A

PROJECT REPORT ON

CONSUMER BUYING MOTIVES OF HYNDAI CARS

UNDERTAKEN AT

NAVJIAVN CARS PVT. LTD.

NAVSARI

Submitted By:

ROHAN P. DESAI

(ID- 09MBA24)

Guided By:

MR.JITESH PARMAR

MBA PROGRAMME

(Year 2009-11)

SHRIMAD RAJCHANDRA INSTITUTE OF

MANAGEMENT AND COMPUTER
APPLICATION

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 DECLARATION

I, Rohan P. Desai the student Shrimad Rajchandra

Institute of Management and Computer
Application, afflicted to Gujarat Technological
University, hereby declare that this project report is a
result of culmination on my sincere efforts.

I also declare that this project has not been submitted

for the award of any other degree, diploma, literature or
recognition earlier.

Place: Navsari Rohan P. Desai

Date:

ACKNOWLEDGEMENT

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I am indebted to Mr. Hiren Patel General Manager of Navjivan
Cars Pvt. Ltd, Navsari for giving me an opportunity to work as
a summer project trainee in this esteemed organization. His
knowledge and experience was a great motivating factor. This
effort would not have been possible without his able, efficient,
valuable and timely advice, insights and thoughts. I am very
much thankful to sir for his valuable guidance and support.

I take this opportunity to express my heartfelt gratitude to my

faculty guide Mr. Jitesh Parmar Faculty of Marketing, Shrimad
Rajchandra Institute of Management and Computer
Application. I am thankful to sir for his valuable support and
guidance throughout the project.

I am also thankful to Mr. Vikas Patel, Team leader, Navjivan

Cars Pvt.Ltd for his assistance and support, I am equally
grateful to each and every member of Navjivan Cars Pvt.Ltd,
Navsari for their whole-hearted co-operation in completing this
project in stipulated time.

Last but not the least, I would like to thank my family members
and friends whose unbounded support facilitated the successful
completion of the project.

Rohan P. Desa

Executive summary

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Introduction:-

Hyundai is one of the most premiere company of the world in car

manufacturing & selling stands 4th in terms of sales. Hyundai motor
company has a brand value of approximate US $ 4.6 billion in
2009.Rank 8th in automotive brand ranking.HMIL Rank 2nd in terms of
Market Share in INDIA.

Introduction of Buying motives:-

“Buying motives are those influences or considerations which provide

the impulse to buy, induce action or determine choice in the
purchase of goods and services.”

Research problem:-

The company wants to know more about the various factors

customers that motivate them to purchase Hyundai Cars.

Objectives:-

To find out various factors that motivates customers to buy Hyundai

Cars.

To find out which is the most preferred preference for buying Hyundai
Cars.

Research design:-

In this project descriptive research design is used for analyzing buying

motives of Hyundai Cars. It is very simple and more specific than
exploratory study.

In this research project I am using Primary Data collection through

questionnaire.

Analysis Tools & Technique:-

Chi-Square, Frequency distribution is used.

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Sampling Plan:-

The sampling unit for the project is taken from Navsari who are the
current users of Hyundai Cars. Sample size of 150 is taken.
Nonprobability convenience sampling method is taken. For contacting
customers’ personal interview and telephonic interview methods is
used.

Findings:-

The study finds that majority of the customers were highly prefer
comfort of the car. Majority of customers fall between age group of 31
– 40.

Conclusion:-

It will help company to know which factors motivates customer for

buying.

Recommendation:-

The company can provide easy financing facilities, spare & parts. The
company can use print media

TABLE OF CONTENTS

SR TOPIC PAGE
NO NO.

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 .
1 INTRODUCTION
1.1 History of Automobiles 1
1.2History of Indian Automobiles 4
1.3About Company 6
1.4Organizational Profile 10
2 ABOUT THE TOPIC
2.1Topic:-Buying Motives 20
2.2 LITREATURE REVIEW 24
3 RESEARCH METHODOLOGY
3.1Research Problem 28
3.2Research Design 28
3.3Data Source 29
3.4Research Instrument 30
3.5Sampling Plan 30
3.6Contact method 31
3.7Limitation of Study 31
4 DATAANALYSIS&INTERPRETATION 32
5 FINDINGS 49
6 CONCLUSION 51
7 RECOMMENDATION 52
8 BIBILOGRAPHY 53
9 APPENDIX 54

1. Introduction

1.1History of Automobiles

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a. The First Motor Vehicle:-The first steam-powered vehicle
was designed by Nicolas-Joseph Cugnot in 1769 and could
attain speeds of up to 6 km/hour.

Nicolas-Joseph

Cut away Drawing

The original 1769 model

. Cugnot's 17

b. The First Internal Combustion Engine:- In 1876 Nicolas

Otto invented the first four-stroke internal
combustion engine. He called it the "Otto Cycle
Engine

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 Nicolas Otto Otto Cycle Engine

c. First Automobile with I.C. Engine:- In the year

(1885) Karl Benz the German mechanical engineer
designed and built the world's first practical
automobile to be powered by an internal-
combustion engine based on Otto's design. It was a
three wheeled machine.

Karl Benz Original Benz in 1885

d. First Four-Wheeled Motor Vehicle:- In the same year 1885

Gottlieb Daimler (with partner Wilhelm Maybach) perfected
his internal combustion engine and attached it to a former

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 stagecoach, thereby inventing the first four-wheeled motor
vehicle.

Gottlieb Daimler

1st Four Wheel Motor Vehicle in 1885

1.2 History of Indian Automobile Industry

a. Trend in automobile industry:-

• Automobile Industry in India has witnessed a tremendous

growth in recent years.

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 • Come a long way since the first car ran on the streets of
Bombay in 1898.

• It employs more than 10 million people.

• After independence Indian automobile industry was plagued
by unfavorable government policies. All it had to offer in the
passenger car segment was a 1940s Morris model called the
Ambassador and a 1960s Suzuki-derived model called the
Maruti 800.
• The automobile sector in India underwent a metamorphosis as
a result of the liberalization policies initiated in the 1991
• Measures such as relaxation of the foreign exchange and
equity regulations, reduction of tariffs on imports, and refining
the banking policies played vital role.
• After the sector opened to foreign direct investment in 1996
global major moved in.
• Matured in last few years and offers differentiated products for
different segments of the society.

b. Today’s Scenario:-

• An annual contribution of 4% to the GDP and accounting for

about 5% of the total industrial output, this segment clearly
stands out as a significant contributor to the economic growth.
The industry has grown at a CAGR of 16% p.a over the last 5
years.
• With the potential to emerge as one of the largest in the
world. Presently, India is

- 2nd largest two wheeler market in the world

- 4th largest commercial vehicle market in the world
- 11th largest passenger car in the world and is expected to
be the 7th largest market by 2016

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 • The industry has emerged as a key contributor to the Indian
economy
• Over 9.9 million vehicles are produced by India & 1.3 million
passenger cars and about 400 000 commercial vehicles.

c. Indian Automobile Market:-

1.Hyundai 6.Fiat 11.Mahindra 16.Nissan 21.Tata

& Mahindra Motors
2.Hindustan 7.Force Motor 12.Lamborghi 17.Porsch 22.Toyota
Motors ni e
3.Audi 8.Ford 13.Mahindra- 18.Rolls- 23.VolksWa
Renault royce gen
4.Honda 9.Internationa 14.Mercedes 19.San 24.Volvo
l Motors Benz Motors
(Sonalika)
5.BMW 10.GM(Chevro 15.Mitsubishi 20.Skoda 25.Reva
let) Motors

(Source: - Hyundai Training Book)

d. Car segmentation as per SIAM:-

• A1 (mini – upto 3400 mm): Maruti 800, Tata Nano.

• A2 (compact – upto 3401 to 4000 mm): Santro, i10, i20,
Indica.
• A3 (mid-size 4001 to 4500 mm): Accent, Lancer, Verna, SX-4.
• A4 (executive – 4501 to 4700 mm): Octavia, Laura, Civic.
• A5 (premium – 4701 to 5000 mm) : Sonata, Accord, Teana
• A6 (luxury – 5001 mm to above) : s class ( Mercedes Benz,
Audi)

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 • C (van type): Omni, Versa, Eeco.
• B2 (passenger carrier): Tavera, Innova, Tata Sumo.
• SUV’s: Safari, Mahindra, Fortuner, CRV.

1.3About the Company

a. Hyundai Motor India Limited (HMIL).

 VISION & MISSION

• Vision statement:-Our team provides value for your future.

• Mission Statement:-To pursue excellence and deliver cars
that inspire, so you can live your life the way you want. And
drive your way.

Picture view of the plant in Chennai

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary

of Hyundai Motor Company (HMC), South Korea and is the largest
passenger car exporter and the second largest car manufacturer
in India. HMIL presently markets 6 models of passenger cars
across segments. The A2 segment includes the Santro, i10 and
the i20, the A3 segment includes the Accent and the Verna, the
A5 segment includes the Sonata Transform.

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 HMIL’s fully integrated state-of-the-art manufacturing plant near
Chennai boasts of the most advanced production, quality and
testing capabilities in the country. To cater to rising demand,
HMIL commissioned its second plant in February 2008, which
produces an additional 300,000 units per annum, raising HMIL’s
total production capacity to 600,000 units per annum.

In continuation with its commitment to providing Indian

customers with cutting-edge global technology, HMIL has set up
a modern multi-million dollar research and development facility
in the cyber city of Hyderabad. It aims to become a centre of
excellence for automobile engineering and ensure quick
turnaround time to changing consumer needs.

As HMC’s global export hub for compact cars, HMIL is the first
automotive company in India to achieve the export of 10 lakh
cars in just over a decade. HMIL currently exports cars to more
than 110 countries across EU, Africa, Middle East, Latin America,
Asia and Australia. It has been the number one exporter of
passenger car of the country for the sixth year in a row

To support its growth and expansion plans, HMIL currently has a

290 strong dealer network and 540 strong service points across
India, which will see further expansion in 2010.HMIL Rank 2nd in
terms of Market Share in INDIA.

b. Hyundai Motor India Limited (HMIL) Exports.

February 22, Fastest Exports of 10 lakh cars

2010
March 25, Hyundai Motor India honored with ‘EXIM
2009 Achieved Award’ for the year 2008 by Tamil
Chamber of Commerce

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 November 5, Hyundai exports its first batch of ‘i20’ to
2008 European market. The first export
consignment comprised 2,820 units of ‘i20’.
June 11, 2008 Fastest Export - Over One lakh units of i10
exported since its launch in Oct 31, 2007
March 27, Fastest Export of 5 lakh units
2008
October 31, Hyundai Motor India rolls out the fastest
2006 300,000th export car
October 31, HMIL crossed the figure of 1 lakh vehicles
2004 in exports and emerged as the largest
exporter in the Indian automobile industry.
July 21, 2000 First major export-shipment of 760 Accent
and Santro cars rolls out of the Chennai
Port for Algeria

(Source:- www.Hyundai.co.in)

c. Global sales ranking:

Ranking Automakers 2009Global Sales(Units)

1 Toyota 3,564,105
2 GM 3,552,722
3 Volkswagen 3,100,300
4 HYUNDAI 2,145,000
5 Ford 2,153,000
6 PSA/Peugeot 1,586,900
7 Honda 1,586,000
8 Nissan 1,545,976
9 Suzuki 1,152,000
10 Renault 1,106,989

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 (Note: - Above data is of first half of year 2009, Source: - www.carzoo.com)

Hyundai motor company has a brand value of approximate US $

4.6 billion in 2009.Rank 8th in automotive brand ranking & ranked
above Suzuki, GM, Chevrolet, Porsche, Lexus, Nissan, & Ferrari &
69 in top 100 brands

It is sold in 193 countries through a network of over 5000

dealerships.

1.4Organization Profile

 Navjivan Cars Pvt. Ltd

a. Brief History:-

It is a private limited company incorporate under companies Act,

1956. The company is a dealer of Hyundai Motors India Ltd. The
company was incorporated on 24th of March in the year 2010.
Till date the company has extended its ramifications and
penetrated in its workings to the fullest extent and has achieved
a good related diversification in the automobile industry. The
company is formed under the directorship of Mr. Jashwantlal D.
Gajjar, Mr. Hitendrakumar J. Gajjar and Mr. Dipakkumar J. Gajjar.
For effective leadership & Control there is very efficient team
Leaded under leadership of Mr. Hiren Patel (General Manager),
Vikas Patel (Team Leader), Mr. Khan (Service Manager) & Skilled
Staff. Its Other Branches are at Suart, Varacha, and Baruch.

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b. Quality Objective:-

NAVJIVAN CARS PVT. LTD. has identified the following objectives

in pursuit of our quality policy: - To increase the number of
customers at least by 40 percent from our existing every year. -
To execute all the servicing within agreed time-frame. - To
update the skills of employees by providing 20 hours training
regularly on yearly basis.

c. Vision Statement:-

To be a leading automobile dealer in Gujarat in the forthcoming

years and maintaining the level of quality service and
implementing the concept of KAIZEN (IMPROVEMENT ON A
CONTINUOUS BASIS)

d. Automation Of Workshop:-

The Company has a fully automated workshop which has around

10 bays. The daily traffic is around 30 cars. The workshop
employs about 40 employees who are allotted the work
according to their respective skills.

e. Manpower:-

The Company employs about 100 people. The HR activities are

properly conducted and performance appraisal on the same are
made at regular intervals which serves as the base for the
promotion of the workers.
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 f. Company includes following Department:-

• Sales Department
• Service & Spares Department
• Accessories Department
• Advantage Pre-Owned Cars Department
• CRM(Customer Relationship Management) Department
• Training Department
• Account Department
• EDP Department

 Other Facilities:-

• Finance( tie up With Various Loan Provider Banks)

• Insurance
• Pick Up & Delivery for Service
• Customer Lounge
• Playing area for children

 Other Business Profile of the Company:-

• Navjivan Group has Other Dealership of AMW, Volkswagen

& Hero Honda.
• M/S. NEW TECH INDUSTRIES
• M/S. NAVRATNA INDUSTRIES
• M/S. NAVJIVAN TRADERS
• NAVJIVAN YARNS

Product Profile

1. SANTO XING

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 Facts:-
• Launched in 1998.
• The first car launched in Indian from Hyundai
• Santro Zip Drive was launched in May 2000.
• Santro Xing was launched in 2003.
• Santro is India’s largest exporter car under the name Atos!
• Santro is produced exclusively in India and exported around
the world to over 65 countries including advanced markets
like North America and Europe.
 Variants:-

• 1.1 eRLX Petrol

• 1.1 eRLX LPG
 Dimensions:-

• Overall Length- 3565 mm

• Overall Width- 1525 mm
• Overall Height- 1590 mm
• Wheelbase- 2380 mm
• Ground Clearance- 164 mm
 Body Colours:-

• Crystal White
• Sleek Silver

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 • Silky Beige
• Dark Grey
• Black Diamond
• Berry Red
• Electric Red
• Sparkle Blue
2. i10

 Facts-
• Model name- i10
• Design and creation- Hyundai- KIA, R&D Centre- Korea.
• International Debut- India
• Launch time- November’07
• Body style- 5 door hatchback
• i10 compete in the high volume mid compact segment.
 Dimensions-
• Overall Length- 3565 mm
• Overall Width- 1595 mm
• Overall Height- 1550 mm
• Wheelbase- 2380
• Ground Clearance- 165

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 Variants:-

• 1.2 L Kappa
• 1.1L iRDE
 Body Colour:-

• Alpine Blue
• Oyster Grey
• Crystal White
• Sleek Silver
• Electric Red
• Stone Black
• Deep Ocean Blue
• Blushing Red

3. i20

 Facts:-
• There’s a new shape on the street and it’s called the Hyundai
i20. As you would expect from a car company that buzzes with
fresh ideas, novel solutions and top technology, Hyundai i20 is
the epitome of the modern premium compact. Sharp and
stylish on the outside, spacious and versatile inside, it
combines comfort, safety and reliability in a package that is
affordable and economical.

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 Dimensions:-
• Overall Length- 3940mm
• Overall Width- 1710 mm
• Overall Height- 1505 mm
• Wheelbase- 2525
• Ground Clearance- 165

 Variants:-

• 1.2 Kappa Petrol PL

• 1.4 CRDi Diesel
• 1.4 Gamma Petrol
 Body Colour:-
• Crystal White
• Sleek Silver
• Sparkle Blue
• Silky Beige
• Diamond Black
• Berry Red
• Dark Grey
4. ACCENT EXECUTIVE

 Facts:-
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 • Launched in India in October 1999.
• Awarded the JD Power Asia pacific award 2001 for “Best
Appeal”.

 Dimensions-
• Overall Length- 4250 mm
• Overall Width- 1670 mm
• Overall Height- 1370 mm
• Wheelbase 2440 mm
• Ground Clearance 172 mm
 Variant:-
• 1.5 SOHC Petrol
• 1.5 SOHC LPG
 Body Colours:-

• Crystal White
• Black Diamond
• Sleek Silver
• Silky Beige
• Berry Red

5. VERNA

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 Facts:-
• Hyundai Verna Petrol & Diesel Launch in September 2006.
• Verna CRDi was awarded the ‘Performance Car of The Year
2007’ by Business Standard Motoring.

 Dimension:-
• Overall Length- 4310 mm
• Overall Width- 1695 mm
• Overall Height- 1490 mm
• Wheelbase- 2500 mm
• Ground Clearance-170 mm
 Variant:-
• 1.6 VTVT Petrol
• 1.5 CRDi Diesel VGT
 Body Colour:-

• Crystal White
• Stone Black
• Sleek Silver
• Blushing Red
• Deep Ocean Blue
• Champagne Gold
6. Sonata

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 Facts:-
• HMIL launches luxury sedan Sonata in year the 2001.
• HMIL launches the all new Sonata Transform in the year
2009.
• Awarded with “Best Overall Values” by Intelchoice.com.
 Variants-
• 2.4 M/T
• 2.4 A/T
• 2.0CRDi M/T
• 2.0 CRDi A/T
 Dimensions-
• Overall Length- 4800 mm
• Overall Width- 1832 mm
• Overall Height- 1475 mm
• Wheelbase- 2730 mm
• Ground Clearance- 170 mm
 Body Colour:-
• Crystal White
• Black Diamond
• Silky Beige
• Sleek Silver

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 2. About The Topic

2.1 Conceptual Framework Regarding Buying Motives

 Introduction of Buying Motives:-

What motivates prospects to buy? Why do they buy what they

do? Each prospect enters the selling and buying process with
emotional needs and motives that singularly or together cause
them to buy your service or product. People buy for their own
reasons, not yours or your company’s. Often these reasons are
rooted in emotion rather than logic, so although they may not
seem reasonable to you, they are important to the prospect.

 Meaning of Buying Motives:-

Buying Motive as “A motive can be defined as a drive or an urge

for which an individual seeks satisfaction. It becomes a buying
motive when the individual seeks satisfaction through the
purchase of something.

Motive is inner urge that prompts a person to perform some

action. It can be a strong desire, feeling, a drive or any emotion
which plays a role in the consumer’s decision to purchase a
product or a service.

According to D.J.Duncan, ―buying motives are those influences

or considerations which provide the impulse to buy, induce
action or determine choice in the purchase of goods and
service.

 Characteristics of Buying Motive

• There is a process by which individual decides whether,

what, when, from whom, where & how much to buy.

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 • It comprises of mental and physical activities of a consumer.
• Individual behaviour is also influenced by internal and external
factors.
• There is drastic change in the attitude and behaviour of
consumer.

 Types of buying motives:-

1. Product or patronage motives
2. Emotional and rational motives
3. Inherent and learned motives
4. Latent and Manifest motives
5. Psychological buying motives
6. Environmental Buying Motives

1. Product or Patronage motives:-

a. Product Motives:-It refers to those influences and reasons
which make the consumer to buy a certain product in
preference to another. These explain why people buy a certain
product. Product are of two types
i. Primary product motives: These motives induce a
consumer to purchase general class of the product. These
motives relate to the basic needs of people like hunger,
thirst, sleep.

ii. Selective product motives: These motives determine

which particular brand or item will be purchased from the
general class
 Patronage motives: - These are the motives which
determine where or from whom products are purchased.
These are the considerations which induce a buyer to
buy goods from specific stores. Patronage motives includes

 Price

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  Location
 Quality
 Variety
 Services
 Personality of Salesman

2. Emotional and Rational motives:-

a. Emotional motives: These are the motives which are
affected by the feeling of heart. Thus, motives are
physiological and psychological needs such as thirst ,
hunger, sex attraction etc. The emotional motives are of the
following types
 Love of others
 Social acceptance motive
 Vanity motive
 Recreation and relaxation motive
 Emulative motive
 Comfort and convenience motive

b. Rational motives: These are the motives where a consumer

takes the decision of purchasing a product by his head and
means i.e., after careful consideration and logical
thinking. In making rational purchases, the consumer
considers price, durability, dependability, efficiency etc.
Rational motives are of the following types:
 Monetary gain
 Efficiency in operation
 Dependability motive

3. Inherent and Learned motives:-

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 a. Inherent motives: These are the motives for the
satisfaction of which a consumer his best efforts and if
these motives are not satisfied he feels mental tension
b. Learned motives: These are the motive which are acquired
or learned by a consumer from the environment and
education. These motives are social status, social acceptance,
religious belief, fear, security etc.

4. Latent and Manifest motives:-

a. Latent motives: Motives that the consumer is unaware of or
unwilling to recognize, harder to identify require projective
techniques to identify.
b. Manifest motive: Motives that the consumer is aware of and
willing to express.

5. Psychological buying motives:-

Psychological factors include:

• Motives-A motive is an internal energizing force that
orients a person's activities toward satisfying a need or
achieving a goal. Actions are effected by a set of motives,
not just one. If marketers can identify motives then they
can better develop a marketing mix.

MASLOW hierarchy of needs!!

• Physiological
• Safety
• Love and Belonging

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 • Esteem
• Self Actualization
6. Environmental Buying Motives:-
The set of needs an individual experiences at a particular time
are often activated by specific cues in the environment. Without
these cues, the needs might remain dormant. For example, a
young college student may see a new, slick-looking cell phone
model with more features displayed in a store window. The
exposure may make him unhappy with his old cell phone and
cause him to experience tension that will be reduced only when
he buys himself the new cell phone model.

2.2 Literature Review

To understand your client, know their 'buying

motives'

As a salesperson you might think that people buy your product or

service because of the reasons you give them. On the contrary, people
buy not because of your reasons, not your company's reasons but for
their very own reasons (Chitwood 1998).

These reasons may not seem sensible, logical or even intelligent to us

but they seem that way to the prospect.

There are six different motives and they are not presented in any
special order nor are they any more important than any other.

They are:

• Desire for gain (usually financial)

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 • Fear of loss (again, usually financial)
• Comfort and convenience
• Security and protection
• Pride of ownership
• Satisfaction of emotion

I shall refer to these as the six buying motives. You may notice that all
these buying motives are emotional, not logical. People buy
emotionally, not logically.

People buy emotionally, then justify their decisions logically. Therefore

you must provide your prospects with logical as well as emotional
reasons why your product or service will benefit them. People have
strong, genuine, deeply felt emotions to start with.

When they buy anything, including things they buy on their own
initiative that no one is trying to "sell" them, they buy for emotional
reasons. You couldn't change that even if you wanted to.

Buying motives – Do you know why do they buy?

Buying motives often overlap. Suppose you just purchased a new

jacket. What was your dominant motive in making that purchase?
Maybe you bought the jacket for comfort; you expect it to keep you
warm. You might have bought it simply because it has a style or label
that you’re proud to wear or show your friends. (Chintan Bharwada)

Maybe you bought it because the colour makes your eyes look bluer, or
it makes you look taller and thinner, or in some way it makes you feel
good about yourself — it gives you emotional satisfaction. Maybe you
bought the jacket for all three reasons merged together: It’s
comfortable, you’re proud to own it, and it makes you feel good about
yourself.

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As a salesperson you might think that people buy your product or
service because of the reasons you give them. On the contrary, people
buy not because of your reasons, not your company’s reasons but for
their very own reasons.

These reasons may not seem sensible, logical or even intelligent to us

but they seem that way to the prospect.

Broadly speaking we can categories buying motives into Rational and

Emotional reasons.

Effects of Consumer Motives on Search Behavior

Using Internet Advertising. Kenneth C.C. Yang

Past studies on uses and gratifications theory suggested that consumer

motives affect how they will use media and media contents. Recent
advertising research has extended the theory to study the use of
Internet advertising. The current study explores the effects of
consumer motives on their search behaviour using Internet advertising.
The study employed a 2 by 2 between- subjects factorial experiment
design. A total of 120 subjects were assigned to an experiment
condition that contains an Internet advertisement varying by
advertising appeals (i.e., rational vs. emotional) and product
involvement levels (high vs. low). Consumer search behaviour
(measured by the depth, breadth, total amount of search),
demographics, and motives were collected by post-experiment
questionnaires. Because all three dependent variables measuring
search behaviour were conceptually related to each other, MANCOVA
procedures were employed to examine the moderating effects of
consumer motives on the dependent variables in four product
involvement-advertising appeal conditions. Results indicated that main
effects for product involvements and advertising appeals were
statistically significant. Univariate ANOVA also showed that advertising
appeals and product involvement levels influenced the total amount of

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search. Three-way interactions among advertising appeals, product
involvement levels, and information motive were also statistically
significant. Implications and future research directions are discussed.
(Kenneth C.C. Yang)

Demographics and patronage motives of supercenter

shoppers in the United States Jason M. Carpenter

This research provides supercenter retailers who operate within the

USA with specific knowledge of the patronage motives driving cross-
category shopping in supercenters (e.g. value, one-stop shopping
convenience, brands, product assortment) and identifies the
demographic characteristics of cross-category shoppers. The results
suggest marketing strategy implications for supercenter operators in
the US market. (Jason M. Carpenter)

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 3 Research Methodology

3.1Research Problem:-

The company wants to know more about the various factors

customers that motivate them to purchase Hyundai Cars. It's
very important for every marketer to know about the buying
motives of the customers because it helps them to design
proper policies and programs to attract customers. It also helps
them to determine their advertisement budget .

• Objective of study:-

 Primary Objective:-

I. To find out various factors that motivates customers to buy

Hyundai Cars.
 Secondary Objectives:-
I. To find out which is the most preferred source for awareness.
II. To find out which is the most preferred preference for buying
Hyundai Cars.
III. To find out who gives suggestion while buying Hyundai Cars.
IV. To know which class of customers is using Hyundai Cars.
V. To know at what level customers are influence by financing
facility.

3.2 Research Design:-

A research design is a logical and systematic plan prepared for

directing a research study. It is the program that guides the
investigator in the process of collecting, analyzing and
interpreting observations. It is a blue print for understanding

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 project & collection of data.

There are three types of research design.

I. Exploratory research design

II. Descriptive research design
III. Causal research design

Here, descriptive research (Cross-Sectional) design is used

for analyzing buying motive of Hyundai Cars. It is very simple and
more specific than exploratory study.

The descriptive study is a fact finding investigation with

adequate interpretation. The descriptive study aims at
identifying the various characteristics of a problem under study.
It reveals potential relationships between variables and
also setting the stage for further investigation later

3.3 DATA SOURCES:-

The researcher can gather the data & information are two types;-

1. Primary data
2. Secondary data

• Collection of Primary data:- Primary data are collected on

original information gathered for a specific purpose either
through personnel interviews/questionnaires etc.
• Collection of Secondary data: -:- Secondary data for the

Page | 34
 study were collected from the library reference, technical
and subject based books, journals and magazines, websites and
other previous studies. To know about details of HMIL data is
collected from magazine, web pages etc.

In this research project I am using Primary Data collection

through questionnaire.

3.4 RESEARCH INSTRUMENTS:-

In the marketing research it has main research instruments in

collection the primary data that is questionnaire.

The structured questionnaire is the research instrument to collect

the primary information for this marketing research projects. A
Questionnaire consists of a set of question presented to
respondent for their answers. Questions may be open ended or
close ended, it depends upon the Marketing Research.

3.5 Sampling Plan:-

a. Sample Unit:-
Who is to be surveyed? The marketing research must
define the target population that will be sampled. The
sampling unit for the project is taken from Navsari who are
the current users of Hyundai Cars.
Sample Size: -
How many customers should be surveyed large samples
can give the more reliable results then small samples yet it
is more costly than small samples. I have taken 150
samples in this project survey.
b. Sampling Method:-
Sampling is the process of selecting units (e.g., people,
organizations) from a population of interest so that by
studying the sample we may fairly generalize our results

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 back to the population from which they were chosen. In
short, the process of drawing sample from a population is
known as a sampling.
• Two types of sampling methods are:-
I. Probability Sampling
II. Nonprobability Sampling
For Present study Nonprobability sampling method is use and in
that convenience sampling technique is taken for use.
Nonprobability sampling it is not based on the theory of
probability. It does not provide a chance of selection each
population element. The merit of this type sampling is
simplicity, convenience and low cost.
Convenience sampling:- In this project convenience sampling
is to be used because it is less costly, time saving, and easier
than probability sampling.

3.6 Contact Method:-

Once the sampling plan has been determined it must be decide
how the respondent should be contacted i.e. by Mail, telephone,
personal, and on-line-interview.
In this research project I have use contact methods of personal
interview & telephone interview.

3.7 Limitation of Study

1. The study was confined to only Navsari. Therefore the results

cannot be generalized.
2. The result generated out of the study is completely dependent
on the nature of the response given by the customers.
3. Short span of time for gathering data was a limiting factor.

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 Despite these limitations, a sincere attempt has been made to
collect and analyze the data and present the information as
accurately as possible.

4. DATA ANALYSIS & INTERPRETATION

Table: 1
Following table shows the consumers who have previous
experience with Hyundai.

Responses No. of Respondent Percent (%)

No 116 77.3%
Yes 34 22.7%
Total 150 100.00%

Interpretation:-

From the above frequency distribution it is found that from 150

respondent 116 has no previous experience with Hyundai & remaining
34 had been experience Hyundai before also.

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 TABLE: 2
Following table shows the customers who travel daily (KMS)
by their Hyundai Car.

Daily Kilometers No. of Respondent Percent (%)

Less than 30 67 44.7%
31 to 60 58 38.7%
Above 61 25 16.7%
Total 150 100.00%

Interpretation: -

From the above frequency distribution table it is found that out of 150
respondent 44.7% customers travels less than 30 kilometers a day,
38.7% customers travels between 31 to 60 kilometers a day and
remaining 16.7% customers travels above 61 kilometers a day.

TABLE: 3

Page | 38
Following table shows from which sources they got aware
about Hyundai.

Sources No. of Responses Percentage(%

)
News paper Advertisement 67 21.82%
Experienced User 109 35.50%
Events & Promotion 31 10.10%
TV advertisement 86 28.01%
Online Source 14 4.56%
Total 307 100.00%

Interpreatation:-

As in this question customers has answer more than one option, so

total of 307 answers is got out of survey of 150 customer and from that
it is found that 35.50% of customes got aware from experience user
which is highest & 4.56% of customers got information from online
source which is lowest.

TABLE: 4

Following table show who gives suggestion for buying Hyundai

Suggestion No. of Respondent Percent (%)

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Family 72 48.00%
Friends & Relatives 58 38.67%
Colleagues 20 13.33%
Total 150 100.00%

Interpreatation:-

From the above frequency distribution table it is found that out of 150
customers 48.00% of customers got suggestion from their family for
buying Hyundai, 38.67% of customers got suggestion from their
Friends relatives for buying Hyundai 13.33% of customers got
suggestion from their Colleagues for buying Hyundai.

CHART: 1
Following Chart shows which factors mostly prefer by
customers

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Interpretation:-

The above table shows that most of the customers rates comfort
as the most important factor for purchasing a car, then comes
mileage, overall looks, driving experience, safety, price and extra
features respectively.

TABLE: 5

Following table shows relationship between daily kilometers

travel and Model Purchase.

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Null hypothesis (H0): Model Purchase is independent to daily
Travelling.

Alternative hypothesis (H1): Model Purchase is not independent to

daily Travelling.

Daily KM * Model Purchase Cross tabulation

Model Purchase Total
San i10 i20 Acce Ve Son
troX nt rn ata
ing a
Daily Less Count 23 22 11 10 1 0 67
KM than 30 % 67.6 59. 37. 35.7 4. .0% 44.7%
within % 5% 9% % 8
Model %
Purcha
se
31 to 60 Count 10 13 14 9 12 0 58
% 29.4 35. 48. 32.1 57 .0% 38.7%
within % 1% 3% % .1
Model %
Purcha
se
Above Count 1 2 4 9 8 1 25
% 2.9 5.4 13. 32.1 38 100 16.7%
61
within % % 8% % .1 .0%
Model %
Purcha
se
Total Count 34 37 29 28 21 1 150
% 100. 100 100 100. 10 100 100.0
within 0% .0% .0% 0% 0. .0% %
Model 0
Purcha %
se

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
a
Pearson Chi-Square 39.455 10 .000
N of Valid Cases 150
a. 6 cells (33.3%) have expected count less than 5. The minimum expected count is .17.

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 Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .456 .000
N of Valid Cases 150

Interpretation:-

Here, Chi-square result shows that the null hypothesis Ho is rejected.

So model purchase is dependent .Here there is moderate effect of daily
kilometers on model purchase as can seen from contingency
coefficient value .456.

TABLE: 6

Following table shows which other factors influence for buying

Hyundai.

Factor Influencing more No. of Percentag

Responses e
Nearby Showroom & 56 20.14%
Service Centre
Availability of spares 24 8.63%
Authorization of service 26 9.35%
centre
Page | 43
 Availability of Models & 63 22.66%
Variants
Product performance 109 39.21%
Total 278 100.00%

Interpreatation:-

As in this question customers has answer more than one option, so

total of 278 answers is got out of survey of 150 customer and from that
it is found that 39.21% customers were influenced by product
performance after that availability of models & variants 22.66%,
nearbyshowroom 20.14%, authorization of service centre 9.35% & last
availability of spares 8.63% respectively.

TABLE: 7

Following table shows the opinion of customers regarding the

brand image of Hyundai

Responses No. of Percentage (%)

Respondent
No 13 8.7%
Yes 137 91.3%
Total 150 100.0%

Interpretation: -

From the above frequency distribution table it is found out of 150

customers 91.3% of customers were influenced by brand image of

Page | 44
Hyundai while making their buying decision of Hyundai Cars. 8.7%
customers were not influenced by the brand image of Hyundai.

TABLE: 8

Following table shows how far celebrity endorsement influence

on buying decision of customers.

Level of Influence No. of Percentag

Respondent e (%)
High Influenced 16 10.7%
Normal Influenced 30 20.0%
Neutral 22 14.7%
Less Influenced 13 8.7%
Not Influenced 69 46.0%
Total 150 100.0%

Interpretation:-

Page | 45
The above frequency table shows that 10.7 % customers were highly
influenced and 20% were normal influenced by the celebrity
advertisements and 46.0% customers were not influenced towards
celebrity endorsement while making buying decision.

TABLE: 9

Following table shows how far financing facility influence on

buying decision of customers.

Level of Influence No. of Percentag

Respondent e (%)
High influenced 43 28.7%
Normal Influenced 54 36.0%
Neutral 20 13.3%
Less Influenced 13 8.7%
Not Influenced 20 13.3%
Total 150 100.0%

Interpretation:-

Page | 46
The above frequency table shows that 28.7 % customers were highly
influenced and 36.0% were normal influenced by the financing facility
and 13.3% customers were not influenced towards financing facility
while making buying decision.

TABLE: 10

Following table shows past experience with other Hyundai

service station.

Past No .of Percentage

Experienc Respondent (%)
e
No 96 64.0%
Good 21 14.0%

Page | 47
 Average 32 21.3%
Poor 1 0.7%
Total 150 100.0%

Interpretation:

The above frequency table shows that 64.0% customers has no

previous experience with other Hyundai service station, 14% has good
experience with other Hyundai service station & 21.3% has average
experience with other Hyundai Service Station.

TABLE: 11

Following table shows gender wise buying of Hyundai Cars.

Gender No. of Percentage

Respondent (%)
Male 142 94.7%
Female 8 5.3%
Total 150 100.0%

Interpretation:-

Page | 48
The above frequency distribution table shows that 94.7% of male buys
Hyundai Cars and 5.35% of female buys Hyundai Cars.

TABLE: 12

Following table shows the different age class of customers and

its influence on buying decision of Hyundai Cars.

Age Group No. of Percentage

Respondent (%)
21 – 30 42 28.0%
31 – 40 67 44.7%
41 – 50 27 18.0%
51 – 60 11 7.3%
61 – 70 3 2.0%
Total 150 100.0%

Interpretation:-

The above Frequency table shows that majority 44.7% of customers

falling under the age group of 31-40.The next major category was 21-
30 (28%).the age group 41-50, 51-60 and 61-70 were 3rd , 4th And 5th
respectively.

TABLE: 13

Following table shows the different occupation of customers

and its influence on buying decision of Hyundai Cars.

Occupation No. of Percentage (%)

Responde
nt
Service/Job 39 26.0%
Professional 21 14.0%
Retired 4 2.7%
Businessman 82 54.7%
Housewife 4 2.7%
Total 150 100.0%

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Interpretation:-

From the above frequency distribution it is found that the 54.7%

customers were Businessman, 26% were service , 14% were
professional and 4% were retried and housewife respectively.

TABLE: 14

Following table shows the customers form different income

groups.

Family Annual Frequency Percentage

Income(RS) (%)
100,001 - 300,000 54 36.0%
300,001 - 600,000 72 48.0%
600,001 - 900,000 20 13.3%
Above 900,001 4 2.7%
Total 150 100.0%

Interpretation:-

From the above frequency distribution table it is found that majority of

customers fall in group of 300,001 – 600,000 i.e. 48% and after that
customers fall in group of 100,001 -300,000 i.e. 36 % and then 600,001
– 900,000 and above 900,001 respectively.

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 Table 15

Following table shows relationship between Family annual

income and Model Purchase.

Null hypothesis (H0): Model Purchase is independent to Family

annual Income.

Alternative hypothesis (H1): Model Purchase is not independent to

Family annual income.

Page | 51
 Family annual Income * Model Purchase Cross tabulation
Model Purchase
SantroXing i10 i20 Accent Verna Sonata Total
Incom 100,001 Count 23 19 6 6 0 0 54
e - % within 67.6% 51.4% 20.7% 21.4% .0% .0% 36.0%

300,000 Model
Purchase
300,001 Count 10 14 21 15 12 0 72
- % within 29.4% 37.8% 72.4% 53.6% 57.1% .0% 48.0%

600,000 Model
Purchase
600,001 Count 1 3 2 6 8 0 20
- % within 2.9% 8.1% 6.9% 21.4% 38.1% .0% 13.3%

900,000 Model
Purchase
Above Count 0 1 0 1 1 1 4
900,001 % within .0% 2.7% .0% 3.6% 4.8% 100.0% 2.7%
Model
Purchase
Total Count 34 37 29 28 21 1 150
% within 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Model
Purchase

Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 84.430a 15 .000
N of Valid Cases 150
a. 14 cells (58.3%) have expected count less than 5. The minimum
expected count is .03.

Symmetric Measures
Value Approx. Sig.
Nominal by Nominal Contingency Coefficient .600 .000
N of Valid Cases 150

Interpretation:-

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Here, Chi-square result shows that the null hypothesis Ho is rejected.
So model purchase is dependent on family annual income. Here there
is moderate effect of Family Annual Income on model purchase as can
seen from contingency coefficient value .600

5. FINDINGS

The study finds that majority of the customers were highly prefer
comfort of the car. In the case of awareness & getting information
about Hyundai it is founds that experience users is having high
influence on customers compared to other sources.

Following are the other important findings of the study:-

 It is found that majority of customers fall between age group of

31 – 40.
 It is found that of the users of Hyundai Cars is Businessman,
Service/job & Professionals
 Most of the customers of Hyundai fall in family income group of
300,001 – 600,000(48.00%).
 Most of the customers of Hyundai are Male (94.70%)

 It is found that 22.70% customers have experienced Hyundai

before & they had chosen same company again.

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 From the study it is found that majority of the customers travel
less than 30 Kms a day i.e. 44.70%.
 It is very important note that experienced users become an
important source for getting aware about Hyundai with 35.50%
and TV advertisement at second with 28.10%.
 Majority of suggestion for buying Hyundai car is given by family
48.00%.
 Majority of Customers has preferred Comfort, Mileage & Driving
experience.
 Product performance is the most influencing factor for buying
Hyundai car.39.10% customers has chosen product performance
as most influencing factor.
 Most of the customer’s (.91.30%) were influenced by the brand
image of Hyundai.
 Majority of the customers were not influenced (46.00%) by the
celebrity endorsement.
 Majority of the customers were normally influenced (36.00%) by
the Financing facility.
 Majority of the customers has no experience (64.00%) with other
Hyundai Service Station and 14.00% has average experience.
 It is found in Chi-Square results that there is association of daily
travelling & Family annual income on purchase of models.
 There is moderate association of daily travelling kilometers on
model purchase as seen in contingency coefficient value 0.456.
 There is moderate association of family annual income on model
purchase as seen in contingency coefficient value 0.600.
 Majority of customers recommend Hyundai Cars to others
because of Engine technology, Driving Experience, Mileage,
Quality of Cars etc.

Page | 54
 6. CONCLUSION

• The project entitled ―on Consumer buying motives of Hyundai

cars with special reference to Navjivan Cars Pvt. Ltd i.e. Navjivan
Hyundai, Navsari.
• These findings will help the company to know which factors
motives customers for Buying Hyundai Car.
• It also helps to decide proper marketing strategies.

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 7. RECOMMENDATIONS

• The company can try to improve the service quality of Hyundai

Cars.
• The Company can improve availability of spares & parts on time.
• The Company can provide easy financing facility by giving them
a counter in their showroom.
• The company can cut the cost on celebrity endorsement because
study shows that customers are not influenced by celebrity
endorsement.
• The Company can give more importance to extra features
includes basic accessories, easy insurance & vehicle registration.
• The Company can adopt print media as a tool for source of
awareness, because it is cheap compare to TV advertisement.

Page | 56
 8. Bibliography:-

Books:-

• Donald R.Cooper and Pamela S. Schindler. (June-2006)

Ninth Edition, Business Research Methods, Tata McGraw
Hill Publishing, NewDelhi.
• Leon G. Schiffman and Leslie Lazar Kanuk (Feb 2006).
Ninth Edition, Consumer Behaviour, Prentice Hall, India.
• Philip Kotler, Lane Keller, Abraham Koshy, Mithileshwar
Jha (2008).Thirteen Edition, Marketing Management,
Pearson Education, India.

Journals and Articles:-

• Roy Chitwood, Puget Sound Business Journal.

• Chintan Bharwada Buying motives – Do you know why do they buy?
• Kenneth C.C. Yang, Effects of Consumer Motives on Search
Behavior Using Internet Advertising. University of Texas
• Demographics and patronage motives. University of South
Carolina,

Websites:-

Page | 57
• http://www.hyundai.com/in/en/main/
• http://www.navjivanmotors.com
• http://www.carazoo.com/.../Top-10-Car-Makers-of-the-World-in-
2009
• http://www.siamindia.com/

9. APPENDIX

QUESTIONNAIRE

INSTITUTE NAME: SHRIMAD RAJCHANDRA INSTITUTE OF

MANAGEMENT & COMPUTER APPLICATION

LOCATION: GOPAL VIDYANAGAR, MALIBA CAMPUS, BARDOLI

Dear Sir/madam, My name is ROHAN P. DESAI & MBA student from

SHRIMAD RAJCHANDRA INSTITUTE OF MANAGEMENT &
COMPUTER APPLICATION (SRIMCA) Bardoli and doing a project on
CONSUMER BUYING MOTIVES OF HYUNDAI CARS, CONDUCTED AT
NAVJIVAN CARS PVT.LTD, NAVSARI. Your response is highly valuable. I
would be grateful if you could help me by filling it up honestly and
legitimately. I assure that any information provided will be solely used for
academic purpose and will be kept confidential. No answers are right or
wrong; give the answers which you feel are the best.

We would be thankful if you share some of your valuable opinion

regarding the following questionnaire.

1. Have you been using any cars of Hyundai before?

Yes No

If yes, specify it: - ___________________

2. What is daily travelling Kilometers per day?

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 Less than 30 31 to 60 Above 61

3. From which sources you got aware about HYUNDAI?

Newspaper advertisement Experienced user

Events & Promotion TV Advertisement Online Source

4. Who offers you suggestion for buying HYUNDAI?

Family Friends & relatives Colleagues Others

If others, then specify_________________________

5. Rank in the order of your preference to buy a HYUNDAI car (in the order 1-7).

Driving Experience Comfort Mileage Price

Overall Looks safety Extra Features

6. Which model you have purchased as per above mention parameter that you have
given a rank?

Santro Xing i10 i20 Accent

Verna Sonata Other ____________________

7. What other factor influence more to buy HYUNDAI Car?

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 Nearby Showroom & Service Centre Availability of Spares

Authorization of service centre Availability of models & Variant

Product Performance

8. Does brand image of HYUNDAI influence your buying decision?

Yes No

9. How far celebrity endorsements influence your buying decision?

High Influenced Normal Influenced Neutral

Less Influenced Not Influenced

10.Does financing facility influence your buying decision?

High Influenced Normal Influenced Neutral

Less Influenced Not Influenced

11.Past experience with other HYUNDAI service station, if any?

Good Average Poor

12.Why would you recommend HYUNDAI Cars to others?

Specify, _____________________________________________

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________________________________________________

________________________________________________

Demographic detail:

Name ________________________________________

Location ________________________________________

________________________________________

Occupation ________________________________________

Age ______________

Gender ______________

Contact No. ______________

Family Annual Income 100,001 – 300,000 300,001 – 600,000

600,001 – 900,000 Above 900,001

Thanks for your Co-operation

Page | 61
Page | 62