group 2 -cb report - factors affecting buying behaviour of premium segment hatchback car

8/18/2019 Group 2 -CB Report - Factors Affecting Buying Behaviour of Premium Segment Hatchback Car

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CONSUMER BEHAVIOUR PROJECT

FACTORS THAT AFFECT BUYIN

OF PREMIUM SEGMENT

HATCHBACK CARS

GROUP 5

PRESENTED BY

PRATICK CHOUDHURY -uemf15022

ASUTOSH DAS -uemf15004

BIBHUDUTT MISRA -uemf15006

SUMEET PATNAIK -uemf15029

SRIJEET MISHRA -uemf15028

NITIN THAKUR -uemf15020


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TABLE OF CONTENTS

Acknowledgement ........................................................................................................................................ 3

Introduction ................................................................................................................................................... 3Methodology ................................................................................................................................................. 4

Qualitative Research ..................................................................................................................................... 5

1. PROBLEM DEFINITION ....................................................................................................................... 6

2. SPECIFY OBJECTIVES OF QUALITATIVE RESEARCH ............................................................................ 6

3. STATE QUESTIONS/OBJECTIVES TO BE ANSWERED BY FOCUS GROUP ............................................ 6

4. WRITE A SCREENING QUESTIONAIRE? .............................................................................................. 8

5. DEVELOP A MODERATORS OUTLINE ................................................................................................. 8

6. CONDUCT THE FGD ........................................................................................................................... 9

7. REVIEW TAPES AND ANALYZE DATA ............................................................................................... 10

8. SUMMARIZE THE FINDINGS ............................................................................................................ 21

Secondary Research Data analysis .............................................................................................................. 25

Conclusion/Marketing Implications ............................................................................................................ 27

Limitations of the Study .............................................................................................................................. 28

Reference .................................................................................................................................................... 28


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Acknowledgement

The report submitted could not have been prepared without help and counsel from various sources. We

would like to thank all of them for having spared their valuable time and helped us out. Sincere thanks

to Prof. M. N. Tripathi, our course instructor, who was very forthcoming with any guidance or

clarification that we required. Special thanks to all the respondents for giving their valuable inputs.

Introduction

The automotive industry in India is one of the largest in the world with an annual production of

23.37 million vehicles in FY 2014-15, following a growth of 8.68 per cent over the last year. The

automobile industry accounts for 7.1 per cent of the country's gross domestic product (GDP).

Indian consumers want value for money products and services. The result is that many car

manufacturer companies focus on the hatchback segment.

Hatchback cars are those cars that have an access to the interiors once the rear door is open

and

also the luggage space is integrated with the passenger cabin and the rear seat can be folded or

removed to increase the luggage space. The two row seater small compact cars are categorized

as

Hatchback cars. Due to its low pricing, better mileage, low maintenance and most importantly

perfect for drive in city's heavy-traffic, it has become the most selling car segment.

Hatchbacks occupy less parking space and is suitable for the metros where parking space is a

major problem.

The image of small compact cars is changing from that of the ideal vehicle for budget conscious

middle-class consumers to something that is increasingly popular with wealthier buyers, thanksto the introduction of more stylish customized models.

Indian automobile market , especially for hatchbacks has been considered to be having large

potential with the launch of series of face lifted premium hatchback cars in India and many

more are yet to be launched. It seems the car manufacturers are aiming to revamp the entire

small car or the hatchback segment. Comparing to last year, the new models of small cars has

almost doubled this year with a number of premium segment hatchback cars entering into the

market and getting wide consumer sales and response.


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Methodology

Secondary research was carried out mainly by internet references via google and data specific

sites like EBSCO database etc.Primary research was done by conducting 2 focus group

discussions to understand buying behaviour while buying premium segment hatchback cars, as

instructed.


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Qualitative Research We conducted 2 focus group discussions.

Steps to conduct FGD :


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1. PROBLEM DEFINITIONThe project is aimed to know the “consumers behaviour while buying premium segment

hatchback cars”.

The following study carries the potential to analyze and determine the consumer’s perception

and their buying behavior on the basis of premium segment hatchback cars available in Indiaand premium features available in those cars, road condition, purpose of buying premium

segment hatchback car, brand value, service etc. It also helps to know the point of

differentiation between consumers why they go for different premium features and cars.

2.

SPECIFY OBJECTIVES OF QUALITATIVE RESEARCH

The automobile industry in India is growing at the faster rate due to mushrooming middle class

with higher disposable income. This has resulted in increase in the purchase of four wheelers

particularly in the hatchback segments of automobiles. India represents a huge market in

hatchback cars and the propensity to purchase is increasing day by day.

The objective of this research is to analyze the preferences of young and middle age urban

professionals, in the Premium hatchback segment.

3. STATE QUESTIONS/OBJECTIVES TO BE ANSWERED BY FOCUS GROUP

Rapport Building:

Please introduce yourself?

What is your background (hometown, education, work experience)?

What is your daily routine?

Do you own a car?

Do you like driving a car?

Understanding Consumer Behaviour: If you want to buy a car within 7-9 lakhs, then what will you prefer?

What do you see before buying a car?

What segment do you see before buying a car?

If given a budget a 7-9 lakhs and with options what will you go for?

5 Do you feel resale value is important?


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How do promotion events motivate you?

Do country of origin is important before buying a car?

Do your friends/relatives/peer group influence your decision making?

What will you prefer diesel/petrol car? Why?

Does mileage play a role?

If you are choosy, petrol or diesel what is it that makes you spend 1 lakh more?

Recently we heard about the incident of Volkswagen case regarding pollution there

was lot of issues thus does that impact buying behaviour?

Does sustainability play a role?

Are services or product important?

If you have long waiting period of 1-3 months for your choice car, but other segment

cars are easily available, will you go for others?

Specific to topic:

What premium features do you look for?

What do you search for buying a premium segment hatch back car?

Do you think you get any benefit for a buying a premium segment car?

Does any Ad or promotion measures motivates/persuades you to go for a premium

segment hatch back car?

Is it services or product? What do you see before buying a premium segment hatch

back car?

Premium Segment Hatchback cars according to us:

• Maruti Suzuki Baleno

•

New Honda Jazz

• Volkswagen Polo

• Toyota Etios Cross

• Ford Figo (New)

• Hyundai i20,i20 Active,Elite i20

• Fiat Punto,Punto Evo, Abarth Punto


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• Skoda Fabia

• Nissan Micra

• Maruti Suzuki Swift

• Renault Pulse

• Tata Bolt

Premium Features according to us:

• Steering mounted control

• Leather Upholstery

• Rear AC Vents

• AC with Automatic Climate Control and Defogger

• Touch Screen Infotainment system with Navigation and bluetooth connectivity

• Leg Room and Boot Space

•

Electronic ORVM ( Rear View mirror auto foldable)• Instrument Cluster

• Reverse parking camera with sensor

• Projector Headlamps

• Day Time running lights (DRL)

• Alloy Wheels (Diamond Cut or others)

•

Roof rails

• Design/Looks

• Sun Roof

4. WRITE A SCREENING QUESTIONAIRE?

Based on all the questions that we had decided as a group,we again sat back to decide

which all will be relevant questions to solve the purpose of FGD.There were some questions

that deviated us from the objective of conducting this FGD.

5. DEVELOP A MODERATORS OUTLINE

All 6 of us involved are automobile enthusiasts and are very much inline with the recent

trends in automobile industry. We have also been to trade shows by various automobile

manufacturers and also take active interest in discussing about latest car launches their

features,drawbacks and competitive advantages over others and with recent boom in

automobile industry we are never out of news or discussions.


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Although we had one moderator for both our FGD’s but others also pitched in between only

when there were valid points or questions that were missed out or could be pitched in to

get further into the topic.

6.

CONDUCT THE FGD

The FGD was conducted on :

1. On 13th Jan with 10 attendees at XIMB.

2. On 24th Jan with 10 attendees at XIMB.

The demographic profile of respondents in our FGD is as follows :


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7. REVIEW TAPES AND ANALYZE DATA

The transcript of both the FGD conducted is as follows:

FGD 1 :

Location- XIMB,

BHUBANESWAR

DATE:

13th JAN 2016

NO. OF ATTENDEES

10

NO. OF VIDEOS

2

Moderator1 - Good afternoon all. Thank you for giving us your valuable time. We would like to

have a discussion on buying behaviour for Premium Segment Hatch Back cars.

We would be asking you some questions and we will record your answers for the purpose f our

study.

Let me now start with the first question:-

What are the factors that you would look for while buying a car?

Participants – Mileage, Critic reviews, Drive quality, Performance and handling, Safety, Comfort,

latest features, value for money, Word of mouth, Price and Budget.

Moderator 1 - What segment of passenger vehicle would you go for like Sedan or SUV or MUV

or Hatch Back etc.?


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Participant 1- I would like to go for a hatch back because of easy parking and mileage is also

better.

Participant 5 – Considering the Indian road conditions, I would like to go for a SUV but in that

case i would not look for mileage while making my buying decision.

Moderator 2 – Suppose you have a limited budget, then what would you do?

Participant 5 – In that case i would look for bet car under my budget most probably will go for a

MUV like duster or eco sport etc.

Participant 6 - I would also like to go for a SUV but seeing the increasing traffic in cities, a hatch

back would be a better option.

Participant 8 – I would like to go for a sedan because of the space available for luggage and all

the more SUVs are quite heavy and difficult to handle in corners, sedan would be my first

choice.

Moderator 2 – For example the new Baleno from Maruti Suzuki is a good vehicle with all the

features like a sedan except for the luggage space, would you go for it.

Participant 8 – Yes n that case I may think of buying a premium segment hatch back.

Participant 9 – I would also go for a hatch back with all premium features because currently I

am myself having a hatch back and I am quite happy with it.

Participant 10 – I would like to go for a SUV because I like to go for long drives and off roading.

Moderator 2 – Considering the size of your family, would you go for a hatch back or SUV or

sedan.

Participant 10 – Yeah considering my family size, I would definitely go for a hatch back.

Moderator 2 – Ok now let’s move on to our next question.

Considering a budget of 10lacs,we have listed down some hatch back cars which come under

the premium segment. Which one would you prefer out of the list shown on the screen.

Participant 10 – I would like to go for a Honda Jazz because of its looks.

Participant 9 – I would like to go for Abarth Punto because it has very powerful engine.

Participant 8 – I would like to go for Swift because of its power and also handling.

Participant 7 – I would also go for Swift because it serves my purpose and its quite spacious

also.


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Participant 6 – I would like to go for Baleno because the new features are quite good.

Moderator - What are the features you look for in a premium segment hatch back car?

Some of the common features are shown over the projector screen which we think are

important in a premium segment car.

They are – 1. Steering mounted music system control.

2. Rear AC vents and AC with climate control and defogger.

3. Touch screen infotainment system.

4. Leg room and Boot space.

5. Electronic ORVM

6. Instrument cluster.

7. Reverse parking camera.

8. Projector head lamps etc.

If you want you can add some more features or else you can say wat are the features that are

important for you.

Participant 1 – The features that were mentioned here are no doubt the most important

features but apart from these I would like to add another feature i.e. water sprayer for the rear

screen glass along with the wiper system.

If the cars would have that in built with the wiper system, it would be better.

Participant 2 – I don’t have much idea about the performance nd related things, so all he

features that were shown would be important for me.

Participant 3 – I don’t know much about cars and vehicles.

Moderator 2 – One question for you madam, if you are going to buy a car, who would your

decision maker while making the final decision to go for which car?

Participant 3 – It will most probably be the sales person.

Moderator 1 – A sales person can always advice you about the cars but ultimately who would

be your decision influencer?

Participant 3 – Yes I would always ask my friends and family members to help me out in

choosing the car but ultimately it would be my decision.


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Participant 4 – I don’t think rear AC vents are required for Hatch back cars. They are mostly

required in SUVs and MUVs like Eco Sport etc.

Moderator 2 – But considering a premium segment hatch back car, what would be the features

you would like to have in the car of you choice like will you like to have leg space and also like

projector head lamps etc.

Participant 4 – Day time running lights would be very important for me as it is a fashion and

also provides safety by letting others know about the presence of my car.

Participant 5 – Actually I would like to add some more features to the list that has been

displayed. There is no safety features mentioned here like airbags and ABS etc.

Moderator 1 – Air bags like front, back ad side.

Participant 5 – Anything would do, actually it depends on the company which I would be

choosing because for me the most Important will be safety like Hyundai which is now providingboth front and back airbags.

All these features displayed here are not mandatory but safety features is a must.

Moderator 2 – Actually we are considering here that all the necessary safety features are

present in the car. We are asking that out of all these features mentioned here, which are the

most important features you would like to have in the car that you would be buying.

Participant 5 – I think almost all the features that are mentioned, I would like to see in my car

like Projector head lamps, day time running lights, reverse parking camera etc will be a must.

Moderator 1 – Would you eliminate the car if any of the features is not present in the car you

have selected?

Participant 5 – Actually i would not eliminate or reject the car but i will refresh my thinking and

consider some other features to be important.

Participant 6 – I would like to have all the features mentioned here but apart from all these for

me the important will be the ground clearance considering the roads in India.

Participant 7 – As it has already been mentioned that we have to choose among these features,so I would like to go for Touch screen infotainment system, Rear AC vents with automatic

climate control, steering mounted music system controls etc.

Moderator 2 – So if you are considering rear AC vents, it means that you are occupying the back

seat of the car mostly.


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Participant 7 – No it doesn’t mean that but yes rear ac vents are a comfort for the people

preferring back seat.

Participant 8 – For me mostly the touch screen infotainment system will be important and rest

all features are necessary but not mandatory.

Participant 9 - Some of the features like projector head lamps, sun roof, day time lights arepretty much important for me without which I would not go for the car or would go for some

other car with these features.

Participant 10 – Same for me also, i would like to have all these features along with a

convertible roof which is quite difficult but having that would make me go for the car that i

have selected instantly.

Moderator 1 – Ok now we would go for the next question that is the persons who consider

resale value to be important for buying a premium segment hatch back car, please raise your

hands.

Participant 1, 2, 4, 5 and 6 raised their hands and said that now a days the competition in

automobile sector particularly cars has increased to a big extent and within a span of 3 to 4

years you have to change or resale your car in order to go for a new vehicle.

Participant 7 – For me resale value is t important because for a middle income group person,

once he or she buys cars means it is lie minimum 7 to 8 years before his next vehicle and after 7

to 8 years resale value is not that important.

Moderator 2 – Do you think that all the promotional activities that are done by the companiesimportant or not.

Participants – Yes it is important but not that much because ultimately it depends on the buyer

and not these events for the sale of the car. Test drives can be helpful to some extent.

Participant 1 – I would like to say something on this that many persons get influenced by road

shows or sales persons or may be someone close to them for example if someone who hasn’t

ever bought a car will easily get influenced by his friends or may be also they will want to be

helped by the road shows and test drives or sales man before buying a car.

In this type of situation, availability of funds, sales person’s capability of motivating and most

importantly to push sell matters a lot.

Moderator 1 – Is availability of financials like loans and EMIs important for making a buying

decision of a premium segment hatch back car?


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Participants – Yes it is important depending on your standard of living and the car you are going

to buy.

Moderator 1 – Would you like to go for petrol or diesel car considering just a difference of 1

lakh between them?

Participants – Petrol cars.

Participant 1 – It depends on your amount of travelling.

Participant 10 – If you are travelling long distances daily then a diesel car would be better.

Participant 4 – Depends on availability of EMI option, I would prefer or go for a diesel car.

Participant 6 – Only difference I see between a petrol and diesel car is the maintenance and the

sound that is produced by diesel engines.

Moderator 2 – Is brand value important?

Participants – Yes brand value is important and the most important brands are Honda, Maruti

Suzuki and Hyundai.

Moderator 1 – Is it service or product that you think is important for you?

Participants - After sales service is most important now days.

Participant 3 – After sales service is the best with Maruti Suzuki.

Moderator 1 – Considering Sustainability marketing important now a days, does it affect thebuying decision for a premium segment hatch back car.

Participants – Yes it is important now days.

Participant 8 – It is important because considering the near future of pollution free cities, cars

using green and pollution free technology is very important.

Moderator 2 – I guess mileage is important for all. Last question is country of origin important

for buying a premium segment car?

Participants – No not that much important as most of the people don’t know the country of

origin and also now a days there is no much difference between the cars of different

companies.

Moderator 1 and 2 – Thank you all for providing your valuable time to this group discussion and

we hope you all had a good time.


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FGD 2 : FGD -2, MODERATOR: NITIN, SRIJEET & PRATICK

Location- XIMB,

BHUBANESWAR

DATE:

24th JAN 2016

NO. OF ATTENDEES

10

NO. OF VIDEOS

4

Moderator: Pratick

OK, before we begin the interview itself, I’d like to confirm that you have read and signed the

informed consent form, that you understand that your participation in this study is entirely

voluntary, that you may refuse to answer any questions, and that you may withdraw from the

study at any time.

1st Question

Moderator: If you want to buy a car what are the 1st attributes that you would look at?

Passing the mic sequentially,starting from participant1

Participant 1: safety and looks will be my 1st priority before buying a car.

Participant2: The Purpose for which you are buying a car and also depending on your budget.

Participant 3: Mostly I would like to prefer comfort.

Participant4: I would prefer Safety and Comfort.

Similarly the moderator asked individually to all the participants and their minimum

requirements are Service and Interiors of car , one of the participant said he would prefer to

go for Baleno looking at his interiors and after sales service provided by MARUTI and whereas

other participants continued saying : looking at the INDIAN Streets minimum safety features,

GPS , Perfect driving car, safety, space, mileage whereas interior doesn’t matter for one of

the participant but obviously comfort , good looks and better engine.

Then the moderator continued asking 2nd question

What type of car would you normally prefer, like Options are Hatchback, SUV like Duster,

Sedan say for Audi, Chevrolet Cruze and MUV?

Most of the Participants replied to the question that they would prefer SUV like Duster

because it comes with all the features like safety, comfort, more spacious and kind of strong


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car, surprisingly a female participant she said that “ I would prefer a SUV because it comes

with all features rather more than a sedan and Premium Hatch Back or only Hatch Back car

has.

Moderator replied listening to that : SUV will be like kind of Big Bulky and will not be more

convenient than a hatch back specially in Indian Roads , looking at these problems would you

still go for SUV ?

Then One the participant replied to it: “SUV is best while driving in the city roads but SUV will

not be convenient for village roads and where the road space is too small for hatchback itself.

Moderator Asutosh continued saying that “ If given is the constraint like you don’t have much

parking space in your own house to park a SUV or a sedan then what type of car would you

prefer ?

Participant replied to it : Looking at the space constraint , I would prefer a hatch back car but if

space is not the constraint then, I would prefer bigger one looking at the longevity of the car.

Whereas another participant said that: “Nowadays you can see new technology coming to the

market and market is growing very fast like for example Hyundai i20 it has come with a feature

similar to the feature of SUV , and SUV is also getting small , engineers are trying to fit all the

features of SUV in a premium hatch back car. Like for example Baleno looks like small SUV.

Some of the participants replied that: They would prefer premiumHatch Back because it is

more comfortable than a SUV and Sedan and have all the features and comfort, mileage and it

can accommodate in small parking space.

Moderator continued saying: (Looking at the slide in the Projector Screen) “ These are listed

some premium Hatch back Cars like Maruti Suzuki Baleno, New Hyundai i20, Honda Jazz

Volkswagen Polo, Toyota Etios Cross, Ford Figo (New), Nissan Micra, Renault Pulse, FiatPunto.

So, Among these cars which car would prefer and why ?

Partcipant1: I would prefer Honda Jazz because I trust the brand “ Honda”

Partcipant2: (Not willingly he replied that, as his choice was SUV ) : Going through market trend

and analysis , I would prefer Hyundai i20 Elite as it all the features that a sedan has in it.

(Participant4) He did not reply as he is not interested in Hatch Back Cars.

Partcipant4: I would go for Fiat Punto, because I owned a Fiat Punto and I am very comfortable

with it.

Participant5: I would prefer Hyundai i20 elite because of its looks, safety features, comfort and


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has good handling.

(Partcipant6, Participant7& participant8) : They would go prefer Volkswagen as the Volkswagen

engines are trustworthy, famous for German Engines and Volkswagen is one of the best brand.

Partcipant9: I would go for i20 because the brand Hyundai is constantly evolving like change in

their strategy , they are constantly changing the design looking at customer perspectives.

Participant 10 : I would prefer to go for Hyundai i20 Activ as it is best for Indian Roads and most

of the features are present inside the car and is best among other cars.

As most of the participants preferred to go for Hyundai, Honda and Volkswagen hatch back.

So Moderator asked question to all the participants Why not Maruti Suzuki Baleno as it has all

the features and Maruti is also very reputed brand ??

(Participants continued saying that as the Car Baleno is new to the market, they don’t want to

take risk whether car will continue for long run or not, they want to observe for few years how

is the car performance and demand in market ,only then they can decide.)

One of the participant said : If you go by Maruti Suzuki Swift , it has lot of credibility, lot of

people have bought it and people are also buying the car till today if same craze Baleno

continues for few years just like swift , then they can prefer to go for Baleno .

Whereas some of the participants said that (those who prefer Hyundai) : They have already

rode Maruti and Hyundai Cars , and they would not prefer Maruti because they said driving

experience of Hyundai is much better than Maruti .

Now Moderator looking at the participants moving to the premium features listed in the

screen like Steering mounted Mirrors, Rear AC Vents, AC with automatic control, Touchscreen

Infotainment System with Navigator, Leg Room and Boot space, Electronic OVRM

• Instrument Cluster

• Reverse parking camera with sensor

• Projector Headlamps

•

Day Time running lights (DRL)

• Alloy Wheels (Diamond Cut or others)

• Roof rails

• Design/Looks

• Sun Roof


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Among all these features which would you like to prefer? Considering Safety features is

minimum requirement, apart from these what more features you would like to prefer???

One of the participant replied: “I would prefer minimum AC rear vents with automatic climate

control, projector headlamp.

Then Another participant said: “I would look for minimum Touch Screen Infotainment systemand Leg Room & boot space because of my height “

Participant 3: I want to have at least reverse parking camera.

Participant 4(female participant): From this list which is displayed on screen, I would prefer

legroom and boot space, reverse parking camera and projector headlamps.

Similarly other participants (most of them ) said that they want automatic Climate Control,

legroom and boot space, projector head lamp, and some of participants replied that they want

Alloy wheels, Electonic OVRM, steering mounted mirrors and rear camera.

Then Moderator Pratick continued asking that : Are services or product important ?

Listening to the question, within a fraction of second all the participants replied at a time that

Services are very important before taking any decision for buying a car .

Then the moderator continued saying that: Recently we heard about the incident of

Volkswagen case regarding pollution there was lot of issues thus does that impact buying

behaviour???

Suddenly one of the participant (Deepak) : He replied “It does , I have a friend who owned a

Volkswagen Polo, after the news was flashed in the media, the behaviour of Volkswagen team

also got changed, they are not responding in proper way what they were doing before.

Then another moderator (Asutosh) asked : Do you think the news of Volkswagen case would

impact after sales service ?

(Then one of the participant replied to it : That “yes it would impact the after sales service, the

brand would try to improve their after sales service and to maintain their image )


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Moderator Pratick Continued asking : Diesel or petrol car ? What do you prefer for premium

hatch back? Does it matter?

(All the participants replied to it: Petrol because of Power , smooth driving, cause less pollution

and only one participant replied for diesel for better mileage and he loves long driving.)

Then Asutosh (Moderator) he continued asking : Does it anything consider to your previous carthat you had or is it just your own preference ?

Then one of the participant replied to it : “ I have already experienced driving a petrol an d

diesel car , riding a petrol car has its charm .

Pratick asked the next question that : Raise your hand those who feel resale value of car is

important before buying ?

(Few said yes and most of them said no )

Then Suddenly one of the participant replied : Yes , when you buy a car worth Rs 9 lakhs or 10

lakhs after few years you are selling it with a very low price Rs 2lakhs or 3 lakhs , it not fair and

convenient for yourself , it should be more convenient when you sell a car.

But other participant replied that : No, I would not prefer to sell my car because when you buy

a car worth Rs 9 lakhs you get attached emotionally to it .

Then Moderator Pratick again asked question : What about promotional events ? Does it

motivate you to purchase the car ? like cars show that happens infront of Sandy’s Tower or is it

the Ads or would you like to go the showroom and feel like knowing about each car ?

Participant 1 replied : Before purchasing any car, I would prefer to see the reviews through

media channel and surfing in the websites to know the rank and ratings of the car and you can

compare features and specs in the websites.

Another participant replied that he would used to go through magazines to know the rankings

and ratings of the car .

Then Asutosh (Moderator) he started asking question : Is it the need to buy a car or is it theinfluence of ad that makes you craze for particular car or persuades you ??

Female Participant replied to it : “ It is the need to buy a car “ and for all the participants

answer was same it is the need to buy a car !!!

End of FGD .


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“Is there anything else that you would like to add? “ Asked by moderator.

There was no response from participant side.

Thank you for coming & sharing your views. Handshake!!!!

8. SUMMARIZE THE FINDINGS

FGD – 1 (Inference & Findings)

Inference: Hatchback is the most preferred segment these days while some went for SUV

given the traffic conditions prevailing in India and use.

Segment of passenger vehicle preferred: When asked to the participants we got a mixedresponse in Which few respondents considered that it was better to go for a SUV due to the

road conditions in India and some said that going for a sedan would be good as it gives ample

amount of space for the passengers along with luggage space. They were asked in case of low

budget and increasing traffic conditions in India it’s better to go for a sedan rather than going

for an MUV, SUV or a Sedan. Here we come to know that although people have preferences to

go for stylish look with great features in the car as it is a status symbol for many people and in

fact it works out to be a convenient option in case some people stay in an extended family.

Most of the respondents agreed to the point that it would be better to go for a hatchback

rather than going for other categories of car types the reason being the external factors such as

traffic, Price, family size, Space and premium features.

Inference: Features (interiors and exterior) & Safety are the most important attributes which

People Look before buying a premium segment hatchback car.

Hatch back premium cars (Range: 10 Lacs): Some attributes like looks, powerful engine, Space,

Features were preferences of the respondents. Apart from the costs that they were asked to

respond on they were more interested in the benefits that they were looking from the

investment that they were going to make, We found that it is very important for a respondent

to get the value of money. Also there were many features of the premium segment cars which

were displayed amongst which the respondent chose the following to be the most important

factors which they would be looking for while buying a car:

Steering mounted music system control.

Rear AC vents


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Touch screen infotainment system.

Leg room and Boot space.

Reverse parking camera.

Projector head lamps

water sprayer

Day time running lights Air bags- Front and Rear

We received various views from different respondents some said the above mentioned points

are important but apart from that it would be good to have Air bags, convertible roof, Sun roof

etc.

Inference: Family members, sales personnel and friends influence buying decisions before

buying a premium segment hatchback car.

Also a point was discussed as to who would be the Influencers in the buying decision we got a

few answers among which the topic was rotating among Family members, sales personnel and

friends.

Inference: Resale value is one of the most important attributes which People look before

buying a premium segment hatchback car.

A resale value of the car was very important to some of the respondents as they would like to

enjoy the benefit after giving up the car, We got around 6 people who were in for of the resalevalue which was an important factor for them.

Inference: Ads & Promotional Event just creates a spark in customers but it is sufficient to

persuade them to do Transaction.

Significance of Promotional activity: A promotional activity done by the various Brands is an

important activity as per the respondents the reason being people get influenced by the first

touch (MOT) after experiencing the benefits which can happen either by a sales man giving

demo, Road shows or by taking a test drive.

Inference: Based on family size financial assistance is taken and it is common now days as all

automobile companies provide financial services before buying premium segment hatchback

car.


23/28

Importance of Loans and EMI: "A standard of living defines the car type" Responded a

participant, we came to know that how important it is in today’s economy to understand the

value of earnings that are made, There are many factors to be considered in case of Nuclear

and extended family to consider the factors affecting the earning, spending and saving

decisions.

Inference: Petrol Engine is preferred over Diesel Engine.

The amount spent on petrol cars are more as compared to diesel cars but now the value is quite

insignificant however an important factor would be amount of distance being covered on daily

basis by the owners which affects their decision of choosing a petrol engine over diesel.

Inference: Most respondents Indian brand (like Maruti) is preferred for its reliability,features

in Baleno,resale value .

Importance of Brand Value: A brand value was found to be very important factor for therespondents as we get responsiveness, assurance and reliability. The after sales service is also

imperative to many consumers or to be specific the owners of the hatch back cars as a bonding

is created with the brand by providing such type of services which in turn proves to be a driving

factor for brand loyalty. Now a days people are more tilted towards green sustainable products

and as it is dependent on the decision of the consumer as to what responsibilities should be

addressed keeping in mind the life style and the society. Most of the respondents preferred

Maruti Suziki for features,resale value and after sale service.

FGD – 2 (Inference & Findings)

Inference: Comfort & Safety are the most important attributes which People look before

buying a car.

Maximum respondent “when asked what are the important attributes you will prefer before

buying a car”, said Mileage, Comfort & Safety. Although few of them also said that they will be

looking for their usage, budget, interior, premium features etc but we found, these three was

on the main focus.

Inference: SUV is the most preferred segment these days.


24/28

Almost all the respondent (except few) expressed their desire to buy SUV, when given the

option SUV, SEDAN & HATCHBACK because of its comfort, looks & power.

Few of them have said that they will be buying a hatchback because of the parking space

constraints in cities.

Inference: Slowly consumer preference is changing from SUV to Premium

Hatchback/Compact SUV with all the features present.

Premium Hatch back / Compact SUV with all the features & comfort that of Sedan & SUV (like

new i20) will be in demand as it takes limited space to be parked in City or in house. This

segment could be the new trend for young India.

Inference: Indian brand (like Maruti) is preferred for its reliability whereas foreign brand (like

Hyundai) is preferred for good driving experience.

As per the respondents, Maruti swift is preferred over other brands for reliability whereas

Hyundai i20 Elite is preferred over other brands for the good driving experience.

On the contrary, In spite of having several features New Baleno of Maruti is not the preferred

choice against Hyundai as it is new to the market & is not a proven one as of date.

Inference: Regarding the premium features, all have different choices.

Some like boot space, some preferred AC rear vent, Projector lamps & roof rails are also the

choice of others. So, it’s not easy to shortlist one or two options for premium features, Rather

Company should focus on customization for features as per the demand of the customers. This

will increase the value of their product.

Inference: After sales Services are very important & it affects the buying behavior.

This is the reason why Maruti is No. 1 in normal hatch back segment. Also these days Hyundai&

Honda have increasing market in India because they are focusing on their after sales service.

Inference: Petrol Engine is preferred over Diesel Engine.


25/28

Petrol Engine is preferred because of Power, smooth driving, low maintenance cost & causes

less pollution.

Inference: Resale value is not an important factor these days

The respondent said that they will not prefer to sell their car immediately once they will buy

that & by the time when they will sell the same, whatever price they will be getting, It will be

acceptable.

Inference: Ads & Promotional Event just creates a spark in customers but it’s not sufficient to

persuade them to do Transaction.

As per the respondents, they will prefer to do a whole lot of exercise before buying a car

because they are going to invest a huge chunk of their money there. Also, people said that it is

always the need which persuade them to buy a car & to Advertisement & promotion.

Secondary Research Data analysis

First-time buyers’ changing tastes result in a decline in market share for small cars such as

Maruti Suzuki’s Alto and Wagon R, Hyundai’s Eon and General Motors Chevrolet Spark.

Vikrant Mhatre, an executive at a Mumbai-based research firm, bought his first car. The23-year-old opted for Hyundai Elite i20 Asta 1.4 CRDi—the top-end model of the

premium compact car that costs Rs.7.99 lakh (ex-showroom, Mumbai).

He wanted a hatchback with sedan-like features. And so he bought a sporty-looking car

with a push-button starter, rear AC vents and glove-box cooling that keeps drinks

chilled, besides other frills that are associated with a higher-end category.

Mhatre’s choice shows how the first-time car buyer in India has changed. Not only are

people buying cars at a younger age, they want more than just four wheels and an

engine.

The result is a decline in market share for small cars such as Maruti Suzuki (India)

Ltd’s Alto and Wagon R, Hyundai Motor India Ltd’s Eon and General Motors India

Ltd’sChevrolet Spark. The market share of small, inexpensive cars priced at

between Rs.2.66 lakh and Rs.5 lakh has shrunk to 20% in the first 10 months of 2014-15

against 27% in the same period of 2011, according to the Society of Indian Automobile

Manufacturers (Siam).

http://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki%20(India)%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki%20(India)%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki%20(India)%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Altohttp://www.livemint.com/Search/Link/Keyword/Wagon%20Rhttp://www.livemint.com/Search/Link/Keyword/Hyundai%20Motor%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Hyundai%20Motor%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Eonhttp://www.livemint.com/Search/Link/Keyword/General%20Motors%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/General%20Motors%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/General%20Motors%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Chevrolethttp://www.livemint.com/Search/Link/Keyword/Chevrolethttp://www.livemint.com/Search/Link/Keyword/Chevrolethttp://www.livemint.com/Search/Link/Keyword/General%20Motors%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/General%20Motors%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Eonhttp://www.livemint.com/Search/Link/Keyword/Hyundai%20Motor%20India%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Wagon%20Rhttp://www.livemint.com/Search/Link/Keyword/Altohttp://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki%20(India)%20Ltdhttp://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki%20(India)%20Ltd


26/28

Domestic car sales rose 3.62% to 2,125,551 units in the first 10 months of the fiscal year

that will end on 31 March (FY15); of this, the entry-level small cars accounted for

430,609 units.Overall, the share of all small cars in the passenger vehicle market has

fallen from 68% in FY11 to 52% so far in FY15, while the share of higher-priced segments

(sedans and utility, sport and multi-purpose vehicles) has risen from 24% in FY11 to 41%

in FY15 so far, Abhijit Naik and Nitij Mangal, analysts with CLSA India Pvt. Ltd, wrote in a

23 February research report on Maruti Suzuki. Even within the small car segment,

demand has moved from entry-level small cars to premium small cars.

As per analysts, when new safety norms kick in by 2017, which will make features like

anti-lock braking system mandatory for all models, sustaining the current entry-level

prices would be difficult and that may mean the end of the road for entry-level small

cars.

The local arms of Toyota Motor Corp., Ford Motor Co.,Volkswagen AG, Nissan Motor

Co. and Renault SA, among others, which were once betting on the segment, have met

with a tepid customer response to the small cars they have introduced over the last five

years. Encouraged by the low-car penetration in a country where only one person out of50 possesses an automobile, these automobile makers launched small cars to notch up

quick market share gains, but came up short.Cumulatively, sales of entry-level models

including the Alto, Figo, Spark, Eon, Micra, Maruti 800 and Nano dropped from 570,294

units in calendar year 2012 to 366,550 units in 2014, according to IHS, an automotive

consulting firm. Even the more recent launches such as Nissan’s Datsun Go have not

lived up to sales expectations.Competition in the Indian passenger car market

essentially remains a two-horse race between Maruti Suzuki, which raised its market

share to 50% in 2014 from 46% a year ago, and Hyundai that has a 21.24% share.Car

makers are now positioning their small cars in the premium segment of the compact car

market, seeking to attract both first-time and regular users.

Customer focus is a major differentiator in the passenger car industry, wherein the

customer looks for personalized care and after sales service with the manufacturer /

distributor.

Since there is a major percentage of commoditization in the automobile industry, due to

the many choices of brands available, manufacturers have to look internally, if they are

making enough growth in the industry, whether it is due to their incompetence or

reduced levels of customer satisfaction.

Peer group is the greatest influencing factor for the youth in their car purchase decision.

Middle class customers, who seek to enhance their ego, Influenced by their children,who are well informed about the rapid technological changes happening in the auto car

segment, in their car purchase decision.

In a highly customized car market, differentiation based on traditional parameters such

as engine, performance and power, is giving way to comfort in driving, interior and

exterior design and the like. This is corroborated by a similar study conducted by Cogito

Consulting.

http://www.livemint.com/Search/Link/Keyword/Abhijit%20Naikhttp://www.livemint.com/Search/Link/Keyword/Nitij%20Mangalhttp://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki.http://www.livemint.com/Search/Link/Keyword/Toyota%20Motor%20Corp.http://www.livemint.com/Search/Link/Keyword/Ford%20Motor%20Co.http://www.livemint.com/Search/Link/Keyword/Volkswagen%20AGhttp://www.livemint.com/Search/Link/Keyword/Nissan%20Motor%20Co.http://www.livemint.com/Search/Link/Keyword/Nissan%20Motor%20Co.http://www.livemint.com/Search/Link/Keyword/Renault%20SAhttp://www.livemint.com/Search/Link/Keyword/Nissanhttp://www.livemint.com/Search/Link/Keyword/Nissanhttp://www.livemint.com/Search/Link/Keyword/Datsunhttp://www.livemint.com/Search/Link/Keyword/Datsunhttp://www.livemint.com/Search/Link/Keyword/Nissanhttp://www.livemint.com/Search/Link/Keyword/Renault%20SAhttp://www.livemint.com/Search/Link/Keyword/Nissan%20Motor%20Co.http://www.livemint.com/Search/Link/Keyword/Nissan%20Motor%20Co.http://www.livemint.com/Search/Link/Keyword/Volkswagen%20AGhttp://www.livemint.com/Search/Link/Keyword/Ford%20Motor%20Co.http://www.livemint.com/Search/Link/Keyword/Toyota%20Motor%20Corp.http://www.livemint.com/Search/Link/Keyword/Maruti%20Suzuki.http://www.livemint.com/Search/Link/Keyword/Nitij%20Mangalhttp://www.livemint.com/Search/Link/Keyword/Abhijit%20Naik


27/28

The proportion of women car buyers, which has increased three times in the recent

years. Companies have started to dig deep into the Indian women’s psyche and

attention for details. Marketers may need to look at the needs of women customers,

who are increasingly growing in the segment. There is also a substantial influence of

women in the car purchase decision of the family.

Internet plays a key role in marketing and communication strategies of car

manufacturers. Internet has witnessed increased brand building efforts by car

companies over the past few years.

Conclusion/Marketing Implications

Based on both the FGD and secondary data analysis we came to the following conclusions:

1. Traffic,road conditions, parking constraints ,family size are the major determinats of buying

hatchback cars.

2. Premium features like Projector headlamps,car design,interiors,safety provided in hatchback

cars are an added advantage and supportive point before buying.

3. Along with the above premium features , Brands with good after sales service and resale

value are more preferable for buying premium segment hatchback cars.

4. Promotional activity,webistes,auto magazines,test drives and word of mouth communication

from family and friends motivate consumers buying behaviour for premium segment hatchback

cars.

5. Although sustainability is a buzz word now a days with the Delhi even-odd and Volkswagen

incident implementation but we got mixed response and it doesn’t affect buying behaviour of

premium segment hatchback cars.They believe premium cars have those within pollution

control limits.

6. Cost is not a factor while buying premium segment hatchback car.Also Financial services are

now available for all major brands and is not an important factor.


28/28

Limitations of the Study

In attempt to make this project authentic and reliable, every possible aspect of the topic was

k ep t in min d . N evert h e les s , in s p i t e o f t h e fa c t c on s t ra in t s w ere a t p la y

during the formulation of this project.

The main limitations are as follows:

Du e t o l imit a t ion o f t ime on ly few p eop le w ere s e lec t ed for t h e

study. So the sample of consumers was not enough to generalize the findings of the

study.

The main source of data for the study was pr imary data with the help

of self-administered questionnaires. Hence, the chances of unbiased information are

less.

People were hesitant to disclose the true facts.

The chance of biased response can’t be eliminated though all necessary steps were

taken to avoid the same.

Reference

http://www.ijsrp.org/research-paper-0214/ijsrp-p2670.pdf

http://www.livemint.com/Companies/HuGI3pNzjJV0tLB2DPDcoL/Firsttime-car-buyers-

get-more-choosy.html

http://www.ijirset.com/upload/2015/october/66_23_A_Study.pdf.

Consumer Behaviour of Luxury Automobiles:A Comparative Study between Thai and UK

Customers’ Perceptions by JAKRAPAN ANURIT ,KARIN NEWMAN ,BAL CHANSARKAR. Analysis of Research in consumer behaviour of Automobile Passenger car segment by

Vikram Shende
http://www.ijsrp.org/research-paper-0214/ijsrp-p2670.pdfhttp://www.livemint.com/Companies/HuGI3pNzjJV0tLB2DPDcoL/Firsttime-car-buyers-get-more-choosy.htmlhttp://www.livemint.com/Companies/HuGI3pNzjJV0tLB2DPDcoL/Firsttime-car-buyers-get-more-choosy.htmlhttp://www.livemint.com/Companies/HuGI3pNzjJV0tLB2DPDcoL/Firsttime-car-buyers-get-more-choosy.htmlhttp://www.livemint.com/Companies/HuGI3pNzjJV0tLB2DPDcoL/Firsttime-car-buyers-get-more-choosy.htmlhttp://www.ijirset.com/upload/2015/october/66_23_A_Study.pdfhttp://www.ijirset.com/upload/2015/october/66_23_A_Study.pdfhttp://www.livemint.com/Companies/HuGI3pNzjJV0tLB2DPDcoL/Firsttime-car-buyers-get-more-choosy.htmlhttp://www.livemint.com/Companies/HuGI3pNzjJV0tLB2DPDcoL/Firsttime-car-buyers-get-more-choosy.htmlhttp://www.ijsrp.org/research-paper-0214/ijsrp-p2670.pdf

group 2 -cb report - factors affecting buying behaviour of premium segment hatchback car

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