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REPORT ON BUYING BEHAVIOUR

OF HONDA JAZZ
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PGP 2010-12

6UBMITTED TO: 6UBMITTED BY:

Mr. Nitin Malik Abhishek Kumar Singh
Akash Bhatnagar
Ankit Tomar
Ankita Mishra
Rashmi Jha
Shravan Pandey
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ACKNOWLEDGEMENT
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The report submitted is an outcome of the complete team efforts done by

the group members. Also we would like to thank our MARKETING
RESEARCH teacher Mr. Nitin Malik to deliver the best Conceptual
knowledge in the class without which we could not have maintained a
fluent Work. Last but not the least we would like to thank all the persons
who contributed by their opinion and suggestion on the data survey form
given to them .
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TABLE OF CONTENT6
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0LIST OF TABLE USED

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0EXECUTIVE SUMMARY

0 PROBLEM DEFINITION

0 RESEARCH DESIGN

0 DATA ANALYSIS

0RESULTS

0LIMITATIONS

0 CONCLUSION AND RECOMMENDATION

0 REFERENCES

0QUESTIONNAIRE FORMAT

0STATISTICAL OUTPUT

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LI6T OF TABLE6 U6ED

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In the following survey we have used chi square technique for the data
analysis part the tables used to compare the attributes are given as
follows-

0Usage by gender
0Income by gender
0Segment by gender
0Usage by income
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EXECUTIVE 6UMMARY
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0Major findings in our survey is that if we consider gender wise than we

configured from the report that there are more in number of female users
than their male counterparts who use Honda Jazz.

0Then comes the income part in which we have found out that income
slab of 6-10 lakhs in both the gender has considered more usage of
Honda Jazz.

0In this we have found out that in this case positioning of jazz is
advantageous as people were able to remember the segment correctly
even those people also who hasn¶t considered Jazz.

0 Irrespective of gender people who own Honda Jazz fall in the income
slab of 6-10 lakhs.

0From the research we concluded that Positioning strategy of Honda

Jazz is not totally non uniform but in some cases their strategy has
worked out well like in case where we have asked people about the
segment to which Honda Jazz falls in and maximum people have
recalled and mentioned it correctly.
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PROBLEM DEFINITION
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MANAGEMENT DECI6ION PROBLEM

0Why Honda Jazz is loosening fizz in competition not only to others of

same segment but also to its Honda brand ³city´.
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MARKET RE6EARCH PROBLEM

0To determine the buying behavior of Honda Jazz in the market on the
basis of parameters like gender and income.c
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Problems which management is facing while positioning:

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On the basis of secondary data collected we have found out the

following:

Company wants to launch their product for the general people but due
to the high price only premium class people are able to purchase this car
Even though 50,000 enquiries for Jazz since its launch in June, the
conversions have only been around 4,000, whereas in case of City the
enquiries and conversions are both on an upswing. In fact, Jazz has
helped increase the volumes for City,´ City, a saloon, cost Rs 1.25 lakh
more than Jazz.
Jazz sales have been declining month on month. In June it were a little
above 2,000 units, 1,037 in July, 1,029 in August and just 504 units in
September. c
The problem with Jazz is its exorbitant pricing, due to which it is not
only helping the customers go in for City by paying a lakh more but its
is also making other cars in its competition like Hyundai i20 and Skoda
Fabia look good.
The other thing is the saloon versus the hatchback phenomena, people
are seeing more value in City and they wouldn¶t mind paying a little
extra and get a saloon over a hatchback. According to the information
³The market for premium hatchbacks is still very small in India and the
pricing of Jazz plays to its disadvantage.´
Besides the car being extremely expensive, it is also underpowered with
a 1.2 litre engine.
³A typical customer who has a sub Rs 5 lakh hatchback and is looking
for an upgrade with Rs 8 lakh budget will naturally go in for a better
powered City with a 1.5 litre engine than spending a huge amount to
again purchase a hatchback. On the other hand, if we look at City,
which is in the Rs 8 lakh plus segment, the only other competition is
from Fiat¶s Linea.
After the initial spurt in Linea sales, there is a slump as it is
underpowered with a 1.3/1.4 liter engine, thus boosting City sales
again.´
A Honda dealer, who did not wish to be named, said that since the
launch of Jazz, they have witnessed a 30% increase in City sales.
³People come enquiring for Jazz but ultimately settle down for City,
especially after the refreshed version of the same was launched in
September. However, in the last few days we are seeing the upgrades
from Jazz to City are reducing, maybe people have started to understand
what the Jazz category is.´
Honda Siel had been operating on a single shift since last year due to
declining sales, and According to Sen, ³since September we have
resumed operating on double shift as we are facing delivery constraints,
which is adding to our backlog. City, which constitutes close to 70% of
our total sales volumes, has a backlog of three weeks. Currently, the
company in a single shift produces 5,000 units monthly.
Sen said, ³The situation is better now but still very fluid. In June we had
reduced production of City in order to meet the demand for Jazz.c
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RE6EARCH DE6IGN
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The nature of our research design is causal research, as we tried to find

out what new can be done to push the product (Jazz), in the market the
report requires knowledge of secondary data which we have discussed
about in the beginning itself the sales figures and what are all its factors
in deciding the declining of sales in the market has been well explained
in the report.c
There are basically two types of scaling techniques one is comparative
and other is non-comparative, in comparative the researcher asks the
respondent to compare the features of two or more products for eg.
Which car do you prefer in this all the cars in the given segment can be
compared and in non comparative scaling analysis is done on the
product features basis and not on comparative basis. Eg.whether the
people are happy with the after sales value of Honda Jazz or not.
ccThe research includes mainly likert scaling like we have asked the
customers rate the features of Honda Jazz on scale basis like:
 1-strongly agree, 5-strongly disagree
Then we have used ordinal scale by asking questions like which is your
Most preferred car in the hatchback segment rate it according to you.
Then we have used ratio scale in which we have asked the respondents
about their income slab.c
The data from the primary sources were collected in the questionnaire
that was distributed in the form of hard copy & was a direct approach.
The secondary data were mostly collected from the Automobile
magazine articles & official website of Honda & its related websites .c
The questionnaire was made short, keeping in mind that people may not
lose interest while filling up the questionnaire. Also the questions were
kept in a very comprehensive method. The personal information
required for the questionnaire was putted in a way that could be filled
without much of hesitations. It was designed in a very concise manner
through which it was easy to derive the conclusion required. Once the
questionnaire was prepared, it was checked from the faculty at iilm &
was modified for the betterment of the survey again.c
The pretesting was conducted with a closed group of people with whom
it can be critically observed any further modifications.
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The sampling was targeted on the part of the population which was
expected to be well informed about the product & should be able to
answer the questionnaire. The sample size was kept short i.e. 66 so that
it was more viable to build the structure of the conclusion to be derived
from the qualitative questions. The survey was conducted in the areas
well dense with the required sample size.

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 DATA ANALY6I6

PlAN OF ACTIONc
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Management Decision Problem-We started with management

decision problem by discussing about what are the problems faced by
the measurement while pushing Honda Jazz in the market.c
Market Research Problem- In market research problem we discussed
about what all can be done to improve the positioning strategy of Honda
Jazz .c
6econdary Data Collection- In this we have collected the secondary
data about the problem definition which is available in the internet with
facts and figures which is being mentioned above.c
 estionnaire Preparation and Pretesting- After preparation of the
questionnaire we have done pretesting and made some changes to it
also.c
Primary Data Collection And Field Work- Primary data is been
collected through the questionnaire in which we have taken a sample
size of sixty six and we compared the attributes such as usage ,income
,segment,after sales service etc.
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Data Analysis Using 6P66- After collecting and entering the data using
SPSS we have used chi-square as our comparable factor and compared
different attributes like gender with usage ,gender with income etc.
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RE6ULT6
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Gender does not play any role in the buying behavior of Honda Jazzc
0According to the chi-square table the value comes out to be 0.310
which is less than 0.05 so the null hypothesis is not rejected hence
gender does not plays any role in buying behavior of Jazz.c
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- On the basis of frequency table which is shown in the statistical

output page it is been found out that the income plays an
important role in buying behavior of Honda Jazz ,on this basis we
also found out that specially the income slab of 6-10 lakhs are
more concern about the buying behavior of Honda Jazz.
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-One more thing we found out from the respondents that

maximum people were able to recall about the Jazz like it is
positioned in hatchback segment even those who don¶t have Jazz
they were also able to recall that which segment it is falling in.
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LIMITATION6c
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The study had the limitation of absence of a direct approach with the
organization so the information could not be verified & forwarding of
the report & suggestions was not possible. Also due to the limited time
frame it was not possible to go deep in the problem or to find its perfect
solution. There was also a limitation of the sample size of the desired
kind.
Due to the lack of reach of area that can be covered the result may fail to
tell the trends of the large geographical area.c
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CONCLU6ION AND RECOMMENDATION

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Finally we concluded from the survey conducted is that there is no

gender biasness towards buying behavior of Honda Jazz ,female are
more interested in Jazz than male, another that which we concluded
from our survey is that the majority income level which shows the
buying behavior comes under an income slab of 6-10 lakhs.c

Based on our findings in the project the management can seriously think
upon firstly the pricing issue then the attractiveness towards female
which is more rather than male population.

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REFERENCE6c

1.c http://www.hondacarindia.com/jazz/index.aspx

2.chttp://www.smokeriders.com/History/Honda_History/body_honda
_history.html

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