A STUDY ON CONSUMER BEHAIOUR ON CARS (WITH SPECIAL REFERENCE TO LAKSHMI HYUNDAI)

CHAPTER I

INTRODUCTION

INTRODUCTION CONSUMER BEHAVIOUR:

The term consumer behavior refers to the behavior that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. To study the consumer behavior they will consider what they buy, when they buy, why they buy, where they buy, how often they buy and how often they use it. What kinds of consumers think of insurance? What feature do they look for? What feature do they seek, Answers to these questions can be found through consumer research and design modification promotional strategy for example, couple of experience dissatisfaction with their choose of an automobile, perhaps because of continuous service problems. They may communicate their dissatisfaction to friends and in turn influence their friends future model again prescribing their own future selection decisions. Each of these consequences of consumer post purchase dissatisfaction has significant ramifications for automobile marketers, who have built post purchase strategies into their promotional campaign. Consumer behavior developed as a separate marketing discipline. Marketers had long rated that consumers did not always act or react marketing theory would suggest. The size of the consumer market in this country was vast and constantly expanding. Billions of dollars were spent on goods and services by tens of millions of people. Consumer preference was changing under highly diversified conditions. Even in industrial markets, where needs for goods and service were always more homogeneous than in consumer market. Buyers exhibiting diversified preferences and less predictable purchase behavior.

Objectives of the study:

To understand the psychology and behavior of customers towards purchase of Hyundai cars. To know the various forces that drives the consumer towards the Hyundai cars. To know the most preferred car of the company. To know the level of the satisfaction of consumer towards services of the Hyundai cars. To know the most effective media for promoting the product. To know the various problems that generally encountered by the customers of Hyundai. To suggest some measures to improve the efficiency and performance of services offered by Hyundai.

Need and Scope of the Study:

Under the Title Consumer behavior, in Hyderabad and Secundrabad city, The Study mainly concentrates on around awareness, opinion and level of satisfaction of the products. The study mainly concentrates on consumer behavior. The study also tries to find our level satisfaction. The impact of customer is analyzed so as to find out the satisfaction towards Hyundai Verna.

Methods of Sampling:
There are many methods of sampling. The choice of method will be determined by the purpose of sampling. The various methods can be grouped under two groups.

1. Random Sampling Method: (Probability Sampling): a) Simple or unrestricted random sampling 2. Non-Random Sampling (Non probability sampling): a) Convenience sampling 1. Random Sampling: A random sample is one where each item hi the universe has an equal chance of known opportunity of being selected. According to Dr.Yates, Every member of a parent population has had equal chances of being included. According to Harper, A random sample is a sample selected in such a way that every item in the population has an equal chance of being included. a) Simple random sampling: It is a technique in which sample is so drawn that each and very unit in the population has an equal and independent chance of being included in the sample. Several methods have been adopted for random selection of the sample.

2) Non-random sampling method: a) Convenience or Chunk Sampling:

Chunk is a convenient slice of a population which is commonly referred to as an obtained by selecting convenient population units. i) It is suitable when the universe is not clearly defined. ii) Sample unit is clear. iii) Complete source list is not available.

A sample obtained from automobile registration, telephone directories, etc., is a convenience sample. The result of this sampling cannot be representative. They are unsatisfactory. They are biased. But they are used for pilot studies. In this research the researcher took the convenience sampling technique for collect the survey. In this method, the sampling units are choosing primarily in accordance with the investigators convenience.

Methodology:
The study is done to Assess the potential for an e-learning course. The research is necessary because there is urgent need for an alternative to present system of training. The respondents are H.R.Managers because they are the persons who play important role in recruiting the sales people. The data is collected through questionnaire. It consists of both open and closed ended questions. The questionnaire is prepared in such a way that it meets the objectives of the survey. By analyzing the questionnaire, we get the opinions of the respondents. Here the collected is primary in nature.

Methods of data collection

1. Primary data. 2. Secondary data

Primary data:
The primary data are those, which are collected fresh and for the first time and thus happen to be original in character. Primary data are collected through Mail survey and direct interviews.

Mail survey:
The questionnaire is send to the employee through the mail and the required data are collected for the research work.

Direct interviews:
Some of employees have not responded to the questionnaire, so for those employees, direct interviews have been conducted to get the information required

Secondary data:
Secondary data are those, which have already been collected by some one and which have already been passed through statistical process. The secondary data have been collected from following ways.

Books:

The information, which are required for the review of literature and research methodology and sampling technique.

Journals:
Journals are used for finding out new ideas and information required for the research work.

Internet:
Internet has been used to get more information for the research from various web sites, to explore new ideas to be implemented in the statistical tools and review of literature.

Magazines:
Magazines have been used to get new method for evaluating the training needs.

RESEARCH PROCESS:
While doing the research consider the methodology and techniques which is appropriated to the research process. Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps.

1. FORMULATING RESEARCH PROBLEM;

There are two types of research problems viz, those, which relate to slates of nature and those, which relate to relationships between variables. At the very out set the researcher must single out problem he want to study i.e., he must decide the general area of interest or aspect of a subject - matter that he would lie to Enquirer into initially the problem may be stated in a broad general way and than the ambiguities. If any relating to the problem be resolved. Then, the feasibility of a particular solution has to be considered before a working formulating of the problem can be setup. The formulation of general topic into of specific research problem, thus, constitutes the first step in a scientific inquiry. Essentially two steps are involved in formulating the research problem, viz., understanding the problem thoroughly and rephrasing the same into meaningful terms form an analytical point of view.

2. EXTENSIVE LITERATURE SURVEY:

Once the problem is formulated a brief summary should be written down .at this juncture the researcher should undertake extensive literature survey connector with the problem for this purpose, the abstracting and indexing journal and published or unpublished bibliographic are the first place to go to

3. PREPARING RESEARCH DESIGN:

The research problems having been formulated in clear cut terms the researcher will be required to prepare a research design i.e., he will have to state the conceptual structure within which research

would be conducted. The preparation of such a design facilitates research to be as efficient as possible yielding maximum information. The function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time are money. Research purpose may be grouped into four categories viz., 1) exploration, 2) description, 3) diagnosis, 4) experimentation.

4. DETERMINING SAMPLE DESIGN:

All the items under consideration in any field to inquiry constitute a universe or population a complete enumeration of all the items in the population is known as a census inquiry. It can be presumed that in such an inquiry when all items are covered no element of chance is left and highest accuracy is obtained. But in practice this may not be true even the slightest element of bias in such an inquiry will get larger and larger as a number of observations increases more over there is no way of checking the element at bias or its extent except through a survey or use of sample checks.

5. COLLECTION OF DATA;
In dealing with any real life problem if is often found that data at hand are inadequate, and hence, it becomes necessary to collect date that are appropriate. There are several works of collecting the appropriate data, which differ considerably in context at money, consist, time and other resources at the disposal of the researcher. Primary data can is collected either through experiment or through survey. If the researcher conducts an experiment, he observes some quantitative measurements of the data with the help of which he examines the contained in hypotheses.

6. EXCUTION OF THE PROJECT;

Execution of the project is a very important step in the research process. If the execution of the project proceeds on correct lines, the data to be collected would be adequate and dependable. The researcher should see the project is executed in a systematic manner and in time. If the survey is to be conducted by means if structured questionnaires, data can be readily machine processed. In such a situation questions as well as the possible answers may be coded. If the data are to be collected through interviewers arrangements should be made for proper selection and training to interviewers.

7. ANALYSIS OF DATA:
After the data have been collected, the researcher turns to the task of analyzing them the analysis of data requires a number of closely related operations such as establishment of categories, the applications of these categories to raw data through clothing tabulation and then drawing statistical inferences .the unwieldy data should necessarily be condensed into a few manageable groups and tables

for further analysis. Thus, researcher should classify the raw data into same purposeful and usable categories. Coding operation is usually done at this stage through which the categories of data are transformed into symbols that may be tabulated and counted. Editing is the procedure that improves the quality of the data for coding tabulation is a part of the technical procedure where in the classified data are put in the form of tables.

8. GENERALIZATION AND PRESENTATION:

If a hypothesis is tested and upheld several times, it may be possible for the researches to arrive at generalization i.e., to build a theory. As a matter of fact, the real value of research lies in its ability to arrive at certain generalizations. If the researcher had no hypothesis to start with, he height seeds to explain his findings on the basis as some theory. It is known as PRESENTATION the process of PRESENTATION may quite often trigger off new questions when inurn May lead to further research.

9. PREPARATION OF THE REPORT;

Finally the research has to prepare the report as what had been done by him. Writing as report must be done with a great care. The layout of the reject should be 1) The preliminary pages, 2) The main text, 3) T he end matter. 1) Introduction. 2) Summary of findings. 3) Main report. 4) Conclusion. At the end of the report, appendices should be enlisted in respect of all technical data. Bibliography i.e., list at books, journals, reports etc., Report should be written in a concise and objective style in simple language avoiding average expressions such as it seems, there may be and the like. Charts and illustrations in the main report should be used only if they present the information more clearly and forcibly calculate confidence limits must be mentioned and the various constraints experienced in conducting research operations may as well be states.

Limitations:
The number of respondents level is only 100, so there is no scope to understand the wide perception about Hyundai cars. The survey done is limited only to the Hyderabad region, so there is limited scope in understanding the preference of choice of other areas. The Preference of people may be subjected to other conditions which are not included in the project. The time limit which is taken to complete the project is very limited, that is only 6 weeks, so there is limited scope for extensive study. The money constraint also matters in the survey process. Some of the customers are biased and may not respond positively.

CHAPTER II

PROFILE OF THE INDUSTRY

EVOLUTION OF INDIAN CAR INDUSTRY It was in 1898 that the first motorcar rode down Indias roads From then till the First World War, about 4000 cars were directly imported to India from foreign manufacture. The Hindustan motors (HM) was set up in 1942 and in 1944, premier automobile Ltd., (PAL) was establishment to manufacture automobiles in India. However, it was PAL who product the first car in India in 1946, as HM concerned on auto component and could produce their first car only in 1949. In 1952 m the GOI set up a tariff commission to devise regulations to develop an indigenous automobile industry in the country. After the commission submitted its recommendations, the GOI asked assembly plants, which did not have plans to set up manufacturing facilities, to shut operations. As a result general motors, ford and other assemblers closed operations in the country. The year was 1954 and these decisions of government market a turning point of vehicle each manufacture should make. Therefore, each product was safely coconut in its own segment with no fears of any impending competition. Also, no new entrant was allowed even though they had plans of full-fledged manufacturing program. The restrictive set of polices was chiefly aimed at building and indigenous auto industry. How ever, there striations on the foreign collaborations led to limitations on import of technology through technical agreements. Simply put the three decades following the establishment of the passenger car industry in India and leading up to early 1980s, proved to be the dark ages for the customer, as his choice through out his period was limited to two models viz. Ambassador and Padmini. It was only 1985, after the entry of MarutiUdyogi that the car markers were given a free hand to fix the price of cars thus effectively abolishing all controls relating to the pricing of the end product. In the early 80s a series of liberal policy was changes were announced marking another turning point for the automobile industry. The GOI entered the car business, with a 74% stakes in MarutiUdyogi Ltd., (MUL) the joint venture with Suzuki motors Ltd of Japan. In 1985 the GOI announced its famous broad banding policy which gave new licences to broad groups of automotive products like two and four wheeled vehicle. Though a liberal move, the licensing system was still very much intact MUL introduced maruti 500 in 1983 providing a complete face lift to the Indian car industry. The car was launched as a people car with a price tag of rs.40,000. This changed the industrys provide dramatically. Maruti 500 was well accepted by middle income families in the country and its sales

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increased from 1200units in FY84 to more than 20,000 units in FY2001, this figure came down to 189, 184 units, due to rising competition from Hyundais, Santo, telcos indicia and Daewoos matiz.. MUL extended its product rang to include vans, multi-utility vehicles (MUVS) and mid-sized cars. The company has single handedly driven the sales of cars in the country from 45,000 in FY84 to 409,951. Cars FY 2001, concerning around 76.6% market share. With increasing competition from new entrants, this market share has plummeted to almost 62% in FY2001. The de-licensing of auto industry in 1993 open the gates to a virtual food of international auto makers in to the country with an idea to tap the large population base of 950mm people. Also the lifting of quantitative restrictions on imports by the recent policy is expected to add up to the flurry of foreign cars in to the country. Many companies have entered the car-manufacturing sector, to tap the middle and premium end of cars in to the country. The new entrants are Daewoo (matiz), Telco (indica) and Hyundai(santro) in upper hand of economy car market. GM ford, Peugeot, Mitsubishi, Honda and fait have entered the midsized car segment and Mecedes-benz is in the premium end of the market. Car manufactures like Malaysia based proton are also in line to hit the Indian ramp.

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Over View of the company Profile

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company (HMC). HMIL is the largest passenger car exporter and the second largest car manufacturer in India. It currently markets eight passenger car models across segments -- in the A2 segment it has the Eon, Santro, i10 and the i20, in the A3 segment the Accent and the Verna, in the A5 segment Sonata and in the SUV segment the Santa Fe. HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of advanced production, quality and testing capabilities. HMIL forms a critical part of HMC's global export hub, it touched 1.5 million in exports in March 2012. It currently exports to more than 120 countries across EU, Africa, Middle East, Latin America and the Asia Pacific. HMIL has been India's number one exporter for seven years in a row. To cater to rising demand the company commissioned its second plant in February 2008 having an installed capacity of 330,000 units per annum. To support its growth and expansion plans HMIL currently has 346 dealers and around 800 service points across India. In its commitment to provide customers with cutting-edge global technology, HMIL set up a modern multimillion dollar R&D facility in Hyderabad. The R&D centre endeavors to be a center of excellence in automobile engineering.

International Operations
Hyundai was started in 1967 when the founders decided to assemble someone elses vehicles. The founder developed his own vehicles and succeeding in exporting vehicles to other countries. Even though Hyundai started in Korea in 1967, they have expanded their production facilities worldwide. There are 50,000 strategists, engineers, designers, marketing, PR and sales specialists, line workers distributors and dealers in 193 countries. Hyundai sources very few components from India but is on the verge of increasing that level. However, the company wants India to improve the quality of its products. In order to make India a global hub, the company needs consistent quality. India is Hyundais second largest market in the world. In terms of worldwide sales, the US, Chinese and Indian marketing are doing well. The company does not plan to introduce commercial vehicles in India. India is the worldwide hub for small cars of Hyundai, the larger exporter of cars from India. Hyundai has also developed a model in India for sales.

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Hyundai has a production plant in Tamil Nadu which will double its production capacity to 600,000 units per annum. Hyundai will grab a large share of the car market by turning its operations in India and China into key design, manufacturing, and export hubs for its entire global operations.

Top Exports
Hyundai Motor India Ltd. Exports is the largest car exporter from India, contributing to 66 per cent of the total passenger exports. The company exported 247,102 cars in 2010 to 110 countries. The cars that it exported include the Santro, i10, i20 and Accent. The exports grew by 10.7 per cent over the previous year. Hyundai Motor India Limited has a strong export market, which includes European Union, Africa, Middle East, Latin America, Asia and Australia. By 2010, Hyundai had exported 10 lakh cars. Hyundai Motor India Limited began exporting cars in 1999 when it shipped 20 Santros to Nepal. By 2004, the company exported 1,00,000 cars, by 2005, it exported 2,00,000 cars and by 2006, it had exported 5,00,000 cars. Apart from achieving milestones in terms of numbers, in terms of specific cars and countries, Hyundai exported the first Getz on March 26, 2007, according to the company website. Additionally, its first shipment to the United Kingdom was on November 29, 2005, to Latin America was on March 13, 2003, to Algeria on July 21, 2000.

Top Future Plans

Hyundai plans to launch not one but six cars in the next three years. The company plans to launch two cars per year for the next few years. Among the six cars that are going to be launched, Hyundai ElantraAvante will be the first car to hit the road. The other cars that the company plans to launch is the Hyundai i10, the i20 and the i30 really soon. The company might also launch the Verna, another variant of cars. The i20 mini MPV is made by Hyundais European design center. It will have a unique exterior and interior look to differentiate it from its Kia counterpart. Two other cars that will hit the road will be the Hyundai Sonata or the i40. The wagon model will be introduced first followed by the sedan variant. It will have powertrain technology and diesel and gasoline engines. The car will have a 2.4 litre Theta engine. Finally the most impressive car of the year for 2011, is the Hyundai Veloster. Its a two door coupe that replaces the Hyundai Coupe/Tiburon. The company also plans to expand to the domestic market by establishing more dealerships in India.

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MISSION & VISION

Hyundai released its Vision 2020 to establish the firm as the global leader in the automobile market. The company focuses on key vision strategies:

AUTOMOTIVE VISION
To become a trusted lifetime partner of our customers, we will bring a new perspective to automobiles through innovative mobility solutions based on human-centric, eco-friendly technologies and services.

STEEL VISION
As an eco-friendly, resource-circulating company, we will lead a new era in the steel industry by providing high value-added products and services and realizing world's best competitiveness based on cooperative relations with our stakeholders.

CONSTRUCTION VISION
As a global leading provider of high-value engineering solutions, we will create the foundation for a better life through cross-business synergy and convergence with future technologies. Hyundai focuses on five main values: Customer, Challenge, Collaboration, People and Globality. Providing customers top service will be at the top of their agenda. The company will venture into new areas and not remain traditional. The company will have a spirit of collaboration. People will be respected and valued. The company is not limited to country-centric areas but will be known in the global arena.

Awards & Recognition

2012 2011 New Fluidic Verna wins the Readers Choice Mid-size Car of the Year at Top Gear Awards 2011 Santa Fe awarded 'Import SUV of the Year' by CNBC TV18 Overdrive Awards 2011 Santa Fe awarded 'SUV of the Year' by Business Standard Motoring Awards 2011 Verna gets the 'Sedan Of The Year 2011' Golden Steering Award HMIL gets the 'Automotive Company Of the Year 2011' Golden Steering Award Eon gets the 'Entry-Level Hatchback Of The Year' at ET Zigwheels Awards 2011 HMIL gets the 'Best Car Manufacturer 2012' award by Motor Vikatan magazine

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 2010

Santa Fe awarded 'SUV of the Year' by Car India Awards 2011 Santa Fe awarded 'Full size SUV of the Year' by NDTV Car & Bike Awards 2011

HMIL receives the 'Niryat Shree Gold and Silver Trophies for 2008 -09 by the Federation of Indian Export Organisations (FIEO). The Gold Trophy was received in the Engineering and Metallurgical products Non-MSME category and the Silver Trophy in the Highest Foreign Exchange Earner category.

HMIL received the 'All India Award for Export Excellence 2008-09' by the Engineering Export Promotion Council (EEPC). HMIL was awarded the Gold Trophy in the Large Enterprise category.

HMIL gets CSR award from Tamil Nadu Deputy Chief Minister Mr. M. K. Stalin Hyundai i10 wins 'Small Family Favourite Car Award' by CarWale.com Hyundai i20 wins the Viewers Choice Award at the Overdrive CNBC TV 18 Awards 2010. Hyundai Motor India Ltd wins the award for Customer Service at the Apollo Auto India Best Brand Awards 2010. Hyundai i20 wins the Design of the Year award at the NDTV Profit Car & Bike Awards 2010. Hyundai i10 brand ambassador Shahrukh Khan wins the Brand Ambassador of the Year award at NDTV Profit Car & Bike Awards 2010.

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CHAPTER III

FRAMEWORK OF MARKETING

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MARKETING
Marketing is "The process of planning and executing the pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy individual and organizational goals." Another definition, perhaps simpler and more universal, is The process of moving people closer to making a decision to purchase, use, follow, refer, upload, download, obey, reject, conform, become complacent to another person's, society's or organization's value. Simply, if it doesn't facilitate a "sale" then it's not marketing. Types of Markets The word market originally meant the place where the exchange between seller and buyer took place. Today we speak of a market as either a region where goods are sold and bought or particular types of buyers. When strategizing specialists in marketing comment about markets they are usually referring to the different groups of people and/or organizations. The four major market groups are 1) Consumer, 2) Business to Business, 3) Institutional, and 4) Reseller.Branding refers to the sum total of your company's value-proposition:Products, Services, People, Advertising, Positioning, Culture, and Partner Relationships. Product, Price, Promotion, and Place:In popular usage, "Marketing" is the promotion of products, especially advertising and branding. However, in professional usage the term has a wider meaning that recognizes that marketing is customer centered. Products are often developed to meet the desires of groups of customers or even, in some cases, for specific customers. McCarthy divided marketing into four general sets of activities. His typology has become so universally recognized that his four activity sets, the Four Ps, have passed into the language. The Four Ps are:

Product: The Product management and Product marketing aspects of marketing deal with the specifications of the actual good or service, and how it relates to the end-user's needs and wants.

Pricing: This refers to the process of setting a price for a product, including discounts.

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Promotion: This includes advertising, sales promotion, publicity, and personal selling, and refers to the various methods of promoting the product, brand, or company.

Place or Distribution refers to how the product gets to the customer; for example, point of sale placement or retailing. This fourth P has also sometimes been called Place, referring to where a product or service is sold, e.g. in which geographic region or industry, to which segment (young adults, families, business people, women, men, etc.).

These four elements are often referred to as the marketing mix. A marketer can use these variables to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services. Industrial or b2b marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions. Seven P's in addition to product, price, promotion, and place, they included people, physical evidence, and process. "People" was added, to recognize the importance of the human element in all aspects of marketing. They added "process" to reflect the fact that services, unlike physical products, are experienced as a process at the time that they are purchased. "Physical evidence" or "peripheral clues" reflects the physical surroundings associated with a service encounter or retail location. Other marketing theorists include "partners" as a mix variable because of the growing importance of collaborative channel relationships. Many transformations are accomplished by converting Product into "customer solution", Price into "cost to the customer", Place into "convenience", and Promotion into "communication". These are four C's. Shortly after developing the four P's, twelve decision variables were taken by well known authors. They were product planning, pricing, branding, channels of distribution, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding. The marketing variables into two categories: the offering, and process variables. The "offering" consists of the product, service, packaging, brand, and price. The "process" or "method" variables included

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advertising, promotion, sales promotion, personal selling, publicity, distribution channels, marketing research, strategy formation, and new product development.

CONSUMER BEHAVIOUR:
The term consumer behavior refers to the behavior that consumers display in searching for purchasing, using, evaluating and disposing of products and services that they expect will satisfy their needs. To study the consumer behavior they will consider what they buy, when they buy, why they buy, where they buy, how often they buy and how often they use it. What kinds of consumers think of insurance? What feature do they look for? What feature do they seek, Answers to these questions can be found through consumer research and design modification promotional strategy for example, couple of experience dissatisfaction with their choose of an automobile, perhaps because of continuous service problems. They may communicate their dissatisfaction to friends and in turn influence their friends future model again prescribing their own future selection decisions. Each of these consequences of consumer post purchase dissatisfaction has significant ramifications for automobile marketers, who have built post purchase strategies into their promotional campaign. Consumer behavior developed as a separate marketing discipline. Marketers had long rated that consumers did not always act or react marketing theory would suggest. The size of the consumer market in this country was vast and constantly expanding. Billions of dollars were spent on goods and services by tens of millions of people. Consumer preference was changing under highly diversified conditions. Even in industrial markets, where needs for goods and service were always more homogeneous than in consumer market. Buyers exhibiting diversified preferences and less predictable purchase behavior. Market researchers began it study the buying behavior of the consumers, they soon realized that despite some times me too approach to fads and fashions. Many consumers rebelled at identical products every one else used instead. They preferred differentiated products that they felt reflected their own special needs, personalities and lifestyles. To better meet the needs of specific groups of consumers, most marketers adopted policy of market segmentation, which called for the division of their potential market in to smaller, homogeneous segment for which they could design a specific product and promotion campaign. They also used promotional techniques to very the image of their products so that they would be perceived as better fulfilling the specific needs of certain target segments a process now known as positioning. Other reason for the developing of interest in consumer movements. Public policy concerns, Environmental concerns and the growth of non-profit marketing and international marketing. In addition to the fast phase of new product introduction, other factors contributes to the development of

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consumer behavior e.g. a market displaying the growth of consumers movement created an urgent need to understand how consumers make consumption decision. Todays scenario in the world, the total business in all fields depends on the consumer-buying behavior. Without knowing that nobody wick achieve their goals and profits. So consumer-buying behavior play a vital role in business. Consumer Behavior Models are Six. They areNICOSIA MODEL HOWARD SHETH MODEL ENGEL - BLACKWELL MODEL SHETH FAMILY DECISION MAKING BETTAM INFORMATION PROCESSING MODEL SHETH - NEWMAN - GRASS MODEL In these 6 models first three models are related to consumer decision making on how individual consumers arrive at brand choices. The fourth model is related with family decision making. Particular attention is given to factors that influence the extent and nature of family members contribution to purchase decision. The fifth model focused on a consumer information processing perspective. It focuses on the cognitive aspects of information search and processing and indicates how consumers use information to arrive at various types of buying decisions. The last model is concerned with the consumption values specifically why consumers choose to buy or not by ascertaining product type of the product or specific brand. The Indian car industry as we se today is relatively in origins. Except the ubiquitous ambassador and the premier padminis there was not much moving around with the Indian tag. The restrictive policies of the Indian government did not allow foreign players to shop in India and in the absence of adequate technology and purchasing power it resulted in the slow growth of the industry even after a long time since independence. The demand for cars increased from 15,714 in FY60 to LTD, a GOI JV with suzuki of Japan in 1983 which so called peoples car and amore favorable policy frame work resulted in a CAGR of 18.6% in car sales from FY81 to FY90. After witnessing a down turn from FY90 to FY93, car sales bounced back to register 17% growth rate till FY97, since then the economy slummed into recession and this affected the growth of

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the automobile industry as a whole. As a result car sales remained almost stagnate in the period between FY97 and FY99. However with the revival in the economy, FY2001 turned volume sales of FY96-00 stands at 16.6% on the basis of price. The India car industry can be classified into economy or the small car (up to 3mm) economy segment dominates with the market share of about 80% of total car sales in FY00. Taking in to consideration the rising expendable income levels and necessity of personal transportation means, the demand for cars is expected to increase ; FY00 was indicators of the growth phase to follow registering 20years high grow rate 56% yoy. The second highest growth rate was recorded in 1985 at 42% yoy. When maruti had entered the maket riding on the popularity of the small car segment , coupled with the boost is sales of the mid-size segment the total sales grew by 56% yoy. However such high levels of growth is highly unsustainable in the long run given that there is a yet unutilized capacity in the industry. This would make the question of survival important and car makers would have to pay their cards well to remain in connection. Moreover , sales growth in FY00 was calculated on a lower base of FY00. Exports are expected to increase as a result of ever capacity in the domestic car industry and governments policy to bring in a more liberal regime on the foreign exchange front. The flood of new entrants into the car industry as a result of liberalization has led to a complete transformation of the sector. The car segment is flooded with new models from new and existing players, a visible shift from a constrained supply situation to the surplus. In last decade or so, as many as 30 models have invaded the market making it a case of embarrassment of riches. Moreover a lot many models are waiting to hit the ramp by the end of the year. The capacity of car production has increased substantially in the last 3 years and is expected to grow manifold in the coming years. The capacity for car production in the coming years. The capacity of car production in the country is expected to increase from around 7,50,000 in FY99 to 1,210,000 in FY01. The industries will thus witness sustained over capacity in the next few years. The low capacity utilization will force are marketing war between the car manufactures. The industry may also witness a shake out resulting in withdrawal of players from the segment in next three years. The car buyer will be the major beneficiary of the marketing war in the segment as they will be able get technologically better products at good terms and conditions. But with an expected shake out the threat of discontinuation of model is also high.

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MODEL OF CONSUMER BEHAVIOUR

Marketing stimuli

Other stimuli Consumer

Consumer Decision

Consumer Decisions

Characteristics Process Product Product Price Place Promotion Economic Technological Political Cultural Personal Social Cultural Problem recognition Information Search Evaluation Decision Post Psychological Purchase Behavior. Choice Brand Choice Dealer Choice Purchasing Timing Purchasing Amount

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DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR

Cultural Factors Social Factors Culture Reference groups Sub Culture Family Social Class Age and Life Cycle Occupation Economic Roles & Status Circumstances Lifestyle Personality and Self Concept Psychological Factors Motivation Perception Learning Beliefs and Attitudes Buyers Personal Factors

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CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

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1) DO YOU OWN A CAR? A) YES B) NO

TABLE NO. 1
Options No of Customers Percentage of respondents YES NO 100 0 100 0

Figure no-1

120 100 80 60 40 20 0 No of Customers % YES

INTREPRETATION: All the 100 customers interviewed said that they owned a car.

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2) WHICH CAR DO YOU OWN? A) VERNA B) EON C) I10 D) I20 E) ELANTRA F) SONATA G) OTHERS

TABLE NO. 2
Options No of Customers Percentage of respondents VERNA EON I10 I20 ELANTRA SONATA OTHERS 29 10 20 22 6 5 8 29 10 20 22 6 5 8

Figure no-2
35 30 25 20 15 10 5 0 No of Customers %

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INTERPRETATIONAmong the all 100 customers interviewed majority of 29% of the customers owned Verna, 10% of the customers owned Eon, 20% of the customers owned i10, 22% of the customers owned i20, 6% of the customers owned Elantra, 5% of the customers owned Sonata, 8% of the customers owned other car.

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3. DID YOU TAKE TEST DRIVE BEFORE BUYING YOUR CAR? A) YES B) NO

TABLE NO. 3
Percentage No.of OPTIONS YES NO Customers 56 44 of respondents 56 44

FIGURE NO. 3

Total No of Customers who took test ride Before purchasing the car

70 60 50 40 30 20 10 0 YES NO

INTERPRETATION:
Among the all 100 customers interviewed A majority of 56% of the customers have taken the Test Ride before purchasing the cars. 44% of the customers have not taken the Test Ride before purchasing the cars.

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4)YOUR PREFERENCE OF BUYING ANY OTHER CAR BEFORE BUYING THIS CAR?
A) MARUTI SUZUKIB) TOYOTA C) HONDAD) NISSAN E) TATAF)VOLKSWAGONG)RENAULTH)SKODAI)BMWJ)AUDI K) MERCEDES

TABLE NO. 4

DIFFERENT BRANDS

NO.OF RESPONDENTS 25 12 13 6 10 8 12 4 5 2 3

Percentage of respondents 25 12 13 6 10 8 12 4 5 2 3

MARUTHI SUZUKI TOYOTA HONDA NISSAN TATA VOLKSWAGON RENAULT SKODA BMW AUDI MERCEDES FIGURE NO.4

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INTERPRETATION:
Among the all 100 customers interviewed for HYUNDAI VERNA :

A majority of 25% of the customers prefer to buy HYUNDAI accent before buying the HYUNDAI VERNA. 18% of the customers prefer to buy HYUNDAI I 10 before buying the HYUNDAI VERNA. 16% of the customers prefer to buy HYUNDAI Elentra before buying the HYUNDAI VERNA. 11% of the customers prefer to buy MARUTHI 800 before buying the HYUNDAI VERNA. 10% of the customers prefer to buy VERNA Plus before buying the HYUNDAI VERNA. 7 % of the customers prefer to buy MARUTHI ZEN before buying the HYUNDAI VERNA. 7 % of the customers prefer to buy HYUNDAI Santro before buying the HYUNDAI VERNA. 4 % of the customers prefer to buy Tayotacarola before buying the HYUNDAI VERNA. 2 % of the customers prefer to buy Honda city before buying the HYUNDAI VERNA. 2 % of the customers prefer to buy BMW before buying the HYUNDAI VERNA.

1 % of the customers prefer to buy MERCIDAZ.

1% of the customers prefer to buy HONDA CITY before buying MARUTHI SWIFT 2% of the customer prefer to buy Mercidazbenz before buying MARUTHI SWIFT

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5. INFLUENTIAL PERSONS FOR PURCHASING THE CAR? A) FRIENDS /RELATIVES B) MECHANIC C) SALES EXECUTIVE TABLE NO. 5 Percentage INFLUENTIAL PERSONS Friends/Relatives Mechanic Sales Executive No ofRespondents 50 20 30 of respondents 50 20 30

FIGURE NO. 5 60 50 40 30 20 10 0 No of Respondents %

Friends/ Relatives Mechanic

Sales Executive

INTERPREATION:Among the all 100 customers interviewed

A majority of 50 % of the respondents were influenced by Friends & Relatives for purchasing the cars. 20 % of the respondents were influenced by the Mechanic for purchasing the cars.

Another 30 % of the respondents were influenced by the Dealers Sales Executive for
purchasing the cars.

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6. WOULD YOU OPT FOR AN EXCHANGE OF YOUR CAR? A) YES B) NO

TABLE NO 6

Percentage of OPTIONS YES NO No. of Respndts 23 77 respondents 23 77

FIGURE NO.6
Number of Customers Opted for Exchange 100 90 80 70 60 50 40 30 20 10 0 No. of Respndts %

YES NO

INTERPRETATION : Among the all 100 customers interviewed

A minority of 23 % of the respondents opted for Exchange. A majority of 77 % of the respondents did not opted for Exchange.

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7. HAVE YOU TAKEN FINANCE FOR BUYING YOUR CAR? A) YES B) NO

TABLE NO. 7

Percentage of OPTION YES NO No. of Respondents 20 80 respondents 20 80

FIGURE NO.7

Number of Customers Opted for Finance 90 80 70 60 50 40 30 20 10 0 No. of % Respondents

YES NO

INTERPRETATION : Among the all 100 customers interviewed

A majority of 20% of the respondents opted for finance of the cars. A minority of 80% of the respondents did not opted for finance of the cars.

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8. RATE YOUR CAR IN TERMS OF COMFORT? A) VERY GOOD B) GOOD C) AVERAGE D)POOR

TABLE NO. 8
Percentage No of COMFORT V.Good Good Average Poor TOTAL Respondents 12 64 20 4 100 of respondents Ranks 12 64 20 4 100 3 1 2 4

FIGURE NO.8

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80 70 60 50 40 30 20 10 0 No. of % Respndts Ranks V.Good Good Average Poor

INTERPRETATION: Among the all 100 customers interviewed

Of the total respondents interviewed 12% of the customers feel that the performance of the cars in terms of Comfort is V.Good. A majority of 60 % of the customers feel that the performance of the cars in terms of Comfort is good. 24 % of the customers feel that the performance of the cars in terms of Comfort is Average. 4 % of the customers feel that the performance of the cars in terms of Comfort is Poor.

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9. RATE YOUR CAR IN TERMS OF FUEL EFFICIENCY? A)VERY GOOD B)GOOD C) AVERAGE D)POOR

TABLE NO .9
Percentage No Ratings V.Good Good Average Poor TOTAL ofRespondents 16 38 36 10 100 100 of respondents Ranks 16 38 36 10 3 1 2 4

Figure No 9 Performance of the Cars in terms of Fuel Efficiency 70 60 50 40 30 20 10 0 % No of Responds Ranks V.Good Good Average Poor

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INTERPRETATION : Among the all 100 customers interviewed

. Of the total respondents interviewed 16% of the customers feel that the performance of the cars in terms of Fuel Efficiency is V.Good. Of the total customers 38% feel that the performance of the cars in terms of Fuel Efficiency is Good. 36% of the customers feel that the performance of the cars in terms of Fuel Efficiency is Average 10% of the customers feel that the performance of the cars in terms of Fuel Efficiency is Poor.

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10. MILEAGE OF YOUR CAR? A) 15 KMS/LTRS. B) 18 KMS/LTRS.C) 20 KMS/LTRS. D) 25 KMS/LTRS.

TABLE NO. 10
No.of Mileage 15 kms/Ltr 18 kms/Ltr 20 kms/Ltr 25 kms/Ltr TOTAL Respondents 12 28 42 18 100 Percentage of respondents 12 28 42 18 100

FIGURE NO.10

45 40 35 30 25 20 15 10 5

Mileage of Car Customer is Getting

18Kms/Ltr 21Kms/Ltr 23Kms/Ltr 25Kms/Ltr

0 No of % Responds

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INTERPRETATION: Among the all 100 customers interviewed

Out of the total customers, a no. of 12 customers are getting mileage between the range of 15 kms/Ltrs. 28 Customers are getting mileage between the range of 18 Kms/Ltrs. 42 Customers are getting mileage between the range of 20 Kms/Ltrs. 18 Customers are getting mileage between the range of 25 Kms/Ltrs

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11. MILEAGE YOU ARE EXPECTING? A) 25 KMSB)30 KMS

Table No. 11
Percentage of Mileage 25 kms/Ltr 30 kms/Ltr Total No ofRespondents 64 36 100 respondents 64 36 100

FIGURE NO. 11 Mileage of Car Expected by the Customer

70 60 50 40 30 20 10 0

25Kms/Ltr 30Kms/Ltr

No.ofRespnds

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INTERPRETATION: Among the all 100 customers interviewed

Out of the total customers, a large no. of 64 customers expects the mileage of the cars between the ranges of 25 Kms/Ltrs. 36 Customers expect the mileage between the range of 30 Kms/Ltrs.

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12. YOUR OPINION ABOUT YOUR CARS ENGINE? A) GOOD B) POOR

TABLE NO.12
Percentage OPTION No of Respondents of respondents Good Poor TOTAL 68 32 100 68 32 100

FIGURE NO.12
Customers Opinion about the Respective CAR Engine. 80 70 60 50 40 30 20 10 0 No. of Responds % Good Poor

INTERPRETATION: Among the all 100 customers interviewed

68 % of the customers opinion about the carss Engine is Good and there is no problem in the Engine. 32 % of the customers opinion about the carss Engine is Poor and there are many problems in the Engine.

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13. WHICH TYPE OF PROBLEM YOU FACED WITH YOUR CAR? A) GEAR SHIFTING PROBLEM B) ENGINE SOUND C) LOW MILEAGE D)OTHER

TABLE NO. 13
Percentage of OPTION Gear shifting problem Engine sound Low Mileage Others No ofRespondents 13 23 32 30 respondents 13 23 32 30

FIGURE NO. 13
35 30 25 20 15 10 5 0 Gear shifting problem Engine sound Low Mileage Others No of Respondents %

INTERPRETATION: Among the all 100 customers interviewed

A majority of 13 % of the customers face the problem of Gear Shifting in the cars. 32 % of the customers face the problem of Very Low Mileage in the cars. 23 % of the customers face the problem of Engine Knocking Sound. 30 % of the customers cars others problems.

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14. ARE YOU SATISFIED BY THE OVER ALL PERFORMANCE OF YOUR CAR? A) YES B) NO

TABLE NO.14
Percentage of OPTION YES NO TOTAL No of Respondents 72 28 100 respondents 72 28 100

FIGURE NO. 14 No. of Customer Satisfied by the Respective cars

80 70 60 50 40 30 20 10 0 No of Respondents % YES NO

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INTERPRETATION: Among the all 100 customers interviewed

A majority of 72 % of the customers are fully Satisfied by the cars VERNA. 28 % of the customers are not satisfied by the cars which they have..

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15.MAINTENANCE EXPENDITURE OF YOUR CAR? A) EXPENSIVEB) OK C)CHEAP

Table No. 15
Percentage of OPTION Expensive O.k. Cheap Total No of Respondents 10 75 15 100 respondents 10 75 15 100

FIGURE NO 15 Maintenance of the CARS as compared To other CARS 90 80 70 60 Expensive 50 40 Ok 30 20 Cheap 10 0 % No of Respondents

INTERPRETATION: Among the all 100 customers interviewed

10 % of the customers said that the Maintenance of the Cars is Very expensive as compared to other cars. 75 % of the customers said that the Maintenance of the Cars is OK as compared to other cars. 15 % of the customers said that the Maintenance of the Cars is Cheap as compared to other cars.

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16. YOURE RATING TO THE SERVICES OFFERED BY HYUNDAI? A) VERY GOOD B) GOOD C)AVERAGE D)BAD E)VERY BAD

TABLE NO. 16
Percentage of Ratings V.Good Good Average Bad V.Bad NoofRespondents 6 62 24 8 0 respondents Ranks 6 62 24 8 0 4 1 2 3 5

FIGURE NO. 16

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Customer Ratings 70 60 50 40 30 20 10 0 No of % Respondents Ranks V. Good Good Average Bad V. Bad

INTERPRETATION: Among the all 100 customers interviewed

A majority of 62 % of the customers felt that the services offered by Hyundai aregood. 24 % of the customers felt that the services offered by Hyundai areAverage. 8 % of the customers felt that the services offered by Hyundai arebad.

6 % of the customers felt that the services offered by Hyundai are very good.

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17.WHAT DO YOU THINK IS MOST EFFECTIVE MEDIA THAT HELPS A BRAND TO REACH PEOPLE? A) NEWSPAPER B)MAGAZINES C)E-ADS D)TELEVISION

TABLE NO. 17 Effective media Newspaper Magazines E-Ads Television No of Respondents 40 15 15 30

Percentage of respondents

40 15 15 30

FIGURE NO. 17
45 40 35 30 25 20 15 10 5 0 Newspaper Magazines E-Ads Television 15 15 No of Respondents % 30 40

INTERPRETATION: Among the all 100 customers interviewed

A majority of 40% of the customers felt newspaper as the most effective media. 15 % of the customers felt magazine as the effective media. 15 % of the customers felt E-Ads as the effective media. 30% of the customers felt television as the effective media.

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18.WHO DOES YOU FEEL CAN BECOME MOST EFFECTIVE AS A BRAND AMBASSADOR? A)SPORTSTAR B)MODELS C)FILMSTAR D)OTHERS

TABLE NO. 18 Effective brand ambassador No of Respondents % Sport stars Models Film stars Others 35 20 30 15 35 20 30 15

FIGURE NO. 18

40 35 35 30 30 25 20 20 15 15 10 5 0 Sport stars Models Film stars Others No of Respondents %

INTERPRETATION : Among the all 100 customers interviewed

A majority of 35% of the customers felt sport stars in the ads would help more in influencing people. 20 % of the customers feltmodels in the ads would help more in influencing people. 30% of the customers felt film stars in the ads would help more in influencing people. 15% of the customers felt sport stars in the ads would help more in influencing people.

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19. YOUR APPROXIMATE EARNING A) 40000-60000 PMB) 60001-100000 PM C) 100001-150000PM D) 150001-200000PM

TABLE NO. 19
Percentage of Rangeof Income Rs40000-60000pm Rs60001-100000pm Rs100001-150000pm Rs150001-200000pm NoofRespondents 8 25 42 25 respondents 8 25 42 25

FIGURE NO. 19 Approximate Earning of Customers Interviewed Per Month 50 45 40 35 30 25 20 15 10 5 0 No of Responds %

Rs4000060000pm Rs60001100000pm Rs100001150000pm Rs150001200000pm

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INTERPRETATION : Among the all 100 customers interviewed

A majority of 42% of the customers income fall under the range Rs 100001/- to Rs 150000/- p.m 25 % of the customers income fall under the range of Rs 150000/-toRs 250000/-p.m.. 25 % of the customers income fall under the range of Rs 60001/-toRs 100000/- p.m. 8% of the customers income fall under the range of Rs 40000/- to 60000/- p.m.

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CHAPTER V

FINDINGS&CONCLUSION

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FINDINGS:
The Consumers Behavior towards company service is satisfactory. Most of the consumers says prices are high. Many of the consumers know about the brand through advertisements, friends and advisors. Many of the consumers suggest televisions, newspaper, magazines as right way to advertise. Most of consumers feel maintenance cost is high. Most of them are satisfied with the models they have been provided by Hyundai. Most of the consumers recommended Hyundai as best brand.

SUGGESTIONS:
Training more Advisors will improve the sales. Brand building will be effective to improve the sales. Frequent offers will improve the investment policies. They should give advertisements in the local media. Hyundai consumers are satisfied. So try to keep up the goodwill already built.

CONCLUSION:
The respondents are mostly students and employees. Consumer while purchasing a car they look for the mileage followed by price. While purchasing a particular brand customers are very much influenced by relatives and friends in selection of brand. While selecting a particular brand, the majorities of the consumers are influenced by the brand ambassador and has an effect on decisionmaking. The most effective Brand Ambassador, from the consumer point of view is sports person followed by film personality. From the consumer point of view, the most effective media to reach the people is electronic followed by hording and print media. The Brand name plays a vital role in building trust and confidence in the product and its success. According to the consumers, the top twos Brands areHYUNDAI and MARUTHI.

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QUESTIONNAIRE FORM
NAME- GENDER-....... AGE- OCCUPATION-.

1. DO YOU OWN A CAR A) YES B) NO

2) WHICH CAR DID YOU OWN? A) VERNA B) I10 C)I20 D)EON E)ELENTRA

3. DID YOU TAKE TEST DRIVE BEFORE BUYING YOUR CAR? A) YES B) NO

4.YOUR PREFERENCE OF BUYING ANY OTHER CAR BEFORE BUYING THIS CAR? A) MARUTI 800 B)SWIFT C)BMW D)SKODA E) OTHERS

5. INFLUENTIAL PERSONS FOR PURCHASING THE CAR? A) FRIENDS /RELATIVES B)MECHANIC C)SALES EXECUTIVE

6.WOULD YOU OPT FOR ANEXCHANGE OF YOUR CAR? A) YES B) NO

7. HAVE YOU TAKEN FINANCE FOR BUYING YOUR CAR? A) YES B) NO

8.RATE YOUR CAR IN TERMS OF COMFORT? A) VERY GOOD B) GOOD C) AVERAGE D)POOR

9.RATE YOUR CAR IN TERMS OF FUEL EFFICIENCY? A)VERY GOOD B)GOOD C) AVERAGE D)POOR

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10. MILEAGE OF YOUR CAR? A) 15 KMS/LTRS. B) 18 KMS/LTRS.C) 20 KMS/LTRS. D) 25 KMS/LTRS.

11. MILEAGE YOU ARE EXPECTING? A)25 KMS B)30 KMS 12. YOUR OPINION ABOUT YOUR CARS ENGINE? A) GOOD B) POOR

13.WHICH TYPE OF PROBLEM YOU FACED WITH YOUR CAR? A) GEAR SHIFTING PROBLEM B) ENGINE SOUND C) LOW MILEAGE D)OTHER

14. ARE YOU SATISFIED BY THE OVER ALL PERFORMANCE OF YOUR CAR? A) YES B) NO

15.MAINTENANCE EXPENDITURE OF YOUR CAR? A) EXPENSIVEB) OK C)VERY LOW 16. YOURE RATING TO THE SERVICES OFFEREDBY HYUNDAI? A) VERY GOOD B) GOOD C)AVERAGE D)BAD E)VERY BAD

17.WHAT DO YOU THINK IS MOST EFFECTIVE MEDIA THAT HELPS A BRAND TO REACH PEOPLE? A) NEWSPAPER B) MAGAZINES C)E-ADS D)TELEVISION

18.WHO DOES YOU FEEL CAN BECOME MOST EFFECTIVE AS A BRAND AMBASSADOR? A) SPORTSTAR B) MODELS C) FILMSTAR D)OTHERS

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BIBLIOGRAPHY
References :
1. Leon G Shiftman Consumer Behavior 2. G.C.Berry .. Marketing Research 3. Philip Kotler . Principles of Marketing 4. Adlarian palmer .. . Services Marketing

Websites referred:

www.indianautomobile.com www.hyundaimotors.com

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