Research_Methodology (1)

8/9/2019 Research_Methodology (1)

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INTRODUCTION

Dream-dream and dream, because dream gives vision, vision gives thoughtsand finally thoughts lead to the action". The introduction of the Nano receivedmedia attention due to its targeted low price. Further The economical cars asNano is expected to boost the Indian Economy as well as expand the Indian carmarket by 65%.Nano has been greatly appreciated by many sources and the media mainly for :

its low-cost

eco-friendly initiatives which include using compressed-air as fuel and

an electric-version (E-Nano).

Tata Group is expected to mass-manufacture the Nano in large quantities,particularly the electric-version, and, besides selling them in India, to also exportthem world-wide.

Indian Automobile Industry:According to the UNIDO International Yearbook of Industrial Statistics 2009,India features among the top 15 auto-makers. Currently, it ranks 11th in the worldin terms of car production and 13th in terms of commercial vehicle production,which includes both 2-wheelers and 4-wheelers. At the same time, the Indian carmakers are earning acclaim worldwide. India is being recognized as potentialemerging auto market. Foreign players are adding to their investments in Indian

auto industry. Within two-wheelers, motorcycles contribute 80% of the segmentsize.

India is the fourth largest car market in Asia - recently crossed the 1

million mark.

2/3rd of auto component production is consumed directly by OEMs.

.The car was envisioned by renowned industrialist, of the Tata Group and TataMotors, who has described it as an eco-friendly "people's car". Nano has beengreatly appreciated by many sources and the media for its low-cost and eco-

friendly initiatives which include using compressed-air as fuel and an electric-version. Tata Group is expected to mass-manufacture the Nano in very largequantities, particularly the electric-version, and, besides selling them in India, toalso export them world-wide.


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Background Of Study

Is the two NANO EFFECT dreading the TWO WHEELER SEGMENT?

The question is will Nano spark a car revolution on the streets that would have animpact on the two-wheeler segment. Is Nano is far safer than two-wheelerswhere the fatalityrate is double that of cars? Analysts say that even if Nanomanages to convert 10% of the two wheeler market of nine million, it will havealmost 50% share of the car market.

IS THE TATA NANO: PRODUCT OR SOCIAL INNOVATION?

"We observed families riding on two-wheelers the father driving the scooter, hisyoung kid standing in front of him, his wife seated behind him holding a littlebaby. It led to us wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family.

Nano was , however, focused on the 75% of the Indian population which stilltravels using two-wheelers (motorcycles, scooters) and three-wheelers, at a pricepoint of about $1,500. By delivering a $2,000 car, Tata Motors has changed thegame. It can now expect a huge customer migration from Honda and Suzuki-powered two-wheelers to Tata's Nano.

Two wheelers have inspired the Tata Nano.

Will the Tata Nano eat away sales from Two Wheelers inIndia..???

Some market Pundits have predicted that the Nano (which will priced fromaround 1.2 lakhs onwards), will wean away some customers from buying


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two wheelers. According to Previous Market Research , its a matter opento debate, how much the two wheeler market is going to be affected by theTata Nano.

As Nano have reached on road we have to seen a few of masses buy a

car so that they can take around their parents/families in it??. However, atthe same time they also keep a bike as well. Not because they are bikeenthusiasts but because a car cannot match, fuel efficiency and lowrunning costs of a bike. And it does not make sense for masses to taketheir cars everytime just for a short trip to the nearby store, office orgym.!!!!!

So even if the Nano might come at a price tag of around 1.2 Lakhs, or give20 Kmpl (as claimed), the consumer might still would not like to departwith his bike. But it will be definitely a good thing to see a family of 4(maybe 5 in some cases) in a car instead of on a scooter or a 100/125/150cc bike. Personally, the Nano will affect the above 150 cc bike segment.

Whether Economical Cars as Nano is going to change theautomobile market in India, It would cater to a typical middle incomeIndian family of four who wants to avoid rain, wind and dust. Its freedomfor four, according to Society of India Automobile Manufacturers(SIAM)..is it????

The 100-125 cc two-wheeler range, which comprises 90% of the two-wheeler market in terms of sales, could be severely affected with thelaunch of Nano or not?? Bike makers Hero Honda and Bajaj haverealised this and have jumped into the bandwagon of ultra small cars.Industry research organisation CRISIL, in a report, stated that the Nanomay bring 65 per cent more families into the range of those who can nowafford a car. The on-road price for a Nano is expected to be in the regionof Rs 1.3 lakh. This brings down the cost of ownership of an entry level carin India by 30 per cent, making a new car affordable to families withincome level of Rs 2 lakh, the Crisil research added. A car is much moresuitable, safer and a comfortable option than a two wheeler, in a costconscious nation like India, but there will always be a place for a two-wheeler. There will not be a large scale migration to the Nano. Both thebike and the entry level car segment would have its own niche customersin future. In the next five years the two wheeler segment would constitute

25% sales of the auto industry,

The Nano would cost roughly less than half its nearest competitor theMaruti 800 and just about double than that of a 150 cc bike. Two-wheelermanufacturers would now be forced to work on new technologies to makebetter motorbikes and scooters. This would also in turn influence the pricetag of the two-wheelers. It also proves that for frugal engineering, at leastIndian manufacturers can outdo anyone else in the world.


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After displaying his dream project at the Auto Expo. One Americanjournalist wrote that the Nano is Wal-Mart on wheels. Well, will this prodthe two wheeler industry in India to focus on an entry level bike that wouldcost Rs 10,000?

Problem Statement:

Whether NANO (Economical car) have an impact on Two

Wheeler Market???


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Research Methodology

The research has been conducted systematically in a phased manner. A

brainstorming session was held to formulate the research methods & to decide

upon the path to be followed. With a detailed secondary data review, the

research objective was structured & to get a much clear picture of as to what are

the various factors that can influence our study a exploratory research was done

in the form of focus group discussion. The details of this research are provided

further in this section.

Keeping in mind the results of the exploratory research the questionnaire was

structured and the primary data was collected. Hence the research has beenconducted in two phase and the results thus drawn have been explained in

further sections.

Objective of the research:

With the launch of four wheelers in a significantly lower price range (such as Tata

Nano, Nissan-Renault to be launched economical car) it has been speculated

that, these vehicles could seriously create a dent in two wheelers market. The

research is in this direction with prime objective as:

to study the impact of economical cars on two wheelers market

With a detailed review of secondary data as well as the outcomes of focus group

a more precise and clear objective is depicted. The initial research has

stimulated our view towards the possibility of a particular segment of market

being affected.

So the research has filtered down to two precise objectives in the form of

research questions these can be considered as our marketing research problem.

How demography of the consumer affects his vehicle buying decision.

What is the consumer preference based on different factors for selecting

a vehicle.

The hypotheses that can be drawn is


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H1: lower middle class income group people with a family of four to five

members will shift from a two wheeler to an economical car.

Identification & operationalisation of variables:

To identify the variables important for our research & to get a clear picture of

what are dependent variables and what are independent variables the

exploratory research was conducted. The various factors that came to our

attention are:

i. Age vii. mileage

ii. Gender viii. status

iii. Annual Income ix. brand

iv. Marital status x. service cost

v. Comfort xi. performance

vi. Price

The first four factors are important to understand the demography of the

respondent, the rest of the variables are the parameters which a person keeps in

mind while making his buying decision.

Operationalisation of these variables:

Age, gender, annual income, marital status is directly asked in thequestionnaire in the beginning.

Price has been operationalised by asking a ranking type question, a

semantic differential scale question, a dichotomous question regarding the

increase in price by a question on people preference with given budget.

Factors such as service effect, convenience, status, mileage, performance

are measured by using a ranking type question and also a comparison is

drawn for economical cars and two wheelers using a semantic differential

scale question.

Psychological effect of one lakh price tag has also asked to understand its

impact.


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DemographicsAge

gender

Annualincome

Maritalstatus

price

brand

status

comfort

performance

mileage

Service cost

Potentialcustomers

Possible impacton sales

Factors affecting buying decision Affected marketsegment

Overall impacton 2-wheeler

market

Research Model:

Mathematical Model:

Calc preference = W1*V1+W2*V2+W3*V3+W4*V4+W5*V5W1+W2+W3+W4+W5

Wi = wt. of ith variable

Vi = score of ith variable

Graphical Model:


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The above model clearly shows that the overall impact is dependent on the

consumer preference, which further depends on the demographics of the

customer and the factors affecting buying decision.

Hence it is derived that

Demographics & factors affecting buying decision are independent variables &

impact on two wheeler market is dependent variable.

Research Design:

Basically techniques for marketing research can be broadly classified into twoparts:

Qualitative techniques comprise of providing insights & understanding of

problem setting.

Quantitative techniques seeks to quantify the data & typically applies

some form of statistical analysis.

Also research can be divided as:

Exploratory Research

Conclusive Research

Descriptive

Causal

The research design used here are:


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Exploratory Research (Qualitative and secondary data) it has been used to

search through a problem or situation to provide insight & understanding. It wa

used for following purposes:

To define a problem more precisely

Develop hypotheses

To find out key variables & relationship for further examination

For qualitative research focus group technique is used. This has been explained

in detail in research instruments section.

Descriptive research (quantitative research)

The major objective of this research is to describe various market characteristics

& consumer behavior. It is conducted for following reasons:

To estimate the percentage of units in a specified population exhibiting a

certain behavior.

To determine the perception of product category.

The instrument used for descriptive research was questionnaires & technique

used was mall intercept & telephone interviews.

The detail of questionnaire has been explained in research instrument section.

Research Techniques:

After collecting data we have arranged and managed it on a SPSS sheet and

analysed it using various tool of this software. The basic research techniques

used are:

Descriptive analysis here we have calculated the frequency for the

respondents reply to each question. This is the most important analysis

as far as marketing research is concerned because we are basically

concerned with what customer thinks of the problem. Along with it wehave also calculated various measures of location and dispersion to

summarize the data in a more understandable form. Help of bar graphs

and pie chart has also been taken.


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Cross tabulations cross tabs give the relation between the two variables

in a tabular form. It is a very effective tool for data analysis as we can

simultaneously study two or three variables are draw conclusions based

on it.

Chi square test it is done to understand if there is any significant relation

between the variables which have been used in the cross tabs.

T test it is the most widely used test for inferential statistics. Here we

try to draw out whether the mean calculated same as that of the mean of

population. Depending on the situation we can use three types of T tests

as follows:

One sample T test when we know the population mean (test value) and

comparison is to be made with respect to that value.

Independent sample T test when we have to infer that the two group of

samples drawn are from same population or from different population. Or

whether the two population think in a similar manner or not.

Paired sample T test used when same population is analyzed on same

variable at two different times or using different questions.

SAMPLING TECHNIQUE

Population: NCR RegionSample Size: 75

The Sampling Technique that is used in the project:1. Stratified Sampling

2. Simple Random Sampling


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1. Stratified Sampling:

Stratification is the process of grouping members of the populationinto relatively homogeneous subgroups before Sampling.

The basic Variable considered while dividing into sub groups isAGE. Based on age we divided Total population in to 2 groups:

Case i: AGE GROUP (30 Yrs) ---- sample size (30)

The Age group is taken into consideration because the decision

making and the interest changes of a human after a particular age

group.

Here population below 30 yrs are almost single or just married and

above 30 yrs are mostly married. So there will be change in the

perception of a person who is married and unmarried.

Hence, Stratified sampling technique is adopted as a primary Sampling

technique in our Research work.

2. Simple Random Sampling:

This Sampling Technique is used to select the respondents from particular

strata.

Here, each individual is chosen randomly because every one has got thesame probability of getting selected.

This is the Secondary Sampling Technique used in our Research work.

Research Instruments:


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Instruments are the tools which help in research & which basically help in data

collection. The two instruments used are described below:

Focus Group Discussion (for exploratory research) the research was

conducted in three phases to get a much clear picture of our research objective.

The first group consisted of boys of age group 20-25

The second group consisted of girls of age group 20-25

The third group consisted of middle aged people

This was done in order to get a clear idea as to what could be different factors

which could appeal to demographically different people.

The results of these discussions helped us in formulating questionnaire & in

focusing our research in right direction.

The tool was very successful as far as exploratory data collection is concerned.

The discussion aimed at drawing out the factors responsible in deciding the

consumer behaviour.

The main outline of discussion are-

1. Do you think economical cars make an impact on two wheeler market?

2. What factors do you consider while purchasing a vehicle?

3. Is the reliability of these newly launched cars a matter of concern?

The results drawn from focused group discussion were:1. There possibly a group of people which will be affected with these vehicles

hence converting there decisions from two wheeler to a four wheeler.

So this resulted simulated our research towards the identification and justification

of the said segment.

2. Discussion also described various factors to be taken into consideration

while going for the purchase of a vehicle.

Questionnaire (Instrument for descriptive research):

The questionnaire made basically focuses on two things:

1. To understand the segment of people who prefer economical cars over

two vehicles.

2. Will the preference seriously have any impact on two wheeler market?


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The questionnaire consists of 14 questions to measure the above given

objective.

Question 1 and 2 only uses a nominal scale and they are select one answer type

question

Question 3 it is on ordinal scale, it is a rank order type question

Question 4 and 5 are again dichotomous type question

Question 6-14 are based on semantic differential scale.

The sample questionnaire is attached in the annexure along with its scoring

sheet.

The questionnaire was used as a tool for data collection using a stratified

sampling technique. The data thus collected was analyzed quantitatively using

SPSS.

This is most important of our research. Using sample size determination we

decided to get 75 questionnaires filled and then analyzed the same.


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ANALYSIS

Descriptive statistics for all questions

Statistics

bikes_endangered prefer_nano convenience_nano

price_

effect

mileage_2w

h

service_affe

ct

status_affe

ct

psych

ologic

al

N Valid 73 73 73 73 73 73 73 73

Missing 2 2 2 2 2 2 2 2

Mean 3.33 3.56 3.90 5.30 2.93 4.74 4.27 5.01

Mode 2 1 3a 4 1 5 2a 6

Std. Deviation 1.772 1.958 1.827 6.273 1.735 1.491 1.924 1.720

a. Multiple modes exist. The smallest value is shown

Here it is clearly seen that:

Bike market is not much affected.

In all people have little preference towards nano

They dont find nano to be very convenient.

Also the fact that bikes have a higher mileage clearly make them a winner

over peoples buying of car

Service and status are the factors that also affect people buying behavior

although in ranking question we find that it had least weightage

The most important conclusion drawn is that price is the biggest factor for

people to prefer it as we have seen a avg score of 5.3, also here it is seen

that the 1 lakh price tag had a psychological impact and thus affected the

buying behavior of people.


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a. Convenience

convenience_nano

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1 8 10.7 11.0 11.0

2 11 14.7 15.1 26.0

3 16 21.3 21.9 47.9

4 5 6.7 6.8 54.8

5 16 21.3 21.9 76.7

6 12 16.0 16.4 93.2

7 5 6.7 6.8 100.0

Total 73 97.3 100.0

Missing System 2 2.7

Total 75 100.0


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Statistics

convenience_nano

N Valid 73

Missing 2

Mean 3.90

Mode 3a

Std. Deviation 1.827

a. Multiple modes exist. The smallest

value is shown

Interpretation: for the variable convenience the mode is 3 and the mean score

is 3.90 which clearly indicates that people dont find nano very convenient.

b. Price effect

Statistics

price_effect

N Valid 73

Missing 2

Mean 4.62

Mode 4



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Price_effect


Cumulative

Percent

Valid 1 6 8.0 8.2 8.2

2 4 5.3 5.5 13.7

3 7 9.3 9.6 23.3

4 16 21.3 21.9 45.2

5 15 20.0 20.5 65.8

6 12 16.0 16.4 82.2

7 13 17.3 17.8 100.0

Total 73 97.3 100.0


Total 75 100.0

Interpretation: though the mode is 4 we can see from the frequency table that

40 people have agreed that price plays an important role in their buying

behaviour .

c. Prefer nano:


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prefer_nano


Cumulative

Percent

Valid 1 17 22.7 23.3 23.3

2 10 13.3 13.7 37.0

3 6 8.0 8.2 45.2

4 13 17.3 17.8 63.0

5 14 18.7 19.2 82.2

6 8 10.7 11.0 93.2

7 5 6.7 6.8 100.0

Total 73 97.3 100.0


Total 75 100.0

Interpretation: we can see both from the value of mode-1 and mean-3.56 that

people generally do not prefer nano over the two-wheelers. There is a positiveresponse for nano for the variable price but by the response for this question we

can see that all the factors together play an important role in determining the

buying behavior of people.

Statistics

prefer_nano

N Valid 73

Missing 2

Mean 3.56

Mode 1



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d. mileage:

Statistics

mileage_2wh

N Valid 73

Missing 2

Mean 2.93

Mode 1



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mileage_2wh


Cumulative

Percent

Valid 1 20 26.7 27.4 27.4

2 16 21.3 21.9 49.3

3 11 14.7 15.1 64.4

4 10 13.3 13.7 78.1

5 8 10.7 11.0 89.0

6 7 9.3 9.6 98.6

7 1 1.3 1.4 100.0

Total 73 97.3 100.0


Total 75 100.0

Interpretation: we can see from the values of mean and mode that mileageis a very important factor which gives a competitive edge to the two-wheelers.

e. Service effect:


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Statistics

service_affect

N Valid 73

Missing 2

Mean 4.74

Mode 5


service_affect


Cumulative

Percent

Valid 1 3 4.0 4.1 4.1

2 4 5.3 5.5 9.6

3 6 8.0 8.2 17.8

4 13 17.3 17.8 35.6

5 24 32.0 32.9 68.5

6 16 21.3 21.9 90.4

7 7 9.3 9.6 100.0

Total 73 97.3 100.0


Total 75 100.0

Interpretation: from the frequency table we can see that 47 people say that

service is an important variable which decides their buying behavior but when

compared with other factors it is less important.


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f. Status:

Statistics

status_affect

N Valid 73

Missing 2

Mean 4.27

Mode 2a


a. Multiple modes exist. The smallest

value is shown


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status_affect


Cumulative

Percent

Valid 1 3 4.0 4.1 4.1

2 16 21.3 21.9 26.0

3 11 14.7 15.1 41.1

4 9 12.0 12.3 53.4

5 7 9.3 9.6 63.0

6 16 21.3 21.9 84.9

7 11 14.7 15.1 100.0

Total 73 97.3 100.0


Total 75 100.0


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Interpretation: we can interpret that status is an accountable factor but itdiffers among different people as some say that it affects their buying behaviorand some dont. The mean is 4.27 and we can interpret the above from the bargraph.

g. Bike Market Endangered

Statistics

bikes_endangered

N Valid 73

Missing 2

Mean 3.33

Mode 2


bikes_endangered


Cumulative

Percent

Valid 1 13 17.3 17.8 17.8

2 16 21.3 21.9 39.7

3 14 18.7 19.2 58.9

4 7 9.3 9.6 68.5

5 11 14.7 15.1 83.6

6 11 14.7 15.1 98.6

7 1 1.3 1.4 100.0

Total 73 97.3 100.0


Total 75 100.0


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Interpretation: we can see from the bar graph that majority of the people saythat there is no negative effect of nano on the sales of two-wheelers. Mode valueis 2 and the mean is 3.33 which indicates that bike market is not at allendangered.

h. Psychological feeling

Statistics

psychological

N Valid 73

Missing 2

Mean 5.01

Mode 6



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psychological


Cumulative

Percent

Valid 1 4 5.3 5.5 5.5

2 4 5.3 5.5 11.0

3 6 8.0 8.2 19.2

4 9 12.0 12.3 31.5

5 15 20.0 20.5 52.1

6 20 26.7 27.4 79.5

7 15 20.0 20.5 100.0

Total 73 97.3 100.0


Total 75 100.0

Interpretation: from the survey it is clear that the psychological feeling ofpeople is an important factor which was rightly identified and the price 1lakh isthe result of that identification.


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Cross Tabulations

Annual income- preference Age group

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

prefer_nano * annual_income

* age

72 96.0% 3 4.0% 75 100.0%

prefer_nano * annual_income * age Crosstabulation

Count

age

annual_income

Total

less than 1.5

lakhs 1.5 - 3 lakhs 3 - 5 lakh above 5 lakhs

less than 30 prefer_nano 1 4 2 3 5 14

2 0 4 2 2 8

3 0 0 2 2 4

4 4 2 2 1 9

5 0 1 1 6 8

7 0 0 1 0 1

Total 8 9 11 16 44

more than 30 prefer_nano 1 0 0 0 2 2

2 0 1 0 1 2

3 0 0 2 0 2

4 0 1 0 3 4

5 0 1 2 3 6

6 1 1 5 1 8

7 0 4 0 0 4

Total 1 8 9 10 28


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Interpretation: This again shows that annual income is not a determinant for

peoples preference towards nano especially when we take the case of the age

group below 30 . Also it is clear from here that people of age group more than 30

prefer it more and income has some influence in this case as income group of

1.5-3lacs prefer it more than others do.(done a t-test also)

Price hiked*prefer nano

price_hiked * prefer_nano Crosstabulation

Count

prefer_nano

Tot1 2 3 4 5 6 7

price_hiked yes 0 1 1 3 5 4 2

no 17 9 5 10 9 3 3

32 0 0 0 0 0 1 0

Total 17 10 6 13 14 8 5


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Interpretation: it can inferred that most of the people would not prefer nano ifthe price is increased. Even the who preferred it earlier would not go for nano ifthe price is hiked. So we can say that price is a prominent variable whichinfluences peoples buying behavior.

Reliability Test

Case Processing Summary

N %

Cases Valid 72 96.0

Excludeda 3 4.0

Total 75 100.0

a. Listwise deletion based on all variables in the

procedure.


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Reliability Statistics

Cronbach's

Alpha N of Items

.641 10

Interpretation - As the cronbach alphas value is greater than 0.6 the data is

considered to be reliable.

T Tests:

Var. measured Mean Standarddeviation

T score Sig. level(chosen)

Sig.level(computed)

Preference vsage group#

2.84 1.67 4.706** .05 .0004.79 1.771

Preference vsmaritalstatus##

3.06 1.864 3.332** .05 .001

4.58 1.767

Preference vsincome###

3.53 1.863 .173 .05 .8633.62 2.155

1. T- test of preference of Nano based on the age groups:The test shows that the T score is significant which means we can accept the

alternate hypotheses and it can be concluded that the population can bedifferentiated on the basis of age group i.e. people lying in age group of less than30 dont prefer nano as compared to people in the age group of greater than 30.

Group Statistic

age N Mean Std. Deviation Std. Error Mean

prefer_nan

o

less than 30 44 2.84 1.670 .252

more than 30 28 4.79 1.771 .335

Independent T Test


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3. preference of nano on the basis of annual income:The test shows that the T score is not significant when we try to differentiate thecustomers on the basis of annual income. It means that we should assept thenull hypotheses which is the population is same. It means that the income hasnot much effect on the peoples preference towards the car.

Group Statistics

annual_

income N Mean Std. Deviation Std. Error Mean

prefer_nano >= 3 47 3.53 1.863 .272

< 3 26 3.62 2.155 .423

Independent Samples Test

Levene's

Test for

Equality

of

Variances t-test for Equality of Means

95% Confidence Interval of

the Difference

F Sig. t df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference Lower Upper

prefer_nan

o

Equal

variances

assumed

.617 .435 -

3.332

71 .001 -1.522 .457 -2.433 -.611

Equal

variances

not

assumed

-

3.395

48.062 .001 -1.522 .448 -2.424 -.621


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Levene's

Test for

Equality of

Variances t-test for Equality of Means

95% Confidence

Interval of the

Difference

F Sig. t df

Sig.

(2-

tailed)

Mean

Difference

Std. Error

Difference Lower Upper

prefer_nan

o

Equal variances

assumed

.637 .427 -.17

3

71 .863 -.083 .482 -1.044 .877

Equal variances not

assumed

-.16

6

45.696 .869 -.083 .503 -1.095 .928

4. Paired sample T test for calculated preference score and observedscore:As per the described mathematical model a score for preference for eachrespondent has been calculated and comparing it with observed score we findthat there is a significant correlation between the two scores.

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1 prefer_nano 3.56 73 1.958 .229

calc_preference 4.2301 73 1.82295 .21336

Paired Samples Correlations

N Correlation Sig.

Pair 1 prefer_nano &

calc_preference

73 .531** .000


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Paired Samples Test

Paired Differences

t df

Sig. (2-

tailed)Mean

Std.

Deviation

Std. Error

Mean

95% Confidence Interval

of the Difference

Lower Upper

Pair

1

prefer_nano -

calc_preference

-.6684

3

1.83424 .21468 -1.09639 -.24047 -3.114 72 .003

From the above tables we see that the mean of two values is significantlydifferent which show not be the case, on further analysis we found that the causeof error may be attributed to the incorrect framing of two questions in ourquestionnaire (Q 12 &13). We have made these questions as generalized onesin place of it they should have been more specific in direction top nano.In order to justify the above argument we again calculated the preference score

leaving aside both thses factors the new results are shown below:

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1 prefer_nano 3.56 73 1.958 .229

calc_pref2 4.1104 73 2.47371 .28953

Paired Samples Correlations

N Correlation Sig.

Pair 1 prefer_nano & calc_pref2 73 .460** .000

Paired Samples Test

Paired Differences

t df

Sig. (2-

tailed)Mean

Std.

Deviation

Std. Error

Mean

95% Confidence Interval of the

Difference

Lower Upper

Pair

1

prefer_nano -

calc_pref2

-.5487

7

2.34480 .27444 -1.09586 -.00169 -2.000 72 .049

From the above tables we see that the correlation is still significant at 95%confidence level and also the T test is giving the result that the scores aresame with 99% confidence.


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Is bike market endangered?

bikes_endangered


Cumulative

Percent

Valid 1 13 17.3 17.8 17.8

2 16 21.3 21.9 39.7

3 14 18.7 19.2 58.9

4 7 9.3 9.6 68.5

5 11 14.7 15.1 83.6

6 11 14.7 15.1 98.6

7 1 1.3 1.4 100.0

Total 73 97.3 100.0


Total 75 100.0


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Group Statistics

age N Mean Std. Deviation Std. Error Mean

bikes_endangered less than 30 44 3.41 1.796 .271

more than 30 28 3.29 1.740 .329


LTEV t-test for Equality of Means

95%

Confidence

Interval of the

diff.

F Sig. t df

Sig.

(2-

tailed

)

Mean

Differenc

e

Std.

Error

Differenc

e

Lowe

r Upper

bikes_endanger

ed

Equal variances assumed .101 .752 .288 70 .774 .123 .429 -.732 .979

Equal variances not

assumed

.290 58.99

3

.773 .123 .426 -.729 .976

Interpretation: It is observed that most of the people indicate that the bike

market would not be affected as clear from the bar chart and also the mean

score is coming towards not affected side. Also we see from t test that people of

both age groups feel the same.


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CHI-SQUARE TEST

1) Mileage* prefer nano

mileage_2wh * prefer_nano Crosstabulation

Count

prefer_nano

To1 2 3 4 5 6 7

mileage_2wh 1 8 3 1 2 3 2 1

2 6 2 0 2 5 1 0

3 0 1 0 5 3 2 0

4 1 1 2 1 1 2 2

5 1 1 1 3 1 0 1

6 1 1 2 0 1 1 1

7 0 1 0 0 0 0 0

Total 17 10 6 13 14 8 5

Chi-Square Tests

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 41.684a 36 .237

Likelihood Ratio 42.987 36 .197

Linear-by-Linear

Association

2.311 1 .128

N of Valid Cases 73


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Interpretation: we can see that the significance level of pearson chi-square is .237 which indicates that people preferring nano is independent of the variablemileage.

2) price* prefer nano

price_effect * prefer_nano Crosstabulation

Count

prefer_nano

Tota1 2 3 4 5 6 7

price_effect 1 4 2 0 0 0 0 0

2 2 2 0 0 0 0 0

3 2 2 1 2 0 0 0

4 3 1 2 3 7 0 0

5 2 2 3 3 3 2 0

6 1 1 0 3 2 2 3

7 3 0 0 2 2 4 2

Total 17 10 6 13 14 8 5

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)



Linear-by-Linear Association 20.350 1 .000

N of Valid Cases 73

a. 49 cells (100.0%) have expected count less than 5. The minimum

expected count is .27.


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Interpretation: the significance level of pearson chi-square is .029 which clearlyindicates that the preference of nano is dependent on the variable price.

3) Marital status*prefer nano


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marital_status * prefer_nano Crosstabulation

Count

prefer_nano

Total1 2 3 4 5 6 7

marital_status unmarried 15 8 4 10 8 1 3 49

married 2 2 2 3 6 7 2 24

Total 17 10 6 13 14 8 5 73

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)




N of Valid Cases 73

a. 8 cells (57.1%) have expected count less than 5. The minimum expected

count is 1.64.

Interpretation: the pearson chi-square value obtained is .012 which shows thatthe two variables are dependent . The bar chart shows the marital status hasaffected the buying behavior of people.


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4) annual_income * prefer_nano

Crosstab

Count

prefer_nano

Total1 2 3 4 5 6 7

annual_incom

e

less than 1.5

lakhs

4 0 0 4 0 1 0 9

1.5 - 3 lakhs 2 5 0 3 2 1 4 17

3 - 5 lakh 3 2 4 2 3 5 1 20

above 5 lakhs 8 3 2 4 9 1 0 27

Total 17 10 6 13 14 8 5 73

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)


Likelihood Ratio 39.585 18 .002Linear-by-Linear Association .067 1 .796

N of Valid Cases 73

a. 26 cells (92.9%) have expected count less than 5. The minimum expected

count is .62.


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Interpretation: the value of pearson chi-square is .004 which shows that boththe variables are dependent on each other and annual income does affect thebuying behavior of people.

5) age * prefer_nano

Crosstab

Count

prefer_nano

Total1 2 3 4 5 6 7

age less than 30 14 8 4 9 8 0 1 44

more than 30 2 2 2 4 6 8 4 28

Total 16 10 6 13 14 8 5 72


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Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)




N of Valid Cases 72

a. 7 cells (50.0%) have expected count less than 5. The minimum expected count

is 1.94.

Interpretation: the value of pearson chi-square is .001 shows that age is a veryimportant factor determining the buying behavior of consumers. The age groupabove 30 prefers nano more than that of age group below 30.


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RESULTS AND DISCUSSION

Based on the data analysis we have inferred the following result:

Price has been found to be the most important factor as it has got the

highest mean score in ranking type questions. Also we have seen that

almost 80% of people said that they will not prefer Nano if its price is

hiked.

About 70% of the people agree that the price has created an

psychological impact on the minds of people.

Age group is another variable which has an effect on the consumers

buying decision as evident from the T test which shows that there is asignificant difference in the mean score of preference for the people below

30 years of age & above 30 years of age.

From the Chi square test performed based on annual income and people

preference we find that there is dependency of preference on the income.

Also from the cross tab of age*annual income*preference we find that

most of the people who prefer nano lie in the middle income strata & are

more than 30 years of age.

Only about 30% people feel that bike market would be seriously affected

with the introduction of low cost cars.

As per our hypotheses the married people have a greater preference to

shift towards the four wheeler as evident from the independent sample T

test for marital status and preference score. The significance level comes

out to be 0.001 which shows that we can divide our population based on

their marital status.

Reliability test value for our questionnaire comes out to be 0.641 which is

well in a safer range.

Mileage is one factor that goes against the economical cars as it runs

about a third of what a bike could do.


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CONCLUSIONS

Based on the result of the study we can comfortably conclude that People dont expect much from economical cars in terms of convenience,

performance etc but the most important c onsideration is price. If the price

is increased even by 10000 or 20000 it will greatly hamper the sales of

economical cars.

The customers of economical cars are the people who have a family of

more than two-members and who lie in the middle income group.

The study also shows that bike market will not be affected much as even

the people of the above mentioned segment do not have confidence in

these vehicles and hence may not convert.

RECOMMENDATIONS

Most important thing for nano is to maintain its price of 1lac.

Should focus on proving their reliability.

Their promotional strategies should say that they comply with internationalstandards of safety and emissions.

SCOPE

The study enables us to know on what basis the buying behavior of

people varies.

This study can be extended to various automobile segments.

It can help the automobile makers to rightly position their product in themarket and to the right set of customers.

It can help them to concentrate on the most important variables from the

consumer point of view to give them maximum satisfaction.


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LIMITATIONS

Research is done only considering the Delhi-NCR region. Sample size is very less.

Inequality in sample distribution.

In 1lac price tag only one car i.e, nano is present, thus the scope becomes

narrow.

All the variables are not taken into consideration.

REFERENCES

1. www.tata.com

2. www.autoindia.com

3. www.economictimes.indiatimes.com

4. www.bsmotoring.com (November 2009)

5.

www.blsmartbuy.com (January 2010)6. www.cartradeindia.com

7. www.economist.com
http://www.tata.com/http://www.autoindia.com/http://www.economictimes.indiatimes.com/http://www.bsmotoring.com/http://www.blsmartbuy.com/http://www.cartradeindia.com/http://www.economist.com/http://www.tata.com/http://www.autoindia.com/http://www.economictimes.indiatimes.com/http://www.bsmotoring.com/http://www.blsmartbuy.com/http://www.cartradeindia.com/http://www.economist.com/


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APPENDIX

QuestionnaireAmity Business School

Note: All the data collected herein is for the research purpose and it is assuredthat the identity of respondent would not be revealed or misused.Its a comparative study so please answer the questions keeping in mind the twowheelers.

Respondent: Date:Reference no.:

Gender: Age:Marital Status: 1. Unmarried2. Married (Please specify the no. of family members

)

1. The approximate family income (per annum):

a. Less than 1.5 lakhs b. 1.5 3 lakhs c. 3 5 lakhs d.

Above 5 lakhs

2. What do you presently own:a. atwo wheeler b. a four wheeler c. both d. none(Please specify the model )

3. What are the factors you consider while buying an automobile (rank

according to priority 1 being most appropriate and 7 being the least):

a. Convenience & comfort

b. Price

c. Mileage

d. Brand

e. Performance (power & speed)

f. Service & maintenance cost


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g. Status

(Any other please specify )

4. What would you prefer to buy if you have a budget of one lakh:

a. Tata Nano b. two wheeler c. a second hand car

5. Do you still go for NANO, if the price exceeds Rs.1.5 lakhs? a. yes b. No

6. I would prefer Nano.

Strongly agree 1 2 3 4 5 6 7 StronglyDisagree

7. Nano can be rated higher on convenience.Strongly agree 1 2 3 4 5 6 7 StronglyDisagree

8. Lower price of Nano enables me to prefer it


9. riding a bike makes me feel the spirit of youth


10. higher mileage gives a competitive edge to two wheelersStrongly agree 1 2 3 4 5 6 7 StronglyDisagree11. the bike market has been endangered.Strongly agree 1 2 3 4 5 6 7 StronglyDisagree12. Service and maintenance cost is one factor which affects your buyingbehaviourStrongly agree 1 2 3 4 5 6 7 StronglyDisagree13. owning a four wheeler (economical car) is a status symbol for me


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Strongly agree 1 2 3 4 5 6 7 Strongly

Disagree

14. One of the major factors which Tatas cashed is the psychological feeling

of people (through pricing).

Strongly agree 1 2 3 4 5 6 7 Strongly

Disagree

ARTICLES

Article-1

Tata Nano heralds new era for Asian car brands

The Indian group is producing the cheapest car in the world. The potential for

Asias masses is huge, writes Ella Fitzsimmons

The emergence of a middle class fed up with bikes meansthere is real potential for the Nano

The Tata Nano the Indian conglomerates soon-to-launch car for the masses

has been labelled the Model T for the 21st century.Available at just $2,500, itis billed as the worlds cheapest car.The potential is for a totally new market

segment first in India,then in Asias other emerging markets.The question is,

how viable is the proposition? And what are rival car brands going to do about it?

While a legal battle has delayed production beyond the October 2008 target date,

the Nano is expected to roll off production lines soon to an eager public.There

are currently around 60 million scooters in India, and a lot of those people dream

of owning a car, says Shiv Sethuraman, CEO of TBWA India.The Suzuki Maruti

800 was the first step of democratising car ownership in India and the Tata

Nano will be next. Launched in 1984,the Maruti 800 retails at about $4,500.

Furthermore, the Nano prototypes are around 20 per cent more spacious inside,

offering an extra selling point beyond price for families. There is potential beyond

India. Developed markets such as Hong Kong or Japan are unlikely to take to the


52/53

Nano, and Chinas car market is crowded enough already.But Thailand an

emerging economy without its own car maker is the sort of market in which the

brand could work. Tata has submitted paper to Thailands eco-car project, so

that appears to be in the works already,says Sethuraman. Other Southeast

Asian nations may be next in line, says Matthew Godfrey,CEO of Publicis Asia-

Pacific.

Markets like Indonesia and Vietnam dont necessarily have huge manufacturing

capabilities and as you see the emergence of a middle class fed up with

motorbikes,I think theres real potential for a car like the Nano,he says. The

Nano, then, could transform car marketing in the region. Rival car makers are

working on their responses. Renault-Nissan is teaming up with Indian motorcycle

producer Bajaj to enter the local market with an ultra-cheap car of its own.Were

working with Bajaj to make use of their frugal engineering skills and technology,

while were supplying some financial backing, a strong distribution system and

potential expansion to other markets, says Simon Sproule, corporate vice-

president of global communications at Nissan. This model is expected to launch

before the end of 2012. All manufacturers are looking at low-cost entry cars,

adds an industry source,noting that Hyundai is believed to be working on a

model, and several domestic Chinese Chinese manufacturers are also exploring

ultra-cheap options. However, all will not be smooth sailing for these new brands.

One challenge will be marketing the cheapest car available as an aspirational

status symbol,as well as providing attractive financing packages. A further

challenge is the weakness of existing infrastructure in developing markets.

Another potential problem for the pioneering ultra-cheap cars is durability

especially in light of the fact that the cars are primarily aimed at first time

buyers.According to Sethuraman, the Tata Nano has built-in brand equity,thanks

to the high esteem in which the Tata familys businesses are held.However, the

proof of the Nano will bewhether it survives Indias roads. This is obviously a

concern close


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to the hearts of many car manufacturers. While Volkswagen has an ever more

diverse portfolio, it wont do anything to endanger its central brand equity

which lies in high-quality German engineering, says Kate McArthur, senior

strategic planner at DDB Hong Kong, which works with the car maker.

Nevertheless, if the Nano succeeds it could open up an entirely new market of

drivers in Asia.And that is something no car brand will want to ignore.

Research_Methodology (1)

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