Académique Documents
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Submitted By:
NAROTTAM KUMAR
Roll No.-MBA/1089/09
&
ANUBHAV
Roll No.-MBA/1046/09
Of
Functional Project
DEPARTMENT OF MANAGEMENT
RANCHI – 825251
1
Certificate Of Internal Guide
This is to certify that project titled --Study on Consumer Buying Behavior & Satisfaction
Level for Hero Honda Motorcycle with reference to Ranchi city in Jharkhand is a
bonafide work carried Out by Mr. Narottam Kumar & Anubhav a candidate for the
award of Master of Business Administration of Birla Institute Of Technology,Mesra,Ranchi
under my guidance and direction.
PLACE Name:
Designation: HOD
2
ACKNOWLEDGEMENT
Concentration, dedication, hard work and application are essential but not the only factor to
achieve the desired goal. Those must be supplemented by the guidance assistance and
cooperation of experts to make it success. I am extremely grateful to my institute for
providing me the opportunity to undertake this research project in the prestigious field. With
profound pleasure, I extend my extreme sincere sense of gratitude and
indebtedness to Mr.Hemant Jain (Founder of Auto Bikes) for extensive and valuable
guidance that was always available to me ungrudgingly and instantly, which help me
complete my project without difficulty. I express my deep and sincere gratitude to Mr. Nitin
Kumar (Sales Manager of Auto Bikes) for providing me firsthand knowledge. Last but not
the least I am indebted to Prof.Dr. S.K Bose, Director, of our institute and my project guide
Prof. Anand Prasad Shinha without whose sincere gratitude this project would not have been
possible. I am thankful to all of my friends and batch mates for their help in completing this
project work. Finally, I am thankful to my entire family members for their great support and
encouragement.
3
CONTENTS
I Rationale of study 1
Resarch design
Data collection
method/sources
Sampling plan
Appendix 54
Questionnaire 55-59
4
CHAPTER – I
5
Two Wheeler Auto Mobile’s Introduction
Throughout the centuries man has striven to expand his capabilities through the use of
machine. His ever inventive mind has constantly devised ways to use tool to
increase his abilities to explore the world around him. To go faster, deeper, higher and
further than before was it. Coupled with his need to find new thrills, new adventures
and new modes of transportation, the invention refinement of the motorcycle
seems an inevitable outcome. It would seem that Michelangelo conceived of the bicycle as
early 14th century. And his drawing shows a remarkable resemblance to he modern day bike.
It had wheels of similar size and even pedals and chain. Albeit made without any apparent
means of steering. Through never built, it was a remarkably clever design, and early bicycle
makers would have done well to study his concepts, there have, in fact been 4 machines built
based on his drawing, attesting to the viability of his design. It wasn‘t until 1869 that the first
serious attempts were made to produce motor driven bicycles. These very first were powered
by steam, and driven by leather belts or as in the case of the roper steam velocipede of 1869
by a system of levers attached to a crank on the driven wheel. In 1885 the Daimler,
Europe this is consider by many as the first true motorcycle or motor bicycle,
as it was the first to employ an internal combustion engine and was designed from the ground
up to be motor powered. Designed by gottlibe Daimler it was powered by an
Otto cycle engine producing about ½ horse powers. Note this design again
employed wooden wheels and Daimler dropped the twist grip controls from his 1877
design in favor of leavers on the frame. In 1894, Hildebrand and Wolfmuller, France Worlds
produce first motorcycle. It came with a 1428 cc water cooled four-stroke motor producing
2.5 bhp. And speed of 25 mph. In 1898 orient-Aster, USA the American made production
motorcycle was this entry built by the Metz Company, in Waltham, mass, it used an aster
engine that was a French copy of the Metz Company, in Waltham, mass.
6
Introduction of India Two wheeler’s Company
Bikes or two wheelers in India cater to various needs of the consumers. With the choice of
the Indians improving from bicycles to two wheelers, the Indian two-wheeler market has seen
a significant growth over the years. Now owing a bike has become a must for most Indians.
Even if people own a car they prefer to have a bike as it is very economical and fuel efficient.
With the growth in the economy the demand for two wheelers is increasing over the years. It
is one of the most dynamic industries today and with the increasing competition companies
are bringing in new products with sophisticated technologies and innovative features to
capture a major pie of the Indian market and it‘s the consumer who is benefited from it..
With the availability of reduced consumer loans and high disposable income the Indian two-
wheeler industry has perceived an exceptional growth over the past few years thereby making
India the second largest market for two wheelers in the world only after China. The
motorcycle has now become one most popular mode of transportation among the Indian
middle class families because of it is cost effective, economical and easy to navigate through
the traffic.
Moreover, the people have started preferring bikes instead of scooters and mopeds
and today bikes form a major part of the Indian two wheelers. Indian companies are one of
the largest two wheeler manufacturers in the world. The number one bike manufacturer in
the world, Hero Honda is in close competition with the Indian manufacturer
Bajaj India. The motorcycle industry in India has witnessed a tremendous change in the 90‘s
with the invention of 4 stroke engine which makes the bikes more fuel efficient. Further
companies are trying to bring in more innovations to make the motorcycle ride more
comfortable, safe and user friendly and economical. In a nut shell the followings
factors can be distinguished for the growth of motorcycle industry in India:
7
Convenience with regards to commuting as compared to the public transport system.
Introduction of Study
Selling of any product, there is needed to build relationship with customer. For building
relationship there is need for knowing the customer behavior and how will be they satisfied?
This project is undertaken to know the customer behavior & satisfaction level
for Hero Honda Motorcycle in Supreme Auto (at Ranchi) Also through this project get
awareness that which factors affect on the selling of bike mainly in the rural area. Because
the area where project was undergoing, it is almost rural area and most population income
depends on agriculture or its products. There were some limitations while doing the project.
The data was collected by personal interviews of the respondents.
It was very challenging to fill up the questionnaire as most of the population comes from
rural back ground. As it was the rural area we were supposed to explain each and every
question of the questionnaire. Also many of them did not show any interest in filling
questionnaires. This study will help Hero Honda to know the most popular way by which
they are providing services and quality to the customers and to know various customers
Perceptions. From the study, we found that, the customers were highly satisfied with the
products and service of Hero Honda, but there were some complaints regarding after sales
service and staff of Hero Honda. It was found that Hero Honda Motorcycle is having a good
brand image in the market. Most of the respondents considered Hero Honda showroom is one
of the best places to purchase of Motorcycle. The present is the era of customers. Customers
are more knowledgeable than ever before and because the customer is more knowledgeable,
companies must be faster, more agile and more creative than few years ago. So
companies should strive to enhance customer satisfaction through knowing
their expectations regarding products. Hero Honda should improve on their after sales
support, and have knowledgeable support staff. Also Hero Honda should increase the range
of its targeted market.
8
CHAPTER – II
9
Title of the Project
In today‘s world customer is the key of the success of any business. So, Customer behavior
and its satisfaction level play very key role to sale of the product. That‘s why we decide to
keep the project title related this key factor called --Study on consumer buying behavior and
satisfaction level for Hero Honda Motorcycle with reference to Ranchi in Jharkhand”.
Main purpose of the study was to know the customer buying behavior and demand into the
minds of customer of Ranchi because always customers say something and does something.
At the same time as there are many companies manufacturing motorcycles, idea about
thinking of customer on whether, what, how, and for whom to purchase the motorcycle.
Therefore, research is required to measure present consumer buying behavior at the purchase
of Hero Honda bike. so the researcher problem is to identify what are the criteria that
prospective customer takes into consideration before buying the motorcycles. Also
10
Objective of the Study
gender, income
To study whether customers are satisfied with staff and service or not?
SCOPE OF STUDY
This study has been made to find the level of satisfaction the customer
11
CHAPTER – III
12
HERO HOND PROFILE
Logo
Hadequaters Haryana,india
13
HERO HONDA HEADQUARTERS
Industry Automotive
Product
Motorcycles, Scooters
Revenue
U$ 2.8 billion
Website http://www.herohonda.com/site/home/home.asp
Board Of Director
14
4 4 Mr. Sumihisa Fukuda Technical Director
The joint venture between India's Hero Group and Honda Motor Company, Japan has not only
created the world's single largest two wheeler company but also one of the most
successful joint ventures worldwide.
15
During the 80s, Hero Honda became the first company in India to prove that it was possible to
drive a vehicle without polluting the roads. The company introduced new
generation motorcycles that set industry benchmarks for fuel thrift and low emission. A
legendary 'Fill it - Shut it - Forget it' campaigncaptured the imagination of commuters across
India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage.
Over 20 million Hero Honda two wheelers tread Indian roads today. These are almost as many
as the number of people in Finland, Ireland and Sweden put together!
Hero Honda has consistently grown at double digits since inception; and
today, every second motorcycle sold in the country is a Hero Honda. Every 30
seconds, someone in India buys Hero Honda's top -selling motorcycle – Splendor. This
festive season, the company sold half a million two wheelers in a single month—a feat
unparalleled in global automotive history.
Hero Honda bikes currently roll out from its three globally benchmarked manufacturing
facilities. Two of these are based at Dharuhera and Gurgaon in Haryana and the third state of
the art manufacturing facility was inaugurated at Haridwar, Uttrakhand in April this year.
These plants together are capable of producing out 4.4 million units per year.
Hero Honda's extensive sales and service network now spans over 3000 customer touch points.
These comprise a mix of dealerships, service and spare points, spare parts stockiest and
authorized representatives of dealers located across different geographies.
Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda
Passport Program, one of the largest programs of this kind in the world, has over 3 million
members on itsroster. The program has not only helped Hero Honda understand its customers
and deliver value at different price points, but has also created a loyal community of brand
ambassadors.
Having reached an unassailable pole position in the Indian two wheeler market, Hero Honda is
16
constantly working towards consolidating its position in the market place. The company
believes that changing demographic profile of India, increasing urbanization and the
empowerment of rural India will add millions of new families to the economic mainstream.
This would provide the growth ballast that would sustain Hero Honda in the years to come. As
Brijmohan Lall Munjal, the Chairman, Hero Honda Motors succinctly points out, "We
pioneered India's motorcycle industry, and it's our responsibility now to take the industry to the
next level. We'll do all it takes to reach there.''
Mission: Hero Honda‘s mission is to strive for synergy between technology, systems and
human resources, to produce products and services that meet the quality, performance and
price aspirations of its customers. At the same time maintain the highest standards of ethics
and social responsibilities
.This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.
17
Deluxe Splender+ Designed to excel 97.2 cc
Dealer Profile
Mr Hemant Jain is the founder of Auto Bikes which is the oldest authorised dealer of Hero
Honda Motorcycles Ltd in Ranchi city. It is situated in the heart of the city main road.
Trust
Satisfaction
Passion
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VISION
To make Supreme Auto the dominant for best service provider & dealer built
on trust by all class people. This we hope to achieve by:
Understanding the needs of customers and offering them superior products and
service
Leveraging technology to service customers quickly, efficiently and conveniently
Providing an enabling environment to foster growth and learning for our employees
And above all, building transparency in all our dealings.
MISSION
Understanding the needs of customers and offering them superior products and
service
Building long lasting relationships with their customers & HHML.
Providing an enabling environment to foster growth and learning for their employees
19
AUTO BIKES’S STRUCTURE
DEALERS’ TIE UP
Auto Bikes provides facilities of finance & insurance to the customer
at a time. So customers does not need to go anywhere for loan &
insurance
20
Finance Tie up
HDFC
ICICI Bank
Insurance Tie up
ICICI LOMBARD
United India Insurance
Achievements
During 2008 & 2010 it got award for best service provider of all
over the india.
CHAPTER-IV
21
Review Of Literature
CUSTOMER BEHVIOUR
The main aim of marketing is meet and satisfy target customers need and wants
buyer behavior refers to the peoples or organization conduct activities and
together with the impact of various influence on them towards making
decision on purchase of product and service in a market. The field of consumer
behavior studies how individuals, groups and organization select, buy, use and
dispse of goods, service, ideas, or experience to satisfy their needs and desires
22
understanding consumer behavior and knowing customer are never simple.
The wealth of products and service produced in a country make our economy
strong. The behavior of human being during the purchase is being termed
as --Buyer Behavior|. Customer says one thing but do another. They may
not be in touch with their deeper motivations. They are responding to
influences that change their mind at the last minute. A buyer makes take a
decision whether save or spend the money.
1. Problem identification:-
The buying process starts when the buyer recognizes a problem or need. The
need can be triggered by internal or external stimuli. Marketers need to identify
the circumstances that trigger a particular need. By gathering information from
a number of consumers, Marketers can identify the most frequent stimuli that
spark an interest in a product category. They can then develop marketing
strategies that trigger consumer interest.
2. Information Search:-
23
of commerce, telephone directory, tradefair etc. Marketers should find out the
source of information and their relative degree of importance to the consumes.
ource of information and their relative degree of importance to the consumes.
Personal Sources:
Commercial Source:
Public sources:
3. Evaluation of alternative:-
There is no single process used by all consumers by one consumer in all buying
situations. There is several First, the consumer processes, some basic concepts
are: First, the consumer is trying to satisfy need. Second, the consumer is
looking for certain benefits from the product solutions. The marketer must
know which criteria the consumer will use in the purchase decision.
From among the purchase of alternatives the consumer makes the solution. It
may be to buy or not to buy. If the decision is to buy. The other additional
decisions are:
24
Which types of bike he must buy?
The marketer up to this stage has tried every means to influence the purchase
behavior, but the choice is properly consumers. In the evaluation stage the
consumer forms preferences among the brands in the choice set. The consumer
may also form an intention to but the most preferred brand.
After purchase the product, the consumer will experience the same level of
product. The Marketer‘s job not end when the product is buying must monitor
post-purchase satisfaction, post-purchase action, post-purchase use and disposal
The marketer should also monitor new buyers use and dispose of the product. If
the consumer store the product in a close, the product is probably not very
satisfying. If the consumer throws the product away, the marketer needs to
know how they dispose of it; especially it can be hurt the environment.
25
Characteristic of Buyer Behaviors
(2) It includes both observable activities such as walking through the market to
examine merchandise and making a purchase and mental activities-such as
forming attitudes, perceiving advertising material, and learning to prefer
particular brands.
(3) Consumer behaviors are very complex and dynamic to constantly changing.
And therefore, management need to adjust with the change otherwise market
may be lot.
(4) The individuals specific behaviors in the market place is affected by internal
factor, such as need , motives, perception, and attitudes, as well as by external
of environmental influences such as the family social groups, culture,
economics and business influences.
26
Stimulus - Response model for buyer behaviour
Marketing
Buyer Response
Stimulus
Product Product Choice
27
CHAPTER-V
Research Methodology
28
Research design
A research design is the detailed blue print used to guide a research study
towards its objectives. It helps to collect, measure and analysis of data.
The present study seeks to find out the consumers attitude towards buying of
bike. The study also aims at findings out the drawbacks of the marketing set up
of Hero Honda. So this makes the
Type of Research
Nature of Research
Types of Question
The types of question asked during the study are --Straight forward and limited
probing|.
29
Sources of Data
Secondary Source
In this study the secondary data is collected from the following sources.
1. Company‘s website
2. Reports of Company
Primary Source
Research Technique
In this study the --survey method| is used as a research technique. This method
helps to obtain right information from respondents.
Contact Method
In this study --Personal Exit interview| it is taken as a tool for the contact
method. In which the personal interview is conducted with customers of
Westside.
30
Sampling plan
Sampling is a process of obtaining. The information about the entire population
by examine a part of it .The effectiveness of the research depends on the sample
size selected for the survey purpose.
(A) Population:-
(B)Sampling Unit:-
(C)Sample size:-
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(F) Sample Duration
Research Instrument
32
CHAPTER-VI
33
1.AGE WISE CLASSIFICATION
Data:
34
Analysis:
Interpretation:
Above Graph shows are 30% of respondent in age group of 18-20, 37%of respondent in age
group of 21-25, 15% of respondent in age group of 26-30, 7% and 5% respondent are come
in 36- 40 and 41&above.
35
2.0CCUPATION WISE CLASSIFICATION
Data;
Analysia;
Interpretation
Data:
Analysis:
37
Interpretation:
4. SOURCES OF FINANCE
38
Data:
Finance
Agriculture 31 16 47
Student 11 17 30
Business 10 2 12
Profession 3 5 8
Others 1 2 3
Total 46 54 100
Analysis:
Interpretation:
39
Above Graph shows that 54 people purchase Hero Honda Bike by
Loan and 46 people purchase Hero Honda Bike by Cash.
5. MEDIUM OF SOURCES
Data:
Others 48 48
Analysis:
40
Interpretation:
Above graph shows that 48 % respondents are come to know from the =other‘.
Then 26 % respondents are come to know from the =friends‘. 14 % & 12 %
respondents are come to know from the T.V.Advertisement & news paper.
Analysis:
41
Interpretation:
Above graph shows that the majority of customers are agreed on the
advertisement creates more awareness of showroom and very few of
customers are disagreed.
42
Data:
Analysis:
43
Interpretation:
Above Charts shows that 51 respondents are using Hero Honda Company‘s
Motorcycle. And 16 respondents are using Bajaj bikes.
44
Sources No. of respondents Percentage (%)
Father 46 46
Self 42 42
Mother 10 10
Others 02 02
Total 100 100
Analysis
Interpretation:
45
Data:
Weight age 6 5 4 3 2 1
Attributes Excellen Very Good Average Poor Very Total Total
t good poor score
Price 30 20 18 16 10 06 100 426
Less 18 11 17 30 13 11 100 358
maintenanc
e
Style 21 18 19 10 11 21 100 355
Durability 10 17 16 24 21 12 100 335
Mileage 24 19 14 17 09 17 100 381
Easy 20 12 21 23 10 14 100 367
Driving
Brand 17 19 14 21 17 12 100 362
Reputation
Color 28 19 18 13 10 12 100 405
Pick up 19 22 15 20 14 10 100 382
Total 187 157 152 174 115 115 900 3370
Analysis
46
Interpretation: Above chart show that more no of respondents are give more
weight age to the price and color.
Availability 30 24 18 16 12 100
After Sales 16 35 24 15 10 100
reponse
Knowledge 20 21 23 20 16 100
Of Sales man
Service 25 18 27 19 11 100
Infrastructure 12 29 20 17 22 100
Total 103 127 112 87 71 500
Analysis:
48
Interpretation:
Above chart shows that 30 respondents out of 100 give Weight age
on availability is excellent and second 35 respondents out of 100 give weight
age on after sales response is Very Good, 23 respondents give weight age on
Knowledge of salesman is good, 27 respondents give Weight age on services is
good, 29 respondents give weight age on Infrastructure is Very Good.
49
MOST.
CashDiscount 11 21 19 34 15 100
AnniversaryOffer 14 13 12 20 41 100
Data:
Analysis:
50
Interpretation:
Above graph shows that in festival offer 43 respondents out of 100 are give a
excellent, then in exchange offer 31 respondents out of 100 are give
a very good rank, in special gift 30 respondents are give a good rank, in
cash discount 34 respondents are give a average rank
Data:
51
Attributes 1st 2nd 3rd 4th 5th Total
Mileage 31 26 15 18 10 100
Available 14 25 32 16 13 100
Price 22 16 42 11 09 100
Pick up 17 18 29 21 15 100
Color 20 24 26 10 20 100
Analysis:
52
Interpretation:
Above graph show that respondents give more importance to the mileage then after they give
more importance to the price for purchasing motorcycle of Hero Honda. Respondents give
poor rating in availability of motorcycle as per their requirement and pickup attributes.
CHAPTER-VII
53
Findings
Findings
54
In current market scenario, respondents give maximum no. of weight age to
price then after they consider mileage and colors respectively.
The study shows that more no. of respondents have connected as sources of income
from agriculture.
The study shows that 51 respondents are already user of Hero Honda motorcycle. So
Hero Honda is popular automobile company in study region.
?The study show that 48 respondents are come to know from --others| and 26
respondents are come to know from --friends| about Hero Honda bike.
The study shows that 55 respondents are purchase Hero Honda bike by Loan and 45
respondents are purchase Hero Honda bike by cash.
The study shows that 31 respondents are give more points to mileage.
The study shows that 46 respondents‘ father take a decision to purchase bike And 42
respondents take a self decision to purchase bike.
The study shows that 30 respondents are give rank to availability of show rooms and
35 respondents are give rank to service.
The study shows that 43 respondents are giving excellent to festival
offer and 41 respondents are give poor rank to the anniversary offer.
SUGGESTIONS
CHAPTER-VIII
55
Limitations
56
Research work was carried out in Ranchi city of Jharkhand only the finding may not
be applicable to the other parts of the country because of social and cultural
differences.
The views of the people are biased therefore it may not be reflecting true picture.
57
Appendix
Questionnaire
58
CUSTOMER PERSONAL INFORMATION:-
A. Name: - ___________________________________________
B. Address:-___________________________________________
___________________________________________
___________________________________________
C. Contact No.:-__________________________________________
18 to 20 ( ) 21 to 25 ( )
26 to 30 ( ) 31 to 35 ( )
36 to 40 ( ) 41 & above ( )
F. Occupation:-
Agriculture ( ) Businessman ( )
Students ( ) Professional ( )
Others ( )
G. monthly income:-
5000 ( ) 5000-10,000 ( )
10,000-15,000 () 15,000-20,000 ( )
20,000 Above ( )
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1 Do you have own bike?
If yes than,
Company ____________________
bikes?
60
(A) Father ( ) (B) Mother ( )
Attributes 6 5 4 3 2 1
Price
Less
maintenance
Style
Durability
Mileage
Easy driving
Brand
reputation
Color
61
Attributes Excellent Very Good Good Average Poor
Availability
Knowledge of Sales
person
After sales
response
Services
infrastructure
Festival
offer
Exchange
offer
Special
gift
Cash
discount
10. Give the rank of given bellow features which consider at the time of
purchasing bikes on priority base.
62
Attributes 1st 2nd 3rd 4th 5th
Mileage
Available
Price
After service
Pick up
(E) Useless ( )
______________________________________________________________
_____________________________
Sign.___________________
Date.___________________
BIBLIOGRAPHY
63
Book Name Author Edition Publication
www.herohonda.com
www.nissparta.com
www.google.com
Websites
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