Consumer Demand Pattern 11

A
PROJECT REPORT
On
Car Market and Buying Behavior- A study of
Consumer Perception
IN Partial Fulfillment of
Post Graduate Diploma in Management

Under the esteemed guidance of Prof. SUPRIYA SEHGAL
Submitted To :: :: Submitted By ::
Prof. SUPRIYA SEHGAL SONALI GOYAL
MBA-III SEMESTER
AGBS, CHANDIGARH
AMITY GLOBAL BUSINESS SCHOOL
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(2009-2011)
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PREFACE
Summer Training is business organization in fuse among student a sense of

critical analysis of the real managerial situation to which they are exposed. This gives
them an opportunity to apply their conceptual theoretical & imaginative skills in a real life
situations and to evaluate the results there of.
As drops of water gradually fill up the pitcher so do knowledge, virtue and

wealth and experience accumulate little by little”-- Chanakya Niti
Same was my experience with Mahindra finance from the day I joined till the very last
day it was a great learning experience . It is said that life is a mixture of
achievements, failures, experiences, exposure and efforts to make your dreams come
true.
There are people around you who help you realize those dreams
ACKNOWLEDGEMENT
This report bears the imprint of many people and without their support it would not have
existed .I express my sincere thanks to Mahindra finance for giving me an opportunity
to work with them through this summer project.
I take this opportunity to express my profound sense of gratitude to my esteemed guide

MR.VIVEK SHARMA for his valuable guidance, whole hearted cooperation, moral
support and practical suggestions based on the experience to focus my efforts towards
completion of this project.
Special words of appreciation for Prof SUPRIYA SEHGAL my faculty guide who has
been the guiding force throughout this project.
Last but not least I feel immense pleasure to thank all the employees at MAHINDRA
FINANCE whose encouraging attitude towards work has had a positive influence on me
as a trainee. That in turn motivated me to give my best in this work and therefore fulfilling
the objectives of the project. This report is the written account of what I learnt
experienced during my training. I wish those going through it will not only find it real but
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also get useful information.
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Table of CONTENT
1. Executive Summary
2. Introduction
3. Overview of the Auto segment
4. Review of Literature
5. Objective of the study
6. Scope of the study
7. Research methodology
8. Limitation of the study
9. Car’s Profile
10. Finding and Analysis
11. Cross Tabulation
12. Conclusion
13. Scope of the Study
14. Annexure
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Executive Summary
The automobile industry today is the most lucrative industry. Due to the increase in
disposable income in both rural and urban sector and easy finance being provided by all
the financial institutes, the passenger car sales have increased at the rate of 38% per
annum in June 2005-06 over the corresponding period in the pervious year. Further
competition is heating up in the sector with a host of new players coming in and other
like Porsche, Bentley, Audi, and BMW all set to venture in the Indian markets. One
factor that could help the companies in the marketing of their product is by knowing and
creating a personality for their brands.
This personality sketching will help in knowing what a customer (or a potential
customer) thinks about a given brand of car and what are the possible factors guiding a
possible purchase. Similarly, the idea of measuring the customer satisfaction will serve
the same purpose of determining the customer perception. Thus, by measuring the”
willingness of existing users of a car to recommend it to others” will help the car
manufacturers to chalk out the entire Customer Buying Behavior.
This report attempts to answer some of the questions regarding brand

personality of selected cars in India by conducting the market research. This report is
categorized into parts, deals with introduction to brand personality, companies selected,
product and the industry. The market research will be helpful for the new car entrant
companies in India to find out the possible gaps between the customer expectations
and the present market offerings. This way these companies will be able to find their
share in the ever-expanding Indian market pie.
The research will track the customer satisfaction in the following two layers:
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• Product related Parameters
• Dealers related parameters
The customer satisfaction index will be calculated for the car brands taken into
consideration.
It will be mainly a primary research and the information will be gathered from both
primary and secondary research. The study will analyze the applicability of existing
research concepts, theories, and tools for evaluating consumer satisfaction.
1. INTRODUCTION
The project was carried out for understanding the Consumer Demand Pattern of
Mahindra Finance, Chandigarh
COMPANY PROFILE
Mahindra Finance was incorporated on January 1, 1991 as Maxi

Motors Financial Services Limited and received certificate of commencement of
business on February 19, 1991. Our name was changed to Mahindra & Mahindra
Financial Services Limited on November 3, 1992. We are registered with the RBI as an
NBFC with effect from September 4, 1998 under Section 45IA of the Reserve Bank of
India Act 1934., The product out of which have chosen for research is Current
Accounts.
The US$ 6.3 billion Mahindra Group is among the top 10 industrial houses in India.
Mahindra & Mahindra is the only Indian company among the top three tractor
manufacturers in the world. Mahindra's Farm Equipment Sector has recently won the
Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It
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also holds the distinction of being the only tractor company worldwide to win the Deming
Prize. Mahindra is the market leader in multi-utility vehicles in India. It made a milestone
entry into the passenger car segment with Logan.
The Group has a leading presence in key sectors of the Indian economy, including the
financial services, trade and logistics, automotive components, information technology,
infrastructure development and After-Market.
With over 62 years of manufacturing experience, the Mahindra Group has built a strong
base in technology, engineering, marketing and distribution which are key to its
evolution as a customer-centric organization. The Group employs over 50,000 people
and has several state-of-the-art facilities in India and overseas.
The Mahindra Group has ambitious global aspirations and has a presence on five
continents. Mahindra products are today available on every continent except Antarctica.
M&M has one tractor manufacturing plant in China, three assembly plants in the United
States and one at Brisbane, Australia. It has made strategic acquisitions across the
globe including Stokes Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss &
Co GmbH (Germany). Its global subsidiaries include Mahindra Europe Srl. based in
Italy, Mahindra USA Inc. and Mahindra South Africa.
M&M has entered into partnerships with international companies like Renault SA,
France, and International Truck and Engine Corporation, USA. Forbes has ranked the
Mahindra Group in its Top 200 list of the World's Most Reputable Companies and in the
Top 10 list of Most Reputable Indian companies. Mahindra has recently been honoured
with the Bombay Chamber Good Corporate Citizen Award for 2006-07.
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CORE PURPOSE
We don't have a group-wide mission statement. Our Core Purpose is what makes all of
us want to get up and come to work in the morning.'
- Anand G. Mahindra
Indians are second to none in the world. The Founders of our

nation and of our Company passionately believed this. We will
prove them right by believing in ourselves and by making
Mahindra & Mahindra Limited known world-wide for the quality of
its products and services
CORE VALUES
Mahindra’s Core Values are influenced by our past, tempered by our present, and will
shape our future. They are an amalgam of what we have been, what we are and what
we want to be.
Good Corporate Citizenship As in the past, we will continue to seek long term success,
which is in alignment with our country's needs. We will do this without compromising
ethical business standards. Professionalism We have always sought the best people for
the job and given them the freedom and the opportunity to grow. We will continue to do
so. We will support innovation and well reasoned risk taking, but will demand
performance. Customer First We exist and prosper only because of the customer. We
will respond to the changing needs and expectations of our customers speedily,
courteously and effectively. Quality Focus Quality is the key to delivering value for
money to our customers. We will make quality a driving value in our work, in our
products and in our interactions with others. We will do it 'First Time Right'. Dignity of
the Individual
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We will value individual dignity, uphold the right to express disagreement and respect
the time and efforts of others. Through our actions, we will nurture fairness, trust and
transparency.
These values are the compass that will guide our actions, both personal and corporate
SECTORS
Automotive Sector
• Domestic Operations
• International Operations
• Mahindra Renault Private Limited (MRPL)
• Mahindra Navistar Automotives Limited (MNAL)
• Mahindra Navistar Engines Private Limited (MNEPL)
After-Market Sector
• Mahindra Spares Business

• Mahindra First Choice
• Mahindra First Choice Wheels Ltd.
Farm Equipment Sector
• Domestic Operations
• International Operations
• Mahindra Gujarat Tractor
• Mahindra Agribusiness
• Mahindra Power
• Mahindra USA
• Mahindra Australia
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• Mahindra China Tractors
Financial Services Sector
• Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)

• Mahindra Insurance Brokers Ltd.
• Mahindra Rural Housing Finance Ltd (MRHFL)
Infrastructure Development Sector
• Mahindra Holidays & Resorts

• Mahindra Life spaces Developers Limited
• Mahindra World City
• Mahindra Infrastructure Developers
• Acres Consulting Engineers
Information Technology Sector
• Tech Mahindra
• Bristlecone
Mahindra Systech
 Forgings
• Mahindra Forgings Limited - India
• Mahindra Forgings Europe – Ag
*GSA
*Schonoweiss & Co GMBH
*JECO
*Stokes UK
*Falkenroth
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 Engineering Services
• Mahindra Enfineering
• Engines Engineering Italy
• Mahindra Aerospace
 Stampings
 Steel
 Ferrites
 Contract Sourcing
 Telematics
 Composites
 Gears
• Mahindra Sar Transmissions
• Metalcastello Italy
Speciality Businesses
• Mumbai Mantra
• Mumbai Mantra
MAHINDRA PARTNERS
• Mahindra Odyssea
• Mahindra Intertrade
• Mahindra Steel Service Center
• Mahindra Middle East Electrical Steel Service Centre (MMESSC)
• Mahindra Logistics Ltd.
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• Mahindra Retail
BOARD OF DIRECTORS OF MAHINDRA GROUP
The Board of Directors of the Company has, as its members, eminent persons from
Industry, Finance, Investment and other branches of business, who bring diverse
experience and expertise to the Board.
The Company's current Board of Directors is as follows:
NAME DESIGNATION
1. Mr. Keshub Mahindra Chairman
2. Mr. Anand G. Mahindra Vice Chairman and Managing

Director
3. Deepak Shantilal Parekh Director
4. Nadir Burjorji Godrej Director
5. M. M. Murugappan Director
6. Bharat Narotam Doshi Executive Director & Group Chief

Financial Officer (Group CFO)
7. Arun Kumar Nanda Executive Director & Secretary
8. Narayanan Vaghul Director
9. Dr. Ashok Sekhar Ganguly Director
10. R. K. Kulkarni Director
11. Anupam Pradip Puri Director
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12. Thomas Mathew T. Nominee of LIC
COMPLETE NAME OF THE COMPANY–
Mahindra & Mahindra Financial Services Limited (Mahindra Finance)
3.1 BUSINESS OBJECTIVE
"With one of its main objectives being to protect the life and assets of Mahindra
Finance customers through Mahindra Loan Suraksha and Motor Insurance, the synergy
between our two companies is further reinforced,” says Mr. Ramesh Iyer (M.D. of
Mahindra finance). “In my mind, I see Mahindra Finance and MIBL teams as a single
entity, with the common objective of adding value to our customers in the rural and
semi-urban markets. Further, with the common facilities of infrastructure and other
utilities shared between the two companies across the country, we are able to optimally
utilize these resources.
It is a most exciting time for us as an advisor. There is a huge competition amongst the
product manufacturers of both Life & General Insurance products on one side. They are
looking for new markets as also more customers to increase market share. On the other
hand, the customer is still not convinced to spend on insurance with cash flow
limitations. I am convinced MIBL growth will be a story to watch."
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ORGANISATIONAL GOALS
Mahindra Finance's main goals are to
(a) Develop close relationships with individual customer,
(b) Maintain its position as the premier finance institution in the country,
(c) Transform ideas into viable and creative solutions,
(d) Provide consistently high returns to shareholders, and
(e) To grow through diversification by leveraging off the existing client

base
SLOGAN
“Dhan ki suracha aur tarkki dono pakki”
Mahindra Finance is one of India’s leading non-banking finance companies focused on

the rural and semi-urban sectors providing finance for Utility Vehicles (UVs), tractors
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and cars. Mahindra Finance is a subsidiary of Mahindra & Mahindra Limited, a leading
tractor and UV manufacturer with over 60 years’ experience in the Indian market.
Our goal is to be the preferred provider of retail financing services in the rural and semi-
urban areas of India, while our strategy is to provide a range of financial products and
services to our customers through our nationwide distribution network. We seek to
position ourselves between the organised banking sector and local money lenders,
offering our customers competitive, flexible and speedy lending services.
Principally finance UVs used both for commercial and personal purposes, tractors and
cars. While we predominantly finance M&M UVs and tractors, we have continued to
expand our lending to vehicles not manufactured by Mahindra & Mahindra Ltd.
3.2 BUSINESS FOCUS
The loan products designed by us, both in terms of amount and tenure, are based on usage
and the economic life of the vehicle Commercially, UVs are used both for passenger as well
as goods transport. Tractors are used for both farm and haulage applications.
Mahindra finance innovative and flexible repayment schedule is designed on a case to case
basis and suits the need of every borrower, with convenient and comfortable repayment
schedules and methods. Mahindra finance offer quarterly, monthly, half-yearly repayment
schedules and one can repay via post-dated cheques, demand drafts and cash.
Mahindra finance customers for retail loans are small entrepreneurs or self-employed
individuals such as transport operators, taxi operators and agriculturists. Mahindra finance
also provide trade finance to automobile and tractor dealers, which following the sale of a
vehicle, are converted into direct retail customer loans. Our customers usually provide part of
the amount and the balance of the vehicle’s price is financed by us.
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Mahindra finance is in believe that to operate effectively in rural and semi-urban areas, it is
necessary to be familiar with the local culture, practices and environment. Accordingly,
mahindra finance Endeavour to recruit local employees into our branches and provide them
training on our tailor-made training programmes. Mahindra finance conduct most of our
business through our own field executives and branch personnel, which is believed
preferable to relying on outsourced marketing agents and sales agents.
Mahindra finance business has grown extensively since the time it was established. Our loan
assets, total income and profit after tax have all grown considerably over the last few years.
3.3 VISION AND MISSION
Vision
Mahindra Finance vision is to be the leading Rural Finance Company and continue to
retain the leadership position for Mahindra Products.
Mission
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• Mahindra finance is recognised as the premier provider of financial
services on the basis of contribution to sale of Mahindra range of
vehicles, tractors, services and help .M&M protect its sale through
availability of finance.
• Mahindra finance will specialize in financing products based on

applications and build on the competence developed in its focus area.
Mahindra finance is targeting all segments of vehicle financing and
deploys the skills acquired through an in-depth understanding of the
chosen product market.
• Mahindra finance provides product and services tailored to the need of

M&M, our most favored customer, and always meet their needs. In case
of demand-supply mismatch of funds, Mahindra finance will do everything
to find a solution.
• My first hand research and development will help M&M to develop better
products by providing first-hand information received from the target
market.
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HISTORICAL DEVELOPMENT OF THE COMPANY-
Mahindra Finance was incorporated on January 1, 1991 as Maxi Motors Financial

Services Limited and received certificate of commencement of business on February
19, 1991. It name was changed to Mahindra & Mahindra Financial Services Limited on
November 3, 1992. Mahindra Finance is registered with the RBI as an NBFC with effect
from September 4, 1998 under Section 45IA of the Reserve Bank of India Act 1934.
Key events in our business history
 1993
Commenced financing of M&M UVs
 1996
Commenced financing M&M dealers for purchase of tractors
 1998
Launched pilot project for retail tractor financing
 1999
Commenced tractor retail financing in rural and semi-urban areas
 2001
Total Assets crossed Rs. 10 billion
 2002
Commenced financing of non-M&M vehicles
Received Tier II debt from International Finance Corporation
Made our first securitization transaction of Rs. 434.8 million
2004
Received a long-term credit rating of AA+/Stable
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Opened a branch in Port Blair
Listing of non convertible debentures on BSE on the wholesale debt market
segment
Securitisation of tractor assets of Rs. 256.6 million
 2005
Tied up with HPCL
Made MIBL our wholly owned subsidiary
 2006
Issued our IPO
Tied up with Maruti
Launched our marketing campaign
Reached a new benchmark with 400 branches
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INVEST ZONE
Investor Info
Registered office Gateway Building, Apollo Bunder, Mumbai 400 001.

Tel: 22021031; Fax: 22875485
Website: www.mahindrafinance.com
Key officials Name - Bharat Doshi

Designation - Chairman
Name - Uday Y. Phadke

Designation - Vice Chairman
Name - Ramesh Iyer

Designation - Managing Director
Name - V. Ravi
Designation - Chief Financial Officer
Name - Arnavaz M.Pardiwala

Designation - Company Secretary & Compliance Officer
Industry Financial Services
Listings BSE, NSE
BSE code 532720
NSE code M&MFIN
ISIN INE774D01016
3.4 BOARD & MANAGEMENT

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At Mahindra Finance we currently have 10 Directors vested with the charge of the
general supervision, direction and management of the operations and business of our
Company.
The primary responsibility of the Board of Directors includes:
Overseeing high standards of corporate governance and compliance with various

laws
Shaping our policies and procedures
Monitoring our performance and evolving the growth strategy
Setting up counter-party and other prudential risk management limits
Overseeing our financial management and approving various lines of business
MR. BHARAT N. DOSHI
MR. UDAY Y. PHADKE
MR. ANJANIKUMAR CHOUDHARI
MR. DHANANJAY MUNGALE
MR. MANOHAR G. BHIDE
MR. NASSER MUNJEE
DR. PAWAN GOENKA
MR. PIYUSH MANKAD
MR. RAMESH G. IYER
Ms. RAMA BIJAPURKAR
Day-to-day management is carried out by a Management Committee comprising:
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Mr. Ramesh Iyer - Managing Director
Mr. V.Ravi - Chief Financial Officer
BRANCH LOCATION
BRANCH: Mahindra Finance started ours business on 1 January 1991. In 2003 Total
Number of Branch was 196, in 2003 were 224, in 2004 were 256, in 2005 were 305, in
2006 were 403, and in 2007 were 437.
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Branches divided by area wise. There are 437 branches in all over India, in which only 4
branches in Metro city, 89 branches in Urban & Semi urban and 334 branches in rural
areas.
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Year-2009
Account features Fixed Deposit
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Fixed Deposit
Savings & Loans’ Fixed Deposit accounts give the control over the term of investment
and provide a guaranteed fixed interest rate good for both short and long term
investment purposes.
Fixed terms of Mahindra Finance have minimum time period of 12 months, and
maximum time period of 3 years with a wide range of interest payment options.
Additional benefits:
• Security of a fixed interest rate

• Great interest rates
• Any individual can start with an investment of Rs. 10000.
• Choice of interest payment options
• Interest is calculated daily
The Mahindra Finance has started to accept fixed deposit from public from 1st January
2009.
There are two scheme of Fixed Deposit of Mahindra Finance.
• Non Cumulative (Half-Yearly Scheme)
Interest of principal amount will be providing as half-yearly (after six months from
deposited amount.)
• Cumulative Scheme
Interest of principal amount will be providing after maturity date with principal amount.
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The details of the Fixed Deposit scheme of Mahindra Finance are given below.
1. Non Cumulative Half-Yearly Scheme:
Minimum Interest *#
Period (Months)
Amount p.a.
12 8.75%
Rs. 25,000 24 9.25%
36 9.75%
1. Cumulative Scheme:
Minimum Period Amount Interest* Effective

Amount (Months) Payable p.a. Yield p. a.**
12 Rs. 10,900 9.00% 9.00%
18 Rs. 11,430 9.25% 9.53%

Rs. 10,000
24 Rs. 11,990 9.50% 9.95%
36 Rs. 13,310 10.00% 11.03%
• Senior Citizens / Shareholders / Employees will get an additional rate of 0.25% per
annum, Interest Compounded Annually.
• Interest payment half yearly on 30th September and 31st March only through ECS.
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INTRODUCTION TO PROJECT
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It is true fact that if you are satisfied you recommended to others. Word of mouth and
customer satisfaction play a very important role in determining market perception about
an automobile. It is the market perception that determines the success of a company
and so it is very important for the car manufacturers to measure the “willingness of
existing users of a product to recommend it to others”. The same is a lot of interest to
customers as well for it helps them make the purchase decision.
A car is one of the most significant purchases that an Indian household makes and this
project addresses the most important question that perplexes car manufacturers:
“What makes the perfect car that influence will willfully purchase?”
The project highlights the factors that influence the buying decision of a
consumer.
The factor under consideration would be:
 Price
 Income of the consumer
 Features in the car
 Safety standard
 Warranty scheme
 Finance facility
Is an Indian consumer ready for more? Which is the driving motive behind the effective
demand of the car? How the coming of new models like swift does is going to effect the
buying decision of consumer and especially the Tata 1 lakh car.
In other words, from the spread of choices offered by various manufacturers under
various segments, of which one the customer will finally turn the ignition on and drive.
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Customer satisfaction index: some of the most advance thinking in the business world
recognizes that customer relationships are best treated as assets, and that methodical
analysis of these relationships can provide a road map for improving them
“If you cannot measure it, you cannot improve it.” – Lord William Thomson Kelvin (1824-
1907)
Clause 8.2.1 in ISO9000: 2000 states:
“As one of the measurements of the performance of the quality management system,
the organizations shall monitor information relating to customer perception as to
whether the organization has met customer requirements. The method for obtaining and
using this information shall be determined”
The requirement has been there in the QS9000 standard clause 4.1.6 which says:
“… Trends in customer satisfaction and key indicators of customer dissatisfaction shall

be documented and supported by objective information. These trends shall be
compared to those of competitors, or appropriate benchmarks, and reviewed by senior
management.”
There is obviously a strong link between customer satisfaction and customer retention.
Customer’s perception of service and quality of product will determine the success of
the product or service in the market.
With better understanding of customer’s perceptions, companies can determine the

actions required to meet the customer’s needs. They can identify their own strengths
and weaknesses, where they stand in comparison to their competitors, chart out the
path future progress and improvement. Customer satisfaction measurement helps to
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promote an increased focus on customer outcomes and stimulate improvements in the
work practices and processes used within the company.
Customer expectations are the customer-defined attributes of your

product or service. We cannot create satisfaction just by meeting customer’s
requirements fully because these have to be met in any case. However falling short is
certain to create dissatisfaction.
Major attributes of customer satisfaction can be summarized as:
 Product quality
 Product packaging
 Keeping delivery commitments
 Price
 Responsiveness and ability to resolve complaints and reject reports
 Overall communication, accessibility and attitudes
Values
+ Benefits -
Features -
Attributes
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We cannot begin to address the customer satisfaction issue we define the
parameters and measures clearly.
The customer satisfaction index represents the overall satisfaction level of
that customer as one number, usually as a percentage.
The buying process involves the following steps:
Problem Recognition
Information search
Information search
Evaluation
Post Purchase D
Decision
Buy
Post Purchase
Dissonance
Dissatisfaction = Satisfaction = Brand

Brand Rejection Acceptance 33
“The fact that word of mouth sales are a big deal in this industry has also helped.
Industry players and market surveys reveal that 20-30 percent of sales are through
word of mouth”.
For the purpose of the project has undergone through
 Surveying the relevant consumer base through exhaustive questionnaire.

 Understand the elements underplaying in each segment.
 Deducing A analytical overview through different statistical methods.
Recommendation comes from satisfaction and satisfaction comes from
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OVERVIEW OF THE AUTO SEGMENT
Indians have emerged as avid car enthusiasts sporting their prized possessions as
status symbols and speed machines. Foreign car companies have discovered the
Indian consumer as well as the R & D potential in the Indian technical fraternity and are
setting up manufacturing plants right and left across the country at lower costs. The
Indian automobile industry is currently experiencing an unprecedented boom in demand
for all types of vehicles. This boom has been triggered primarily by two factors:
(1) increase in disposable incomes and standards of living of middle class Indian
families estimated to be as many as four million in number; and
(2) The Indian government's liberalization measures such as relaxation of the foreign
exchange and equity regulations, reduction of tariffs on imports, and banking
liberalization that has fueled financing-driven purchases.
Industry observers predict that passenger vehicle sales will triple in five
years to about one million, and as the market grows and customer's purchasing abilities
rise, there will be greater demand for higher-end models which currently constitute only
a tiny fraction of the market. These trends have encouraged many multinational
automakers from Japan, U. S. A., and Europe to enter the Indian market mainly through
joint ventures with Indian firms.
India is increasingly becoming a global automotive hub both for the vehicles and
component industry. India is fast integrating itself into the world economy and open to
international automotive companies, who are increasingly investing in India.
The Indian automotive and component industry is looking to increase the quality of
production from existing levels, to develop new products and to increase exports. In the
long run India is well set to become a key market for automotive and component
manufacturers in terms of local demand and as a base for export.
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Industry Size
 The domestic Indian passenger car market (including utility vehicles) totaled 900,000 units
(with a CAGR of 10 per cent over the past 4 years) while the exports were 130,000 million
units (with a registered CAGR of 68 per cent over the past 4 years) during financial year 2004.
 At the back of this phenomenal automotive growth is the success of the Indian auto
component industry. Presently a US$ 6.7 billion industry, it is expected to almost treble in less
than eight years time to US$ 17 billion by 2012.
 India offers a distinct technological and cost-competitive advantage, which global

Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging
for both manufacturing and research facilities. The passenger car market is projected to
grow at a CAGR of 12.3 per cent over the next few years. Growth in the mid-size and
premium car segments is expected to outpace the overall market growth.
Indian Automobile Industry
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In India there are 100 people per vehicle, while this figure is 82 in China. It is
expected that Indian automobile industry will achieve mass motorization status
by 2014.
Industry Overview
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto
industry was overlooked by the then Government and the policies were also not
favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent
years has made remarkable impacts on Indian Automobile Industry. Indian auto
industry, which is currently growing at the pace of around 18 % per annum, has become
a hot destination for global auto players like Volvo, General Motors and Ford.
A well developed transportation system plays a key role in the development of an

economy, and India is no exception to it. With the growth of transportation system the
Automotive Industry of India is also growing at rapid speed, occupying an important
place
Today Indian automotive industry is fully capable of producing various kinds of vehicles
and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.
Snippets
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• The first automobile in India rolled in 1897 in Bombay.
• India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of the segment size.
• Unlike the USA, the Indian passenger vehicle market is dominated by cars
(79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle
market.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the world.
• The number one global motorcycle manufacturer is in India.
• India is the fourth largest car market in Asia - recently crossed the 1
million mark.
Segment Know how
Among the two-wheeler segment, motorcycles have major share in the market. Hero
Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in
scooter and TVS makes 82% of the mopeds in the country.
40% of the three-wheelers are used as goods transport purpose.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in
passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles
Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with more than 60% share.
Tata Motors is also the world's fifth largest medium & heavy commercial vehicle
manufacturer
Cars by Price Range

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• Maruti 800, Alto, Omni
Under Rs. 3 Lakhs
• Reva
• Ambassador
• Fiat Palio
• Hyundai Santro, Getz
Rs. 3-5 Lakhs • Chevrolet Opel Corsa
• Maruti Zen, Wagon R, Versa, Esteem, Gypsy
• Ford Icon & Fiesta
• Tata Indica, Indigo XL, Indigo Marina

• Chevrolet Swing, Optra Magnum, Tavera
• Hyundai Accent, Elantra
• Mahindra Scorpio
• Maruti Baleno
• Toyota Innova
Rs. 5-10 Lakhs • Tata Safari
• Mitsubishi Lancer, Mitsubishi Cedia
• Honda City ZX
• Mahindra Bolero
• Hyundai Sonata Embera

• Toyota Corolla
• Ford Mondeo & Endeavour
Rs. 10-15 Lakhs • Chevrolet Forester
• Skoda Octavia & Combi
• Honda Civic
• Honda CR-V
• Maruti Suzuki Grand Vitara
• Terracan & Tucson
• Mitsubishi Pajero
Rs. 15-30 Lakh • Audi A4
• Opel Vectra
• Honda Accord
• Mercedes C Class
• Toyota Camry
• Audi A6, A8 & Audi TT
• BMW X5, 5 Series & 7 Series
Rs. 30-90 Lakhs • Mercedes E Class, S Class, SLK, SL & CLS-Class
• Porsche Boxster, Cayenne, 911 Carrera & Cayman S
• Toyota Prado
39
• Bentley Arnage, Bentley Continental GT & Flying Spur
Above Rs. 1 Crore • Rolls Royce Phantom
• Maybach
The following links gives the complete picture of Indian Auto

Industry:
The first auto vehicle rolled out in India at the end of 19th century.
Today, India is the the 2nd largest tractor and 5th largest
commercial vehicle manufacturer in the world. Hero Honda with
Automobile History 1.7M motorcycles a year is now the largest motorcycle
manufacturer in the world.
On the cost front, OEMs eyeing India in a big way to source

products and components at significant discounts to home market.
Industry Investment On the revenue side, OEMs are active in the booming passenger
car market in India.
The passenger car and motorcycle segment in Indian auto market

is growing by 8-9 per cent. The two-wheeler segment will clock
Industry Growth 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent.
India is the 11th largest Passenger Cars producing countries in

the world and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is
Vehicle Production the leading 4-wheelers manufacturer. Hero Honda is the leading
2-wheelers manufacturer.
Auto Export Passenger vehicle exports have grown over five times and two-
wheeler exports have reached more than double. Exports of auto
components, whose manufacturing costs are 30-40 per cent lower
than in the West, have grown at 25% a year between 2000 to
40
2005.
Hero Honda is the largest manufacturer of motorcycles. Hyundai

Motors India is the second largest player in passenger car market.
Auto Companies Tata Motors is the fifth largest medium & heavy commercial
vehicle manufacturer in the world.
Know about the number of vehicles registered as Transport or

Vehicle Distribution Non-Transport in the Indian states and Union Territories.
Get all the contact details of Automobile Association of Upper

India (AAUI), Automotive Research Association of India (ARAI),
Associations
Automobile Association of Southern India (AASI), Automotive
Component Manufacturers Association of India (ACMA) and more
Major Manufacturers in Automobile Industry
• Maruti Udyog Ltd.

• General Motors India
• Ford India Ltd.
• Mahindra & Mahindra
• Hyundai Motor India Ltd.
Government has liberalized the norms for foreign investment and import of technology
and that appears to have benefited the automobile sector. The production of total
vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that
the production of such vehicles will exceed 10 million in the next couple of years.
The industry has adopted the global standards and this was manifested in the
increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00,
such exports registered robust growth rates of well over 50 per cent in 2002-03 and
2003-04 each to exceed two and- a-half times the export figure for 2001-02.
41
Anticipating Consumer Changes
What do these findings tell us? They make it clear that consumer behavior is evolving
and that automotive companies need to anticipate this evolution in order to be part of, or
even influence, the changes. Is your company ready? What changes will you need to
make? Companies will need to take a look at their multi-channel approach as they
consider the potential market for online sales. Effective web strategies will be vitally
important, as the online landscape evolves rapidly with the emergence of powerful
consumer-to-consumer tools like blogs, discussion forums, social networking sites and
virtual worlds. Automotive companies will need to stay focussed on environmental
developments and evolving consumer attitudes about fuel-efficient and alternative-fuel
vehicles. As with the web, green issues are dynamic and it’s still too early to determine
their ultimate impact on the automotive industry. Manufacturer/dealer collaboration in
the form of effective retail integration and integrated lead management will become
more important than ever to satisfy increasingly sophisticated and demanding
consumers and to retain loyalty. And companies will need to establish and maintain a
true two-way dialogue with individual customers through personalised communication.
42
While this topline review provides a summary of key findings from this year’s Cars
Online study, the sections that follow offer more in-depth data and analysis of consumer
behavior , environmental issues, web usage, lead management and customer loyalty.
Consumer Behaviour: Turning to the Web and New C2C Tools
Consumers today have a multitude of sources from which to gather information during
the vehicle buying process, but the Internet tops the list. The web has become a
standard resource in the shopping process for eight out of 10 consumers when
researching car purchases. However, the way they use it is changing. As the web
matures, vehicle buyers are visiting fewer sites and focussing more on manufacturer
and C2C websites and less on third-party information sites and independent e-tailer
sties.
Manufacturer Sites a Key Information Source
Just two years ago, information websites were identified as the number one information
source by web users responding to the Cars Online survey (tied with family and friends
and manufacturer specific dealer), named by 55% of consumers. This year, they
dropped to the number four source, named by 41% of web users. In comparison,
manufacturer sites are now the top source for consumers who use the web when
researching vehicles, named by 70% of respondents. Two years ago manufacturer sites
held the number three position, named by 43% of web users. The use of dealer
websites has remained steady, with about half of web users turning to these sites.
43
44
At the same time, the use of new online consumer-to-consumer tools such as blogs,
RSS (Really Simple Syndication) feeds, user-generated content, social networking sites
and web forums is growing. In this year’s study, 29% of web users indicated that they
use these kinds of tools when researching during the vehicle shopping process, up from
21% a year ago. (For a more detailed analysis of the use of these new online tools see
separate section on “Web Usage.”) Interestingly, it is not just the young generation who
use the web to research vehicles. Almost half of consumers 50 and older visit
manufacturer sites, nearly the same number as those in the 18 to 34 age group. The
numbers do fall off, however, when it comes to blogs and web forums. About 30% of the
youngest consumers rely on these new tools, compared with just 12% of those 50 and
older. As web usage rises, consumer reliance on other more traditional information
sources is on the decline. Take print advertising, for example, which has shown a
steady downward trend particularly among consumers who rely on the web during the
vehicle shopping process. This year, just 20% of web users said they use print ads
when researching vehicles, compared with 32% in 2005. The message for automotive
companies is clear: Consumers trust the information they receive from manufacturer
and C2C sites. Vehicle manufacturers and dealers need to be aware of how fast online
changes are occurring and continually adjust their marketing mix and resources
accordingly to anticipate tomorrow’s mix. Marketing funds directed toward more
traditional media such as print advertising should be regularly re-examined for ROI.
Key Factors in Vehicle Choice
When it comes to making their final decision about which vehicle to buy, consumers
focus on factors such as reliability, safety, price and fuel economy. At the bottom of the
list are cash-back incentives, named by fewer than half of consumers. The importance
of incentives as a deciding factor has declined for the past several years, indicating that
consumers today seem less interested in gimmicks when it comes to their car
purchases. Where consumers are in the buying cycle can make a difference in how they
rank the factors that influence their vehicle choice.
45
For example, additional warranty coverage is important to consumers who are furthest
away from the point of purchase; it was named by 69% of respondents who were 13 to
18 months from purchase. However, the number declines as consumers get closer to
actually buying the car: 55% of respondents who were within three months of purchase
said extra warranty coverage was important. This reflects the fact that consumers will
narrow down the factors that really matter to them as they get closer to the point of
purchase. Demographic factors such as age and gender accounted for some variances.
For example, older consumers tend to put more emphasis on reliability and safety than
do younger respondents. Those in the 50-plus age group were also more concerned
with environmental issues and fuel economy. The youngest respondents were most
likely to rate the ability to research information on the Internet as an important factor in
their vehicle decision. Women tend to rate most of the factors as more important than
do men. The difference was most pronounced for cash-back incentives, low financing,
safety, environmental issues, fuel economy and additional warranty coverage.
46
47
48
Going ‘Green’: Fuel Efficiency Takes Centre Stage
Fuel efficiency and environmental issues have moved to the forefront in consumers’
minds and in automotive industry forums thanks to factors including global warming,
fluctuating gasoline prices, and proposed legislation to increase fuel efficiency and
reduce CO2 emissions. This growing interest in so-called green vehicles was evident in
this year’s Cars Online research.
More than one-quarter of respondents said they currently own or lease a fuel-efficient
vehicle while almost half said they are planning to buy or thinking seriously about buying
a fuel-efficient vehicle. Not surprisingly, the numbers for alternative-fuel vehicles were
lower. Just 2% of respondents currently own an alternative-fuel vehicle and 11% are
planning to buy or thinking seriously about buying one. The most common type of
alternative-fuel vehicle represented in the survey were gas/ electric hybrids, named by
about half of current alternative-fuel car owners.
Biodiesel vehicles were the second most common, named by 15%. The alternative-fuel
market remains in transition and it’s still too early to tell how it will ultimately shake out,
although sales are expected to continue to grow. For example, J.D. Power and
Associates predicts that U.S. sales of hybrid vehicles will increase by 35% in 2007,
compared with 2006.
Current ownership of fuel-efficient and alternative-fuel vehicles tended to be quite

consistent across gender and age groups, although the oldest consumers were
somewhat more likely to be seriously thinking about buying an alternative-fuel car.
49
Why Buy a Green Vehicle?
Fuel economy is the number one factor driving consumer decisions about green
vehicles (named by 57% of respondents), followed by the impact on the environment
(23%). Tax credits and cost factors were less important. Some consumers pointed to
less tangible reasons such as “it makes me feel better.” This is in line with research
conducted by CNW Marketing Research. When asked why they bought a Toyota Prius,
57% of Prius owners said because it “makes a statement about me.” However, the Cars
Online research uncovered some differences in the reasons behind consumer decisions
about green vehicles. For example, European consumers were more likely to cite
environmental impact as a primary factor, while more respondents in China and the
U.S. pointed to fuel economy. Older consumers were somewhat more likely to identify
fuel economy as a primary factor, compared with the youngest respondents (18-34).
50
51
PERSONAL SELLING:
CONSUMER BUYING BEHAVIOR
CONSUMER BUYING vs. ORGANIZATIONAL BUYING
Final (or ultimate) consumers purchase for:
• personal,
• family, or
• household use
Organizational consumers purchase for:
• further production,
• usage in operating the organization, and/or
• resale to other consumers
Consumer Buying Behavior
The decision processes and acts of final household consumers associated with
evaluating, buying, consuming, and discarding products for personal consumption.
Consider the purchase an automobile. You generally will not consider different options
until some event triggers a need, such as a problem needing potentially expensive
repair. Once this need has put you "on the market", you begin to ask your friends for
recommendations regarding dealerships and car models. After visiting several
dealerships, you test drive several models and finally decide on a particular model. After
picking up your new car, you have doubts on the way home, wondering if you can afford
the monthly payments, but then begin to wonder if instead you should have purchased a
more expensive but potentially more reliable model. Over the next five years, the car
has several unexpected breakdowns that lead you to want to purchase a different
brand, but you have been very happy with the services of the local dealership and
decide to again purchase your next car there.
52
In this particular case, the following generic model of consumer decision making
appears to hold:
=====>need recognition
=====>information search
=====>evaluation of alternatives
=====>purchase decision
=====>postpurchase behavior
Now consider the purchase of a quart of orange juice. You purchase this product when
you do your grocery shopping once per week. You have a favorite brand of orange juice
and usually do your grocery shopping at the same store. When you buy orange juice,
you always go to the same place in the store to pick it up, and never notice what other
brands are on the shelf or what are the prices of other brands. How is it that the generic
model above works differently in this second scenario? Why does it work differently?
Why would we generally need the ministrations of a sales person in the sale of a car,
but we generally do not need the help of a salesperson in the purchase of orange juice?
How can the marketer of orange juice get a consumer like you to exert more effort into
information search or to consider alternative products? How is it that the marketer of
your brand got you to ignore alternative competing brands? What is the involvement of
salespeople in sales promotions that might be associated with products such as orange
juice?
Consumer behavior researchers are not so interested in studying the validity of the
above generic model, but are more interested in various factors that influence how such
a model might work.
53
INFLUENCES ON THE GENERIC MODEL
• external
o group
-e.g., cultural, family, reference group influences
o environmental/situational
-e.g ., time of day, temperature and humidity, etc.
• internal
o lifestyle , personality, decision making process, motivation, etc.
GROUP INFLUENCES ON CONSUMER BEHAVIOR

Culture
It is the set of basic values, beliefs, norms, and associated behaviors that are learned
by a member of society .Note that culture is something that is learned and that it has a
relatively long lasting effect on the behaviors of an individual. As an example of cultural
influences, consider how the salesperson in an appliance store in the U.S. must react to
different couples who are considering the purchase of a refrigerator. In some
subcultures, the husband will play a dominant role in the purchase decision; in others,
the wife will play a more dominant role.
Social Class
A group of individuals with similar social rank, based on such factors as occupation,
education, and wealth
Reference Groups
Groups, often temporary, that affect a person's values, attitude, or behaviors
• E.g., your behaviors around colleagues at work or friends at school are probably
different from your behaviors around your parents, no matter your age or stage in
the family life cycle. If you were a used car salesperson, how might you respond
54
differently to a nineteen year old prospect accompanied by her boyfriend from
one accompanied by two girlfriends?
• Opinion leader
A person within a reference group who exerts influence on others because of

special skills, knowledge, personality, etc.
o You might ask the webmaster at work for an opinion about a particular
software application. Software manufacturers often give away free beta
copies of software to potential opinion leaders with the hope that they will
in turn influence many others to purchase the product.
• Family
A group of people related by blood, marriage, or other socially approved
relationship.
ENVIRONMENTAL / SITUATIONAL INFLUENCES ON CONSUMER

BEHAVIOR
Circumstances , time, location, etc.
Do you like grapes? Do you like peas?
You might like grapes as a snack after lunch, but probably not as a dessert after a fancy
meal in a restaurant. You might like peas, but probably not as a topping on your
pancakes. Everyday situations cause an interaction between various factors which
influence our behaviors. If you work for tips (a form of incentive related to commission)
as a waiter or waitress, you must certainly be aware of such interactions which can
increase or decrease your sales.
If you are doing your Saturday grocery shopping and are looking for orange juice, you
are probably much more sensitive to price than if you stop at the quick store late at
night, when you are tired and cranky, after a late meeting at the office. A prospect
shopping for a new automobile while debating the wisdom of a necessary expensive
55
repair to his car might be more interested in what cars are on the lot than in shopping
for the best deal that might involve a special order.
INTERNAL INFLUENCES ON CONSUMER BEHAVIOR
Personality
A person's distinguishing psychological characteristics that lead to relatively consistent

and lasting responses to stimuli in the environment.
We are each unique as individuals, and we each respond differently as consumers. For
example, some people are "optimizers" who will keep shopping until they are certain
that they have found the best price for a particular item, while other people are
"satisficers" who will stop shopping when they believe that they have found something
that is "good enough." If you are a salesperson in a retail shoe store, how might you
work differently with these two personalities?
Lifestyle and Psychographics
• lifestyle is a pattern of living expressed through a person's activities, interests,

and opinions
• psychographics is a technique for measuring personality and lifestyles to
developing lifestyle classifications
Motivation: Multiple motives
Consumers usually have multiple motives for particular behaviors. These can be a
combination of:
• manifest
known to the person and freely admitted
• latent
unknown to the person or the person is very reluctant to admit
56
Note: different motives can lead to the same behavior; observing behavior is not
sufficient to determine motives.
What are the thoughts of John's friend?

What is John's manifest motive?
What might be his latent motive?
How might a salesperson discover these motives? What features should a salesperson
emphasize?
Involvement
Has to do with an individual's
• intensity of interest in a product and the

• importance of the product for that person
The purchase of a car is much more risky than the purchase of a quart of orange juice,
and therefore presents a higher involvement situation. This modifies the way that the
generic model works.
As involvement increases, consumers have greater motivation to comprehend and

elaborate on information salient to the purchase. A life insurance agent, for example,
57
would typically be more interested in contacting a young couple who just had a baby
than an eighteen year old college student - even though the new parents might be
struggling to make ends meet while the student is living more comfortably. Although the
annual investment into a policy is much lower if started at a younger age, most young
college students are not open to thinking about long term estate planning. A young
couple with a new child, however, is much more open to thinking about issues
associated with planning for the child's future education, saving to buy a house, or even
saving to take an extended vacation upon retirement.
TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES
Routinized
• used when buying frequently purchased, low cost items

• used when little search/decision effort is needed
• e.g., buying a quart of orange juice once per week
Limited Problem Solving
• used when products are occasionally purchased

• used when information is needed about an unfamiliar product in a familiar
product category
Extended problem solving
• used when product is unfamiliar, expensive, or infrequently purchased

• e.g., buying a new car once every five years
Under what sorts of conditions would the assistance of a salesperson be needed? Not
needed?
POST-PURCHASE CONSUMER BEHAVIOR
Satisfaction
After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer
beleives that s/he received more in the exchange than what was paid, s/he might feel
58
satisfied. If s/he believes that s/he received less in the exchange than what was paid,
then s/he might feel dissatisfied. Dissatisfied buyers are not likely to return as
customers and are not likely to send friends, relatives, and acquaintences. They are
also more likely to be unhappy or even abusive when the product requires post-sale
servicing, as when an automobile needs warranty maintenance.
The above idea can be modeled as Homans' basic exchange equation:
Profit = Rewards - Costs
Unfortunately, even a buyer who "got a good deal" with respect to price and other terms
of the sale might feel dissatisfied under the perception that the salesperson made out
even better
This idea is called equity theory, where we are concerned with:
Outcomes of A
Inputs of A
vs.
Outcomes of B
Inputs of B
Consider, for example, that you have purchased a used car for $14,000 after finding
that the "e;blue book" value is listed at $16,000. You are probably delighted with the
purchase until you accidentally meet the prior owner who had received a trade-in of
$10,000 on the car just a few days before. That the dealer appears to have received
substantially greater benefit than you could lead to extreme dissatisfaction, even though
you received good value for the money spent.
(Note that the selling dealer might actually have paid $12,000 for the car at a statewide
dealer's auction, and then might have incurred another $1,000 in expenses associated
59
with transporting the car and preparing it for sale. Management of buyer perceptions is
very important!)
An issue related to this is attribution theory. According to attribution theory, people

tend to assign cause to the behavior of others. Mary's life insurance agent advises her
to purchase a whole life policy, while her accountant advises her, "buy term insurance
and invest the difference.". The reason, explains the accountant, "is that insurance
agents receive substantially higher commission payments on sales of whole life
policies."
If Mary believes that the insurance agent is recommending a product merely because
he receives a higher commission, she will likely be displeased with the relationship and
will not take his recommendation. If the agent is able to show Mary that the
recommended product is the best solution for her situation, then she will likely attribute
his recommendation to having her best interests in mind and will not be concerned
about how it is that he is compensated for his services.
Cognitive dissonance
It has to do with the doubt that a person has about the wisdom of a recent purchase
It is very common for people to experience some anxiety after the purchase of a product
that is very expensive or that will require a long term commitment. Jane and Fred, for
example, signed a one year lease on an apartment, committing themselves to payments
of $1500 per month. A week later, they are wondering if they should have instead
leased a smaller $900 apartment in a more rough part of town; they are not sure if they
really can afford this much of a monthly obligation. Dick and Sally, on the other hand,
ultimately rented the $900 apartment, and now are wondering if the savings in rent will
be offset by noisy and sometimes unsafe conditions in this neighborhood.
Perhaps neither couple would be experiencing this anxiety if their landlords had given
them just the smallest of assurances that they had made a good decision. After a close
on products that are expensive or that require a long term commitment, the salesperson
60
should provide the prospect with some reasons to be happy with the decision. Allow the
car buyer to reinforce her own positive feelings by calling her a week after the purchase
to ask how things are going. Call the new life insurance policy holder after two months
to see if there are any questions; a lack of questions can only help the buyer to
convince himself that he did the right thing.
Methodology
The study is based on primary data collection with a sample size of 100 respondents
residing in National Capital Region of New Delhi, India. The questionnaire used for the
sample survey is a structured and non-disguised questionnaire and consisted of two
major sections. The first section intended to collect the various demographic factors; the
second section intended to collect the various opinions containing questions about the
various factors affecting the car purchasing decision. A five point Likert scale was used
to capture the consumers responses ranging from strongly agree to strongly disagree.
The different statements regarding the various factors affecting the car buying behavior
of customers were generated based on literature review as well as expert opinion in an
iterative manner. It could be therefore said that the itemized scale in this case actually
asks the respondents to rank their opinions in a decreasing order of importance. Data
analysis was done using SPSS software. The statistical analysis methods employed
was factor analysis. To study the impact most frequently indulged in weighted average
method was used.
Data collection
The study entailed data collection with the help of a questionnaire from the residents of
National Capital Region of New Delhi, India. Data was collected by personally
contacting the respondents and explaining in detail about the survey. A total of 120
customers from different areas were contacted and 100 correctly completed
questionnaires were obtained from all the customers, the break-up of which is given in
Figure 1,2 and 3
61
Descriptive profile of respondents (n=100)
Gender
Fig 1
Fig 2
Age
62
Occupation
Fig 3
Findings and Analysis
Factor Analysis for factors affecting car purchasing decision
Factor analysis was performed to identify the key dimensions affecting purchase of cars
provided by different car manufacturing companies. The respondent ratings were
subject to principal axis factoring with varimax rotation to reduce potential
multicollinearity among the items and to improve reliability on the data (see Table 6:
63
Rotated Factor Matrix). Varimax rotation (with Kaiser Normalization was converged in
thirty-one iterations. Thirty items were reduced to nine orthogonal factor dimensions
which explained 73.555% of the overall variance (Table 4) indicating that the variance of
original values was well captured by these nine factors. The nine factors and their
components is given in table .
Reliability of Data
Table 1: KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of
.769
Sampling Adequacy.
Bartlett's Test of Approx. Chi- 1650.00
Sphericity Square 0
df 435
Sig. .000
Kaiser-Meyer-Olkin
[Index for comparing the magnitudes of the observed co-relation coefficient to the
magnitude of the partial correlation coefficients]
From the above table, we can interpret that there is no error in 76.9% of the
sample and in the remaining 23.1%, there may occur some sort of error.
“Bartlett’s Test of Sphericity”

[Strength of relationship among variables is strong. It presents good idea to
proceed to factor analysis for the data.]
64
Ho : There is significant indifference of all the factors affecting car purchase
decision
H1 : There is significant difference of all the factors affecting car purchase

decision
The observe significance level is 0.0000 which is less than .05, which is small
enough to reject the hypothesis. It means there is a significant difference between
the factors affecting car purchasing decisions.
Communality”- Common Factor Variance
Communality of each statement refers to the variance being shared or

common by other statements. With reference to the first statement, the extraction is .
833 which indicates that 83.3% of the variance is being shared or common to other
statements. Refer Table 2.
“Eigen Value”: Indicates the amount of variance in the original variables accounted or
by each component. The total initial variance in the new components will be 30.
Table 2: Communalities
Extracti
Initial on
S1 1.000 .833
S2 1.000 .692
S3 1.000 .760
S4 1.000 .800
S5 1.000 .695
65
S6 1.000 .795
S7 1.000 .746
S8 1.000 .731
S9 1.000 .783
S10 1.000 .875
S11 1.000 .851
S12 1.000 .782
S13 1.000 .642
S14 1.000 .628
S15 1.000 .674
S16 1.000 .715
S17 1.000 .662
S18 1.000 .707
S19 1.000 .653
S20 1.000 .728
S21 1.000 .762
S22 1.000 .710
S23 1.000 .642
S24 1.000 .687
S25 1.000 .835
S26 1.000 .684
S27 1.000 .803
S28 1.000 .683
S29 1.000 .857
S30 1.000 .650
66
Extraction Method: Principal Component Analysis.
Table 3: Total Variance Explained
67
Compone Extraction Sums of Rotation Sums of Squared
nt Initial Eigenvalues Squared Loadings Loadings
% of % of
Varian Cumulativ Varianc Cumulativ % of Cumulativ
Total ce e% Total e e% Total Variance e%
1 7.10
23.672 23.672 7.102 23.672 23.672 3.398 11.327 11.327
2
2 3.53
11.798 35.470 3.539 11.798 35.470 3.227 10.756 22.083
9
3 2.54
8.477 43.947 2.543 8.477 43.947 3.080 10.268 32.350
3
4 2.18
7.292 51.239 2.188 7.292 51.239 2.556 8.520 40.870
8
5 1.71
5.721 56.960 1.716 5.721 56.960 2.543 8.476 49.345
6
6 1.63
5.435 62.396 1.631 5.435 62.396 2.356 7.855 57.200
1
7 1.21
4.059 66.455 1.218 4.059 66.455 1.909 6.364 63.564
8
8 1.11
3.706 70.161 1.112 3.706 70.161 1.718 5.725 69.289
2
9 1.01
3.394 73.555 1.018 3.394 73.555 1.280 4.266 73.555
8
10 .948 3.160 76.715
11 .815 2.717 79.432
12 .683 2.278 81.710
13 .634 2.113 83.823
14 .567 1.889 85.712
15 .500 1.667 87.379
16 .489 1.631 89.010
17 .439 1.464 90.475
18 .421 1.403 91.878
19 .330 1.099 92.976
20 .297 .991 93.967
21 .277 .924 94.891
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22 .271 .905 95.796
23 .226 .752 96.547
Table 4:
Cumulative Frequency
Component 1 Explain a variance of 3.398, 11.327%

which is 11.327 % of the total
variance of 30

variance of 30

variance of 30

variance of 30

variance of 30

variance of 30
69
variance of 30

variance of 30

variance of 30
Scree Plot
7.1
6
Eigenvalue
4
3.54
2.54
2.19
2 1.63
1.72 1.11
0.95
1.22 0.68 0.49
1.02 0.57 0.3
0.44
0.82 0.28 0.23
0.63 0.19 0.16 0.13
0.5 0.07
0.42
0 0.33 0.27 0.21 0.18 0.09
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Component Number
Fig 4
With the help of table 3 and 4, we can interpret that 30 statements are now reduced to 9
components contributing 73.555% of the total variance. With the help of Fig1. Scree
plot, we can just visualize that nine factors are reduced with eigen value greater than
1.0000
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Table 5. Component Matrix:
This table reports the factor loadings for each variable on the unrotated components or
factors.
Component Matrix
71
Component
1 2 3 4 5 6 7 8 9
S1 .377 .267 .541 -.333 .217 .171 -.327 .176

S2 -.166 -.163 -.228 .665 -.119 .180 .303
S3 .649 -.382 .347 .119 .188 .121
S4 -.551 -.191 .503 .338 -.271 -.106
S5 .599 -.244 .388 .141 .102 .115 .108 -.166 .210
S6 .751 -.265 -.164 -.156 .291 .131
S7 .223 .232 -.138 .223 -.344 .390 -.237 .498
S8 .430 .124 .128 .249 .581 .125 .306
S9 -.104 -.267 .229 .699 -.224 -.271 -.147
S10 -.170 .698 -.418 .363 .129 .178
S11 .232 .808 -.272 .132 -.161 .157
S12 -.542 -.211 .628 .144 .135
S13 .177 .528 .462 -.216 -.103 .205 -.100
S14 .627 -.139 -.171 -.220 .279 -.227
S15 .689 .337 .100 -.197
S16 .569 .357 .170 .273 -.119 -.346 -.154
S17 -.312 .398 .592 .161 -.109
S18 .481 .343 .427 .117 -.343 -.183
S19 .718 -.106 -.196 -.273
S20 -.395 -.122 .254 .107 .667 .163
S21 .730 -.205 -.139 .116 -.367 .114
S22 .537 -.294 .154 -.108 .245 .470
S23 .484 -.354 .115 .311 .395
S24 .368 .168 .226 -.252 .527 .104 -.341
S25 -.499 .207 .617 -.288 -.106 -.145 .191
S26 .621 .112 .187 .256 .323 .186 -.195
S27 -.503 .430 .516 .251 -.138
S28 .652 .247 .227 -.278 -.236
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S29 -.535 .186 .663 .112 .158 -.225
S30 .459 .422 .117 -.300 -.123 -.153 .335
a 9 components extracted.
Each number represents the correlation between the item and the unrotated factor. This
correlation helps to formulate an interpretation of the factors or components. This is
done by looking for a common thread among the variables that have large loadings for a
particular factor or component. It is possible to see items with large loadings on several
of the unrotated factors, which makes interpretation difficult. In these cases, it can be
helpful to examine a rotated solution.
Table 6: Rotated Component Matrix
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Component
1 2 3 4 5 6 7 8 9
S1 .447 .753 .205

S2 .191 -.765 -.115 .201
S3 -.122 -.414 .591 .282 .153 .194 .284
S4 .189 -.123 -.799 -.232 -.134 -.175
S5 -.374 .570 .295 .158 .158 .120 .256
S6 .755 -.192 .102 .304 .114 .265
S7 .219 .191 .111 .799
S8 .150 .821 .131
S9 .308 -.308 .193 .388 -.466 -.213 -.344 .135
S10 .826 -.152 -.253 -.293
S11 .872 .134 .117 .225
S12 .210 -.138 -.329 .177 -.570 -.208 -.404 .108 .190
S13 .319 .221 .122 .109 .224 .643
S14 -.337 .481 .152 -.114 .371 .272 .180
S15 -.174 .271 .385 .215 .156 .379 .302 .332
S16 -.213 .438 .566 .235 -.267 .172
S17 .113 .429 .161 -.165 -.591 -.139 -.195
S18 .311 .513 .233 .426 .136 -.238 -.190
S19 -.499 .225 .152 .482 .269 .124
S20 -.182 -.821
S21 -.422 .323 .280 .148 -.112 .543 .217 -.140
S22 -.151 -.205 .226 .413 .263 -.129 .551 -.178
S23 -.187 .212 .178 .187 .670 .175
S24 .809 .143
S25 .885 -.160 -.120
S26 -.179 .105 .537 .391 .167 .246 -.135 .207 -.222
S27 .851 .195 -.103 -.151
S28 -.289 .250 .636 .215 .121 .148 -.157 .152
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S29 .860 -.290 -.107
S30 .141 .413 .107 .274 .461 .276 .281
Rotation Method: Varimax with Kaiser Normalization.
a Rotation converged in 31 iterations.
With the help of table 6, we can categorize each statements depending upon the factor
loadings and shown in table7.
Table 7: Factors
Factor 1:
• S19 : Information Provided By Salesperson

• S25 :Safety
• S27 : Easy Availability Of Spare Parts
• S29 : Technology
Factor 2:
• S10 : Government Policies And Regulations

• S11 : Import Duties Imposed By Government
Factor 3:
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• S3 : Family Needs
• S5 : Brand Image
• S6 : Income Level
• S8 : Special Family Programs/Events Like Anniversary, Birthday
• S15 : Insurance Facility
• S18 : Credit Card Acceptance
• S26 : Car Accessories
Factor 4:
• S14 : Installment Payment Facility

• S16 : Location Of The Car Dealer Shop
• S24 : Looks
• S28 : Availability Of Service Station
Factor 5:
• S4 : Status Symbol
• S12 : Advertisements And Promotions
• S17 : Home Delivery Facility
• S30 : Overall, I Am Satisfied With My Car I Own
Factor 6:
• S1 : Price Of The Car

• S2 : You Take Suggestions Of Your Family Members
• S9 : Family Members & Friend Circle
• S13 : After Sales Service
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Factor 7:
• S20 : Availability Of Variety Of Cars Under One Roof

• S21 : Information Provided By Various Car Related Magazines
Factor 8:
• S22 : Mileage
• S23 : Power
Factor 9:
• S7 : Festival Season/Offers
Table 8: Component Score Coefficient Matrix
Component
1 2 3 4 5 6 7 8 9
S1 .019 -.096 .179 -.106 -.051 .347 -.042 -.094 .209

S2 .062 .064 .164 -.069 -.018 -.386 -.001 .100 .174
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S3 .051 -.113 .193 .009 -.025 -.058 .034 .119 -.033
S4 .026 -.010 .082 .079 -.386 -.084 .132 -.020 -.120
S5 .022 -.144 .202 -.001 -.010 .062 -.054 -.017 .226
S6 -.031 .226 -.105 .060 -.035 .102 -.080 .101 .149
S7 .010 .031 .009 -.035 .016 -.053 .008 .035 .627
S8 .011 .064 .400 -.185 -.120 -.091 -.054 .111 .065
S9 .119 -.112 .105 .005 .244 -.177 -.097 -.193 .122
S10 -.055 .261 .081 -.028 .029 -.074 -.163 -.101 .035
S11 .040 .282 .025 -.007 .003 -.087 .116 .059 -.023
S12 .030 -.011 -.075 .212 -.240 -.050 -.187 .164 .124
S13 .099 .022 .000 .047 .097 .282 -.100 -.043 -.010
S14 -.022 .010 -.099 .169 -.035 -.110 .175 .103 .078
S15 .007 .080 .084 -.017 -.037 .084 .068 .150 .041
S16 -.048 -.037 .092 .240 -.129 .031 .099 -.311 .084
S17 -.013 .149 .148 -.012 -.305 .020 .046 -.028 -.147
S18 .048 .087 .145 .057 .150 -.049 .019 -.200 -.191
S19 -.111 -.007 -.011 -.033 .164 -.004 .054 -.026 -.087
S20 -.080 .034 .081 .039 .056 -.001 -.563 .075 -.067
S21 -.040 .001 .028 .042 -.054 -.130 .289 .050 -.139
S22 .037 -.002 .006 .158 .071 -.077 -.219 .358 -.196
S23 .021 .001 .076 -.179 -.028 -.022 .021 .444 .171
S24 .073 .026 -.146 .470 -.076 .010 -.068 .035 -.079
S25 .329 -.023 -.029 -.008 .116 -.040 .076 .130 -.021
S26 -.027 .055 .148 .147 -.006 .085 -.248 .079 -.225
S27 .291 .047 .067 .001 .027 -.041 .061 .013 .003
S28 -.071 -.018 -.032 .289 .000 .079 -.004 -.250 .039
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S29 .295 -.042 .018 .112 -.102 .018 .125 .001 -.044
S30 .150 .153 -.061 .078 .170 -.117 .109 .201 -.132
Rotation Method: Varimax with Kaiser Normalization.
From the table 8 of component score coefficient matrix, we can obtain the quantifiable data of
each factor. The coefficients between the statements and the factors are taken according to the
statement affecting the factor ( on the basis of Table 7)
Conclusions and Recommendations
Since Indian Automobile market is continuously in the prowl of surging as a major car
manufacturer, people are purchasing car as there is increase of income of common
people as well as change in tastes and preferences of consumers. It is important for the
car manufacturers and car dealers to be able to understand the different factors
affecting the extent in car purchasing behaviour. The factor analysis results indicate that
factor 1 (table 7) which consists of Information provided by salesperson; safety; easy
availability of spare parts; technology are affecting the car purchasing behavior. People
are more conscious about the on spot information provided about various cars who
serves according to the needs and wants of the customer. The type of technology used
and the wider reach of the service stations also affect the most on car purchasing
decision. While government obligations and various policies like import duties, custom
exemptions is seen as second most affecting driver (factor 2, table 7) of purchase of
cars. Factor 3 includes family needs; brand image; income level; special family
programs/events like Anniversary, Birthday; insurance facility; credit card acceptance;
car accessories affects customers car purchase decision causing a variance of
3.080.This shows that importance of family decisions, special occasions in family and
the various services provided by car dealers. Factor 4, Table 7 includes installment
payment facility; location of the car dealer shop; looks; availability of service station
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showing customers accessibility to the service provided. Factor 5 shows the impact of
various promotional activities and extra care taken by car dealers. Factors 6 shows the
impact of suggestion provided by family members and peers as well as price and after
sales service provided. Factor 7 includes the infrastructural benefits of the shop and the
variety of cars it stores .The last but not the least ones shows the impact of factors of
technical specifications of the car and the festive season offers
Overall, various internal and external factors like extra care facilities, location of the
shops, various information provided by car dealers, advertisement and print media
promotions, features of the car in all are contributing in making car purchasing
behaviour of customers.
Indian Automobile Manufacturers in India and Plant Locations
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Domestic and Foreign Vehicle Manufacturers:
Passenger Vehicles
The main domestic manufacturers of passenger vehicles are as follows:
• Maruti Udyog
• Tata / Telco
• Mahindra / Mahindra
• Hindustan Motors
Foreign competitors manufacturing locally including Hyundai, Ford, General Motors,

Honda, and Toyota .
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Car demand has seen a turnaround since mid 2001 thanks to heavy discounts
and cheaper finance. A large number of new models, both locally assembled and
imported, have also revitalized the market.
In terms of volumes:
• The A/B segments are where India’s strength and future lies. The A/B segment
accounts for over 65% of the total passenger vehicles produced. Competition in
this segment is stiff with Maruti the market leader with around 55% market
share. New models from Telco (Indica), Hyundai (Santro) and Fiat (Palio)
however are eroding Maruti’s long standing dominance in this segment.
• The mid / luxury range is developing with the introduction of Ford (Ikon),
Hyundai (Accent/Sonata) and Skoda (Octavia), although the volumes are not
significant.
• The UV segment remains sluggish with growth at just over 1%. The clear market
leader, Mahindra (44% market share) posted increased sales of 9% in the first 3
quarters of 2002/03. Toyota and Telco domestic UV business remains flat.
Commercial Vehicles
The main Indian companies in the Commercial Vehicle segment are:
• TATA Engineering and Locomotive Company (TELCO)

• Ashok Leyland
• Bajaj Tempo Ltd
• Eicher Motors Ltd
• Swaraj Mazda
There is only one international company currently manufacturing CVs in India, Volvo but
again volumes are not large. Other global players are active, although in partnership
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with one of the domestic manufacturers E.g.:- IVECO (manufacturing their range of
trucks in association with Ashok Leyland.
There has been a significant turn around in this segment over the last 18 months with
over 30% growth being seen in terms of both production and sales.
This sector has received a huge boost with India’s massive demand from the
infrastructure sector (particularly roads), cyclical fleet replacement by fleet owners and
an upturn in the cement and steel sectors.
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Automobile Manufacturers Market Share
Passenger Cars LCV
0.604 Mn 0.083 Mn
Hyundai Bajaj
18% Tempo Eicher HM
Tata Ashok 7% 8% 2%
13% M&M
Leyland 30%
Fiat 1%
4%
For d
3%
HM
Maruti 2%
55% Toyota Honda Tat a Sw araj
0.3% Daimler GM2% 44% Ma zda
Chrysler MitsubishiSkoda 1% 8%
0.2% 1% 1%
• Maruti (JV of Suzuki), leading the market,

• Tata and M&M are the key players
a) Followed by Hyundai and Tata, together hold close to 75% of market
b) Daewoo stopped production, mainly due to financial issues 2 years back
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Review of Literature
Brand Personality
A brand is “a set of expectation and association evoked from a company or product. A
brand is how your key constituents- customers, employees, shareholders etc.
experience what you do.” Some brands are of such great importance to people, that we
speak of them as a part of one’s life and identity, being used to express one. Some
would say that these brands have their own personality, the brand personality, which
can be defined as “the set of human characteristics associated with a given brand”.
Thus, it includes such characteristics as gender, age and socioeconomic class, as well
as such classic human personality is both distinctive and enduring.
Based on the premise that brand can have the personalities in much the same way as
humans, brand personality describe brands in terms of human characteristics. Brand
personality is seen as valuable factor in increasing brand engagement and brand
attachment, in much the same way as people relate and bid to other people. Much of
the work in the area of brand personality is based on translated theories of human
personality and using similar measures of personality attributes and factors. Brand
personality refers to the set of human characteristics we associated with the brand. A
common way of determining this is to reply on the metaphor: “If the brand was a person,
what would he/she be like?” we then list and group the traits to describe the brand as,
for example: caring, approachable and trustworthy. However, there is a lot more we can
do.
Because many people interact with brands as though they were other people, it is
important to understand what a brand personality consists of, and how its
characteristics can be used to affect the relationship between the brand and its user.
Knowing and understanding the brand personality gives a good insight into this
relationship, and into peoples’ attitudes towards the brand, and is also as important
guide to communicating the brand.
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VALUES AND CHARACTERISTICS OF BRAND PERSONALITY
People’s personalities are determined largely through the value and beliefs they have,
and other personality characteristics they develop. An example of value or belief is
honesty.
Many people believe in being honest in everything they do and say. An example of
characteristic is confidence. This is not a belief, but more of a behavior. There are, of
course, many value/beliefs and characteristic that a person may have, but there are
some that are particularly likeable. It is these likeable values and characteristics that
people are inevitably attracted. Examples of these include dependability,
trustworthiness, honesty, reliability, friendliness, caring, and fun-loving.
There are about two hundred words that describe personality characteristics, and these
can be used for putting personality into brands. To illustrate how people think in
personality terms when making judgments about brands, here are the results of
consumer research into how people feel about tow companies. When asked question:
“if these companies are people, how would you describe them?” their replies were:
Company A Company B
Sophisticated Easy going
Arrogant Modest
Efficient Helpful
Self- centered Caring
Distant Approachable
Disinterested Interested
These two companies are actually competitors in a service industry. If you were asked
of these two companies you would like to be your fiends, you would probably choose
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company B, as did 95% of other respondents. It is not surprising that the service level of
company B can be better experience for customers than that of company A. it is also
easy to conclude that if customers consistently experience these differences between
the two companies, then the brand image of company B will be much better than
company A.
A further point of interest arising out of this research is that people tend to prefer brands
that fit their self-concept. Everyone has views about themselves and how they would
like to be seen by others. And they tend to like personalities that are similar to theirs, or
to those whom they admire. Thus, creating brands with personalities similar to those of
a certain group of consumers will be an effective strategy. The closer the brand
personality is to the consumer personality (or one which they admire or aspire to), the
greater will be the willingness to buy the brand and deeper the brand loyalty.
The Creation of Brand Personality
Brand personality traits are formed and influenced by any direct or indirect contact that
the consumer has with a brand. A brand, unlike a person, cannot think, feel or act. A
brand has no objective existence at all; it is simply a collection of perception on the mind
of the consumer. Consumers accept the marketing actions to humanize brands. One
explanation fort this can be found in the theories of animism, which suggest that there
exists need by people to anthropomorphize objects in order to facilitate interaction with
the nonmaterial world. Anthropomorphize occurs when human qualities are attributed
to non human objects, e.g. brands. Consumers easily assign personality quality to
inanimate objects like brands in thinking about the brands as if they are human
characters.
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In a direct way, personality traits are associated with a brand by the people associated
to that brand. One direct way to form and influence brand personality is user imaginary.
User imaginary is defined as the set of human characteristics associated with the typical
or stereotype user of the brand. Associations with the company employees or CEO and
the brand’s product endorsers are also direct ways by which brand personality traits are
formed and influenced. The personality traits that of the people associated with a brand
are transferred directly to the brand. The theories of animism describe another process
mechanism that directly explains the specific ways in which the vitality of the brand can
be realized (Fournier, 2004). Spokespersons that are used in advertising can have
personalities that fit those of the brand they advertise. Over time, the personalities of the
spokesperson are transmitted to the brand. The brand-person associations can also
have a more personal nature. Brands can be associated with person who use or used
that particular brand, for example a close friend or a family member. Also, brands
received as gifts can also be associated with the person from whom the gift was
received. These person associations serve to animate the brand as a vital in the minds
of the consumers. Obviously, this aspect is much less under the control of the
marketers.
Indirectly, the brand personality is created by all the elements of the marketing mix.
Betra, Lehman and Singh suggest that the personality of a brand is created over time,
by the entire marketing mix of the brand - “its price (high or low, odd or even), retail
store location (imaginary associations), product formulation (ingredients, benefits), and
product form (solid/liquid. Etc.), packaging details (color, size, material, shape), symbol;
used an all phases of the brand communication, sales promotion, and media
advertising”.
Another form of animism explains how brand personality is created in a more indirect
way. This form of animism involves complete anthropomorphization of the brand object
itself. Human qualities of emotionality and thought are transferred to the brand. This is
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achieved with the help of the marketing actions, especially advertising. For example, the
brand character of M&M in the M&M commercials has the capacity to laugh and joke.
One of the advantage of the brand personality is that based on their distinctive
personalities, consumers are able to differentiate between brands. Another advantage is
that the consumer can interpret the brand’s image in such a way that it is personally
more meaningful. Brand personality encourages more active processing on the part of
the consumer. Thus, the consumer put more efforts in creating and using the brand
personality. A further advantage of brand personality is that life is given to a brand. By
vitalizing a brand, another perspective of brand personality can be examined, namely
the role of a brand as relationship partner in a consumer-brand relationship. Next we will
concentrate on these consumer-brand relationships.
Whether the brand is a product or a company, the company has to decide what
personality traits the brand is to have. There are various ways of creating brand
personality. One way is to match the brand personality as closely as possible to that of
consumers or to the personality that they like. The process will be
 Define the target audience

 Find out what they need, want and like
 Build a consumer personality profile
 Create the product personality to match that profile
This type of approach is favored by companies such as Levi Strauss, who research their
target audience fastidiously. For Levis the results is a master brand personality that is:
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 Original
 Masculine
 Sexy
 Youthful
 Rebellious
 Individual
 Free
 American
A related byproduct brand personality (for a specific customer group) such as Levi’s 501
jeans is:
 Romantic
 Sexually attractive
 Rebellious physically prowess
 Resourceful
 Independent
 Likes being admired
Both profile appeal mostly to the emotional side of the people’s minds- to their feelings
and sensory function. This profiling approach aims to reinforce the self-concept of the
consumers and their aspirations. The approach is ideal for brands that adopt a market-
niche strategy, and can be extremely successful if a market segment has a degree of
global homogeneity, as is the case with Levis.
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Non product related brand personalities drivers
 User imaginary – user imaginary can be based on either typical users (people
you see using the brand) or idealized users (as portrayed in advertising and else
were). User imaginary can be powerful driver of brand personality, in part
because the user is already a person and thus the difficulty of conceptualizing
the brand personality is reduced. For example Charlie has a feminine, strongly
independent brand personality driven by it user imaginary. The upscale
personality of Mercedes and the sexy, sophisticated personality of Calvin Klein
are similarly influenced by user imaginary.
 Sponsorship – activities such as events sponsored by the brand will influence

its personality. Swatch, for example, reinforces its offbeat, youthful personality
will targeted sponsorships that have included the Freestyle Ski World Cup in
Breckenridge, the first International
 Age – how long a brand has been on the market can affect its personality. Thus
new entrants such as Apple, MCI, and Saturn tend to have younger brand
personalities than brand such as IBM, AT&T, and Chevrolets, and it as all too
common far a major dominate brand to see as strongly and old fashioned, a
brand for older people.
 Symbol – a symbol can be powerful influence on brand personality because it

can be controlled and can have extremely strong associations. Apples bitten
apple, the Marlboro cowboy, the Michelin mans all helps to create and reinforce a
personality for their brands.
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Why use brand personality
The brand personality construct can help brand strategies by enhancing their
understandings of people’s perceptions of and attitude towards the brand, contributing
to a differentiating brand identity guiding the communication effort and creating brand
equality.
Enriching understanding
The brand personality metaphor can help a manager gain an in-depth understanding of
consumer perceptions and attitudes towards the brand. By asking people to describe a
brand personality, feelings and relationship can be identified that often provide more
insight than is gained by asking about attribute perceptions.
 Contributing to a differentiating identity
Strategically, a brand personality, as a part of a core or extended identity, can serve as

the foundation for meaningful differentiations. Advertising agencies such as Young &
Rubicam and Ogilvy & Mather routinely include a brand personality statement as a part
of their brand positioning strategy.
 Guiding the communication effort
Tactically the brand personality concept and vocabulary communication the

brand identity which richness and texture to those who must implement the
identity building effort. Practical decisions need to be made about not only
advertising but packaging, promotions, which events to associate with, and the
style of person interactions between the customer and the brand.
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 Crating brand equity
The brand personality creates brand equity. The self-expression model explains
this. The model says that for certain groups of customers; some brands become
vehicles to express a part of their self-identity. People express their own or
idealized identity in a variety of ways, such as a job choices, attitudes, options,
activities and lifestyles. Brand that people like, admire, discuss, buy and use also
provide a vehicle for self-expression.
Brand personality of cars
Are you what you drive? That is what are companies seem to be asking and in the
same breath trying to convince you about. In other words, are you the Hyundai accent
owner who commands immediate respect wherever she goes (including fro the potential
father-in-law) or are you the suave executive from the Chevrolet ad who is ever ready to
share a moment with loved one? With a plethora of new models in the market, and
generic benefits (such as space or fuel efficiency) of a particular car segment hardly a
distinguishing factor between car models, marketer are increasingly differentiating on
the emotional pay-off a particular car model/brand provides to the customer. This, of
course, varies from the segment to segment and also on how long a particular model
has been in the market.
For instance, while advertising for entry level or smaller cars tends to focus more on the
rational or functional benefits of the vehicles, the differentiations is increasingly on the
emotional benefits when it comes to high end cars.
“Generally, it has been seen as one move up the value chain, the differentiation is more
on the emotional pay-off. People buy car as an extension of their personality rather than
just features. A car, in India, helps build up show off, social esteem value. The
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advertising would also vary according to the segment which one is targeting,” he says.
For instance, the Chevrolet Optra ad (which depicts a young husband driving his wife to
see the moon on the occasion of Karvachauth) shows an Optra consumer as someone
who believes in family values and indulging loves ones.
“We find that typically profile of an Optra consumer is someone who is in the age group
of 35-45years and has a chauffer. He buys a car not only for himself but also for the
family and tries to make up, for not being able to spend enough time, by indulging love
ones,” points out dutta. The positioning goes well with the companies catch lines of “for
a special journey called life”.
High end car maker Skoda auto too, through its advertising, attempts to connect with its
consumer on emotional level. “Car is the extension of the personality and our
advertising shows the consumer to be youthful, image-conscious and even bit a macho.
The campaign jointly made by Skoda’s marketing department and ad agency IB&W not
only communicates the quality of the brand but an appreciation for the finer things in life.
The target Skoda consumer is a SEC A1, primarily male, businessman or someone in
the senior management,” says Shashank vaid, manger (marketing), Skoda Auto India.
Surely, image building does come higher in the consumer’s scheme of priorities when
buying a new car than ever before.
The importance of brand image has risen sharply in the last few years. At the segment
level, the increase in importance is greater for the mid-size cars, indicating the
relevance of brand among the more expensive market segments. The manufacturer
need to focus more o how consumers perceive them as offering exciting cars and being
committed towards them. Contemporariness of model has a big impact on purchase
decision. The perception of the car in terms of its performance and design, quality,
sales, after sales, cost of ownership, apart from brand image, all impact upon the
purchase decision.”
According to Bhatia, as long as advertising for cars is strongly differentiated and sharply
positions the model and at the same time satisfies a define need segment, it shall have
the capability to break the clutter and creates a unique and compelling reason for
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consumers to purchase. “One good example of this is Ford Ikon- the josh machine
made a tremendous impact on consumers in offering to satisfy a clear need. You can
see some more of this with a recently launched premium hatch back as well”.
Interestingly, the strategy marketer follow changes a bit when it comes to addressing
the smaller car category with the rational benefits of a brand tending to be the focal
point of the campaign. “We have found that typically a buyer for a smaller car (sub Rs 4
lac) looks for aspects such as reliability and fuel efficiency. This changes as we move
up since in case the consumer has been with the category for a longer time and hence it
is important t to talk of an emotional pay off.
A case in point is the Maruti 800 campaign in which the kids who is playing with a toy
Maruti 800 exclaims to his dad (when asked how long will he keep on running the car),
“papa ki Kara, petrol khatam hi nahin Honda.” The ad cleverly conveys that the car just
keeps going on and on. It ends with the voiceover telling us that Maruti Suzuki is most
fuel-efficient car.
However in the small car segment, the rational benefits magic is not always applicable.
Take the case of Hyundai Santro, the advertising of which has evolved over the years
from initially conveying mainly the functional benefits of the model to connecting with the
consumer on an emotional level now. “When we launched the Santro, we started with
the positioning if the car being a complete family car which was completely rational
positioning. But then two things happened- the product found acceptance in the market
and the competition came up with similar product in the market.
Brand image is not driven by good advertising alone but is significantly impacted upon
by the cars performance and design, quality, and the cost of ownership. Among the
three, product quality has the highest correlation with brand image. Small car buyer
seeks capability in advertising, and fuel efficiency is relatively more important to them.
Technology, innovation, and good influence premium mid-size buyers. One reality for us
in India is that the market is extremely price/value conscious.
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Objectives of Study
The research objective is a statement, in as precise terminology as possible, of what

information is needed. The research objective should be framed so that obtaining the
information will ensure that the research purpose is satisfied.
Research objective have three components.
Research question –
The research question specifies the information the decision making needs. The
responsibility of the researcher is to make the researcher question as specific and
precise as possible. The researcher question asks what specific information is required
to achieve the research purpose, or answer the research problem. If the research
questions are answered by the research, then the information should aid the decision
maker.
Development of hypothesis –
A hypothesis is a possible answer to a question. Development of hypotheses implies

generating basically alternative answers to research questions. The research
determines which of these alternative answers is correct. It is not always possible to
develop hypotheses, but efforts should be made.
Scope or boundaries of the research -
Defining the scope of the research or the research boundaries ensures the desired
precision or accuracy of the result.
The researcher’s responsibility is to restate the initial variables associated with the
decision problem, that is convert the research problem, in the form of one or more key
question formats-
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• How
• What
• Where
• When
• Why
Objectives of the Research
The research objectives for the project undertaken can be defined as follows:
• To determine the demographic variables of the customers of different brands of

cars.
• Examine the customer perception about the cars.
• To judge the satisfaction level of car owners of different brands.
• The research tracks responses at following two layers
1. Product related parameters

2. Dealer related parameters
• To analyze the psychographic variables of the customers of different brand of the

cars.
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Scope of the study
It is aimed to study the car market and buying behavior of the customer. The project is
analyzed the demographic, psychographic and buying characteristics of the customers
in buying the car. It includes the detailed study of customers focusing on the various
parameters that lead to identifying and understanding the perception of the customer in
buying the car brands.
Significance of the study
A brand is a set of expectations and associations evoked from company or product. A

brand is how key constituents- customers, employees etc. experiences what you do.
Some brands are of such great importance to people, that we speak of them as a part of
one’s life and identity, being used to express one. Some would say that these brands
have their own personality, the brand perception, which can be defined as the set of
human characteristics associated with a given brand.
Because many people interact with brand as though they were other people, it is
important to understand what a brand perception consists of, and how its characteristics
can be used to affect the relationship between the brands and its users. Knowing and
understanding the brand perception gives a good insight into this relationship, and into
peoples’ attitudes towards the brand, and is also an important guide to communicating
the brand.
Like apparel and lifestyles brands, a car is extension of one’s perception. People buy
cars which either matches their personalities or those which provide them opportunities
of being perceived as somebody they aspire to be. This becomes significant as
consumers move up the value chain from small compact cars to midsize and upwards.
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Research Methodology
A research process consists of stages or steps that guide the project from its conception
through the final analysis, recommendations and ultimate actions. The research process
provides a systematic, planned approach to the research project and ensures that all
aspects of the research project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a
key question.
R e s e a rc
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INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of

evaluation and revaluation of primary and secondary research. The techniques and
concepts used during primary research in order to arrive at findings; which are also
dealt with and lead to a logical deduction towards the analysis and results.
RESEARCH DESIGN
I propose to first conduct a intensive secondary research to understand the full impact
and implication of the industry, to review and critique the industry norms and reports, on
which certain issues shall be selected, which I feel remain unanswered or liable to
change, this shall be further taken up in the next stage of exploratory research. This
stage shall help me to restrict and select only the important question and issue, which
inhabit growth and segmentation in the industry.
The various tasks that I have undertaken in the research design process are :
 Defining the information need

 Design the exploratory, descriptive and causal research.
RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis
It has a logical and hierarchical ordering:
 Determination of information research problem.

 Development of appropriate research design.
 Execution of research design.
 Communication of results.
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Each step is viewed as a separate process that includes a combination of task , step
and specific procedure. The steps undertake are logical, objective, systematic, reliable,
valid, impersonal and ongoing.
EXPLORATORY RESEARCH
The method I used for exploratory research was
 Primary Data
 Secondary data
PRIMARY DATA
New data gathered to help solve the problem at hand. As compared to secondary data
which is previously gathered data. An example is information gathered by a
questionnaire. Qualitative or quantitative data that are newly collected in the course of
research, Consists of original information that comes from people and includes
information gathered from surveys, focus groups, independent observations and test
results. Data gathered by the researcher in the act of conducting research. This is
contrasted to secondary data which entails the use of data gathered by someone other
than the researcher information that is obtained directly from first-hand sources by
means of surveys, observation or experimentation.
Primary data is basically collected by getting questionnaire filled by the

respondents.
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SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose.
Sources include census reports, trade publications, and subscription services. Data
that have already been collected and published for another research project (other than
the one at hand). There are two types of secondary data: internal and external
secondary data. Information compiled inside or outside the organization for some
purpose other than the current investigation. Data that have already been collected
for some purpose other than the current study. Researching information which has
already been published. Market information compiled for purposes other than the
current research effort; it can be internal data, such as existing sales-tracking
information, or it can be research conducted by someone else, such as a market
research company or the U.S. government. Published, already available data that
comes from pre-existing sets of information, like medical records, vital statistics, prior
research studies and archival data
Secondary source of data used consists of books and websites

My proposal is to first conduct a intensive secondary research to understand the full
impact and implication of the industry, to review and critique the industry norms and
reports, on which certain issues shall be selected, which I feel remain unanswered or
liable to change, this shall be further taken up in the next stage of exploratory research.
DESCRIPTIVE RESEARCH
STEPS in the descriptive research:
 Statement of the problem
 Identification of information needed to solve the problem
 Selection or development of instruments for gathering the information
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 Identification of target population and determination of sampling Plan.
 Design of procedure for information collection
 Collection of information
 Analysis of information
 Generalizations and/or predictions
DATA COLLECTION
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data collection.
The common factor in all varieties of the questionnaire method is this reliance on verbal
responses to questions, written or oral. I found it essential to make sure the
questionnaire was easy to read and understand to all spectrums of people in the
sample. It was also important as researcher to respect the samples time and energy
hence the questionnaire was designed in such a way, that its administration would not
exceed 4-5 mins. These questionnaires were personally administered.
The first hand information was collected by making the people fill the questionnaires.
The primary data collected by directly interacting with the people. The respondents were
contacted at shopping malls, markets, places that were near to showrooms of the
consumer durable products etc. The data was collected by interacting with 200
respondents who filled the questionnaires and gave me the required necessary
information. The respondents consisted of house wives, students, business men,
professionals etc. the required information was collected by directly interacting with
these respondents.
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DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE
TARGET POPULATION
It is a description of the characteristics of that group of people from whom a course is

intended. It attempts to describe them as they are rather than as the describer would
like them to be. Also called the audience the audience to be served by our project
includes key demographic information (i.e.; age, sex etc.).The specific population
intended as beneficiaries of a program. This will be either all or a subset of potential
users, such as adolescents, women, rural residents, or the residents of a particular
geographic area. Topic areas: Governance, Accountability and Evaluation, Operations
Management and Leadership. A population to be reached through some action or
intervention; may refer to groups with specific demographic or geographic
characteristics. The group of people you are trying to reach with a particular strategy or
activity. The target population is the population I want to make conclusions about. In an
ideal situation, the sampling frames to matches the target population. A specific
resource set that is the object or target of investigation. The audience defined in age,
background, ability, and preferences, among other things, for which a given course of
instruction is intended.
I have selected the sample through Simple random Sampling
SAMPLE SIZE:
This involves figuring out how many samples one need.
The numbers of samples you need are affected by the following factors:
• Project goals
• How you plan to analyze your data
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• How variable your data are or are likely to be
• How precisely you want to measure change or trend
• The number of years over which you want to detect a trend
• How many times a year you will sample each point
• How much money and manpower you have
SAMPLE SIZE
I have targeted 100 people in the age group above 21 years for the purpose of the
research. The sample size is influenced by the target population. The target population
represents the Delhi regions. The people were from different professional backgrounds.
The details of our sample are explained in chapter named primary research where the
divisions are explained in demographics section.
SAMPLING TECHNIQUE
Simple random sampling technique has been used to select the sample
A simple random sample is a group of subjects (a sample) chosen from a larger group
(a population). Each subject from the population is chosen randomly and entirely by
chance, such that each subject has the same probability of being chosen at any stage
during the sampling process. This process and technique is known as Simple Random
Sampling, and should not be confused with Random Sampling.
ERRORS IN THE STUDY
Interviewer error
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There is interviewer bias in the questionnaire method. Open-ended questions can be
biased by the interviewer’s views or probing, as interviewers are guiding the respondent
while the questionnaire is being filled out. The attitudes the interviewer revels to the
respondent during the interview can greatly affect their level of interest and willingness
to answer openly. As interviewers probing and clarifications maximize respondent
understanding and yield complete answers, these advantages are offset by the
problems of prestige seeking, social desirability and courtesy biases.
Questionnaire error
The questionnaire designing has to careful so that only required data is concisely
reveled and there is no redundant data generated. The questions have to be worded
carefully so that the questions are not loaded and does not lead to a bias in the
respondents mind
Respondent error
The respondents selected to be interviewed were not always available and willing to co
operate also in most cases the respondents were found to not have the knowledge,
opinion, attitudes or facts required additionally uninformed response errors and
response styles also led to survey error.
Sampling error
I have taken the sample size of 100, which cannot determine the buying behavior of the
total population. The sample has been drawn from only CHANDIGARH.
Research Design
Research design is a conceptual structure within which research is conducted. A

research design is the detailed blueprint used to guide a research study towards its
objective. It is a series of advanced decision taken together comprising a master plan or
a model for conducting the research in consonance with the research objectives.
Research design is needed because it facilitates the smooth sailing of the various
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research operations, thereby making research as efficient as possible yielding
maximum information with the minimum effort, time and money.
RESEARCHDES
Limitations of the study
• All the research projects are hindered in their smooth flow by some unforeseen
EXPLORATORY
problems. The problems arise in the form of constraints by budget, time and
scope of the study. The current project was also faced by certain problem. Some
of the problems faced in the course of the research are as follows:
RESEARCH
•
DESIGN
A strong unwillingness on the part of the owners of various cars, to participate
and aid the research.
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• The boredom and wavering concentration that set in among the respondents
while answering the long questionnaire: thus in turn led to the difficulty of
preventing incomplete questionnaires.
• Sampling error: the research include a sample size of 100 customers which is not
enough to determine the brand perception of the consumers for buying the cars.
Since its not a census survey there is always a chance of error while
extrapolating the results of a sample study over the population especially in those
researches where the qualitative aspects are concerned. So it’s always doubtful
to map the qualitative aspects using a quantitative measure.
• The study was limited to the geographical region of DELHI
Car’s Profile
Maruti Udyog Limited
Maruti Udyog Limited is the premier car company in India. Maruti Udyog Limited (MUL)
was established in Feb 1981. The company entered into collaboration with Suzuki Motor
Corporation of Japan to manufacture cars. Maruti is the highest volume car
manufacturer in asia, outside Japan and Korea.
Maruti Udyog Limited, the largest Car selling company in India, has many unique
Service advantages for the customers. It has bagged the First Position in JD Power
Customer Satisfaction Index for the consecutive two years. The company has also
ranked highest in the India Sales Satisfaction Study.
1. Estilo
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Maruti launched all new Estilo. If you are wondering why I dropped Zen from this car's
name then let me explain. Estilo has got Wagon R's engine and chassis and Suzuki MR
Wagon's shape. Whatever remains is taken from Zen, well does anything remains
actually? Yes, Name! Name is taken from Zen, 'Zen Estilo'. In essence it’s stylish
Wagon R, Japan's MR Wagon, combination of the two or anything but Zen. It seems
Maruti wants to exploit Zen brand-image hence named this car after Zen.
Zen Estilo has the same engine (1061cc, 64.8ps, 84Nm, 4-cylinder, 16-valve, MPFI
F10D Petrol) under the hood that is found in Maruti Wagon R. Absolutely nothing has
been changed except for the fact that this engine is much refined and is slightly better at
responsiveness and fuel economy. This simply translate into 'Zen Estilo is a bit faster
and more fuel economic than Wagon R'. Due to highly good drivability, driving in city
would be more fun with Zen Estilo. Electronic Power Steering (not available in LX
version) really helps in crowded traffic. Owning and maintaining Zen Estilo won't be a
problem, engine is proven reliable and virtually maintenance-proof.
2. Wagon R Duo
At first glance the Maruti WagonR Duo looks quite normal. Well, that is if you think the
WagonR's boxy looks are normal to start to start with. Frankly, for a car that has to get
around a city, I really don't care, because the Duo is all about LPG, and the fact that it is
first factory fitted LPG car in India. Factory-fitted means one major plus, your warranties
don't get voided because of the gas fitment.
There is no denying the cars cost advantage, this is the cheapest Maruti vehicle to run,
and that in itself is a massive statement. The redesign of the car hasn't just meant a
fresh exterior look; it has also meant new interior - rotary controls on the panel and a
very neat looking display with an all new Speedo.
The problem is that despite the not insignificant cost savings, you save a rupee a
kilometer on LPG over Petrol, which even makes the extra Rs 24000 you have to pay
for the car seem worth it, the Duo just wheezes at times. And this is despite two
important facts, first LPG has more energy than CNG (that other gas) and because this
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is a company designed car, Maruti engineers have really played around with the
engines tuning.
3. Swift
Competing with the other cars of Maruti, Maruti Swift is gradually making its position in
the world of mid-sized family car. Maruti Swift has come up with the special technical
specifications of 16 valve 4-cylinder, 1300 cc engine generating power. Maruti swift is
equipped with various safety features and well advanced equipments. 3 assist grips, 3
spoke urethane steering wheel, antenna, cabin light (3 position), console box (lower),
cup holders (front 2, rear1), front door trim pockets, green tinted glass window, halogen
headlamps, headlamp leveling device, heater and manual Air conditioning, OVRM
(internally adjusted), rear fog lamps, wind screen wiper 2 speed plus 1 speed
intermittent, tailgate opener key type, trip meter (digital display), sun visors (both sides),
brake assist , child lock (rear door), high mounted stop lamp, power steering, rear seat
belts etc. are the features available in this model. Apart from the features found in other
model, striking features of this model are black colored A & B pillars, 12v accessory
socket in center console, day and night rear view mirror, door ajar warming lamp,
driver's seatbelt warning lamp, tachometer, driver's seat belt warning lamp, vanity
mirrors (sun visor co-driver side), rear seat head restraints, fabric accented door trims,
central door locking (4 door), front and rear electronic windows, front fog lamps, light off/
key reminder, manual air-conditioning, key not removed warning buzzer, etc
4. Maruti Baleno
This mid size car with its bold and elegant looks along with its smart performance is
becoming the part of the dream of many car lovers.
Colors
• Pearl Silver
• Silky Silver
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• Superior White
• Midnight Black
• Bean Blue
Along with the features present in Lxi, there are many other extra features available in
this model like leather steering cover, automatic climate control, rear spoiler with LED
stop lamp, stylish alloy wheels, MP3 music system, silver finish centre garnish, remote
keyless entry etc. has various effective comfort and safety features like tilt adjust power
steering, central lock door locking, electric windows, tachometer, trip meter, "key not
removed" warning buzzer, AC illumination system, cigarette lighter, ash tray
illumination, electrically operated AC louver switches, semi concealed windshield wiper
(2 speed plus 2 controlled intermittent), front and rear mud flaps, day/night inside rear
view mirror, velour floor carpet, front door armrests and pockets (both sides), rear door
child lock, lockable glove box, side impact beams etc.
5. Maruti Esteem
Sophisticated big structured Maruti Suzuki esteem is one of the old car of the Maruti
Udyog group. To run this huge car its engine is made of lightweight all-aluminum. This
contemporary engine has capacity of 65 bhp at 6000 rpm.
According to *Mileage (Auto India, Nov 2005), Esteem holds the topmost position on
mileage among the other category of cars including the small cars.
There are three models of Maruti Suzuki Esteem:
• Maruti Esteem (Lx)

• Maruti Esteem (Lxi)
• Maruti Esteem (Vxi)
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The basic model of Maruti Suzuki Esteem includes various safety features and unique
configuration in it. Air conditioned Maruti Suzuki Esteem for the comfort of the owner
provides the facilities of cabin heater, front seat back pockets (both sides), front door
pockets (both sides), air flow controls, remote operated fuel tank lid and trunk lid, coat
hanger hook on grip assistance etc..
Instrument panel of this model includes tachometer and speedometer with sporty dial.
Security measurement of this model has headlamp leveling device, collapsible steering
column, lockable glove box, child proof rear door locks, halogen headlamps, prismatic
day-night inside rear view mirror etc.
This model is more upgraded version of Maruti Suzuki (Lx). Apart from the features that
are already in MarutiSuzuki (Lx), there are other few more added features existing in
Maruti Suzuki (Lxi). For comfort these models specially have rear view mirror on the left
side, power steering and power window (front).
Hyundai Motor
Hyundai Motor India Limited (HMIL) was established in 1996 and is a wholly owned
subsidiary of South Korean multi national, Hyundai Motor Company. HMIL is the fastest
growing and the second largest car manufacturer in India and presently selling 30
variants of passenger cars in six segments. The Company has set up more than 70
dealer workshops that are equipped with the latest technology, machinery, and
international quality press, body and paint shops, across the country, thereby providing
a one-stop shop for a Hyundai customer. Hyundai also has a fleet of 78 emergency
road service cars that can provide emergency service to all its customers anytime,
anywhere.
6. Hyundai Santro
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In the field of mid size car, Santro Xing is capturing the market very rapidly. Its design,
style, space and other special features has made it one of the highest purchasable cars
among any economy class.
It has five variants:
• Santro XK
• Santro XK (Non AC)
• Santro XL
• Santro XO
• Santro AT
Along with the other features that are present in Santro XK (Non AC), other features
present in this model are air conditioner, day and night inside rear view mirror, chrome1
radiator grille etc. Along with the features available in Santro XK, added features in this
model are 4 doors CLS, passenger side OVRM, tinted glass, map pocket front door
driver side, front door full size arm rest, door trim with fabric insert, hydraulic power
steering, power windows (front) etc
7. Getz
Hyundai Motors launched small family car Getz at August 2004. Euro III emission norms
fulfilled Car, Getz powered by 1300 cc. engine. Only the petrol version of this car was
launched initially.
There are four variants found in this car:
• Hyundai Getz GLS

• Hyundai Getz GLX
• Hyundai Getz GVS
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This model has highly advanced features like AC with 4 speed blower, ash tray w/o
illumination, center console w/ pen and jug holder, 60:40 rear seat split, vanity mirror
passenger side, rear defogger, height adjustable seat belts (front), waist line molding, tilt
steering, map pockets, front and rear power windows, rear seat back inclination(4
position), digital clock, rear wiper and washer, front for lamp, body color radiator grille,
rear bumper reflectors, rear mud guard etc. Few features to view comfort and safety in
mind, this model is being specially equipped with rear wiper and washer, rear defogger,
alloy wheels etc. This model has few important features like height adjustable front seat
belts, body colored radiator grille, rear bumper reflectors etc.
8. Hyundai Accent
Hyundai Accent was ceremonially launched at Frankfurt International Motors Show on

15 September, 1999. It came in two versions, i.e. Petrol and Diesel Versions in India
initially, while in Europe it was introduced only with the Petrol version. Initially Accent
came up with the manual transmission which in turn started getting available in
automatic transmission. To know about the models of this car, please see this following
text:
• Hyundai Accent GLE

• Hyundai Accent GLS
• Hyundai Accent Viva
• Hyundai Accent Viva CRDi
• Hyundai Accent CRDi
This model has many distinctive features like 60:40 split folding rear seats, automatic
trunk lamps, body colored door handles, bumper with or without molding, door trims and
consoles, high mounted stop lamps (HMSL), Mist (one stoke wiper blades), semi cloth
upholstery, trip odometer, rear license garnish, waistline molding, wiper (3 no. of
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speed), cross bar under dash board, crumple zone, dual horn, engine sub frame etc.
Features that are striking in this models are tinted glass, remote boot release, split rear
seats, tachometer, remote fuel cap release, sun visors with vanity mirror, power
telescopic antenna, luxury full cloth upholstery, energy absorbing collapsible steering
column, full size wheel cover etc.
9. Verna
The most awaited Verna finally launched in India. Verna can be considered as one of
the most shock wave-creating cars in India; within first five days of its launch over 2000
Verna cars had been sold. Competition seems to be in shock.
Comfort levels are quite good, I wasn't expecting them to be like this, and there is
marginal refinement over Accent. Suspensions give you a feel, 'yes this car is meant for
India', no bumpy rides. Car handles very well too. Interiors are not class, as expected,
though they don't give a cheap feeling at all. City is way ahead of Verna in interiors and
room. Driving position is good and to make it even better, height-adjustable driver-seat
is provided in higher versions. AC is quite effective, cools the cabin quickly. Due to
enough power, switching on AC doesn't make any difference in performance.
Exterior design is satisfactory. Its neither great to boast about nor is bad to complaint
about. Like all other Hyundai car designs, people have started to criticize Hyundai for
design of Verna. After having first glance of Verna, one of Carwale.com colleagues
called out, 'Hey, it looks like Baleno from front and Fiesta from behind!'. You can't help
it, it’s inevitable with Hyundai. ABS is available as optional across the range. It’s a bit
disappointing that Airbags are not provided even as optional. Central Locking is
available as standard feature in all the versions and keyless entry in petrol versions
except the lowest-end Verna i.
Finally Indian automotive industry is taking good shape. We have enough options in
every segment available. From Maruti to Tata to Honda to Volkswagen to BMW to
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Porsche, every major world car player is interested to sell its cars to Indian people.
Everyday we have news about some new launch. Verna is just launched and Ford has
just announced launch of 1.6 TDCi (diesel) in two months time, Maruti has confirmed
discontinuation of Baleno and arrival of new Baleno early next year and last but not the
least Chevrolet is planning diesel Aveo soon.
Tata Motors Limited
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000
crores in 2005-06. Its name comes first in the category of commercial vehicles and the
second largest in the passenger vehicles, mid size car and utility vehicle segments. The
company is the world's fifth largest medium and heavy commercial vehicle
manufacturer.
Over 3.5 million Tata vehicles is moving on Indian roads, since 1954. Its manufacturing
plant is located at Jamshedpur, Pune and Luck now
10. Tata Indica V2
Having attributes of three popular cars, Tata Indica is ruling the market. Making of Tata
Indica with the concept of main distinguishing features of three popular cars i.e., with
the overall structure of Maruti Zen, interior space like ambassador and cost nearly like
Maruti 800 was a challenging venture of Tata Motors.
Its fully foldable rear seat has made this car more accommodating for extra luggage.
For safe and secure driving and to give proper comfort, side-impact beams, rigid
monochrome frame and child safety locks are attached to this car.
Different Tata Indica models are:
• Tata Indica V2
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o DLX
o DLG
o DLS
o DLE
With its market catching looks and few striking features have set a trend for the choosy
buyers. Its power steering, central locking system, four power windows have not only
made this comfort driving car but also give assurance for the safety. To mention more
about convenience of driving, HVAC system provides good cooling effect even in a
sultry summer days. Door handles, body colored bumpers, ORVM and wheel arch flair
are few more advantages that the owner of this car can easily avail.
To assure safer driving along with the elegance and appeal of the car,
this model is equipped with body colored bumpers, the wheel arch flairs, internally
adjustable OVRM and central locking system. To avoid any inconvenience in operating
the window, front windows are power windows. To avoid the scorching heat in a
summer days, HVAC system of cooling can soothe anybody inside the car
11. Tata Indigo
Indigo with its market catching features like leather upholstery, beige interiors, LCD
screen etc has made its position in the automobile industry.
Indigo is available in Petrol and Diesel models.
• Petrol Variants
o Indigo GLE
o Indigo GLS
o Indigo GLX
It is equipped with various features like manual power steering, manual front and rear
windows, grey bumpers, half wheel covers, partial fabric lining on seat, molded roof
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lining, high mounted stop lamp etc. To mention few of the features present in this model
along with the features of rest of the two models, there are available power steering and
power windows, rear fog lamps, rub rails on door, full wheel covers, both sides outer
rear view mirrors, rear defogger, central locking, audio warning signal for driver seat belt
and many more.
12. Indigo Marina
Fully equipped with 32 bit micro processor and 1405 cc MPFI Petrol engine, this variant
delivers maximum power of 85 PS @ 5500 rpm and maximum torque of 11kgm @ 3000
rpm .
It has various features like AC system,2 spoke wheel, grey bumpers, chrome-plated grill
lip, black door handles, roof rails, partial wheel covers, digital clock, internal antenna,
partial fabric seats, anti-submarine type front seats, child safety locks on rear doors,
collapsible steering column, side impact beams etc
This model along with the features of Indigo Marina GLE comes with various other
features like HVAC system, aluminum gear shift knob, 4 spoke wheel, power steering,
body colored bumpers, rub rails on door, full wheel covers, stylish grip and cover for
hand brake lever etc.
Chevrolet
Its king like entry happened in India in 1928 with its National Series AB touring.
Reliability of this car was proved by its 171 cubic inches, 24.7hp four cylinder engines.
General Motors, parent company of Chevrolet, was the first in setting up assembly plant
in India. First office of Chevrolet was located at Mumbai and its assembly plant was in
Sewree.
13. Chevrolet Aveo
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With the assurance of safety and technologically advanced equipments, Chevrolet Aveo
provides complete statement of reliability and efficiency. Safety features like tailor
welded blanks, high- strength steel structure, B-pillar, height adjustable safety belt
anchors, rear child safety door locks, front safety belt pretension etc really confirm the
security of the passenger.
It has four variants:-
• Aveo 1.4 E*
• Aveo 1.4
• Aveo 1.4 LS
• Aveo 1.6 LT
It is well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome radiator grille, wide
185/60 R14 tyres, pullout type door handle, two tone beige interiors, power steering and
power window, central locking, rear defogger with timer, remote trunk lid opener, engine
service soon indicator etc. It is well equipped with 1.4L DOHC 94 PS, 5 Speed MT,
chrome radiator grille, wide 185/60 R14 tyres, pullout type door handle, two tone beige
interiors, power steering and power window, central locking, rear defogger with timer,
remote trunk lid opener, engine service soon indicator etc. Its main mentionable
features along with the other features which are associated with the rest of the models,
are 1.6L DOHC 102 PS, 5 speed MT; double DIN MP3 system with 6 speakers; rear
spoiler with CHMSL; chrome coated exterior handles and trunk lid garnish; 14" alloy
wheels; electrically adjustable OVRM; wood finish on IP and door trim; car alarm and
key less entry system.
14. Optra
With its 1.8 litre engine capacity runs up to 8.1 kmpl inside the city crowd roads and
11.2 kmpl on the highway. Its luxurious and comfortable interior include center console,
central armrest, flip down rear armrest, automatic climate control air conditioners,
enough legroom space, sunglass holder, mobile phone holding space in the rear door,
cup holders etc.
119
It has various variants:
• 1.6 Elite
• 1.6 LS Elite
• 1.6 LT Royale
• 1.8 LT
• 1.8 LT AT
It is equipped with various comfort and safety features like driver seat height adjuster,
plush feel beige fabric, silver finish on control panel and luxurious wood finish on IP and
door boards etc. Along with the features present in 1.6 Elite, this is available with tilt
steering, remote keyless entry with chirp and trunk opening, AWIS, driver seat lumbar
support, front fog lamps, body colored outside mirrors and door handles etc. There are
many extra features present in this model along with the features of 1.6 LT Royale like
automatic climate control system, all round wood finish including Centre Panel, tilt
adjustable front headrests, 15" alloy wheels with ABS and EBD as option at extra cost,
rear disc brakes, dual airbag, double DIN audio system with 5 CD changer.
FINDINGS AND ANALYSIS
• Cross Tabulation
Q1. Why you bought your present car? Please rank from the highest order of preference
1. Increase in disposable income

2. Better safety at roads
3. Family needs
4. Increase in family size
5. Suits your lifestyle and personality
120
40
35
39
30
25
Interpretation:
As per the analysis shows, increase in disposable income seems to be the most
20
important reason for buying a car. This trend is reflected in the growth of the Per
capita Disposable income and consequently the growth of the Indian automobile
industry especially in the B and C segment cars. Similarly, the growing family needs
like working partners, increasing family size, status, etc. add to the motives of buying
a car.
15
Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order
of your preference)
10
121
12
1. Affordable price
2. Technical superiority over competition
3. Comfort
4. Manufacturer’s image
5. Value for money
6. Safety
7. After sale services
Product Sp
10
Interpretation:
Indian market is still the hard nut to crack for most of the automobile manufacturers.
Though the Indian car industry is among the fastest growing car markets of the world
still the Indian psyche is too complex for the manufacturers to understand. The most
important reason for buying a car when it comes to B and C segment cars seems to be
‘value for money’. 32% of the respondents suggested that affordable prices are the
most important factor while purchasing a car. This is the reason for sticking to a
28
particular segment till the next substantial rise in the personal disposable income. This
reason is followed by ‘Value for money’ where the customers look for the best product,
122
best services and best repute all bundled in one with the best deal they can strike. This
explains the reason for the stagnant or sudden growth in sale of B and C segment cars
just before budget and near occasions like Diwali.
Product Satisfaction Level
Q3. Please rate your existing car in terms of understated Interior Design features on a
scale of 1 to 5 where
1 Highly Dissatisfied
2 Dissatisfied
3 Neutral
4 Satisfied
5 Highly Satisfied
Interior Type 1 2 3 4 5
Seats design
Leg Room
Dash Board
Interior Colour
Music System
Adjustable Front seat Headrest
123
I
100%
3 3 3
80% 1 1
1
4 4
4
Level of satisfaction
Interpretation:
60%
Interiors play a very important role in deciding the sale of a car. More plush,
comfortable and exotic the interiors are more are the chances of its being popular
3
among the customers. For this reason manufacturers spend billions of dollars every
3
year on R&D to continuously improve the interiors of their cars. Seats, leg room, dash
3
board, armrests etc are few of the options which count for the interiors. As the analysis
40%
show Getz scores substantially high w.r.t. its counterparts on the account of music
system installed. Similarly, Indica V2 races far ahead as far as leg room is concerned.
4 4
124
3
However, Wagon R fares badly on this front. Overall, almost all cars get a mixed
response in this segment as far as the interiors are concerned.
Customer S
100%
3 3 3
80% 3 3 3
Satisfaction level ( in %age)
Interpretation:
4 4 4
60%
As one can see most of the respondents are quite happy with the interiors of their
respective cars. However, one striking point observed here are that almost every car
3 4
fares neutral on the adjustable front seat headset. These cars have more leg room,
4
come with attached music systems (Verna fares the best among all cars on this front)
40%
combined with luxury features like TV screens, armrests at the back seat etc.
4 4 4
20% 125
Q4. Please rate your existing car in terms of understated Safety features on a scale of 1
to 5
Safety Parameters 1 2 3 4 5
Crossbar under Dashboard
Air Bags
Anti Lock Breaking System
Aerodynamic Shape
Intensity of front lights
Customer S
100%
action Level ( %age)
90% 3
4 5
80%
70%
3
60% 4 4
126
50%
Interpretation:
As can be noted Maruti Swift and Indica V2 fight neck to neck on almost every front,
with Indica marginally better in features like crossbars under the dashboard and Anti
Brake systems. Most of the cars in this segment fare relatively similar and very close to
each other on most of the fronts.
Customer Sat
100%
90% 3 3 4
80%
mer satisfaction level
Interpretation: 70% 3 3 3
60%
As one can see most of the respondents are quite happy with the safety parameters of
their respective cars. However, one striking point observed here are that almost every
car fares neutral on the safety parameters.
50% 4
4 4
127
40%
Q5. Please rate your existing car in terms of following parameters
Parameter 1 2 3 4 5
Fuel Consumption
Mileage ( Km/ltr)
Pick Up
Stability at higher speed
Top speed
Customer Sat
100%
faction Level ( %age)
90% 3 3
3
80%
70%
3
4
3
60% Interpretation:
50% 128
4
The customer choice of the car highly depends upon the performance and maintenance
costs of the car. This is the reason why this class of parameter was chosen for this
study. And the results show that Maruti’s Wagon R fares the best car in its segment as
most fuel efficient car of all. Similarly, Wagon R fares the best on the terms like mileage
but it lags behind Hyundai’s Santro on pick up front. So this segment shows a mixed
bag of response for the Fuel efficiency and mileage parameter. Indica V2 performs
consistently on all the parameters and Getz fares really well on pick up whereas it fares
badly on fuel consumption. Considered this condition for Getz it should be seen as a red
signal for the manufacturers so that Getz does not end up being like Fiat’s Palio famous
as a car for ‘drinking petrol.
mer Satisfaction Level ( in %age
Customer Satisfaction L
100%
90%
4 4 5
80%
Inter
70%
pretation:
terms)
60%
3
Segment C cars are known as hybrid car segment between the B4 segments fuel 4
efficiency with the luxury of the D class. Checking the same it seems that most of the
50%
cars in this segment are placed much closed to each other with very little difference
here and there. Most of the cars are fuel efficient w.r.t their weights and pick ups. Indigo
40%
3 3
3 129
30%
fares as the best car in terms of fuel efficiency . Baleno fares a little bit behind than its
counterparts as far as the stability at high speeds and mileage is concerned.
Dealer Service Satisfaction Level
Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where
1 Highly Satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
1 2 3 4 5
Distance ( Proximity)
Advertisements (Promotions)
Technical Facilities
Cost of Service
Availability of Spares
Information Provided
Service Time
Charges
Staff
Car Handling ( Delivery & service)
130
Assured Customer Transactions
Ambience of Service Center
Finance ( Credit) Schemes
Dealers are the middle men between a car manufacturer and its customers. Dealer thus
becomes the most important link in joining the company to its customers as he is the
person who will sell the product, will deliver it and will keep on providing the after sales
services to the customers as and when required. So, it becomes necessary
automatically to study dealer as a part of customers’ satisfaction journey with the
product called car!
Why Maruti fares so well ahead of its competitors till date and its the largest
car company in India with the largest market share in A and B segment is because
during the protected regime it build a dealers network so strong that its yet very difficult
for most of the competitors to set up a network as large as Maruti. So wherever you go
its not difficult to find a Maruti service station and a Maruti dealer. This is how Maruti
has maintained relationships with its customers and has been able to convert most of
them into a repeat customer. So, dealer network is something of such importance that
while studying the customer’s satisfaction profile its almost impossible to ignore it.
131
Custom er Sa
100%
stomer Satisfaction Level ( in %age terms)
90% 2
4 4 4 4
80%
1
70%
3 2
2 4
60%
3
Interpretation:
50%
3 4
4
40%
While buying a car, dealers ‘choice play a very important role in deciding the company
4
and model’s choice. So dealers act as influencers on the complete buying behavior of
the prospective customers. Among all the listed factors Maruti fares the best among all
30%
its counter parts in terms of dealer density which is quite obvious. Also, the cost of
service provided by Maruti dealers is the lowest followed by Tata Motors. Similarly, for B
20%
and C segment cars Maruti emerges out as the clear winner among the four car
5 4
5
companies studied all thanks to the vast, extensive and well managed dealer system. 5
4
10%
132
0%
Q2. How do you rate the brand image of your car?
1 2 3 4 5
Very Low Very High
5
tomer Perception ( Avg)
4 Interpretation:
As per the analysis, Santro is the car whose brand image is most preferred in the
market. This is because of the reason, that it’s from the house of Hyundai a South
3
Korean company known for its overall image. On the contrary Maruti Estilo and Aveo
share the same platform on the brand image. This can be attributed to the fact that both
these cars are relatively new on the block and market takes time to imbibe and give the
133
2 4 4
brand an image. This is established by the fact that Maruti’s Wagon R and Swift are
exactly the same as far as the image is concerned.
Custom
5
Customer Perception ( Avg)
4 Interpretation:
As the analysis reveals GM’s Optra fares as the Best Car as far as customers’
perception is concerned about the brand image of the car in the C segment. This is
3
because of the fact that GM itself commands an amazing brand image among its
customers. Accent and Verna both Hyundai cars share the same position.
2 4 4
134
3
Q3. Will you recommend your car to your friends?
• Yes
• No
Cus
80
73
70
60
50 Interpretation:
Frequency
It seems logical that satisfied customers will someday become loyal customers, in other
words there is a positive correlation between customer satisfaction scores and customer
40
buying behavior. If a customer rates the car very high in satisfying his or her needs, the
car manufacturer should expect more referrals and this is reflected in the analysis that
73% customers say that they will refer their car to their friends even if they move to
other segment or other brand.
30
135
Q4. Will you buy your new car in the
• Same segment , same manufacturer

• Same segment, different manufacturer
• Upper segment, same manufacturer
• Upper segment, different manufacturer
40
35
30
25 Interpretation:
Values
The analysis shows that most people when moving to upper segment will prefer a
20 6
different manufacturer. And the next striking finding is that the customers will prefer both
same and different manufacturers in the B segment cars and there is not much
difference in the C segment also. This behavior is complex to understand as this are the
15 7
customers who have given whopping response for recommending their car to their
friends. It’s the reason why brand perception is so difficult to understand.
136
10
17
Demographics
age group
<21
21-35
36-55
>55
17
20
21
41
137
I surveyed around 100 people who belonged to various age groups. The survey of 4
age groups was done. The four age groups were:
 Less than 21 years

 21 -35 years
 36-54 years
 More than 55 years
MONTHLY FAMILY INCOME

monthly family
income
<50,000
50,001-1,00,000
1,00,001-2,00,000
>2,00,001
19
33
19
28
I surveyed around 200 people who belonged to various monthly family income groups.
The survey of 4 income groups was done. The four income groups were:
 Less than 50000

 50000 - 1,00,000
138
 1,00,001 – 2,00,000
 More than 2,00,001
Interpretation:
Above graphs exhibits the income bracket of the sample size, as evident the majority of
the sample is in the income bracket of < 50,000 a month income. Though none of the
bracket is highly skewed, this enables the study to be wide and not dependent on a set
income class, which was a fortunately desirable result of simple random sampling.
Cross Tabulation
1. Motive to buy the car*segment car B and C
Bar Chart
20 s egm e nt C ar B
Estilo
W a gon R
S w ift
15 S a ntro
G etz
In d ic a V 2
A ve o
10 Este e m
C
n
u
o
t
Ba le n o
A cc ent
V e rn a
5
In d ig o M a rine
In d ig o
O p tra
0
A
Af
T
va
C
S
m
e
a
ffo
om
te
ch
lu
fe
nu
rd
r
e
ty
n
fo
fa
sa
ic
ab
fo
r
ct
al
le
r
ur
le
s
e
u
pr
on
r's
se
pe
ic
rv
ey
ri
im
es
or
i
ag
ce
ity
e
o
ve
r
co
m
pe
t it
respondant's objective buying a car brand

io
n
139
Interpretation:
According to the result, I found that choice of car depends upon these following factors:
So the choice of car is not driven only by intensive factors such as brand perception but
is hugely influenced by extensive factors such as price, service, and models available,
financing options etc. also the choice of the car is largely influenced by the manufacture
image. This is why Maruti is perceived as a value for money car and Getz emerges out
as a winner in the B segment for this criteria. As Getz is from the house of Hyundai
known for its technology and great design is far better perceived as a preferred car than
other cars. But a word of caution here, this perception may or may not result in a
converted sale.
2. Recommend the car to your friend*ranking of Brand and company
140
Bar Chart
respondants' ranking of
40
brand and company
image
Very Low
Low
Neutral
30
High
Very High
20
C
n
u
o
t
10
0
yes no
Would you recommend your car to your friends
Interpretation:
The graph shows that people who rank their car high or very high on the brand image
are the people who recommend their car to their friend. This is something the car
companies should look for as these people may not be the brand loyal but are definitely
the people who help a company to reinforce the brand image propagated by the
company.
3. Ranking of Brand and Image*Segment B and C car
141
Bar Chart
10 segment Car B and

C
Estilo
Wagon R
8 Swift
Santro
Getz
Indica V2
6 Aveo
Esteem
Baleno
C
n
u
o
t
Accent
4 Verna
Indigo Marine
Indigo
Optra
2
0
Very Low Low Neutral High Very High
respondants' ranking of brand and company
image
Interpretation:
This graph shows that how brand image is useful in making the choice of a car
especially in the B and C segment. So, Santro is the car whose brand image is on the
top and it’s the most preferred car.
142
 CONCLUSION
SCOPE OF FURTHER STUDIES
Conclusion
To conclude, the results show that the companies are playing on the peripheral cues to
maintain their Total Relationship Management and connect to the customers both
present and potential. The companies are operating in a highly aggressive and
competitive global market place and this climate has led to the emphasis on quality in all
aspects. TQM focuses on integration and coordination as well as the continuous
improvement of all activities and processes. Total Relationship Management (TRM) is a
very recent marketing strategy and philosophy. It focuses on and is concerned with all
integrated internal and external activities within and between the organizations. These
two terms are integrated by the manufacturers by building good quality products and
building good relationship with dealers and enhancing service levels.
However, when studied from the point of view of a customer there seems to be no major
difference among the car brands in a segment as far as performance is concerned. The
brand perception is dependant mostly on the peripheral cues depending upon the
nature and quality of the service provided along with the pricing, maintenance,
availability of spare parts and related issues. So, a question arises here that is this the
end of road for the branding of cars? Has the commoditization of cars has started and
its time that manufacturers must read the writing on the wall? It seems so! It seems as
an undercurrent sentiment is flowing and the perception of the customers is changing
according to it. So this might be the reason that despite Verna faring so high on the
performance parameters still lags on the account of converted sales.
143
The study shows that brand perception is something which starts building up before a
car is purchased and goes on with its use and is reflected in the recommendations the
customer makes to his acquaintances for the same car. Also, its seen that the customer
might not be using the car still he holds the perceptions about it. Brand personality of a
car is enforced by the sellers in the mindsets of the customers and the customers react
to it by forming their perceptions about the car and this reflects in the overall brand
image of the car. So brand image and brand personality complement each other and
the brand perception aids the building of brand image.
Dealers, as per the study findings, play a very important role in building up the
brand perception of the cars. Since dealers are the connecting link between the
customers and the manufacturers thus becoming the most important link in joining the
company to its customers as he is the person who will sell the product, will deliver it and
will keep on providing the after sales services to the customers as and when required.
So, it becomes necessary automatically to study dealer as a part of customers’

satisfaction journey with the product called car! Their proximity to the customers, the
service provided by them and the relationship maintained by them with the customers
helps the car companies to establish and reinstate the brand personality communicated
by them to the customers.
Finally the major point that emerges out of this detailed study is a caution for the
car companies. It says that there is no doubt that Indian car market may be growing with
a double digit figure still the car companies have a long way to travel to convince their
customers about the brand personality of their cars and how it suits the prospective
buyers. Simply because it simply is not a guarantee that how so ever good the customer
might be holding the brand perception and how so ever good the brand image may be it
is not a guarantee that it will convert into sale. Cars just like clothes and accessories
suit the style and persona of a person and since all cars will become commodity
someday the key to sell and excel in the market will lie with a person who knows how to
144
use the perceptions of the customers to its use and sell the cars ‘coz ultimately only that
car survives which sells!
Scope of future study
As the report mentions there are clue in the market that the cars are on a path of
becoming commodities just like the fate awaits for any other consumer goods. So what
can be the role and scope of brands and their personality in the changes scenario to
establish the brand perception of any car in the mind set of a customer present or
potential can be one area of study?
On the close lines, another area of study can be the importance of advertisements and
promotion schemes on the brand image of any car brand? Are the brands which
advertise more have a positively high brand perception or it’s the sales promotion
schemes which create the ripples in the mindset of the customers.
ANNEXURE
• REFRENCES
• QUESTIONAIRE
145
References:
Sites Visited -
www.siamindia.com
www.autocarindia.com
www.overdrive.com
www.hyundai.co.in
www.ibef.org
Books consulted -
Building Strong Brands- David A Aaker
Questionnaire
For Customers:
Q1. Why you bought your present car? Please rank from the highest order of preference
146
1. Increase in disposable income
2. Better safety at roads
3. Family needs
4. Increase in family size
5. Suits your lifestyle and personality
Q2. You decided to buy a car brand because of (rate best 3 factors from 1 to 3 in order
of your preference)
1. Affordable price
2. Technical superiority over competition
3. Comfort
4. Manufacturer’s image
5. Value for money
6. Safety
7. After sale services
147
Product Satisfaction Level
Q3. Please rate your existing car in terms of understated Interior Design features on a
scale of 1 to 5 where
2 Dissatisfied
3 Neutral
4 Satisfied
5 Highly Satisfied
Interior Type 1 2 3 4 5
Seats design
Leg Room
Dash Board
Interior Colour
Music System
Adjustable Front seat Headrest
Q4. Please rate your existing car in terms of understated Safety features on a scale of 1
to 5
148
Safety Parameters 1 2 3 4 5
Crossbar under Dashboard
Air Bags
Anti Lock Breaking System
Aerodynamic Shape
Intensity of front lights
Q5. Please rate your existing car in terms of following parameters
Parameter 1 2 3 4 5
Fuel Consumption
Mileage ( Km/ltr)
Pick Up
Stability at higher speed
Top speed
Dealer Service Satisfaction Level
Q1. Please rate your Dealer on the understated parameters on the scale of 1 to 5 where
149
1 Highly Satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
1 2 3 4 5
Distance ( Proximity)
Advertisements (Promotions)
Technical Facilities
Cost of Service
Availability of Spares
Information Provided
Service Time
Charges
Staff
Car Handling ( Delivery & service)
Assured Customer Transactions
Ambience of Service Center
Finance ( Credit) Schemes
Q2. How do you rate the brand image of your car?
150
1 2 3 4 5
Very Low Very High
Q3. Will you recommend your car to your friends?
• Yes
• No
Q4. If yes, will you buy your new car in the
• Same segment , same manufacturer

• Same segment, different manufacturer
• Upper segment, same manufacturer
• Upper segment, different manufacturer
Age group:
 <21 21-35
 36-55 >55
What is your monthly Family income?
Less than 50000
151
Rs 50,000 –Rs 1, 00,000
Rs 1, 00,001– Rs 2, 00,000
More than Rs 2, 00,001
Number of car’s owned:
Present Car (s) owned:
NAME: SEX:
Phone NO:
152

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A

Post Graduate Diploma in Management

Prof. SUPRIYA SEHGAL SONALI GOYAL

AMITY GLOBAL BUSINESS SCHOOL

Summer Training is business organization in fuse among student a sense of

As drops of water gradually fill up the pitcher so do knowledge, virtue and

I take this opportunity to express my profound sense of gratitude to my esteemed guide

This report attempts to answer some of the questions regarding brand

• Dealers related parameters

Mahindra Finance was incorporated on January 1, 1991 as Maxi

Indians are second to none in the world. The Founders of our

• Mahindra Spares Business

Farm Equipment Sector

• Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)

Infrastructure Development Sector

• Mahindra Holidays & Resorts

Information Technology Sector

*Schonoweiss & Co GMBH

• Mahindra Steel Service Center

• Mahindra Middle East Electrical Steel Service Centre (MMESSC)

• Mahindra Logistics Ltd.

BOARD OF DIRECTORS OF MAHINDRA GROUP

The Company's current Board of Directors is as follows:

1. Mr. Keshub Mahindra Chairman

2. Mr. Anand G. Mahindra Vice Chairman and Managing

3. Deepak Shantilal Parekh Director

4. Nadir Burjorji Godrej Director

6. Bharat Narotam Doshi Executive Director & Group Chief

7. Arun Kumar Nanda Executive Director & Secretary

8. Narayanan Vaghul Director

9. Dr. Ashok Sekhar Ganguly Director

10. R. K. Kulkarni Director

11. Anupam Pradip Puri Director

COMPLETE NAME OF THE COMPANY–

Mahindra & Mahindra Financial Services Limited (Mahindra Finance)

3.1 BUSINESS OBJECTIVE

Mahindra Finance's main goals are to

(a) Develop close relationships with individual customer,

(c) Transform ideas into viable and creative solutions,

(d) Provide consistently high returns to shareholders, and

(e) To grow through diversification by leveraging off the existing client

“Dhan ki suracha aur tarkki dono pakki”

Mahindra Finance is one of India’s leading non-banking finance companies focused on

3.2 BUSINESS FOCUS

3.3 VISION AND MISSION

• Mahindra finance will specialize in financing products based on

• Mahindra finance provides product and services tailored to the need of

Mahindra Finance was incorporated on January 1, 1991 as Maxi Motors Financial

Key events in our business history

Received Tier II debt from International Finance Corporation

Made our first securitization transaction of Rs. 434.8 million

Received a long-term credit rating of AA+/Stable

Listing of non convertible debentures on BSE on the wholesale debt market

Securitisation of tractor assets of Rs. 256.6 million

Made MIBL our wholly owned subsidiary

Tied up with Maruti

Launched our marketing campaign

Reached a new benchmark with 400 branches

Registered office Gateway Building, Apollo Bunder, Mumbai 400 001.

Key officials Name - Bharat Doshi

Name - Uday Y. Phadke

Name - Ramesh Iyer

Name - Arnavaz M.Pardiwala