Chapter 2

RESEARCH METHODOLOGY

2.1 Overview of Research Methodology

2.2 Research Objectives

2.2.1 Research Objective 1 : Most Influence factors to buy two wheeler

2.2.2 Research Objective 2: To analyse consumer buying behaviour with

respect to demographic factors in consideration

2.2.3 Research Objective 2: Compare the level of consumer satisfaction

regarding two wheeler product

2.3 Research Design

2.3.1 Research Hypothesis

[Link] Research Hypothesis 1: To identify most reasonable factor

influencing consumer buying decision

[Link] Research Hypothesis 2: Descriptive Analysis of Consumer

Behaviour

[Link] Research Hypothesis 2: Compare the Consumer Satisfaction

2.3.2 Sample Design

[Link] Sampling Technique: Stratified Probabilistic Sampling

[Link] Sample Size

2.3.3 Statistical Methods

2.4 Review of Literature

2.5 Research Gap

2.6 Scope of Study

 Chapter 2: Research Methodology

2.1 Overview of Research Methodology

Research methodology refers to scientific and systematic ways of conducting the

research. This encompassed the full procedure of conducting the research. The
research is considered to be reliable and authentic, when it is been done, considering
all moral standards of conducting research and imbibes suitable methods for each and
every steps of conducting the study.

The present study titled “A STUDY OF CONSUMER BEHAVIOUR IN TWO

WHEELER INDUSTRY: A COMPARATIVE STUDY OF HERO MOTOCORP &
TVS MOTORCYCLE” has been conducted with an aim to get insight of consumer
behaviour adopted by selected companies and compare them on selected P’s of
marketing. Progressively study also endeavor to analyze the extent by which these
strategies are associated with consumer behaviour. Marketing strategies are known for
the innovation, dynamism and impact they create in market. In recent time few are
being evolved and become interactive. They open a window for consumer to be in
dialogue directly with marketers and prevent effect of all external variables on
consumer responses. An authentic, reliable, one to one and immediate response of
consumer brings huge value to marketer and helps them to generate impact and
effectiveness in all concept and process of marketing.

The study is being conducted with special reference to Hero MotoCorp and TVS
Motorcycles as both are growing organizations and have a healthy and innovative mix
of various marketing strategies to influence consumer behaviour.

The growing companies have good marketing funds and they are assumed to be more
active on analyzing consumer behaviour to gain more consumer insight. The new
organizations are also more experimental, which brings newness in study and give
better insights.

The study is made more comparative to explore more on every marketing approach
adopted by both companies and to know as what bring better result. The
implementation of strategies is the sum of planning and execution in target market,
even the same strategy can be implemented in various ways and can breed different

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result. A comparative analysis cover a big arena and help researcher to get more data,
which can later sorted and analyzed to transform into valuable information.

Considering the nature of study, flexible research design is adopted. As the efforts are
made to compare two organization on effectiveness of adopted interactive marketing
strategies to influence consumer behaviour, analytical framework is used, which make
this an analytic research work. The other objective which aimed to know the association
of interactive marketing strategies and consumer satisfaction, the research design is
more diverted towards exploration of various facets of consumer behaviour and
response. The research is designed to be an exploratory in this part.

As an analytical analysis, firstly the suitable parameter of consumer behaviour is

defined, which is followed by collection of data on each parameter. The collection is
being done by review of available literature, which majorly compromises on online
publication, articles and blogs and research reports. To have a conceptual
understanding books published on consumer behaviour are referred. This created a
basic infrastructure and roadmap of study and helped to know as what data need to be
collected and from whom. As the study is based on consumer behaviour, the
associated P’s are given weightage and associated marketing strategies are being
identified and categorized accordingly. This helped in identification of variable
required to collect data. After identification of data required proving research objective,
efforts are made to frame the questionnaire. Various books are referred to know more on
type of questions to be included in questionnaire to collected data in better manner and
make this more convenient for respondent to respond as well. To have a better analysis
various demographic are included in study, so that the data can be analyzed with
maximum possible combination and permutation because demographic factor are always
found to have a significant impact on consumer behaviour studies.

Young age respondent are more inclined towards technology, fashion and style, their
choice and preference are different from other segment of age group. Geographic
location, income level, profession, education qualification are other aspect which
influence how consumer behaves in different situation. The age, gender and
profession are assumed to be influencing in this study while assessing consumer

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behaviour and hence the data on both the parameter is recorded with close ended
questions at starting of questionnaire.

The initial part of questionnaire compromised of question of suitable demographic

variable, which is followed by multiple choice question based on product marketing
strategies. A 10 point raking scale is constructed to record the level of satisfaction of
consumer and a 5 point likert scale is constructed to analyze the impact of product
marketing stages adopted by the both companies.

The questionnaire is digitalized which help of Google forms to make it feasible to

share electronically. Website survey is used to collect responses from respondent and
data is collected in Microsoft office Excel. For a statistical analysis IBM SPSS
version 22.0 is used and table and graph generated are edited and presented as per
APA standard for writing thesis.

2.2 Research Objectives

The study presented aims to analyze and understand various aspects of consumer
behaviour adopted in two wheeler industries in India. As information technology
become backbone for almost all industries, it has benefited and supported automotive
industry in so many ways. In turn automotive industry also leveraged the information
technology starting from core activities of business transaction to activities like
advertising, sales and marketing. Current significant transformation in smart
telephony and data services in India has evolved many business operation of
organization and marketing strategies are one of them. The communication with the
consumer becomes easy, one to one and almost immediate. This transformation is
being leveraged by automobile companies also to make their strategies more effective
and better with the help of technology. Companies have adopted few practices,
wherein they give consumer a window and platform to communicate easily and
frequently. Those communications are tactics transformed into interactive marketing
strategies. The present study titled “A STUDY OF CONSUMER BEHAVIOUR IN
TWO WHEELER INDUSTRY: A COMPARATIVE STUDY OF HERO
MOTOCORP & TVS MOTORCYCLE” is conducted to explore and analysis various
aspect of interactive consumer behaviour adopted by automobile companies.

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The major stakeholder included in the study are two wheeler buyers, who are being
acted on and using various strategically application offered, companies who acted as
marketer, employees of the companies which are facilitator and promoters of the
strategies. A Research study is not feasible to conduct without clear objective to
complete, which most of the time, associated solution of some problem or analysis
impact and effectiveness of any concept. A clear objective help researcher to have a
clear understanding about variable, which need to be analyzed. Relevant and adequate
data is collected which make study more effective and feasible to conduct.
Considering the basics, the study first aim to understand various consumer behaviour
models adopted by companies. As strategies are associated with major concept of
consumer behaviour, the study consider various P’s of product marketing as a base
and associated strategies adopted on selected P’s are identified for further analysis.

The first objective of the study is to analyze and identify the most important factors
affecting consumer buying decision in Hero MotoCorp and TVS motorcycle, the
research objective is stated as follows:

2.2.1 Research Objective 1: Most Influencing factors to buy two wheeler

“Identify and analyze the most important factors affecting consumer buying
decision in Hero MotoCorp and TVS motorcycle”.

The factors assumed to be responsible for including consumer buying decision are
identified with the help of review of literature, current market analysis, discussion and
brain storming session. As the number of strategies and features adopted by
companies are changing, selective strategies are chosen for the analytical part. The
demographic factors which deemed to be important and have an influence on products
purchase are considered in the study and taken into consideration. A descriptive
analysis keeping demographic factors in consideration is also done.

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2.2.2 Research Objective 2: To analyze consumer buying behaviour with respect

to demographic factors in consideration

“To analyze consumer buying behaviour with respect to demographic factors in

consideration”

Along with finding out the most influencing factor for consumer buying decision,
study endeavor to understand the buying behaviour of consumer in light of various
demographic factors like age, gender and occupation of the buyers. As buyers are
heterogeneous in nature and have different type of choice and preference, an in-depth
analysis as per demography is assumed to understand choice and preference of the
buyer in a better way.

2.2.3 Research Objective 3: Compare the level of consumer satisfaction

regarding two wheeler products

To compare the level of consumer satisfaction, the viewpoints of the existing

consumer are recorded to know more on the products of company and reviews of
consumer. The aim of the exercise is to know the level of consumer satisfaction of
consumer. The research objective for the same is framed as

“To find out and compare the level of consumer satisfaction regarding two wheeler
products in Hero MotoCorp and TVS motorcycles”.

Consumer satisfaction is always been a key to success for any company. The most
influencing factor in purchase of durable product is existing consumer who is already
using the product. Consumer is very smart now a day. Introduction of consumer
satisfaction has proved to be a milestone and have reformed many day to day
activities and ways of doing things. Now they are very much connected with so many
platforms like social media, chat application, smart phone, forum, blogs and other.
Getting reliable and genuine information is much easier now. Any existing consumer
can be contacted with the help of all these technological innovations and consumer
can get to know about the exact feature of the product. If the product is good as
promised, this will fetch positive marketing and word of mouth publicity and vice
versa.

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Reference groups are very important and reliable source for information; they can tell
the exact pros and cons of the product and are best person to get reviewed from. The
same happens and when review ended on a positive note, this convert into sales.

With introduction of smart telephone, trends of mobile application, online shopping

and digital payments the dynamics of the market have totally changed. The
revolutionary concept is gaining trust of the consumer and digital payments are at a
big revolutionary stage in India.

To understand various aspects of consumer satisfaction third objective is framed in

the study, where in efforts are made to understand the opinion of the consumer
towards product of Hero MotoCorp and TVS Motorcycles. To analyze the consumer
opinion, various variable regarding benefit and features of two wheeler are explored
and identified with the help of various sources. To know the views of consumer on
collected parameter, questions are framed keeping selected variable as latent variables.

The responses are recorded and with the help of suitable statistical test, the opinion of
consumer are analyzed and represented.

2.3 Research Design

The research study is always been conducted considering authentic and reliable
methods. Research design is sum total of statistical tools and techniques along with
the framework which is being used to consult the study. The first important aspect of
research design is sample design. This included a clear vision on population of study,
sample methods, which include rules and condition that qualifies any member to
become a sample sampling method, which is basically the way sample is selected
from qualified probable samples. Sample size is another aspect of sample design,
which is number of samples, assumed to be enough to represent the population.

The sample design is always framed with respect to demographic factors in to

consideration. When the study has clear objectives of analysis as per demographic
variable, the importance of these variable increases more. Any variable which is
assumed to have an association shall be considered while deciding sample design.

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Once the sample design is framed, the variable on which the data is required, to test
the hypothesis are identified. Depending on type of data, which may be primary or
secondary the method of collection or source is analyzed. The secondary data can be
collected from exiting literature available and a questionnaire is framed to collect the
primary data. Variables on data is required to test hypothesis and identified and
questions are framed to be included in questionnaire. Collection of data if followed by
application of suitable methods to test the hypothesis, that is followed by acceptance
and rejection of hypothesis and drawing conclusion for the study. The decisions on all
steps are taken before condition of study to make a proper research design.

2.3.1 Research Hypotheses

The research is conducted with certain objective in mind. In situation when research is
assumed to get specific result and on contrary research does not have any idea about
outcome. There are always two aspect of proving or analyzing any statement. In a
research proposal after formation of objective, extensive review of literature is done
about the topic. After review of literature, researches have “a point of view” or
“probable result” in mind. This point of view of researcher can be known as
hypothesis. Research hypothesis is a statement which researcher wants to prove by
conducting suitable and systematic research.

After formation of research objective about study, research hypothesis can be formed
for each objective to consider to be proved. Every objective can have two hypothesis,
called as null hypothesis and alternate hypothesis.

When a researcher is inclined towards proving a statement, that statement should be

framed as alternate hypothesis statement and the null hypothesis can be framed
opposite to the same. As per research code a research only has to check whether one
can accept the null hypothesis or not. All tests are made to check if the null hypothesis
is accepted. The result can be drawn from this statement only. When the null
hypothesis is accepted, it automatically rejects the alternate hypothesis formed. On
contrary when the null hypothesis is rejected, it itself proves the alternate hypothesis.

In present study titled “A STUDY OF CONSUMER BEHAVIOUR IN TWO

WHEELER INDUSTRY: A COMPARATIVE STUDY OF HERO MOTOCORP &

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 Chapter 2: Research Methodology

TVS MOTORCYCLE”, three major objective are formed. This makes research to
frame respective hypothesis for each of the objective to take the research further.

[Link] Research Hypothesis 1: To identify most reasonable factor influencing

consumer buying decision

Towards fulfillment of first research objective, “To identify most reasonable factor
influencing consumer buying decision, while buying two wheeler with special
reference to Hero MotoCorp. & TVS Motorcycle ” two hypothesis are formed. The
first hypothesis advocates that the factors which influence the consumer to select the
two wheeler are not specific and random. On the contrary side the alternate hypothesis
advocates that the decision of consumer, is influence by some specific factors which
provoke or influence him to buy any specific product. Both the hypothesis are framed
as proper sentences as mentioned.

Null Hypothesis 1: The factors influencing buying decision for purchasing two
wheeler are random and not specific.

Alternate Hypothesis 1: The factors influencing buying decision for purchasing two
wheeler are not random and specific.

[Link] Research Hypothesis 2: Descriptive Analysis of Consumer buying

Behaviour

Towards fulfillment of second research objective which is descriptive analysis of

consumer buying behaviour with respect to various demographic factors in
consideration. Two hypothesis is formed.

Null Hypothesis 2: Consumer behaviour for Hero MotoCorp and TVS motors across
all categories of demographic variable are same and indifferent.

Alternate Hypothesis 2: Consumer behaviour for Hero MotoCorp and TVS

motorcycle across all categories of demographic variable are not same and different.

[Link] Research Hypothesis 3: Compare the Customer Satisfaction

Towards fulfillment of third research objective to find out and compare the consumer
satisfaction regarding two wheeler product, two respective hypothesis are formed

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Null Hypothesis 3: The level of customer satisfaction in Hero MotoCorp and TVS
motors is indifferent and same.

Alternate Hypothesis 3: The level of customer satisfaction in Hero MotoCorp and

TVS motors is different and not same.

To prove the above mentioned hypothesis various consumer behaviour strategies are
being selected. The effectiveness of the same is measured by asking various types of
questions from consumer, which can lead to know if the strategy draws an impact on
consumer or not. The data is recorded, tabulated and tested with the help of suitable
analytical tools to test the hypothesis.

2.3.2 Sample Design

[Link] Sampling Technique: Stratified Probabilistic Sampling

Sample design defines the rules based in which, the samples is selected form
population. In this study a Probabilistic Sampling Technique is used. These
methods ensure that each member is a potential target buyer and has a probability to
be selected as a sample. As study requires choosing samples for two companies, the
potential probabilistic sampling used a complex random sampling design named
stratified sampling, where-in the population is divided in to sub-population called as
strata, which are individually more homogeneous than the total population. Two strata
are created, one for each company and overall 500 respondents were selected from
Hero MotoCorp and TVS motorcycles.

[Link] Sample Size

Size of the sample is a very important consideration. A large number of sample

always ensure better results. Simultaneously there are constrains when total number of
population is unknown or very large to cover. There are ways to ensure an appropriate
sample size. The first one is confidence interval. This is a margin up to which study
accept the level of error. The second factor in consideration is confidence level, which
is level of confidence of research to be true, within confidence interval and third part
is standard deviation, which represent the expected level of variance in response
received from the respondent. The present study is conducted at a confidence interval
of +/- 5%. The level of confidence in study is 95% and value of α.05%. Which make

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Z 1.96, which is standard table value at 95% confidence interval and a standard
deviation of 0.5%.

Necessary Sample Size = (Z-score)2 * StdDev*(1-StdDev) / (margin of error)2

= ((1.96)2 x.5(.5)) / (.05)2
= (3.8416 x.25) /.0025
= 0.9604 /.0025
= 384.16
= 385 respondents are needed

At the beginning of research, a pilot study was conducted over 50 respondents whose
encouraging results helped me to continue my research therefore to make the study
more reliable, a total sample size of 500 samples is considered to be appropriate to
conduct the study, which is more than the required sample size. The data is collected
from walk-in consumer in various leading dealers and company owned showrooms of
Hero MotoCorp and TVS motorcycles.

2.3.3 Statistical Methods

To achieve the first objective of to find out most influencing factor in consumer
buying decision, Exploratory Factor Analysis is used. The test is good fit when we try
to measure things, which can be measured directly, which is called latent variable.
Keeping services offered by automobile companies which fall under selecting
interactive marketing strategies, as latent variable, questions are framed with the help
of five point likert scale. Five point are stated as highly agree, agree, neither agree nor
disagree, disagree and strongly disagree are placed as an option to choose on a likert
scale question.

As the variable in consideration is qualitative and in form of factors, that are recorded
on psychological scales, the investigation is done using factor analysis. Analysis is a
very helpful statistical tool when we have to analyze the relation between variable for
complex concepts.

Factor analysis operates on the notion that measurable and observable variables can be
reduced to fewer latent variables that share a common variance and are unobservable,
which is known as reducing dimensionality (Bartholomew, Knott, & Moustache, 2011).

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The questionnaire was designed to predict how satisfied a given individual would be
from specific marketing factor and which factors brings highest satisfaction.

Kaiser–Meyer–Olkin measure of sampling adequacy (KMO) (Kaiser, 1970) is used

to determine the adequacy of sample size. The value for KMO is calculated for all
variables. As a standard terms the KMO valued more than 0.5 represent a compact
patterns of correlation between variable and factor analysis is appropriate, values
between 0.5 and 0.7 are mediocre, values between 0.7 and 0.8 are good, values
between 0.8 and 0.9 are great and values above 0.9 are superb (Hutcheson &
Sofroniou, 1999).

In next step the correlation matrix will be used to identify the correlation between
variable, in the correlation matrix if the value is less than 0.2 then it will be excluded
from the study because such a lower value shows less correlation with each other.
Inter correlation between the variable provides an idea of relationship between the
observed variable, which is followed by extraction of factors. Every considered
factor in the study is responsible for some variance and rotation. Extraction of factors
is used for linear combination of observed variable, which were uncorrelated. The
first component has maximum variance. As we move on further successive
components explain that there is less portions of the variance and are less correlated
with each other. By default SPSS uses the Kaiser’s criterion of retaining factors with
Eigenvalue greater than 1 and same as a standard practice, is adopted here in the
analysis. With the help of principal component analysis, the identification of variables
accountable for maximum variation can be selected. From Nth element onwards,
when the Eigenvalue was less than 0.7 and the variance was very less. Based on the
same, appropriate number of latent variables was extracted for further studies.

Clubbing the factors with same underlying dimensions shall be done based on
principal component matrix. The principal component matrix showed the factor which
has a co-relation with each other. The total variance is divided into main components.
The variance accounting is calculated and tabulated in the form of principal
component matrix, where all the values of observed variable is showed. With the help
of same, each component is clubbed to form a group, which is subsequently named on
the basis of latent variable associated. The variance caused by selected categories can

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be calculated to know the level of influence caused and hypothesis can be accepted
and rejected accordingly.

The consumer behaviour towards the two major brands is studied with the help
of descriptive analysis of data, which is second objective of the research. Various
demographic factors which are selected for the study are divided into major suitable
categories. The behaviour of the consumer and opinion is recorded and the same is
analyzed with cross tabulation of demographic variable categories.

To achieve our third objective of comparing level of consumer satisfaction of Hero

MotoCorp and TVS motorcycles, inference can be drawn from the data collected and
result achieved for first research objective. The respective weighted means of the
variable in considered for comparison and is analyzed and conclusion can be drawn
for acceptance and rejection of hypothesis.

This objective of comparing effectiveness for consumer satisfaction level for Hero
MotoCorp and TVS motorcycles, Independent sample t-test is used which is a good
fit to test difference in mean of two dependent samples. This test allow us to test
whether a correlation coefficient is different from 0; it can also be used to test whether
a regression coefficient, b, is different from 0. However, it can also be used to test
whether two group means are different.

Major consumer services variable are named and selected for both the companies and
are compared on the basis of consumer opinion towards them. Major features of each
of the variables are being identified and use as a latent variable to frame question on.
The mean of response from consumer is recorded for each strategy and same is
compared using independent sample t-test.

Equation will compare the mean difference between our samples (D− ) to the
difference that we would expect to find between population means (µD), and then
takes into account the standard error of the differences (sD/√N). If the null hypothesis is
true, then we expect there would be no difference between the population means
(hence µ D = 0).

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2.4 Review of Literature

Before attempting any study on consumer behaviour it is essential to review the

available literature data and facts to intensify knowledge and update background
material, present scenario and future outlook. A few such literatures reviewed include
the following:

The researcher had come across a number of articles, reports, studies, journal and
books on consumer behaviour and consumer related topics. A brief review of which
are given below. The purchase decision taken by the consumer is purely
psychological; owing to this feature it is very difficult to predict the behavior of
consumer. It is very vital for the marketers to know what is flickering in the "Black
Box", since a long period, research studies have been conducted to find out what is
happening in the mind of the consumers through forming logics for the behaviour he
is exhibiting at various points.

George Sunila (2008) performed a study on “The Evolution and Structure of the
Two-wheeler Industry in India”. The competitive strength of the industry was traced
using Kendall’s Index of Rank Concordance and the Evans- Karras test of convergence.
The business is by all accounts described by oligopoly with the onset of financial
changes not having much effect to modern structure. The estimations of the Kendall’s
Index likewise demonstrated that the three portions of the business have reacted in
various approaches to changes in the strengths of rivalry. This was a result of
liberalization which prompted an unequal number of participants in every fragment. It
was found that the bike portion had a more prominent number of sections than did the
bike or moped fragments. From the after effects of the Evans and Karras union test it
can be deduced that in the bike and bike sections interbrand transmission of data
through advancement, item improvement, valuing and so on is liable to be viable in
affecting the development rates of different firms in these portions.

The geared scooters segment has almost disappeared and has been replaced by
gearless scooters. In motorcycles also the technology had shifted from two strokes to
four strokes. Electric scooters have entered the market. The year 2006-07 saw
production of 8.44 million two wheelers and production grew by 10.98%. [Link]
Rajan (2012) composed an article on the changing forms of the bike business in

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India. The creator talked about different Government strategy changes influencing the
vehicles segment and the effect of generation of bikes in India. He likewise talked
about the patterns inside the bike portion and the development of bike section. He
expressed that the properties of bike imperative to clients are looks, force, mileage
and solace. Other critical changes in the business sector incorporate recognizing client
needs, item separation and item situating. The concentrate likewise contended that
individuals in the age gathering of 18 to 20 were influenced by looks and power in a
bike.

Indian bike industry is developing each year because of insufficient open transport,
better financing, accessibility of models, expanding urbanization and expansion in
youth populace and per capita pay. The makers are putting forth more models as the
business sector is turning out to be more aggressive and the life cycle of the items
shorter. The expense of the vehicle is likely of expansion because of emanation
standards made more stringent. The two wheeler makers have likewise expanded their
attention on innovative work and there have to develop new models with better
advancements.

According to T P Rajmanohar (2010) the Indian two wheeler industry underwent a

major change after the reform process of 1991. This led to motorcycles dominating
the two wheeler market capturing more than 80% of the market. In terms of
segmentation there are three segments viz. economy, executive and premium. In terms
of individual companies Hero MotoCorp dominates the market followed by Bajaj
Auto and TVS motors. Honda motors and scooters and TVS motors are now
capitalizing on increasing the market share.

Tekchandani Viraj (2009) wrote an article on auto two-wheelers in which he stated

that the Indian two-wheeler market constitute 20% of the global market and is
increasing by around 20% every year. In the bike segment, Bajaj Auto has been
making progress while TVS bikes had made strides. Hero Honda, through its across
the board merchant system and fuel effective models, keeps on residual appealingly
ready to procure prizes of the development in industry. In future, rivalry is liable to be
from organizations like HMSI, LML, Suzuki and Kinetic.

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An article on “issues and future of the two wheeler industry,” by Krishnan Santanan
R (2012) looks into various issues faced by the two wheeler industry. Regarding
rivalry, the industry is liable to face rivalry from utilized autos and electronic autos.
Different issues are the declining edges because of expanded expense of materials and
movement in clients' interest to electric vehicles to save money on petrol. As far as
development, there are desires that the business is prone to develop by 15%. The
majority of the development is liable to originate from bikes. A portion of the Indian
bikes organizations are likewise liable to set up plants in remote nations to address
send out issues.

According to Salwan Prashant, the Indo-Japanese joint ventures – Hero Honda, TVS
Suzuki, Bajaj Kawasaki-adopted different strategies to become competitive. TVS
engines utilize the cost lessening (esteem building, worldwide sourcing, incline
fabricating, waste end and ceaseless decrease in expense) and securing item
administration (great brands, inventive bundles, data innovations, creating vitality
effective advances and market/item extension) to end up focused. Bajaj Auto's
technique was to redo its items according to market needs. Saint Honda's arrangement
for the residential business sector was to make fuel productive vehicles. Its worldwide
arrangement was to give the best items to clients by updating advances and to see the
world as one business sector.

According to Balaji V. (2002) the Government focus on the agriculture sector is likely
to help boost sales of two-wheelers, especially motorcycles in the rural areas. The
augmentation of concession for weightage reasoning of 150% for use identifying with
in-house R and D will urge organizations to put resources into meeting new security
and discharge guidelines. The Government's strategy on strict outflow is liable to make
Indian bikes world class. In future, Indian organizations additionally need to fight with
imports and Chinese vehicles may enter into Indian market by 2007.

Gupta Surjeet Das (2009) talks about the perspectives of Rajiv Bajaj for eventual
fate of Bajaj Auto. Rajiv Bajaj needs to change Bajaj Auto into a worldwide two
wheeler segment. The organization has 22% of the Indian motorcycle business sector
and he needs a coordinating piece of the pie in the worldwide bike market.

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 Chapter 2: Research Methodology

At present, Bajaj Auto trades just 12% of its creation and it needs to expand this to
20%. In nations like Mexico and Indonesia, Rajiv Bajaj needs to setup gathering
plants as opposed to assembling plants. In the Indian business sector, Bajaj Auto has
caught a noteworthy offer of the premium-end bike market.

Kalyana Ramnathan S (2007) is of the perspective that Honda is fixing its grasp
over India by making a special holding organization for India-Honda Motors India –
with Masahiro Takedagawa. Takedagawa was of the assessment that bike industry can
be partitioned into sub sections which don't inexorably comply with motor uprooting
alone and saw nothing incorrectly in both Honda bikes operations having comparable
item portfolios focused at various consumers. It is normal that HMSI will spend about
Rs. 200 crores by 2010 to expand yield to an ideal limit of 1.2 million units.

Rajmanohar T. P. (2002) in his article on Hero MotoCorp has expressed that Hero
MotoCorp is number one producer of bikes on the planet. Its fundamental item has
been bikes, yet as of late it entered the bike market. Hero MotoCorp has relied on
upon achieve, examination and unwavering quality to develop its matchless quality in
the business sector. Notwithstanding, its net revenues have gone under weight. The
organization was updating its innovation and was the primary Indian organization to
present fuel infusion innovation for bikes in its main item.

Balaji V. (2011) in his article on TVS Motors expressed that the TVS Motor
Company is the third biggest bike producer in India and one among the main ten on
the planet, with a yearly turnover of over $650 million. It is only company to be
honored the world's most prestigious Deming grant in all out quality administration.
Regarding labor, the innovative work group has a solid pool of specialized ability
worn by state-of the-workmanship framework fit for growing new and inventive
outlines. Other than bikes it is a main player in the mopeds market too.

Manoj Kumar and Sweta Pathak (2012) expressed that in the course of recent years,
the bike market has seen a noteworthy movement from bike to motorbikes. It has
constrained the bike creators like Bajaj Autos and LML to move bike fabricating, and to
chop down bike generation. Be that as it may, in the meantime, another business sector
for high power motorcycle has additionally risen in most recent couple of years.
Specialists of the subject are of the view that it makes a huge impact on young girls when

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you own a bike. With motorcycle individuals feel more self-assured and youthful in
contrast with a bike rider. In spite of the value differentials amongst bikes and bikes not
being too high, having a bike gives one the sentiment up gradation". It was additionally
ascribed that the development of this fragment is because of the activities being taken by
the companies incorporating more presentations in the economy class motorcycles and
simple financing offices. Electrically worked vehicles (Mostly e-Bikes) are one of the
creative developments in the bike business.

Modak Shrikant (2006) composed an article about Electrotherm India, a pioneer

organization producing electric motorcycle. These motorcycles are fueled by
batteries. Item is named as yo-bikes and its battery can be charged like a portable
battery. The organization likewise wants to dispatch a quicker form with most
extreme pace of 45km/hr.

As per a study led by worldwide counseling firm, Frost and Sullivan, the bike
business will be the quickest developing business of the Indian vehicle industry. The
study said that of all individual transportation vehicles, the bike portion will develop
the speediest. The business has seen the passage of countless organizations and new
advances, which have fundamentally modified the business sector elements. The
expanded number of business sector members in the traveler auto fragment has
offered ascends to abundance limits and driving value rivalry. The review said for
truck makers the movement toward multi-pivot vehicles is a positive pattern, as these
offer preferred working financial aspects over the single-hub and their higher cost
implies higher incomes for producers.

According to the report of the Freedonia Group, on World bike conjecture for 2011
and 2016, interest for bikes worldwide will rise 5.4 percent yearly to 55.7 million
units in 2011; Interest for all classifications of bikes was required to stay solid, in
spite of the foreseen lull in key markets. China, the biggest bikes business sector and
maker in unit terms, is quickly transitioning far from bikes toward autos, and in the
process flooding the world business sector with bike trades. Interestingly, rising fuel
costs and expanding confinements on auto use were favoring bikes in created markets.
The business sector for extensive and costly high removal bikes will stay solid
through 2011, however concerns with respect to request have risen because of the

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maturing of the client base and rising production costs, particularly in the US and
Western Europe. According to the report, two separate bikes markets exist. The first is
focused in the industrialized Trade (i.e., the US, Japan and Western Europe), where
bikes are seen as delight vehicles by consumer who as of now have one or more bikes.
These bikes on bigger business sector in unit terms is found in the rising economies of
the Asia/Pacific, Latin America and Africa/Mideast locales, where bikes are seen as
essential family and work vehicles. These vehicles are less expensive, fuel efficient
and attractive. Along these lines, significant players are focusing on this mass
business sector.

Crisil Research (2009) in its yearly audit 2009 distinguished that interest for bikes
has reached its highest point and is hence anticipated that business would develop at 6
to 7 percent from 2008-09 to 2012-12. Country business sector would keep on fueling
bike deals; however urban business sector would confine bike growth to lower single
digit in long run. Interest for gearless bikes to witness solid development of 9-11
percent from 2008-09 to 2012-12. Be that as it may, bike business to stay at levels in
2008-09 and 2009-10 because of proceeding with troublesome fund conditions. While
monetary execution patterns were relied upon to exceptionally crosswise over players
in 2008-09, lower information expenses would empower players to keep up edges in
2009-10. Purchasing conduct in the bike business has been radically changed since a
decade ago. Understanding behaviour conduct in the present situation is critical as it is
no more a basic errand. Buyer is thought to be the king of the business sector. He is the
value producer and not value taker. In the most recent two decades, noteworthy changes
have occurred similarly as the bike business is concerned. Prior, there used to be a
couple of bike makers who held an imposing business model. Notwithstanding, this
circumstance has changed with the section of different contenders, particularly after
liberalization and globalization. The remote cooperation saw generation going up
hugely—because of the accessibility of numerous option decisions, buyer inclinations
and requirements changed. All of a sudden, the purchaser came into core interest.

A paper by Shekhar V. Intellectual made an endeavor to know the adjustments in the

bike markets and purchasing thought processes of bike buyers. With the assistance of
data that was given by the supervisors of various promoting offices, a meeting
calendar was readied. It was regulated on 100 haphazardly chosen buyers.

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The study uncovered that consumer inclination towards possession design and the
wellsprings of data they used to settle on the buy choice were vital assessment
criteria. The study will assist bike makers while taking consideration of noteworthy
components while planning another item and additionally advancing it. It can be
induced from the study that the modern technique and mileage were vital criteria for a
shopper during the time spent on a buy choice. Individuals by and large saw a major
contrast in the costs, mileage and resale cost amongst different models accessible in
the business sector. In spite of the fact that, individuals have not considered the
security component to be that vital, they found that all shows are pretty much similar.
The criteria that at last assumed a critical part in the buy choice were: mileage, cost,
required support, quick documentation, after sales services and other benefits offered
by the company..

Santosh Kumari, D. Raghunatha Reddy and M.L. Kameshwari (2005)

concentrated on buyer purchasing behaviour in bike industry with unique reference to
Hero MotoCorp in the city of Hyderabad. The study uncovered that the primary
influencer in buy choice of bike was himself. The outcome of data favored by the
respondents for purchasing a bike was friends and family members. It was found that
90% of the respondents were fulfilled by the execution, support and after service gave
by the dealers. It was additionally found that 92.25% of the respondents could review
the promotions of bike they had seen as of late on TV or read in the daily paper or
magazines. From this it was demonstrated that the promoting effort was powerful and
filled its need. The most favored bike by larger part of the respondents was Hero
MotoCorp Splendor because of its image picture.

Metric Consultancy (2015) has been a pioneer in exploration on bikes in India. In

2001, Metric Consultancy did a broad overview of issues confronted by owners of
new bikes in light of a legitimate concern for the clients, as additionally for the
advantage of the producers. Metric consultancy did an experimental study of more
than 2600 clients to discover the issues confronted by them inside first three months
of obtaining their new bike. The study secured Bangalore, Chennai, New Delhi, Pune
and Hyderabad. With the end goal of the study bikes were partitioned into four classes
mopeds, scooter, bike and e-bikes. Each of the more than 2600 clients were requested
that react to 271 inquiries with every inquiry going under one of 11 parameters that

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the review observed. A comprehensive overview of this extent has been completed in
India interestingly. The normal bike has 1.87 issues, with the best having only 0.59
issues for every vehicle. As indicated by the outcomes most purchasers check with
friends and relatives, while a couple ask the dealer. The review found that 72% of the
respondents checked with friends, partners and relatives, 7% checked with mechanics
and auto experts, 15% settles on their own while 5% checked with the dealer.

A two wheeler as an automobile is also considered as a durable products. In this

section literature related to various durables and their purchase behavior is discussed.
A two-wheeler is a high involvement and high risk product. Consumer demography
plays an important role in developing the attitude and behaviour. A study conducted
by Dharmendra Kumar Tiwari (2012) related to demographic effect on consumer
behaviour analyzed the demographic effect on consumer purchase behaviour
regarding durables taking into consideration the medium of advertisement, factors
motivating to purchase, initiation of purchase idea, family members’ influence on
purchase process, and finalization of purchase decision. The study was conducted in
the state of Haryana, collecting the data from 500 respondents. The study revealed
that respondents’ residential status was indifferent but level of education, occupation
and family income significantly affected the consumers’ purchase behaviour about
durables. Study also explained that television was a popular medium of
advertisement. Elder members of the family initiated the idea of purchase in most of
the cases in joint family. Also, joint family finalized majority of purchase decision
under the influence of family members and friends. Brand image, personal
experience, and guarantee were three motivational factors to purchase consumer
durables.

In the country like India rural consumers plays a significant role in the consumer
durable industry. S. Parihar (2015), in their study, compared the behaviour of urban
and rural consumers with special reference to consumer durables.

The real goal of the study was to dissect the distinction between the purchasing
conduct of urban and provincial consumers as far as their inclination for different
properties of the decision criteria, for example, innovation, style, brand picture, cost
and after-deals administrations. From the study it was found that urban and rustic

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markets fundamentally contrast from each other in considering general and item
particular elements while settling on their buy choices for durables. Urban and rural
consumer conduct was altogether distinctive in considering innovation, style, brand
picture, cost and after-deals administration while taking buy choice for a buyer. In this
manner, it was recommended that advertisers of purchaser durables work in country
markets with an alternate showcasing technique which ought to be as per the
particular attributes of rustic buyers.

A study by George Babu P. and Edward Manoj (2012) examined how the degree of
personal involvement in a purchase decision affects the information needed to reduce
cognitive dissonance associated with that purchase. The creators contended that,
exceptionally included people, as a result of their high association in buy choices, are
unbending in their biased perceptions that prompted the buy. Significantly they have a
tendency to make light of the new perception and effectively pay special mind to buy
strong data, instead of changing the old discernment that prompted the buy choice.
Likewise, it was suggested that to conquer the psychological cacophony connected
with a high contribution buy, more strong data is expected to defeat the intellectual
discord connected with a low inclusion buy. It was likewise found that the readiness
of an offensive individual to acknowledge the new cognizance increments with the
pass of time from the season of event of the psychological discord. The concentrate
likewise uncovers that, for a run of the mill buy, the level of psychological
disharmony felt by more included buyers was not as much as that felt by less included
buyers. Therefore, despite the fact that the level of intellectual discord felt by very
included buyers is lower, the trouble for them to ponder it is higher. A related finding
was that more arranged and less unconstrained purchasing conduct is connected with
a higher level of subjective disharmony.

In consumer durables, promotional schemes play a major role. To know the

perception of consumers towards promotional schemes for durables in Punjab, Anand
and B. S. Hundal (2012) conducted a study. A sample of around 600 households
from three economically significant districts of Punjab viz., Ludhiana, Jalandhar and
Amritsar were selected for the survey. The study was done to contrast and break down
the essentialness given with different limited time plans by rustic and urban
respondents. The chosen limited time plans were: portion buy office, 0% interest plan,

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substitution, offseason markdown, celebration offer, free blessing plan, free after-
deals administration and trade offer. The outcomes showed that however both the
gatherings appeared to have arranged every one of the variables as "critical" in deals
advancement, a moment perception expresses that urban respondents have doled out
high need for the plans as: portion buy, off-season markdown, 0% interest framework.
Rustic respondents have appraised generously for substitution, celebration offer, free
blessing plan, free after-deals administration and trade offer. Measurably, contrasts
were observed to be ignorable with the expectation of complimentary blessing plan
and trade offer, i.e., both gatherings contrasted inconsequential for these two variables
however for rest of the variables, the distinctions in the discernments were
unfathomable.

A study performed by Ahmad Jamal and Mark M.H. Goode ( 2011)to know the
impact of self-image congruence on brand preference and satisfaction. The main
objective was to determine the effect of self-image congruity on brand preference and
satisfaction in the precious jewellery market in the UK. A questionnaire was framed
and was surveyed in 500 in five major cities of the UK only for consumers of precious
jewellery. Results showed that mental self view congruity was an extremely solid
indicator of consumers' image inclinations and a decent indicator of buyer fulfillment.
Respondents with more elevated amounts of mental self portrait congruity will
probably incline toward the brand and appreciate more elevated amounts of
fulfillment with the brand when contrasted with those with lower levels of mental self
view congruity. The paper talked about the suggestions for brand supervisors with the
goal that they can position their brands in a compelling way.

Shivakumar and Arun (2002) in a study of buying behaviour of rural Pondicherry

people noted that people considered only one brand and visited only one shop before
making a purchase decision. The subject of the study for survey was footwear and
wristwatches. Not at all like urban ranges, where watches had gotten to be blessing
things, in country regions, were watches purchased as and when essential. Creators
found that rural clients considered brand name and cost as critical components in
purchasing wristwatches. Rural clients wanted to shop just at one spot. A fascinating
finding was that they appeared to purchase wristwatches and footwear as and when
they required them without sitting tight for any offer or happy season. For

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wristwatches, around 45% of the studied respondents reported that they themselves
took the purchasing choice while around 20% of their partners were of the perspective
that `retailers', `advertisements', and so on, impacted their buy choices.

Automobile is considered as an inseparable part of one’s life all over the world. This
section includes the studies related to automobile industry and consumer behavioural
studies in automobile industry. A paper by Badri Narayan G. and Pankaj Vashisht
(2005), analyzed the determinants of competitiveness of auto industry in India, based
on a field survey and a quantitative analysis of secondary data. The exploration
highlighted that all portions of Indian auto segment are developing at a genuinely high
rates and their profitability and fare power is on the ascent. Residential deals are
rising; however they have declined in certain sub-sections of vehicles. In any case, the
R&D use has been rare. Compelling rate of assurance of vehicles get together was far
higher than that of auto-parts producing. Disorderly division, which is entirely critical
in auto-part producing, has developed more quickly in the urban ranges than in the
provincial zones. The econometric examination proposed different measures that
could be taken by the legislature, especially, the credit help for SMEs.

A field review involving car producers in India underlined different imperatives

confronted by the part, for example, the deficiency of talented labor alongside poor
framework, fluctuating steel costs and inaccessibility of area at sensible cost. This
proposes the administration could encourage the business in turning out to be more
aggressive by making strides, for example, auxiliary financial changes, cut in import
obligations of crude materials and capital products, advancement of R&D and FDI,
preparing offices, research-sponsored transactions of FTAs, guide for blending
emanation standards the nation over and framework change. Industry, then again,
ought to enhance its R&D abilities and statistical surveying.

Mohanram and Mahavi (2008) led a study on item related trademark, advancement
and promoting blend as key devices in deciding buy behaviour and buy choice by
young people. This study is identified with adolescents' behaviour with bikes they are
using. Young people's are affected by upgraded number of the item and consequently
they go for data seek, gather data from various dealers on different perspectives like
value, innovation etc. They are likewise affected by associate impulse and deals

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discussion of the dealers. The young people are utilizing two sorts of procedures to
persuade their folks. They are candidly persuading and legitimately persuading.
Notwithstanding, young people give more significance to item esteem and apply
either passionate or coherent methodology for affecting their young one. While
quality, sturdiness, utility, and long haul advantages are the top need; they likewise
investigate shading, prevalence, physical appearance and brand estimation of the
bikes.

However for advancement needs, adolescents more determined by merchants'

business activity, social environment jolts, deals advancement and promotions. While
adolescents are described by enthusiastic and consistent, passionate young people
attempt to advance their significance by different item esteem traits like utility,
quality, highlights, toughness, long haul advantages and service guarantee of the
bikes. Thus, youngsters likewise deliver item picture trademark like tasteful
appearance, shading, brand quality, prevalence and social picture on selecting the
item. Nonetheless, legitimate young people offer significance to item picture
perspectives while getting the item. The item esteem variables are the rudiments
which consistent individuals expect thus they may underscore on item picture
components. In admiration of advancement blend, different deals activities like store
visits, store show, multi level advertising and deals advancement endeavors like test
run, free offers; account plan and different deals advancement method impact the
intelligent young people. Likewise ad in TV and print media are adding to some
degree. To finish up enthusiastic youngsters give slightest imperative to deals
advancement.

The changing standards in motorbike segment has made every one of the brands
conscious and want their products distinguishable as far as item, cost, and place is
concerned. It is just the advancement that assumes a basic part in deciding the future
course of pattern for various motorcycle organizations.

A study on the effect of promoting and different promos on purchasing conduct and
brand inclination of engine bicycles was led by Nath Chintan Kumar. The study had
taking after principle targets: 1) To discover the elements that impact clients' buy
choice, 2) to discover the effect of publicizing on buyers' image inclination, and 2) to

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recognize the elements mindful expanding deals for business sector of various brands.
The information was gathered from 294 respondents of Assam. From the
examination, it was found that there was no essentialness relationship between the
decision of various bikes and the pay level of the respondents. Age was the critical
component for brand determination. Youthful people demonstrated enthusiasm for
premium brand where as old people scan for economy and straightforward brand. The
study uncovered that 45% of the country respondents and 62.86% of urban
respondents are impacted by notice. In different promos, finance was the fundamental
variable deciding buy choice. Regarding highlights like design, mileage, cost and so
forth. Hero-Honda was the most favored brand. Careful expectation of buyer conduct
is extremely troublesome. Consumers of motorbike can't be kept to some settled
strata. One segment of buyers search just for cost while some other concentrated on
mileage. Some search just for design and new appealing brands. In this way, it is
inferred that marker ought to legitimately sort out publicizing and different promos to
pull in various strata of the buyers.

A study was completed by London Streets (2004), an exploration firm, on racer bike
(P2W) buyer in London in the year 2004. The center of the research was to pick up a
more prominent comprehension of racer bike (P2W) clients in London and the
elements affecting their security. The review was a mix of telephonic meeting of 504
clients and individual meeting of 80 messenger riders. A portion of the consequences
of this study exhibited in 2007 were as per the following: (1) Compared to London's
populace, P2W riders were more male, matured between 25-44 years, working class
and white. (2) Most riders were riding vehicles somewhere around 125cc and 600cc,
drove by this mode and spread impressive mileage every year. (2) Most riders viewed
themselves as to be as skilful as and more certain than the normal riders. Review
inferred that these discoveries may add to the comprehension of street wellbeing
issues for controlled bike riders and may diminish fueled bike setbacks on London's
streets.

A study led by Irwin Broh and Associates (2007), in the interest of The Motorcycle
Industry Council (MIC), on new bike proprietors in U.S.A., studied 2,000 family units
that possessed bikes and 2,000 families not owning bikes. Patterns were distinguished
by contrasting 2002-02 information and that of overviews led in 1998, 1990, 1985,

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and 1980. The study reflected data assembled for more than 12 months, from October
2002 through September 2002. Key discoveries were as per the following:

(1) Women are progressively turning out to be a piece of the motorcycling scene.
Female bikes ownership was up to almost 10% of the aggregate bike ownership.
The female ownership expanded from 6.4 percent in 1990 to 9.6 percent in 2002.

(2) The middle family unit wage of ownership surpassed that of the U.S. populace
all in all.

(3) More than half of bike ownership was hitched.

(4) Of the considerable number of bikes being used in 2002, 42% were recently
obtained, which was 22% in 1998.

(5) Sports motorcycle owners spent essentially more on reseller's exchange buys,
including tires, repairs and upkeep, new parts, embellishments, altering
hardware, and riding attire.

A paper by Bagodi Virupaxi and Mahanty Biswajit) 2008) concentrated on

comprehension whether the Indian bike service industry has considered repair as a
line of business. The study highlighted that more than 55 million bikes are preceding
onward Indian streets. Appropriately, bike service area ought to have produced
income adding up to INR 100,000 million every year. In all actuality, this has not
been acknowledged in the sorted out service area. To convey the investigation, a poll
review was directed utilizing the adjusted SERVQUAL. An underlying pilot study
was gone for comprehension the characteristics in Indian setting, which was trailed by
an organized overview that got the reaction of 510 clients spread over India. Every
property was dissected (smaller scale investigation) in point of interest, while the
exploratory element examination showed the rise of five elements, specifically,
unwavering quality and responsiveness, certification and sympathy, accommodation
variable, and physical assets and money related component. It was likewise found that
giving helpfully dependable service was most imperative in bike service in India to
catch the business sector.

Venela G. V. (2011) found that India with its tremendous populace is simply correct
spot for bike producers, who can offer their brands to various strata of purchasers. In

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any case, the buyers are especially mindful of the brands multiplying in the business
sector and they cannot be underestimated. The makers need to comprehend their
conduct and inclinations and turn out with the items which the shoppers favor and
which can give them greatest fulfillment. At exactly that point there is an opportunity to
build up certifications among the buyers. Concerning the bikes, the greater part of the
country shoppers who were owners have recorded the nature of the item as the prime
component while considering the different brands of bikes. Elements of the bike,
exhortation of companions and relatives, and brand picture/organization notoriety take
after the quality component with regards to bikes. Being the changed economy with a
developing white collar class, India has risen to be an imperative spot for some
multinational organizations. The local players need to gadget each system to counter
the difficulties of MNC's to withstand the opposition and survive. It was apparent
from the study that even rustic shoppers have communicated their profound likings to
possess quality items. It was likewise found that buyers were quality cognizant and
were keen on improving buys that give them fulfillment at last.

A study was led by Subhadip Roy (1999) on purchaser decision of bike owners. The
discoveries recommended that any organization in the bikes business ought to focus
on fuel effectiveness as that is the most imperative to any purchaser. Consumers
additionally centered on security and they needed more secure vehicles. The study
divided the business sector into understudy and non-understudy fragments due to the
distinction in the inclination example of these two gatherings. Any organization which
needs to focus on a specific section ought to change its promoting plan to suit the
requirements of its target market.

M. Abdul Hanif, M. Edwin Gnanadhas and B.A. Abdul Karim (2006) directed a study
on shopper purchasing behaviour of bikes in Tamilnadu in India. The study uncovered
that relatives, companions, friends and relatives were the imperative wellspring of data
around bikes. Concerning buy choice, the study uncovered that larger part of the
respondents took the choice without anyone else with the discussion of family
individuals, companions or relatives. Efficiency, cost and support costs were the
fundamental variables affecting the purchasing choice of a specific.

In 2006, TNS Automotive led a review on the bike complete consumer loyalty. In
spite of the prevalent view, ladies are not as intense a client as they are made out to be

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in a male-commanded world. They are the ones who are simpler to fulfill contrasted
with their male partners. As indicated by the study ladies have reliably given higher
fulfillment scores to the bike models they were utilizing notwithstanding a couple of
special cases here or there, which are not huge. Speaking to the reactions of new-bike
purchasers towards the execution of 18 models in the key territories of offers
fulfillment, item quality, bike execution and outline, after-sale services, brand picture,
and cost-of-ownership, this was the biggest syndicated bike concentrate ever done in
India. Looking at the organizations, which make bikes and in addition bikes,
humorously Bajaj Auto, the past bike ruler, was the main organization whose bike
clients were less fulfilled. Conversely Hero Honda, which has entered the bike advertise
as of late, could enchant the scooters suited for female segment i.e. Pleasure. Among
the ungeared bikes Hero MotoCorp Pleasure tops the rankings took after by Honda
Activa. In the scooter portion, TVS Scooty Pep Plus was the ruler in the business sector.
According to the study, the fulfillment with scooter drops much speedier with their age
(possession period) contrasted with bikes, outfitted or ungeared. Producers must pay
consideration on this as this lofty fall happens on account of "Value" and 'Cost of
Ownership' - a range near the heart of Indian purchasers.

Saraswathi S. (2004) played out a study on Consumer Satisfaction on Post-Sales

Service with Reference to two-Wheeler Automobile Industry. The study was led
between two urban areas of Hyderabad and Secunderabad. Essential information was
gathered from 100 clients who obtained the motorbikes of different bike
organizations. The study was introduced under two heads: a) Part I and b) Part II. Part
I illustrated the impression of clients on post-deals administration and Part II
concentrated on the fulfillment of clients and reason of change on post-deals services
of bike industry. It was found that more than half of the respondents saw that inspecting
the vehicle and filling of the employment card were not preformed within the sight of
clients. For every other variable respondent had ideal recognitions. 21% of the
respondents didn't know about the administration station while taking the conveyance
of the vehicle. So it was prescribed that the buyers ought to be made knowledgeable
of the services at the time of purchasing of vehicle which was of key worry to them. It
was found that the mean fulfillment values for a portion of the measurements of
service are moderate.

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Shugan (1982) in his study on cost and quality relationship uncovered that cost is a
marker of the quality. Purchasers are urged to raise the quality of their item. He thinks
conveying a decent nature of merchandise is the right picture among the consumers.

Bitta (1984) in his study saw that purchasing behaviour is "the choice procedure and
physical movement which the people take part in when assessing securing, utilizing
and discarding products and services"

Dhunna (1984) in his study centered that "the buyer conduct of soda pops among 100
respondents speaking to reasonably the different classes of individuals. He considered
the brand with high mindfulness and inclinations esteem and the utilization example
of sodas. Taste was observed to be critical element in inclining toward a specific
brand of soda pop. Brand exchanging happened on account of non-accessibility of
favored brand. The majority of the respondents indicated enthusiasm for soda pops,
promotion all the more particularly by the individuals who were in the high school
bunch.

Fairhurst, Ann Elizabeth's Study (1985) was led to decide the relationship between
the level of consumer garments association and clothing store support behaviour. The
particular object of the study was to decide the relationship between the level of
purchaser association, demographic, psychographic and salient store credits and to
create market section benefit taking into account the buyer inclusion.

Kim, Kyung Hoon's study (1987) An investigation of United States International

University by Kim Kyung Hoon with a goal to investigate the relationship between
brand faithfulness and "Origence" and knowledge amid the buy of a low speculation
item uncovered the accompanying results. • "Origence" component of "Purchaser
Creativity" was not critical identified with brand dependability. • "Insight" a component
was observed to be a standout amongst the most vital indicators of brand dedication. •
While sex and family income were discovered most vital in brand faithfulness.

Andrew Elier (2008) has given definite data expected to instruct the consumers about
their particular rights as buyers. The first area portrays how to present a persuading
defense when confronted with a consumer issue. The second area gives an outline of
purchaser assurance laws. The significant piece of this book analyzes the important

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laws at every phase of procurement, covering promoting and deals hones, a

purchaser's privilege and commitments guarantees and techniques for installment.
Arthur Best's5presents the nature and degree of buyer objections and the foundations
intended to handle these objections. He has portrayed three phases in the purchaser
protestation process, for example, impression of the issue, voicing of the grumbling
and determination of the objection. This book contains some contextual analyses
which exhibit critical deterrents all the while and defects in the organizations of
business and outsider help for acquiring legitimate review. O.P. Gara has given a
thorough section wise analysis on the subject. He has clarified the buyer's position
under the American, British and Swedish Laws. He has additionally managed part of
national and global purchaser association in buyer security.

M. Rengasamyhas (2012) inspected the different conceivable types of misuse of

consumers by makers and brokers and the present condition of law identifying with
the issues of shopper insurance against abuse. He has called attention to the variable
which adds to the readiness of such, shopper abuse and the viability of the current
lawful component in the light of current learning of the causes and treatment of the
turmoil. At long last he has offered significant proposals to upgrade shopper security.

S.V. Gulshan (2009), has called attention to the position of Indian shoppers and their
issue. He has assessed the consumer Protection Act 1986. The points of interest of
redressal hardware at District, State and National levels frame the highlights. The
imperative choices influencing purchaser have been talked about.

M.M. (2012), in his article "Estimation of consumer loyalty" has broke down the new
bundle on client service brought out by the Ministry of Finance and recognized
components for poor client service including wasteful administrative thoughtfulness
regarding service issues, antiquated strategies, bureaucratic and monopolistic
mentality, prohibitive practices, poor inspiration, overstaff and insufficient
innovation. He created administration quality list in no time called as "servegnal" with
the assistance of 5 variable, for example, • substantial quality • dependability •
responsiveness • certification and • compassion on which clients assess the nature of
administration of a venture. In the study, fulfillment record has been worked out by
contrasting the degree of fulfillment of clients with various business exchanges.

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S. Rajamohan (2008), has concentrated on the birthplace and development of

consumer development, the association of consumer debate redressal gathering and
the consciousness of buyer. He has likewise offered a couple of proposals.

Sudipto Samantanin (2008), studies the Indian "Bike industry A Long Ride to
Freedom" has recognized the accompanying angles. • The Era of joint endeavors like
the Indian bike producers appreciated security from the legislature. The section of
remote players was limited and in this manner, the exchange of innovation was
insignificant. • Joint venture in the Indian bike industry.

As noted by NMCC (2010), fabricating part is an exceptionally wide Multi-

dimensional idea that holds onto various perspectives, for example, value, quality,
Productivity, Efficiency and full scale financial environment. There are various
studies on automobile industry in India, distributed by industry affiliations,
consultancy associations, research bodies etc. In this area, different studies on the
Indian car industry are looked into, under changed heads relating to intensity, to be
specific, worldwide examinations, arrangement environment and development of the
Indian vehicle industry, efficiency, viewpoints identified with inventory network and
modern structure and innovation and different angles.

The Investment Information and Credit Rating Agency of India (ICRA, 2009)
investigations of the Indian car industry, by worldwide examinations of full scale
environment, approaches and cost structure. The United States was the primary
significant player from 1900 to 1960, after which Japan had its spot as the cost-
productive pioneer. Taken a toll effectiveness being the main genuine means in as full
grown an industry as cars to hold or enhance piece of the pie, worldwide vehicle
producers have been sourcing from the creating nations. As indicated by this study,
the real preferred standpoint of the Indian economy is taught and talented workforce
with information of English. There are various lacunas that are in form of poor
infrastructural facilities, stringent laws for labour, policy differences between states
and various other inconsistencies.

ICRA (2009) the study finds a 25-25 per cent value disadvantage for Indian firms on
account of taxation and infrastructure and 11-25 per cent labour value advantage over
comparable ASEAN-member-based firms. During this section, studies on the policy

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setting referring to the Indian automobile industry and its evolution over the years are
reviewed.

Pingle (2010) reviews the policy framework of India's industry and its impact on its
growth. Whereas the ties between bureaucrats and therefore the managers of state-
owned enterprises contend a positive role particularly since the late Eighties, ties
between politicians and industrialists and between politicians and labour leaders have
obstructed the expansion.

Piplai (2009) examines the results of liberalization on the Indian vehicle trade, in
terms of production, marketing, export, technology tie-up, product upgradation and
gain. Since the Nineteen Fifties, some different firms entered the marketplace for two-
wheelers and business vehicles. In August 2008, a Draft of Automotive Mission
arrange Statement ready in consultation with the trade was discharged by the Ministry
of Heavy Industries and Public Enterprises. This was finally discharged as a report in
December 2008. This document attracts associate degree action commit to take the
turnover of the automotive trade in Asian nation to US$145 billion by 2016,
accounting for over ten per cent of the GDP and providing further employment to
twenty five million folks, by 2016.

McKinsey (2010) predicts the expansion potential of India-based automotive part

producing at around five hundred per cent, from 2005 to 2015. This report describes
the initiatives needed from trade players, the government and therefore the ACMA to
capture this potential. This study was supported interviews and workshops with
twenty suppliers and seven OEMs and survey with ACMA members. Trade players
are suggested to boost their operational performance, verify their strategic posture
jointly among those known within the study, improve capabilities in line with their
posture and invest terribly apace in a much planned manner.

ACMA (2009) notes that India's connation the WP (Working Party) : 1998
Agreement for international harmonization of automotive standards, let alone the
funding of National Automotive Testing and analysis Infrastructure Project (NATRiP)
by the government of Asian nation, has increased prospects of the Indian motorcar
trade rising up to international standards within the close to future, altogether aspects.

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Narayanan (2008) analyses the results of freeing policy on technology acquisition

and fight within the Indian industry throughout the Eighties and finds that fight has
relied on the flexibility to create technological benefits, even in associate degree era
of capacity-licensing. This is often most likely attributable to the entry of latest
foreign corporations that manufacture technologically superior and bonded quality
vehicles and opt to manufacture most of the parts in-house. Narayanan (2008)
conjointly finds that consolidation plays a positive role in a much regulated regime,
whereas it's not contributive for export fight in a very liberal regime.

Kathuria (2011) notes that the time-bound indigenization programme for business
vehicles within the Eighties expedited the upgradation of merchandiser skills and
modifying vehicles to suit native conditions, that demand practical potency,
overloading capabilities, fuel economy, frequent changes in speed and simple repair
and maintenance. Kathuria conjointly mentions that the selection between
consolidation and subcontracting crucially depends on the policy regime: in a very
liberal regime, consolidation might not work.

Sharma (2010) analyses the performance of the Indian motorcar trade with reference
to the productivity growth. Partial and total issue productivity of the Indian industry
are calculated for the amount from 2006-07 to 2010-11, exploitation the Divisia-
Tornquist index for the estimation of the overall issue productivity growth during this
section, the studies that examine the aspects referring to native and international
motorcar provide chains also because the structure of the Indian motorcar trade area
unit reviewed.

ACMA (2010) presents the recent trends in the Indian auto industry as a whole and
their implications for automotive supply chain in India. The market-oriented growth
and growing industry in Asian country have ensured bright prospects for the Indian
auto component sector, which is vibrant and competitive. Huge future growth
potential of the car trade and augmented access to client finance might lead Asian
country to an area among the highest 5 automotive economies by 2025. Most of the
ACMA members have a minimum of one standards certification. They are embracing
world-class modern shop-floor practices.

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Kathuria (2009) analyses the Commercial Vehicles (CV) industry in India in a

detailed manner, dwelling on the concepts of vertical integration and subcontracting,
production technology and technological change. To evaluate the fight of Indian
business vehicles makers within the domestic market, growth trends, structural trends,
market shares, profitability, productivity ratios, prices, quality, dealer network and
performance are analyzed. The overall performance of vehicles in terms of export was
analyzed at domestic as well as at international front and a detailed study was
conducted to analyze the demand at both the fronts. The crux of the study and the type
of methodology used and the conclusions arrived at are of great help to analyze the
demand of the product. Some of them aim at learning terribly specific aspects of the
Indian automotive vehicle trade like international comparisons to look at the
implications of FTAs, productivity, technology and supply chain, while others waver
a lot of general aspects like ways, competitiveness, evolution of the industry, structure
of the industry and policy aspects pertaining to the Indian auto industry. These studies
square measure supported field surveys, interviews, secondary information sources,
economics analysis and descriptive analysis.

The studies by ICRA, ACMA and McKinsey (2005), that specialize in world
comparisons and policy surroundings of the automobile industry, area unit supported
quite realistic and sensible approach, however lack analytical and quantitative
approach. When looked from a neutral perspective, it clearly emerges that the
majority of the findings of those studies request a point of protection for the auto-
component sector. They are even in some ways that thanks to the huge protection
offered to the auto-component sectors within the competitor countries. However, an
additional analytical and quantitative approach is needed to gain concrete conclusions
on protection, as a result of tariff barriers are removed at some purpose of your time
in future and the trade must fix to face the trade regime. Narayanan studies the issues
related to technology in the Indian automobile industry econometrically. These
studies are based on sound econometric theories and the results have been critically
analyzed based on evolutionary theoretical framework. However, these studies suffer
from a number of common issues. The data available does not cover major players
from the market that includes including Toyota. Hence, this study may are
supplemented by associate degree analysis on the foremost corporations that are
omitted, through field surveys, interviews or annual reports. Secondly, considering

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industry in isolation isn't comfortable, since the auto-component sector in Asian

nation has been enjoying a key role within the industry, throughout the amount
thought-about in these papers.

Thirdly, consolidation is proxies by the share of added in total sales, in these papers.
This may not be comfortable as a result of consolidation and sub-contracting area unit
too advanced to be captured by one variable supported added. Value-added may well
be high, as a share of output, despite the absence of vertical integration, because of the
fact that several activities other than component-manufacturing such as painting,
assembly and attachment ensue inside the assemblers' factories.

According to Anuj Kumar Kanojia, (2011) in his article finds the impact of
behaviour of consumer on two wheeler sales in urban areas of India. However, the
study additionally showed that urban and rural regions have totally different angle
once it involves choosing the 2 wheelers bike model.

According to Economic times Ketan Thakkar, ET Bureau: How essential Asian

nation is to Hero Motor Co's fortunes became evident at the shut of the last year. The
Japanese company had forecast that it'd sell fifteen.52 million motorcycles and all
terrain vehicles (TVs) by March. It complete up falling marginally short (15.494
million) but that it was even able to get so close to the target was because its Indian
unit grew at a cracking 20% pace. The numbers just about tell the story of what...

ICRA Equity Research Service: - Hero MotoCorp Ltd. Results as on January 20,
2012, Hero MotoCorp Ltd (HMCL),earlier named as Hero Honda Motors Limited, is
the world's biggest bike (2W) producer as far as sales volumes is concerned, a
position that it has been holding for the last nine back to back years. HMCL was
established as a joint endeavor (JV) between the Hero Group of the Munjal family and
Hero Motor Company (HMC, Japan), with each holding around 26% value stake in
the company. In December 2010, the Hero Group and HMC consented to rebuild their
separate value positions in HMCL, as a major aspect of which, the Hero Group
purchased out the whole 26% of HMC's stake in HMCL. HMCL has three assembling
offices situated at Gurgaon (Haryana), Dharuhera (Haryana) and Haridwar
(Uttarakhand) with a total production ability of 6.15 million vehicles for each annum
as of March 21, 2011.

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Asian Journal of Technology & Management analysis / Vol. 01 –Issue: 02 (Jul -

Dec 2011) according to him: - Hero Honda has a big pie of the market in terms of two
wheeler. It has excess of 41 percent share in this particular segment of two wheeler.
Whereas Bajaj is the second highest producer of two wheeler in India with a percent of
26.70 and has shown a very good growth during this period. Third place was captured
by the TVS motors in the section which has a market pie of 18.14 percent.

SIAM, Imams Analysis: - Indian bike markets, rivalry is exceptional with around 10
players fighting for the market share in the business. These players incorporate
worldwide companies like Hero, Suzuki and Yamaha and additionally Indian players
like Bajaj and TVS. The market pioneer in the domestic bike industry is Hero
followed by Bajaj and TVS motors.

Hero Honda Motors, with a 42 percent pie of the market share is the biggest bike
maker on the planet and is nearly trailed by Bajaj Auto, which has a 27 percent of
share in the market. TVS Motor is the third biggest bike maker in India; it has
likewise settled an assembling office in Indonesia. Hero Motors is established in India
as Hero Motorcycles and Scooters India Limited (HMSIL), a 100% subsidiary, with
joint venture with Hero Honda. Another global player, its Suzuki, has as of late
entered the Indian market through its subsidiary. The business is portrayed by new
product launch with more than 20 models propelled in 2006-07.

2.5 Research Gap

The study is confined to two wheeler bike segment and the behaviour of consumer,
and does not cover other aspect of automobile industry. Study tried to cover few
aspects of the same, in industry profile in introductory chapters. The study is also
limited to Jaipur and geographical location is assumed to be associated with consumer
buying decision process.

The demographic factor considered for the study are age, gender, occupation and
location which is a limitation and gap as other demographic factor have an influence
on purchase decision.

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2.6 Scope of Study

Research was conducted during 1 March 2011 to 30 April 2017 where researcher will
investigate the consumer behaviour in two wheeler industry while doing the
comparative analysis between Hero MotoCorp and TVS Motors.

The study is based on the data collected from selected locations of Jaipur city. The
sample consists of all age group of driving population that includes private
employees, businessman, govt. employees, housewives, students etc. To meet
consumer various authorized outlets of Hero MotoCorp and TVS motors were visited
in Jaipur.

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