Project report on

“Identifying car buying behaviour and preference of

consumers in India”

Submitted By:
Mohit Khurana
(2K17/EMBA/526)

Under the Guidance of:

Dr. Rakesh Kumar Jha
Asst. Professor

DELHI SCHOOL OF MANAGEMENT

Delhi Technological University
Bawana Road Delhi 110042
Jan - May 2019
 DECLARATION

I, Mohit Khurana, student of EMBA Batch 2017-19 of Delhi School of

Management, Delhi Technological University, bawana Road, Delhi-42 declare
that final dissertation Report on “Identifying Car buying behavior and
preference of consumers in India” submitted in partial fulfilment of Degree of
Masters of Business Administration is the original work conducted by me.
The information and data given in the report is authentic to the best of my
knowledge.
This Report is not being submitted to any other University for award of any
other Degree, Diploma and Fellowship.

Mohit Khurana

Place: New Delhi

Date:

ii
 CERTIFICATE

This is to certify that the dissertation report titled “Identifying Car buying
behavior and preference of consumers in India” is a bonafide work carried
out by Mr. Mohit Khurana of MBA 2017-19 and submitted to Delhi School of
Management, Delhi Technological University, Bawana Road, Delhi-42 in partial
fulfillment of the requirement for the award of the Degree of Masters of
Business Administration.

Signature of Guide Signature of Head (DSM)

Seal of Head
Place:
Date:

iii
 ACKNOWLEGEMENT

First of all, I would like to thank Dr Rakesh Kumar Jha, who was my guide and
my mentor during this project, for providing me with the opportunity to do this
dissertation under his guidance and expertise.

I would also like to thank Prof. Rajan Yadav, HOD at Delhi School of
Management, for his constant help and support throughout the project.

I also extend my gratitude to my family and friends who provided me their

support whenever I needed it.

Lastly, I would like to thank God for giving me the skills and the patience
because of which this project was made possible.

Mohit Khurana

iv
 Executive summary

Indian automobile market is fourth largest in the world. And it is seventh largest
in the commercial vehicle manufacturing. Indian consumers are changing so do
their preferences. There are lots of factor for change in behavior. Primarily
being the change in the social character. People prefer to stay alone and decide
on their own. Individualism is on rise in the Indian society, which is a major
change giving rise to a whole new market.
The rise in per capita income and disposable income, not only in metros but also
in tier-2 cities, gave boost to the consumer market. The purchasing power of the
consumer is high as a result market is having positive sentiment. The social as
well as economical change led to introduction of new products in the market.

In the report, we surveyed people from different background in order to

understand the consumer preference and behavior while buying car. We asked
them variety of question to understand what factors impact them and what
strategies companies can make to tackle them. After analysis of the responses,
firstly, we found that safety and performance are the two top-most factor that
companies must consider in cars. Secondly, Internet is the most sought platform
to search information related to cars. Thirdly, when it comes to promoting and
branding, companies must consider that societal status is determined by the cars.
The strategy for the pre-sale journey must be smooth because consumer almost
decide their car even before visiting the dealership.
Lastly, Consumer gets attracted to the offers and discounts provided by the
automobile companies which is a great tool to attract during off season or year-
end.
In India automobile sector is growing and it will keep on growing further at a
good pace. The result of the report can shape the decision of the consumer so
companies must consider it during preparation of their strategies.

v
 TABLE OF CONTENTS

Table of Contents
1. Introduction..................................................................................................... 1
1.1 Introduction................................................................................................. 2
1.2 Industry profile ........................................................................................ 6
1.3 Objectives of study ............................................................................ 14

2. Literature review........................................................................................... 15
2.1 Introduction............................................................................................... 16
2.2 Purchase trigger..................................................................................... 16

3. Research methodology ............................................................................... 19

3.1 Research process steps .......................................................................... 20
3.2 Research design .................................................................................... 21
3.3 Determination of sample plan and size ............................................ 23
3.4 Errors in the study ......................................................................... 23
3.5 Limitations of study .................................................................... 24

4. Findings, Analysis and recommendations ............................................... 25

4.1 Analysis .................................................................................................... 26
4.2 Findings .................................................................................................. 38
4.3 Recommendations............................................................................. 39

5. Conclusion .................................................................................................... 41
5.1 conclusion ............................................................................................... 42

6. Bibliography.................................................................................................. 43
6.1 Bibliography.............................................................................................. 44

vi
 LIST OF FIGURES

[Link] Description Page no.

1 Consumer satisfaction 3
2 Buying process steps 4
3 Satisfaction-value relation 5
4 automobile sector in India 6
5 Number of automobile produced in India 7
6 Number of automobile sold in India 7
7 % share of each segment in total production 8
8 Number of automobile exported 9
9 Gross turnover of automobile manufacturer in India 10
10 Purchase trigger 16
11 Car purchase decision making 18
12 Research project steps 20
13 Classification of Research design 21
14 Graph-1, source of information 26
15 Graph-2, factors influencing buying decision 27
16 Graph-3, frequency of changing car 28
17 Graph-4, who influence your decision 29

18 Graph-5, new or old car 30

19 Graph-6, societal status 31
20 Graph-7, Time taken in buying car 32
21 Graph-8, Expenditure for buying car 33
22 Chart-9, various factors 35

vii
 Chapter-1

INTRODUCTION
1.1 Introduction

It is truly said that if one is satisfied enough only then they will recommend it to
others otherwise it could have negative implications. Word of mouth is one such
medium of promotion that is free and could reach to wide audience but there
are few downside as well. A firm has no control on this type of publicity, it can
only be controlled by changing the perception of the consumer. So it is very
important to determine the consumer perception as it determine the success of
the product as well as company.
The same is a lot of interest to customers as well for it helps them make the
purchase decision.
There are few purchases which a person makes once or twice in his/her own
life (especially in case of middle class). A car being one of those few important
purchases that a household makes. This project answers the most important
question that continuously give headache to the car manufacturers.

“What are the essential features in a car that initiate the willful purchase? ”

This question is a major headache for all the automobile companies and they all
thrive to find out answer to this.
The research report provides the insights about the consumer perception and
how they behave while making purchase decisions. It also provide deep
insights about the critical factors that influence them. The study will help the
OEM’s to better understand those factors that impact the consumer perception
and what are the actions required to meet those needs.
Companies can carry out the comparative analysis to find out where they stand.
Moreover they can find out ways to leverage their strength as well as ways to
overcome weakness.
They can change their processes to match the industry benchmark and create a
USP of their product which helps them in differentiating their products.

2
The measurement of consumer satisfaction helps the company in determining
the area where they need to focus and stimulate the improvements in the
processes and practices followed by the company.
Customer expectations may be defines as the attributes defined by the
customer about the product or service.
Customer satisfaction cannot be satisfied by mere fulfilling the consumer
requirement because it is primary expected output from the company. However
failing to satisfy this need will cause dissatisfaction among consumers.
Key factors that satisfy the customer are as follows:
• Quality of the product
• Packaging of the product
• Keeping delivery commitments
• Price
• Responsiveness by company
• Ability to resolve complaints and reject reports
• Overall communication
• Accessibility to the service/product
• Attitudes towards the product

Fig. 1

3
The consumer buying journey involves the following steps:

Problem
Recognition

Information search

Evaluation

Decision

Bu y

Post Purchase
Dissonance

_/

Dissatisfaction = Satisfaction =
Brand Rejection Brand Acceptance

Fig. 2

4
The fact in the automobile industry is that, “word of mouth”, which is a free form
of product promotion is a biggest medium which has always helped the
companies. According to a survey 22-30% of the sales are generated through
“word of mouth”.

For fulfilling the objectives of the project, it has gone through following
steps:
+ Doing an exhaustive questionnaire based survey on the targeted
consumer base.
+ Understanding the critical factors underlying in each segment.
+ Analyzing the consumer data to find out the influencing factors and how
they impact them using various techniques.

Emergence of satisfaction

Fig.3

5
1.2 Industry profile
Overview of auto segment

Fig. 4

The Indian automotive sector is one of the largest market segment in the world.
The Two-wheelers are the most prominent vehicle in the industry accounting for
more than 80 % of the Indian automobile market and passenger vehicles
accounting for 14% of the market share. It is due to growing middle class and
young population. The automobile industry accounts for almost 7.1% of the
country’s GDP. The industry is expanding with the growing interest of the rural
market in India. This comes as a further aid for the sector.
India is a highly populated country with cheap labour which makes it a suitable
place to manufacture vehicle for exporting purposes.

6
The automobile exports grew by almost 16% year on year in the fiscal year 17-
18. Indian government is trying hard to make India a global leader in the world
by 2020. They are launching several initiatives with the major automotive
players in the Indian markets.

Fig.5

Fig.6
7
Statistics related to Indian automobile industry
• In India almost “18 million two-wheelers” were sold in the year 2016
which made it the largest two-wheeler market in the world.
• The sector produced “25.3 million Automobiles in FY17”.
• Total production volume grew at a “CAGR of 4.43%” during “FY12-17”.
• Two and three-wheelers exports increased by “20.30 % and 37.02%”,
respectively.

Fig. 7

8
 Fig. 8

• In the fiscal year 17, Two-wheelers followed by the passenger vehicles

dominated Indian automobile market.
• The 2-wheelers sales are expected to grow by 8-10 %.
• The 2-wheelers and cars accounts for major part of total production by
volume, it is estimated to be 79% and 15% respectively.
• Small and mid-size cars are the most favoured cars in the domestic
passenger car market.
• According to the above data, “Over 67 % of export volumes comprised of
two-wheelers and followed by 22% for passenger cars”.

Latest trends

India is growing as one of the most favoured market for luxury cars as demand
is rising day by day. It sold around 40,000 luxury cars in India. This segment is
expected to grow at a CAGR of 25%.
India being the 12th largest population of HNI’s it still has huge room to expand.

9
Ease in finance option with the partnership of giants like BMW, Mercedes with
NBFC’s. The Indian government shifted their focus towards the electric cars
which are eco-friendly and in trends these days across world.

Growth drivers
• Substantial Rise in the income with a large young population.
• Ease of availability of credit and financing options.
• Growing demand due to growth in GDP.
• The vision of the Indian government to focus on this sector as it supports
in “Make in India” initiatives which aims to make India a manufacturing
hub.
• Improved road infrastructure with lots of upcoming expressway projects.
• Initiatives by Govt. of India like Make in India is also giving boost to
manufacture in India.
• The automobile sector in India accounts for 5% of the total FDI inflows in
the previous year.

Fig. 9

10
Market Size
The Indian automobile industry is expected to be USD $30 Billion market.
The auto industry is set to witness major changes as Government is planning to
implement all electric vehicle policy by 2026, BS-VI emission and safety norms.
Government is also planning to implement green number plates on electric cars
in India and benefitting the owners as toll will get waived off for the period of 3
years. India's electric vehicle (EV) sales increased to 25,000 units during FY
2016-17 and are expected to rise further on the back of cheaper energy storage
costs and the Government of India’s vision to see six million electric and hybrid
vehicles in India by 2020.

Prominent automobile companies in India

• Tata Motors is an Indian multinational companies and also a part of

prestigious Indian conglomerate TATA group.
• They are having their sales operations in over 175 countries across world.
• The company employs over 60,000 people in India and other locations.
• Tata Motors has sold over 9 million vehicles in its operational history.
• They are market leader in the commercial vehicle segment with a 42%
market share in the fiscal year 17 and also one of the key player in the
passenger market since its transformation in the strategies.
• The company has been at the forefront of technology and innovation
• They even launched the cheapest car in the world i.e Nano.
• They posted consolidated revenues of US$ 10.91 billion in Q2 FY18 and
38% year-on-year profits.

11
• Maruti Suzuki is a collaboration of Maruti Udyog limited and Suzuki
motors in which majority stake is of Japanese conglomerate Suzuki.
• The company headquartered at Manesar, Gurgaon,Haryana.
• Maruti suzuki is the market leader in the passenger vehicles segment
with a market share of 47 % as of 2017 and consolidated revenue of
US$ 10.30 billion in FY17.
• The company has made the most affordable cars for the Indian middle
class for more than three decades.
• New models are being launched each year to hold the position of the
leader in its home market and Swift being the most sold car after Maruti
800.
• The company posted total income of US$ 3.17 billion in Q1 2017-18 and
US$ 3.5 billion in Q2.
• The company sold 149,284 units in February 2018, an increase of nearly
15 per cent year-on-year increase in sales.

• It is a wholly owned subsidiary of the Hyundai Motor Company based out

at South Korea.

12
• They are second largest manufacturer after Maruti Suzuki with 17%
market share as of 2017.
• The turnover of the company is 5.5 billion USD in India.
• At the time of entry people were totally unware about the brand Hyundai.
• At the time of entry in 1996, there were only 5 major automobile
manufacturer in India i.e Maruti Suzuki, Tata motors, Mahindra’s,
Hindustan and premier.
• There are few companies who had entered less than a year back i.e
Ford, Opel and Honda.

• Mahindra and Mahindra Limited (M&M) is an Indian multinational car

manufacturing corporation having their headquarter at Mumbai,
Maharashtra, India.
• In India, It is also one of the largest vehicle manufacturers by production.
• It is also one of the largest manufacturer of tractors in the world and a
part of Mahindra Group.
• In fortune India 500 in 2011, It was ranked 21st on a list of top
companies in India.
• Its major competitors in the Indian passenger market includes Maruti
Suzuki, Tata Motors, Hyundai and in commercial vehicle Ashok Leyland,
Tata motors and others.
• Rupayan Pradhan is the new managing director (MD) of Mahindra and
Mahindra ltd.

13
1.3 Objectives of the study

The research objectives for this project can be defined as follows:

• Examining the consumer perception about the cars.
• Studying importance of various factors like brand, color, size, model etc.,
in consumer’s choice of car
• Finding out the factors motivating consumer to purchase a car
• To examine the impact of Car on societal status of consumers.

14
 Chapter-2

Literature review

15
2.1 Introduction
The car market started growing again after a period of slow growth which is
positive sign for the car market. On the basis of the encouraging growth
numbers, OEM’s are optimistic about the growth of this sector. They are also
expecting the sales to accelerate.

2.2 Purchase triggers

In the urban markets, a car is bought to satisfy an individual’s necessity
whereas in India, people like to buy their car for their family instead of
themselves. Contrary to the popular belief that the car buyer is driven by the
opportunity to create a statement of success, it is interesting that this is a very
rational and practical requirement.

Fig. 10

16
The Indian car shopper is reasonably rational while considering to buy a car. The
buyer’s stares for value and features. Some key concerns for the OEMs are -
• The young buyers usually spend less time. Hence it is important to provide
information only through those sources on which they trust and also consider in
their decision making process. The automobile manufacturer may also wanted
to direct their advertising resources aptly.
• It is also evident from the research that concludes the buying method of the
customer. The manufacturer might be interested in noting about how much time
is spend in decision making process. Moreover the possibility of final sale
• Emphasis on existing customer references. They can have the huge impact
on their friends, family, relatives to behave like a brand ambassador is of critical
importance.
• The continuous engagement is critical as the lost customers may also
recommend the brand which is profitable for the firm.
• Dealership influence the buying behavior of consumers in limited way.
Therefore we can think of implementing new processes.

According to a research by Nielsen India

A preview of car purchasing patterns in urban India

• 48% of consumers, explore the statistics/data online before visiting or

referring any off-line medium
• 87% of the consumers reconsider one purchase decision factor (brand,
model, fuel type, budget, colour etc.) at the time they buy
• Sales staff at showrooms can deeply influence (73%) last minute
fluctuations in decisions and monitor car buyers’ choosing behavior.

17
 Fig.11

In the digital era, Internet plays a key role in consumer’s information sources. A
large part of customer is online and they discuss and have conversations with
their closed ones.

18
 Chapter-3

Research Methodology

19
3.1 Research project steps

A research process consists of series of step which helps and monitor the project
throughout its steps from its planning till its final phases, analysis and findings.

Research studies involve the sequence of steps, where each step reply to some
specific question.

Steps of Research Project

Fig. 12

20
3.2 Research design
Research design is a conceptual design within which research is shown. A
research design is the overall strategy that we choose to integrate different
components of study in most appropriate way. It is a sequence of judgment
taken together which comprises of a plan to conduct the research. All the
sequence must be in line with the objectives of the research.

Fig. 13

Exploratory research

There are two types of data used in the exploratory research:

Primary Data
Secondary data

Primary data
The data which is primarily collected to resolve the market research problem.
As compare to the already available data i.e secondary data. There are two
types of primary data
• Quantitative data
• Qualitative data

21
It gathers the information directly collected from respondents using various
techniques like questionnaire, focus groups, interviews etc.

Primary data is basically collected with the help of one to one or other
modes of filling questionnaire by the respondents.

Secondary data
The data which is existing somewhere in the form of books, reports, files collected
for some other purposes.
Secondary source of data is usually gathered from books and websites

Descriptive research

Steps in the descriptive research:

Collection of data
It is done by filling of questionnaires. The information was collected by making
target population fill the questionnaires. It is collected by interacting with folks
near malls, shopping complexes, offices, markets etc.

22
The data was collected by networking with 59 respondents who filled the
questionnaires and gave me the essential necessary details. The data is
collected from housewives, working professionals, and students as well.

3.3 Determination of sample plan and sample size

Target Population
The target population includes working professionals, housewives, senior
citizens and students who either involve in the process of car buying or influence
it.
The sample is selected through Simple random Sampling.

Sample size
The sample size taken for this research project is 59 with age group above 20
years. The geographic demographics is taken as Delhi. The sample size taken
as the target population is unbiased. The people stood from diverse
professional backgrounds.

Sampling technique
In this simple random sample is used which is chosen from larger part of
population to represent it. Each is chosen randomly by chance and probability
of occurrence is same for each subject.

3.4 Errors in the study

Interviewer error
This type of error could arise due to bias behavior of the interviewer. Questions in
the questionnaire can also be impacted by this behavior. The attitude of the
interviewer may also hinder the level of interest and willingness of the respondent

Questionnaire error

23
The questionnaire should be deliberately designed so well that only requisite
data is revealed. The data in the questionnaire shouldn’t be redundant. It must
be crisp and clear which is easily understood by respondent.

Respondent error
The respondents may not be interested in providing the real response. They
also may not have the enough knowledge, opinions or ideas to respond as
desired in the survey.

Sampling error
We have engaged with 59 respondents and they can’t represent the buying
behavior of the total population. The sample has been drawn from only National
Capital Region.

3.5 Limitations of the study

• Each research project face certain unforeseeable circumstances and this
project also faced few challenges.
• The unwillingness of the car owners or other people to respond and take
part in the survey.
• The respondents felt boredom while answering the questions which
could have impacted the results.
• This research includes- sample size (59) customers which may not be
enough to decide the awareness of the brand by the consumers while
buying the cars. As they might not correctly represent the census of
population.
• DELHI was the only region which was considered in this study.

24
 Chapter-4

Findings, Analysis and

Recommendations

25
4.1 Analysis
Questionnaire Data

1. Which is the most preferred source of Information indicator while

purchasing cars

a. Friends & Colleagues

b. Car magazines
c. Dealers
d. Car shows
e. TV advertising
f. Billboards
g. Internet
h. Brochures

Fig. 14
Interpretation

Almost 44% of the respondents says, that their source of information for
buying car is Internet.

26
• Almost 26% of the respondents says, that Friends & Colleagues are
their primary source of information while purchasing.
• Almost 11% of the respondents says that their source of information is
Car dealers
• Tv advertisement and Car magazines lies in the range of 6-7 %.
• Car shows and Brochures account for less than 4%
• Billboards is the least source of information for buying car

2. Factors influencing your decision to Buy a car?

a. Financial schemes
b. Cash discount/ Offers
c. Upgraded technology
d. Upgrade status
e. Other (Please specify)

Fig. 15

27
 Interpretation

• According to the research, Respondents wants upgraded

technology as their first preference over other factors when it
comes to influencing their decision.
• Another important factors are Cash discount/Offers and financial
schemes which influence the car buying decision.
• Upgrade status is the least factor that influence car buying decision.

3. Frequency of the changing car( How frequent you change your car)
a. Not Owned yet
b. 1-3 yrs.
c. 4-8 yrs.
d. 8+ yrs.

Fig. 16

Interpretation
• More than 50% of the respondents own a car, among which almost 23%
of the respondents change their car in between 4-8 years of time.
• Almost 21% of the respondent prefer to change their car after 8+ years.
• 7% respondents prefer to change their car in between 1-3 years.

28
 4. Your major influencers while buying/wanted to buy a car?
a. Friends/family
b. Brand representative (celebrity)
c. Make my own choice
d. Seller
e. Advertisement

Fig. 17

Interpretation

• More than 52% of the respondents make their own choice when they
want to buy a car.
• Almost 40% respondents says their decision is affected by Friends or
Families.
• Impact of Seller is negligible. However Brand and advertisement affect
the decision upto some extent.

29
 5. What is your preference- brand new Car or second hand car?
a. Brand New car
b. Second hand car
c. Depends on choices and budget in-hand

Fig. 18

Interpretation

• More than 90% of the respondents prefer buying brand new car Over
second hand car.
• However less than 2% of the Respondents decision depends on choice
and budget.

30
 6. The extent to which consumers agree with the statement that, “The
car you drive reflects your societal status”
• Strongly agree
• Agree
• Neither agree nor disagree
• Disagree
• Strongly disagree

Fig. 19

Interpretation

• Almost 70% of the respondents agree that Car reflects their societal
status.
• Less than 6% respondents disagree to this.

31
 7. How much time is preferably taken from initial decision making to
buy a car till placing an order?

• Less than two weeks

• 2 weeks to 1 Month
• 1 month to 3 months
• 3 months to 6 months
• More than six months

Fig. 20

Interpretation

• Majority of the respondents says that they take 2 weeks to 1 month time
for their purchase cycle.
• Only 7% of the respondents says that they take in between 3 to 6 months.

32
 8. How much you preferably willing to spend while purchasing car for
your personal use? (Includes all other relevant fees, such as tax,
insurance, plate fee, etc.)

• Below 5 Lakhs
• Between 5-12 Lakhs
• 12-20 lakhs
• 20-35 lakhs
• above 35 lakhs

Fig. 21
Interpretation

As per the respondents, majority of them i.e almost 61% respondents like to
spend between 5-12 lakhs. Next major categories are below 5 lakhs and
between 12-20 Lakhs. In the Indian market majority of the Cars launched every
year lies in this price range only.

33
9. What are the factors you consider the most, If you are going to buy
a car for your personal use?
Among the following given factors, which influence you the most?
Very Not Very
Neutral Important
unimportant important Important

• Brand
• Price
• Safety
• Speed
• Performance
• Technology
• Color
• Size
• Equipment and Interior
• Exterior Design
• Interior Design
• Resale value

34
 Chart Title
Very Important Important Neutral Not important Very unimportant

Resale Value

Interior Design

Exterior Design

Equipment and Interior

Size

Color

Technology

Performance

Speed

Safety

Price

Brand

0 5 10 15 20 25 30 35

Fig. 22

35
Interpretation

• Brand: According to approximately 30% & 42% respondent’s rate brand

to be very important and important factor respectively while purchasing
their own personal car. Other 12 % are Neutral whereas Approx. 12%
consider brand as unimportant factor and 3% consider it to be very Un-
important criteria.
• Price: According to approximately 45% & 42% respondent’s rate price to
be very important and important factor respectively while purchasing
their own personal car. While other 3% are neutral about it. 5% consider
it Unimportant. 12% consider brand as very unimportant factor.
• Safety: According to 54% & 23% (Approx.) respondents consider Safety-
as Very important and important factor respectively while buying car for
private use. 5 % are Neutral whereas Approx. 13% consider brand as very
unimportant factor and 3% consider it to be Unimportant criteria
• Speed: According to approximately 18% & 42% respondents rate Speed
to be very important and important factor respectively while purchasing
their own personal car. While other 24% are Neutral whereas Approx.
6% consider brand as very unimportant factor and 8% consider it to be
Unimportant criteria.
• Performance: Approx. 54% and 25% of the respondents consider
Performance as the Very important and important factor respectively
while buying car for private use. 3 % are Neutral whereas Approx. 13%
consider brand as very unimportant factor and 3% consider it to be
Unimportant criteria
• Technology: Approx. 34% and 35% of the respondents consider
Technology as the Very important and important factor respectively while
buying car for private use. 10 % are Neutral whereas Approx. 12%
consider brand as very unimportant factor and 8% consider it to be
Unimportant criteria

36
• Colour: Approx. 15% and 46% of the respondents consider Colour as
the Very important and important factor respectively while buying car for
private use. 25 % are Neutral whereas Approx. 5% consider brand as
very unimportant factor and 8% consider it to be Unimportant criteria
• Size: According to approximately 18% & 45% respondents rate Size to
be very important and important factor respectively while purchasing
their own personal car. While other 25 % are Neutral whereas Approx.
6% consider brand as very unimportant factor and 3% consider it to be
Unimportant criteria.
• Equipment and interior: Approx. 24% and 45% of the respondents
consider Equipment and interior as the Very important and important
factor respectively while buying car for private use. 18 % are Neutral
whereas Approx. 8% consider brand as very unimportant factor and 3%
consider it to be Unimportant criteria.
• Exterior Design: Approx. 27% and 51% of the respondents consider
Exterior design as the Very important and important factor respectively
while buying car for private use. 15 % are Neutral whereas Approx. 3%
consider brand as very unimportant factor and 3% consider it to be
Unimportant criteria.
• Interior Design: Approx. 24% and 51% of the respondents consider
Interior design as the Very important and important factor respectively
while buying car for private use. 12 % are Neutral whereas Approx. 7%
consider brand as very unimportant factor and 5% consider it to be
Unimportant criteria
• Resale value: Approx. 22% and 35% of the respondents consider Resale
value as the Very important and important factor respectively while buying
car for private use. 27% are Neutral whereas Approx. 7% consider brand
as very unimportant factor and 8% consider it to be Unimportant criteria

37
4.2 Findings:

• Approximately 70% of the People agree with the statement that, the car
they drive reflects their societal status.

• Majority of the people prefer buying new car over the old ones

• Internet is the most popular source for getting information related to Car,
Friends and colleagues being the next best Source for car Information.
Billboards, Car shows and brochures are the least popular Sources for
car information.

• Majority of the people make their own decision or not get influenced by
anyone while buying car. Another important influencers are
friends/Colleagues in making a decision of buying new car.

• Majority of the people take 15-30 Days to make the purchase of car.

• Majority of the people are willing to spend 5-12 lacs for a car. Another big
category for car buyers are those who are willing to spend below 5 Lakhs.

• Upgraded technology is the most important factor that influence the

buyer’s desire to buy a car. Cash discounts/Offers and financial
Schemes are the other major factors that influence the buyer decision.

• Among the respondents More than 51% respondents own car and
among them majority of the people own car for a period of 4-8 years.

• Brand is one of the crucial factor that people consider while buying a car
for private use.

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 • Performance and safety are the two top-most factors which mostly
people consider “Very important” while buying car for private use.

4.2 Recommendations
Promotional activities
• Promotional activities must emphasize chiefly on safety and performance,
societal status and internal as well as external design. Using digital
marketing over other medias like TV, Newsaper etc based on
personalized experience would make the company profitable.
Focus area
• Car companies must focus on the cars ranging in between 5-12 lakhs.
This is the major customer segment. Majority of the customer prefer cars
in this range. In the recent times also we saw a huge demand in the SUV
launched in this segment.
• Car companies must also focus on the upgradation of technology as it is
the most preferred choice of the customer. Another important factor is
the offers, customer gets attracted when they get good offers.

Positioning
• Consumers are concerned about the societal status which is represented
by his or her car. The car companies must focus on positioning their car
as per the status of their targeted customer.

Online Marketing
• Car companies must focus on the digital marketing closely. Majority of
their customers search all the information on the internet. Hence it is the
best chance for them to generate the lead and convert it, even before
their visit.

Exchange offers

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Exchange offers must be targeted to the customers who already owing
vehicle for more than 4 years. This category is the majority who are
willing to change their car.

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Chapter-5

Conclusion

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Conclusion

To conclude, there seems to be change in the consumer personality with the

change in social characteristics. Sizeable population are more aligned towards
individualism. They want substantial amount of time for themselves. This
change in social dimension is showing the impacts on consume buying
behavior. They take decision on their own. Hence automobile companies must
adapt this change and need to modify their strategies.

This study indicates that the perception of the brand is the primary factor that
decides the consumer journey because it starts even before anyone purchases
a car or going to use it. This is even reflected in the recommendations made by
customers. In country like India it is common to see that important purchase
decisions like car is highly influenced by the recommendations from the
friends/acquaintances. Hence customer perception become more important
here. The sellers enforces the brand personality of a car in the mindsets of the
potential customers. As a result, Consumers carry a pre conceived notion about
the brand and this can be seen in the overall brand image of the car in
customer mindset.

Automobile companies need to adapt the changing behavior of the customer.

They must focus on key features like safety and performance which are critical
for customers. Online marketing being the best tool to influence consumer.
Inbound marketing is best over the outbound one.

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 Chapter-6

Bibliography/References

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Bibliography
1. Philip Kotler(2016), Marketing Management: A South Asian Perspective
2. Seth, J. N. & Mittal, B. (2nd ed., 2003). Customer Behaviour-A
Managerial Perspective. Thomson South-Western.
3. [Link]
[Link]
4. Vikram Shende, Analysis of Research in Consumer Behavior of
Automobile Passenger Car Customer, International Journal of Scientific
and Research Publications, Volume 4, Issue 2, February 2014
5. [Link]

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