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CONSUMER BUYING BEHAVIOUR
AND PERCEPTION
SMALL CAR SEGMENT
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Objectives of the research....
Examine the psychographics of potential small sizecar customers.
Probe the buying behavior of car owners.
Find people expectations or satisfaction regarding
the small cars. To judge the awareness level of small cars.
To study the attributes of different brands of
small cars.
To probe into consumers knowledge about cars.
To know the marketing mix of this product category.
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Segment-Wise Classification of the Indian
Car MarketSegment
Range Price in lacs Models
Economy Maruti 800,
Maruti Omni, Premier,
Fiat , Reva.
Mid-Range 3-4 Uno, Zen, 118 NE, Ford
Fiesta, Fiat
Premium 5-7 Esteem, Contessa, Opel
Astra, Ford Escort, Cielo,
Mitsubishi Lancer,
Hyundai Accent
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Key Demand Drivers...
Disposable Income
Mobility Needs of People
Change in standard of living
easy monthly installment and loan schemes available
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Data Analysis...
Sample size - 30
Respondents - 27
Owners of Santro - 6
Owners of Zen - 9
Owners of Indica - 6
Owners of 800 - 4
Owners of other cars - 3
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Various Factors Important in Car Purchase..
Cost
Style
performance
Performance and Style
Performance and Cost
Style and Cost
Style Cost and performance
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FACTORS IMPORTANT IN A CAR PURCHASE
7%
7%
50%
12%
18%
3%3%
COST
STYLE
PERFORMANCE
PERFORMANCE AND
STYLE
PERFORMANCE AND
COST
STYLE AND COST
STYLE COST AND
PERFOMANCE
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What are the sources of advertising that you recall,
as a influencing factor to you?
Television Newspaper Hoardings Magazines Sponsorships Any other
35
73
20
7
0
10
20
30
40
50
60
70
80
PERCENTAGE OF
RESPONDENTS
1
INFLUENCERS
INFLUENCING FACTORS IN DECISION MAKING
FRIENDS
FAMILY
MEDIA
OTHERS
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SOURCES OF INFORMATION
21
27
35
22
3
27
0
5
10
15
20
25
30
35
40
1
SOURCE OF INFORMATION
NUMBER
OFRESPONDEN
TS
TELEVISION
MAGAZINE
FRIENDS
DEALERS
MECHANIC
OTHER CAR OWNERS
Source of Information for buying a car..
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Are you satisfied with your current car ?
Most of the small car consumers are somewhat happy
with their purchases. A probe into respondents
satisfaction level, ranking from 1 to 5 where 1 was
full satisfaction and 5 full dissatisfaction with theirs
cars, gave 70% as an average figure of satisfaction
level.
Out of a total of 27 respondents, 17 ranked theirsatisfaction level as 1, 5 ranked 2, 2 ranked 3, 2
ranked 4 and only one respondent showed null
satisfaction.
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WHICH CAR IS THE BEST IN OVERALLPERFORMENCE
26%
42%
34%
70%
SANTRO
INDICA
MARUTI-800
MARUTI ZEN
Which car is best in overall performance among
the 4 choices ?
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Conclusion and Recommendations..
Consumers of small cars are seeking a very good overall performance
in a car than any other attributes . Most of the consumers prefer Small cars and mid sized cars for their good
mileage, good acceleration, easy driveability, requiring small rooms for parking. Good looks hardly count for the buyers of small cars. Good after sales service and low maintenance in a vehicle is a garnish on
customers delight.
Safety and credit facility are almost ignored factors. Family has the highest influencing power in making a purchase decision for an
Indian consumer. Usually consumers get detailed information through friends, magazines, other
car owners and dealers. Maruti has got the highest advertisement coverage followed by Hyundai
and Indica. Indica and Santro has outscored Zen and Uno in brand recall with their
scintillating marketing and advertising strategies.Santro has created a niche position for itself as a celebritys car,
Shahrukh Khans car.
Zen as compared to Maruti 800 was not able to create such a brand name in theminds of consumers.
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Continued...
Zen and Santro are perceived as cars with a more feminine appeal. The dream cars of the consumers are high luxury cars like Mercedes S-class,
BMW, Ferrari, Pajero, Rolls Royce, Jaguar, Porsche Most of the respondents are in an income bracket of Rs.20001 to Rs.25000
and above Rs.25000. This indicates that most of the car owners belong toeither upper of upper middle class segment.Performance of a car clearly outweighs its style and cost on the consumers
list of priorities to buy a car. A mere 25% of respondents gave style and 30% gave cost as their reasons to
buy a car. 85% of respondents gave performance of a car as a factor formaking a purchase decision.
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Scope and limitations of the study...
Limited sample size, that is only 30 respondents.
Taking the convenience sampling might have led to some bias
as people with different age groups have different perception.
People with above age group of 35 and above have more
awareness than people between the age group of 20-35 years.
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Consumer Buying Process
Maruti 800
Santro
ZenIndica
Honda cityFord ikon
Esteem
Accent
Maruti 800
SantroZen
Indica
Honda city
Ford ikon
Maruti 800
SantroZen
Indica
Ford ikon
Maruti 800Santro
Zen
Indica
Santro
TotalSet
Awareness
Set
Consideration
Set Choice
SetDecision
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Thank You