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mm live projectDushyant Singh - 20-08-2015

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mm live projectDushyant Singh - 20-08-2015

  1. 1. SUBMITTED TO – HYMA MA’AM SUBMITTED BY - DUSHYANT SINGH MBA I ENROLL NO. 15BSPHH010200 Take a cab, Don’t buy a car
  2. 2. Take a Cab, Don’t buy a car Page | 1 DECLARATION I, Dushyant Singh, student of MBA 1st Year from ICFAI University, Hyderabad, hereby declare that all the information, facts and finding furnished in this reports are based on my indigenous work and are original in nature. Dushyant Singh Enroll No. 15BSPHH010200
  3. 3. Take a Cab, Don’t buy a car Page | 2 ACKNOWLEDGEMENT I owe a great deal of gratitude and indebtedness to everyone who helped me to successfully compile this project report and have been a massive pillar of support to me. First and foremost, I would like to profusely thank my MM lecturer, Ms. Hyma, who has given me constant support and guidance and encouraged me during the execution of this project. She has advised and helped me throughout this project, and I am sincerely grateful to her. I would like to thank her for assigning this project to me, as it has helped me to understand and learn a great deal about the topic of the project and acquire considerable knowledge. I would also like to express my grateful thanks to Team Maverick and Team Prakriti, for their support and guidance. I must thank the 133 helpful people who took the time and effort to answer the survey queries and questionnaires used to build the basic data for this project. This project would not have been possible without their contribution. My deepest gratitude goes to them. Last, but with utmost sincerity, I would like to thank my Institute, the Faculty Members, my Peers and my family for their unconditional support and kind guidance, without which the completion of this project would not have been possible. They have been a source of strength and confidence for me.
  4. 4. Take a Cab, Don’t buy a car Page | 3 TABLE OF CONTENTS  CHAPTER 1…………………………………………………………………......4  Executive Summary……………………………………………………………..5  Introduction…………………………………………………………………….6  CHAPTER 2…………………………………………………………..…………9  Literature Review………………………………………………………….….10  Abbreviations……………..……………………………………………..….10  CHAPTER 3…………………………………………………………………....11  Research Methodology………………………………………………………..…..12  Objective of Study………………………………………………………....12  Purpose of the study……………………………………………………..…13  Research Design………………………………………………………..…..14  Data collection method…………………………………………………..…15  Instrument use (Questionnaire)…………………………………………..…15  Sample determination…………………………………………………...….16  Sampling……………………………………………………………...….…16  CHAPTER 4........................................................................................................18  Analysis with graphs & pie-charts……………………………………..…….19  Discussion of findings and interesting facts with interpretations………………19  CHAPTER 5……………………………………………………………..……..28  Conclusion, a proposed action plan with resource requirements……….……..29  Recommendation………………………………………………………..……...30  BIBLIOGRAPHY…………………………………….………………..………31  GLOSSARY…………………………………….………………..………….…33  ANNEXURE…………………………………………………………..………..35  Questionnaire………………………………………………………………….35
  5. 5. Take a Cab, Don’t buy a car Page | 4 CONTENTS  Executive Summary  Introduction
  6. 6. Take a Cab, Don’t buy a car Page | 5 EXECUTIVE SUMMARY In 1907, car salesman John Hertz looked at his surplus of traded-in cars and decided to start a taxi business. Since taxis needed to stand out, the color yellow was chosen. That was the result of a survey by the University of Chicago which concluded yellow was the easiest color to spot. Hertz's Chicago Yellow Cab Company was the first cab service to use the now-familiar moniker. In fact, when the entrepreneur established the Hertz Corporation in 1953, he also used yellow in the new logo. The existence of taxi services in India can be said to be as old as the Indian Capital. On 12th December 1911 India's Capital shifted from Calcutta to Delhi and even Taxicabs arrived in 1911 to complement horse wagons. The black and yellow Fiat taxis in India, were an integral part of the metropolitan cities' heritage and have been depicted in numerous Bollywood movies. A mechanical meter decided the fare and was proportional to the distance traveled. The conventional Indian cabs with modernization, got westernized and high-tech cabs, which were part of the dominant life style of the western world, got introduced into India. Cars later on introduced as taxis include Maruti Esteem, Tata Indigo, Renault Logan, Hyundai Santro, Toyota Innova, Maruti Wagon R and Maruti Versa.
  7. 7. Take a Cab, Don’t buy a car Page | 6 This Study Report This Study Report deals with Competitive position of various cab service providers and the Willingness of consumers to opt for them instead of using personal cars in Hyderabad. The Research has been carried out through a survey/questionnaire for obtaining the preferences and consumption pattern of consumers in respect of Cab Service providers. It has been found that Ola Cabs has a good market potential in Hyderabad city as compared to other cabs and that consumers prefer Ola because of its superior app functionality and brand image. INTRODUCTION 'Take a cab, don't buy a car' is urban India's newest trend, still nascent but likely to get stronger, as both experts and auto companies think. Consumer and industry implications may include a change in auto firm strategy, an even more rapid scaling up of cab hailing services like Uber and Ola and India twist in the usual story of rising incomes corresponding with rising car ownership. Owning a car, people would spend about Rs 23,000 a month on fuel and drivers salary. Taking cabs to and from places costs them Rs 8,000 a month. Add to this the cost of acquiring the asset — the car — maintaining it and paying for parking, provided you find a parking space. For many urban Indians, especially in the top three metros of Delhi, Mumbai and Bengaluru, the economics is compelling. Weekends for cabs Most of the people prefer app-based cab services for weekend trips with family than using their cars. Parking is a hassle and drivers have an off on Sundays. Auto industry is well aware and taking note of this opportunity. Services like Uber and Ola are a big change and as a major responsible manufacturer, we really need to understand how this will pan out and we need to see what role we will play in this. Less surprisingly but equally importantly, executives of organized cab services say the same thing. Spokespersons of both Ola and Uber told ET they have feedback from customers who have given up their second car or not bought the second car.
  8. 8. Take a Cab, Don’t buy a car Page | 7 Experts say just as car ownership is low in India — around 18 cars per thousand people, compared to 800 per thousand in the US — and indicates a vast future market, share of organized cab services (7% of two million cabs) in India's cab fleet is also low, and points to a big growth in that segment. How the growth of timely, cheap cab services will affect car buying decisions is the question. Ola, Uber & Young Ola and Uber, the top two cab rental companies, provide six lakh rides a day between them and are growing 20% to 25% month on month. Both have huge growth plans. Seasoned business people have spotted the Uber-Ola Vs. cars trend. "As Ola and Uber scale up, the cost of being driven around will come down... also cost of a parking lot when buying apartments in cities like Mumbai can be more than what a car costs. There's another factor: younger Indians aren't so big on owning things. Even in an evolved car market like America, where owning a car is almost a fundamental right, the growth of app-based cab companies has made auto companies sit up. Ford in the US recently started a car sharing initiative that helps people let out their Ford cars to a select set of customers to reduce the cost of maintaining the vehicle. Some auto executives say the Ola-Uber factor must be viewed in the light of these companies now "burning cash" to acquire customers. They ask about the sustainability of the cash-burn model. But funds, many experts say, won't be a growth constraint for app-based cab services for a long time. Win-win for all Some auto industry veterans reckon the attraction of car ownership won't dim much because a car is more than a utilitarian asset. If people only used their car for commuting purposes, then there would be only small compact cars all around. But that is not the case, cars are considered as extension of one's taste, personality and beyond". Other auto industry insiders say modern cab services may kill the need for the second or the third car, but not the first. Cab services will have no major impact on the first car purchase in the family, as India is yet to see accelerated motorization. India is too complex a country for one trend to prevail. "India is not a country, it is a continent in itself with different purchase behaviors. The metropolitan disruption looks minimal when we compare it with the whole country. Developing this theme, Pareek of Tata Motors says growing demand for modern cab services can create new demands for auto companies. One thing is sure, auto industry will keep a close watch on the car vs. cab battle. And this story again shows why: Two corporate hotshots finished a meeting at a 5-star hotel in Mumbai and got ready to leave. One summoned a cab using the service's app and the other called his driver. The cab arrived first.
  9. 9. Take a Cab, Don’t buy a car Page | 8
  10. 10. Take a Cab, Don’t buy a car Page | 9 CONTENTS  Literature Review  ABBREVIATIONS
  11. 11. Take a Cab, Don’t buy a car Page | 10 ABBREVIATIONS TAB – Tablet APP – Application POD – Point of difference POC – Point of parity USP – Unique selling proposition RBI – Reserve Bank of India MM – Marketing Management
  12. 12. Take a Cab, Don’t buy a car Page | 11 CONTENTS  Research Design and Methodology  Objective of Study  Purpose of the study  ResearchDesign  Data collectionmethod  Instrument use (Questionnaire)  Sample determination  Sampling
  13. 13. Take a Cab, Don’t buy a car Page | 12 RESEARCH METHODOLOGY OBJECTIVES: The objectives of the Project Study are:  To conduct a local market survey with the purpose of gathering the necessary data  Analysis of the data collected in order to:  To study and assess the competitive position of various Cab service providers  To study consumer expectations  To study consumption pattern of the consumers  To study the factors influencing the choice of the brand by the consumers  To study the preferences of different age groups and gender  To find the most preferred Cab service provider  To find which Cab service provider has a better service  To find which Cab service provider has the best app  To find which brand has a better marketing campaign and what themes is it based on  To find if consumers are willing to accept the new trend to not buy a car but take a taxi instead.  To find difficulties faced by consumers while driving their personal car  To find how important it is for the consumers to own a personal car  To find the problems faced by the consumers while travelling by a cab.
  14. 14. Take a Cab, Don’t buy a car Page | 13 PURPOSE OF THE STUDY The main purpose of the survey was to find out the preferences of the consumers and find out which cab service provider is more popular among the consumers, on basis of the service itself and as well as the availability and feasibility criteria. To know the competitive position of Ola with respect to other cab service providers and with the increasing consumption pattern of cab services of the consumers, the situation demanded a market study and analysis through a survey so as to give an over view of the market situation in quantitative terms. The Indian Cab service Industry has become quite dynamic industry. Companies like Uber and Ola Cabs are the life style brands and are closely related to the personal preference of the consumer, which in turn depends on the consumer’s social status and income. Various attractive schemes and offers are also mentioned if you download their respective apps for the first time.
  15. 15. Take a Cab, Don’t buy a car Page | 14 RESEARCH DESIGN  Selection of Data collection Method: Primary data: In-depth Questionnaire/Form Secondary data: Internet and other researches Interaction submitted on the internet  Selection of Measurement Technique: Quantitative analysis, bar graphs & pie charts.  Primary considerations in Sampling - Population: Consumers of Hyderabad - Sample Frame: IFCAI Students in Hyderabad - Sample Size: 133 consumers - Sample Plan: Visited various crowded points in campus like, Mess 1, Mess 2, Auditorium, football ground, etc.  Method of Analysis: Quantitative  Ethical aspects: I have made an effort to make this research study free from personal Opinion and preferences, for my Market Research project of MBA I.  Time and Financial Cost: Total survey took 2 to 5 days and Cost incurred was Rs. 0/-  Limitations of study: 1) The study was mostly confined to Hyderabad city and students 2) The study was limited to only 133 consumers
  16. 16. Take a Cab, Don’t buy a car Page | 15 Data collection method Data is one out of two types, either primary which is collected by the researcher/s or secondary data which is gathered by other researches. We decided to use a questionnaire as our main source of data collection (primary data), as our aim was to measure consumers’ understanding and experience of global advertising campaigns. Consumer preferences The questionnaire initiated with an introduction to the usage of various modes of transport and hence the questions were designed in such a way to give an overall view of the respondents’ relationship to their requirement of travelling with cab service providers. Instrument use (Questionnaire) The questionnaire allowed us to gather specific information on how different consumers perceive different cab service companies, as well as the different factors that influence consumer preference. According to (Ruane, 2005), a questionnaire is a “self-contained, self-administered instrument for asking questions”. The questionnaire was divided into structured and unstructured questions accordingly. A structured question may either entail multiple choices, dichotomous questions, or a scale, whereas an unstructured question is an open-ended question, which implies that the respondents answer in their own words. The structured questions that were asked were either dichotomous or scales. In dichotomous questions, the respondents could only choose between two response alternatives, such as Male or Female, making it easy to code and analyse. Finally, in combination with the structured questions, unstructured questions were asked, where the respondents were able to clarify and express in detail their responses and opinions.
  17. 17. Take a Cab, Don’t buy a car Page | 16 One of the main objectives of a questionnaire is to “uplift, motivate, and encourage the respondent to become involved in the interview, to cooperate, and to complete the interview”. This was achieved through asking interesting questions in combination with visual images to help clarify the questions. Sample determination The population chosen to investigate in order to reach the purpose was the chosen local market; consumers of Hyderabad, and thus was decided upon a combination of quota sampling and convenience sampling from this population. Quota sampling implies that a researcher can choose to have a specified proportion of the investigated elements in the study. This partition into different stratums can include different categories, such as gender, age, lifestyle, and ethnicity. When the researcher has decided upon which categories to use in the partition, as well as the number of respondents to investigate, convenience sampling is used to collect them. When convenience sampling is utilized, there is a lack of a clear sampling strategy and the researcher decides which elements to study depending on the ease of access. SAMPLING The population chosen to investigate in order to reach the purpose was the chosen local market; Indian consumers (mostly from Hyderabad City), and thus it was decided upon a combination of quota sampling and convenience sampling from this population. Quota sampling implies that a researcher can choose to have a specified proportion of the investigated elements in the study. This partition into different stratums can include different categories, such as gender, age, lifestyle, and ethnicity. When the researcher has decided upon which categories to use in the partition, as well as the number of respondents to investigate, convenience sampling is used to collect them. When convenience sampling is utilized, there is a lack of a clear sampling strategy and the researcher decides which elements to study depending on the ease of access.
  18. 18. Take a Cab, Don’t buy a car Page | 17 The quotas that were chosen for this thesis were divided into three different age groups in accordance to: < 20, 20, 21, 22, 23, 24, 25 and > 25. The chosen groups represented a diverse set of people, who are at different stages in their lives, and thus believed that their perception of international advertising campaigns and sponsorship activities, as well as international brands would vary. Consequently, the aim is to study whether age impacts the way in which consumers are open-minded to advertisement and whether there was a significant difference between the groups. Various respondents were chosen from each age group: • ≤ 20: the majority were seventh to twelfth graders • 20: under graduate students from my University. • 21-24: post graduate students from my University. • 25: the majority had just completed their post graduate • > 25: family, friends, teachers Although the researcher did not have a personal relationship with the majority of the youngest age group, it was still found to be convenient and easy access to them due to sharing the questionnaire online, as well as being the easiest but most reluctant group to participate in the study. The sample sizes will be 133 consumers, 100 from Hyderabad and 33 outside Hyderabad.
  19. 19. Take a Cab, Don’t buy a car Page | 18 CONTENTS  Analysis with graphs & pie-charts  Discussion of findings and interesting facts with interpretation
  20. 20. Take a Cab, Don’t buy a car Page | 19 Analysis & Interpretation Interpretation Out of 133 respondents, only 3 people are below the age of 20, 9 people are of the age 20, 35 people are 21 years old, 34 people are of the age 22, 33 people are 23 years old, 5 people are 24 years old, 8 people are 25 years old, whereas only 6 people are above the age of 25. The majority of the people are either 21, 22, 23 so this survey is majorly targeting the post graduate students.
  21. 21. Take a Cab, Don’t buy a car Page | 20 Interpretation The gender of the respondents was almost equally divided. Out of 133 respondents, 73 (54.9%) were Male whereas 60 respondents (45.1%) were Female. This would imply that the findings from this survey are not gender biased. Interpretation Out of 133 respondents who took the survey, the majority consisted of students at 84.8% (112 respondents). Of the remaining 21 respondents, 17 (10.1%) are working, and 4 respondents (2.3%) chose ‘Other’ (thus neither student nor working). Hence, the following findings are strongly based on how students feel about choosing cab services over personal cars
  22. 22. Take a Cab, Don’t buy a car Page | 21 Interpretation Out of 133 respondents who took the survey, the majority consisted of people who travel less than an hour at 63.9% (85 respondents). 41 respondents (30.8%) travelled from 1-3 hours per day whereas 7 respondents (5.3%) claim that they have to travel more than 3 hours every day. Hence, the majority does not travel much and due to this fact, the need for a personal car makes less sense amongst them. Interpretation Out of 133 respondents who took the survey, the majority (52%) still travelled by a personal car and only used bus or taxi as a substitute. Only about 35% people travelled regularly by a taxi or a bus and 7.5% and 5.5% people, only drove a motorcycle or took an auto-rickshaw, respectively.
  23. 23. Take a Cab, Don’t buy a car Page | 22 Interpretation Out of 133 respondents who took the survey, 46 (34.6%) people spent almost 500 rupees per week and 42 (31.6%) people spent almost 1000 rupees per week. There were also 11 (8.3%) people who spent almost 2000 and another 11 (8.3%) people who spent more than 2000. People who travelled by a personal car were paying expenses ranging from rupees 1000 to more than 2000 for shorter distances, at times, than people who travelled by taxi, who were paying in the range of 200-1000. Interpretation Out of 133 respondents who took the survey, the majority (70.7%) preferred Ola cabs, followed by 39.8 % for Uber and 21.8% for Meru cabs. The remaining 9.9% people either chose sky cabs or dot cabs or any other cab available in their respective areas. Ola Cabs can clearly be seen, dominating the market.
  24. 24. Take a Cab, Don’t buy a car Page | 23 Interpretation Out of 133 respondents, 54.1% of the people thought cabs were safe and 18% thought they were very safe. 24.1% thought they can be unsafe at times, while only 3.8% of the people did not consider cab services to be a safe option. Hence, it can be said that the majority of the youth is comfortable with the kind of safety these cab service providers have maintained. Interpretation Out of 133 respondents, 42.1% people prefer cabs due to the simplicity in terms of booking, 39.8% due to ample availability in the location, 22.6% due to attractive deals and discounts and 20.3% due to quality of the service. 16.5 % do not prefer cabs over other modes of transport.
  25. 25. Take a Cab, Don’t buy a car Page | 24 Interpretation Out of the 45 respondents that did not prefer cabs over other modes of transport, 45.2% people thought cab drivers are not reliable, 21.4% people did not trust online transactions, 16.7% people got irritated when cab drivers did not know the correct route to the destination, 14.3% people were unsatisfied because of the poor cab condition, 11.9% people were upset due to late pickup. Interpretation Out of the 133 respondents, 83.5% of the people did not face any problems while travelling in a cab but still 16.5 % of the people did face problems that made them change their preference for mode of transport to other available options.
  26. 26. Take a Cab, Don’t buy a car Page | 25 Interpretation Out of the 21 respondents who were kind enough to share their bad experiences, majority of the people had a problem with the cab driver either being rude, misbehaving, driving rashly or not knowing the right way to the final destination. Also, another common problem people faced was when the cab driver dropped them much before their desired drop off point, and/or refused to go to the preferred location. At times they even cancel the booking at the last moment because of an unfavorable drop off location. Interpretation Out of the 133 respondents, 33.1% of the people owned a single car in the family, 33.8% owned 2 cars, 21.8% owned three cars, 8.3% owned 4 cars and only 3% people owned more than 4 cars in their immediate family. Hence, almost about 67% of the people share at most 2 cars in their family, which makes the probability of their taking a cab higher, due to non-availability of a personal car at certain times.
  27. 27. Take a Cab, Don’t buy a car Page | 26 Interpretation Out of the 133 respondents, 55.3% of the people found it quite hard to find parking in their cities. 15.2% people found it very hard, while 2.3% of the people thought it was simply impossible to find parking in the city. Only 27.3% of the people said parking was not a problem at all. This implies that the majority here does not want to get involved in this exhausting task of parking their own car, which is why a cab would be a better option. Interpretation Yet out of the 133 respondents, 39.1% of the people said it was very important to own a car, 31.6% said it was important, 21.8% said it was neither too important nor too irrelevant. Only 7.5% of the people said it was not important to own a car.
  28. 28. Take a Cab, Don’t buy a car Page | 27 Interpretation Out of the 133 respondents, the majority (41.4%) disagrees with this statement and another 12% strongly disagrees. 37.6% somewhat agree and only about 9% agree with this nascent belief. It can be said that though the youth have started to think on these lines, they are not fully willing to replace their personal vehicles, completely with relying just on cab services. According to the pattern that can be seen in this questionnaire, the youth have started moving towards this idea, but still there is a long way to go for this concept to become a reality and a plethora of problems that this concept will face.
  29. 29. Take a Cab, Don’t buy a car Page | 28 CONTENTS  Conclusion, a proposed action plan with resource requirements  Recommendations
  30. 30. Take a Cab, Don’t buy a car Page | 29 CONCLUSION From this study, it can be concluded that the consumers of cab services in Hyderabad city, especially the students are only in the very nascent stage to accept the motion ‘Take a cab, don’t buy a car. Though cab services like Ola and Uber have become very popular in a very short span of time among the youth due to their easy booking app utility through tabs and phones and the ample availability of cabs within the city; India is not truly ready to give up the purchase of a personal car. What was observed was that even though it was comparatively very economical to just take a cab every day, many consumers still wanted to own a car because it caters to your esteem needs and not only your basic needs as well (according to Maslow’s hierarchy of needs). Cars are considered as ones’ extension in taste, personality and beyond and not only just utility assets. Even though most of the students spent less than an hour a day in travelling, they were willing to spend more than 1000 rupees a week on travelling just to be able to use a personal car. Also, most of the students had a very tough time to find parking. Cabs or taxis were considered the most favorable option out of the available public transport. Out of the major service providers, Ola had emerged as the stronger brand. The factors influencing while decision-making are the exceptionally good marketing, simple app interface, untainted brand name, good service along with the POD i.e. better deals and discounts and a comparatively wider availability of cabs. The USP of Ola cabs was the price strategy, they bumped the prices by a little margin, in comparison to other major cab service providers. Despite from the fact that some consumers thought cab drivers were either being rude, misbehaving, driving rashly or not knowing the right way to the final destination; most of the students found cab services to be safe and reliable.
  31. 31. Take a Cab, Don’t buy a car Page | 30 RECOMMENDATION When work began on this journal, it was believed that consumers choose products on the basis of feasibility and economy, i.e. cheaper cab prices and faster travelling. This turned out to be quite the opposite in that the majority of the respondents still chose to own a car instead, irrespective of how cost ineffective, time consuming and inconvenient it was. However, this study not only proved that a simple user app interface and a good marketing strategy is much more efficient in combination with other marketing factors, but it also demonstrated that the majority of the consumers on the local market chose Ola solely because of these factors. Still there is a lot of scope of improvement if the idea of replacing personal cars with cab services needs to become a reality someday. Cab drivers should be given a proper training and punished if they are rude, misbehave, or driving rashly. They should have full knowledge of all the routes in the city and try to be more punctual. Last minute cancellations by drivers should be backed up with a substitute driver, which should reach the customer as soon as the information of one cancellation of cab is conveyed, in order to save valuable time of the customer. A proper code should be maintained to sustain a level in terms of cab condition and functionality to ensure a proper cool and clean journey for the customer.
  32. 32. Take a Cab, Don’t buy a car Page | 31
  33. 33. Take a Cab, Don’t buy a car Page | 32 BIBLIOGRAPHY Internet Websites:  http://drive.google.com/ (Used to prepare the questionnaire  Facebook.com (Used as a medium to share the survey)  http://timesofindia.indiatimes.com/home/sunday-times/Why-are-taxis-yellow-in- colour/articleshow/9254830.cms  http://articles.economictimes.indiatimes.com/2015-07-31/news/65074200_1_car- ownership-uber-and-ola-app-based-cab-services  https://en.wikipedia.org/wiki/Taxis_in_India
  34. 34. Take a Cab, Don’t buy a car Page | 33
  35. 35. Take a Cab, Don’t buy a car Page | 34 GLOSSARY 1. Plethora - a large or excessive amount of something. 2. Point of parity is a point of difference that a competitor has over you that you need to counteract. In many cases, you won't even be able to compete in the market unless you can nullify this advantage that your competitor has. 3. Point of parity is a point of difference that a competitor has over you that you need to counteract. In many cases, you won't even be able to compete in the market unless you can nullify this advantage that your competitor has. 4. The unique selling proposition (USP) or unique selling point is a marketing concept first proposed as a theory to explain a pattern in successful advertising campaigns of the early 1940s. The USP states that such campaigns made unique propositions to customers that convinced them to switch brands. 5. Bumps - In the example above, setting the price to $19.99 made it seem lower for two reasons. For one, it did not end with “.00” so it seems smaller. However, there is a larger reason – price bumps. In this example, $20 can be a price bump. The concept of price bumps is commonly applied to real estate and vehicles; the price you set puts your product in a different category, just like when someone shops for a home and limits his search to homes within the $150,000 to $175,000 price range. However, with price bumps comes certain expectations that you have to manage. You would expect a vehicle priced at more than $20,000 to have certain features; if you fail to provide those expected features, it could make your product less desirable. Of course, providing features that you would not expect at a certain price bump, such as paying less than $20,000 for a new four-wheel-drive vehicle, can demonstrate value.
  36. 36. Take a Cab, Don’t buy a car Page | 35 CONTENTS  Questionnaire
  37. 37. Take a Cab, Don’t buy a car Page | 36 QUESTIONNAIRE My name is Dushyant Singh, and I am studying MBA at ICFAI University, Hyderabad. This survey is created in order to help me with my market research regarding the statement ‘Take a cab, don’t buy a car’. The questions ask you your personal opinion about day to day choices and lifestyle related decisions, and it does not require that you have any special knowledge about the cab service providers or anything else. I would deeply appreciate if you would take two minutes of your time to complete this short questionnaire about the cab services. Your answers will be beneficial for the research, but you will remain anonymous as your answers will not be linked with your name. I will be happy to send you the results of the study if requested. Take a cab, don’t buy a car. * Required Name * Age * Gender * o Male o Female Profession * o Student o Service o Business o Homemaker o Other: How many hours do you travel daily? * o Less than 1 hour o 1-3 hours o More than 3 hours What mode of transport do you use mostly? * Multiple selections are allowed o Bus
  38. 38. Take a Cab, Don’t buy a car Page | 37 o Taxi o Car o Motorcycle o Auto-Rickshaw o Other: What is your average weekly expenditure on transportation? * (In Rupees) o 0-200 o 200-500 o 500-1000 o 1000-2000 o More than 2000 Which Cab Service do you prefer mostly? * Multiple selections are allowed o Ola Cabs o Meru Cabs o Sky Cabs o Uber o Dot Cabs o Other: On a scale of 1 to 5, how safe are cab services for you? * (In your city) 1 2 3 4 5 Not safe at all Very safe Do you prefer cabs over other modes of transport? If so, why? * Multiple selections are allowed o Easy availability of cabs in my location.
  39. 39. Take a Cab, Don’t buy a car Page | 38 o I like the quality of their service. o I like how simple it is to book a cab. o I get a wider range of choices. o Better deals and discounts are available. o I don't prefer cabs over other modes of transport. o Other: If no, why? Multiple selections are allowed o Cab drivers are not reliable o Cab drivers always reach late for pickup o Poor condition of the cabs. o Cab drivers seldom know the right route to your destination. o I don't trust online transactions. o Other: Did you ever face any problems while travelling in a cab? * o Yes o No If yes, what went wrong? How many cars does your immediate family own? * o 1 o 2 o 3 o 4 o More than 4 How hard is it to find parking in your current city? * o Not hard at all o Quite hard
  40. 40. Take a Cab, Don’t buy a car Page | 39 o Very hard o Impossible to park o Other: On a scale of 1 to 5, how important is it for you to own a car? * 1 2 3 4 5 Not Important at all Very Important Do you agree with the statement - Take a cab, don’t buy a car. * o Strongly disagree o Disagree o Somewhat agree o Agree o Strongly Agree Number of daily responses Fig. 1 133 responses were collected on 18th august 2015, It took a total of 2 days to compile all the data.

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