5074 PDF

Journal of Management Research and Analysis (JMRA)
ISSN: 2394-2770, Impact Factor: 4.878, Available online at http://jmraonline.com

Volume 06 Issue 01, January 2019, Special Issue (ICSMPPP)
A STUDY ON INFORMATION SOURCES AND PRODUCT ATTRIBUTES THAT

INFLUENCE ON NEW BIKE PURCHASE OF YOUNG ADULTS IN TRICHIRAPPALLI,
WITH REFERENCE TO ROYAL ENFIELD
Mr. S. SYED MUTHALIFF

MBA.,M.Phil.,
Assistant Professor
Department of Management Studies,
Saranathan College of Engineering.
Tiruchirappalli, Tamilnadu, India
VITHAKI. B
B.B.A., MBA.,
II MBA STUDENT
SUGASHINI. S
B.E., MBA.,
II MBA STUDENT
ABSTRACT
Information is an important aspect in our life. Information or knowledge about the product he
intends to purchase is very important for a customer. Similarly, knowledge about the sources from
where the customers are getting information is very vital for a marketer for channelizing his marketing
communications in such a way that it will reach his target customers in the right way at minimal cost.
In that context, the present study is intended to investigate and identify the information sources through
which customers are gathering information on two-wheelers and the relative importance of these
sources on their purchase decision. This study also tends to analyse the effects of the socio-economic
characteristics of consumers on these information sources. This study is based on a questionnaire survey
conducted among 100 Two-wheeler users in Trichy district of Tamilnadu. Statistical tools like Chi-
square analysis, Multiple Regression, Factor analysis and Percentage test has been used for the
meaningful analysis and interpretation of data. This study will be a ready reckoner for the two-wheeler
manufacturing companies and dealers to identify the sources of information which the customers
consider to be the most reliable and highly influential in their selection of two-wheeler brands/models.
The findings of this study will equip them to make their marketing efforts to be more customers centric
and will also facilitate them in the selection of the right medium for communicating with the customers.
INTRODUCTION:
Information refers to the bundle of knowledge or facts on a person, product, process, event or
anything. Information is conveyed either as the content of a message or through direct or indirect
observation of something. Information Search is a stage in the Consumer Decision Process during which
a consumer searches for internal or external information.
According to Philip Kotler, the buying process starts when the buyer recognizes a problem or need.
This need can be triggered by internal stimuli (such as feeling hunger or thirst) or external stimuli (such
as seeing an ad) that then becomes a drive. He also says that an aroused consumer who recognizes a
problem will be inclined to search for more information. If the consumer's drive is strong and a
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satisfying product is near at hand, the consumer is likely to buy it then. If not, the consumer may simply
store the need in memory or undertake an information search related to the need.
Modern day customers are very keen to collect information from all the available sources before
making their final purchase decision and they are also showing a tendency to share this information
with others. In the case Two-wheelers also there are so many sources of information to the customers.
Advertisements:
It is a well-known fact that Advertisements are the most effective source of imparting product
knowledge to the customers. Advertising is the powerful instrument to choose the peoples' choice.
Advertisements also have power like: the power to choose, the power to think for themselves, and the
power to influence others. (Allen and Semenik, 2003). Now days all major Two-wheeler manufacturers
are advertising their bikes and scooters in televisions, newspapers, internet etc. They are spending
enormous amount of money for advertising every year. For example: Hero Motocorp has spent Rs.669
crores (2.42 percent of their annual revenue) for advertising in the financial year ended March 2015
compared to Rs.494 crores the previous year. During the same period Bajaj Auto Limited has spent
Rs.321 crores (1.48 percent of their annual revenue) for advertising compared to Rs.262 crores the
previous year. These two companies ranked 2nd and 5th in the list of Top 5 automobile companies of
India in terms of advertisement expenditure during the financial year ended March 2015 (Business
Standard, September 1, 2015).
Review Shows in Television:
Automotive review shows in televisions have come a long way during the last ten years. There
are at least 30 incredible automotive-themed television shows telecasting in various Indian television
channels today. Some focus on road and track testing, some on adventures and some on the aesthetic as
well as technical features of the vehicles. They take a long time to plan, film and edit and are also
expensive to make. It will be a risky proposition to rate which of these shows is the best for the real
automobile enthusiasts. There are many regular viewers to these programmes who are very keen to see
all the latest vehicles in the market and to know more about them.
News Paper Reports & Review Articles:

Now days, almost all newspapers use to dedicate a special page or column for the current
updates on automobiles. They use to give news items on vehicle launches, sales figures, upcoming
vehicle models, gist of company reports, reviews of latest models, customer feedbacks etc in these
pages/columns which are regularly followed by many a number of automobile enthusiasts. We cannot
come along a single newspaper in India, which doesn’t have a page/section for automobiles. Some
newspapers have sequentially extended these columns and pages to special booklets/supplements and
there to dedicated automotive magazines. Readers get updated on the latest developments in the
automobile industry from these reports and articles and get influenced by what they read in their
decision to buy cars or two-wheelers.
Dealers:
Dealers are certainly one among the most important sources of information on two-wheelers.
Customers who are intended to buy a two-wheeler or those wanted to know more about two-wheelers
can make a walk in to a two-wheeler showroom from where they will get a deep pool of information
about the brand and models of two-wheelers traded by that dealer. The sales people at the dealerships
will provide them the necessary information such as features of different models, price, benefits, offers,
finance facilities, mode of purchase etc. Customers can also see the different model of two-wheelers,
touch it, feel it and even make a test drive to get more clear knowledge of the two-wheeler models. A
major drawback of the information received from dealerships is that they may be biased. The dealer
may provide some exaggerated information about his own brand by hiding its negative attributes and
speaking badly about his rival brands to lure the customer to purchase from him.
Automotive Magazines:

Today there are more than 1000 automotive magazines pan India that provide the most updated
information on latest model of vehicles, statistical data and figures on automotive sales, import and
export, news items on vehicle launches, upcoming vehicle models, test drive reports, user reviews and
feedbacks on latest models, customer feedbacks etc. They also facilitate the comparison of the vehicles
from different brands in the same segment which may enable the customer to choose the vehicle that
suits him the best. The well covered features in these magazines with colour photos, figures, charts and
graphs are a great source of information to many a number of automobile enthusiasts and customers.
Top Gear, Over Drive, Fast Track, Auto Bild, Auto Express, Business Standard Motoring, Motor India,
Zigwheels, Auto Today, and xBhp are examples of automotive magazines in India with a wide
readership base. There are also some magazines that provide exclusive information on Two-wheelers
like Bike India, Super Bike, Hot Bike, Rider, Ignition, Dirt Bike etc.
Two-wheeler Mechanics:
Mechanics are dealing with different types of vehicles daily. Hence there is a general perception
that the mechanics tend to know the pros and cons of all brands and models of vehicles. As a result we
can see an increasing tendency of seeking the advice and suggestions of the mechanics for making a
purchase decision. Let it be a bike, scooter, car or even a car. It is a fair truth that mechanics are
becoming the prime opinion givers for the purchase of automobiles. Some automobile companies have
even started the practice of giving incentives to the automobile mechanics for giving favourable
feedback on their vehicles to the customers and induce them to purchase their brand.
Internet:
According to ‘Internet in India 2015’ Report released by the Internet and Mobile Association
of India (IAMAI) and IMRB International, the number of Internet users in India is expected to reach
462 million by 2016, registering a growth of 49 per cent over the previous year. High internet
penetration across tier-II and tier-III cities along with rising disposable income shall lead to
approximately 80 million transactions on the internet by 2020. In this scenario, the number customers
accessing internet for getting information about the products they intend to purchase has also witnessed
a tremendous increase. Similarly in the case of two-wheelers also there is an increasing tendency among
the prospective customers to rely on the internet for collecting information related to its features, price,
user feedback, test drive reports etc. Apart from the official websites of the two-wheeler manufacturers,
today there are many other websites and portals to help the customers for this purpose such as
www.bikeportal.in, www.bikeindia.in, www.zigwheels.com, www.drivespark.com, www.gaadi.com,
www.xbhp.com, www.infibeam.com, www.compareindia.ibnlive.com, www.mouthshut.com etc.
Moreover many companies have started their own official social media pages with some contents which
are highly useful to the customers like vehicle service and maintenance guidelines, driving safety
guidelines etc. Last but not the least, today’s new generation customers are interacting with their social
media friends in Facebook and Twitter about their two-wheeler purchase intentions and are seeking the
suggestions and recommendations from them. Many of them also use to share their own personal
experiences of two-wheeler purchase in their posts.
Existing Users:
People who are already using a product are the best option for getting the actual feedback or
review about any product. That is very well applicable in case of Two-wheelers too. Being the regular
users of a particular brand or model of a two-wheeler they know its merits and demerits well and the
reliability of the information they provide will also be very high. A person who plans to buy a two-
wheeler can directly approach the existing two-wheeler users instead of wasting his time on other
sources and get the most accurate and unprejudiced information from them that may be very useful for
his buying decision.
Word of Mouth Publicity:

Word of Mouth Publicity is an oral or written recommendation by a satisfied customer to the
prospective customers of a good or service. It is an unpaid form of promotion in which satisfied

customers tell other people how much they like a business, product or service. According to Nielsen,
92% of consumers believe recommendations from friends and family over all forms of advertising. In
a recent study, 64% of marketing executives indicated that they believe word of mouth is the most
effective form of marketing. This type of communication may either be based on the personal
experience of a person or on the basis of what he learned from another person. A prospective customer
for two-wheeler can listen to this word of mouth communications roaming around for taking a buying
decision.
REVIEW OF LITERATURE:
Basavaraj H. Huggi (2016) in his paper ‘Recent Trends in Consumer Satisfaction towards
TVS Motors with Special Reference to Ranebennur City’ attempted to measure the consumers buying
behavior towards different models of TVS two-wheelers, the factors influencing the consumers to
purchase TVS two-wheelers, consumers’ level of satisfaction towards TVS two-wheelers and also the
problems faced by the consumers while using the TVS two-wheelers. According to this study Television
Ads, Internet and Hoardings are the biggest sources of information on two-wheelers to the customers.
Chandu Ravi Kumar and N.D.N Swamy (2015) made an empirical study titled ‘A Study on
Consumer Satisfaction towards TVS Motors with Special Reference to Guntur City’ to measure the
consumers buying behavior towards the different models of TVS two-wheelers and to study the factors
influencing the consumers to purchase the TVS two-wheelers. As per their findings television is the
biggest source of information regarding two-wheelers followed by internet and hoardings.
Trinankur Dey and Dr. L. S. Sharma (2015) in their study ‘An Empirical Study of Buying
Behavior of the Two Wheeler Consumers in Agartala City’ attempted to enquire about the purchasing
motives of the two wheeler customers in Agartala city. The analysis has also shown that the customers
are influenced by word of mouth by peer groups and, to some extent, by the salespersons at the point
of purchase.
RESEARCH METHODOLOGY
OBJECTIVES
1. To study the various information sources and product attributes that influence on new bike
purchase.
2. To study and identify the information sources which has a positive influence upon the buying
decision of the customer.
HYPOTHESIS:
FACTOR ANALYSIS:
H0: There is no significance relationship between the factors that influence on new bike purchase.
H1: There is significance relationship between the factors that influence on new bike purchase.
MATERIALS AND METHODS

To meet the said objectives, descriptive study is chosen for research design. This includes
literature survey and primary data collection using questionnaire based on the literature review. For
descriptive phase, A Cross-sectional survey of respondents was done using a structured questionnaire.
Data was collected from primary as well as secondary sources. A primary source of data collection is
through questionnaires whereas secondary sources were journals, news papers, national and
international publications, internet, personal books and libraries.
SAMPLE SIZE

Data were collected on the basis of judgmental sampling. 120 respondents were given questionnaire
and 100 were found to be fully usable for analysis. The sample size for questionnaire was 100
Questionnaire was pilot-tested on a sample of 15 to ensure the validity of the survey instrument.
However, post elimination of incomplete responses, unreturned questionnaire and invalid answers, the
final sample size used for analysis was 100.
The sample for questionnaire was collected from consumers in Trichirapalli City.
SAMPLING TECHNIQUE:
Judgmental sampling was used. Initial set of respondents were selected on the basis of judgmental
sampling. Subsequently additional units were obtained on the basis of information given by initial
sample units and then further referrals were taken from those selected in the sample. In this way sample
was grown by adding more and more referral-based respondents until it reached the limiting number.
Judgmental sampling was based on the following parameters:

· The sample comprised of people who Purchase and uses the Royale Enfield Bikes.
· The sample comprised of people who spends time to analyze a product for their purchase.
ANALYSIS AND INTERPRETATION:-
1. SCALE RELIABILITY:-
Cronbach's Alpha N of Items

.784 50
The result (Cronbach alpha) obtained was 0.784.This shows that data has satisfactory internal
consistency reliability. Cronbach’s alpha is a statistics used in this study .It is commonly used as a
measure of the internal consistency or reliability of a psychometric test score for a sample of examinees
Cronbach’s alpha will generally increase as the inter correlations among test items increase, and is thus
known as an internal consistency estimate of reliability of test score, because inter correlation among
test items are maximized when all items measure the same construct, Cronbach’s alpha is widely
believed to indirectly indicate the degree to which a set of items measure a single un dimensional latent
construct.
2. FACTOR ANALYSIS:
(a) KMO AND BARTLETT’S TEST
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .692
Bartlett's Test of Sphericity Approx. Chi-Square 1.437E3
Df 465
Sig. .000
INFERENCE:
From the above table, Bartlett’s test of sphericity indicates whether the co-relation matrix is an
identity matrix, which indicates that the variables are unrelated and the significance level 0.0 indicate
that there significant relationship among the variable. The KMO value of 0.692 states that, the factor
analysis is valid and can be performed in this study.
(b) ROTATED COMPONENT MATRIX:

From the below table, each factor loading value represent the partial co-relation between the
variable and the rotated factor by inferring a common thread among the variables that have large
loadings above 0.5 values for a particular factor.

Rotated Component Matrixa

Component
1 2 3 4 5 6 7 8 9 10
Intension to Buy One More Two
.767
Wheeler
Intension To Exchange Existing Two
.743
Wheeler
Distance Travelled Per Day On Two
Wheeler
Television Adds .785
newspaper article .847
automotive magazines
two wheeler mechanic .521 .581
Internet .723
company websites .827
social media pages of company .772
social media discussions .774
word of mouth review .534
auto exhibitions .508
existing two wheeler users .713
Design .786
internal space .584
less weight .847
riding comfort .766
seating comfort .800
product durability .507
good pickup .829
best mileage
affordable price
style /fabulous look .602
Safety .664
trust worthiness
brand image .860
wide network
availability of spare parts

resale value .692
after sale service .805
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.

INFERENCE:
Component with highly significant variables are highlighted below according to the respondents
towards factors affecting employee retention.
FACTOR 1:
 Brand image
FACTOR 2:
 Internal space
FACTOR 3:
 News paper article
FACTOR 4:
 After sale service
FACTOR 5:
 Company websites
4.3 MULTILPE REGRESSION:
Regression analysis is used to assess the relationship between on dependent variables (DV) and several
independent variables (IV). This is the most commonly used techniques in much of the social science research.
4.3.1 REGRESSION
Model Summary
Std. Error of the

Model R R Square Adjusted R Square Estimate
1 .983a .966 .962 .10959
INFERENCE:
The above model summary table shows R-Square for this model is .966. This means 96% of the variation
in information sources and product attributes in two wheeler purchase (dependent variable) can be explained
from the 20 independent variables. This table also shows the adjusted R-square for the model as .962.
4.3.2 ANOVA
ANOVAb
Model Sum of Squares Df Mean Square F Sig.

1 Regression
30.622 10 3.062 254.983 .000a
Residual 1.069 89 .012

Total 31.691 99
INFERENCE

The ANOVA table, as displayed in the above table shows the F ratio for the regression model that
indicates the statistical of the overall regression model. The larger the F ratio there will be more variance in
the dependent variable. The F ratio is 254.983 The statistical significance is .000-“sig”. There is relationship
between independent and dependent variables.
4.3.3 COEFFECIENTS
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 2.444 .011 222.986 .000
News paper article that
.164 .011 .289 14.868 .000
influence new bike purchase
Brand image that influence
.322 .011 .570 29.262 .000
new bike purchase
After sale service that
.048 .011 .086 4.393 .000
Internal space that influence
.299 .011 .529 27.193 .000
new bike purchase
Riding comfort that
.137 .011 .242 12.407 .000
Best mileage that influence
.016 .011 .029 1.479 .143
new bike purchase
Good pick up that influence
-.026 .011 -.047 -2.401 .018
new bike purchase
Wide network that influence
.053 .011 .094 4.810 .000
new bike purchase
Word of mouth that
.253 .011 .446 22.926 .000
Company websites that
.020 .011 .035 1.781 .078
INFERENCE
From the above table it is inferred that three variables contribute to information sources and product
attributes that influence two wheeler purchase with reference to Royal Enfield, Trichy and are brand image
that influence new bike purchase with the beta value of 0.570, Internal space that influence new bike
purchase with the beta value of 0.529, word of mouth that influence new bike purchase with beta value of
0.446.
FINDINGS, SUGGESTION & CONCLUTION:-

FACTOR ANALYSIS FINDINGS:

Component with highly significant variables are highlighted below according to the respondents
towards factors affecting employee retention.
 Brand image
 Internal space
 News paper article
 After sale service
 Company websites
MULTIPLE REGRESSION FINDINGS:

 Regression table shows that R-Square for this model is 0.966. This means 96% of the variation in
information sources and product attributes in two wheeler purchase (dependent variable) can be
explained from the 20 independent variables. And the adjusted R-square value for the model is 0.962.
 From the coefficient table it is inferred that three variables contribute to information sources and
product attributes that influence two wheeler purchase with reference to Royal Enfield, Trichy and are
brand image that influence new bike purchase with the beta value of 0.570, Internal space that
influence new bike purchase with the beta value of 0.529, word of mouth that influence new bike
purchase with beta value of 0.446
RECOMMENDATIONS:
 The company has two choices by which they can satisfy the wants of the public, they are,
Improving upon the present models and giving them a facelift by changing the styling of the
presently available motorcycles. Technological advancement a vital role here. They should also
increase the colour choices and introduce new type of snickering, which would give a new look
for the bullet.
 Introduce new models, which are not based on the present design. This will in turn help the
company to entice new customers and thus improve the sales of the company.
 The pricing strategy presently followed is favorable since the motorcycles of 150cc & 180cc
are charged around 55000 – 65000. The aim of the company should be to give better value for
the money spent by the customer. If any changes are made to the existing models and they turn
to be favorable, then the company may follow the pricing technique of “Value Added Pricing”.
 Advertise for free test rides to the general public.
 Give more attention to the product by taking up stalls in major exhibitions, fairs and other trade
expositions.
 By sponsoring local events like fashion shows, rock shows, intercollegiate events public
attention can be captured.
 By holding regular bullet owners meet, which will in turn entice the press directly to give
regular write ups in the papers and thus creating attention towards the company image and its
product.
CONCLUSION:
From the study the researcher has found that the marketers tamed the minds of the customers to their
favour using colourful television commercials with breathtaking visuals, pulsating punch lines and
celebrity endorsement. Modern day customers are very shrewd and highly rational. Technological
advancements have opened a wide variety of sources to them from which they can access information
on any product to their fingertips within Nano seconds. They cannot be deceived any more with the
graphical sorcery in the television commercials and the glittering promotional materials, offers or any
such things. Today, the two-wheeler customers are very much concerned about the performance and
quality of the bikes or scooters they intend to purchase than any other attributes. Instead of getting lured
by the advertisements, they have started collecting information from all the available sources, with the
help of which they make the most logical and rational purchase decision.
LIMITATIONS OF THE STUDY:-

Although the objective of the study is met, but still there are some limitations of the present study.
Firstly, the study conducted is limited to Royale Enfield consumers of Trichirappalli city.
Secondly, only few numbers of variables are selected for the study.
Finally, the results are subject to common limitation of accuracy of response.
REFERENCE:
1. C.R.Kothari 2004, “Research methodology, Text and Cases”, New Age International (p) Ltd.
2. Swapna Pradhan, “Retail management”, Tata McGraw Hill Education Pvt. Ltd.
3. Barry Berman and Joel R. Evans. 2012 .Retail management a strategic approach.
4. A.J. Lamba:”The Art of Retailing”, Tata McGraw Hill Education Pvt
5. Sinha PK, Banerjee A (2004). Store Choice Behaviour in an evolving market.int. 32 (10): 482-34.
6. Kotler, Philip (2004) Marketing Management, 11th Edition, Prentice Hall of India Pvt. Ltd., N.
Delhi.
7. R.S.N. Pillai&Bagavathi., (1999)“Marketing Management” S. chand& Co. Ltd,
8. Rajan Nair.,(1997) “Marketing” Sultan chands& sons, New Delhi,
9. S.A.Sherlekar,”Modern Marketing”Himalaya publishing House, Bombay.
10. Dr.C.Annandan&M.Prasanna Mohan Raj &Mr.S.Madhu, A Study on Brand preference of washing
soaps in rural areas, Indian Journal of marketing,March2007, Page no-30
11. Dr.N.Chandrasekaran, Consumer Behaviour and Brand Preference towards Onida Television –An
Empirical Study with Reference to Karur, Tamilnadu,Indian Journal of Marketing, July 2009,Page
No-58
12. Dr.S.K.Sinha&Ajay Wagh, Analysing growth of cellular telecom sector and understanding
consumer’s preferences and choices on the use of cell phone-Indian Journal of Marketing. Sep
2008 Page no -2
13. www.autoindia.com

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Journal of Management Research and Analysis (JMRA)

ISSN: 2394-2770, Impact Factor: 4.878, Available online at http://jmraonline.com

A STUDY ON INFORMATION SOURCES AND PRODUCT ATTRIBUTES THAT

Mr. S. SYED MUTHALIFF

Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 147

News Paper Reports & Review Articles:

Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 148

Word of Mouth Publicity:

Homepage: http://jmraonline.com, Email: jmraeditor@gmail.com Page 149

MATERIALS AND METHODS

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Judgmental sampling was based on the following parameters:

ANALYSIS AND INTERPRETATION:-

Cronbach's Alpha N of Items

(b) ROTATED COMPONENT MATRIX:

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Rotated Component Matrixa

availability of spare parts

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4.3 MULTILPE REGRESSION:

Std. Error of the

1 .983a .966 .962 .10959

Model Sum of Squares Df Mean Square F Sig.

Residual 1.069 89 .012

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FINDINGS, SUGGESTION & CONCLUTION:-

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MULTIPLE REGRESSION FINDINGS:

LIMITATIONS OF THE STUDY:-

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