Need for the Study (Statement of the

problem)
TVS motorcycles have increased its sales in the motorcycle industry

but at the same time it has failed to get a major share in the premium

segment where it had introduced products such as apache, and

Fiero.The Company is facing stiff competition from other major

players like Hero Honda, which has launched Hero Honda CBZ

Extreme segment. Also bajaj is yet another major player in this

segment, which targeted the premium, market with its pulsar 150 and

other pulsars. Hence it is to understand the reasons that are taken into

consideration while purchasing a premium segment motorcycle. so it is

highly important for marketer and to know the consumer behavior in

the purchase of the product.

The other two segments are the Economy segment (which is the 100 cc

Motorcycles) and the executive segment (which is the 125 cc.

motorcycles). For the Economy segment Hero Honda has targeted the

market with products like CDDawn,CD-Deluxe, Splendor NXG,

Splendor+ and Passion Plus. Bajaj Auto has targeted the Economy

segment with its Bajaj CT 100 and platina, which has the largest
market share in that particular segment. TVS has got star city and

Victor for the Economy segment. Premium segment is being classified

as all those motorcycles with 150 cc. And above. Here Hero Honda

has come out with Achiever, CBZ extreme, hunk and Karizma. Bajaj

Auto has come out with Bajaj Pulsar and Bajaj Avenger 200.

Objectives of the study:

♦ To analyze buying behavior of customers

♦ To access the customers’ expectations from the product

♦ To examine the consumer’s attitudes towards different premium

bikes

♦ To know what influences the purchase of the product

Scope of Study

The area of scope is limited to the segment selected within the town of

Delhi. Further the scope is narrowed down only to the study of the

identified segments. The result drawn from this study is expected to

benefit the dealers and the company

INDUSTRY PROFILE

INDIAN AUTOMOBILE INDUSTRY: AN

INTRODUCTION

With five thousand years of history behind it, a five decade young

nation and the largest democracy in the world, India today has the

second largest volume of human resource in the world. It has no more

than 2.5 per cent of global land but is the home of one sixth of the

world's population of more than 1.1 billion. India possesses one of the

richest reserves of biodiversity, minerals and metals, soils and water,

flora and fauna in this part of the globe and has climatic conditions

suitable for round the year economic activity in any part of the nation.

More than five decades of sustained and planned developmental

INITIATIVE IN India has fielded substantive results on social and

economic fronts. Assisted by a comprehensive performs programmed

since early 1990s, GDP growth in the post perform period has

improved from an average of about 5.7 per cent in the 1980s to an

average of 6.1per cent in the last decade, making India one of the

fastest growing developing countries. Indeed, in the current year, India

is amongst five fastest growing economies of the world. In terms of

purchasing power parity (PPP), India is world's fourth largest

economy. The incidence of poverty has continued to decline and

population growth has also decelerated below 2 per cent for the first

time in four decades. However, like the rest of the world, last two

years of general economic slow down has adversely affected India

also. However, the strong fundamentals of the Indian economy have

not permitted pace of growth to decelerate much.

INDIAN AUTOMOBILE INDUSTRY:

BACKGROUND INFORMATION

In India, as in many other countries, the auto industry is one of the

largest industries. It is one of the key sectors of the economy. The

industry comprises of automobile and the auto component sectors and

encompasses commercial vehicles, multi utility vehicles, passenger

cars, two wheelers, three wheelers, tractors and related auto

components. The industry has shown great advances since delicensing

and opening up of the sector to Foreign Direct Investment (FDI) in

1993. It has deep forward and backward linkages with the rest of the

economy, and hence, has a strong multiplier effect. This results in the

auto industry being the driver of economic growth and India is keen to

use it as a lever of accelerated growth in the

country.
In India, since the early 1940s when the auto industry rolled out first

passenger car,

its significance in the economy has progressively increased. However,

from its early days until the mid-1980s for two-wheelers and LCVs

and until the early 1990s for passenger cars, the focus of development

of the automotive industry has been on import substitution. The

current low penetration levels in India in all three segments of the

industry, namely commercial vehicles, passenger cars and two

wheelers and under-exploitation of the potential of this industry to

foster the growth of the economy have resulted in the auto industry

contributing a relatively low (nearly 5 per cent) share of industrial

output in India compared to the 8-10 percent range in other developing

countries and around 15 per cent in mature economies.

During last decade, conscious efforts have been made to find-tune state

policyperspective in a manner that this industry realizes its full

potential in the economy. With this, the industry has shown great

advances since abolition of licensing in 1991 and automatic approval

permitted up to 51 per cent foreign investment in priority sectors that

included the automotive industry, except passenger car manufacture.

Motor car manufacture was freed from licensing in April 1993. Public

policy dispensation requiring new joint venture car

manufactures to commit certain levels of phased indigenization,

minimum investments in manufacturing facilities, neutralization of

foreign exchange on imports with the exports of cars and components,

etc. was withdrawn in September 2001 as a major initiative to bring

policy framework in step with WTO requirements. The quantitative

restrictions on imports were removed with effect from 1st April 2001.

Thus Industrial licensing and foreign investment regime in the country

has been progressively liberalized. The freeing of the industry from

restrictive environment has on the one hand helped it to restructure,

absorb new technologies, align itself to the global developments and

realize its potential; on the other hand, this has significantly increased

industry's contribution to overall industrial growth in the country.

There are at present 13 manufacturers of passenger cars and multi

utility vehicles, 7 manufacturers of commercial vehicles, 11 of 2 or 3-

wheelers and 10 of tractors besides 4 manufacturers of engines. The

industry has an investment of a sum ex ceding US$ 10 billion. During

1999-2000 the turnover of the automotive industry as a whole was

US$ 12.5 Billion approximately. The industry employees 5,00,000

people directly and more than 10 million people indirectly and is now

inhabited by global majors in keen competition. The arrival of most

international automotive giants in India has set the stage for an

exponential growth in the component industry's levels of technology,

quality and competitiveness. At the same time, the arrival of new and

contemporary models has stimulated demand for vehicles in the

market. The auto industry has achieved a cumulative annual growth

rate (CAGR) of 22 per cent 1992-1997 (or approx. 13 to 14 per cent in

real terms) outstripping industries production growth by about 30 per

cent. This has led to an increase in its contribution to industrial output

from 4.3 per cent in 1992-1993 to 5.4 per cent by 1996-1997.The

component industry in the same period has grown by a CAGR of 28

percent. With this the contribution of automobile industry to the GDP

has risen from 2.7 per cent of GDP in 1992 -1993 to 4.5 per cent by

1996-1997. However, with a world wide economic slow down, auto

industry's growth pattern has shown a downward trend in last two

years.

Main Export Destinations

Cars: Egypt, Kenya, Nigeria, Somalia, Tanzania, Afghanistan, Nepal,

Turkey, Hungary, Greece, Italy, Netherlands, Spain, Austria, Malta.

Commercial vehicles : Egypt, African countries, Nepal, Srilanka,

Jordan, Kuwait, Hungary., Russian Federation, France, Brazil.
Two-wheelers: African countries. Bangladesh, Srilanka, Turkey,
United Arab Emirates, Paraguay. United Kingdom, Germany,

Argentina, Mexico, Australia, Hong Kong, China.

The auto component industry in India now equipped with significant

advancement in its technological capabilities, due to its alignment with

major vehicle manufacturers in the country and abroad, has a high

export potential. During the late 1990s, the export of auto components

has grown by a CAGR of about 20 percent, currently; the share of

exports out of the total production of auto component is 10 per cent.

AUTOMOBILE INDUSTRY: FUTURE

PROJECTIONS
With the domestic auto industry now moving in step with the WTO

covenants, the stage is set for it to make rapid strides domestically and

internationally to attain its rightful place in the world trade. A global

recession for last two years notwithstanding, the industry has shown

appreciable resilience and adjusted to the challenges of the

environment.
This growth estimate implies certain assumptions relating to segment-

wise growth rates based on a study conducted by the National Council

of Applied Economic Research (NCAER)

Projected growth of exports

As mentioned earlier, the Indian economy is now increasingly in step

with the world environment of free trade and liberal movement of

goods and services cutting across inter country barriers. In such

environment, Indian exports in sectors such as automobile and auto

components are expected to grow faster than many other sectors. This

is also due to India's competitiveness and quality-consciousness now

finding increasing acceptability across the world. Keeping these in

view, India's export turnover is expected to more in the following

manner in next few years.

Recent trends in Indian Automobile sector

Globalization is pushing auto majors to consolidate, to upgrade

technology, enlarge product stage, access new markets and cut costs.

They have resorted to common platforms, modular assemblies and

systems integration of component suppliers and ecommerce. The

component industry is undergoing vertical integration resulting into

emergence of 'systems and assembly suppliers' rather than individual

component suppliers. Thus, while most component suppliers are

integrating into tier 2 and tier 3 suppliers, larger manufacturers and

multinational corporations are being transformed into tier 1company.

Environmental and safety concerns are leading to higher safety and

emission norms in the country. India has ready charted out a road map

for reaching EURO-II norms across the country by the year 2005.

Most vehicle manufactures are already producing EURO-II compliant

vehicles in the country to meet special requirements of capital city of

New Delhi where the Supreme Court verdict has already necessitated

this. To meet the concomitant testing and certification activities

relating to higher safety and emission norms, testing infrastructure in 1

the country is being overhauled. A substantive state funding is being

planned in upgrading the testing infrastructure with participation of

industry.

Environmental pollution and the need to conserver existing supply of

fossil fuels have led to search for alternative fuels. In addition to

supporting Greenfield research in this area, an ambitious phased

programmed to upgrade carbon fuel quality commensurate with

higher emission norms is also being undertaken. Foreign direct

investment norms have already been considerably relaxed. Unhindered

import of automobiles, including new and second hand vehicles, has

also been permitted. Most non-tariff barriers have also been relaxed or

removed. The Government has moderated and lowered taxes and

duties on automobiles, including customs duty. Value Added Tax

(VAT) is also proposed to be introduced across the country from I

April 2001. The Government has also allowed private sector

participation in the insurance sector. Norms guiding external

commercial borrowings (ECBs) have been liberalized and lending

rates within the country have also been reduced further strengthening

the environment of investment. An ambitious programme to upgrade

the quadrilateral of highways in the country, the Government is laying

a eight-lane expressway linking all metropolitan and several important

capital towns across the country paving the way for movement of

heavier haulage vehicles.

LIMITATIONS OF THE STUDY

􀂾 Area of collection is spread

􀂾 Time limit for the study is less as the customers are scattered.

􀂾 Premium segment customers are less in the market

SCOPE OF THE STUDY
􀂾 To find the customer purchase pattern in the premium segment

motorcycle.

􀂾 To find the factors that are most considered when a motorcycle in

the premium segment is being sought

RESEARCH DESIGN

Research design is the arrangement of conditions for collection and

analysis of data in a manner that aims to combine relevant to the

research purpose with economy in procedure. In fact, the researcher

design is the conceptual structure within which research is conducted;

it constitutes the blue print for the collection, measurement and

analysis of data.

The main aim of the study is to measure the awareness, preferences,

attitude and perception of people toward premium segment motorbike

(150+cc,sporty, fuel,efficient and four strokes) and to find out what

attributes attract the most to the consumer in a motorbike. Marketing

research studies can be broadly classified into three basic types

namely, exploratory, descriptive and casual, depending on the

objectives and prior knowledge on the issues being examined. The

study conducted is Exploratory in nature. The major emphasis of

exploratory research is on the discovery of ideas. Next comes the

question of selecting the methods by which the data are to be obtained.

In other words techniques for collecting the information must be

devised. Several methods like observation, questionnaire,

interviewing, examination of records, etc., so survey method is used

for the study. Surveys are usually undertaken to learn about people’s

knowledge, belief, preference, satisfaction and to measure these

magnitudes in the population.

SAMPLING TECHNIQUE

The researcher decided the type of sampling technique used in this

study is Convenience Sampling Method. In fact, this technique or

procedure stands for the sample design itself. There are several sample

designs out of which the researcher must choose one for his study. In

this survey the sampling procedure consists of all people who own and

are aware about motorbikes. It could a student, an employee, a

business man, etc. In this survey the sample size of the respondents is

in the age group of 18-60 and includes a total of 50 respondents who

lives in the Bangalore city and were interviewed for the purpose of this

study.

METHODS OF DATA COLLECTION

􀂾 Primary Data Collection

􀂾 Sampling was carried out

Data was collected through interviews conducted focusing those

owners of the major motorcycle players in the premium segment (150

cc+.). The customers were met at Service Stations, Parking Lots and at

Petrol Pumps and questions were asked about their satisfaction

regarding Service quality provided to them by the motorcycle

companies. Also questions regarding the factors that are taken into

consideration while purchasing is motorcycle is noted. Even questions

to know the Brand Recall is also being asked .Factor analysis was used

to know the reason regarding which Factors customers give more

importance when purchasing a premium segment motorcycle. The

Indian two wheelers contribute the largest volumes amongst all the

segments in automobile industry. Though the segment can be broadly

categorized into three sub segments viz; scooters, motorcycles and

mopeds. The market primarily comprises five players in the two-

wheeler segment and is now many of them have set up 100%

subsidiary.

In the last four to five years, the two-wheeler market has witnessed a

market shift towards motorcycles at the expense of scooters. In the

rural areas, consumers have come to prefer sturdier bikes to withstand

the bad road conditions. In the process the share of motorcycle

segment has grown from 54 % to 64 %, the share of scooters declined

drastically from 33 % to 25 %, while that of mopeds declined by 2 %

from 13 % to 11 % during the 2006-07. The Euro emission norms

effective from April 2000 led to the existing players in the two-stroke

segment to install catalytic converters. All the new models are now

being replaced by 4-stroke motorcycles. Excise duty on motorcycles

has been reduced from 32 % to 24 %, resulting in price reduction,

which has aided in propelling the demand for motorcycles. Fierce

competition has also forced players to cut prices of certain

models.Competition has intensified over the last couple of years

altering the dynamics in the motorcycle segment with various

companies.While the premium bike market has seen a steady increase

in growth of about 30-33% in sales, bikes in the 100cc segment have

seen a steady decline in growth rate. While the rising interest rates

have affected sales in the entry level segment, they have not affected

sales of bikes in the premium segment. Even as Hero Honda remains

as the market leader in 100cc segment with over 67% share, it is still to

catch up with Bajaj, which is market leader in the premium segment.

While Bajaj has a more than 60% market share, Hero Honda has

around 18%. However, Hero Honda's has had a fast growth in this
segment doubling its volume and share in the last nine months. Hero

Honda’s overall share in the two-wheeler market stands at 52%

MOTORCYCLE COMPANIES OF INDIA

HERO HONDA

The Joint Venture between Hero Group, the world's largest bicycle

manufacturers and the Honda Motor Company of Japan, has today

become the World's single largest two wheeler Company. The Joint

Venture came into existence on January 19, 1984, Hero Honda Motors

Limited gave India nothing less than a revolution on two-wheels made

even more famous by the 'Fill it - Shut it - Forget it ' campaign. Driven

by the trust of over 5 million customers, the Hero Honda product range

today commands a market share of 48% making it a veritable giant in

the industry. Add to that technological excellence, an expansive dealer

network, and reliable after sales service, and you have one of the most

customer- friendly companies. Customer satisfaction, a high quality

product, the strength of Honda technology and the Hero group's

dynamism have helped Hero Honda scale new frontiers and exceed

limits. Hero Honda became the first company in the country to

introduce four-stroke motorcycles and set the standards for fuel

efficiency, pollution control and quality. It has an excellent distribution

and service network spread throughout the country.

The Company's success has been driven by customer centric policies

and teamwork to achieve progress and productivity. The philosophy of

Hero Honda emphasizes the "Pursuit of Excellence" in designing and

manufacturing technologically and qualitatively superior products and

in creating economic value for its stakeholders. It takes care of its

customers through value based competitive pricing and good after

sales service. Excellent marketing, finance and loan services, an

efficient dealer network, tactical promotion comprising of fuel

conservation campaigns, mobile workshops, safety driving courses

and others, all placed Hero Honda in a league distinct from the

conventional. The Company focuses on providing "Value for Money"

through its pricing strategies and after sales services.

TVS MOTOR COMPANY LTD

TVS Motor Company Limited, the flagship company of the USD 2.7

billion TVS Group, is the third largest two-wheeler manufacturer in

India and among the top ten in the world, with an annual turnover of

over USD 740 million. The company is the only two-wheeler

manufacturer in the world to be honored with the hallmark of Japanese

Quality . The Deming Prize for Total Quality Management. TVS is

expected to close this year with a growth of 18% in motorcycle sales

and which is the highest ever achieved in the history of TVS Motor

Company. The Economy segment accounts for about 39 % of the total

motorcycle category. TVS Apache, the new 150 cc sensation and the

winner of three ‘bike of the year’ awards by leading Auto Magazines

received an overwhelming response. The company hopes to increase

its market share and gain significant volumes and improve its presence

in the Premium segment of the motorcycle market. TVS also continued

with its growth trend of 73 % in the Export front.

The past few months have seen exhilarating competition in the

premium segment with the launch of the Apache 150 in May 2006.

The bike has received rave reviews, as the market share of TVS has

increased to around 12% in the period from April-July 2006. Already,

the Apache is the number 2 brand in the premium segment, beating

Honda Motorcycles, though still far behind Bajaj Pulsar. Says K. N.

Radhakrishnan, President, TVS Motor Company, “Riding high on the

style and design quotient, TVS Apache has met with wide acceptance

amongst youth and upwardly mobile professionals.” The premium

segment saw sales figures of 384,409 units in the period from April-

July 2006, a growth of 42.07% over last year. In the same period, the
executive segment recorded sales of 1,668,558 units, growing by

16.66%. Quite a few new launches in the premium segment like Hero

Honda Karizma 250 Fi, Bajaj Pulsar 220 DTSi and Yamaha Gladiator

250 are on the anvil.

BAJAJ AUTO

Bajaj Auto Ltd (BAL), the largest two and three wheeler manufacturer

in the country, has a dominating 40% market share in scooters with

18.5% in ungeared scooters, 25.2% in motor cycles, 8.3% in mopeds

and a leading 78% market share in three-wheelers in FY2007Bajaj

Auto has been viewed as a scooter major but with the change in the

structure of demand for 2- wheelers the company has tried to make its

presence felt in this key market by steadily ramping up motorcycle

capacities, by introducing new models and variants and pushing up

marketing and sales. However the company is well behind Hero Honda

in the motorcycle segment and No.2 player in mopeds/scooters

segment after TVS. The company has a wide array of models in four-

stroke configurations. In 1995-96 the sales were less than 90,000

motorcycles which was 8% of the total volume of its two- wheeler

sales which has grown to 4,22,016 units in FY2007 accounting to 50%

of its twowheeler sales . However, with the implementation of the

latest emission norms, it has moved away from two-stroke vehicles

and converted them to four-stroke ones. The company has been

introducing models in the middle endRs.37000 Rs. 48,000 and high

end segments viz; Rs. 48,000 and above but has not found difficult to

market such models in competition to Hero Honda models in the

similar price category . However BAL is on its way to recapture the

highly differentiated product market by becoming a flexible and

market – driven supplier of various models of two Wheelers at specific

price points. The motorcycle companies taken for the project are Hero

Honda, TVS Motorcycles and Bajaj Auto. The motorcycles taken for

the project from the Brand Hero Honda are Hero Honda CBZ extreme

Honda unicorn. The motorcycle taken for the project from the Bajaj.

Auto Brand is Bajaj pulsar and from the TVS Brand is TVS apache

For the project purpose about 25 customers from each Brand is taken

and the purchase pattern is studied.

Table 1 shows the profile of free service period

remaining for their bikes of customers

Analysis:
By the above table we came to know that 70 percent of people are not

having free service period

Inference:

It is revealed that a majority of customers are not having free service

period and are paying either to get service in company or a local

mechanic

Free service period No of respondents percentage

Yes 15 30

No 35 70

Total 50 100

Graph showing the free service period of the

customers
FREE SARVICE PERIOD
30

YES
NO

70
Table 2 gives an idea which is the leader in the

premium segment bike in number of bikes

ANALYSIS: Pulsar is having major market share of the premium

segment bikes and apache is the close competitor

Inference: People are fond of the innovative products of Bajaj but it

will be tough for them to keep it as TVS apache is giving competition

Market share NO OF RESPONDENS PERCENTAGE

HH CBZ 4 8

HONDA UNICORN 5 10

TVS apache 6 12

BAJAJ PULSAR 20 40

OTHERS 15 30

TOTAL 50 100

Graph showing the market share of different

companies which are producing premium segment
bikes
MARKET SHARE IN %
8

10
30
HH CBZ
H UNICORN
TVS APACHE
12 PULSAR
OTHERS

40
Table 3 shows the customers who had the dilemma
while purchasing

ANALYSIS: It is clear that 58 percent people had a hair line gap

while purchasing a bike between two companies. But it is evident that

pulsar has greater market share

Inference: From this we can reveal that customers are very good
evaluators and companies are trying to achieve similar type of

attributes in all segments and it is only innovation which can bring the

sales by over coming the competition.

Customers No of the respondents percentage

Yes 29 58

No 21 42

Total 50 100
Graph shows the customers who had the dilemma
while purchasing

CUSTOMERS %

42 YES
NO

58
Table 4 shows the experience of customers in
showrooms about the information
Given information No of respondents percentage

Yes 34 68

No 16 32

Tota l 50 100

Analysis: A potential no of customers say 32 percent of the people are

not given full information

Inference: companies are not able to convince or give full information

to the customers

Graph shows the experience of customers in showrooms

about the information
 EXPERIENCE OF CUSTOMERS
32

YES
NO

68

Table 5 shows the competitive finance schemes

given to customers

Finance schemes given No of respondents Percentage

Yes 31 62

No 19 38

Total 50 100

Analysis: it is evident that 38% of the people are not given the

competitive finances schemes and attractive interest rates

Inference: It is the naked truth that good finance schemes will

encourage the sales of the bikes but there is still breach in offers of the

finance schemes
GRAPH Shows the competitive finance schemes given

to customers

FINANCE SCHEMES %

38

yes
no

62
Table 6 shows the purchase influencers

Influencers No of respondents Percentage

My friend told me 11 22

My friend had 7 14

My parent brought 5 10

Impressed by advertisement 10 20

The brand is good 18 36

Total 50 100

Analysis: 36% of the customers are said they go for brand and the
next are people who brought by their friends suggestions

Inference: A customer when purchasing gives more importance to

the brand and he is also influenced by the friends suggestions
Graph showing the characteristics of the purchase
influencers
Sales
22
36
MY FRIEND TOLD ME
MY FRIEND HAD
MY PARENT BROUGHT
IMPRESSED BY
ADVERTISEMENT
14
THE BRAND IS GOOD

20 10
Table 7 martial status of the premium segment

bikes owners

Martial status No of respondents Percentage

Married 11 22

Single 39 78

Total 50 100

Analysis: majority of the people who like the bikes is bachelors who

have their passions for bikes

Graph showing martial status of the premium

segment bikes owners

 MARTIAL STATUS
22

MARRIED
SINGLE

78

Table 8 Giving the figures of the occupations of the

customers who have purchased the bikes

OCCUPATION No of respondents Percentage

Unskilled labour 0 0

Business man with 1-9

Employees 1 2

Executive junior 3 6

Skilled labour 2 4

Business man with 10+

Employees 3 6

Executive middle/senior 2 4

Petty trader 1 2
Self professional 3 6

Student 27 54

Shop owner 1 2

Clerical/salesman 1 2

Housewife 0 0

Business employee 5 25

supervisor 1 2

Retiree level 0 0

Graph giving the figures of the occupations of the

customers who have purchased the bikes

 occupation of the customers %

Unskilled labour
Business man with 1-9
Employees
Executive junior
6 skilled labour
25 2 26 4 business man with 1o+
4
Employees
Executive middle/senior
2 62 Petty trader
2 self professional
student
Shop owner
54 Clerical/salesman
housewife
business employee
supervisor
retiree level

Table 9 Showing the education level of the bike

customers

Education level No of respondents percentage

Illiterate 2 4

Primary/Higher school 2 4

High school/SSLC 4 8

PUC/Diploma/+2 9 18

Degree 14 28

PG/Professional 20 40

TOTAL 50 100

Graph Showing the education level of the bike

customer
 Education level of the customer in %
4
4
8
illiterate
primary/higher school
40 high school/SSLC
PUC/Diploma/+2
18 degree
pg/Professional

28

Table 10 the income level of the customers

INCOME No of respondent

12001-14000 4

14001-17000 10

17001-20000 12

20001-23000 24

Graph the income level of the customers

 income level of customer in numbers

30

25

20

15

income level of
10 customer

0
12001-14000 14001-17000 17001-20000 20001-23000
[Z test]:

Hypothesis

Ho: Majority of the customers are not pulsars users

H1: majority of the customers are pulsar users

Tools used to analyse the hypothesis from the relevant data are z test

and chi square test

Formula:

Z=│P-Ps│/√PQ/N

=0.5-.35/√.25/5

=1.92

Z tab=1.65

The calculated value (1.92) greater than the tabulated value (1.65) so

alternative hypothesis is accepted

Chi square test

Income Own pulsar Don’t own pulsar Total

14001-17000 10 22 32

17001-20000 12 12 24

20001-23000+ 24 10 34

46 54 100

Objectives of the test

To know whether there is any relation between income and the

purchase of the pulsar

OBTAINED(O) EXPECTED(E) (O-E) (O-E)2 (O-E)2/E

10 14.40 -4.4 19.36 1.3444

12 1080 0.2 0.04 0.00370

24 15.30 8.7 75.69 4.9470

22 17.60 4.4 196 1.1

12 13.20 -0.2 0.04 0.003030

10 18.70 -8.7 75.69 4.0475

Σ=11.4457

Calculated Value= 11.4457

Chi-Square Tabulated=9.49

Degrees of Freedom=4 @5% level of significance

Ho= Income do not Influence the purchase of pulsar

H1= Income Influence the purchase of pulsar

CONCLUSION: The calculated value is greater than the tabulated

value so null hypothesis is rejected and alternative hypothesis is

accepted

Findings and conclusions

Findings
􀂙 Majority of the people do not have free service period

􀂙 Majority of the people own pulsar in all the premium segment bikes

􀂙 Nearly half of the people had considered other bikes before

purchasing premium bikes

􀂙 About 40% of the people were not given enough information in the

showrooms

􀂙 About 36% of the people were brand conscious and brought the bike

for the reputation

􀂙 Majority of the people who own these mean machines are bachelors

􀂙 Majority of the people’s occupation who own the bikes is students

􀂙 Majority of the people are having PG/Professional degree who own

the bikes

Conclusions

The project undertaken is titled by a comparative study on premium

segment bikes. The sample size was 50 & the study respondents were

randomly selected from Bangalore. To find out the opinion of

respondents structured questionnaire was directly distributed among

the respondents to collect information. The collected information was

analyses and interpreted The study was undertaken mainly university

requirement even though this helped to the researcher to understand

the in-depth knowledge of various aspects of marketing. The study was

even helped the dealers to know whether the customers are having free

service period or not. And what are the main reasons for that influence

the customers when they do purchase and how they can serve better in

disseminating the information.

Bajaj Auto has to do more about Brand Building activities, as the

major influencer for purchasing an premium segment motorcycle is the

Brand Reputation. And Bajaj Auto customers are less influenced by its

Brand Reputation. Brand extension has to be done without clustering

the segment.

Vehicles specifications
Hero Honda CBZ
General information
Model: Hero Honda CBZ
Year: 2007
Category: Sport
Rating: 73.3 out of 100.0
Engine and transmission
Displacement: 149.20 ccm (9.10 cubic inches)
Engine type: Single cylinder
Stroke: 4
Power: 14.21 HP (10.4 kW)) @ 8500 RPM
Torque: 12.80 Nm (1.3 kgf-m or 9.4 ft-lb) @ 6500 RPM
Compression: 9.1:1
Bore x stroke: 53.3 x 57.8 mm (2.1 x 2.3 inches)
Fuel system: Carburetor
Fuel control: OHC
Ignition: AMI- Advanced Microprocessor Ignition System
Starter: Electric & kick
Cooling system: Air
Gearbox: 5-speed
Clutch: Multiplate wet
Physical measures
Dry weight: 141.0 kg (310.9 pounds)
Overall height: 1,145 mm (45.1 inches)
Overall length: 2,080 mm (81.9 inches)
Overall width: 765 mm (30.1 inches)
Ground
clearance: 145 mm (5.7 inches)
Wheelbase: 1,325 mm (52.2 inches)
Chassis and dimensions
Frame type: Tubular Diamond Type
Front
suspension: Telescopic hydraulic Shock Absorbers
Rear
suspension: Swing Arm with adjustable hydraulic Shock Absorbers
Front tyre
dimensions: 2.75-18
Rear tyre
dimensions: 100/90-18
Front brakes: Single disc. Non Asbestoes type
Front brakes
diameter: 240 mm (9.4 inches)
Rear brakes: Expanding brake (drum brake). Non Asbestoes type
Rear brakes
diameter: 130 mm (5.1 inches)
Speed and acceleration
Power/weight
ratio: 0.1008 HP/kg
Other specifications
Fuel capacity: 12.30 litres (3.25 gallons)
Reserve fuel
capacity: 1.50 litres (0.40 gallons)
Color options: Black, Sports Red, Candy Blazing Red, Boon Silver Metallic, Vibrant
“A COMPARATIVE STUDY ON VARIOUS PREMIUM SEGMENT BIKES”
MP Birla Institute of Management 44
Honda unicorn
Kerb Weight 146 Kgs
Length 2095 mm
WEIGHT / MEASUREMENTS
Kerb Weight 146 Kgs
Length 2095 mm
Width 750 mm
Height 1100 mm
Wheelbase 1340 mm
Fuel Tank Capacity (Full ) 13 litres
Reserve Tank Capacity 1.3 litres
PERFORMANCE
Max Speed 101 Kmph
Acceleration (0-60 kmph) 5 sec.
Mileage 60 Kmpl
Blue Metallic
“A COMPARATIVE STUDY ON VARIOUS PREMIUM SEGMENT BIKES”
MP Birla Institute of Management 45
BODY
Frame Advanced Design Diamond Frame
Front Suspension Telescopic
Rear Suspension Advanced Technology Mono-suspension
Front Tyre 2.75 x 18
Rear Tyre 100 / 90 - 18
Front Brake Type 240 mm Disc
Rear Brake Type 130 mm Drum
ENGINE & TRANSMISSION
Engine Type 4 Stroke, Air Cooled OHC,
Single Cylinder
Displacement 149.1 cc
B ore × Stroke 57.3 mm × 57.8 mm
Net Power 13.3 bhp @ 8000 rpm (9.9 KW)
Torque 1.3 Kg-m @ 5500 rpm (12.8 Nm)
Air Filter Paper Type
Carburetor CV Type
Starting System Self
Transmission Constant Mesh, 5 Speed gear
Gear Shift Pattern 1 Down - 4 Up
ELECTRICALS
Ignition Digital CDI (Multi-Mapping)
Battery 12 - 7 Ah Elec. Start
Headlamp Halogen 12V / 35W
Width 750 mm
Height 1100 mm
Wheelbase 1340 mm
Fuel Tank Capacity (Full ) 13 litres
Reserve Tank Capacity 1.3 litres
“A COMPARATIVE STUDY ON VARIOUS PREMIUM SEGMENT BIKES”
MP Birla Institute of Management 46
PERFORMANCE
Max Speed 101 Kmph
Acceleration (0-60 kmph) 5 sec.
Mileage 60 Kmpl
BODY
Frame Advanced Design Diamond Frame
Front Suspension Telescopic
Rear Suspension Advanced Technology Mono-suspension
Front Tyre 2.75 x 18
Rear Tyre 100 / 90 - 18
Front Brake Type 240 mm Disc
Rear Brake Type 130 mm Drum
ENGINE & TRANSMISSION
Engine Type 4 Stroke, Air Cooled OHC,
Single Cylinder
Displacement 149.1 cc
B ore × Stroke 57.3 mm × 57.8 mm
Net Power 13.3 bhp @ 8000 rpm (9.9 KW)
Torque 1.3 Kg-m @ 5500 rpm (12.8 Nm)
Air Filter Paper Type
Carburetor CV Type
Starting System Self
Transmission Constant Mesh, 5 Speed gear
Gear Shift Pattern 1 Down - 4 Up
ELECTRICALS
Ignition Digital CDI (Multi-Mapping)
Battery 12 - 7 Ah Elec. Start
Headlamp Halogen 12V / 35W
“A COMPARATIVE STUDY ON VARIOUS PREMIUM SEGMENT BIKES”
MP Birla Institute of Management 47
TVS Apache Specifications
General information
Model: TVS Apache 150
Year: 2007
Category: Sport
Rating: 74.1 out of 100.
Engine and transmission
Displacement: 109.00 ccm (6.65 cubic inches)
Engine type: Single cylinder
Stroke: 4
Power: 13.35 HP (9.7 kW)) @ 8500 RPM
Torque: 12.30 Nm (1.3 kgf-m or 9.1 ft.lbs) @ 7500 RPM
Compression: 9.5:1
Bore x stroke: 57.0 x 57.8 mm (2.2 x 2.3 inches)
Fuel system: Carburettor
Fuel control: OHC
Ignition: IDI-Dual mode digital ignition
Cooling system: Air
Gearbox: 5-speed
Transmission
type
final drive:
Chain
Physical measures
Weight incl. oil,
gas, etc: 136.0 kg (299.8 pounds)
Wheelbase: 1,260 mm (49.6 inches)
Chassis and dimensions
Front
suspension: Telescopic oil-damped
Rear
suspension: Monotube inverted Gas filled Shox (MIG)
Front tyre
dimensions: 90/90-17
Rear tyre
dimensions: 100/80-18
Front brakes: Single disc
Front brakes
diameter: 240 mm (9.4 inches)
Rear brakes: Expanding brake (drum brake)
Rear brakes
diameter: 110 mm (4.3 inches)
Speed and acceleration
Other specifications
Fuel capacity: 16.00 litres (4.23 gallons)
Reserve fuel
capacity: 2.50 litres (0.66 gallons)
Further information
Parts and
accessories Check out parts and accessories from our partners.
Ask questions Join the 07 TVS Apache 150 discussion group
Insurance, loans,
tests
Search the web for dealers, loan and insurance costs, tests, customizing,
etc.
Related bikes List related bikes for comparison of specs
“A COMPARATIVE STUDY ON VARIOUS PREMIUM SEGMENT BIKES”
MP Birla Institute of Management 48
Bajaj pulsar specifications
Model: Bajaj Pulsar 150 DTS-i
Year: 2007
Category: Sport
Rating: 70.7 out of 100. Show full rating and compare with other bikes
Engine and transmission
Displacement: 149.00 ccm (9.09 cubic inches)
Engine type: Single cylinder
Stroke: 4
Power: 14.09 HP (10.3 kW)) @ 8500 RPM
Torque: 12.70 Nm (1.3 kgf-m or 9.4 ft.lbs) @ 6500 RPM
Fuel system: Injection
Valves per
cylinder: 1
Starter: Electric & kick
Transmission type
final drive: Chain
Physical measures
Chassis and dimensions
Front suspension: Telescopic
Rear suspension: Triple rate springs
Front brakes: Expanding brake (drum brake)
Rear brakes: Expanding brake (drum brake)
Speed and acceleration
Other specifications
Fuel capacity: 7.70 litres (2.03 gallons)
Reserve fuel
capacity: 2.30 litres (0.61 gallons)
Further information
Parts and
accessories Check out parts and accessories from our partners.
Ask questions Join the 07 Bajaj Pulsar 150 DTS-i discussion group
Insurance, loans,
tests Search the web for dealers, loan and insurance costs, tests, customizing, etc.
Related bikes
List related bikes for comparison of specs

Questionnaire
1. Are you having a free service period at present?

Yes [ ] No [ ]

2. Are you satisfied about the service quality?

Least 1 2 3 4 5 highly satisfied

3.a)Have you had any other vehicle before this?

Yes [ ] No [ ]

If yes, was it a

Scooter [ ] motorcycle [ ] moped [ ]

b) Which brand did you own?

4. Which brand do you currently own? specify

• Hero Honda CBZ

• Honda unicorn
• TVS apache

• Bajaj pulsar

• Others

5. What is the single most reason to buy the motorcycle?

6. what are the other reasons to buy a motor cycle?

7. State how you evaluate each of these factors while buying a

motorcycle?

Least 1 2 3 4 5 6 7 8 9 10(high)

Mileage

Style

accessories

Color

After sales

service

Credit

Riding

comfort

Performance

Pick up

Brand name
Friend

recommend

ations

Status

8. Did you considered any other motor cycle while purchasing your

new bike?

Yes [ ] No [ ]

9. What are the other reasons for not buying the above mentioned

brand?

10. Were you given full information on brand, when you visited

dealership?

Yes [ ] No [ ]

Name of the dealership:

11. Were you offered competitive finance schemes, to suit your

requirements?

Yes [ ] No [ ]

If no reasons.

11. I chose_________ because

a) My friends told me to buy it

b) My friends had the motor cycle

c) My parents brought the motorcycle

d) I was impressed by advertisement

e) The brand has good reputation

DEMOGRAPHIC INFORMATION

1. What is your marital status?

a) Married b) single

2. What is your occupation?

a) Unskilled labor b) Business man with 1-9 employee c) Executive

junior

d) Skilled worker e) Business man with 10+ employee f)Executive

middle/senior

g) Petty Trader h) self employed professional i) student

j) Shop owner k) clerical/salesman l) Housewife

m) Business employee n) supervisor o)retiree level

3. What is your educational level?

a) Illiterate b) Primary & Middle school c)High school/SSLC

d) PUC/Diploma/+2 e) Degree f) PG/Professional

4. Monthly household income?

a)upto 7500 Rs b)75001-8000 Rs c)8001-9000 Rs d)9001-10000 Rs

e)10001-12000 Rs f)12001-14000 Rs g)14001-17000 Rs

h)17001-20000 Rs i) 20001-23000 Rs.