Analysis Report of Consumer Buying

Behavior towards
DAEWOO PAKISTAN
EXPRESS BUS SERVICE

BY

Don’t follow the trends, Let’s make trends by own

National University of Modern Languages

(NUML)
 Project of “Introduction to Marketing”

Submitted to:
Miss Mahwish Anjum

Submitted by:

Group Members:

 Qaiser Naeem Malik (1609)

 Mujahid Khan (1606)
 Babar Hussain (1593)
Group Motto:
“ Don’t follow the trends, Let’s make trends by own”

Contact:
E-mail: falcons_qmb@hotmail.com
Ph: 051-4417726
Mob: 0320-5115107

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Table of Contents

1- Dedication --------------------------------------- 4

2- Preface --------------------------------------- 5

3- Acknowledgment --------------------------------------- 6

4- Project Information --------------------------------------- 7

5- Intro. To Organization--------------------------------------- 8

6- Consumer Buying Behavior--------------------------------- 11

7- Buying Decision Behavior----------------------------- 16

8- Conclusion --------------------------------------- 17

9- References --------------------------------------- 18

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 Dedication

Dedicated to our beloved parents,

Who always pray for us,
And encouraged us
at every step in this project
as well as every step that we have taken,
in our life.

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 Preface
In this era where time is very big factor for every one. Every person
wants to save his every second to utilize it to achieve more and more goals,
and with less time, people wants the better facilities and in short time.

When the traveling is the factor, people choose that how best, they can
travel, what facilities they can get and how much time and money they can
save.

In the marketing point of view, the behavior of the consumers effects

deeply on the concerned organization. So that why, we are here to analyze
and study the consumer behavior towards the Daewoo Pakistan Express Bus
Service.

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 Acknowledgments

One of the great pleasure of writing the report is acknowledging the efforts
of many people whose names may not appear on the cover but whose hard
work, cooperation, friendship and understanding were crucial to the
production of this report.

We would like to acknowledge the efforts of Miss Mahwish Anjum, whose

continuous guidance helped us to complete this project report.

A very special thanks to Mr. M. Sajid, who guided us in this report and Mr.
Arshad Hussain, Terminal Manager of Daewoo Pakistan Express Bus
Service, Rawalpidi.

Babar Hussain
Mujahid Khan
Qaiser Naeem Malik

Date: 19-04-2003

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 Project Introduction

Our project deals with the evolution of Consumer Buying Behavior of

Daewoo Pakistan Express Bus Service. In this project we visited personally
to the Daewoo Pakistan Express Bus Service at their Rawalpindi terminal
and analyzed the behavior and attitudes of the passengers and customers of
this organization, that why they prefer to travel by Daewoo Bus service.
We also analyzed the behavior of the staff of this organization
towards their customers and what facilities they are providing to their
customers.

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 Introduction to the Organization
Daewoo Corporation is a Korean company, which has their broad
network all over the world including U.S.A, U.K, and many other countries
having a long chain of their offices and services.

Daewoo Corporation and Lahore to Islamabad Motorway Project:-

In Pakistan, this
company was given the
project of Islamabad to
Lahore Motorway which
was completed in 1998. It
was 333 kilometers long
Motorway project, which
is also called LIMP
(Lahore to Islamabad
Motorway Project) which
provided the safe and fast
travel between the capitals
of Lahore and Islamabad
as well as providing
improved access to the
cities of Multan,
Faisalabad and Sargodha.

The existing direct

link between these two
major centers is the Grand
Trunk Road which forms
part of an historic route
across the Indian
subcontinent linking
Kabul in Afghanistan with
Calcutta in India.

The agreement for

design and construction of a four lane limited access tolled Motorway

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facility between Lahore and Islamabad was signed in December 1991, with
this Korean Company, Daewoo Corporation. Daewoo agreed to fund 40% of
the construction cost.

Now Daewoo Corporation is also working on the other projects of

Motorway networks all over the Pakistan.

SALIENT DESIGN FEATURES OF THE MOTORWAY

No. of Lanes 3 in each direction
Width of each lane 3.5 meters
Width of outer shoulders 3 meters
Width of inner shoulders 1.7 meters
Design speed (plain area) 120 km/hour
Design speed (rolling terrain) 100 km/hour
Interchanges 8 No.
Service areas 5 No. in each direction
Total system Close system using magnetic tickets

About Daewoo Pakistan Express Bus Service:-

After the completion of Lahore to Islamabad Motorway Project,

Daewoo was the introduced the marvelous bus service between these two
cities of Islamabad and Lahore.
Initially, the Daewoo Pakistan Express Bus Service recruited 184 employees
when they started their service on November 11 with a fleet of 20 buses.
They had made the recruitment on the assumption that 50 more vehicles
would join their fleet. These 50 completely built units were awaiting
shipment in Korea. Korean firm had committed to bringing 300 air-
conditioned buses on the Lahore roads by December 31, 1999 in an
agreement with the Lahore Regional Transport Authority.

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 Daewoo has
very good services
for their passengers
at their terminal
points/stations as
well as during the
journey. They have
big halls for the
passengers, which
are also called
waiting halls. 27"
TVs are provided
in these halls, there
are the Tuc shops.
There are separate ticketing counters for every stations.

From their Rawalpindi terminal, Daewoo bus service has the bus
services to Lahore, Multan, Faisalabad, and Peshawar. There is also the
service from Rawalpindi to Murree which is being greatly appreciated by
their customers. They also provide service from Lahore to Peshawar.The
plan of starting the service between Rawalpindi to Abbottabad is under
consideration in near future.

Daewoo Pakistan Express Bus Service has two categories of buses in their
fleet,
 Normal
 Super
Normal buses has the less facilities where in Super category, there are luxury
seating arrangement and some other luxury facilities within the bus.

Now, this company has nearly about 100 buses providing services
different routes and has a vast network within Pakistan.

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 Consumer Buying Behavior
Consumer Behavior involves the psychological processes that
consumer go through in recognizing needs, finding way to solve these needs,
making purchase decisions (e.g whether or not to purchase a product and, if
so, which brand and where), interpret information, make plan, and
implement these plans (e.g. by engaging in comparison shopping or actually
purchasing a product).

The consumer faces numerous sources of influence. Often we take

cultural influences for granted, but they are significant. An American will
usually not bargain with a store owner, while that is common practice in
much of the world. Physical factors also influence our behavior. We are
more likely to buy a soft drink when we are thirsty for example, and food
manufacturers have found that it is more effective to advertise their products
on the radio in the late afternoon when people are getting hungry. A person's
self image will also tend to influence what he/she will buy and upwardly
mobile manager may buy a flashy car to project an image of success. Social
factors also influence what the consumer buy-often, consumer seek to
imitate others whom they admired and may buy the same brands. The social
environment can include both the main stream culture and a subculture.
Thus sneaker manufacturers are eager to have their products worn by
admired athletes.

Finally, consumer behavior is influenced by learning-you try a

hamburger and learn that it satisfies your hunger and tastes good, and the
next time you are hungry, you may consider another hamburger.

Consumer choices are often influence dramatically by values. Some

consumers, for example, seeks to "fit in with the crowd" and would like to
own a car as similar as possible to that of the neighbor. Others, on the other
hand, want to stand out. Terminal values reflect and states-e.g, a person
wants to be affluent, while instrumental values reflects a chosen way of
reaching the end value- e.g, a consumer may choose hard work as a way to
gain wealth. In the consumption context, then, a consumer may choose to
spend a great deal of money on buying and maintaining neat and
professional attire, not because he/she is particularly interested in that
appearance for its own sake, but rather because this will help the consumer
be successful in his/her career. Core values are more deeply held than

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peripheral ones. Thus, a person may highly value honestly and avoid
manufacturers that seems to make unwarranted claims, but only weekly hold
a value of punctuality. In general, marketers will be more successful in
appealing to core values.

Subculture often significantly influences the consumer. There are

several potential ways that a society can be divided up. Some consumers are
highly influenced by their ethnic origin. In some areas in Los Angeles, shop
keepers may transact all their business in a language of the predominant
immigration patterns into the neighborhood. Virtual pets at first spread in the
U.S through Asians- American teenagers. Only after a while did the product
diffuse into other ethnic groups. Occasionally religious groups will influence
consumer's behaviors. Usually, because a religion may set a certain
standards- e.g, some religions do not allow the consumption of Alcohol,
while others may disapprove of charging interests. The fact that many
Americans spends a great deal of time with members of their religion in
churches and masks implies that members have a great deal of influence on
each other. People in similar age groups also tend to have more influence on
each other. This is particularly evident in the spread of fashion social status
may also have some influence, as people may tend to emulate others in
similar occupation or neighborhoods.

One way to look at social influence is though "reference groups" -

people against which one compares oneself. Thus, a consumer may notice
that all his friends are wearing a special kind of jeans and may expect to be
ostracized if he/she chooses to wear a different brand. Interestingly however
one may also hold dissociative reference group- people that one would not
want to be compared to.

Family may influence the consumer’s choices a great deal. Research

has shown, for example, that there is a tendency for adult children to use the
same brands that their parents used over time. In many cases, these brand
choices are made without much conscious thought.
In marketing jargon, a consumer problem refers to a discrepancy between
the ideal situation and reality. Thus, problems can range greatly in severity.
One problem, for example, is that you are hungry. The problem is easily
solved by eating. Other problems can be significantly more severe—for
example, a consumer is scared that he will be rejected by his wife because he
is growing bald. Note that problems can be solved in more than one way.

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Baldness could be served by obtaining a wig, medical treatment, buying a
fancy car (as an alternative way to achieve attractiveness), or some other
creative way.
One model of consumer decision making involves several steps. The first
one is problem recognition—you realize that something is not as it should
be. Perhaps, for example, your car is getting more difficult to start and is not
accelerating well. The second step is information search—what are some
alternative ways of solving the problem? You might buy a new car, buy a
used car, take your car in for repair, ride the bus, ride a taxi, or ride a
skateboard to work. The third step involves evaluation of alternatives. A
skateboard is inexpensive, but may be ill-suited for long distances and for
rainy days. Finally, we have the purchase stage, and sometimes a post-
purchase stage (e.g., you return a product to the store because you did not
find it satisfactory).
Consumer involvement will tend to vary dramatically depending on the type
of product. In general, consumer involvement will be higher for products
that are very expensive (e.g., a home, a car) or are highly significant in the
consumer’s life in some other way (e.g., a word processing program or acne
medication).
It is important to consider the consumer’s motivation for buying products.
To achieve this goal, we can use the Means-End chain, wherein we consider
a logical progression of consequences of product use that eventually lead to
desired end benefit. Thus, for example, a consumer may see that a car has a
large engine, leading to fast acceleration, leading to a feeling of
performance, leading to a feeling of power, which ultimately improves the
consumer’s self-esteem. A handgun may aim bullets with precision, which
enables the user to kill an intruder, which means that the intruder will not be
able to harm the consumer’s family, which achieves the desired end-state of
security. In advertising, it is important to portray the desired end-states.
Focusing on the large motor will do less good than portraying a successful
person driving the car.
If a marketer can identify consumer buyer behaviour, he or she will be
in a better position to target products and services at them. Buyer behaviour
is focused upon the needs of individuals, groups and organisations. It is
important to understand the relevance of human needs to buyer behaviour
(remember, marketing is about satisfying needs).
 

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Let's look at human motivations as introduced by Abraham Maslow by his
hierarchy of needs: The hierarchy is triangular. This is because as you move
up it, fewer and fewer people satisfy higher level needs. We begin at the
bottom level. Physiological needs such as food, air, water, heat, and the
basic necessities of survival need to be satisfied. At the level of safety, man
has a place to live that protects him from the elements and predators. At the
third level we meet our social and belongingness needs i.e. we marry, or join
groups of friends, etc. The final two levels are esteem and self-actualisation.
Fewer people satisfy the higher level needs. Esteem means that you achieve
something that make you recognised and give personal satisfaction, for
example writing a book. Self-actualisation is achieved by few. Here one is
the one of a small number to actually do something. For example, Neil
Armstrong self-actualised as the first person to reach the Moon. The model
is a little simplistic but introduces the concept a differing consumer needs
quite well.
To understand consumer buyer behaviour is to understand how the person
interacts with the marketing mix. As described by Cohen (1991), the
marketing mix inputs (or the four Ps of price, place, promotion, and product)
are adapted and focused upon the consumer. The psychology of each
individual considers the product or service on offer in relation to their own
culture, attitude, previous learning, and personal perception. The consumer
then decides whether or not to purchase, where to purchase, the brand that he
or she prefers, and other choices.
 

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 This is a very simple example of what can be a very complex process. There
are many complex and
detailed models of buyer
behaviour such as The
Source Loyalty Model
of Webster and Wind
(1972), Decision
Process Models such as
Cyert (1956),
Organizational Models
such as Webster and
Wind (1972), Consumer
Buyer Behaviour such
as Sheth and Howard
(1969), Engel et al (1978), and Industrial Buyer Behaviour such as Sheth
(1973), as well as many others.

Cultural Factors:-
Culture is a set of values, perceptions, wants, behavior
learned by a member of society from family. Culture is a most basic cause of
a person wants and behavior.
We observed that in Pakistan, the culture doesn't effect mostly on the service
of Daewoo buses. And the company has not faced the much problems to
establish in this culture.
Now the Daewoo company is trying to start their services in many cities of
Pakistan in order to make the service common in between the people to
make its access and to increase their customers all over the Pakistan.

Social Factors:-
A consumer behavior also is influenced by social factors,
such as the consumer's small groups, family, and social roles and status.
In Daewoo buses, we have observed that upper and middle class people
travel more than the lower class. Because they want to save their time as
well as to avail the maximum facilities, which are provided by Daewoo
buses like air conditions, videos and the hosting facilities etc.

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Personal Factors:-
A buyer's decisions are also influenced by personal
characteristics such as the buyer's age and life-cycle stage, occupation,
economic situations, life styles and personality and self concept.
The Daewoo company's services may be effected greatly by the personal
factors of people. If the the life styles are like in Islamabad, they like mostly
to travel by the Daewoo bus services instead of the people living in the small
towns of the Pakistan. And there are many other personal factors like people
of high income, who don't take it much serious to travel this costly service of
Daewoo buses.

Psychological Factors:-
A person buying choices are further influence by four
major psychological factors, motivation, perceptions, learning and beliefs
and attitudes.
In Pakistan, the most people think that the costly things/services are good
and the cheeper things/services doesn't satisfy their psyche. So as it is the
advantage to the Daewoo to have their maximum customers.
Passengers like the hosting facility provided in Daewoo buses very much.
.

Buying Decision Behavior

The buyer decision process is a useful tool to use when
trying to learn consumer buyer behaviour. It has a number
of stages:
1. Recognition of a need e.g. buying a new personal computer (PC).
2. Choice of level of involvement (i.e. justifying you time and effort e.g.
low for bubble gum, high for a holiday).
3. Identification of alternatives e.g. Dell, IBM, PC store. Evaluation of
alternatives (such as price, support, software, etc).
4. Make decision.

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 5. Action i.e. buy PC.
6. Post-purchase behaviour i.e. did it meet your expectations? Did you
use it? Was it reliable? Etc.

We have analyzed that the buying behavior of Daewoo consumers is

Dissonance Reducing. As Dissonance Reducing buying behavior is a
customer buying behavior in situations characterized by high involvement
but few perused differences among the brands.
As it is clear that there is no any competitor of Daewoo Pakistan
Express Bus Service who is providing the same services, which are being
provided by this company. They are providing very unique services all over
the Pakistan and the people looking for these services need not to think at
the stage of selection.

Conclusion:-
Even though the services of Daewoo Pakistan Express Bus Service are
very costly, people still prefer to travel by this service because of their
efficient services at the stations as well as during the journey, proper timing
schedules. Especially, the business class definitely prefers their services to
save their precious time.

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Referencees:-
 Principals of Marketing by Kottler and Armstrong.
 www.daewoo.com
 www.daewoo.co.kr
 www.marketingteacher.com
 www.iepsac.org
 www.detourslnMyMind.com
 www.AspergersSyndrome.org
 www.highfunctioningAutism.com
 www.consumerpsychologist.com
 www.marketteach.org
 www.larsperner.com
 www.autistic-spectrum.com
 www.professorsAdvice.com
 www.chinatrip2002.com
 www.consumerglobe.com
 www.jung-group.com
 www.yahoo.com
 www.google.com

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