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A

Research Report
ON

“Consumer Behavior of Rural Customers


Regarding Tractors : A Descriptive Study
of Sirsa District”

(Submitted in partial fulfillment of the requirement of


Master of Business Administration, distance Education
Guru Jambheshwar University of Science &
Technology , Hisar

Under guidance of: Submitted by:


Ms. Sandra Kalra Sunil Kumar
Lecturer Enrol. No. 07061128040
SGIIT, Sirsa MBA IV (Marketing)

DIRECTORATE OF DISTANCE EDUCATION


GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY,
HISAR-125001
CERTIFICATE

This is to certify that Mr. Sunil Kumar, Enrolment No.


07061128040 has proceeded under by supervision her
Research Project Report on "Consumer Behavior of Rural
Customers Regarding Tractors : A Descriptive Study of
Sirsa District" in the specialization area Marketing”
The work embodied in this report is original and is of the
standard expected of an MBA student and has not been
submitted in part or full to this or any other university for the
award of any degree or diploma. He has completed all
requirements of guidelines for Research Project Report and the
work is fit for evaluation.

Signature of Supervisor/Guide (with SEAL)


NAME : Sandra Kalra
DESIGNATION : Lecturer
ORGANIATION : SGIIT, Sirsa

Forwarded by Head/Director of Study Centre


(with signature, Name & SEAL)
DECLARATION

This is to certify that the project Report entitled " Consumer


Behavior of Rural Customers Regarding Tractors : A
Descriptive Study of Sirsa District " is an original work
and has not been submitted is part or full to this or any other
university/ institution the award of any degree or diploma.

Signature of candidate
NAME : Sunil Kumar
ENROLMENT NO.: 07061128040
SPECILIZATION : Marketing
SESSION : 2007-09

Contents
Sr. Description

1. Introduction

2. Review of Literature

3. Research Methodology

4. Data Analysis & Interpretation

5. Findings & Suggestions

• References

• Questionnaire
CHAPTER-1
INTRODUCTI
ON

CHAPTER-1
INTRODUCTION
Consumer behavior involves the psychological processes

that consumers go through in recognizing needs, finding ways

to solve these needs, making purchase decisions (e.g.,

whether or not to purchase a product and, if so, which brand

and where), interpret information, make plans, and implement

these plans (e.g., by engaging in comparison shopping or

actually purchasing a product).

• The psychology of how consumers think, feel, reason,

and select between different alternatives (e.g., brands,

products);

• The psychology of how the consumer is influenced by his

or her environment (e.g., culture, family, signs, media);

• The behavior of consumers while shopping or making

other marketing decisions;

• Limitations in consumer knowledge or information

processing abilities influence decisions and marketing

outcome;

• How consumer motivation and decision strategies differ

between products that differ in their level of importance

or interest that they entail for the consumer; and

• How marketers can adapt and improve their marketing

campaigns and marketing strategies to more effectively

reach the consumer.


One "official" definition of consumer behavior is "The study of

individuals, groups, or organizations and the processes they

use to select, secure, use, and dispose of products, services,

experiences, or ideas to satisfy needs and the impacts that

these processes have on the consumer and society." Although

it is not necessary to memorize this definition, it brings up

some useful points:

• Behavior occurs either for the individual, or in the context

of a group (e.g., friends influence what kinds of clothes a

person wears) or an organization (people on the job make

decisions as to which products the firm should use).

• Consumer behavior involves the use and disposal of

products as well as the study of how they are purchased.

Product use is often of great interest to the marketer,

because this may influence how a product is best

positioned or how we can encourage increased

consumption. Since many environmental problems result

from product disposal (e.g., motor oil being sent into

sewage systems to save the recycling fee, or garbage

piling up at landfills) this is also an area of interest.

• Consumer behavior involves services and ideas as well as

tangible products.
• The impact of consumer behavior on society is also of

relevance. For example, aggressive marketing of high fat

foods, or aggressive marketing of easy credit, may have

serious repercussions for the national health and

economy.

There are four main applications of consumer behavior:

• The most obvious is for marketing strategy—i.e., for

making better marketing campaigns. For example, by

understanding that consumers are more receptive to food

advertising when they are hungry, we learn to schedule

snack advertisements late in the afternoon. By

understanding that new products are usually initially

adopted by a few consumers and only spread later, and

then only gradually, to the rest of the population, we

learn that (1) companies that introduce new products

must be well financed so that they can stay afloat until

their products become a commercial success and (2) it is

important to please initial customers, since they will in

turn influence many subsequent customers’ brand

choices.

• A second application is public policy. In the 1980s,

Accutane, a near miracle cure for acne, was introduced.

Unfortunately, Accutane resulted in severe birth defects if


taken by pregnant women. Although physicians were

instructed to warn their female patients of this, a number

still became pregnant while taking the drug. To get

consumers’ attention, the Federal Drug Administration

(FDA) took the step of requiring that very graphic

pictures of deformed babies be shown on the medicine

containers.

• Social marketing involves getting ideas across to

consumers rather than selling something. Marty Fishbein,

a marketing professor, went on sabbatical to work for the

Centers for Disease Control trying to reduce the

incidence of transmission of diseases through illegal drug

use. The best solution, obviously, would be if we could

get illegal drug users to stop. This, however, was deemed

to be infeasible. It was also determined that the practice

of sharing needles was too ingrained in the drug culture

to be stopped. As a result, using knowledge of consumer

attitudes, Dr. Fishbein created a campaign that

encouraged the cleaning of needles in bleach before

sharing them, a goal that was believed to be more

realistic.

• As a final benefit, studying consumer behavior should

make us better consumers. Common sense suggests, for


example, that if you buy a 64 liquid ounce bottle of

laundry detergent, you should pay less per ounce than if

you bought two 32 ounce bottles. In practice, however,

you often pay a size premium by buying the larger

quantity. In other words, in this case, knowing this fact

will sensitize you to the need to check the unit cost labels

to determine if you are really getting a bargain.

There are several units in the market that can be analyzed.

Our main thrust in this course is the consumer. However, we

will also need to analyze our own firm’s strengths and

weaknesses and those of competing firms. Suppose, for

example, that we make a product aimed at older consumers, a

growing segment. A competing firm that targets babies, a

shrinking market, is likely to consider repositioning toward our

market. To assess a competing firm’s potential threat, we need

to examine its assets (e.g., technology, patents, market

knowledge, awareness of its brands) against pressures it faces

from the market. Finally, we need to assess conditions (the

marketing environment). For example, although we may have

developed a product that offers great appeal for consumers, a

recession may cut demand dramatically.

India is basically an agricultural country. Agriculture

occupies the most important place in her economy. India is


known as land of farmers as it provides livelihood to above

65% of its population. When India attained independence, the

country did not manufacture any tractor or any farm

equipment. Indian farmers relied largely upon human and

animal equipment such as hand tools, wooden ploughs, bullock

carts etc for agriculture production. With the population boom,

the pressure on agriculture land increases; thus, on increasing

crop yield. Green revolution was the first step in this direction.

This growing emphasis on increase in production lead the

Indian farmer to adopt mechanization to prepare the land for

cultivation. This started a trend to adopt the TRACTOR.

The word “TRACTOR” derives its origin form the word

TRACTION MOTOR. It is a self propelled machine, used either

for pulling or pushing loads or for stationary belt work. It is a

versatile machine that can be used for not only seed bed

preparation, inter culture operation, pre-harvest and post-

harvest operations like plowing, leveling, spraying, threshing,

winnowing and transportation etc. but also for such diverse

operations as irrigation, running generator sets, compressors

and light earth moving machines.

Tractors are mainly used in the following fields of application:

• Farming

• Transportation
• Material handling

A tractor is a critical tool in farm application. A 20 HP tractor

can be replace about 2000 labourers. Tractor has a critical

role in increasing agricultural productivity. The vehicle is also

used for material handeling in large factories and a tractor –

tailor combination is also used as a passenger/commercial

vehicle in rural and semi urban area.

Indian tractor market is dominated by low price, no frills,

rugged, versatile and low to medium powered tractors.

Tractor prices in India are aboiut 1/4th of the international

prices for similar powered tractors. Currently there are seven

majors players controlling 97% of the market. Mahindra and

Mahindra emerged as the leader during the last 4-5 years. A

few international players like New Holland, John Deere and

Same have also set up facilities in India but these players

pose little treat to the existing players who enjoy advantages

of established distribution/service network and string brand

equity.

CRITICAL PARAMETER FOR GROWTH OF TRACTORS

INDUSTRY

Agriculture Credit
Nearly 90-95% tractors are purchased with the help of bank

credit. It plays an important role in determining the demand

for tractors.

Pricing of Tractors

The financial inability of the Indian farmers makes the pricing

a critical parameter. Companies that managed to keep their

cost low are the ones that managed to survive during the

recession period.

Monsoon and Crop Price

The farmer has to pay say 15% of the total price of tractor, in

cash, at the booking stage, consequently, of the farmer is

faced with bad monsoon and low crop price,he will not in the

position to make the initial payments.

Government Policies

To enable farmer to purchase a tractor against these oods,

the government introduced subsidies in this sector.during the

union budget 1994-95 the government exempted excise on

small HP tractors i.e 1800cc.

Soil Conditions

Small tractors are used in areas with soft soil and large

tractors in areas with hard soil. For instance, where the soil is

sandy, blackor alluvial, the tractors will ideally be over 30 HP.

In areas where soil is caly, redor silt, the tractors are likely to
be below 30 HP. Hence in states such as Rajasthan, Gujrat,

Maharastra and West Bengal there is more demand for

tractors of over 30 HP.

Land Holding Size

The size of land holding influences the size of tractors used.

There is a distinct shift towards medium-sized farms which

suggests that demand will be stronger for medium sized

tractors. In future, a shift towards largers land holdings is

envisaged, which also signals a partial shift towards higher

HP tractors (>45 HP).

Imports

The industry has managed to reduce its dependence on

imports as many players have in degenized their inputs,

which were earlier inputs, which were earlier imports.

REGIONAL SALES TRENDS

Tractor sales have traditionally been skewed in favour of

certain states, arising largely from their earlier adoption of

modernized agricultural practices. During the 1970’s tractor

sales in Punjab, Haryana and UP were driven by the green

revolution and the use HYV seeds. By the early 1980’s these

three states, with only 21% of India’s GCA, accounted for 2/3

of national tractor sales. The current penetration level of 25


tractors per thousand hectares of GCA in these states

compares favourably with the world average.

The high penetration levels in the traditionally high growth

states has meant that future growth prospects are limited.

Over the last four years, the contribution of these states to

total tractor sales has fallen from 53% in 1996 to 41% in

2000. At the same time, new states such as MP, Gujrat,

Maharashtra and TN have recorded strong growth and

spurred tractors sales. The contribution of these four states to

total tractor sales has increased from 24% in 1998 to 35% in

2002.

COSTS AND MARGINS

Raw materials typically constitute about 72% of the tractors

selling price according to the level of outsourcing. Wages

account for 6%. Capital expenditure required on a recurring

basis is low because of the simple technology needed for

tractor engines, straightforward assembly lines and limited

technological developments. The machinery required remains

simple.

No major technological changes are foreseen on the

equipment side and we expect the cost structure to remain.

Increases in the cost of raw materials are expected to be

passed on to the end user, ensuring margins are maintained.


Economics of scale and cost control will remain the keys to

continued profitability and growth, as price hikes have always

been marginally lower than the increase in grain procurement

prices. The industry has to grant to the dealers with

exception of PTL, which collects payment on delivery.

Exports

Exports have strong potential and several Indian tractors are

sold in the US, Europe and Africa. The large export potential

can be cater to only when the more lucrative domestic

markets demands have been satisfied. However, the exports

are very small percentage of the output.

DEMAND-SUPPLY OUTLOOK

It is estimated that potential tractor demand at 4.9 million

tractors is three times the current tractor population. This

leads to the belief that tractor sales in India have long way to

go before reaching saturation. Tractor demand will grow at a

steady 8-10% through to 2007, driven by the low penetration

levels, adoption of modern farming techniques, shift to cash

crops. Favourable govt. policies and emerging replacement

demand as the previous demand surge tool place about 15

years ago, the average life span of tractor.


ENTRY BARRIERS

As Indian tractor market is one of the fastest growing markets

in world, global tractor companies are targeting this market

to fuel their future growth plans. These global major will face

formidable entry barriers. These include:

1. Lower cost of capital for Indian Companies.

2. Extensive distribution and after sales services network

of Indian manufacturers.

3. Brand loyalty.

4. Wide range of models is needed in Indian market.

TECHNOLOGY

The tractor industry in India has acquired modern technology

as per the report on perspective for tractor industry prepared

by the Ministry of Industry “The technology gap between India

and International tractors is relatively smaller than that

existing in four wheeler automobile sector. This is largely due

to the greater competition and relatively newer foreign

collaboration in the industry”.

The establishment of in house R & D facilities in the tractor

industry has greatly helped in this direction.

Most of the manufacturers have entered into technical

collaboration with world renowned companies in the field. The


absorption of foreign technology in gew of the Indian models is

more or less complete.

Important elements of a tractor upon which the efficiency and

utility depends are:

(1)Engine

(2) Transmission system (consisting of

clutch, gear box, rear axle).

Hydraulic system and linkage for control

of implements.

Power take off (PTO), shaft and draw bar.

Design, manufacture, assembly and testing of these element /

system form the core of tractors technology. Since these are

critical to the performance of tractors, all tractor

manufacturers provide facilities for their indigenous

production.

EICHER TRACTOR LIMITED

In 1960, Eicher Tractors was promoted by Eicher Goodearth, a

pioneer in the manufacture of agricultural tractors.

Incorporated as Eicher Diesels Pvt. Ltd., it connected

operations in 1983.

In Jan’86, the company name was changed to Eicher Tractors.


Initially manufacturing tractors in the 25HP range only, it later

went on to produce 35-HP tractors (investing Rs. 30.28 cr.) and

50 HP tractors (through a group company).

Under a re-organisation plan, two wholly-owned subsidiaries of

Eicher Goodearth – Eicher Farm Machinery and Continental

Auto Ancillary (manufacturing tractors and diesel engines)—

were merged with the company effectively from 1 July, 85,

when the marketing division of Eicher Goodearth, too, was

transferred to the company.

The company acquired a gear manufacturing unit in 1992 with

the amalgamation of Ramon & Demm, a BIFR company.

Copol Farm Equipment, an associate company, has been

proposed to be merged with the company.

Other companies promoted by Eicher Tractors jointly with

associate companies are Eicher Span Financial Services, Eicher

Consultancy Services and Eicher Agrotech.

Eicher Tractors, in a bid to shore up its bottom line further, has

introduced two new specific tractors. The company also

launched the upgraded version of 30 HP Super-DI (direct

injection) for the South Indian markets.

Eicher also has increased the warranty period of the multi-

cyelinder tractors for two years of 2500 hours. The above


moves are aimed to exploit the present growing trend in the

markets, a senior official told THE FINANCIAL EXPRESS

The company has introduced a 30HP peddling special with

extra heavy clutch, heavy duty gear box specifically for coastal

districts and 42 hp three-cyelinder, 120 kg lift capacity tractor

for heavy duty purpose, the official said.

This is the first time the company is targeting coastal areas in

southern states with a pedding special, which is being

dominated by Mahindra & Mahindra and others, the official

said.
ESCORTS TRACTORS LTD.

Tractors (ETL) commenced manufacture on ford 3000 tractors

in technical and financial collaboration with Ford. ETL, so far,

has been manufacturing tractors of higher HP.

ETL’s market share in the 41-50 hp tractor segment is more

than 50% and it commands about 11% of the total industry

volume.

In Feb.’ 91, ETL came out with a public-cum-rights issue of

PCDs aggregating Rs. 40.84 cr., to finance the expansion of its

capacity from 11000 to 21500.

The company tapped the capital market again in No. ’93 with a

rights issue of NCDs with detachable warrants to finance its Rs.

70.75 cr. Modernization and Rs. 15.3 cr. Expansion, as well as

to meet working capital requirements )Rs. 17.95 cr.).

The company, now, hopes to expand its capacity from 15500

to 21500 tractors by the end of 1997.

ETL was merged with Escorts with effect from 1 April, 95

subject to approval and confirmation of the Delhi High Court.

The company earned Rs. 1.49 cr. Foreign exchange in 1994-

95. It is the first Indian tractor company to be accredited with

the ISO 9001 certification.


PUNJAB TRACTORS

Punjab tractors (PTL), the third-largest tractor

manufacturer in India, is based in Chandigarh. Central

Mechanical Engineering Research Institute (CMERI) jointly with

Punjab Industrial Development Corporation set up PTL to

commercialise indigenous technology.

The company’s factory in Ropar, Punjab, manufacturers

agricultural tractors, power tillers, agricultural machinery and

implements, forklifts, trucks, and sophisticated engineering

equipment.

The tractors, marketed under the Swaraj brand name,

enjoy a good demand and the company exhibited growth

despite recessionary conditions in the tractor industry between

1992 and 1994.

In 1983-84, PTL entered into a technical collaboration

with Kamatsu Forklifts Company, Japan, to manufacture diesel

and electrical forklifts. It has also entered into a joint venture

agreement with Swaraj Mazda Motor Sumitomo, Japan.

The company has installed capacity totaling 25000 for

tractors , harvesters combines and rice transplanters. PTL has

constantly been setting standards of excellence. PTL share of

the tractor market grew from 15.9 % in 1998-99 to 18.4 % in


1999-2000, while net sale went up by 22.3 % to Rs.981.7 crore

in 2000.

Product design and commercialization have been the two

pillars of strength for Punjab Tractors. The engineering

background of its managers, location advantages and the

company’s vendor programmed enable PTL to contain costs.

The company also outsources 72 % of its components.

PTL, however, faces challenges from new entrants like

New Holland of the UK, John Deere of US and SAME of Italy.

Worse, these new players are attacking PTL’s bastion- the 31-

40 hp segment- that accounts for about 61 % of the market.

Nevertheless, PTL seems undaunted by these developments

and challenges, and ploughs on the ahead stolidly.

TRACTOR INDUSTRY

History:

India is the world’s third largest user/manufacturer of

tractors. The Indian tractor industry is the population of 2.7

million. At seven tractors per thousand hectares of gross

cropped area (GCA), India’s tractor density is low as

compared with the international average of 28 tractors per

thousand hectares of GCA. Further, the average power of

Indian tractor of 20-40 HP is far lower then the global

standard of 80-100 HP. While India has 12% of the world’s


arable land, its tractor forms only 3% of the world tractor

population. While the global tractor industry matured a

couple of decades back, the Indian tractor industry has been

recording healthy growth on the back of adoption of modern

agriculture practices and favourable government policies.

This is reflected in high p[roportion of annual sales to the

total outstanding tractor population.

Evolution:

India’s tractor industry growth came in three distinct phases:

The First Phase

The decade of 60’s India saw green revolution resulting in

increase in both Production and productivity. With the parallel

emphasis on industrialization, the birth of Indian tractor

industry tool place in 1950-60 when the imports were

restricted and 5 tractor manufacturing units set up in the

private sector, all with foreign collaboration. Total indigenous

production of tractors by 1965 was just 6000.

With the successful introduction and acceptance of the high

yielding seeds, however there was a sudden up surage in the

demand for tractors after 1967 and demand started

multiplying at an annual rate of nearly 50% (1967: 18,000,

1970: 33,000). A natural consequent of this sharp upsurge

and consequent shortage was heavy pricing premium on


tractor? Recognizing the situation, import of tractor. Into the

country was liberalized and over and above the domestic

production of 20,000 in 1970, 13,000 tractors were imported

THE SECOND PHASE

Since the phase of indigenousisation of the five tractors

manufacturing units already set up was far below

expectation, the government decides to diligence the tractors

industry in 1968 and invited new entrepreneurs. Seeing the

sharply growing demand. Tractor industry became the most

sought after industry in the country and as many as 18 fresh

entrants approached the government for setting up

manufacture. The interest of large majority, however, lay in

quick profit through sale of imported tractor. Never the less 6

new manufactures did enter the tractor industry, four in

private sector and two in the government. Combined output

of 11untis has risen to 32,000 by 1976.

THE MATURE YEARS:

With the entry of new units in 1970 and increasing

government pressure towards indigenousisation picked up

substantially after 1970 and by 1978 almost all the tractors

manufactured were indigenous. A fillip to indigenousisation

was also given by the overall industrialization of the country.

When a large number of Ancillary manufacturers had also


established themselves themselves and were in apposition to

supply a wide variety of components to the tractor industry.

The sharp liberalization of imports in 1970 and had given the

nascent Indian tractors industry a substantial setback in

1970-73, when low cost import particularly from east

European countries far more attractive.

Recognizing that such was not intention, the government

decided to ban imports in 1973. Banning of imports and

increased competition let now only growth of local production

but also spread pace of indigenousation. While domestic

demand was growing sharply from 1975 onwards (compound

growth rate of 18%), tractor industry suffered another major

setback in 1982 when due to severe credit restriction by the

government. Bank credit for retail purchase of tractors by

farmer were drastically curtailed and demand fell sharply. But

after the 1987 the situation again changed and the demand

of tractors picked pace because of the priority given to the

agriculture side.

While there is little doubt over the potential of the sector in

the country, government agencies and policymakers are also

trying their best to convert this potential demand into an

actual one. On the financing front, the interest rates have

come down from 12%-16% range to a much more affordable


11.5%. Also, apart from district co-operative banks,

commercial banks and private sector banks have started

offering credit to this sector.

On account of the above factors, it is being felt that barring a

few short-term blips, the long term prospects of the industry

look good and the annual demand for tractors is expected to

touch the 2.7-2.9 lakh per year mark by FY07 from the

current 1.7 lakh per year levels. But not all tractor stocks are

attractive for retail investors even with a three-year

perspective. To that extent, caution has to be exercised.

Tractor sales in India surged 49.7 percent in the first quarter

of 2004-05 (April-March) due to good rabi crop production

and availability of cheap loans. Sales rose to 58,449 units

during April-June from 39,045 units a year ago, according to

data released by Tractor Manufacturers Association.

Tractor sales in 204-05 are projected to grow by 16% to

220,000 units from 190,000 units last year.

The base was also low last year due to bad sentiments as

there was a poor kharif and rabi crop after the drought in

2002. In April-June, sales of market leader Mahindra and

Mahindra Ltd. jumped 60% to 16,052 units, while that of

Escorts Ltd. grew 35% to 8,313 units.


Sales of Punjab Tractors Ltd. rose 40% to 7,419 units and that

Eicher Ltd. climbed 46% to 4,190 units. Tractors and Farm

Equipment Ltd. clocked a 53% growth to 8,245 units, while

that of Bajaj Tempo Ltd. rose 42% to 910 units.

HMT Ltd. and L&T-John Deere Pvt. Ltd. recorded a 28.4% and

80% rise to 1,541 and 3,274 units, respectively. The growth

in the July-September quarter should be around 15% as the

second quarter is never great.

In the second half (October-March) of this fiscal, we expect

sales to be 8% more than the previous year, as the monsoons

had got delayed and there was a good growth last year which

had increased the base.

India is the world’s largest tractor market, followed by the US

and China. The local market comprise 12 manufacturers,

including foreign players like John Deere, New Holland

Tractors and SAME DEUTZ FAHR-INDIA.


CHAPTER-2

REVIEW OF LITERATURE AND PROBLEM STATEMENT

K.K. Jain1, A.K. Shrivastava and C.R. Mehta (2006)

Tractor seat is one of the important component / assembly as

far as the human machine system and comfort of tractor

operator are concerned .With this in view, a field survey and

laboratory study were conducted of selected popular tractors

and tractor seats, respectively, with particular reference to

seating dimensions. Dimensions for seat pan and backrest

were measured and analyzed, according to BIS

recommendations. The results highlighted that seat pan width

was found 10.9% less, seat height was found 15.3% in excess,

no vertical adjustments and backrest width was also found

20.4% less. This may cause discomfort for smaller as well as

higher percentile tractor operators. Based upon the design of

mounting arrangement of different tractor seats – a common

device i.e. seat base plate was developed. This plate may

serve as a base for providing isolators for vibration

attenuation. Also, this arrangement may be quite useful in

testing of different tractor seats, under the constraints in


availability of different makes of tractors at a time for

experimental study or testing work. The study also highlighted

that present tractor seats need minor modifications /

improvements in seating dimensions as per BIS

recommendations. The development of a common seat base

plate may prove to be a step forward in the direction of long

awaited tractor standardization. The information thus obtained

can be utilized in seat design, work place lay out as well as

adapted by agriculture engineers for better work environment.

Rajesh Patel, Adarsh Kumar and Dinesh Mohan (2000)

The design of tractors manufactured in low-income countries

like India has not changed much in the past two decades,

especially from an ergonomic point of view. Moreover, in these

countries tractors are used for transportation purposes in

addition to farming operations. Therefore, the design criteria

for these tractors need to be different from those in high-

income countries. This paper describes the development of an

ergonomic facility for improvement of tractor design. An

ergonomic evaluation facility has been developed consisting of

a work place envelope for the Indian population, a layout

measuring device and an ergonomic rig. This facility can be

used for comparative evaluation of the display and control

layouts of different tractors in order to develop an optimum


layout. The ergonomic rig has the facility to simulate the

improved layout for subjective evaluation.

M.R. Dinodia (2007) Concluded of the study that out of 100

people most people have Mahindra Tractor and they believe on

it. This study concludes that most people want to purchase

new tractor. They basically purchase tractor for their farming

work. Out of 100 respondents most of them want to purchase

tractor their own decision. This study show that fuel efficiency

is the major factor that influence the customer to purchase the

tractor.

Problem Statement

India is an Agriculture based country. Most of the

businesses in India depend on agricultural performance in India

and Tractor Industry is playing a major role in assisting

agricultural activities of the farmers. Which company is

providing good services and which one is better for the

farmers. Through which method farmers purchase tractors,

shall be emphasized.
CHAPTER-3
RESEARCH METHODOLOGY

The market in search is broken up in the following

categories:

• Research Design

• Sampling Plan

• Research Instrument

• Data Collection Method

• Analysis and Interpretation

Research Design :

Research design is a specification of method and

procedures for acquiring the information needed. It is a frame

of study that is used as a guideline in collecting and analyzing

data. It help the researcher to conduct the study by ensuring

the economical procedure are employed and probing relevant

problems.

Research design has been divided into the three

following parts :

Exploratory Research Design

Descriptive Research Design

Casual Research Design


(i) Exploratory Research :

Data can be gathered by observation and focus group

research. There are best-suited steps for exploratory

research.

(ii) Descriptive Research:

Descriptive research is done through survey method.

Research companies conduct survey to learn about people

knowledge, beliefs, attitude satisfaction and so on to measure

these magnitude in a general population.

(iii) Casual Research:

Here the judgment are mostly based upon scientific

method and an experimental research. The facts are

examined in laboratory under different scientific methods

and statistical techniques. This is also called the

experimental research.

In the present studies Descriptive research approach

has been adopted. The data has been collected through

survey method.

Research Instrument :

Marketing researcher have choice or have two main

research instruments for collecting Primary Data as

Questionnaire and Mechanical devices.

Questionnaires :
A questionnaire consist a set of question presented to

respon-dents for their answer because of it’s flexibility the

questionnaire is by far the most common instrument used to

collect primary data . Questionnaire needed to be carefully

developed, tested and debugged before these are

administered on a large scale.

Mechanical Instruments :

Mechanical device are used less frequently in research.

These instruments are galvanometers, eye-camera,

audiometer etc. In the present study questionnaire with open

ended questions is selected as a research instrument.

SAMPLE PLAN :

After deciding on the research approach and

instruments the researchers must prepare a sample design.

This calls for three decisions:

(i) Sampling Unit :

Who is to be surveyed (Sampling Unit )? The Sampling

unit define the target population that will be sampled in this

study, we concentrated on farmers at Sirsa. A sample frame

was developed. Under which every one in the target population

has an equal chance of being sampled.

(ii) Sample Size :


How many people should be surveyed ? Here a sample

size of 100 has been considered, which is the best

representative of the total population.

(iii) Sampling Procedure :

How should the respondends be chosen ? (Sampling

Design).To obtain a representative sample, a probability

sample of the population should be drawn. In this survey both

probability and non probability sampling has been adopted.

The consumers are selected by the following method :

Simple Random Sampling

This is the part of probability sampling. In this each

member of population has an equal chance to be get

selected.

Convenience Sampling :

The researcher select the most accessible population

member from which to obtain information

Judgment Sampling :

The researcher uses judgment to select population

members who are good prospects for accurate information.

Cluster Sampling :

The population is divided into mutually exclusive

group(such as city zone) and the researcher draws a sample

of the group for interview.


SOURCES OF DATA :

After identifying and defining research problem,

determining specific information required to solve the

problem, the researcher look for the type & sources of data

which may yield the desired result for the stated objectives.

The sources of data are varied, which depend upon the

nature of study. Data can be distinguished into :-

(i) Primary Data

(ii) Secondary Data

Primary Data :

Primary data are those which are collected afresh and

for the first time and thus happens to be original in

characters. Primary data refer to information that is

generated to meet specific requirements of investigation at

hand. The primary data are classified as :

Observation

Interview

One of the most popular and widely used techniques of

data collection used in field survey in the questionnaire of

schedule.

A questionnaire is a form containing a series of question

and providing space for their replies to be filled in by the

respondent himself.
There are two type of questionnaire viz.

• Structured Questionnaire

• Unstructured Questionnaire

Structured Questionnaire are those, in which the

question to be asked from the respondents and the

instructions to be followed during the interviews are very

precisely stated in advance.

Unstructured Questionnaire are those, which specify

only the broad areas of subject and not the form or sequence

of questions.

Schedule is the name given to a set of questions,

which are asked & filled in by an interviewer in a face to face

situation with another person. A schedule is therefore just the

same as questionnaire as far as the set of questions is

concerned. Since the investigator himself fills schedule

himself it is more convenient in field handling. In the present

research the data is collected through Schedule consisting

structured questionnaire.

In this the target responds are farmers at Sirsa district.

Secondary Data :

The secondary data relate to the information obtained

from various sources which have already taken efforts of

gathering, assimilating, classifying and presenting them.Such


data may provide some kind sparks, fillers and supportive

evidences to the study on hand. The likely source of

secondary information may be Company Record, Competition

Files, Research Agency Reports, Trade Journals,

Newspapers / General Magazines, Latest books and Research

papers, Trade Association and in house Publications,

Government Publication & Departmental Statistical.

All the records that have been used for the present

study have been acknowledged in the Bibliography section of

the report.

Objective of Study

For the purpose of completion of the project Sirsa area was

chosen in the state of Haryana. This district is rich in terms of

economic growth, rural income and human development. So

generalization based on the study can be made for whole of

population of the state. The objectives of the study are as

follows:-

 To know about the important factors which affect the

tractor purchase.

 To know the effectiveness of advertisement in tractor

purchase.

 Effect of reference group on tractor purchase.


 To analyze the consumer behavior of farmers towards the

tractor buying

Limitations of the study

1. The sample size is not the representative of the

population under consideration.

2. The time to go for such type of complete study was not

enough.

3. The information provided by the respondents may be

biased and the communication related problem and

avoidance towards filling of questionnaire might affect

the results.

4. The money related resources are always not enough.


CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

1. Which tractor do you have?

Eicher 32
Hindustan 11
HTM 34
Any other 23

35 34
32
30
25 23
20 Eicher
Hindustan
15 HTM
11
10 Any other

5
0

Interpretation :

Out of the 100 respondents 34 respondents were having

HTM tractor, followed by 11 respondents having Hindustan


and 32 respondents with Eicher Tractor however, 23

respondents were having other companies tractors.

2. Which factor compels you to buy this tractor?

Advertisement 44
Fame 25
Quality 19
Any other 12

45 44
40
35
30
25 Advertisement
25
19 Fame
20
Quality
15 12 Any other
10
5
0

Interpretation:

Out of the 100 respondents 44 respondents were

influenced by HTM advertisement, followed by 25

respondents by fame and 19 respondents by quality

however, 12 respondents were influenced by other factors.


3. From how many years you are using tractor?

Less than one year 32


1 to 3 years 44
More than three years 24

44
45
40
35 32
30 Less than one
24 year
25
1 to 3 years
20
15 More than
10 three years
5
0

Interpretation:

Out of the 100 respondents 44 respondents were having

tractor between 1 to 3 years, followed by 32 respondents by

having less than 1 years and 24 respondents more than 3

years

4. Have you purchased the brand new or the second hand?


Cash 28
By Loan 72

80 72
70
60
50
40 Cash
28 By Loan
30
20
10
0

Interpretation:

Out of the 100 respondents 72 respondents admitted that

they purchased their tractor with loan from the bank, on the

other hand rest of the respondents purchased with their

own funds.

5. What is the main purpose of its purchase?


Farming 71
Transportation 24
Other purpose 5

80
71
70
60
50
Farming
40
Transportation
30 24 Other purpose
20
10 5
0

Interpretation:

Out of the 100 respondents 71 respondents admitted that

they purchased their tractor for farming purpose, followed

by 24 respondents who purchased for transportation

purpose, however, only 5 respondents had their own

reasons for this purchase.

7. Which source of loan you use?

Private loan 3
Bank loan 61
Co-operative loan 8

70
61
60

50
Private loan
40
Bank loan
30

20 Co-operative
loan
10 8
3
0

Interpretation:

Out of the 72 respondents who purchased the tractor

with loan 61 respondents obtyained loan from the bank

however, 8 respondetns purchased their tractor through

loan from cooperative societies and 3 respondents have

arranged private lending of money.

8. Who influence you to buy this tractor?

Dealer 6
Family/Friend 22
Own 70
Any other 2
70
70

60

50

40 Dealer
Family/Friend
30 Own
22
20 Any other

10 6
2
0

Interpretation:

Out of the 100 respondents who purchased the tractor

admitted that they purchase tractor with their own idea,

however, 22 were motivated by their family/friend, 6 were

motivated by dealer and 2 from other sources.

9. Do you received any complaint regarding your brand?

Yes 14
No 86
86
90
80
70
60
50
Yes
40 No
30
20 14
10
0

Interpretation:

Out of the 100 respondents who purchased the tractor 14

admitted that they received some complaint in their brand,

however, 86 respondents did not receive any complaint

10. Whether your complaint was resolved?

Yes 8
No 6
8
8
7
6
6
5
4 Yes
No
3
2
1
0

Interpretation:

Out of the 14 respondents who received any complaint in

their brand, 8 admitted that their complaint was resolved by

the company, however, 6 respondents did not get their

complaint rectified.

11. Are you satisfied with the services of your dealer ?

Yes 82
No 18
90 82
80
70
60
50
Yes
40 No
30
18
20
10
0

Interpretation:

Out of the 100 respondents 82 respondents were

satisfied with the services rendered by their dealer,

however, 18 respondents were not satisfied with the

seirvices of their dealer and were having complaint for

them.

12. Which factor do you consider while purchase of this

tractor?

Price 29
Fuel efficiency 24
Company goodwill 35
Any other 12

35
35

30 29
Price
25 24

20 Fuel efficiency

15 Company
12
goodwill
10
Any other
5

Interpretation:

Out of the 100 respondents 35 respondents were

bewitched by the company's goodwill, 29 respondents go

for price, 24 respondents look fuel efficiency and 12

respondents see other characteristics.

13. If exchange offer is provided, would you change

tractor with new one?

Yes 17
No 83
90 83
80
70
60
50
Yes
40 No
30
17
20
10
0

Interpretation:

Out of the 100 respondents 83 respondents flatly

declined the idea of exchange offer if being offered to them,

however 17 respondents were happy if such scheme is

provided to them.

14. Where you consider your tractor in monetary

terms?

Too expensive 11
Expensive 44
Economical 45
44 45
45
40
35
30
25 Too expensive
20 Expensive
15 Economical
11
10
5
0

Interpretation:

Out of the 100 respondents 45 respondents consider

their tractor economical; however 44 respondents consider

their tractor expensive. On the other hand 11 respondents

consider it too expensive.

15. Any suggestion for your company

 The company should go for more power by keeping the

fuel efficiency in mind.

 Power braking and power handling should be there in the

new models of the tractor for better control.


 Companies tractor should concentrate on balance of front

wheel

CHAPTER-5

FINDINGS AND SUGGESTIONS

Findings

⇒ Out of the 100 respondents 34 respondents were

having HTM tractor, followed by 11 respondents having


Hindustan and 32 respondents with Eicher Tractor however,

23 respondents were having other companies tractors.

⇒ Out of the 100 respondents 44 respondents were

influenced by HTM advertisement, followed by 25

respondents by fame and 19 respondents by quality

however, 12 respondents were influenced by other factors.

⇒ Out of the 100 respondents 44 respondents were

having tractor between 1 to 3 years, followed by 32

respondents by having less than 1 years and 24

respondents more than 3 years

⇒ Out of the 100 respondents 72 respondents

admitted that they purchased their tractor with loan from

the bank, on the other hand rest of the respondents

purchased with their own funds.

⇒ Out of the 72 respondents who purchased the

tractor with loan 61 respondents obtyained loan from the

bank however, 8 respondetns purchased their tractor

through loan from cooperative societies and 3 respondents

have arranged private lending of money.

⇒ Out of the 100 respondents who purchased the

tractor admitted that they purchase tractor with their own

idea, however, 22 were motivated by their family/friend, 6

were motivated by dealer and 2 from other sources.


⇒ Out of the 100 respondents who purchased the

tractor 14 admitted that they received some complaint in

their brand, however, 86 respondents did not receive any

complaint

⇒ Out of the 14 respondents who received any

complaint in their brand, 8 admitted that their complaint

was resolved by the company, however, 6 respondents did

not get their complaint rectified.

⇒ Out of the 100 respondents 35 respondents were

bewitched by the company's goodwill, 29 respondents go

for price, 24 respondents look fuel efficiency and 12

respondents see other characteristics.

⇒ Out of the 100 respondents 45 respondents

consider their tractor economical; however 44 respondents

consider their tractor expensive. On the other hand 11

respondents consider it too expensive.

Suggestions

 The company should go for more power by keeping the

fuel efficiency in mind.

 Power braking and power handling should be there in the

new models of the tractor for better control.


 More and effective advertisement should be given

especially in TV and News Paper

 Companies tractor should concentrate on balance of front

wheel
Bibliography

• Kotlar & Armstrong, Philip & Gary (March 2001),

Principles of Marketing, 9th edition, Prentice Hall of

India Pvt. Ltd. , New Delhi.

• Kothari C.R. (2002), Research Methodology, 2nd

edition Wishwa Prakashan, New Delhi.

• www.google.com

• www.agroequips.com
Analysis of buying Behavior of Rural Customers
Regarding Tractors
Questionnaire

1. Which tractor do you have?


2. Which factor compels you to buy this tractor?
3. From how many you are using tractor?
___________________________________________________________
4. Have you purchased the brand new or the second hand?
___________________________________________________________
5. What is the main purpose of its purchase?
Farming [ ]
Transportation [ ]
Other Business Purpose (Please specify)
6. What is the mode of purchase?
Cash [ ] Loan [ ]
Both [ ]
.7. Which source of loan you use?
Private loan [ ] Bank loan [ ]
Co-operative loan [ ] Any other
[ ]
7. Who influence you to buy this tractor?
Dealer [ ] Friend [ ]
Family [ ] Own [ ]
Relative [ ] Any other [ ]

8. Which media are you most exposed?


Magazine [ ] News Paper [ ]
Radio [ ] TV [ ]
Any other [ ]
9. Do you see advertisement?
Yes [ ] No [ ]
10. From where you got the information about the tractor?

Magazine [ ] News paper [ ]


Radio [ ] TV [ ]
Any other [ ]

11. Which factor do you consider while purchase of this


tractor?
Price [ ] Power [ ]
Fuel efficiency [ ] Handling [ ]
Company goodwill [ ] Finance Schemes [ ]
Relationship with dealer [ ]
12 Rank your dealer’s service (out of five)
_________________________________________________________

13 If exchange offer is provided, would you change tractor


with new one?

Yes [ ] No [ ]

14. Where you consider your tractor in monetary terms?


Too expensive [ ] Expensive [ ] Economical [ ]
15. Any Suggestions
. …………………………