMIL has set up a modern multi-million dollar research and development facility in

the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering

and ensure quick turnaround time to changing consumer needs.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to

achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more

than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has

been the number one exporter of passenger car of the country for the sixth year in a row.

To support its growth and expansion plans, HMIL currently has a 315 strong dealer network and

640 strong service points across India, which will see further expansion in 2010.

A major force in the Indian automobile scenario, HMIL is the second largest manufacturer in

India. Focusing on the latest technologies and innovative marketing strategies, HMIL has carved

out a niche for itself in the market today  with  most  of  its  models  leading  in  their  respective 

segments.  It’s been a long journey from just 8,447 units in 1998, till today when HMIL has 

become  a  key  player  in  driving  the  industry  growth  year  after  year.

In calendar year 2010 (Jan – Dec) HMIL grew by 7.8% cumulatively registering total sales of

603,819 units as against 559,880 units of 2009 with domestic sales surging by 23.1% over 2009.

Domestic sales accounted for 356,717 units in 2010 as against 289,863 in the year 2009.

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Overseas sales accounted for 247,102 units as against 270,017 units in 2009 which reflects a

decline of 8.5% for the calendar year 2010.

Currently, Hyundai Motor India is exporting four of its popular models namely - Santro, i10, i20

and Accent to 110 countries. In 2009, in spite of a global slowdown, Hyundai Motor India’s

exports grew by 10.7%. In 2010 Hyundai plans to add 10 new markets with Australia being the

latest entrant to the list. The first shipment to Australia is of 500 units of the i20 and the total i20

exports to Australia are expected to be in the region of 15,000 per annum.

HMIL has invested to expand capacity in line with its positioning as HMC's global export hub

for compact cars. Apart from the expansion of production capacity, HMIL currently has 271

strong dealer network across India, which will be further bolstered in 2009.

In 2008, HMIL also successfully completed 10 glorious years of operations in India and to

commemorate its achievements, initiated a unique trans-continental drive from Delhi to Paris in

two of its hugely popular i10 Kappa cars. The drive created automobile history by completing a

distance of 10,000km in just 17 days after which the i10s were showcased at the Paris Motor

Show in October. In fact it was at the Paris Motor Show that HMIL first unveiled the Hyundai

i20 and the car received a phenomenal response from the auto enthusiasts across the world.

Hyundai Motor India also accomplished the landmark of producing the fastest 20th lakh cars in

India in 2008.

Like 2008, the year 2007 had also been a significant year for Hyundai Motor India. It achieved a

significant milestone by rolling out the fastest 400,000th export car. Hyundai exported to over 95

countries globally; even as it plans to continue its thrust in existing export markets, it is gearing

up to step up its foray into new markets. 2007 also saw the launch of the i10 and yet another

path-breaking record in its young journey by rolling out the fastest 1,500,000th car.

Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards from the

leading automotive magazines and TV channels like BS Motoring, CNBC-TV18 AutoCar,

NDTV Profit Car & Bike India and Overdrive magazine. The i10 was also the choice of the

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discerning automotive media of the country as they conferred the prestigious 'Indian Car of the

Year' (ICOTY) award to the i10 as well.

The Santro and the Accent also received the 'TNS Voice of the Customer - 2008' award for the

Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In March 2008 it achieved

yet another milestone by rolling out the fastest 500,000th export car.

In 2007, the Hyundai Verna had also bagged some of the most prestigious awards starting with

the Overdrive magazine’s ‘Car of the Year 2007’, the ‘Best Mid-size Car of the Year’ award

from NDTV Profit Car & Bike India, the ‘Best Value for Money Car’ from CNBC Autocar and

'Performance Car of the Year' from Business Standard Motoring.

Hyundai cars have been a favorite at all awards ceremonies and has won many awards. The

Sonata Embera won the 'Executive Car of The Year 2006' award from Business Standard

Motoring magazine and NDTV Profit Car & Bike India had declared the Tucson as the 'SUV of

The Year 2006'.

Management Philosophy

With the spirit of creative challenge, we will strive to create a more affluent lifestyle for

humanity, and contribute to the harmony and co-prosperity with shareholders, customers,

employees and other stakeholders in the automobile industry.

The spirit of creative challenge has been a driving force in leading HMC to where it is today.

It is the permanent key factor for HMC to actively respond to change in the management system

and seek creative and self–innovative system. With the spirit of creative challenge, we create

profits, the primary objective of a private enterprise. Furthermore, we take responsibility for the

environment and society we belong to, and offer sustainable mobility in order to implement our

corporate philosophy and provide benefits to all stakeholders including shareholders, customers,

executives, employees, suppliers, and communities.

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Vision

Company announced "Innovation for Customers" as our mid–to long–term vision with five core

strategies: global orientation, respect for human values, customer satisfaction, technology

innovation, and cultural creation. We desire to create an automobile culture of putting customer

first via developing human–centered and environment–friendly technological innovation.

Management Policy

Based on a respect for human dignity, we make efforts to meet the expectations of all

stakeholders including customers and business partners by building a constructive relationship

amongst management, labor, executives and employees. Also, we focus on communicating our

corporate values both internally and externally, and gaining confidence from all stakeholders.

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Mid-and Long-term Strategies

We developed five mid–and long–term strategies: global management, higher brand values,

business innovation, environmental management, and strengthening product competitiveness.

Especially, we selected environmental management as one of our strategies to meet the needs of

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our stakeholders and the society we belong to. We also intend to promote sustainability

development and preservation of the environment.

Some of the top cars of the company are:

Hyundai Santro

Hyundai Accent

Hyundai Elantra

Hyundai i20

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Hyundai Getz

Hyundai Sonata

Hyundai i10

Hyundai Verna

Strength of the Company

Separate showroom for cars.

Well equipped workshop with all infrastructural facilities.

Workshop is well supported by an organized spare parts division.

Their goodwill in the possess trained, sincere and efficient manpower to encounter present

market condition.

Established strong and transparent systems in all the departments.

We positional quality product.

Trained man power

Excellent marketing network for fixed coverage.

Comparison of Hyundai with Competitors

There is keen competition to HYUNDAI. The main competitors are MARUTI, FORD, OPEL,

HINDUSTAN MOTORS, and HONDA

HYUNDAI is perceived as a vehicle for own use.

HYUNDAI has more comfort, more spaciousness than their competitor vehicle.

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Looks of the HYUNDAI is very good, compared other vehicles.

Trident Hyundai has the following promotional measures.

1. The sign boards and hoarding are kept all over the city.

2. Display the product in the showroom.

3. If a new vehicle is launched they display the vehicle at showroom.

Test Drive:

Customer need to have test drive for newly introduced vehicle because he wants to know the

vehicle, so Trident Hyundai provides test drive to customer.

Customer Meet:

Taking old customer into consideration, Trident Hyundai call for the customer meet, in that, they

discuss about the vehicle so they may buy the vehicle or they will advice their friends, relatives

or neighbours.

Finance Scheme:

Here the bank manager and non-banking financial institution will meet and they will finance for

vehicle at certain rate of interest. The finance is provided by Hyundai Finance as well as banks.

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Research Methodology

Research methodology is a way to systematically solve the research problem. It can be

understood as a science of studying how research is done scientifically. It takes many dimensions

and research methods to constitute a part of the research methodology. Thus when we talk of

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CHAPTER 4

RESEARCH METHODOLOGY

CHAPTER 4

RESEARCH METHODOLOGY

research methodology, we not only talk of the research methods but also consider the logic

behind the methods used in context of the research study in such a way that results are capable of

being evaluated either by the researcher himself or by others. Under this head, the methods and

techniques used in preparing this report are discussed.

Research Process:

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Information Need Felt

Define Research Objective

Prepare Research Design

Design Research Methodology

Secondary Research

Primary Research

Tabulation and Analysis

Report Writing and Presentation

Information Need Felt (Need for Study)

Every dimension of market orientation emphasis the ability of intermediaries in order to

continuously sense and act on the events and trends in present and prospective markets.

Today’s highly sophisticated life makes the marketer to know the pulse of the market. If

companies want to survive in the competitive market they have to identify the needs of the

customer and try to fulfill them.

A market study is a snap shot at a point of time; this is because the need of consumer is dynamic.

Therefore he/she is always looking for something new to be satisfied.

The last few decades have seen companies operating in a highly competitive environment. The

economy is referred to as “CUSTOMER DRIVEN”

With firms allowing to customers to dictate specifications and quality standards and also

working out corporate strategies evolve around the consumer. However this is not an easy task

because the consumers are moving market and each consumer behaves uniquely at the market

place. The ultimate success of any marketing program will depend upon the way the consumer

behaves and whether his/her behavior is indicative of acceptance of the product or services

offering from the firms.

Consumer behavior is not predictable. Consumer needs are dynamic; therefore, he/she is always

looking for something new to satisfy new needs. This is the reason why the consumer

satisfaction has emerged as a separate research area of study since, the past few decades. The

study has been undertaken to determine CONSUMER BUYING BEHAVIOUR the research

has been taken up in analysis of CONSUMER BUYING BEHAVIOUR with reference to

“HYUNDAI CARS” in a customer driven, need based market.

31

Define Research Objective

The main objective of the study is to identify the consumer buying pattern with Hyundai

Cars.

To analyse the number and percentage of respondents owning Hyundai Car on the basis of

income, occupational level.

To analysis the percentage of respondents owning Hyundai on the basis of the causes and

sources of awareness.

To analysis the preference of Hyundai on the basis of price.

To analysis the result of consumer satisfaction on the basis of future purchase and

comparison of Hyundai with other brands.

Scope of study

Scope covers only Hyundai owners. Their preference is on basis of various factors and consumer

satisfaction level is on basis of future purchase and comparison with other brands. The survey is

conducted at the company service center at Mumbai. The sample survey is taken for a number of

“100” Hyundai customers.

Prepare Research Design

A preliminary study was first carried out in order to create a database of Hyundai car owners

across Mumbai. It involved three steps – a review of various online databases, a compilation of

the relevant data for preparing a database and an analysis of the data in order to shortlist an

appropriate sample for the purpose of research.

Following the preliminary study, Descriptive Research was undertaken. Descriptive Research

embraces a large proportion of marketing research. The purpose is to provide an accurate snap

shot of some aspect of the market environment. In Descriptive Research, the researcher has to

report what has happened or what is happening the way it is. The researcher cannot change

anything in the findings. Surveys are of Descriptive Research.

32

Design Research Methodology

The research methodology selected was influenced by the target population i.e. the Hyundai car

owners. The major parts of the research methodology were:

Method of Data Collection

Both, secondary as well as primary methods were used.

Sampling Plan

Sampling Technique – Non Probability Purposive and Convenience Sampling

Sample Universe – All the Hyundai car owners in Mumbai

Sample Frame – Mumbai Region I (Central Line, few areas of Harbor Line and some areas of

Western Line)

Sample Unit – All respondents

Sample Size – 100

Questionnaire Design

The questionnaire was designed in order to meet all the primary and secondary objectives of the

study. Structured open and close ended questionnaire was used.

Plan and Do Secondary Research

Secondary Data

It included the data like Indian Automobile Industry, Need for Consumer behaviour and Buyer 5

Step process.

Secondary Data Sources: Internet, Company profile, brochures.

Plan and Do Primary Research

33

Primary Data

Primary data was collected via Questionnaire.

Primary Data Sources: Primary data is collected directly by meeting the consumers who own

Hyundai Cars

Tabulation and Analysis

The analysis of data involved a number of closely related operations such as establishment of

categories, the applications of these categories into raw data through tabulation, charts etc and

then drawing inferences. All analysis was univariate in nature and was of Simple tabulation type.

In this report mostly judgmental analysis was applied. The data collected were grouped into

research characteristics and further subjected to segmentation and then the scores were obtained

by using tally bars. The scores and percentage are presented in tables, graphs and charts. By

percentile inferences were drawn. Every table for each test is represented through charts and

graphs.

Report Writing and Presentation

After analysis, the next step was the preparation of report. The report was prepared according to

the report writing principles. The inferences drawn from the analysis have been incorporated in

the report along with the recommendations & limitations of the study.

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Limitations

No project is ideal. In reality different problems were encountered which acted as limitations of

the project such as-

Some of the respondents were not ready to reveal relevant information which was

required for the project. Because the information collected from the customers by

meeting them at their working places, company service centers, during the business

hours, or at the parking lot where they may or will be busy with some other work, the

information extracted would not be sufficient from the respondents.

There was time constraint (2 months) for completing the entire project and meeting all

the objectives. Due to which only 100 no. of respondents could be surveyed, who

represents the population

The study is limited to Mumbai city only.

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36

CHAPTER 5

DATA ANALYSIS AND

INTERPRETATION

CHAPTER 5

DATA ANALYSIS AND

INTERPRETATION

Introduction

Analysis of data is the process by which data is converted into useful information. The raw data

collected from the questionnaires was processed in such a way in order to make it amenable to

draw conclusions. Here, the analysis of data involved a number of closely related operations such

as establishment of categories, the applications of these categories into raw data through

tabulation, charts etc and then drawing inferences. All analysis was univariate in nature and was

of Simple tabulation type. In this report mostly judgmental analysis was applied.

Following is the data analysis of data collected through questionnaire (Annexure I) during the

project.

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ANALYSIS OF HYUNDAI CAR OWNERS ON THE BASIS OF THEIR AGE GROUP

Age Group Respondents

Upto 25 Years 10

26-35 Years 25

36-45 years 30

46-60 20

60 and above 15

Total 100

Car purchaser age group

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Data Analysis & Interpretation:

The maximum buyers of Hyundai cars as per the survey shows that the customers are from

the age group of 25-35 and 36-45.The people from age group below 25 and above 60 are less

buyers of the vehicle.

From the above we can infer that the respondents in the age group below 25 and above 60

years are less in number because youngsters depend on their parents who in turn prefer two

wheelers and old aged people usually prefer luxury cars. The age group i.e. from 26-35 will

have started earning and the people at the age group from 36-45, who are independent and

are settled in the life and are able to afford the expenses. So they are the majority buyers of

the car.

39

ANALYSIS OF THE CAR BUYERS ON THE BASIS OF INCOME

Annual Income Respondents

Upto 3,00,000 10

3,00,000 to 5,00,000 25

5,00,000 to 7,00,000 20

7,00,000 to 10,00,000 25

Above 10,00,000 20

40

Data Analysis & Interpretation:

From the above table we see that the people from all income groups will preferably go for

Hyundai Cars segment.

Here the customers from all the income group would like to buy Hyundai car. The people

with the income group of up to 3 lakh and 3-5 lakhs would like to buy the small car like

xing. But the people of income group from 5-7 and above would like to buy the big

segment car like accent.

REASON FOR PURCHASING THE HYUNDAI CARS

Reason Respondents

Manufacturers reputation 30

Availability of service 40

Cost of the vehicle 20

Looks of the vehicle 10

41

Data Analysis & Interpretation:

From the above chart we can make out that most of the buyers say that they have

purchased the car because of the availability of service and manufacturing reputation of

the company and importance towards the cost of the vehicle as well.

From this we can make out that the company has created a Good Brand loyalty among

the customers and because of the luxury provided by the company towards the vehicle

and the good service facility available from the dealer side. So people would like to buy

the Hyundai cars because of the available facilities and also due to the reputation which is

gained by the manufacturer.

AWARENESS ABOUT THE CAR:

Sources Respondents

Television Advertisement 35

Newspaper Advertisement 15

Friends and Relatives 45

Other Sources 5

Total 100

42

Data Analysis & Interpretation:

From the above findings we can make out that friends & relatives i.e. word of mouth

publicity has made the Customers to purchase the Hyundai Cars and also the Television

Advertisement has play a major role in the purchase of Hyundai Cars.

Here we can see that the impact of friends and relatives and the role of media publicity

had played a major role in the purchase of Hyundai vehicles. The satisfied Hyundai

customers will recommend their friends and relatives to buy the Hyundai car and the

television advertisement will let the people to know about the vehicle more.

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HOW THE CAR IS BEING PURCHASED:

Mode of Purchase Respondents

Through Loan 60

Direct Payment 40

Data Analysis & Interpretation:

As per the findings from a group of 100 customers it has been found out that 60% of the

people had purchased the vehicle by taking loans. Remaining 40% of people through

direct payment

Here most of customers have purchased the car through loans. So the company should

provide some good finance option by giving attractive finance schemes and good interest

rates. So that it will help future customers for buying the cars.

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PARAMETERS CONSIDERED WHILE PURCHASING THE HYUNDAI CARS

Reason Respondents

Looks 10

Price 15

Colour 10

Engine Capacity 20

Pickup 30

Accessories 15

45

Data Analysis & Interpretation:

From the above table we can draw the information that the most of the people give much

preference to the pickup and engine capacity and also some importance towards looks

mileage etc.

Since consumers consider more than one factor for buying a car. Most of them have

chosen because engine capacity, mileage, price, pickup because people of our country are

much aware about the value of the money. This car provides and fulfills most of the

needs like reasonably priced, good mileage, pick-up etc.

CUSTOMER EXPERIENCE AT THE TIME OF PURCHASE OF

THE CAR

Parameters Opinions

Politeness of the dealer Satisfied

Availability of Information when asked Satisfied

Commitment of Delivery Satisfied

Cleanliness of the vehicle Satisfied

Data Analysis & Interpretation:

From the above table we come to know that the experience of the customers with the

dealer was good in all aspects mentioned in the table at the time of purchase of the car

Here all the customers are satisfied with all the parameters. So it is better to maintain the

same or to improve on it. The dealer must not only be customer caring at the time of

purchase of the product but he must follow the same always i.e. even after the sales of the

product which helps for the long run of the organization.

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FURTHER PLANS OF THE CUSTOMERS TOWARDS NEW CAR

Car Respondents

Hyundai 40

Opel 05

Hindustan Motors 10

Maruti 10

Ford 15

Honda 20

47

Data Analysis & Interpretation:

From the above table we can draw the inference that the people are well satisfied with the

Hyundai car and when the survey is conducted, the people were asked about their future

plan of purchasing new vehicle. Maximum of them preferred Hyundai vehicles.

Here when the customers were asked about their future car most of them opted toward

Hyundai. This shows there brand loyal toward the company and their faith toward the

company. We find that the Hyundai car is ranked as top most position, with such a good

percentage we can easily make out that Hyundai Cars is liked by most of the people. The

organization must keep on conducting the surveys, should identify the needs of the

customer and it should try to fulfill them for its long run and to retain the market share.

When the surveys is conducted the information drawn is if the Hyundai Customers

planning go for a new car he is once again back to Hyundai with more luxury and good

features, which have satisfied him.

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PURPOSE OF THE CAR

Purpose of Use Respondents

Own use 75

Company use 20

Taxi Service 05

Data Analysis & Interpretation:

Of the 100 respondents 75% of them say that the vehicle is used for OWN USE and only

20% use for company purpose and 5% for Taxi purpose.

From this we can say that the car is purchased more than 70% for OWN USE 25% for

company use and 5% for taxi services. This shows that the Hyundai cars are purchased

to make use for own purpose not for the commercial purpose. So the Hyundai vehicles

are termed as complete family vehicle with required family comforts and luxuries.

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OPINION ABOUT THE PRICE OF THE CAR BY THE CUSTOMER

Price Rated Respondents

Highly priced 12

Reasonably priced 74

Approximately priced 14

Below level Priced 0

Data Analysis & Interpretation:

From the above table we can draw the inference that the pricing of the car is well

accepted by the customers. 74% of them say that Hyundai Car is reasonably priced.

From the above we can say that the price of Hyundai cars is reasonably priced the

customers have accepted the price and the customers are satisfied from the price of the

Hyundai cars. So the company should maintain the price any try to reduce the price to

slight extent if possible.

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OCCUPATION OF THE HYUNDAI CAR OWNERS:

Occupation Respondents

Government 10

Professionals 40

Business 30

Housewife 10

Retired 10

Data Analysis & Interpretation:

From the above table we can make out that the Hyundai car buyers are more in number

from the Business Group as well as professionals.

Here most of the Hyundai car customers are from professional back ground and business

background. So they opt for the luxury and good performed vehicles. Hyundai cars have

satisfied all there needs and demands. So all the customers are satisfied about the vehicle

from this we can make out that business people and professionals have more buying

power compared to other occupational groups.

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PERFORMANCE RANKED BY THE CUSTOMER

Performance Highly satisfied Satisfied Dis-satisfied

Pick-up 38 58 8

Interior 6 60 34

Mileage 20 60 20

Road Handling 42 40 18

Comfort 34 40 26

Visibility 22 54 24

Service Backup 56 18 14

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Data Analysis & Interpretation:

From the table we can make out that most of the Hyundai car customers are satisfied

about the performance of pickup, mileage, interior, Road handling, comfort, visibility,

service.

From the above we can say that some Hyundai customers are highly satisfied with all the

features, mileage, pick up, visibility, road handling etc. but still we can find that there are

customers showing their dissatisfaction whom the organization can’t neglect. Hence the

organization must try to make the dissatisfied customers to get satisfied or else their

opinion may directly or indirectly affects the organization

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54

CHAPTER 6

OBSERVATIONS AND FINDINGS

CHAPTER 6

OBSERVATIONS AND FINDINGS

In the analysis of consumer Buyer behavior pattern with Hyundai cars, 100 consumers

were interviewed who are Hyundai car owners.

The car owners were interviewed at Hyundai Authorized Dealers of Hyundai cars, by

visiting to their places like to their residents, offices, shops and on the road side’s and

also at the company service station. 90% of the data that has been collected is primary

data.

Respondents were segmented on the basis of Income, Occupation, Price, Causes, Source

of awareness, Comparative analysis with other brands.

The maximum buyers (55%) of Hyundai cars as per the survey show that the customers

are from the age group of between 26 – 45.

As per Income group maximum percentage of Hyundai Car owners are in the Income

group of 3-5 lakhs and above.

As per Occupation group 40% are professionals, 30% are business owners, 10% are

government employees.

When the cause was analyzed behind the purchase of Hyundai car it was found that the

Hyundai car is purchased because of Manufacturer’s reputation and availability of

services.

When the source of awareness was analyzed, it was found that the awareness of the car

more from Friends and Relatives and also from T.V. ads.

30 % of the people gave much preference to the pickup and 20% to engine capacity and

also some importance were given towards looks, mileage etc.

60% of the people had purchased the Hyundai cars by taking loans.

74% of them say that Hyundai Car is reasonably priced

Most of the Hyundai car customers are satisfied about the performance of pickup,

mileage, interior, Road handling, comfort, visibility, service.

55

On the basis of comparison Hyundai car with its competitors like Honda, ford, Hindustan

Motors, Maruti etc. with respect to the market where the survey was conducted as per the

information we have got we can say that 45% of them are satisfied with the performance

they had expected from the Hyundai Car.

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57

CHAPTER 7

CONCLUSION

CHAPTER 7

CONCLUSION

From the findings and analysis it is clear that Hyundai Car is highly preferred when compared to

the other brands of car in the same segment.

With the analysis through the survey conducted for a period of 2 months in Mumbai on the

consumer buyer behaviour of Hyundai Car, the findings and analysis shows that 80% of the

consumers are happy with the product performance and also sales service and rest 20% of them

says that they are dissatisfied.

Consumer considers the following factors while buying car:

Price

Income of the consumer

Features in the car

Safety standard

Warranty scheme

Finance facility

Since each customer is like an asset for an organization the company should try to improve in the

area of dissatisfaction.

We know that getting new customer is double the cost of retaining the old customer so the

company should focus on retaining the old customers who in the future will purchase the product

or recommend others to purchase the product. Thus they help directly or indirectly for the

product sale.

Change is the only think to retain and attract the customers so the company should identify the

needs and dry to fulfill them.

Finally we conclude that the Hyundai is MORE POWER, MORE FUN car which is a complete

family car and is accepted by most of them and it gives consumer satisfaction as per study

undertaken.

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59

CHAPTER 8

RECOMMENDATIONS

CHAPTER 8

RECOMMENDATIONS

1. Improve the model

2. Establish more service centers and provide the best service.

3. Come with a ‘clean proposal’. Never hide the facts, be honest in selling your vehicles, in

describing the PLUS / MINUS facts, “customers friendly” attitude is a must for any Business

Deal.

4. Spare parts should be made available at lower rate.

5. Please provide High-way horn and reverse horn.

6. Dealers should be courteous in all the time as they are at the time of selling the car. This

show, the dealers are not focusing on customer care.

7. Change the look and increase the Mileage consumption.

8. Improve service and train the service personnel. After sales service is a very important factor

in case of automobile sector which may induce buying or stop people from buying the

particular brand of vehicle.

9. Maintain the same demand in the market.

10. Provide good product (model) & service according to the needs of changing customer

preferences.

11. Introduce more colours in accent.

12. Reduce some bit in the price of xing.

13. Increase after sales service and increase the number of service stations for the continence of

customers at different locations at the city.

14. Dropping facility should be provided.

15. Improve crash safety in all the Hyundai vehicles.

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61

BIBLIOGRAPHYBIBLIOGRAPHY

Bibliography

Books

Nargundkar, Rajendra, Marketing Research, Tata McGraw Hill Publishing Company Ltd,

New Delhi, 2009.

Kulkarni, M.V., Marketing Research, Everest Publishing House, Pune, 2002.

Marketing Management, Philip Kotler

Consumer Behaviour, Suja.R.Nair

Report

Business India – Februray,2011

Webliography

www.economictimes.com

www.hyundai.org

www.ibef.org

www.wikipedia.org

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63

AnnexureAnnexure

(A) Questionnaire

Name:

Contact Number: Email Id:

Age:

(1) Occupation:

(a) Government (c)Business (e) Retried

(b) Professionals (d) Housewife

(2) Income:

(a) Upto 3,00,000 (b) 3,00,000 – 5,00,000 (c) 5,00,000 – 7,00,000

(d) 7, 00, 000 – 10,00,000 (e) Above 10,00,000

(3) Reasons for purchasing Hyundai Cars?

(a) Manufacturer Reputation (b) Availability of Service (c) Cost of the Vehicle

(d) Looks of the Vehicle

(4) Awareness about the car

(a) Television Advertisement (b) Newspaper Advertisement

(c) Friends & Relatives (d) Other Sources

(5) How car is being purchased? (a) Through Loan (b) Direct Payment

(6) What parameters do you consider while purchasing the Hyundai Cars?

(a) Looks (b) Price (c) Colour (d) Engine Capacity (e) Pickup (f) Accessories

(7) Further Plans of the customers towards new car?

(a) Hyundai (b) Opel (c) Hindustan Motors (d) Maruti (e) Ford (f) Honda

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(8) Purpose of buying the car?

(a) Own Use (b) Company Use (c) Taxi Service

(9) What is your opinion regarding the price of Hyundai Cars?

(a) Highly priced (b) Reasonably priced

(c) Approximately priced (d) Below Level priced

Any Suggestions

65