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A Project Report: Faculty of Management Studies
A Project Report: Faculty of Management Studies
ON
Submitted By.
NEHA PRADHAN
SESSION: 2015-16
I the undersigned solemnly declare that the report of the research work “A STUDY ON FACTOR
BHILAI” is based on my own work carried out during the course of my study under the supervision of Mr.
RISHI TRIPATHI
I assert that the statements made and conclusions drawn are an outcome of my research
work. I further declare that to the best of my knowledge and belief the report does not contain any
part of any work which has been submitted for the award of MBA degree or any other
NEHA PRADHAN
Enrollment No: AS3072
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the work incorporated in the report “A STUDY ON FACTOR INLUENCING
CUSTOMER PURCHASE INTENSION TOWARDS HONDA ACTIVA IN DURG-BHILAI” is a
record of research work carried out by Ms. NEHA PRADHAN bearing Roll No.:5377615076 under
my/our guidance and supervision for the part fulfillment for the award of MBA Degree of
Chhattisgarh Swami Vivekanand Technical University, Bhilai (C.G.), India.
iii) Is up to the desired standard both in respect of contents and language for external viva.
Asst. Professor
Acknowledgement
I have taken efforts in this project. However, it would not have been possible without the kind support and
help of many individuals and organizations. I would like to extend my sincere thanks to all of them.
I am highly indebted to Mr. Rishi Tripathi for their guidance and constant supervision as well as for
providing necessary information regarding the project & also for their support in completing the project.
I would like to express my gratitude towards members of HONDA ACTIVA for their kind co-operation and
encouragement which help me in completion of this project. I would like to express my special gratitude and
thanks to organization person for giving me such attention and time.
My thanks and appreciations also go to my colleague in developing the project and people who have
willingly helped me out with their abilities.
TABLE OF CONTENT PAGE NO.
References
Appendices
a. Questionnaire.
CHAPTRE- 1:
6
INTRODUCTION OF THE STUDY
The two wheeler industry has been going steadily over the years all
over the world. India is not an exception for that. Today India is the second
Japan and China in terms of number of two wheelers produced and sold. Until
1990 geared scooters dominated the two wheelers market so much so that
their sales equaled the combined sales of Motor cycles and Mopeds.
Activas and also to an extent to the premium end scooters. With rising
fuel cost and more recently stringent emission norms imposed by the
Honda story is the story of one man, Soichiro Honda, and his unparalleled
and began producing small Activas, including one built in 1949 called the
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D-Type Dream.
He also loved racing too. So his company built bigger and faster
machines, two, four, five and six-cylinder race Activas and won the Isle of Man.
Honda's first Activa was born out of necessity in immediate post World
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CHAPTER-2
Company Profile
9
Honda is the world’s largest manufacturer of two Wheelers , Recognized the world
over as the symbol of Honda two wheelers , the ‘Wings’ arrived in India as Honda
Activa and Scooter India Pvt. Ltd. (HMSI ), a 100% subsidiary of Honda Motor
Company Ltd., Japan ,in 1999. Since its establishment in 1999 at Manesar, District
Gurgaon, Haryana, Honda has lived up to its reputation of offering the highest quality
at the most reasonable price. Despite being one of the youngest players in the Indian
two-wheelers market, Honda has become the largest two wheeler manufacturer as
Honda is also the fastest growing company in country today. With a host of facilities
under its wings, the first factory of HMSI is spread over 52 acres including a covered
area of about 100,000 sq. meters in Manesar, District Gurgaon, Haryana with an
annual capacity of 1.65 million units. To meet the ever increasing demands of the
products, Honda has started operations of its second plant in Tapukara, District
jumped 30% year on year to 2.8 million per annum in FY 12- 13.
Manesar & Tapukara plants as starting point, the 3rd plant is employed with state-of-
quality products.
10
On October 16 2014, Honda announced the “World’s largest only scooter plant" at
Vithalapur Gujarat. Fourth plant will become operational by end of 2015 with annual
capacity of 1.2 million units. The new plant will employ approximately 3000 people
within first 2 years of commercial production and will entail INR 1,100 crores
investment.
almost three million Activas annually. By 2006 this figure had reduced to
around 550,000 but was still higher than its three domestic competitors.
During the 1960s, when it was a small manufacturer, Honda broke out of the
Japanese Activa market and began e>porting to the U.S. Working with
marketing campaign, using the slogan "You meet the nicest people on a
Activas were made for the everyman. The campaign was hugely
successful: the ads ran for three years, and by the end of 1963 alone, Honda
story of their market entry, and their subsequent huge success in the U.S. and
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around the world, has been the subject of some academic controversy.
The first of these explanations was put forward when, in 1975, Boston
report explaining why and how the British Activa industry had been out-
Japanese firms, including l-bnda, had sought a very high scale of production
economies of scale and learning curve effects. I blamed the decline of the
business. The growth of the two wheelers sector was noteworthy in the past
few years. In the period 2006 - 07 the total number of the two wneelers and
three wneelers produced in hdia. were around 9 million. The sales pertaining
to two wheelers in the period 2006 - 07 was 7.857.548. which was a growth of
11.41 %. h the same period the Activa exports from hdia was 321.321
units.
12
YAMAHA Motor India Pvt. Ltd.
LML(India) Ltd.
PRODUCT PROFILE
Production 22001-Present
Wheelbase : 1238 mm
13
CHAPTER-3
LITRATURE REVIEW:
14
Marketers need to understand more in depth on the factors that may attract and influence
consumer when they have a desire to purchase a product so they can build strong and long
relationship with customer. When it comes to purchase a Honda activa, there are many
factors and element that might influence and affect purchasing decision. There are some
findings and arguments from the researchers. Buyer decision processes are the decision
making processes undertaken by consumers in regard to a potential market transaction before,
during, and after the purchase of a product or service.
More generally, decision making is the cognitive process of selecting a course of action from
among multiple alternatives. Common examples include shopping and deciding what to eat.
Decision making is said to be a psychological construct. This means that although we can
never "see" a decision, we can infer from observable behaviour that a decision has been
made. Therefore we conclude that a psychological event that we call "decision making" has
occurred. It is a construction that imputes commitment to action. That is, based on observable
actions, we assume that people have made a commitment to effect the action.
Behind the visible act of making a purchase lies a decision process that must be
investigated.
The purchase decision process is the stages a buyer passes through in making
choices about which products and services to buy.
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1. Need recognition,
2. information search,
3. alternative evaluation,
4. purchase decision, and
5. post-purchase behavior.
1. Need recognition:-
The need recognition is the first and most important step in the buying process. If there is
no need, there is no purchase. This recognition happens when there is a lag between the
consumer’s actual situation and the ideal and desired one. However, not all the needs end
up as a buying behavior. It requires that the lag between the two situations is quite
important. But the “way” (product price, ease of acquisition, etc.) to obtain this ideal
situation has to be perceived as “acceptable” by the consumer based on the level of
importance he attributes to the need. For example, you have a pool and you would like
someone to take care of regularly cleaning it instead of you (ideal situation) because it
annoys you to do it yourself (actual situation). But you don’t judge the “way” to reach this
ideal situation (pay $250 / month for a specialized company) as “acceptable” because its
price to obtain it seems too high. Especially compared to the relatively low level of
importance you attach to it. So you won’t have a purchase behavior in this situation.
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The customer feels that some product is desired to satisfy the emerging need. If it is hunger,
food is desired. Depending upon the type of need, the related satisfiers would be reached.
2. Information search:
Once the need is identified, it’s time for the consumer to seek information about possible
solutions to the problem. He will search more or less information depending on the
complexity of the choices to be made but also his level of involvement. (Buying pasta
requires little information and involves fewer consumers than buying a Honda activa)
Then the consumer will seek to make his opinion to guide his choice and his decision-making
process with:
During his decision-making process and his Consumer Buying Decision Process, the
consumer will pay more attention to his internal information and the information from
friends, family or other consumers. It will be judged more “objective” than these from an
advertising, a seller’s speech or a commercial brochure of the product.
3. Alternative evaluation:
Once the information collected, the consumer will be able to evaluate the different
alternatives that offer to him, evaluate the most suitable to his needs and choose the one he
think it’s best for him.
In order to do so, he will evaluate their attributes on two aspects. The objective characteristics
such as the features and functionality of the product but also subjective perception
and perceived value of the brand by the consumer or its reputation.
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4. Purchase decision:
Now that the consumer has evaluated the different solutions and products available for
respond to his need, he will be able to choose the product or brand that seems most
appropriate to his needs. Then proceed to the actual purchase itself.
His decision will depend on the information and the selection made in the previous step
based on the perceived value, product’s features and capabilities that are important to him.
But his Consumer Buying Decision Process and his decision process may also depend or be
affected by such things as the quality of his shopping experience or of the store (or online
shopping website), the availability of a promotion, a return policy or good terms and
conditions for the sale.
5. Post-purchase behavior:
Once the product is purchased and used, the consumer will evaluate the adequacy with his
original needs (those who caused the buying behavior) and whether he has made the right
choice in buying this product or not. He will feel either a sense of satisfaction for the
product (and the choice) or, on the contrary, a disappointment if the product has fallen far
short of expectations, an opinion that will influence his future decisions and buying
behavior. If the product has brought satisfaction to the consumer, he will then minimize
stages of information search and alternative evaluation for his next purchases in order to
buy the same brand which will produce customer loyalty.
B) Factors:
Price
Design
Fuel efficiency
Powerful engine
Pick up
Warranty
Comfort
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Financing scheme
Internal space
Safety
After sales service
Models/Variants
Brand image
Colour
Availability
Innovative Technology
Maintenance cost
Durability
Resale value
Promotional offers.
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CHAPTER-4
RESEARCH METHODOLOGY
20
OBJECTIVE OF THE STUDY
o The main objective of the study is to find out the level of satisfaction
21
o part of their customers.
RESEARCH PLAN
Sample Size 50
conditions for collection and analysis of Data in a manner that aims to combine
blueprint for collection, measurement and analysis of data. My research design will
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Population of the study Youth of Raipur will be included in population
details. person-al details were included in the question which consisted of name,
age, income , occupation, etc. Core details include questions relating to HONDA
ACTIVA and the responses given by the respondents, which has formed a basis for
giving suggestions
Sampling Size: It is the total number of respondents targeted for collecting the data
for the research Sample size of 50 persons will be taken for this research
Sampling Plan: simple Random technique will be used in this research project.
Descriptive Research:
Descriptive Research has been used; it involves surveys and fact – finding senquirer
of different kinds the major purpose of descriptive research is the description of the
state of affairs, as it exists at present. The main characteristics of this method are
that the researcher has no control over the variable; he can only report what has
happened or what is happening. The methods of research utilized in descriptive
research are survey methods of all kinds, including comparative methods
Data Collection:
Primary Data:
Primary data has collected directly from customers through structured questionnaires
(Individual sample units)
23
Secondary Data:
Secondary data has collected from the various magazines, website of Hondaactiva
various websites.
Sample Size:
Our Sample size was 50, who fulfill the basis criteria customers with Honda active.
Research Instrument:
Appropriately designed questionnaire to facilitate self-administered surveys with simple
standard questions were used to collect data.
Structure of Questionnaire:
The questions formulated were structured and non-disguised. The questions were
asked in order to get all the necessary information and to see that the respondents
could answer them with case. This pattern adopted facilitated in analyzing the data.
Simple Random Sampling:
In this method, each item in the population has the same probability of being
selected as part of the sample as any other item. For example, a tester could
randomly select 5 inputs to a test case from the population of all possible valid inputs
within a range of 1-50 to use during test execution, To do this the tester could use a
random number generator or simply put each number from 1-50 on a slip of paper in
a hat, mixing them up and drawing out 5 numbers. Random sampling can be done
with or without replacement. If it is done without replacement, an item is not returned
to the population after it is selected and thus can only occur once in the sample.
Hypothesis:
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H8- Financing scheme has significant influence on purchase decision of
Honda activa.
H9- Internal Space has significant influence on purchase decision of Honda
activa.
H10- Safety has significant influence on purchase decision of Honda activa.
H11- After sales service has significant influence on purchase decision of
Honda activa
H12- Models has significant influence on purchase decision of Honda activa.
H13- Brand image has significant influence on purchase decision of Honda
active.
H14- Colour has significant influence on purchase decision of Honda active.
H15- Availability has significant influence on purchase decision of Honda
aciva.
H16- Innovative technology has significant influence on purchase decision of
Honda active.
H17- Maintenance cost has significant influence on purchase decision of
Honda activa.
H18- Durability has significant influence on purchase decision of Honda activa.
H19- Resale value has significant influence on purchase decision of Honda
activa.
H20- Promotional offers has significant influence on purchase decision of
Honda activa.
Demographic characteristics of the respondents
Age
18-24 33
Age
24-30 13
30-36 4
Total 50
25
Income
< 1 Lakhs 4
Income
1-5 Lakhs 29
>5 Lakhs 17
Total 50
26
Chapter 5
27
The respondents were so selected that they were representative of various
segments of Activa
- Educational institutes
- Vehicle showrooms
-Malls
-Residential areas.
Social Sciences) parameters were defined on a SPSS variable viewer. The next step
was
to run the SPSS and acquire specific results pertaining to the research done.
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Age
18-24 32
Age
24-30 13
30-36 5
Total 50
Age
18-24 24-30 30-36
10%
26%
64%
INTERPRETATION
I have concluded that is 64% (18-24) are mostly prefer HONDA ACTIVA, 26% (24-
30) are less purchasing compare to 64% and 10% are (30-36) less prefer HONDA
29
Income
Group
< 1 Lakhs 3
Income
1-5 Lakhs 30
>5 Lakhs 17
Total 50
Income Group
< 1 Lakhs
6%
>5 Lakhs
34%
1-5 Lakhs
60%
INTERPRETATION
I have concluded that is 1- 5 lakhs (60%) & >5 (34%) lakhs income group are mostly
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PRICE
1- I would prefer HONDA ACTIVA because of its price (value for the money).
Disagree
13 24 9 3 1
Value of Money
Strongly Agree Agree Neutral Disagree Strongly Disagree
2%
6%
26%
18%
48%
INTERPRETATION
I have concluded that is 48% of the customer Strongly agree , 26% are Agree, 18%
are Neutral, 6% are Disagree And 2% Are strongly Disagree agree on value for the
money while considered choosing a HONDA ACTIVA from above pie chart.
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2- I prefer to pay more for new model of HONDA ACTIVA in future
Disagree
17 14 12 4 3
6%
8%
34%
24%
28%
INTERPRETATION
I have concluded that is 34% of the customer Strongly agree , 28% are Agree, 24%
are Neutral, 8% are Disagree And 6% Are strongly Disagree for new model while
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3- Price is an important factor for me while purchasing HONDA ACTIVA.
Disagree
4 11 10 20 5
Price
Strongly Agree Agree Neutral Disagree Strongly Disagree
10% 8%
22%
40%
20%
INTERPRETATION
I have concluded that is 8% of the customer Strongly agree , 22% are Agree, 20%
are Neutral, 40% are Disagree And 10% Are strongly Disagree for Price while
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BRAND
Disagree
23 17 6 3 1
Brand Name
Strongly Agree Agree Neutral Disagree Strongly Disagree
2%
6%
12%
46%
34%
INTERPRETATION
I have concluded that is 46% of the customer Strongly agree , 34% are Agree, 12%
are Neutral, 6% are Disagree And 2% Are strongly Disagree for brand name while
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2-Is comparatively the best when compared to other brand?
Disagree
14 20 12 3 1
Comparison
Strongly Agree Agree Neutral Disagree Strongly Disagree
2%
6%
28%
24%
40%
INTERPRETATION
I have concluded that is 28% of the customer Strongly agree , 40% are Agree, 24%
are Neutral, 6% are Disagree And 2% Are strongly Disagree for compared to other
brand while considered choosing a HONDA ACTIVA from above pie chart.
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3 -In automobile industry HONDA is strong brand.
Disagree
16 19 8 5 2
Automobile industry
Strongly Agree Agree Neutral Disagree Strongly Disagree
4%
10%
32%
16%
38%
INTERPRETATION
I have concluded that is 32% of the customer Strongly agree , 38% are Agree, 16%
are Neutral, 10% are Disagree And 4% Are strongly Disagree for as a strong brand
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QUALITY
Disagree
15 20 10 4 1
Quality
Strongly Agree Agree Neutral Disagree Strongly Disagree
2%
8%
30%
20%
40%
INTERPRETATION
I have concluded that is 30% of the customer Strongly agree , 40% are Agree, 20%
are Neutral, 8% are Disagree And 2% Are strongly Disagree for quality while
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2-Compare to other brand’s HONDA has better quality.
Disagree
10 25 8 4 3
6%
8% 20%
16%
50%
INTERPRETATION
I have concluded that is 20% of the customer Strongly agree , 50% are Agree, 16%
are Neutral, 8% are Disagree And 6% Are strongly Disagree for quality while
38
STYLE & COMFORT
Disagree
6 28 11 4 1
Status symbol
Strongly Agree Agree Neutral Disagree Strongly Disagree
2%
8% 12%
22%
56%
INTERPRETATION
I have concluded that is 12% of the customer Strongly agree , 56% are Agree, 22%
are Neutral, 8% are Disagree And 2% Are strongly Disagree for as a status symbol
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2-I considered colour while purchasing a HONDA ACTIVA
Disagree
3 6 12 20 9
Colour
Strongly Agree Agree Neutral Disagree Strongly Disagree
6%
18%
12%
24%
40%
INTERPRETATION
I have concluded that is 12% of the customer Strongly agree , 24% are Agree, 40%
are Neutral, 18% are Disagree And 6% Are strongly Disagree for colour while
40
3-I considered safety aspects while purchasing a HONDA ACTIVA Activa
Disagree
34 11 2 1 1
Safety aspects
Strongly Agree Agree Neutral Disagree Strongly Disagree
4%
2% 2%
23%
69%
INTERPRETATION
I have concluded that is 69% of the customer Strongly agree , 23% are Agree, 4%
are Neutral, 2% are Disagree And 2% Are strongly Disagree for safety aspects while
41
4- I considered comfort while purchasing a HONDA ACTIVA Activa
Disagree
31 16 1 1 1
comfort
Strongly Agree Agree Neutral Disagree Strongly Disagree
32% 2% 2%
2%
62%
INTERPRETATION
I have concluded that is 62% of the customer Strongly agree , 32% are Agree, 2%
are Neutral, 2% are Disagree And 2% Are strongly Disagree on comfort while
42
5- After the sales services provided are on a timely basis.
Disagree
22 17 9 1 1
18% 2%
2%
34%
44%
INTERPRETATION
I have concluded that is 44% of the customer Strongly agree , 34% are Agree, 18% are
Neutral, 2% are Disagree And 2% Are strongly Disagree on After sale service while
43
CHAPTER-6
FINDING
44
Followings are the findings of my study:
1. It was found from the pie chart analysis that there is one factor that is comfort
which is most significantly responsible for affecting the customer’s preference
while purchasing Honda Activa.
2. Advertisements are the major factor for came to know about Honda
customer while purchasing Honda Activa.
3. It was also found from the pie chart analysis that there is other factor that is
considered safety aspects which is responsible for affecting the customer’s
preference while purchasing Honda Activa.
45
CHAPTER-7
RECOMMENDATION
46
1. Honda should introduce some more models having more engines
Power.
4. Maintenance cost and the availability of the spare parts should also
be given due importance.
47
CHAPTER-8
LIMITATION
48
For doing this survey I have faced some problems. We were totally depended
I had very less time to conduct this research, because during this period our main
Some respondents were not giving their time to fill the questionnaire
questionnaire.
49
CHAPTER-9
CONCLUSION
50
CONCLUSION:
51
REFERENCE
52
Books:
Kotler Philip “Marketing Management” revised edition, prentice hall of India New Delhi,
2006.
Kothari C.R.(1985), “Research methodology- method & technique (2ndedition)”new age
international publish.
Website:
http://en.wikipedia.org/wiki/Buying_decision_process
http://en.wikipedia.org/wiki/Honda Activa
http://www.Activa.com/
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Questionnaire used
I am a student of FMS- SSTC, Bhilai conducting a research on “A CUSTOMER
PURCHASE INTENTION TOWARD HONDA ACTIVA IN DURG-BHILAI
REGION” please provide your feedback and this will be kept confidential.
54
Demographic Information
Name -
55