A STUDY ON CUSTOMER PEREFERENCES FOR SMALL

PASSENGER CARS

By: Guru Sharma K

1KG19MBA11
 INTRODUCTION
The automobile industry is one of the major industry in our India
economy. As with Liberalization in our country , it has formed a
platform or playground for major global automobile companies.
Currently car is considered as one of the most significant
purchases that each Indian household try to make.The car
business today is the most interesting industry. It is because of
the expansion in unrestricted cash flow in country and
metropolitan area, simple financing office, solid development
popular because of rising pay of the working class and the
expanding number and effect of youthful populace brought about
the quick increment of four wheeler deals.

The paper helps to know the key factors that impact on

consumer buying preferences and that have influence on it.
 Literature Review
Dr.Vishal S.Rana (2015) his study stated that car or 4 wheeler
Companies are becoming customer centric & also they are
focusing on customer preferences that satisfying their customers.
As they recognized that in present cut throat competition, crucial in
satisfying & delighting the customers.
Because there is a constant change in expectations, needs, &
lifestyle of customers, even many companies feel themselves in
dilemma that how they must try to satisfy the customers and which
all strategies they must adopt to match customer preferences.

According to Saxena,M. & et al , (2012) research found that four

wheeler automobile companies must focus on various factors for
customer preferences like income, gender, work professions,
quality, brand name and other segmentations factors.
 
 Need of the study
 In the modern times four wheeler business organizations are
adopting various new methods & techniques for the growth
of the automobile business. The organizations are giving
better services to their customers to face challenge posed by
the competitors for running their business, also company
faces huge challenges to retain existing customer and grab
the potential customers.

 With the boost in percentage of sale in automobile industry

and the demand of car in today’s world, this study helps to
understand the customer preference towards purchase of car.

 This study helps to know the different factors that effects on

the buying preferences of passenger cars.
Objective of the study

 Toknow the buyer preferences & intentions towards

buying a car.

 To identify the various factors that influence on

customer preferences while purchasing four wheelers.

 Toanalyze the overall preferences of buyers towards

choice of their car.
 Scope of the Study
This study helps the car manufactures to understand buyer
preferences for passenger cars .

This study will help the car manufacturing companies to

know:
1. The main reason why buyer will opt four-wheeler.
2. To know the main features/attributes considered by the
buyer during purchase of a passenger car
3. To know the which is most preferred brand based on
preferences & intentions by the customers.
4. The scope of the study is limited up to Bangalore City.
 Limitation of the Study
 Time period of project work is limited to 6 weeks.

 Respondents will give wrong answers to questionnaires

during data collection.

 Sample size is small.

 Difficulty in availability of secondary data during

project work.
 Research Methodology
Type of Research: In this project we used explorative and descriptive research.
 Exploratory Research: this research use for the investigate a problem which is not
cleared defined, it conducted to have a better understandings of the existing problems.
 Descriptive research: Descriptive studies aims to accurately and systematically decrease a
population, state of affairs in the phenomenon. It can be a solution what, in which, when
and how questions, it’s a Unlike in Experimental studies.
 
Data collection methods
The data required for the study is collected by making the questionnaires. And basically we
use 2 different data collection method Primary and secondary data collection.
Primary data collection method: I Have used questionnaires and face to face interaction
with the customer to find out primary data.
Secondary data collection method: Secondary data is collected from articles, journals,
consumer behavior book, internet, reports, magazines and news paper.
 Sampling: Sampling is a method of collection data from subset of population, which is
needed for the analysis. By taking the convenience data have been analyzed to collect the
whole information.
 Sampling tool: Graphical method or percentage analysis.
 Project sample size: a sample of 86 respondent is conceded.
 Sampling method: Non- probability method using the project.
 Sampling Technique: Judgment or Convenience sampling technique.
Analysis
Buyer preferences are based on maintenance cost and after sales
service of the car

PARTICULARS NO. OF PERCENTAGE

RESPONDENTS
Strongly Agree 30 35%
Agree 21 24%
No opinion 10 12%
Disagree 15 17%
Strongly disagree 10 12%
Total 86 100%

ANALYSIS: From the above table shows that 35% of respondents are
strongly agreed that maintains and after service are important in life, 24% of
them have agreed, 12% of them have no opinion, 17% of them have disagree
and 12% of respondents have said strongly disagree about it.
 Customer preference are based on maintenance
and after sales service of the car

INTERPEREATION: The chart recommends that 35% of respondents strongly

agreed that their purchase is based on maintenance and after sale service of the
car are important hence it’s a majority of the respondent are more because it helps
in time saving and risk free to make sure for no worries in their day to day life.
Buying preference is based on the various credit facility and
loans from the bank.

PARTICULAR NO. OF RESPONDENTS PERCENTAGE

Strongly agree 26 30%
Agree 28 33%
No opinion 10 12%
disagree 13 15%
Strongly 09 10%
disagree
TOTAL 86 100%

ANALYSIS: Out of 86 respondents 30% have strongly agreed for the various
financial options to make a purchase of car , 33% have agreed and 12% have no
opinion, 15% have disagree and 10% have strongly disagree for the buying
preference based on the credit & loan facility
Buying preference is based on the various credit facility and
loans from the bank.

INTERPERTATION: The Graph predicts that 33% strongly agreed about

various credit & loan facility influence on preferring four-wheelers.
Hence therefore the automobile showroom or companies must provide credit
& bank loan facilities with different ways four wheeler cars which will
greatly effect on purchasing the product.
FINDINGS
 20% of the respondent have said that increase in tax will effect in
their buying behaviour of car.

 26% of buyers said that Ads in various communication channels

& company promotional activities will make a great impact on
brand awareness of cars & its specifications.

 28% out of People do prefer buying car during festival season as

a positive appeal.

 Social networking sites and medias will make a huge impact in

choosing a latest trend in car and 28% do make a agree for this.

 33% of the respondent have said that fuel efficiency or mileage of

car will make a major impact while buying car.
 Suggestions
 Company must use of various offers like easy financing offer(zero down payment
option), exchange offer to influence on buyers preferences towards purchase of
passenger car.

 Company must collect reviews & feedbacks from satisfied customer about the
product, which act as reference point for attracting the attention of potential
customers in the market.

 Car companies must use multi communication channels & social media sites to
communication about new products & its specifications.

 Car companies must make all automobile spare parts and components easily
accessible to regional and domestic customer to change the buyer intentions &
preferences towards passenger car.

 Word of mouth & different reference groups will make a impact on purchase by
their suggestion and review about the car.

 Most of the buyers expect finance services from banks with low interest rate for
loan. & also buyer wants extended warranty to reduce their maintainance cost &
service expenses.
 Conclusion
This study helps to conclude that buyers characteristics like financial and
demographic variables will change the buyer preferences towards passenger
cars.

It also observed that many customer prefer to buy car for their transport
purpose irrespective of their family size comfortability. Even many buyers
prefer to buy a comfortable car which lies within financial affordability &
status in society.

Any car or automobile manufacturer, it has become crucial to focus on

enhancing its brand image. Also car manufacturer must concentrate on
innovation of design & style with additional specifications to sustain or
survive by influencing buyers preferences.

After this study we get to know that various effect on buyer preferences for a
car are look. Many buyers prefer key factor that influence on their brand
preferences are after sale services, opinion based on referral groups,
Maintenance and availability of spare parts, word of mouth communication,
resale value of the for wheeler, buying based on the various credit facility
and loans, increase in tax..
Any queries

THANKYOU