7/28/2019 CB Towards Car Buying
1/17
Submitted To :
Prof. Sarika Tandon
7/28/2019 CB Towards Car Buying
2/17
INTRODUCTIONProblem Statement:
New Car Buyer Behaviour - Quantifying Key Stages & Activities in theConsumer Buying Process.
Research Objectives: Managing demand.
Understanding influences on timing
of purchase decisions.
Validate current positions on consumer
behaviour.
7/28/2019 CB Towards Car Buying
3/17
Questionnaire Design
To design the buying behaviour of consumer.
The respondents were asked to give the preferenceabout the brand they want.
7/28/2019 CB Towards Car Buying
4/17
Sample Characteristics
Sample consisted of the customers of five CAR companies in Indiaviz. VW,Maruti, Hyundai, Tata, Mahindra
These cars were selected, as they are representative of the majorsegments in the car industry from full fare to low priced cars.
Targeted sample size was 40 per car, and achieved sizes were as follows.
Table 1
Car (Brand) wise Composition of Sample
NO Company Obtained numberof samples
1 VW 39
2 Maruti 40
3 Hyundai 35
4 Tata 38
5 Mahindra 36
7/28/2019 CB Towards Car Buying
5/17
7/28/2019 CB Towards Car Buying
6/17
DATA ANALYSIS & RESULTS
The statistical analyses used were ANOVA, Regressionanalysis, Factor analysis.
Analysis of research data used the level of significance, a =
0.05.
The objective of this study was to examine customerperception of service quality.
ANOVA was performed and the result showed a significant
difference among the five car companies in India viz. VW,
Maruti, Hyundai, Tata, Mahindra
7/28/2019 CB Towards Car Buying
7/17
Testing for Significance: FTest
The Ftest is used to determine whether a significantrelationship exists between the dependent variable and theset of all the independent variables.
The Ftest is referred to as the test for overall significance.
7/28/2019 CB Towards Car Buying
8/17
Testing for Significance: FTest
Hypotheses
H0:1 =2 = . . . =p = 0
Ha: One or more of the parameters
is not equal to zero.
Rejection Rule
Reject H0 ifF > F
where F is based on an F distribution withp d.f. in
the numerator and n -p - 1 d.f. in the denominator.
7/28/2019 CB Towards Car Buying
9/17
As adjusted square is 0.004, it implies that 0.4% of variance ofthe dependent variable is explained by independent variable.
As R= 0.182, it explains a very weak correlation.
H0:1 =2 = . . . =p = 0
Ha: One or more of the parameters
is not equal to zero.
p = 0.285p= .05
Since p > p we accept the null hypothesis and our model isnot good.
7/28/2019 CB Towards Car Buying
10/17
Testing for Significance: tTest
Hypotheses
H0:i = 0
Ha:i = 0
Rejection RuleReject H0 ift < t or t > t
where tis based on a t distribution with
n -p - 1 degrees of freedom.
7/28/2019 CB Towards Car Buying
11/17
H0:i = 0Ha:i = 0
p = 0.000
p < .05
Since p < 0.05, we reject the null hypothesis.
7/28/2019 CB Towards Car Buying
12/17
K.M.O Test
If two variables share a common factor with othervariables, their partial correlation (aij) will be small,indicating the unique variance they share.
Used to measure sampling adequacy.
This index is used to measure the appropriateness of thetest .
High values (.5 1) means factor analysis is adequate.
7/28/2019 CB Towards Car Buying
13/17
Interpretation of the KMO as characterized by
Kaiser, Meyer, and Olkin
KMO Value Degree of Common Variance
0.90 to 1.00 Marvelous
0.80 to 0.89 Meritorious
0.70 to 0.79 Middling
0.60 to 0.69 Mediocre
0.50 to 0.59 Miserable
0.00 to 0.49 Don't Factor
7/28/2019 CB Towards Car Buying
14/17
Kaiser-Meyer-Olkin Measure of Sampling adequacy 0.524
Barletts Test of Sphericity Approx. Chi Square 79.957
df 28
Significance 0.0000
KMO and Bartletts Test
Since the value of KMO is 0.524, therefore it implies that
the degree of variance is very bad, in fact the variables do
not factor with the other variables.
7/28/2019 CB Towards Car Buying
15/17
Limitations
The findings of this study are limited to the behaviour of the consumer
towards car in India.
This study has not considered industry measures to measure service quality.
We have measured only the customer perception of service quality.
7/28/2019 CB Towards Car Buying
16/17
Conclusion
Timing of orders & delivery bias towards weekends
Fridays for collectionSaturdays for order
supports dealer research
Differences between men & women
females less willing to wait
reference growth in female motorists & change in
relative influence & role
Information Sources
Dealer still critical
Friend, Brochure, Magazine4 different sources of information
growth of internet now nearly 20%
Research suggests that the consumer demand for a Car would bestrong
7/28/2019 CB Towards Car Buying
17/17