Summer Internship Report

Summer Internship Report

On

“TO STUDY THE CUSTOMER PERCEPTION TOWARDS TATA MOTORS & FACTORS SIGNIFICANT WHILE

CHOOSING A FOUR WHEELER”

By

Aamir HamidiA0116209002

MBA-RM Class of 2011

Under the Supervision ofDr. Himani Sharma

Department of Marketing And Sales

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA2010

1

AMITY UNIVERSITY UTTAR PRADESH

AMITY BUSINESS SCHOOL

DECLARATION

I, Aamir Hamidi student of Masters of Business Administration from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on

“To study the customer perception towards Tata Motors and factors significant while choosing a four wheeler” as part of the course requirement .

I further declare that the information presented in this project is true and original to the best of my knowledge.

Date: 23/07/2010 Aamir Hamidi

Enroll. No:A011620900

Place: Noida MBA-RM Class of 2011

2

3

AMITY UNIVERSITY UTTAR PRADESH

AMITY BUSINESS SCHOOL

CERTIFICATE

I hereby certify that Aamir Hamidi students of Masters of Business Administration at Amity Business School, Amity University Uttar Pradesh has completed Summer Internship on “To study the customer perception towards Tata Motors and factors significant while choosing a four wheeler”, under my guidance.

Dr. Himani Sharma

Department of Marketing and Sales

4

Acknowledgement

I am heartily thankful to all of them who helped me to achieve this project in Tata

Motors. I got lots of support and inspiration from my mentor, Mr. Sanjeev Gulati (G.M).

The support and guidance which my industry mentor provide cannot be expressed by

words.

I am also grateful to Dr. Himani Sharma, Faculty guide (ABS) for her guidance and

support. I wish to express my sincere gratitude to her for providing me an opportunity to

do the project.

Lastly, I offer my regards to all of those who supported me in any respect during the

completion of the project.

Aamir Hamidi

Enroll no. A0116209002

MBA-Retail Management

5

TABLE OF CONTENT

S.No. Particular Page No.

1. Executive Summary 7

2. Introduction 8- 23

3. Literature Review 24- 29

4. Research Methodology 30- 34

5. Data Analysis & Interpretation 35- 67

6. Findings, Conclusion & Recommendation 68-71

7. Reference 72

8. Annexure 73-77

6

EXECUTIVE SUMMARY

During my training, project was “To study the customer perception towards Tata Motors

and factors significant while choosing a four Wheeler”. In training I analyzed the

differentiating factor and reasons that customers thinks before while purchasing a car and

also why people choose Tata in comparison to other brands. I also went through various

sales presentation and demonstration to know the selling process. And I learned how

actual sale happen.

For this purpose, a questionnaire was prepared & 100 respondents were approached to fill

that questionnaire & select the factors which according to them should be kept in mind

while choosing a four wheeler and what is the perception of consumers towards Tata

Motors. The area covered under study was Delhi and NCR.

The questionnaire took into account various factors that might be necessary for the

prospective buyers. These were price, quality, pick up, fuel efficiency, brand image,

engine, interior, spacious, free accessories, AC, wheelbase, power steering, power

window, airbags, after sale services and many other things.

Therefore, the project comprises of both primary as well as the secondary data. Primary

data here refers to the questionnaire & the analysis made whereas the secondary data

comprises of the information gained from the company’s official website & the other

published sources.

After receiving all the filled questionnaires, the same were analyzed using simple

analytical tools such as tables & graphs. Once, the analysis was complete, it was clear

which all factors were of utmost important to the customers & which were the least ones.

Hence, it can be said that the objective of the project was completely achieved.

7

Chapter 1- Introduction

8

History of Automotive Industry in India

In 1953, the government of India and the Indian private sector initiated manufacturing

processes to help develop the automobile industry, which had emerged by the 1940s in a

nascent form. Between 1970 to the economic liberalization of 1991, the automobile

industry continued to grow at a slow pace due to the many government restrictions. A

number of Indian manufactures appeared in 1970-1980. Japanese manufacturers entered

the Indian market ultimately leading to the establishment of Maruti Udyog. A number of

foreign firms initiated joint ventures with Indian companies.

Timeline of Indian automobile industry:

1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves Company,

Mumbai

1901 First Indian to own a car in India – Jamshedji Tata

1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata

1905 Fiat Motors

1911 First Taxi in India

1924 Formation of traffic police

1928 Chevrolet Motors

1942 Hindustan Motors

1944 Premier Auto Limited

1945 Tata Motors

1947 Mahindra Motors

1948 Ashok Motors

9

1948 Standard Motors

1974 Sipani Motors

1981 Maruti Suzuki

1994 Rover Motors

1994 Mercedes Benz

1994 Opel

1995 Ford Motors

1995 Honda SIEL

1995 Reva Electric Car Company

1995 Daewoo Motors

1996 Hyundai Motors

1997 Toyota Kirloskar Motors

1997 Fiat Motors (Re-Entry)

1998 San Motors

1998 Mitsubishi Motors

2001 Skoda Auto

2003 Chevrolet

Following the economic reforms of 1991, the automobile section underwent delicensing

and opened up for 100 percent Foreign Direct Investment. A surge in economic growth

rate and purchasing power led to growth in the Indian automobile industry, which grew at

a rate of 17% on an average since the economic reforms of 1991. The industry provided

employment to a total of 13.1 million people as of 2006-07, which includes direct and

indirect employment.

10

History of Tata Motors

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons.

The company was established in 1935 as a locomotive manufacturing unit and later

expanded its operations to commercial vehicle sector in 1954 after forming a joint

venture with Daimler-Benz AG of Germany. Despite the success of its commercial

vehicles, Tata realized his company had to diversify and he began to look at other

products. Based on consumer demand, he decided that building a small car would be the

most practical new venture. So in 1998 it launched Tata Indica, India's first fully

indigenous passenger car. Designed to be inexpensive and simple to build and maintain,

the Indica became a hit in the Indian market. It was also exported to Europe, especially

the UK and Italy. In 2004 it acquired Tata Daewoo Commercial Vehicle, and in late 2005

it acquired 21% of Aragonese Hispano Carrocera giving it controlling rights of the

company. It has formed a joint venture with Marcopolo of Brazil, and introduced low-

floor buses in the Indian Market. Recently, it has acquired British Jaguar Land Rover

(JLR), which includes the Daimler and Lanchester brand names.

Expansion

After years of dominating the commercial vehicle market in India, Tata Motors entered

the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle.

After the launch of three more vehicles, Tata Estate (1992, a station wagon design based

on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994)

and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in

1998, the first fully indigenous passenger car of India. Though the car was initially

panned by auto-analysts, the car's excellent fuel economy, powerful engine and

aggressive marketing strategy made it one of the best selling cars in the history of the

Indian automobile industry. A newer version of the car, named Indica V2, was a major

improvement over the previous version and quickly became a mass-favorite. Tata Motors

also successfully exported large quantities of the car to South Africa. The success of

Indica in many ways marked the rise of Tata Motors.

11

Joint ventures

Tata Marco Polo released this low-floor bus in India and now it is widely used as public

transport in Delhi, Mumbai, Bangalore and Lucknow

Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of

Brazil. This joint venture is to manufacture and assemble fully-built buses and coaches

targeted at developing mass rapid transportation systems. The joint venture will absorb

technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo

will provide know-how in processes and systems for bodybuilding and bus body design.

Tata and Marcopolo have launched a low-floor city bus which is widely used by Delhi,

Mumbai, Lucknow and Banglore transport corporations.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel

engine technology. Tata Motors sells Fiat cars in India and is looking to extend its

relationship with Fiat and Iveco to other segments. Tata has also formed several JV's with

many small companies in various countries around the world.

Important Development

Tata Nano

12

In January 2008, Tata Motors launched Tata Nano, the least expensive production car in

the world at about Rs. 1,00,000 (US $2,500). The city car was unveiled during the Auto

Expo 2008 exhibition in Pragati Maidan, New Delhi.

Tata has faced controversy over developing the Nano as some environmentalists are

concerned that the launch of such a low-priced car could lead to mass motorization in

India with adverse effects on pollution and global warming. Tata has set up a factory in

Sanand, Gujarat and the first Nano are to roll out summer 2009.

Tata Nano Europa has been developed for sale in developed economies and is to hit

markets in 2010 while the normal Nano should hit markets in South Africa, Kenya and

countries in Asia and Africa by late 2009. A battery version is also planned.

Tata has also been approached by a province in France named Moselle to setup Tata

Nano manufacturing plant.

13

Vision And Mission Statement

Vision

“To evolve into a world class Indian car brand”

Mission

“To provide passenger vehicles that offer customers exceptional value, and through this

build a company that provides its shareholders with superior returns, and is seen by

society and other stakeholders as a valuable contributors to their developments”

14

Tata Motors Profile

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.

92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each

segment, and among the top three in passenger vehicles with winning products in the compact,

midsize car and utility vehicle segments. The company is the world's fourth largest truck

manufacturer, and the world's second largest bus manufacturer.

The company's 24,000 employees are guided by the vision to be "best in the manner in which we

operate, best in the products we deliver, and best in our value system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.

Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The

company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune

(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).

Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat

Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat

powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's

dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors

also distributes and markets Fiat branded cars in India.

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 an international automobile company. Through

subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea,

Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic

British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles

Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial

Vehicles Company has launched several new products in the Korean market, while also exporting

these products to several international markets. Today two-thirds of heavy commercial vehicle

exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in

Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the

remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata

Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building

for buses and coaches to manufacture fully-built buses and coaches for India and select

15

international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive

Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles

in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup

truck, with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since 1961.

The company's commercial and passenger vehicles are already being marketed in several

countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It

has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal

and South Africa.

The foundation of the company's growth over the last 50 years is a deep understanding of

economic stimuli and customer needs, and the ability to translate them into customer-desired

offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's

Engineering Research Centre, established in 1966, has enabled pioneering technologies and

products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in

India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first

indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in

1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,

Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new

segment by launching the Tata Ace, India's first indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world

have been looking forward to. The Tata Nano has been subsequently launched, as planned, in

India in March 2009. A development, which signifies a first for the global automobile industry,

the Nano brings the comfort and safety of a car within the reach of thousands of families. The

standard version has been priced at Rs.100,000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg space

and head room. It can comfortably seat four persons. Its mono-volume design will set a new

benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its

tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants,

it has a lower pollution level than two-wheelers being manufactured in India today. The lean

design strategy has helped minimise weight, which helps maximise performance per unit of

energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the

16

car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable

transportation solution with a low carbon footprint.

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in

keeping with its pioneering tradition, by unveiling its new range of world standard trucks called

Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce

new benchmarks in India and match the best in the world in performance at a lower life-cycle

cost.

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative

fuels. . It has developed electric and hybrid vehicles both for personal and public transportation. It

has also been implementing several environment-friendly technologies in manufacturing

processes, significantly enhancing resource conservation

Through its subsidiaries, the company is engaged in engineering and automotive solutions,

construction equipment manufacturing, automotive vehicle components manufacturing and

supply chain activities, machine tools and factory automation solutions, high-precision tooling

and plastic and electronic components for automotive and computer applications, and automotive

retailing and service operations.

Tata Motors is committed to improving the quality of life of communities by working on four

thrust areas – employability, education, health and environment. The activities touch the lives of

more than a million citizens. The company's support on education and employability is focused

on youth and women. They range from schools to technical education institutes to actual

facilitation of income generation. In health, our intervention is in both preventive and curative

health care. The goal of environment protection is achieved through tree plantation, conserving

water and creating new water bodies and, last but not the least, by introducing appropriate

technologies in our vehicles and operations for constantly enhancing environment care. 

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Manufacturing

Tata Motors owes its leading position in the Indian automobile industry to its strong

focus on indigenisation. This focus has driven the Company to set up world-class

17

manufacturing units with state-of-the-art technology. Every stage of product evolution-

design, development, manufacturing, assembly and quality control, is carried out

meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in

the West and Lucknow in the North.

Jamshedpur:

Established in1945, the Jamshedpur unit was the company's first unit and is spread over

an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory,

Cab & Cowl Factories.

Pune:

The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad

(130 acres). It was established in 1966 and has a Production Engineering Division, which

has one of the most versatile tool making facilities in the Indian sub-continent.

Lucknow:

Tata Motors Lucknow is one of the youngest production facilities among all the Tata

Motors locations and was established in 1992 to meet the demand for Commercial

Vehicles in the Indian market.

Uttarakhand

The company has set up a plant for its mini-truck Ace and the passenger carrier Magic

(based on the Ace platform) at Pantnagar in Uttarakhand. This is the company's fourth

plant, after Jamshedpur (commercial vehicles), Pune (commercial vehicles and passenger

vehicles) and Lucknow (commercial vehicles). The plant is spread over 953 acres, of

which 337 acres is occupied by the vendor park.

18

Joint Venture, Subsidiary and Associate Companies

Tata Motors has several joint venture, subsidiary and associate companies:

Jaguar Land Rover

Tata Technologies Ltd. (TTL) and its subsidiaries

Telco Construction Equipment Co. Ltd. (Telcon)

HV Axles Ltd. (HVAL)

HV Transmissions Ltd. (HVTL)

TAL Manufacturing Solutions Ltd. (TAL)

Sheba Properties Ltd. (Sheba)

Concorde Motors (India) Ltd. (Concorde)

Tata Daewoo Commercial Vehicle Company Ltd (TDWCV)

Hispano Carrocera S. A. (HC)

Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL)

Tata Motors European Technical Centre plc

Tata Motors Finance Limited

Tata Motors Thailand

Tata Marcopolo Motors Ltd (TMML)

Tata Motors(SA) Proprietary Ltd (TMSA)

19

TML Distribution Company Ltd (TDCL)

Products of Tata Motors (Passenger vehicle)

Tata Indica Vista

Tata Indigo Manza

20

Tata Indigo CS

Tata Safari

21

Tata Nano

22

Preamble of research

PURPOSE OF STUDY

The purpose of study is to understand the customer perception towards Tata Motors and

to get a deep insight into the various influencing factors significant while choosing a four

wheeler.

OBJECTIVE OF THE STUDY

To analyze the customer perception towards Tata Motors.

To analyze the important factors while choosing a four wheeler.

23

Chapter 2- Literature Review

24

Conceptual framework

Background

Consumer Perception

Customer perceptions are what indicate whether you have achieved satisfaction or not. In

other words, they represent stepping stones along a continuum. Perceptions accumulate

over time and gradually equate to either satisfaction or dissatisfaction. You job is to

understand and act on these perceptions so the final result is customer satisfaction.

The word ‘perception’ was used in ISO 9001, in my opinion, to highlight just how

subjective this quality is. Perceptions can comprise just about anything: fact, fiction,

fantasy, whatever. If customers believe their perceptions, though, the perceptions have

the weight of fact. That is why it is so important to reach out to customers and

specifically ask them what they think. By their very nature, you probably won’t agree

with all the perceptions. A perception equals fact in the mind of the customer, though.

You must act on these perceptions and let the customer know what you’ve done.

Customer perceptions are influenced by a variety of factors. Besides the actual outcome –

i.e. did the product or service deliver the expected function and did it fulfil the customers

need – the whole process of consumption and all interactions involved are of crucial

importance. In today’s globalize information driven economy this can also comprise

issues like

How other customers or influencing groups perceive the product or brand

The degree to which the customer feels the actual marketing campaign addresses the

most important issues

Responsiveness and service quality of any affiliates, e.g. distribution partners

25

Customer perceptions are dynamic. First of all, with the developing relationship between

customer and company, his perceptions of the company and its products or services will

change.

The backbone of any customer perception management and measurement system,

however, is thorough market research and surveys.

Before purchasing a product customer consider many factors hence the decision

making process is given below:

THE DECISION PROCESS CAN BE DIVIDED INTO FIVE STAGES:

1. Problem Recognition

This occurs when the buyer notices that there is a difference between the desired state

and the actual conditions. The consumer gets aware that he has to change something to

get satisfied. For example, the person recognizes that there is a difference between the

desired state (a working mobile) and the actual condition ( a broken mobile).

2. Information Search

After receiving the problem, the buyer searches for information about a new product that

can solve his problem and also will be able to satisfy his needs.

Here we can distinguish two aspects to an information search:

In the internal search buyer check first if they have any information about the needed

product in their memory. If they cannot get enough information for their memory for a

decision, they are looking for more information in an external search. In an external

search the buyer may focus on communication with friends or relatives, to hear about

26

their experience with special brands. He also can obtain information from public sources

like manufacturers, sales persons or product test organizations.

3. Evaluation of alternatives

To evaluate the products of which the buyer got information is looking for criteria to

compare the products. These criteria are for example characteristics or features that the

buyer wants (or does not want). The buyer also thinks about how important each criterion

is because some features may carry more weight than others. This evaluation of consumer

can be influenced by the marketer by framing the alternatives that means the manner how

the marketer describes the products and their features.

4. Purchase

In this stage the consumer chooses the product or brand which he wants to buy. This

selection is based on the result of the previous evaluation stage. There is also a set of

criterions, which must be taken into account.

One of the most important criterions is the product availability, which may influence

which brand is purchased. If the favorite brand is not available at the moment the

consumer may choose the brand that is ranked second. Other criterion that also could be

important for the consumer is for example the price, delivery, guarantees, maintenance,

agreements and installation and credit agreements.

5. Post Purchase Evaluation

After the purchase the buyer begins to check the product with actual performance

meeting the expected level. In this stage many of the criteria used on the evaluating

alternatives stage are used again. The result is either satisfaction or dissatisfaction.

Bill Brewer presents an original view of the role of conscious experience in the

acquisition of empirical knowledge. He argues that perceptual experiences must

27

provide reasons for empirical beliefs if there are to be any determinate beliefs at

all about particular objects in the world. This fresh approach to epistemology

turns away from the search for necessary and sufficient conditions for knowledge

and works instead from a theory of understanding in a particular area.

Paul Rookes and Jane Wilson explain perception and perceptual processes in a

way that almost anyone can understand. The study of perception, or how the brain

processes information from the senses, has fascinated psychologists and

philosophers for a long time. Perception takes the key research areas and presents

the arguments and findings in a clear, concise form, enabling the reader to have a

quick working knowledge of the area.

This clear and informative text discusses sensation and perception then looks

at theories and explanations of perception. The way visual perception is structured is

examined, followed by an analysis of the development of perceptual processes. The

authors then consider individual social and cultural variations in perceptual

organization. Perception will be particularly useful to students new to higher-level

study. With it's helpful textbook features to assist in examination and learning

techniques, it should interest all introductory psychology students.

To effectively communicate, we must realize that we are all different in the way

we perceive the world and use this understanding as a guide to our

communication with others.

- Tony Robbins

It is our choice how we choose to see and perceive things. We always get to

choose how we see a person, place or a situation. Our perception determines our

experience.

- Ryan Pearson

28

Disability is a matter of perception. If you can do just one thing well, you're

needed by someone.

- Martina Navratilova

29

Chapter 3- Research Methodology

30

MARKET RESEARCH PROBLEMS

1. To study the customer Perception towards Tata Motors.

Hypotheses

The perception of customers towards Tata Motors is good.

2.To study the factors significant while choosing a four wheeler with reference to

Tata Motors.

31

Research Method

Research is a collection and analysis of data gathered from a sample of individuals

relating to their characteristics, behavior, attitudes or opinions (Market research society,

1998). Research objectives can be obtained or answered by using both primary and

secondary-research. Collins (1985) further defines research as, “systematic investigation

to establish facts or principles or to collect information on the subject” (p.1690). (Finn et

al., 2000) suggests that existing literature will benefit primary research and work as a

framework for analysis; likewise research carried out will constantly review, modify and

challenge the theoretical details.

Primary Research

Primary research (also called field research) involves the collection of data that does not

already exist, which is research to collect original data. Primary Research is often

undertaken after the researcher has gained some insight into the issue by collecting

secondary data. This can be through numerous forms, including questionnaires, direct

observation and telephone interviews amongst others. This information may be collected

in things like questionnaires and interviews .

Secondary-Research

Secondary research includes data that has been previously collected and assembles for

projects other than the one in hand (Zikmund, 1999). This method allows researchers to

evaluate and identify gaps in literature with the help of various sources which further

validates the proposal economically. It is relatively inexpensive as compared to primary-

research and can be undertaken without going into the field.

32

Primary data resources used

Questionnaire

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents.

Secondary data resource used

Industry presentations and company database.

Books , electronic resources.

Different forms of secondary-methods have been used to gather relevant data for study

which can further be analyzed to make appropriate implications and achieve the

objectives. This includes topics that have been discussed covering the subject area and

has identified areas that need to be explored. However, there is a disadvantage of

information being outdated as this industry is evolving at a rapid pace.

Data Collection

Primary Data

It is collected through questionnaire, and analysis is done with the SPSS software and MS

Excel.

Secondary Data

These are collected through websites, company database, and company reports.

33

Research Design

The research design here used is descriptive research. Descriptive research, also known

as statistical research, describes data and characteristics about the population or

phenomenon being studied. Descriptive research answers the questions who, what, where,

when and how.

Sampling method

Non Probability Sampling This includes the personal judgment of the researcher rather

than chance to select sample elements. The researcher can arbitrarily or consciously

decide what elements to include in the sample. Non probability samples may yield good

estimates of the population characteristics. Commonly used non probability sampling

techniques are:

Convenience Sampling

Judgmental sampling

Scaling Technique

Scaling technique used here is Likert scale, and Q – sort scaling. Likert scaling involves a

list of statements relating to attitude in question. In Likert scaling we can also check the

degree of agreement and disagreement. Each degree of agreement and disagreement is

given a score on a level of 1 to 5 or it can also be rated on at a scale of 1 to 5. Score is

computed by summing up these scores from all the statements. Q – sort scaling, a scaling

technique that uses a rank order procedure to sort objects, based similarity respect to

some criterion.

34

Chapter-4

Data Analysis

35

Keeping in mind the pre- requisites of the research, the research survey was done for 150

respondents. These belong to different age groups and professions.

Question 1 Which vehicle do you own ?

options no. of respondent

(a) Maruti 28

(b) Tata 22

(c) Hyundai 32

(d) chevrolet 6

(e) Honda 8

(f) other 4

36

Chi-square test

Frequencies

Maruti

Observed N Expected N Residual

no 72 50.0 22.0

yes 28 50.0 -22.0

Total 100

Tata

Observed N Expected N Residual

no 78 50.0 28.0

yes 22 50.0 -28.0

Total 100

37

Hyundai

Observed N Expected N Residual

no 68 50.0 18.0

yes 32 50.0 -18.0

Total 100

Chevrolet

Observed N Expected N Residual

no 94 50.0 44.0

yes 6 50.0 -44.0

Total 100

Honda

Observed N Expected N Residual

no 92 50.0 42.0

yes 8 50.0 -42.0

Total 100

38

Other

Observed N Expected N Residual

no 96 50.0 46.0

yes 4 50.0 -46.0

Total 100

Test Statistics

maruti tata hyundai chevrolet honda other

Chi-Square 19.360a 31.360a 12.960a 77.440a 70.560a 84.640a

df 1 1 1 1 1 1

Asymp. Sig. .000 .000 .000 .000 .000 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell

frequency is 50.0.

39

Question 2 Which fuel option of Tata vehicle you want to purchase?

options no. of respondents

Diesel 70

Petrol 30

fuel option of Tat vehicles customer want to purchase

01020304050607080

Diesel Petrol

options

no

. o

f re

spo

nd

ents

no. of respondents

Chi-Square test

Frequencies

40

Diesel

Observed N Expected N Residual

no 30 50.0 -20.0

yes 70 50.0 20.0

Total 100

Petrol

Observed N Expected N Residual

no 70 50.0 20.0

yes 30 50.0 -20.0

Total 100

41

Test Statistics

diesel petrol

Chi-Square 16.000a 16.000a

df 1 1

Asymp. Sig. .000 .000

a. 0 cells (.0%) have expected

frequencies less than 5. The minimum

expected cell frequency is 50.0.

42

Question 3 what are the options you are looking in Tata?

Options no. of respondents

(a) Indigo Manza 38

(b) Indica Vista 20

(c) Indigo CS 24

(d) Safari 16

(e) nano 2

options customer looking in Tata

05

10

15202530

3540

(a) IndigoManza

(b) IndicaVista

c IndigoCS

(d) Safari (e) nano

options

no

. o

f re

spo

nd

ents

no. of respondents

43

Chi-Square Test

Frequencies

indigo_manza

Observed N Expected N Residual

no 62 50.0 12.0

yes 38 50.0 -12.0

Total 100

indica_vista

Observed N Expected N Residual

no 79 50.0 29.0

yes 21 50.0 -29.0

Total 100

44

indigo_CS

Observed N Expected N Residual

no 74 50.0 24.0

yes 26 50.0 -24.0

Total 100

safari

Observed N Expected N Residual

no 84 50.0 34.0

yes 16 50.0 -34.0

Total 100

45

nano

Observed N Expected N Residual

no 98 50.0 48.0

yes 2 50.0 -48.0

Total 100

Test Statistics

indigo_manza indica_vista indigo_CS safari nano

Chi-Square 5.760a 33.640a 23.040a 46.240a 92.160a

df 1 1 1 1 1

Asymp. Sig. .016 .000 .000 .000 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell

frequency is 50.0.

46

Question 4 Kindly rate the features of Tata vehicles.

Particulars poor average Good very good Best

Looks of the vehicle 0 6 66 16 12

Interiors of the vehicle 0 8 66 20 6

Leg space 0 8 30 50 2

Boot space 0 12 20 58 10

seat comfort 1 18 48 25 8

pick up 0 24 42 26 8

operations 0 26 46 18 10

overall evauation 0 4 66 22 8

47

featurs of tata vehicle

010203040506070

Look

s of

the

vehi

cle

Leg

spac

e

seat

com

fort

oper

atio

ns

options

no

. o

f re

spo

nd

ents poor

average

good

very good

best

Z-Test

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

looks_of_vehicle 100 3.3400 .76831 .07683

interior_of_the_vehicle 100 3.2400 .68343 .06834

leg_space 100 3.6400 .82290 .08229

boot_space 100 3.6800 .83943 .08394

seat_comfort 100 3.1600 .88443 .08844

pick_up 100 3.1400 .94302 .09430

operations 100 3.1200 .91320 .09132

over_all_evaluation 100 3.3600 .71802 .07180

48

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

looks_of_vehicle 43.472 99 .000 3.34000 3.1876 3.4924

interior_of_the_vehicle 47.408 99 .000 3.24000 3.1044 3.3756

leg_space 44.234 99 .000 3.64000 3.4767 3.8033

boot_space 43.839 99 .000 3.68000 3.5134 3.8466

seat_comfort 35.729 99 .000 3.16000 2.9845 3.3355

pick_up 33.297 99 .000 3.14000 2.9529 3.3271

operations 34.165 99 .000 3.12000 2.9388 3.3012

over_all_evaluation 46.795 99 .000 3.36000 3.2175 3.5025

49

Question 5 What do you think most important things while purchasing a new

vehicle?

Faster Pick up

Looks

50

Mileage

After sale service

51

Maintenance cost

52

Safety

Brand Value

Price

53

Z-Test

54

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

faster_pick_up 100 3.6800 2.07379 .20738

looks 100 3.4400 2.27556 .22756

mileage 100 3.3600 2.13447 .21345

after_sale_service 100 4.5000 2.23155 .22315

maintenance_cost 100 5.7800 1.97244 .19724

safety 100 5.2800 1.98010 .19801

brand_value 100 5.3200 1.99434 .19943

price 100 4.6400 2.35067 .23507

55

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

faster_pick_up 17.745 99 .000 3.68000 3.2685 4.0915

looks 15.117 99 .000 3.44000 2.9885 3.8915

mileage 15.742 99 .000 3.36000 2.9365 3.7835

after_sale_service 20.165 99 .000 4.50000 4.0572 4.9428

maintenance_cost 29.304 99 .000 5.78000 5.3886 6.1714

safety 26.665 99 .000 5.28000 4.8871 5.6729

brand_value 26.676 99 .000 5.32000 4.9243 5.7157

price 19.739 99 .000 4.64000 4.1736 5.1064

56

Question 6 Tata vehicles are good at:

Particulars poor average good very good best

1. Price 0 4 68 18 10

2. Design 2 18 46 18 16

3. Mileage 4 8 32 48 8

4. interior space 2 10 30 36 22

5. safety 8 28 26 30 8

57

Tata vehicles are good at:

0

10

20

30

40

50

60

70

80

poor average good very good best

options

no

. o

f re

spo

nd

ent

1. Price

2. Design

3. Mileage

4. interior space

5. safety

Z-test

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

price 100 3.3400 .71379 .07138

design 100 3.2400 1.05524 .10552

mileage 100 3.5200 .92638 .09264

interior_space 100 3.6600 .99717 .09972

safety 100 3.0200 1.10992 .11099

58

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

price 46.793 99 .000 3.34000 3.1984 3.4816

design 30.704 99 .000 3.24000 3.0306 3.4494

mileage 37.997 99 .000 3.52000 3.3362 3.7038

interior_space 36.704 99 .000 3.66000 3.4621 3.8579

safety 27.209 99 .000 3.02000 2.7998 3.2402

Question 7 The cost of ownership of a Tata vehicle:

options no. of respondent

very economical 2

economical 38

average 56

expensive 4

very expensive 0

59

cost of ownership

0102030405060

very

econ

omica

l

econ

omical

aver

age

expe

nsive

very

expe

nsive

options

no

. o

f re

spo

nd

ents

no. of respondent

Chi-square test

Frequencies

very_economical

Observed N Expected N Residual

no 98 50.0 48.0

yes 2 50.0 -48.0

Total 100

60

economical

Observed N Expected N Residual

no 62 50.0 12.0

yes 38 50.0 -12.0

Total 100

average

Observed N Expected N Residual

no 44 50.0 -6.0

yes 56 50.0 6.0

Total 100

61

expensive

Observed N Expected N Residual

no 96 50.0 46.0

yes 4 50.0 -46.0

Total 100

very_expensive

Observed N Expected N Residual

no 100 100.0 .0

Total 100a

a. This variable is constant. Chi-Square Test cannot be performed.

Test Statistics

very_economical economical average expensive

Chi-Square 92.160a 5.760a 1.440a 84.640a

Df 1 1 1 1

Asymp. Sig. .000 .016 .230 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum

expected cell frequency is 50.0.

62

Question 8 Do you think test drive is important before buying a vehicle?

options no. of respondents

Yes 98

No 2

63

Test drive is important before buying vehicle

0

20

40

60

80

100

120

Yes No

options

no

. o

f re

spo

nd

ents

no. of respondents

Chi-Square test

Frequencies

Yes

Observed N Expected N Residual

no 2 50.0 -48.0

yes 98 50.0 48.0

Total 100

64

No

Observed N Expected N Residual

no 98 50.0 48.0

yes 2 50.0 -48.0

Total 100

Test Statistics

yes no

Chi-Square 92.160a 92.160a

Df 1 1

Asymp. Sig. .000 .000

a. 0 cells (.0%) have expected

frequencies less than 5. The minimum

expected cell frequency is 50.0.

Question 9 What is the best thing you like about Tata?

particulars poor Average Good very good best

product desgn 4 12 66 12 6

Brand 2 0 42 42 14

product features 0 20 56 20 4

Service 4 22 60 14 0

65

maintenance cost 2 18 60 20 0

overall riding comfort 0 8 64 24 4

best thing customer like about Tata

010203040506070

prod

uct d

esgn

Brand

prod

uct f

eatu

res

Servic

e

main

tena

nce co

st

over

all ridi

ng com

fort

options

no

. o

f re

spo

nd

ents

poor

average

good

very good

best

Z-Test

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

product_design 100 3.0200 .81625 .08162

brand 100 3.6600 .79417 .07942

product_features 100 3.0800 .74779 .07478

service 100 2.8000 .69631 .06963

maintenance_cost 100 3.0000 .69631 .06963

overall_riding_comfort 100 3.2800 .69747 .06975

66

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t Df Sig. (2-tailed) Mean Difference Lower Upper

product_design 36.999 99 .000 3.02000 2.8580 3.1820

brand 46.086 99 .000 3.66000 3.5024 3.8176

product_features 41.188 99 .000 3.08000 2.9316 3.2284

service 40.212 99 .000 2.80000 2.6618 2.9382

maintenance_cost 43.084 99 .000 3.00000 2.8618 3.1382

overall_riding_comfort 47.027 99 .000 3.28000 3.1416 3.4184

Question 10 Do you recommend Tata vehicle to your friends and relatives?

options no. of respondents

Yes 92

No 8

67

Recommend Tata vehicle to others

0102030405060708090

100

Yes No

options

no

. o

f re

spo

nd

ents

no. of respondents

Chi-Square Test

Frequencies

Yes

Observed N Expected N Residual

no 8 50.0 -42.0

yes 92 50.0 42.0

Total 100

68

No

Observed N Expected N Residual

.00 92 50.0 42.0

1.00 8 50.0 -42.0

Total 100

Test Statistics

yes no

Chi-Square 70.560a 70.560a

Df 1 1

Asymp. Sig. .000 .000

a. 0 cells (.0%) have expected

frequencies less than 5. The minimum

expected cell frequency is 50.0.

69

Chapter 5-

Findings, Conclusion

And

Recommendation

Findings

Most of the customers are using Hyundai brand. Now they shifting from Hyundai

to Tata, after Hyundai Maruti brand is used by the customers and after it Tata is

used by the customers, it shows that they are using Tata and again they are opting

for Tata vehicle.

Mostly customers opt for diesel engine rather than petrol engine in Tata vehicles.

70

Now a days the most demanded car of Tata is Indigo Manza because of its

features at economical prices, secondly Indigo CS because recently it launched e-

series with advanced engine and new features.

Customers rate the features of Tata vehicle and according to them the looks of the

vehicle are good, interior are good, the leg space is very good, boot space is again

very good, seat comfort is good, pick up is good, the operations are good, and last

but not the least the overall evaluation is good.

According to customers the important things while purchasing a new vehicle is its

mileage, looks and the least important is the brand value, this shows that customer

see product not the brand , the product should be good doesn’t matter what the

brand is.

According to the customers the Tata vehicle are good at its price, design and very

good at its mileage, interior space and safety.

The cost of ownership of a Tata vehicle is average, not too high and not too low.

98% of customers think that test drive is important before purchasing a vehicle.

The best thing customers like about Tata vehicles is its design are good, Brand is

very good, the features of the product are good, the service they provide is again

good, maintenance cost is good, and finally the riding comfort is good.

92% of the customers said they will recommend the Tata vehicle to others.

Conclusion

To study the customer Perception towards Tata Motors.

Hypotheses

Ho: The perception of customers towards Tata Motors is good.

Ha: The perception of customers towards Tata Motors is not good.

71

According to the data available and analysis it is clearly observe that : Alternate

hypothesis is rejected.

The factors significant while choosing a four wheeler are Mileage and looks which

customer prefer as important and things, the thing which is least important is brand

value. And, another thing that is test drive is also consider very important before

choosing a four wheeler.

Most of the respondents think Tata vehicles are good at overall basis and in case of

specific things like the interior space it is very spacious , the leg space is also spacious, if

we talk about safety the Tata vehicle’s come under European safety norms. Tata Motors

is using the same quality of paint which Mercedes Benz is using.

Recommendation

• More offers should be provided to customers.

• Car delivery time should be less.

• The plastic quality should be improved in Tata cars .

72

• More test drives should be offered.

References

Books

Naresh K. Malhotra, “Marketing Research”

Philip Kotler, “ Marketing Management”

Leon G. Schiffman, “Consumer Behaviour”

73

Bill Brewer, “Perception and Reason”

Perception Theory, Development, and Organization, “Paul Rookes, Jane Willson”

Websites

www.tatamotors.com

www.themanager.org/marketing/Customer_Perception.htm

www.carwala.com

http://elsmar.com/Forums/showthread.php?t=10730

www.gaadi.com

www.articlesbase.com/article-tags/perception

Others

Company’s brochures and presentations

Article: Choose Your Perception to Create Your Reality

74

Annexure

QUESTIONNAIRE

NAME: _________________________________________

GENDER: Male Female

Age: _____ years

ADDRESS: _______________________________________

75

OCCUPATION:____________________________________

CONTACT NO.: ___________________________________

QUESTIONS

1. Which vehicle do you own?

(a) Maruti ____________ (b) Tata_______________

(c) Hyundai___________ (d) Chevrolet___________

(e) Honda_____________ (f) other ______________

Year of manufacture:________________

2. Which fuel option of Tata vehicles you want to purchase?

(a) Diesel (b) Petrol

3. What are the options you are looking in Tata?

(a) Indigo Manza (d) Safari

(b) Indica Vista (e) Nano

(c) Indigo CS

4.Kindly rate the features of Tata vehicle.

1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best

1 2 3 4 5

Looks of the vehicle

Interiors of the vehicle

76

Leg Space

Boot Space

Seat comfort

Pick up

Operations

Over all evaluation

4. What do you think most important things while purchasing a new vehicle?

(Rank from 1 to 8 , 1 most important and 8 least important )

(a) Faster pick up

(b) Looks

(c) Mileage

(d) After sales service

(e) Repair/Maintenance cost

(f) Safety

(g) Brand value

(h) Price

5. Tata vehicles are good at: (Rate 1 to 5 )

1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best 1. Price

77

2. Design

3. Mileage

4. Interior space

5. Safety

7. The cost of ownership of a Tata vehicle:

5 – very economical

4 – economical

3 – average

2 – expensive

1 – very expensive

8. Do you think test drive is important before buying a vehicle?

(a) Yes (b) No

9. What is the best thing you like about Tata Motors?

1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best

5 4 3 2 1

78

Particulars 1 2 3 4 5

Product Design

Brand

Product Features

Service

Maintenance cost

Overall riding comfort

10. Do you recommend Tata vehicles to your friends and relatives?

(a) Yes (b) No

79