INTRODUCTION TO THE PROJECT

The project is all about measuring the customer buying behavior on Hero motors.

For the past few years every company is trying to satisfy its customers. The emphasis

is on ways of retaining customers, then on attracting new customers. It is easy to

attract new customers then to retain old customers. So, companies are trying to focus

on this aspect of customer’s behavior.

The sale of a product does not end with the sale transaction but it is the point

at which the original marketing concept starts. The marketer has to see that whether

the customer buying with that particular product/service or not. The post purchase

behavior is important for a marketer. If there is any cognitive dissonance in the minds

of the customers then that is enough to lose a customer. Keeping this in mind the

companies are giving more importance to customer satisfaction.

This project work has been done to find out whether a customer is

buying behavior, also to measure the level of the customer satisfaction and provide

this feedback to the company. The first phase of the project involves the collection of

information from the customers for interpreting the characteristics based on which the

customer feels satisfied or dissatisfied. This information is collected by preparing a

structured questionnaire. The questionnaire consists of both open-ended and closed-

ended questions. The questionnaire is designed in such a way that a customer feels

convenient to answer.

1
 The collated information through the questionnaire is analyzed and presented

in a statistical form. The findings are listed and suggestions to solve problems faced

have been given in the suggestion part.

2
 SCOPE OF THE STUDY

This study helps the organizations to increase their service and product quality and in
turn increase the market share, top and bottom line of the
company

the study on consumer buying behavior of hero motocorp is need to determine the
consumer buying behavior of the company.

The study of consumer buying behavior helps make clear to the usage by
which hero motocorp is gaining competitive advantages among its customers and
know about the relationship between company and their costumer. This study also
helps to know different facility provided by hero motcorp.

The study of consumer buying behavior always useful to any company who deals in
goods and services to know the exact want of customer according the that behavior
company may take some corrective action regarding the production of their Product.

3
INTRODUCTION TO CUSTOMER BUYING BEHAVIOUR

Whether the buyer is satisfied after purchase depends on the offers

performance in relation to the buyer expectation. In general satisfaction are a person ’s

feelings of pleasure or disappointment resulting from comparing a products perceived

performance relation to his/her expectations. If the performance falls short of

expectation, the customer is dissatisfied. If the performance matches the expectation

customer is satisfied. If the performance exceeds the expectation the customer is

highly satisfied.

Customer satisfaction cannot be very difficult. After all you either

satisfied with the services you receive or you are not. If you don ’t you are not. If it is

that easy, then obtaining people's opinion about how satisfied they are with relatively

straight forward matter- or is it? Customer satisfaction is a marketing tool and a

definite value added benefit. It is often perceived by customers as important as the

primary product or service your organization offers. It looks at what is involved from

3 different angles, the first is from the view of an organization wishing to understand,

and measures, how satisfied its customer are with the products and services they

receive from it. The second is from the perspective of a research agency that has been

asked to obtain feedback from customers and about their experiences when dealing

with companies. Finally it considers the issue from the perspective of consumers who

participate in surveys, including both business customers and members of general

public.

4
Definition of Consumer Buying Behaviour
What is Consumer Buying Behavior?
Definition of Buying Behaviour:

“ Buying Behaviour is the decision processes and acts of people involved in buying
and using products.”

“ The Field of consumer behaviour studies how individual , groups and organisation
select , buy , and dispose of goods , services , ideas or experience to satisfy their
needs and desires.”

Need to understand:

 Why consumers make the purchases that they make?

 What factors influence consumer purchases?
 The changing factors in our society.

Consumer Buying Behaviour refers to the buying behaviour of the ultimate consumer.
A firm needs to analyze buying behaviour for:

 Buyer’s reactions to a firms marketing strategy has a great impact on the firm ’s
success.
 The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze the
what, where, when and how consumers buy.
 Marketers can better predict how consumers will respond to marketing
strategies.

FACTORS OF CUSTOMER BUYING BEHAVIOUR

1. Service of quality

2. reliability of service

3. knowledge of the staff

4. Being kept informed of progress

5. The way service kept its promises

5
 COMPANY PROFILE

NAME OF THE COMPANY- GOYAL HERO MOTORS

ADDRESS-NEAR ENGALE BRIDGE,N.D.A. ROAD, SHIVANE, PUNE-411023

6
 VISION AND MISSION OF THE ORGANISATION

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest

manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler

manufacturing company in India and also, the 'World No.1' two-wheeler company in

terms of unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to

maintain this position till date.

HeroMotoCorp is now world’s largest manufacturer of two-wheelers. The company

has benefited from the demand shift to motorcycles, as it focuses solely on this

product segment (although has a product called Pleasure in Scooter segment). With

fuel efficiency and riding comfort as the main selling points, HMC has been able to

address a wide market and post robust sales growth even after its separation from the

Japanese major Honda.

VISION

The story began with a simple vision – the vision of a mobile and an empowered

India, powered by its bikes. Hero MotoCorp Ltd., company’s new identity, reflects its

commitment towards providing world class mobility solutions with renewed focus on

expanding company’s footprint in the global arena.

MISSION

Hero MotoCorp's mission is to become a global enterprise fulfilling its customers'

needs and aspirations for mobility, setting benchmarks in technology, styling and

quality so that it converts its customers into its brand advocates. The company will

7
provide an engaging environment fo its people to perform to their true potential. It

will continue its focus on value creation and enduring relationships with its partners.

MANUFACTURING

Hero MotoCorp two wheelers are manufactured across three globally benchmarked

manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are

located in the state of Haryana in northern India. The third and the latest

manufacturing plant are based at Haridwar, in the hill state of Uttrakhand.

TECHNOLOGY

In the 1980's the Company pioneered the introduction of fuel-efficient, environment

friendly four-stroke motorcycles in the country. It became the first company to launch

the Fuel Injection (FI) technology in Indian motorcycles, with the launch of the

Glamour FI in June 2006.

Its plants use world class equipment and processes and have become a benchmark in

leanness and productivity.

Hero MotoCorp, in its endeavor to remain a pioneer in technology, will continue to

innovate and develop cutting edge products and processes

8
DISTRIBUTION

The Company's growth in the two wheeler market in India is the result of an intrinsic

ability to increase reach in new geographies and growth markets. Hero MotoCorp's

extensive sales and service network now spans over to 5000 customer touch points.

These comprise a mix of authorized dealerships, service & spare parts outlets and

dealer-appointed outlets across the country.

BRAND

The new Hero is rising and is poised to shine on the global arena. Company's new

identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on

mobility and technology and creating global footprint. Building and promoting new

brand identity will be central to all its initiatives, utilizing every opportunity and

leveraging its strong presence across sports, entertainment and ground- level

activation.

9
PORTFOLIO OF PRODUCTS

Hero MotoCorp offers wide range of two wheeler products that include motorcycles

and scooters, and has set the industry standards across all the market segments.

100cc

Bike category

 SPLENDOR PLUS

 SPLENDOR NXG

 SPLENDOR PRO

 PASSION PRO

 PASSION XPRO

 MAESTRO

 PLEASURE

 HF DAWN

 HF DELUXE

125cc

Bike category

 GLAMOUR

 SUPER SPLENDOR

 IGNITOR

 Glamour PGM FI

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 150cc

Bike category

 ACHIEVER

 KARIZMA

 KARIZMA ZMR

 IMPULSE

 HUNK

 XTREME

Termination of Honda joint venture

In December 2010, the board of directors of the Hero Honda

Group has decided to terminate the joint venture between Hero Group of India and

Honda of Japan in a phased manner. The Hero Group would buy out the 26% stake of

the Honda in JV Hero Honda. Under the joint venture Hero Group could not export to

international markets (except Sri Lanka) and the termination would mean that Hero

Group can now export. Since the beginning, the Hero Group relied on their Japanese

partner Honda for the technology in their bikes. So there are concerns that the Hero

Group might not be able to sustain the performance of the Joint Venture alone.

The Japanese auto major will exit the joint venture

through a series of off market transactions by giving the Munjal family —that held a

26% stake in the company—an additional 26%. Honda, which also has an

independent fully owned two wheeler subsidiary—Honda Motorcycle and Scooter

India (HMSI)—will exit Hero Honda at a discount and get over $1 billion for its

11
stake. The discount will be between 30% and 50% to the current value of Honda's

stake as per the price of the stock after the market closed on Wednesday.

The rising differences between the two partners gradually

emerged as an irritant. Differences had been brewing for a few years before the split

over a variety of issues, ranging from Honda's reluctance to fully and freely share

technology with Hero (despite a 10-year technology tie-up that expires in 2014) as

well as Indian partner's uneasiness over high royalty payouts to the Japanese

company. Another major irritant for Honda was the refusal of Hero Honda (mainly

managed by the Munjal family) to merge the company's spare parts business

with Honda's new fully owned subsidiary Honda Motorcycle and Scooter

India (HMSI).

As per the arrangement, it will be a two-leg deal. In the

first part, the Munjal family, led by Brijmohan Lal Munjal group, will form an

overseas-incorporated special purpose vehicle (SPV) to buy out Honda's entire stake,

which will be backed by bridge loans. This SPV would eventually be thrown open for

private equity participation and those in the fray include Warburg Pincus, Kohlberg

Kravis Roberts (KKR), TPG, Bain Capital, and Carlyle Group.

Honda will continue to provide technology to Hero Honda motorbikes until 2014 for

existing as well as future models.

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 Objective of the Study

OBJECTIVES

This study was conducted keeping the following objectives in mind.

1. To study the factors which influence the purchase of Hero two-wheeler like

Price, look and mileage.

2. To know the customer level of awareness of Hero two-wheelers.

3. To know the various factors, which influence customers buying behavior of

two wheelers like Age, Gender, Brand Preference of Hero.

4. To evaluate the after sales service offered by Hero MotoCorp Ltd. In Shivane

Pune

5. To review the level of Customer Satisfaction of Two wheeler bikes of Hero

MotoCorp Ltd.

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 NEED FOR THE STUDY

Marketing starts with identifying the needs of customers and ends in satisfying

those wants. The goal of marketing is to attract new customers by promising superior

value and to keep current customers by delivering satisfaction based on their

preferences retaining them.

Without customer, no market exists. As the customers are regarded as the

superiors in today’s market, the level of satisfaction and their preferences should be

keenly studied.

The two-wheeler industry has been expanding rapidly. Gone are the days

when possessing a two-wheeler was seen as a luxury. Now days, it is viewed as a

mere necessity.

Prior, sale of two-wheelers was mainly confined to urban areas but lately in

rural areas the bicycles are being replaced by power driven two-wheelers such as

scooters, motorcycles.

Not only this, this industry has also customers ranging from all demographic

segments. It has been common sights that even school going children are driving two-

wheelers. The women customers are also increasing due to increase in women literacy

and employment.

Getting a new customer is difficult, than retaining a current customer is a more

difficult one and not only that it is estimated that the cost of attracting a new customer

is five times the cost of retaining current customer. It requires a great deal of effort to

14
induce satisfied customer to switch away from their current preference. Thus,

customer satisfaction is been given top priority in today’s competitive world.

Therefore, keeping the above stated objective in mind, this study was conducted to

ascertain the customer’s satisfaction towards Hero two-wheelers in Hero MotoCorp

Ltd. In view of this, a detailed study of customer preferences, levels of satisfaction

and their complaints and suggestions was undertaken.

15
Research Methodology:-

Research is a planned and systematic investigation and analysis of factual data to

check, verity or disapprove guesses, clues, assumption it supplements the existing

body of knowledge and widens the frontiers of understanding.

Edwin Flippo defines research as “systematic and purposive investigation of facts

with object of determining cause and effect relationship among such as facts.”

Method is the scientific way of doing things to achieve the desire result. In this

particular study, the researcher has followed the scientific steps as enumerated.

Marketing research is the function which links the consumer, customer and

public to the marketers through information used to identify and define marketing,

opportunities and problems, generates refine marketing action; monitor marketing

performance; and improve understanding of marketing as a process. Marketing

research specifies the information required to address these issues; designs the method

for collection information manages and implements the data collection process;

analysis the results and communication the findings and their implication.

Primary Data:

Primary Data has been gathered by a survey through a structured

questionnaire.

The Data has been collected from 100 customers, through questionnaires, by

using simple random sampling. In addition interaction with the staff of Hero

MotoCorp Ltd has also given some information.

 Observation

 Personal discussion and interactions

 Personal Interview

16
Secondary Data:

The secondary data on the other hand are based on second hand information.

The data which have been already been collected, compiled and presented easier by

any agency may be used for the purpose of investigated such data may be called

“Secondary Data”.

Secondary data was collected from:

 Company’s Website

 Reports of Company

 Books on Marketing and Research Methodology

17
 Report, to the customer of research results who may be either an individual or a
Group of individual or some public/private organization

Research Statement

Research Problem “To Study of consumer buying behavior for two wheeler motor
bike with reference to hero motors.” shivne, pune.

Type of Research Design Descriptive Research Design

Company GOYAL HERO MOTORS.

Place Pune

Period of Survey 25TH MAY 2016 to 28th July 2016

Type of sampling method Descriptive Method

Sample size 100

Data source Primary and secondary data

Data Collection Method Structured Questionnaires

Analysis approach Narrative

Tool Use For Data Percentage Method

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Showing type of Hero two wheeler models owned

Num Name of Hero two No. of

wheeler respondents

1 SPLENDOR PLUS 28

2 SPLENDOR PRO 10

3 PASSION PRO 32

4 HUNK 2

5 KARIZMA ZMR 4

6 KARIZMA 3

7 MAESTRO 6

8 SPLENDOR NXG 5

9 PLEASURE 9

10 HF DAWN 1

Total 100

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Q.1 showing the source of information about Hero

No. of
respondents,
others, 20, No. of
20% respondents,
News paper
ads
No. of , 9, 9%
respondents,
Television
ads, 57, 57%
No. of
respondents,
Roadside
Boarding’s,
14, 14%

News paper ads Television ads

Roadside Boarding’s others

Inference:

From the above table it is inferred that people are getting information about hero two

wheelers from television ads, more than 50% of people are watching TV ads.

Roadside Boarding & newspaper are less in performance; other sources contain motor

shows, internet ads.

20
Q.2 Show the influenced people for buying Hero.

Influenced people No. of respondents

Family 34
Myself 16

Friend 35

Sales representative 15

Total 100

Inference: -

From the above table it is observed that, the buying behavior people mostly
influenced by family and friends the other factor is have less level of influence. The
people how using bike mostly youth & middle class people and they are influenced
by their friends and family respectively. The above table showing that 35% of people
influenced by their friends 34% people through family 16% people is buying on their
need. 15% because of sales representative.

21
Q. 3) Showing the preference of capacity and colour

Capacity No. of Preference of No. of

Respondents colour respondents
100cc 17 Blue 23
125cc 18 Red 24
150cc 35 Black 39
200cc 20 other 14
Total 100 Total 100

Chart Title

35

30

25

20

15

10

0
100 cc 125cc 150cc 200cc

Inference: -

From the above table it is observed that, the bike ‘cc’ preference is deferent
customer to customer but the 35% people like 150cc bike and 28% like 125cc,
200cc bike 20% others 100cc.e preference of color ‘BLACK’ is rating at near to
40% of people after that 24% like Red color 23% Blue also . Other color like
white getting less importance in selection

22
Q. 4) Showing the responses on Vehicle delivery time
respondents No. of respondents

Yes (on time) 78

NO (not on time) 22

Total 100

showing on time
Vehicle delivery,
No, 22, 22%

showing on time
Vehicle delivery,
Yes, 78, 78%

Inference: -

From the above table it is observed that,

 78% of respondents got delivery of their vehicle on time

 22% says that the delivery of vehicle got delay

After enquire about the 22% it’s showing that they asked for very demand vehicle like
PASSION & SPLENDOR bikes and some of them ask new bike like Maestro

23
Q. 5) Showing availability test drive during on showroom visit

Respondents No. of respondents

Yes 92

NO 8

Total 100

100

80

60
Availability test drive
40 during on showroom visit

20

0
Yes No

Inference:-

From the above table it is observed that, 92% of respondents got test

drive during their showroom visit, 8% didn’t got because of two reason some of

them ask the bike that not showcase in showrooms and some of them gone small

showrooms.

24
Q. 6) Showing the reliability of Vehicle

Respondents No. of respondents

Excellent 16
Good 23
Moderate 21
Satisfactory 39

Unsatisfactory 1

Total 100

Excellent
Good
Moderate
Satisfactory
unsatisfactory

Inference: -

The above table shows how the customer rate the reliability of Hero bike, it is

observed that 16% of them telling its excellent 23% respond that its good and

21% have moderate opinion 39% is satisfied with the performance and 1 of the

respondent is not satisfied with the Hero bike.

25
Q. 7) Showing level of Service Satisfaction

Respondents No. of respondents

Completely satisfied 34

Satisfied 39

Dissatisfied 12

Not at all satisfied 15

Total 100

Completely satisfied

satisfied

dissatisfied

Not at all satisfied

Inference:-

The above table shows the satisfaction towards Hero bike on the time of Service 34% of
respondents are completely satisfied with the service provide by the company and
satisfied with the service provide 39% customers are satisfied and 12% dissatisfied, 15%
is not at all by the company the following chart shows it more clearly

26
 Q. 8) showing the brand name influence in purchase

Respondents No. of respondents Percentage

Yes 74 74%

NO 26 26%

Total 100 100%

Sales, No, 26,

26%

Sales, Yes, 74,

74%

Inference:-

From the above table it is observed that, the customers are influenced by the brand
name “HERO MOTOCROP” 74% of respondents are influence by the brand name
and 26% are not the brand “HERO” is the most selling bike in India and Its is the
brand that selling more bike in the world

27
Q.9) Showing the area that Customer demanding to improve in
service
Area No. Of Respondents in %

Service in time 31

Reliable service 16

Well trained mechanics 27

less labor charge 26

TOTAL 100

Chart Title

Service in time
Reliable service
Well trained mechanics
less labor charge

Inference:-

From the above table it is observed that, what is customer need that Hero wants to
improve, 31% need improvement in service in time, 16% in reliable service, and 27%
need well trained mechanics, 26% less labor charge

28
Q.10) Showing how long customer using hero two wheelers
Time period No. Of

Respondents

Less than 6 month 24

6-9 month 23

9 -1 year 32

More than 1 year 21

TOTAL 100

Less than 6 month 6-9 month

9 -1 year More than 1 year

Inference:-
From the above table we can infer that how long the customer holds the bike the
split between Hero and Honda happen less than 3 year back and this table help to
know the using period of customer 79% of people that in the research is brought their
bike in the last year and 21% is using the bike more than 1 year

29
FINDINGS

1. The Hero MotoCorp is leading the market. The difference is too big to cope up
with, for any manufacturer in short span. With proven products and
many

people having faith in brand, it is quite a difficult task for others to take the

Hero’s number one position.

2. Ability to understand customer’s needs and wants, maintenance cost is low.

3. Passion Pro, Splendor Plus, are the two models that Hero MotoCorp selling a
big number

4. The TV promotions are more influence the customer behavior of two wheeler
sector.
5. The purchase desiccations of consumers are influence by friends and family.
6. Blue, Red, Black color bike with 150 cc to 200cc is fast moving.
7. Most of the despondences are agree that the bikes are delivering proper time.

8. The service provide by Hero MotoCorp is satisfied by more than 70%

of customers.

9. Brand name of Hero is still good in market after split with Honda, 74% of
people like the brand “HERO"

10. Quality, price, Brand image, Fuel efficiency is getting equal importance in
satisfaction
11. The research showing that consumer want to get more service satisfaction

30
SUGGESTIONS

It is very hard to hold the pulse of a customer in the market. Customer’s satisfaction

is different for different people at different situations;

1. Majority of the respondents were still unaware about different versions of

Hero bikes. Therefore I suggest the company personals should take initiative

to create awareness about these versions.

2. Few of the customers expressed concern over frequency of the maintenance &

service problems faced by their vehicle and expressed ‘high satisfaction ’ over

it. Therefore, I suggest them to re look at the vehicle & re-develop in order to

stop the frequency of these problems.

3. Hero MotoCorp want to give more importance in there service part its include

timely service, and quality of service

4. Hero want to develop more promotion for there some models like sports bike

and gear less scooter

5. Hero bikes want to increase their export market

6. Hero MotoCorp Ltd should try to give more advertisements in news paper, bill

boards in that area to enable easy recall of the people for Hero MotoCorp Ltd.

31
LIMITATIONS

I have observed the following limitations in the course of my study.

1. The areas which were selected were limited only to Bangalore i.e., the

findings are regional and do not represent the state or country.

2. Time constraints hampered the study.

3. Since the study involved in gathering information was from upper to higher-

middle class people, interaction with them became difficult.

4. There may be respondent’s bias.

5. Even though utmost care has been taken in conducting the survey, the findings

may sometimes differ from the population.

6. The study is conducted of academic nature

7. The split happened 1 year before, the study not giving the long run result of

Hero Motors Bikes

32
 CONCLUSION

Customer satisfaction is a marketing tool and a definite value added benefit. It is

often perceived by customers as important as the primary product or service your

organization offers.

For making a better relationship with customer they always use genuine parts in

their product. And after selling they have the services and maintenances. Their

constant endeavor is to support the company's mandate of providing highest level

of customer satisfaction by taking good care of customer ’s two-wheeler service

and maintenance through their vast network of more than 2100 committed dealers

and service outlets spread across the country.

Apart from that hero MotoCorp Ltd focused on cleanliness and other aesthetics of

the service stations and add such air conditioned waiting area, internet surfing,

coffee shops etc to enhance the in house experience of the customers at those

“customer touch point”. To ensure that millions of customers in the rural area are

not left waiting for adequate service as it is impossible for the company to

introduce service station at every nook and corner of the country, mobile service

stations are regularly arranged with prior intimation to public about the rout that

the mobile workshop would take when passing through that region so that

customers can come and get their two wheelers serviced. All these activities are

aimed to increase the customer loyalty and thus retaining customers.

33
 ANNEXURE

QUESTIONNAIRE:

a) Name b) Age

c) Gender .. d) Income .

e) Address

1) Do you have own bike?

(A) Yes[ ] (B)NO[ ] IF Yes
then,

2) Which company bike do you have at present?

a) Hero (b) Honda

(c) Suzuki ( d) Bajaj

3) What is your occupation?

(A)Student[ ] (B)Employed[ ]

(C)Businessman[ ] (D)Other[ ]

4) Whom do you refer purchasing bike?

(A)News paper[ ] (B)Tv advertisement[ ]

(C)Friends[ ] (D)Other[ ]

5) Who is decision maker for purchasing bike in your family?

(A)father[ ] (B)Mother[ ]

(C)self[ ] (D)Other[ ]

6) How you purchase bike ?

(A)By cash[ ] (B)By loan[ ]

34
7) What features you considers when you purchase bike please give
the rank.

Attributes Excellent Very Good Average Poor

good
Price
Less
maintence
Style
Durability
Mileage
Easy
driving
Brand
reputation
Color

8) Rate the following attribute of showroom.

Attributes 1 2 3 4 5

Availbility

After sales

Services

Infrastructure

9) What feature you except from Hero bike in case you wish to purchase?

(A)Quality[ ] (B)Brand image [ ]

(C)Price[ ] [D]Resale value [ ]

(E)Fuel efficiency[ ]

35
10) Are you satisfied with Hero bike?

(A)Yes[ ] (B)No[ ]

11) What is your opinion of the service of Hero Motors Ltd?

(A)Excellent [ ] (B)Average[ ]

(C)Good [ ] (D)Poor[ ]

(E)Very poor[ ]

12) Your opinion about cleanliness and services provided by the work
shop?

(A)Excellent [ ] (B) Average[ ]

(C)Good [ ] (D) Poor [ ]

(E)Very poor [ ]

13) Give your suggestion.

_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________

36
 Bibliography

1. Companion Encyclopedia of Marketing by Baker, Michael

John, ed
2. Marketing Management. 12th ed. by Kotler, Philip, and Kevin
Lane
3. Encyclopedia of Major Marketing Campaigns

37