A STUDY ON CONSUMER BEHAVIOUR TOWARDSCHAPTER – I INTRODUCTION Company Profile About the Product SAANSKRITHI SCHOOL OF BUSINESS, PUTTAPARTHI. A STUDY ON CONSUMER BEHAVIOUR TOWARDS COMPANY PROFILE & HISTORY Hero Motocorp Ltd., formerly Hero Honda, is an Indian motorcycle and scooter manufacturer based in New Delhi, India. Hero Honda started in 1984 as a joint venture between Hero Cycles of India and Honda of Japan. The company is the largest two wheeler manufacturer in India. The 2006 Forbes 200 Most Respected companies list has Hero Honda Motors ranked at #108. In 2010, when Honda decided to move out of the joint venture, Hero Group bought the shares held by Honda. Subsequently, in August 2011 the company was renamed Hero MotoCorp with a new corporate identity. On 4 June 2012,Hero Motocorp approved a proposal to merge the investment arm of its parent Hero Investment Pvt. Ltd. into the automaker. The decision comes after 18 months of its split from Honda Motors. The company was established as a joint venture company between Honda Motor Company of Japan and Hero Group. In the year 1983, they signed a joint collaboration agreement and formed the company. The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. In the year 1985, the company commenced their commercial production at Dharuhera plant in Haryana and introduced their first motorcycle, CD 100 in the market. In the year 1989, they launched the new motorcycle model, Sleek in the market and in the year 1991, they introduced new motorcycle model, CD 100 SS in the market. In the year 1995, the company introduced their extraordinary product, Splendor in the market. SAANSKRITHI SCHOOL OF BUSINESS, PUTTAPARTHI. A STUDY ON CONSUMER BEHAVIOUR TOWARDS COMPANY PROFILE Hero MotoCorp Limited is the World's single largest two-wheeler motorcycle company. The company is engaged in the manufacture of two wheelers motorcycles and its parts. The company has three manufacturing facilities namely Dharuhera, Gurgaon at Haryana and Haridwar at Uttarakhand. The company is based in New Delhi, India. The company offers a range of bikes starting from CD Dawn, CD Deluxe, Splendor Plus, Splendor NXG, Passion and Passion Pro. The 125 cubic centimeter segment offers Glamour, Super Splendor and Glamour F1. It also has an offering called Achiever in 135 cubic centimeter segment. In the 150 cubic centimeter and above the company offers brands like Hunk, CBZ X-treme, Karizma and the Karizma ZMR. It also offers a 100 cubic centimeter scooter, Pleasure. Hero MotoCorp Limited was incorporated in the year 1984 with the name Hero Honda Motors Ltd. The company was established as a joint venture company between Honda Motor Company of Japan and Hero Group. In the year 1983, they signed a joint collaboration agreement and formed the company. The joint venture between India's Hero Group and Honda Motor Company, Japan has not only created the world's single largest two wheeler company but also one of the most successful joint ventures worldwide. In the year 1985, the company commenced their commercial production at Dharuhera plant in Haryana and introduced their first motorcycle, CD 100 in the market. In the year 1989, they launched the new motorcycle model, Sleek in the market and in the year 1991, they introduced new motorcycle model, CD 100 SS in the market. In the year 1995, the company introduced their extraordinary product, Splendor in the market. In the year 1997, the company inaugurated their second manufacturing facility at Gurgaon in Haryana. Also, they introduced new motorcycle model, Street in the market. In the year 1999, they launched Hero Honda CBZ, the first 150cc motorcycle in the Indian two wheeler industry. In the year 2001, the company introduced new models, Passion and Joy in the market. In the next year, they introduced new models, Dawn and Ambition in the market. In the year 2003, the company launched new motorcycle models namely, CD Dawn, Splendor+ and Passion Plus in the market. SAANSKRITHI SCHOOL OF BUSINESS, PUTTAPARTHI. A STUDY ON CONSUMER BEHAVIOUR TOWARDS Also, they launched Hero Honda Karizma, the industry's first 223cc motorcycle. In the year 2004, they introduced new models, Ambition 135 and CBZ* in the market. During the year, they renewed the joint technical agreement with the Honda Motors Company, Japan. In the year 2005, the company launched Super Splendor, CD Deluxe, Glamour and Achiever in the market. In the year 2006, the company forayed into scotter segment and launched 100cc gearless scotter, Pleasure in the market. In the year 2007, the company launched Splendor NXG, CD Deluxe, Passion Plus and Hunk in the market. During the year 2007-08, the company commissioned their third plant at Haridwar in Uttarakhand with an initial installed capacity of 500,000 units. This plant had lean manufacturing and practices that ensure efficiency. During the year, the company launched new models (including variants) including Splendor NXG, Hunk, New Super Splendor, New Passion Plus, Commemorative Splendor+ and a refreshed version of Pleasure. During the year 2008-09, the company increased the installed capacity of Motorised 2 wheelers upto 350CC engine by 1800000 Nos to 5200000 Nos. Also, they launched eight models: Passion Pro (100 cubic capacity-4 Stroke), CBZ-Extreme (150 cubic capacity - 4 Stroke), Pleasure New Aesthetics, Splendor NXG (Self Start), CD Deluxe (Self Start), Glamour FI, Glamour (Carb) and HUNK Special Edition. Also, they launched new motorcycle model, Karizma - ZMR in the market. During the year 2009-10, the company increased the installed capacity of Motorised 2 wheelers upto 350CC engine by 200000 Nos to 5400000 Nos. The company launched nine new models during the year. During the year 2010-11, the company launched six new models including variants of existing models successfully. They refreshed Glamour and Glamour FI. SAANSKRITHI SCHOOL OF BUSINESS, PUTTAPARTHI. A STUDY ON CONSUMER BEHAVIOUR TOWARDS They introduced the New Hunk, Super Splendor and Splendor Pro. The company launched the new upgraded versions of CBZ Xtreme and Karizma. Also, they breached the landmark 5 million figure cumulative sales in a single year. During the year, the Indian Promoter Group of the company, which comprised of Hero Investments Pvt Ltd (HIPL), Bahadur Chand Investment Pvt Ltd (BCIPL) and Hero Cycles Limited (Hero Cycles) re-aligned the shareholding in the company, following a family agreement. As a result, Hero Cycles transferred its shareholding in the company to HIPL on May 28, 2010. As a result of these transactions, the Indian Promoter Group of the company now comprises of HIPL and BCIPL owned and controlled entirely by the Munjal Family headed by Brijmohan Lall Munjal. Also, during the year, the Indian Promoter Group and Honda Motor Co Ltd, Japan (Honda) entered into a Share Transfer Agreement (the Agreement) on January 22, 2011. As per the terms of the Agreement, Honda had agreed to transfer its entire shareholding of 26% in the Company to the Indian Promoter Group, bringing an end to the joint venture between the two promoter groups of the company. HISTORY Hero MotoCorp was started in 1984 as Hero Honda Motors Ltd. 1956—Formation of Hero Cycles in Ludhiana(majestic auto limited) 1975—Hero Cycles becomes largest bicycle manufacturer in India. 1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed 1984—Hero Honda Motors Ltd. incorporated 1985—Hero Honda motorcycle CD 100 launched. 1989—Hero Honda motorcycle Sleek launched. 1991—Hero Honda motorcycle CD 100 SS launched. 1994 – Hero Honda motorcycle Splendor launched. 1997—Hero Honda motorcycle Street launched. 1999 – Hero Honda motorcycle CBZ launched. 2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched. SAANSKRITHI SCHOOL OF BUSINESS, PUTTAPARTHI. 2009—New Models of Hero Honda motorcycle Karizma:Karizma – ZMR and limited edition of Hero Honda motorcycle Hunk launched 2010—New Models of Hero Honda motorcycle Splendor Pro and New Hero Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched. CBZ Xtreme. 2012-New Models of Hero Motocorp Maestro the Musculine scooter and Ignitor the young generation bike are launched. PUTTAPARTHI. 2011—New Models of Hero Honda motorcycles Glamour. SAANSKRITHI SCHOOL OF BUSINESS. 2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched. In November. 2005—Hero Honda motorcycle Super Splendor. Hero launched its first ever Off Road Bike Named Hero "Impulse".A STUDY ON CONSUMER BEHAVIOUR TOWARDS 2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched. 2007—New Models of Hero Honda motorcycle Splendor NXG. CBZ Xtreme. Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched. New licensing arrangement signed between Hero and Honda. Hero Honda motorcycle Splendor plus. Karizma launched. thus forming Hero MotoCorp and Honda moving out of the Hero Honda joint venture. Glamour FI. Glamour Fi and Hero Honda motorcycle Passion Pro launched. Glamour. 2008—New Models of Hero Honda motorcycles Pleasure. 2003—Hero Honda motorcycle CD Dawn. New Models of Hero Honda motorcycle CD Deluxe. Hero Honda motorcycle CD Deluxe. In August Hero and Honda parted company. . Hero Honda motorcycle Glamour. New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched. Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure. Non-Executive Director Ind. Non-Executive Director Designation Suman Kant Munjal V P Malik M Damodaran Pradeep Dinodia Anand C Burman Non Executive Director Ind. . The company will provide an engaging environment for its people to perform to their true SAANSKRITHI SCHOOL OF BUSINESS. Non-Executive Director VISION. styling and quality so that it converts its customers into its brand advocates.the vision of a mobile and an empowered India. powered by its bikes. setting benchmarks in technology. Non-Executive Director Ind. Non-Executive Director Ind. Non-Executive Director Ind. reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena MISSION Hero MotoCorp's mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility. MISSION AND STRATEGY VISION The story of Hero Honda began with a simple vision .A STUDY ON CONSUMER BEHAVIOUR TOWARDS CORPORATE STRUCTURE Board of Directors PAWAN MUNJAL Name Brijmohan Lall Munjal Sunil Kant Munjal Paul Edgerley Analjit Singh Ravi Nath Pritam Singh Name MANAGING DIRECTOR & CEO Designation Chairman Joint Managing Director Non Executive Director Ind.. company's new identity. Non-Executive Director Ind. Hero MotoCorp Ltd. PUTTAPARTHI. 400 crores. built over an area of 250 acres and will have a workforce of 500 employees. Engineers & designers undergoing training under Eric Buell Racing (USA) AVL of Austria will help develop engines of various sizes & power output SAANSKRITHI SCHOOL OF BUSINESS. explore growth opportunities globally. Initial investment of Rs. continue to invest in brand building activities and ensure customer and shareholder delight REASERCH AND DEVELOPMENT Will setup India's largest two-wheeler R&D center in Jaipur. PUTTAPARTHI. . Work is underway. Will be operational in second quarter of FY14 Will include design/simulation studio & infrastructure for component & complete vehicle testing (including test tracks). aggressively expand its reach to customers. continuously improve its operational efficiency. Hiring of engineers & designers already underway.A STUDY ON CONSUMER BEHAVIOUR TOWARDS potential. It will continue its focus on value creation and enduring relationships with its partners STRATEGY Hero MotoCorp's key strategies are to build a robust product portfolio across categories. The new bike has a similar stance and the changes include programmed fuel injection feature incorporated in this bike. The company then launched the Hero Honda Karizma ZMR Fi. However the fuel injection feature provides increase in power and the bike has maximum power of 17. air pressure as well as engine temperature so as to identify ideal air and fuel ratio. Hero Motocorp New Karizma ZMR Mileage The bike can deliver mileage of around 40 to 50 km/litre Hero Motocorp New Karizma ZMR Features SAANSKRITHI SCHOOL OF BUSINESS.6 bhp at 7000 rpm along with peak torque of 18. The bike has 5-speed gears and multiplate wet clutch. The fuel tank limit of the bike is 16 litres and it has a wheelbase of 1350mm.35 Nm at 6000 rpm.7 seconds. The weight of the bike is 159 kgs along with ground clearance of 159mm. The top speed of the bike is 126 km/hr and it can reach 0 to 60 km/hr in just 3. The bike has length of 2110mm and its width is 805mm while its height is 1175mm.A STUDY ON CONSUMER BEHAVIOUR TOWARDS P R O D U C T P RO F I L E Hero Motocorp Karizma became extremely popular following its launch in the Indian bike market. The PGM-Fi feature has sensors that measure aspects like air temperature. The bike is also more powerful and has a new rear disc brake. ZMR Specifications The Hero Motocorp New Karizma ZMR review indicates that the bike has a 223cc engine which is the same as the old version bike. The bike also has 276mm disc brake for the front and 240mm disc rear brakes. The Hero Motocorp New Karizma ZMR review also indicates that the bike has telescopic hydraulic front shock absorbers and 5-step adjustable iGRS system for the rear. PUTTAPARTHI. . 3 mph) 9. panther black and moon yellow. sports red. The bike also gets several new features and these include integrated blinkers and new headlamps. Hero Motocorp New Karizma ZMR Colors The bike is available in five colors and these include pearl white. .2 mm (2. PGM-FI OHC DC – FTIS (Full Transistorised Ignition System) Wet sump system: Cooling system: Gearbox: Transmission type.5 ft.5 x 66.6 x 2. Show full rating and compare with other bikes Engine and transmission 223. wet Constant mesh Chassis.60 HP (12. The other aspects displayed include digital fuel gauge and speedometer. The finish of the bike and paint quality is also excellent.61 cubic inches) Single cylinder.0 km/h (78. The display of the bike also shows fuel consumption in real time and this helps in ensuring that good mileage in maintained.lbs) @ 6000 RPM 126.8 out of 100.6 inches) Injection.00 ccm (13. brakes and wheels Tubular single cradle. four-stroke 17. Oil & air 5-speed Chain Model: Year: Category: Rating: final drive: Clutch: Driveline: Frame type: Front suspension: Multiplate. Displacement: Engine type: Power: Torque: Top speed: Compression: Bore x stroke: Fuel system: Fuel control: Ignition: Lubrication GENERAL INFORMATION Hero Karizma ZMR 2012 Sport 77. diamond type Telescopic Hydraulic Shock absorbers SAANSKRITHI SCHOOL OF BUSINESS.35 Nm (1. vibrant blue.0:1 65.8 kW)) @ 7000 RPM 18. The bike has a beautifully designed instrument cluster and the rider is greeted with a long message when the key is inserted and the bike is started. suspension.9 kgf-m or 13.A STUDY ON CONSUMER BEHAVIOUR TOWARDS The front design of the bike is similar to the old Karizma and the bike has plenty of snazzy graphics. PUTTAPARTHI. 5 pounds) gas.4 inches) diameter: Wheels: 5-spoke cast wheel Weight incl.1 inches) 15.40 litres (0.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Rear suspension: Front tyre Swing arm with 5 step adjustable IGRS system 80/100-18 dimensions: Rear tyre 100/90-18 dimensions: Front brakes: Front brakes Single disc 276 mm (10. black Sold in India. SAANSKRITHI SCHOOL OF BUSINESS.110 mm (83.0 of weight: Overall height: Overall length: Overall width: Ground clearance: Wheelbase: Fuel capacity: Reserve fuel 1. Yellow. .00 litres (0. etc: Front percentage 175. white. Brand previously called Hero Honda. oil.3 inches) 2. Physical measures and capacities 159.9 inches) diameter: Rear brakes: Rear brakes Single disc 240 mm (9.09 quarts) Other specifications Electric 12V 6Ah battery.53 gallons) capacity: Oil capacity: Starter: Electrical: Color options: Comments: 1.350 mm (53.9 inches) 1.04 gallons) 2.175 mm (46. PUTTAPARTHI.7 inches) 150 mm (5.1 inches) 805 mm (31.30 litres (4. blue. red.0 kg (350. PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS CHAPTER – II DESIGN OF STUDY Need for the Study SAANSKRITHI SCHOOL OF BUSINESS. . SAANSKRITHI SCHOOL OF BUSINESS. .A STUDY ON CONSUMER BEHAVIOUR TOWARDS Scope for the Study Objectives of the Study Research Methodology Data Collection Limitations of the Study NEED FOR THE STUDY Every business enterprise requires vital information to keep alive its day to day business activities. After the evaluation marketing concept. regarding target market. marketing effort of organization is channel zed towards to ascertain the data. preferences. Then information required is of consumer research. The nature of information required. The survey consumer behavior is helpful to the company to know how far the consumer are satisfied with the product and what makes them to by and to know what consumer need more from the product. The collected data is helpful to know changing tastes. Supposing organization is evaluating its marketing effort. PUTTAPARTHI. differs from situation to situation. trends in buying behavior of the customer and to make product improvements. Then marketer has to appraise the marketing effort and then has to find means of improving it. we shall strive to Create a proactive environment management system that addresses all environmentally significant aspects related to our products and processes. a need was felt by the M/S. to take up of the type and hence intended to conduct a study on consumer behavior towards HERO MOTO CORP KARIZMA ZMR Thus the need for the study paved way in performing project work of this kind. . Towards this. manufacturer of two and three wheeler vehicles is committed to prevention of pollution. SCOPE FOR THE STUDY: Towards creating and preserving a cleaner environment Hero Moto Corp Motor. continual improvement of our environmental performance and compliance with all applicable environmental legislation and regulations.A STUDY ON CONSUMER BEHAVIOUR TOWARDS With the stiff competition coming up at a rapid pace and also due to changing nature of the market. Sai Teja Motors Hindupur. SAANSKRITHI SCHOOL OF BUSINESS.. PUTTAPARTHI. . PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Minimize the generation of waste and conserve resources through better technology and practices. To know the benefits. To know the performance of Hero Moto Corp KARIZMA ZMR. improvements required by the customers. and Promote environmental awareness amongst our employees and motivate them to fulfill our commitments. OBJECTIVES OF THE STUDY To know the Brand awareness in the minds of the customers about the company. SAANSKRITHI SCHOOL OF BUSINESS. To know the level of satisfaction and expectations of Hero Moto Corp KARIZMA ZMR users. . Doubt is often better than overconfidence.A STUDY ON CONSUMER BEHAVIOUR TOWARDS To Study the Expectations Of the users of Hero Moto Corp KARIZMA ZMR To ascertain proportion of businessmen. research comprises defining and redefining problems. and students owning Hero Moto Corp KARIZMA ZMR To find whether the customers are satisfied by the service. PUTTAPARTHI. a movement from the known to the unknown. for it leads to inquiry and inquiry leads to invention. According to Clifford Woody.” Is a famous Hudson Maxim in SAANSKRITHI SCHOOL OF BUSINESS. and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. To know Price Attractiveness of Hero Moto Corp KARIZMA ZMR To know Price justification of Hero Moto Corp KARIZMA ZMR To find out the specific problems and suggestions from Hero Moto Corp KARIZMA ZMR RESEARCH METHODOLOGY Meaning of Research Redman and Mory “systemized effort to gain new knowledge. collecting. Significance of Research “All process is born of inquiry.” Some people consider research as a movement. Research is an academic activity and as such the term should be used in a technical sense. employees. formulating hypothesis or suggested solutions. organizing and evaluating data making deductions and reaching conclusions. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. Research Methodology Research methodology is a way to systematically solve the research problem.A STUDY ON CONSUMER BEHAVIOUR TOWARDS context of which the significance of research can well be understood? Increased amounts of research make progress possible. The role of research in several fields of applied economics. as an aid to economic policy. we do the both. which have been gathered earlier for some other purpose. It is necessary for the researcher to know not only the research methods or techniques but also the methodology. Secondary Data: Any data. we either ask someone who knows about it or we Observe it ourselves. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. the two methods by which primary data can be collected is observation and questionnaire. Thus. Data Collection Information was collected through both primary and secondary sources. if we want to have first hand information or any happening or event. are secondary data in the hands of researcher. Primary Data: In some cases the researchers may realize the need for collecting the first hand information. As in the case of everyday life. . Those data collected first hand. has greatly increased in modern times. both for government and business. It may be understood as a science of studying how research is done scientifically.either by the SAANSKRITHI SCHOOL OF BUSINESS. whether related to business or to the economy as a whole. Research. has gained added importance. PUTTAPARTHI. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. ambitious efforts of the researchers every project is bound to have certain limitations. The data collected for this project has been taken from the secondary source. PUTTAPARTHI. The findings are based on the information giving by the respondents. . especially for the purpose of the study isknown as primary data. The study was Limited to Hindupur. Sources of secondary data are: Internet Magazines Publications Newspapers SIMPLE DESIGN Type of sampling : Random Sampling Location : Hindupur Consumer Sample Size : 50 Instrument for data collection : Questionnaire LIMITATIONS In spite of the very best co-operations from all the sides. Few users were non co-operative because they could not spare time for filling the questionnaire.A STUDY ON CONSUMER BEHAVIOUR TOWARDS researcher or by someone else. It was not possible to know the exact expectations of Hero Moto Corp KARIZMA ZMR users Questionnaires were used for data collection. SAANSKRITHI SCHOOL OF BUSINESS. The Study is confined only 50 customers hence it cannot be generalized. . PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS The sample selected on random basis. The errors of the sampling technique may attribute to the present study only. CHAPTER – III SAANSKRITHI SCHOOL OF BUSINESS. .A STUDY ON CONSUMER BEHAVIOUR TOWARDS CONCEPTUAL FRAME WORK Introduction to Consumer Behaviour Factors influencing Consumer Behaviour Buyer Roles INTRODUCTION TO CONSUMER BEHAVIOUR Consumer Behaviour Introduction Before going to study about the “CONSUMWE BEHAVIOUR” in depth we have to study the following important terms Consumer The term consumer is a person who buys goods / services for his own consumption for the satisfaction of his needs . PUTTAPARTHI. he is known as consumer Buyer SAANSKRITHI SCHOOL OF BUSINESS. So it is indispensable for the marketers to know the Consumer decision process. In a customer oriented marketing consumer or buyer behavior has attained an increasing importance.A STUDY ON CONSUMER BEHAVIOUR TOWARDS The term buyer is a person who purchases goods either for resale or for use in production for use of some body else. how and from whome to purchase goods and services” -Walter and Paul Consumer Behaviour may be defined as “The Behaviour that consumers display in searching. The above definitions give the following features of consumer behavior Buyer behavior includes both individual (psychological) and group(social) process Buyer behavior is reflected by post purchase evaluation which indicates satisfaction or non satisfaction Buyer behavior includes communication purchasing and consumption behavior SAANSKRITHI SCHOOL OF BUSINESS. using.” It refers to the study of how individuals make decisions to spend their valuable resources. purchase. he is known as buyer Therfore the two terms consumer and buyer are not equal in the true sense. consume and tell other people about product and services” -Webster “Consumer behavior is the process whereby individual decide about what. buyer really wants and why the study of buyer behavior is realitively a new discipline of study in the field of marketing Now it has become the central topic of modern marketing . where. since the ultimate aim of marketing is consumer satisfaction and consumer earning Definations “Buyer behavior is all psychological. . when. social and physical behavior of potential customers as they become aware of evaluate. PUTTAPARTHI. The study of consumer behavior is an attempt to understand what the consumer . evaluating and disposing of products and services that they expect will satisfy their needs. using. 1) Need Recognition 2) Information Search 3) Evaluation of Alternatives 4) Purchase 5) Post Purchase Behavior SAANSKRITHI SCHOOL OF BUSINESS. PUTTAPARTHI. Decision process includes the following stages. evaluating and disposing of products and services that they expect will satisfy their needs”. . So it indispensable for the marketers to know the consumer decision process. It refers to the study of now individuals make decisions to spend their valuable resources.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Buyer behavior is shaped by social environment Buyer behavior includes both consumer and buyer behavior Buying patterns are compiled and nature Buyer has many alternative choices in spending his money Consumer behavior is dynamic in nature CONSUMER BUYING PROCESS Consumer Behaviour may be defined as the “the behaviour that consumers display in searching. POST PURCHASE DECISION: After purchase and consumption of a product. friends. relative. sex or by external stimuli like advertisement. advertising sales persons. Here environment includes friends. PURCHASE DECISION: After the evaluation. Brand image.e. The evaluation stage represents the stage of metal trial of the product. the person makes final decision using certain evaluative criteria like product attribute. . The marketer has to study the post purchase attitude of the consumer to predict their post purchase actions. etc. The buyer senses a difference between his own state and desired state. etc.. relative importance of each attribute to the Consumer. The need can be triggered by internal stimuli like hunger. ACTORS INFLUENCING OF CONSUMER BEHAVIOUR: SAANSKRITHI SCHOOL OF BUSINESS. The recollection of past experiences might provide the consumer the adequate information on the other hand if the consumer had no prior experience.. etc. the Consumer develops the intention either to purchase or reject the product. thirst. INFORMATION SEARCH The search begins when a consumer perceives that a need might be satisfied by the purchase and consumption a need might be satisfied by the purchase and consumption of a product. the marketer needs to identify the circumstances that trigger a particular need. consumer experiences some level of satisfaction or dissatisfaction. the intention to buy. then he searches the information in the outside environment. The final purchase will however depend on the strength of positive intention i. EVALUATION OF INFORMATION: The marketers is interested in knowing how consumers process the information gathered during the search process once the interest in the product is aroused. PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS NEED RECOGNITION The buying process starts when the buyer recognizes a problem or need. and social class. Religious groups with specific cultural preferences and taboos. Social classes show distinct product and brand preference. CULTURE: Culture is the most fundamental determinant of a person’s want and behavior where as lower creatures are largely governed by instinct. SOCIAL FACTORS A consumer’s behavior is also influenced by social factors such as the consumer’s reference groups. SAANSKRITHI SCHOOL OF BUSINESS. family and social role and statuses. social. sub culture. SUB – CULTURE: Each culture contains smaller groups of sub-culture that provide more specific identification and socialization for its members. interests and behavior. We want to examine the influence of each factor a buyer’s behaviour. Their purchases are highly influenced by cultural. PUTTAPARTHI. SOCIAL CLASS: Virtually all human societies exhibit social stratification. These factors are not possible to control by the marketer but must be taken into account. Stratification sometimes takes from of a cast system where the members of different castes are reared for certain roles and cannot change their membership. personal and psychological factors. .A STUDY ON CONSUMER BEHAVIOUR TOWARDS Consumers do not make their decisions in a vacuum. CULTURAL FACTORS: Cultural factors exert the broadest and deepest influence on consumer behavior we will look at the role played by the buyer’s culture. where are hierarchically ordered and whose members share similar values. human behavior is largely learned. Social classes are relatively homogenous and enduring division in a society. Racial groups and geographical areas also affect the consumer behaviour. Four types of sub-cultures can be distinguished. More stratification takes the form of social classes. Nationality groups are found within large communities and exhibit distinct ethnic taste and proclivities. . lifestyle and personality and self-concept. organizations. The family is the most economics and a sense of personal ambition. neighbors and co-owners. One’s spouse and children. OCCUPATION: A person’s consumption pattern is also influenced by his or her occupation. ROLES AND STATUS: A person participates in many groups throughout life-family club. economic circumstances. A more direct influence on every day buying behavior is ones family of procreation namely. FAMILY: Members of the buyer’s family can exercise a strong influence of the buyer’s behavior. self-worth and love. which tend to be formal and where there is less continuous interaction. occupation. The position in each group can be defined in terms of role and status. The person also belongs to secondary groups. such as family. The family of orientation consists of one’s parents. From parents a person acquires an orientation towards religion. some are primary groups with there is fairly continuous interaction. friends. Marketers try to identify the occupational groups that have an above average interest in their products and services. self-worth and love. PERSONAL FACTORS: A buyer’s decisions are also influence by his or her personal characteristics notable the buyer’s age and life-cycle stage. politics and economics and a sense of personal ambition.A STUDY ON CONSUMER BEHAVIOUR TOWARDS REFERENCE GROUP: A person’s behaviour is strongly influenced by many groups. Groups having a direct influence on a person are membership group. PUTTAPARTHI. A persons reference groups and those groups that have a direct or indirect influence on the person’s attitude or behaviour. These are groups to which the persons belongs and interacts. ECONOMIC CIRCUMSTANCES: SAANSKRITHI SCHOOL OF BUSINESS. PUTTAPARTHI. PSYCHOLOGICAL FACTORS: Buyers buying choices are also influenced by major psychological factors. . borrowing power and attitude towards spending versus saving. and 5. NEEDS SAANSKRITHI SCHOOL OF BUSINESS. Learning. Attitudes. Needs. 4. 3.A STUDY ON CONSUMER BEHAVIOUR TOWARDS A persons economic circumstances will greatly effect product choice peoples economic circumstances consists of their use up income. 1. 1. Motives. savings and assets. Perception. 2. The following are the individual influence on consumer behaviour. fear safety. medicine heal a sick person. For many people refrigerators. weight. Food satisfies hunger. or shape. emotional feeling. These are the driving forces behind buying behaviour and may be based on psychological wants. PUTTAPARTHI. love and affection. Maslow five level hierarchies of needs are well known is relevant in this context. social approval.A STUDY ON CONSUMER BEHAVIOUR TOWARDS The starting point in the purchase decision is the recognition of a need. fashion. 5. Learning may be defined as changes as a result of experience. 2. economy. vanity. Safety needs are insurance and real estate and so on. beauty and comfort or convenience. pro or cons action tendency towards some object of idea. cars and air conditioners are status symbols and satisfy the needs of self esteem. b) Individual factors which are characteristics of individual. PERCEPTION: Individual behavior resulting from motivation is affected by how we perceive stimuli perception is the meaning we attribute to incoming stimuli through our five senses. MOTIVES A motive is an inner state that directs us towards the goal of satisfying a felt need. 4. curiosity. color. possession. ATTITUDE: Attitudes may be defined as a person’s enduring favorable or unfavorable evaluation. Important buying motives are pride. ROLES OF BUYING SAANSKRITHI SCHOOL OF BUSINESS. The consumer is typically confronted with numerous unsatisfied needs. Over time as with describing those decisions at on point of time. another higher level need arises and demands priority in its satisfaction. . 3. the study of how learning takes place is important. prestige and status. As each need is fulfilled. Marketers are interested in psychological needs as they are closely connected to what the product does. Our perception of an object of event is the result of the interception of two of factors such as a) Stimuli factors such as size. LEARNING: Since marketing is as concerned with the process by which consumer decisions change. It ranges from hunger and thirst to love. Whole market or business transaction is based on the consumer before this whole market situations change presently.A STUDY ON CONSUMER BEHAVIOUR TOWARDS People might play many roles in buying decision. Consumers are actors on the market palace stage. INITIATOR: The person who first suggest to go for buying a particular product or services. Buyer may not be consumer. Customers Behaviour is the study of the processes involved when individuals or groups select purchase. status or even spiritual fulfillment. . Mainly there are five. it is the Buyer market. Consumer Behavior towards Hero Moto Corp KARIZMA ZMR The aim of marketing is to meet and satisfying the target customer needs and want. They take lead role in the market. BUYER: The person who make actual purchase. what to buy. decider. The selling and buying process confined on the consumer. buyer and user. Needs or desires are not specific. PUTTAPARTHI. where to buy. INFLUENCER: A person whose views or advice carries some weight in making the final decision. initiator. influencer. Market SAANSKRITHI SCHOOL OF BUSINESS. DECIDER: The person who ultimately makes a buying decision or any part of it – whether to buy. use or dispose of product service ideas or experiences to satisfy needs or desires. how to buy. USER: The person who consumer or uses the product who is also called as consumer. A STUDY ON CONSUMER BEHAVIOUR TOWARDS given importance on the taste and performance of consumer. They try to fulfil the needs and satisfy them by delivering goods and providing better services Consumer behaviour is the ongoing process. PUTTAPARTHI. In other words we can define it as the process of decision making of activities that the customer doses at the time of evaluating. . it has never ends. acquiring or using goods and services SAANSKRITHI SCHOOL OF BUSINESS. It reflects the interaction between the consumer and producer at the time of purchase. The attitude towards the products before buying is known as pre-purchase behaviour and response found from consumer after using the product is known as post-purchase behaviour of customers. It is continuous process that not only remains at the time of transaction or buying or selling period before this and after that also. A STUDY ON CONSUMER BEHAVIOUR TOWARDS CHAPTER – IV DATA ANALYSIS & INTERPRETATION Table-1 Preference for purchase of bike Needs Necessary Image of the company Comfort and Safety Status Others TOTAL No. PUTTAPARTHI. of Respondents 10 14 16 2 8 50 SAANSKRITHI SCHOOL OF BUSINESS. Percentage 20 28 32 4 16 100 . of Respondents 20 30 50 SAANSKRITHI SCHOOL OF BUSINESS.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Inference 20% of respondents purchased bike for their necessary 28% of respondents purchased bike by seeing the image of the company 32% of respondents purchased bike for their comfort and safety ride 4% of respondents purchased bike for their status 16% of respondents purchased bike for other reasons Table-2 Owners who owned a vehicle before they bought Hero Moto Corp KARIZMA ZMR Usage Yes No TOTAL No. Percentage 40 60 100 . PUTTAPARTHI. of Respondents 5 6 Relatives 23 C SAANSKRITHI SCHOOL OF BUSINESS. Percentage 10 46 12 .A STUDY ON CONSUMER BEHAVIOUR TOWARDS Inference 60% of the respondents used other vehicle before Hero Moto Corp Karizma ZMR 40% of the respondents didn’t used any other vehicle before Hero Moto Corp Karizma ZMR Table-3 SOURCE OF AWARENESS A Source Television B Friends No. PUTTAPARTHI. V. . advertisements. 6% of them are through Magazines.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Others 4 3 9 18 TOTAL 50 100 D E Newspaper Magazine F 8 6 Inference 10% of the respondents became aware of the product through T. of Respondents Percentage A Yes 27 54 B No 23 46 SAANSKRITHI SCHOOL OF BUSINESS. 8% of them are influenced by News paper.. PUTTAPARTHI. 12% of them through Friends. Table-4 POPULARITY Particulars No. 18% of them are influenced by others like Hoardings etc. 46% of the respondents through Relatives. of Respondents Percentage A Television 21 42 B Newspaper 09 18 SAANSKRITHI SCHOOL OF BUSINESS.A STUDY ON CONSUMER BEHAVIOUR TOWARDS TOTAL 50 100 Inference 54% the respondents have rated that Hero Moto Corp KARIZMA ZMR need more popularity 46% of the respondents rated that Hero Moto Corp KARIZMA ZMR does not need more popularity. PUTTAPARTHI. Table-5 MEDIA TO INCREASE SALES Media No. . PUTTAPARTHI. of Respondents Percentage A Cash 27 54 B Bank Credit 09 18 SAANSKRITHI SCHOOL OF BUSINESS. 12% of them have rated that Hero Moto Corp KARIZMA ZMR needs more popularity in Hoardings. 18% of them have rated that Hero Moto Corp KARIZMA ZMR needs more popularity in Newspaper.A STUDY ON CONSUMER BEHAVIOUR TOWARDS C Hoardings 06 12 D Brand Ambassador 14 28 TOTAL 50 100 Inference 42% of the respondents have rated that Hero Moto Corp KARIZMA ZMR need more popularity in Television. Table-6 MODE OF PURCHASE Mode of Purchase No. 28% of them have rated that Hero Moto Corp KARIZMA ZMR needs more popularity in Brand Ambassador. . Table-7 SATISFACTORY TEST Satisfactory Test No. PUTTAPARTHI. Percentage . of Respondents SAANSKRITHI SCHOOL OF BUSINESS.A STUDY ON CONSUMER BEHAVIOUR TOWARDS C Finance 08 16 D Installment Credit 06 12 TOTAL 50 100 Inference Above the table infers that 54% of respondents prefer cash as mode of payment while 18% prefer on bank credit. Table-8 FEATURES OF HERO MOTO CORP KARIZMA ZMR Not A)Mileage B)Pick-up C)Performance D)Road grip Satisfactory 07 06 0 10 Satisfactory Partially Highly 26 06 11 13 Satisfactory 12 19 21 20 Satisfactory 05 19 18 07 SAANSKRITHI SCHOOL OF BUSINESS. 64% of the respondents have equal expectations to the actual performance of the Hero Moto Corp KARIZMA ZMR 10% of the respondents have low performance than their expectations. Total 50 50 50 50 .A STUDY ON CONSUMER BEHAVIOUR TOWARDS A Performance>Expectations 13 26 B Performance=Expectations 32 64 C Performance<Expectations 05 10 TOTAL 50 100 Inference 26% of the respondents have greater expectations than the actual performance. PUTTAPARTHI. Percentage 28 32 12 28 50 50 50 50 . 40% of the respondents are fully satisfied regarding maintenance. Table-9 Modes of purchasing Modes of purchasing Reasonable Price Least Maintenance Good Mileage Easy Installment No.A STUDY ON CONSUMER BEHAVIOUR TOWARDS E)Brakes F)Style G)Riding Pleasure H)Maintenance 07 0 0 02 14 02 13 16 16 14 08 12 13 34 29 20 Inference 68% of the respondents are fully satisfied regarding style.of Respondents 14 16 6 14 SAANSKRITHI SCHOOL OF BUSINESS. 14% of the respondents are fully satisfied regarding road grip. 58% of the respondents are fully satisfied regarding riding pleasure. 36% of the respondents are fully satisfied regarding performance. 20% of the respondents are fully satisfied regarding cold-start. 10% of the respondents are fully satisfied regarding mileage. 26% of the respondents are fully satisfied regarding brakes. PUTTAPARTHI. 38% of the respondents are fully satisfied regarding pick-up. Respondents 10 of Percentage 20 16 Dealers 08 08 D Unique Style 13 26 E Special Features 11 50 22 SAANSKRITHI SCHOOL OF BUSINESS. TOTAL 16 100 . PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Others TOTAL 10 50 20 100 Inference 28% of customers purchased due to reasonable price 32% of customers purchased because of least maintaince 12%of customers purchased of its mileage 28%of customers purchased due to easy instalments 20% of customers purchased for other reasons Table-10 FACTORS INFLUENCED THE PURCHASE FACTORS A Company B Users C No. it is clear that most of the respondents have been influenced to Hero Moto Corp KARIZMA ZMRbecause of its unique style.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Inference 20% of the respondents were influenced by Company. Table-11 Influence to buy Hero Moto Corp KARIZMA ZMR Influencing factors No. 16% of them were influenced by Users. 26% of them were influenced by its unique style and 22% by Special features. . PUTTAPARTHI. So. of respondents Percentage Friends 19 38 Relatives Advertisement 20 6 40 12 Others 5 10 Total 50 100 SAANSKRITHI SCHOOL OF BUSINESS. 16% of them were influenced by Dealers. of Respondents Percentage Satisfied 27 54 Not satisfied 23 46 TOTAL 50 100 Inference 54% of respondents are satisfied with the price SAANSKRITHI SCHOOL OF BUSINESS. PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Inference 40% of the respondents are influenced by relatives 38% are influenced by Friends 12% are influenced by advertisement 10% are influenced by other factors Table-12 PRICE Particulars No. . No Particulars 1 Satisfied Respondents 35 Percentage 2 Not satisfied 15 30 TOTAL 50 100 70 Inference 70% of the respondents are satisfied with this model 30% of the respondents are not satisfied with this model SAANSKRITHI SCHOOL OF BUSINESS. .A STUDY ON CONSUMER BEHAVIOUR TOWARDS 46% of respondents are not satisfied with the price Table-13 Model No. of S. PUTTAPARTHI. PUTTAPARTHI. . of Respondents Percentage Highly Satisfied 15 30 Satisfied 18 36 Moderately Satisfied 10 20 Dissatisfied 7 14 TOTAL 50 100 Inference The survey says 36% people are mostly satisfied with the performance of the Hero Moto Corp KARIZMA ZMR Also about 30% of the people are highly satisfied with the Hero Moto Corp KARIZMA ZMR SAANSKRITHI SCHOOL OF BUSINESS.A STUDY ON CONSUMER BEHAVIOUR TOWARDS Table-14 Overall Satisfaction with the Performance Satisfactory Level No. PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS 20% people are moderately satisfied. . There are also some people who are dissatisfied with the Hero Moto Corp KARIZMA ZMR CHAPTER – V FINDINGS & SUGGESTIONS Findings Suggestions SAANSKRITHI SCHOOL OF BUSINESS. PUTTAPARTHI. . Television gets the best place in the channel of advertisement for HERO MOTO CORP KARIZMA ZMR. SAANSKRITHI SCHOOL OF BUSINESS. Majority of the respondents of Hero Moto Corp KARIZMA ZMR are highly influenced by the special features of the product. Respondents are fully satisfied with the model of the HERO MOTO CORP KARIZMA ZMR. Majority of the customers were extremely satisfied with Style/Look and Comfort. Price has been considered justified for the value they got. Respondents say that friends are the influencing factor to purchase the HERO MOTO CORP KARIZMA ZMR. and its unique styling. Respondents mostly bought Hero Moto Corp KARIZMA ZMR by full cash payment. The main complaint encountered with Dealer is. many colors are not available in the showroom.A STUDY ON CONSUMER BEHAVIOUR TOWARDS FINDINGS: 50% of the respondents are students Generally the respondents were between 20-40yrs. Introduce more colors. Handle and balance should be improved to avoid accidents. Mileage is to be improved SAANSKRITHI SCHOOL OF BUSINESS. . PUTTAPARTHI. Road grip should be improved to avoid skidding of the vehicle.A STUDY ON CONSUMER BEHAVIOUR TOWARDS SUGGESTIONS: Improve facility to carry luggage. Advertisements should be the best method to advertise the products and popular among the public. Strong distribution network has to built to meet the needs of the both urban and rural customers. PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS CHAPTER – VI ANNEXURE Questionnaire Bibliography SAANSKRITHI SCHOOL OF BUSINESS. . .A STUDY ON CONSUMER BEHAVIOUR TOWARDS QUESTIONNAIRE A STUDY ON CONSUMER BEHAVIOUR TOWARDS YAMAHA NAME: OCCUPATION: AGE: 1.. SAANSKRITHI SCHOOL OF BUSINESS. Do you use any vehicle before buying Hero Moto Corp KARIZMA ZMR? ( a) Yes b) No If yes mention the name of the vehicle………………. 3. ) . Why did you prefer the bike? ( ) a) Necessary b) The image of the company c) comfort and safety d) Status e) others 2. PUTTAPARTHI. If Hero Moto Corp KARIZMA ZMR was not launched which vehicle would you have bought? Mention………………………………. A STUDY ON CONSUMER BEHAVIOUR TOWARDS 4. Others 5. what make you to purchase Hero Moto Corp KARIZMA ZMR? a. Magazine f. Company b. Unique Style e. Brand ambassador ( ) 8. Newspaper e. PUTTAPARTHI. Cash b. Special Features 6. Relatives d. Users c. ( . Satisfactory test: ) a. Do you feel that Hero Moto Corp KARIZMA ZMR needs more popularity? ( ) Yes No 7. Newspaper c. Dealers d. Friends c. Television b. How do you come to know about Hero Moto Corp KARIZMA ZMR? ( ) a. Bank Credit c. Actual performance of Hero Moto Corp KARIZMA ZMR is > your expectations b. which could be the best media to increase the sales? a. Specify the mode of purchase of your vehicle? ( ) a. Television b. Installment Credit 9. Actual performance of Hero Moto Corp KARIZMA ZMR is = your expectations SAANSKRITHI SCHOOL OF BUSINESS. In your opinion. Finance d. Hoardings d. May I know. Performance d. Mileage b. Road Grip e. Pick Up c. Are you satisfied with the price of Hero Moto Corp KARIZMA ZMR? ( ) a) Family members b) Friends b) Advertisement d)Others a) Yes b) No 14. Style g. What is the actual mileage per liter that you are getting from Hero Moto Corp KARIZMA ZMR? …………………. Who influenced you to purchase Hero Moto Corp KARIZMA ZMR? ( ) 13. KM/LT. SAANSKRITHI SCHOOL OF BUSINESS. Brakes f. Which among the best features attract you to purchase this bike? a) Reasonable Price b) Good Mileage c) Least Maintenance d) Easy Installment ( ) e) Others 12 . PUTTAPARTHI. Maintenance 11. Tick the following features of Hero Moto Corp KARIZMA ZMR: Particulars Not Satisfactory Satisfactory Partially Highly Satisfactory Satisfactory a. Riding Pleasure h. Actual performance of Hero Moto Corp KARIZMA ZMR is < your expectations 10..A STUDY ON CONSUMER BEHAVIOUR TOWARDS c. . SAANSKRITHI SCHOOL OF BUSINESS. Are you satisfied with the model? a) Yes ( ) b) No 16. Overall satisfaction with the performance of Hero Moto Corp KARIZMA ZMR? ( ) a) High satisfied b) Satisfied c) Moderately Satisfied d) Dissatisfied Thanks for your kind co-operation Signature.A STUDY ON CONSUMER BEHAVIOUR TOWARDS 15. PUTTAPARTHI. . google.heromotocorp.com http://www. . PUTTAPARTHI.A STUDY ON CONSUMER BEHAVIOUR TOWARDS BIBLIOGRAPHY Consumer Behavior - Della Bitta - Philip Kotler - Sontakki Marketing Management Marketing Management WEBSITE http://www.in SAANSKRITHI SCHOOL OF BUSINESS.co.
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