CONTINUOUS INTERNAL ASSESSMENT-3

RESEARCH METHODOLOGY
Research Report on

FACTORS AFFECTING DECREASING BRAND LOYALTY OF

JAWA MOTORCYCLES CUSTOMERS

Under the guidance of

Prof. Nagendra BV
Submitted By

ANAND BENNY ( 2327805)

POOJA JOSEPH MATTAM (2327636)
TEJAS B (2327963)
MD ABDUD DAIYAAN (2328407)

MBA PROGRAMME

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (DEEMED TO BE UNIVERSITY), BANGALORE

MARCH 2024
 TABLE OF CONTENTS

Sl.no Particulars Pg.no

1 Executive summary 2

2 The problem and its background 2-4

3 The research question 4

4 The research problem 4

5 Evidence supporting the problem (Review of 4-5

Literature)

6 Research objectives 6

7 Research hypotheses 6

8 Research Methodology 6-7

9 Inferential Analysis 7-20

10 Statistical Analysis 21-25

12 Recommendations 25

13 Conclusion 25-26

14 References 26

15 Appendix 26-31

1
EXECUTIVE SUMMARY

Jawa motorcycle is among the most successful and prominent brand names in every Indian household
regarding motorcycles. It came in at an era where most companies were trying to produce economical
motorcycles, and no company had any idea how to execute the concept of a medium displacement
motorcycle that was powerful and economical for its time. It soon became a status symbol for the
average Indian. This brought a sense of brand loyalty that was passed down through generations.
However, it is noticed that there is a trend of loyalty shifts happening with the current consumers of
the brand, and this research proposes to find out the root causes and offer solutions to resolve the issues
so that Jawa motorcycle can gain their lost ground in the Indian market.

THE PROBLEM AND ITS BACKGROUND

Jawa motorcycles, known for their classic design and performance, have seen a drop in sales recently.
This decline is due to a shift in focus from their core strengths towards features like complex
navigation systems. These new features confused mechanics and resulted in a decline in overall
product quality. Additionally, Jawa's loyal customer base, who valued simplicity, felt these features
went against the traditional Jawa experience. To revive sales, Jawa needs to find a way to balance their
classic appeal with thoughtful integration of technology, ensuring a smooth service experience for
their customers.

2
RESEARCH QUESTION
Is the brand loyalty of Jawa motorcycle decreasing due to the declining service and product qualities?

RESEARCH PROBLEM

The research aims to determine how the customers brand loyalty towards Jawa motorcycle relates to
the final product's overall product and service quality.

EVIDENCE SUPPORTING THE PROBLEM

SOURCE OF DATA
The data was mainly collected from primary and secondary sources from books, journals, and web
articles (secondary), and new data was collected from the interviews with mechanics that were used
to form the research problem.

REVIEW OF LITERATURE
The 2-Wheeler Industry in India entered the manufacturing course in the early 1950s when
Automobile Products of India (API) started manufacturing scooters in India.

According to India Infoline (2003), in 1948, Bajaj Auto began importing Italian brands into India.
Some of them included Lamberta and Vespa from LML. In 1960, Bajaj started a collaboration with
Piaggio of Italy. The partnership ended in 1971. Initially, the motorcycle segment began with three
manufacturers like Enfield, Escorts, and Jawa. In the '80s, two-wheeler motorbikes opened up,
buzzing the market by a sudden current.

According to an article by Televisory (2019), the volume of JAWA's sales increased by about
32% over the previous five years (FY2014 - FY2019). As the sales volume increased by 2% year-
over-year in October 2019, the holiday discount offers relief (the only month that saw positive
growth). This dramatic drop in recent months was caused mainly by decreased domestic sales by
19%.

3
According to Singhi (2020), overall motorcycle sales experienced a sharp decline of 18% in FY
2020; total motorcycle sales had a significant fall of 18% from the prior year. There were 17.5
million units sold overall. The worst appears to be over, though, as the effects of the Pandemic
(COVID-19) have subsided and the manufacturing PMI has increased to an all-time high in the
last ten years. Additionally, this can be inferred from the fact that sales of two- and three-wheeled
vehicles have been rising overall.

RESEARCH OBJECTIVES

• To determine the level of brand loyalty among consumers of Jawa motorcycles.

• To find the relation between product quality and standards of after-sales service and the
customer’s brand loyalty.
• To suggest preventive measures to boost sales and overall value proposition.

RESEARCH HYPOTHESES
Suitable hypotheses can be formed with the existing research problem. They are as follows:

Hypothesis 1:

H0: There is no significant relationship between service quality and brand loyalty.

H1: There exist a significant relationship between service quality and brand loyalty.

These hypotheses was tested with the right mix of data collection tools and software (SPSS).

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RESEARCH METHODOLOGY

DATA COLLECTION

The survey was conducted online as a questionnaire circulated through social media
platforms like WhatsApp, e-mail, and LinkedIn to gather complete information. The sample
size is 75 respondents, and the questionnaire will include 25 questions. These questionnaires
primarily focus on how people learned about the brand, what factors affect buying and loyalty
decisions, regarding quality, etc. They will be distributed to all existing and prospective JAWA
owners and mechanics to get a comprehensive view of the problem. A selected group of 10
mechanics is also interviewed personally to get their opinions on the matter.

DATA ANALYSIS

The data collected from the survey through the questionnaire and personal interviews will be
analyzed by conducting a Chi-square test and Factor Analysis. The Chi-square test is conducted
to identify the dependence of quality on loyalty, and the Factor Analysis is done to identify the
main factors contributing to this fall in brand loyalty. It helps us understand how these variables
combined contribute to brand loyalty.

5
ANALYSIS OF THE GATHERED DATA

INFERENTIAL ANALYSI

1. Gender

From the graph, it can be seen that around 72% of our respondents are male, and 28% percent of
the respondents are female. Hence, it can be inferred that males ride JAWA motorcycles more
than females.

2. Age

From the above bar graph, it is evident that 76% of the respondents are 18-24 years old. This
means that the youth demographic is more attracted towards buying and using JAWA
motorcycles.
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 3. Occupation

From the above graph, it can be seen that students form the majority of the population who buy
motorcycles, especially JAWA. It can be implied that the students, who form 67% of the
respondents are likely to be handed these motorcycles by their family members. The next segment
is the employed full-time people who form 17% of the respondents.

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 4. Income Level

On analyzing the income levels of respondents. We can see that the majority of Respondents (85%)
have an income level that is less than 500,000. Only a small proportion of respondents have an
income level that is 10,00,000 or higher. Specifically, 7% of respondents have an income level
between 10,00,000 and 12,00,000, while just 3% of the respondents have an income level of
12,00,000 and above. Additionally, 6% of respondents have an income level between 5,00,000 and
7,00,000. These income levels suggest that the majority of respondents may be middle or lower-
income individuals.

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5. Educational background of the respondents

The pie chart interpretation shows that out of the 75 respondents, the majority of them, 44 (61.1%),
have completed their Bachelor's degree. The second largest section of the pie chart represents the
respondents with a Master's degree (26), making up 36.1% of the total respondents. The smallest
section of the pie chart represents the respondents with a high school diploma or equivalent, which
is only 2.8% of the total respondents.

This indicates that the sample population of this research primarily consists of individuals who
have pursued higher education beyond high school, with a large proportion of respondents having
at least a Bachelor's degree. It also suggests that the research has attracted a relatively well-
educated sample population

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6. Years of Experience in Motorcycle Riding

The histogram shows the distribution of the number of years that respondents have been riding
motorcycles. The x-axis represents the different time intervals,while the y-axis represents the
percentage of respondents falling in each time interval.

As we can see, the highest percentage of respondents fall in the time interval of 6-10 years(29.2%)
, followed closely by the time interval of 3-5 years(27.8%). The time intervals of 1-2 years and
less than a year have the lowest percentage of respondents, with only 11.1% and 8.3% of the total
respondents respectively. More than 10 years time interval has 23.6%of the respondents. This
suggest that the sample we have taken for the research involves a mature audience with the major
percentage of the respondents(53%) having experience of more than 5 years in riding motorcycles.

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7. Types of Motorcycles used by Respondents in the past

The Histogram displays the distribution of different types of motorcycles that have been owned by
the respondent. It is evident that the majority of respondents( approximately 74%) have owned
Standard motorcycles. Followed by cruisers (10%) and sports(8%). This reinforced the
interpretation that standard motorcycles are the most popular type of motorcycles among the
respondents.

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8. Number of Vehicles owned by the respondents.

The Pie chart shows that the majority of respondents (75%) own only one motorcycle.the next common
response being two,with (19%) respondents indicating this number. This may indicate that owning
multiple motorcycles is not a common practice among the sample of respondents, or that financial
constraints may prevent them from owning more than one motorcycle.

9. Brand of motorcycle currently owned by the respondents

Brand of Motorcycle Currently Owned

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Bajaj Royal Honda Jawa TVS Hero
Enfield

From the histogram , it is evident that the most popular motorcycle brand among the respondents
is royal enfield, with approximately 39% of the responses. The next popular brand is the hero with
18% and honda with 17% of the respondents. One possible reason for this is due to royal enfields
strong heritage and history. The brand which has been in existence for over a century has a rich
legacy that may contribute to its popularity among motorcycle enthusiasts.
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10. Years of ownership of the Jawa motorcycle Brand

No. of years Jawa Owned

Less than 1 year

1-2yrs

3-5yrs

6-10yrs

Never Owned a Jawa Before

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

The graph that shows the number of years of ownership of Jawa motorcycle among respondents
shows that the majority of respondents have not owned one.(44%) . this maybe due to several factors
such as lack of interest in the brand, financial constraints, availability of other options that fit better
to their needs, or simply lack of exposure to the brand. However we can notice that these
respondents are enthusiastic about the brand and have participated in the research due to this
criterion. Among those who have owned a Jawa motorcycle, the most common duration of
ownership is 1-2 years, with 25% of the respondents. Followed by 26% of the population who
have owned a motorcycle for the time period of more than 3-10 years. Potential reasons for this
number is strong emotional attachment to the brand, sense of community belonging with other
JAWA users, or an appreciation for the unique design and style of the brand.

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11. Ownership of the JAWA brand in the Past

Owned a Jawa Motorcycle in the

past

42%

58%

Yes No

The pie chart clearly shows that a majority of the sample population have not owned a Jawa
motorcycle in the past(58.3%) , while a significant minority have had experience with the
brand.(41.7%) there could be various reasons for this such as limited availability, financial
constraints or simply, lack of interest.

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12. Factors influencing the purchasing behavior of the brand enthusiast.

Factors Influencing Purchase Decision on Jawa

13%
21%

5%

3%

14%

44%

Brand Reoutation Durability Never Owned a Jawa Before Other Size Retro Design

The pie chart created with the data on factors influencing the decision to purchase a Jawa
motorcycle shows that 44% of the respondents had never owned a Jawa motorcycle Among the
56% of respondents who owned a Jawa motorcycle, retro design was the most significant factor,
as mentioned by 37.5% of respondents. Brand reputation was the second most significant factor,
mentioned by 22.5% of respondents, followed by other factors mentioned by 25% of
respondents. Durability and price were mentioned by 10% and 5% of respondents respectively.
The pie chart clearly shows that retro design was the most influential factor for a significant
proportion of respondents who owned a Jawa motorcycle, while brand reputation was also a
significant factor for a smaller but still significant proportion of respondents.

15
13. Proportion of respondents with issues with the brand.

Issues or Problems with Jawa

32%

44%

24%

Never Owned a Jawa Before No Yes

It can be observed that out of the total 72 respondents, almost half (44.44%) have never owned a
Jawa motorcycle and therefore did not experience any issues or problems with it. On the other
hand, 23.61% of the respondents owned a Jawa motorcycle but did not report any issues or
problems with it.

The remaining 31.94% of the respondents owned a Jawa motorcycle and reported experiencing
issues or problems with it. This indicates that Jawa motorcycle owners face some issues or
problems, although it is not clear from the data what these issues or problems are. Overall, the
data suggests that a significant proportion of Jawa motorcycle owners have experienced issues or
problems with their bikes.

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14. Factors influencing decision of Switching

It can be inferred that Jawa motorcycle owners who are considering switching to a different brand
are primarily driven by two factors: the availability of spare parts and service centers, and the price
of the motorcycles.
According to the data provided, out of the 72 respondents who have considered switching to a
different motorcycle brand, the majority of them (52.78%) cited price as a factor contributing to
their decision. The availability of spare parts and service centers was also a significant factor, with
34 respondents (47.22%) citing it as a factor contributing to their decision.

This suggests that Jawa motorcycle may need to focus on improving the availability of spare parts
and service centers to ensure that its customers are satisfied and do not feel the need to switch to
other brands.
Additionally, the pricing of Jawa motorcycle may be a concern for some customers, and the
company may need to consider strategies to address this, such as offering competitive pricing or
introducing new models with lower price points.

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15. Respondent experience in Service of brand

Based on the data provided, 40% of Jawa motorcycle owners reported that they never had to visit a
service center for performance-related issues in the past year. Additionally, 34.29% of owners
reported having to visit a service center once or twice, while 21.43% of owners had to visit three to
five times. Only 4.29% of owners had to visit a service center more than five times for
performance-related issues.

Overall, this data suggests that most Jawa motorcycle owners did not experience significant
performance-related issues with their bikes in the past year, as 74.29% of respondents reported
having to visit a service center three times or fewer. However, the fact that 25.71% of owners had
to visit a service center more than three times indicates that there is still room for improvement in
the quality and reliability of Jawa motorcycle.

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 STATISTICAL ANALYSIS

a. Factor Analysis

i. KMO and Bartlett’s test of Sampling Adequacy

From the table above, we can observe that the KMO measure of the given model is 0.596.
This means that the sample chosen for analysis is adequate. The significance value is lesser
than 0.001 which indicates that the model is an accurate model for analysis.

● Scree Plot

From the above plot, we can see that there are five main factors that are affecting brand loyalty
towards JAWA. All the factors that have an Eigenvalue of more than 1 are the factors that are being

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 taken into consideration.

● Communalities

From the below table of commonalities, we can see how each component is affecting the overall
loyalty towards the brand. It is observable that the no of issues faced by the customer and the overall
satisfaction towards the motorcycles are the most influencing factors here at .878 and .869 eigenvalues. The least
influential factors are current motor cycle brand and the question to switch to another brand. The closer the
communality is to 1, the better the variable is explained by the factors.. The complete list of communalities is given
below with their respective values. .

Communalities

Initial Extraction

How often do you ride a motorcycle? 1 0.717

How many motorcycles do you currently own? 1 0.729

What is your current motorcycle brand? 1 0.596

Have you owned a Jawa motorcycle in the past? 1 0.732

How long did you own a Jawa motorcycle? 1 0.843

What model and year of Jawa motorcycle did you own? 1 0.869
What factors influenced your decision to purchase a Jawa
motorcycle? 1 0.732
Did you experience any issues or problems with your Jawa
motorcycle? 1 0.878
Have you considered switching to a different motorcycle brand? If so,
which one(s)? 1 0.65

What factors contributed to your decision to switch or consider switching

to a different motorcycle brand? 1 0.654
How often have you had to visit a Jawa motorcycle service center
for performance-related issues in the past year? 1 0.639
How satisfied are you with the after-sales service provided by Jawa
motorcycle dealers? 1 0.764

How satisfied are you with the quality of Jawa motorcycle? 1 0.86

How satisfied are you with the performance of Jawa motorcycle? 1 0.843

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How satisfied are you with the design and style of Jawa
motorcycle? 1 0.768
How satisfied are you with the technology and features offered by Jawa
motorcycle? 1 0.753
How likely are you to recommend Jawa motorcycle to a friend or family
member? 1 0.674
If you have not recommended Jawa motorcycle to a friend or family
member in the past year, what were the reasons? 1 0.766

b. Chi-Square Test of Independence

By computing new variables called loyalty and service using factor analysis and testing
independence levels between the two variables keeping service as the independent variable and
loyalty as the dependent variable, we can conclude that loyalty is dependent on service. The level
of significance or p-value is less than 0.001. This leads to the rejection of the null hypothesis
which states that loyalty is independent of service quality. Hence, it is proved that loyalty is
dependent on service quality. And as service quality is declining as per data collected and shown
in the inferential statistics column, The alternate hypothesis holds true and the direction of change
is revealed.

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RECOMMENDATIONS

After a careful analysis of the data collected from primary sources, the following recommendations
are given :

1. Hire better staff at showrooms and service centers. Trust with the customers must be built
from the showrooms as that will lead to better customer retention.
2. Trash unnecessary tech upgrades on classic motorcycles. Tech upgrades complicate the
wiring, and that causes the mechanics difficulty in maintenance and repairs.
3. Bring some innovation in terms of product development and marketing. The younger
demographic is more concentrating on power figures and safety while being affordable.
Jawa motorcycleis the veteran still in that space with the ball on their court.

CONCLUSION

In order to summarize, we conclusively proved that the declining brand loyalty of Jawa
motorcycle is due to the declining service quality at the service centers. This was possible with
the help of proper methods of data collection and analyses (inferential and statistical methods were
used to examine the root causes of the problem and suitable methods were used to find out the
dependence of one variable over the other.). The recommendations/solution that would be most
prescribed to the company as a whole would be to inquire into the unwritten “replace instead of
repair” policy that goes around in the showrooms that enables the dealerships to scam the loyal
customers of their money, forcing them to switch. Also, better hiring of qualified and suitable
mechanics should be done so as to reduce the amount of customer complaints at the stores.

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 REFERENCES

● Automobile - Two Wheelers. (n.d.).

https://content.indiainfoline.com/wc/archives/sect/attw/ch02.html Automobile - Two
Wheelers. (n.d.). https://content.indiainfoline.com/wc/archives/sect/attw/ch02.html

APPENDIX

I. Questionnaire

Factors Affecting Decreasing brand loyalty among customers of JAWA

MOTORCYCLES

We are conducting a survey to understand the factors that are contributing to the decrease in brand
loyalty among customers of Jawa motorcycle. Your responses will help us gain valuable insights
into the issues faced by customers and identify areas for improvement. The survey will take
approximately 5-10 minutes to complete. Thank you for your time and participation.

1. Gender
A. Male
B. Female
C. Prefer not to say

2. Age
A. 18-24
B. 25-34
C. 35-44
D. 45-44
E. 55 and Above

3. What is your occupation?

A. Employed Full Time
B. Employed Part Time
C. Self Employed
D. Student
E. Retired
F. Other
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4. What is your monthly income?
A. Less than 5,00,000
B. 5,00,00-7,00,000
C. 8,00,000-10,00,000
D. 10,00,000-12,00,000
E. 12,00,000 and Above

5. What is your level of education?

A. High School or Equivalent
B. Bachelor's Degree
C. Master's Degree
D. Doctorate or Professional Degree

6. How often do you ride a motorcycle?

Often
A. 1
B. 2
C. 3
D. 4
E. 5
Never

7. How many years have you been riding motorcycles?

A. Less than a Year
B. 1-2 Years
C. 3-5 Years
D. 6-10 Years
E. More than 10 Years
F.
8. What type of motorcycles have you owned in the past?
A. Standard
B. Cruiser
C. Sport
D. Adventure
E. Other
9. How many motorcycles do you currently own?
A. 1
B. 2
C. 3
D. 4 or More

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10. What is your current motorcycle brand?

A. TVS
B. Royal Enfield
C. Yamaha
D. Bajaj
E. Honda
F. Hero
G. Kawasaki
H. Harley-Davidson
I. Yezdi
J. Jawa

11. Have you owned a Jawa motorcycle in the past?

A. Yes
B. No

12. How long did you own a Jawa motorcycle?

A. Less than 1 year

B. 1-2 years
C. 3-5 years
D. 6-10 years
E. More than 10 years
F. Never owned a Jawa motorcycle

13. What model and year of Jawa motorcycle did you own?

A. Classic 350/500
B. Bullet 350/500
C. Interceptor 650
D. Continental GT 650
E. Himalayan
F. Other
G. Never owned a Jawa motorcycle

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14. What factors influenced your decision to purchase a Jawa motorcycle?

A. Brand reputation
B. Retro design
C. Price
D. Durability
E. Resale value
F. Other
G. Never owned a Jawa motorcycle
15. Did you experience any issues or problems with your Jawa motorcycle?

A. Yes
B. No
C. Never owned a Jawa motorcycle

16. Have you considered switching to a different motorcycle brand? If so, which one(s)?
A. Honda
B. Yamaha
C. Kawasaki
D. Harley-Davidson
E. Bajaj
F. Yezdi
G. Jawa
H. Royal Enfield
I. TVS
J. Hero
K. Other
L. No, have not considered switching

17. What factors contributed to your decision to switch or consider switching to a different brand?
A. Availability of spare parts and service centers
B. Price

18. How often have you had to visit a Jawa motorcycle service center for performance-related
issues in the past year?
A. Never
B. Once or twice
C. Three to five times
D. More than five times

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 19. How satisfied are you with the after-sales service provided by Jawa motorcycle dealers?

Very Dissatisfied
A. 1
B. 2
C. 3
D. 4
E. 5
Satisfied

20 How satisfied are you with the quality of Jawa motorcycle?

Very Dissatisfied
A. 1
B. 2
C. 3
D. 4
E. 5
Very Satisfied

21. How satisfied are you with the performance of Jawa motorcycle?

Very Dissatisfied
A. 1
B. 2
C. 3
D. 4
E. 5
Very Satisfied.

22. How satisfied are you with the design and style of Jawa motorcycle?

Very Dissatisfied
A. 1
B. 2
C. 3
D. 4
E. 5
Very Satisfied

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23 How satisfied are you with the technology and features offered by Jawa
motorcycle?
Very Dissatisfied
A. 1
B. 2
C. 3
D. 4
E. 5
Very Satisfied

24. How likely are you to recommend Jawa motorcycle to a friend or family member?
Very Likely
A. 1
B. 2
C. 3
D. 4
E. 5
Very Unlikely

25. If you have not recommended Jawa motorcycle to a friend or family member in the past
year, what were the reasons?
A. Quality issues
B. Performance issues
C. Service-related issues
D. Design and style
E. Lack of technology and features
F. Price
G. Other Reasons

*************************************************************************************

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