26 CHAPTER – I INTRODUCTION AND DESIGN OF THE STUDY
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26
CHAPTER – I
INTRODUCTION AND DESIGN OF
THE STUDY
27
CHAPTER - I
INTRODUCTION AND DESIGN OF THE STUDY
INTRODUCTION
The Indian Automobile Industry has got a tremendous market potential. With
the growth of population and change in their pattern of life style as a result of
urbanization, there has been a rapid increase in demand for automobiles among Indians.
The growing demand for cars, together with the increasing number of manufacturers
due to the liberalized policy of the government, has resulted in the increasing
competition among the manufacturers. This, in turn, has necessitated the diversification
of their activities synchronizing with the concept of modern technology. Above all, it
has also been realized that the major strategy of withstanding the stiff competition is not
only to retain the old customers but also to attract the new customers through provision
of quality of goods and services. Hence, in recent times, provision of better and quality
products to customers has become one of the focal points in the service agenda of
manufacturers due to the realization that it is only the quality of the products provided
that could help the manufacturers to attract more and more of customers in a
competitive marketing environment.
The Indian Automobile Industry has flourished like never before in the recent
years. This extraordinary growth that the Indian Automobile Industry has witnessed is a
result of a major factor namely, the improvement in the living standard of the middle
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class and an increase in their disposable incomes. Moreover, the liberalization steps,
such as, relaxation of the foreign exchange and equity regulations, reduction of tariffs
on imports, and refining the banking policies initiated by Government of India, have
played an equally important role in raising the Indian Automobile Industry to great
heights.
Customer focus and satisfaction is a driving force for organizations gearing up
for surviving or thriving in the 21st century. Those that are truly doing have turned into
consistently high performers. The companies emphasize service quality in their strategy,
giving customers what they want, when they want it and how they want it. A
philosophy of every business unit has triple implementation namely,
1. The victory of any business unit rests on customer who is willing to accept and pay
for the product / services
2. The firms must be aware of what the market wants well in advance and
3. Consumer wants must be monitored continually for assured success.
Understanding the consumer is the crucial task of every marketing manager.
Consumers are the focus of marketing efforts. The modern marketing concept spells
out the real significance of buying behaviour. All elements of the marketing mix are
tightly integrated with one another. They are seen through the eyes of the consumers
and are coordinated so as to produce the best benefits and optimum satisfaction for the
customers.
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As on today companies are facing through tough competitions. The customers
have a choice of brands to select from. In order to survive the competition, the
companies have to do a better job of meeting and satisfying customer needs than their
competitors. Each individual is a unique product of heredity, environment and
experience. Predicting such a strange behaviour of people is a difficult and complicated
task, filled with uncertainties, risks, and surprises. Accurate predictions can yield vast
fortunes and inaccurate predictions can result in the loss of millions of rupees.
Marketers can justify their existence only when they are able to understand
consumers’ wants and satisfy them. The modern marketing concept for successful
management of a firm requires marketers to consider the consumer as the focal point of
their business activity. Although it is important for the firm to understand the buyer and
accordingly evolve its marketing strategy, the buyer or consumer continues to be an
enigma - sometimes responding the way the marketer wants and on other occasions just
refusing to buy the product from the same marketer. For this reason, the buyer’s mind
has been termed as a black box, which should be opened by the seller to be a successful
marketer.
The study of consumer behaviour focuses on how individuals make decisions to
spend their available resources (time, money, effort) on consumption related items. That
includes what, why, when, where, how often they buy it, how they evaluate it after the
purchase and the impact of such evaluation on future purchase. More than ever before,
the need to understand consumers and consumer behaviour has become a hot topic
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around the globe. The study of consumer behaviour also includes an analysis of factors
that influence purchase decisions and product use.
Consumer satisfaction is a psychological feeling or belief that the perceived
performance exceeds the consumer’s expectations about a product. Some products offer
more satisfaction than the others. For example, a house and a car provide more
satisfaction than a toothbrush. A car satisfies the need of owners for a means of
transportation. They also obtain psychological satisfaction from the possession of
products like car.
HISTORY OF CARS
With the invention of the wheel in 4000 B. C, man’s journey on the road of
mechanized transport had begun. Since then he continually sought to devise an
automated, labour saving machine to replace the horse. Innumerable attempts reached a
conclusion in the early 1760s with the building of the first steam driven tractor by a
French captain, Nicolas Jacob Cugnot. It was however left to Karl Benz & Goltlieb
Damlier to produce the first vehicles powered by the internal combustion engine in
1885. It was then that the petrol engine was introduced, which made the car a practical
and safe proposition. The cars in this period were more like the cars on our roads today.
The first mass-produced car, the Ford Model T, was launched in 1908, and the
production line was introduced in 1914. This flagged of the era of ‘wheels racing’, till
1964, after which jet and rocket propelled vehicles were allowed.
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INDUSTRY DEVELOPMENT
The first motor car on the streets of India was seen in 1898. Bombay had its first
taxicabs in the early 1900. Then for the next fifty years, cars were imported to satisfy
domestic demand. Between 1910 and 1920’s the automobile industry made a humble
beginning by setting up assembly plants in Bombay, Kolkata and Chennai.
The Government of India entered the car business, with a 74% stake in the Maruti
Udyog Limited (MUL), the joint venture with the Suzuki Motors Limited of Japan. The
MUL introduced ‘Maruti 800’ in 1983 providing a complete facelift to the Indian car
industry. The car was launched as a ‘Peoples Car’. This changed the industry’s profile
dramatically. Consequently, the production of cars in India multiplied almost six times to
reach the total 181,800 in 1990 - 1991 with the Maruti Udyog claiming the lion’s share of
112,800 cars followed by the Premier Automobiles with 42,900 cars and the Hindustan
Motors 25,200 cars.
The passenger car industry in India during the past two decades registered an
impressive growth. The car population is not that much widespread in India as human
population. It is rather concentrated in a few developed states. This can be made clear
from the fact that in 1998, eight states namely, Delhi, Maharashtra, Tamil Nadu, West
Bengal, Gujarat, Kerala, Karnataka and Uttar Pradesh possessed nearly 75% cars in the
country. Another interesting feature of the analysis is that four metropolitan cities – Delhi,
Mumbai, Kolkata and Chennai – accounted for about 35% of the country’s total car
population in 1997. Taking into consideration the rise in expendable income levels and
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necessity of personal transportation as a result of inefficient public transportation means,
the demand for cars is expected to increase.
The car buyer will be the major beneficiary of the marketing war in the passenger
car segment as they will be able to get technologically better products at good terms and
conditions. In India, passenger cars have always been considered luxury items. However,
once affordable for only the rich, these are now being owned by middle class families
also.
The passenger car segment in India is set to grow at a reasonable rate in the future.
Strong drivers in the form higher disposable incomes, higher penetration of finance
schemes, new model launches, and changing consumer mindset are expected to push the
demand further.
PASSENGER CAR SEGMENTATION
With more players and greater number of models with a whole lot of different
specifications, came a need for segmentation. The segmentation of the passenger car
market in India is vastly different from that in the developed nations. Price, the most
significant factor contributing to the purchase decision of a car buyer, can be used as an
effective segmentation variable for analyzing the passenger car market. The passenger
car market can be broken into four broad segments.
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TABLE 1.1
SEGMENTATION OF PASSENGER CAR MARKET
CATEGORY MODELS
Economy segment (up to Rs.2.5 lakhs) Maruti 800, Premier Padmini
Mid-size segment (Rs.2.5 – Rs.6 lakhs)
Maruti 1000, Tata Indica, Hyundai Santro,
Ambassador Nova, Fiat Uno, Zen, Ritz,
Shift.
Luxury car segment (Rs.6 – Rs.10 lakhs)
Maruti Esteem, Honda city, Hyundai
Accent, Mitsubishi Lancer
Super car segment (above Rs.10 lakhs) Mercedes Benz & Other imported models
In India, the economy segment accounts for the largest share of the cars sold, as
compared to mid – range segment in the mature markets. The economy and the luxury
car segments face the lowest competitive threats, while the luxury car segment will
witness intense competition due to lower volumes.
AUTO INDUSTRY - CAR
In a vast country like India with continental dimension, the auto industry plays a
crucial role by not only linking the producers and consumers from different parts of the
country but also acts as a unifying force of the diverse cultural heritage of the country.
The Indian Auto Industry through its various modes of transport facilities provides the
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scope for optimum utilization of natural resources scattered throughout the country and
also to disseminate the benefits of developments in the far plunged areas.
Till the late 1980’s, the Indian customer’s choice of the cars was very limited
and this market was dominated by a few manufacturers. The consumers had to wait for
months to buy a car or had to forego a few thousands of rupees over and above the price
of the vehicle as premium. After the liberalization of Indian economy the Indian Car
Manufacturers entered the market in collaboration with the world automobile giants like
Suzuki, General Motors etc., mainly for the production of cars. Thus, the customers
finally got a choice of brands, models and technology to choose the cars. This created
an interest in the mind of the researcher to examine the factors contributing to consumer
behaviour.
Furthermore, research evidences have also shown that the involvement
phenomenon as measured with the recall scale, is more for the automobile purchase
when compared to other consumer durables. Hence, the present study concentrates on
the ‘cars’ as the product category.
IMPORTANCE OF CARS
The busy and sophisticated world is filled with people who strive to keep them
fit in the satellite living with numerous discoveries and inventions thrown open to them
to make their lives fast and comfortable.
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The broad and scattered world started its civilization with palanquins and
bullock carts continued with cycles and bloomed with the dawn of motor vehicles to
make the world short and compact for its inhabitants to relish with celerity.
The hindrance of person, place and time has been brought to a duck with dawn
of motor vehicles. There are numerous vehicles that are produced and marketed in the
society as per the changing preference and needs of the consumers. The modern
marketing system is evolutionary rather than revolutionary. In the earlier stages of
civilization, human wants were few and people were satisfied with what they possessed.
At a later stage, they multiplied leading to the present trend of faster and efficient means
of transport and communication.
The overall economic development of a country is determined by development
in the manufacturing sector. Similarly, the quality of life to a great extent depends upon
the growth and development in consumer luxury goods segment. The passenger car
segment in India is set to grow at a reasonable rate in future. Strong drivers in the form
of higher disposable incomes, higher penetration of finance schemes, new model
launches, and changing consumer mindset are expected to push the demand further.
This favorable shift in the buying potential, identified by Multi National Companies
have greatly enthused them to make hurried entry into Indian markets. As a result the
Indian consumer is presented with the wide range of brands and models of passenger
cars.
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In India, passenger cars once affordable for the rich only are now owned by
middle class families also. A peep into the fast-changing income demographics shows
that the wealth profile of the households is in for a major change, where the number of
the middle class will touch a whooping 35 million households by 2011. This change in
income demographics will have the percentages of the middle-class population rising to
a smart 13 per cent of the total population, and of this one-third will be from rural areas.
This is amply clear from the projected rise in demand for costly goods like cars, which
will witness a 20 per cent annual demand jump. India today has an estimated population
of about 28 million cars. Some 6,00,000 new cars are added to the Indian ‘car park’
every year.
Today, the automobile industry is one of the largest industrial sectors with a
turnover that contributes to roughly 5 per cent of India’s GDP. More importantly, it
contributes to the employment of over 2 million persons directly and to another 10
million indirectly. The industry is important for national policy in that it contributes 19
per cent of indirect taxes. The Government has decided to implement the Rs.1,718 crore
for the National Automotive Testing and R & D Infrastructure Project (NATRIP) to
improve the global competitiveness of the Indian Automotive sector.
The Society of Indian Automobile Manufacturers (SIAM) estimates that
between 2011 and 2015, about 60 new models of passenger cars and multi-utility
vehicles are going to hit the Indian roads.
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Car buyers will be the major beneficiaries of the marketing war as they will get
technologically superior products at good terms and conditions. Hence the study of
perceptions, behaviour and level of satisfaction of consumers of cars appears to be a
lucrative area for the further improvement of the field. This study has made an attempt
to study the behaviour of car users.
MARUTI UDYOG LIMITED
The Maruti Udyog Limited (MUL) was established in February 1981 through an
Act of Parliament, to meet the growing demand of personal mode of transport caused by
the lack of an efficient public transport system. A Licence and a Joint Venture
agreement was signed between the Government of India and the Suzuki Motor
Company (now Suzuki Motor Corporation of Japan) in October 1982, by which Suzuki
acquired 26% share of the equity. The objectives of the MUL then were:
1. Modernization of the Indian Automobile Industry.
2. Production of fuel-efficient vehicles to conserve scarce resources.
3. Production of large number of motor vehicles which was necessary for economic
growth and
4. The MUL, a subsidiary of the Suzuki Motor Corporation of Japan, has been the
leader of the Indian car market for about two decades.
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The company has a portfolio of 11 brands, including the Maruti 800, the Omni,
premium small car the Zen, international brands the Alto and the WagonR, off roader
the Gypsy, mid size the Esteem, luxury car the Baleno, the MPV, Versa, Swift and
Luxury SUV Grand Vitara XL7.
The MUL, the small car manufacturer, has maintained its market leadership in
the passenger car industry in India, despite the entry of multiple players.
India’s largest automobile company, the Maruti entered the Indian car market
with the avowed aim to provide high quality, fuel-efficient, low-cost vehicles. Its cars
operate on the Japanese technology, adapted to the Indian conditions and the Indian car
users.
The company has the largest and the strongest dealer network in the country.
The MUL has 182 authorized dealers with 243 sales outlets in 161 cities. The company
has around 342 dealer workshops and 1545 Maruti authorized service stations backed
by Express service station on 30 highways across the country.
The Maruti is also likely to increase its production capacity by 350,000 by 2011
to meet growing domestic and export demand. Hence, the company is likely to retain its
dominant position in the Indian passenger car market over the medium term.
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HYUNDAI MOTOR INDIA LIMITED
The Hyundai Motor India Limited was established in 1996, and is a wholly
owned subsidiary of the giant South Korean multinational, the Hyundai Motor
Company. It is the second largest and the fastest growing car manufacturer in India.
The HMIL presently markets 31 variants of passenger cars in six segments. The
SANTRO in the B segment, the Getz in the B+ segment, the Accent in the C segment,
the ELANTRA in the D segment, the Sonata EMBERA in the E segment and the
Tucson and the TERRACAN in the SUV segment. The company has sold over 5,00,000
cars in a record time of just over five years since commencement of commercial
production in September 1998 and is all set to emerge as one of the largest exporters of
passenger cars and components out of India.
At a starting price of Rs.2.99 lakh, the SANTRO not only became a challenger
to the Zen, but also an alternative entry point for car buyers. The Hyundai Motor
Company has unveiled a completely new Sonata in a bid to revive frozen local sales and
compete with global rivals. The company also expects to sell more than 300,000 new
Sonata sedans every year starting in 2005, part of its effort to become one of the
World’s top five auto makers by 2011.
The Hindustan Motor Industries Limited (HMIL) fully integrated state-of-the-art
manufacturing plant near Chennai boasts some of the most advanced production, quality
and testing capabilities in the country.
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In order to deliver the highest value through their products they have set up
more than 70 dealer workshops equipped with latest technology machinery and
international quality press, body and paint shops, across the country.
The company has expanded its capacity to 250,000 units per annum to cater to
rising exports and increasing domestic demand and may increase the same to 400,000
per annum over the next couple of years. As a result, it is likely to retain its position as
the second major player in the Indian passenger car industry.
The Hyundai hopes to increase its presence in the Indian market with coming up
with more new models to cater to the growing and differing needs of the market.
HINDUSTAN MOTORS LIMITED
The Hindustan Motors Limited (HML), India’s pioneering automobile
manufacturing company and the Flagship Company of the C. K. Birla Group was
established just before Indian independence, in 1942 by Mr. B. M. Birla of the
industrious Birla family. Commencing operations in a small assembly plant in Port
Okha near Gujarat, the manufacturing facilities later moved to Uttarpara, West Bengal
in 1948, where it began the production of – the Ambassador.
Contributing significantly to the Indian Automotive industry for over five
decades, the Hindustan Motors Limited manufacturing facilities are spread across India:
Uttarpara in West Bengal, Pithampur in Madhya Pradesh, Thiruvallur and Hosur in
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Tamil Nadu and Pondicherry. The latest model, the Mitsubishi Lancer, is manufactured
in their state-of-the-art manufacturing facility at Thiruvallur, Tamil Nadu.
Increasing rivalry and dropping sales figures made the company look out for
newer models, and hence the new Ambassador Nova was brought in 1990. Though the
sturdy Ambassador does not find many takers in India, with people looking to more
fancy cars, its export has been steadily increasing, mainly in the British and Japanese
markets.
Hindustan Motors has a vast service network. The Passenger Car and Utility
Vehicle market is being attended by a 115 strong dealer network, 50 service and parts
dealers and additional 60 exclusive parts dealers. 4 regional offices and nation-wide
territory offices support it.
TATA MOTORS LIMITED
The Tata Motors was established in the year 1945. The Tata Motors Limited is
India’s largest automobile company, with revenues of Rs.24,000 crores in 2005 - 2006.
It is the leader by far in commercial vehicles in each segment, and the second largest in
the passenger vehicles market with winning products in the compact, midsize 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 ply on the Indian roads, since the first rolled out
in 1954. The company’s manufacturing base is spread across Jamshedpur, Pune and
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Lucknow, supported by a nation-wide dealership, sales, services and spare parts
network comprising about 1,200 touch points.
The Tata Motors, the first company from India’s engineering sector to be listed
in the New York Stock Exchange (September 2004), has also emerged as a global
automotive company. In 2004, it acquired the Daewoo Commercial Vehicles Company,
Korea’s second largest truck maker. It was the Tata Motors, which developed the first
indigenously developed the Light Commercial Vehicle, India’s first Sports Utility
Vehicle and, in 1998, the Tata India, India’s first fully indigenous passenger car. It is
the only Indian company which is equipped with crash testing facilities and servicing is
never a problem with its vehicles. Service set-ups exist at every 100 kms at national
highways. Besides there are 450 service centres across India, 24 hour ATM (Any Time
Mobile) centres in Mumbai and Ahmedabad and fully functional customer Training
Cells in the Service Centres to help the customers make the best use of their vehicles.
The company has established a dealer and service network of around 120 dealers.
FIAT INDIA LIMITED
Fiat the Auto Titan, was established in 1899 by Giovanni Agnelli. The company
first set its foot on the Indian Turf in the year 1905, with the appointment of the
Bombay Motor Cars Agency as its sales agent. The relationship with India was further
strengthened when it signed a licence and servicing contract with the Premier
Automobiles Limited (PAL), paving the way for manufacturing and selling of 1100 and
1100D Fiat, Padmini, Uno and the latest offering being the cars from the project ‘178
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world car’ range which includes Siena, Siena weekend and the Palio. In mid 1996, a
five and a half month long labour strike virtually crippled the PAL, bringing production
to a halt. Fiat takes a controlling stake in the Premiere Automobiles Limited (PAL) in
September 1997. The company’s pivotal interest remains automobiles. The Fiat Auto is
one of the pioneer companies in the automobile industry. It has produced more than 85
million passenger cars and light commercial vehicles, including not less than 400
models, since 1899, when the company was founded in Turin, Italy. Some of them have
represented milestones in the automobile industry.
This is seen in the company’s endure towards Environmental issues and
co-operation with all environmental organizations. The Fiat is the only company which
manufactures recyclable cars. The Fiat is the first automobile company of India to offer
painted bumpers on its base versions and rear seat belts. The Fiat has the distinction of
being the only automobile company in India to introduce 12 new variants in a span of
12 months.
The Fiat Auto is planning to revive its beleaguered Indian operations with fresh
investments and a range of new models. The Fiat has decided to write off its losses
amounting to nearly Rs.1,300 crores and give another shot to the Indian market which it
has never managed to come to terms with ever since the Italian auto giant entered India
in 1995. Fiat has ambitious plans for making India its operational hub and plans to
invest one billion US dollars in the coming years.
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OPERATIONAL DEFINITION OF TERMS
Certain technical or operational terms in the research pursued are defined as
follows:
1. CONSUMER
A consumer is an individual, who consumes goods, manufactured by firms or
created by nature (air, water and the like) and services offered by government or firms,
hospitals, educational institutions and the like.
2. CONSUMER BEHAVIOUR
Consumer Behaviour is a process whereby individuals decide whether, what,
when, where, how and from whom to purchase goods or services for consumption.
3. PRODUCT
It is the bundle of perceived benefits that meets the consumer needs. Product for
the purpose of this study means passenger cars which are also termed as cars in the
entire study.
4. PRODUCT ATTRIBUTES
Certain qualities such as price, fuel economy, driving comfort, maintenance
cost, attractive model, status symbol, resale value, latest technology, brand image, pick
up, road grip, internal space, after sales service and availability of spare parts are
considered as product attributes for the present study.
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5. PERCEPTION
Perception is the process whereby we receive stimuli (information) through our
five senses. We recognize this information, and then we assign a meaning to it.
Information processing is a series of activities by which stimuli are perceived,
transformed into information, and stored.
6. SATISFACTION
A person’s feelings of pleasure resulting from a positive perception when
comparing a product’s perceived performance in relation to his or her expectations,
making consumers feel subjectively pleased with their ownership and usage of products.
STATEMENT OF THE PROBLEM
Due to the emergence of globalization and liberalization there is a stiff
competition among the variety of car industries which are focusing attention in
capturing the Indian markets. Cars though considered as luxury once, now occupies a
part of day-to-day life and has become a necessity. Chennai, which is selected for the
study, is one of the main growing markets for car manufacturers. People who were not
ready to spend their money on luxuries have now changed their attitude that
‘Yesterday’s luxuries are today’s necessities.’ At present, people have no reservation in
spending money on the purchase of cars for enjoying the benefits already stated. To be a
successful marketer it is absolutely essential to read the minds and perceptions of the
prospective buyers of cars.
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In addition to the above, the due weightage which is given by the Government
for the growth of passenger car industry and the involvement of the consumers in the
selection of a particular brand of car have also made the researcher to undertake a study
on the passenger car industry with special reference to the perceptions, behaviour and
satisfaction of owners of cars.
SCOPE OF THE STUDY
In the present world, car has become a necessity and forms a part of life of even
the middle class people. Therefore, there is a significant scope to examine the
perception and purchase behaviour of the consumers of cars. The study is restricted to
Chennai City. Chennai formerly known as Madras is the capital of the state Tamil Nadu
and is India’s fourth largest metropolitan city. Chennai is located on the Coromandel
Coast of the Bay of Bengal, developed after 1639 when the British East India Company
established a fort and trading post at the small fishing village of Chennai. Chennai is
nearly a 350 year old city and it is also the 36th largest metropolitan area in the world.
Chennai is also popularly known as the” Gateway to South India”. Chennai City with a
population of 7.08 million14 is a potential market for all the products and services,
because people of various religions, languages, cultural backgrounds, and demographic
and psycho-graphic characteristics live in this area. The people of this city buy cars for
business or personal use or the prestige and maintenance of social status.
Consumers have more power than ever before. Knowledge of the buying
behaviour of different market segments helps a seller to select their target segment and
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evolve marketing strategies to increase the sales. Advertisers and marketers have been
trying to discover why consumers buy and what they buy. This study tries to analyze the
influence of perception in the consumers’ mind and how this information can be used
successfully by marketers to gain entry into the minds of the consumers. This study also
highlights the problems faced by the car owners and offers suggestions to increase the
overall satisfaction of car owners. The scope of this research has a very good future.
OBJECTIVES OF THE STUDY
The overall objective of the study is to evaluate car owners’ perception and
behaviour pertaining to the purchase and use of cars and their satisfaction. The specific
objectives of the study are:
1. To study the historical background of the passenger car industry.
2. To provide the sample respondents profile and to assess their usage of cars.
3. To analyze the factors influencing the purchase of cars.
4. To identify the factors influencing the customers’ satisfaction and
5. To offer concrete suggestions on the basis of the findings of the study for the
development of car industry.
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HYPOTHESES
Hypotheses have been framed to indicate the direction in which the research
study should proceed. In tune with the objectives II and III mentioned above, the
following hypotheses have been tested in the study.
1. There is no significant relationship between the brand of car and the gender among
the respondents.
2. There is no significant relationship between the purpose of possession of car and the
age group among the respondents.
3. There is no significant relationship between the place of purchase and the educational
qualification among the respondents.
4. There is no significant relationship between the mode of purchase and the marital
status among the respondents.
5. There is no significant relationship between the mode of purchase and the family
income among the respondents.
6. There is no significant relationship between the place of purchase and the family
income among the respondents.
7. There is no significant relationship between the occupational status and purpose of
possession among the respondents.
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8. There is no significant relationship between the fuel used and the family income of
the respondents.
9. There is no significant relationship between the age and the resale value.
10. There is no significant relationship between the frequency of servicing a car and the
educational qualification among the respondents.
11. There is no significant relationship between the occupational status and the place of
service among the respondents.
12. There is no significant relationship between the frequency of changing the car and
the family income among the respondents.
13. There is no significant relationship between the brand and the maintenance cost
among the respondents.
14. There is no significant relationship between the gender and the problems faced in
using the car among the respondents.
15. There is no significant relationship between the brand of car and the problems faced
in using the car among the respondents.
16. There is no significant relationship between the educational qualification and the
opinion on switch over among the respondents.
17. There is no significant relationship between the existing brand and the opinion on
switch over among the respondents.
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In tune with objective IV mentioned above, the following hypotheses have been
tested in the study.
1. Age group influences the level of satisfaction.
2. Gender influences the level of satisfaction.
3. Marital status influences the level of satisfaction.
4. Community influences the level of satisfaction.
5. Educational qualification influences the level of satisfaction.
6. Type of the family influences the level of satisfaction.
7. Size of the family influences the level of satisfaction.
8. Occupational status influences the level of satisfaction.
9. Income influences the level of satisfaction.
10. Type of car influences the level of satisfaction.
11. Nature of usage influences the level of satisfaction.
12. Awareness influences the level of satisfaction.
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SAMPLING DESIGN
Tamil Nadu constitutes the south-eastern extremity of the Indian peninsula.
Chennai is the capital city of the State, besides being an important district. The city is
one of the metropolises of India and serves as the gateway to the culture of South India.
Chennai is situated on the north-east end of Tamil Nadu on the coast of the Bay of
Bengal. It lies between 12* 9' and 13* 9' of the northern latitude and 80* 12'
and 80* 19’ of the southern longitude on a `sandy shelving breaker swept beach'. It
stretches nearly 25.60 kms. along the Bay coast from Thiruvanmiyur in the south to
Thiruvottiyur in the north and runs inland in a rugged semi-circular fashion. It is
bounded on the east by the Bay of Bengal and on the remaining three sides by
Chengalpattu and Thiruvallur Districts. The area of coverage of the study is Chennai
City. Figure 1.1 has the Tamil Nadu State Map and figure 1.2 depicts the Chennai
District Map.
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FIGURE 1.1
TAMIL NADU STATE MAP
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FIGURE 1.2
CHENNAI DISTRICT MAP
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The growth of the city is significant and closely linked with the development
of British Institutions and administration. In short, Chennai city was the chief centre
from which the British rule expanded in the sub-continent and it remains a standing
monument of the British contribution to India. Chennai city has acted as an important
centre of culture and education in South India and has been the cradle of many
movements which have played an important role in the history of the
sub-continent.
A large number of institutions which are known in India and abroad are
located in the city, of which mention may be made of the Theosophical Society, the
Kalakshetra and colleges of Arts and Crafts. The establishment of professional
colleges like Medical, Law and Teaching, Veterinary, Engineering, the location of
the Indian Institute of Technology and the establishment of the Central Leather
Research Institute have added to the development of the city. Chennai is one of the
leading cities in India today from the point of view of trade and commerce, with the
fourth largest port in the country and the first to have developed international standard
full-fledged container terminals.
The present study proposes to cover the car owners in Chennai. As census
method is not feasible, the researcher has proposed to follow sampling. The sample car
service centers are selected by following the Cluster Sampling Method. The district is
divided into five taluks namely Egmore - Nungambakkam, Mylapore - Triplicane,
Mambalam - Guindy, Fort - Tondiarpet and Perambur - Purasawakkam. Each taluk is
considered a cluster. The present study selected 20 per cent car service centers from
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each Taluks as given below. A selection of 600 car owners who pay a visit to the
service centers was made on a simple random basis at the rate of 12 from each selected
service centers.
TABLE 1.2
SAMPLE SELECTION
Name of the Taluks
Number of
Service
Centers
Number of Service
Centers Selected
Number of Car
Owners
Selected
Egmore - Nungampakkam 55 11 132
Mylapore – Triplicane 61 12 144
Mambalam – Guindy 49 10 120
Fort – Tondiarpet 54 11 132
Perambur - Purasawakkam 31 6 72
Total 250 50 600
RESEARCH DESIGN
The research design is the plan, structure and strategy of investigation conceived
so as to obtain answers to research questions and in variance with economy in
procedure. It is the conceptual structure within which research is conducted. It
constitutes the blueprint for the collection, measurement and analysis of data.
Descriptive and analytical research designs have been used in this study.
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SOURCES OF DATA
The present study is based on both primary and secondary data. To elicit
information from the customers’ interview schedule was designed and administered.
After having an in-depth review of previous studies and literatures, information were
gathered for constructing the interview schedule. A pilot study was conducted among
30 customers of the banks in order to further strengthen with the help of information
gathered through the pilot study. The questionnaire was pre-tested and suitable
modifications were carried out.
The secondary data have also been extensively used in this study. The secondary
data have been collected from the companies’ bulletins, annual reports and websites.
Further, the researcher has used national and international journals in the field of
management, as well as marketing, business magazines, business dailies, referred text
books in marketing management as well as consumer behaviour and academic studies
conducted in the related areas for the purpose of building a strong conceptual
background including the review of literature for the study.
CONSTRUCTION OF TOOLS AND PILOT STUDY
The tools for collecting primary data were constructed by the researcher himself.
Casual interviews were conducted with twenty five car owners, five officials of service
centers and three dealers in order to find out the variables of the study.
57
Interview schedule for the car owners was constructed in English for the pilot
study. The pilot study conducted during March 2010 covered thirty car owners. In the
light of the pilot study, the schedule was revised. The interview schedule (Appendix - I)
has been used for collecting data from the car owners related to the perception, behavior
and usage of cars and their level of satisfaction.
CONTENT VALIDITY OF THE TRANSLATED TOOL
The researcher carefully examined the statement of the available tools. Further,
the researcher referred to the books and journals, and discussed with experts, for the
selection of the items. The items of the customers satisfaction scale have been selected
on the basis of expert’s opinion, definition given by different psychologists and related
tests. Based on his knowledge, the researcher constructed a large number of statements
each one of which expresses an idea towards a perception / satisfaction. Every statement
expresses the definite usage of the idea of the perception / satisfaction either in ‘Agree”
or ‘Disagree”. The statements, thus, are given a five point ratings as “Strongly Agree’,
‘Agree, ‘Undecided’, ‘Disagree’ and ‘Strongly Disagree’. The experts analyze them and
the number of statements of the tool considered is thirty six (Appendix – I).
After the designing of the tool, the tool was submitted to the researcher’s guide
and other experts in the field of study. In accordance to their opinion and suggestion,
certain words and order of the words in the items were changed. Thus the validity of the
tool was established.
58
VALIDITY
In general, a test is valid if it measures what it claims to measure. The validity of
a test or of any measuring instrument depends upon the fidelity with which it measures
what it purports to measure. In the present study content validity was established for the
tool customers’ satisfaction on the features of the cars by the experts in the field.
FIELD WORK AND COLLECTION OF DATA
The fieldwork for the study was conducted from June 2010 to December 2010.
Personal interview by the researcher was the major tool of data collection. Interview
schedule was used during the interviews. Before the interview, proper rapport was
established. Thus the filled-up interview schedule was thoroughly checked to ensure
accuracy, consistency and completeness. The data thus collected were categorized and
posted in the transcription card for further processing.
DATA PROCESSING
After the completion of collection of data, the filled up questionnaire and
interview schedules were edited properly. A master table was prepared to sum up all the
information. With the help of the master table, classification tables were prepared and
the later was taken directly for analysis.
59
QUANTIFICATION AND MEASUREMENT OF VARIABLES AND
CONSTRUCTION OF SCALES
One of the objectives of the study is to measure the extent and variation of
satisfaction derived by the car owners. The customer satisfaction has been identified as
the dependent variable of the study. As there is no readymade scale to measure the
satisfaction of customers towards their cars, a scale named ‘customer satisfaction scale’
has been developed. This scale has been constructed based on the score awarded for the
options of the respondents. For further analysis the independent variables are selected
and related with the dependent variable.
FRAMEWORK OF ANALYSIS
The general plan of analysis ranges from simple descriptive statistics to
multiple regression models. Data were collected through interview schedules regarding
perception of the respondents on usage of cars. The following tools were used in
testing the hypotheses and in the analysis of the data.
1. Descriptive statistical tools such as Percentage, Mean, Median and Standard
deviation have been used to describe the profiles of consumers, preferred product
attributes and level of satisfaction.
2. ANOVA, t-Test and F-Test have been used to test the significant differences between
the groups of respondents in their perception and satisfaction for selected independent
variables like age, gender and income.
60
3. Chi-square test has been used to test the association between the consumer
demographic characteristics and preferred product attributes and satisfaction.
4. The extent and variation of satisfaction derived by the customer are measured
through the customer satisfaction scale, on the basis of the scores of components. The
factor wise analysis was made. The respondents were grouped according to these
factors and accordingly their main and range of satisfaction scores for each factor group
were calculated. In order to find out the significance of the differences between the
averages, Analysis of variance and ‘F’ test have been applied. In addition to this, the
interrelationship of each group was also different. For finding out quantitative factors,
co-efficient of correlation and partial regression analysis have also been worked out.
LIMITATIONS OF THE STUDY
There are several limitations associated with this study.
1. The study covers Chennai City only. Hence the findings of the study are entirely
applicable to this city only.
2. The study is based on the perceptions of the consumers. These attitudes may change
with the change of times. Therefore, the responses reflect their contemporary views on
the prevailing conditions.
3. The study has been undertaken on 600 respondents. As the sample size is limited, the
results of the study cannot be generalized to the universe.
61
4. The higher number of samples on all the car segments could have been obtained.
Cost and time constraints did not allow for more extensive data collection.
CHAPTER SCHEME
The present study is designed into seven chapters.
The first chapter after giving a brief introduction to the subject deals with the
introduction and execution of the study.
The second chapter gives the review of related literature studies.
The third explains the various theoretical concepts on consumer behaviour,
factors influencing consumer behaviour, consumer decision-making process and
consumer satisfaction.
The fourth chapter presents the profile of the sample respondents on various
aspects of demographic and car usage.
The fifth chapter analyses whether any relationship exists between the
demographic features of car owners with their perception and behaviour on their usage
of cars.
62
In the sixth chapter, the factors influencing customers’ satisfaction have been
measured with the scale called customers’ satisfaction scale.
The seventh and final chapter contains the summary of findings, suggestions,
scope for future research and conclusion arrived at by the researcher in the course of
this study.
63
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