RESEARCH PROPOSAL

SUBMITTED BY Shishir Mathur Summer Intern (Marketing) Balaji Institute of Modern Management, Pune

DEFINE RESEARCH PROBLEM

India loan market is estimated to generate Rs 9,324.3 billion in 2011 and is expected to reach Rs 21,980.6 billion by 2016 with a CAGR of 18.7% from 20112016. The loans which constitutes and plays a crucial role in Indian loan market includes home loans, education loan, auto loan, personal loan, consumer durable loan and much hyped gold loans. According to TechSci Research, in 2010, home loan holds the largest market share of 46.1% in Indian loan market. Declining interest rates, flexibility to repay, increased dwelling of housing societies have led for its growth. Home loans in Pune are considered as a lifeline for the people buying a house in the city. Not just the real estate prices but also the construction and renovation prices of your house have gone up. This has prompted the banks to come up with home construction loans and home renovation loans. In order to identify untapped market opportunities, their changing customer preferences and requirements are required to be studied.

PRIMARY RESEARCH OBJECTIVE (PRO)

To determine the customer preferences and requirements for housing finance products provided by the top 5 lenders in Pune city.

SECONDARY RESEARCH OBJECTIVES (SRO)

1. To understand whether various customer behavior factors (Cultural, Social, Personal & psychological) have significant impact on its buying pattern for home loans. 2. To determine the effect of interest rates on the customer buying behavior for home loans.

3. To understand the effect of time factors (processing time, disbursement time, prepayment period, etc.) on the customers buying behavior. 4. To determine whether promotion & advertisements have significant impact on customers buying decision for home loans. 5. To determine the purpose of requirement for a home loan by the customer.

MODEL DEVELOPMENT
P/O AND SITUATIONAL ANALYSIS Rate of interest (ROI) Product Features Time factors Promotion & Advertisements Consumer Buying Factors WEIGHTAGE
0.25 0.22 0.20 0.18 0.15

SPECIFICATIONS
P/O & SITUATIONAL ANALYSIS Rate of interest (ROI) Product Features Time factors Promotion & Advertisements Consumer Buying Factors SPECIFICATIONS Fixed rate, Floating rate Repayment period, Margin Processing time, Disbursement time Sales Promotion Schemes, Advertising Methods. Cultural, Social, Psychological, Behavioral.