rm: comparision of sedan cars in ahmedabad

7/31/2019 RM: Comparision of Sedan cars in Ahmedabad

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Business Research Methodology

IMPACT OF 'INFLUENCERS' ON PURCHASE OF 'SEDAN CARS'RANGING FROM 'Rs.5 LAKHS TO Rs.10 LAKHS'

SUBMITTE D TO: -

PROF. JINAL PARIKH

SUBMITTED BY:-

MILAN DAVE (A 14)

ANKITA JAIN (A 21)

SAPAN SHAH (A 49)

NIRAV SOLANKI (A 51)

EKTA TANEJA (A 53)

HARDIK VAGHELA (A 58)

VISHAL VALA (A 59)

INTRODUCTION


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OUTCOME

Q) Which sedan car, ranging from Rs.5 lakhs - Rs.10 lakhs is most preferred by

influencers of age group 21 years -25 years?

A) After analyzing the collected data, we have come up with a conclusion that

youngsters of Ahmedabad prefer 'HONDA CITY'because of its ride quality and

superior brand value.

INTRODUCTION TO AUTO

INDUSTRY


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The automotive industry in India is one of the largest in the world and one of the

fastest growing globally. India's passenger car and commercial vehicle

manufacturing industry is the sixth largest in the world, with an annual production

of more than 3.7 million units in 2010. According to recent reports, India is set toovertake Brazil to become the sixth largest passenger vehicle producer in the

world, growing 16-18 per cent to sell around three million units in the course of

2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars,

behind Japan, South Korea, and Thailand.

In 2010, India reached as Asia's third largest exporter of passenger cars, behind

Japan and South Korea beating Thailand. As of 2010, India is home to 40 million

passenger vehicles. More than 3.7 million automotive vehicles were produced in

India in 2010 (an increase of 33.9%), making the country the second fastest

growing automobile market in the world. According to the Society of Indian

Automobile Manufacturers, annual vehicle sales are projected to increase to 5million by 2015 and more than 9 million by 2020. By 2050, the country is expected

to top the world in car volumes with approximately 611 million vehicles on the

nation's roads.

The majority of India's car manufacturing industry is based around three

clusters in the south, west and north. The southern cluster near Chennai is the

biggest with 35% of the revenue share. Chennai, is also referred to as the "Do of

India" with the India operations of Ford, Hyundai, Renault and Nissan

headquartered in the city and BMW having an assembly plant on the outskirts.

Chennai accounts for 60% of the country's automotive exports. Gurgaon andManesar in Haryana form the northern cluster where the country's largest car

manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune,

Maharashtra is the western cluster with companies like General Motors,

Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land

Rover, Fiat and Force Motor having assembly plants in the area. Aurangabad with

Audi, Skoda and Volkswagen also forms part of the western cluster. Another

emerging cluster is in the state of Gujarat with manufacturing facility of General

Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki

and Peugeot-Citroen plants are also set to come up in Gujarat.Kolkatta with

Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of theother automotive manufacturing regions around the country.

SEDAN CARS IN INDIA


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The main features of a Sedan cars include bigger chassis dimensions, seating space

and luggage space included in single body shell. Sedan are the mid size cars having

more row seats with passenger capacity of four or more. A sedan model has more

than four doors with separate boot or luggage space at the rear. Basically sedan car

means the cars with more boot space and entirely different section from the

passenger's cabin. In cars sedan is synonymous to luxury. Sedan cars are the blend

of comfort, luxury, elegance and stunning interior with high end safety features.

There are endless high end luxury cars in the same segment. The demand of sedan

cars are increasing rapidly in India which is the main reason many foreign car

manufactures target India as a launching pad for these luxury cars. The major

players in this particular segment are Honda, Skoda, Volkswagen, Ford and

Hyundai.

'Youth Can Influence Parents LuxuryCar Purchases'

AN ARTICLE PUBLISHED IN AN INTERNATIONAL AUTOMOBILE

MAGAZINE:

But to some extent, Toyota had such young people in mind, at least as potential

purchase influencers, when it developed the fourth-generation premium sedan.

Why? Because, although youths typically dont plop down allowance money onpricey cars, they surprisingly can sway parents of means on what luxury vehicle to

buy, or not buy.

That was an eye-opener, says Mark Templin, group vice president and general

manager ofToyotas premium Lexus division, citing innovative consumer research

gleaned from breaking bread with car buyers.

We discovered some adults let their kids pick out the luxury cars they buy, he

tells Wards Auto. In some cases, you are talking about an Rs.700000/- and above

vehicle. I was floored by that. Its phenomenal.

It means that a luxury car in some ways must appeal to young non-buyers or run

the risk of getting branded as uncool by both them and their parents. Young

people look at styling and driving dynamics in upmarket cars, Templin says.
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Over the years, some critics have rapped Lexus for staid styling. The GS aims to

change that perception and lead a design movement across the entire lineup.

The GS signifies the new, bolder and more confident direction the brand is

taking, he says at a media preview at the Las Vegas Motor Speedway. Theres no

going back. This is the new Lexus.

The vehicle features sleek styling, nimble handling and the latest in connectivity

gadgetry. It arrives at dealerships in February, intending to vie with the Mercedes-

Benz E-Class, BMW 5-Series and Audi A6 in the luxury midsize sedan segment.

The GS 350 is powered by a 3.5L V-6 engine. At 306 hp, it is touted as one of the

most powerful base engines in the segment, as well as the only one with both port

and direct injection. Enhanced in the 13 GS, the engine is a 4-time winner in

the Wards 10 Best Engines competition.

The new GS comes with an all-wheel drive option and a sport package that

includes a stiffer suspension, rear lip spoiler and mesh grille inserts. Also available

is the GS 450h hybrid.

Lexus expects to sell about 25,000 GS models a year. The new car is changing the

way people think about driving a Lexus, Templin says.

That includes those affluent car buyers who listen to their kids. Templin and his

colleagues learned about that phenomenon during novel and personal marketresearch in the form of dinner parties at the homes of willing Lexus owners. The

first gathering was in Beverly Hills, CA.

Essentially, we were hosting a party at their houses, he says. We hired a

celebrity chef and picked residences based on whether they had a big enough

kitchen and seating area for 20 people.

For the guest list, Lexus provided some guidelines to get a cross-section of guests

but otherwise, we told the hosts, Invite who you want, even non-Lexus

owners, especially non-Lexus owners, Templin says.

Customer insight garnered in such informal settings was helpful to me, he says.

We are in a very data-intensive industry. We always look at demographics, but

something like this the influence of young people on luxury-car buying doesnt

come to life until you talk to consumers like we did.
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ANALYSIS AND INTERPRETATION


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A brief section on the methods used for analyzing the data is appropriate for large

scale contracts research proposal and theses. After the project research being done

it requires proper conclusion, limitation and the foremost thing is interpretation.

The analysis is important to evaluate and review the latest techniques available for

use in the particular research study and compare these to the proposed techniques.

STEPS OF ANALYSIS:

Exploratory search was done initially to select the five most preferred

sedan cars for further analysis of our search.

Questionnaires were given to the respondent to know their preference

in best possible ways which could help us in our project analysis.

Analysis has been done in three main phases.

In first phase descriptive analysis has been done of each

question using frequency distribution.

In second phase bi-variate analysis is done with the help of two

questions taken as variables.

In third phase testing of hypothesis has been done to get

relevant information for interpretation.

Graphical presentation and interpretation of each question by the way

of bar charts and graphs.

PHASE 1


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ANALYSIS BY THE MEANS OF

CHARTS AND GRAPHS

1) DO YOU OWN A CAR?

Response Frequency Percentage %

Yes 113 56

No 87 44

Total 200 100

ANALYSIS: Out of the total 200 respondents, 56% of respondents own a car and

44% of respondents do not own a car.

2) HOW MANY KMS DO YOU TRAVEL EVERYDAY?

Response Frequency Percentage %0 to 10 88 44

56%

44%Yes

No


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10 to 15 43 2215 to 20 57 2820+ 12 6

Total 200 100

ANALYSIS: Out of the total respondents, 88% traveled 0 to 10kms per day, 43% traveled 10 to 15 kms per day, 57% traveled

15 to 20 kms per day and 12% traveled 20 kms above per day.

3) WHICH TYPE OF CAR WOULD YOU PREFER?

Response Frequency Percentage %

Petrol 121 60.5

Diesel 79 39.5

Distance Travelled

88

43

57

12

0

20

40

60

80

100

0 to 10 10 to 15 15 to 20 20+

No. of Kms.

Frequen


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Total 200 100

ANALYSIS: Out of the total respondents, 60.5% preferred petrol car and 39.5%

preferred diesel car.

4) WHICH CAR WOULD YOU PREFER OUT OF THE FOLLOWING?

Cars Frequency Percentage %

Type of Car

60%

40%

Petrol

Diesel


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Honda City 79 39.5

Volkswagen Vento 26 13

Hyundai Verna 58 29

Nissan Sunny 19 9.5

Maruti Swift Dzire 18 9Total 200 100

ANALYSIS: Out of the total respondents, 39.5% preferred Honda City, 13%

preferred Volkswagen Vento, 29% preferred Hyundai Verna, 9.5% preferred

Nissan Sunny and 18% preferred Maruti Suzuki Swift Dzire. Hence Honda City

comes out to be the most preferred car.

5) WHY DO YOU PREFER THIS CAR?(1st preference)

Characteristic Frequency Percentage %

Brand Value 56 28

Exteriors 51 25.5

First Preference for cars

79

26

58

19 18

0

20

40

60

80

100

Honda City Volkswagen

Vento

Hyundai

Verna

Nissan Sunny Maruti Swift

Dzire

Cars

Freq

uenc


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Interiors 31 15.5

Mileage 25 12.5

Quality 37 18.5

Total 200 100

Charcteristics for preference of cars

5651

31

25

37

0

20

40

60

Brand Value Exteriors Interiors Mileage Quality

Characteristics

Frequenc

ANALYSIS: Out of the total respondents, 28% prefer the car due to its brand

value, 25.5% due to its exterior, 15.5% due to its interior, 12.5% due to its mileage

and 18.5% due to its quality.

6) WHICH IS YOUR SECOND PRFERENCE OUT OF THE

FOLLOWING?


Honda City 36 18


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Volkswagen Vento 56 28

Hyundai Verna 37 18.5

Nissan Sunny 27 13.5

Maruti Swift Dzire 44 22

Total 200 100

ANALYSIS: Out of the total respondents for second preference, 18% preferred

Honda City, 28% preferred Volkswagen Vento, 18.5% preferred Hyundai Verna,

13.5% preferred Nissan Sunny and 22% preferred Maruti S uzuki Swift Dzire.

Hence the second most preferred car comes out to be Volkswagen Vento.

7) WHY DO YOU PREFER THIS CAR?(second preference)


Brand Value 55 27.5

Exteriors 38 19

Second Preference for cars

36

56

37

27

44

0

20

40

60

Honda City Volkswagen

Vento

Hyundai Verna Nissan Sunny Maruti Swift

Dzire

Cars

Frequenc


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Interiors 29 14.5

Mileage 39 19.5

Quality 39 19.5

Total 200 100

ANALYSIS: Out of the total respondents for second preference, 27.5% preferred

the car due to its brand value, 19% due to its exterior, 14.5% due to interior, 19.5%

due to its mileage and 19.5% due to quality.

8) WHICH CAR YOU DISLIKE OUT OF THE FOLLOWING?


Honda City 16 8

Characteristics of Car

55

38

29

39 39

0

20

40

60

Brand Value Exteriors Interiors Mileage Quality

Characteristic

Freq

uenc


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Resale Value 65 32.5

Mileage 58 29

After-sale services 44 22

Total 200 100

ANALYSIS: Out of the total respondents, 16.5% did not preferred the car due

to its quality, 32.5% due to its resale value, 29% due to its mileage and 22% due

to the after sales services

10) HOW MANY MEMBERS ARE THERE IN YOUR FAMILY?

Number of Members Frequency Percentage %

2 22 11

Charcteristics for dislike of cars

33

6558

44

0

20

40

60

80

Quality Resale Value Mileage After-sale

services

Characteristics

Frequenc


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3 57 28.5

4 93 46.5

4+ 28 14

Total 200 100

ANALYSIS: Out of the total respondents, 11% have the family size of 2 persons,

28.5% have the family size of 3 persons, 46.5% have the family size of 4 persons

and 14% have the family size of more than 4 persons.

11) WHAT IS THE PURPOSE TO BUY THE CAR?


Number of Members

11%

29%

46%

14%

2

3

4

4+


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Regular Commutation 89 45

Highway Run 66 33

Trivial Purposes 45 23

Total 200 100

ANALYSIS: Out of 200 respondents, 45% choose Regular commutation as

purpose to buy car, 33% choose Highway run and 23% choose trivial purposes.

Thus the main reason for purchase of car is Regular commutation.

12) THROUGH WHICH SOURCE DID YOU GET

INFORMATION ABOUT THIS CAR?


Purpose of Car Purchase

89

66

45

Regular Commutation

Highway Run

Trivial Purposes


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Newspaper 39 19.5

Television

Advertisement

54 27

Word of Mouth 87 43.5

Other 20 10Total 200 100

ANALYSIS: Out of total respondents, 19.5% relied on newspaper, 27 % o

television, 43.5% on word of mouth and 10% relied on other sources (like trade

promotion, trial drive, etc. ) as sources of information for cars.

PHASE II & III

TESTING HYPOTHESIS

39

54

87

20

0

20

40

60

80

100

Newspaper Television

Advertisement

Word of Mouth Other

Source of Informatio

Frequenc

y


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Ho: Age is independent of monthly expenditure (spending).

H1: Age is dependent on monthly expenditure.

Steps of analysis:-

Sample selected by the way of questionnaire method, and interpretation of the same

Analysis of the data by the way of descriptive and bi variate analysis.

ANOVA- TWO FACTOR ANALYSIS

Column1 Honda

City

Volkswagen

Vento

Hyundai

Verna

Nissan

Sunny

Maruti Swift

Dzire

Brand Value 15 7 16 8 10

Exteriors 18 6 20 5 2

Interiors 14 5 8 4 0

Mileage 11 5 7 0 2

Quality 21 3 7 2 4

Result :

F P-value F crit

3.248826291 0.039420702 3.006917

13.92488263 4.43662E-05 3.006917

2)ANOVA : TWO FACTOR WITHOUT REPLICATION

(On the 'CARS DISLIKED' parameter)


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Column1 HondaCity

VolkswagenVento

Hyundai Verna Nissan Sunny Maruti SwiftDzire

Column2

2 10 3 7 1 1 22

3 15 10 17 6 9 57

4 42 12 23 9 7 93

4+ 12 1 11 3 1 2879 26 58 19 18 200

HondaCity

VolkswagenVento

Hyundai Verna Nissan Sunny Maruti SwiftDzire

2 8.69 7.41 16.53 5.415 5.13

3 22.515 12.09 26.97 8.835 8.37

4 36.735 3.64 8.12 2.66 2.52

4+ 11.06 26 58 19 18

4.43839E33

4) CHI-SQUARE ANALYSIS


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Column1 Honda City VolkswagenVento

HyundaiVerna

NissanSunny

Maruti SwiftDzire

Column2

Newspaper 10 6 9 8 6 39

Television

Advertisement

22 9 14 5 4 54

Word of

Mouth

42 8 26 5 6 87

Other 5 3 9 1 2 20

79 26 58 19 18 200

Honda City VolkswagenVento

HyundaiVerna

NissanSunny

Maruti SwiftDzire

Newspaper 15.405 5.07 11.31 3.705 3.51

Television

Advertisement

21.33 7.02 15.66 5.13 4.86

Word of

Mouth

34.365 11.31 25.23 8.265 7.83

Other 7.9 2.6 5.8 1.9 1.8

0.117485564

p is greater than alpha, thus Accept ho

Hence, preference depends on ho

CONCLUSION


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We conclude that, youngsters are preferring cars on the basis of brand

value.

More preference is given to HONDA CITY because of its brand image.

The age and particular car selection is not related. Also we found out that the

family size and selection of car is also less correlated.

The two way Anova shows the preference of car HONDA CITY is more

because of the brand preference and ride quality. But it is not selected on the

basis of mileage it gives or the cars looks. Age group of 21-25 years are the

public, who are the most out going, making more fun, and so they are

preferring a car which is adding their own value. People are indifferent to the

selection of car on the basis of fuel type. But a little positive correlation is

there in distance travelled and fuel type. People travelling more than 20 km

per day are more likely preferring VW VENTO as their best alternative.

Our focus is more on the impact of the individuals in selecting a car. And the clear

winner without any dispute is HONDA CITY. People are preferring it over any

other car on the basis of only quality and brand value.

QUESTIONNAIRE


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A) HONDA CITY

B) VW VENTO

C) HYUNDAI VERNA

D) NISSAN SUNNY

E) SWIFT DZIRE

6) WHY DO YOU PREFER THIS CAR?

A) BRAND VALUE

B) EXTERIORS

C) INTERIORS

D) MILEAGE

E) QUALITY

7) WHICH CAR YOU DISLIKE OUT OF THE FOLLOWING?

A) HONDA CITY

B) VW VENTO

C) HYUNDAI VERNA

D) NISSAN SUNNY

E) SWIFT DZIRE

8) WHY DO YOU DISLIKE THIS CAR?

A) QUALITY

B) RESALE VALUE

C) MILEAGE

D) AFTER SALES SERVICE

9) HOW MANY MEMBERS ARE THERE IN YOUR FAMILY?

A) 2 B) 3 C) 4 D) MORE THAN 4

(If more than 4 members are there in your family then answer the next question, else go to the 11 th

question)

10) WHAT IS THE PURPOSE TO BUY THE CAR?


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A) REGULAR COMMUTATION

B) HIGHWAY RUN

C) TRIVIAL PURPOSES

11) THROUGH WHICH SOURCE DID YOU GET INFORMATION ABOUT THIS CAR?

A) NEWSPAPER

B) TELEVISION ADVERTISEMENT

C) WORD OF MOUTH

D) OTHER

MENTION OTHER SOURCE: _________

rm: comparision of sedan cars in ahmedabad

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