A Study On Consumer Behaviour Towards Hero Honda: Bachelor of Business Management Mr.P.Hanumantha Raju

A STUDY ON CONSUMER
BEHAVIOUR TOWARDS HERO

HONDA
Dissertation submitted to the
SRI KRISHNADEVARAYA UNIVERSITY
In partial fuillment of the requirements
For the award of the degree of
BACHELOR OF BUSINESS MANAGEMENT

Submitted by
Mr.P.HANUMANTHA RAJU
Reg.No.9085121
SRI VASAVI INSTITUTE OF MANAGEMENT

S.D.G.S COLLEGE, HINDUPUR.
(Affiliated to Sri Krishnadevaraya University,
Anantapur)
RECOGNISED BY UGC UNDER SEC.2(F) & 12(B)
ADMITTED IN GRANT-IN-AID IN THE YEAR 1965
NAAC ACCREDIATED 'B' GRADE 2.58 CGPA
ISO 9001-2000
HINDUPUR - 515202. A.P
SVIM, HINDUPUR. Page No:1

Anantapur)
ISO 9001-2000
CERTIFICATE
This is to certify that the project work entitled
“A STUDY ON CONSUMER BEHAVIOUR TOWARDS HERO HONDA"
Has been successfully carried out by
Reg.No.9085121
Student of B.B.M.
Hindupur.
Submitted in partial fulfillment of the requirements for the
Award of the degree of
Bachelor of Business Management
Prescribed by Sri Krishnadevaraya University, Anantapur.

During the academic year 2010-2011
Sri………………….;
Principal,
S.D.G.S College,
Hindupur.

Anantapur)
ISO 9001-2000
CERTIFICATE
Reg.No.9085121
Student of B.B.M.
Hindupur.

Smt. B. PADMAJA,
Head of department,(BBM)
S.D.G.S College,
Hindupur.

Anantapur)
ISO 9001-2000
CERTIFICATE
Reg.No.9085121
Student of B.B.M.
Hindupur.

………………,
Project director,
S.D.G.S College,Hindupur.

CERTIFICATE
Date: 06-12-2010
This is to certify that Mr.P.HANUMANTHA RAJU Final year BBM

student of Sri Vasavi Institute of Management S.D.G.S. College, Hindupur, has
successfully completed the project report on the topic entitled “A STUDY OF
CONSUMER BEHAVIOR TOWARDS HERO HONDA”. The student has
worked with the guidance of M/S ESWAR AUTOS, the authorized main dealer
for TVS MOTOR COMPANY LTD, Hindupur.
She has successfully completed the project work and submitted the
report
We wish her all success in her career.
Chief Operating Person

EXECUTIVE SUMMARY

Customer is the central point for any marketing strategy of a firm. An attempt
is made to study intensive behaviors of the customers towards two wheelers with
respect to HERO HONDA.
The objective of the study is, to study the various factors influencing behind
the purchase of HERO HONDA. To study the features of HERO HONDA
(Performance). To study the customer satisfactions towards HERO HONDA. To give
the suggestion and recommendations towards HERO HONDA.
The tools used for data collection is questionnaire. The sampling until for the
study is customers of two wheeler from various parts of HINDUPUR town. The
sample size of the study is 100. The sampling technique used was convenient
sampling. The research methodology used is exploratory.
From the data collected by the respondents the summary of findings was
developed. Most of the HERO HONDA Customers says that the price of the bike is
high. It is found that the HERO HONDA Customers says that the mileage given by
the bike is 40-50. Most of the customers are influenced by the family factor.
Most of the customers purchased the bike for the reason of its Look & Style.
Most of the Customers Family income is between 1, 00,000 to 2, 00,000 per annum. It
is found the most of the customers of HERO HONDA belongs to the age group of 19-
24. Finally most of the customers say that their overall satisfaction regarding HERO
HONDA is very good.
The weight of the vehicle should be reduced. The price of the vehicle should
be reduced. Most of the customers wants colour mix combination. Mileage of the
vehicle should be increased. These are the suggestion should apply for the
improvement of the vehicle.

INTRODUCTION
The two-wheeler segment in the automobile industry plays a vital
role in India. The reason being, that a two-wheeler is affordable by middle
income/group in urban and semi-urban areas. It is also more convenient for
traveling short distances with in the city. Over the years the sales figures of
two-wheelers have increased to a very large extent. The sales of the two-
wheelers in 1950 were less, whereas now the total sales have shot up to lakhs
per year.
The two-wheeler market consists of scooters and motorcycles

mainly. The motorcycle segment forms 45% of whole segment, whereas earlier
the motorcycles had a very small share in the two-wheeler market. But with
the collaboration of the Indian companies and the Japanese companies
(Kawasaki, Suzuki, Honda) the share has increased tremendously with the
introduction of Indo-Jap motorcycles. The reason being, that these motorcycles
had a superior engine, better pick up, good mileage, low maintenance,
improved designs and large choice options. Most of the customers prefer two-
wheelers for efficient service. The motorcycle segment is divided into the two-
stroke category and the four-stroke category.
The two-stroke category consists of motorcycle such as Suzuki, all

models except Suzuki fiero, KB-125, Yamaha. Where as, the four strokes
category consists of two motorcycles like Hero Honda Yamaha, Bajaj. Earlier
in 1970, Due to the drastic increase in petrol prices, the customers started
preferring four stroke motorcycles to two stroke motorcycles. These
motorcycles are more fuel- efficient and they have a low maintenance cost.
Another reason for this change in preference is due to emission norms. The two
stroke motorcycles play a major role in air pollution. Whereas the four stroke
motorcycles go along with the international emission standards.

Marketing Concept Relevant to Present Study
MARKET
Market consists of all the potential consumers who have a particular

need or want and might be willing and able to engage in exchange to satisfy
that need or want.
MARKETING
Marketing management is the process of planning and

executing the pricing promotion and distribution of ideas, goods and services,
create exchanges that satisfy individual and organizational goals.
MARKETING MANAGEMENT
“Marketing is a set of human activities directed at facilitating and
consuming things”; the essence of marketing is exchange of products and the
transaction satisfies human needs and want. Marketing managers manage
demand by carrying out marketing research, planning, controlling, and
implementing the marketing activities. Within marketing planning,
marketers must make decisions on target markets, Market positioning,
pricing, distribution channels, product Development, etc.
Communication, Physical Distribution and Promotion
MARKET POSITIONING
Arranging for a product to occupy a clear distinctive and desirable

place relative to competing products are in the minds of the customers.
MARKET PLANNING

The specific purpose of market planning is to guide and facilitate the
marketing activities; marketing planning is synonymous with overall business
planning.
MARKET DEVELOPMENT
A strategy for a company growth by identifying new market for

company’s current products.
MARKET LEADER
The firm in an industry with the largest market share, it usually

leads other firms in price changes, new product introduction, distribution
coverage and promotion spending.
MARKETING CONCEPT
Only the marketing concept is capable of keeping the organization

free from marketing myopia. Marketing concept holds that the key to achieving
organizational goals consists of being more effective than competitors in
integrating marketing activities towards determining and satisfying the needs
and wants of target markets.
MARKETING CONCEPTS ON 4 PILLARS
 Target market
 Consumer needs`
 Integrated marketing
 Profitability
CONSUMER PERCEPTION

Perception is the process by which individuals select, organize &
interpret stimuli into meaningful & coherent picture of the world. Perception
has strategy implications for marketers, because consumers make decisions
based on what they perceive, rather than the basis of objective reality. The
lowest level at which an individual can perceive a specific stimulus is that
person’s absolute threshold.
Consumer’s selections of stimuli from the environment are based

on the interaction of their expectations and motives with the stimulus itself. The
principle of the selective perception includes the following concepts:- selective
exposure, selective attention, perceptual defense and perceptual blocking.
Consumers organize their perception and interest into unified

wholes according to the principles of Gestalt psychology.
The interpretation of stimuli is highly subjective and is based on

what the consumer expects to see in light of previous experience, on the number
of plausible explanations he or she can envision, on motives and interest at time
of perception, and on the clarity of the stimuli itself.
Just as individuals have perceived images of themselves, they also have

perceived images of the products and brands. The perceived image of a product
or service is probably more important to its ultimate success than its actual
physical characteristics. Products and services that are perceived favorably have
many chances of being purchased than those products or services with
unfavorable images.
Consumer strategies for reducing perceived risk include increased

information search, brand loyalty, buying a well known brand, buying from a
reputable retailer, buying the most expensive brand and seeking reassurance in
the form of money- back guarantees, warranties and free purchase trial. The
concept of perceived risk has products by incorporating risk reduction strategies
in their new product promotional campaigns.

Consumer goods:
Consumer goods are those goods, which are meant for direct
consumption by ultimate consumers and households.
For example car, television, radio, furniture, etc. There is a direct

demand for consumer goods. The demand for consumer goods is elastic.
Consumer goods are classified into three types:
• Convenience goods
• Shopping goods
• Specialty goods
OPERATIONAL DEFINITIONS OF CONCEPTS
Market:
Market consists of all the potential customers sharing particular

needs or wants who might be willing to satisfy their needs or wants.
Marketing:
It is a social and managerial process by which individuals and

groups obtain what they need and want though creating, offering and
exchanging products of value with others.
Consumers:
He is an individual who purchases or has the capacity to purchase

goods and services offered for sale by marketing institutions in order to satisfy
personal needs, wants and desires as consumer of different levels are scattered at
different places.

Consumer behavior:
It can be defined as the behavior that consumer’s display in search

of purchasing, using and evaluating products, services and ideas that they expect
will satisfy their needs.
Hence we can say that, consumer behavior is the behavior, which

influences their purchase decisions.
Seller:
One who includes and assists a prospective buyer to a commodity

or sequence or to act favorably upon an idea that has commercial significance to
him.
Brand:
A name, term, size, symbol or design or combination of them

intended to identify the goods or services of one seller/ marketer and to
differentiate them from competitors.
Necessity:
The need for basic items/ products without which a person cannot
manage his life.
Luxury:
The need for items/ products or need categories higher than

psychological and safety requirements ego satisfaction/ status need, not
affordable usually by the common social class.
Advertising:

Any paid form of non-personal communication of ideas, goods or
services by identified sponsor (marketer).
VARIOUS CATEGORIES IN AUTOMOBILES
No one product can meet the needs, wants and desires of the complete
market in universe. For every product market segmentation will result in
targeting the right customer and thus capture major market contributing to high
sales.
Market segmentation is done on the basis of the consumer’s

preferences tastes, like usage, purchasing power, application, etc. Thus
different customer groups can be grouped on the above basis. The Indian
automobile industry has over the years, grown in scale with a diversified product
range. This product range will cater to the needs of different customers.
The various types of automobiles manufactured in India are:
• Light Motor Vehicles

• Jeeps and Utility Vehicles
• Medium Commercial Vehicles
• Light Commercial Vehicles
• Three Wheelers
• Two Wheelers
The above categories are being made on the basis of product design,
payload etc; in addition, numerous shapes, and colors, sizes, utility and

applications form an intelligent choice to the consumer who can make a
purchase in parallel to his/her tastes, preferences and liking.
This also helps the manufacturer to define his business acute. Since
automobile industry is a core sector, it is beyond the reach of Indian
manufacturer to manufacture all the category type of vehicles; he decides to take
up the business in his capacity and cater to the demand in particular segment.
This also helps the manufacturer to stabilize and concentrate on the

business while being capable to compete in the competitive environment
adopting the latest technology and other developments taking place in any part
of the world.
HISTORY OF TWO-WHEELERS
The Indian two-wheeler sector is the largest in terms of volumes

among all the segments in the automobile industry. The segment can further be
categorized into three sub-segments-scooters, motorcycles and mopeds.
Lately, however, some products like scooters have been introduced

in the market, which have features of more than one segment. Five players
mainly dominate the two-wheeler segment. All these companies have foreign
collaborations mainly with well-known Japanese firms. These ventures set up in
the mid 80’s suffered heavily due to a sharp depreciation in rupee till the early
90’s. All these payers are now well established with about 95% intergeneration.
Bajaj Auto the local player with low cost advantage dominates the sector. All the
existing players have been expanding capacities and widening their product base
to include 4-stroke vehicles, which conform to Euro environmental norms.
Recently, Honda Corporation of Japan announced its intentions to set up a
100% subsidiary in India to manufacture scooters and motorcycles. India is one
of the lowest cost production bases for two-wheelers.

In the last four to five years, the two-wheeler market has witnessed
a shift towards motorcycles at the expense of scooters. With urban consumers
aspiring to possess the latest in terms of looks and technology, energy efficient
and sleeker looking models have replaced the old ones in the market. In the rural
areas, consumers have come to prefer sturdier bikes to withstand the bad road
conditions. Motorcycles sales now contribute 47.6% of two-wheeler sales, up
from 41% in FY 1999.
EVOLUTION OF INDIAN TWO WHEELER INDUSTRY
The two-wheeler industry (henceforth TWI) in India has been in

existence since 1955. It consists of three segments viz., scooters, motorcycles, and
mopeds. The increase in sales volume of this industry is proof of its high growth.
In 1971, sales were around 0.1 million units per annum. But by 1998, this figure
had risen to 3 million units per annum. Similarly, capacities of production have
also increased from about 0.2 million units of annual capacity in the seventies to
more than 4 million units in the late nineties.
The TWI in India began operations within the framework of the

national industrial policy as espoused by the Industrial Policy Resolution of
1956. This resolution divided the entire industrial sector into three groups, of
which one contained industries whose development was the exclusive
responsibility of the State, another included those industries in which both the
State and the private sector could participate and the last set of industries that
could be developed exclusively under private initiative with in the guidelines and
objectives laid out by the five year plans (CMIE, 1990). Private investment was
canalized and regulated through the extensive use of licensing giving the State
comprehensive control over the direction and pattern of investment. Entry of
firms, capacity expansion, choice of product and capacity mix and technology,
were all effectively controlled by the State in a bid to prevent the concentration
of economic power. However due to lapses in the system, fresh policies were
brought in at the end of the sixties. These consisted of MRTP of 1969 and FERA

of 1973, which were aimed at regulating monopoly and foreign investment
respectively.
Firms that came under the purview of these Acts were allowed to
invest only in a select set of industries. This set of controls on the economy in the
seventies caused several firms to:-
• Operate below the minimum scale of efficiency (MES).
• Under-utilize capacity and.
• Use outdated technology.
While operation below MES resulted from the fact that several incentives
were given to smaller firms, the capacity under-utilization was the result of
• The capacity mix being determined independent of the market demand.
• The policy of distributing imports based on capacity, causing firms to expand

beyond levels determined by demand so as to be eligible for more imports.
Use of outdated technology resulted from the restrictions placed on

import of technology through the provisions of FERA. Recognition of the
delicious effects of these policies led to the initiation of reforms in 1975, which
took on a more pronounced shape and acquired wider scope under the new
economic policy (NEP) in 1985.
The two-wheeler industry in India has to a great extent been

shaped by the evolution of the industrial policy of the country regulatory policies
like FERA and MRTP caused the growth of some segments in the industry like
motorcycles to stagnate. These were later able to grow (both in terms of overall
sales volumes and number of players) once foreign investments were allowed in
1991.
As part of these reforms, several groups of industry were de-

licensed and broad banding was permitted in select industries. Controls over

capacity expansion were relaxed though the specification of the MES6 of
production for several industries. Foreign investment was allowed in select
industries and norms under the MRTP Act were relaxed.
The reforms in the eighties like ‘broad handing’ caused the entry
of several new firms and products, which caused the existing technologically
outdated products to lose sales volume and/or exit the market. Finally, with
liberalization in the nineties, the industry witnessed a proliferation in brands.
The reforms led to a rise in the trend rate of growth of real GDP
from 3.7% in seventies to 5.4% in the eighties. However the major set of reforms
came in 1991 in response. De-licensed industries meant that firms no longer
required licenses from the State to enter the industry or expand their plants.
Broad banding meant that a firm could manufacture products related to the
ones they were currently making without the need for a separate license.
This meant that expansion of capacity till the MES did not now
require a license to a series of macroeconomic crises that hit the Indian economy
in 1990-1917. Several industries were deregulated, the Indian rupee was
devalued and made convertible on the current account and tariffs replaced
quantitative restrictions in the area of trade.
The initiation of reforms led to a drop in the growth of real GDP

between 1990-1992, but this averaged at about 5.5% per annum after 1992. The
decline in GDP in the years after reforms was the out come of devaluation and
the fiscal and monetary policies taken in 1991 to address the foreign exchange
crisis. Thus the industrial policy in India moved from a position of regulation
and tight control in the sixties and seventies, to a more liberalized one in the
eighties and nineties.
A description of the evolution of the two-wheeler industry in India

is usefully split up into four ten-year periods. This division traces significant
changes in economic policy making.

COMPANY PROFILE

THE COMPANY SCAN
HERO HONDA is the world’s largest manufacturer of two-

wheelers. Its symbol, the wings, represents the company’s unwavering dedication
in achieving goals that are unique and above international norms.
These wings have now arrived in India, as HERO HONDA

Motorcycle & Scooter India (Pvt.) Ltd. (HMSI), a wholly-owned subsidiary of
HERO HONDA motor company Ltd., .
These wings are here to initiate a change and make a difference in

the two-wheeler industry. HERO HONDA dream for India is to not only
manufacture two-wheelers of global quality, but also meet and exceed the
expectations of Indian customers with outstanding after sales support.
So, we get ready to receive their technologically superior, efficient

and reasonably proceeds two-wheelers, with HERO HONDA tested technology,
backed up with after sales service of HERO HONDA global standard.
ABOUT HERO HONDA MOTORCYCLE & SCOOTER

INDIA Pvt. Ltd
HERO HONDA Motorcycle & Scooter India (Pvt.) Ltd is a 100% subsidiary of
Honda Motor Co., Ltd.,.

Official Name - HERO HONDA Motorcycle & scooter India (Pvt.)Ltd.
Established - 1984
Place - Ghaziabad, Uttar Pradesh, India
Capital - Rs.300 crore
Factory Location - Ghaziabad, Uttar Pradesh, India Production

capacity - 7,50,000 units\year
HEROHONDA AND ENVIRONMENT:
HERO HONDA is unrivalled in making a conscious effort to lower

the emission of every one of its vehicles, two and four-wheelers. It may sound an
exaggeration but, technically, each HERO HONDA vehicle on the road can
contribute to the cleanliness of the air around it. And can collectively change the
air all over the world. For example, HERO HONDA was the first one to develop
two-wheelers that produce lower emissions and consume lesser fuel by
improving an engine’s combustion efficiency. HERO HONDA’S 4-stroke engines
are known to be amongst the cleanest and deliver never before fuel economy.
THE TECHNOLOGY AT HEROHONDA:
“Man maximum, machine minimum” these four words sum up

HERO HONDA’S design philosophy. HERO Honda products are not just built
for people, they are built around people. Then believe technology is a means to
provide joy to the customers, and their products are the ambassadors of this
philosophy.
Their fundamental design philosophy seeks to maximize the space

and comfort for people, while minimizing the space required for mechanical
components. With this aim in mind, HEROHONDA Research & Development
activities include product specific development and fundamental research on
technologies of the future. Over the years, HEROHONDA has gained

prominence in the global community through ceaseless technological innovations
and a dedication to servicing the needs of society. HERO Honda’s history has
been a history of challenges; challenges encountered and overcome by
perseverance, ingenuity and pursuit of perfection.

PRODUCT PROFILE
Need for the Study
This study is to know the Consumer psychology, attitudes and

beliefs. It is difficult to read the minds, perceptions and feelings of a consumer
towards a product. The Market now faces many problems like entry of
MNC’s, increase of competition and many more problems. As a result quality

products are produced. The New Technology is innovated and imported from
World over. This becomes a problem of survival for Indian Companies. In
these conditions, it becomes essential for every company to study the minds of
the Consumers and their behaviour towards the developmental changes in cut-
throat competition.
Consumer prefers quality products at reasonable price. The price

should be matched with the quality of the product. As the awareness of the
Consumer is increasing, the Company should produce products which have
the combination of creativity and technology with reasonable pricing
compared to that of competitor’s products and their pricing strategies.
Quality, brand image, price, availability and sometimes even brand
ambassador plays a major role in influencing the Consumer to buy a
particular product.
In this situation, companies should carry out research and has to

allot huge amounts towards it.
RESEARCH DESIGN

TITLE OF THE STUDY:
The study topic is titled as “CONSUMER BEHAVIOUR

TOWARDS HERO HONDA”:
STATEMENT OF THE PROBLEM:
Consumers of different segments buy a product on the basis of

their perception. They make purchase decisions based on what they perceive
about the HERO HONDA product, price, technology, performance and others
to determine what factors influence consumer to buy & how they perceive the
above factors.
According to the survey conducted it was found that majority of

the customers purchased HERO HONDA because they felt that compared to
other two wheelers HERO HONDA is entirely a different two-wheeler with
regard to style, colour and smooth riding.

OBJECTIVES OF THE STUDY:
The project is mainly under taken to find out what an extent

consumer behavior towards the HERO HONDA.
• To find out the mode by which the customers became aware of HERO
HONDA .
• To find out the factors influencing their purchase.
• To determine the quality perceived by the consumers of HERO HONDA .
• To know the feelings of the customers with regard to HERO HONDA .
• To find out the specific problems relating to the products.
• To know the consumers satisfaction towards the services rendered by M/S

S.A.S.MOTORS.
SCOPE OF THE STUDY:

The study enables to understand the perception of the market
segment in a better way. So, this study would help HERO HONDA dealers to
recognize the factors influencing the purchase of HERO HONDA and also to
identify various features influencing the buying process. In short, the study
covers the area of consumer behavior, their attitudes and perceptions of two-
wheeler owners.
LIMITATIONS:
Just like any product, which is doing well in the market, having
good features, good package, good quality and it is from banded company, with
all these features, we can’t say it is flawless, every product has its own limitation
whether a good or a bad one.
In the same way, how much ever effort a student puts into a
project it will have one or the other limitation. The limitations of my project are.
• The time period was limited and had to be carried out within a limited time.
• The study depends on the mood of the respondents while filling the
questionnaire.
• Sample study may not represent the whole population as sample size was
limited to 100 users.
• The opinion, problem, suggestions of these respondents are not considered as

that of whole Indian consumers.
RESEARCH METHODOLOGY:
The research was descriptive research-questionnaire survey

approach was followed. The survey was conducted to learn about consumers’

perception towards the brand, product, price, technology and others about
vehicle. A structured questionnaire was given to fill in the answers required to
analyze their perception.
The data obtained from the questionnaire was used to consolidate,

where all the values i.e., percentage of each kind of respondents are tabulated
and diagrammatic representation is also being made.
(A) DATA BASE OF THE STUDY:
FIELD OF THE STUDY:
The field of the study is marketing selected to study on the factors

influencing the customer to purchase a HERO HONDA two-wheeler.
SURVEY UNDERTAKEN:
The survey was under taken at S.A.S.MOTORS, one of the

dealers’ counters in HINDUPUR..
RESEARCH PROCEDURE:
1. Questionnaire forms were distributed to the existing customers for the

collection of data. (appended at the end)
2. Spot study was undertaken at S.A.S.MOTORS dealer’s counter.
3. Face to face interviews of customers were conducted among the residents

of HINDUPUR. The places where the interview was undertaken were
residences, cafes, and complexes, in HINDUPUR.
APPROACHES STUDY:
The respondents were kindly requested to fill up the questionnaire.

(B) DATA COLLECTION METHOD:
The data for the study was obtained from both primary and
secondary sources.
PRIMARY DATA:
QUESTIONNAIRES:
With the help of questionnaires, the data was collected from the existing
customers.
PERSONAL INTERVIEW: The personal interview was also conducted

regarding the drawbacks they had found in HERO HONDA, so that it will be
helpful in making modification of the product.
SECONDARY DATA:
The secondary data collection was done with the help of various sources.
WEB SITE:
The website www. HERO HONDA.com was made use of to collect the
information regarding the HERO HONDA two-wheeler.
FIELD WORK:
In this, questionnaire forms were distributed to all kinds of people

of different age groups, in different residential areas all over HINDUPUR.
Immediately the questionnaires with response were collected from the
respondents.
TOOLS OF ANALYSIS:

Simple percentages were used for analyzing the questions in the
questionnaire for customers. And also the questionnaires were analyzed in
simple manner for preparing the statistical tables for future analysis.
The questionnaire for exit interview of customers included

questions like, the various factors (like mileage, price, style, after sales etc,)
considered by the customers before buying HERO HONDA two-wheeler.
Great care was taken to design the questionnaire and it was tested
and debugged before it was administered on a large scale. The forms of questions
asked were designed to greatly influence the response to seek greater accuracy.
CHAPTERISATION SCHEME:
Under this unit a brief view of objectives is given so as to enable
the reader to know the contents and the objectives:-
• It contains introduction and some definition of marketing and consumer

behavior.
• It deals with how I went about during the survey, the methods adopted to
collect data and analyze data.
• It contains company and product profile.
• It contains consumer behavior towards HERO HONDA style. Here, the

questionnaires are analyzed &put into a final step.

Category of Respondents.
Category No. of respondents Percentage
Male 72 72
FEMALE 28 28
Total 100 100
Observation:
The above analysis shows that more percentage of users of the
HERO HONDA is males. It is convenient for city rides.
80%
72%
70%
60%
50%
40%
28%
30%
20%
10%
0%
Male Female

1. Age Group of Respondents.
Age -group No. of respondents Percentage
18-25 38 38
26-35 24 24
36-45 18 18
46 & above 20 20
Observation:
In the above analysis 38% of respondents belongs to the age group
of 18-25, 24% of belong to age group of 26-35, 18% of belongs to age group of

36-45, and 20% of belong to the age group of 46&above.
40% 38%
35%
30%
24%
25%
20%
20% 18%
15%
10%
5%
0%
18-25 36-45
Occupation of Respondents.
Occupation No. of Percentage
respondents
Student 30 30
Business 56 56
Professional 06 06
Employed 04 04

Farmer 00 00
Others 04 04
Observation:
In the above analysis 30% of the respondents are students,
56%, of respondents are business people, 06% of the respondents are
professionals, 04% of the respondents are employed people, 00% of
respondents are farmers and 04% are others.
4%
s
er
th
O
0%
er
rm
Fa
4%
ed
oy
pl
6%
Em
l
na
io
ss
56%
e
of
Pr
e ss
s in
30%
Bu
n ts
de
0% 20% 40% 60%

u
St

2. Monthly Family Income of Respondents.
No. of
Monthly income percentage
respondents
Below 5,000 06 06
5,000-10,000 39 39
10,000-15,000 37 37
Above 15,000 18 18
Observation:
In the above analysis 39% of respondents’ monthly income is
between10000-15000, for 37% monthly income is between5000-10000, for 18% of
respondents monthly income is above 15000 and for 06% of respondent monthly
income is below Rs.5000.

5000-10000 39%
10000-15000 37%
Ab o ve
18%
R s.15000
B elo w R s.5000 6%
0% 10% 20% 30% 40% 50%
3.
Respondents Awareness level of HERO HONDA.
Awareness No. of respondents Percentage
Friends 54 54
News papers 04 04

Televisions 20 20
Magazines 04 04
Relatives 14 14
Others 04 04
Observation: From the above analysis 54% of respondents came to

know about it through friends, 4% of respondents came to know about in news papers,
20% of respondents came to know about in television, 4% of respondents came to
know about through magazines, 14% of respondents come to know about through
relatives and 4% of respondents come to know about through others.

60%
54%
50%
40%
30%
20%
20%
14%
10%
4% 4% 4%
0%
No. of respondents
Friends News papers Televisions

Magazines Relatives Others

4. Different Colours preferences of HERO HONDA users
Colours No. of respondents Percentage
Maroon 14 14
Black 32 32
Gold 06 06
Blue 04 04
Silver 30 30
Red 10 10
Grey 04 04
Observation:
From the above analysis 32% of respondents prefer black
colour, 30% of respondents use silver colour, 14% of respondents use maroon
colour,l0% of respondents use red colour, 6% of respondents use gold colour
and 4% of respondents are use both grey and blue colour each.

Black 32%
Silver 30%
Maroon 14%
Red 10%
Gold 6%
Blue 4%
Grey 4%
0% 10% 20% 30% 40%

5. Influence of Near and Dear on Respondents
Influenced No. of respondents Percentage
Yes 30 30
No 70 70
Total 100 100
Observation:
From the above analysis, it is clear that 70% of people are
not influenced by any one where as 30% of people are influenced by some one
like brother, sister etc..,
Influenced
30%
Not
influenced
70%
Influenced Not influenced
6. Mode of Purchase by Respondents
Purchase No. of respondents Percentage

Cash 80 80
Credit 20 20
Total 100 100
Observation:
From the above analysis 80% of respondents prefer cash purchase
whereas a small percentage i.e.., 20% of respondents prefer credit purchase.
Credit
20%
Cash
80%
7. Order of Preference considered at the time of purchase
Order of Features No. of Percentage

preference respondents
1st Pick-up 45 45
2nd Style 35 35
3rd Brand image 20 20
Observation:
From above analysis most of the respondents give first
preference to pick-up, second preference to style and third for brand image,
while purchasing HERO HONDA.
Brand
20%
image(3rd)
Style(2nd) 35%
Pickup(1st) 45%
0% 10% 20% 30% 40% 50%

10. Opinion of respondents with regard to price
Opinion No. of respondents Percentage
More value for

24 24
money
Less value for

16 16
money
Value for money 60 60
Total 100 100

Observation:
From the above analysis 60%of respondents gave their opinion as
fair value for money, 24%of respondents gave their opinion as more value for
money and 16% of respondents gave their opinion as less value for money.
24%
60%
16%
More value for money Less value for money

Value for money

11. Opinion of Respondents on Attributes of Pickup,
Mileage, Style/Looks, Over all performance & Lighting
Attribute Excellent Good Satisfactory Poor
Pickup 56 24 20 00
Mileage 04 26 28 42
Style/looks 24 56 18 02
Over all
14 44 40 02
performance
Lighting 12 66 22 00
Observation:
Attribute of pick up

From the above analysis 56% of respondents gave their opinion as
excellent with regard to pick up, 24% of respondents gave their opinion as good,
20% of respondents gave their opinion as satisfactory and 0% of respondents
gave their opinion as poor.
Attribute of mileage
excellent in the attribute of mileage, 26% of respondents gave their opinion as
good, 28% of respondents gave their opinion as satisfactory and 42% of
respondents gave their opinion as poor.
Attribute of Style/Looks
excellent with regard to style/looks, 56% of respondents gave their opinion as
good, 18% of respondents gave their opinion as satisfactory and 02% of
respondents gave their opinion as poor.
Attribute of Overall performance

excellent in the attribute of over all performance, 44% of respondents gave their
opinion as good, 40% of respondents gave their opinion as satisfactory and 02%
as poor.
Attribute of Lighting

From the above analysis 66% of respondents gave their opinion as good
in the attribute of lighting, 22% of respondents gave their opinion as
satisfactory, 12 %of respondents gave their opinion as excellent and 00% of
respondents gave their opinion as poor
70%
Good
60%
Excellent Good
50%
Good
Poor
Satisfactory
40%
30% Satisfactory
Good
Excellent
Good
Satisfactory
Satisfactory
20% Satisfactory
Excellent
Excellent
10%
Excellent
Poor Poor
Poor Poor
0%
Excellent Good Satisfactory Poor

12. Satisfaction Level of Respondents with regard to
Technology based on use.
Satisfaction level No. of respondents Percentage
Satisfied 92 92
Not satisfied 08 08
Total 100 100
Observation:
In the above analysis 92% of respondents gave their opinion as
satisfied with the technology and 08% of respondents are not satisfied.

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Satisfied Not satisfied
13.MILEAGE SATISFACTION PER LITER
Mileage No. of respondents Percentage
40-50 30 30
50-60 50 50
Above 60 20 20
Total 100 100
Oberservation:

30% of the respondents are getting the mileage of 40-50, 50% of the
respondents are getting the mileage of 50-60, 20% of the respondents getting
the above 60 per liter of fuel.
50
45
40
35
30
40-50
25
50-60
20 Above 60
15
10
0
Percentage

14. Opinion of Respondents on performance of the scooter on
Mud, Metal, Sandy, Tar & Cement roads
Satisfact
Roads Excellent Good Poor
ory
Mud 10 24 26 40
Metal 10 36 30 24
Sandy 00 14 46 40
Tar 66 26 04 04
Cement 58 30 10 02
Observation:
Mud road

From the above analysis 40% of respondents gave their opinion as poor
on the mud road, 26% of respondents gave their opinion as satisfactory, 24%
of respondents gave their opinion as good and 10% as excellent.
Metal road
From the above analysis 36% of respondents gave their opinion as good
on the metal road, 30% of respondents gave their opinion as satisfactory, 24%
of respondents gave their opinion as poor and 10% as excellent.
Sandy road
satisfactory on the sandy road, 40% of respondents gave their opinion as poor,
14% of respondents gave their opinion as good and 00% as excellent.
Tar road
excellent on the tar road, 26% of respondents gave their opinion as good, 04%
of respondents gave their opinion as poor and satisfactory .
Cement road
excellent on the cement road, 30% of respondents gave their opinion as good,
10% of respondents gave their opinion as satisfactory and 02% as poor.

40%
24%
40%
Poor
4%
2%
26%
30%
46%
10%
Satisfactory
4%
24%
36%
14%
26%
30%
Good
10%
10%
66%
58%
Excellent
0%
0% 20% 40% 60% 80% 100% 120% 140% 160%
Mud Metal Sandy Tar Cement

15. Percentage of respondents having mechanical problem
with HERO HONDA.
No. of
Problems Percentage
Respondents
Having problem 20 20
Not having
80 80
problem
Total 100 100
Observation:
From the above analysis 80% of respondents do not seem to
have problem with HERO HONDA, and 20% of have problem with HERO
HONDA.

80%
80%
70%
60%
50%
40%
30% 20%
20%
10%
0%
Having problem Not having problem

16. Category of vehicle owned before purchase of HERO
HONDA
Vehicle No. of Respondents Percentage
Cycle to H.A 08 08
Moped to H.A 26 26
Bikes to H.A 12 12
Scooter to H.A 40 40
None 14 14
Observation:
From the above analysis 40% of respondents shifted from other
scooters to HERO HONDA, 26%of respondents shifted from moped to HERO
HONDA , 14% of respondents shifted directly to HERO HONDA , 12% of
respondents shifted from bikes to HERO HONDA and 08% of respondents
shifted from cycle to HERO HONDA .

Scotter toH.A 40%
Moped toH.A 26%
None 14%
Bikes toH.A 12%
CycletoH.A 8%
17. Over all experience of Respondents with HERO HONDA

Level of
No. of Respondents Percentage
satisfaction
Highly satisfied 14 14
Satisfactory 78 78
Not satisfied 08 08
Not at all satisfied 00 00
Total 100 100
Observation:
From the above analysis 78% of respondents are satisfied
with H.A., 14% of respondents are highly satisfied and 08% of respondents are
not satisfied(less satisfied).

Not at all satisfied
0%
Not satisfied
8%
78%
Satisfactory
14%
Highly satisfied
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

FINDINGS
Opinion of Customers regarding HERO HONDA
Scooter:
1. Less mileage.
2. Ladies / aged persons fear to ride the vehicle due to its heavy weight.
3. Horn sound quality is not good.
4. Self ignition start needs improvement.
5. Make engine sound bit sharp.
6. Engine repair is more after just 2 or 3 services.
7. Starting trouble.
8. Head light power is not sufficient.
9. Brake adjustment is a routine one.
10. Suspension is less.
11. Road grip is less.
12. Height of the vehicle is high.
13. Necessary extra fittings are costly.
14. Price of the HERO HONDA is high.
15. Maintenance cost is too much after 2 – 3 years from the date of vehicle
purchase.
16. Clutch lining is not proper.

Findings:
1. Majority of buyers of HERO HONDA are in the group of 18-25 years.
2. Majority of consumer’s opinion about HERO HONDA is value for money

60%.
3. The main customers fall in the income level of Rs. 5000-10,000
4. Majority of consumers came to know about HERO HONDA through friends.
5. The Majority of consumers are satisfied with the technology 92% & 8% is
not satisfied with the technology.(based on use)
6. Consumers buy HERO HONDA because of pick up 45%, style 35% &brand
image 20%.
7. The majority of consumers are satisfied with the current price.
8. 20% of respondents have problem wuth their HERO HONDA .
9. 80% of respondents do not have any major problem with their HERO
HONDA.
10. Consumers face mileage problem with HERO HONDA.

CONCLUSIONS
1) HERO HONDA’s special distinguishing feature should always be highlighted.
Increased customer awareness and knowledge about the same would definitely
boost HERO HONDA’s sales. Because there are many customers who are very
particular about that.
2) As there is tight competition due to the entry of new brands, sale of HERO
HONDA is drastically coming down. Hence HERO HONDA should train its
personnel especially in marketing field and higher regard should be given
the customers to improve the sales.
3) HERO HONDA has been considered as the second most important brand
choice next only to kinetic. Thus, catering to customer requirements in
terms of mileage, quality, style and more important price can further
strengthen this brand recall of HERO HONDA .
4) HERO HONDA is perceived to be little expensive in comparison to other

brands. Hence HERO HONDA should explore the possibility of launching
economy priced models to cater to the large proportion of the market that
is loses out on account of price.
Today competitors are the kings in the market. Company should

try to satisfy customer by giving good products to them. Always companies
should try to use different strategies to satisfy the customer.
If all this is taken care of, the new millennium will see
HEROHONDA Limited as a top sealing company. I wish them all the best.

SUGGESTIONS
 More attractive range of colours should be introduced in the market.
 Better mileage is very much necessary in order to increase its sales.
 Headlight intensity should be increased.
 New / advanced techniques should be implemented in order to decrease the

recurring repairs.
 Suspensions should be improved.
 Road grip should be improved.
 Mileage should be improved.
 Price should be less.
 More focused advertisement is required.
 Stoke observer near front wheel should be improved.
 The overall weight and height of the vehicle should be reduced.
 Kicker starter should be improved.
 Some more features to face the stiff competition may be added.
 Much more style is anticipated by the customers.

QUESTIONNAIRE
A STUDY ON
CUSTOMER SATISFACTION TOWARDS HEROHONDA IN
HINDUPUR
I am PANKAJ ANANT Programme at Sri Vasavi Institute of
Management HINDUPUR. I am conducting a general survey on the above topic,
to submit dissertation to fulfill requirement of S.K.University for the award of
B.B.M.degree. In this connection I request you to help by responding to this
questionnaire. And I assure you that the information collected will be kept highly
confidential and will only be used for academic purposes.
Part I
Name:
Age: Gender:
Occupation:
Student Business
Employed professional
Farmer others specify ……………
Family monthly Income:
Below Rs. 5000 5000 to 10000
10,000 to 15,000 Above 15,000
1. How did you come to know about HERO Honda?
a) Friends b) News papers

c) Television d) Magazines
e) Relatives f) Others Specify……………….
2. Which co lour HERO Honda do you own?
a) Maroon b) Black
c) Gold d) Blue
e) Silver f) Red
g) Grey

3. Did some one influence you to buy HERO Honda?
a) Yes b) No
If yes, who (relationship) ……………….
4. How did you purchase?
a) Credit b) Cash
5. What made you to buy HERO Honda?

Give your order of preference 1st, 2nd, 3rd.
a) Brand Image b) Durability

c) Fuel Efficiency d) Low maintenance
e) Pick-Up f) after sales Services
g) Resale value h) Style
6. What is your opinion about HERO Honda, with regard to price?
More value for money

Less value for money
Value for money
7. If HERO Honda active was not launched which vehicle would you
have
Bought
Mention:
8. What do you think about HERO Honda in terms of

Pick Up
Mileage
Style/ looks
Overall
Performance
Lighting
9. Are you satisfied with the technology of HERO Honda?
a) Yes b) No
If no, express why: …………………………….

10. What is the actual mileage per liter that you are getting from
HERO HONDA? ……………….…..KM/LT
11. How does your HERO Honda perform on following roads?
Mud
Metal
Sandy
Tar
Cement
12. Did you get any mechanical problem in your vehicle?
a) Yes b) No
If yes, state: …………………..
13. Which vehicle you had before purchasing HERO Honda?
……………………………………………………………
14. What is your overall experience with HERO Honda?
a) Highly satisfied b) Satisfactory

c) Not satisfied d) Not at all satisfied
15. Are you going suggest others to buy HERO Honda?
Yes No
16. In future are you planning to change your two Wheeler?
Yes No
17. Do you have any suggestions for the improvement of HERO Honda?
……………………………………………………………
……………………………………………………………
…………………………………………………………....
……………………………………………………………
Signature of the respondent.
THANK YOU

BIBLIOGRAPHY
 BOOKS:
• Philip Kotler, Marketing Management, PHI

Publishers(India) Delhi, 2000 Edition.
• K Aswathappa, Organisational Behavior,

Himalya publishing house, millennium Edition.
• Leon G Schiffman, Consumer behaviour, PHI

Publishers (India), Six Edition.
 MAGZINES
• Advertising and Marketing
• Auto world
• Auto India.
 JOURNALS
• Journal of Management
• Journal of Marketing
• Journal of Avertising
 WEBSITES
• www. Google.com
• www. HERO Honda.com


A Study On Consumer Behaviour Towards Hero Honda: Bachelor of Business Management Mr.P.Hanumantha Raju

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A Study On Consumer Behaviour Towards Hero Honda: Bachelor of Business Management Mr.P.Hanumantha Raju

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A STUDY ON CONSUMER

BEHAVIOUR TOWARDS HERO

SRI KRISHNADEVARAYA UNIVERSITY

In partial fuillment of the requirements

For the award of the degree of

BACHELOR OF BUSINESS MANAGEMENT

SRI VASAVI INSTITUTE OF MANAGEMENT

SVIM, HINDUPUR. Page No:1

Bachelor of Business Management

Prescribed by Sri Krishnadevaraya University, Anantapur.

SVIM, HINDUPUR. Page No:2

Bachelor of Business Management

Prescribed by Sri Krishnadevaraya University, Anantapur.

SVIM, HINDUPUR. Page No:3

Bachelor of Business Management

Prescribed by Sri Krishnadevaraya University, Anantapur.

SVIM, HINDUPUR. Page No:4

This is to certify that Mr.P.HANUMANTHA RAJU Final year BBM

We wish her all success in her career.

Chief Operating Person

SVIM, HINDUPUR. Page No:5

SVIM, HINDUPUR. Page No:6

SVIM, HINDUPUR. Page No:7

The two-wheeler market consists of scooters and motorcycles

The two-stroke category consists of motorcycle such as Suzuki, all

SVIM, HINDUPUR. Page No:8

Market consists of all the potential consumers who have a particular

Marketing management is the process of planning and

Communication, Physical Distribution and Promotion

Arranging for a product to occupy a clear distinctive and desirable

SVIM, HINDUPUR. Page No:9

A strategy for a company growth by identifying new market for

The firm in an industry with the largest market share, it usually

Only the marketing concept is capable of keeping the organization

MARKETING CONCEPTS ON 4 PILLARS

SVIM, HINDUPUR. Page No:10

Consumer’s selections of stimuli from the environment are based

Consumers organize their perception and interest into unified

The interpretation of stimuli is highly subjective and is based on

Just as individuals have perceived images of themselves, they also have

Consumer strategies for reducing perceived risk include increased

SVIM, HINDUPUR. Page No:11

For example car, television, radio, furniture, etc. There is a direct

Consumer goods are classified into three types:

OPERATIONAL DEFINITIONS OF CONCEPTS

Market consists of all the potential customers sharing particular

It is a social and managerial process by which individuals and

He is an individual who purchases or has the capacity to purchase

SVIM, HINDUPUR. Page No:12

It can be defined as the behavior that consumer’s display in search

Hence we can say that, consumer behavior is the behavior, which

One who includes and assists a prospective buyer to a commodity

A name, term, size, symbol or design or combination of them

The need for items/ products or need categories higher than

SVIM, HINDUPUR. Page No:13

VARIOUS CATEGORIES IN AUTOMOBILES

Market segmentation is done on the basis of the consumer’s

The various types of automobiles manufactured in India are:

• Light Motor Vehicles

SVIM, HINDUPUR. Page No:14

This also helps the manufacturer to stabilize and concentrate on the

The Indian two-wheeler sector is the largest in terms of volumes

Lately, however, some products like scooters have been introduced