“CONSUMER PERCEPTION OF A-SEGMENT CAR BUYERS IN

SOUTHERN INDIA”
In partial fulfillment of the requirement for the award of the degree in Master of Business Administration

Submitted by

SAKTHI ANANTH B
Thesis ID: FW/2007-09/HR-24
PGP/FW/07-09/HR

Under the esteemed guidance of

Mrs.Gowri Kailasam

(Vice President, Rane Madras Ltd)

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

IIPM TOWER, 145, MARSHALL’S ROAD, EGMORE, CHENNAI – 600008

1
ABSTRACT

Since Independence production of vehicles in India has grown rapidly. Passenger cars
and utility vehicles are the main segments of the Indian passenger vehicle industry. Within the
passenger car segment, the mini and compact segment together accounts for around 80% of
total volumes. While this is the case, major automobile companies in the world entering the
Indian auto market and focus on the small car segment.

Owning a car is t h e aspiration of every household in India and increasing income

levels gives more opportunity in the passenger cars market. At present, around 30 out of
every 1,000 households in India own a car when compared to the global standards it is very
low. Even if the households that can afford owning a car are considered, the penetration is as
low as 45 per cent. Having said this, of the households affording a car, around 70 per cent
fall at the bottom of the income distribution pyramid and can afford owning a small car
only. Furthermore, the excise duty on small car is lower at 8% as against 20% on big cars. This
would translate into strong growth in the small car segment. The factors like households
affording big cars but opting for small cars on account of their easier maneuverability given
t h e t r a f f i c c o n d i t i o n , parking constraints in metros, poor infrastructure and congested
agglomerations in smaller towns would help pushing the small car sales growth. Furthermore,
rich households opting for small cars as their additional cars either for female or young
members in the family or for smaller trips would also push small car sales.

This study is aimed at understanding the need of a person from Southern India & what
he is looking from the side of car manufacturer. As a primary research initiative, a questionnaire
has been distributed to various people, mostly targeting the younger population of Southern
India. This thesis brings out the changing trends in the market and among the potential
customers. It also points out what need to be done from the manufacturers end.

2
ACKNOWLEDGMENTS

It’s a pleasure to thank the people who have involved themselves and made this thesis possible.

At the outset, I would like to thank my guide, Mrs. Gowri Kailasam (VP-Rane Madras Limited),
who has supported me to a great extent in completing the thesis. I appreciate her enthusiasm and
dedication shown from the start till the end of the thesis work.

I profusely thank Prof. R. Krishnan, Dean-IIPM, who has been very prompt and supportive
during this time.

3
TABLE OF CONTENTS

ABSTRACT...................................................................................................................................................... 2

ACKNOWLEDGMENTS ................................................................................................................................... 3

1.1 INTRODUCTION ....................................................................................................................................... 9

1.2 SCOPE OF THIS STUDY ........................................................................................................................... 10

1.3 NEED AND IMPORTANCE OF THE STUDY .............................................................................................. 10

1.4 OBJECTIVES OF THE STUDY ................................................................................................................... 11

2.1 REVIEW OF LITERATURE ........................................................................................................................ 13

2.2 EXPORT SALES ....................................................................................................................................... 15

2.3 MARKET SHARE OF PASSENGER CARS .................................................................................................. 16

3.1 RESEARCH METHODOLOGY .................................................................................................................. 18

3.2 RESEARCH DESIGN ................................................................................................................................ 18

3.3 DATA COLLECTION ................................................................................................................................ 18

3.4 PRIMARY DATA...................................................................................................................................... 18

3.5 SECONDARY DATA................................................................................................................................. 18

3.6 DESCRIPTIVE RESEARCH DESIGN........................................................................................................... 19

3.7 INFORMATION REQUIRED..................................................................................................................... 19

3.8 RESEARCH PLAN .................................................................................................................................... 20

3.9 STATISTICAL TOOLS ............................................................................................................................... 20

3.10 DATA ANALYSIS AND INTERPRETATION .............................................................................................. 21

3.11 PERCENTAGE ANALYSIS....................................................................................................................... 21

3.12 LANGUAGE SPOKEN TO THE RESPONDENTS ...................................................................................... 21

3.13 TYPE OF OFFERS AT THE TIME OF PURCHASE ..................................................................................... 23

4
3.14 INFLUENCING FACTORS ...................................................................................................................... 25

3.15 AWARENESS FACTORS OF THE RESPONDENTS ................................................................................... 27

3.16 FREQUENCY OF FAMILY TO GO OUT ................................................................................................... 29

3.17 MONTHLY EXPENDITURE FOR TRANSPORTATION .............................................................................. 31

3.18 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR ............................................................................ 33

3.19 OPINION ABOUT THE FOLLOWING THINGS WOULD NOT LIKE TO COMPROMISE ............................. 35

3.20 EXPECTING THE MILEAGE PER LITER................................................................................................... 37

3.21 KIND OF FUEL ENGINE TO GO FOR...................................................................................................... 39

3.22 CHI-SQUARE TABLE ............................................................................................................................. 41

3.23 SEX AND OPINION TOWARDS THE CAR .............................................................................................. 41

3.24 AWARENESS LEVEL AND OPINION TOWARDS THE CAR ..................................................................... 43

3.25 TRAVELING THE AVERAGE KM PER DAY AND OPINION TOWARDS THE CAR ..................................... 45

3.26 TYPE OF FUEL AND OPINION TOWARDS THE CAR .............................................................................. 47

4.1 FINDINGS ............................................................................................................................................... 50

4.2 SUGGESTION AND RECOMMENDATIONS ............................................................................................. 51

4.3 CONCLUSION ......................................................................................................................................... 53

BIBLIOGRAPHY ............................................................................................................................................ 54

ANNEXURE .................................................................................................................................................. 55

5
LIST OF TABLES

TABLE NO. TABLE NAME PAGE NO.

1.1 INTRODUCTION 11

2.1 MARKET SHARE OF PASSENGER CARS 18

3.1 LANGUAGE SPOKEN TO THE RESPONDENTS 23

3.2 TYPE OF OFFERS AT THE TIME OF PURCHASE 25

3.3 INFLUENCING FACTORS 27

3.4 AWARENESS FACTORS OF THE RESPONDENTS 29

3.5 FREQUENCY OF FAMILY TO GO OUT 31

3.6 MONTHLY EXPENDITURE FOR TRANSPORTATION 33

3.7 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR 35

3.8 OPINION ABOUT THE FOLLOWING THINGS WOULD 37

NOT LIKE TO COMPROMISE

3.9 EXPECTING THE MILEAGE PER LITER 39

3.10 KIND OF FUEL ENGINE TO GO FOR 41

3.11 SEX AND OPINION TOWARDS THE CAR 43

3.12 AWARENESS LEVEL AND OPINION TOWARDS THE CAR 45

3.13 TRAVELING THE AVERAGE KM PER DAY AND OPINION 47

TOWARDS THE CAR

3.14 TYPE OF FUEL AND OPINION TOWARDS THE CAR 49

6
LIST OF CHARTS

CHART NO. CHART NAME PAGE NO.

2.1 EXPORT SALES 17

3.1 LANGUAGE SPOKEN TO THE RESPONDENTS 24

3.2 TYPE OF OFFERS AT THE TIME OF PURCHASE 26

3.3 INFLUENCING FACTORS 28

3.4 AWARENESS FACTORS OF THE RESPONDENTS 30

3.5 FREQUENCY OF FAMILY TO GO OUT 32

3.6 MONTHLY EXPENDITURE FOR TRANSPORTATION 34

3.7 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR 36

3.8 OPINION ABOUT THE FOLLOWING THINGS WOULD 38

NOT LIKE TO COMPROMISE

3.9 EXPECTING THE MILEAGE PER LITER 40

3.10 KIND OF FUEL ENGINE TO GO FOR 42

7
CHAPTER 1

8
1.1 INTRODUCTION

The compact car (A-segment) is intensely competitive with the presence of seven
players with as many 16 offerings. The segment has also witnessed the highest number of
launches over the past t w o y e a r s with major ones being Ritz, A-Star, Zen Estilo (from
MSIL), i10, i20 (from HMIL) and Indica Vista, Nano (from Tata Motors Limited - TML).
Overall, the top three market players in the passenger car segment – MSIL, HMIL and TML -
currently dominate the segment. Over a period of time however, this A-segment is likely to
witness some fragmentation as it attracts new players and more aggressive model launches. In
2010, this segment is likely to witness the entry of General Motors, Volkswagen, Ford India
and Nissan. Going forward, all serious players in the Indian market are expected to introduce
products in the compact segment, leading to some fragmentation of the overall segment. In
terms of market share, the top four players currently account for 87.2% of the total volumes
with the rest being spread amongst 14 other players. The overall market share for the top
players is likely to get further fragmented since a number of global majors have significant plans
for the Indian market.

In the other hand the Consumers in Southern India adopted wait and watch approach.
Since the cash flow has been drastically affected because of the economic slowdown,
consumers are increasingly price conscious at the same time they are not willing to give up on
their comfort. The market potential and market intensity index is low comparing to North and
Western parts of India.

9
1.2 SCOPE OF THIS STUDY

This thesis would be a guide line for every manufacturer who brings Segment-A cars in
Indian Market. It would bridges the gap between the customer expectation and affordability of
the manufacturing company.

1.3 NEED AND IMPORTANCE OF THE STUDY

In 2007, India became the 9th largest passenger car producer of the world and the 12th
fastest growing market. In India, the entry level car segment starts in the price range of
Rs.2, 00,000-3, 00,000 and has traditionally been dominated by MSIL but this trend would be
changing soon since many global player are trying the capture the small car market. While the
growth in the domestic car market is expected to remain healthy, the larger choice available to
customers could necessitate aggressive selling efforts, which may in turn result in higher cost
per unit and delays in break evens.

10
1.4 OBJECTIVES OF THE STUDY

To identify the attributes of various A-segment cars that influences on an individual’s

choice among alternatives
To identify the level of preference on petrol cars and diesel cars
To identify the reason for the brand preference over the competing brands

To find out the consumer behavior on various attributes of the products

To find out the consumer satisfaction level on service provided by the dealers and also
towards their product

11
CHAPTER 2

12
2.1 REVIEW OF LITERATURE

A few studies have already been made pertaining of self-perception in general and
relation to the settings. Some of the important studies on the related have been received here.

Dr. Ramamoorthy, K., and Dr. Ponnuraj, S., (2001)1 conducted the study on “Passenger
perception of omnibus services–An analysis”. This study highlighted that “The Omni buses are
lower a refreshing contrast to the government owned buses. The Omni bus operators constantly
endeavor to improve the quality of their services. They aim at passenger comforts and keep their
buses clean. Since their buses are well maintained, breakdowns rarely occur. They are time
conscious. Though they charge higher fare, the public patronize them as their service is good”.

Mr. Ratan N. Tata said2, “I observed families riding on two-wheelers – the father driving
the scooter, his young kid standing in front of him, his wife seated behind him holding a little
baby. It led me to wonder whether one could conceive of a safe, affordable, all-weather form of
transport for such a family”

My View: Most families in India have 2 or more children whereby it is highly impossible for
them to own a four wheeler, this being the case they end up using the public transport or travel in
the two wheeler without any safety. This kind of journey causes pain to the head of the family.
To overcome all these pain & difficulties TATA Motors came up with a new car at an affordable
price for every family who owns a two-wheeler and always dream about buying a car.

1
Dr.K.Ramamoorthy and Dr.S.Ponnuraj, “Passenger perception of Omnibus Servces – An Analysis”, Indian
Journal of Transport Management, Vol. 25, No.6 Oct. – Dec. 2001 P.555
2
Interview to media on 10th January 2008

13
Mark Fields, Ford’s President for US said3“One of every four cars sold worldwide is a small car”

My View: Statement comes at a time when the sales of small cars are high in number than the
combined sales of mid size and luxury car segment. Ford also planning to launch numerous small
cars worldwide whereby it regain its original place in the Industry.

Kevin Wale, President and Managing Director of the GM China Group said 4 “Our
mission has always been to enable more individuals and families to realize their dream of
owning a car,”

My View: Mr. Kevin Wale statement made on news channel shows the importance in the
growing Asian market. Since many companies started joint ventures to produce small cars, this
shows that there would be many models rolling out in the entry segment. Dream of GM & TATA
Motors are the same, they have seen and realized there is a need which they would like to utilize
upon.

3
Statement to press January 11, 2010 European Auto Expo

4
www.publish.media.gm.com/content/media/cn/en/news/news_detail.brand_gm.html

14
2.2 EXPORT SALES

CHART NO.2.1 : EXPORT SALES

My View: This chart shows how the A-Segment car dominates the export market.

Source: SIAM

15
2.3 MARKET SHARE OF PASSENGER CARS

2006-07 (April-Jan) 2007-08 (April-Jan)

Maruti 45.6 48.1
Hyundai 25 24.8
Tata Motors 15.2 12.7
Honda Siel 4.6 4.1
GM 1.3 3.2
Ford 5.2 2.5
Others 3.1 4.6
TABLE : 2.1 : MARKET SHARE OF PASSENGER CARS

My View: The above trend would not last long because GM, Honda & Ford are about to
launch their small cars in Indian market by early 2010, this would change the top 3 positions in
the chart.

Source: ACMA

16
CHAPTER 3

17
3.1 RESEARCH METHODOLOGY

3.2 RESEARCH DESIGN

It is a conceptual structure within which research has been conducted. Thus the
preparation of such a design facilitates research to be as efficient as possible and will yield max
information.

3.3 DATA COLLECTION

In a broader sense we can say that two types of data are available to a researcher. They are:-
Primary Data
Secondary Data

3.4 PRIMARY DATA

Data are collected for the first time for a specific purpose in mind using the questionnaire method.
Questionnaire collected through personal contact.

3.5 SECONDARY DATA

The data that already collected and published are referred through the company sales guide and
websites.

18
3.6 DESCRIPTIVE RESEARCH DESIGN

Descriptive research design includes surveys and fact findings, enquires of different
kinds. The major purpose of Descriptive research is description of state of affairs, as it exists at
present. In social business research we quiet often use the term Ex post facto research for
descriptive studies.

The main characteristics of this method are that the researcher has no control over the
variable; he can only report what has happened or what is happening. Most Ex post facto
research projects are used for descriptive studies in which the researcher seeks to measure such
items, for example, frequency of shopping, and consumer preferences on products or services.

Descriptive Research method will be applicable to the existing problem. Here the study is
conducted for a fact i.e., to know the “Customer perception on A-segments cars”. So the process
was conducted through questionnaire.

3.7 INFORMATION REQUIRED

Demographic profiles of the respondents

Information on factors influencing respondents while choosing a particular brand
of car. On which brand the respondents are interested in and the reason why they
are stick on to the particular brand. Whether they will switch over to other brands

19
3.8 RESEARCH PLAN

Data source : Primary and Secondary data

Research Approach : Survey method

Research Instrument : Questionnaire

Contact method : Direct – Person

Sample size : 150

3.9 STATISTICAL TOOLS

To analyze the data the following tools were applied:

 Percentage Analysis
 Weighted average

20
3.10 DATA ANALYSIS AND INTERPRETATION

3.11 PERCENTAGE ANALYSIS

3.12 LANGUAGE SPOKEN TO THE RESPONDENTS

No.of
S.No. Language Percentage
Respondents

1. Tamil 123 82.0

2. Malayalam 12 8.0

3. Telugu 8 5.3

4. Kanada 0 0

5. Other 7 4.7

Total 150 100.0

TABLE NO.3.1 : LANGUAGE SPOKEN TO THE RESPONDENTS

IMPRESSION

It could be inferred from the above table that 82.0% of the respondents are speak to tamil
language, 8.0% of the respondents are speak malayalam, 5.3% of the respondents are speak
telugu and 4.7% of the respondents are speak to other languages.

It is concluded from the analysis that majority (82.0%) of the respondents are speak to
tamil language.

21
CHART NO.3.1: LANGUAGE SPOKEN TO THE RESPONDENTS

22
3.13 TYPE OF OFFERS AT THE TIME OF PURCHASE

No. of
S.No. Offers Percentage
Respondents

1. Fashion Gifts 30 20.0

2. Extra Accessories 58 38.7

3. Free service coupon 34 22.7

4. Cash discount 28 18.7

Total 150 100.0

TABLE NO.3.2 : TYPE OF OFFERS AT THE TIME OF PURCHASE

IMPRESSION

It is clear from the above table that 20.0% of respondents are opined that fashion gifts are
most preferable offer at the time of purchase, 38.7% of respondents are opined that extra
accessories, 22.7% of the respondents are opined that free service coupon and the remaining
18.7% of the respondents are opined that cash discount.

It is concluded from the analysis that majority (38.7%) of respondents are opined that
extra accessories are most preferable offer at the time of purchase.

23
CHART NO.3.2 : TYPE OF OFFERS AT THE TIME OF PURCHASE

24
3.14 INFLUENCING FACTORS

No. of
S.No. Factors Percentage
Respondents

1. Dealer 15 10.0

2. Family & friends 49 32.7

3. Advertisement 24 16.0

4. Brand name 62 41.3

Total 150 100.0

TABLE NO.3.3 : INFLUENCING FACTORS

IMPRESSION

The above table shows that among 150 respondents, 10.0% of the respondents are
influenced by dealers, 32.7% of the respondents are influenced by their family & relatives,
16.0% of the respondents are influenced by advertisement and (41.3%) of the respondents are
influenced by brand name.

It is concluded from the analysis that majority (41.3%) of the respondents are influenced
by brand name.

25
CHART NO.3.3 : INFLUENCING FACTORS

26
3.15 AWARENESS FACTORS OF THE RESPONDENTS

S.No. Factors Low Medium High

33 74 43
1. Competitor vehicle

(22.0) (49.3) (28.7)

24 64 62
2. Specification in the vehicle

(16.0) (42.7) (41.3)

12 58 80
3. Features in the vehicle

(8.0) (38.7) (53.3)

TABLE NO.3.4 : AWARENESS FACTORS OF THE RESPONDENTS

IMPRESSION

From the above table it is cleared as follows :

Majority (49.3%) of the respondents are medium level of awareness for the competitor
vehicle
Majority (42.73%) of the respondents are medium level of awareness for the specification
in the vehicle
Majority (53.3%) of the respondents are high level awareness for the features in the
vehicle

27
CHART NO.3.4 : AWARENESS FACTORS OF THE RESPONDENTS

28
3.16 FREQUENCY OF FAMILY TO GO OUT

No. of
S.No. Frequency Percentage
Respondents

1. Occasionally 41 27.3

2. Moderate 75 50.0

3. Frequent 34 22.7

Total 150 100.0

TABLE NO.3.5 : FREQUENCY OF FAMILY TO GO OUT

IMPRESSION

The above table shows that out of 150 respondents, 27.3% of the respondents are
occasionally to go out, 50.0% of the respondents are moderate to go out the family and 22.7% of
the respondents are frequently to go out for their family.

It is concluded from the analysis that majority (50.0%) of the respondents are moderate to
go out the family

29
CHART NO.3.5 : FREQUENCY OF FAMILY TO GO OUT

30
3.17 MONTHLY EXPENDITURE FOR TRANSPORTATION

No. of
S.No. Expenditure Percentage
Respondents

1. Below Rs.1500 30 20.0

2. Rs.1500 to 5000 86 57.3

3. Above Rs.5000 34 22.7

Total 150 100.0

TABLE NO.3.6 : MONTHLY EXPENDITURE FOR TRANSPORTATION

IMPRESSION

It is cleared from the above table that 20.0% of the respondents are spend below Rs.1500
for transportation, 57.3% of the respondents are spendRs.1500-5000 for transportation and
22.7% of the respondents are spend above Rs.5000 for transportation.

It is concluded from the analysis that majority (57.3%) of the respondents are
spendRs.1500-5000 for transportation.

31
CHART NO.3.6 : MONTHLY EXPENDITURE FOR TRANSPORTATION

32
3.18 APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR

No. of
S.No. Price Percentage
Respondents

1. Rs.90000 to 1 lakh 5 3.3

2. 1 lakh to 2.5 lakhs 41 27.3

3. 2.5 lakhs to 4 lakhs 70 46.7

5. 4 lakhs & above 34 22.7

Total 150 100.0

TABLE NO.3.7 : APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR

IMPRESSION

It is observed from the above table that 3.3% of the respondents are opined that the
appropriate price is Rs.90000 to 1 lakh, 27.3% of the respondents are opined that the appropriate
price is 1 lakh to 2.5 lakh, 46.7% of the respondents are opined that the appropriate price is 2.5
lakh to 4 lakh and 22.7% of the respondents are opined that the appropriate price is 4 lakh and
above.

It is concluded from the analysis that majority (46.7%) of the respondents are opined that
the appropriate price is 2.5 lakh to 4 lakh.

33
CHART NO.3.7 : APPROPRIATE PRICE TAG FOR THIS SEGMENT CAR

34
3.19 OPINION ABOUT THE FOLLOWING THINGS WOULD
NOT LIKE TO COMPROMISE
No. of
S.No. Opinion Percentage
Respondents

1. Price 28 18.7

2. Safety feature 71 47.3

3. Design (Interior &

25 16.7
Exterior)

4. Engine performance
12 8.0
(Also speed)

5 Maintenance 12 8.0

6 Others 2 1.3

Total 150 100.0

TABLE NO.3.8 : OPINION ABOUT THE FOLLOWING THINGS WOULD NOT LIKE TO
COMPROMISE

IMPRESSION

It is suggested from the above table that 18.7% of the respondents are not compromise to
price, 47.3% of the respondents are not compromise to safety features, 16.7% of the respondents
are not compromise to design (Interior and exterior), 8.0% of the respondents are not
compromise to engine performance (also speed) and maintenance and only 1.3% of the
respondents are not compromise to other factors.

It is concluded from the analysis that (47.3%) of the respondents are not compromise to
safety features.

35
CHART NO.3.8 : OPINION ABOUT THE FOLLOWING THINGS WOULD NOT LIKE
TO COMPROMISE

36
3.20 EXPECTING THE MILEAGE PER LITER

No. of
S.No. Opinion Percentage
Respondents

1. 6-10 (Superfast cars) Km 5 3.3

2. 11-14 Km 92 61.3

3. 15 & above Km 53 35.3

Total 150 100.0

TABLE NO. 3.9 : EXPECTING THE MILEAGE PER LITER

IMPRESSION

It is explained from the above table that 3.3% of the respondents are expected 6-10km per
liter, 61.3% of the respondents are expected 11-14 km per liter and 35.3% of the respondents are
expected 15 and above km per liter.

It is concluded from the analysis that majority (61.3%) of the respondents are expected
11-14 km per liter.

37
CHART NO.3.9 : EXPECTING THE MILEAGE PER LITER

38
3.21 KIND OF FUEL ENGINE TO GO FOR

No. of
S.No. Opinion Percentage
Respondents

1. Diesel 59 39.3

2. Petrol 52 34.7

3. CNC 16 10.7

4. Duel Fuel 23 15.3

Total 150 100.0

TABLE NO.3.10 : KIND OF FUEL ENGINE TO GO FOR

IMPRESSION

It is observed from the analysis that 39.3% of the respondents are using diesel, 34.7% of
the respondents are using petrol, 10.7% of the respondents are using CNC and 15.3% of the
respondents are using duel fuel.

It is concluded from the analysis that majority (39.3%) of the respondents are using diesel
for their car.

39
CHART NO.3.10 : KIND OF FUEL ENGINE TO GO FOR

40
3.22 CHI-SQUARE TABLE

3.23 SEX AND OPINION TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between sex and

opinion towards the car

Alternative Hypothesis (H1) - There is close significant relationship between sex

and opinion towards the car

S. Opinion towards the car

Sex Total
No. Excellent Good Poor

1 Male 36 48 23 107

2 Female 1 24 18 43

Total 37 72 41 150

TABLE 3.11 : SEX AND OPINION TOWARDS THE CAR

41
RESULT :

Calculated 2 Value = 17.619

Degree of Freedom = 2

Table value = 5.991

Significant level = Significant at 5% level

IMPRESSION

It is obvious from the above result that calculated chi-square value greater than the table
value. Hence, Null Hypothesis accepted. So, we conclude that, there is a close significant
relationship between sex and opinion towards the car.

42
3.24 AWARENESS LEVEL AND OPINION TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between

awareness level and opinion towards the car

Alternative Hypothesis (H1) - There is close significant relationship between

awareness level and opinion towards the car

S. Awareness Opinion towards the car

Total
No. level Excellent Good Poor

1 Low 8 8 7 23

2 Medium 16 32 30 78

3 High 13 32 4 49

Total 37 72 41 150

TABLE 3.12 : AWARENESS LEVEL AND OPINION TOWARDS THE CAR

43
RESULT :

Calculated 2 Value = 16.457

Degree of Freedom = 4

Table value = 9.488

Significant level = Significant at 5% level

IMPRESSION

It is obvious from the above result that calculated chi-square value greater than the table
value. Hence, Null Hypothesis accepted. So, we conclude that, there is a close significant
relationship between awareness level and opinion towards the car.

44
3.25 TRAVELING THE AVERAGE KM PER DAY AND OPINION
TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between

traveling the average km per day and opinion
towards the car

Alternative Hypothesis (H1) - There is close significant relationship between

traveling the average km per day and opinion
towards the car

Opinion towards the car

S.No. Opinion Total
Excellent Good Poor

1 <25km 11 22 10 43

2 25 to 40 km 19 31 29 79

3 >40km 7 19 2 28

Total 37 72 41 150

TABLE 3.13 : TRAVELING THE AVERAGE KM PER DAY AND OPINION TOWARDS THE CAR

45
RESULT :

Calculated 2 Value = 10.659

Degree of Freedom = 4

Table value = 9.488

Significant level = Significant at 5% level

IMPRESSION

It is obvious from the above result that calculated chi-square value greater than the table
value. Hence, Null Hypothesis accepted. So, we conclude that, there is a close significant
relationship between traveling the average km per day and opinion towards the car.

46
3.26 TYPE OF FUEL AND OPINION TOWARDS THE CAR

Null Hypothesis (H0) - There is no significant relationship between type of

fuel and opinion towards the car

Alternative Hypothesis (H1) - There is close significant relationship between type

of fuel and opinion towards the car

S. Opinion towards the car

Fuel Total
No. Excellent Good Poor

1 Diesel 8 32 19 59

2 Petrol 17 19 16 52

3 CNG 7 6 3 16

4 Duel fuel 5 15 3 23

Total 37 72 41 150

TABLE 3.14 : TYPE OF FUEL AND OPINION TOWARDS THE CAR

47
RESULT :

Calculated 2 Value = 13.326

Degree of Freedom = 6

Table value = 12.592

Significant level = Significant at 5% level

IMPRESSION

It is obvious from the above result that calculated chi-square value greater than the table
value. Hence, Null Hypothesis accepted. So, we conclude that, there is a close significant
relationship between type of fuel and opinion towards the car.

48
CHAPTER 4

49
4.1 FINDINGS

 It is observed from the analysis that majority (82.0%) of the respondents are speaking
tamil language
 It is clear from the analysis that majority (38.7%) of respondents are opined that extra
accessories are the most preferable offer at the time of purchase
 It is stated from the analysis that majority (41.3%) of the respondents are influenced by
brand name
 Majority (49.3%) of the respondents are having medium level of awareness for the
competitor vehicle
 Majority (42.73%) of the respondents are having medium level of awareness for the
specification in the vehicle
 Majority (53.3%) of the respondents are having high level awareness for the features in
the vehicle
 It is found from the analysis that majority (50.0%) of the respondents are moderate to go
out with their family
 It is clear from the analysis that majority (46.7%) of the respondents are opined that the
appropriate price is 2.5 lakhs to 4 lakhs
 It is suggested from the analysis that majority (61.3%) of the respondents are expecting
11-14 km per liter
 It is explained from the analysis that majority (39.3%) of the respondents are using diesel
for their car
 There is a close significant relationship between sex and opinion towards the car
 There is a close significant relationship between awareness level and opinion towards the
car
 There is a close significant relationship between traveling the average km per day and
opinion towards the car
 There is a close significant relationship between type of fuel and opinion towards the car

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4.2 SUGGESTION AND RECOMMENDATIONS

 Most of the respondents are not aware of the price level of A-segment cars. Because of
that they (especially upper middle class customers) perceived car is too costly to afford.
This reason majorly influences some respondents to go for competitor’s brand. So proper
communication can be given to the public and proper positioning (price) can be done in
order to remove the constraint. (Psychological Positioning)

 Many of the respondents’ opinion are that Tata Sumo vehicles are more spacious.
Because the outer view of the Tata Sumo vehicles looks very bigger than A-segment cars.
It is the running advantage for the competitor, that they had positioned their product
which having bigger inside space even though it had smaller space. So the company can
clearly differentiate the product, features and space aspect

 Though the cars are giving good mileage in long distance travelling, the mileage within
the city limit travelling is less. So the company can try to improve the mileage level, so
that the sales can be improved

 The company can work on diesel versions in the cars. Because of day-to-day increase in
fuel price, many of them are preferring diesel version cars to save the fuel costs in long
run

 The company can open more service outlets at various places apart from dealers point by
giving franchise to outsiders. So that the service network can be expanded rapidly this
aids the company to satisfy the respondent’s expectation which may leads to increase

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 The company can go for providing plus 1 service to the respondents in order to delight
the respondents. Birthday wishes through cards or telephone, Yearly get together of
consumers at Dealership point with entertainment and competitions, Free General Check
up camps for the product. So that in the long run it creates more references and consumer
base. And it enhances relationship marketing

 Care should be taken to improve the service efficiency that aids to retain the existing
respondents

 The company can also think on providing low price models in order to cover all the class
of respondents from middle class to upper middle class respondents and also to compete
with existing players in the market

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4.3 CONCLUSION

In this competitive world, every company has to make valuable decision for profit
maximization through sales maximization. Every organization should strive to make consumer
satisfaction its work culture. In order to ensure development of such a culture, the initiative has
to come from the top management who, by their thinking, direction and action, should convey
clear message down the line without any ambiguity. It should not happen that the organization
keeps this lofty objective only for publicity and lip service and actual actions are oriented in
some other directions. The management should ensure that the staffs are trained to service the
customer in a way that leaves a lasting impression on him.

In the automotive industry, service differentiation only highlights the company from the
competitors. The project is done for A-segment cars. The project identifies the Consumer
perception of A-segment cars. It also provides some strategies to increase consumer preference
on A-segment cars and makes the consumers satisfied and loyal.

The organization should ensure that its systems like quality, performance, service and
compliant cell are designed to achieve excellence and customer delight.

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BIBLIOGRAPHY

 KOTHARI C.R., “Research Methodology”, Wishwa Prakasam, New Delhi, 1999

 KOTLER PHILIP, “Marketing Management”, Prentice hall of India Pvt. Ltd., New
Delhi, 2000

 TOP GEAR – Magazine (Editions between 2008 to 2009)

 WWW.CARWALE.COM

 CAR & BIKE SHOW – NDTV

 OVERDRIVE – Magazine (Editions in 2009)

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 ANNEXURE
SURVEY ON A-SEGMENT CAR BUYERS

NAME:

SEX: MALE FEMALE

LANGUAGE SPOKEN: TAMIL MALAYALAM TELUGU KANADA OTHER

NOTE: KINDLY PUT TICK MARK ON APPROPRIATE ANSWERS AND GIVE EXPLANATION IF NEEDED IN THE BLANK
PROVIDED. A-SEGMENT COMES UNDER SMALL CARS EXAMPLE NANO, INDICA, 800 & SO ON.

Q1) What kind of offer would you look for at the time of purchase?

Fashion Gifts

Extra Accessories

Free service coupon

Cash discount

Anyother,Specify…………………………………………………………………………...

Q2) Which of the following does influence you more?

Dealer

Family & Friends

Advertisement

Brand name

Anyother,Specify………………………………………………………………………

Q3) Your awareness in the following areas

Low Medium High

a. Competitor Vehicle
b. Specification in the vehicle
c. Features in the vehicle

Q4) Average kilometer you travel per day?

< 25km 25 to 40km > 40km

Q5) How often you and your family go out?

Occasionally Moderate Frequent

55
Q6) Your monthly expenditure for transportation?

< Rs1500 Rs1500 to 5000 >Rs5000

Q7) What would be appropriate price (Rs) tag for this segment car?

90000 to 1Lakh 1lakh to 2.5 lakh 2.5lakh to 4lakh 4lakh & above

Q8) Which of the following things you would not like to compromise on?

Price Safety feature Design (Interior & Exterior)

Engine performance (Also speed) Maintenance

If any other,
specify………………………………………………………………………………………………
……………

Q9) How much mileage you expect per liter?

6-10 (Super fast cars) Km 11-14Km 15 & above Km

Q10) What kind of fuel engine you go for?

Diesel Petrol CNG Duel fuel

Any other,
specify………………………………………………………………………………………………
……………

Q11) Tick the following features according to your need?

Yes Maybe No

Air bag

ABS

Parking sensors

Large Boot Space

High Ground Clearance

Rugged Suspension

Increased Steering Radius

Anyother,specify………………………………………………………………………………..

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