JAGANNATH institute of MANAGEMENT

STUDIES

REPORT ON
COSUMER BUYING BEHAVIOUR OF
car

Submitted to:- Submitted by:-

Prof. Madhur Jain Nikunj Walia(roll no. 13)

Pramod Semwal(roll no. 14)

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 ACKNOWLEDGEMENT

We wish to express our sincere thanks to prof. Mr. Madhur jain,

visiting faculty- jagannath institute of management study,
greater noida for giving us the opportunity to work on the
marketing research of consumer buying behaviour of car. This
has given us the insight of how consumers buying behaviour
got influenced by certain factors. I got the opportunity to do this
project in noida and greater noida in various colleges and
societies. The project is the important part of our study and
gives us a real practical exposure to study the consumers
buying behaviour in corporate world.

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 INDEX

S. No. Topics
1 Introduction 4
2 History 5
3 Executive summary 6
4 Indian car industry 7
5 Objective 10
6 methodology 10
7 Descriptive 11
8 Analysis 13
9 Conclusion 34
10 Questionnaire 35
11 Bibliography 36

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 Introduction
The Automotive industry in India is one of the largest in the world and one of the
fastest growing globally. India manufactures over 11 million vehicles (including 2
wheeled and 4 wheeled) and exports about 1.5 million every year. India's passenger
car and commercial vehicle manufacturing industry is the seventh largest in the
world, with an annual production of more than 2.6 million units in 2009. In 2009, India
emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand. As of 2009, India is home to 40 million passenger vehicles and
more than 2.6 million cars were sold in India in 2009 (an increase of 26%), making
the country the second fastest growing automobile market in the world.  According to
the Society of Indian Automobile Manufacturers, annual car sales are projected to
increase up to 5 million vehicles by 2015 and more than 9 million by 2020.

A chunk of India's car manufacturing industry is based in and around Chennai,

also known as the "Detroit of India" with the India operations of BMW, Ford,
Hyundai and Nissan headquartered in the city. Chennai accounts for 60 per cent of
the country's automotive exports. Gurgaon and Manesar in Haryana are hubs where
all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor
near Pune, Maharashtra is another vehicular production hub with companies
like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata
Motors, Mercedes Benz, Fiat and Force Motors having assembly plants in the
area. Ahmedabad with the Tata Nano plant, Halol with General
Motors, Aurangabad with Audi, Kolkatta with Hindustan Motors, Noida with Honda
and Bengaluru with Toyota are some of the other automotive manufacturing regions
around the country

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 HISTORY
The first car ran on India's roads in 1897. Until the 1930s, cars were imported
directly, but in very small numbers.

Embryonic automotive industry emerged in India in the 1940s. Mahindra &

Mahindra was established by two brothers as a trading company in 1945, and began
assembly of Jeep CJ -3A utility vehicles under licence from Willys. The Company
soon branched out into the manufacture of light commercial vehicles (LCVs) and
agricultural tractors.

Following the independence, in 1947, the Government of India and the private

sector launched efforts to create an automotive component manufacturing industry to
supply to the automobile industry. However, the growth was relatively slow in the
1950s and 1960s due to nationalisation and the licence raj which hampered the
Indian private sector. After 1970, the automotive industry started to grow, but the
growth was mainly driven by tractors, commercial vehicles and scooters. Cars were
still a major luxury. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog A number of foreign firms initiated joint
ventures with Indian companies.

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

building motorcycles and light commercial-vehicles. It was at this time that the Indian
government chose Suzuki for its joint-venture to manufacture small cars. Following
the economic liberalisation in 1991 and the gradual weakening of the license raj, a
number of Indian and multi-national car companies launched operations. Since then,
automotive component and automobile manufacturing growth has accelerated to
meet domestic and export demands.

Following economic liberalization of India in 1991, the Indian automotive industry has

demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata motors, Maruti
Suzuki and Mahindra and Mahindra, expanded their domestic and international
operations. India's robust economic growth led to the further expansion of its
domestic automobile market which has attracted significant India -specific
investment by multinational automobile manufacturers In February 2009, monthly
sales of passenger cars in India exceeded 100,000 units and has since grown
rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to
2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of
Indian households owning a car in 2009 (whereas this figure reaches 80% in

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Switzerland for example) this progression is unlikely to stop in the coming decade.
Congestion of Indian roads, more than market demand, will likely be the limiting
factor.

Executive summary
Competitive pressures and increasing complexity have led automotive companies to
look for an edge wherever they can find it. Improved consumer insight into vehicle
shopping and buying behaviour can provide that valuable advantage. Our report
contains insight that can help vehicle manufacturers and dealers develop and
execute more effective strategies in areas such as sales, marketing and advertising,
after sales service, Customer Relationship Management (CRM) and
manufacturer/dealer collaboration.

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 AUTOMOBILE INDUSTRY IN INDIA
In India there are 100 people per vehicle, while this figure is 82 in China. It is
expected that Indian automobile industry will achieve mass motorization status by
2014.
Industry overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry
of India has come a long way. During its early stages the auto industry was overlooked by the then
Government and the policies were also not favourable. The liberalization policy and various tax reliefs
by the Govt. of India in recent years have made remarkable impacts on Indian Automobile Industry.
Indian auto industry, which is currently growing at the pace of around 18% per annum, has become a
hot destination for global auto players like Volvo, General Motors and
Ford.

A well developed transportation system plays a key role in the development of an economy, and India is
no exception to it. With the growth of transportation system the Automotive Industry of India is also
growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. Today Indian
automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03
broad categories: Cars, two-wheelers and heavy vehicles.
 The first automobile in India rolled in 1897 in Bombay.
 Foreign players are adding to their investments in Indian auto industry.
 Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
 Tata Motors dominates over 60% of the Indian commercial vehicle market.
 India is the second largest tractor manufacturer in the world.
 India is the fifth largest commercial vehicle manufacturer in the world.
 India is the fourth largest car market in Asia - recently crossed the 1 million mark.

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Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger
cars and is a complete monopoly in multi-purpose vehicles. In utility vehicles Mahindra holds
42% share. In commercial vehicle, Tata Motors dominates the market with more than 60% share.
Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.

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 Major Manufacturers in Automobile Industry

 Maruti Udyog Ltd.

 General Motors India
 Ford India Ltd.
 Eicher Motors
 Bajaj Auto
 Daewoo Motors India
 Hero Motors
 Hindustan Motors
 Hyundai Motor India Ltd.
 Royal Enfield Motors
 Telco

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Objective:-

1. General objectives

 To identify the factors that influences the customer to

purchase the four-wheeler.
 To find out how the customers are motivated and
encourage purchasing four-wheeler.

2. Specific objectives

 To identify the factor influence the customer on the basis

of price, brand, feature, look, mileage, engine power,
after sale service, safety feature, location of the car
dealer, advertisement and promotions

 To identify the personal factors influence the customer on

the basis of age, income level, occupation and status.

Methodology:-

The project is based on primary data –

Primary data:-

a) Information from sample size of 68 respondents.

b) Questionnaire design- close ended questions
c) Research place – Noida and Greater noida

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 DESCRIPTIVES

Statistics

gender age occupation

N Valid 68 68 68

Missing 0 0 0

Mean 1.2059 2.3971 2.7353

Median 1.0000 2.0000 3.0000

Mode 1.00 2.00 3.00

Std. Deviation .40735 .79438 .74549

Variance .166 .631 .556

Skewness 1.488 1.914 -1.305

Std. Error of Skewness .291 .291 .291

Kurtosis .219 2.610 1.341

Std. Error of Kurtosis .574 .574 .574

Range 1.00 3.00 3.00

FRQUENCY TABLE

Gender

Cumulative
Frequency Percent Valid Percent Percent

Valid male 54 79.4 79.4 79.4

female 14 20.6 20.6 100.0

Total 68 100.0 100.0

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 Age

Cumulative
Frequency Percent Valid Percent Percent

Valid 18-25 52 76.5 76.5 76.5

26-35 7 10.3 10.3 86.8

36-50 7 10.3 10.3 97.1

above 50 years 2 2.9 2.9 100.0

Total 68 100.0 100.0

Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid service 8 11.8 11.8 11.8

business 6 8.8 8.8 20.6

student 50 73.5 73.5 94.1

housewife 4 5.9 5.9 100.0

Total 68 100.0 100.0

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 ANALYSIS
1) Age:- FOUR CATEGORY

OPTIONS NO. OF RESPONDENT PERCENTAGE

18-25 years 52 76.5%
26-35 years 07 10.3%
36-50 years 07 10.3%
Above 50 years 02 2.9%

Above table presenting the percentage of respondent participated in the survey in

different age group.

Above figure presenting the percentage of respondent participated in the survey in

different age group.

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Interpretation:- from the above diagram we can find out that 76.5% people are age
between 18-25 years and similarly 10.3% people are age between 26-35 years and
10.3% people comes between 36-50 years and 2.9% people are above 50 years.
2) On the basis of gender:-

MALE 54 79.4%
FEMALE 14 20.6%

Interpretation:-

From the above figure it is clearly presented that 79.4% male

and only 20.6% female has given their views or express their buying behaviour about
car.

3) Occupation:-

OCCUPATION NO OF RESPONDENT PERCENTAGE

Service 8 11.8%
Business 6 8.8%
Student 50 73.5%
Housewife 4 5.9%

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 Above table and figure presenting the percentage of respondent participated in
survey.

Interpretation:-

The above diagram shows that 11.8% people are doing service, 8.8% are business
people, 73.5% people are students and only 5.9% are housewife.

4) According to you which of these factors are affecting car

purchasing decision?

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 4.1) price of the car:-

Price of the car

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 30 44.1 44.1 44.1

agree 33 48.5 48.5 92.6

neutral 4 5.9 5.9 98.5

disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- Above diagram shows that 44% people strongly agree,48.5%

agree that price play a very crucial role in buying behaviour. 5.9% didn’t say anything
and only 1.5% disagree.

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 4.2) suggestions from the family were taken:-

Suggestion from family

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 24 35.3 35.3 35.3

agree 33 48.5 48.5 83.8

neutral 9 13.2 13.2 97.1

disagree 2 2.9 2.9 100.0

Total 68 100.0 100.0

Interpretation:- From the above diagram it is clear that only 44.1% people strongly
agree, 48.5% which is largest agreed, 5.9% remain neutral and only 1.5% disagree
in taking suggestion from the family members.

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4.3) income level:-

Income level

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 38 55.9 55.9 55.9

agreee 27 39.7 39.7 95.6

neutarl 3 4.4 4.4 100.0

Total 68 100.0 100.0

Interpretation:- From the above table and graph it is clear that 55.9% people
strongly agreed to purchase car according to their income level and 39.7%
agree, 4.4% remain neutral.

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 4.4) brand name:-

Brand name

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 34 50.0 50.0 50.0

agree 21 30.9 30.9 80.9

neutral 11 16.2 16.2 97.1

disagree 2 2.9 2.9 100.0

Total 68 100.0 100.0

Interpretation:- From the above diagram it is clear that 50% people strongly agree
to purchase car according to brand value. 30.9% also agree, 16.2% remain neutral
and only 2.9% disagree.

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4.5) status symbol:-

Status symbol

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 25 36.8 36.8 36.8

agree 28 41.2 41.2 77.9

neutral 11 16.2 16.2 94.1

disagree 3 4.4 4.4 98.5

strongly disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above diagram it is clear that 36.8% people strongly
agree to purchase car for status symbol car. 41.2% also agree, 16.2% remain
neutral and only 5.9% disagree.

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4.6) After sale service:-

After sale service

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 34 50.0 50.0 50.0

agree 26 38.2 38.2 88.2

neutral 6 8.8 8.8 97.1

disagree 1 1.5 1.5 98.5

strongly disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

From the above table and diagram it is presented that 50% people strongly agree to
take purchase decision according to the after sale service of a company. About
38.2% also agree upon the same behaviour, 8.8% remain neutral, 1.5% disagree to
this fact and also 1.5% strongly disagree

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4.7) instalment payment facility:-

Instalment payment facility

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 28 41.2 41.2 41.2

agree 29 42.6 42.6 83.8

neutral 8 11.8 11.8 95.6

disagree 2 2.9 2.9 98.5

strongly disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

From the above table it is clear that 42.6% people agree that they like to purchase
car on instalment facility, about 41.2% strongly agree to it, 11.8% people didn’t say
anything, 4.3% disagree to it.

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4.8) mileage:-

Mileage

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 35 51.5 51.5 51.5

agree 21 30.9 30.9 82.4

neutral 9 13.2 13.2 95.6

strongly disagree 3 4.4 4.4 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is presented that 51.5% people strongly
agree to purchase car on the basis of mileage, and 30.9% also agree upon it, 13.2%
people remain neutral and 4.4% disagree to mileage.

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4.9) engine power:-

Engine power

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 42 61.8 61.8 61.8

agree 21 30.9 30.9 92.6

neutral 3 4.4 4.4 97.1

disagree 1 1.5 1.5 98.5

strongly disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is clear that 61.8% of the people strongly
agree to purchase car with powerful engine, 30.9% people also agree upon the
same view, 4.4% people remain neutral and only 3%% disagree to it.

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4.10) Looks:-

Look

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 47 69.1 69.1 69.1

agree 14 20.6 20.6 89.7

neutral 6 8.8 8.8 98.5

disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is clearly depicted that mostly i.e. 69.1% of
people strongly agree to purchase car of good look, 20.6% also agree upon the
same behaviour, 8.8% people didn’t say anything and very few i.e. 1.5% disagree to
it.

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4.11) Easily availability of spare parts:-

Easily available spare parts

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 36 52.9 52.9 52.9

agree 21 30.9 30.9 83.8

neutral 7 10.3 10.3 94.1

disagree 4 5.9 5.9 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is presented that 52.9% people strongly
agree that their purchasing behaviour get influenced by availability of spare parts,
30.9% also agree with the same fact, 10.3% remain neutral and only 5.9% disagree.

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4.12) availability of service stations:-

Availability of service station

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 33 48.5 48.5 48.5

agree 24 35.3 35.3 83.8

neutral 8 11.8 11.8 95.6

disagree 2 2.9 2.9 98.5

strongly disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

From the above table it is clear that 48.5% people strongly agree about the
availability of service station before buying the car and 35.3% agree to the same
fact, 11.8% remain neutral and only 2.9% disagree and 1.5% strongly disagree.

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4.13) Technology:-

Technology

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 39 57.4 57.4 57.4

agree 24 35.3 35.3 92.6

neutral 4 5.9 5.9 98.5

disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above table it is presented that 57.4% strongly agree on
the technology of the car,35.3% also agree on the same,5.9% remain neutral and
only 1.5% disagree.

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4.14) family need:-

Family need

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 23 33.8 33.8 33.8

agree 35 51.5 51.5 85.3

neutral 7 10.3 10.3 95.6

disagree 3 4.4 4.4 100.0

Total 68 100.0 100.0

Interpretation:- from the above table and graph it is clear that 85.3% people
strongly agree that they will buy car for family need purpose. 10.3% people remain
neutral and 4.4% disagree.

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4.15) Government policies and regulation:-

Govt policies and regulation

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly agree 14 20.6 20.6 20.6

Agree 18 26.5 26.5 47.1

Neutral 27 39.7 39.7 86.8

Disagree 7 10.3 10.3 97.1

strongly disagree 2 2.9 2.9 100.0

Total 68 100.0 100.0

Interpretation:- above table and diagram shows that about 57% people consider the
govt policies and regulation one of the key influencer factor in buying decision of car. A
large segment i.e. about 40% didn’t shows their view and only 5.3% disagree to it.

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4.16) Festive season:-

Festive season

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 19 27.9 27.9 27.9

Agree 24 35.3 35.3 63.2

Neutral 14 20.6 20.6 83.8

Disagree 10 14.7 14.7 98.5

strongly disagree 1 1.5 1.5 100.0

Total 68 100.0 100.0

Interpretation:- From the above table and diagram it is clear that 27.9% people
strongly agree to buy car in festive season, 35.3% also agree to the same fact, 20.6%
didn’t say anything and about 16% disagree to it.

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4.17) Advertisement and promotion:-

Advertisement and promotions

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 21 30.9 30.9 30.9

Agree 26 38.2 38.2 69.1

Neutral 15 22.1 22.1 91.2

Disagree 6 8.8 8.8 100.0

Total 68 100.0 100.0

Interpretation:- From the above table and diagram it is clear that about 69.1% people
agree that the advertisement and promotions of car is one of the driving force which
influence their purchasing behaviour of car. 22.1% people didn’t say anything and
8.8% disagree to it.

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4.18) safety feature:-

Safety feature

Cumulative
Frequency Percent Valid Percent Percent

Valid strongly agree 42 61.8 61.8 61.8

Agree 19 27.9 27.9 89.7

Neutral 5 7.4 7.4 97.1

Disagree 2 2.9 2.9 100.0

Total 68 100.0 100.0

Safety feature:- From the above diagram it is clear that safety feature is one of the
factor which influence consumers purchase behaviour. 61.8% people strongly agree
with this fact, 27.9% only agree to it, 7.4% remain neutral and 2.9% disagree to it

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 CONCLUSION
On the basis of data gathered from the customer survey we concluded that:-
 82.4% people considered mileage most important.
 80.9% people go for brand name.
 92.6% people considered price as most sensitive in purchasing decision.
 92.7% people considered engine power important while purchasing vehicle.
 89.7% people get attracted by look of the car.
 89.7% people give preference to safety features present in the car.
 92.6% people says that modern or advance technology leads them to
purchase the car.

From above data overall approximately 89% people buying behaviour of car get
motivated by price, look, engine power, brand name, technology, mileage and by
their income level.

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 Questionnaire
(Consumer buying behaviour of car)

Demographic factor

Gender m male female

Age below 18 18-25 26-35 36-50 above 50 years

Occupation

Service business student housewife

According to you which of these factors are affecting car purchasing decision in noida and greater
noida. Please fill according to instruction in bracket below.
(SA- strongly agree, A- agree, N- neutral, DA- disagree, SDA- strongly disagree)
Si no. Statement SA A N DA SDA

1 Price of the car

2 suggestion from the family were
taken while purchasing a car
3 Family need
4 Income level
5 Brand name
6 Status symbol
7 Festive season
8 Special family programs,
9 Family member and friend circle
10 Government policies and regulations
11 Advertisement and promotions
12 After sale service
13 Instalment payment facility
14 Location of the car dealers
15 Information provided by sales person
16 Availability of variety of cars in one
roof
17 Information provided by various car
related magazines.
18 Mileage
19 Engine Power
20 Looks
21 Safety feature
22 Easily availability of spare parts
23 Availability of service stations
24 Technology

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 Bibliography

 Author R.P. Mishra, Text book research methodology.

 Marketing research text note, by prof. Mr. Madhur jain
 Internet website –cargadi.com, www.skoda-auto.co.in, www.india.ford.com,
www.google.com
 Wikipedia.
 SPSS software.
 E-book of spss statistics base user guide.

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