Consumer Buying Behavior in Two wheeler industry with special reference to Motorbikes

1.1 INTRODUCTION

The field of consumer buying behaviour studies how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and desires.
Understanding consumer behaviour and “knowing customers “is never simple. Customer may say one but do another. They may not be in touch with their deeper motivations. They may respond to influences that change their mind at the last minute.
The study of consumer behaviour is the study of how individuals make decision to spend their available resources (time, money efforts) on consumption related items. It include the study of what they buy, why they buy it, when they buy it, where they buy it, how often they it, and how often they use it.

DEFINITION OF CONSUMER BEHAVIOR

1. According to Walter & Yana – “Consumer behaviour is that process by which consumer decides to purchase, when do they purchase, how do they purchase and from where do they purchase”.
2. According to Vilky L. Williams – “This process related to personal, what they buy, why they buy and how do they buy. This is related to distribution – How are the product composes & planned and sold to consumers. And this is related to consumer market where millions of people every year purchase the products from lakes of selling points”.










1.2 OUT LOOK OF TWO-WHEELER INDUSTRY
After independence, Bajaj Auto Ltd. had an undisputed leadership over the market. The industry registered compounded growth rate of 12% during the seventies.
In phase two, Japanese companies were tying up with domestic players and new models were introduced. The growth rate for the two-wheeler industry this phase stood at 16.4%. This phase extended till early nineties. In phase three, sales started picking up in 1994. In 1995, the industry produced about one million scooters. 6 lakh motorcycles and 5 lakh mopeds. All most all the companies were going in for expansion.The manufacturers of two-wheelers distinguish their products on the basis of power, fuel efficiency, and maintenance requirement, easy in handling, style & price.
India is the third largest producer of two wheelers after Japan and China and the second largest consumer after China. Despite the poor road infrastructure and the meager purchasing power, the two-wheeler industry in India has enjoyed a wider appeal with the masses as a means of private transport. Two-wheelers are usually classified into three types: they are Scooters, Motorcycles, Mopeds and Electric two wheeler.
The motorcycle industry, has reached the state of a competitive market with a few companies producing a good range of products and present thrust is upon innovations and high efficiencies. The market has steadily moved from a sellers market to a buyers market. The companies are responding quickly to changing customer demands to stay in the business. Products are introducing various models or upgrading existing models to cater to the different segment and there is an emphasis on increasing advertisement expenditure and better service through upgraded service centers. The motorcycle segment within the two-wheeler industry showed a distinct behaviour, compared to the overall sales of two-wheelers. While the total two-wheelers sold have nearly doubled from 1991-92 to 1996-97, the sales of motorcycles have more than doubled, indicating the gradual preference of motorcycle by the consumer.


1.3 CURRENT SCENARIO
Table – i
Domestic Market Share in 2006-07

Commercial Vehicles
5%
Passenger Vehicles
14%
Three Wheelers
4%
Two Wheelers
77%



Table – ii
Production of Two Wheeler

Year
No. of Two Wheeler
2006-07
8444168



Table - iii
Domestic Sales Trend

Year
No. of Two Wheeler
2006-07
7857548









Table - iv
Export Trend

Year
No. of Two Wheeler
2006-07
619138





Table - v
Motorcycle Production Trend in India

Years
No. of Motorcycle
2001-02
2906323
2002-03
3876175
2003-04
4355168
2004-05
5193894
2005-06
6207690
2006-07
7112225














Table - vi
Motorcycle Sales Trend in India

Years
No. of Motorcycle
2001-02
2887194
2002-03
3647493
2003-04
4170445
2004-05
4964753
2005-06
5810599
2006-07
6553664




Table - vii
Motorcycle Export Trend in India

Years
No. of Motorcycle
2001-02
56880
2002-03
123725
2003-04
187287
2004-05
277123
2005-06
386054
2006-07
545887



















CHAPTER - 2
LITERATURE REVIEW


















Literature review

Industrialization has brought vast changes in the Automobile Industry, because growth and development of any area requires appropriate transportation facilities. Automobile industry is one of the fastest growing sector in our country. The rapid growth of middle class section is the primary reason for the growth of two wheeler industry. People in rural and semi urban areas are trying to elevate their life style and people in metropolitan cities are completely disappointed with the public transport system.
After independence, Bajaj Auto Ltd. had an undisputed leadership over the market. The industry registered compounded growth rate of 12% during the seventies.
In phase two, Japanese companies were tying up with domestic players and new models were introduced. The growth rate for the two-wheeler industry this phase stood at 16.4%. This phase extended till early nineties. In phase three, sales started picking up in 1994. In 1995, the industry produced about one million scooters. 6 lakh motorcycles and 5 lakh mopeds. All most all the companies were going in for expansion.
The manufacturers of two-wheelers distinguish there products on the basis of power, fuel efficiency, maintenance requirement, easy in handling, style & price.
The term consumer behaviour that consumer’s display in searching for, purchasing, using, evaluating and disposing of products and services that they expect, will satisfy their needs, consumers are highly complex individuals, subjects to a variety of psychological needs apart from their survival needs. Needs and priorities of different consumer segments differ drastically. Present day consumers have wide range of transportation needs, and they take decision on how to spend their available resources such as time, money and effort on the modes and means of transport.



Changing consumer preference
In the past seven years, two wheeler industries have seen tremendous structural change.
There are several reasons for change in consumer preferences :
· Motorcycle prices have declined at a faster rate than the decline in the prices of the scooters.
· Rising aspiration levels and westernization have led to greater preference for motorcycle, which are perceived to be more modern and masculine as compared to scooters.
· A large part of two wheelers are sold in the rural areas. Motorcycle, which are strong, sturdy and fuel-efficient, are better suited for the uneven and rough roads in the rural areas than any other two-wheeler.

The study of consumer behaviour is the study of how individuals make decision to spend their available resources (time, money efforts) on consumption related items. It include the study of what they buy, why they buy it, when they buy it, where they buy it , how often they it, and how often they use it.






























CHAPTER –3

RESEARCH Methodology
















Objectives of the Project
v To make complete analysis of Indian two wheeler industry with specific reference to Motorbikes.
v To find out the important factors influencing the purchase decision of buyers.



RESEARCH METHODOLOGY

Sample Size 100 Respondents
Sampling Unit Udaipur city
Sample Method Convenient Sampling
Data Collection Primary and Secondary
Data collected Survey
Type of research Descriptive Research
Type of Questionnaire Close ended

Analysis of data in the form of tables, graphs and charts.























CHAPTER-4
ANALYSIS AND INTERPRETATION














GENDER WISE CLASSIFICATION

Table – 1

MALE
100 %
FEMALE
0


Interpretation:-
There is not a single female respondent. Motorbike is a male vehicle.



Figure – 1





AGE WISE CLASSIFICATION


Table – 2

S.No.
AGE CLASSIFICATION :-
No. OF CUSTOMER
1.
Below 18
2
2.
Between 18-25
38
3.
Between 25-40
38
4.
Above 40
22


Interpretation:-
Majority of the respondents are in the age of 18-40. It shows that middle age person like the motorbike most.

Figure - 2




OCCUPATIONWISE CLASSIFICATION


Table – 3

S.No.
OCCUPATION
No. OF CUSTOMER
1.
SERVICE
38
2.
BUSINESS
36
3.
PROFESSIONAL
14
4.
STUDENT
12


Interpretation:-
This table shows that most of the respondents in this study are from the service class and after that respondents are from business.

Figure – 3





INCOME WISE CLASSIFICATION

Table – 4

S.No.
YEARLY INCOME

No. OF CUSTOMER
1.
Below 1 LAC
26
2.
Between 1 – 2.5 LAC
40
3.
Between 2.5 – 4 LAC
20
4.
Above 4 LAC
2

Interpretation:-
It is found that 88 respondents 40 respondents are belong to middle class family.
12 respondents are student so they are not in the income wise classification.

Figure – 4



COMPANY WISE CLASSIFICATION - Bought motorbike recently


Table - 5

S.No.
COMPANY
No. OF CUSTOMER
1.
HERO HONDA
56
2.
BAJAJ
16
3.
TVS
28


Interpretation:-
Majority of respondents have Hero Honda motorbike. It shows that Hero Honda motorbikes have very good brand name.
Figure – 5




NEED TO BUY THE MOTERBIKE

Table – 6


No. OF RESPONDENTS
RATING
ECONOMICAL
EASY
TRANSPORTATION
STYLE/LOOKS
OTHER
TOTEL RES.
1ST
30
54
14
2
100
2ND
40
26
34
0
100
3RD
40
2
58
0
100
4TH
2
0
0
0
2


Interpretation:-
Majority of respondents had the need to buy the motorbike is easy transportation. It shows that other two wheeler are not as easy as motorbike in transportation.

Figure – 6


Table – 7

Q. From where did you get the information about this bike?
(Please rank top three sources)
INFORMATIVE SOURCES
RANK
1ST 2ND 3RD
TELIVISION
28
12
22
NEWS PAPER
12
16
16
FRIENDS/RELATIVES
28
20
10
COLLEAGUE
12
10
14
MAGAZINE
2
10
6
HOARDINGS
4
10
8
NEIGHBOUR
8
12
12
SPOUSE
6
10
12
Total No. Of Respondents
100
100
100



Interpretation:-
Advertisement on TV and friends/relatives are the biggest informative source in buying the motorbike.

Figure – 7






Table – 8


Q. What were the alternatives in two wheeler, when you were thinking to buy?

VEHECAL
No. OF RESPONDENTS
SCOOTER
4
MOPED
4
MOTERBIKE
88



Interpretation:-

It was found that 88% respondent’s alternative was Motorbike. There was 4%, 4% and 4% respondents respectively whose alternatives were Scooter, Moped and No alternatives.



Figure – 8





Table – 9


COMPANY WISE ALTERNATIVES IN MOTORBIKE:-


COMPANY
No. OF RESPONDENTS
IN PERCENTAGE
HERO HONDA
52
59
BAJAJ
28
32
TVS
8
9


Interpretation:-

It was found that out of 88 respondents, 52 respondents had the alternative of Hero Honda motorbike.



Figure – 9











Table – 10


Q. Why you bought this motor bike?


No. OF RESPONDENTS
RATING
POWER
MILEAGE
PRICE
LOOKS
BRAND NAME
1ST
8
34
12
22
24
2ND
16
30
22
10
22
3RD
38
8
16
30
8
4TH
20
18
18
26
18
5TH
18
16
30
10
26




Table – 11


WEAGHTED AVERAGE MEAN:-


No. OF RESPONDENTS
S.N.
POWER
MILEAGE
PRICE
LOOKS
BRAND NAME
1
40
170
60
110
120
2
64
120
88
40
88
3
114
24
48
90
24
4
40
36
36
52
36
5
18
16
30
10
26
TOTLE
276
366
262
302
294
W.A.M.
18.40
24.40
17.46
20.13
19.60









Table – 12


REASON BEHIND THE BUYING THE MOTORBIKE


REASON
WEAGHTED AVERAGE MEAN
RANK
MILEAGE
24.40
1ST
LOOKS
20.13
2ND
BRAND NAME
19.60
3RD
POWER
18.40
4TH
PRICE
17.46
5TH



Interpretation:-

It is found that most of the respondent, bought the motorbike because of the mileage. Looks of motorbike is a second reason. Customers do not care about the price as compare to mileage and looks.




Figure – 10







Table - 13

Q. Who influenced you most, to buy this bike?

INFLUENCER
RANK
1ST 2ND 3RD
ADVERTISMENT
42
18
14
DEALER
2
4
2
FRIENDS/RELATIVES
22
22
12
COLLEAGUE
6
12
10
SELF
14
14
26
OFFER/DISCOUNT
4
2
16
NEIGHBOUR
6
16
2
SPOUSE
4
12
18
Total No. Of Respondents
100
100
100




Interpretation:-

It is found that advertisements are the biggest influencer in buying the motorbike. After it friends/relatives and customer is the influencer respectively.



Figure – 11






Table – 14


Q. On which extent, do you satisfy with your motorbike buying decision from the following?

HIGHLY SATISFY
SATISFY
DISSATISFY
HIGHLY DISSATISFY
30
52
16
2








Figure – 12








CHI-SQUARE TEST


Null Hypothesis (Ho)
The need to buy the motorbike is independent of the income of employees.



Alternative Hypothesis (H1)
The need to buy the motorbike is a dependent of the income of employees.




















Methodology
Income
Economical
Easy Transportation
Style & Other
Total
Below 1 Lac
8
12
6
26
Between 1–2.5 Lac
14
20
6
40
2.5 & above
6
8
8
22
Total
28
40
20
88



O
E
(O-E)(O-E)/E
8
8.2727
.0089
14
12.7272
.1272
6
7
.1428
12
11.8181
.0027
20
18.1818
.1818
8
10
.4
6
5.9090
.0013
6
9.0909
1.0509
8
5
1.8
Total
Calculated value
3.7156


Calculated value = 3.7156
D.f. = (r-1) (c-1) = 4
The table value of Chi square for 4 D.F. at 5% level of significance is 9.488. Since calculated value is smaller than table value. Therefore null hypothesis is accepted.





















CHAPTER - 5
FINDINGS, SUGGESTIONS & LIMITATIONS



















5.1 FINDINGS

1. 56% respondents have Hero Honda motorbike and 28% have Bajaj, rest of the 16% respondents have TVS motorbike. It means that Hero Honda is the market leader in motorbikes in Udaipur city.
2. Easy transportation is the top need. After it, respondents need is style/looks in buying the motorbike.
3. Advertisement on TV and friends/relatives are the biggest informative source in buying the motorbike.
4. All 100 respondents are having motorbike, out of 100, 88 respondents had the second preference was also motorbike. Out of those 88 respondents 52 had Hero Honda as a second preference. In realty out of 100 respondents, 56 respondents are possessing Hero Honda and among 56 respondents, 52 had Hero Honda as a second preference.
5. Majority (34%) of the respondents bought the motorbike of any particular brand because of mileage and 22% respondents preferred looks of motorbike in buying the motorbike.
6. Majority (42%) of the respondents influenced by advertisement in buying the motorbike. Friends/relatives (22%) are the second top influencer.
7. Majority (52%) of the respondents are satisfy and 30% respondents are the highly satisfy in motorbike buying decision.
8. It is concluded that, there is no significant association between income and need to buy the motorbike in Udaipur city.









5.2 SUGGESTIONS

1. Companies should give more emphasize on News Paper as an informative tool for giving the information about motorbike.
2. If Company’s technical department will work in increasing the mileage and stylish look of motorbike so more customer will attract. After the above process if the company increases the price of motorbike, even than customer will buy because it is found that customer do not care as much about the price as care about mileage and looks of motorbike.
3. The Dealers must emphasis on good and healthy relationship with the customers because customers are very much affected by their friends and relatives who are using the motorbike.
4. The complaint handling of consumer should be very important for the company.
5. Companies should work in creating the brand name like fulfilling the social responsibility.
6. Regular customer feedback should be there so company can know regularly that, what is customer want.














5.3 LIMITATIONS

1. As the study done in Udaipur city, it did not cover the broad spectrum of the buying behavior of the customer while purchasing a motorbike.
2. Due to time constraint only 100 respondents were taken for the survey.
3. Due to time constraint and deep study only Hero Honda, Bajaj and TVS companies were taken in the study.


























REFERANCES

1. Mrs. A.Santosh Kumari, Dr. D.Raghunath Reddy and Mrs. M.L.Kameswari ‘Consumer buying behavior in two wheeler industry with special reference to Hero Honda Motorbikes’
2. Kotler, Philip, Marketing Management
3. C.R.Kothari, Research Methodology methods and techniques
4. http://www.indianembassy.org/
5. http://www.siamindia.com/









































APPENDIX





















QUESTIONNAIRE

Name __________________________ Gender (M/F) ______
Age:
a) Less than 18 years
b) More than 18 years & Less than 25 years
c) More than 25 years & Less than 40 years
d) 40 years & above

Occupation:
(a) Service (b) Business (c) Professional (d) Student

Income Group –
a) Less than Rs.1 lack P. year
b) Less than Rs.1 lack & Less than Rs.2.5 lac P. year
c) Less than Rs.2.5 lac & Less than Rs.4 lac P. year
d) Rs.4 lac & above P. year

Q.1 Did you motorbike recently (within last four months) Yes/No

Q.2 Which motorbike did you buy recently ?
_______________________________________________________________

Q.3 Do you have any other two wheeler ? Yes/No
If yes, please specify_________________________________________________

Q.4 what are the need to buy the motor bike ?
Please rate the followings as 1,2,3,4 according your preference (as 1 for toppest and 4 for least need)
Economical
Easy Transportation
Style/Looks
Other





Please specify, other_______________________________________________

Q.5 From where did you get the information about this bike ?
(Please rank top three sources)
T.V. _____________ Magazine ____________

Newspaper _____________ Hoardings ____________

Friends/Relatives_____________ Neighbour ____________

Colleague _____________ Spous ____________


Q.6 What were the alternatives in two wheeler, when you were thinking to buy ?

Scooter _____________

Motorbike _____________

Moped _____________


Q.7 Why you bought this motor bike ?
Please rate the following according your preference (as 1 for best and 5 for least)
Power
Mileage
Price
Looks
Brand Name







Q.8 Who influenced you most, to buy this bike ? (Please rank top three influencer).

Advertisement _____________ Self ___________

Dealer _____________ Offer/Discount ___________

Friends/Relatives_____________ Neighbour ___________

Colleague _____________ Spouse ____________



Q.9 On which extent, do you satisfy with your motorbike buying decision from the following?

(a) Highly satisfy (b) Satisfy

(c) Dissatisfy (d) Highly Dissatisfy