Consumer Buying Behviour On Hero Honda Bike

A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE. A Report submitted in partial fulfillment of the requirements for the award of the degree of

BACHELO OF BUSINESS ADMINISTRATION TO SOUTH GUJARAT UNIVERSITY, SURAT

Submitted By: TARANG P PATIL T.Y.B.B.A. (SEM-VI) ROLL NO.-23

Under the guidance of MR.HORMAZ.D.PATEL

Submitted To:

THE CO-ORDINATOR THE SURAT PEOPLE’S CO-OP. BANK COLLEGE OF BUSINESS ADMINISTRATION UDHNA (SUART)

March 2007

1

THE SURAT PEOPLE’S CO-OP. BANK COLLEGE OF BUSINESS ADMINISTRATION

CERTIFICATE OF THE FACULTY GUIDE This is to certify that the project entitled “A STUDY ON CONSUMER

BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE. Submitted in partial fulfillment for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION TO SOUTH GUJURAT UNIVERSITY, SURAT is a record of bonafide research work carried out by TARANG P PATIL under my supervision and guidance.

Signature

Signature

Project Guide (Prof .H.D.Patel)

Co-Ordinator (MRS. DAISY S.T)

DECLARATION 2

I , TARANG P PATIL , here by declare that the project report entitled “A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE. under the guidance of Prof H. D. PATEL submitted in partial fulfillment of the requirement for the award of the degree of Bachelor of business administration to south Gujarat university , Surat is my original Work - research study - carried out during 1st January, 2008 to 1st March ,2008 and not submitted for any other degree/ diploma/ fellowship or other similar titles or prizes to any other institute or university by any other person.

Place: udhna Date:

signature TARANG PATIL .P. ROLL NO. 23

ACKNOWLEDGEMENT 3

This is the pleasure movement for me to explicate my energized intelligence. Thanks to Co-Coordinator Prof S.Z. daisy and to my guide prof. H.D.Patel from the Surat people’s co-op. bank college of business administration udhna, Surat. For accommodating advice during the research and help provided by them in preparation of this report. This report is guided by their co-operation and practicable suggestion. This study work could be finished with in the period. I got chance to recognize my aratitute to all staff to B.B.A. department for making available all facilities to complete the research work. As well as to all others who extended the precious co-operation by providing all documents and details required for this work.

Place: - Surat

TARANG P PATIL

Date: -

T.Y.B.B.A

Roll No.:-23

INDEX 4

NUMBER

1

2

SUBJECT •

•

INTRODUCTUION •

INTRODUCTUION OF INDUSTRY

•

HISTORY OF COMPANY

THEORETICAL BACKGROUND •

3

•

4

•

5 6 7 8 9 10

21-23

PROBLEM DEFINATION SCOPE OF STUDY OBJECTIVES OF STUDY LIMLTATIONS OF STUDY

RESEACH METHODOLOGY • • • • • •

7 8-9 10-14 15-20

CONSUMER BUYING BEHAVIOUR

PROBLEM DEFINATION • • • •

PAGE NO.

24-31

INTRODUCTION RESEARCH DESIGN SOURCES OF DATA RESEARCH INSTRUMENT SAMPLING PLAN DATA COLLECTION METHOD

•

DATA ANALYSIS AND INTERPRETATION

•

TESTING OF HYPOTHESIS

•

FINDINGS

•

SUGGESTIONS

•

SWOT ANALYSIS OF HERO HONDA

•

REFERENCE MATERIAL •

BIBLIOGRAPHY

•

APPENDIX

5

30-48 49-51 52-53 54-55 56-58 59 60-61 62-66

LIST OF TABLE AND GRAPH No.

Name of Tables And Graphs

Page No

1 2 3 4 5 6 7 8 9

Age wise Classification Occupation wise Classification Income wise Classification Sources of finance Analysis of Preferring Auto Mobile Sources of Purchasing Bike Age V/S usage of companies Bike Decision maker for purchasing Bike Feature Consideration when purchasing Bike Attributes of Showroom Schemes that Attract most Features of Purchasing Bike

33 34 35 36 37 38 39 40 42

10 11 12

6

44 46 48

CHAPTER : 1 INTRODUCTION • INTRODUCTION OF INDUSRY • HISTORY OF COMPANY

7

INTRODUCTION OF INDUSTERY Throughout the centuries man has striven to expand his capabilities through the use of machine. His ever inventive mind has constantly devised ways to use tool to increase his abilities to explore the world around him. To go faster, deeper, higher and further than before. Coupled with his need to find new thrills, new adventures and new modes of transportation, the invention refinement of the motorcycle seems an inevitable out come. It would seem that Michelangelo conceived of the bicycle as early 14th century. And his drawing shows a remarkable resemblance to he modern day bike. It had wheels of similar size and even pedals and chain. Albeit without any apparent means of steering. Through never built, it was a remarkably clever design, and early bicycle makers would have done well to study his concepts, there have, in fact been 4 machines built based on his drawing, attesting to the viability of his design. It wasn’t until 1869 that the first serious attempts were made to produce motor driven bicycles. These very first were powered by steam, and driven by leather belts or as in the case of the roper steam velocipede of 1869 by a system of levers attached to a crank on the driven wheel. In 1885 the Daimler, Europe this is consider by many as the first true motorcycle or motor bicycle, as it was the first to employ an internal combustion engine and was designed from the ground up to be motor powered. Designed by gottlibe Daimler it was

8

powered by an Otto cycle engine producing about ½ horse powers. Note this design again employed wooden wheels and Daimler dropped the twist grip controls from his 1877 design in favor of leavers on the frame. In 1894 Hildebrand and Wolfmuller, France Worlds first production motorcycle. It came with a 1428 cc water cooled fourstroke motor producing 2.5 bhp. And speed of 25 mph. In 1898 orient-Aster, USA the American made production motorcycle was this entry built by the Metz Company, in Waltham, mass, it used an aster engine that was a French copy of the Metz Company, in Waltham, mass.

9

History OF COMPANY

Type

: Public company

Founded

: January 19, 1984

Headquarters : Haryana, Indian Key People

: Brijmohan lall munjal

(Chairman and managing Director) Industry

: Automotive

10

Produce

: Motorcycle, Scooters

Hero Honda Motorcycles limited is an Indian manufacturer of motorcycles and scooters. Hero Honda is a joint Venture that began in 1984 between the Hero Group of India and Honda From Japan. It has been the world’s biggest manufacturer of 2-wheeled motorized vehicles since 2001. When it produced 1.3 million motorbikes in a single year. Hero Hondas splendor is the largest selling motorcycle its 2 plants are in Dharuhera and Gurgaon, both in Haryana India. It specializes in dual use motorcycles that are low powered but very fuel efficient. 11

India has the largest number of two wheelers in the world with 41.6 million vehicles. India has a mix of 30 percent automobiles and 70 percent two wheeler in the country. India was the second largest two wheeler manufacturer in the world starting in the1950s with the birth of Automobile products of India (API) that manufactured scooters. API manufactured the lambrettas but, another company, Baja Auto Ltd. Surpassed API and remained through the turn of the century from its association with piaggio of Italy (manufactured of vespa) The license raj that existed between the 1940s and 1980s in India. Did not allow foreign companies to enter the market and imports were tightly controlled. Customers in India were forced to wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj commented that he did not need a marketing department, only a dispatch department. By the year 1990, Bajaj had a waiting list that was twenty-six times its annual output for scooters. In the mid-1980s, the Indian government regulation changed and permitted foreign companies to enter the Indian market through minority joint ventures. The two wheeler market changed with four indo-Japanese joint ventures: Hero Honda, TVS Suzuki, Bajaj Kawasaki and Kinetic Honda. The entry of these foreign companies changed the Indian market dynamics from the supply demand side. With a larger selection of two-wheelers on the Indian market, consumer started to gain influence over the products they bought and raised higher customer expectations. The industry produced more models, styling options, price, and different fuel efficiencies. The foreign companies new technologies helped make the products more reliable and with better quality. Indian companies had to change to keep up with their global.

12

During the 80s, Hero Honda became the first company in India to prove that it was possible to drive a vehicle without polluting the roads. The company introduced new generation motorcycles that set industry benchmarks for fuel thrift and low emission. A legendary 'Fill it - Shut it - Forget it' campaign captured the imagination of commuters across India, and Hero Honda sold millions of bikes purely on the commitment of increased mileage. Hero Honda has consistently grown at double digits since inception; and today, every second motorcycle sold in the country is a Hero Honda. Every 30 seconds, someone in India buys Hero Honda's top -selling motorcycle - Splendor. This festive season, the company sold half a million two wheelers in a single month-a feat unparalleled in global automotive history. Hero Honda values its relationship with customers. Its unique CRM initiative - Hero Honda Passport Program, one of the largest programs of this kind in the world, has over 3 million members on its roster. The program has not only helped Hero Honda understand its customers and deliver value at different price points, but has also created a loyal community of brand ambassadors.

Performance vis-à-vis Industry The Indian two wheeler industries has seen a paradigm shift from being a regime of regulation and tight control in the 1980s to a more liberalized and a competitive present day era. After missing out on the initial boom in two wheeler segment during the period of 1993-1996, Hero Honda has emerged as a world leader. The gap between motorcycles sold by Hero Honda and its closest rival is approximately 1 m units (23% of industry size). One of the reasons for the tremendous performance of Hero Honda is the significant increase of share of motorcycles in the two-wheeler segment, from 42% in FY99 to 77% in FY04. No doubt, that the shift in preference of Indian populace from scooters and mopeds towards 13

motorcycles has facilitated the growth of Hero Honda. However its performance vis-à-vis industry indicates that the performance of Hero Honda was better than the industry peers, barring two years. In the seven-year period ending FY04, it has achieved a CAGR of 30% in two-wheeler volumes against 11% of the industry.

Excellent Collaborator Relationship: Hero Honda is now the leading two-wheeler Company in India in terms of net sales (sales less excise duty value, which was Rs 3171 crores). It is both the leading two wheeler manufacturer and sales operation among Honda's worldwide operations. The Company has maintained excellent relationship with all stakeholders including its collaborators. Hero Honda has emerged as the most successful joint venture Company of Honda in the world, their relationship over 116 years old now.

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CHAPTER:2 THEORITICAL BACKGROUND • CONSUMER BUYING BEHAVIOUR

15

CONSUMER BUYING BEHVIOUR The main aim of marketing is meet and satisfy target customers need and wants buyer behavior refers to the peoples or organization conduct activities and together with the impact of various influence on them towards making decision on purchase of product and service in a market. The field of consumer behavior studies how individuals, groups and organization select, buy, use and dispse of goods, service, ideas, or experience to satisfy their needs and desires understanding consumer behavior and knowing customer are never simple. The wealth of products and service produced in a country make our economy strong. The behavior of human being during the purchase is being termed as “Buyer Behavior”. Customer says one thing but do another. They may not be in touch with their deeper motivations. They are responding to influences that change their mind at the last minute. A buyer makes take a decision whether save or spend the money.

Definition of Buyer Behavior:Buyer behavior is “all psychological, Social and physical behaviors of potential customers as they become aware of evaluate, purchase, consume and tell others about product & service.

16

Consumer Buying Decision Process There are following five stages in consumer buying decision process.

1. Problem identification:The buying process starts when the buyer recognizes a problem or need. The need can be triggered by internal or external stimuli. Marketers need to identify the circumstances that trigger a particular need. By gathering information from a number of consumers, Marketers can identify the most frequent stimuli that spark an interest in a product category. They can then develop marketing strategies that trigger consumer interest.

2. Information Search:The consumer tries to collect information regarding various products/service. Through gathering information, the consumer learns about completing brands and their features. Information may be collected form magazines, catalogues, retailers, friends, family members, business association, commercial, chamber of commerce, telephone directory, tradefair etc. Marketers should find out the source of information and their relative degree of importance to the consumes.

Personal Sources: Family, friends, neighbor, as quittances. Commercial Source: Advertising, sales persons, dealers, packaging, displays. Public sources: mass media, consumer, rating organizations. Experimental sources: Handling. Examine, using the product.

17

3.

Evaluation of alternative:-

There is no single process used by all consumers by one consumer in all buying situations. There is several First, the consumer processes, some basic concepts are: First, the consumer is trying to satisfy need. Second, the consumer is looking for certain benefits from the product solutions. The marketer must know which criteria the consumer will use in the purchase decision.

4

. Choice of purchasing decision:-

From among the purchase of alternatives the consumer makes the solution. It may be to buy or not to buy. If the decision is to buy. The other additional decisions are: Which types of bike he must buy? From whom to buy a bike? How the payment to be made? And so on. The marketer up to this stage has tried every means to influence the purchase behavior, but the choice is properly consumers. In the evaluation stage the consumer forms preferences among the brands in the choice set. The consumer may also form an intention to but the most preferred brand.

18

5. Post Purchase Behavior:After purchase the product, the consumer will experience the same level of product. The Marketer’s job not end when the product is buying must monitor post-purchase satisfaction, post-purchase action, post-purchase use and disposal

 Post Purchase Satisfaction:The buyer, S satisfaction is a function Of closeness between the buyer, S expectation and the products Perceiver performance. The larger the gap between expectation and performance, the g greater the consumer dissatisfaction.

 Post purchase Action:The Consumer, S satisfaction or dissatisfaction with the product influence subsequent behavior. If the consumer satisfied, he or she will exhibit a higher probability of purchasing the product again. Dissatisfaction consumer may abandon and return the product.

 Post-Purchase Use or Disposal:The marketer should also monitor new buyers use and dispose of the product. If the consumer store the product in a close, the product is probably not very satisfying. If the consumer throws the product away, the marketer needs to know how they dispose of it; especially it can be hurt the environment.

19

Characteristic of Buyer Behaviors The chief characteristics of the buyers behaviors are as follow:-

(1) It consists of mental and physical activities which consumers undertake to get goods and services and obtain satisfaction from them. (2) It includes both observable activities such as walking through the market to examine merchandise and making a purchase and mental activities-such as forming attitudes, perceiving advertising material, and learning to prefer particular brands. (3) Consumer behaviors are very complex and dynamic to constantly changing. And therefore, management need to adjust with the change otherwise market may be lot. (4) The individuals specific behaviors in the market place is affected by internal factor, such as need , motives, perception, and attitudes, as well as by external of enviourmenatal influences such as the family social groups, culture, economics and business influences.

20

CHAPTER:3 PROBLEM DEFINATION • PROBLEM DEFINATION • OBJECTIVE OF STUDY • LIMITATIONS OF STUDY

21

PROBLEM DEFINATION To know the best consumer buying behavior and demand into the minds of consumer of Surat city because always consumer say something and does something. There are many companies manufacturing motorcycles into the market, at the same time as there are many companies manufacturing motorcycles, idea about thinking of customer on whether, what, how, and for whom to purchase the motorcycle. Therefore, research is required to measure present consumer buying behavior at the purchase of Hero Honda bike. so the researcher problem is to identify what are the criteria that prospective customer takes into consideration before buying the motorcycles.

SCOPE OF STUDY  The main scope of the study is limited to Surat city.  It also analysis the benefits accruing to the company as a result of those service.  This study has been made to find the level of satisfaction the customer has regarding the service provider by bike place.

22

OBJECTIVES OF STUDY  To know market position of Hero Honda bike in the market.  To know consumer behavior for purchase of two wheeler bike.

Limitations of study 

When the buyers are busy we can’t get accurate data from them.

 According to the time limit of our project we can cover only the some area.  During survey some respondents may not give answer in a proper manner.

23

CHAPTER:-4 RESEARCH METHDOLOGY • INTRODUCTION • RSEARCH DESIGN • SOURCES OF DATA • SAMPLING PLAN • DATA COLLECTION METHOD

RESERCH METHODOLOGY 24

(A)Introduction Marketing research is the function which links the consumer, customer and public to the marketers through information used to identify and define marketing, opportunities and problems, generates refine marketing action; monitor marketing performance; and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues; designs the method for collection information manages and implements the data collection process; analysis the results and communication the findings and their implication.

Research definition: “Research is careful inquiry or examination to discover new information and relationship and to expand and to verify exiting knowledge,” Research always starts with questions or a problem. Its purpose is to find answer to questions through the application of the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studies.

(B) Research design

25

“Research design is the plan, structure and strategy of investigation conceived so as to obtain answer to research question and to control variance.” - BY KERLINGER From definition it is evident that research design is ore or less a blueprint of research. At the outset may be noted that there are several ways of studying and tackling a problem. There is no signal perfect design. The research design can be classified in to true broad categories: (A) Exploratory (B) Descriptive (C) Casual Exploratory research is focus on the discovery of ideas. Exploratory research is carried out to define problems and developed hypothesis to test later. An exploratory study is generally based on the secondary data that are reading available. It does not have to change his focus of direction, depending on the availability of new ideas and relationship among variables. Descriptive studies are undertaken in many circumstances. Descriptive studies can be complex, determining a high degree of scientific skill on the part of the researcher. Casual research helps in determined cause and effect relationship. Between two or more variables.

The present study seeks to find out the consumers attitude towards buying of bike. The study also aims at findings out the 26

drawbacks of the marketing set up of Hero Honda PVT. LTD. So this makes the study a descriptive one. (D)

Sources of Data

The sources of data collection methods are as follows. a)

Primary data:-

The primary data is that which details we collect first time from the market and also used first time in the research. We also say that the information is first time in the research decision. To collect the primary data questionnaire is prepared structure nondisguise questionnaire is prepared. b)

Secondary data:-

Secondary data are those data which are already collected by someone for some purpose and are available for the present study; secondary data are already collected by the company’s records and other library’s books. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire.

(E) Data Collection Method 27

Researcher instruments is the tool by which the researcher can do research on specific problems or objective. The most popular researcher instrument for collection data is “Questionnaire” for a particular investigation. It is simple for a moiled set of questions presented to respondents for their answers. Due to this flexibility, it is most common instrument used to collect the primary data. During the pre- testing of questionnaire, I seen the reaction of respondents and suggestions required to make change in research instrument. The questionnaire contains three types of questions. 

Open-ended question:It is helpful in knowing what is uppermost in the mind of the respondents. It gives complete freedom to the respondent.



Dichotomous questions :It has only two answers in form ‘yes’ or ‘n’, ‘true’ or ‘false’, ‘use’ or ‘do not use’. So the respondent is offered two or more choice.



Multiple-choice question:In this, the respondent is offered two or more choice.

(F) Sampling plan

28

Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose. (A) sample Site:The survey was conducted in SURAT CITY. (B)Sampling Unit:It means “Who is to be surveyed”. Here target population is decided and it is who are interested to purchase “Bike” and sampling frame is developed so that every one in the target population has known chance of being sampled. So the survey is conducted particularly in Surat City. (C)Sample size:For the purpose of proper survey, there is need of perfect research instruments to find out sample size for more accurate result about buying behavior of bike. The sample size is 100 respondents.

Statically Formula for Sample Size is:n=p*q (z/e) 2

29

Were, n=Sample Size p=0.80(probability of satisfied customer) q=0.20(I-p) z=1.96(The z (95%) score associated with the degree of Confidence) e=0.05 (tolerable error) n= (0.84)*(016)*(1.96/0.05)2 = (0.1344)*(1536.64) =206.52 Sample Size n=206.52 Here, from calculation n=206.52 is found but for the simplicity of the study n=206.52have taken.

(D)Sampling Method:30

A Stratified random sample is one where the population is divided in to mutually exhaustive strata or sub-group and then a simple random is selected within each of strata on age groups, occupation etc. It may be noted that stratification does not means absence of randomness. I use a simple random sampling method.

31

1. AGE WISE CLASSIFICTION Age (in year) 18-20

No. of respondents 30 32

Percentage (%) 30

21-25 26-30 31-35 36-40 41& above Total

37 15 06 07 05 100

37 15 06 07 05 100

Age wise Classification

7, 7%

5, 5%

6, 6%

30, 30%

18-20 21-25 26-30 31-35

15, 15%

36-40 41& above 37, 37%

(Sources: Questionnaire-personal Detail) Comment:Above Graph shows are 30% of respondent in age group of 18-20, 37%of respondent in age group of 21-25, 15% of respondent in age group of 26-30, 7% and 5% respondent are come in 36-40 and 41&above.

2. OCCUPATION WISE CLASSIFICATION

33

Occupation Servicemen Student Business Profession Others Total

No. of respondents 47 30 12 08 03 100

Percentage (%) 47 30 12 08 03 100

100 80 60 No. of respondents

40

Percentage (%)

20

er s O th

si on

s

Pr of es

ne s

us i B

St ud

rv ic e Se

en t

0 m en

No. of Respondents

Occupation Wise Classification

Occupation

(Sources: Questionnaire-personal detail) Comment:Above Chart Shows that 47 respondent are Servicemen out of 100 and 30 are the students. 12 respondents are businessman.

3. INCOME WISE CLASSIFICATION 34

Income Level <= 5000 5000-10,000 10,000-15,000 15,000-20,000 20,000 Above Total

No. of respondents 54 25 11 07 03 100

Percentage (%) 54 25 11 07 03 100

Income Wise Classification

7, 7%

3, 3%

11, 11% 5000 5000-10,000 10,000-15,000 54, 54%

15,000-20,000 20,000 Above

25, 25%

(Sources: - Questionnaire – Personal Detail) Comment:Above graph shows that 54% of respondents are income in <=5000 income level, Second 25% of respondents are of 500010,000 income level. 11% of respondents are of 10,000-15,000, 7% of respondents are of 15,000-20,000 and remain 3% of respondents above 20,000 of income level.

4. SOURCES OF FINANCE 35

Sources of Finance By cash By Loan Total

No. of respondents 45 55 100

55 60

45

Percentage (%) 45 55 100

55

45

50 No. of respondents Percentage (% )

40 30 20 10 0 By cash

By Loan

(Sources: - Questionnaire—Que.8) Comment:Above Graph shows that 55 people purchase Hero Honda Bike For by Loan and 45 people purchase Hero Honda Bike from Cash.

5. ANALYSIS OF PREFERING AUTO MOBILE

36

Auto Mobiles Shivani Dhru Siddhi Other Total

No. of respondents 20 17 11 52 100

Percentage (%) 20 17 11 52 100

No. of respondents

Shivani 20% Other 52%

Dhru 17% Siddhi 11%

(Sources: - Questionnaire – Que.7) Comment:Above Chart shows that out of 100, 52 % respondents prefer other Automobile to purchase bike. 20 % respondents prefer shivani Automobile to purchase bike.

6. FROM WHICH SOURCE YOU PURCHSE BIKE?

37

Sources News Paper T.V.Advertisement Friends Others Total

No. of respondents 12 14 26 48 100

Percentage (%) 12 14 26 48 100

No. of respondents

News Paper, 12 T.V.Advertiseme nt, 14 Others, 48

Friends, 26

(Sources: - Questionnaire – Que.3) Comment:Above graph shows that 48 % respondents are come to know from the ‘other’. Then 26 % respondents are come to know from the ‘friends’. 14 % & 12 % respondents are come to know from the T.V.Advertisement & news paper.

7 AGE V/S USAGE OF COMPANIES MOTORCYCLE Age (in year) 18-20 21-25

Hero Honda 15 23

Bajaj

TVS

Yamaha

Honda

Total

05 06

03 03

02 03

05 02

30 37

38

26-30 31-35 36-40 41& above Total

09 02 01 01 51

02 00 2 01 16

01 01 02 00 10

03 01 01 02 12

00 02 01 01 11

15 06 07 05 100

Age V/S Of Companies Motorcycles

No. Of Respondents

25

20 18-20 21-25

15

26-30 31-35

10

36-40 41& above

5

0 Hero Honda

Bajaj

TVS

Yamaha

Honda

(Sources: - Questionnaire – personal detail) Comment: Above Charts shows that 51 respondents are use Hero Honda Company’s Motorcycle. And 16 respondents are using Bajaj bikes. 4. Who is decision maker for purchasing bike in your family? Sources Father Self Mother Others Total

No. of respondents 46 42 10 02 100 39

Percentage (%) 46 42 10 02 100

Decision maker for purchasing bike 50

46

46 42

40

42

30 No. of respondents

20

Percentage (%)

10

10

10 2

0

2

Father

Self

Mother

Percentage (%) No. of respondents

Others

(Sources: - Questionnaire – personal detail & Que-4) Comment:Above Graph shows that 46 % respondents take decision by father for purchasing bike. And 42 % respondents are take decision by self for purchasing bike.

5. WHAT FEATURES YOU CONSIDERS WHEN YOU PURCHASE BIKE PLEASE GIVES THE RANK.

40

Weightage Attributes

6 Excellent

4 Good

30 18

5 Very Good 20 11

Price Less maintenance Style Durability Mileage Easy Driving Brand Reputation Color Pick up Total

2 Poor

18 17

3 Averag e 16 30

10 13

1 Very Poor 06 11

21 10 24 20 17

18 17 19 12 19

19 16 14 21 14

10 24 17 23 21

11 21 09 10 17

28 19 187

19 22 157

18 15 152

13 20 174

10 14 115

Attributes Price Less maintenance Style Durability Mileage Easy Driving Brand Reputation Color 41

Weightage 426 358 355 335 381 367 362 406

Total 100 100

Total score 426 358

21 12 17 14 12

100 100 100 100 100

355 335 381 367 362

12 10 115

100 100 900

406 382 3370

Pick up Total

382 3370

Feature of purchasing Bike

11%

Price

12%

Less maintenance 12%

Style

11%

Durability Mileage 11%

11%

Easy Driving Brand Reputation Color

10%

11%

Pick up

11%

(Sources: - Questionnaire – personal detail & Que-5) Comment:Above chart show that more no of respondents are give more weightage to the price.

6. RATE THE FOLLOWING ATTRIBUTES OF SHOW ROOM Attributes Available After Service Knowledge Of Sales man Service Infrastructure Total

Excellent Very Good 30 24 16 35 20 21

Good

Average

Poor

Total

18 24 23

16 15 20

12 10 16

100 100 100

25 12 103

27 20 112

19 17 87

11 22 71

100 100 500

18 29 127

42

Attribute of show room 100

no of respondents

90 80

12

10

16

15

18

24

20

70 60

16

23

50

11

22

19 17 27

Average 20

24

40

35

30 20

30

10

21

29

20

25

After Service

Knowledge Of Sales man

Service

0 Available

12 Infrastructure

(Sources: - Questionnaire – personal detail & Que-6) Comment:43

Good Very Good

18

16

Poor

Excellent

Above chart shows that 30 respondents out of 100 are available who give Weight age on the excellent and second 35 respondents out of 100 are after service who gives Weight age on Attributes

Excellent Very Good 43 21

Good

Average

Poor

Total

Festival 12 14 10 100 Offer Exchange 15 31 29 12 13 100 Offer Special Gift 20 19 30 20 11 100 Cash 11 21 19 34 15 100 Discount Anniversary 14 13 12 20 41 100 Offer Total 103 105 102 100 90 500 the Very Good, 23 respondents are Knowledge of salesman who give Weight age on the good, 27 respondents are service who give Weight age on the good, 29 respondents are Infrastructure who gives Weight age on the Very Good.

9. RATE THE FOLLOWING SCHEMES THAT ATTRACT YOU MOST.

44

Anniversary Offer

Cash Discount

Poor Average

Special Gift

Good Very Good Excellent

Exchange Offer

Festival Offer 0

20

40

60

80

100

(Sources: - Questionnaire – personal detail & Que-9)

45

Comment:Above graph shows that in festival offer 43 respondents out of 100 are give a excellent, then in exchange offer 31 respondents out of 100 are give a very good rank, in special gift 30 respondents are give a good rank, in cash discount 34 respondents are give a average rank

10. RATE THE FOLLOWING FEATURE YOU HAVE PURCHASE HERO HONDA BIKE Attributes

Excellent

Mileage Available Price After Service Pick up Style Color Average Total

31 14 16 20 21 18 20 27 167

Very Good 26 25 22 31 36 25 24 24 213

Good

Average

Poor

Total

15 32 42 25 17 15 26 20 192

18 16 11 14 15 26 10 15 125

10 13 09 10 11 16 20 14 103

100 100 100 100 100 100 100 100 800

46

Average

27

Color

20

Style

18

Pick up

21

After Service

20

24

20

24

15

26

25

14

10

15

20

26

36

17

16 15

Excellent Very Good

11

Good 31

Price

16

22

Available

14

25

25 42

0

16

26

20

11

32

31

Mileage

14

15

40

60

18

80

10

Average Poor

9 13 10

100

(Sources: - Questionnaire – personal detail & Que-10) Comment:Above graph show that respondents give more weightage to the price then after they give more weightage to the mileage before purchasing motorcycle.

47

CHAPTER: 6 •

TESTING OF HYPOTHESIS

48

TESTING OF HYPOTHESIS A hypothesis is a proposition, which the researcher wants to verify. It is tall test and my null hypotheses are, H0: P = 0.40 H1: P ≠ 0.40 With reference to favorable market of Hero Honda Bike. Now to verify this hypothesis I have taken significantlevel of 1 %. It means in the long run risk of making the wrong decision is I out of every 100. Since the sample size is more than 30 the use of Z test is most applicable. Now, P = Probability of Hero Honda is given best by consumer. Q = Probability of other company bike is given best by consumer. X = Hero Honda bike is purchased by consumer. N = Total no. of Respondents. P = x/n =51/100 =0.51 q =1-p i.e. 0.49 Z calculation

= p–q 49

_______ _______ √ PQ _______ 100 = 0.51- 0.40 __________ __________ √ 0.49*0.4 ________ 100 =

0.11 ________ ________ √ 0.00196

=

0.11 _______ 0.04427

= 2.48 = 2.48 < 2.56 So, How may accepted at 1 % level of significance. It may be concluded that 40 % of consumer go for other company bike and 60 % go for Hero Honda bike.

50

CHAPTER: 7 •FINDINGS

51

Findings The study shows that 51 respondents are using Hero Honda.  The current trend is that respondents give maximum no of point to price and mileage.  The study show that 48 respondents are come to know from “others” and 26 respondents are come to know from “friends” about Hero Honda bike.  The study shows that 55 respondents are purchase Hero Honda bike by Loan and 45 respondents are purchase Hero Honda bike by cash.  The study shows that 31 respondents are give point to mileage.  The study shows that more no. of respondents gives more weightage to price. The more no. of serviceman, Students, Businessmen, and others give more weightage to the price when Professionals give more weightage to the mileage.  The study shows that 46 respondents are father take a decision to purchase bike And 42 respondents are self take a decision to purchase bike.  The study shows that 30 respondents are give rank to available in show rooms and 35 respondents are give rank to after service.  The study shows that 43 respondents are giving excellent to festival offer and 41 respondents are give poor rank to the anniversary offer.  The study shows that 45 respondents are purchase Hero Honda bike whose salary is below 5000 income. 

52

53

SUGGESTIONS 1. Hero Honda should introduce a low price moped 2.

For the promotion, company show make road-show that will

3.

Increase the sales. The company should give more concentrate on the advertisement.

4.

Hero Honda Company should implement a new strategy to reduce the competition and lead into the bike market.

5. As people expect more mileage per kilometer, company should increase the mileage of the hero Honda bike. 6. Hero Honda should make a sports bike like to Kawasaki Suzuki Hyabusa bikes which can run with maximum speeds.

54

SWOT Analysis OF HERO HONDA 55

SWOT Analysis Strengths  Ability to understand customer’s needs and wants  Recognized and established brand name  Effective advertising capability

Weaknesses  R&D is not close to the Hero manufacturing plant  Hero is vulnerable in the joint venture because  Honda Motor Company has so much power

56



Opportunities

Global expansion into the Caribbean and Central America

Expansion of target market (include women) Become India’s leader in the scooter market



Threats

Honda Motorcycles and Scooters India can take

away market share and cause joint venture to go sour

Bajaj Motors is a strong competitor 57

CHAPTRE: 8 REFERENCE MATERIAL •

BIBLOGRAPHY

•

APPENDICES

58

59

BIBLIOGRAPHY 

Marketing research, G.C.Beri, Third Edition, Tata McGraw Hill Publishing Company Limited, New Delhi, 2000



Marketing management, Philip Kotler, Twelth (Millennium) edition, Prentice-Hall of India Private Limited, New Delhi, 2003

 www.herohonda.com

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APPENDICES QUESTIONNAIRE

61

A STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME TO PURCHASE HERO HONDA BIKE. 1 Do you have own bike? (a) Yes

[ ].

(b) No [ ]

If yes than,

2 Which company bike do you have at present? Company ____________________

3 Whom do you refer to purchasing bike? (A) News paper (B) Friends

[ ] [ ]

(C) TV advertisement [ ] (D) others [ ]

4 Who is decision maker for purchasing bike in your family? (A) Father (B) Self

5

[ ] [ ]

(B) Mother (D) other

[ ] [ ]

How you purchase bike? (A) By cash

[ ]

(B) By Loan

62

[ ]

6

What features you considers when you purchase bike please give the rank.

attributes

excellent Very good

good

Average Poor

price Less maintenance Style Durability Mileage Easy driving Brand reputation Color

7 Rate the following attribute of show room Attributes

1

2

3

4

5

Available After sales Services infrastructure

8 From where are you purchasing___________? (A) Shivani Auto [ ] (B) Dhruv Auto [ ]

(C) Shiddi Auto (D) others

63

[ ] [ ]

Very poor

9 Rate the following schemes that attract you most. attributes Special offer Exchange offer Special gift Cash discount

1

2

3

4

5

10 Rate the following feature you have purchase hero Honda Bike. Attribute Mileage Available Price After service Pick up

1

2

3

4

5

11 give your suggestion. ___________________________________________________ ___________________________________________________ ___________________________________________________ • CUSTOMER PERSONAL INFORMATION:A. Name: - ___________________________________________ B. Address:-___________________________________________ 64

___________________________________________ ___________________________________________ C. phone no:-__________________________________________ D. Age (in year):18 to 20 26 to 30 36 to 40

[ ] [ ] [ ]

21 to 25 31 to 35 41 & above

[ ] [ ] [ ]

E. Occupation:Services [ ] Students [ ] Others [ ]

Businessman [ ] Professional [ ]

F. monthly income:5000 10,000-15,000 20,000 Above

[ ] [ ] [ ]

5000-10,000 15,000-20,000

[ ] [ ]

Sing.___________________ Date.___________________

65