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A PROJECT REPORT ON CONSUMER BUYING MOTIVES OF HYNDAI CARS
UNDERTAKEN AT NAVJIAVN CARS PVT. LTD. NAVSARI
Submitted By: ROHAN P. DESAI (ID- 09MBA24)
Guided By: MR.JITESH PARMAR MBA PROGRAMME (Year 2009-11)
SHRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION
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DECLARATION
I, Rohan P. Desai the student Shrimad Rajchandra Institute of Management and Computer Application, afflicted to Gujarat Technological University, hereby declare that this project report is a result of culmination on my sincere efforts. I also declare that this project has not been submitted for the award of any other degree, diploma, literature or recognition earlier.
Place: Navsari Date:
Rohan P. Desai
ACKNOWLEDGEMENT
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I am indebted to Mr. Hiren Patel General Manager of Navjivan Cars Pvt. Ltd, Navsari for giving me an opportunity to work as a summer project trainee in this esteemed organization. His knowledge and experience was a great motivating factor. This effort would not have been possible without his able, efficient, valuable and timely advice, insights and thoughts. I am very much thankful to sir for his valuable guidance and support. I take this opportunity to express my heartfelt gratitude to my faculty guide Mr. Jitesh Parmar Faculty of Marketing, Shrimad Rajchandra Institute of Management and Computer Application. I am thankful to sir for his valuable support and guidance throughout the project. I am also thankful to Mr. Vikas Patel, Team leader, Navjivan Cars Pvt.Ltd for his assistance and support, I am equally grateful to each and every member of Navjivan Cars Pvt.Ltd, Navsari for their whole-hearted co-operation in completing this project in stipulated time. Last but not the least, I would like to thank my family members and friends whose unbounded support facilitated the successful completion of the project.
Rohan P. Desa
Executive summary
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Introduction:Hyundai is one of the most premiere company of the world in car manufacturing & selling stands 4th in terms of sales. Hyundai motor company has a brand value of approximate US $ 4.6 billion in 2009.Rank 8th in automotive brand ranking.HMIL Rank 2nd in terms of Market Share in INDIA.
Introduction of Buying motives:“Buying motives are those influences or considerations which provide
the impulse to buy, induce action or determine choice in the purchase of goods and services.”
Research problem:The company wants to know more about the various customers that motivate them to purchase Hyundai Cars. factors
Objectives:To find out various factors that motivates customers to buy Hyundai Cars. To find out which is the most preferred preference for buying Hyundai Cars.
Research design:In this project descriptive research design is used for analyzing buying motives of Hyundai Cars. It is very simple and more specific than exploratory study. In this research project I am using Primary Data collection through questionnaire.
Analysis Tools & Technique:Chi-Square, Frequency distribution is used.
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Sampling Plan:The sampling unit for the project is taken from Navsari who are the current users of Hyundai Cars. Sample size of 150 is taken. Nonprobability convenience sampling method is taken. For contacting customers’ personal interview and telephonic interview methods is used.
Findings:The study finds that majority of the customers were highly prefer comfort of the car. Majority of customers fall between age group of 31 – 40.
Conclusion:It will help company to know which factors motivates customer for buying.
Recommendation:The company can provide easy financing facilities, spare & parts. The company can use print media
TABLE OF CONTENTS
SR NO TOPIC PAGE NO.
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. 1
2
3
4 5 6 7 8 9
INTRODUCTION 1.1 History of Automobiles 1.2History of Indian Automobiles 1.3About Company 1.4Organizational Profile ABOUT THE TOPIC 2.1Topic:-Buying Motives 2.2 LITREATURE REVIEW RESEARCH METHODOLOGY 3.1Research Problem 3.2Research Design 3.3Data Source 3.4Research Instrument 3.5Sampling Plan 3.6Contact method 3.7Limitation of Study DATAANALYSIS&INTERPRETATION FINDINGS CONCLUSION RECOMMENDATION BIBILOGRAPHY APPENDIX
1 4 6 10 20 24 28 28 29 30 30 31 31 32 49 51 52 53 54
1. Introduction
1.1History of Automobiles
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a. The First Motor Vehicle:-The first steam-powered vehicle
was designed by Nicolas-Joseph Cugnot in 1769 and could attain speeds of up to 6 km/hour.
Nicolas-Joseph
Cut away Drawing
The original 1769 model
.
Cugnot's 17
b. The First Internal Combustion Engine:-
In 1876 Nicolas internal
Otto Engine
invented
the
first
four-stroke
combustion engine. He called it the "Otto Cycle
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Nicolas Otto c.
Otto Cycle Engine
First Automobile with I.C. Engine:-
In the year practical internal-
(1885) Karl Benz the German mechanical engineer designed and to built be the world's by first an automobile powered
combustion engine based on Otto's design. It was a three wheeled machine.
Karl Benz
Original Benz in 1885
d. First Four-Wheeled Motor Vehicle:-
In the same year 1885
Gottlieb Daimler (with partner Wilhelm Maybach) perfected his internal combustion engine and attached it to a former
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stagecoach, thereby inventing the first four-wheeled motor vehicle.
Gottlieb Daimler
1st Four Wheel Motor Vehicle in 1885
1.2 History of Indian Automobile Industry
a. Trend in automobile industry:•
Automobile Industry in India has witnessed a tremendous growth in recent years.
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•
Come a long way since the first car ran on the streets of Bombay in 1898.
• •
It employs more than 10 million people. After independence Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800.
• •
The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991 Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played vital role.
•
After the sector opened to foreign direct investment in 1996 global major moved in. Matured in last few years and offers differentiated products for different segments of the society.
•
b. Today’s Scenario:• An annual contribution of 4% to the GDP and accounting for about 5% of the total industrial output, this segment clearly stands out as a significant contributor to the economic growth. The industry has grown at a CAGR of 16% p.a over the last 5 years. • With the potential to emerge as one of the largest in the world. Presently, India is
-
2nd largest two wheeler market in the world 4th largest commercial vehicle market in the world 11th largest passenger car in the world and is expected to be the 7th largest market by 2016
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•
•
The industry has emerged as a key contributor to the Indian economy Over 9.9 million vehicles are produced by India & 1.3 million passenger cars and about 400 000 commercial vehicles.
c. Indian Automobile Market:1.Hyundai 2.Hindustan Motors 3.Audi 4.Honda 6.Fiat 7.Force Motor 8.Ford 9.Internationa l 5.BMW (Sonalika) 10.GM(Chevro let) 11.Mahindra 16.Nissan 21.Tata Motors 22.Toyota 23.VolksWa gen 24.Volvo
& Mahindra 12.Lamborghi 17.Porsch ni 13.MahindraRenault 14.Mercedes e 18.Rollsroyce 19.San Motors 20.Skoda
Motors Benz 15.Mitsubishi Motors
25.Reva
(Source: - Hyundai Training Book)
d. Car segmentation as per SIAM:• •
A1 (mini – upto 3400 mm): Maruti 800, Tata Nano. A2 (compact – upto 3401 to 4000 mm): Santro, i10, i20, Indica. A3 (mid-size 4001 to 4500 mm): Accent, Lancer, Verna, SX-4. A4 (executive – 4501 to 4700 mm): Octavia, Laura, Civic. A5 (premium – 4701 to 5000 mm) : Sonata, Accord, Teana A6 (luxury – 5001 mm to above) : s class ( Mercedes Benz, Audi)
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• • •
•
• • •
C (van type): Omni, Versa, Eeco. B2 (passenger carrier): Tavera, Innova, Tata Sumo. SUV’s: Safari, Mahindra, Fortuner, CRV.
1.3About the Company
a. Hyundai Motor India Limited (HMIL).
? VISION & MISSION
• •
Vision statement:-Our team provides value for your future. Mission Statement:-To pursue excellence and deliver cars that inspire, so you can live your life the way you want. And drive your way.
Picture view of the plant in Chennai
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform.
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HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian
customers with cutting-edge global technology, HMIL has set up a modern multi-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure quick turnaround time to changing consumer needs. As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has been the number one exporter of passenger car of the country for the sixth year in a row To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and 540 strong service points across India, which will see further expansion in 2010.HMIL Rank 2nd in terms of Market Share in INDIA.
b. Hyundai Motor India Limited (HMIL) Exports.
February 2010 March 2009
22, 25,
Fastest Exports of 10 lakh cars Hyundai Motor India honored with ‘EXIM Achieved Award’ for the year 2008 by Tamil Chamber of Commerce
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November 2008
5,
Hyundai exports its first batch of ‘i20’ to European market. The first export consignment comprised 2,820 units of ‘i20’. Fastest Export - Over One lakh units of i10 exported since its launch in Oct 31, 2007 Fastest Export of 5 lakh units Hyundai Motor India rolls out the fastest 300,000th export car HMIL crossed the figure of 1 lakh vehicles in exports and emerged as the largest exporter in the Indian automobile industry. First major export-shipment of 760 Accent and Santro cars rolls out of the Chennai Port for Algeria
June 11, 2008 March 2008 October 2006 October 2004 July 21, 2000 27, 31, 31,
(Source:- www.Hyundai.co.in)
c. Global sales ranking:
Ranking 1 2 3 4 5 6 7 8 9 10
Automakers Toyota GM Volkswagen HYUNDAI Ford PSA/Peugeot Honda Nissan Suzuki Renault
2009Global Sales(Units) 3,564,105 3,552,722 3,100,300 2,145,000 2,153,000 1,586,900 1,586,000 1,545,976 1,152,000 1,106,989
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(Note: - Above data is of first half of year 2009, Source: - www.carzoo.com) Hyundai motor company has a brand value of approximate US $ 4.6 billion in 2009.Rank 8th in automotive brand ranking & ranked above Suzuki, GM, Chevrolet, Porsche, Lexus, Nissan, & Ferrari & 69 in top 100 brands It is sold in 193 countries through a network of over 5000 dealerships.
1.4Organization Profile
?
Navjivan Cars Pvt. Ltd
a. Brief History:It is a private limited company incorporate under companies Act, 1956. The company is a dealer of Hyundai Motors India Ltd. The company was incorporated on 24th of March in the year 2010. Till date the company has extended its ramifications and penetrated in its workings to the fullest extent and has achieved a good related diversification in the automobile industry. The company is formed under the directorship of Mr. Jashwantlal D. Gajjar, Mr. Hitendrakumar J. Gajjar and Mr. Dipakkumar J. Gajjar. For effective leadership & Control there is very efficient team Leaded under leadership of Mr. Hiren Patel (General Manager), Vikas Patel (Team Leader), Mr. Khan (Service Manager) & Skilled Staff. Its Other Branches are at Suart, Varacha, and Baruch.
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b. Quality Objective:NAVJIVAN CARS PVT. LTD. has identified the following objectives in pursuit of our quality policy: - To increase the number of customers at least by 40 percent from our existing every year. To execute all the servicing within agreed time-frame. - To update the skills of employees by providing 20 hours training regularly on yearly basis.
c. Vision Statement:To be a leading automobile dealer in Gujarat in the forthcoming years and maintaining the level of quality service and implementing the concept of KAIZEN (IMPROVEMENT ON A CONTINUOUS BASIS) d. Automation Of Workshop:The Company has a fully automated workshop which has around 10 bays. The daily traffic is around 30 cars. The workshop employs about 40 employees who are allotted the work according to their respective skills. e. Manpower:The Company employs about 100 people. The HR activities are properly conducted and performance appraisal on the same are made at regular intervals which serves as the base for the promotion of the workers.
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f. Company includes following Department:• • • • • •
Sales Department Service & Spares Department Accessories Department Advantage Pre-Owned Cars Department CRM(Customer Relationship Management) Department Training Department Account Department EDP Department
• •
? Other Facilities:• • • • • Finance( tie up With Various Loan Provider Banks) Insurance Pick Up & Delivery for Service Customer Lounge Playing area for children
? Other Business Profile of the Company:• • • • • Navjivan Group has Other Dealership of AMW, Volkswagen & Hero Honda. M/S. NEW TECH INDUSTRIES M/S. NAVRATNA INDUSTRIES M/S. NAVJIVAN TRADERS NAVJIVAN YARNS
Product Profile
1. SANTO XING
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? Facts:• • • • •
•
Launched in 1998. The first car launched in Indian from Hyundai Santro Zip Drive was launched in May 2000. Santro Xing was launched in 2003. Santro is India’s largest exporter car under the name Atos! Santro is produced exclusively in India and exported around the world to over 65 countries including advanced markets like North America and Europe.
? Variants:-
• • • • • •
•
1.1 eRLX Petrol 1.1 eRLX LPG
? Dimensions:-
Overall Length- 3565 mm Overall Width- 1525 mm Overall Height- 1590 mm Wheelbase- 2380 mm Ground Clearance- 164 mm Crystal White Sleek Silver
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? Body Colours:-
• •
• • • • • •
Silky Beige Dark Grey Black Diamond Berry Red Electric Red Sparkle Blue
2. i10
? Facts• • • • • • • • • •
•
Model name- i10 Design and creation- Hyundai- KIA, R&D Centre- Korea. International Debut- India Launch time- November’07 Body style- 5 door hatchback i10 compete in the high volume mid compact segment.
? DimensionsOverall Length- 3565 mm Overall Width- 1595 mm Overall Height- 1550 mm Wheelbase- 2380 Ground Clearance- 165
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? Variants:-
• • • • • • • • •
•
1.2 L Kappa 1.1L iRDE
? Body Colour:-
Alpine Blue Oyster Grey Crystal White Sleek Silver Electric Red Stone Black Deep Ocean Blue Blushing Red
3. i20
? Facts:• There’s a new shape on the street and it’s called the Hyundai i20. As you would expect from a car company that buzzes with fresh ideas, novel solutions and top technology, Hyundai i20 is the epitome of the modern premium compact. Sharp and stylish on the outside, spacious and versatile inside, it combines comfort, safety and reliability in a package that is affordable and economical.
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? Dimensions:• • • • • Overall Length- 3940mm Overall Width- 1710 mm Overall Height- 1505 mm Wheelbase- 2525 Ground Clearance- 165
? Variants:-
• • •
•
1.2 Kappa Petrol PL 1.4 CRDi Diesel 1.4 Gamma Petrol Crystal White Sleek Silver Sparkle Blue Silky Beige Diamond Black Berry Red Dark Grey
? Body Colour:-
• • • • • •
4. ACCENT EXECUTIVE
? Facts
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• •
Launched in India in October 1999. Awarded the JD Power Asia pacific award 2001 for “Best Appeal”.
? Dimensions• • • • • • • • • • •
•
Overall Length- 4250 mm Overall Width- 1670 mm Overall Height- 1370 mm Wheelbase 2440 mm Ground Clearance 172 mm
? Variant:1.5 SOHC Petrol 1.5 SOHC LPG
? Body Colours:-
Crystal White Black Diamond Sleek Silver Silky Beige Berry Red
5. VERNA
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? Facts:• • Hyundai Verna Petrol & Diesel Launch in September 2006. Verna CRDi was awarded the ‘Performance Car of The Year 2007’ by Business Standard Motoring. ? Dimension:• • • • • • • • • • • • • Overall Length- 4310 mm Overall Width- 1695 mm Overall Height- 1490 mm Wheelbase- 2500 mm Ground Clearance-170 mm
? Variant:1.6 VTVT Petrol 1.5 CRDi Diesel VGT
? Body Colour:-
Crystal White Stone Black Sleek Silver Blushing Red Deep Ocean Blue Champagne Gold
6. Sonata
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? Facts:•
HMIL launches luxury sedan Sonata in year the 2001. HMIL launches the all new Sonata Transform in the year 2009. Awarded with “Best Overall Values” by Intelchoice.com.
• • • • • • • • • •
•
? Variants2.4 M/T 2.4 A/T 2.0CRDi M/T 2.0 CRDi A/T
? DimensionsOverall Length- 4800 mm Overall Width- 1832 mm Overall Height- 1475 mm Wheelbase- 2730 mm Ground Clearance- 170 mm
? Body Colour:• • • • Crystal White Black Diamond Silky Beige Sleek Silver
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2. About The Topic
2.1 Conceptual Framework Regarding Buying Motives
? Introduction of Buying Motives:What motivates prospects to buy? Why do they buy what they do? Each prospect enters the selling and buying process with emotional needs and motives that singularly or together cause them to buy your service or product. People buy for their own reasons, not yours or your company’s. Often these reasons are rooted in emotion rather than logic, so although they may not seem reasonable to you, they are important to the prospect. ? Meaning of Buying Motives:Buying Motive as “A motive can be defined as a drive or an urge for which an individual seeks satisfaction. It becomes a buying motive when the individual seeks satisfaction through the purchase of something. Motive is inner urge that prompts a person to perform some action. It can be a strong desire, feeling, a drive or any emotion which plays a role in the consumer’s decision to purchase a product or a service. According to D.J.Duncan, ?buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods and service. ? Characteristics of Buying Motive
•
There is a process by which individual decides whether, what, when, from whom, where & how much to buy.
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•
•
It comprises of mental and physical activities of a consumer. Individual behaviour is also influenced by internal and external factors. There is drastic change in the attitude and behaviour of consumer.
•
? Types of buying motives:-
1. Product or patronage motives 2. Emotional and rational motives 3. Inherent and learned motives 4. Latent and Manifest motives 5. Psychological buying motives 6. Environmental Buying Motives
1.
Product or Patronage motives:a. Product Motives:-It refers to those influences and reasons
which make the consumer to buy a certain product in preference to another. These explain why people buy a certain product. Product are of two types
i.
Primary product motives:
These motives induce a
consumer to purchase general class of the product. These motives relate to the basic needs of people like hunger, thirst, sleep.
ii.
Selective product motives: These general class
motives determine
which particular brand or item will be purchased from the Patronage motives: These are the motives which
?
determine where or from whom products are purchased. These are the considerations which induce a buyer to buy goods from specific stores. Patronage motives includes Price
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?
? ? ? ? ?
Location Quality Variety Services Personality of Salesman
2.
Emotional and Rational motives:a. Emotional
motives: These are the motives which are are needs such as thirst ,
affected by the feeling of heart. Thus, motives physiological and psychological following types ? ? ? ? ? ? Love of others Social acceptance motive Vanity motive Recreation and relaxation motive Emulative motive Comfort and convenience motive
hunger, sex attraction etc. The emotional motives are of the
b. Rational motives: These are the motives where a consumer
takes the decision of purchasing a product by his head and means considers i.e., after careful rational consideration purchases, and the logical thinking. In making price, consumer
durability,
dependability, efficiency etc.
Rational motives are of the following types: ? ? ? Monetary gain Efficiency in operation Dependability motive
3.
Inherent and Learned motivesage | 27
a. Inherent
motives:
These
are
the
motives
for
the
satisfaction of which a consumer his best efforts and if these motives are not satisfied he feels mental tension
b. Learned motives: These are the motive which are acquired
or learned by a consumer from the environment and education. These motives are social status, social acceptance, religious belief, fear, security etc.
4.
Latent and Manifest motives:a. Latent motives: Motives that the consumer is unaware of or
unwilling to recognize, harder to identify require projective techniques to identify.
b. Manifest motive: Motives that the consumer is aware of and
willing to express.
5.
Psychological buying motivessychological factors include:
•
Motives-A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
• • •
Physiological Safety Love and Belonging
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• •
Esteem Self Actualization
6.
Environmental Buying Motives:The set of needs an individual experiences at a particular time are often activated by specific cues in the environment. Without these cues, the needs might remain dormant. For example, a young college student may see a new, slick-looking cell phone model with more features displayed in a store window. The exposure may make him unhappy with his old cell phone and cause him to experience tension that will be reduced only when he buys himself the new cell phone model.
2.2 Literature Review To understand your client, know their 'buying
motives'
As a salesperson you might think that people buy your product or service because of the reasons you give them. On the contrary, people buy not because of your reasons, not your company's reasons but for their very own reasons (Chitwood 1998). These reasons may not seem sensible, logical or even intelligent to us but they seem that way to the prospect. There are six different motives and they are not presented in any special order nor are they any more important than any other. They are: • Desire for gain (usually financial)
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• • • • •
Fear of loss (again, usually financial) Comfort and convenience Security and protection Pride of ownership Satisfaction of emotion
I shall refer to these as the six buying motives. You may notice that all these buying motives are emotional, not logical. People buy emotionally, not logically. People buy emotionally, then justify their decisions logically. Therefore you must provide your prospects with logical as well as emotional reasons why your product or service will benefit them. People have strong, genuine, deeply felt emotions to start with. When they buy anything, including things they buy on their own initiative that no one is trying to "sell" them, they buy for emotional reasons. You couldn't change that even if you wanted to.
Buying motives – Do you know why do they buy?
Buying motives often overlap. Suppose you just purchased a new jacket. What was your dominant motive in making that purchase? Maybe you bought the jacket for comfort; you expect it to keep you warm. You might have bought it simply because it has a style or label that you’re proud to wear or show your friends. (Chintan Bharwada) Maybe you bought it because the colour makes your eyes look bluer, or it makes you look taller and thinner, or in some way it makes you feel good about yourself — it gives you emotional satisfaction. Maybe you bought the jacket for all three reasons merged together: It’s comfortable, you’re proud to own it, and it makes you feel good about yourself.
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As a salesperson you might think that people buy your product or service because of the reasons you give them. On the contrary, people buy not because of your reasons, not your company’s reasons but for their very own reasons. These reasons may not seem sensible, logical or even intelligent to us but they seem that way to the prospect. Broadly speaking we can categories buying motives into Rational and Emotional reasons.
Effects of Consumer Motives on Search Behavior Using Internet Advertising. Kenneth C.C. Yang
Past studies on uses and gratifications theory suggested that consumer motives affect how they will use media and media contents. Recent advertising research has extended the theory to study the use of Internet advertising. The current study explores the effects of consumer motives on their search behaviour using Internet advertising. The study employed a 2 by 2 between- subjects factorial experiment design. A total of 120 subjects were assigned to an experiment condition advertising involvement (measured that contains (i.e., (high depth, motives an vs. Internet vs. low). were advertisement emotional) amount by Consumer total collected varying and of by appeals levels by the and rational product search),
search
behaviour
breadth,
demographics,
post-experiment
questionnaires. Because all three dependent variables measuring search behaviour were conceptually related to each other, MANCOVA procedures were employed to examine the moderating effects of consumer motives on the dependent variables in four product involvement-advertising appeal conditions. Results indicated that main effects for product involvements and advertising appeals were statistically significant. Univariate ANOVA also showed that advertising appeals and product involvement levels influenced the total amount of
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search. Three-way interactions among advertising appeals, product involvement levels, and information motive were also statistically significant. Implications and future research directions are discussed. (Kenneth C.C. Yang)
Demographics and patronage motives of supercenter shoppers in the United States Jason M. Carpenter
This research provides supercenter retailers who operate within the USA with specific knowledge of the patronage motives driving crosscategory shopping in supercenters (e.g. value, one-stop shopping convenience, brands, product assortment) and identifies the demographic characteristics of cross-category shoppers. The results suggest marketing strategy implications for supercenter operators in the US market. (Jason M. Carpenter)
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3 Research Methodology
3.1Research Problem:The company wants to know more about the various factors customers that motivate them to purchase Hyundai Cars. It's very important for every marketer to know about the buying motives of the customers because it helps them to design proper policies and programs to attract customers. It also helps them to determine their advertisement budget .
•
Objective of study:? Primary Objective:I.
To find out various factors that motivates customers to buy Hyundai Cars.
? Secondary Objectives:I. II.
To find out which is the most preferred source for awareness. To find out which is the most preferred preference for buying Hyundai Cars. To find out who gives suggestion while buying Hyundai Cars. To know which class of customers is using Hyundai Cars. To know at what level customers are influence by financing facility.
III. IV. V.
3.2 Research Design:A research design is a logical and systematic plan prepared for directing a research study. It is the program that guides the investigator in the process of collecting, analyzing and interpreting observations. It is a blue print for understanding
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project & collection of data.
There are three types of research design. I. Exploratory research design II. Descriptive research design III. Causal research design
Here, descriptive research (Cross-Sectional) design is used for analyzing buying motive of Hyundai Cars. It is very simple and more specific than exploratory study.
The descriptive study is a fact finding investigation with adequate It reveals interpretation. potential The descriptive between study aims at and identifying the various characteristics of a problem under study. relationships variables also setting the stage for further investigation later
3.3 DATA SOURCES:The researcher can gather the data & information are two types;1. Primary data 2. Secondary data • Collection of Primary data:- Primary data are collected
on
original information gathered for a specific purpose either through personnel interviews/questionnaires etc.
• Collection of Secondary data: -:- Secondary
data
for
the
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study were collected from the library reference, technical and subject based books, journals and magazines, websites and other previous studies. To know about details of HMIL data is collected from magazine, web pages etc. In this research project I am using Primary Data collection through questionnaire. 3.4 RESEARCH INSTRUMENTS:In the marketing research it has main research instruments in collection the primary data that is questionnaire. The structured questionnaire is the research instrument to collect the primary information for this marketing research projects. A Questionnaire consists of a set of question presented to respondent for their answers. Questions may be open ended or close ended, it depends upon the Marketing Research. 3.5 Sampling Plan:a. Sample Unit:Who is to be surveyed? The marketing research must define the target population that will be sampled. The sampling unit for the project is taken from Navsari who are the current users of Hyundai Cars. Sample Size: How many customers should be surveyed large samples can give the more reliable results then small samples yet it is more costly than small samples. I have taken 150 samples in this project survey.
b. Sampling Method:-
Sampling is the process of selecting units (e.g., people, organizations) from a population of interest so that by studying the sample we may fairly generalize our results
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back to the population from which they were chosen. In short, the process of drawing sample from a population is known as a sampling.
•
Two types of sampling methods are:I. II.
Probability Sampling Nonprobability Sampling
For Present study Nonprobability sampling method is use and in that convenience sampling technique is taken for use. Nonprobability sampling it is not based on the theory of probability. It does not provide a chance of selection each population element. The merit of this type sampling is simplicity, convenience and low cost. Convenience sampling:- In this project convenience sampling is to be used because it is less costly, time saving, and easier than probability sampling. 3.6 Contact Method:Once the sampling plan has been determined it must be decide how the respondent should be contacted i.e. by Mail, telephone, personal, and on-line-interview. In this research project I have use contact methods of personal interview & telephone interview. 3.7 Limitation of Study
1. The study was confined to only Navsari. Therefore the results
cannot be generalized.
2. The result generated out of the study is completely dependent
on the nature of the response given by the customers.
3. Short span of time for gathering data was a limiting factor.
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Despite these limitations, a sincere attempt has been made to collect and analyze the data and present the information as accurately as possible.
4. DATA ANALYSIS & INTERPRETATION
Table: 1 Following table shows the consumers who have previous experience with Hyundai. Responses No Yes Total Interpretation:From the above frequency distribution it is found that from 150 respondent 116 has no previous experience with Hyundai & remaining 34 had been experience Hyundai before also. No. of Respondent 116 34 150 Percent (%) 77.3% 22.7% 100.00%
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TABLE: 2 Following table shows the customers who travel daily (KMS) by their Hyundai Car. Daily Kilometers Less than 30 31 to 60 Above 61 Total Interpretation: From the above frequency distribution table it is found that out of 150 respondent 44.7% customers travels less than 30 kilometers a day, 38.7% customers travels between 31 to 60 kilometers a day and remaining 16.7% customers travels above 61 kilometers a day. No. of Respondent 67 58 25 150 Percent (%) 44.7% 38.7% 16.7% 100.00%
TABLE: 3
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Following table shows from which sources they got aware about Hyundai. Sources News paper Advertisement Experienced User Events & Promotion TV advertisement Online Source Total Interpreatation:As in this question customers has answer more than one option, so total of 307 answers is got out of survey of 150 customer and from that it is found that 35.50% of customes got aware from experience user which is highest & 4.56% of customers got information from online source which is lowest. No. of Responses 67 109 31 86 14 307 Percentage(% ) 21.82% 35.50% 10.10% 28.01% 4.56% 100.00%
TABLE: 4 Following table show who gives suggestion for buying Hyundai Suggestion No. of Respondent Percent (%)
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Family Friends & Relatives Colleagues Total Interpreatation:-
72 58 20 150
48.00% 38.67% 13.33% 100.00%
From the above frequency distribution table it is found that out of 150 customers 48.00% of customers got suggestion from their family for buying Hyundai, 38.67% of customers got suggestion from their Friends relatives for buying Hyundai 13.33% of customers got suggestion from their Colleagues for buying Hyundai.
CHART: 1 Following Chart shows which factors mostly prefer by customers
Page | 40
Interpretation:The above table shows that most of the customers rates comfort as the most important factor for purchasing a car, then comes mileage, overall looks, driving experience, safety, price and extra features respectively.
TABLE: 5 Following table shows relationship between daily kilometers travel and Model Purchase.
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Null hypothesis (H0): Model Purchase is independent to daily Travelling. Alternative hypothesis (H1): Model Purchase is not independent to daily Travelling.
Daily KM * Model Purchase Cross tabulation Model Purchase San i10 i20 Acce Ve troX Daily KM Less than 30 Count % within Model Purcha 31 to 60 se Count % within Model Purcha Above 61 se Count % within Model Purcha Total se Count % within Model Purcha se 34 100. 0% 37 100 .0% 29 100 .0% 28 100. 0% 21 10 0. 0 % 1 2.9 % 2 5.4 % 4 13. 8% 9 32.1 % 8 38 .1 % 10 29.4 % 13 35. 1% 14 48. 3% 9 32.1 % 12 57 .1 % ing 23 67.6 % 22 59. 5% 11 37. 9% nt 10 35.7 % rn a 1 4. 8 %
Total Son ata 0 .0% 67 44.7%
0 .0%
58 38.7%
1 100 .0%
25 16.7%
1 100 .0%
150 100.0 %
Chi-Square Tests Value Pearson Chi-Square N of Valid Cases 39.455 150
a
df 10
Asymp. Sig. (2-sided) .000
a. 6 cells (33.3%) have expected count less than 5. The minimum expected count is .17.
Page | 42
Symmetric Measures Value Nominal by Nominal N of Valid Cases Contingency Coefficient .456 150 Approx. Sig. .000
Interpretation:Here, Chi-square result shows that the null hypothesis Ho is rejected. So model purchase is dependent .Here there is moderate effect of daily kilometers on model purchase as can seen from contingency coefficient value .456.
TABLE: 6 Following table shows which other factors influence for buying Hyundai. Factor Influencing more Nearby Showroom & Service Centre Availability of spares Authorization of service centre
Page | 43
No. of Responses 56 24 26
Percentag e 20.14% 8.63% 9.35%
Availability of Models & Variants Product performance Total
63 109 278
22.66% 39.21% 100.00%
Interpreatation:As in this question customers has answer more than one option, so total of 278 answers is got out of survey of 150 customer and from that it is found that 39.21% customers were influenced by product performance after that availability of models & variants 22.66%, nearbyshowroom 20.14%, authorization of service centre 9.35% & last availability of spares 8.63% respectively.
TABLE: 7 Following table shows the opinion of customers regarding the brand image of Hyundai Responses No Yes Total No. of Respondent 13 137 150 Percentage (%) 8.7% 91.3% 100.0%
Interpretation: From the above frequency distribution table it is found out of 150 customers 91.3% of customers were influenced by brand image of
Page | 44
Hyundai while making their buying decision of Hyundai Cars. 8.7% customers were not influenced by the brand image of Hyundai.
TABLE: 8 Following table shows how far celebrity endorsement influence on buying decision of customers. Level of Influence High Influenced Normal Influenced Neutral Less Influenced Not Influenced Total No. of Respondent 16 30 22 13 69 150 Percentag e (%) 10.7% 20.0% 14.7% 8.7% 46.0% 100.0%
Interpretationage | 45
The above frequency table shows that 10.7 % customers were highly influenced and 20% were normal influenced by the celebrity advertisements and 46.0% customers were not influenced towards celebrity endorsement while making buying decision.
TABLE: 9 Following table shows how far financing facility influence on buying decision of customers. Level of Influence High influenced Normal Influenced Neutral Less Influenced Not Influenced Total No. of Respondent 43 54 20 13 20 150 Percentag e (%) 28.7% 36.0% 13.3% 8.7% 13.3% 100.0%
Interpretationage | 46
The above frequency table shows that 28.7 % customers were highly influenced and 36.0% were normal influenced by the financing facility and 13.3% customers were not influenced towards financing facility while making buying decision.
TABLE: 10 Following table shows past experience with other Hyundai service station. Past Experienc e No Good 96 21 64.0% 14.0%
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No .of Respondent
Percentage (%)
Average Poor Total
32 1 150
21.3% 0.7% 100.0%
Interpretation: The above frequency table shows that 64.0% customers has no previous experience with other Hyundai service station, 14% has good experience with other Hyundai service station & 21.3% has average experience with other Hyundai Service Station.
TABLE: 11 Following table shows gender wise buying of Hyundai Cars. Gender Male Female Total Interpretation:No. of Respondent 142 8 150 Percentage (%) 94.7% 5.3% 100.0%
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The above frequency distribution table shows that 94.7% of male buys Hyundai Cars and 5.35% of female buys Hyundai Cars. TABLE: 12 Following table shows the different age class of customers and
its influence on buying decision of Hyundai Cars.
Age Group 21 – 30 31 – 40 41 – 50 51 – 60 61 – 70 Total
No. of Respondent 42 67 27 11 3 150
Percentage (%) 28.0% 44.7% 18.0% 7.3% 2.0% 100.0%
Interpretation:The above Frequency table shows that majority 44.7% of customers falling under the age group of 31-40.The next major category was 2130 (28%).the age group 41-50, 51-60 and 61-70 were 3rd , 4th And 5th respectively. TABLE: 13 Following table shows the different occupation of customers and its influence on buying decision of Hyundai Cars. Occupation No. of Responde nt Service/Job Professional Retired Businessman Housewife Total 39 21 4 82 4 150 26.0% 14.0% 2.7% 54.7% 2.7% 100.0% Percentage (%)
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Interpretation:From the above frequency distribution it is found that the 54.7% customers were Businessman, 26% were service , 14% were professional and 4% were retried and housewife respectively.
TABLE: 14 Following table shows the customers form different income groups. Family Annual Income(RS) 100,001 - 300,000 300,001 - 600,000 600,001 - 900,000 Above 900,001 Total Interpretation:From the above frequency distribution table it is found that majority of customers fall in group of 300,001 – 600,000 i.e. 48% and after that customers fall in group of 100,001 -300,000 i.e. 36 % and then 600,001 – 900,000 and above 900,001 respectively.
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Frequency 54 72 20 4 150
Percentage (%) 36.0% 48.0% 13.3% 2.7% 100.0%
Table 15
Following table shows relationship between Family annual income and Model Purchase. Null hypothesis (H0): Model Purchase is independent to Family annual Income. Alternative hypothesis (H1): Model Purchase is not independent to Family annual income.
Page | 51
Family annual Income * Model Purchase Cross tabulation
Incom e 100,001 300,000 300,001 600,000 600,001 900,000 Above 900,001 Count % within Model Purchase Count % within Model Purchase Count % within Model Purchase Count % within Model Total Purchase Count % within Model Purchase 34 100.0% 37 29 28 21 1 150 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0 .0% 1 2.7% 0 .0% 1 3.6% 1 4.8% 1 100.0% 4 2.7% 1 2.9% 3 8.1% 2 6.9% 6 21.4% 8 38.1% 0 .0% 20 13.3% 10 29.4% 14 37.8% 21 72.4% 15 53.6% 12 57.1% 0 .0% 72 48.0% SantroXing 23 67.6% i10 19 51.4% Model Purchase i20 Accent 6 6 20.7% 21.4% Verna 0 .0% Sonata 0 .0% Total 54 36.0%
Chi-Square Tests Value df
Asymp. Sig. (2-
sided) Pearson Chi-Square 84.430a 15 .000 N of Valid Cases 150 a. 14 cells (58.3%) have expected count less than 5. The minimum expected count is .03.
Symmetric Measures Nominal by Nominal N of Valid Cases Contingency Coefficient Value .600 150 Approx. Sig. .000
Interpretation:-
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Here, Chi-square result shows that the null hypothesis Ho is rejected. So model purchase is dependent on family annual income. Here there is moderate effect of Family Annual Income on model purchase as can seen from contingency coefficient value .600
5. FINDINGS
The study finds that majority of the customers were highly prefer comfort of the car. In the case of awareness & getting information about Hyundai it is founds that experience users is having high influence on customers compared to other sources. Following are the other important findings of the study:? It is found that majority of customers fall between age group of
31 – 40.
? It is found that of the users of Hyundai Cars is Businessman,
Service/job & Professionals
? Most of the customers of Hyundai fall in family income group of
300,001 – 600,000(48.00%).
? Most of the customers of Hyundai are Male (94.70%)
? It is found that 22.70% customers have experienced Hyundai before & they had chosen same company again.
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? From the study it is found that majority of the customers travel
less than 30 Kms a day i.e. 44.70%.
? It is very important note that experienced users become an
important source for getting aware about Hyundai with 35.50% and TV advertisement at second with 28.10%. ? Majority of suggestion for buying Hyundai car is given by family 48.00%. ? Majority of Customers has preferred Comfort, Mileage & Driving experience.
? Product performance is the most influencing factor for buying
Hyundai car.39.10% customers has chosen product performance as most influencing factor.
? Most of the customer’s (.91.30%) were influenced by the brand
image of Hyundai.
? Majority of the customers were not influenced (46.00%) by the
celebrity endorsement.
? Majority of the customers were normally influenced (36.00%) by
the Financing facility. ? Majority of the customers has no experience (64.00%) with other Hyundai Service Station and 14.00% has average experience.
? It is found in Chi-Square results that there is association of daily
travelling & Family annual income on purchase of models.
? There is moderate association of daily travelling kilometers on
model purchase as seen in contingency coefficient value 0.456.
? There is moderate association of family annual income on model
purchase as seen in contingency coefficient value 0.600. ? Majority of customers recommend Hyundai Cars to others because of Engine technology, Driving Experience, Mileage, Quality of Cars etc.
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6. CONCLUSION
• The project entitled ?on Consumer buying motives of Hyundai cars with special reference to Navjivan Cars Pvt. Ltd i.e. Navjivan Hyundai, Navsari.
•
These findings will help the company to know which factors motives customers for Buying Hyundai Car. It also helps to decide proper marketing strategies.
•
Page | 55
7. RECOMMENDATIONS
•
The company can try to improve the service quality of Hyundai Cars. The Company can improve availability of spares & parts on time. The Company can provide easy financing facility by giving them a counter in their showroom. The company can cut the cost on celebrity endorsement because study shows that customers are not influenced by celebrity endorsement.
•
• •
•
The Company can give more importance to extra features includes basic accessories, easy insurance & vehicle registration. The Company can adopt print media as a tool for source of awareness, because it is cheap compare to TV advertisement.
•
Page | 56
8. Bibliography:Books:•
Donald R.Cooper and Pamela S. Schindler. (June-2006) Ninth Edition, Business Research Methods, Tata McGraw Hill Publishing, NewDelhi.
•
Leon G. Schiffman and Leslie Lazar Kanuk (Feb 2006). Ninth Edition, Consumer Behaviour, Prentice Hall, India. Philip Kotler, Lane Keller, Abraham Koshy, Mithileshwar Jha (2008).Thirteen Edition, Marketing Management, Pearson Education, India.
•
Journals and Articles:•
• •
Roy Chitwood, Puget Sound Business Journal. Chintan Bharwada Buying motives – Do you know why do they buy? Kenneth C.C. Yang, Effects of Consumer Motives on Search Behavior Using Internet Advertising. University of Texas Demographics and patronage motives. University of South Carolina,
•
Websitesage | 57
• • •
http://www.hyundai.com/in/en/main/ http://www.navjivanmotors.com http://www.carazoo.com/.../Top-10-Car-Makers-of-the-World-in2009 http://www.siamindia.com/
•
9. APPENDIX
QUESTIONNAIRE
INSTITUTE NAME: SHRIMAD RAJCHANDRA MANAGEMENT & COMPUTER APPLICATION INSTITUTE OF
LOCATION: GOPAL VIDYANAGAR, MALIBA CAMPUS, BARDOLI
Dear Sir/madam, My name is ROHAN P. DESAI & MBA student from SHRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION (SRIMCA) Bardoli and doing a project on CONSUMER BUYING MOTIVES OF HYUNDAI CARS, CONDUCTED AT NAVJIVAN CARS PVT.LTD, NAVSARI. Your response is highly valuable. I would be grateful if you could help me by filling it up honestly and legitimately. I assure that any information provided will be solely used for academic purpose and will be kept confidential. No answers are right or wrong; give the answers which you feel are the best. We would be thankful if you share some of your valuable opinion regarding the following questionnaire. 1. Have you been using any cars of Hyundai before? Yes No If yes, specify it: - ___________________
2. What is daily travelling Kilometers per day?
Page | 58
Less than 30
31 to 60
Above 61
3. From which sources you got aware about HYUNDAI? Newspaper advertisement Events & Promotion Experienced user TV Advertisement Online Source
4. Who offers you suggestion for buying HYUNDAI? Family Friends & relatives Colleagues Others
If others, then specify_________________________
5. Rank in the order of your preference to buy a HYUNDAI car (in the order 1-7). Driving Experience Overall Looks Comfort safety Mileage Extra Features Price
6. Which model you have purchased as per above mention parameter that you have given a rank? Santro Xing Verna i10 Sonata i20 Other Accent ____________________
7. What other factor influence more to buy HYUNDAI Car?
Page | 59
Nearby Showroom & Service Centre Authorization of service centre Product Performance
Availability of Spares Availability of models & Variant
8. Does brand image of HYUNDAI influence your buying decision? Yes No
9. How far celebrity endorsements influence your buying decision? High Influenced Less Influenced Normal Influenced Not Influenced Neutral
10.Does financing facility influence your buying decision? High Influenced Less Influenced Normal Influenced Not Influenced Neutral
11.Past experience with other HYUNDAI service station, if any? Good Average Poor
12.Why would you recommend HYUNDAI Cars to others? Specify, _____________________________________________
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________________________________________________ ________________________________________________
Demographic detail: Name Location ________________________________________ ________________________________________ ________________________________________ Occupation Age Gender Contact No. Family Annual Income ________________________________________ ______________ ______________ ______________ 100,001 – 300,000 300,001 – 600,000 Above 900,001
600,001 – 900,000
Thanks for your Co-operation
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Page | 62
doc_200594780.doc
good report
A PROJECT REPORT ON CONSUMER BUYING MOTIVES OF HYNDAI CARS
UNDERTAKEN AT NAVJIAVN CARS PVT. LTD. NAVSARI
Submitted By: ROHAN P. DESAI (ID- 09MBA24)
Guided By: MR.JITESH PARMAR MBA PROGRAMME (Year 2009-11)
SHRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT AND COMPUTER APPLICATION
Page | 1
DECLARATION
I, Rohan P. Desai the student Shrimad Rajchandra Institute of Management and Computer Application, afflicted to Gujarat Technological University, hereby declare that this project report is a result of culmination on my sincere efforts. I also declare that this project has not been submitted for the award of any other degree, diploma, literature or recognition earlier.
Place: Navsari Date:
Rohan P. Desai
ACKNOWLEDGEMENT
Page | 2
I am indebted to Mr. Hiren Patel General Manager of Navjivan Cars Pvt. Ltd, Navsari for giving me an opportunity to work as a summer project trainee in this esteemed organization. His knowledge and experience was a great motivating factor. This effort would not have been possible without his able, efficient, valuable and timely advice, insights and thoughts. I am very much thankful to sir for his valuable guidance and support. I take this opportunity to express my heartfelt gratitude to my faculty guide Mr. Jitesh Parmar Faculty of Marketing, Shrimad Rajchandra Institute of Management and Computer Application. I am thankful to sir for his valuable support and guidance throughout the project. I am also thankful to Mr. Vikas Patel, Team leader, Navjivan Cars Pvt.Ltd for his assistance and support, I am equally grateful to each and every member of Navjivan Cars Pvt.Ltd, Navsari for their whole-hearted co-operation in completing this project in stipulated time. Last but not the least, I would like to thank my family members and friends whose unbounded support facilitated the successful completion of the project.
Rohan P. Desa
Executive summary
Page | 3
Introduction:Hyundai is one of the most premiere company of the world in car manufacturing & selling stands 4th in terms of sales. Hyundai motor company has a brand value of approximate US $ 4.6 billion in 2009.Rank 8th in automotive brand ranking.HMIL Rank 2nd in terms of Market Share in INDIA.
Introduction of Buying motives:“Buying motives are those influences or considerations which provide
the impulse to buy, induce action or determine choice in the purchase of goods and services.”
Research problem:The company wants to know more about the various customers that motivate them to purchase Hyundai Cars. factors
Objectives:To find out various factors that motivates customers to buy Hyundai Cars. To find out which is the most preferred preference for buying Hyundai Cars.
Research design:In this project descriptive research design is used for analyzing buying motives of Hyundai Cars. It is very simple and more specific than exploratory study. In this research project I am using Primary Data collection through questionnaire.
Analysis Tools & Technique:Chi-Square, Frequency distribution is used.
Page | 4
Sampling Plan:The sampling unit for the project is taken from Navsari who are the current users of Hyundai Cars. Sample size of 150 is taken. Nonprobability convenience sampling method is taken. For contacting customers’ personal interview and telephonic interview methods is used.
Findings:The study finds that majority of the customers were highly prefer comfort of the car. Majority of customers fall between age group of 31 – 40.
Conclusion:It will help company to know which factors motivates customer for buying.
Recommendation:The company can provide easy financing facilities, spare & parts. The company can use print media
TABLE OF CONTENTS
SR NO TOPIC PAGE NO.
Page | 5
. 1
2
3
4 5 6 7 8 9
INTRODUCTION 1.1 History of Automobiles 1.2History of Indian Automobiles 1.3About Company 1.4Organizational Profile ABOUT THE TOPIC 2.1Topic:-Buying Motives 2.2 LITREATURE REVIEW RESEARCH METHODOLOGY 3.1Research Problem 3.2Research Design 3.3Data Source 3.4Research Instrument 3.5Sampling Plan 3.6Contact method 3.7Limitation of Study DATAANALYSIS&INTERPRETATION FINDINGS CONCLUSION RECOMMENDATION BIBILOGRAPHY APPENDIX
1 4 6 10 20 24 28 28 29 30 30 31 31 32 49 51 52 53 54
1. Introduction
1.1History of Automobiles
Page | 6
a. The First Motor Vehicle:-The first steam-powered vehicle
was designed by Nicolas-Joseph Cugnot in 1769 and could attain speeds of up to 6 km/hour.
Nicolas-Joseph
Cut away Drawing
The original 1769 model
.
Cugnot's 17
b. The First Internal Combustion Engine:-
In 1876 Nicolas internal
Otto Engine
invented
the
first
four-stroke
combustion engine. He called it the "Otto Cycle
Page | 7
Nicolas Otto c.
Otto Cycle Engine
First Automobile with I.C. Engine:-
In the year practical internal-
(1885) Karl Benz the German mechanical engineer designed and to built be the world's by first an automobile powered
combustion engine based on Otto's design. It was a three wheeled machine.
Karl Benz
Original Benz in 1885
d. First Four-Wheeled Motor Vehicle:-
In the same year 1885
Gottlieb Daimler (with partner Wilhelm Maybach) perfected his internal combustion engine and attached it to a former
Page | 8
stagecoach, thereby inventing the first four-wheeled motor vehicle.
Gottlieb Daimler
1st Four Wheel Motor Vehicle in 1885
1.2 History of Indian Automobile Industry
a. Trend in automobile industry:•
Automobile Industry in India has witnessed a tremendous growth in recent years.
Page | 9
•
Come a long way since the first car ran on the streets of Bombay in 1898.
• •
It employs more than 10 million people. After independence Indian automobile industry was plagued by unfavorable government policies. All it had to offer in the passenger car segment was a 1940s Morris model called the Ambassador and a 1960s Suzuki-derived model called the Maruti 800.
• •
The automobile sector in India underwent a metamorphosis as a result of the liberalization policies initiated in the 1991 Measures such as relaxation of the foreign exchange and equity regulations, reduction of tariffs on imports, and refining the banking policies played vital role.
•
After the sector opened to foreign direct investment in 1996 global major moved in. Matured in last few years and offers differentiated products for different segments of the society.
•
b. Today’s Scenario:• An annual contribution of 4% to the GDP and accounting for about 5% of the total industrial output, this segment clearly stands out as a significant contributor to the economic growth. The industry has grown at a CAGR of 16% p.a over the last 5 years. • With the potential to emerge as one of the largest in the world. Presently, India is
-
2nd largest two wheeler market in the world 4th largest commercial vehicle market in the world 11th largest passenger car in the world and is expected to be the 7th largest market by 2016
Page | 10
•
•
The industry has emerged as a key contributor to the Indian economy Over 9.9 million vehicles are produced by India & 1.3 million passenger cars and about 400 000 commercial vehicles.
c. Indian Automobile Market:1.Hyundai 2.Hindustan Motors 3.Audi 4.Honda 6.Fiat 7.Force Motor 8.Ford 9.Internationa l 5.BMW (Sonalika) 10.GM(Chevro let) 11.Mahindra 16.Nissan 21.Tata Motors 22.Toyota 23.VolksWa gen 24.Volvo
& Mahindra 12.Lamborghi 17.Porsch ni 13.MahindraRenault 14.Mercedes e 18.Rollsroyce 19.San Motors 20.Skoda
Motors Benz 15.Mitsubishi Motors
25.Reva
(Source: - Hyundai Training Book)
d. Car segmentation as per SIAM:• •
A1 (mini – upto 3400 mm): Maruti 800, Tata Nano. A2 (compact – upto 3401 to 4000 mm): Santro, i10, i20, Indica. A3 (mid-size 4001 to 4500 mm): Accent, Lancer, Verna, SX-4. A4 (executive – 4501 to 4700 mm): Octavia, Laura, Civic. A5 (premium – 4701 to 5000 mm) : Sonata, Accord, Teana A6 (luxury – 5001 mm to above) : s class ( Mercedes Benz, Audi)
Page | 11
• • •
•
• • •
C (van type): Omni, Versa, Eeco. B2 (passenger carrier): Tavera, Innova, Tata Sumo. SUV’s: Safari, Mahindra, Fortuner, CRV.
1.3About the Company
a. Hyundai Motor India Limited (HMIL).
? VISION & MISSION
• •
Vision statement:-Our team provides value for your future. Mission Statement:-To pursue excellence and deliver cars that inspire, so you can live your life the way you want. And drive your way.
Picture view of the plant in Chennai
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC), South Korea and is the largest passenger car exporter and the second largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the Accent and the Verna, the A5 segment includes the Sonata Transform.
Page | 12
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most advanced production, quality and testing capabilities in the country. To cater to rising demand, HMIL commissioned its second plant in February 2008, which produces an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum. In continuation with its commitment to providing Indian
customers with cutting-edge global technology, HMIL has set up a modern multi-million dollar research and development facility in the cyber city of Hyderabad. It aims to become a centre of excellence for automobile engineering and ensure quick turnaround time to changing consumer needs. As HMC’s global export hub for compact cars, HMIL is the first automotive company in India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It has been the number one exporter of passenger car of the country for the sixth year in a row To support its growth and expansion plans, HMIL currently has a 290 strong dealer network and 540 strong service points across India, which will see further expansion in 2010.HMIL Rank 2nd in terms of Market Share in INDIA.
b. Hyundai Motor India Limited (HMIL) Exports.
February 2010 March 2009
22, 25,
Fastest Exports of 10 lakh cars Hyundai Motor India honored with ‘EXIM Achieved Award’ for the year 2008 by Tamil Chamber of Commerce
Page | 13
November 2008
5,
Hyundai exports its first batch of ‘i20’ to European market. The first export consignment comprised 2,820 units of ‘i20’. Fastest Export - Over One lakh units of i10 exported since its launch in Oct 31, 2007 Fastest Export of 5 lakh units Hyundai Motor India rolls out the fastest 300,000th export car HMIL crossed the figure of 1 lakh vehicles in exports and emerged as the largest exporter in the Indian automobile industry. First major export-shipment of 760 Accent and Santro cars rolls out of the Chennai Port for Algeria
June 11, 2008 March 2008 October 2006 October 2004 July 21, 2000 27, 31, 31,
(Source:- www.Hyundai.co.in)
c. Global sales ranking:
Ranking 1 2 3 4 5 6 7 8 9 10
Automakers Toyota GM Volkswagen HYUNDAI Ford PSA/Peugeot Honda Nissan Suzuki Renault
2009Global Sales(Units) 3,564,105 3,552,722 3,100,300 2,145,000 2,153,000 1,586,900 1,586,000 1,545,976 1,152,000 1,106,989
Page | 14
(Note: - Above data is of first half of year 2009, Source: - www.carzoo.com) Hyundai motor company has a brand value of approximate US $ 4.6 billion in 2009.Rank 8th in automotive brand ranking & ranked above Suzuki, GM, Chevrolet, Porsche, Lexus, Nissan, & Ferrari & 69 in top 100 brands It is sold in 193 countries through a network of over 5000 dealerships.
1.4Organization Profile
?
Navjivan Cars Pvt. Ltd
a. Brief History:It is a private limited company incorporate under companies Act, 1956. The company is a dealer of Hyundai Motors India Ltd. The company was incorporated on 24th of March in the year 2010. Till date the company has extended its ramifications and penetrated in its workings to the fullest extent and has achieved a good related diversification in the automobile industry. The company is formed under the directorship of Mr. Jashwantlal D. Gajjar, Mr. Hitendrakumar J. Gajjar and Mr. Dipakkumar J. Gajjar. For effective leadership & Control there is very efficient team Leaded under leadership of Mr. Hiren Patel (General Manager), Vikas Patel (Team Leader), Mr. Khan (Service Manager) & Skilled Staff. Its Other Branches are at Suart, Varacha, and Baruch.
Page | 15
b. Quality Objective:NAVJIVAN CARS PVT. LTD. has identified the following objectives in pursuit of our quality policy: - To increase the number of customers at least by 40 percent from our existing every year. To execute all the servicing within agreed time-frame. - To update the skills of employees by providing 20 hours training regularly on yearly basis.
c. Vision Statement:To be a leading automobile dealer in Gujarat in the forthcoming years and maintaining the level of quality service and implementing the concept of KAIZEN (IMPROVEMENT ON A CONTINUOUS BASIS) d. Automation Of Workshop:The Company has a fully automated workshop which has around 10 bays. The daily traffic is around 30 cars. The workshop employs about 40 employees who are allotted the work according to their respective skills. e. Manpower:The Company employs about 100 people. The HR activities are properly conducted and performance appraisal on the same are made at regular intervals which serves as the base for the promotion of the workers.
Page | 16
f. Company includes following Department:• • • • • •
Sales Department Service & Spares Department Accessories Department Advantage Pre-Owned Cars Department CRM(Customer Relationship Management) Department Training Department Account Department EDP Department
• •
? Other Facilities:• • • • • Finance( tie up With Various Loan Provider Banks) Insurance Pick Up & Delivery for Service Customer Lounge Playing area for children
? Other Business Profile of the Company:• • • • • Navjivan Group has Other Dealership of AMW, Volkswagen & Hero Honda. M/S. NEW TECH INDUSTRIES M/S. NAVRATNA INDUSTRIES M/S. NAVJIVAN TRADERS NAVJIVAN YARNS
Product Profile
1. SANTO XING
Page | 17
? Facts:• • • • •
•
Launched in 1998. The first car launched in Indian from Hyundai Santro Zip Drive was launched in May 2000. Santro Xing was launched in 2003. Santro is India’s largest exporter car under the name Atos! Santro is produced exclusively in India and exported around the world to over 65 countries including advanced markets like North America and Europe.
? Variants:-
• • • • • •
•
1.1 eRLX Petrol 1.1 eRLX LPG
? Dimensions:-
Overall Length- 3565 mm Overall Width- 1525 mm Overall Height- 1590 mm Wheelbase- 2380 mm Ground Clearance- 164 mm Crystal White Sleek Silver
Page | 18
? Body Colours:-
• •
• • • • • •
Silky Beige Dark Grey Black Diamond Berry Red Electric Red Sparkle Blue
2. i10
? Facts• • • • • • • • • •
•
Model name- i10 Design and creation- Hyundai- KIA, R&D Centre- Korea. International Debut- India Launch time- November’07 Body style- 5 door hatchback i10 compete in the high volume mid compact segment.
? DimensionsOverall Length- 3565 mm Overall Width- 1595 mm Overall Height- 1550 mm Wheelbase- 2380 Ground Clearance- 165
Page | 19
? Variants:-
• • • • • • • • •
•
1.2 L Kappa 1.1L iRDE
? Body Colour:-
Alpine Blue Oyster Grey Crystal White Sleek Silver Electric Red Stone Black Deep Ocean Blue Blushing Red
3. i20
? Facts:• There’s a new shape on the street and it’s called the Hyundai i20. As you would expect from a car company that buzzes with fresh ideas, novel solutions and top technology, Hyundai i20 is the epitome of the modern premium compact. Sharp and stylish on the outside, spacious and versatile inside, it combines comfort, safety and reliability in a package that is affordable and economical.
Page | 20
? Dimensions:• • • • • Overall Length- 3940mm Overall Width- 1710 mm Overall Height- 1505 mm Wheelbase- 2525 Ground Clearance- 165
? Variants:-
• • •
•
1.2 Kappa Petrol PL 1.4 CRDi Diesel 1.4 Gamma Petrol Crystal White Sleek Silver Sparkle Blue Silky Beige Diamond Black Berry Red Dark Grey
? Body Colour:-
• • • • • •
4. ACCENT EXECUTIVE
? Facts
age | 21• •
Launched in India in October 1999. Awarded the JD Power Asia pacific award 2001 for “Best Appeal”.
? Dimensions• • • • • • • • • • •
•
Overall Length- 4250 mm Overall Width- 1670 mm Overall Height- 1370 mm Wheelbase 2440 mm Ground Clearance 172 mm
? Variant:1.5 SOHC Petrol 1.5 SOHC LPG
? Body Colours:-
Crystal White Black Diamond Sleek Silver Silky Beige Berry Red
5. VERNA
Page | 22
? Facts:• • Hyundai Verna Petrol & Diesel Launch in September 2006. Verna CRDi was awarded the ‘Performance Car of The Year 2007’ by Business Standard Motoring. ? Dimension:• • • • • • • • • • • • • Overall Length- 4310 mm Overall Width- 1695 mm Overall Height- 1490 mm Wheelbase- 2500 mm Ground Clearance-170 mm
? Variant:1.6 VTVT Petrol 1.5 CRDi Diesel VGT
? Body Colour:-
Crystal White Stone Black Sleek Silver Blushing Red Deep Ocean Blue Champagne Gold
6. Sonata
Page | 23
? Facts:•
HMIL launches luxury sedan Sonata in year the 2001. HMIL launches the all new Sonata Transform in the year 2009. Awarded with “Best Overall Values” by Intelchoice.com.
• • • • • • • • • •
•
? Variants2.4 M/T 2.4 A/T 2.0CRDi M/T 2.0 CRDi A/T
? DimensionsOverall Length- 4800 mm Overall Width- 1832 mm Overall Height- 1475 mm Wheelbase- 2730 mm Ground Clearance- 170 mm
? Body Colour:• • • • Crystal White Black Diamond Silky Beige Sleek Silver
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2. About The Topic
2.1 Conceptual Framework Regarding Buying Motives
? Introduction of Buying Motives:What motivates prospects to buy? Why do they buy what they do? Each prospect enters the selling and buying process with emotional needs and motives that singularly or together cause them to buy your service or product. People buy for their own reasons, not yours or your company’s. Often these reasons are rooted in emotion rather than logic, so although they may not seem reasonable to you, they are important to the prospect. ? Meaning of Buying Motives:Buying Motive as “A motive can be defined as a drive or an urge for which an individual seeks satisfaction. It becomes a buying motive when the individual seeks satisfaction through the purchase of something. Motive is inner urge that prompts a person to perform some action. It can be a strong desire, feeling, a drive or any emotion which plays a role in the consumer’s decision to purchase a product or a service. According to D.J.Duncan, ?buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purchase of goods and service. ? Characteristics of Buying Motive
•
There is a process by which individual decides whether, what, when, from whom, where & how much to buy.
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•
•
It comprises of mental and physical activities of a consumer. Individual behaviour is also influenced by internal and external factors. There is drastic change in the attitude and behaviour of consumer.
•
? Types of buying motives:-
1. Product or patronage motives 2. Emotional and rational motives 3. Inherent and learned motives 4. Latent and Manifest motives 5. Psychological buying motives 6. Environmental Buying Motives
1.
Product or Patronage motives:a. Product Motives:-It refers to those influences and reasons
which make the consumer to buy a certain product in preference to another. These explain why people buy a certain product. Product are of two types
i.
Primary product motives:
These motives induce a
consumer to purchase general class of the product. These motives relate to the basic needs of people like hunger, thirst, sleep.
ii.
Selective product motives: These general class
motives determine
which particular brand or item will be purchased from the Patronage motives: These are the motives which
?
determine where or from whom products are purchased. These are the considerations which induce a buyer to buy goods from specific stores. Patronage motives includes Price
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?
? ? ? ? ?
Location Quality Variety Services Personality of Salesman
2.
Emotional and Rational motives:a. Emotional
motives: These are the motives which are are needs such as thirst ,
affected by the feeling of heart. Thus, motives physiological and psychological following types ? ? ? ? ? ? Love of others Social acceptance motive Vanity motive Recreation and relaxation motive Emulative motive Comfort and convenience motive
hunger, sex attraction etc. The emotional motives are of the
b. Rational motives: These are the motives where a consumer
takes the decision of purchasing a product by his head and means considers i.e., after careful rational consideration purchases, and the logical thinking. In making price, consumer
durability,
dependability, efficiency etc.
Rational motives are of the following types: ? ? ? Monetary gain Efficiency in operation Dependability motive
3.
Inherent and Learned motives
age | 27a. Inherent
motives:
These
are
the
motives
for
the
satisfaction of which a consumer his best efforts and if these motives are not satisfied he feels mental tension
b. Learned motives: These are the motive which are acquired
or learned by a consumer from the environment and education. These motives are social status, social acceptance, religious belief, fear, security etc.
4.
Latent and Manifest motives:a. Latent motives: Motives that the consumer is unaware of or
unwilling to recognize, harder to identify require projective techniques to identify.
b. Manifest motive: Motives that the consumer is aware of and
willing to express.
5.
Psychological buying motives
sychological factors include:•
Motives-A motive is an internal energizing force that orients a person's activities toward satisfying a need or achieving a goal. Actions are effected by a set of motives, not just one. If marketers can identify motives then they can better develop a marketing mix.
MASLOW hierarchy of needs!!
• • •
Physiological Safety Love and Belonging
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• •
Esteem Self Actualization
6.
Environmental Buying Motives:The set of needs an individual experiences at a particular time are often activated by specific cues in the environment. Without these cues, the needs might remain dormant. For example, a young college student may see a new, slick-looking cell phone model with more features displayed in a store window. The exposure may make him unhappy with his old cell phone and cause him to experience tension that will be reduced only when he buys himself the new cell phone model.
2.2 Literature Review To understand your client, know their 'buying
motives'
As a salesperson you might think that people buy your product or service because of the reasons you give them. On the contrary, people buy not because of your reasons, not your company's reasons but for their very own reasons (Chitwood 1998). These reasons may not seem sensible, logical or even intelligent to us but they seem that way to the prospect. There are six different motives and they are not presented in any special order nor are they any more important than any other. They are: • Desire for gain (usually financial)
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• • • • •
Fear of loss (again, usually financial) Comfort and convenience Security and protection Pride of ownership Satisfaction of emotion
I shall refer to these as the six buying motives. You may notice that all these buying motives are emotional, not logical. People buy emotionally, not logically. People buy emotionally, then justify their decisions logically. Therefore you must provide your prospects with logical as well as emotional reasons why your product or service will benefit them. People have strong, genuine, deeply felt emotions to start with. When they buy anything, including things they buy on their own initiative that no one is trying to "sell" them, they buy for emotional reasons. You couldn't change that even if you wanted to.
Buying motives – Do you know why do they buy?
Buying motives often overlap. Suppose you just purchased a new jacket. What was your dominant motive in making that purchase? Maybe you bought the jacket for comfort; you expect it to keep you warm. You might have bought it simply because it has a style or label that you’re proud to wear or show your friends. (Chintan Bharwada) Maybe you bought it because the colour makes your eyes look bluer, or it makes you look taller and thinner, or in some way it makes you feel good about yourself — it gives you emotional satisfaction. Maybe you bought the jacket for all three reasons merged together: It’s comfortable, you’re proud to own it, and it makes you feel good about yourself.
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As a salesperson you might think that people buy your product or service because of the reasons you give them. On the contrary, people buy not because of your reasons, not your company’s reasons but for their very own reasons. These reasons may not seem sensible, logical or even intelligent to us but they seem that way to the prospect. Broadly speaking we can categories buying motives into Rational and Emotional reasons.
Effects of Consumer Motives on Search Behavior Using Internet Advertising. Kenneth C.C. Yang
Past studies on uses and gratifications theory suggested that consumer motives affect how they will use media and media contents. Recent advertising research has extended the theory to study the use of Internet advertising. The current study explores the effects of consumer motives on their search behaviour using Internet advertising. The study employed a 2 by 2 between- subjects factorial experiment design. A total of 120 subjects were assigned to an experiment condition advertising involvement (measured that contains (i.e., (high depth, motives an vs. Internet vs. low). were advertisement emotional) amount by Consumer total collected varying and of by appeals levels by the and rational product search),
search
behaviour
breadth,
demographics,
post-experiment
questionnaires. Because all three dependent variables measuring search behaviour were conceptually related to each other, MANCOVA procedures were employed to examine the moderating effects of consumer motives on the dependent variables in four product involvement-advertising appeal conditions. Results indicated that main effects for product involvements and advertising appeals were statistically significant. Univariate ANOVA also showed that advertising appeals and product involvement levels influenced the total amount of
Page | 31
search. Three-way interactions among advertising appeals, product involvement levels, and information motive were also statistically significant. Implications and future research directions are discussed. (Kenneth C.C. Yang)
Demographics and patronage motives of supercenter shoppers in the United States Jason M. Carpenter
This research provides supercenter retailers who operate within the USA with specific knowledge of the patronage motives driving crosscategory shopping in supercenters (e.g. value, one-stop shopping convenience, brands, product assortment) and identifies the demographic characteristics of cross-category shoppers. The results suggest marketing strategy implications for supercenter operators in the US market. (Jason M. Carpenter)
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3 Research Methodology
3.1Research Problem:The company wants to know more about the various factors customers that motivate them to purchase Hyundai Cars. It's very important for every marketer to know about the buying motives of the customers because it helps them to design proper policies and programs to attract customers. It also helps them to determine their advertisement budget .
•
Objective of study:? Primary Objective:I.
To find out various factors that motivates customers to buy Hyundai Cars.
? Secondary Objectives:I. II.
To find out which is the most preferred source for awareness. To find out which is the most preferred preference for buying Hyundai Cars. To find out who gives suggestion while buying Hyundai Cars. To know which class of customers is using Hyundai Cars. To know at what level customers are influence by financing facility.
III. IV. V.
3.2 Research Design:A research design is a logical and systematic plan prepared for directing a research study. It is the program that guides the investigator in the process of collecting, analyzing and interpreting observations. It is a blue print for understanding
Page | 33
project & collection of data.
There are three types of research design. I. Exploratory research design II. Descriptive research design III. Causal research design
Here, descriptive research (Cross-Sectional) design is used for analyzing buying motive of Hyundai Cars. It is very simple and more specific than exploratory study.
The descriptive study is a fact finding investigation with adequate It reveals interpretation. potential The descriptive between study aims at and identifying the various characteristics of a problem under study. relationships variables also setting the stage for further investigation later
3.3 DATA SOURCES:The researcher can gather the data & information are two types;1. Primary data 2. Secondary data • Collection of Primary data:- Primary data are collected
on
original information gathered for a specific purpose either through personnel interviews/questionnaires etc.
• Collection of Secondary data: -:- Secondary
data
for
the
Page | 34
study were collected from the library reference, technical and subject based books, journals and magazines, websites and other previous studies. To know about details of HMIL data is collected from magazine, web pages etc. In this research project I am using Primary Data collection through questionnaire. 3.4 RESEARCH INSTRUMENTS:In the marketing research it has main research instruments in collection the primary data that is questionnaire. The structured questionnaire is the research instrument to collect the primary information for this marketing research projects. A Questionnaire consists of a set of question presented to respondent for their answers. Questions may be open ended or close ended, it depends upon the Marketing Research. 3.5 Sampling Plan:a. Sample Unit:Who is to be surveyed? The marketing research must define the target population that will be sampled. The sampling unit for the project is taken from Navsari who are the current users of Hyundai Cars. Sample Size: How many customers should be surveyed large samples can give the more reliable results then small samples yet it is more costly than small samples. I have taken 150 samples in this project survey.
b. Sampling Method:-
Sampling is the process of selecting units (e.g., people, organizations) from a population of interest so that by studying the sample we may fairly generalize our results
Page | 35
back to the population from which they were chosen. In short, the process of drawing sample from a population is known as a sampling.
•
Two types of sampling methods are:I. II.
Probability Sampling Nonprobability Sampling
For Present study Nonprobability sampling method is use and in that convenience sampling technique is taken for use. Nonprobability sampling it is not based on the theory of probability. It does not provide a chance of selection each population element. The merit of this type sampling is simplicity, convenience and low cost. Convenience sampling:- In this project convenience sampling is to be used because it is less costly, time saving, and easier than probability sampling. 3.6 Contact Method:Once the sampling plan has been determined it must be decide how the respondent should be contacted i.e. by Mail, telephone, personal, and on-line-interview. In this research project I have use contact methods of personal interview & telephone interview. 3.7 Limitation of Study
1. The study was confined to only Navsari. Therefore the results
cannot be generalized.
2. The result generated out of the study is completely dependent
on the nature of the response given by the customers.
3. Short span of time for gathering data was a limiting factor.
Page | 36
Despite these limitations, a sincere attempt has been made to collect and analyze the data and present the information as accurately as possible.
4. DATA ANALYSIS & INTERPRETATION
Table: 1 Following table shows the consumers who have previous experience with Hyundai. Responses No Yes Total Interpretation:From the above frequency distribution it is found that from 150 respondent 116 has no previous experience with Hyundai & remaining 34 had been experience Hyundai before also. No. of Respondent 116 34 150 Percent (%) 77.3% 22.7% 100.00%
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TABLE: 2 Following table shows the customers who travel daily (KMS) by their Hyundai Car. Daily Kilometers Less than 30 31 to 60 Above 61 Total Interpretation: From the above frequency distribution table it is found that out of 150 respondent 44.7% customers travels less than 30 kilometers a day, 38.7% customers travels between 31 to 60 kilometers a day and remaining 16.7% customers travels above 61 kilometers a day. No. of Respondent 67 58 25 150 Percent (%) 44.7% 38.7% 16.7% 100.00%
TABLE: 3
Page | 38
Following table shows from which sources they got aware about Hyundai. Sources News paper Advertisement Experienced User Events & Promotion TV advertisement Online Source Total Interpreatation:As in this question customers has answer more than one option, so total of 307 answers is got out of survey of 150 customer and from that it is found that 35.50% of customes got aware from experience user which is highest & 4.56% of customers got information from online source which is lowest. No. of Responses 67 109 31 86 14 307 Percentage(% ) 21.82% 35.50% 10.10% 28.01% 4.56% 100.00%
TABLE: 4 Following table show who gives suggestion for buying Hyundai Suggestion No. of Respondent Percent (%)
Page | 39
Family Friends & Relatives Colleagues Total Interpreatation:-
72 58 20 150
48.00% 38.67% 13.33% 100.00%
From the above frequency distribution table it is found that out of 150 customers 48.00% of customers got suggestion from their family for buying Hyundai, 38.67% of customers got suggestion from their Friends relatives for buying Hyundai 13.33% of customers got suggestion from their Colleagues for buying Hyundai.
CHART: 1 Following Chart shows which factors mostly prefer by customers
Page | 40
Interpretation:The above table shows that most of the customers rates comfort as the most important factor for purchasing a car, then comes mileage, overall looks, driving experience, safety, price and extra features respectively.
TABLE: 5 Following table shows relationship between daily kilometers travel and Model Purchase.
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Null hypothesis (H0): Model Purchase is independent to daily Travelling. Alternative hypothesis (H1): Model Purchase is not independent to daily Travelling.
Daily KM * Model Purchase Cross tabulation Model Purchase San i10 i20 Acce Ve troX Daily KM Less than 30 Count % within Model Purcha 31 to 60 se Count % within Model Purcha Above 61 se Count % within Model Purcha Total se Count % within Model Purcha se 34 100. 0% 37 100 .0% 29 100 .0% 28 100. 0% 21 10 0. 0 % 1 2.9 % 2 5.4 % 4 13. 8% 9 32.1 % 8 38 .1 % 10 29.4 % 13 35. 1% 14 48. 3% 9 32.1 % 12 57 .1 % ing 23 67.6 % 22 59. 5% 11 37. 9% nt 10 35.7 % rn a 1 4. 8 %
Total Son ata 0 .0% 67 44.7%
0 .0%
58 38.7%
1 100 .0%
25 16.7%
1 100 .0%
150 100.0 %
Chi-Square Tests Value Pearson Chi-Square N of Valid Cases 39.455 150
a
df 10
Asymp. Sig. (2-sided) .000
a. 6 cells (33.3%) have expected count less than 5. The minimum expected count is .17.
Page | 42
Symmetric Measures Value Nominal by Nominal N of Valid Cases Contingency Coefficient .456 150 Approx. Sig. .000
Interpretation:Here, Chi-square result shows that the null hypothesis Ho is rejected. So model purchase is dependent .Here there is moderate effect of daily kilometers on model purchase as can seen from contingency coefficient value .456.
TABLE: 6 Following table shows which other factors influence for buying Hyundai. Factor Influencing more Nearby Showroom & Service Centre Availability of spares Authorization of service centre
Page | 43
No. of Responses 56 24 26
Percentag e 20.14% 8.63% 9.35%
Availability of Models & Variants Product performance Total
63 109 278
22.66% 39.21% 100.00%
Interpreatation:As in this question customers has answer more than one option, so total of 278 answers is got out of survey of 150 customer and from that it is found that 39.21% customers were influenced by product performance after that availability of models & variants 22.66%, nearbyshowroom 20.14%, authorization of service centre 9.35% & last availability of spares 8.63% respectively.
TABLE: 7 Following table shows the opinion of customers regarding the brand image of Hyundai Responses No Yes Total No. of Respondent 13 137 150 Percentage (%) 8.7% 91.3% 100.0%
Interpretation: From the above frequency distribution table it is found out of 150 customers 91.3% of customers were influenced by brand image of
Page | 44
Hyundai while making their buying decision of Hyundai Cars. 8.7% customers were not influenced by the brand image of Hyundai.
TABLE: 8 Following table shows how far celebrity endorsement influence on buying decision of customers. Level of Influence High Influenced Normal Influenced Neutral Less Influenced Not Influenced Total No. of Respondent 16 30 22 13 69 150 Percentag e (%) 10.7% 20.0% 14.7% 8.7% 46.0% 100.0%
Interpretation
age | 45The above frequency table shows that 10.7 % customers were highly influenced and 20% were normal influenced by the celebrity advertisements and 46.0% customers were not influenced towards celebrity endorsement while making buying decision.
TABLE: 9 Following table shows how far financing facility influence on buying decision of customers. Level of Influence High influenced Normal Influenced Neutral Less Influenced Not Influenced Total No. of Respondent 43 54 20 13 20 150 Percentag e (%) 28.7% 36.0% 13.3% 8.7% 13.3% 100.0%
Interpretation
age | 46The above frequency table shows that 28.7 % customers were highly influenced and 36.0% were normal influenced by the financing facility and 13.3% customers were not influenced towards financing facility while making buying decision.
TABLE: 10 Following table shows past experience with other Hyundai service station. Past Experienc e No Good 96 21 64.0% 14.0%
Page | 47
No .of Respondent
Percentage (%)
Average Poor Total
32 1 150
21.3% 0.7% 100.0%
Interpretation: The above frequency table shows that 64.0% customers has no previous experience with other Hyundai service station, 14% has good experience with other Hyundai service station & 21.3% has average experience with other Hyundai Service Station.
TABLE: 11 Following table shows gender wise buying of Hyundai Cars. Gender Male Female Total Interpretation:No. of Respondent 142 8 150 Percentage (%) 94.7% 5.3% 100.0%
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The above frequency distribution table shows that 94.7% of male buys Hyundai Cars and 5.35% of female buys Hyundai Cars. TABLE: 12 Following table shows the different age class of customers and
its influence on buying decision of Hyundai Cars.
Age Group 21 – 30 31 – 40 41 – 50 51 – 60 61 – 70 Total
No. of Respondent 42 67 27 11 3 150
Percentage (%) 28.0% 44.7% 18.0% 7.3% 2.0% 100.0%
Interpretation:The above Frequency table shows that majority 44.7% of customers falling under the age group of 31-40.The next major category was 2130 (28%).the age group 41-50, 51-60 and 61-70 were 3rd , 4th And 5th respectively. TABLE: 13 Following table shows the different occupation of customers and its influence on buying decision of Hyundai Cars. Occupation No. of Responde nt Service/Job Professional Retired Businessman Housewife Total 39 21 4 82 4 150 26.0% 14.0% 2.7% 54.7% 2.7% 100.0% Percentage (%)
Page | 49
Interpretation:From the above frequency distribution it is found that the 54.7% customers were Businessman, 26% were service , 14% were professional and 4% were retried and housewife respectively.
TABLE: 14 Following table shows the customers form different income groups. Family Annual Income(RS) 100,001 - 300,000 300,001 - 600,000 600,001 - 900,000 Above 900,001 Total Interpretation:From the above frequency distribution table it is found that majority of customers fall in group of 300,001 – 600,000 i.e. 48% and after that customers fall in group of 100,001 -300,000 i.e. 36 % and then 600,001 – 900,000 and above 900,001 respectively.
Page | 50
Frequency 54 72 20 4 150
Percentage (%) 36.0% 48.0% 13.3% 2.7% 100.0%
Table 15
Following table shows relationship between Family annual income and Model Purchase. Null hypothesis (H0): Model Purchase is independent to Family annual Income. Alternative hypothesis (H1): Model Purchase is not independent to Family annual income.
Page | 51
Family annual Income * Model Purchase Cross tabulation
Incom e 100,001 300,000 300,001 600,000 600,001 900,000 Above 900,001 Count % within Model Purchase Count % within Model Purchase Count % within Model Purchase Count % within Model Total Purchase Count % within Model Purchase 34 100.0% 37 29 28 21 1 150 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0 .0% 1 2.7% 0 .0% 1 3.6% 1 4.8% 1 100.0% 4 2.7% 1 2.9% 3 8.1% 2 6.9% 6 21.4% 8 38.1% 0 .0% 20 13.3% 10 29.4% 14 37.8% 21 72.4% 15 53.6% 12 57.1% 0 .0% 72 48.0% SantroXing 23 67.6% i10 19 51.4% Model Purchase i20 Accent 6 6 20.7% 21.4% Verna 0 .0% Sonata 0 .0% Total 54 36.0%
Chi-Square Tests Value df
Asymp. Sig. (2-
sided) Pearson Chi-Square 84.430a 15 .000 N of Valid Cases 150 a. 14 cells (58.3%) have expected count less than 5. The minimum expected count is .03.
Symmetric Measures Nominal by Nominal N of Valid Cases Contingency Coefficient Value .600 150 Approx. Sig. .000
Interpretation:-
Page | 52
Here, Chi-square result shows that the null hypothesis Ho is rejected. So model purchase is dependent on family annual income. Here there is moderate effect of Family Annual Income on model purchase as can seen from contingency coefficient value .600
5. FINDINGS
The study finds that majority of the customers were highly prefer comfort of the car. In the case of awareness & getting information about Hyundai it is founds that experience users is having high influence on customers compared to other sources. Following are the other important findings of the study:? It is found that majority of customers fall between age group of
31 – 40.
? It is found that of the users of Hyundai Cars is Businessman,
Service/job & Professionals
? Most of the customers of Hyundai fall in family income group of
300,001 – 600,000(48.00%).
? Most of the customers of Hyundai are Male (94.70%)
? It is found that 22.70% customers have experienced Hyundai before & they had chosen same company again.
Page | 53
? From the study it is found that majority of the customers travel
less than 30 Kms a day i.e. 44.70%.
? It is very important note that experienced users become an
important source for getting aware about Hyundai with 35.50% and TV advertisement at second with 28.10%. ? Majority of suggestion for buying Hyundai car is given by family 48.00%. ? Majority of Customers has preferred Comfort, Mileage & Driving experience.
? Product performance is the most influencing factor for buying
Hyundai car.39.10% customers has chosen product performance as most influencing factor.
? Most of the customer’s (.91.30%) were influenced by the brand
image of Hyundai.
? Majority of the customers were not influenced (46.00%) by the
celebrity endorsement.
? Majority of the customers were normally influenced (36.00%) by
the Financing facility. ? Majority of the customers has no experience (64.00%) with other Hyundai Service Station and 14.00% has average experience.
? It is found in Chi-Square results that there is association of daily
travelling & Family annual income on purchase of models.
? There is moderate association of daily travelling kilometers on
model purchase as seen in contingency coefficient value 0.456.
? There is moderate association of family annual income on model
purchase as seen in contingency coefficient value 0.600. ? Majority of customers recommend Hyundai Cars to others because of Engine technology, Driving Experience, Mileage, Quality of Cars etc.
Page | 54
6. CONCLUSION
• The project entitled ?on Consumer buying motives of Hyundai cars with special reference to Navjivan Cars Pvt. Ltd i.e. Navjivan Hyundai, Navsari.
•
These findings will help the company to know which factors motives customers for Buying Hyundai Car. It also helps to decide proper marketing strategies.
•
Page | 55
7. RECOMMENDATIONS
•
The company can try to improve the service quality of Hyundai Cars. The Company can improve availability of spares & parts on time. The Company can provide easy financing facility by giving them a counter in their showroom. The company can cut the cost on celebrity endorsement because study shows that customers are not influenced by celebrity endorsement.
•
• •
•
The Company can give more importance to extra features includes basic accessories, easy insurance & vehicle registration. The Company can adopt print media as a tool for source of awareness, because it is cheap compare to TV advertisement.
•
Page | 56
8. Bibliography:Books:•
Donald R.Cooper and Pamela S. Schindler. (June-2006) Ninth Edition, Business Research Methods, Tata McGraw Hill Publishing, NewDelhi.
•
Leon G. Schiffman and Leslie Lazar Kanuk (Feb 2006). Ninth Edition, Consumer Behaviour, Prentice Hall, India. Philip Kotler, Lane Keller, Abraham Koshy, Mithileshwar Jha (2008).Thirteen Edition, Marketing Management, Pearson Education, India.
•
Journals and Articles:•
• •
Roy Chitwood, Puget Sound Business Journal. Chintan Bharwada Buying motives – Do you know why do they buy? Kenneth C.C. Yang, Effects of Consumer Motives on Search Behavior Using Internet Advertising. University of Texas Demographics and patronage motives. University of South Carolina,
•
Websites
age | 57• • •
http://www.hyundai.com/in/en/main/ http://www.navjivanmotors.com http://www.carazoo.com/.../Top-10-Car-Makers-of-the-World-in2009 http://www.siamindia.com/
•
9. APPENDIX
QUESTIONNAIRE
INSTITUTE NAME: SHRIMAD RAJCHANDRA MANAGEMENT & COMPUTER APPLICATION INSTITUTE OF
LOCATION: GOPAL VIDYANAGAR, MALIBA CAMPUS, BARDOLI
Dear Sir/madam, My name is ROHAN P. DESAI & MBA student from SHRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION (SRIMCA) Bardoli and doing a project on CONSUMER BUYING MOTIVES OF HYUNDAI CARS, CONDUCTED AT NAVJIVAN CARS PVT.LTD, NAVSARI. Your response is highly valuable. I would be grateful if you could help me by filling it up honestly and legitimately. I assure that any information provided will be solely used for academic purpose and will be kept confidential. No answers are right or wrong; give the answers which you feel are the best. We would be thankful if you share some of your valuable opinion regarding the following questionnaire. 1. Have you been using any cars of Hyundai before? Yes No If yes, specify it: - ___________________
2. What is daily travelling Kilometers per day?
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Less than 30
31 to 60
Above 61
3. From which sources you got aware about HYUNDAI? Newspaper advertisement Events & Promotion Experienced user TV Advertisement Online Source
4. Who offers you suggestion for buying HYUNDAI? Family Friends & relatives Colleagues Others
If others, then specify_________________________
5. Rank in the order of your preference to buy a HYUNDAI car (in the order 1-7). Driving Experience Overall Looks Comfort safety Mileage Extra Features Price
6. Which model you have purchased as per above mention parameter that you have given a rank? Santro Xing Verna i10 Sonata i20 Other Accent ____________________
7. What other factor influence more to buy HYUNDAI Car?
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Nearby Showroom & Service Centre Authorization of service centre Product Performance
Availability of Spares Availability of models & Variant
8. Does brand image of HYUNDAI influence your buying decision? Yes No
9. How far celebrity endorsements influence your buying decision? High Influenced Less Influenced Normal Influenced Not Influenced Neutral
10.Does financing facility influence your buying decision? High Influenced Less Influenced Normal Influenced Not Influenced Neutral
11.Past experience with other HYUNDAI service station, if any? Good Average Poor
12.Why would you recommend HYUNDAI Cars to others? Specify, _____________________________________________
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________________________________________________ ________________________________________________
Demographic detail: Name Location ________________________________________ ________________________________________ ________________________________________ Occupation Age Gender Contact No. Family Annual Income ________________________________________ ______________ ______________ ______________ 100,001 – 300,000 300,001 – 600,000 Above 900,001
600,001 – 900,000
Thanks for your Co-operation
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