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Consumer Buying Behavior Towards Maruti Swift and Ford Figo
Consumer Buying Behavior Towards Maruti Swift and Ford Figo
on
Abhinav Gupta
th
Dated: 28 April, 2014
UIET,Panjab University, Chandigarh
CERTIFICATE OF APPROVAL
This is to certify that Mr.Gur Gaurav Singh,Mr. Munish Kumar, Mr. Abhinav
th
Gupta students of BE-MBA (10 Semester) UIET,Panjab University have done a
research project titled “Consumer Buying Behavior Towards Maruti Swift and
Ford Figo”, under my supervision in partial fulfilment of the Masters in Business
Administration.
Their work is original and up to my satisfaction. This project has not been
submitted anywhere else for the award of any degree or diploma.
We thank and sincerely acknowledge the support of all the people who have
given contribution to this research.
INTRODUCTION TO THE TOPIC
There are many car companies which provide the 1200 cc car variants in to
the market. Maruti Suzuki dominates in this segment; Tata Motors is at the
second place, while Hyundai and many other car companies provide their
1200 cc car variants in the market, the details of which are as given below:
The objective of the research is to find whether the customers have faith in Indian
manufacturers or they prefer multinationals while purchasing a car. Here, are trying
to compare one car of Indian origin i.e. Maruti Suzuki Swift to that of Ford Ford(
German Manufacturer).Both of the cars are 1200 cc/compact cars having the same
price range and both cars belong to the Hatch back class of cars.
We are preferring Maruti Suzuki to other Indian brands like Tata motors and
Mahindra because of the price difference of the cars like Tata vista and Mahindra
Verito than that of Ford Figo and all cars don‟t belongs to the same category.
Vista and Verito belongs to the Sedan class while figo belongs to the Hatch back
class.
Henceforth, we narrowed down our research to Maruti Swift and Ford Figo.
The Indian market, one of the most promising in the world, is fast evolving. So is
the Indian consumer, across all socioeconomic strata, regions and town classes.
Rising incomes, multiple income households, exposure to international lifestyles
and media, easier financial credit and an upbeat economy are enhancing
aspirations and consumption.
The study will help in determining the factors which have a major influence on
consumer buying behaviour for domestic cars over multinational cars. This study
will help companies to project their car products according to the factor which
have a major influence on consumer buying behaviour.
70
60
50
40
frequency
30 percentage
20
10
0
Indian Multinational
Figure 3 Frequency distribution of the respondents having Indian and multinational cars in the sample
Table 1 Frequency distribution Table of the respondents having Indian and multinational cars in
the sample
Total 53 100
Satisfaction level of the people who own Indian and multinational cars in
the sample
100
90
80
70
60
50 frequency
percentage
40
30
20
10
0
Indian multinational
Figure 4 Frequency distribution of the satisfaction level of people having Indian and multinational
cars in the sample
Table 2 Frequency distribution Table of the satisfaction level of people having Indian and multinational
cars in the sample
Total 53 100
People willing to switch their cars from Indian to multinational or vice versa.
Some people have a versatile personality always prefer or welcome
change whole heartedly.
70
60
50
40
Frequency
30 percentage
20
10
0 willing to switch from Indian to global willing to switch from global to Indian
Figure 5 Frequency distribution of the satisfaction level of people having Indian and
multinational cars in the sample
Table 3 Frequency distribution Table of the satisfaction level of people having Indian and
multinational cars in the sample
1. Passenger comfort
2. Driving pleasure and ride quality
3. Reliability,
4. Engine performance
5. Stability at higher speed
6. Leg space
Since, all the factors won‟t be equally important in the definition of the desired
variables, so we applied factor analysis tool to identify the most important of
these factors.
The KMO coefficient value of 0.845 (greater than 0.7), signifies that our model explains
84.5 % of the variance.
Also since the p value for the model is 0.001, this means that the model is significant at
99% level of confidence interval.
Using factor analysis, we extracted the following 2 set of components:
1. Discounting policy.
2. Fuel efficiency.
Please find the factor loadings from Table A.1 and correlation among the 2 components
from Table A.2 of Appendix A.
The components are extracted on the basis of the value of individual factor loadings of
the 4 variables considered on the 2 components extracted.
From table , we conclude that the two components extracted explain 83.648% of
the variance in the data which is significantly high and acceptable.
5.2 Identifying key factors/ traits defining desired comfort:
Table 12 : : KMO and Bartlett’s test for the model
The KMO coefficient value of 0.780 (greater than 0.7), signifies that our model explains
78.0 % of the variance.
Also since the p value for the model is 0.001, this means that the model is significant at
99% level of confidence interval.
2. Reliability
3. Engine performance
Please find the factor loadings from Table A.3 and correlation among the 4 components
from Table A.4 of Appendix A.
The components are extracted on the basis of the value of individual factor loadings of all
the 6 variables considered on the 4 components extracted.
Table 13 : Total Variance Explained by the extracted components
From table , we conclude that the five components extracted explain 77.495% of the
variance in the data which is significantly high and acceptable.
Please find the factor loadings from Table A.5 and correlation among the 5 components
from Table A.6 of Appendix A.
The components are extracted on the basis of the value of individual factor loadings of
the 4 variables considered on the 2 components extracted
From table 15, we conclude that the 2 components extracted explain 86.564% of the
variance in the data which is significantly high and acceptable.
5.4 Identifying key factors/ traits defining Service and maintenance:
The KMO coefficient value of 0.845 (greater than 0.7), signifies that our model explains
84.5 % of the variance.
Also since the p value for the model is 0.001, this means that the model is significant at
99% level of confidence interval.
Please find the factor loadings from Table A.1 and correlation among the 2 components
from Table A.2 of Appendix A.
The components are extracted on the basis of the value of individual factor loadings of
the 3 variables considered on the 1 component extracted.
Table 17 : Total Variance Explained by the extracted components
From table 7, we conclude that the four components extracted explain 83.648% of
the variance in the data which is significantly high and acceptable.
The KMO coefficient value of 0.780 (greater than 0.7), signifies that our model explains
78.0 % of the variance.
Also since the p value for the model is 0.001, this means that the model is significant at
99% level of confidence interval.
Using factor analysis, we extracted the following 5 set of components:
1. Previous experience
2. Opinion of family member
Please find the factor loadings from Table A.3 and correlation among the 5 components
from Table A.4 of Appendix A.
The components are extracted on the basis of the value of individual factor loadings of all
the 3 variables considered on the 2 components extracted.
From table , we conclude that the 2 components extracted explain 77.495% of the
variance in the data which is significantly high and acceptable
Consumer Buying Behaviour
Which car would you like to own/buy? *
o Maruti Swift
o Ford Figo
o Toyota Etios Liva
o Hyundai i20
o Others
Rate the factors you pay consideration to, while purchasing a car? *
Strong Strongly
Disagree Neutral Agree
Disagree Agree
Word of
mouth
Advertisement
Status Symbol
Brand Image
Reliability
Availability of
Test drive
Exterior and
Looks
Safety and Breaking *
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Power dock
Locks
Anti-theft
alarm
Seat belt
warning
Defog
Availability
Comfort *
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Rear
Power
Window
Automatic
climate
control
Bottle
Holder
Sunroof
Foldable
seats
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Lesser
Cash
Down
Payment
Lesser
EMI
Provision
of full
payment
in cash
Services *
Strongly Strongly
Disagree Neutral Agree
Disagree Agree
Customer
Relationship
Spare parts
availability
Service
Stations
Lesser time
to service
Cost of
Service
Salesperson
Maintenance Required *
o 2-3 times a year
o 3-5 times a year
o 5-7 times a year
Personal Details
This page contains information about personal details. The information is
only for the academic purpose and will be kept secret
Name
Age *
<18
18-25
25-35
35-50
>50
Annual Income *
<1,00,000
1,00,000-3,00,000
3,00,000-5,00,000
5,00,000-10,00,000
>10,00,000
Not Working
Marital Status *
Single
Married