Report on Understanding Consumer Preferences Regarding Features in Current Cars

7/31/2019 Report on Understanding Consumer Preferences Regarding Features in Current Cars

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A

Research Report

On

UNDERSTANDING CONSUMER

PREFERENCES REGARDING FEATURES

CURRENT / UPCOMING CARS

Submitted by

Kamlesh Gajbhiye A-11

Shankar Yermalkar A-59

Bhushan Chaudhari B-12

Sushant Rode B-45

Vijay Rodge B-46

MBA - I


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Shree Chanakya Education Societys

Indira Institute of Management85/5 A, Tathawade New Pune-Mumbai Highway

Wakad, Pune 411033


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Abstract

Consumer understanding is the vital quality for a marketer. It is of

prime importance to understand the nature of purchase and preferences

in the light of rapidly evolving lifestyles, values, priorities, and social

contexts. In particular the buying process of consumer is of more

importance to marketing practitioners than the consumption process.From a practitioners perspective consumer research is pertinent so as to

enable him to understand changing consumer needs, wants, and

motivations and thereby devise the most appropriate mix for his market.

Then, to the marketer the dynamic nature of consumer behaviour

implies rapid product development, changing communications, and

distribution strategies in order to be more effective. Consumer decision

making processes and behavioural outcomes are studied to bring about

prediction and change. This Research is in order to achieve a broader

understanding of the impact of preferences on the consumer without

any particular intent to change or influence the process. While some

outcomes may be significant to marketing practice the overall goal of

such research Endeavour is to achieve better understanding of

consumer behaviour. The automobile consist of 30 % electronics parts,

a survey is conducted to understand the vital element behind which

influence this purchase. Based on the survey various trends wereprojected and studied researched under the paper. The research is

based on the survey conducted for Cummins India pvt.ltd under the

head E cube .


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Chapter 1: Introduction

The purpose of this research paper is to understand the consumer

behavior for electronics component in automobiles. In order to develop

a framework for the study of consumer behavior it is helpful to begin by

considering the evolution of the field of consumer research and a set of

dimensions can be identified in the literature, which can be used to

characterize and differentiate, the various perspectives on consumer

research.

Consumer is the study of the processes involved when individuals

or groups select, purchase, use, or dispose of products, services, ideas,

or experiences to satisfy needs and desires . In the marketing context,

the term consumer refers not only to the act of purchase itself, but

also to patterns of aggregate buying which include pre-purchase and

post-purchase activities. Pre-purchase activity might consist of the

growing awareness of a need or want, and a search for and evaluation

of information about the products and brands that might satisfy it. Post-purchase activities include the evaluation of the purchased item in use

and the reduction of any anxiety which accompanies the purchase of

expensive and infrequently-bought items. Each of these has

implications for purchase and repurchase and they are amenable in


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differing degrees to marketer influence. This paper focuses on studying

the influencing factor pre-purchase as well as post-purchase.


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Chapter 2: Purpose of the Research

Problem statement: Electronics constitute for more than 30% of a car

cost. With changing lifestyles, evolving needs, auto electronics has beenchanging in form and factor over the last few years. Consumers expect

varied feature set in the cars they drive or want to drive. It is a

challenge to understand and analyze the needs and preferences

on automotive technologies from consumers. This edition of E-Cube will

assess the same.

The objective of the paper is to explore what the trends are

observed in the Indian automobile industry.

The survey in the paper targets the electronic component inautomobiles mainly.


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Chapter 3: Literature Review:

Consumer behaviour itself emerged as a distinct field of study.

During the process of evolution of the field of consumer behaviour,

researchers drew on various disciplines, ranging from psycho-physiology

to literature .In addition to the many disciplinary orientations,

perspectives on consumer behaviour are broadly differentiated by their

emphasis on internal influences (drawing on theories from psychology)

and on external influences (drawing on theories from sociology).

Furthermore, methodological inclinations and fundamental assumptions

about the unit of analysis - the consumer, differ radically between

perspectives. Thus, varying perspectives present different views of

aspects on consumption (as emphasized from the consumers

perspective), research orientations (as emphasized from the researchers

perspective), and focus (micro/individual or macro/social) on consumer

issues. Research that studies consumer behaviour as a sub discipline of

marketing with the aim to identify how consumer research can be put to

use in marketing practice, regards the field of consumer behaviour as an

applied social science. Accordingly, the value of the knowledge

generated should be evaluated in terms of its ability to improve theeffectiveness of marketing practice. According to this perspective,

marketing management inevitably rests upon some conception of how

consumers behave and of the consequences their reactions to product,

price, promotion, and distribution strategies are likely to have for the


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attainment of corporate goals. In affluent, competitive economies,

successful marketing depends above all on matching the marketing mix,

which results from the integration of these strategies with the

willingness of consumers to buy and in doing so more effectively than

ones rivals. The consumer-oriented management which results from

such matching is a response to the enormous discretion exercised by

purchasers in these economies. Moreover, the choices made by

consumers have consequences not merely for competing companies

within a given, traditionally-defined industry; because of the high levels

at which discretionary income is running, companies are increasingly

forced to compete across the conventional boundaries of markets and

industries .

This research focuses on the various perspectives of consumer

research the perspectives are:

1) Traditional

2) Rational

3) Behavioural

4) Cognitive

5) Personality

6) Motivational

7) Attitudinal

8) Psychographic

9) Situational Influence.

In this particular case, the following generic model of consumer

decision making appears to hold:

1) Need recognition

2) Information search

3) Evaluation of alternatives

4) Purchase decision


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5) Post-purchase behavior

The consumer researcher does the study of consumer buying

process based on the above perspectives. In particular the buying

process of consumer behaviour is of more importance to marketing

practitioners than the consumption process. From a practitioners

perspective consumer research is pertinent so as to enable him to

understand changing consumer needs, wants, and motivations and

thereby devise the most appropriate mix for his market. Then, to the

marketer the dynamic nature of consumer behaviour implies rapid

product development, changing communications, and distribution

strategies in order to be more effective. It is this (marketing) concept,as articulated by several marketing scholars (e.g., Alderson 1965;

Bagozzi 1975; Kotler 1972; Kotler and Levy 1969) that captures many of

the more essential characteristics of modern marketing which has

tended to dominate thinking in the field. All these stastical study help

the manufacture to understand his target market.

Chapter 4: HypothesisFollowing Hypothesis were drawn for the study

H0: Consumer decisions for luxury car are not price sensitive.

H1: Consumer decisions are price sensitive for luxurious car.

H0 : Increase in Disposable income will not affect buying decision of

consumer substantially.

H1: Increase in the disposable income will lead to increase in

purchase of automobile .


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H0: There is significant indifference of all the factors affecting car

purchase decision.

H1: There is significant difference of all the factors affecting car

purchase decision

H0: Electronic components in a car is the first priority in purchase

decision for a car.

H1: Other factors are considered while purchasing a car.

H0:AT (Automatic Transmission)is popular among the people.

H1:AT is not popular among the people.

Chapter 5: Scope

The study was conducted for KPIT Cummins India limited under

the project named E-Cube. The references occurring in the report are so

related to the KPIT premise.


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The questionnaire is presented to the owner/driver of the cars

only.

The survey focuses on mainly electronic component and Automatic

Transmission of car.

The study is limited to cars only.


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Chapter 6: Limitations

Geographical constrains while surveying.

Some of the operational constrains while surveying.

Information access is no easy task.

Only specific segment is targeted.

Many of respondent were unaware of the features they were

questioned against.

Ignorance of the respondents.

Time constraint.


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Chapter 7: Objectives

To evaluate overall preference of the consumer.

To study electronic component preference for car.

To study the above factor as a potential influencer for purchase.

To evaluate overall consumer satisfaction. To study post purchase behavior.

To examine the consumer behavior.

To study the current market condition of cars.

To examine overall scenario of the consumer.

To analyze overall performance of existing cars.

To study the general awareness of consumer behavior.


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Chapter 8: Research Design and Methodology

Research methodology is a systematic process of collecting,

presenting, analyzing and interpreting data for the purpose of arriving at

dependable Solutions to human problems.

Methodology is therefore concerned with the study of the researchmethods in a research of this nature, it is necessary to define the

research design, area of the study, population of the study, sample size

and sample size determination instrument for data collection, validation

of instrument, reliability of research instrument.

RESEARCH DESIGN

The design of this project is a study of consumer understanding

for electronic component in a car. The research design model used is

Descriptive.

AREA OF STUDY


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The area of the study covers all the electronic component present

in the car and which can be seen in near future in the cars .

POPULATION OF THE STUDY

The sample size of the project was 250 respondents and it is

provided by KPIT Cummins.

INSTRUMENT FOR DATA COLLECTION

There are many sources or instrument of data but the study which

is purely analytical instrument for data collection is primary.

These are raw data collected from people directly involved. These

comprised the data collected from the

i) Questionnaire

The company designed well structured and multiple choice

questionnaires for the car owners/drivers. Questionnaires were

distributed and collected immediately to avoid loss in transit and close-

ended questions were asked for simple and direct responses which the

respondents could not easily avoid.

ii) ORAL INTERVIEW

This method served as a follow-up to the questionnaire which

gave the respondents the opportunity to explain certain questions in

detail.

The researcher met the respondents face to face and necessary

questions were asked.

Reliability of the instrument

Standard test of hypothesis was used by the researcher in order to

determine whether the incidences were by chance or statistically

significant.


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This made it possible for the researcher either to accept the null

hypothesis or reject.


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Questionnaire

Consumer Questionnaire

Understanding Consumer Preferences regarding

features current / upcoming cars

Instructions to the Administrator:

This questionnaire could be administered in person or over phone to a respondent. Students

need to approach car owners/car drivers to respond to this questionnaire to get adequate

inputs for various questions. The text marked in ITALICS RED is for students who administer the

survey. The students should administer the questionnaire verbatim, to ensure no administrator

bias creeps in.

All the best!

-------------------------------------------------------------------------------------------------------------------------------

(Greet Respondent and introduce yourself)

Dear Respondent,

I am an MBA student from ______ College. I am here to know from you, your opinion about various

features in your car. We are doing this study to understand consumer expectations regarding electronics

features in current/upcoming cars.

Personal Information about the Respondent (Make entries in the boxes below)

1. Name of the Respondent: ____________________________________

3. Gender: a. Male b. Female

2. Age: ___________

(Please note Gender without asking)

4. Contact No. a. Mobile: _________________________ b. Landline: ________________________

5. E-mail id: _________________________________ 6. City: __________________________

7. Make of the Car(s) Owned (Manufacturer):

_______________________________________________

8. Model / Name of the Car(s): __________________________________________________

9. Year of Purchase: ____________ 10. Kilometers run: ___________ 11. Mileage: _______ km/ltr.

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Questionnaire

Understand Decision Making

12 Who decides on buying a new car in your household? (Tick any one)

I myself

My husband/ wife/ partner and I

make decisions together, my input

to decision being considerable

My husband/ wife/ partner

Other person (e.g. children, parents)

.

Find out the Socio- Economic class

(The SEC Classification (also called the Socio-Economic Classification) is a classification of households

used by surveyors, market researchers, media and marketing companies in India to categorize consumer

behavior. The occupation and education level of the HIGHEST MONEY CONTRIBUTING member is the

amilyis noted. Then the SEC of the household is inferred. Refer table below. Eg: If a Respondents

Occupation is Supervisor at Manufacturing Unit and is a Post Graduate (general) His SEC category is

A2)

13. Socio - Economic Class:

a. I would like to know something about the person who makes the biggest / highest

contribution to the family expenditure. What is his/her occupation? (Write in space below.

If retired ask: what was his/her occupation before he/she retired?)

Occupation: _________________________________

b. What is the highest level to which he/she has studied? (Write in space below)

Education: __________________________________

(Use the above two answers to CIRCLE an appropriate SEC class in the below table)

c. SEC Class ______

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Questionnaire

SOCIAL CLASS

(defined by education level &occupation)

1

1. Unskilled Workers

2. Skilled workers

3. Petty traders

4. Shop owners

Businessmen/ Industrialistswith no. of employees

5. None

6. 1-9

7. 10+

8. Self-employed professional

Clerical/ Salesman

9. Lower level

10. Supervisory level

11. Officers/Executives junior

12. Officers/Executives middle/ senior

X

X

X

B1

x

x

x

B1

x

x

x

B1

x

x

B2

B1

B2

B2

B1

A2

B1

B1

A2

A1

B1

A2

A2

A1

X

X

B1

X

x

B2

B1

x

B2

B2

A2

x

B1

B1

A2

B2

A2

A2

A1

B1

A2

A1

A1

A2

A1

A1

A1

A1

X

X

X

X

Illiterate School:up to 4years

2

x

x

x

x

School: 5-9 years

SSC/HSC

Some collegebut notgraduate

5

x

x

x

B1

Graduate/ Postgraduategeneral

6

x

B2

B2

A2

Graduate /Post graduateprofessional

7

x

B2

B2

A2

3

x

x

x

x

4

x

x

x

B2

14. ( 4 Part Question)Which all car manufacturers are you aware of? Can you name a few cars of

each manufacturer? Rank each of these cars in a preferential order to buy. E.g. Most Preferred is

ranked 1, Least preferred as last. How would you best describe these Cars/manufacturers

Sr.

No.

A. Car

Manufactur

ers aware of

B. Cars of each

manufacturerC. Rank

D. Image of Car

Brands

1

2

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Questionnaire

3

4

15. Why have you bought a car?(Tick Multiple Boxes If they specify Main reason Tick Against)

Sr. No. Response A. TickB. Tick Main

Reason

1

2

3

4

5

For my family

I always had a dream to buy a car

To enhance my family status

I just consider it as a transportation

medium

I consider it as an important asset

16. (3 part question)Forwhat all purposes do you use your car for? Please specify the main purpose,

you use your car for. How many times in a week you use car for the purposes listed. What is

average distance travelled per week for each purpose?

A.Main / Major

purpose

B. Times

used in a

week

C. Average distance

travelled per weekSr. No. Purpose of Usage

1

2

3

4

5

Going to office

Recreation

Shopping

Commute within city limits

Commute outside city limits

17. What type of Audio system would you prefer in your car? (Tick only one applicable box)

Sr. No.

1

Audio System types

One where I can listen to MP3 songs, CD /

DVD

Tick

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Questionnaire

2Without any deck USB / Bluetooth/ i-Pod

connectivity with amplifier is enough

18. Rate the importance of Vehicle security feature on a scale of 1 to 5: _________

(1- least Important 5- Highly important)

19. What measures do you adopt to get directions to reach unknown places? (Tick all applicable boxes)

Sr. No.

1

2

3

4

5

6

7

Usual Way

Refer a printed map

Search on Google / other Search Engines

Ask friends / family / relatives / colleagues

Ask for local help after reaching nearby area

Try to explore on your own

Use a Portable Navigation Device (PND)

Other 1 -

Tick

8Other 2 -

20. Have you used any kind of Navigation Systems earlier? Yes No

21. (4 part question)Can you mention various types of Navigation Systems you are aware of? (Tick

all applicable boxes)Have you used any of them? (Tick all applicable boxes) Are you satisfied

using these products? (Scale of 0 to 10 to be used, 10 very satisfied, 0 Not at all satisfied).

Which one would you prefer to use the most?(Tick only one applicable box)

A.

Sr. No. Navigation System types

Aware

ness-

(Tick)

1

2

Mobile Navigation Systems Powered by Google

/Other Portals/ Network operators

Portable Navigation Devices offered by

B.

Used(Tick)

C.

SatisfactionRating

D. Most

preferred (Tickonly one)

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Questionnaire

MapMyIndia, Tom Tom, Sat Guide etc.

3

4

In-Built Car Navigation Systems

Other 1

5Other 2

22. Does your car have a navigation system device?

a.

Yes ____ No _____

If YES who is the device provider? __________________________

b. What influenced your purchase (Tick applicable boxes)

Print Advertisements

Dealer Recommendation

Blogs/ Online Forum/ Social Media

Word of Mouth

Expert Reviews

Other Specify

c. Why did you fit a navigation system in your car?(Tick only one applicable box)

Convenience

Very Often

Status Symbol

Often

Other - ___________

Rarely Never

d. How often do you use your navigation system? (Tick only one applicable box)

Sometimes

e. Are you satisfied with the Navigation System? (Tick only one applicable box)

Highly satisfied

Dissatisfied

23.

Satisfied

Highly Dissatisfied

Neither Satisfied Nor Dissatisfied

Rank the function/ service in the navigation system you use/ would prefer the most.(Tick all

applicable boxes)

Places of Interest

Distance Indication

Time indication Proposed time to travel

Route Options/ Comparison

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Questionnaire

Traffic indicators

Others Specify

24. (Multi-Part Question)Can you name some of the popular suppliers in the market who offer

various types of In-Car Navigation Systems? Please name any unique features offered by these

Systems. Are you aware of Map data suppliers for the mentioned Navigation systems? If Yes,

which is your preferred Map data supplier for the navigation system installed in your car? (Tick

any one. GM-Google Maps; MMI-MapMyIndia)

Sr. No.A.Name of theSupplieraware of

B. Unique feature

C. Name of theMap Data

supplier aware of

D. Tick PreferredMap Data supplier

GM:

1MMI:

GM:

2MMI:

GM:

3MMI:

GM:

4MMI:

25. In which situations do you mostly use your Navigation System? (Tick all applicable boxes)

For what purpose would you mainly use a Navigation system?

B. Main

Sr.

No.Situation A. Tick

purpose for

using Nav.

system

1

2

3

While traveling within city

While traveling in a non-familiar place

To explore nearest possible route to a

destination

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Questionnaire

4 To locate a particular destination

To explore various cities and places of

5 interest(restaurants, cinemas, museums,

petrol pumps etc.)

6Other 1 -

7Other 2 -

26. Are there any features in your PND(Portable Navigation Device) that makes you unhappy?

(Write in the space)

________________________________________________________________________

27. Are there any security features installed for your Navigation System? (Write in the space)

________________________________________________________________________

28. (Multi Part Question)Whatare your expectations regarding various Navigation System features

given below? Specify main / most important features expected.

Sr. No. Feature

Ability to connect to Internet with the help

of vehicle navigation system

A. Tick (ifpreferre

d)

B. Main / Mostimportantfeature

(expected)

1

2 Navigation/DVD display in rear seat

a. Preferred Panel Touch Screen

3

b. Preferred Panel Remote Control

a. Mode to enter destination information

4Enter place name directly

b. Mode to enter destination informationEnter address

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Questionnaire

c. Mode to enter destination informationEnter postal code

d. Mode to enter destination informationSearch within map

e. Mode to enter destination informationCategorized search

a. Display Language - English

5 b. Display Language - Hindi

c. Display Language - Regional

a. Instruction (Voice) Language - English

6 b. Instruction (Voice) Language - Hindi

c. Instruction (Voice) Language - Regional

7

8

9

10

In-built database to show popular placeswithin a city

Others 1 -

Others 2

Others 3

29. What steps would you prefer to locate a destination? (Tick only one applicable box)

Sr. No.

1

2

3

4

Preferred way

Enter City -> Town -> House No.

Enter City -> Street -> House No.

Enter City -> Street -> Search Off road

Other 1 -

Tick

30. Usually we only have the audio system to entertain ourselves in the car.

a. Do you feel the need for a Rear seat entertainment console? (Explain Rear seat

Entertainment as LCD screens for people sitting in rear seat, Multi-speaker systems with

enhanced audio. )

Yes No

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Questionnaire

If Yes, What would you want to include?

b. What is the desired size of the LCD screen

7 10 15 More than 15

c. System playing various audio and video formats .MP3, .AVI, DivX, .VOB etc.

Yes No

No

No

d. Multi-speaker systems Yes

e. Dolby Digital Surround speaker systems Yes

f. Others 1 - ____________________________________________

31. What do you expect from the Navigation Systems in terms of content, features and

functionality? (Apart from the ones mentioned above)

a. __________________________________________________________________________

b. ___________________________________________________________________________

c. __________________________________________________________________________

32. Any other suggestions / comments / feedback.

______________________________________________________________________________

______________________________________________________________________________

Auto Transmission questions:

33. Does your car have Manual Gear Transmission or Automatic Gear Transmission? (Tick only one

box)

Manual Transmission Automatic Transmission

34. If respondent has car with Manual Transmission,

What is your view / feedback about cars with Automatic Transmission? (Tick only one box)

Opinion about car with Automatic Transmission

a. Manual Transmission Car is convenient to drive

Tick

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Questionnaire

b. Car with Manual Transmission provides better fuelefficiency than a car with Auto Transmission

c. Cars with Auto Transmission are expensive (Not my cup oftea)

d. Would always prefer a car with Manual Transmission overAutomatic Transmission

e. Other 1-

35. If respondent has car with Automatic Transmission, ask, Was the Automatic Transmission system

factory-fitted or you have installed it later?( (Tick only one box)

Factory-fitted: Installed it later:

36. Rate you satisfaction with the Automatic Transmission of your car. Rating 0 to 10, 0 Very

Dissatisfied, 10 Extremely Satisfied. (Tick only one box)

Satisfaction with

Automatic

Transmission

Not at all satisfied

1 2 3 4 5 6 7

Totally satisfied

8 9 10

Rating

37. Why would you use a car with Automatic Transmission over car with Manual Transmission?(Tick

all applicable boxes))

Opinion about using car with Automatic Transmissiona. Driving Pleasure

b. Convenience

c. Status Symbol

d. Better performance

e. Other 1-

Tick

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Questionnaire

Questions to be asked to all respondents (even if his car is having car with MT)

38. Have you driven any other car having Automatic Transmission? Share your experience while

driving (specifically regarding transmission).(Note down Car and Experience)

A. Car Name B. Experience while driving the car (specifically about AT)

39. What additional functionality do you expect from cars having Automatic Transmission?

Expectation

Fuel Efficiency

Driving functionality (better functionality expected)

Other 1 -

Tick

40. Are you aware of any Automatic Transmission kit providers / suppliers in the market?

Yes No

If Yes, Could you name some of them? Which of them is the most popular? Why?

A.Names of Automatic Transmission

kit providers / suppliers in the

market aware of

B.MostPopul

ar

(tick)

C. Why is the provider / supplierpopular?

41. Which of the car segments, according to you should also come with Automatic Transmission

variant? (Tick all applicable boxes)

High class Luxury Cars

Convertibles

42. Would you prefer to fit an AT kit in your car from aftermarket? (Through car dealer, supplier,

manufacturer etc.)(Tick only one box)

Yes No

Page 22

Sedans SUVs MUVs Hatchbacks


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Questionnaire

43. Do you feel that Automatic Transmission is suitable for Indian Terrain? (Different road

conditions, varying gradients, weather conditions etc ) (Tick only one box)

Yes No

44. What should be the ideal engine capacity suitable for Automatic Transmission installation in a

car? (Tick only one box)

800CC

>2200CC

45. What would be your preferred ideal speed options for AT? (Tick only one box)

4-Speed

Manual

Petrol

5-Speed

Automatic

Diesel

(Tick only one box)

More than 3Lakh Rs 1-2Lakh Rs 2-3 Lakh Rs

6-Speed

Semi-automatic CVT(Continuous Variable Transmission)

1200CC 1600CC 1800CC 2000CC 2200CC

46. What are your most preferred Transmission option?(Tick only one box)

47. Would you prefer AT in petrol-driven car or diesel-driven car? (Tick only one box)

48. What extra price are you willing to pay for AT car?

Less than 1 Lakh Rs

49. AT Car Expectations?

A. Performance

(Write down features/expectations for each category below)

B. Comfort C. Convenience D. Safety

Student Name: _________________ Place: ___________________ Date: _______________

Data Entry into Excel Sheet: ____________________________ Date: __________________


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Chapter 10: Data Analysis

Q2. Age group of Respondents

Our survey has younger respondents, as 59% are from22-30 agegroup and 30% from 31-45.

Q3. Gender of Respondents

Age

0

20

40

60

22-3031-45

46-6061+

58.40

29.60

11.20

0.80

Age

Age

Male

82%

Female

18%

SEX

Male

Female

Page 23


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Survey contains 18% of female respondents and 82% of male.

Q7. Manufacturer of Cars respondents prefer

30 % of puneties uses Maruti Suzuki, followed by tata 23% & Hyundai17%.

Q14. A. What all parameters will you consider while buying a car?

M

ost

of

the

respo

ndents

prefe

rred

safet

y as

a

major parameter while buying a car followed by mileage, sporty, etc.

Mileage

22%

Looks/Styling

3%

Luxury

4%Safety

31%

Sporty

11%

Strong

andRugged

7%

Feature Rich

10%

Environment

Friendly

1%

Technology

5%

Total Cost of

Ownership

6%

Parameters while buying

Mileage

Looks/Styling

Luxury

SafetySporty

Strong and Rugged

Feature Rich

Environment Friendly

Technology

Maruti Suzuki

30%

Tata

23%

HYUNDAI

17%

Honda

7%

Ford

6%

Chevrolet

5% Others

12%

Brands People Prefer

Maruti Suzuki

Tata

HYUNDAI

Honda

Ford

Chevrolet

Others


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Q15.A. Why have you bought a car?

There are many reasons for buying car, but most of respondentsbought car for their family.

Q16. A. MAIN/MAJOR purposes do you use your car for?

Most of respondent have bought a car for going to office.

For my family

60%

I always had a

dream to buy a car

13%

Toenhanc

e my

family

status

11%

I just consider

it as a

transportation

medium13%

I consider it as

an important

asset

3%

Why bought car

For my family

I always had a dream to buy a

car

To enhance my family status

I just consider it as a

transportation medium

I consider it as an important

asset

Going to office

77%Recreation

1%

Shopping

4%

Commute within

city limits

11%

Commute outside

city limits

7%

Purpose Of Buying

Going to office

Recreation

Shopping

Commute within city limits

Commute outside city limits


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Q17. Audio System preferred

Many of respondents are technology oriented so that they preferUSB/Bluetooth/i-Pod connectivity with amplifier.

Q18. Importance of Vehicle Security

58%

42%

Music System Type

One where I can listen to MP3

songs, CD / DVD

Without any deck USB /

Bluetooth/ i-Pod connectivity

with amplifier is enough


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About 56% respondent rated the importance of vehicle security

feature on a scale of 5.

Q19. Measures adopted to reach unknown places

About 34% of respondents prefer traditional method to ask friends

and relatives to get directions to reach unknown places.

Q20. Have you used navigation system earlier?

0

10

20

30

40

50

60

12

34

5

7.6 10.4 12.4 14

55.6

Vehicle Security

Vehicle Security

17%4%

34%19%

23%

3%

How to reach unknown places

Refer a printed map

Search on Google / Search

Engine

Ask friends / family / relatives /

colleagues

Ask for local help after reaching

nearby area

Try to explore on your own

Use a Portable Navigation

Device (PND)


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81.6% of respondents havent used any kind of Navigation systemearlier.

Q22. Car have Navigation system device?

90% of respondents do not have any kind of Navigation system totheir car.

0

10

20

30

40

50

60

70

80

90

Yes No

18.4

81.6

Used Navigation System?

Yes

10%

No

90%

Have navigation System?

Yes

No


36/49

Q24.D. Preferred map data supplierMost of the respondents prefer Google Maps as a map data supplier.

Q28.2 - Navigation/Display in Rear Seat

65% respondents felt that there is need of Navigation/DVD display in

rear seat.

Q28.3- Preferred Panel

85% of respondents prefer touch screen panel over remote controlpanel.

Q28.4 - Mode to enter destination information

0.00

20.00

40.00

60.00

80.00

Yes No

34.67

65.33

Display in Rear Seat

Touch Screen

85%

Remote Control

15%

Preferred Panel

Touch Screen

Remote Control


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78% of respondents would like to enter address directly to get thedirections.

Q28.5- Display Language/Instruction Language

Enter place name

directly

9%

Enter address

78%

Enter postal code

13%

Mode to enter destination

Enter place name directly

Enter address

Enter postal code

English

63%

Hindi

23%

Regional

14%

Display/Instruction language

English

Hindi

Regional


38/49

About 63% people would like to use English as display as well asinstruction language.

Q28.7- Inbuilt database to show popular places within city

Almost 96% respondents felt that there should be indication of

popular places within the city.

Q30.A. Need for rear seat entertainment consoleAlmost 99% respondents said that there is need for rear seat

entertainment console.

Q30.B Screen Size

0

10

20

30

40

50

60

70

80

90

100

Yes

No

95.2

4.8

Show popular places within city

Show popular places within city


39/49

7 inch screen size is preferred by respondents over 10 & 15.

Q30.D Multi Speaker systemsMany respondents are interested in multi speaker system.

Q30.E- Dolby Digital Surround systems

60% of respondents would like to have Dolby Digital Surround

System in their car.

Q33. Transmission System

7"

58%

10"

40%

15"

2%

Screen Size

7"

10"

15"

Yes

60%

No

40%

Dolby Digital Surround System

Yes

No


40/49

Only 4 % of respondents would like to have Automatic transmissionSystem.

Q34. View on automatic transmission

About 50% respondents felt that car with manual transmission

provides a better fuel efficiency than with automatic transmission.

Q40-AT Kit providers Awareness

Automatic

4%

Manual

96%

Transmission System

Automatic

Manual

49%

40%

6% 5%

View on automatic transmission

a. Manual Transmission Car is

convenient to drive

b. Car with Manual

Transmission provides better

fuel efficiency than a car with

Auto Transmission

c. Cars with Auto Transmission

are expensive (Not my cup of

tea)

d. Would always prefer a car

with Manual Transmission over

Automatic Transmission


41/49

Most of the respondents are unaware of AT kit provider.

Q41. Car segment with AT

Almost 59% of respondents felt that High-class luxury cars shouldcome with automatic transmission.

Yes40%

No

60%

AT Kit provider-Awareness

Yes

No

High-class luxury

cars

59%

Sedans

1%

SUVs

13%

MUVs

2%

Hatchbacks

20%

Convertibles

5%

Car segment with AT

High-class luxury cars

Sedans

SUVs

MUVs

Hatchbacks

Convertibles


42/49

Q42.AT from aftermarket

94% respondents wouldnt go for AT aftermarket as they felt that ATfrom aftermarket costs more.

Q47.A - Fuel type for AT

Almost 99 % of respondents prefer diesel as fuel for AT as diesel ischeaper than petrol.

Yes6%

No

94%

AT from aftermarket

Yes

No

Petrol

1%

Diesel

99%

Fuel type for AT

Petrol

Diesel


43/49

Q48- Extra price willing to be paid for AT

Very few respondents are willing to pay more than 1 lacs of rupeesextra for AT

< 1L Rs

98%

1L< Rs

2%

Extra price willing to pay for AT

< 1L Rs

1L< Rs


44/49

Chapter 11: Findings and Observations.

Observations:

Very few respondents are aware about PND.

Respondents are found reluctant for the purchase due to high price. Respondents tend to use traditional method to get new places.

Younger people prefers i-pods/USB also multi speaker system are

popular.

No. of users of AT system are less.

AT kits are observed mostly in Luxury Segments.

Respondents believe that manual transmission is more efficient than

AT.

After market ATs are not preferred due to cost factor.

People consider that AT car results in fuel efficiency.

To create positive awareness regarding PND.

People prefers fuel efficient car.

Safety is a major parameter while selecting a car.

Findings:

Some of the facts that are drawn from the data analysis are asfollows:

Our survey has younger respondents, as 59% are from22-30 age

group and 30% from 31-45.

Survey contains 18% of female respondents and 82% of male.

30 % of puneties uses Maruti Suzuki, followed by Tata 23% &

Hyundai 17%.

Most of the respondents preferred safety as a major parameter whilebuying a car followed by mileage, sporty, etc.

There are many reasons for buying car, but most of respondents

bought car for their family.

Most of respondent have bought a car for going to office.

Many of respondents are technology oriented so that they prefer

USB/Bluetooth/i-Pod connectivity with amplifier.

About 56% respondent rated the importance of vehicle security

feature on a scale of 5.


45/49

About 34% of respondents prefer traditional method to ask friends

and relatives to get directions to reach unknown places.

81.6% of respondents havent used any kind of Navigation system

earlier.

90% of respondents do not have any kind of Navigation system to

their car.

Most of the respondents prefer Google Maps as a map data supplier.

85% of respondents prefer touch screen panel over remote control

panel.

78% of respondents would like to enter address directly to get the

directions.

About 63% people would like to use English as display as well as

instruction language. Almost 96% respondents felt that there should be indication of

popular places within the city.

7 inch screen size is preferred by respondents over 10 & 15.

Many respondents are interested in multi speaker system.

60% of respondents would like to have Dolby Digital Surround

System in their car.

Only 4 % of respondents would like to have Automatic transmission

System. About 50% respondents felt that car with manual transmission

provides a better fuel efficiency than with automatic transmission.

Most of the respondents are unaware of AT kit provider.

Almost 59% of respondents felt that High-class luxury cars should

come with automatic transmission.

94% respondents wouldnt go for AT aftermarket as they felt that AT

from aftermarket costs more.

Almost 99 % of respondents prefer diesel as fuel for AT as diesel is

cheaper than petrol.

Very few respondents are willing to pay more than 1 lacs of rupees

extra for AT

Some of the findings related to hypothesis are as follows:


46/49

1)In the test for the first hypothesis, which was aimed at determining

whether: Consumer decisions for luxury car are price sensitive or not.

It was found that 60% of people give preference to price against

40%.

The researcher states as his findings that Price play a crucial role for

purchase decision of car for Indian Consumer.

2) In the test for the Second hypothesis, which was aimed at

determining whether: Increase in Disposable income will affect

buying decision of consumer substantially? From observed data

respondent when asked about the car they would like to buy, the all

of the respondents wish to buy luxurious statement cars. The

researcher states as his findings that increase in disposable income

will result in buying of higher segment cars than they are currently

buying or can buy.

3) In the test for the Third hypothesis, which was aimed at determining

whether: There is significant indifference of all the factors affectingcar purchase decision? The findings showed that there are many

purchase influencer rather than just the price hence there forth all

the factors are/should take in to consideration for car purchase.

4) In the test for the Fourth hypothesis, which was aimed at determining

whether: Electronic components in a car are the first priority in

purchase decision for a car.? The findings help to realize the trend inIndian consumer preference for electronic components in the cars.

Most of the respondents were either unaware or considered them as

costly items and not so much of useful. The researcher states as his

findings that the electronic components are not the first priority.

5) In the test for the Fourth hypothesis, which was aimed at determining

whether: AT (Automatic Transmission) is popular among the people?


47/49

The research showed that most of the respondents dont have An AT

vehicle or they have not driven one. So the AT cars were found to be

not so popular among respondents.

Chapter 12: Conclusion:

Since Indian Automobile market is continuously in the prowl of

surging as a major car manufacturer, people are purchasing car as there is

increase of income of common people as well as change in tastes and

preferences of consumers. It is important for the car manufacturers and car

dealers to be able to understand the different factors affecting the extent in

car purchasing behaviour. People are more conscious about the cars who

serve according to the needs and wants of the customer. The type of

technology used and the wider reach of the service stations also affect the

most on car purchasing decision. The impact of factors of technical

specifications is seemed to affect the purchasing behaviour. The research

focuses on portable navigation device and automatic transmission .The

various factor has shown that awareness about the services available in the

market are not known to the consumers.

Overall, various internal and external factors like extra care

facilities, location of the shops, various information provided by car dealers,

advertisement and print media promotions, features of the car in all are

contributing in making car purchasing behaviour of customers. Some trend

projected that market for the new technology is emerging in India and

manufacturer can find a variety of opportunities here.


48/49

Chapter 13: Suggestions

Apart from luxury car segment, other segment should include AT kit.

After market price of AT kit should be reduced.

Dealers should promote AT cars.

Semi-automatic Transmission for cars is recommended.

Promotional events should be organized. Introductory price should be low for Kit to motivate consumer to buy

product.

For existing potential buyers try to club various features music

system, GPS in one KIT.

Regional languages for local users should be used in PND.

There should be additional LCD entertainment console with music

system.

Touch screen interface for convenient use.

Various Audio/video format should play in music system.

PND at low cost is a recommended.

Chapter 14: Bibliography

1.Marketing research- tools & techniques, Nigel Bradley, 2nd Edition,

Oxford university press.


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2.Research methodology, Prof. M.V.Kulkarni, Everest publishing house.

3.www.3daycar.com/mainframe/publications/library/newcarbuyer.pdf

4.www.consumerpsychologist.com/

5.www.newagepublishers.com/samplechapter/000160.pdf

6.en.wikipedia.org/wiki/Consumer_behaviour7. en.wikipedia.org/wiki/Buyer_decision_processes
http://www.3daycar.com/mainframe/publications/library/newcarbuyer.pdfhttp://www.3daycar.com/mainframe/publications/library/newcarbuyer.pdfhttp://www.3daycar.com/mainframe/publications/library/newcarbuyer.pdfhttp://www.3daycar.com/mainframe/publications/library/newcarbuyer.pdfhttp://www.3daycar.com/mainframe/publications/library/newcarbuyer.pdfhttp://www.3daycar.com/mainframe/publications/library/newcarbuyer.pdfhttp://www.consumerpsychologist.com/http://www.consumerpsychologist.com/http://www.consumerpsychologist.com/http://www.consumerpsychologist.com/http://www.newagepublishers.com/samplechapter/000160.pdfhttp://www.newagepublishers.com/samplechapter/000160.pdfhttp://www.newagepublishers.com/samplechapter/000160.pdfhttp://www.consumerpsychologist.com/http://www.3daycar.com/mainframe/publications/library/newcarbuyer.pdf

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