Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh PDF

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Asian Journal of Multidisciplinary Studies Available online at www.ajms.co.in Volume1, Issue 5, December 2013 ISSN: 2321-8819 Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh. Rakesh Kumar Assistant Professor in Commerce Shaheed Bhagat Singh College University of Delhi- ...

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Asian Journal of Multidisciplinary Studies

Available online at www.ajms.co.in

Volume1, Issue 5, December 2013 ISSN: 2321-8819 Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh. Rakesh Kumar Assistant Professor in Commerce Shaheed Bhagat Singh College University of Delhi- India ABSTRACT The term consumer behaviour is defined as the behaviour that consumer display in searching for, purchasing, using, evaluating and disposing of product, services and ideas that they expect will satisfy their needs. The study of consumer behaviour is the study of how individual make decisions to spend their available resources (money, time, and effort) on consumption-related items. It includes the study of what they buy, why they buy it, how they buy it, when they buy it, where they buy it, and how often they buy it. Consumer behaviour is the process whereby, individuals decide whether, what, when, where, how, and from whom to purchase goods and services. The automobile industry today is the most lucrative industry. Due to the increase in disposable income in both rural and urban sector and easy finance being provided by all the financial institutes, the passenger car sales have been significantly increased. In this research paper an attempt has been made to get answer the of some questions regarding brand preferences, brand loyalty, impact of price and quality on the market of four wheeler, consumer preferences regarding selection of dealer and mode of payment and impact of promotional activities, after sale services, mileage, resale value on the purchase decision of durable goods like four- wheeler. Key Words:- Consumer Behaviour; Brand Preferences; Brand Loyalty; Promotional Activities; After Sales Services; Resale Value. consumer behaviour. As the change comes in these INTRODUCTION factors, consumer behaviour also changes. Consumer is a king in the kingdom of market. Following are the factors which affect consumer To understand his behaviour is very necessary for behaviour: (1) age (2) sex (3) marital status (4) the marketing man. Consumer is the focus of all the income (5) family background (6) education (7) marketing activities. Knowledge of his activities occupation (8) family size (9) geographic factors and behaviour is one of the most important aspects (10) psychological factors. In this grim battle for of the marketing. The consumers buy the goods to snatching maximum share of market, only those satisfy a number of needs and drives. Human wants producers are destined to emerge victorious who are unlimited and varying time to time; from place will be able to read the pulse of the buyers. And to place and man to man. The study of consumer this is here, where buyer behaviour has a very behaviour holds great interest for us as consumers, important role to play. as students and scientists, and as marketers. REVIEW OF LITERATURE Consumer Behaviour is a rapidly growing discipline of study. There are various reasons why S ch m itt, Bernd H . a nd Lau ret te, Du be the study of consumer behaviour developed as a R ioux (1988) , us ing th e con tex t of separate marketing discipline are shorter product Adv er tis ing, p ack ing and con su mer life cycles, increased interest in consumer cho ice, thr ee exper imen ts w er e protection, growth in marketing services, growth of conclud ed to tes t the pred iction s of international marketing, development of computer g ender Sch ema th eor y th at gender and information technology and increasing s ch ematic ( sex - typ ed) ind iv idu als and competition, etc. Consumer research process g ender -aschematic (non - sex - typ ed) involves six major steps (1) defining research ind iv idu als d iff er in th e way th ey pro cess objectives (2) collecting and evaluating secondary and ev alu ate info r mation related to data (3) primary research design (4) collecting g ender . Res ults Ind icates s trong sex primary data (5) analysing data and (6) report eff ects, but the pr ed icated s ex - type preparation. eff ects w er e no t ob tain ed. Consumer behaviour doesn't remains the same or constant in every situation it changes time to time. There are various factors which affects

Yadav , Man jit S . (1994) , obs erved that bund ling, th e join t o ff er ing of two or mo r e items , was a co mmo n s elling 154

Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh.

s trateg y, yet little r es ear ch h ad b een conducted on bu yers evaluation of bund le off er s. The au thor d evelop ed and tes ted a mo d el of bund le ev alu ation in wh ich bu yers anch or ed their evalu ation on the item p er ceiv ed as mo s t impo r tant and th en mad e adjus tmen ts on th e b as is of th eir ev alu ations o f th e r emain ing bund le items . The r esu lts o f two co mp u ter ized laborato r y exper imen ts sugg es ted th at p eop le to examin e bund le items in a d ecr eas ing ord er of p erceiv ed impor tance and make adjus tments to form th eir ov erall ev alu ation of bund le. F ernan do, F lo res ., Ma ria, F lores and Cha rles, Sp inosa (2003), s tud y r ev ealed th at mos t co mp an ies b eliev e th at s uccess fu l en tr y in to low er -in co me, e mer g ing markets requ ir es pr ice s lu sing by sub tracting produ ct f eatures. Mor eover , co mp an ies g ener ally believ e th at it is appropr iate to appeal to po ten tial cus to mer s s tark ly as con su mers who w an t th eir n eed satisf ied. How ever th is ar ticle d emons trates th at co mpan ies can appeal to cu s to mers as produ ctive agen ts who w an t to build and tr ans for m th eir lives. O ffer ing custo mer s produ ctiv ity - enhan cing s ys tems coup led w ith cu lturally appropr iate off er ing w ill allow th em to ch arg e appropr iately and s ucceed in lower - in co me, emer g ing mar k ets . Y eung , W. M. an d Rob ert, S . (2009), wh en consumer s g et verbal informatio n abou t a p rodu cts attr ibu tes, the influ ence of the aff ect th ey ar e exp er iencing on th eir product evalu ation s dep ends on th eir b elief th at th e produ ct should b e judg ed on th e b as is of h edon ic v ersu s u ltitar ian cr iter ia. W hen consu mer s s ee th e produ ct b efor e th ey r eceiv e att r ibu tes infor mation, how ever, th e produ cts appear ance can stimu late th em to for m an aff ect -b ased in itial impr es s ion th at th ey later us e as a bas is for judg men ts ind epend en t of th e cr iter ia th ey wou ld o th erw is e app ly. Con sequ en tly, th e mood th at con sumer s h appen to b e in has d iff er en t eff ects on their judg men ts th an it wou ld o therw is e. R ES EARCH METHODO LO HY: 1. M ETH ODO LOGY CO LLEC TON:

OF

DA TA

Th e pr es en t s tud y h as b een conducted w ith th e h elp o f pr imar y and s econdar y d ata to und ers tand th e

consu mer W heeler.

b ehav iour

tow ard s

Fou r

PR IMARY DA TA Th e pr imary d ata for th e s tud y h as b een co llected w ith th e help of in terv iew s, p erson al ob serv ation, p ilo t s urvey and qu es tionn air e. S EC ONDARY DA TA Th e second ar y d ata h as b een co llected fro m the fo llow ing sour ces : 1.

Books and journ als .

2.

Res ear ch repor ts.

3.

D ealer s.

4.

Mag azines, n ewsp apers.

5.

W ebs ites .

2. SAMPLE D ES IGN:

SI ZE

ar ticles

AND

f ro m

SAMP LE

Th e co mp lete H imachal Pr ad esh acts as th e un iv ers e and ever y cons u mer who has four wh eeler of an y co mp an y in th e s tate und er s tud y as on D ec. 31, 2008 is th e population for th e s tud y. Keep ing in v iew th e time f actor s for th e co mp letion of th e pr esen t s tud y on ly a s amp le of 1000 cons u me rs h as b een s elected. The s amp le con stitu tes propor tion ately all major b rand s of four wh eeler so ld b y d iff eren t co mp anies in th e s tate und er s tud y. Fu rth er , d esign ing a samp le, du e care has been tak en to cover all demo gr aph ic v ar iab les lik e ag e, s ex, in co me, education, b ackg round of consu mer s, etc. in ord er to mak e th e s amp le mo re r epr es en tativ e. 3. SAMP LING METHOD: Mu ltip le -s tag e s amp ling h as b een u sed : S tage On e: A t th is s tage, us ing clus ter s amp ling , th e who le ar ea of H imach al P rad esh has been d iv id ed in to fou r group s, taking three d is tr icts in each group. S tage Two: A t th is s tag e, b y u s ing judg men t- cu m- conv en ience s amp ling each group h as b een d iv id ed in to rur al & urb an ar ea. S tage Three: A t th is s tag e, b y u s ing quo ta s amp ling, a samp le of 1 ,000 consu mer s h as b een taken

Asian Journal of Multidisciplinary Studies, 1(5) December, 2013

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Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh.

propor tion ately fro m ru ral and urb an popu lation k eep ing in v iew the nu mb er of four wheeler so ld in ru ral & urb an areas. S tage Fou r: A t th is s tage, the u ltimate s amp le was selected on th e bas is of conven ien t -cu m-judg men t samp ling.

2.

To examine the impact of price and quality on the market of four wheeler.

3.

To study the consumer preference regarding the selection of dealer and mode of payment.

4.

To highlights the impact of promotional activities, after sale services, mileage and resale value on the purchase decision of durable goods like four-wheeler.

OBJECTIVES OF THE STUDY: The objectives of the present study are: 1.

To study the brand preference & brand loyalty of consumer.

DA TA ANALAS IS AND IN TERP R ETA TION: TA BLE-1 .1 BACKGR OUND OF CON SUMER AND BRAND OF FOUR WH EELER

BACKGROU ND RURAL URBAN TOTAL

BRAND OF FOUR WHEELER MARU MAHIND TATA HYUND TOYOTA ANY TI RA AND MOTO AI MOTORS OTHER TOTAL SUZU MAHIND RS MOTOR * KI RA S 279 151 112 50 20 20 632 (44.1) (23.9) (17.7) (7.9) (3.2) (3.2) (100.0) 171 49 38 50 30 30 368 (46.5) (13.3) (10.3) (13.6) (8.2) (8.2) (100.0) 450 200 150 100 50 50 1000 (45.0) (20.0) (15.0) (10.0) (5.0) (5.0) (100.0) Not e: F igur e in par en thes is dep icts th e p er cen tag e So urce: D ata co llected through qu es tionn air e. Any Ot her*: F iat, Ford, Skod a, Hond a, Ch evro let etc.

I t is obv iou s fro m the tab le 1.1 th at the con su mer who b elongs to ru ral ar ea, maj or ity o f th em hav e pu rch as ed four wheeler of Maru ti Suzuk i, Mah indra & Mah ind ra and Tata Mo tor s, whereas con su mers who belong to urb an ar ea major ity of them h ave pur chas ed four wheeler of Maru ti, H yund ai and Mah indr a. So it can be con cluded that the d emand of th e fou r wh eeler of Maru ti, Mah indr a and T ata Moto rs is h igh er in rur al ar ea th an th at of urb an ar ea. On o th er h and, in urb an ar ea the demand of Maru ti, Hyund ai, Mah ind ra and o th er b rand is h igh er. TA BLE-1 .2 I NCOM E OF CONS UMER AND BRAND OF F OUR W HEELER BRAND OF FOUR WHEELER INCOME MARUTI MAHINDRA TATA HYUNDAI TOYOTA ANY SUZUKI & MOTOR MOTORS MOTOR OTHER* MAHINDRA BELOW 48 --10 -------7,500 (82.8) (17.2) 7,500 TO 209 48 39 80 20 10 15,000 (51.5) (11.8) (9.6) (19.7) (4.9) (2.5) 15,000 150 121 68 20 20 10 TO (38.6) (31.1) (17.5) (5.1) (5.1) (2.6) 22,500 ABOVE 43 31 33 --10 30 22,500 (29.3) (21.1) (22.4) (6.8) (20.4) TOTAL 450 200 150 100 50 50 (45.0) (20.0) (15.0) (10.0) (5.0) (5.0) Asian Journal of Multidisciplinary Studies, 1(5) December, 2013

TOTAL

58 (100.0) 406 (100.0) 389 (100.0) 147 (100.0) 1000 (100.0) 156

Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh.

Th e tab le1 .2 r ev eals th at the cons u mers whos e in co me level is les s, th ey h ave pur chas ed four wh eeler of Maru ti co mp an y and the cons u mers whos e inco me level is h igh er, th ey h av e pur chas ed four wh eeler o f T ata Mo tors , Mah ind ra and o th er b rand s. TA BLE-1 .3 BRAND OF FOUR WHEELER AND C OMMITM ENT O F PURCHA SE BRAND MARUTI SUZUKI MAHINDRA & MAHINDRA TATA MOTORS HYUNDAI MOTORS ANY OTHER* TOTAL

COMMITMENT TO PURCHASE TAKE WHAT ASK FOR NEXT SAME BRAND THE SELLER PREFERENCE FROM OTHER OFFER SHOWROOM 19 29 402 (4.2) (6.4) (89.3) 29 9 162 (14.5) (4.5) (81.0) --9 141 (6.0) (94.0) 10 20 70 (10.0) (20.0) (70.0) --10 40 (20.0) (80.0) 68 87 845 (6.8) (8.7) (84.5)

TOTAL 450 (100.0) 200 (100.0) 150 (100.0) 100 (100.0) 50 (100.0) 1000 (100.0)

I t is ev ident fro m the tab le 1 .3 that co mmit me n t to pur chas e Tata Mo tor s, Maru ti Su zuk i and Mah ind ra & Mah indra is ver y s trong. Co mmit men t to purchase H yund ai and To yo ta and o th er br and is qu ite unsatisf actor y. TA BLE-1 .4 BRAND OF F OUR WHEELER AND SA TIS FAC TI ON W ITH THE QUA LI TY BRAND

MARUTI SUZUKI MAHINDRA & MAHINDRA TATA MOTORS HYUNDAI MOTORS TOYOTA MOTORS ANY OTHER* TOTAL

SATISFACTION WITH THE QUALITY HIGH MODERATELY LOW SATISFIED SATISFIED SATISFIED 246 194 10 (54.7) (43.1) (2.2) 144 56 (72.0) (28.0) 82 68 (54.7) (45.3) 50 40 10 (50.0) (40.0) (10.0) 50 (100.0) 40 10 (80.0) (20.0) 612 368 20 (61.2) (36.8) (2.0)

TOTAL

450 (100.0) 200 (100.0) 150 (100.0) 100 (100.0) 50 (100.0) 50 (100.0) 1000 (100.0)

I t is app ar en t fro m table 1.4 that maj or ity of th e con sumer s ar e h igh ly s atisf ied w ith the b rand they h av e purch ased. Bu t th e con su mers of To yo ta Motor s, Mah indr a and o th er b rand ar e h igher in p er cen tage who s trong ly op ine that they are h igh ly s atisf ied w ith the quality o f th eir br and, wh ereas con su mer of Maru ti, Tata Mo tor s and H yund ai Mo tor s h ave no t suppor ted th e s tatemen t s trong ly that they ar e h igh ly s atisf ied w ith the qu ality of th eir four wh eeler. TA BLE -1.5 C LAS SI FICA TI ON OF CONS UMERS RESPON S ES O N TH E BA SIS OF TH EIR O PIN ION R EGARD ING PR IC E AF F EC T TH E MAR KET O F FOUR WH EELER. NATURE OF RESPONSES -HIGH IMPACT MODERATE IMPACT LOW IMPACT NO IMPACT TOTAL

SCALING -4 3

AFFECT OF PRICE ON THE MARKET OF FOUR WHEELER FREQUENCY %AGE 621 62.1 328 32.8

2 1 ----

Asian Journal of Multidisciplinary Studies, 1(5) December, 2013

41 10 1,000

4.1 1.0 100.00

157

Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh.

Th e tab le 1.5 r ev eals th at 62.1% con su mers have op in ed th at pr ice high ly affects th e market of four wheeler and on ly 1% cons u mers op in ed that it do es no t aff ect th e mar k et of four wheeler. Th is shows th at majority of the respond en ts are ag ree that pr ice a ff ects th e mar k et of four wheeler. TA BLE-1 .6 C LAS SI FICA TI ON OF CONS UMERS RESPON S ES ON TH E BAS IS OF THEIR O PIN ION R EGARD ING QUA LITY A FF ECT TH E MARK ET OF F OUR W HEELER . NATURE OF RESPONSES -HIGH IMPACT MODERATE IMPACT LOW IMPACT NO IMPACT TOTAL

SCALING

AFFECT OF QUALITY ON THE MARKET OF FOUR WHEELER FREQUENCY %AGE 641 64.1 349 39.9

-4 3 2 1 ----

10 0 1,000

1.0 0 100.00

I t is ev id ent fro m th e tab le 1.6 that 64.1 % con su mers have op ined th at qu ality h igh ly aff ects the market of four wh eeler, no con su mer has op ined that it does no t aff ec t th e mark et of four wh eeler . TA BLE-1 .7 BACKGR OUND OF CON SUMER AND S ELEC TI ON O F D EA LER BACKGROUND RURAL URBAN TOTAL

SELECTION OF DEALER AUTHORISED ANY OTHER DEALER DEALER 593 39 (93.8) (6.2) 318 50 (86.4) (13.6) 911 89 (91.1) (8.9)

TOTAL 632 (100.0) 368 (100.0) 1000 (100.0)

I t is obv iou s fro m tab le 1.7 th at no doub t s ligh tly mo r e th an on e - ten th of consu mer s op in ed that th ey wou ld lik e to bu y four wheeler fro m au thor ized dealer on ly. Rur al con su mer s ar e h igh ly in percen tage who hav e rep lied th at they wou ld like to pur chas e the four wheeler fro m au thor ized dealer on ly. TA BLE-1 .8 BACKGR OUND OF CON SUMER AND S ELEC TI ON O F MOD E OF PA YMEN T SELECTION OF MODE OF PAYMENT BACKGROUND

RURAL URBAN TOTAL

TOTAL CASH PAYMENT 161 (25.5)

INSTALLMENT PAYMENT 471 (74.5)

632 (100.0)

69 (18.8) 230 (23.0)

299 (81.2) 770 (77.0)

368 (100.0) 1000 (100.0)

I t has been ob serv ed fro m tab le 1.8 that irr esp ectiv e of th eir b ackground major ity of con su mers hav e op ined th at they lik e in s tallmen t method of payment fo r dur ab le goods .

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Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh.

TA BLE- 1.9 I NCOM E OF CONS UMER AND SELECTION OF M OD E OF PAYMEN T S EL E CTION O F MODE OF IN CO ME PAY MENT TO TAL CASH PAYMEN T IN STA LL MEN T PAY MENT BE LOW 7,500 20 38 58 (34.5 ) (65.5 ) (100.0 ) 7,500 TO 15,000 110 296 406 (27.1 ) (72.9 ) (100.0 ) 15,000 TO 22,500 79 310 389 (20.3 ) (79.7 ) (100.0 ) A BOVE 22,500 21 126 147 (14.3 ) (85.7 ) (100.0 ) TO TAL 230 770 1000 (23.0 ) (77.0 ) (100.0 ) I t is dep icted fro m the tab le 1.9 that majo r ity of con su mer s wheth er they b elong to low er in come g roup or h igher inco me group like ins tallmen t method of p aymen t. Th e consu mer s who se in come lev el is low ar e les s in per cen tage who h ave op in ed that th ey pr ef er in stallmen t method, wher eas th e consu mers whos e in co me lev el is h igh er th ey are h igh er in p er cen tag e who h av e op ined th at they pr ef er in s tallmen t method of paymen t. TA BLE-1 .10 BRAND OF FOUR WHEELER AND RA TING O F PROMO TIONA L AC TIV I T IES BRAND MARUTI SUZUKI MAHINDRA & MAHINDRA TATA MOTORS HYUNDAI MOTORS TOYOTA MOTORS ANY OTHER* TOTAL

RATING OF PROMOTIONAL ACTIVITIES EXCELLENT VERY GOOD GOOD 132 235 83 (29.3) (52.0) (18.4) 40 65 58 (20.0) (32.5) (29.0) 60 40 (60.0) (40.0) 60 40 (60.0) (40.0) 40 (80.0) 10 10 (20.0) (20.0) 284 430 209 (28.4) (43.0) (20.9)

POOR 37 (18.5) 10 (20.0) 30 (60.0) 77 (7.7)

TOTAL 450 (100.0) 200 (100.0) 100 (100.0) 100 (100.0) 50 (100.0) 50 (100.0) 1000 (100.0)

I t is clear fro m th e table 1 .10 th at pro mo tional a ctiv ities of H yundai, Maru ti an d T ata Mo tors ar e v er y good, pro mo tion al activ ities of Mah indra & Mah ind ra ar e av er age and pro mo tion al activ ities of To yo ta Mo tor s and oth er br and ar e poo r. So , it is sugg es t ed to Mah indra & Mahindr a, To yo ta Mo tor s and o ther br and of fou r wh eeler co mp an ies to imp rov e th e lev el of th eir p ro mo tion al activ ities . TA BLE-1 .11 BRAND OF FOUR WHEELER AND RA TING O F A FTER SA LE S ERV ICES BRAND MARUTI SUZUKI MAHINDRA & MAHINDRA TATA MOTORS HYUNDAI MOTORS TOYOTA MOTORS ANY OTHER* TOTAL

RATING OF AFTER SALE SERVICES EXCELLENT VERY GOOD POOR GOOD 150 235 56 9 (33.3) (52.2) (12.4) (2.0) 20 63 98 (10.0) (31.5) (49.0) -

-

-

-

-

-

-

20 (40.0) 275 (27.5)

150 (15.0)

19 (12.7) 40 (40.0) 10 (20.0) 20 (40.0) 208 (20.8)

Asian Journal of Multidisciplinary Studies, 1(5) December, 2013

110 (73.3) 50 (50.0) 30 (60.0) 10 (20.0) 307 (30.7)

VERY POOR 19 (9.5) 21 (14.0) 10 (10.0) 10 (20.0) 60 (6.0)

TOTAL 450 (100.0) 200 (100.0) 150 (100.0) 100 (100.0) 50 (100.0) 50 (100.0) 1000 (100.0)

159

Consumer Behaviour in Four Wheeler Industry –A Case Study of Himachal Pradesh.

I t is obv ious fro m th e tab le 1.11 that consu mers are h igh ly s atisf ied with af ter s ale s erv ices o f Maru ti, mod erately satisf ied w ith af ter sale s erv ices of o th er brand and un satisf ied w ith af ter sale serv ices of Mah indr a, Tata Mo tors , To yo ta Motor s and H yun d ai. TA BLE-1 .12 BRAND OF FOUR WHEELER AND RA TING O F M ILEAG E BRA...