Master of Business Administration: A Project Report Ona Study On Consumer Buying Behaviour

1
A Project Report onA Study on CONSUMER BUYING

BEHAVIOUR
at
HYDERABAD
A Project Report submitted to JNTUH in partial fulfillment of therequirement for the
award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
VIKRANTREGD.No.10311E0004
Under the guidance of
Mr.
DEPARTMENT OF MANAGEMENT STUDIES
Sreenidhi Institute of Science & TechnologyApproved by A.I.C.T.E, New Delhi,
Accredited by NBA,Affiliated to JNT University, HyderabadHyderabad
–
500082.
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2
CERTIFICATE
This is to certify that the project report titled
“
A Study on
Performance appraisal system”
carried out in
IVRCL Limited,Hyderabad
is being submitted by
K.Srujana (10311E0038)
, inpartial fulfillment for the award of
Master of BusinessAdministration
to the
Jawaharlal Nehru TechnologicalUniversity,
is a record of confide work carried out by her undermy guidance and
supervision. The results embodied in this thesishave not been
submitted to any other University or Institute for theaward of any
Degree or Diploma.
Project guide: Head of the Department/Director
Mr. Dr.Y.SATHYANARAYANA
Asst.Professor SMS,SNIST
3
DECLARATION
I hereby declare that this Project Report entitled “
A Study onConsumer buying behaviour
”
at infrastructures and projectslimited
; HYDERABAD
is a bonafied work done by me for theaward of degree of
Master of Business Administration
submittedto JNT University, Hyderabad. The results embodied in this
thesishave not been submitted to any other University or Institution
forthe award of any Degree/Diploma Certificate or Published any
timebefore.
Place:Date(vikrant)
4
ACKNOWLEDGEMENT
I am thankful to Mr. M.Lenin Babu M.B.A, Asst.Professor for being myproject guide..My
profound thanks to Dr.Y.Satyanarayana, , Director, SMS , SreenidhiInstitute of Science &
Technology, who was patient in giving direction to myproject in his capacity.I would
like to thank IVRCL, HYDERABAD for giving me anopportunity to undergo an project in
their esteemed organization.I express my sincere gratitude to Mr.P.RAMESH (Manager
–
HR &Admn) and other personnel staff for guiding and encouraging me to thecompletion of
project on time.I am thankful
Dr.V.Vasudeva Rao,
Principal and Dr.P.Narasimha
Reddy, Director
of Sreenidhi Institute of Science & Technology, for making itconvenient to under take a
project work.(VIKRANT)
5
INDEX
TOPIC PAGE NO
CHAPTER 1
INDUSTRY PROFILECOMPANY PROFILEINTRODUCTION TOCONSUMER
BEHAVIOUR
CHAPTER 2
OBJECTIVES OF THE STUDYNEED & SCOPE OF THE STUDYRESEARCH

METHODOLOGYDATA ANALYSISDATA SOURCE
CHAPTER 3
DATA ANALYSIS &INTERPRETATION
CHAPTER 4
FINDINGS
SUGGESTIONS
ANNEXUREBIBLIOGRAPHY
6
Chapter-1
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7
INDUSTRY PROFILE
Automobile industry in India
The
automobile industry inIndia
is theninth largest in the worldwith an annualproduction of over 2.3 million units in 2008 In
2009, India emerged as Asia's fourthlargest exporter of automobiles, behind Japan, South
Korea and Thailand.Followingeconomic liberalization in Indiain 1991, the Indian automotive
industry hasdemonstrated sustained growth as a result of increased competitiveness and
relaxedrestrictions. Several Indian automobile manufacturers such asTata Motors,Maruti
SuzukiandMahindra and Mahindra,expanded their domestic and international
operations.India's robusteconomic growthled to the further expansion of its domestic
automobilemarket which attracted significant India-specific investment by multinational
automobilemanufacturers. In February 2009, monthly sales of passenger cars in India
exceeded100,000 units.bryonic automotive industry emerged inIndiain the 1940s.
Following theindependence, in 1947, theGovernment of Indiaand theprivate sectorlaunched
efforts to create anautomotive component manufacturing industry to supply to the automobile
industry.However, the growth was relatively slow in the 1950s and 1960s due to
nationalizationand thelicense rajwhich hampered the Indian private sector. After 1970, the
automotiveindustry started to grow, but the growth was mainly driven by tractors,
commercialvehicles and scooters. Cars were still a major luxury.Japanesemanufacturers
entered theIndian market ultimately leading to the establishment of Maruti Udyog.A number
of foreign firms initiated joint ventures with Indian companies.
8In the 1980s, a number of Japanese manufacturers launched joint-ventures for

buildingmotorcycles and light commercial-vehicles. It was at this time that the Indian
governmentchoseSuzukifor its joint-venture to manufacture small cars. Following the
economicliberalization in 1991 and the gradual weakening of the license raj, a number of
Indianand multi-national car companies launched operations. Since then, automotive
componentand automobile manufacturing growth has accelerated to meet domestic and
exportdemands.
HISTORY OF THE TWO WHEELERS:
The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by aninternal
–
combustion engine (or, less often by an electric engine). The automobile wasthe reply to the
19
th
–
century reams of self-propelling the horse-drawn bikeriage.Similarly, the invention of the
motorcycle created the self
–
propelling bicycle. The firstcommercial design was three-wheeler built by Edward Butler in
Great Britain in 1884.This employed a horizontal single-cylinder gasoline engine mounted
between two steerable front wheels and connected by a drive chain to the rear wheel. The
1900s saw theconversion of many bicycles or pedal cycles by adding small, centrally
mounted spark ignition engine engines. There was then felt the need for
reliable constructions. This ledto road trial tests and competition between
manufacturers. Tourist Trophy (TT) raceswere held on the Isle of main in 1907 as
reliability or endurance races. Such were theproving ground for many new ideas from early
two-stroke-cycle designs to superchargedmultivalent engines mounted on aerodynamic,
bikebon fiber reinforced bodywork.INVENTION OF TWO WHEELERS:The invention of
two wheelers is a much-
debated issue. “Who inv
ented the first
motorcycle?” May seem like a simple question, “safety”, bicycle, i.e., bicycle with front
and rear wheels of the same size, with a pedal crank mechanism to drive the rear
wheel.Those bicycles in turn described from high-wheel bicycles. The high
–
wheelers
descended from an early type of pushbike, without pedals, propelled by the rider‟s feet
pushing against the ground. These appeared around 1800, used iron banded wagon
wheels, and were called “bone
-
crushers”, both for their jarring ride
, and their tendency totoss their riders. Gottiieb Daimler (who credited with the building the
first motorcycle in1885, one wheel in the front and one in the back, although it had a smaller
spring-loaded
9outrigger wheel on each side. It was constructed mostly of wood, the wheels were
of theiron-banded wooden-spooked wagon-
type and it definitely had a “bone
-
crusher” chassis!
FURTHER DEVELOPMENTS:Most of the developments during the early phase
concentrated on three and four-wheeled design since it was complex enough to get the
machines running with out havingto worry about them falling over. The next notable two-
wheeler though was theHildebrand & Wolf Mueller, patented in Munich in 1894. In 1895,
the French firm of DeDion-button built and engine that was to make the mass production and
common useof motorcycle possible. The first motorcycle with electric start and a fully
modemelectrical system; the Hence special from the Indian Motorcycle Company astounded
theindustry in 1931. Before World War 1, IMC was the largest motorcycle manufacturer
inthe world producing over 20000 bikes per year.INCREASING POPULARITY:The
popularity of the vehicle grew especially after 1910, in 1916; the Indianmotorcycle company
introduced the model H racer, and placed it on sale. During WorldWar 1, all branches of the
armed forces in Europe used motorcycles principally fordispatching. After the war, it enjoyed
a sport vogue until the Great Depression began inmotorcycles lasted into the late 20
th
century; weight the vehicle being used for high-speedtouring and sport competitions. The
more sophisticated of a 125cc model. Since then, anincreasing number of powerful bikes
have blazed the roads.HISTORICAL INDUSTRY DEVELOPMENTS:Indian is the second
largest manufacturer and producer to two wheelers in theWorld. It stands next only to Japan
and China in terms of the number of V produced anddomestic sales respectively. This
destination was achieved due to variety of reason likerestrictive policy followed by the
government of India towards the passenger bikeindustry, rising demand for personal
transport, inefficiency in the public transportationsystem etc. The Indian two-wheelers
industry made a small beginning in the early 50swhen Automobile products of India (API)
started manufacturing scooters in the country.Until 1958, API and Enfield were the sole
producers.
10The two
–
wheelers market was opened were opened to foreign competition in themid-80s. And the then
market leaders-Escorts and Enfield
–
were caught unaware by theonslaught of the 100cc bikes of the four Indo- Japanese
joint ventures. With theavailability of fuel-efficiency low power bikes, demand swelled,
resulting in Hero Honda
–
then the only producer of four stroke bikes (100cc category), gaining a top slot.The
first Japanese motorcycles were introduced in the early eighties. TVS Suzukiand Hero Honda
brought in the first two-stroke and four-stroke engine motorcyclesrespectively. These two
players initially started with assembly of CKD Kits, and later onprogressed to indigenous
manufacturing.The industry had a smooth ride in the 50s, 60s and 70s when
governmentprohibited new entries and strictly controlled capacity expansion. The
industry saw asudden growth in the 80s. The industry witnessed a steady of 14% leading to a
peak volume of 1.9 mn vehicles in 1990.In 1990 the entire automobile industry saw a
drastic fall in demand. This resultedin a decline of 15% in 1991 and 8% in 1992, resulting in
a production loss of 0.4mnvehicles. Barring Hero Honda, all the major producers suffered
from recession in FY93and FY94. Hero Honda showed a marginal decline in 1992.The
reason for recession in the sector were the incessant rise in fuel prices, highinput costs and
reduced purchasing power due to significant like increased production in1992, due to new
entrants coupled with recession in the industry resulted in companieseither reporting losses or
a fall in profits.CONCLUSION:The two-wheelers market has had a perceptible shift from a
buyers market to asellers market with a variety of choice, players will have compete on
various fronts viz.pricing, technology product design, productivity after sale service,
marketing anddistribution. In the short term, market shares of individual manufacturers are
going to besensitive to capacity, product acceptance, pricing and competitive pressures from
othermanufacturers.
11As incomes grow and people grow and people feel the need to own a private meansof
transport, sales of two-wheelers will rise. Penetration is expected to increase toapproximately
to more than 25% by 2005.The motorcycle segment will continue to lead the demand for two-
wheelers in thecoming years. Motorcycle sale is expected to increase by 20% yoy as
compared to 1%growth in the scooter market and 3% by moped sales respectively for the
next two years.The four-stroke scooters will add new dimension to the two-wheeler segment
in thecoming future.The Asian continent is that largest user of the two-wheelers in the
world. This is due topoor road infrastructure and low per capita income, restrictive policy on
bike industry.This is due to oligopoly between top five players in the segment, compared to
thirstymanufacturers in the bike industry.Hero Honda motors LTd., is one of the leading
companies in the two-wheelerindustry. At present it is the market leader in the motorcycle
segment with around 47%the market share during FY 2000
–
01. During the year, company posted a 41.15% yoyrise in turnover to Rs.31, 686.5mn in
motorcycles which driven by a 35.17% yoy rise inMotorcycle sales volumes. The company
has emerged as one of the most successfulplayers, much ahead of its competitions an account
of its superior and reliable productquality complemented with excellent marketing
techniques. The company has beenconsistently addressing the growing demand for
motorcycles and has been cumulativecustomer base of over 4 million customers, which is
expected to reach 5min mark withrural and semi-urban segment being the new class of
consumers.
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12
COMPANY PROFILE
Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largestmanufacturer
of two - wheelers, based in India.In 2001, the company achieved the coveted position of
being the largest two-wheelermanufacturing company in India and also, the 'World No.1'
two-wheeler company interms of unit volume sales in a calendar year. Hero MotoCorp Ltd.
continues to maintainthis position till date.Today, every second motorcycle sold in the
country is a Hero Honda bike. Every 30seconds, someone in India buys Hero Honda's top-
selling motorcycle
–
Splendor.
Vision
The Hero Honda story began with a simple vision
–
the vision of a mobile and anempowe
red India, powered by Hero Honda. This vision was driven by Hero Honda‟s
commitment to customer, quality and excellence, and while doing so, maintaining thehighest
standards of ethics and societal responsibilities. Hero Honda believes that thefastest way to
turn that dream into a reality is by remaining focused on that vision.
Strategy
Hero Honda‟s key strategy has been driven by innovation in every sphere of activity –
building a robust product portfolio across categories, exploring new markets,
aggressivelyexpanding the network and continuing to invest in brand building activities.
Manufacturing
Hero Honda bikes are manufactured across three globally benchmarked
manufacturingfacilities. Two of these are based at Gurgaon and Dharuhera which are located
in the stateof Haryana in northern India. The third and the latest manufacturing plant is based
at
13Haridwar, in the hill state of Uttrakhand.

Technology
In the 1980‟s Hero Honda pioneered the introduction of fuel

-efficient, environmentfriendly four-stroke motorcycles in the country. Today, Hero Honda
continues to betechnology pioneer. It became the first company to launch the Fuel Injection
(FI)technology in Indian motorcycles, with the launch of the Glamour FI in June 2006.
Products
Hero Honda's product range includes variety of motorcycles that have set the
industrystandards across all the market segments. The company also started
manufacturingscooter in 2006. Hero Honda offers large no. of products and caters to wide
variety of requirements across all the segments.
Distribution
The company's growth in the two wheeler market in India is the result of an intrinsicability
to increase reach in new geographies and growth markets. Hero Honda's extensivesales and
service network now spans close to 4500 customer touch points. Thesecomprise a mix of
authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the
country.
Brand
The company has been continuously investing in brand building utilizing not only thenew
product launch and new campaign launch opportunities but also through innovativemarketing
initiatives revolving around cricket, entertainment and ground- level activation.Hero Honda
has been actively promoting various sports such as hockey, cricket and golf.Hero Honda was
the title sponsor of the Hero Honda FIH Hockey World Cup that wasplayed in Delhi during
Feb-March 2010. Hero Honda also partners the CommonwealthGames Delhi 2010.
2010-11 Performance
Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per centTotal net operating
income of Rs. 19401.15 Crores, growth of 22.32 per cent
14Net profit after tax at Rs. 1927.90 CroresTotal dividend of 5250% or Rs. 105 per share
including Interin Dividend of Rs. 70 pershare on face value of each share of Rs. 2
eachEBIDTA margin for the year 13.49 per centEPS of Rs. 96.54
2009-10 Performance
Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per centTotal net operating
income of Rs. 15860.51 Crores, growth of 28.1 per centNet profit after tax at Rs. 2231.83
Crores, growth of 74.1 per centFinal dividend of 1500% or Rs. 30 per share on face value of
each share of Rs. 2EBIDTA margin for the year 17.4 per centEPS of Rs. 111.77, growth
of 74.1 per cent
HERO HONDA'S MISSION
Hero Honda‟s mi
ssion is to strive for synergy between technology, systems and humanresources, to produce
products and services that meet the quality, performance and priceaspirations of its
customers. At the same time maintain the highest standards of ethics andsocial
responsibilities.This mission is what drives Hero Honda to new heights in excellence and
helps theorganization forge a unique and mutually beneficial relationship with all its stake
holders.
HERO HONDA'S MANDATE
Hero Honda is a world leader because of its excellent manpower, proven
management,extensive dealer network, efficient supply chain and world-class products with
cuttingedge technology from Honda Motor Company, Japan. The teamwork and
commitmentare manifested in the highest level of customer satisfaction, and this goes a long
waytowards reinforcing its leadership status
BOARD OF DIRECTORS
No.
Name of the Directors
Designation
151Mr. Brijmohan Lall Munjal

Chairman & Whole-time Director2Mr. Pawan Munjal
Managing Director & C.E.O.3Mr. Toshiaki Nakagawa
Joint Managing Director4Mr. Sumihisa FukudaTechnical Director5Mr. Sunil Kant Munjal
Non-Executive Director6Mr. Suman Kant Munjal
Non-Executive Director7Mr. Takashi Nagai
Non-Executive Director8Mr. Yuji Shiga
Non-Executive Director9Mr. Pradeep Dinodia
Non-executive & IndependentDirector10Gen. (Retd.) V. P. Malik
Non-executive & IndependentDirector11Mr. Analjit Singh
Non-executive & IndependentDirector12Dr. Pritam Singh
Non-executive & IndependentDirector13Ms. Shobhana Bhartia
Non-executive & IndependentDirector14.Mr. M. Damodaran
Non-executive & IndependentDirector15.Mr. Ravi Nath
Non-executive & IndependentDirector16.Dr. Anand C. Burman
Non-executive & IndependentDirector
BRIEF PROFILE OF DIRECTORS
MR. BRIJMOHAN LALL MUNJAL

16Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company andthe $
3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry(CII),
Society of Indian Automobile Manufacturers (SIAM) and was a Member of theBoard of the
Country's Central Bank (Reserve Bank of India). In recognition of hiscontribution to
industry, Mr. Munjal was conferred the Padma Bhushan Award by theUnion
Government.Mr. Brijmohan Lall Munjal is currently on the board of the following
companies:
No.
Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-
time Director2 Hero Honda Finlease Limited Chairman and Director3 Munjal Showa Limited
Chairman and Director4 Easy Bill Limited Director5 Rockman Industries Limited Director6
Shivam Autotech Limited Director
KEY MILESTONES OF HERO HONDA
Year
Event
1983
Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signedShareholders
Agreement signed
1984
Hero Honda Motors Ltd. Incorporated
1985
First motorcycle "CD 100" rolled out
1987
100,000th motorcycle produced
1989
New motorcycle model - "Sleek" introduced
1991
New motorcycle model - "CD 100 SS" introduced
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17500,000th motorcycle produced

1992
Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder
ManagingDirector, Mr. Raman Kant Munjal
1994
New motorcycle model - "Splendor" introduced1,000,000th motorcycle produced
1997
New motorcycle model - "Street" introducedHero Honda's 2nd manufacturing plant at
Gurgaon inaugurated
1998
2,000,000th motorcycle produced
1999
New motorcycle model - "CBZ" introducedEnvironment Management System of Dharuhera
Plant certified with ISO-14001 by DNVHollandRaman Munjal Memorial Hospital
inaugurated - A Hospital in the memory of founderManaging Director, Mr. Raman Kant
Munjal
2000
4,000,000th motorcycle producedEnvironment Management System of Gurgaon Plant
certified ISO-14001 by DNV HollandSplendor declared 'World No. 1' - largest selling single
two-wheeler model"Hero Honda Passport Programme" - CRM Programme launched
2001
New motorcycle model - "Passion" introducedOne million production in one single yearNew
motorcycle model - "Joy" introduced5,000,000th motorcycle produced
2002
New motorcycle model - "Dawn" introducedNew motorcycle model - "Ambition"
introducedAppointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh
and ZaheerKhan as Brand Ambassadors
2003
Becomes the first Indian Company to cross the cumulative 7 million sales mark Splendor has
emerged as the World's largest selling model for the third calendar year in arow(2000, 2001,
2002)New motorcycle model - "CD Dawn" introducedNew motorcycle model - "Splendor +"
introducedNew motorcycle model - "Passion Plus" introduced
18New motorcycle model - "Karizma" introduced
2004
New motorcycle model - "Ambition 135" introducedHero Honda became the World No. 1
Company for the third consecutive year.Crossed sales of over 2 million units in a single year,
a global record.Splendor - World's largest selling motorcycle crossed the 5 million mark New
motorcycle model - "CBZ*" introducedJoint Technical Agreement renewedTotal sales
crossed a record of 10 million motorcycles
2005
Hero Honda is the World No. 1 for the 4th year in a rowNew motorcycle model - "Super
Splendor" introducedNew motorcycle model - "CD Deluxe" introducedNew motorcycle
model - "Glamour" introducedNew motorcycle model - "Achiever" introducedFirst Scooter
model from Hero Honda - "Pleasure" introduced
2006
Hero Honda is the World No. 1 for the 5th year in a row15 million production milestone
achieved
2007
Hero Honda is the World No. 1 for the 6th year in a rowNew 'Splendor NXG' launchedNew
'CD Deluxe' launchedNew 'Passion Plus' launchedNew motorcycle model 'Hunk' launched20
million production milestone achieved
2008
Hero Honda Haridwar Plant inaugurationNew 'Pleasure' launchedSplendor NXG lauched
with power start featureNew motorcycle model 'Passion Pro' launchedNew 'CBZ Xtreme'
launched25 million production milestone achievedCD Deluxe lauched with power start
featureNew 'Glamour' launched
19
200920102011
Hunk' (Limited Edition) launchedSplendor completed 11 million production landmark New
motorcycle model 'Karizma - ZMR' launchedSilver jubilee celebrationsNew model Splendor
Pro launchedLaunch of new Super Splendor and New Hunk New licensing arrangement
signed between Hero and HondaLaunch of new refreshed versions of Glamour, Glamour FI,
CBZ Xtreme, KarizmaCrosses the landmark figure of 5 million cumulative sales in a single
year
PROMINENT AWARDS TO THE COMPANY
Year
Awards & Recognitions
20112010
Two-wheeler Manufacturer of the Year award by Bike India magazine.Adjudged the "Bike
Manufacturer of the Year" at the Economic Times ZigWheels Carand Bike Awards.
- CNBC Awaaz
- Storyboard special commendation for "Effective rebranding of a newcorporate entity" by
CNBC Awaaz Consumer Awards
- "Most Recommended Two-Wheeler Brand of the Year"
award by CNBC AwaazConsumer Awards- Colloquy Loyalty Awards
"Innovation in Loyalty Marketing International 2011"
for Hero GoodLife
- "Best Activity Generating Short or Long-Term Brand Loyalty"
by the PromotionMarketing Award of Asia Order of Merit for Hero GoodLife- Ranked No 1
brand in the Auto (Two-Wheelers) category in the Brand Equity
"MostTrusted Brand"
2011 survey
Company of the Year
awarded by Economic Times Awards for Corporate Excellence2008-09.CNBC TV18
Overdrive Awards 2010
'Hall of Fame' to Splendor
NDTV Profit Car & Bike Awards 2010 -
Two-wheeler Manufacturer of the Year
CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

20
Bike Maker of the Year
by ET-ZigWheels Car & Bike of the Year Awards 2009
2009
'
Two-wheeler Manufacturer of the Year
' by NDTV Profit Car & Bike Awards 2009and Passion Pro adjudged as CNB Viewers'
Choice two-wheelerTop Indian Company under the 'Automobile - Two-wheelers' sector by
the Dun &Bradstreet-Rolta Corporate Awards
Won Gold in the Reader's
Digest Trusted Brand 2009
in the 'Motorcycles' category
NDTV Profit Business Leadership Awards 2009
- two-wheeler category
2008
NDTV Profit Business Leadership Award 2008

- Hero Honda Wins the Coveted"NDTV Profit Business Leadership Award 2008"
TopGear Design Awards 2008
- Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards
-
NDTV “Viewers‟ Choice Award” to
Hunk in Bike category
IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards
-
“Customer and Brand Loyalty Award” in Automobile (two
-wheeler) sector
Asian Retail Congress Award for Retail Excellence
(Strategies and Solutions of business innovation and transformation) - Best Customer Loyalty
Program in Automobilecategory
NDTV Profit Car India & Bike India Awards
- Bike Manufacturer of the year
Overdrive Magazine
- Bike Manufacturer of the year
TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG
No.1 standard motorcycle CD Deluxe
No. premium motorcycle CBZ Xtreme

2007
The NDTV Profit Car India & Bike India Awards 2007 in the following category:
Overall "Bike of the Year" - CBZ X-treme
"Bike of the Year" - CBZ X-treme (up to 150 cc category)
"Bike Technology of the Year" - Glamout PGM FI"Auto Tech of the Year" - Glamout PGM
FI by Overdrive Magazine.
21"Bike of the Year" - CBZ X-treme by Overdrive Magazine.Ranked CBZ X-treme "Bike of
the Year" - by B S Motoring Magazine
“Most Trusted Company” , by TNS Voice of the Customer Awards 2006.
CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer
Awards2006.
2006
Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two
WheelerCompany).
One of the 8 Indian companies to enter the Forbes top 200 list of world‟s most reputed
companies.No. 1 in automobile industry by TNS
Corporate Social Responsibility Award
.Best in its class awards for each category by
TNS Total Customer Satisfaction Awards2006
:
Splendor Plus (Executive)
CD Deluxe (Entry)
Pleasure (Gearless Scooters)Splendor & Passion - Top two models in two wheeler category
by ET Brand EquitySurvey 2006.Adjudged 7th Top Indian Company by Wallstreet Journal
Asia (Top Indian Two WheelerCompany).Top Indian company in the Automobile - Two
Wheeler sector by Dun & Bradstreet -
American Express Corporate Awards 2006
.Hero Honda Splendor rated as India's most preferred two-wheeler brand at the
AwaazConsumer Awards 2006
.
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22Certificate of Export Excellence for outstanding export performance during 2003-04

fortwo-wheeler & three- wheelers - Complete (Non SSI) by Engineering Export
PromotionCouncil.The NDTV Profit Car India & Bike India Awards 2006 in the following
category:
Bike Maker of the Year
Bike of the Year - Achiever
Bike of the Year - Achiever (up to 150 cc category)
Bike of the Year - Glamour (up to 125 cc category)
NDTV Viewers' Choice Award to Glamour in the bike category

CORPORATE SOCIAL RESPONSIBILITY (CSR)
STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especiallyones
developed at the grassroots. The Company believes it has managed to bring aneconomically
and socially backward region in Dharuhera, Haryana, into the nationaleconomic
mainstream.An Integrated Rural Development Centre has been set up on 40 acres of land
along theDelhi-Jaipur Highway. The Centre-complete with wide approach roads, clean water,
andeducation facilities for both adults and children-now nurtures a vibrant, educated
andhealthy community.The Foundation has adopted various villages located within vicinity
of the Hero Hondafactory at Dharuhera for integrated rural development. This includes:
Installation of deep bore hand pumps to provide clean drinking water.
Constructing metalled roads and connecting these villages to the NationalHighway (NH -8).
Renovating primary school buildings and providing hygienic water and toiletfacilities.
23
Ensuring a proper drainage system at each of these villages to prevent water-logging.
Promoting non-conventional sources of energy by providing a 50 per cent subsidyon biogas

plants.The
Raman Munjal Vidya Mandir
began with three classes (up to class II) and 55students from nearby areas. It has now grown
into a modern Senior Secondary, CBSEaffiliated co-educational school with over 1200
students and 61 teachers. The school has aspacious playground, an ultra-modern laboratory, a
well-equipped audio visual room, anactivity room, a well-stocked library and a computer
centre.
The Raman Munjal Sports Complex
has basketball courts, volleyball courts, andhockey and football grounds are used by the local
villagers. In the near future, sportsacademies are planned for volley ball and basket ball, in
collaboration with NationalSports Authority of India.
Vocational Training Centre
In order to help local rural people, especially women, Hero Honda has set up a
VocationalTraining Centre. So far 26 batches comprising of nearly 625 women have been
trained intailoring, embroidery and knitting. The Company has helped women trained at this
centreto set up a production unit to stitch uniforms for Hero Honda employees.
Interestingly,most of the women are now self-employed.
Adult Literacy Mission
This Scheme was launched on 21st September, 1999, covering the nearby villages
of Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of
36adults. Hero Honda is now in the process of imparting Adult Literacy Capsules to
another100 adults by getting village heads and other prominent villagers to motivate
illiterateadults.
Marriages of underprivileged girls
Marriages are organized from time to time, particularly for girls from backward classes,by
the Foundation by providing financial help and other support to the families.
24
Rural Health Care
Besides setting up a modern hospital, the Foundation also regularly provides doorstephealth
care services to the local community. Free health care and medical camps are nowa regular
feature in the Hero Group's community outreach program
KEY POLICIES
AN ENVIRONMENTALLY AND SOCIALLY, AWARECOMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the
way in making your world a better place to live in. Besides its will to provide a high-quality
service to all of its customers, Hero Honda takes a stand as a socially responsibleenterprise
respectful of its environment and respectful of the important issues.Hero Honda has been
strongly committed not only to environmental conservationprogrammers but also expresses
the increasingly inseparable balance between theeconomic concerns and the environmental
and social issues faced by a business. Abusiness must not grow at the expense of mankind
and man's future but rather must servemankind.
"We must do something for the community from whose land we generate ourwealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
Environment Policy
We at Hero Honda are
committed to demonstrate excellence in our environmentalperformance on a continual
basis
, as an intrinsic element of our corporate philosophy.To achieve this we commit ourselves to:
Integrate environmental attributes and cleaner production in all our businessprocesses and
practices with specific consideration to substitution of hazardouschemicals, where viable and
strengthen the greening of supply chain.
Continue product innovations to improve environmental compatibility.
Comply with all applicable environmental legislation and also controlling ourenvironmental
discharges through the principles of "alara" (as low as reasonablyachievable).
Institutionalise resource conservation, in particular, in the areas of oil, water,electrical energy,

paints and chemicals.
25
Enhance environmental awareness of our employees and dealers / vendors, whilepromoting

their involvement in ensuring sound environmental management.
Quality Policy
Excellence in quality is the core value of Hero Honda's philosophy

.We are committed at all levels to achieve high quality in whatever we do, particularly inour
products and services which will meet and exceed customer's growing aspirationsthrough:
Innovation in products, processes and services.

Continuous improvement in our total quality management systems.
Teamwork and responsibility.

Safety Policy
Hero Honda is committed to safety and health

of its employees and other personswho may be affected by its operations. We believe that the
safe work practices lead tobetter business performance, motivated workforce and higher
productivity.We shall create a safety culture in the organization by:
Integrating safety and health matters in all our activities.
Ensuring compliance with all applicable legislative requirements.
Empowering employees to ensure safety in their respective work places.
Promoting safety and health awareness amongst employees, suppliers andcontractors.
Continuous improvements in safety performance through precautions besidesparticipation

and training of employees.
INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX MOTORS)
PHOENIX MOTORS PVT LTD

is dealership type of business.
PHOENIX MOTORSPVT LTD. is established on 21
st
march 2003
. The business is running by only one man.The owner name is
ch .madhu mathi
the firm is located at habsiguda in Hyderabad.
26Generally the sale will be either on cash basis or on institutional basis. Bank like
ICICI, HDFC
and
CENTURION
are providing loans to customers.Advertising strategy of phoenix motors
:
They are giving the ads through newspapers, wall paintings, hoardingsand field staff. They
are upgrading sales by introducing the schemes, group bookings,institutional sales and
customer door-to-door activities.
Categorization of Staff members:
Staff members are categorized for technicians, 25 members areallotted for field staff, 5
members are recruited for sales for persons, 5 persons are placedfor evaluating for spare
parts, 5 members are allotted for managerial accounts and another3 persons for cash
transaction and other members are allotted for remaining work.
Customer relationship:
They entertain the showroom providing a customer‟s huge having
pool game, internet facility and television with home there system. They provide
bilemaintenance programs on every week.According to other dealers PHOENIX motors in
first in sales and best in service. Theytreat customer, is the very important person at
PHOENIX motors customer satisfaction istheir motto, why because, they will satisfied
customer is the best advertisement. Theyprovide better value for the customers and as well as
employees also. At PHOENIXmotors the customer is the boss.
SALES STRATEGY OF PHOENIX MOTORS
:Average they are selling 25 vehicles per day. PHOENIX motors PVT L.T.Dis the A.P s
NO.1 dealership in sales and other activities? It is a QLAD (qualify leaderthrough quality
dealer). At PHOENIX motor they gave the quality service to the
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27
customers why because „the cost is long forgotten but the quality is remembered for ever”.
They treat
quality has a...Q Quest for excellence
U Understanding customer‟s needs
A Action to achieve customer‟s appreciation.

L Leadership determined to be a leaderI involving all the peopleT Team spirit to work for a c
ommon goalY Yard sticks to measure programs.
WARRANTY ON PROPRIETARY ITEMS
:Warranty on proprietary items like Tyros, Tubes and Battery etc, will bedirectly handled by
the respectiv
e original manufactures (OEM‟s) except AMCO for
batteries and Dunlop and Falcon tires and Tubes. In case of any defect in proprietary
items, other than the above two mentioned OEM‟S the dealers must approach the Brach
office dealer of the respective manufacture. For AMCO batteries and Dunlop and falcontires,
tubes claims will be accepted at our authorized dealerships per the mutually agreed
terms and conditions between HERO HONDA and of these two OEM‟s in case the claim
is not accepted for invalid reasons. Then the claim along with the refusal note form theOEM
can be sent to the warranty section at gorgon plan after due to recommendation of the area
service engineer. If any other six services or subsequent paid services is notavailed as per the
recommende
d schedule given in the owner‟s manual. If HERO
HONDA recommended engine oil is not used. To normal wear & tear components likebulbs,
electric wiring, filters, spark plug, clutch plates, braded shoes, fasteners, shimwashers, oil
seals, gaskets, rubber parts (other than tyre and tube) plastic components,chain$ sprockets
and in case of wheel rim misalignment or bend.
28If there is any damage due o modification or fittings of accessories other than
onesrecommended by HERO HONDA. If the motor has been used in any competitive
eventslike tracking races or rallies. If there is any damage to the painted surface due to
industrialpollution or other extraneous factors. For clams made for any consequential damage
dueto any previous malfunction. For normal phenomenon like noise, vibration, oil
seepage,which do not affect the performance of the motorcycles.
SOCIAL SERVICE ACTIVITIESPHOENIX
motors participate and conduct social service activities. Recently thephoenix motors
organized a BLOOD DONATION CAMP for the trust on 21
st
January2006.they motivated on the consumers to participated in this camp and also
providecertificate for the customers
THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)
29
30
31
CUSTOMER RELATIONSHIP:
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32To entertain the customers the showroom providing a customers huge having poolgame,
Internet facility and television with home theatre system. They provide bikemaintenance
programs on every week. According to other dealers PHOENIX motors infirst in sales and
best in service. They treat customer, is the very important person atPHOENIX motors
customer satisfaction is their motto, why because,
the well satisfiedcustomer is the best advertisement.
They provide better value for the customers and aswell as employees also. At PHONIX
motors the
customer is the boss.SOCIAL SERVICE ACTIVITIES
PHOENIX Motors participates in social service activities. The Phoenix motorsorganize a
BLOOD DONATION CAMP for the trust in every year. They motivated onthe customers to
participated in this camp and also provide Certificate for the customers.
CONSUMER BUYING BEHAVIOR
Definition:
Consumer behavior refers to the mental and emotional process and the observablebehavior of
consumers during searching, purchasing and post consumption of a productor
service.Consumer behavior involves study of how people buy, what they buy, when they buy
andwhy they buy. It blends the elements from psychology, sociology,
sociopsychology,anthropology and economics. It also tries to assess the influence on the
consumer fromgroups such as family, friends, reference groups and society in general.Buyer
behavior has two aspects: the final purchase activity visible to any observer and thedetailed or
short decision process that may involve the interplay of a number of complexvariables not
visible to anyone.
33What influences consumers to purchase products or services? The consumer buyingprocess

is a complex matter as many internal and external factors have an impact on thebuying
decisions of the consumer.When purchasing a product there several processes, which
consumers go through. Thesewill be discussed below.
Purchase decision
Through the evaluation process discussed above consumers will reach their final
purchasedecision and they reach the final process of going through the purchase action e.g.
Theprocess of going to the shop to buy the product, which for some consumers can be as
justas rewarding as actually purchasing the product. Purchase of the product can either
bethrough the store, the web, or over the phone.
Post Purchase Behavior
Ever have doubts about the product after you purchased it? This simply is post
purchasebehavior and research shows that it is a common trait amongst purchasers of
products.Manufacturers of products clearly want recent consumers to feel proud of their
purchase,it is therefore just as important for manufacturers to advertise for the sake of their
recentpurchaser so consumers feel comfortable that they own a product from a strong
andreputable organization. This limits post purchase behavior. i.e. You feel reassured thatyou
own the latest advertised product.
Factors influencing the behavior of buyers.
Consumer behavior is affected by many uncontrollable factors. Just think, whatinfluences
you before you buy a product or service? Your friends, your upbringing, yourculture, the
media, a role model or influences from certain groups?Culture is one factor that influences
behavior. Simply culture is defined as our attitudesand beliefs. But how are these attitudes
and beliefs developed? As an individual growingup, a child is influenced by their parents,
brothers, sister and other family member whomay teach them what is wrong or right. They
learn about their religion and culture, whichhelps them develop these opinions, attitudes and
beliefs (AIO) . These factors will
34influence their purchase behavior however other factors like groups of friends, or
peoplethey look up to may influence their choices of purchasing a particular product or
service.Reference groups are particular groups of people some people may look up towards
tothat have an impact on consumer behavior. So they can be simply a band like the
SpiceGirls or your immediate family members. Opinion leaders are those people that you
look up to because your respect their views and judgments and these views may influence
consumer decisions. So it maybe a friend who works with the IT trade who may
influenceyour decision on what computer to buy. The economical environment also has an
impact on consumer behaviour; do consumers have a secure job and a regular income to
spend ongoods? Marketing and advertising obviously influence consumers in trying to evoke
themto purchase a particular product or service.Peoples social status will also impact their
behavior. What is their role within society?Are they Actors? Doctors? Office worker? and
mothers and fathers also? Clearly beingparents affects your buying habits depending on the
age of the children, the type of jobmay mean you need to purchase formal clothes, the income
which is earned has animpact. The lifePerformence of someone who earns £250000 would
clearly be differentfrom someone who earns £25000. Also characters have an influence on
buying decision.Whether the person is extrovert (out going and spends on entertainment) or
introvert(keeps to themselves and purchases via online or mail order) again has an impact on
thetypes of purchases made.
M
aslow’s Hierarchy of Needs
Abraham Maslow hierarchy of needs theory sets out to explain what motivatedindividuals in
life to achieve. He set out his answer in a form of a hierarchy. He suggestsindividuals aim to
meet basic psychological needs of hunger and thirst. When this hasbeen met they then move
up to the next stage of the hierarchy, safety needs, where thepriority lay with job security and
the knowing that an income will be available to themregularly. Social needs come in the next
level of the hierarchy, the need to belong or beloved is a natural human desire and people do
strive for this belonging. Esteem need isthe need for status and recognition within society,
status sometimes drives people, theneed to have a good job title and be recognized or the
need to wear branded clothes as asymbol of status.But how does this concept help an
organization trying to market a product or service?
35Well as we have established earlier within this website, marketing is about meeting
needsand providing benef
its, Maslow‟s concept suggests that needs change as we go along our
path of striving for self-actualization. Supermarket firms develop value brands to meet
thepsychological needs of hunger and thirst. Harrods develops products and services forthose
who w
ant have met their esteem needs. So Maslow‟s concept is useful for
marketers as it can help them understand and develop consumer needs and wants.
CUSTOMER
A competitor, in order to achieve the loyalty of the customers, offer an endlessinformation
flow on the products and services and thereby continuously educates thecustomer about the
opportunities in the market. Therefore today even an ordinary person,is in possession of the
large amount of data to use for the purpose of making a decision asto which products/
services he would go in for. The competitive environment is makingthe customer wisher day
by day and he is able to take a large number of decisions on his
own. The experts‟ advice of the olden days is being replaced by the customer‟s own
wisdom. This is making the market place more complicated and unpredictable. The
customer is getting smarter today and he is able to decide his own money‟s worth
andtherefore, organization across the board are `pursuing the customer‟s views to streamline
their business strategies to remain customer- worthy.People are the prime factor for any
organization to maintain the effectiveness andthus develop the right focus for the people, so
that each one perceives as clearly aspossible his position in the cycle of growth
and prosperity of the organization. Agendaswill have to be drawn in such a manner and
communicated so effectively that theindividual is able to enjoy a meaningful life in the
organization, endowed with authorityand responsibility for the role he plays.
“One should be able to see for oneself the impact of the contributions one has
made towards the growth and prosperity cycle of the organization. As a matter of fact
therelationship between the people and the organization should be so designed that each oneis
here to experience the pleasure of winning and pain of losing. People alone are of
nosignificance unless and until they have an intimate and continuous interaction with the
process”.
Therefore organization have to take continuous care to update their quality of thepeople and
that of processes simultaneously so that a healthy relationship is built up and
36maintained making the relationship happy and healthy one. This, when done,
shouldgenerate in people a sense of entrepreneurship ownership of the organization.
“Since the customer are the main focus of any organization its structure should be
so flat i.e., people fluently interact with the customer and maintain continuous feedback
about the customer‟s moods and methods in order to shape its b
usiness portfolio and
strategies”.
It is very important to find whether the fundamentals of the organization aregetting strong as
desired. It is therefore rightly said that a well trained army with qualityarms and ammunitions
and with a sense of involvement can got the nations frontiers inndesirable and dependable
manner similarly: people at the operation level with superiorcompetency and capability
supplied with superior products and strategies can acquire aplace for an organization in the
market place. Retail outlets are the contact points of thecustomers and therefore the image of
the organization largely depends upon the quality of the people managing the interventions
and transactions at the level.The Consumer Market:The consume market consists of all the
individuals and households who buy oracquire goods and services for
personal consumption. The simplest model consumerbuyer behavior is the stimulus
–
response model. According to this model marketingstimuli ( the four Ps) and the major forces
(economic, technological, political, cultural)
enter the consumer‟s “black box” and reproduce certain responses
.
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37
Social factors influence buyer‟s behavior. A person‟s reference group
-family,friends, social organizations, professional associations- strongly affect product and
brand
choices. The buyer‟s age, life
-cycle stage, occupation, economic circumstances,lifePerformence, personality, and other
personal. Characteristics influence his or herbuying decisions. Consumer life-Performences
the pattern of acting and interacting in theworld are also an important influences on purchase
decisions.Finally, consumer-buying behavior is influenced by four major
psychologicalfactors- motivation, perception, learning, and beliefs and attitudes. Each
of these factors
provides a different perspective for understanding the workings of the buyer‟s black box.
38CONSUMER PERCEPTIONIt can be defined as the process by which an individual

selects, organizes, andinterprets stimuli into a meaningful and coherent picture of the
world. A stimulus is aunit of input to any of the senses. Examples of stimulus ie, sensory
input includeproducts, packages, brand names, advertisements, and commercials, sensory
receptor.Marketers do not want their target audience to look only at the models in their
ads.They want to communicate something about their products as well. Marketers often
useattractive models,humour, other
factors to attract the target market‟s interest. Information
processing is a series of activities by which stimuli are perceived, transformed in
toinformation, and stored. Information processing model has four major steps or stages,a)
Exposureb)
Attentionc)
Interpretation, andd)
Memory
39The first three constitute perception.Exposure occurs when a stimulus such as an
Advertisement hoarding comes within the
range of a person‟s vision. Attention occurs when the information from vision pass on to the
brain for processing. Interpretation is the assignment of meaning to the received
sensations.Memory is the short
–
term use of the meaning for immediate decision-making or the longer-term retention of the
meaning.The basic components shown in the figure can be arranged into four groups:1.
Stimuli, which serve as the raw material to be processed.The stages of processing activities,
which are linked by arrows and mainly internal to thecustomer.Situational and consumer
characteristics which can influence the nature of theseprocessing activities, and an executive
system, which guides the process by regulating the typeand intensity of processing activities
engaged in, at any time.
Consumer Buying Behavior
Possibly the most challenging concept in marketing deals with understanding why buyers do
what they do (or don‟t do). But such knowledge is
critical for marketers since Wanting a strongunderstanding of buyer behavior will help shed
light on what is important to the customer andalso suggest the important influences on
customer decision-making. Using this information,marketers can create marketing programs
that they believe will be of interest to customers.As you might guess, factors affecting how
customers make decisions are extremely complex.Buyer behavior is deeply rooted in
psychology with dashes of sociology thrown in just to makethings more interesting. Since
every person in the world is different, it is impossible to havesimple rules that explain how
buying decisions are made. But those who have spent many years
analyzing customer activity have presented us with useful “guidelines” in how someone
decides
whether or not to make a purchase.
40In fact, pick up any textbook that examines customer behavior and each seems to approach
itfrom a different angle. The perspective we take is to touch on just the basic concepts that
appearto be commonly accepted as influencing customer behavior. We will devote two
sections of thePrinciples of Marketing Tutorialsto customer behavior. In this section we will
examine thebuying behavior of consumers (i.e., when people buy for personal reasons) while
in theBusinessBuying Behavior
tutorial we will examine factors that influence buyer‟s decisions in the business
market.
Why Consumers Buy
As we discussed in theWhat is Marketing?tutorial, customers make purchases in order to
satisfyneeds. Some of these needs are basic and must be filled by everyone on the planet
(e.g., food,shelter) while others are not required for basic survival and vary depending on the
person. Itprobably makes more sense to classify needs that are not a necessity as wants or
desires. In fact,in many countries where the st
andard of living is very high, a large portion of the population‟s
income is spent on wants and desires rather than on basic needs.In this tutorial when we
mention the consumer we are referring to the actual buyer, the personspending the money.
But is should also be pointed out that the one who does the buying is notnecessarily the user
of what is bought and that others may be involved in the buying decision inaddition to the
actual buyer. While the purchasing process in the consumer market is not ascomplex as the
business market, Wanting multiple people involved in a purchase decision is notunusual. For
example, in planning for a family vacation the mother may make the hotelreservations but
others in the family may have input on the hotel choice. Similarly, a father maypurchase
snacks at the grocery store but his young child may be the one who selected it from thestore
shelf.So understanding consumer purchase behavior involves not only understanding how
decisionsare made but also understanding the dynamics that influence purchases.
41
What Influences Purchasing
As we discussed the decision-making process for consumers is anything but straight
forward.There are many factors that can affect this process as a person works through the
purchasedecision. The number of potential influences on consumer behavior is limitless.
However,marketers are well served to understand the KEY influences. By doing so they may
be in aposition to tailor their marketing efforts to take advantage of these influences in a way
that willsatisfy the consumer and the marketer (remember this is a key part of the definition
of marketing).For the purposes of this tutorial we will break these influences down into three
main categories:Internal, External and Marketing. However, those interested in learning more
about customerbuying activity may want to consult one or more consumer behavior books
where they will findadditional methods for explaining consumer buying behavior.
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42For the most part the influences are not mutually exclusive. Instead, they are all
interconnectedand, as we will see, work together to form who we are and how we behave.For
each of the influences that are discussed we will provide a basic description and also
suggestits implication to marketers. Bear in mind we only provide a few marketing
implications for eachinfluence; clearly there are many more.
Internal Influences: Perceptual Filter
We start our examination of the influences on consumer purchase decisions by first
lookinginside ourselves to see which are the most important internal factors that affect how
we makechoices.
Perceptual Filter
Perception is how we see ourselves and the world we live in. However, what ends up being
stored inside us doesn‟t always get there in a direct manner. Often our
mental makeup resultsfrom information that has been consciously or subconsciously filtered
as we experience it, aprocess we refer to as a perceptual filter. To us this is our reality, though
it does not mean it is anaccurate reflection on what is real. Thus, perception is the way we
filter stimuli (e.g., someonetalking to us, reading a newspaper story) and then make sense out
of it.Perception has several steps.
Exposure
–
sensing a stimuli (e.g. seeing an ad)
Attention
–
an effort to recognize the nature of a stimuli (e.g. recognizing it is an ad)
Awareness
–
assigning meaning to a stimuli (e.g., humorous ad for particular product)
Retention
–
adding the meaning to one‟s internal makeup (i.e., product has fun ads)
How these steps are eventually carried out depends on a person‟s approach to learning. By
learning we mean how someone changes what they know, which in turn may affect how they
act.There are many theories of learning, a discussion of which is beyond the scope of this
tutorial,however, suffice to say that people are likely to learn in different ways. For instance,
one personmay be able to focus very strongly on a certain advertisement and be able to retain
the
43information after being exposed only one time while another person may need to be
exposed tothe same advertisement many times before he/she even recognizes what it is.
Consumers are alsomore likely to retain information if a person has a strong interest in
the stimuli. If a person is inneed of new car they are more likely to pay attention to a new
advertisement for a car whilesomeone who does not need a car may need to see the
advertisement many times before theyrecognize the brand of automobile.
Marketing Implications:
Marketers spend large sums of money in an attempt to get customers to have a
positiveimpression of their products. But clearly the existence of a perceptual filter
suggests that gettingto this stage is not easy. Exposing consumers to a product can be very
challenging consideringthe amount of competing product messages (ads) that are also trying
to accomplish the sameobjective (i.e., advertising clutter). So marketers must be creative and
use various means todeliver their message. Once the message reaches consumer it must be
interesting enough to
capture their attention (e.g., talk about the product‟s benefits). But attending to the message is
not enough. For marketers the most critical step is the one that occurs with awareness.
Heremarketers must continually monitor and respond if their message becomes distorted in
ways thatwill negatively shape its meaning. This can often happen due in part to competitive
activity (e.g.,comparison advertisements). Finally, getting the consumer to give positive
meaning to themessage they have retained requires the marketer make sure that consumers
accurately interpretthe facts about the product.
Internal Influences: Knowledge
Knowledge is the sum of all information known by a person. It is the facts of the world as
he/sheknows it and the depth of knowledge is a function of the breadth of worldly
experiences and the
strength of an individual‟s long
-term memory. Obviously what exists as knowledge to an
individual depends on how an individual‟s perceptual filter makes sense of the information
it isexposed to.
Marketers may conduct research that will gauge consumers‟ level of knowledge regarding
their
44product. As we will see below, it is likely that other factors influencing consumer behavior
are inlarge part shaped by what is known about a product. Thus, developing methods (e.g.,
incentives)to encourage consumers to accept more information (or correct information) may
affect otherinfluencing factors.
Internal Influences: Attitude
In simple terms attitude refers to what a person feels or believes about something.
Additionally,attitude may be reflected in how an individual acts based on his or her beliefs.
Once formed,attitudes can be very difficult to change. Thus, if a consumer has a negative
attitude toward aparticular issue it will take considerable effort to change what they believe
to be true.
Marketers facing consumers who have a negative attitude toward their product must work to
identify the key issues shaping a consumer‟s attitude then
adjust marketing decisions (e.g.,advertising) in an effort to change the attitude. For
companies competing against strong rivals towhom loyal consumers exhibit a positive
attitude, an important strategy is to work to see whyconsumers feel positive toward the
competitor and then try to meet or beat the competitor onthese issues. Alternatively, a
company can try to locate customers who feel negatively toward thecompetitor and then
increase awareness among this group.
Internal Influences: Personality
An
individual‟s personality relates to perceived personal characteristics that are consistently
exhibited, especially when one acts in the presence of others. In most, but not all, cases
thebehaviors one projects in a situation is similar to the behaviors a person exhibits in
anothersituation. In this way personality is the sum of sensory experiences others get from
experiencing
a person (i.e., how one talks, reacts). While one‟s personality is often interpreted by those we
interact with, the person has their own vision of their personality, called Self Concept,
whichmay or may not be the same has how others view us.
For marketers it is important to know that consumers make purchase decisions to support
their
45self concept. Using research techniques to identify how customers view themselves may
givemarketers insight into products and promotion options that are not readily apparent. For
example,when examining consumers a marketer may initially build marketing strategy
around moreobvio
us clues to consumption behavior, such as consumer‟s demographic indicators (e.g., age,
occupation, income). However, in-depth research may yield information that shows
consumersare purchasing products to fulfill self-concept objectives that have little to do with
thedemographic category they fall into (e.g., senior citizen may be making purchases that
make
them feel younger). Appealing to the consumer‟s self concept needs could expand the market
to
which the product is targeted.
Internal Influences: LifePerformence
This influencing factor relates to the way we live through the activities we engage in
andinterests we express. In simple terms it is what we value out of life. LifePerformence is
oftendetermined by how we spend our time and money.
Products and services are purchased to support consumers‟ life

Performences. Marketers haveworked hard researching how consumers in their target
markets live their lives since thisinformation is key to developing products, suggesting
promotional strategies and evendetermining how best to distribute products. The fact that
lifePerformence is so directly tied tomarketing activity will be further examined as
we discuss developing target market strategies(SeeTargeting Markets)tutoria
Internal Influences: Motivation
Motivation relates to our desire to achieve a certain outcome. Many internal factors we have
already discussed can affect a customer‟s de
sire to achieve a certain outcome but there are
others. For instance, when it comes to making purchase decisions customers‟ motivation
could
be affected by such issues as financial position (e.g.,
Can I afford the purchase?
), timeconstraints (e.g.,
Do I need to make the purchase quickly?
), overall value (e.g.,
Am I getting my
money’s worth?
), and perceived risk (e.g.,
What happens if I make a bad decision?
).
46
Motivation is also closely tied to the concept of Involvement, which relates to how much
effortthe consumer will exert in making a decision. Highly motivated consumers will want to
getmentally and physically involved in the purchase process. Not all products have a
highpercentage of highly involved customers (e.g., milk) but marketers who market products
andservices that may lead to high level of consumer involvement should prepare options that
will beattractive to this group. For instance, marketers should make it easy for consumers to
learn abouttheir product (e.g., information on website, free video preview) and, for some
products, allowcustomers to experience the product (e.g., free trial) before committing to the
purchase
Internal Influences: Roles
Roles represent the position we feel we hold or others feel we should hold when dealing in
agroup environment. These positions carry certain responsibilities yet it is important to
understandthat some of these responsibilities may, in fact, be perceived and not spelled out or
even acceptedby others. In support of their roles, consumers will make product choices that
may varydepending on which role they are assuming. As illustration, a person who is
responsible forselecting snack food for an office party his boss will attend may choose higher
quality productsthan he would choose when selecting snacks for his family.
Advertisers often show how the benefits of their products aid consumers as they perform
certainroles. Typically the underlying message of this promotional approach is to suggest that
using the
advertiser‟s product will help raise one‟s status in the eyes of others while using a
competitor‟s
product may have a negative effect on status.
External Influences: Culture
Consumer purchasing decisions are often affected by factors that are outside of their control
buthave direct or indirect impact on how we live and what we consume. One example of this
arecultural factors
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47Culture represents the behavior, beliefs and, in many cases, the way we act learned by
interactingor observing other members of society. In this way much of what we do is shared
behavior,passed along from one member of society to another. Yet culture is a broad concept
that, whileof interest to marketers, is not nearly as important as understanding what occurs
within smallergroups or Sub-Cultures to which we may also belong. Sub-cultures also have
shared values butthis occurs within smaller groups. For instance, sub-cultures exist where
groups share similarvalues in terms of ethnicity, religious beliefs, geographic location, special
interests and manyothers.
As part of their efforts to convince customers to purchase their products, marketers often
usecultural representations, especially in promotional appeals. The objective is to connect
toconsumers using cultural references that are easily understood and often embraced by
theconsumer. By doing so the marketer hopes the consumer feels more comfortable with or
canrelate better to the product since it corresponds with their cultural values. Additionally,
smartmarketers use strong research efforts in an attempt to identify differences in how sub-
culturebehaves. These efforts help pave the way for spotting trends within a sub-culture,
which themarketer can capitalize on through new marketing tactics (e.g., new products, new
saleschannels, added value, etc.).
External Influences: Group Membership
In addition to cultural influences, consumers belong to many other groups with which they
sharecertain characteristics and which may influence purchase decisions. Often these groups
containOpinion Leaders or others who have major influence on what the customer purchases.
Some of the basic groups we may belong to include:
Social Class
–
represents the social standing one has within a society based on suchfactors as income level,
education, occupation
Family
–
one‟s family situation can have a strong effect on how purchase decisions are
made
48
Reference groups
–
most consumers simultaneously belong to many other groups withwhich they associate or, in
some cases, feel the need to disassociate
Identifying and understanding the groups consumers belong to is a key strategy for
marketers.Doing so helps identify target markets, develop new products, and create appealing
marketingpromotions to which consumers can relate. In particular, marketers seek to locate
group leadersand others to whom members of the group look for advice or direction. These
opinion leaders, if well respected by the group, can be used to gain insight into group
behavior and if these opinion
leaders accept promotional opportunities could act as effective spokespeople for the
marketer‟s
products.
External Influences: Purchase Situation
Purchase Situation
A purchase decision can be strongly affected by the situation in which people find
themselves. Ingeneral, a situation is the circumstances a person faces when making a
purchase decision, such asthe nature of their physical environment, their emotional state, or
time constraints. Not allsituations are controllable, in which case a consumer may not follow
their normal process formaking a purchase decision. For instance, if a person needs a product
quickly and a store doesnot carry the brand they normally
purchase, the customer may choose a competitor‟s product.
Marketers can take advantage of decisions made in uncontrollable situations in at least two
ways.First, marketers can use promotional methods to reinforce a specific selection of
products whenthe consumer is confronted with a particular situation. For example,
automotive services can bepurchased that promise to service vehicles if the user runs into
problems anywhere and atanytime. Second, marketers can use marketing methods that
attempt to convince consumers that
a situation is less likely to occur if the marketer‟s product is used. This can also be seen with
auto
products, where marketers explain that using their product will prevent unexpected damage
totheir vehicles.
49
Types of Consumer Purchase Decisions
Consumers are faced with purchase decisions nearly every day. But not all decisions are
treatedthe same. Some decisions are more complex than others and thus require more effort
by theconsumer. Other decisions are fairly routine and require little effort. In general,
consumers facefour types of purchase decisions:Minor New Purchase
–
these purchases represent something new to a consumer but in the
customer‟s mind is not a very important purchase in terms of need, m
oney or other reason (e.g.,status within a group).
Minor Re-Purchase
–
these are the most routine of all purchases and often the consumerreturns to purchase the
same product without giving much thought to other productoptions (i.e., consumer is brand
loyalty).
Major New Purchase

–
these purchases are the most difficult of all purchases because theproduct being purchased is
important to the consumer but the consumer has little or no
previous experience making these decisions. The consumer‟s lack of confi
dence inmaking this type of decision often (but not always) requires the consumer to engage
in anextensive decision-making process..
Major Re-Purchase - these purchase decisions are also important to the consumer but
theconsumer feels confident in making these decisions since they have previous
experiencepurchasing the product.For marketers it is important to understand how consumers
treat the purchase decisions theyface. If a company is targeting customers who feel a
purchase decision is difficult (i.e., MajorNew Purchase), their marketing strategy may vary
greatly from a company targeting customerswho view the purchase decision as routine. In
fact, the same company may face both situations atthe same time; for some the product is
new, while other customers see the purchase as routine.The implication of buying behavior
for marketers is that different buying situations requiredifferent marketing efforts.
50
How Consumers Buy
So now that we have discussed the factors influencing a consumer‟s decision to purchase,
let‟s
examine the process itself. This process is presented in a sequence of 5 steps as shown
below.However, whether a consumer will actually carryout each step depends on the type of
purchasedecision that is faced. For instance, for minor re-purchases the consumer may be
quite loyal tothe same brand, thus the decision is a routine one (i.e., buy the same product)
and little effort isinvolved in making a purchase decision. In cases of routine, brand loyal
purchases consumersmay skip several steps in the purchasing process since they know
exactly what they wantallowing the consumer to move quickly through the steps. But for
more complex decisions, suchas Major New Purchases, the purchasing process can extend for
days, weeks, months or longer.So in presenting these steps marketers should realize that,
depending on the circumstancessurrounding the purchase, the importance of each step may
vary.
Purchase Decision Steps 1 and 2
1. Need/Want/Desire is recognized
In the first step the consumer has determined that for some reason he/she is not satisfied (i.e.,
consumer‟s perceived actual condition) and wants to improve his/her situation (i.e.,
consumer‟s
perceived desired condition). For instance, internal triggers, such as hunger or thirst, may tell
the
consumer that food or drink is needed. External factors can also trigger consumer‟s needs.
51Marketers are particularly good at this through advertising, in-store displays and even
theintentional use of scent (e.g., perfume counters). At this stage the decision-making process
maystall if the consumer is not motivated to continue (see Motivation above). However, if
theconsumer does have the internal drive to satisfy the need they will continue to the next
step.
2. Search for Information
Assuming consumers are motivated to satisfy his or her need, they will next undertake a
searchfor information on possible solutions. The sources used to acquire this information may
be assimple as remembering information from past experience (i.e., memory) or the
consumer mayexpend considerable effort to locate information from outside sources (e.g.,
Internet search, talk with others, etc.). How much effort the consumer directs toward
searching depends on suchfactors as: the importance of satisfying the need, familiarity with
available solutions, and theamount of time available to search. To appeal to consumers who
are at the search stage,marketers should make efforts to ensure consumers can locate
information related to theirproduct. For example, for marketers whose customers rely on the
Internet for informationgathering, attaining high rankings in search engines has become a
critical marketing objective.
Purchase Decision Steps 3, 4 and 5
3. Evaluate Options
Consumers‟ search efforts may result in a set of options from which a choice can be made. It
should be noted that there may be two levels to this stage. At level one the consumer may
createa set of possible solutions to their needs (i.e., product types) while at level two the
consumer maybe evaluating particular products (i.e., brands) within each solution. For
example, a consumerwho needs to replace a television has multiple solutions to choose from
such as plasma, LCD andCRT televisions. Within each solution type will be multiple brands
from which to choose.Marketers need to understand how consumers evaluate product options
and why some productsare included while others are not. Most importantly, marketers must
determine which criteriaconsumers are using in their selection of possible options and how
each criterion is evaluated.Returning to the television example, marketing tactics will be most
effective when the marketercan tailor their efforts by knowing what benefits are most
important to consumers when selecting
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52options (e.g., picture quality, brand name, screen size, etc.) and then determine the order
of importance of each benefit.
4. Purchase
In many cases the solution chosen by the consumer is the same as the product whose
evaluationis the highest. However, this may change when it is actually time to make the
purchase. The"intended" purchase may be altered at the time of purchase for many reasons
such as: the productis out-of-stock, a competitor offers an incentive at the point-of-purchase
(e.g., store salesperson
mentions a competitor‟s offer), the customer lacks the necessary funds (e.g., credit card
notworking), or members of the consumer‟s reference group take a negative view of the
purchase
(e.g., friend is critical of purchase). Marketers whose product is most desirable to the
consumermust make sure that the transaction goes smoothly. For example, Internet retailers
have workedhard to prevent consumers from abandoning online purchase (i.e., online
shopping carts) by
streamlining the checkout process. For marketers whose product is not the consumer‟s
selected
product, last chance marketing efforts may be worth exploring, such as offering incentives
tostore personnel to "talk up" their product at the checkout line.
5. After-Purchase Evaluation
Once the consumer has made the purchase they are faced with an evaluation of the decision.
If
the product performs below the consumer‟s expectation then he/she will re
-evaluate satisfactionwith the decision, which at its extreme may result in the consumer
returning the product while inless extreme situations the consumer will retain the purchased
item but may take a negative viewof the product. Such evaluations are more likely to occur in
cases of expensive or highlyimportant purchases. To help ease the concerns consumers have
with their purchase evaluation,marketers need to be receptive and even encourage consumer
contact. Customer service centersand follow-up market research are useful tools in helping to
address
purchasers‟ concerns.
53
CHAPTER 2
54
OBJECTIVE OF THE STUDY
:Main objective: The main objective of the study is to study the buying motives of
thecustomers regarding purchasing bikes in Hero MotoCorp Ltd. (Formerly Hero Honda
MotorsLtd.).
SPECIFIC OBJECTIVES:
1. To gain an understanding of the theories and concepts of Buyer Behavior, to find the
agegroup, educational back ground, occupation / profession and income and income level of
therespondents.2. To know whether the customer is interested to purchase bikes in Hero
MotoCorp Ltd.(Formerly Hero Honda Motors Ltd.) or not.3. To find respondents reason for
purchasing the bikes
in Hero MotoCorp Ltd. (Formerly HeroHonda Motors Ltd.)
4. To know the important reason the respondents give to each factor for purchasing bikes in
HeroMotoCorp Ltd. (Formerly Hero Honda Motors Ltd.).5. To know the customer service
satisfaction from the respondents.6. To know the awareness of the brand Hero MotoCorp Ltd.
NEED FOR THE STUDY:
Customers consider various factors for purchasing of bikes in Hero MotoCorp Ltd.(Formerly
Hero Honda Motors Ltd.). The factors they consider are based on certain
demographicvariables such as income, age, occupation etc. It also depends on attributes and
life Performanceof the customer buying behavior becomes essential to get a competitive
edge.
SCOPE OF THE PROJECT
The study aims to measure buying behavior level of the customers regarding Hero
MotoCorpLtd. industries. The area within which the study was conducted regarding the
information theprimary data is collected in the form of questionnaire collected from the
dealers in Rangareddy
55
district. To sum up the project had within the scope of the study in the area of “
CustomerBuying Behavior
”
of Hero MotoCorp Ltd. in Rangareddy district for a particular time (2012).The research
measures the experiences of customers. Defines and analyses the experiences basedon key
deliverables. Gains insights into Customer expectations.
Research Methodology
SOURCES OF DATA:DATA COLLECTION INSTRUMENTS:PRIMARRY
METHOD:Primary data are those, which are collected fresh and for the first time and this
happen tobe original in character. In this study primary data was collected by interview
schedule method.SECONDARY METHOD:Secondary data are those, which are collected
from existing data. Secondary data for thisstudy include appropriate material from
newspaper, Magazines, Broachers, Company Reports,Standard Text Books, and information
from Internet has also been acquired wherever necessary.FIELD WORK:The project
involved a fieldwork of around 1 month 15 days where in the survey wascarried out.The
survey was conducted in different areas of Hyderabad such as Koti, bowenpally,
Ameerpet,L.B Nagar, Hayath nagar.
56METHODOLOGICAL ASSUMPTIONS:a)
The primary data has been collected by an interview schedule.b)
The sample for the study was selected on a convenience basisc)
All primary data collected is true and reflects the actual actions of theRespondents.d)
The data collected has been coded, tabulated and analyzed into logicalStatement using simple
statistical methods, pie charts, etc.DESCRIPTION OF THE RESEARCH DESIGN:A
research design is a logical and systematic plan prepared for directing a research studyit
specifies the methodology and technique to be adopted for achieving the objectives.
Itconstitutes the blueprint for the collection, measurement and analysis of data.The main
aim of the study is to evaluate the brand image of Hero Honda. The study isdescriptive in
nature. Surveys are best-suited method for descriptive research. So survey methodis used for
the study.The preparation of a research plan for a study aids in establishing direction to the
study andknowing exactly what has to be done and how and when it has to be done at every
stage.A research plan describes the boundaries of research activities and enables the research
tochannel his energies in the right work. With clear research objectives, in view the research
canproceed systematically towards his achievements.
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57SAMPLING PROCEDURES:Sampling is a systematic approach for selecting a few
elements from an entire collectionof units (population) in order to make some inference about
the total population it is a smallspecimen or a segment of the whole population representing
its general qualities as for aspossible. The study was undertaken by convenience
sampling.SAMPLE SIZE:The study is conducted on a sample of 100
respondents.SAMPLING FRAME:The population for the study consists of Big bazaar
owners in the cities of Hyderabad andSecunderabad.RESEARCH INSTRUMENTS:An
interview schedule was used to conduct the study.
LIMITATIONS:
I.
The Time Period Of Project Is 45 Days.II.
Though The Customers Wanted To Give Information They could not Give As It WastesTheir
Business Time.III.
The Accuracy Of The Answers Depends Upon The Mode Of Interest Of Respondents.IV.
The opinions of the sample may or may not depict the exact opinions of the totalpopulation.
58
CHAPTER 3
DATA ANALYSIS&INTERPRETATION
59AGE GROUP OF THE RESPONDENTS:The below table shows the age group of the
respondents surveyed:INFERENCE: From the above table, 8% of the respondents belong to
the age group of 18-28years, 28% of the respondents belong to the age group of 28-38 years,
10% of the respondentsbelong to the age group of 38-48 years, 54% of the respondents
belong to the age group of above48 years.
0204060801001201 8 - 2 8 2 8 - 3 8 3 8 -
4 8 A b o v e 4 8 T o t a l
No Of Respondents
No Of Respondents
AGE No Of Respondents18-28 828-38 2838-48 10Above 48 54Total 100
60OCCUPATION OF THE RESPONDENTS:The below table shows the type of respondents
of the respondents surveyed.INFERENCE: From the above table 0% of the respondents are
students, 50% of the respondentsare businessmen, 32% of the respondents are private
employee, 18% of the respondents are Govtemployee.
0102030405060708090100
No Of Respondents
No Of Respondents
Occupation No Of RespondentsStudent 0Business
50Private Employee 32Govt Employee 18Total 100
61WANTING A BIKE OR NOT:The below table shows that whether the respondents is
wanting a bike or notWanting a bike or not No of respondentsYes 80No 20Total
100INFERENCE:From the above table 80%of people wanting bike and 20% do not want
bike.
80%20%
Having a two wheeler or not
YesNo
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62TYPE OF BIKE THAT THE RESPONDENT IS WANTING:The below table shows the
type of BIKE that the respondent is
wanting.Type of BIKE No of respondents % of respondents100CC51 51180CC14
14150CC26 26200CC09 9INFERENCE:From the above table 51%of the respondents are
Wanting Hero MotoCorp Ltd 100CC BIKE.14%of the respondents want 180CC. 26%of the
respondents are wanting 150CC.9% of therespondents want 200CC.
0204060801001201 0 0 C C 1 8 0 C C 1 5 0 C C 2 0 0 C C
% of respondentsNo of respondents
63SOURCES OF INFORMATIONThe below table shows, from where did the respondent
get the information about theBIKE.Sources of information No of respondentsOffers
15Advertisements 27Referred from friends & relatives 33Technology
10Finance Schemes 15Total 100INFERENCE:From the above table 15%of people known
from offers, 27% of people known fromadvertisements, and 33% of people known from their
friends and relatives, 10% of people knownfrom technology, 15% of people known from
finance schemes.
15.00%27.00%33%10%15%OffersAdvertisementsReferredfromfriends&relativesTechnologyFinance Schemes
64SATISFACTION WITH HERO MOTOCORP LTD BIKE:INFERENCE:From the above
table 17% of the respondents preferred PERFORMENCE as their main motive,22% of the
respondents preferred PRICE as their main motive, 4%of the respondents
preferredFEATURES as their main motive, 22% of the respondents preferred TRANSPORT
as theirmain motive, 2% of the respondents preferred RELIABILITY as their main motive,
21% of therespondents preferred BRAND IMAGE as their main motive.
0%10%20%30%40%50%60%70%80%90%100%PoorAverageGoodVery goodExcellent
HERO Performance Mileage Features Price pickup Reliability Brand ImageExcellent 10 25
24 02 05
08 20Very good 25 24 15 18 06 02 20Good 10 21 25 12 15 35 25Average 21 10 10 14 5 6 8P
oor 0 2 1 8 2 3 1
65PERFORMENCE:The following table shows that, some of the brands of bikes respondents
selected performance astheir main motive.INFERENCE:The above table shows that Bajaj
and Honda companies are the competitors with HERO Bikes.
No of respondents
HEROBAJAJHONDASUZIKITotal
Brand No of respondentsHERO 32BAJAJ 35HONDA 30SUZIKI 03Total 100
66
PRICE:
The following table shows that, some of the brands of respondents selected PRICE as their
mainmotive.Brand
No of respondents
HERO 31BAJAJ 18HONDA 42SUZIKI 9Total 100INFERENCE:The above table shows that
HONDA is the competitor with HERO MOTO CORP LTD.
020406080100120H E R O B A J A J H O N D A S U Z I K I T o t
a l
No of respondents
No of respondents
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67PICK UP:The following table shows that, some of the brands of respondents selected
PICK UP astheir main motive.Brand No of respondentsHERO 50BAJAJ 10HONDA
30SUZIKI 10Total 100INFERENCE:The above table shows that HERO is the best.
No of respondents050100HEROBAJAJHONDASUZIKITotal
A x i s T i t l e
H E R O B A J A J H O N D A S U Z I K I T o t
a l No of
respondents5 0 1 0 3 0
1 0 1 0 0
No of respondents
68MILEAGE:The following table shows that, some of the brands of respondents selected
MILEAGE as theirmain motive.MILEAGE No of respondentsHERO 50BAJAJ 10HONDA
30SUZIKI 10Total 100INFERENCE:The above table shows that HERO is the best.
a l
No of respondents
No of respondents
69RELIABILITY:The following table shows that, some of the brands of respondents selected
RELIABILITY astheir main motive.Reliability No of respondentsHERO 35BAJAJ
15HONDA 30SUZIKI 20Total 100INFERENCE:The above table shows that HONDA is the
competitor with HERO .
a l
No of respondents
No of respondents
70FEATURES:The following table shows that, some of the brands of respondents selected
FEATURES as theirmain motive.FEATURES No of respondentsHERO 35BAJAJ
15HONDA 30SUZIKI 20Total 100INFERENCE:The above table shows that HERO is the
best.
a l
No of respondents
No of respondents
71BRAND IMAGE:The following table shows that, some of the brands of respondents
selected BRAND IMAGE istheir main motiveBrand Image No of respondentsHERO
40BAJAJ 20HONDA 30SUZIKI 10Total 100INFERENCE:The above table shows that
HERO is the best.
020406080100120H E R O B A J A J H O N D A S U Z I K I
T o t a l
No of respondents
No of respondents
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72
Respondents:
Respondents who want to buy the BIKE of a particular brand:Brand No of respondentsHERO
40BAJAJ 15HONDA 30SUZIKI 15Total 100INFERENCE:The above table shows 40% of
the respondents want to buy HERO BIKES.
020406080100120H E R O B A J A J H O N D A S U Z I K I
T o t a l
No of respondents
No of respondents
73
CHAPTER-
IV
74
CONCLUSION
45% of the respondents are Hero MotoCorp Ltd customers and hence it is mostPreferred
BIKE brand out of various brands.
Hero MotoCorp Ltd 150CC is the most preferred model out of all products
60% of the respondents are considering Hero MotoCorp Ltd brand beforePurchasing there for
use.
Most of the respondents are getting information through friendsBefore purchasing the BIKE.
Most of the respondents are Wanting good satisfaction with dealerService comparing to other
brands.
Most of the respondents are giving more preference to mileage.
60% of the respondents are affecting by their friends and relatives.
75
FINDINGS
50% of the Hero MotoCorp Ltd customers are business people and 32% of the customersare
private employees.
Most of the respondents belong to the age group of 18-50 years.
Hero MotoCorp Ltd 150CC is the most preferred model in the Hero MotoCorp Ltdproducts.
Most of the respondents getting information through the Media and friends beforepurchasing
the vehicle.
Most of the respondents are motivated by their friends and family members.
Most of the respondents have good satisfaction with the performance of their BIKEstrength.
64% of the respondents are satisfied with the mileage of their BIKE.
Most of the respondents felt that the price is reasonable.

Cent percent of the respondents satisfied with the response of the sales executive at firstvisit.
60% of the Hero MotoCorp Ltd users have good satisfaction with the performance givenb the
company.
Most of the respondents are satisfied with the response of the company to the
complaintsgiven by the customers.
Most of the respondents are satisfied with the fulfillment of promises by the company.
76
SUGGESTIONS
The BIKEs recently introduced by Hero MotoCorp Ltd are mostly concerned about
homebase. So, they should also consider commercial people while manufacturing.
Indian market is a price sensitive market‟s the BIKEs should be at Minimum price with
maximum quality.
The standard of pricing should be improved.
Advertisements in Televisions, offers should be increased to attract the People.
If Hero MotoCorp Ltd can improve in Performance and brand image it will be the best inall
the other competition brands.
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77
QUESTIONNAIRE
BUYING MOTIVES FOR TWO WHEELERS1. NAME :2. AGE :18-25 25-35 35-
45 Above-453. GENDERMale Female4.
EDUCATIONUnder Graduate Graduate Post Graduate Professional5.
OCCUPATIONStudent Business Govt. Employee Private Employee6. INCOME PER MON
TH5000-10000 10000-20000 20000-300007. DO YOU HAVE OWN BIKEYes
No8. IF YES, WHICH BRAND YOU H

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A Project Report onA Study on CONSUMER BUYING

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Principal and Dr.P.Narasimha

OBJECTIVES OF THE STUDYNEED & SCOPE OF THE STUDYRESEARCH

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8In the 1980s, a number of Japanese manufacturers launched joint-ventures for

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13Haridwar, in the hill state of Uttrakhand.

In the 1980‟s Hero Honda pioneered the introduction of fuel

Name of the Directors

151Mr. Brijmohan Lall Munjal

MR. BRIJMOHAN LALL MUNJAL

Name of Company Nature of Office

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17500,000th motorcycle produced

Awards & Recognitions

Two-wheeler Manufacturer of the Year

CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

NDTV Profit Business Leadership Award 2008

No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

Overall "Bike of the Year" - CBZ X-treme

"Bike of the Year" - CBZ X-treme (up to 150 cc category)

Splendor Plus (Executive)

22Certificate of Export Excellence for outstanding export performance during 2003-04

Bike Maker of the Year

Bike of the Year - Achiever

Bike of the Year - Achiever (up to 150 cc category)

Bike of the Year - Glamour (up to 125 cc category)

NDTV Viewers' Choice Award to Glamour in the bike category

STAKEHOLDER TIES AT THE GRASSROOTS

Installation of deep bore hand pumps to provide clean drinking water.

Ensuring a proper drainage system at each of these villages to prevent water-logging.

Promoting non-conventional sources of energy by providing a 50 per cent subsidyon biogas

AN ENVIRONMENTALLY AND SOCIALLY, AWARECOMPANY

Continue product innovations to improve environmental compatibility.

Institutionalise resource conservation, in particular, in the areas of oil, water,electrical energy,

Enhance environmental awareness of our employees and dealers / vendors, whilepromoting

Excellence in quality is the core value of Hero Honda's philosophy

Innovation in products, processes and services.

Teamwork and responsibility.

Hero Honda is committed to safety and health

Integrating safety and health matters in all our activities.

Ensuring compliance with all applicable legislative requirements.

Empowering employees to ensure safety in their respective work places.

Promoting safety and health awareness amongst employees, suppliers andcontractors.

Continuous improvements in safety performance through precautions besidesparticipation

PHOENIX MOTORS PVT LTD

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A Action to achieve customer‟s appreciation.

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33What influences consumers to purchase products or services? The consumer buyingprocess

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38CONSUMER PERCEPTIONIt can be defined as the process by which an individual

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