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A study on customer purchase decision for Bajaj &

Yamaha bikes with respect to Indore City.

A SYNOPSISFORMASTER OF BUSINESS ADMINISTRATION

Submitted to

DEVI AHILYA VISHWAVIDHALAYA, INDORE

RESEARCH SUPERVISOR RESEARCHER

Sonali Thakur Sandeep Chaurasiya

Lecturer of Marketing MBA 2nd yearDMS, Truba College (Marketing & Finance)Indore. Roll No. 9170027

RESEARCH CENTER

TRUBA COLLEGE OF ENGINEERING AND TECHNOLOGYINDORE

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INDEX

Serial No. Particulars Page No.

1. Introduction

2 Literature Review

3. Objectives

4. Hypothesis (estimation of result)

5. Research methodology

6. Scope of study

7. Limitations

8. Suggestions

9. Conclusion

10. Bibliography

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INTRODUCTION

Indian Two-Wheeler Industry:

The Indian two-wheeler industry has come long way since its humblebeginning in 1948 when Bajaj Auto started importing and selling VespaScooters in India. Since then, the customer preferences have changed infavour of motorcycles and gearless scooterettes that score higher ontechnology, fuel economy and aesthetic appeal, at the expense of metal-

bodied geared scooters and mopeds. These changes in customer preferenceshave had an impact on fortunes of the players. The erstwhile leaders haveeither perished or have significantly lost market share, whereas new leadershave emerged.

Rising income levels, reducing excise duties, higher loan tenure and loan-to-value offered by the financing companies have all fuelled the growth of two-wheeler sales in the country. Besides, mounting traffic chaos and limited

parking space has also increased the demand for two-wheelers fromhouseholds that can afford or actually do own a car. Furthermore, withincreasing women working population, changing social philosophy and

broad-mindedness, the penetration of two-wheelers that is currently atabysmally low level is expected to increase significantly going forward.

CARE Research has developed a statistical model that attempts to forecastthe domestic two wheeler sales on the basis of ownership cost and the target

population that includes young populace that can afford but do not own atwo wheeler. Other qualitative factors like macro-economic outlook,consumer confidence, willingness of vehicle financers to finance TWs, etc.have also been quantitatively built in demand forecasting model.

CARE Research foresees the growth of two-wheeler sales to be healthyduring the period FY09-14, albeit with some short-term hiccups. Accordingto CARE Research, rural India would drive the growth, whereas the

opportunity in urban India, especially bigger cities, is limited.

Abundant and low cost labour coupled with local availability of rawmaterials like steel, aluminium and natural rubber has placed India amongstthe low cost producing centres of two-wheelers. Consequently, CAREResearch anticipates buoyant growth in two-wheeler exports as well.

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Bajaj Auto

Bajaj Auto is a major Indian automobile manufacturer started by aRajasthani merchant. It is world's fourth largest manufacturer of two-wheelers and India's second largest two wheeler manufacturer and theworld's 4th largest two- and three-wheeler maker. It is based in Pune,Maharashtra, with plants in Akurdi and Chakan (Pune), Waluj (nearAurangabad) and Pantnagar in Uttaranchal. Bajaj Auto makes and exportsmotorscooters, motorcycles and the auto rickshaw.

The Forbes Global 2000 list for the year 2005 ranked Bajaj Auto at 1946.

Over the last decade, the company has successfully changed its image from ascooter manufacturer to a two wheeler manufacturer. Its product rangeencompasses scooterettes, scooters and motorcycles. Its real growth innumbers has come in the last four years after successful introduction of a fewmodels in the motorcycle segment.

The company is headed by Rahul Bajaj who is worth more than US$1.5billion.

Bajaj Auto came into existence on November 29, 1945 as M/s BachrajTrading Corporation Private Limited. It started off by selling imported two-and three-wheelers in India. In 1959, it obtained license from theGovernment of India to manufacture two- and three-wheelers and it went

public in 1960. In 1970, it rolled out its 100,000th vehicle. In 1977, itmanaged to produce and sell 100,000 vehicles in a single financial year. In1985, it started producing at Waluj in Aurangabad. In 1986, it managed to

produce and sell 500,000 vehicles in a single financial year. In 1995, it rolledout its ten millionth vehicle and produced and sold 1 million vehicles in a

year.

According to the authors of Globality: Competing with Everyone fromEverywhere for Everything, Bajaj has grown operations in 50 countries bycreating a line of value-for-money bikes targeted to the different preferencesof entry-level buyers.

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Yamaha

Yamaha was established in 1887 as apiano and reed organ manufacturer byTorakusu Yamaha as Nippon Gakki Company, Limited (Nippon Gakki Seizo

Kabushiki Gaisha) (literally Japan Musical Instrument MultinationalCorporation) in Hamamatsu, Shizuoka prefecture, and was incorporated onOctober 12, 1897. The company's origins as a musical instrument

manufacturer is still reflected today in the group's logoa trio ofinterlocking tuning forks.

AfterWorld War II, company president Genichi Kawakamisaki repurposedthe remains of the company's war-time production machinery and thecompany's expertise in metallurgical technologies to the manufacture ofmotorcycles. The YA-1 (AKA Akatombo, the "Red Dragonfly"), of which125 were built in the first year of production (1958), was named in honor ofthe founder. It was a 125cc, single cylinder, two-stroke, street bike patternedafter the German DKWRT125 (which the British munitions firm, BSA, had

also copied in the post-war era and manufactured as theBantam and Harley-Davidson as theHummer). In 1959, the success of the YA-1 resulted in thefounding of the Yamaha Motor Co., Ltd.

Yamaha has grown to become the world's largest manufacturer of musicalinstruments (including pianos, "silent" pianos, drums, guitars, brassinstruments, woodwinds, violins, violas, celli, vibraphones, and saxophones),as well as a leading manufacturer ofsemiconductors, audio/visual, computerrelated products, sporting goods, home appliances, specialty metals, andindustrial robots.

In October 1987, on its 100th anniversary, the name was changed to TheYamaha Corporation.

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GENERAL INTRODUCTION TO THE STUDY

Two-Wheeler industry is one of the largest industries in the

automobile sector of global market. Being the leader in product and processtechnologies in the manufacturing sector, it has been recognized as one ofthe drivers of economic growth. During the last few decades, well-directedefforts have been made to provide a new look to the automobile policy forrealizing the sector's full potential for the economy. The liberalization

policies have led to continuous increase in competition which has ultimatelyresulted in modernization in line with the global standards as well as insubstantial cut in prices. Aggressive marketing by the auto financecompanies have also played a significant role in boosting automobile

demand, especially from the population in the middle income group.Presently many international brands like Honda, Suzuki, etc. are competingwith Indian brands such as Bajaj, Enfield etc. to capture Indian markets.

These aggressive marketing strategies have resulted in making the consumerthe major key for success in the industry. Each product offering is nowdesigned to meet and exceed the expectations of the consumer. Butunderstanding consumer behavior and knowing consumers is never simple.And it is more difficult that to understand what a consumer perceives aboutthe product. Customers may say one thing but do another. They may not be

in touch with their deeper motivations. They may respond to influences thatchange their minds at the last moment.

Literature Review

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Schiffman. G. Leon and kanuk lazare Leslie1 - Study of the customerbehaviour is the study of how individuals make decisions to spend their

available resources (Time, Money and Efforts) on consumption relateditems. It includes the study what they buy, when they buy it, when they buyit, where they buy it, how often they buy it and how often they use it. The

primary purpose for the study consumer behaviour as apart of marketingcurriculum is to understand how and how customers make their purchasedecisions. There insights enable marketers to design more effectivemarketing strategies.

Gupta.C .B and Dr. Nair. N.Rajan2 - A business is based onunderstanding the customer and providing the kind of products that thecustomer wants.

Mamoria C.B. and Mamoria Satish3 - Consumer Decision is theprocess whereby individuals decide what, when, where, how and from whomto purchase goods and services. Buying behaviour may be viewed as anorderly process here by individual interacts with his environment for the

purpose of making market decision on products and services.

Nair Suja. R.4 - The success of the firm will be determined by how

effective it has been in meeting the diverse customer needs and wants bytreating each customer as unique and offering products and services to suithis/her needs.

Major Factors Influencing Consumer Behavior

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Consumers buying behavior is influenced by cultural, social, personal andpsychological factors.

Cultural Factors

Cultural factors exert the broadest and deepest influence on consumerbehavior. The roles played by the buyers culture, subculture and social classare particularly important. Culture refers to that complex whole whichincludes in it knowledge, beliefs, art or anything man acquires as a memberof society.SubcultureEach culture consists of smaller subcultures that provide more specificidentification and socialization for their members. Sub cultures include

nationalities, religions, racial groups and geographic regions.

Social ClassVirtually all-human societies exhibit social stratification. Stratificationsometimes takes the form of a caste system where the members of differentcastes are reared for certain roles and cannot change their caste membershipmore frequently; stratification takes the form of social class.

Social Factors

Reference GroupsA persons reference groups consists of all the groups that have a direct orindirect influence on the persons attitudes or behavior. FamilyThe family is the most important consumer buying organization in thesociety and it constitutes the most influential primary reference group. Roles and statusesA person participates in many groups, family, clubs,organizations etc. The persons position in each group can bedefined in terms of role and status. A role consists of the

activities that a person is expected to perform. Each rolecarries a status.

Personal Factors

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Age and stage in the life cycle

People buy different goods and services over their lifetime. Taste in clothes,furniture and recreation is all age related. Consumption is shaped bythe family life cycle. Marketers often choose life-cycle groupsas their target market.

Occupation and economic circumstances

Occupation also influences a persons consumption pattern.Product choice is greatly affected by economiccircumstances; spendable income, savings and assets, debts,borrowing power and attitude toward spending versussaving.

Lifestyle

People from the same subculture, social class, andoccupation may lead quite different lifestyles. A lifestyle isthe persons pattern of living in the world expressed inactivities, interests and opinions. Lifestyle portrays the worldperson interacting with his or her environment.

Personality and self-concept

Each person has a distinct personality that influences buyingbehavior. It is that distinguishing psychologicalcharacteristics that lead to relatively consistent and enduringresponses to environment. Related to personality is self-concept or self image. Marketers try to develop brandimages that match target markets self image.

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Psychological Factors

Motivation

A person has many needs at a given time. A need becomes amotive when it is aroused to a sufficient level of intensity. Amotive is a need that is sufficiently pressing to drive theperson to act.

Perception

Perception is the process by which an individual selects,

organizes and interprets information inputs to create ameaningful picture of the world. How a, motivated personactually acts is influenced by his or her perceptions of thesituation.

Learning

When people act they learn. Learning involves changes in anindividuals behavior arising from experience. Learning

theory teaches marketers that they can build up demand fora product by associating it with strong drives, usingmotivating cues and positive reinforcement.

Beliefs and attitudes

Through doing and learning, people acquire beliefs andattitudes. These in turn influence buying behavior. A belief isa descriptive thought that a person holds about something .The beliefs make up product and brand images andpeople act on these images .An attitude is a person enduringfavorable or unfavorable evaluations, emotion feeling sandaction tendencies toward some object or idea Thus acompany would be well advised to fit product into existingattitudes rather than try and change peoples attitudes.

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OBJECTIVE

1. To identify the various factor influencing the purchase decision of consumer

when buying a motorcycle and to determine the relative importance of these factors.

2. To find out the most effective media influencing the purchase behavior ofmotorcycle buyers.

3. To study the post purchase behavior of the owner of motorcycle.

4. To determine the popularity of various brands available in the market.

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RESEARCH METHODOLOGY

DESIGN STRATEGY:

TYPES : Two stages design (Exploratory till the questionnaire and formalstudy after that)

PURPOSE : Market survey on the decision making process purchase themotorcycle among the resident of the Indore city.

1. DATA SOURCES.

Two types of data were taken into consideration i.e., primary data andsecondary data. But major emphasis was given on gathering primary data.The secondary data was used only to supplement the primary and makethings clear.a) Primary Data: the collection of data for this source includes

Questionnaire filled up by people.

General discussion so made at the time of filling up of questionnaire.

b) Secondary Data: It includes various sites on the internet.

2. SAMPLING PLAN

a) Sampling Unit: who is to be surveyed?

The target population was people of Indore city

Based on convenience sampling.b) Sampling Size:

The size of our sample was 250.

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Scope of StudyProject aims to understand and enunciate the working process of

different automobile and evaluating its outcome in the two wheelerautomobile sector. Over the past few years, there has been tremendous

progress made around the world in opening up travel and tourism markets tothe benefits of increased competition.

One of the main aspects of the project is to analyze the

different products and services offered and initiatives adapted for twowheeler automobiles sector their product. Selling intangible assets is oneof the toughest jobs in the world. The project is more of a team effort andwill incur team returns.

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LIMITATIONS OF THE STUDY

1. The survey is conducted on a sample size of just 250 people.

2. The study is confined to Indore, may not be relevant to others cities.

3. The paucity of time during which the study was carried out limited the

scope of the research in the terms of number or variety of the

respondents.

4. The effect of promotional schemes on purchase decision was not taken

into consideration.

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BIBLIOGRAPHY

1. BOOKS:

1.Philip Kotlar, Gary Armstrong prentice- half of India

Publication, edition 2008

2.Research methodology- methods and techniques

-by CR Kothari, New Age International Publishers.

2. News Paper

1.The economic times

2.Hindustan times

3. Business Standard

4. Business World

2. WEB ADDRESS:

www.Google.com

www.ask.com

www.yahoo.com

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QUESTIONNAIRE

Please fill the following:- (your information will be used for research

purpose only and will be kept secret)

Name : ...

Address:

.

Gender : Male Female

Occupation :.

Qualification :

.

Phone No. :...

QUESTIONNAIR

E

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[Please () the form given in the answer, which are most suitable to you.

You can answer () more than an option in multiple of sequences.]

Q.1. Name of the brands of motorcycle you own?

a) Bajaj

b) Yamaha

c) Others

Q.2. You purchased a motorcycle because:-?

a) Your friends/colleagues had it

b) For convenience.

c) Lack of local transport

d) Prestige

e) Any others reason..

Q.3. From where did you get awareness about the product?a) Friends/ Neighbors

b) Family/Relatives

c) Dealer

d) Newspapers/ Magazines

e) T.V/Radio

f) Others source

Q.4 From where did you buy the motorcycle.?

(i) Dealer

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(ii) Second hand market

Q.5 The purchase point was selected due to:-

a) Nearness/convenience

b )Finance scheme available

c )Image(dealer successive stores)

d )Service image

Q.6 Rank the following media of promotion of motorcycle from your point

of view(from 1 to 4)?

A. News papers

B. Magazine/hording

C. T.V

D. Radio

Q.7 Rank the features you consider important while purchasing ofmotorcycle?

A. Fuel economy ( )

B. Pickup ( )

C. Speed ( )

D. Looks ( )

E. Credit facility ( )

F. Low maintain cost ( )

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G .After sales services ( )

H. Resale value ( )Q.8 Is your motorcycle keeping up with your expectation?

A. Always

B Sometime

C NeverQ.9 Whether the claims provided by the company regarding your motorbike

is satisfied your requirements?

A Fuel economy

B speedC pickupD maintainsE After sale serviceQ.10 Would you prefer the same motorbike brand after discarding the firstonea. Same company again b. Switch over to another brandc. Cant purchase d .Prefer to buy care .Any other

Q.12 Any suggestion.

Thanks for your precious time