MAJOR PROJECT REPORT SUBMITED TOWARDS THE PARTIAL FULFILLMENT

OF

BACHELOR OF COMMERCE

MAJOR PROJECT REPORT

ON

Customer buying behavior & level of satisfaction

In

Automobile Industry

Batch: 2019-2022

SUBMITTED BY: PROJECT GUIDE

Name: Himanshu yadav Name: Ms. Isha setia

Enrollment No. 03324088819 Designation: Assistant Professor

TRINITY INSTITUTE OF PROFESSIONAL STUDIES, DWARKA SEC-9

AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY

1
 CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work “Consumer buying behavior & level of satisfaction in
automobile industry” made by Himanshu Yadav enrollment number -03324088819 is an
authentic work carried out by her under guidance and supervision of Ms. Isha setia

The project report submitted has been found satisfactory for the partial fulfillment of the degree
of Bachelor of commerce.

Project supervisor:

Signature:

Ms. Isha setia

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 ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual rather it is an amalgamation of the

efforts, ideas, and cooperation of number of entities.

I would like to thank TRINITY INSTITUTE OF PROFFESIONAL STUDIES for giving an

opportunity to work on a valuable project.

The completion of the project study that follows seemed to be a distant goal had it not been for
the contribution of Ms.Isha setia for allowing me to work on a very intrinsic part on
CUSTOMER BUYING BEHAVIOUR& LEVEL OF SATISFACTION IN AUTOMOBILE
INDUSTRY. I thank her for the ideas and basic concepts she delivered and shared with me, as
they helped me a lot in accomplishing this project of mine.

(Himanshu Yadav)

BCOM (H) 6thSEm

3
 DECLARATION

I hereby declare that the following documented project report titled “CUSTOMER BUYING
BEHAVIOUR& LEVEL OF SATISFACTION IN AUTOMOBILE INDUSTRY” is an original
and authentic work done by me for the partial fulfillment of Bachelors of Business
Administration degree Program at “TRINITY INSTITUTE OF PROFESSIONAL STUDIES”.

I hereby certify that the entire Endeavour out in the fulfillment of the task is genuine and original
to the best of my knowledge & I have not submitted it earlier elsewhere.

SIGNATURE:

Himanshu Yadav

B.com h 6thSem

Enroll. No. - 03324088819

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 TABLE OF CONTENTS
S.NO PARTICULARS Page No.
1 CHAPTER-1( Introduction & Literature Review-Topic,
Industry, Firm)
 Introduction 06 - 24
 History
(Theoretical concept about the topic such as
importance, functions, types, roles)etc
 Literature Review

2 CHAPTER-2(Research Objectives & Methodology)

 Research Objectives Of The Study
 Research Methodology
 Research Design 25 - 30
Types of research design
 Data Collection
 Sampling Design
 Sampling Instrument

3 CHAPTER-3(Data Processing, Analysis & Interpretation)

 No. of Questions 31 - 40
 Types of Questions

4 Findings
42
5 Limitations
43
6 Conclusion
44
7 Suggestion & recommendation
45
8 Bibliography
46
9 Annexure
47 - 51

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 Chapter 1

INTRODUCTION

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 INDUSTRY

It begins as early as 1769.The automobile sector is one of the key segments of the economy
having extensive forward and backward linkages with other key segments of the economy. It
contributes about 4 per cent in India's Gross Domestic Product (GDP) and 5 per cent in India's
industrial production. Indian Automobile sales growth rate would be 11 % by 2013.

The Indian automotive industry has emerged as a 'sunrise sector' in the Indian economy. India is
being deemed as one of the world's fastest growing passenger car markets and second largest two
wheeler manufacturer. It is also home for the largest motor cycle manufacturer and the fifth
largest commercial vehicle manufacturer.

India is expected to become the third largest automobile market in the world. Ford is looking at
India as a major export hub, as per MrJoginder Singh, President and Managing Director, Ford
India.

By 2020, the luxury car segment is estimated to be around three per cent of the overall passenger
car market in India. So, there is huge opportunity for growth. India is going to be one of the
biggest markets for us, worldwide, according to Tomas Ernberg, Managing Director, Volvo Auto
India.

India is the largest base to export compact cars to Europe. Moreover, hybrid and electronic
vehicles are new developments on the automobile canvas and India is one of the key markets for
them. Global and Indian manufacturers are focusing their efforts to develop innovative products,
technologies and supply chains.

The automobiles sector is divided into four segments – two-wheelers (mopeds, scooters,
motorcycles, electric two-wheelers), passenger vehicles (passenger cars, utility vehicles, multi-
purpose vehicles), commercial vehicles (light and medium-heavy vehicles), and three wheelers
(passenger carriers and good carriers).
The industry is one of the key drivers of economic growth of the nation. Since the delicensing of
the sector in 1991 and the subsequent opening up of 100 percent FDI through automatic route,
Indian automobile sector has come a long way. Today, almost every global auto major has set up
facilities in the country.

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In recent years the automobile industry in India has grown by leaps and bounds. In India it is one
of the largest in the world and one of the fastest growing globally.
The Indian Automobile Industry is manufacturing over 11 million vehicles and exporting about
1.5 million every year

SEGMENTATION OF AUTOMOBILE INDUSTRY

Following is the segmentation that how much each sector comprises of whole Indian Automobile
Industry

Indian Auto Market Growth for the year 2007-08

• The automobile industry crossed a landmark with total vehicle production of 1million

• Car sales was 8, 82,094 units against 8, 20,179 units in 2007-08.

• The two-wheeler market grew by 13.6 % with 70, 56,317 units against 62, 09,765 units in
2007-08.

• Commercial vehicles segment grew at 10.1 % with 3,50,683 units against 3,18,430 units
in 2007-08

• The domestic automobile industry sales grew 12.8% at 89, 10,224 units as against 78,
97,629 units in 2007-08.

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Automotive Companies in India

Major Indian Companies Major Multi-national companies

SWOT ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY

STRENGTHS:

• Automobile industry is established and evergreen industry.

• India is the strongest player in small car segment

• Indian Companies are best cost innovators

• Assembly line manufacturing, and JIT inventory management, the automotive industry
has been able to achieve significant gains in productivity.

• Exceptional human resource base

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 WEAKNESS:

• India lack proper infrastructural facilities

• Poor after sales service

• The automotive industry lags behind other sectors such as IT and financial services in
management training, reward and retention.

OPPORTUNITIES:

• Small cars is a future

• Green cars

• Auto financing

• Royalty through Patents

THREATS:

• Global Crisis

• Companies not focusing on R & D are under great risk

• High competition from foreign players

• Lack of technology for Indian companies

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 HISTORY

INDUSTRY

The origin of automobile is not certain. In this section of automobile history, we will only
discuss about the phases of automobile in the development and modernization process since the
first car was shipped to India. We will start automotive history from this point of time.
The automobile industry has changed the way people live and work. The earliest of modern cars
was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As
the century turned, three cars were imported in Mumbai (India). Within decade there were total
of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the beginning of 15th century Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was created.
The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry
Ford's first experimental car that same year.

One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that
featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style
rather than speed.

During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine
and an aluminum body.

The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more
to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their
predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and

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tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was
built on compact and stylized lines, and was capable of 230 kmh (144 mph).

COMPANIES

TATA MOTORS

1945
- The Company was incorporated on 1st September at Mumbai to manufacture diesel vehicles for
commercial use, excavators, industrial shunter, dumpers, heavy forgings and machine tools.

- The commercial diesel vehicles which were known `Tata Mercedes Benz' (TMB) are now
called `Tata' vehicles after the expiry of the collaboration agreement with Daimler-Benz AG,
West Germany. The company also used to manufacture pulp and paper making machinery.

1946
-Tata Enginering undertook manufacture of 5000 'KC' broad gauge open wagons for the Indian
Railway.

-The Managing Agency Tata Sons was transferred to Tata Industries on July 1, 1946. The
Managing Agency system continued till it was abolished by an act of Parliament in 1970.

1948
-Steam Road Roller introduced in collaboration with Marshal Sons (UK) 1950 Collaboration
signed with M/s Krauss-Maffei, W. Germany for manufacture of steam locomotives 1954
Collaboration with M/s Daimler -Benz AG, W.Germany, for the manufacture of medium
commercial vehicles at Jamshedpur.

1956
- Steel foundry set up in collaboration with Usines Emile Henricot of Court St. Etienne, Belgium.

1959

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- Research and Development Center set up at Jamshedpur.

1960
- The company's name, which was Tata Locomotive & Engineering Company Ltd.was changed.

1961

-Collaboration with M/s Pawling & Harnischfeger (P&H), U.S.A. for manufacture of cable type
excavators and cranes.

TOYOTA MOTORS

Toyota Motor Sales, U.S.A., Inc., was formed Oct. 31, 1957, establishing its headquarters in a
former Rambler dealership in Hollywood, Calif. Sales began in 1958 and totaled a modest 288
vehicles – 287 Toyopet Crown sedans and one Land Cruiser.
Enthusiasm turned to gloom when it was found that the Toyopet, a sturdy vehicle with quality
features and room to spare, was woefully underpowered and overpriced for the American
market. Toyopet sales stalled and were discontinued in 1961. The legendary Land Cruiser, which
quickly gained a reputation as a durable, all-terrain vehicle, carried the Toyota flag in the United
Sates until 1965 when the Toyota Corona arrived.
Corona, the first popular Toyota in America, was designed specifically for American drivers.
With a powerful engine, factory-installed air conditioning and an automatic transmission, Corona
helped increase U.S. sales of Toyota vehicles threefold in 1966 to more than 20,000 units.
As more Americans discovered the quality and reliability of Toyota products, sales continued to
soar. By July 1967, Toyota had become the third-best-selling import brand in the United States.

The thrifty Corolla was introduced in 1968 and, like the Corona, was a huge success with
American drivers. Corolla has since become the world’s all-time best-selling passenger car, with
over 30 million sold in more than 140 countries.
In 1972 Toyota sold its one-millionth vehicle. By the end of 1975, Toyota surpassed Volkswagen
to become the No. 1 import brand in the United States. Three years later, in 1978, Toyota won

13
the "Import Triple Crown" by leading all import brands in sales of cars, trucks and total vehicles.

During the 1970s, Toyota launched some of its most memorable marketing campaigns, using tag
lines that included "You Asked for It/You Got It!" and the hit "Oh What A Feeling!" campaign
that included the popular "Toyota Jump."

As Toyota celebrated its 25th anniversary in America during 1982, it opened a new national sales
headquarters complex that it occupies today in Torrance, Calif. Toyota's success continued, and
in 1986, it became the first import automaker to sell more than one million vehicles in America
in a single year, racking up sales of 1,025,305 cars and trucks. That year also marked the
company's debut as a manufacturer in the United States, with the rollout of the first Toyota car
built on American soil. The vehicle, a white Corolla FX16, was produced on Oct. 7, 1986, at the
New United Motor Manufacturing, Inc. plant, a joint venture with General Motors

Since then, Toyota has established many other vehicle and parts plants in North America. By the
end of 2011, Toyota will operate 14 plants across North America, including facilities in the states
of California, Kentucky, Indiana, West Virginia, Alabama, Tennessee, Texas, Missouri and
Mississippi.

MARUTI SUZUKI MOTORS

Formerly known as MarutiUdyog Limited, Maruti Suzuki India Limited (MSIL) has come to be
synonymous with India, like no other. The brand is to India’s automobile industry as haute
couture is to fashion for Maruti cars wouldn’t command 44.9 per cent of the market share
without some ground to its supremacy. Commonly referred to as just Maruti, the Japanese auto
giant Suzuki Motor Corporation currently holds a 54.2 per cent share in the company. Leading
the nation’s automobile market for almost two and a half decades now, Maruti cars in India were
the first of its kind in India to be mass-produced. It also went on to become the first company in
India to sell more than a million cars. There is surprise that Maruti is given the credit for
bringing about the automobile revolution in our country.

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MarutiUdyog Limited was first established in 1981, though production did not start until 1983.
And the first Maruti car to roll out was the iconic Maruti 800. Given the fact that the only other
known cars available at that time were Hindustan Ambassador and Premier Padmini, Maruti cars
in India brought about the much-needed technological evolution. It also held the title of India’s
largest selling car until 2004. And with that, Maruti never looked back because it went on to sell
over six million cars since the first 800 rolled out. However, it wasn’t until 2007 that the top-
brass at the firm decided to rename it to Maruti Suzuki India limited. They have two
manufacturing facilities located in Gurgaon and Manesar, and together they have a production
capacity of over 1.5 million units per year. Maruti plans to expand the capacity to up to 1.75
million units by 2013.

Maruti Suzuki India Limited has an impressive portfolio with a total of 15 brands and over 150
variants of Maruti cars in India, ranging from the Maruti 800 to the latest Ertiga. The company
offers equally competitive services through its network of 933 dealerships, 2, 946 service
stations and 30 express service stations spread across the nation. Other than Maruti cars, the
company also offers a wide range of services to enhance their customers ‘experience via Maruti
Insurance, Maruti Finance, MarutiTrueValue, and Maruti Driving School among others.
Also, Maruti does not believe in limiting its presence within our national boundaries, and hence,

INTRODUCTION OF THE PROJECT

Objective of the Study

• To know market position of Tata motors, Marta Suzuki &Toyota motors vehicle in the
market.
• To know consumer behavior for purchase of two wheeler vehicle or four wheeler.
• To identify the factor which influences on consumer decision?
• To classify which types of customers visiting of Dealers with reference to age, gender,
income
• To know which medium play important role for purchasing bike, cars etc.
• To study who is the decision make in purchasing bike, cars etc?
• To study whether customers are satisfied with staff and services or not?

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 • Identifying possible areas of Improvement.

Scope of the study

• The research measures the experiences of customers.

• Defines and analyses the experiences based on key deliverables.

• Gains Customer expectations.

Need of the study

• Increasing competition, ever growing market, easy availability of the finances and
increasing population of young executives, with huge disposable incomes, over the past
few years has substantially increased the sales in the automobile industry. Also, the
competition among the dealers of the products has increased with each trying to
maximize their customer base. This makes it imperative for the dealers to provide the
best of the services and exceed the customer expectations to achieve customer delight and
loyalty.

Consumer buying behavior

Consumer behavior is the study of individuals, groups, or organizations and the processes they use to select,
secure, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes
have on the consumer and society.

Importance: consumer behavior holds a great important in marketing field because if look
over the modern philosophy of marketing in that CUSTOMER is treated as the KING, his needs
and wants are being studied for making any product, and above that its always been seen while
looking for opportunities for a product development that which product is brought most and what
are the factors that result in purchase of a product.
We can easy understand its importance if we look around our environment. Consumer behavior
is made up of two words consumer and behavior. Consumer is the person who consumes the
product, he may or may not be a buyer and behavior means the aggregate of all the responses
made by an organism in any situation. So consumer behavior means the aggregate of response
made by the consumer. It makes us know the reasons behind the purchase of a product, and

16
about the various feelings of the customer that are being attached with the purchase of the
product.
Hence we can say that it’s very importance to study the behavior of your consumers whom you
are going to serve through your product

FACTORS INFLUENCING CONSUMER BUYING PROCESS

CULTURE:

• Social Class
• Elite /Rich
• Upper Class
• Middle Class
• Lower Middle
SOCIAL:

• Roles and status

Family Decision Making:

• The information provider

• The influencer
• The decision maker
• The consumer

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Consumer Market

Consists of all the individuals and households who buy or acquire goods and services for
personal consumption..

Consumer Buying Decision Process

Problem Recognition: Problem recognition occurs when a buyer becomes aware of a

difference between a desired state and an actual condition

• Problem recognition, called need recognition by some, is the point where a potential
buyer determines that they have an unfulfilled need want or desire

• The recognition may result from internal stimuli (e.g. hunger, tired, the need for
additional help, etc.)

• The recognition may result from external stimuli (e.g. an external requirement, an ad, a
suggestion from a someone, the creation of a new position, the retirement of a key
individual)

• The recognition may result from a combination of stimuli.

Information Search: If the potential consumer continues beyond the problem recognition
stage, they will begin an information search

• Information search is the stage in the buyer decision process in which the consumer is
aroused to search for more information (Kotler and Armstrong). The consumer is
engaged in problem solving behavior.

• The information search stage is the stage where the organization seeks candidates for a
position.

• In the information search stage candidates will be identified through various efforts to
produce applications, resumes may be collected, references may be checked, credit
histories may be reviewed, and candidates may be interviewed.

• Internal versus external search

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 • Internal Search - Information search in which buyers search their memories for
information about products that might solve their problem. (Pride and Ferrell). These may
include internal job listings, human resources, internal promotions, etc.

• External Search - An information search in which buyers seek information from outside
sources. (Pride and Ferrell) These may include advertisements, campus recruiting, use of
headhunters, etc

Evaluation of Alternatives: A successful information search yields a group of brands

(products) that a buyer views as possible alternatives.

• This is the stage in the buyer decision process in which the consumer uses information to
evaluate alternative brands in the choice set.

• A consideration set is a group of brands that a buyer views as alternatives for

possible purchase.
• Development of Evaluation Criteria

• Evaluation criteria are objective and subjective characteristics that are important to the
buyer.

• This stage will often include the development of specific screening criteria.

• All applicants and application materials are subjected to a screening in an effort to

determine the extent to which any given candidate will meet the organization's objective

Purchase: In this stage the consumer chooses the product or brand to be bought .

• This is the point where an offer is extended to one or more candidates

• Two factors can come between the purchase intention and the purchase decision. (Kotler
and Armstrong)

• Attitudes of others

• Unexpected situational factors

• Marketers can influence the purchase decision

Post purchase Evaluation: The marketer's job does not end when the product is bought.

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 • After the purchase, buyers undergo an evaluation of the purchase decision. Does the
product meet expectations with regard to performance?

• Post purchase behavior refers to all behavior, positive and negative, that is generated
from the purchase

• The outcome of the evaluation is either satisfaction or dissatisfaction. Marketer's aim is

typically beyond mere satisfaction and meeting expectations.

CUSTOMER SATSIFACTION:
Customer satisfaction is the overall essence of the impression about the supplier by the
customers. This impression which a customer makes regarding supplier is the sum total of all the
process he goes through, right from communicating supplier before doing any marketing to post
delivery options and services and managing queries or complaints post delivery. During this
process the customer comes across working environment of various departments and the type of
strategies involved in the organization. This helps the customer to make strong opinion about the
supplier which finally results in satisfaction or dissatisfaction.

• The Customer is the King.

• Quality is what customer wants.

• TQM’s purpose is meeting customer expectations.

Importance: Successful business owners and managers quickly realize that keeping customers
costs less that finding new ones. If certain practices drive customers away, a business repeatedly
spends time and money on advertising and other efforts to recruit customers. These business
owners know that weaknesses in the production or delivery of goods lead to distressed
customers. They use online surveys to collect feedback from customers as tools for improvement
using customer satisfaction surveys.

Studies show satisfied clients tend to buy products more often and develop loyalty to a particular
brand. They often spread the word by recommending products and services to friends and family
as an informal referral process. Customer satisfaction surveys give firms specific information
about positive and negative perceptions, which could improve marketing or sales efforts

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Customer perception of Quality
• Quality is what customer perceives to be.

• customer needs goes on changes

• Quality level needs are to be improved accordingly.

Six customer perceptions.

1. Performance

• Fitness for use

• Product/ service is ready for use.

• Availability

• Reliability

• Maintainability

2. Features

• Secondary character

• Extra facilities

3. Service

• Provide the service at right time, even though the customer doesn’t complaint.

4. Warranty

• Represents a promise of a quality product.

• Force the org to focus on customer needs.

• Forces the org to correct the action system.

• It attracts and build the market

5. Price

• Nowadays customer is ready to give high price towards Quality.

• Expects to get good product in lower price.

• Customer’s perception of value is continuously changing.

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 • To succeed the org should identify, verify the perception of value.

6. Reputation

• Customer wills to buy product from a known company.

• Reputation brings market to the Org.

• So org should strive for customer for life.

CUSTOMER COMPLAINTS

• Satisfied customer contributes 2.6 times as a satisfied customer.

• Satisfied customer contributes 17 times as a dissatisfied customer.

• Dissatisfied customer decreases 1.8 times of a totally satisfied customer.

• Dissatisfied customer should be reduced. Therefore feedback and suggestions should be

monitored.

WHY CUSTOMER FEEDBACK

• Discover customer dissatisfaction

• Identify customer needs

• Discover priorities of Quality

• Compare performance with the competition.

• Determine opportunities for improvement

TOOLS FOR COLLECTING CUSTOMER COMPLAINTS

• Comment cards - attached to warranty card.

• Customer Questionnaire - survey –mail/e-mail/ telephone.

• Focus groups – customer meeting/ discussions.

• Toll free telephone numbers

• Customer visit.

• Employee feedback.

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 Literature review
1. The effect of cultural and psychological characteristics on the purchase behavior and
satisfaction of electric vehicles: A comparative study of US and China. A research
done by - Mee Ryoung Song , Wujin Chu States( ) that -
In the United States, auto ownership penetration is close to 100%, but China still remains
at 15%. While the US has a competitive advantage over China in ICEVs, China is ahead
in EVs, at least in terms of volume. Further, motorization is more advanced in the United
States, but Chinese consumers have greater prior exposure to EVs through taxis and buses.
The automotive environment is different between the two countries, yet they are the two
leading auto-producing nations. Therefore, it is interesting to see how the psychological
characteristics of EV consumers, EV usage patterns, and satisfaction levels differ in the
two countries. The study showed that US respondents were more likely to buy larger EVs
and purchase EVs as their second cars than Chinese respondents. In the usage pattern, US
respondents used their EVs more and traveled more miles, especially in highway driving,
compared to the Chinese respondents. On the other hand, Chinese respondents had more
experience in renting and test driving EVs before purchasing them. In terms of battery
charging, US respondents charged less frequently, but a single charge time was longer. US
respondents also made longer trips.
2. Customer Satisfaction in Automobile Industry – Buyers perspective On Car
Purchasing – A research done by (6th June 2012) NATARAJ S, DR. N.NAGARAJA.
Effective Website management online and B2C web strategies will be vitally important,
as the online landscape evolves rapidly with the emergence of powerful consumer-to-
consumer tools like blogs, discussion forums, social networking sites and virtual worlds.
Automotive companies will need to stay focused on evolving consumer attitudes online.
As with the web, the issues are dynamic and it is still too early to determine their ultimate
impact on the automotive industry. Manufacturer/dealer collaboration in the form of
effective retail integration and integrated lead management will become more important
than ever to satisfy increasingly sophisticated and demanding consumers and to retain
their online loyalty. Companies will need to establish and maintain a true two-way
dialogue with individual consumers through personalized communication to enhance
online customer satisfaction

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3. Factors Influencing consumers Car Purchasing Decesion in Indian Automobile
Industry - A research done by - Dr. T. Dhanabalan Adjunct (Faculty, Department of
Logistics Management, Alagappa University, Karaikudi) Dr. K. Subha Adjunct (Faculty,
Department of Logistics Management, Alagappa University) Karaikudi R. Shanthi
(Assistant Professor, Department of Business Administration, Alagappa University
College of Arts and Science), Paramakudi A. Sathish (Researcher Scholar, Alagappa
Institute of Management, Alagappa University, Karaikudi )
Thus the research contributes the literature with manifold effects of antecedents of
customer purchase decision. It was understood from the results of the research that the
targeted research variable customer perceived value was positively influenced by brand,
price, quality, design, utility, technical consideration. Further, both customer perceived
value and customer purchase decision is having a statistically significant relationship with
each other. The results exhibit that brand, price, quality, design, utility, technical
consideration are playing an important role in influencing customer perceived value and
encourage them to have purchase decision over the particular car.
4. Study on Consumer Buying Behavior During Purchase of a car - Saikat Banerjee –
From the survey, it has been seen that majority of the respondents bought existing car
from mini or compact hatchback segment . For example, 29% of respondents own mini
cars, 42% respondents own compact hatchback and only 18% of them own three box
sedans. Ownership age of existing car varies between one to five years. Majority of the
respondents (near about 64%) would like to buy a second car after four/ five years of
existing car ownership. Another interesting finding is that near about 53% of them are
satisfied with their existing car and 29% of them are highly satisfied with their existing
car. Respondents are asked to indicate their choice about second car segment. Out of them
40% would like to buy their new car from sedan segment and 25% would like to elevate to
SUV/MPV segment. Near about 30% still would like to buy it from compact segment and
a fraction would like to be a proud owner of a luxury car.

24
 CHAPTER 2

RESEARCH OBJECTIVE
&
METHODOLOGY

25
 RESEARCH OBJECTIVE OF THE STUDY

Primary Objective: - To know the buyers attitude towards Maruti Suzuki, Toyota
motors & Tata motors& after sales based upon style, power, driving comfort, and after
sales service.

Secondary Objective: - To find out the attitude of customer towards products of

Maruti, Tata, and Toyota etc

RESEARCH METHODOLOGY

Research methodology is a collective term for the structured process of conducting research.
There are many different methodologies used in various types of research and the term is usually
considered to include research design, data gathering and data analysis

Research methodologies can be quantitative (for example, measuring the number of times
someone does something under certain conditions) or qualitative (for example, asking people
how they feel about a certain situation).

TYPES OF RESEARCH DESIGN

There are certain types of research which can be classified according to their very purpose as
well as by the research strategy used. A research can be classified into the following categories:

• Exploratory research
• Conclusive research (Descriptive research )
• Explanatory research

1. Exploratory research:

Exploratory research is an initial research which explores the possibility of obtaining as

many relationships as possible between different variables without knowing their end-use
applications. Here, a general study will be conducted without having any specific objectives.

26
2. Conclusive research (Descriptive research):- In this type of research, problem of a
research is formulated and specific objectives are established. This type of research may be a
result of exploratory research. At the, the research draws definite and concrete conclusion(s) for
implementation.

3. Explanatory research: - Here, in this type of research, the emphasis is given on

studying a situation or a problem in order to explain the relationship between two or more than
two particular variables. In short, situation is there, and you are just expected to explain the
situation in order to reveal the solutions.

DATA COLLECTION

Sources of data collection

Data refers to information or facts however it also includes descriptive facts, non numerical
information, qualitative and quantitative information

Data could be broadly classified as

• Primary data

• Secondary data

 Primary data

Primary data is the data collected for the first time through field survey. It is collected with a set
of objectives to assess the current status of any variable studied. Primary data reveals the cross-
section picture of the object under scruting. Therefore primary data are those collected by the
investigator (or researcher) himself for the first time and thus they are original in character.

Advantages of primary data

• They are the first hand information.

• The data collected are reliable as they are collected by te researcher for himself.

• The primary data are useful for knowing opinion, qualities and attitudes of respondents.

27
  Secondary data

Secondary data refers to the information or facts already collected. It is collected with objective
of understanding the part status of any variable or the data collected and reported by some source
is accessed and used for the objective of a study.

Advantages of secondary data

• The information can be collected by incurring least cost.

• The time required for obtaining the information is very less.

• Most of the secondary data are those published by big institutions. So they contain large
quantity of information

Sources of information:

Primary data

• Questionnaire or schedule

• Observation

• Feedback form

Secondary data

• Book

• Periodicals or journals

• Research thesis and dissertations

• Footnotes

• Encyclopedias

• Statistical data sources

• Websites/blogs

28
STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in this project are:

• Pie Charts
• Tables

Sampling Design
1. Sampling Area:

2. Sampling Population:

In order to take a reasonable sample size and not to disturb the functioning of the organization, a
sample size of reasonable strength of the Population has been taken in order to arrive at the
buying behavior& level of satisfaction of customers

Accordingly, 100 samples have been selected at random from all the areas of Delhi and feedback
forms (questionnaire) have been obtained. The data has been analyzed in order to arrive buying
behavior& level of satisfaction of population using vehicles of Maruti Suzuki, Toyota Motors &
Tata Motors

3. Sampling Unit:
The technique of Random Sampling has been used in the analysis of the data. Random
sampling from a finite population refers to that method of sample selection, which gives each
possible sample combination an equal probability of being picked up and each item in the entire
population to have an equal chance of being included in the sample. This sampling is without
replacement, i.e. once an item is selected for the sample, it cannot appear in the sample again.

4. Sampling Technique
Simple random sampling. Every member of the populat ion has an equal chance of
select ion. I have used simple random sampling for our project

No. of Questions: Total no. of questions is 22

29
Types of Questions: Open & closed end questions.

Sampling instrument - Questionnaire

No of questions: 22

Types of Questions : Multiple type questions

30
 CHAPTER -3

DATA ANALYSIS
&
INTERPRETION

31
Q1. Gender

47% of the respondents were Female and 53% were Male.

Q2.Qualification

Talking about the Educational qualification of the respondents 43%

were graduates, 10% were 10 th pass, and the rest were post graduates
and 12th pass.

32
Q3. Qualification

61% were students, 14 % were into business and rest were

in service.

Q4. Annual income

Among respondents surveyed, 43% of the respondents have their

income level between 0lakh- 5lakhs, 4% have their income between
5lakhs-10lakhs & 6% have their income between 10lakh – 15lakh &
7% have their income above 15 lakh.

33
Q5. Do you own car?

Out of 100 respondents surveyed, 64% of the respondents own a car

and 36% don’t.

Q6. What elements do you think are most important when you are
buying cars?

Among respondents surveyed, 33% of the respondents

consider Safety and reliability as an important factor while
buying a car, 17% maintenance cost, 26% brand , 23% price
and the rest power.

34
Q7. What type of car would you prefer?

Out of 100 respondents 4% prefer sedan , 8% prefer hatchback , 9%

prefer SUV 33% prefer sedan and the rest MUV. Sedan is most
preferred among all.

Q8. Purpose of buying the car?

Most of the respondents find general use as the reason

for buying a car that is 41% , 3% for travelling, 7% for
fun weekend.
35
Q9. Fuel Preference?

Petrol is most preferred by the respondents, 40% chose petrol , 38%

diesel and the rest % chose Cng as preferred fuel.

Q10. Preferred car brands?

Among 100 respondents, 17% preferred Hyundai , 14%

Toyota, 8% maruti Suzuki, 11% tata and kia and

Maruti was most preferred among all

36
Q11. What influence when you buy or want to buy a car?

47% of the respondents consider friends and family a factor to be

influence by, 16% voted for brand celebrity and 37% make their
own choice they are not influenced by and factor above.

Q12. To what extent do you discuss with your family and

friends about purchasing a Car?

34% discuss with their family and friends regularly before purchasing a car,
3% never , 38% sometime and the rest often

37
 Q13. Do you buy to prefer a new or second hand car?

33% prefer to buy a new car and the rest that is 67% prefer to buy a
second hand car. Second hand car is mostly preferred.

Q14. How much you would spend for purchasing your car?

When asked about the amount they would like to spend for
purchasing the car , 58% said between 10,00,000 – 0,00,000 ,
30% said between 5,00,000 -10,00,000 and the restsaid above
10,00,000.

38
 Q15.To what extent, do you care other people see what car
you are using when you go out?

When asked about how much they care about other people see what car they
are using , 37% said they do not care, 14% said they care, 8% remain neutral,
7% said they strongly care and the rest said they strongly do not care.

Q16. To what Extent do you see the car only as Transport tool?

27% see car as a transport tool only, 24% strongly agree on this ,
23% stays neutral and 21% disagree on this.

39
 Q17. What kind of payment would you prefer to Adapt?

Mostly that is 50% of the respondents prefer to pay in installments , 23%

prefer to take a loan , and the rest opt for cash account and other payment
options.

Q18. Rate your existing car on the basis of its safety features

When asked about to give rating to their cars on its safety features most on
them answered 4 out of 5 which means they are well satisfied with their cars.

40
Q19. To what extent, do you think purchasing a car can
raise your social status?

Most of the respondents stayed neutral when asked about whether a car can
raise their social status or no.

41
 FINDINGS
1. Majority of the respondents is, 53% have their income level between 0 – 5, 00,000 and
most of them are students or doing jobs.
2. 33% of the respondents consider safety and reliability as the most important factor while
buying a car and exactly 33% said they would prefer a sedan.
3. 41% of the respondents think general use as the purpose for buying a car. 47% of the
respondents expressed that they were influenced by their friend to buy the car. Rests of
customer are driver by profession and this word of mouth will create more awareness
about vehicle.
4. Majority of the customer that is, 33% expressed that they are influenced by safety and
reliability of the car while buying the car and 26% were influenced by brand of the car.
Majority of the customer expressed Maintenance cost, price, power, as ‘most important’
while buying car. These are the basic attribute of a vehicle and most of the customers
look their feature while buying car.
5. When asked about the amount they would like to spend for purchasing the car , 58%
said between 10,00,000 – 20,00,000 ,
30% said between 5, 00,000 -10, 00,000 and the rest said above 10, 00,000.
6. When asked about the amount they would like to spend for purchasing the car , 58%
said between 10,00,000 – 0,00,000 ,
7. 30% said between 5, 00,000 -10, 00,000 and the rest said above 10, 00,000.
8. Out of 100 respondents 20% rated their previous car 4 out of 5 when asked about safety
features of their previous car their safety were ‘satisfied’ 36% were neither satisfied nor
dissatisfied & 24% dissatisfied on the speed of the vehicle whereas most of them
expressed satisfied on the reliability.
9. 64% prefer to buy a second hand car.
10. When asked about to what extent do they think purchasing a car can raise your social
status, most that is 26.7% answered neutral which means most of them are not concerned
about what society thinks about their car.

42
 LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research viz,

1. Time Constraints:
The time stipulated for the project to be completed is less and thus there are chances that some
information might have been left out, however due care is taken to include all the relevant
information needed.

2. Sample size:
Due to time constraints the sample size was relatively small and would definitely have been more
representative if I had collected information from more respondents.

3. Accuracy:
It is difficult to know if all the respondents gave accurate information; some respondents tend to
give misleading information.

4It was difficult to find respondents as they were busy in their schedule, and collection of data
was very difficult. Therefore, the study had to be carried out based on the availability of
respondents

43
 CONCLUSION

The automobile sector plays a vital role in the economy of India. Due to its link with other
segments of the economy, this sector improves the country's industrial growth. The industry
has been growing in double the pace than the last decade. However, due to heavy
competition, this sector needs more consolidations and restructuring effort.

The present paper measures customer satisfaction towards select automobile industries in
India. The data collected from 100 respondents through convenient sampling method

Most of the respondents in the present study belong to rural. The important age group among
the respondents is 18 to 30 years. The important gender among the respondents is men. The
important level of education among the respondents is under-graduation and post-graduation.
Majority of the respondents are Students.

Regarding customer satisfaction towards their specific automobiles the following

dimensions such as Design and appearance, Mileage, Safety, Neat Appearance, Price and
Speed are important. After sales service and Trendy are not significant but they will always
add a little to the predictions of Customer satisfaction.

44
 Suggestions and recommendations

1. Majority of the respondents were still unaware about different versions of cars which are
available in the market. Therefore I suggest the company personals should take initiative to
create awareness about these.

2. According to the survey, most of the car buyers took at price of the vehicle. Tata, Toyota
&Maruti has always kept the best, reasonable price for his products and also has been successful
in it. These companies must set even better price for his products in the feature.

3. Most 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.

4.Tata Motors, Toyota motors &Maruti Suzuki and its dealer have to consider not only market
performance of its cars but also of its competitor’s cars and at the same time keeps the track of
changing attitude of the customer in changed situation.

5. Schemes & offers given by the company has or great influenced on the buying behavior of the
customer. Tata Motors, Toyota motors &Maruti Suzuki & its dealers must give more attractive
offers & schemes than their competitors. There are few customers who are not influenced by
offers & schemes, so to protect their interest; they should come up with new feature, design &
technology and services after sales etc.

45
 BIBLIOGRAPHY

BOOKS:

Principles of marketing: KOTLER ARMSTRONG.

Marketing Management: PHILIP KOTLER.

(Analysis, Planning Implementation and Control)

Services Marketing : TATA Mc GRAW HILL.

Marketing Research : G.C.BERI.

Research Methodology: KOTHARI. C.R.

WEBSITES:

www.marutisuzuki.com

www.tatamotors.com

www.toyotamotors.com

www.finalyearprojects.com

www.wikipedia.com

46
 Annexure
Q1. Name *

q2. Gender *
 Male
 Female

Q3. Age *
 15 - 17
 18 - 30
 30 and above

Q4. Qualification *
 10th pass
 12th pass
 Graduate
 Post graduate
 Other:

Q5. Occupation *
 Student
 Service
 Business
 Other:

Q6. What is your Annual income *

 0 - 5,00,000
 5,00,001 - 10,00,000
 10,00,001 - 15,00,000
47
  15,00,001 and above

Q7. Do you own a car? *

 Yes
 No

Q8. what elements do you think are most

important when you are buying cars?
 Safety and Reliability
 Price
 Brand
 Maintenance cost
 Other:

Q9. What type of car would you Prefer? *

 Sedan
 SUV
 Crossover
 MUV
 Hatchback
 Other:

Q10. Purpose of buying the car? *

 Travelling to office
 For general use
 Fun weekend
 Other:

48
Q11. Fuel Preference? *
 Petrol
 CNG
 Diesel

Q12. Preferred Car brands *

 Kia
 Maruti Suzuki
 Toyota
 Ford
 Hyundai
 Tata
 Other:


Q13. What influence when you buy or want to

buy a car? *
 Make your own choice
 Friends/Family
 Brand Representative (Celebrity)
 Other:

Q14. To what extent do you discuss with your

family and friends about purchasing a Car? *
 Sometimes
 Regularly
 Never
 Often

49
Q15. Do you buy to prefer a new or second hand
car? *
 New
 Second Hand

Q16. Do you see car as a fashion item? *

 Yes
 No
 Maybe

Q17. How much you would spend for Purchasing

your car? *
 Between 5,00,000 - 10,00,000
 Between 10,00,000 - 20,00,000
 Above 20,00,000

Q18. To what extent, do you care other people

see what car you are using when you go out? *
 Strongly do not care
 Do not care
 Neutral
 Care
 Strongly care

Q19. To what Extent do you see the car only as

Transport tool? *
 Strongly Agree
 Agree

50
  Neutral
 Disagree
 Strongly Disagree

Q20. What kind of payment would you prefer to

Adapt? *
 Installment
 Loan
 Cash Account
 Other

Q21.Rate your existing car on the basis of its safety

features *

 1 Highly satisfied
 2 Satisfied
 3 Neutral
 4 Dissatisfied
 5 Highly dissatisfied

Q22. To what extent, do you think purchasing a car

can raise your social status?
 Strongly do not care
 Do not care
 Neutral
 Care
 Strongly care

51