term paper of c.b

8/8/2019 Term Paper of C.B.

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OF

( Study post buying behavior of customers towards cars)

SUBMITTED TO

Department of management Lovely Professional University Phagwara

SUBMITTED BY:- SUBMITTED To:

Ahmad Ali Mr.Manish Rajput

Roll No-RS1904A07

Regt.No-10905794

Mohammad Abbas

RS1904-A24(10906034

RS1903B58 Rahul



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Acknowledgment

I take this opportunity to present my vote of thanks to all those guidepost who

really acted as lightening pillars to enlighten our way throughout this project that

has led to successful and satisfactory completion of this study.

We are really grateful to our COD Mr.Devdhar Shetty for providing us

with an opportunity to undertake this project in this university and providing us

with all the facilities. We are highly thankful to Mr.Manish Rajput for his active

support, valuable time and advice, whole-hearted guidance, sincere cooperation and

pains-taking involvement during the study and in completing the assignment of

preparing the said project within the time stipulated.

Lastly, We are thankful to all those, particularly the various friends , who have

been instrumental in creating proper, healthy and conductive environment and

including new and fresh innovative ideas for us during the project, their help, it

would have been extremely difficult for us to prepare the project in a time bound

framework.

Introduction of Post Purchase Behavior



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Post Purchase Behavior

Cognitive Dissonance

?Did I make a good decision?

Did I buy the right product?

Did I get a good value?

We can easily judge post purchase behavior of customer by judging following things

Satisfaction

Actions

Use and Disposal

Can minimizethrough: Effective

communicationFollow-up

Guarantees Underpromise & Overdeliver Warranties



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INTRODUCTION

It is true fact that if you are satisfied you recommended to others. Word of mouth and customer

satisfaction play a very important role in determining market perception about an automobile. It

is the market perception that determines the success of a company and so it is very important for the car manufacturers to measure the “willingness of existing users of a product to recommend it

to others”. The same is a lot of interest to customers as well for it helps them make the purchase

decision. A car is one of the most significant purchases that an Indian household makes and this

project addresses the most important question that perplexes car manufacturers:“What makes the

perfect car that influence will willfully purchase?”The project highlights the factors that influence

the buying decision of a consumer.

The factor under consideration would be:

(1) Price

(2)Income of the consumer

(3) Features in the car

(4) Safety standard

(5) Warranty scheme

(6) Finance facility

Is an Indian consumer ready for more? Which is the driving motive behind the effective demand

of the car? How the coming of new models like swift does is going to effect the buying decision

of consumer and especially the Tata 1 lakh car. In other words, from the spread of choices offered

by various manufacturers under various segments, of which one the customer will finally turn the

ignition on and drive. Customer satisfaction index: some of the most advance thinking in the

business world recognizes that customer relationships are best treated as assets, and that

methodical analysis of these relationships can provide a road map for improving them. There isobviously a strong link between customer satisfaction and customer retention. Customer’s

perception of service and quality of product will determine the success of the product or service

in the market. With better understanding of customer’s perceptions, companies can determine the

actions required to meet the customer’s needs. They can identify their own strengths and

weaknesses, where they stand in comparison to their competitors, chart out the path future



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progress and improvement. Customer satisfaction measurement helps to promote an increased

focus on customer outcomes and stimulate improvements in the work practices and processes

used within the company. Customer expectations are the customer-defined attributes of your

product or service. We cannot create satisfaction just by meeting customer’s requirements fully

because these have to be met in any case. However falling short is certain

to create dissatisfaction. Major attributes of customer satisfaction can be summarized as:

(1) Product quality

(2) Product packaging

(3) Keeping delivery commitments

(4)Price

(5)Responsiveness and ability to resolve complaints and reject reports

(6) Overall communication, accessibility and attitudes

CONSUMER BEHAVIOR AND CAR DECISION

Consumer behavior refers to the mental and emotional process and the observable behavior of

consumers during searching, purchasing and post consumption of a product or service. Consumer

behavior involves study of how people buy, what they buy, when they buy , why they buy and

from there they buy. It blends the elements from psychology, sociology, sociopsychology,

anthropology and economics. It also tries to assess the influence on the consumer from groups

such as family, friends, reference groups and society in general. Buyer behavior has two aspects:

the final purchase activity visible to any observer and the detailed or short decision process that

may involve the interplay of a number of complex variables not visible to anyone.



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LITERATURE REVIEW

Davos India January 2006 in its research on automotive identified a key trend in

passenger vehicle segment that with rising income levels and availability of better

financing options, customers are increasingly aspiring for higher-end models. There

has been a gradual shift from entry-level models to higher-end models in each

segment. Tata Nano is an entry-level car which has reduced the cost of owning a

car significantly as mentioned above. In their research, Davos identified an increase

in the number of households who come in the consumer class by about 68% from

the year 2001 to 2006. Many aspirants have actually converted into the consumer

class. Many such studies done on the income level relation with the purchase of

cars suggest that the income level transition has to be taken into consideration in

this research. As per the trends reflected in the researches done so far, it can be

postulated that a high income customer might not be a customer for Tata Nano

while the average income group and the people under transition from low to high...



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AN OVERVIEW OF

CONSUMER BUYING BEHAVIOR

Consumer behaviour refers to the mental and emotional process and the observable behaviour

of consumers during searching, purchasing and post consumption of a product or service.

Consumer behaviour involves study of how people buy, what they buy, when they buy and

why they buy. It blends the elements from psychology, sociology, sociopsychology,

anthropology and economics. It also tries to assess the influence on the consumer from

groups such as family, friends, reference groups and society in general.

Buyer behaviour has two aspects: the final purchase activity visible to any observer and the

detailed or short decision process that may involve the interplay of a number of complex

variables not visible to anyone.

Factors Affecting Consumer Buying Behaviour:

Consumer buying behaviour is influenced by the major three factors:1. Social Factors

2. Psychological Factors

3. Personal Factors.

Social Factors

Social factors refer to forces that other people exert and which affect consumers’

purchase behaviour. These social factors can include culture and subculture, roles and family,

social class and reference groups.



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that the selling dealer might actually have paid $12,000 for the car at a statewide dealer's auction,

and then might have incurred another $1,000 in expenses associated with transporting the car and

preparing it for sale. Management of buyer perceptions is very important!)

An issue related to this is attribution theory. According to attribution theory, people tend to

assign cause to the behavior of others. Mary's life insurance agent advises her to purchase a

whole life policy, while her accountant advises her, "buy term insurance and invest the

difference.". The reason, explains the accountant, "is that insurance agents receive substantially

higher commission payments on sales of whole life policies."

If Mary believes that the insurance agent is recommending a product merely because he

receives a higher commission, she will likely be displeased with the relationship and will not

take his recommendation. If the agent is able to show Mary that the recommended product is the

best solution for her situation, then she will likely attribute his recommendation to having her

best interests in mind and will not be concerned about how it is that he is compensated for his

services.

Cognitive dissonance

It has to do with the doubt that a person has about the wisdom of a recent purchase

It is very common for people to experience some anxiety after the purchase of a product that is

very expensive or that will require a long term commitment. Jane and Fred, for example, signed

a one year lease on an apartment, committing themselves to payments of $1500 per month. A

week later, they are wondering if they should have instead leased a smaller $900 apartment in a

more rough part of town; they are not sure if they really can afford this much of a monthly

obligation. Dick and Sally, on the other hand, ultimately rented the $900 apartment, and now

are wondering if the savings in rent will be offset by noisy and sometimes unsafe conditions in

this neighborhood. Perhaps neither couple would be experiencing this anxiety if their landlords

had given them just the smallest of assurances that they had made a good decision. After a close

on products that are expensive or that require a long term commitment, the salesperson should

provide the prospect with some reasons to be happy with the decision. Allow the car buyer to

reinforce her own positive feelings by calling her a week after the purchase to ask how things are

going. Call the new life insurance policy holder after two months to see if there are any



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NO VALUE 03 3%

TOTAL 100 100%

FROM THE INTERPRETATION 2 IT IS CONCLUDED THAT.....

➢ 36% CUSTOMERS ARE GETTING HIGH VALUE FROM THE “XYLO”.

➢ 43% CUSTOMERS ARE GETTING TOTAL VALUE FROM THE “XYLO”

➢ 18% CUSTOMERS ARE GETTING LITTLE VALUE FROM THE “XYLO”

➢ ONLY 3% CUSTOMERS ARE NOT GETTING VALUE FROM THE

“XYLO”

INTERPRETATION - 3

1 . PRICE OF THE XYLO

PARTICULAR NO. OF RESPONDENT PERCENTAGE

VERY COSTLY 0 0%

COSTLY 25 25%

REASONABLE 75 75%

TOTAL 100 100%

FROM THE INTERPRETATION 3 IT IS CONCLUDED THAT...

➢ 0% CUSTOMERS ARE NOT RECOGNIZED “XYLO” AS A VERY

COSTLY CAR.

➢ 25% CUSTOMERS ARE RECOCOGNIZED IT AS A ONLY COSTLY

CAR.

➢ 75% CUSTOMERS ARE VERY COMFORTABLE WITH THE PRICE OF



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1. HOW CUSTOMER GOT TO KNOW ABOUT XYLO


T.V ADVERTIESMENT 36 36%

FRIENDS 10 10%

NEWS PAPER 16 16%

MAGAZINES 16 16%

OTHERS 22 22%

TOTAL 100 100%

FROM THE INTERPRETATION 5, IT IS CONCLUDED THAT...

➢ 36% CUSTOMERS GOT TO KNOW ABOUT XYLO THROUGH

ADVERTIEZMENT.

➢ 10% CUSTOMERS BOUGHT THE XYLO THROUGH FRIENDS.

➢ 16% CUSTOMERS GOT TO KNOW ABOUT XYLO THROUGH NEWSPAPER.

➢ 16% CUSTOMERS GO THROUGH THE MAGAZINES.

➢ 22% CUSTOMERS GOT TO KNOW ABOUT THE XYLO THROUGH OTHER

SOURCES.

INTERPRETATION - 6

1 . MODE OF PURCHASE.. .PARTICULAR NO. OF RESPONDENT PERCENTAGE

FINANCE 71 71%

CASH 29 29%

TOTAL 100 100%



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➢ 71% OF THE XYLO CUSTOMERS HAVE GONE THROUGH THE FINANCE.

➢ 21% OF THE XYLO CUSTOMERS HAVE GONE THROUGH THE CASH.

INTERPRETATION - 7

1. CUSTOMER SATISFACTION TOWARDS “XYLO”


HIGHLY SATISFIED 54 54%

SATISFIED 32 32%

DISSATISFIED 07 7%

HIGHLY DISSATISFIED 07 7%

TOTAL 100 100%


➢ 54% CUSTOMERS ARE HIGHLY SATISFIED WITH THE XYLO’S

PERFORMANCE.

➢ 32% CUSTOMERS ARE ONLY SATISFIED WITH THE “XYLO”.

➢ 7% CUSTOMERS ARE DISSATISFIED WITH THE “XYLO”

➢ 7% CUSTOMER ARE REALLY NOT HAPPY WITH THE XYLO

PRODUCT AND THEY ARE HIGHLY DISSATISFIED WITH THE

“XYLO”.



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INTERPRETATION - 8

1. INFLUENCE TO PURCHASE “XYLO”


SELF DECISION 46 46%

KIDS 18 18%

FRIENDS 18 18%

OTHER FAMILY MEMBER 18 18%

TOTAL 100 100%


➢ 46% CUSTOMERS HAVE TAKEN SELF DECISION.

➢ 18% CUSTOMERS DECISION WAS INFLUENCED BY KIDS

➢ 18% CUSTOMERS DECISION WAS INFLUENCED BY FRIENDS

➢ 18% CUSTOMERS WERE INFLUENCED BY OTHER FAMILY MEMBERS

INCLUDING KIDS

54% CUSTOMERS ARE INFLUENCED BY THEIR FAMILY.

INTERPRETATION - 9

1. ROLE OF ADVERTIEZMENT S IN DECISION MAKING


REALLY HELPFUL 54 54%



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SOMETIME IT IS HELPFUL 36 36%

NOT HELPFULL 10 10%

TOTAL 100 100%


➢ 54% CUSTOMERS BELIEVE THAT T.V ADVERTIEZMENT IS REALLY

HELPFULL IN DECISION MAKING.

➢ 36% CUSTOMERS SAID THAT, IT IS SOMETIME HELPFULL IN DECISION

MAKING.

➢ ONLY 10% CUSTOMERS DO NOT BELIEVE THAT, T.V ADVERTIEZMENT IS

NOT HELPFUL IN DECISION MAKING.

INTERPRETATION - 10

1. AVAILABILITY OF SPARE PARTS OF “XYLO”

2. PARTICULAR NO. OF RESPONDENT PERCENTAGE

3. HARDLY AVAILABLE 32 32%

4. AVAILABLE 22 22%

5. EASILY AVALABLE 46 46%

6. TOTAL 100 100%


➢ 32% CUSTOMERS ARE NOT HAPPY WITH THE AVAILABILITY OF SPARE

PARTS OF “XYLO”.

➢ 22% CUSTOMERS SAID THAT, SPARE PARTS OF “XYLO”ARE AVAILABLE



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INTERPRETATION – 12

12. CUSTOMER SATISFACTION WITH AFTER SALE SERVICEPARTICULAR NO. OF RESPODENT PERCENTAGE

HIGHLY SATISFIED 21 21%

SATISFIED 57 57%

DISSATISFIED 11 11%

HIGHLY DISSATISFIED 11 11%

TOTAL 100 100%


➢ 21% CUSTOMERS ARE HIGHLY SATISFIED WITH THE AFTER SALE

SERVICE OF “XYLO”.

➢ 57% CUSTOMERS ARE ONLY SATISFIED WITH THE AFTER SALE SERVICE

OF “XYLO”.

➢ 11% CUSTOMERS ARE NOT SATISFIED WITH THE AFTER SALE SERVICE

OF “XYLO”.

➢ 11% CUSTOMERS ARE HIGHLY DISSATISFIED WITH THE AFTER SALE

SERVICE OF”XYLO”.

INTERPRETATION - 13

13. COMPANY CONTACT & COMMUNICATION

AFTER SALE


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