Marathwada Shikshan Prasarak Mandal’s Deogiri Institute of Engineering and Management Studies, Aurangabad A Project Report On “ A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE .” Submitted by Mr. (ISHWAR D. RAJPUT) Roll no.Mktg-65 MBA 4 th semester Batch 2012-2013 In partial fulfillment of the completion of the course of Dr.Babasaheb Ambedkar Marathwada University, Aurangabad 1
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Marathwada Shikshan Prasarak Mandal’s
Deogiri Institute of Engineering and Management Studies, Aurangabad
AProject Report
On
“ A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE.”
Submitted by
Mr. (ISHWAR D. RAJPUT)
Roll no.Mktg-65MBA 4th semesterBatch 2012-2013
In partial fulfillment of the completion of the course ofDr.Babasaheb Ambedkar Marathwada University, Aurangabad
1
Marathwada Shikshan Prasarak Mandal’s
Deogiri Institute of Engineering and Management Studies, Aurangabad
A
Project Report
On
“ A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE”
Submitted by
Mr. (ISHWAR D.RAJPUT)
Roll no.Mktg-65
MBA 4th semester
Batch 2012-2013
In partial fulfillment of the completion of the course of
I hereby declare that I have formed, completed and written the project report
entitled “A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE” it has not been previously submitted for the basis of the award of any degree or other similar title of this for any other examining body or university.
Place: Aurangabad Name: ISHWAR D. RAJPUT
Date: /04/2013 Roll No.: Mktg-65
MBA 4TH SEM
Batch 2012-2013
5
TABLE OF CONTENTS
01 INTRODUCTUION 7INTRODUCTUION OF INDUSTRY 8-9HISTORY OF COMPANY 10-14
Public sources: mass media, consumer, rating organizations.
Experimental sources : Handling. Examine, using the product.
3. Evaluation of alternative:-
There is no single process used by all consumers by one consumer
in all buying situations. There is several First, the consumer
processes, some basic concepts are:
First, the consumer is trying to satisfy need.
Second, the consumer is looking for certain benefits from the
product solutions.
19
The marketer must know which criteria the consumer will
use in the purchase decision.
4. Choice of purchasing decision:-
From among the purchase of alternatives the consumer makes the
solution. It may be to buy or not to buy. If the decision is to buy.
The other additional decisions are:
Which types of bike he must buy?
From whom to buy a bike?
How the payment to be made? And so on.
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The marketer up to this stage has tried every means
to influence the purchase behavior, but the choice is properly
consumers. In the evaluation stage the consumer forms preferences
among the brands in the choice set. The consumer may also form
an intention to but the most preferred brand.
5. Post Purchase Behavior:-
After purchase the product, the consumer will experience the same
level of product. The Marketer’s job not end when the product is
buying must monitor post-purchase satisfaction, post-purchase
action, post-purchase use and disposal
Post Purchase Satisfaction:-
21
The buyer, S satisfaction is a function Of closeness between the
buyer, S expectation and the products Perceiver performance.
The larger the gap between expectation and performance, the
g greater the consumer dissatisfaction.
Post purchase Action:-
The Consumer, S satisfaction or dissatisfaction with the product
influence subsequent behavior. If the consumer satisfied, he or she
will exhibit a higher probability of purchasing the product again.
Dissatisfaction consumer may abandon and return the product.
Post-Purchase Use or Disposal :-
The marketer should also monitor new buyers use and
dispose of the product. If the consumer store the product in a close,
the product is probably not very satisfying. If the consumer throws
the product away, the marketer needs to know how they dispose of
it; especially it can be hurt the environment.
22
Characteristic of Buyer Behaviors
The chief characteristics of the buyers behaviors are as
follow:-
(1) It consists of mental and physical activities which consumers
undertake to get goods and services and obtain satisfaction from
them.
(2) It includes both observable activities such as walking through
the market to examine merchandise and making a purchase and
mental activities-such as forming attitudes, perceiving advertising
material, and learning to prefer particular brands.
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(3) Consumer behaviors are very complex and dynamic to
constantly changing. And therefore, management need to adjust
with the change otherwise market may be lot.
(4) The individuals specific behaviors in the market place is
affected by internal factor, such as need , motives, perception, and
attitudes, as well as by external of enviourmenatal influences such
as the family social groups, culture, economics and business
influences.
PROBLEM DEFINATION
24
PROBLEM DEFINATION
OBJECTIVE OF STUDY
LIMITATIONS OF STUDY
PROBLEM DEFINATION
To know the best consumer buying behavior and demand into
the minds of consumer of Aurangabad city because always
consumer say something and does something.There are many
companies manufacturing motorcycles into the market, at the same
time as there are many companies manufacturing motorcycles, idea
25
about thinking of customer on whether, what, how, and for whom
to purchase the motorcycle.
Therefore, research is required to measure present consumer
buying behavior at the purchase of Hero Honda bike.so the
researcher problem is to identify what are the criteria that
prospective customer takes into consideration before buying the
motorcycles.
SCOPE OF STUDY
The main scope of the study is limited to Aurangabad city.
It also analysis the benefits accruing to the company as a
result of those service.
26
This study has been made to find the level of satisfaction the
customer has regarding the service provider by bike place.
OBJECTIVES OF STUDY
To know market position of Hero Honda bike in the
market.
To know consumer behavior for purchase of two wheeler
bike.
Limitations of study
27
When the buyers are busy we can’t get accurate data from
them.
According to the time limit of our project we can cover
only the some area.
During survey some respondents may not give answer in a
proper manner.
RESEARCH METHDOLOGY
INTRODUCTION
RSEARCH DESIGN
28
SOURCES OF DATA
SAMPLING PLAN
DATA COLLECTION METHOD
RESERCH METHODOLOGY
(A)Introduction
Marketing research is the function which links the
consumer, customer and public to the marketers through
information used to identify and define marketing, opportunities
and problems, generates refine marketing action; monitor
marketing performance; and improve understanding of marketing
as a process.
29
Marketing research specifies the information required
to address these issues; designs the method for collection
information manages and implements the data collection process;
analysis the results and communication the findings and their
implication.
Research definition:
“Research is careful inquiry or examination to discover
new information and relationship and to expand and to verify
exiting knowledge,”
Research always starts with questions or a problem. Its
purpose is to find answer to questions through the application of
the scientific method. It is a systematic and intensive study
directed towards a more complete knowledge of the subject
studies.
30
(B) Research design
“Research design is the plan, structure and strategy of
investigation conceived so as to obtain answer to research question
and to control variance.”
- BY KERLINGER
From definition it is evident that research design is ore or less a
blueprint of research.
At the outset may be noted that there are several ways of
studying and tackling a problem. There is no signal perfect design.
The research design can be classified in to true broad categories:
(A) Exploratory
(B) Descriptive
(C) Casual
Exploratory research is focus on the discovery of ideas.
Exploratory research is carried out to define problems and
developed hypothesis to test later. An exploratory study is
generally based on the secondary data that are reading available. It
does not have to change his focus of direction, depending on the
availability of new ideas and relationship among variables.
31
Descriptive studies are undertaken in many circumstances.
Descriptive studies can be complex, determining a high degree of
scientific skill on the part of the researcher.
Casual research helps in determined cause and effect
relationship.Between two or more variables.
The present study seeks to find out the consumers attitude
towards buying of bike. The study also aims at findings out the
drawbacks of the marketing set up of Hero Honda PVT Ltd. So
this makes the study a descriptive one.
(D) Sources of Data
The sources of data collection methods are as follows.
a) Primary data :-
32
The primary data is that which details we collect first time
from the market and also used first time in the research. We also
say that the information is first time in the research decision. To
collect the primary data questionnaire is prepared structure non-
disguise questionnaire is prepared.
b) Secondary data :-
Secondary data are those data which are already collected by
someone for some purpose and are available for the present study;
secondary data are already collected by the company’s records and
other library’s books. When the secondary data are sufficient, the
researcher has to be satisfied with the primary sources of data.
Secondary data can be used as bases for comparison with primary
data have been collected by questionnaire.
33
(E) Data Collection Method
Researcher instruments is the tool by which the researcher
can do research on specific problems or objective. The most
popular researcher instrument for collection data is
“Questionnaire” for a particular investigation. It is simple for a
moiled set of questions presented to respondents for their answers.
Due to this flexibility, it is most common instrument used to
collect the primary data. During the pre- testing of questionnaire, I
seen the reaction of respondents and suggestions required to make
change in research instrument.
34
The questionnaire contains three types of questions.
Open-ended question :-
It is helpful in knowing what is uppermost in the mind of the
respondents. It gives complete freedom to the respondent.
Multiple-choice question :-
In this, the respondent is offered two or more choice.
(F) Sampling plan
Sampling is a process of obtaining. The information about
the entire population by examine a part of it .The effectiveness of
the research depends on the sample size selected for the survey
purpose.
(A) sample Site:-
The survey was conducted in Aurangabad CITY.
35
(B)Sampling Unit:-
It means “Who is to be surveyed”. Here target population
is decided and it is who are interested to purchase “Bike” and
sampling frame is developed so that everyone in the target
population has known chance of being sampled. So the survey is
conducted particularly in Aurangabad City.
(C)Sample size:-
For the purpose of proper survey, there is need of perfect
research instruments to find out sample size for more accurate
result about buying behavior of bike. The sample size is 50
respondents.
(D)Sampling Method:-
36
A Stratified random sample is one where the population is divided in to mutually exhaustive strata or sub-group and then a simple random is selected within each of strata on age groups, occupation etc. It may be noted that stratification does not means absence of randomness. I use a simple random sampling method.
37
1. AGE WISE CLASSIFICTIONAge (in year) No. of respondents Percentage (%)
18-20 15 30
21-25 18 3726-30 07 1531-35 04 0636-40 05 07
41& above 01 05Total 50 100
38
no of respondentes
18-2021-2525-3031-3536-4041abovetotal
(Sources: Questionnaire-personal Detail)Comment:- Above Graph shows are 30% of respondent in age group of 18-20, 37%of respondent in age group of 21-25, 15% of respondent in age group of 26-30, 7% and 5% respondent are come in 36-40 and 41&above.
2. OCCUPATION WISE Classification
39
Occupation No. of respondents Percentage (%)Servicemen 23 47
Student 15 30Business 6 12
Profession 04 08Others 02 03Total 50 100
(Sources: Questionnaire-personal detail)
Comment:- Above Chart Shows that 23 respondent are Servicemen out of 50 and 15 are the students. 6 respondents are businessman.
3. INCOME WISE CLASSIFICATION
no of respondentes
<=50005000-1000010000-1515-2000020above
40
(Sources: - Questionnaire – Personal Detail)
Income Level No. of respondents Percentage (%)<= 5000 27 54
Comment:- Above graph shows that 54% of respondents are income in <=5000 income level, Second 25% of respondents are of 5000-10,000 income level. 11% of respondents are of 10,000-15,000, 7% of respondents are of 15,000-20,000 and remain 3% of respondents above 20,000 of income level.
4. SOURCES OF FINANCE
Sources of Finance No. of respondents Percentage (%)By cash 22 45By Loan 28 55
Total 50 100
41
by cashby loan
0102030405060708090
%no of respondentes
(Sources: - Questionnaire—Que.8)
Comment:- Above Graph shows that 28 people purchase Hero Honda Bike For by Loan and 22 people purchase Hero Honda Bike from Cash.
5. ANALYSIS OF PREFERING AUTO MOBILE
Auto Mobiles No. of respondents Percentage (%)Raj Auto 20 20
Dhanluxmi 17 17Ratnaprabha 11 11
Other 52 52Total 100 100
42
no of respondentes
raj autodhanluxmiratnaprbhaother
(Sources: - Questionnaire – Que.7)
Comment:-
Above Chart shows that out of 100, 52 % respondents prefer other Automobile to purchase bike. 20 % respondents prefer Raj Automobile to purchase bike.
6. FROM WHICH SOURCE YOU PURCHSE BIKE?
43
Sources No. of respondents Percentage (%)News Paper 06 12
Comment:- Above graph shows that 48 % respondents are come to know from the ‘other’. Then 26 % respondents are come to know from the ‘friends’. 14 % & 12 % respondents are come to know from the T.V.Advertisement & news paper.
Comment: - Above Charts shows that 25 respondents are use Hero Honda Company’s Motorcycle. And 08 respondents are using Bajaj bikes.4. Who is decision maker for purchasing bike in your family?
Sources No. of respondents Percentage (%)Father 23 46Self 21 42
Mother 05 10Others 01 02Total 50 100
45
father self mother others
05
101520253035404550
no of respondents
%
no of respondents%
(Sources: - Questionnaire – personal detail & Que-4)
Comment:-
Above Graph shows that 46 % respondents take decision by father for purchasing bike. And 42 % respondents are take decision by self for purchasing bike.
5. WHAT FEATURES YOU CONSIDERS WHEN YOU PURCHASE BIKE PLEASE GIVES THE RANK.
46
(Sources: - Questionnaire – personal detail & Que-5)
Comment:-
Above chart show that more no of respondents are give more weight age to the price.
Sources: - Questionnaire – personal detail & Que-6)
Comment:-
49
Above chart shows that 15 respondents out of 50 are available who give Weight age on the excellent and second 18 respondents out of 50 are after service who gives Weight age on the Very Good, 12 respondents are Knowledge of salesman who give Weight age on the good, 13 respondents are service who give Weight age on the good, 15 respondents are Infrastructure who gives Weight age on the Very Good.
9. RATE THE FOLLOWING SCHEMES THAT ATTRACT YOU MOST.
Attributes Excellent Very Good
Good Average Poor Total
Festival Offer
21 11 06 07 05 50
50
Exchange Offer
07 16 15 06 06 50
Special Gift 10 20 15 10 05 50Cash Discount
06 10 09 17 08 50
Anniversary Offer
07 07 06 10 20 50
Total 51 64 51 40 44 250
51
festiva
l offer
exch
ange
offer
speci
al gift
cash disc
ount
annive
rsary
offer0
5
10
15
20
25
Excellentvery goog goodaveradgepoor
(Sources: - Questionnaire – personal detail & Que-9)
Comment:-
Above graph shows that in festival offer 20 respondents out of 50 are give a excellent, then in exchange offer 15 respondents out of 50 are give a very good rank, in special gift 15 respondents are give a good rank, in cash discount 34 respondents are give a average rank
10. RATE THE FOLLOWING FEATURE YOU HAVE PURCHASE HERO HONDA BIKE
milage Avilable Price After service Pick up Style0
10
20
30
40
50
60
poorAveragegoodvery goodExcellent
(Sources: - Questionnaire – personal detail & Que-10
Comment:-
53
Above graph show that respondents give more weight age to the price then after they give more weight age to the mileage before purchasing motorcycle.
Findings
The study shows that 26 respondents are using Hero Honda. The current trend is that respondents give maximum no of point
to price and mileage.
54
The study show that 24 respondents are come to know from “others” and 13 respondents are come to know from “friends” about Hero Honda bike.
The study shows that 27 respondents are purchase Hero Honda bike by Loan and 23 respondents are purchase Hero Honda bike by cash.
The study shows that 16 respondents are give point to mileage. The study shows that more no. of respondents gives more
weight age to price. The more no. of serviceman, Students, Businessmen, and others give more weight age to the price when Professionals give more weight age to the mileage.
The study shows that 23 respondents are father take a decision to purchase bike And 21 respondents are self take a decision to purchase bike.
The study shows that 15 respondents are give rank to available in show rooms and 18 respondents are give rank to after service.
55
SUGGESTIONS
56
1. Hero Honda should introduce a low price moped
2. For the promotion, company show make road-show that will
3. Increase the sales. The company should give more concentrate on the advertisement.
4. Hero Honda Company should implement a new strategy to reduce the competition and lead into the bike market.
5. As people expect more mileage per kilometer, company should increase the mileage of the hero Honda bike.
6. Hero Honda should make a sports bike like to Kawasaki Suzuki Hyabusa bikes which can run with maximum speeds.
SWOT AnalysisSWOT Analysis
57
Strengths
Ability to understand customer’s needs and wants
Recognized and established brand name
Effective advertising capability
Weaknesses
R&D is not close to the Hero manufacturing plant
Hero is vulnerable in the joint venture because
Honda Motor Company has so much power
OpportunitiesOpportunities
58
Global expansion into the Caribbean and Central Global expansion into the Caribbean and Central AmericaAmerica
Expansion of target market (include women)Expansion of target market (include women)
Become India’s leader in the scooter marketBecome India’s leader in the scooter market
ThreatsThreats
Honda Motorcycles and Scooters India can take Honda Motorcycles and Scooters India can take away market share and cause joint venture to go away market share and cause joint venture to go soursour
Bajaj Motors is a strong competitorBajaj Motors is a strong competitor
Bibliography
Marketing research, G.C.Beri, Third Edition, Tata McGraw Hill Publishing Company Limited, New Delhi, 2000
59
Marketing management, Philip Kotler, Twelth (Millennium) edition, Prentice-Hall of India Private Limited, New Delhi, 2003