Part I : The Preliminary Pages

Title and cover page

Declaration
Table of contents
Part II : The Main Text of the Research Report

TABLE OF CONTENTS
S.No. Particulars Page No.

1.) Introduction

2.) Objectives of the Study

3.) Research Methodology

4.) Data analyses and Interpretation

5.) Findings

Conclusion and Recommendations

References

Annexures
Questionnaire

7
CONSUMER PREFERANCES AND
BUYING BEHAVIOUR AT AUTOMOBILE
INDUSTRIES

8
 Chapter – 1
Introduction

In this era of cut throat competition, no company can survive in the market place
without knowing its product’s strengths and weaknesses. It has to fortify
(Strengthen) itself against threats from the environment and exploit its strengths for
increasing profits. In order to do so, the company has to conduct regular surveys to
know the customer’s opinions, needs, and preferences. This helps the company to
manufacture the product according to customer’s expectations. It has now become
more important for the customer confidence and higher positioning of buyer
perception. Thus, Surveys becomes genuine key to success.

The Bike segment is dominated by 4 major players’ viz. HERO HONDA,

BAJAJ, TVS, ROYAL ENFIELD. Besides these, there are players like –
HONDA(Alone), LML, KINETIC, SUZUKI.

The expanding Indian market, the growing size of the middle class and the rise in
aspirations of the youth along with opening up of the Indian economy have
collectively influenced the steady growth of the two-wheeler market in India. With
leading foreign brands in collaborations with Indian manufacturers entering the
Indian market, the customer could not have asked for more. In fact, the Indian bike
market has grown immensely and the preference for variety looks, design has
brought in a number of models in the market. In the last 3 to 4 years, the craze for
motorcycle over the scooters has picked up and one can find today even girls crazy
for a motorbike not only in the Metros but in small towns and cities also. Trying to
catch up with these, manufacturers are busy working out on customer profiles.
With the increase in competition one can find a think of discounts including: cash
rebates and free accessories to push sales of the commuter bikes. Certain changes

31
are also visible as far as customer preferences are concerned. The basic 100cc bike
market is suddenly experiencing a slow-down in the growth.
This Commuter bike was a favorite till the other day, commanding up to 90% of
the total bike sales. The shift towards 150 cc bikes is suddenly discernable and the
segment is expected to grow in near future. Manufacturers are now rushing in to
introduce bikes in this segment. Bajaj has launched Pulsar-DTSI 150cc higher on
the power ladder, Honda has come up with Unicorn and TVS has recently
launched Apache RTR and Hero Honda has launched CBZ X-Treme.
The customer is the basic ingredient of marketing. The development of marketing
strategy is based on understanding of consumer and their behavior. The present
study attempts to understand the behavior of consumer for their choice in
purchasing two-wheeler with special reference to bikes like Hero Honda(CBZ X-
Treme) Honda(Unicorn), TVS (Apache RTR), and Bajaj(Pulsar 150cc). But
consumer behavior and the derived consumer satisfaction cannot be intact. Now
days the two-wheeler industry is growing at its fast speed. The competition is very
hard and so many choices are available to customers. Here I have tried to find out
the level of customer satisfaction regarding (CBZ, Unicorn, Apache, and Pulsar)
two wheelers and also what modification they want in their products. So, the study
is all about the customer’s preference and their satisfaction with regard to bikes
coming under 150cc segment.

32
 BIG PLAYERS IN THE BIKE SEGMENT

Bajaj Auto Limited is one of the pioneering companies in the two-wheeler

industry. Bajaj Auto has a vast network of about 1500 service centers and 500
dealers all over India. It has 3 manufacturing plants located at Akurdi,0 Waluj and
Chakan in Maharashtra. The company's technology partner is Kawasaki Heavy
Industries, Japan. The company exports to ASEAN region, South America and
Africa.

Bajaj Pulsar DTSi 150cc

Generation next technology included in the package of the equipments of this high
flying bike is the revolutionary digital biking. Digital biking is the combination of
various advanced systems like Digital Twin Spark ignition (DTSi). Its highly
masculine outlook with sporty, dashing structure gives the complete satisfaction of
dare riding. Bajaj Pulsar enables its rider to tackle the situation of overcrowded
street due to the presence of 17" alloy wheels with 1330 mm wheelbase. Its
comfort statement includes front telescopic suspension, Nitro X - Nitrogen assisted
rear gas shockers with triple rated spring. Due to these comfort features, this bike
is highly accommodative in any terrain.

33
Feeling of proper riding is provided by different high-end features like improved
clutch, cylinder head with Roller Rocker Arms, optimized intake and exhaust
systems & new valve timings. Its advanced Exhaust TEC (Torque Expansion
Chamber) technology ensures the higher performance at lower rpm.

TVS Motor Company is part of Sundaram Clayton group in TVS group of

companies. TVS Motor Company is the main flag ship company of Sundaram
Clayton group. TVS Motors is the third largest two-wheeler manufacturer in Indian
and ranks among the top ten globally. It is the first company in the world to be
honored with the Deming Prize for Total Quality Management. The Company was
the first in India to launch 2-seater 50cc moped and 100 cc Indo- Japanese
Motorcycles. At Present TVS Apache, TVS Victor, TVS Scooty, TVS Centra and
TVS Fiero are the popular bikes in Indian Market.

TtfS Apache(RTR)

TVS Apache with its shapely streamlined tank and engine design is really an eye -
stopper. Its smooth and flawless finish makes this bike desirable to the market. Its

34
tough but light 6 spoke black alloy wheels are really supportive for better control
and excellent riding of this two-wheeler. Its uniquely designed head lamp has
become one of the best head turner in the market of two wheelers.
Its 240 mm disc brake is helpful in stopping one in any sudden situation to avoid
accident. Its all gear start and low friction engine with RCF technology are the key
factor of better efficiency of this bike. It is further equipped with various upgraded
technology like monotube inverted gas filled shocks, IDI lean burn, iE surge
(intake and exhaust resonator), synchro stiff chassis etc. for the proper safety and
security of the persons seating on the bike.

Its symbol, the Wings, represents the company's unwavering dedication in

achieving goals that are unique and above all, conforming to international norms.
These wings are now in India as Honda Motorcycle & Scooter India Pvt. Ltd.
(HMSI), a wholly owned subsidiary of Honda Motor Company Ltd., Japan. In
September 2004, Honda Motorcycle and Scooters India Limited (HMSI), the
wholly owned subsidiary of the Japan-based Honda Motor Company Limited
(HMCL), launched its first 150cc motorcycle named 'Unicorn.' Priced at Rs.
50,043 (ex-showroom price, Delhi), Unicorn had a four stroke 13.3 bhp engine
with five gears. The new bike was available in five colours and was designed to
achieve a speed of 0 to 60 kmph in five seconds. Unicorn was promoted with the
caption "Be a wing rider." (Refer Exhibit I for a visual of Unicorn). Targeted at

35
youth, Unicorn looked sportier than all the existing motorcycles in the premium
segment and was pitted against Bajaj Pulsar, the leader with 75 percent market
share in that segment.

Honda Unicorn

This bike with powerful 4 stroke 150 cc engine delivering output of 13.3 bhp
engine clubbed with many other high end equipments like Constant Volume (CV)
Carburetor, pulse exhaust system, offset crank and 2 way air jacket. Its multi
mapping CDI, roller rocker arm, 5 speed gears, tumble free combustion etc.
determine the performance as well as its aesthetic value. Its aerodynamic body
lining, sporty and sleek design, appealing tail lamp and excellent body graphics
etc are enhancing its style statement day by day. Unique shock absorbing mono
suspension prevents discomfort due to the sudden jerk caused by uneven road. Its
flexible seating arrangement, ample foot space gives the total comfort of journey.
Fully equipped with various cutting edge technologies, this bike comes with hole
plugging mechanism, tuff up tube, easy primary kick etc.

HERO HONDA
FILL IT. SHUT IT. FORGET IT

The joint venture between India's Hero Group and Honda Motor Company, Japan
has not only created the world's single largest two-wheeler company but also one
of the most successful joint ventures worldwide.

36
During the 80s, Hero Honda became the first company in India to prove that it was
possible to drive a vehicle without polluting the roads. The company introduced
new generation motorcycles that set industry benchmarks for fuel thrift and low
emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the
imagination of commuters across India, and Hero Honda sold millions of bikes
purely on the commitment of increased mileage

Over 19 million Hero Honda two wheelers tread Indian roads today. These are
almost as many as the number of people in Finland, Ireland and Sweden put
together!

Hero Honda bikes currently roll out from two globally benchmarked
manufacturing facilities based at Dharuhera and Gurgaon in Haryana. These plants
together are capable of churning out 3.9 million bikes per year. A third state of the
art manufacturing facility at Hardwar in Uttranchal will soon be commissioned to
cope with sustained customer demand.

Hero Honda's extensive sales and service network now spans over 3000 customer
touch points. These comprise a mix of dealerships, service and spare points, spare
parts stockists and authorized representatives of dealers located across different
geographies.

Having reached an unassailable pole position in the Indian two wheeler market,
Hero Honda is constantly working towards consolidating it’s its position in the
market place. The company believes that changing demographic profile of India,
increasing urbanization and the empowerment of rural India will add millions of
new families to the economic mainstream. This would provide the growth ballast

37
that would sustain Hero Honda in the years to come. As Brijmohan Lall Munjal,
the Chairman, Hero Honda Motors succinctly points out, "We pioneered India’s
motorcycle industry, and it's our responsibility now to take the industry to the
next level. We'll do all it takes to reach there.''

HERO HONDA CBZ X-TREME

Live Extreme

World's biggest two wheeler maker Hero Honda Motors Ltd. has launched CBZ
X-treme in the 150 cc segment. Facing tough competition from its key rivals Bajaj
Auto and TVS Motors, the Hero Honda company has unveiled this model in the
new avatar of CBZ. The CBZ launched in 1999 was a very popular and stylish
bike. The all new CBZ X-treme model has been developed with the efforts of the
R&D team of Hero Honda. CBZ X-treme powered by 150 cc engine that generates
14 ps of power @ 8500 rpm, this makes CBZ X-treme the most powerful bike in
this segment.

The powerful CBZ X-treme is equipped with loads of features. Diamond-frame

type tubular chassis, box-section swing arm, adequate ground clearance of 145 mm
with stepped up pillion seat and split grab rail provides the extreme driving

38
pleasure for rider and the pillion rider. This new offering from Hero Honda comes
with disc brake and 5 spoke alloy wheel as standard fitment.

Launched in two variants with kick-start and self-start option, CBZ X-treme is up
for sale with a ex-showroom price tag of Rs. 54,000-56,000.

"We expect to capture the top position in the premium segment with the new bike.
We are also working on another bike in the premium segment.''
CBZ has remained a icon in the market and we expect to regain the same position
enjoyed earlier. It is the fastest bike in class and comes with a three year warranty.
We have added many features like a LED tail light, split rear seats and a pilot
lamp, which are industry first in India."

39
 Chapter – 2
Objectives of study

The clear purpose or objective of the research enables the researcher to collect –
necessary relevant information. The objective of the research is to know the
Customer preferences and buying behaviour with regard to specific brands of
bikes (HERO HONDA, TVS, HONDA and BAJAJ) under 150cc category on
the basis of Price, Fuel efficiency, Brand name, Style and comfort…
 To find out the quantum of customer satisfaction with respect to 150cc bikes.
 To determine the influence of reference group in the purchase decision of college
going students.
 To find out the ways for improving of the services to attain level of customer
satisfaction.

40
 Chapter -3
Research Methodology

Research Methodology
SAMPLING
SAMPLIN DESIGN
SAMPLING METHOD

 Steps In Sampling Design :- While developing a research design following items

are taken into consideration:-
I. Type of universe: - First and the foremost step is to clearly define the universe to
be studied. As I have taken the area of Kurukshetra City (Haryana), so for me here
the universe is Kurukshetra. No doubt it is a finite universe but the area is very big
and can’t be covered easily due to shortage of time.
II. Sampling unit: - A decision has to be taken concerning a sampling unit before
selecting sample. Here my sample unit includes individuals who own bikes.
III. Size of sample: - This refers to the number of items to be selected from the
universe to constitute a sample. Here I have taken the sample of 200 respondents
who have bikes.
IV. Parameters of interest: - In determining the sample design, one must consider the
question of the specific population parameters which are of interest. Here I had
taken only those respondents who own their bike.
V. Sampling procedure: - Finally the technique of selecting the sample is to be dealt
with. That means through which method the sample has been collected. There are
various types of selecting the sample. This includes probability sampling, random
sampling, stratified sampling, cluster sampling, convenience sampling. Here I have

35
used the Simple random sampling method for data collection.

DATA COLLECTION METHOD

In the data collection method different methods are adopted for primary data
collection and secondary data collection.

PRIMARY DATA COLLECTION

Primary data is the data which is collected through observation or direct
communication with the respondent in one form or another. These are several
methods for primary data collection like Observation method, Interview method,
through schedule, through questionnaires and so on.
But as time was limited so, the relevant data was collected from the selected units
by adopting and arranging personal interview with the shopkeeper and dealer along
with a pre structured questionnaire. In this method I thank the views of
shopkeepers and dealer through the use of questionnaire and general interview.

SECONDARY DATA COLLECTION

The company’s past database is taken into reference along With company
brochures.

DATA COLLECTION INSTRUMENTS

The data collection instruments used in the study is mentioned below:-

QUESTIONNAIRE
The method of data collection is quite popular. I prepared a questionnaire after
knowing the different objectives of the study and considering all the things that are
required for studying the dissertation topic.

36
 Chapter – 4
Data Analyses

Results and Discussions

Table 1

Are your aware about 150 cc bike brands available in the market?

Are your aware about 150 cc bike brands available in the No. of
market? respondents
Fully Aware 93
Aware 76
Less aware 31

Table 1 shows that 46.5% of respondents are fully aware about 150 cc bikes in
market, 38% of respondents just aware about 150 cc bikes and only 15.5% of
respondents are have little bit knowledge about 150cc.
No. of respondents

39
 Table 2
How do you come to know about this brand/model of 150 cc bike?

How do you come to know about this No. of respondents

brand/model of 150cc bike?

Friends 45
Advertisement 87
Publicity 10
Family members 47
Any other 11

Table 2 shows that 22.5% of respondents came to know about brand of bikes from
friends, 43.5% of respondents came to know about brand of bikes from
advertisement, 5% of respondents came to know about brand of bikes from
publicity, 23.5% of respondents came to know about brand of bikes from family
members and 5.5% of respondents came to know about brand of bikes from other
sources.
No. of respondents

Fig. 2

40
 Table 3
Which factor influence you more to purchase a bike?

Which factor influence you more to purchase a bike? No. of respondents

Brand image 53
Fuel efficiency 81
Price 27
Comfort 17
Style 25

Table 3 shows that 26.5% respondents are influenced to purchase a bike from its
brand image, 40.5% respondents are influenced to purchase a bike from its Fuel
efficiency, 13.5% respondents are influenced to purchase a bike from its lesser
Price, 8.5% respondents are influenced to purchase a bike from its Comfort, 12.5%
respondents are influenced to purchase a bike from its Style.
No. of respondents

Fig. 3

41
 Table 4
Are you satisfied with its overall performance?

Are you satisfied with its overall performance? No. of respondents

Fully Satisfied 41
Satisfied 104
Moderate 42
Less satisfied 10
Poor 3

Table 4 shows that 20.5% of respondents are fully satisfied with the performance
of their bikes, 52% of respondents are satisfied with the performance of their bike,
21% of respondents are moderate in satisfaction with the performance of their
bikes and 1.5% of respondents are poorly satisfied with the performance of their
bike.
Are you satisfied with its overall performance?
No. of respondents

Satisfied
Satisfied

Fig. 4

42
 Table 5
According to you which company gives the most benefit to customers?

According to you which company gives the No. of respondents

most benefit to customers?

Honda 40
Bajaj 60
TVS 25
HERO HONDA 75

Table 5 shows that 20% of respondents are saying that the Honda is providing
more benefits of the services to the customers, 30% of respondents are saying that
the Bajaj is providing more benefits of the services to the customers and 12.5%of

respondents are saying that the TVS is providing more benefits of the services to
the customers and 37.5% said that Hero Honda provides best benefits..

Fig. 5

43
 Table 6
Which type of media influence your purchase behaviour?

Which type of media influence your purchase No. of respondents

behaviour?

T.V. 114
Newspaper 33
Wall painting 5
Hording 12
Magazine 36

Table 6 shows that 57% of respondents and influence to purchase their bike
through T.V., 16.5% of respondents and influence to purchase their bike through
Newspaper, 2.5% of respondents and influence to purchase their bike through Wall
painting, 6% of respondents and influence to purchase their bike through Hording
and 18% of respondents and influence to purchase their bike through Magazine.

Which type of media influence your purchase behaviour ?

120
100
80
No. of respondents

60
40
20
0

T.V. New spaper Wall painting Hording Magazine

Fig. 6

44
 Table 7
Who influenced you more in your buying decision of bike?

Who influenced you more in your buying decision of No. of respondents

bike?

Self 30
Family Member 54
Friends/Relative 98
Mechanics 18

Table 7 shows that 15% of respondents have influence their buying decision from
their self-decision, 27% of respondents have influence their buying decision from
their family members, 49% of respondents have influence their buying decision
from their friends/relative and 9% of respondents have influence their buying
decision from their Mechanics,
No. of respondents

Fig. 7

45
 Table 8
In your opinion, what role advertisement plays?

ur opinion, what role advertisement plays? No. of respondents

Provides important details 65

Creates awareness 125
Misleading 10

Table 8 shows that 32.5% of respondents are in favor that advertisement provides
important details, 62.5% of respondents are in favor that advertisement creates
awareness and 5% of respondents are in favor that advertisement Misleading.

In your opinion, what role advertisementplays ?

140 125
120
100
No. of respondents

80
60 65
40
20

Fig. 8

46
 Table 9
Which of the following model/brand of 150cc motorcycle you like the most?

Which of the following model/brand of No. of respondents

150cc motorcycle you like the most?
HERO HONDA (CBZ-Extreme) 55
BAJAJ (Pulsar-150 DTSI) 65
HONDA (Unicorn) 30
TVS (Apache-RTR) 50

Table 9 shows that 27.5% of respondents are in favor that they like CBZ Extreme,
32.5% like Bajaj Pulsar, 15% like Honda Unicorn and 25% respondents like TVS
Apache.

70
60
50

No of 40
65
respondents 30 55 50
20
10 30

CBZ PULSAR UNICORN APACHE

Fig. 9

49
 Chapter – 5
FINDINGS
Findings refers to the outcome of the research work done, the research reveals a
number of facts…..
1) The survey reveals that 50% respondents have knowledge about 150cc bike
segment.
2) Research shows that most of the customers came to know about various models of
Bikes through advertisement (45%) and (25%) through friends.
3) Research shows that first fuel efficiency and then brand image influence customers
most to purchase a bike.
4) More than 50% respondents are satisfied with their bike and 22% respondents are
fully satisfied.
5) Hero Honda has the highest Brand image among respondents.
6) Survey also shows that TV influences the most the purchase behaviour of
respondents among various available media.
7) Friends and relatives have the highest influence on decision making of
respondents.
8) Bajaj pulsar is the most preferred bike among respondents.
9) Survey also shows that advertisement creates awareness among people.70%
respondents are agree with this statement.
10) Survey shows that Hero Honda becomes market leader in
providing best services to customers.

50
 Recommendation

Recommendation refers to the outcome of the research work done and the
suggestions for implementation i.e. findings.
1. It is suggested that manufacturer should make all efforts to control cost.
2. New technology should be applied according to the requirement of the customer.
3. Provide various schemes which can attract the new customers.
4. Spare parts of the bikes should be easily available in the market.
5. TVS and unicorn should give emphasis on R & D, to make most fuel efficient
Bikes..
6. Bike should be available in different colours so as to attract college going students.
7. Manufacturer should make the bikes according to aerodynamic design and provide
them the sporty look.
8. Company should invest a lot of money on advertisement to attract the customers.
9. Company’s marketing strategy should enhance the brand image of company.

50
 BIBLIOGRAPHY

1. Schiffman Leon G. and Kanuk Leslie Lazar Consumer Behaviour 6th edition
Published by: Prentice-hall of India Private Limited.
2. Gupta C.B. and Dr. Nair N. Rajan Marketing Management 5th edition -
Published by: Sultan chand & sons.
3. Mamoria C.B. and Mamoria Satish Marketing Management 4th edition Published
by: Kitab Mahal.
4. Nair Suja R. Consumer Behaviour Indian prospective I st edition Published by:
Himalaya Publicating Home.
5. Bennett Peter D. and Kassarjian Harold Consumer Behaviour 8 th edition Published
by: Prentice-hall of India Private Limited.
6. Kothari C.R Research Methodology Methods & Techniques 2nd edition Published
by: Wishwa Publication.

51
 Questionnaire

Dear readers,

The questionnaire, which you are going to fill, is purely an academic effort to find
out Customer preferences and buying behaviour with regard to specific brands of
bikes (HERO HONDA, TVS, HONDA and BAJAJ) under 150cc category on the
basis of Price, Fuel efficiency, Brand name, Style and comfort and it is assured that
confidentiality of the information provided by respondents will be maintained.
Name:
Address:
Contact number:
Age (tick √ the relevant bracket):
(15-20 years) (21-25years) (26-35years) (36-45years)

Location of Residence:
URBAN SEMI URBAN RURAL

INCOME LEVEL* (please mention per month income in rupees) (If

applicable)*
5000-10000 10000-15000 15000-20000 20000-25000 above 25000

Educational level:
Below Matriculation Graduation Post- Professional
matriculation Graduation. qualification

1. Which Brand of bike you own?

Hero Honda Bajaj Honda Tvs

2. What is the price of your bike?

30,000-35,000 35,000-40,000 40,000-50,000 50,000 & above

52
3. How long do you own this Bike?
Less than six One year Six month Two year More than 2
month years

4. How fuel efficient your bike is? (Mileage/litter)

40-50 50-60 60-70 70-80

5. What is the top speed (km/hrs) of your bike?

100-120 120-140 140-160 160-180

6. Are you aware about the 150cc bike brands available in the market?
Fully aware Aware Less aware

7. Which of the following model/brand of 150cc motorcycle you like the most
–
1 2 3 4
HONDA (Unicorn)
BAJAJ (Pulsar 150cc)
TVS (Apache)
Hero Honda (CBZ Extreme)

8. How did you came to know about this brand /model of 150cc bike –
Family Through Advertisement Publicity Any other
members friends

9. Which factor influence you more to purchase the bike –

Brand image Price STYLE Fuel efficiency Comfort

10.How do you grade the following qualities-

1 2 3 4
Safety
Comfort
 Fuel efficiency
Style

53
 Performance

11.Why did you prefer this model /bike?

________________________________________________________________
________________________________________________________________
______

54
31