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Mr.VISHNU BHANDARI Reg No:8625026 BACHELOR OF BUSINESS MANAGEMENT SRI KRISHNA DEVARAYA UNIVERSITY, ANANTAPUR 2009-2010
PRINCIPAL
A Study On Consumer Behavior towards Hero Honda with reference to CBZ X-TREME
REGION SERVICES IN Kurnool
IS A BONAFIED WORK DONE BY
MR.B.VISHNU BHANDARI
And submitted to St.josephs Degree College, Kurnool In partial fulfillment for the award of
Place:
Date:
Mr.K.NAGARAJU
DECLARATION
I here by declare that this project report entitled CONSUMER BEHAVIOUR ON HERO HONDA CBZ X-TREME has been prepared by me during the period of 2009-2010 to be submitted to St.josephs Degree College,kurnool in partial fulfillment for the award of degree of bachelor of Business Management Affiliated to Sri Krishnadevaraya University, Anantapur. I also declare that this project report is the result of my own effort and that it has not been copied from any of the earlier reports submitted by any body to Sri Krishna Devaraya University.
Place:
Date:
B.Vishnu Bhandari.
CONTENTS
Chapter-1
INTRODUCTION
Origin
and
importance
of
Chapter-2
INDUSTRY PROFILE
Company Profile
Chapter-3
CONSUMER BEHAVIOR
Introduction Behavior
to in
Consumer Consumer
Major
Factors
Research Methodology
DATA INTERPRETATION
Chapter-4
ANALYSIS
&
Findings &limitations
Suggestions
Chapter-5
CHAPTER-1 INTRODUCTION
to another. Further, developments took place in this direction and manually operated carts were seen as a tool for transportation and then animal pulled carts so on. Many developments could be seen taking place at rapid pace when ford with his brilliant invention, brought a great revolution in the transport and automobile industry. Ford for the first time was successful in investing a power driven vehicle. The growth momentum generated in the latter half of eighties is significant. With the growing needs and demand, various types of vehicles were produced in
parallel to suit to the changing tastes incorporating the most conveniences and comfort in the models developed one after the other.
The automotive industry is regarded as the main indicator of the industry health of nation and is hence considered as the barometer of any economys health. As it is known to all, the technology up gradation is in phase of fast in phase of fast improvements and developments and with this personal transportation is picking up a prime consideration now-a-days. If India is to accelerate industrial growth and achieve a major in its composition of exports in favor of value added products, industries like automobiles have to assume a major responsibility
TWO WHEELERS
India is the third largest producer of two-wheelers after Japan china, and the second largest consumer after china. Despite the poor road infrastructure and the meager purchasing power, the two-wheeler industry in India has enjoyed a wider appeal with the masses as a means of private transportation. Two-wheelers are usually classified in to three types scooters, motorcycle and mopeds. A look at the post-independence era reveals that the two-wheeler industry has witnessed three distinct phases of growth. PHASE: 1: The Indian two-wheeler structure was quite monopolistic during the first 37 years since independence, when volumes grew at a slow pace. Bajaj Auto had an undisputed leadership over the market. Consumer had to literally wait for years before acquiring a Bajaj vehicle. The industry registered a compounded growth rate of 12% during the seventies. PHASE: 2: The second phase began in the mid-eighties when the sector was partially deregulated. This phase saw Japanese companies typing up with
domestic players and newer models were introduced in specific segments. Even though the demand was apparently strong for scooters, most of the Japanese ventures opted to produce motorcycles expert for kinetic-Hondas which chose to manufacture scooters. The annual growth rate for the two-wheeler industry during this phase stood at 16.4% this phase extended till the early Nineties, and there was a recession during the 1st phase of this phase i.e., 1992-93 and by 8% the following year. PHASE: 3: This phase began in 1994 when sales started picking up. The market saw a steep increase in the demand, in 1995; the industry produced about one million scooters, 6 lakh motorcycles and 5 lakh mopeds. The motorcycle segment has seen sales grow by 27.08% from April 1995 to December 1995. During the same period, scooter sales grew by 17.26% and mopeds by 20.70%. companies are going in for capacity expansion. Almost all the
marketing effort of organization is channel zed towards to ascertain the data, regarding target market. The survey consumer behavior is helpful to the company to know how far the consumer are satisfied with the product and what makes them to by and to know what consumer need more from the product. The collected data is helpful to know changing tastes, preferences, trends in buying behavior of the customer and to make product improvements. With the stiff competition coming up at a rapid pace and also due to changing nature of the market, a need was felt by the M/S. Sai Teja Motors Hindupur, to take up of the type and hence intended to conduct a study on consumer behavior towards HERO HONDA CBZ X-TREME Thus the need for the study paved way in performing project work of this kind.
Hero Honda CBZ X-TREME. To record a note on media habits of consumers of Hero Honda CBZ X-
effective purchase. To find out the specific problems relating to the product. To know the consumers satisfaction towards the services rendered by
The primary source of the data was obtained through a market survey conducted at kurnool. Having a clear understanding about the objectives of this study, a set of questionnaire consisted of the different types of question like.
Open Closed -
In the closed- ended type of questions, dichotomous, multiple choice questions have been included. places at Kurnool. Secondary source of the data has been an aid to perform the survey successfully. The various information bulletins, magazines, company journals and other printed materials gave an in depth knowledge on the automobiles and further this information enlightened in developing a researched plan and collection data needed for the research plan and collection of data needed for the research in the dare of interest. The sampling method used was simple random sampling. The sample size taken for the study was 100 respondents covering all the
LIMITATIONS
Every good effort has been pulled in conducting the study assigned to me as project work and done successfully. Yet, limitations do creep I while carrying out such studies and are best tried to minimize those limitations which would suffered during the course of undertaking the project assigned were.
This study support to describe the behavior of consumer of kurnool. The reception and co-operation of the consumer of the sample areas is poor, this can be treated as major impediment for the study.
All suggestions and recommendations made in this report are based on the sample of consumer surveyed. and represent the whole of the nation This sample although statistically effective could not present
The project had to be completed in three months. Limitation of time is the major obstacle.
CHAPTER-2
INDUSTRY PROFILE
COMPANY PROFILE PRODUCT PROFILE
COMPANY PROFILE
Hero group on collaboration with Japanese company Honda Motors established Hero Honda Motors Ltd., in 1984. The registered office and works of the company situated at Ghaziabad.
Hero Honda is the first company to introduce 4-stroke motorcycle on India roads. It tested success because of its unique qualities like fuel efficient, reliable and situated for rough roads. Over 25 million units were sold world wide and it gave the company significant advantage over the other motorcycle available in the company. The other major players in this motor cycle segment include TVS Suzuki, Bajaj Auto and Escort Yamaha in 1996-97 Bajaj introduced 4-stroke bike against Hero Honda, but Hero Motors Ltd., hardly face any problem of competition from Bajaj because of its superior specifications. The company has five 100cc models styled differently but all united by eco-friendliness of the engine. The Models Being: Hero Honda CD 100, Hero Honda CD 100SS, Hero Honda Sleek, Hero Honda Street, Hero Honda Splendor, Hero Honda Joy, Hero Honda Passion, Hero Honda Passion+, Hero Honda CBZ, Hero Honda ambition,
Hero Honda Ambition135, Hero Honda Super Splendor, Hero Honda CD Dawn, Hero Honda Dawn, Hero Honda Achiever,
Hero Honda Karizma, Hero Honda Glamour, Hero Honda Pleasure, Hero Honda Hunk Hero Honda CBZ X-TREME. Despite a great decline in the sales in the automobile industry, Hero Honda has recorded a phenomenal 52% growth in the net profit during the year 97-98 touching 76.60 crore as against 50.36 crore for the previous years. While growth in automobile sector was a mere 1 percent and in two wheeler industry 3 percent, the motor cycle segment registered a growth of 16 percent. Against this back ground Hero Honda registered an incredible growth of 52 percent for the year 97-98. A total of 4, 07,546 motorcycles were sold during the year. As a market leader Hero Honda enjoys a market share of 36 percent in the country. Hondas export performance has been limited by the fact that exports could only be made to selected markets and that too only through Honda outlets. Nevertheless, over fine thousand motorcycles were exported on 93-94. To meet the demand the demand in the market the company has set up a new plant at the Gugaon near New Delhi, at the cost of Rs. 181 with annual capacity of 1.5 lakh units. The strength of the company lies in its distribution, which has been expending its network feverously. Today over 500 dealers scattered in the market the main reasons for the commendable performance of Hero Honda have been its uncompressing obsession for quality, excellence and commitment to the customer. Both the sales and after sales services are greatest priority by the company.
PRODUCT PROFILE
The Hero Honda CBZ X-TREME is an excellent example of the term Designed with your comfort in mind, with a contoured low-slung seat, specially designed handle-bar and a strong double-cradle tubular frame. This bike optimizes riding pleasure. Truly, the limousine of Indian two wheelers The 4-stroke 150cc driving machine from Hero Honda. A bike will stop you right in your tracks. Both by its look and performance. True to its Honda Lineage. Consider its newly designed engine that gives you unprecedented fuel efficiency. While still delivering a punchy 7.5 PS. Next, feel the ergonomics of it as you cruise along. A well-cushioned low-slung seat helps you rest and ride at the same time. Not to mention the suspension, that works so well that probably youll never find out what happens between tyres and that bumpy road. Needless to add, owing a splendor means a lot of other things too. Like getting all the admiring looks. Or the pride you feel in riding a bike that meets the pollution control standards of the next decades, today.
SPECIFICATIONS
Engine Displacement Clutch type Clutch Primary Clutch Secondary Transmission Final Drive Ignition Starting Kerb weight Suspension(Front) Suspension(Rear) Fuel tank capacity 4-stroke,singlecylinder,air-cooled, 97.2cc Manual Multi-plate wet 4-speed constant mesh Roller chain Electronic Kick starter, Self start. 109Kg Telescopic hydraulic fork Spring loaded Hydraulic type with both side action 10.51ltr (1.4ltr reserve)
CHAPTER-3
CONSUMER BEHAVIOR
Introduction to consumer Behavior Major Factors in consumer Behavior Consumer Buying Process Objectives Research methodology
Consumer Behavior
NEED RECOGNITION: the buying process starts when the buyer recognizes a problem or need. The buyer senses a difference between his own state and desired state. The need can be triggered by internal stimuli like hunger, thirst, sex or by external stimuli like advertisement, friends, relatives, etc., the marketer needs to identify the circumstances that trigger a particular need.
INFORMATION SEARCH:- The search begins when a consumer perceives that a need might be satisfied by the purchase and consumption a need might be satisfied by the purchase and consumption of a product. The recollection of past experiences
might provide the consumer the adequate information. On the other hand if the consumer has no prior experience, then he searches the information in the outside environment. Here environment includes friends, advertising sales persons, etc. EVALUATION OF INFORMATION: The marketers is interested in knowing how consumers process the information gathered during the search process once the interest in the product is aroused the person makes final decision using certain evaluative criteria like product attribute, relative importance of each attribute to the Consumer, brand, image etc. The evaluation stage represents the stage of metal trial of the product. PURCHASE DECISION: After the evaluation, the consumer develops the intention either to the purchase or reject the product. The final purchase will how ever depend on the strength of positive intention i.e., the intention to buy. POST PURCHASE BEHAVIOR: After purchase and consumption of a product consumer experiences some level of satisfaction or dissatisfaction. The marketer has to study the post purchase attitude of the consumer to predict their post purchase actions.
Consumers do not make their decisions in vacuum. Their purchases are highly influenced by cultural, social, personal and psychological factors. want to examine the influence of each factor a buyers behavior. CULTURAL FACTORS; cultural factors exert the broadest and deepest influence on consumer behavior we will look at the played by buyers culture, sub culture, and social class. CULTURE: Culture is the most fundamental determinant of persons want and These factors are not possible to control by the marketer but must be taken into account. We
behavior where as lower creatures are largely governed by instinct, human behavior is largely learned. The child growing up in a society learns a basic set of values, perceptions, and behaviors through a process of socialization involving the family and other key institution. SUB-CULTURE: Each culture contains smaller group of sub-culture that provide
more specific identification and socialization for its members. Four types of subcultures can be distinguished. Nationality groups are found with in large communities and exhibit distinct ethnic taste and proclivities. Religious groups with specific cultural preferences and taboos. Racial groups and geographical areas also affect the consumer behavior.
SOCIAL CLASS:
Virtually all-human societies exhibit social stratification. Stratification sometimes takes from of a cast system where the members of different castes are reared for certain roles and cannot change their membership more stratification takes the form of social classes. Social classes are relatively homogenous and enduring division in a society where are hierarchically ordered and whose members share similar values, interests and behavior. Social classes show distinct product and brand preference in such areas as clothing, home furnishings, leisure activities. And automobiles. SOCIAL FACTORS: A consumers behavior is also influenced by social factors such as the consumers reference groups, family and social role and statuses. REFERENCE GROUPS: A persons behavior is strongly influenced by many groups. A persons reference groups and those groups that have direct. Or indirect influence on the persons attitude or behavior. Groups having a direct influence on a person are membership group. These are groups to which the persons belongs and interacts, some are primary groups with there is fairly continuous interaction, such as family neighbors and co-owners. The persons also belong to secondary groups, which tend to be formal and where there is less continuous interaction. AGE AND LIFE STYLE STAGE: People change the goods and services they buy owner their lifetime. Consumption is also shaped by the stage of the family life cycle.
OCCUPATION: A persons consumption pattern is also influenced by hi or her occupation. Marketers try to identify the occupational groups that have an above average interest in their product and services. PSYCHOLOGICAL FACTORS:Buyers buying choices are also influenced by major psychological factors. are the individual influences on consumer behavior? attitudes and learning. A) NEED: The starting point in the purchase decision is the recognition of a need. The consumer is typically confronted with numerous unsatisfied needs. Maslows five level hierarchies of needs are well known, is relevant in this context. As each need is fulfilled, another higher level need arises and demands priority in its satisfaction. B) MOTIVES: A motive is an inner stat that directs us towards the goals of satisfying a felt need. Important buying motives are pride, vanity, fashion, possession, fear safety, love and affection, economy, curiosity, social approval, beauty and comfort or convenience. These are the driving forces behind buying behavior and many be based on psychological wants. C) PERCEPTION: Individual behavior resulting from motivation is affected by how we perceive stimuli perception is the meaning we attribute to incoming stimuli through our five senses. Our perception an object of event is the result of the interception of two of factors a) Stimuli factors as size, color, weight or shape b) individual factors which are characteristics of individual. Needs, motives, perception
1: NEED RECOGNITION:
It means the awareness of a want, a disdain of consumption problems with out whose satisfaction the consumer normally build up tension.
2: PRODUCT EVALUTION:
The consumer is exposed to the existence of product that may satisfy a need. This awareness may be on account of the search carried by consumer himself/herself or because of a firms communications through advertising or salesman ship of through a social environment.
INTEREST:
It is state of mind that exists when a consumer perceives and is aware of alternative products capable of satisfy that need. Consumer interest is indicated in the consumers willingness to seek further information about a product.
To find out the reasons for selecting Hero Honda CBZ X-TREME To ascertain proportion of Businessmen, employees, and students owing Hero
Hero Honda CBZ X-TREME. To record a note on media habits of consumers of Hero Honda CBZ X-
effective purchase. To find out the specific problems relating to the product. To know the consumers satisfaction towards the services rendered by
Data collection for the purpose of analyzing behavior of consumer is really a horrendous task. Data for the study are collected both from primary sources and secondary sources. The primary source of the data was obtained through a market survey conducted at kurnool. Having a clear understanding about the objectives of this study, a set of questionnaire consisted of the different types of question like.
Open Closed -
In the closed- ended type of questions, dichotomous, multiple choice questions have been included. places at Kurnool. Secondary source of the data has been an aid to perform the survey successfully. The various information bulletins, magazines, company journals and other printed materials gave an in depth knowledge on the automobiles and further this information enlightened in developing a researched plan and collection data needed for the research plan and collection of data needed for the research in the dare of interest. The sampling method used was simple random sampling. The sample size taken for the study was 100 respondents covering all the
CHAPTER-3
DATA ANALYSIS & INTER PRETATION
S.NO OCCUPATION
PERCENTAGE
1 2 3
44 20 36 100
Inference:
44% respondents of CBZ-TREME are students. 20% respondents of CBZ-TREME are employees. 36% respondents of CBZ-TREME are businessmen
Source:
Questionnaire.
S.NO 1 2 3 4 5
REASONS NO.OF FOR RESPONDENTS PURCHASING Reasonable price 22 Least 12 maintenance Company reputation Good mileage others Total 40 16 10 100
PERCENTAGE 22 12 40 16 10 100
Inference:
40 % of the respondents go for company reputation. 22 % of the respondents go for reasonable price. 16% of the respondents go for good mileage. 12% of the respondents go for least maintenance. 10% of the respondents go for other factors.
Source: Questionnaire.
S.N O
1 2 3
PERCENTAGE
36 40 24 100
Inference:
40% of the respondents are between 20-40 years of age groups. 36% of the respondents are below 20 years of age groups. 24% of the respondents are above 40 years of age groups.
Source: Questionnaire.
S.NO
MODE OF
NO.OF
PERCENTAGE
RESPONDENT S 76 24 100
76 24 100
Inference:
76% of the respondents purchase CBZ X-TREME in cash. 24% of the respondents purchase CBZ X-TREME in installment.
Source: Questionnaire.
Mode of payment
S.NO
SATISFACTIO N
Yes NO Total
NO.OF RESPONDENTS
88 12 100
PERCENTAGE
1 2
88 12 100
Inference:
88% of the respondents are satisfied with the model of CBZ X-TREME. 12% of the respondents are not satisfied with the model of CBZ X-TREME.
Source: Questionnaire
S.NO
Type of media
NO.OF RESPONDENT S
PERCENTAGE
1 2 3 4
36 47 7 10 100
36 47 7 10 100
Inference:
47% of the respondents came to know through friends/relatives. 36% of the respondents came to know through television. 10% of the respondents came to know through others. 7% of the respondents came to know through hoardings.
Source: Questionnaire
FINDINGS:
50% of the respondents are students
20-40yrs. by full cash payment. model of the CBZ X-TREME. channel of advertisement for CBZ X-TREME.
Generally the respondents were below Respondents says that friends are the Respondents mostly bought splendor Respondents are fully satisfied with the
SUGGESTIONS:
skidding of the vehicle. improved to avoid accidents. built to meet the needs of the both Strong distribution network has to urban and rural customers. Introduce more colors. Handle and balance should be Improve facility to carry luggage. Road grip should be improved to avoid
LIMITATIONS
Every good effort has been pulled in conducting the study assigned to me as project work and done successfully. Yet, limitations do creep I while carrying out such studies and are best tried to minimize those limitations which would suffered during the course of undertaking the project assigned were. This study support to describe the behavior of consumer of kurnool. The reception and co-operation of the consumer of the sample areas is poor, this can be treated as major impediment for the study. The sample is limited to 100 respondents selected randomly. All suggestions and recommendations made in this report are based on the sample of consumer surveyed. and represent the whole of the nation The project had to be completed in three months. Limitation of time is the major obstacle. This sample although statistically effective could not present
BIBLIOGRAPHY
QUESTIONNAIRE
Consumer behavior towards Hero Honda
CBZ X-TREME NAME: OCCUPATION: AGE: 1. Were you using any vehicle before you bought CBZ X-TREME? Yes ( ) No ( ) If yes mention the name of the vehicle.. 2. if CBZ X-TREME was not launched which vehicle would you have bought? Mention: 3: what are the reasons for purchasing CBZ X-TREME? Reasonable Price ( ) ) ) Good Mileage( Easy Installment( Others ( ) ) ) Least Maintenance ( Comfortable riding (
4. who influenced you to purchase CBZ X-TREME? Family members Dealers ( ( ) ) Friends ( ) ) Advertisement(
7. What is the actual mileage per liter that you are getting from CBZ X-TREME? .. KM/LT. 8 Are you satisfied with the model? Yes ( ) No ( ) 9.A ny suggestions for improvements ---------------------------------------------------------------------------------------------------------------------------------------------------------------------10. Over all satisfaction with the performance of CBZ X-TREME? Very high Moderate ( ( ) ) High Low ( ( ) )
Signature.
BIBLOGRAPHY: BEHAVIOR
SCHIFFMAN DELLA BETTA LEON. G.
CONSUMER
MARKETING MANAGEMENT
KOTLER SONTAKKI PHILIP