415 CAR MARKET AND BUYING BEHAVIOR- A STUDY OF CONSUMER PERCEPTION(2)

DissertationOn

Car Market and Buying Behavior- A study ofConsumer Perception

Towards The Partial Fulfillment ofPost Graduate Diploma in Management

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Table of Content

1. Executive Summary………………………………………06

2. Introduction………………………………………………..08

3. Overview of the Auto segment…………………………14

4. Review of Literature………………………………………20

5. Objective of the study……………………………………29

6. Scope of the study………………………………………..30

7. Research methodology………………………………….32

8. Limitation of the study…………………………………..39

9. Car’s Profile………………………………………………..40

10. Finding and Analysis…………………………………….51

11. Cross Tabulation………………………………………….68

12. Conclusion…………………………………………………71

13. Scope of the Study……………………………………….74

14. Annexure…………………………………………………...75

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Executive Summary

The automobile industry today is the most lucrative

industry. Due to the increase in disposable income in both

rural and urban sector and easy finance being provided by

all the financial institutes, the passenger car sales have

increased at the rate of 38% per annum in June 2005-06 over

the corresponding period in the pervious year. Further

competition is heating up in the sector with a host of new

players coming in and other like Porsche, Bentley, Audi, and

BMW all set to venture in the Indian markets. One factor

that could help the companies in the marketing of their

product is by knowing and creating a personality for their

brands.

This report attempts to answer some of the questions

regarding brand personality of selected cars in India by

conducting the market research. This report is categorized

into parts, deals with introduction to brand personality,

companies selected, product and the industry.

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The automobile industry today is the most lucrative

industry. Due to the increase in disposable income in both

rural and urban sector and easy finance being provided by

all the financial institutes, the passenger car sales have

increased at the rate of 25% per annum in June 2005-06 over

the corresponding period in the previous year. Further

competition is heating up in the sector with a host of new

players coming in and others like Porches, Bentley, Audi,

and BMW all set to venture in Indian markets. One factor

that could help the companies in the marketing of their

products is buying Behavior of the consumers. The Buying

Behavior of the customers can be studied by knowing their

perceptions about the cars in the market and about the

possible entrants in the market. One such technique is by

knowing and creating a personality for the brands.

This personality sketching will help in knowing what a

customer (or a potential customer) thinks about a given

brand of car and what are the possible factors guiding a

possible purchase. Similarly, the idea of measuring the

customer satisfaction will serve the same purpose of

determining the customer perception. Thus, by measuring the”

willingness of existing users of a car to recommend it to

others” will help the car manufacturers to chalk out the

entire Customer Buying Behavior.

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The reports shall attempt to answer some of the

questions regarding brand personality of selected cars in

India by conducting a market research. The market research

will be helpful for the new car entrant companies in India

to find out the possible gaps between the customer

expectations and the present market offerings. This way

these companies will be able to find their share in the

ever-expanding Indian market pie.

The research will track the customer satisfaction in the

following two layers:

Product related Parameters

Dealers related parameters

The customer satisfaction index will be calculated for the

car brands taken into consideration.

It will be mainly a primary research and the information

will be gathered from both primary and secondary research.

The study will analyze the applicability of existing

research concepts, theories, and tools for evaluating

consumer satisfaction.

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INTRODUCTION

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INTRODUCTION

It is true fact that if you are satisfied you recommended to

others. Word of mouth and customer satisfaction play a very

important role in determining market perception about an

automobile. It is the market perception that determines the

success of a company and so it is very important for the car

manufacturers to measure the “willingness of existing users

of a product to recommend it to others”. The same is a lot

of interest to customers as well for it helps them make the

purchase decision.

A car is one of the most significant purchases that an

Indian household makes and this project addresses the most

important question that perplexes car manufacturers:

“What makes the perfect car that influence will willfully

purchase?”

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The project highlights the factors that influence the buying

decision of a consumer.

The factor under consideration would be:

Price

Income of the consumer

Features in the car

Safety standard

Warranty scheme

Finance facility

Is an Indian consumer ready for more? Which is the driving

motive behind the effective demand of the car? How the

coming of new models like swift does is going to effect the

buying decision of consumer and especially the Tata 1 lakh

car.

In other words, from the spread of choices offered by

various manufacturers under various segments, of which one

the customer will finally turn the ignition on and drive.

Customer satisfaction index: some of the most advance

thinking in the business world recognizes that customer

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relationships are best treated as assets, and that

methodical analysis of these relationships can provide a

road map for improving them

“If you cannot measure it, you cannot improve it.” – Lord

William Thomson Kelvin (1824-1907)

Clause 8.2.1 in ISO9000: 2000 states:

“As one of the measurements of the performance of the

quality management system, the organizations shall monitor

information relating to customer perception as to whether

the organization has met customer requirements. The method

for obtaining and using this information shall be

determined”

The requirement has been there in the QS9000 standard clause

4.1.6 which says:

“… Trends in customer satisfaction and key indicators of

customer dissatisfaction shall be documented and supported

by objective information. These trends shall be compared to

those of competitors, or appropriate benchmarks, and

reviewed by senior management.”

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There is obviously a strong link between customer

satisfaction and customer retention. Customer’s perception

of service and quality of product will determine the success

of the product or service in the market.

With better understanding of customer’s perceptions,

companies can determine the actions required to meet the

customer’s needs. They can identify their own strengths and

weaknesses, where they stand in comparison to their

competitors, chart out the path future progress and

improvement. Customer satisfaction measurement helps to

promote an increased focus on customer outcomes and

stimulate improvements in the work practices and processes

used within the company.

Customer expectations are the customer-defined attributes of

your product or service. We cannot create satisfaction just

by meeting customer’s requirements fully because these have

to be met in any case. However falling short is certain to

create dissatisfaction.

Major attributes of customer satisfaction can be summarized

as:

Product quality

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Product packaging

Keeping delivery commitments

Price

Responsiveness and ability to resolve complaints and

reject reports

Overall communication, accessibility and attitudes

We cannot begin to address the customer satisfaction issue

we define the parameters and measures clearly.

Values

Benefits

Features - Attributes

+ -

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The customer satisfaction index represents the overall

satisfaction level of that customer as one number, usually

as a percentage

The buying process involves the following steps:

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ProblemRecognition

Information search

Evaluation

Post PurchaseDissonance

BuyDecisionSatisfaction =

BrandAcceptance

Dissatisfaction= BrandRejection

“The fact that word of mouth sales are a big deal in this

industry has also helped. Industry players and market

surveys reveal that 20-30 percent of sales are through word

of mouth”.

For the purpose of the project has undergone

through

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Surveying the relevant consumer base through exhaustive

questionnaire.

Understand the elements underplaying in each segment

Deducing A analytical overview through different

statistical methods

Recommendation comes from satisfaction and satisfactioncomes from

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Service Quality

Relationship Quality

Product Quality

OVERVIEW OF THE AUTO SEGMENT

Indians have emerged as avid car enthusiasts sporting their

prized possessions as status symbols and speed machines.

Foreign car companies have discovered the Indian consumer as

well as the R & D potential in the Indian technical

fraternity and are setting up manufacturing plants right and

left across the country at lower costs. The Indian

automobile industry is currently experiencing an

unprecedented boom in demand for all types of vehicles. This

boom has been triggered primarily by two factors:

(1) increase in disposable incomes and standards of living

of middle class Indian families estimated to be as many as

four million in number; and

(2) The Indian government's liberalization measures such as

relaxation of the foreign exchange and equity regulations,

reduction of tariffs on imports, and banking liberalization

that has fueled financing-driven purchases.

Industry observers predict that passenger

vehicle sales will triple in five years to about one

million, and as the market grows and customer's purchasing

abilities rise, there will be greater demand for higher-end

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models which currently constitute only a tiny fraction of

the market. These trends have encouraged many multinational

automakers from Japan, U. S. A., and Europe to enter the

Indian market mainly through joint ventures with Indian

firms.

India is increasingly becoming a global automotive hub both

for the vehicles and component industry. India is fast

integrating itself into the world economy and open to

international automotive companies, who are increasingly

investing in India.

The Indian automotive and component industry is looking to

increase the quality of production from existing levels, to

develop new products and to increase exports. In the long

run India is well set to become a key market for automotive

and component manufacturers in terms of local demand and as

a base for export.

Additionally, companies such as GM, Daimler Chrysler,

Toyota, Delphi and MICO/Bosch are utilizing India’s well

developed IT / software capabilities and have set up R&D

hubs here for their global operations

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Industry Size

The domestic Indian passenger car market (including utility

vehicles) totaled 900,000 units (with a CAGR of 10 per cent

over the past 4 years) while the exports were 130,000 million

units (with a registered CAGR of 68 per cent over the past 4

years) during financial year 2004

The Indian two-wheeler Industry is one of the largest in the

world, and is expected to maintain robust growth in the future

At the back of this phenomenal automotive growth is the

success of the Indian auto component industry. Presently a US$

6.7 billion industry, it is expected to almost treble in less

than eight years time to US$ 17 billion by 2012

India offers a distinct technological and cost-competitive

advantage, which global Original Equipment Manufacturers

(OEMs) and automotive suppliers are leveraging for both

manufacturing and research facilities. The passenger car

market is projected to grow at a CAGR of 12.3 per cent over

the next few years. Growth in the mid-size and premium car

segments is expected to outpace the overall market growth.

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Indian Automobile Industry

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Automobile Industry in India is still in its infancy but

growing rapidly. The opportunities in the automobile

industry in India are attracting big names with the big

purse and they are investing vigorously in infrastructure,

design and development, and marketing. Automobile industry

in India is today poised for the big leap.

 India is the 2nd largest two wheeler manufacturer

in the world

Second largest tractor manufacturer in the world

5th largest commercial manufacturer in the world

3rd largest car market in Asia, surpassing China in

the process

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Automobile industry Contributes 17% of the total indirect

taxes collected by the exchequer & is a driver of product

and process technologies, and has become a excellent

manufacturing base for global players, because of its

high machine tool capabilities

Extremely capable component industry

Most of the raw material locally produced

Low cost manufacturing base

Highly skilled manpower

Special capability in supplying large volumes

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Indian Automobile Manufacturers in India and Plant

Locations

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Domestic and Foreign Vehicle Manufacturers:

Passenger Vehicles

The main domestic manufacturers of passenger vehicles are as

follows:

Maruti Udyog

Tata / Telco

Mahindra / Mahindra

Hindustan Motors

Foreign competitors manufacturing locally including Hyundai,

Ford, General Motors, Honda, and Toyota.

Car demand has seen a turnaround since mid 2001 thanks to

heavy discounts and cheaper finance. A large number of new

models, both locally assembled and imported, have also

revitalized the market.

In terms of volumes:

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The A/B segments are where India’s strength and future

lies. The A/B segment accounts for over 65% of the

total passenger vehicles produced. Competition in this

segment is stiff with Maruti the market leader with

around 55% market share. New models from Telco

(Indica), Hyundai (Santro) and Fiat (Palio) however

are eroding Maruti’s long standing dominance in this

segment.

The mid / luxury range is developing with the

introduction of Ford (Ikon), Hyundai (Accent/Sonata)

and Skoda (Octavia), although the volumes are not

significant.

The UV segment remains sluggish with growth at just

over 1%. The clear market leader, Mahindra (44% market

share) posted increased sales of 9% in the first 3

quarters of 2002/03. Toyota and Telco domestic UV

business remains flat.

Commercial Vehicles

The main Indian companies in the Commercial Vehicle segment

are:

TATA Engineering and Locomotive Company (TELCO)

Ashok Leyland

Bajaj Tempo Ltd

Eicher Motors Ltd

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Swaraj Mazda

There is only one international company currently

manufacturing CVs in India, Volvo but again volumes are not

large. Other global players are active, although in

partnership with one of the domestic manufacturers E.g.:-

IVECO (manufacturing their range of trucks in association

with Ashok Leyland.

There has been a significant turn around in this segment

over the last 18 months with over 30% growth being seen in

terms of both production and sales.

This sector has received a huge boost with India’s massive

demand from the infrastructure sector (particularly roads),

cyclical fleet replacement by fleet owners and an upturn in

the cement and steel sectors.

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Automobile Manufacturers Market Share

Passenger Cars

LCV

0.604 Mn

0.083 Mn

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Maruti (JV of Suzuki), leading the market,

Tata and M&M are the key players

a) Followed by Hyundai and Tata, together hold close

to 75% of market

b) Daewoo stopped production, mainly due to financial

issues 2 years back

Review of Literature

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Brand Personality

A brand is “a set of expectation and association evoked from

a company or product. A brand is how your key constituents-

customers, employees, shareholders etc. experience what you

do.” Some brands are of such great importance to people,

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that we speak of them as a part of one’s life and identity,

being used to express one. Some would say that these brands

have their own personality, the brand personality, which can

be defined as “the set of human characteristics associated

with a given brand”. Thus, it includes such characteristics

as gender, age and socioeconomic class, as well as such

classic human personality is both distinctive and enduring.

Based on the premise that brand can have the personalities

in much the same way as humans, brand personality describe

brands in terms of human characteristics. Brand personality

is seen as valuable factor in increasing brand engagement

and brand attachment, in much the same way as people relate

and bid to other people. Much of the work in the area of

brand personality is based on translated theories of human

personality and using similar measures of personality

attributes and factors. Brand personality refers to the set

of human characteristics we associated with the brand. A

common way of determining this is to reply on the metaphor:

“If the brand was a person, what would he/she be like?” we

then list and group the traits to describe the brand as, for

example: caring, approachable and trustworthy. However,

there is a lot more we can do.

Because many people interact with brands as though they were

other people, it is important to understand what a brand

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personality consists of, and how its characteristics can be

used to affect the relationship between the brand and its

user. Knowing and understanding the brand personality gives

a good insight into this relationship, and into peoples’

attitudes towards the brand, and is also as important guide

to communicating the brand.

VALUES AND CHARACTERISTICSS OF BRAND PERSONALITY

People’s personalities are determined largely through the

value and beliefs they have, and other personality

characteristics they develop. An example of value or belief

is honesty.

Many people believe in being honest in everything they do

and say. An example of characteristic is confidence. This is

not a belief, but more of a behavior. There are, of course,

many value/beliefs and characteristic that a person may

have, but there are some that are particularly likeable. It

is these likeable values and characteristics that people are

inevitably attracted. Examples of these include

dependability, trustworthiness, honesty, reliability,

friendliness, caring, and fun-loving.

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There are about two hundred words that describe personality

characteristics, and these can be used for putting

personality into brands. To illustrate how people think in

personality terms when making judgments about brands, here

are the results of consumer research into how people feel

about tow companies. When asked question: “if these

companies are people, how would you describe them?” their

replies were:

Company A Company BSophisticated Easy goingArrogant ModestEfficient HelpfulSelf- centered CaringDistant ApproachableDisinterested Interested

These two companies are actually competitors in a service

industry. If you were asked of these two companies you would

like to be your fiends, you would probably choose company B,

as did 95% of other respondents. It is not surprising that

the service level of company B can be better experience for

customers than that of company A. it is also easy to

conclude that if customers consistently experience these

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differences between the two companies, then the brand image

of company B will be much better than company A.

A further point of interest arising out of this research is

that people tend to prefer brands that fit their self-

concept. Everyone has views about themselves and how they

would like to be seen by others. And they tend to like

personalities that are similar to theirs, or to those whom

they admire. Thus, creating brands with personalities

similar to those of a certain group of consumers will be an

effective strategy. The closer the brand personality is to

the consumer personality (or one which they admire or aspire

to), the greater will be the willingness to buy the brand

and deeper the brand loyalty.

The Creation of Brand Personality

Brand personality traits are formed and influenced by any

direct or indirect contact that the consumer has with a

brand. A brand, unlike a person, cannot think, feel or act.

A brand has no objective existence at all; it is simply a

collection of perception on the mind of the consumer.

Consumers accept the marketing actions to humanize brands.

One explanation fort this can be found in the theories of

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animism, which suggest that there exists need by people to

anthropomorphize objects in order to facilitate interaction

with the nonmaterial world. Anthropomorphize occurs when

human qualities are attributed to non human objects, e.g.

brands. Consumers easily assign personality quality to

inanimate objects like brands in thinking about the brands

as if they are human characters.

In a direct way, personality traits are associated with a

brand by the people associated to that brand. One direct way

to form and influence brand personality is user imaginary.

User imaginary is defined as the set of human

characteristics associated with the typical or stereotype

user of the brand. Associations with the company employees

or CEO and the brand’s product endorsers are also direct

ways by which brand personality traits are formed and

influenced. The personality traits that of the people

associated with a brand are transferred directly to the

brand. The theories of animism describe another process

mechanism that directly explains the specific ways in which

the vitality of the brand can be realized (Fournier, 2004).

Spokespersons that are used in advertising can have

personalities that fit those of the brand they advertise.

Over time, the personalities of the spokesperson are

transmitted to the brand. The brand-person associations can

also have a more personal nature. Brands can be associated

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with person who use or used that particular brand, for

example a close friend or a family member. Also, brands

received as gifts can also be associated with the person

from whom the gift was received. These person associations

serve to animate the brand as a vital in the minds of the

consumers. Obviously, this aspect is much less under the

control of the marketers.

Indirectly, the brand personality is created by all the

elements of the marketing mix. Betra, Lehman and Singh

suggest that the personality of a brand is created over

time, by the entire marketing mix of the brand - “its price

(high or low, odd or even), retail store location (imaginary

associations), product formulation (ingredients, benefits),

and product form (solid/liquid. Etc.), packaging details

(color, size, material, shape), symbol; used an all phases

of the brand communication, sales promotion, and media

advertising”.

Another form of animism explains how brand personality is

created in a more indirect way. This form of animism

involves complete anthropomorphization of the brand object

itself. Human qualities of emotionality and thought are

transferred to the brand. This is achieved with the help of

the marketing actions, especially advertising. For example,

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the brand character of M&M in the M&M commercials has the

capacity to laugh and joke.

One of the advantage of the brand personality is that based

on their distinctive personalities, consumers are able to

differentiate between brands. Another advantage is that the

consumer can interpret the brand’s image in such a way that

it is personally more meaningful. Brand personality

encourages more active processing on the part of the

consumer. Thus, the consumer put more efforts in creating

and using the brand personality. A further advantage of

brand personality is that life is given to a brand. By

vitalizing a brand, another perspective of brand personality

can be examined, namely the role of a brand as relationship

partner in a consumer-brand relationship. Next we will

concentrate on these consumer-brand relationships.

Whether the brand is a product or a company, the company has

to decide what personality traits the brand is to have.

There are various ways of creating brand personality. One

way is to match the brand personality as closely as possible

to that of consumers or to the personality that they like.

The process will be

Define the target audience

Find out what they need, want and like

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Build a consumer personality profile

Create the product personality to match that profile

This type of approach is favored by companies such as Levi

Strauss, who research their target audience fastidiously.

For Levis the results is a master brand personality that is:

Original

Masculine

Sexy

Youthful

Rebellious

Individual

Free

American

A related byproduct brand personality (for a specific

customer group) such as Levi’s 501 jeans is:

Romantic

Sexually attractive

Rebellious physically prowess

Resourceful

Independent

Likes being admired

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Both profile appeal mostly to the emotional side of the

people’s minds- to their feelings and sensory function. This

profiling approach aims to reinforce the self-concept of the

consumers and their aspirations. The approach is ideal for

brands that adopt a market-niche strategy, and can be

extremely successful if a market segment has a degree of

global homogeneity, as is the case with Levis.

Non product related brand personalities drivers

User imaginary – user imaginary can be based on either

typical users (people you see using the brand) or

idealized users (as portrayed in advertising and else

were). User imaginary can be powerful driver of brand

personality, in part because the user is already a

person and thus the difficulty of conceptualizing the

brand personality is reduced. For example Charlie has a

feminine, strongly independent brand personality driven

by it user imaginary. The upscale personality of

Mercedes and the sexy, sophisticated personality of

Calvin Klein are similarly influenced by user

imaginary.

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Sponsorship – activities such as events sponsored by

the brand will influence its personality. Swatch, for

example, reinforces its offbeat, youthful personality

will targeted sponsorships that have included the

Freestyle Ski World Cup in Breckenridge, the first

International

Age – how long a brand has been on the market can

affect its personality. Thus new entrants such as

Apple, MCI, and Saturn tend to have younger brand

personalities than brand such as IBM, AT&T, and

Chevrolets, and it as all too common far a major

dominate brand to see as strongly and old fashioned, a

brand for older people.

Symbol – a symbol can be powerful influence on brand

personality because it can be controlled and can have

extremely strong associations. Apples bitten apple, the

Marlboro cowboy, the Michelin mans all helps to create

and reinforce a personality for their brands.

Why use brand personality

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The brand personality construct can help brand strategies by

enhancing their understandings of people’s perceptions of

and attitude towards the brand, contributing to a

differentiating brand identity guiding the communication

effort and creating brand equality.

Enriching understanding

The brand personality metaphor can help a manager gain

an in-depth understanding of consumer perceptions and

attitudes towards the brand. By asking people to

describe a brand personality, feelings and relationship

can be identified that often provide more insight than

is gained by asking about attribute perceptions.

Contributing to a differentiating identity

Strategically, a brand personality, as a part of a core

or extended identity, can serve as the foundation for

meaningful differentiations. Advertising agencies such

as Young & Rubicam and Ogilvy & Mather routinely

include a brand personality statement as a part of

their brand positioning strategy.

Guiding the communication effort

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Tactically the brand personality concept and vocabulary

communication the brand identity which richness and

texture to those who must implement the identity

building effort. Practical decisions need to be made

about not only advertising but packaging, promotions,

which events to associate with, and the style of person

interactions between the customer and the brand.

Crating brand equity

The brand personality creates brand equity. The self-

expression model explains this. The model says that for

certain groups of customers; some brands become

vehicles to express a part of their self-identity.

People express their own or idealized identity in a

variety of ways, such as a job choices, attitudes,

options, activities and lifestyles. Brand that people

like, admire, discuss, buy and use also provide a

vehicle for self-expression.

Brand personality of cars

Are you what you drive? That is what are companies seem to

be asking and in the same breath trying to convince you

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about. In other words, are you the Hyundai accent owner who

commands immediate respect wherever she goes (including fro

the potential father-in-law) or are you the suave executive

from the Chevrolet ad who is ever ready to share a moment

with loved one? With a plethora of new models in the market,

and generic benefits (such as space or fuel efficiency) of a

particular car segment hardly a distinguishing factor

between car models, marketer are increasingly

differentiating on the emotional pay-off a particular car

model/brand provides to the customer. This, of course,

varies from the segment to segment and also on how long a

particular model has been in the market.

For instance, while advertising for entry level or smaller

cars tends to focus more on the rational or functional

benefits of the vehicles, the differentiations is

increasingly on the emotional benefits when it comes to high

end cars.

“Generally, it has been seen as one move up the value chain,

the differentiation is more on the emotional pay-off. People

buy car as an extension of their personality rather than

just features. A car, in India, helps build up show off,

social esteem value. The advertising would also vary

according to the segment which one is targeting,” he says.

For instance, the Chevrolet Optra ad (which depicts a young

husband driving his wife to see the moon on the occasion of

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Karvachauth) shows an Optra consumer as someone who believes

in family values and indulging loves ones.

“We find that typically profile of an Optra consumer is

someone who is in the age group of 35-45years and has a

chauffer. He buys a car not only for himself but also for

the family and tries to make up, for not being able to spend

enough time, by indulging love ones,” points out dutta. The

positioning goes well with the companies catch lines of “for

a special journey called life”.

High end car maker Skoda auto too, through its advertising,

attempts to connect with its consumer on emotional level.

“Car is the extension of the personality and our advertising

shows the consumer to be youthful, image-conscious and even

bit a macho. The campaign jointly made by Skoda’s marketing

department and ad agency IB&W not only communicates the

quality of the brand but an appreciation for the finer

things in life. The target Skoda consumer is a SEC A1,

primarily male, businessman or someone in the senior

management,” says Shashank vaid, manger (marketing), Skoda

Auto India. Surely, image building does come higher in the

consumer’s scheme of priorities when buying a new car than

ever before.

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The importance of brand image has risen sharply in the last

few years. At the segment level, the increase in importance

is greater for the mid-size cars, indicating the relevance

of brand among the more expensive market segments. The

manufacturer need to focus more o how consumers perceive

them as offering exciting cars and being committed towards

them. Contemporariness of model has a big impact on purchase

decision. The perception of the car in terms of its

performance and design, quality, sales, after sales, cost of

ownership, apart from brand image, all impact upon the

purchase decision.”

According to Bhatia, as long as advertising for cars is

strongly differentiated and sharply positions the model and

at the same time satisfies a define need segment, it shall

have the capability to break the clutter and creates a

unique and compelling reason for consumers to purchase. “One

good example of this is Ford Ikon- the josh machine made a

tremendous impact on consumers in offering to satisfy a

clear need. You can see some more of this with a recently

launched premium hatch back as well”.

Interestingly, the strategy marketer follow changes a bit

when it comes to addressing the smaller car category with

the rational benefits of a brand tending to be the focal

point of the campaign. “We have found that typically a buyer

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for a smaller car (sub Rs 4 lac) looks for aspects such as

reliability and fuel efficiency. This changes as we move up

since in case the consumer has been with the category for a

longer time and hence it is important t to talk of an

emotional pay off.

A case in point is the Maruti 800 campaign in which the kids

who is playing with a toy Maruti 800 exclaims to his dad

(when asked how long will he keep on running the car), “papa

ki Kara, petrol khatam hi nahin Honda.” The ad cleverly

conveys that the car just keeps going on and on. It ends

with the voiceover telling us that Maruti Suzuki is most

fuel-efficient car.

However in the small car segment, the rational benefits

magic is not always applicable. Take the case of Hyundai

Santro, the advertising of which has evolved over the years

from initially conveying mainly the functional benefits of

the model to connecting with the consumer on an emotional

level now. “When we launched the Santro, we started with the

positioning if the car being a complete family car which was

completely rational positioning. But then two things

happened- the product found acceptance in the market and the

competition came up with similar product in the market.

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Brand image is not driven by good advertising alone but is

significantly impacted upon by the cars performance and

design, quality, and the cost of ownership. Among the three,

product quality has the highest correlation with brand

image. Small car buyer seeks capability in advertising, and

fuel efficiency is relatively more important to them.

Technology, innovation, and good influence premium mid-size

buyers. One reality for us in India is that the market is

extremely price/value conscious. While making purchases

based on above, there is rational side, which does have an

impact on the decision on a particular make and model of

car. Be it rational or an emotional decision, consumers

would have to think as a bevy of new models flood the Indian

market.

45

46

Objectives of Study

The research objective is a statement, in as precise

terminology as possible, of what information is needed. The

research objective should be framed so that obtaining the

information will ensure that the research purpose is

satisfied.

Research objective have three components.

Research question –

The research question specifies the information the decision

making needs. The responsibility of the researcher is to

make the researcher question as specific and precise as

possible. The researcher question asks what specific

information is required to achieve the research purpose, or

answer the research problem. If the research questions are

answered by the research, then the information should aid

the decision maker.

Development of hypothesis –

A hypothesis is a possible answer to a question. Development

of hypotheses implies generating basically alternative

47

answers to research questions. The research determines which

of these alternative answers is correct. It is not always

possible to develop hypotheses, but efforts should be made.

Scope or boundaries of the research -

Defining the scope of the research or the research

boundaries ensures the desired precision or accuracy of the

result.

The researcher’s responsibility is to restate the initial

variables associated with the decision problem, that is

convert the research problem, in the form of one or more key

question formats-

How

What

Where

When

Why

48

Objectives of the Research

The research objectives for the project undertaken can be

defined as follows:

To determine the demographic variables of the customers

of different brands of cars.

Examine the customer perception about the cars.

To judge the satisfaction level of car owners of

different brands.

The research tracks responses at following two layers

1. Product related parameters

2. Dealer related parameters

To analyze the psychographic variables of the customers

of different brand of the cars.

Scope of the study

It is aimed to study the car market and buying behavior of

the customer. The project is analyzed the demographic,

psychographic and buying characteristics of the customers in

buying the car. It includes the detailed study of customers

focusing on the various parameters that lead to identifying

49

and understanding the perception of the customer in buying

the car brands.

Significance of the study

A brand is a set of expectations and associations evoked

from company or product. A brand is how key constituents-

customers, employees etc. experiences what you do. Some

brands are of such great importance to people, that we speak

of them as a part of one’s life and identity, being used to

express one. Some would say that these brands have their own

personality, the brand perception, which can be defined as

the set of human characteristics associated with a given

brand.

Because many people interact with brand as though they were

other people, it is important to understand what a brand

perception consists of, and how its characteristics can be

used to affect the relationship between the brands and its

users. Knowing and understanding the brand perception gives

a good insight into this relationship, and into peoples’

attitudes towards the brand, and is also an important guide

to communicating the brand.

Like apparel and lifestyles brands, a car is extension of

one’s perception. People buy cars which either matches their

50

personalities or those which provide them opportunities of

being perceived as somebody they aspire to be. This becomes

significant as consumers move up the value chain from small

compact cars to midsize and upwards.

Research Methodology

A research process consists of stages or steps that guide

the project from its conception through the final analysis,

recommendations and ultimate actions. The research process

provides a systematic, planned approach to the research

project and ensures that all aspects of the research project

are consistent with each other.

51

Research studies evolve through a series of steps, each

representing the answer to a key question.

Research Project Steps

52

INTRODUCTION

This chapter aims to understand the research methodology

establishing a framework of evaluation and revaluation of

primary and secondary research. The techniques and concepts

used during primary research in order to arrive at findings;

which are also dealt with and lead to a logical deduction

towards the analysis and results.

RESEARCH DESIGN

I propose to first conduct a intensive secondary research to

understand the full impact and implication of the industry,

to review and critique the industry norms and reports, on

which certain issues shall be selected, which I feel remain

unanswered or liable to change, this shall be further taken

up in the next stage of exploratory research. This stage

shall help me to restrict and select only the important

question and issue, which inhabit growth and segmentation in

the industry.

The various tasks that I have undertaken in the research

design process are :

Defining the information need

53

Design the exploratory, descriptive and causal

research.

RESEARCH PROCESS

The research process has four distinct yet interrelated

steps for research analysis

54

It has a logical and hierarchical ordering:

Determination of information research problem.

Development of appropriate research design.

Execution of research design.

Communication of results.

Each step is viewed as a separate process that includes a

combination of task , step and specific procedure. The steps

undertake are logical, objective, systematic, reliable,

valid, impersonal and ongoing.

EXPLORATORY RESEARCH

The method I used for exploratory research was

Primary Data

Secondary data

PRIMARY DATA

New data gathered to help solve the problem at hand. As

compared to secondary data which is previously gathered

data. An example is information gathered by a questionnaire.

55

Qualitative or quantitative data that are newly collected in

the course of research, Consists of original information

that comes from people and includes information gathered

from surveys, focus groups, independent observations and

test results. Data gathered by the researcher in the act of

conducting research. This is contrasted to secondary data

which entails the use of data gathered by someone other than

the researcher information that is obtained directly from

first-hand sources by means of surveys, observation or

experimentation.

Primary data is basically collected by getting questionnaire

filled by the respondents.

SECONDARY DATA

Information that already exists somewhere, having been

collected for another purpose. Sources include census

reports, trade publications, and subscription services. Data

that have already been collected and published for another

research project (other than the one at hand). There are two

types of secondary data: internal and external secondary

data. Information compiled inside or outside the

organization for some purpose other than the current

investigation. Data that have already been collected for

some purpose other than the current study. Researching

56

information which has already been published. Market

information compiled for purposes other than the current

research effort; it can be internal data, such as existing

sales-tracking information, or it can be research conducted

by someone else, such as a market research company or the

U.S. government. Published, already available data that

comes from pre-existing sets of information, like medical

records, vital statistics, prior research studies and

archival data.

Secondary source of data used consists of books andwebsites

My proposal is to first conduct a intensive secondary

research to understand the full impact and implication of

the industry, to review and critique the industry norms and

reports, on which certain issues shall be selected, which I

feel remain unanswered or liable to change, this shall be

further taken up in the next stage of exploratory research.

DESCRIPTIVE RESEARCH

STEPS in the descriptive research:

Statement of the problem

57

Identification of information needed to solve the

problem

Selection or development of instruments for gathering

the information

Identification of target population and determination

of sampling Plan.

Design of procedure for information collection

Collection of information

Analysis of information

Generalizations and/or predictions

DATA COLLECTION

Data collection took place with the help of filling of

questionnaires. The questionnaire method has come to the

more widely used and economical means of data collection.

The common factor in all varieties of the questionnaire

method is this reliance on verbal responses to questions,

written or oral. I found it essential to make sure the

questionnaire was easy to read and understand to all

spectrums of people in the sample. It was also important as

researcher to respect the samples time and energy hence the

58

questionnaire was designed in such a way, that its

administration would not exceed 4-5 mins. These

questionnaires were personally administered.

The first hand information was collected by making the

people fill the questionnaires. The primary data collected

by directly interacting with the people. The respondents

were contacted at shopping malls, markets, places that were

near to showrooms of the consumer durable products etc. The

data was collected by interacting with 200 respondents who

filled the questionnaires and gave me the required necessary

information. The respondents consisted of house wives,

students, business men, professionals etc. the required

information was collected by directly interacting with these

respondents.

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION

59

It is a description of the characteristics of that group of

people from whom a course is intended. It attempts to

describe them as they are rather than as the describer would

like them to be. Also called the audience the audience to be

served by our project includes key demographic information

(i.e.; age, sex etc.).The specific population intended as

beneficiaries of a program. This will be either all or a

subset of potential users, such as adolescents, women, rural

residents, or the residents of a particular geographic area.

Topic areas: Governance, Accountability and Evaluation,

Operations Management and Leadership. A population to be

reached through some action or intervention; may refer to

groups with specific demographic or geographic

characteristics. The group of people you are trying to reach

with a particular strategy or activity. The target

population is the population I want to make conclusions

about. In an ideal situation, the sampling frames to matches

the target population. A specific resource set that is the

object or target of investigation. The audience defined in

age, background, ability, and preferences, among other

things, for which a given course of instruction is intended.

I have selected the sample trough Simple random Sampling

SAMPLE SIZE :

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This involves figuring out how many samples one need.

The numbers of samples you need are affected by the

following factors:

Project goals

How you plan to analyze your data

How variable your data are or are likely to be

How precisely you want to measure change or trend

The number of years over which you want to detect a

trend

How many times a year you will sample each point

How much money and manpower you have

SAMPLE SIZE

I have targeted 100 people in the age group above 21 years

for the purpose of the research. The sample size is

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influenced by the target population. The target population

represents the Delhi regions. . The people were from

different professional backgrounds.

The details of our sample are explained in chapter named

primary research where the divisions are explained in

demographics section.

SAMPLING TECHNIQUE

Simple random sampling technique has been used to select the

sample

A simple random sample is a group of subjects (a sample)

chosen from a larger group (a population). Each subject from

the population is chosen randomly and entirely by chance,

such that each subject has the same probability of being

chosen at any stage during the sampling process. This

process and technique is known as Simple Random Sampling,

and should not be confused with Random Sampling.

62

ERRORS IN THE STUDY

Interviewer error

There is interviewer bias in the questionnaire method. Open-

ended questions can be biased by the interviewer’s views or

probing, as interviewers are guiding the respondent while

the questionnaire is being filled out. The attitudes the

interviewer revels to the respondent during the interview

can greatly affect their level of interest and willingness

to answer openly. As interviewers probing and clarifications

maximize respondent understanding and yield complete

answers, these advantages are offset by the problems of

prestige seeking, social desirability and courtesy biases.

Questionnaire error

The questionnaire designing has to careful so that only

required data is concisely reveled and there is no redundant

data generated. The questions have to be worded carefully so

that the questions are not loaded and does not lead to a

bias in the respondents mind

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Respondent error

The respondents selected to be interviewed were not always

available and willing to co operate also in most cases the

respondents were found to not have the knowledge, opinion,

attitudes or facts required additionally uninformed response

errors and response styles also led to survey error.

Sampling error

We have taken the sample size of 100, which cannot determine

the buying behavior of the total population. The sample has

been drawn from only National Capital Region.

Research Design

Research design is a conceptual structure within which

research is conducted. A research design is the detailed

blueprint used to guide a research study towards its

objective. It is a series of advanced decision taken

together comprising a master plan or a model for conducting

the research in consonance with the research objectives.

Research design is needed because it facilitates the smooth

sailing of the various research operations, thereby making

64

research as efficient as possible yielding maximum

information with the minimum effort, time and money.

RESEARCH DESIGN

EXPLORATORYRESEARCHDESIGN

CONCLUSIVERESEARCHDESIGN

DESCRIPTIVERESEARCH

CAUSALRESEARCH

Limitations of the study

All the research projects are hindered in their smooth

flow by some unforeseen problems. The problems arise in

the form of constraints by budget, time and scope of

the study. The current project was also faced by

certain problem. Some of the problems faced in the

course of the research are as follows:

65

A strong unwillingness on the part of the owners of

various cars, to participate and aid the research.

The boredom and wavering concentration that set in

among the respondents while answering the long

questionnaire: thus in turn led to the difficulty of

preventing incomplete questionnaires.

Sampling error: the research include a sample size of

100 customers which is not enough to determine the

brand perception of the consumers for buying the cars.

Since its not a census survey there is always a chance

of error while extrapolating the results of a sample

study over the population especially in those

researches where the qualitative aspects are concerned.

So it’s always doubtful to map the qualitative aspects

using a quantitative measure.

The study was limited to the geographical region of

DELHI

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Car’s Profile

67

Maruti Udyog Limited

Maruti Udyog Limited is the premier car company in India.

Maruti Udyog Limited (MUL) was established in Feb 1981. The

company entered into collaboration with Suzuki Motor

Corporation of Japan to manufacture cars. Maruti is the

highest volume car manufacturer in Asia, outside Japan and

Korea.

Maruti Udyog Limited, the largest Car selling company in

India, has many unique Service advantages for the customers.

It has bagged the First Position in JD Power Customer

Satisfaction Index for the consecutive two years. The

company has also ranked highest in the India Sales

Satisfaction Study.

68

1. Estilo

Maruti launched all new Estilo. If you are wondering why I

dropped Zen from this car's name then let me explain. Estilo

has got Wagon R's engine and chassis and Suzuki MR Wagon's

shape. Whatever remains is taken from Zen, well does

anything remains actually? Yes, Name! Name is taken from

Zen, 'Zen Estilo'. In essence it’s stylish Wagon R, Japan's

MR Wagon, combination of the two or anything but Zen. It

seems Maruti wants to exploit Zen brand-image hence named

this car after Zen.

Zen Estilo has the same engine (1061cc, 64.8ps, 84Nm, 4-

cylinder, 16-valve, MPFI F10D Petrol) under the hood that is

found in Maruti Wagon R. Absolutely nothing has been changed

except for the fact that this engine is much refined and is

slightly better at responsiveness and fuel economy. This

simply translate into 'Zen Estilo is a bit faster and more

fuel economic than Wagon R'. Due to highly good drivability,

driving in city would be more fun with Zen Estilo.

Electronic Power Steering (not available in LX version)

really helps in crowded traffic. Owning and maintaining Zen

Estilo won't be a problem, engine is proven reliable and

virtually maintenance-proof.

2. Wagon R Duo

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At first glance the Maruti WagonR Duo looks quite normal.

Well, that is if you think the WagonR's boxy looks are

normal to start to start with. Frankly, for a car that has

to get around a city, I really don't care, because the Duo

is all about LPG, and the fact that it is first factory

fitted LPG car in India. Factory-fitted means one major

plus, your warranties don't get voided because of the gas

fitment.

There is no denying the cars cost advantage, this is the

cheapest Maruti vehicle to run, and that in itself is a

massive statement. The redesign of the car hasn't just meant

a fresh exterior look; it has also meant new interior -

rotary controls on the panel and a very neat looking display

with an all new Speedo.

The problem is that despite the not insignificant cost

savings, you save a rupee a kilometer on LPG over Petrol,

which even makes the extra Rs 24000 you have to pay for the

car seem worth it, the Duo just wheezes at times. And this

is despite two important facts, first LPG has more energy

than CNG (that other gas) and because this is a company

designed car, Maruti engineers have really played around

with the engines tuning.

3. Swift

70

Competing with the other cars of Maruti, Maruti Swift is

gradually making its position in the world of mid-sized

family car. Maruti Swift has come up with the special

technical specifications of 16 valve 4-cylinder, 1300 cc

engine generating power. Maruti swift is equipped with

various safety features and well advanced equipments. 3

assist grips, 3 spoke urethane steering wheel, antenna,

cabin light (3 position), console box (lower), cup holders

(front 2, rear1), front door trim pockets, green tinted

glass window, halogen headlamps, headlamp leveling device,

heater and manual Air conditioning, OVRM (internally

adjusted), rear fog lamps, wind screen wiper 2 speed plus 1

speed intermittent, tailgate opener key type, trip meter

(digital display), sun visors (both sides), brake assist ,

child lock (rear door), high mounted stop lamp, power

steering, rear seat belts etc. are the features available in

this model. Apart from the features found in other model,

striking features of this model are black colored A & B

pillars, 12v accessory socket in center console, day and

night rear view mirror, door ajar warming lamp, driver's

seatbelt warning lamp, tachometer, driver's seat belt

warning lamp, vanity mirrors (sun visor co-driver side),

rear seat head restraints, fabric accented door trims,

central door locking (4 door), front and rear electronic

windows, front fog lamps, light off/ key reminder, manual

air-conditioning, key not removed warning buzzer, etc

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4. Maruti Baleno

This mid size car with its bold and elegant looks along with

its smart performance is becoming the part of the dream of

many car lovers.

Colors

Pearl Silver

Silky Silver

Superior White

Midnight Black

Bean Blue

Along with the features present in Lxi, there are many other

extra features available in this model like leather steering

cover, automatic climate control, rear spoiler with LED stop

lamp, stylish alloy wheels, MP3 music system, silver finish

centre garnish, remote keyless entry etc.

has various effective comfort and safety features like tilt

adjust power steering, central lock door locking, electric

windows, tachometer, trip meter, "key not removed" warning

72

buzzer, AC illumination system, cigarette lighter, ash tray

illumination, electrically operated AC louver switches, semi

concealed windshield wiper (2 speed plus 2 controlled

intermittent), front and rear mud flaps, day/night inside

rear view mirror, velour floor carpet, front door armrests

and pockets (both sides), rear door child lock, lockable

glove box, side impact beams etc.

5. Maruti Esteem

Sophisticated big structured Maruti Suzuki esteem is one of

the old car of the Maruti Udyog group. To run this huge car

its engine is made of lightweight all-aluminum. This

contemporary engine has capacity of 65 bhp at 6000 rpm.

According to *Mileage (Auto India, Nov 2005), Esteem holds

the topmost position on mileage among the other category of

cars including the small cars.

There are three models of Maruti Suzuki Esteem:

Maruti Esteem (Lx)

Maruti Esteem (Lxi)

Maruti Esteem (Vxi)

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The basic model of Maruti Suzuki Esteem includes various

safety features and unique configuration in it. Air

conditioned Maruti Suzuki Esteem for the comfort of the

owner provides the facilities of cabin heater, front seat

back pockets (both sides), front door pockets (both sides),

air flow controls, remote operated fuel tank lid and trunk

lid, coat hanger hook on grip assistance etc..

Instrument panel of this model includes tachometer and

speedometer with sporty dial. Security measurement of this

model has headlamp leveling device, collapsible steering

column, lockable glove box, child proof rear door locks,

halogen headlamps, prismatic day-night inside rear view

mirror etc.

This model is more upgraded version of Maruti Suzuki (Lx).

Apart from the features that are already in MarutiSuzuki

(Lx), there are other few more added features existing in

Maruti Suzuki (Lxi). For comfort these models specially have

rear view mirror on the left side, power steering and power

window (front).

74

Hyundai Motor

Hyundai Motor India Limited (HMIL) was established in 1996

and is a wholly owned subsidiary of South Korean multi

national, Hyundai Motor Company. HMIL is the fastest growing

and the second largest car manufacturer in India and

presently selling 30 variants of passenger cars in six

segments. The Company has set up more than 70 dealer

workshops that are equipped with the latest technology,

machinery, and international quality press, body and paint

shops, across the country, thereby providing a one-stop shop

for a Hyundai customer. Hyundai also has a fleet of 78

emergency road service cars that can provide emergency

service to all its customers anytime, anywhere.

6. Hyundai Santro

In the field of mid size car, Santro Xing is capturing the

market very rapidly. Its design, style, space and other

special features has made it one of the highest purchasable

cars among any economy class.

It has five variants:

Santro XK

75

Santro XK (Non AC)

Santro XL

Santro XO

Santro AT

Along with the other features that are present in Santro XK

(Non AC), other features present in this model are air

conditioner, day and night inside rear view mirror, chrome1

radiator grille etc. Along with the features available in

Santro XK, added features in this model are 4 doors CLS,

passenger side OVRM, tinted glass, map pocket front door

driver side, front door full size arm rest, door trim with

fabric insert, hydraulic power steering, power windows

(front) etc

7. Getz

Hyundai Motors launched small family car Getz at August

2004. Euro III emission norms fulfilled Car, Getz powered by

1300 cc. engine. Only the petrol version of this car was

launched initially.

76

There are four variants found in this car:

Hyundai Getz GLS

Hyundai Getz GLX

Hyundai Getz GVS

This model has highly advanced features like AC with 4 speed

blower, ash tray w/o illumination, center console w/ pen and

jug holder, 60:40 rear seat split, vanity mirror passenger

side, rear defogger, height adjustable seat belts (front),

waist line molding, tilt steering, map pockets, front and

rear power windows, rear seat back inclination(4 position),

digital clock, rear wiper and washer, front for lamp, body

color radiator grille, rear bumper reflectors, rear mud

guard etc. Few features to view comfort and safety in mind,

this model is being specially equipped with rear wiper and

washer, rear defogger, alloy wheels etc. This model has few

important features like height adjustable front seat belts,

body colored radiator grille, rear bumper reflectors etc.

8. Hyundai Accent

Hyundai Accent was ceremonially launched at Frankfurt

International Motors Show on 15 September, 1999. It came in

two versions, i.e. Petrol and Diesel Versions in India

initially, while in Europe it was introduced only with the

Petrol version. Initially Accent came up with the manual

77

transmission which in turn started getting available in

automatic transmission. To know about the models of this

car, please see this following text:

Hyundai Accent GLE

Hyundai Accent GLS

Hyundai Accent Viva

Hyundai Accent Viva CRDi

Hyundai Accent CRDi

This model has many distinctive features like 60:40 split

folding rear seats, automatic trunk lamps, body colored door

handles, bumper with or without molding, door trims and

consoles, high mounted stop lamps (HMSL), Mist (one stoke

wiper blades), semi cloth upholstery, trip odometer, rear

license garnish, waistline molding, wiper (3 no. of speed),

cross bar under dash board, crumple zone, dual horn, engine

sub frame etc. Features that are striking in this models are

tinted glass, remote boot release, split rear seats,

tachometer, remote fuel cap release, sun visors with vanity

mirror, power telescopic antenna, luxury full cloth

upholstery, energy absorbing collapsible steering column,

full size wheel cover etc.

78

9. Verna

The most awaited Verna finally launched in India. Verna can

be considered as one of the most shock wave-creating cars in

India; within first five days of its launch over 2000 Verna

cars had been sold. Competition seems to be in shock.

Comfort levels are quite good, I wasn't expecting them to be

like this, and there is marginal refinement over Accent.

Suspensions give you a feel, 'yes this car is meant for

India', no bumpy rides. Car handles very well too. Interiors

are not class, as expected, though they don't give a cheap

feeling at all. City is way ahead of Verna in interiors and

room. Driving position is good and to make it even better,

height-adjustable driver-seat is provided in higher

versions. AC is quite effective, cools the cabin quickly.

Due to enough power, switching on AC doesn't make any

difference in performance.

Exterior design is satisfactory. Its neither great to boast

about nor is bad to complaint about. Like all other Hyundai

car designs, people have started to criticize Hyundai for

design of Verna. After having first glance of Verna, one of

Carwale.com colleagues called out, 'Hey, it looks like

Baleno from front and Fiesta from behind!'. You can't help

it, it’s inevitable with Hyundai. ABS is available as

optional across the range. It’s a bit disappointing that

79

Airbags are not provided even as optional. Central Locking

is available as standard feature in all the versions and

keyless entry in petrol versions except the lowest-end Verna

i.

Finally Indian automotive industry is taking good shape. We

have enough options in every segment available. From Maruti

to Tata to Honda to Volkswagen to BMW to Porsche, every

major world car player is interested to sell its cars to

Indian people. Everyday we have news about some new launch.

Verna is just launched and Ford has just announced launch of

1.6 TDCi (diesel) in two months time, Maruti has confirmed

discontinuation of Baleno and arrival of new Baleno early

next year and last but not the least Chevrolet is planning

diesel Aveo soon.

Tata Motors Limited

Tata Motors Limited is India's largest automobile company,

with revenues of Rs. 24,000 crores in 2005-06. Its name

comes first in the category of commercial vehicles and the

second largest in the passenger vehicles, mid size car and

utility vehicle segments. The company is the world's fifth

largest medium and heavy commercial vehicle manufacturer.

Over 3.5 million Tata vehicles is moving on Indian roads,

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since 1954. Its manufacturing plant is located at

Jamshedpur, Pune and Luck now

10. Tata Indica V2

Having attributes of three popular cars, Tata Indica is

ruling the market. Making of Tata Indica with the concept of

main distinguishing features of three popular cars i.e.,

with the overall structure of Maruti Zen, interior space

like ambassador and cost nearly like Maruti 800 was a

challenging venture of Tata Motors.

Its fully foldable rear seat has made this car more

accommodating for extra luggage. For safe and secure driving

and to give proper comfort, side-impact beams, rigid

monochrome frame and child safety locks are attached to this

car.

Different Tata Indica models are:

Tata Indica V2

o DLX

o DLG

o DLS

o DLE

With its market catching looks and few striking features

have set a trend for the choosy buyers. Its power steering,

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central locking system, four power windows have not only

made this comfort driving car but also give assurance for

the safety. To mention more about convenience of driving,

HVAC system provides good cooling effect even in a sultry

summer days. Door handles, body colored bumpers, ORVM and

wheel arch flair are few more advantages that the owner of

this car can easily avail.

To assure safer driving along with the elegance and appeal

of the car, this model is equipped with body colored

bumpers, the wheel arch flairs, internally adjustable OVRM

and central locking system. To avoid any inconvenience in

operating the window, front windows are power windows. To

avoid the scorching heat in a summer days, HVAC system of

cooling can soothe anybody inside the car

11. Tata Indigo

Indigo with its market catching features like leather

upholstery, beige interiors, LCD screen etc has made its

position in the automobile industry.

Indigo is available in Petrol and Diesel models.

Petrol Variants

o Indigo GLE

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o Indigo GLS

o Indigo GLX

It is equipped with various features like manual power

steering, manual front and rear windows, grey bumpers, half

wheel covers, partial fabric lining on seat, molded roof

lining, high mounted stop lamp etc. To mention few of the

features present in this model along with the features of

rest of the two models, there are available power steering

and power windows, rear fog lamps, rub rails on door, full

wheel covers, both sides outer rear view mirrors, rear

defogger, central locking, audio warning signal for driver

seat belt and many more.

12. Indigo Marina

Fully equipped with 32 bit micro processor and 1405 cc MPFI

Petrol engine, this variant delivers maximum power of 85 PS

@ 5500 rpm and maximum torque of 11kgm @ 3000 rpm.

It has various features like AC system,2 spoke wheel, grey

bumpers, chrome-plated grill lip, black door handles, roof

rails, partial wheel covers, digital clock, internal

antenna, partial fabric seats, anti-submarine type front

83

seats, child safety locks on rear doors, collapsible

steering column, side impact beams etc

This model along with the features of Indigo Marina GLE

comes with various other features like HVAC system, aluminum

gear shift knob, 4 spoke wheel, power steering, body colored

bumpers, rub rails on door, full wheel covers, stylish grip

and cover for hand brake lever etc.

Chevrolet

Its king like entry happened in India in 1928 with its

National Series AB touring. Reliability of this car was

proved by its 171 cubic inches, 24.7hp four cylinder

engines.

General Motors, parent company of Chevrolet, was the first

in setting up assembly plant in India. First office of

Chevrolet was located at Mumbai and its assembly plant was

in Sewree.

13. Chevrolet Aveo

84

With the assurance of safety and technologically advanced

equipments, Chevrolet Aveo provides complete statement of

reliability and efficiency. Safety features like tailor

welded blanks, high- strength steel structure, B-pillar,

height adjustable safety belt anchors, rear child safety

door locks, front safety belt pretension etc really confirm

the security of the passenger.

It has four variants:-

Aveo 1.4 E*

Aveo 1.4

Aveo 1.4 LS

Aveo 1.6 LT

It is well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome

radiator grille, wide 185/60 R14 tyres, pullout type door

handle, two tone beige interiors, power steering and power

window, central locking, rear defogger with timer, remote

trunk lid opener, engine service soon indicator etc. It is

well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome

radiator grille, wide 185/60 R14 tyres, pullout type door

handle, two tone beige interiors, power steering and power

window, central locking, rear defogger with timer, remote

trunk lid opener, engine service soon indicator etc. Its

main mentionable features along with the other features

which are associated with the rest of the models, are 1.6L

DOHC 102 PS, 5 speed MT; double DIN MP3 system with 6

85

speakers; rear spoiler with CHMSL; chrome coated exterior

handles and trunk lid garnish; 14" alloy wheels;

electrically adjustable OVRM; wood finish on IP and door

trim; car alarm and key less entry system.

14. Optra

With its 1.8 litre engine capacity runs up to 8.1 kmpl

inside the city crowd roads and 11.2 kmpl on the highway.

Its luxurious and comfortable interior include center

console, central armrest, flip down rear armrest, automatic

climate control air conditioners, enough legroom space,

sunglass holder, mobile phone holding space in the rear

door, cup holders etc.

It has various variants:

1.6 Elite

1.6 LS Elite

1.6 LT Royale

1.8 LT

1.8 LT AT

It is equipped with various comfort and safety features like

driver seat height adjuster, plush feel beige fabric, silver

finish on control panel and luxurious wood finish on IP and

door boards etc. Along with the features present in 1.6

86

Elite, this is available with tilt steering, remote keyless

entry with chirp and trunk opening, AWIS, driver seat lumbar

support, front fog lamps, body colored outside mirrors and

door handles etc. There are many extra features present in

this model along with the features of 1.6 LT Royale like

automatic climate control system, all round wood finish

including Centre Panel, tilt adjustable front headrests, 15"

alloy wheels with ABS and EBD as option at extra cost, rear

disc brakes, dual airbag, double DIN audio system with 5 CD

changer.

87

FINDINGS AND ANALYSIS

Cross Tabulation

88

Q1. Why you bought your present car? Please rank from thehighest order of preference

1. Increase in disposable income2. Better safety at roads3. Family needs4. Increase in family size5. Suits your lifestyle and personality

89

39

12

17

23

9

0

5

10

15

20

25

30

35

40

Increase indisposableincom e

Better safetyat roads

Fam ily needs Increase infam ily size

Suits yourlifestyle andpersonality

M otives

M otives For buying a car

Series1

Interpretation:

As per the analysis shows, increase in disposable incomeseems to be the most important reason for buying a car.This trend is reflected in the growth of the Per capitaDisposable income and consequently the growth of theIndian automobile industry especially in the B and Csegment cars. Similarly, the growing family needs likeworking partners, increasing family size, status, etc.add to the motives of buying a car.

Q2. You decided to buy a car brand because of (rate best 3factors from 1 to 3 in order of your preference)

1. Affordable price

90

2. Technical superiority over competition3. Comfort4. Manufacturer’s image5. Value for money6. Safety7. After sale services

Product Specific R easons for Buying a Car

32

7

912

28

102

Afforable pricesTechnical superiorityCom fortM anufacturer's im ageValue for m oneySafetyAfter sale services

Interpretation:

Indian market is still the hard nut to crack for most ofthe automobile manufacturers. Though the Indian car industry

is among the fastest growing car markets of the world still

the Indian psyche is too complex for the manufacturers to

understand. The most important reason for buying a car when

it comes to B and C segment cars seems to be ‘value for

money’. 32% of the respondents suggested that affordable

prices are the most important factor while purchasing a car.

91

This is the reason for sticking to a particular segment till

the next substantial rise in the personal disposable income.

This reason is followed by ‘Value for money’ where the

customers look for the best product, best services and best

repute all bundled in one with the best deal they can

strike. This explains the reason for the stagnant or sudden

growth in sale of B and C segment cars just before budget

and near occasions like Diwali.

92

Product Satisfaction Level

Q3. Please rate your existing car in terms of understatedInterior Design features on a scale of 1 to 5 where

1 Highly Dissatisfied2 Dissatisfied3 Neutral4 Satisfied5 Highly Satisfied

Interior Type 1 2 3 4 5Seats designLeg Room Dash BoardInterior ColourMusic SystemAdjustable Front seat Headrest

93

Interiors for Segm ent B cars

3 4 4 3 4 4 4

34 4

4 4 3 4

33 3

3 4 43

44 4 4

44

4

1 1 1 1 3 14

3 3 3 3 3 3 3

0%

20%

40%

60%

80%

100%

M arutiEstilo

M arutiW agon

R

M arutiSw ift

IndicaV2

Aveo Santro G etzCars

Level of satisfaction Adjustable Front Seat Headrest

M usic SystemInterior ColourDash BoardLeg RoomSeat Design

Interpretation:

Interiors play a very important role in deciding the sale

of a car. More plush, comfortable and exotic the interiors

are more are the chances of its being popular among the

customers. For this reason manufacturers spend billions of

dollars every year on R&D to continuously improve the

interiors of their cars. Seats, leg room, dash board,

armrests etc are few of the options which count for the

interiors. As the analysis show Getz scores substantially

high w.r.t. its counterparts on the account of music system

94

installed. Similarly, Indica V2 races far ahead as far as

leg room is concerned. However, Wagon R fares badly on this

front. Overall, almost all cars get a mixed response in this

segment as far as the interiors are concerned.

95

Custom er Satisfacton based on Interiors of Cars

4 4 4 4 4 4 4

4 4 4 5 5 5 5

3 4 4 5 5 5 3

4 4 4 4 4 44

3 3 3 4 5 4 5

3 3 3 3 3 3 3

0%

20%

40%

60%

80%

100%

Esteem

Baleno

Indigo

Indigo Marina

O ptra

Accen

tVerna

Cars' Interior Param eters

Satisfaction level ( in %age)

Adjustable Front Seat HeadrestM usic SystemInterior ColourDash BoardLeg RoomSeat Design

Interpretation:

As one can see most of the respondents are quite happy with

the interiors of their respective cars. However, one

striking point observed here are that almost every car fares

neutral on the adjustable front seat headset. These cars

have more leg room, come with attached music systems (Verna

fares the best among all cars on this front) combined with

luxury features like TV screens, armrests at the back seat

etc.

96

Q4. Please rate your existing car in terms of understatedSafety features on a scale of 1 to 5

Safety Parameters 1 2 3 4 5Crossbar under DashboardAir BagsAnti Lock Breaking SystemAerodynamic Shape Intensity of frontlights

Custom er Satisfaction on the Safety Param eter

3 3 3 3 3 3 3

11

11

31

1

33 4

3

4

3 4

34 4 3

3

4 5

3 4 5 43

4 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

M arutiEstilo(9)

M arutiW agonR (23)

M arutiSw ift

IndicaV2

Aveo Santro G etz

Safety Param eters of D ifferent cars

Custom

er Satisfaction Le

vel ( %age)

Intensity of front lightAerodynam ic ShapeABSAir BagsCrossbar under Dashboard

Interpretation:

As can be noted Maruti Swift and Indica V2 fight neck to

neck on almost every front, with Indica marginally better in

features like crossbars under the dashboard and Anti Brake

97

systems. Most of the cars in this segment fare relatively

similar and very close to each other on most of the fronts.

Custom er Satisfaction Level on Safety Param eters

4 4 4 4 4 4 4

1 1 3 3 4 4 4

4 44

44 4 5

3 3 33

4 4 3

3 3 4 54 4 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Esteem Baleno Indigo IndigoM arina

Optra Accent Verna

Cars' Safety Param eters

Custom

er satisfaction level

Intensity of front lightAerodynam ic ShapeABSAir BagsCrossbar under Dashboard

Interpretation:

As one can see most of the respondents are quite happy with

the safety parameters of their respective cars. However, one

striking point observed here are that almost every car fares

neutral on the safety parameters.

98

Q5. Please rate your existing car in terms of followingparameters

Parameter 1 2 3 4 5Fuel ConsumptionMileage ( Km/ltr)Pick UpStability at higher speedTop speed

99

Custom er Satisfaction Level on the Fuel Efficiency

3 43 3 3 3 3

34

4 4 3 3 4

33

44

4 55

3 3 3 4 4 4 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

M arutiEstilo(9)

M arutiW agonR (23)

M arutiSw ift

IndicaV2

Aveo Santro G etz

Cars' Fuel Efficiency Param eters

Custom

er Satisfaction Le

vel ( %age)

Stability at higher speedPick upM ileageFuel Consum ption

Interpretation:

The customer choice of the car highly depends upon the

performance and maintenance costs of the car. This is the

reason why this class of parameter was chosen for this

study. And the results show that Maruti’s Wagon R fares the

best car in its segment as most fuel efficient car of all.

Similarly, Wagon R fares the best on the terms like mileage

but it lags behind Hyundai’s Santro on pick up front. So

this segment shows a mixed bag of response for the Fuel

efficiency and mileage parameter. Indica V2 performs

consistently on all the parameters and Getz fares really

well on pick up whereas it fares badly on fuel consumption.

Considered this condition for Getz it should be seen as a

100

red signal for the manufacturers so that Getz does not end

up being like Fiat’s Palio famous as a car for ‘drinking

petrol.

101

Custom er Satisfaction Level on the basis of Fuel Efficiency

3 3 43 3 3 3

3 3 33 3 3 3

3 4 45 5 5 5

4 4 5 5 5 5 5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Esteem Baleno Indigo IndigoM arina

O ptra Accent Verna

Car's Fuel Efficiency Param eters

Custom

er Satisfaction Le

vel ( in

%age

term

s) Stability at higher speedPick upM ileageFuel Consum ption

Interpretation:

Segment C cars are known as hybrid car segment between the B

segments fuel efficiency with the luxury of the D class.

Checking the same it seems that most of the cars in this

segment are placed much closed to each other with very

little difference here and there. Most of the cars are fuel

efficient w.r.t their weights and pick ups. Indigo fares as

the best car in terms of fuel efficiency. Baleno fares a

little bit behind than its counterparts as far as the

stability at high speeds and mileage is concerned.

102

Dealer Service Satisfaction Level

Q1. Please rate your Dealer on the understated parameters on

the scale of 1 to 5 where

1 Highly Satisfied

2 Satisfied

3 Neutral

4 Dissatisfied

5 Highly Dissatisfied

1 2 3 4 5Distance ( Proximity)

Advertisements (Promotions)

Technical Facilities

Cost of Service

Availability of Spares

Information Provided

Service Time

Charges

Staff

Car Handling ( Delivery & service)

103

Assured Customer Transactions

Ambience of Service Center

Finance ( Credit) Schemes

Dealers are the middle men between a car manufacturer and

its customers. Dealer thus becomes the most important link

in joining the company to its customers as he is the person

who will sell the product, will deliver it and will keep on

providing the after sales services to the customers as and

when required. So, it becomes necessary automatically to

study dealer as a part of customers’ satisfaction journey

with the product called car!

Why Maruti fares so well ahead of its

competitors till date and its the largest car company in

India with the largest market share in A and B segment is

because during the protected regime it build a dealers

network so strong that its yet very difficult for most of

the competitors to set up a network as large as Maruti. So

wherever you go its not difficult to find a Maruti service

station and a Maruti dealer. This is how Maruti has

maintained relationships with its customers and has been

able to convert most of them into a repeat customer. So,

dealer network is something of such importance that while

studying the customer’s satisfaction profile its almost

impossible to ignore it.

104

105

Custom er Satisfaction Level on the Basis of Dealers

5 5 44 5

45 4

4 4 4 4 5

3 44

34

44 4

44 4 4

4

2 3 4

12

4

4 2

54 4 5 4

4 4 4 2 4 53 3 5 4 4 4 4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

D ealers releated param eters for diff M anufacturers

Custom

er Satisfaction Level ( in %age terms)

HyundaiGeneral M otorsTata M otorsM aruti Suzuki

Interpretation:

While buying a car, dealers ‘choice play a very important

role in deciding the company and model’s choice. So dealers

act as influencers on the complete buying behavior of the

prospective customers. Among all the listed factors Maruti

fares the best among all its counter parts in terms of

dealer density which is quite obvious. Also, the cost of

service provided by Maruti dealers is the lowest followed by

Tata Motors. Similarly, for B and C segment cars Maruti

106

emerges out as the clear winner among the four car companies

studied all thanks to the vast, extensive and well managed

dealer system.

Q2. How do you rate the brand image of your car?

1 2 3 4 5 Very LowVery High

Brand Im age

34 4 4

3

5

3

0

1

2

3

4

5

6

M arutiEstilo

M arutiW agon R

M arutiSw ift

Indica V2 Aveo Santro G etz

Car Brands

Custom

er Perception ( A

vg)

Series1

Interpretation:

As per the analysis, Santro is the car whose brand image is

most preferred in the market. This is because of the reason,

107

that it’s from the house of Hyundai a South Korean company

known for its overall image. On the contrary Maruti Estilo

and Aveo share the same platform on the brand image. This

can be attributed to the fact that both these cars are

relatively new on the block and market takes time to imbibe

and give the brand an image. This is established by the fact

that Maruti’s Wagon R and Swift are exactly the same as far

as the image is concerned.

Custom er Perception of Different Cars

43

43

54 4

0

1

2

3

4

5

6

Esteem Baleno Indigo IndigoM arina

O ptra Accent Verna

Car Brands

Custom

er Perception ( A

vg)

Series1

Interpretation:

As the analysis reveals GM’s Optra fares as the Best Car as

far as customers’ perception is concerned about the brand

image of the car in the C segment. This is because of the

108

fact that GM itself commands an amazing brand image among

its customers. Accent and Verna both Hyundai cars share the

same position.

109

Q3. Will you recommend your car to your friends?

Yes No

Custom er's Ultim ate Perception

73

27

0

10

20

30

40

50

60

70

80

Yes N oCustom er Action ( W ill you recom m end your car to your friends?)

Frequency

Interpretation:

It seems logical that satisfied customers will someday

become loyal customers, in other words there is a positive

correlation between customer satisfaction scores and

customer buying behavior. If a customer rates the car very

high in satisfying his or her needs, the car manufacturer

should expect more referrals and this is reflected in the

analysis that 73% customers say that they will refer their

110

car to their friends even if they move to other segment or

other brand.

Q4. Will you buy your new car in the

Same segment , same manufacturer Same segment, different manufacturer Upper segment, same manufacturer Upper segment, different manufacturer

Custom er Perception

11

17 17

23

7

6 7

12

0

5

10

15

20

25

30

35

40

Sam e Segm ent,sam e

m anufacturer

Sam e Segm ent,different

m anufacturers

U pperSegm ent, Sam eM anufacturer

U pperSegm ent,D ifferent

M anufacturerCustom er Actions

Values C

B

Interpretation:

111

The analysis shows that most people when moving to upper

segment will prefer a different manufacturer. And the next

striking finding is that the customers will prefer both same

and different manufacturers in the B segment cars and there

is not much difference in the C segment also. This behavior

is complex to understand as this are the customers who have

given whopping response for recommending their car to their

friends. It’s the reason why brand perception is so

difficult to understand.

Demographics

112

20

41

21

17

age group<2121-3536-55>55

I surveyed around 100 people who belonged to various age

groups. The survey of 4 age groups was done. The four age

groups were:

Less than 21 years

21 -35 years

36-54 years

More than 55 years

113

MONTHLY FAMILY INCOME

33

28

19

19

m onthly fam ily incom e

<50,00050,001-1,00,0001,00,001-2,00,000>2,00,001

I surveyed around 200 people who belonged to various monthly

family income groups. The survey of 4 income groups was

done. The four income groups were:

Less than 50000

50000 - 1,00,000

1,00,001 – 2,00,000

More than 2,00,001

Interpretation:

Above graphs exhibits the income bracket of the sample size,as evident the majority of the sample is in the incomebracket of < 50,000 a month income. Though none of thebracket is highly skewed, this enables the study to be wide

114

and not dependent on a set income class, which was afortunately desirable result of simple random sampling.

Cross Tabulation

1. Motive to buy the car*segment car B and C

Affordable prices

Technical Superiority over com petition

Com fort

m anufacturer's im age

value for m oney

Safety

After sales service

respondant's objective buying a car brand

0

5

10

15

20

Coun

t

segm ent Car BEstiloW agon RSwiftSantroGetzIndica V2AveoEsteemBalenoAccentVernaIndigo M arineIndigoOptra

Bar Chart

Interpretation:According to the result, I found that choice of car dependsupon these following factors:So the choice of car is not driven only by intensive factorssuch as brand perception but is hugely influenced by

115

extensive factors such as price, service, and modelsavailable, financing options etc. also the choice of the caris largely influenced by the manufacture image. This is whyMaruti is perceived as a value for money car and Getzemerges out as a winner in the B segment for this criteria.As Getz is from the house of Hyundai known for itstechnology and great design is far better perceived as apreferred car than other cars. But a word of caution here,this perception may or may not result in a converted sale.

2. Recommend the car to your friend*ranking of Brand andcompany

yes noW ould you recom m end your car to your friends

0

10

20

30

40

Coun

t

respondants' ranking of brand and com pany

im ageVery LowLowNeutralHighVery High

Bar Chart

116

Interpretation:

The graph shows that people who rank their car high or veryhigh on the brand image are the people who recommend theircar to their friend. This is something the car companiesshould look for as these people may not be the brand loyalbut are definitely the people who help a company toreinforce the brand image propagated by the company.

3.ranking of Brand and Image*Segment B and C car

117

Very Low Low Neutral High Very Highrespondants' ranking of brand and com pany

im age

0

2

4

6

8

10

Coun

t

segm ent Car B and C

EstiloW agon RSwiftSantroGetzIndica V2AveoEsteemBalenoAccentVernaIndigo M arineIndigoOptra

Bar Chart

Interpretation:

This graph shows that how brand image is useful in makingthe choice of a car especially in the B and C segment. So,Santro is the car whose brand image is on the top and it’sthe most preferred car.

118

CONCLUSION

SCOPE OF FURTHER STUDIES

119

Conclusion

To conclude, the results show that the companies are playing

on the peripheral cues to maintain their Total Relationship

Management and connect to the customers both present and

potential. The companies are operating in a highly

aggressive and competitive global market place and this

climate has led to the emphasis on quality in all aspects.

TQM focuses on integration and coordination as well as the

continuous improvement of all activities and processes.

Total Relationship Management (TRM) is a very recent

marketing strategy and philosophy. It focuses on and is

concerned with all integrated internal and external

activities within and between the organizations. These two

terms are integrated by the manufacturers by building good

quality products and building good relationship with dealers

and enhancing service levels.

120

However, when studied from the point of view of a customer

there seems to be no major difference among the car brands

in a segment as far as performance is concerned. The brand

perception is dependant mostly on the peripheral cues

depending upon the nature and quality of the service

provided along with the pricing, maintenance, availability

of spare parts and related issues. So, a question arises

here that is this the end of road for the branding of cars?

Has the commoditization of cars has started and its time

that manufacturers must read the writing on the wall? It

seems so! It seems as an undercurrent sentiment is flowing

and the perception of the customers is changing according to

it. So this might be the reason that despite Verna faring so

high on the performance parameters still lags on the account

of converted sales.

The study shows that brand perception is something which

starts building up before a car is purchased and goes on

with its use and is reflected in the recommendations the

customer makes to his acquaintances for the same car. Also,

its seen that the customer might not be using the car still

he holds the perceptions about it. Brand personality of a

car is enforced by the sellers in the mindsets of the

customers and the customers react to it by forming their

perceptions about the car and this reflects in the overall

121

brand image of the car. So brand image and brand personality

complement each other and the brand perception aids the

building of brand image.

Dealers, as per the study findings, play a very

important role in building up the brand perception of the

cars. Since dealers are the connecting link between the

customers and the manufacturers thus becoming the most

important link in joining the company to its customers as he

is the person who will sell the product, will deliver it and

will keep on providing the after sales services to the

customers as and when required.

So, it becomes necessary automatically to study dealer as a

part of customers’ satisfaction journey with the product

called car! Their proximity to the customers, the service

provided by them and the relationship maintained by them

with the customers helps the car companies to establish and

reinstate the brand personality communicated by them to the

customers.

Finally the major point that emerges out of this

detailed study is a caution for the car companies. It says

that there is no doubt that Indian car market may be growing

with a double digit figure still the car companies have a

long way to travel to convince their customers about the

brand personality of their cars and how it suits the

122

prospective buyers. Simply because it simply is not a

guarantee that how so ever good the customer might be

holding the brand perception and how so ever good the brand

image may be it is not a guarantee that it will convert into

sale. Cars just like clothes and accessories suit the style

and persona of a person and since all cars will become

commodity someday the key to sell and excel in the market

will lie with a person who knows how to use the perceptions

of the customers to its use and sell the cars ‘coz

ultimately only that car survives which sells!

123

124

Scope of future study

As the report mentions there are clue in the market that the

cars are on a path of becoming commodities just like the

fate awaits for any other consumer goods. So what can be the

role and scope of brands and their personality in the

changes scenario to establish the brand perception of any

car in the mind set of a customer present or potential can

be one area of study?

On the close lines, another area of study can be the

importance of advertisements and promotion schemes on the

brand image of any car brand? Are the brands which advertise

more have a positively high brand perception or it’s the

sales promotion schemes which create the ripples in the

mindset of the customers.

125

ANNEXURE

126

REFRENCES

QUESTIONAIRE

References:

Sites Visited -

www.siamindia.comwww.autocarindia.comwww.overdrive.comwww.hyundai.co.inwww.ibef.org

127

Books consulted -

Building Strong Brands- David A Aaker

Questionnaire

For Customers:

128

Q1. Why you bought your present car? Please rank from the

highest order of preference

1. Increase in disposable income

2. Better safety at roads

3. Family needs

4. Increase in family size

5. Suits your lifestyle and personality

Q2. You decided to buy a car brand because of (rate best 3

factors from 1 to 3 in order of your preference)

1. Affordable price

2. Technical superiority over competition

3. Comfort

4. Manufacturer’s image

5. Value for money

6. Safety

7. After sale services

129

Product Satisfaction Level

Q3. Please rate your existing car in terms of understated

Interior Design features on a scale of 1 to 5 where

1 Highly Dissatisfied

2 Dissatisfied

3 Neutral

4 Satisfied

5 Highly Satisfied

Interior Type 1 2 3 4 5Seats design

Leg Room

Dash Board

Interior Colour

Music System

Adjustable Front seat Headrest

Q4. Please rate your existing car in terms of understated

Safety features on a scale of 1 to 5

Safety Parameters 1 2 3 4 5Crossbar under Dashboard

130

Air BagsAnti Lock Breaking SystemAerodynamic Shape Intensity of front

lights

Q5. Please rate your existing car in terms of following

parameters

Parameter 1 2 3 4 5Fuel ConsumptionMileage ( Km/ltr)Pick UpStability at higher speedTop speed

131

Dealer Service Satisfaction Level

Q1. Please rate your Dealer on the understated parameters on

the scale of 1 to 5 where

1 Highly Satisfied

2 Satisfied

3 Neutral

4 Dissatisfied

5 Highly Dissatisfied

1 2 3 4 5Distance ( Proximity)Advertisements

(Promotions)Technical FacilitiesCost of ServiceAvailability of SparesInformation ProvidedService TimeChargesStaffCar Handling ( Delivery &

service)Assured Customer

Transactions

132

Ambience of Service

CenterFinance ( Credit) Schemes

Q2. How do you rate the brand image of your car?

1 2 3 4 5 Very Low

Very High

Q3. Will you recommend your car to your friends?

Yes

No

Q4. If yes, will you buy your new car in the

Same segment , same manufacturer

Same segment, different manufacturer

Upper segment, same manufacturer

Upper segment, different manufacturer

Age group:

<21 21-35

36-55 >55

133

What is your monthly Family income?

Less than 50000

Rs 50,000 –Rs 1, 00,000

Rs 1, 00,001– Rs 2, 00,000

More than Rs 2, 00,001

Number of car’s owned:

Present Car (s) owned:

NAME:

SEX:

Phone NO:

134