A study on consumer buying behaviour at the time to purchase hero honda bike

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A
STUDY
ON
CONSUMER BUYING BEHAVIOUR AT TIME TO
PURCHASE HERO HONDA BIKE.

A Report submitted in partial fulfillment of the requirements for the award
of the degree of

BACHELOR OF BUSINESS ADMINISTRATION
TO
SOUTH GUJARAT UNIVERSITY, SURAT

Submitted By:

Under the guidance of

Submitted To:
THE CO-ORDINATOR
THE SURAT PEOPLE’S CO-OP. BANK COLLEGE OF
BUSINESS ADMINISTRATION
UDHNA (SUART)

March 2007

1


THE SURAT PEOPLE’S CO-OP. BANK COLLEGE OF
BUSINESS ADMINISTRATION

CERTIFICATE OF THE FACULTY GUIDE

This is to certify that the project entitled “A STUDY ON CONSUMER
BUYING BEHAVIOUR AT TIME TO PURCHASE HERO
HONDA BIKE. Submitted in partial fulfillment for the award of the
degree of BACHELOR OF BUSINESS ADMINISTRATION
TO SOUTH GUJURAT UNIVERSITY, SURAT is a record of
bonafide research work carried out by ……………………under my
supervision and guidance.

Signature Signature

Project Guide Co-Ordinator
(……………….) (…………………..)

2


DECLARATION

I , …………………., here by declare that the project report entitled “A
STUDY ON CONSUMER BUYING BEHAVIOUR AT TIME
TO PURCHASE HERO HONDA BIKE. under the guidance of
Prof H. D. PATEL submitted in partial fulfillment of the requirement
for the award of the degree of Bachelor of business
administration to south Gujarat university , Surat is my
original Work - research study - carried out during 1st January, 2008
to 1st March ,2008 and not submitted for any other degree/ diploma/
fellowship or other similar titles or prizes to any other institute or
university by any other person.

Place: signature
Date:

ACKNOWLEDGEMENT

3


This is the pleasure movement for me to explicate my energized
intelligence. Thanks to Co-Coordinator Prof S.Z. daisy and to my guide
prof. H.D.Patel from the Surat people’s co-op. bank college of business
administration udhna, Surat. For accommodating advice during the
research and help provided by them in preparation of this report. This report
is guided by their co-operation and practicable suggestion. This study work
could be finished with in the period.

I got chance to recognize my aratitute to all staff to B.B.A.
department for making available all facilities to complete the research
work. As well as to all others who extended the precious co-operation by
providing all documents and details required for this work.

Place: -

Date: -

Roll No.:-

INDEX
4


PAGE
NUMBER SUBJECT NO.

1 • INTRODUCTUION 7
• INTRODUCTUION OF INDUSTRY 8-9
• HISTORY OF COMPANY 10-14
2 • THEORETICAL BACKGROUND 15-20
• CONSUMER BUYING BEHAVIOUR
3 • PROBLEM DEFINATION 21-23
• PROBLEM DEFINATION
• SCOPE OF STUDY
• OBJECTIVES OF STUDY
• LIMLTATIONS OF STUDY
4 • RESEACH METHODOLOGY 24-31
• INTRODUCTION
• RESEARCH DESIGN
• SOURCES OF DATA
• RESEARCH INSTRUMENT
• SAMPLING PLAN
• DATA COLLECTION METHOD
5 • DATA ANALYSIS AND INTERPRETATION 30-48
6 • TESTING OF HYPOTHESIS 49-51
7 • FINDINGS 52-53
8 • SUGGESTIONS 54-55
9 • SWOT ANALYSIS OF HERO HONDA 56-58
10 • REFERENCE MATERIAL 59
• BIBLIOGRAPHY 60-61
• APPENDIX 62-66

5


LIST OF TABLE AND GRAPH

No. Name of Tables And Graphs Page
No
1 Age wise Classification 33
2 Occupation wise Classification 34
3 Income wise Classification 35
4 Sources of finance 36
5 Analysis of Preferring Auto Mobile 37
6 Sources of Purchasing Bike 38
7 Age V/S usage of companies Bike 39
8 Decision maker for purchasing Bike 40
9 Feature Consideration when purchasing 42
Bike
10 Attributes of Showroom 44
11 Schemes that Attract most 46
12 Features of Purchasing Bike 48

6


CHAPTER : 1
INTRODUCTION

• INTRODUCTION OF INDUSRY

• HISTORY OF COMPANY

INTRODUCTION OF INDUSTERY

7


Throughout the centuries man has striven to expand his
capabilities through the use of machine. His ever inventive mind
has constantly devised ways to use tool to increase his abilities to
explore the world around him. To go faster, deeper, higher and
further than before. Coupled with his need to find new thrills, new
adventures and new modes of transportation, the invention
refinement of the motorcycle seems an inevitable out come.

It would seem that Michelangelo conceived of the bicycle as
early 14th century. And his drawing shows a remarkable
resemblance to he modern day bike. It had wheels of similar size
and even pedals and chain. Albeit without any apparent means of
steering.

Through never built, it was a remarkably clever design, and
early bicycle makers would have done well to study his concepts,
there have, in fact been 4 machines built based on his drawing,
attesting to the viability of his design.

It wasn’t until 1869 that the first serious attempts were made
to produce motor driven bicycles. These very first were powered
by steam, and driven by leather belts or as in the case of the roper
steam velocipede of 1869 by a system of levers attached to a crank
on the driven wheel.

In 1885 the Daimler, Europe this is consider by many as the
first true motorcycle or motor bicycle, as it was the first to employ
an internal combustion engine and was designed from the ground
up to be motor powered. Designed by gottlibe Daimler it was
powered by an Otto cycle engine producing about ½ horse powers.
Note this design again employed wooden wheels and Daimler

dropped the twist grip controls from his 1877 design in favor of
leavers on the frame.

8


In 1894 Hildebrand and Wolfmuller, France Worlds first
production motorcycle. It came with a 1428 cc water cooled four-
stroke motor producing 2.5 bhp. And speed of 25 mph.

In 1898 orient-Aster, USA the American made production
motorcycle was this entry built by the Metz Company, in Waltham,
mass, it used an aster engine that was a French copy of the Metz
Company, in Waltham, mass.

HISTORY OF COMPANY

9


Type : Public company

Founded : January 19, 1984

Headquarters : Haryana, Indian

Key People : Brijmohan lall munjal

(Chairman and managing Director)

Industry : Automotive

Produce : Motorcycle, Scooters

10


Hero Honda Motorcycles limited is an Indian manufacturer
of motorcycles and scooters. Hero Honda is a joint Venture that
began in 1984 between the Hero Group of India and Honda From
Japan. It has been the world’s biggest manufacturer of 2-wheeled
motorized vehicles since 2001. When it produced 1.3 million
motorbikes in a single year. Hero Hondas splendor is the largest
selling motorcycle its 2 plants are in Dharuhera and Gurgaon, both
in Haryana India. It specializes in dual use motorcycles that are
low powered but very fuel efficient.

11


India has the largest number of two wheelers in the world with
41.6 million vehicles. India has a mix of 30 percent automobiles
and 70 percent two wheeler in the country. India was the second
largest two wheeler manufacturer in the world starting in the1950s
with the birth of Automobile products of India (API) that
manufactured scooters. API manufactured the lambrettas but,
another company, Baja Auto Ltd. Surpassed API and remained
through the turn of the century from its association with piaggio of
Italy (manufactured of vespa)

The license raj that existed between the 1940s and 1980s in
India. Did not allow foreign companies to enter the market and
imports were tightly controlled. Customers in India were forced to
wait 12 years to buy a scooter from Bajaj. The CEO of Bajaj
commented that he did not need a marketing department, only a
dispatch department. By the year 1990, Bajaj had a waiting list that
was twenty-six times its annual output for scooters.

In the mid-1980s, the Indian government regulation changed
and permitted foreign companies to enter the Indian market
through minority joint ventures. The two wheeler market changed
with four indo-Japanese joint ventures: Hero Honda, TVS Suzuki,
Bajaj Kawasaki and Kinetic Honda. The entry of these foreign
companies changed the Indian market dynamics from the supply
demand side. With a larger selection of two-wheelers on the Indian
market, consumer started to gain influence over the products they
bought and raised higher customer expectations. The industry
produced more models, styling options, price, and different fuel
efficiencies. The foreign companies new technologies helped make
the products more reliable and with better quality. Indian
companies had to change to keep up with their global.

During the 80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle without polluting the

12


roads. The company introduced new generation motorcycles that
set industry benchmarks for fuel thrift and low emission. A
legendary 'Fill it - Shut it - Forget it' campaign captured the
imagination of commuters across India, and Hero Honda sold
millions of bikes purely on the commitment of increased mileage.
Hero Honda has consistently grown at double digits since
inception; and today, every second motorcycle sold in the country
is a Hero Honda. Every 30 seconds, someone in India buys Hero
Honda's top -selling motorcycle - Splendor. This festive season,
the company sold half a million two wheelers in a single month-a
feat unparalleled in global automotive history.

Hero Honda values its relationship with customers. Its unique
CRM initiative - Hero Honda Passport Program, one of the largest
programs of this kind in the world, has over 3 million members on
its roster. The program has not only helped Hero Honda
understand its customers and deliver value at different price points,
but has also created a loyal community of brand ambassadors.

Performance vis-à-vis Industry

The Indian two wheeler industries has seen a paradigm shift from
being a regime of regulation and tight control in the 1980s to a
more liberalized and a competitive present day era. After missing
out on the initial boom in two wheeler segment during the period
of 1993-1996, Hero Honda has emerged as a world leader. The gap
between motorcycles sold by Hero Honda and its closest rival is
approximately 1 m units (23% of industry size). One of the reasons
for the tremendous performance of Hero Honda is the significant
increase of share of motorcycles in the two-wheeler segment, from
42% in FY99 to 77% in FY04. No doubt, that the shift in
preference of Indian populace from scooters and mopeds towards
motorcycles has facilitated the growth of Hero Honda. However its
performance vis-à-vis industry indicates that the performance of

13


Hero Honda was better than the industry peers, barring two years.
In the seven-year period ending FY04, it has achieved a CAGR of
30% in two-wheeler volumes against 11% of the industry.

Excellent Collaborator Relationship:

Hero Honda is now the leading two-wheeler Company in India in
terms of net sales (sales less excise duty value, which was Rs 3171
crores). It is both the leading two wheeler manufacturer and
sales operation among Honda's worldwide operations. The
Company has maintained excellent relationship with all
stakeholders including its collaborators. Hero Honda has emerged
as the most successful joint venture Company of Honda in the
world, their relationship over 116 years old now.

14


CHAPTER:2
THEORITICAL BACKGROUND

• CONSUMER BUYING BEHAVIOUR

15


CONSUMER BUYING BEHVIOUR

The main aim of marketing is meet and satisfy target
customers need and wants buyer behavior refers to the peoples or
organization conduct activities and together with the impact of
various influence on them towards making decision on purchase of
product and service in a market. The field of consumer behavior
studies how individuals, groups and organization select, buy, use
and dispse of goods, service, ideas, or experience to satisfy their
needs and desires understanding consumer behavior and knowing
customer are never simple. The wealth of products and service
produced in a country make our economy strong. The behavior of
human being during the purchase is being termed as “Buyer
Behavior”. Customer says one thing but do another. They may not
be in touch with their deeper motivations. They are responding to
influences that change their mind at the last minute. A buyer makes
take a decision whether save or spend the money.

Definition of Buyer Behavior:-
Buyer behavior is “all psychological, Social and physical
behaviors of potential customers as they become aware of evaluate,
purchase, consume and tell others about product & service.

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CONSUMER BUYING DECISION PROCESS
There are following five stages in consumer buying decision
process.

1. Problem identification:-
The buying process starts when the buyer recognizes a problem or
need. The need can be triggered by internal or external stimuli.
Marketers need to identify the circumstances that trigger a
particular need. By gathering information from a number of
consumers, Marketers can identify the most frequent stimuli that
spark an interest in a product category. They can then develop
marketing strategies that trigger consumer interest.

2. Information Search:-
The consumer tries to collect information regarding various
products/service. Through gathering information, the consumer
learns about completing brands and their features. Information may
be collected form magazines, catalogues, retailers, friends, family
members, business association, commercial, chamber of
commerce, telephone directory, tradefair etc. Marketers should
find out the source of information and their relative degree of
importance to the consumes.
Personal Sources: Family, friends, neighbor, as
quittances.
Commercial Source: Advertising, sales persons, dealers,
packaging, displays.
Public sources: mass media, consumer, rating organizations.
Experimental sources: Handling. Examine, using the product.

17


3. Evaluation of alternative:-
There is no single process used by all consumers by one consumer
in all buying situations. There is several First, the consumer
processes, some basic concepts are:
First, the consumer is trying to satisfy need.
Second, the consumer is looking for certain benefits from the
product solutions.
The marketer must know which criteria the consumer will
use in the purchase decision.

4 . Choice of purchasing decision:-
From among the purchase of alternatives the consumer makes the
solution. It may be to buy or not to buy. If the decision is to buy.
The other additional decisions are:
Which types of bike he must buy?
From whom to buy a bike?
How the payment to be made? And so on.
The marketer up to this stage has tried every means
to influence the purchase behavior, but the choice is properly
consumers. In the evaluation stage the consumer forms preferences
among the brands in the choice set. The consumer may also form
an intention to but the most preferred brand.

18


5. Post Purchase Behavior:-
After purchase the product, the consumer will experience the same
level of product. The Marketer’s job not end when the product is
buying must monitor post-purchase satisfaction, post-purchase
action, post-purchase use and disposal
 Post Purchase Satisfaction:-
The buyer, S satisfaction is a function Of closeness between the
buyer, S expectation and the products Perceiver performance.
The larger the gap between expectation and performance, the
g greater the consumer dissatisfaction.

 Post purchase Action:-
The Consumer, S satisfaction or dissatisfaction with the product
influence subsequent behavior. If the consumer satisfied, he or she
will exhibit a higher probability of purchasing the product again.
Dissatisfaction consumer may abandon and return the product.

 Post-Purchase Use or Disposal:-
The marketer should also monitor new buyers use and
dispose of the product. If the consumer store the product in a close,
the product is probably not very satisfying. If the consumer throws
the product away, the marketer needs to know how they dispose of
it; especially it can be hurt the environment.

19


Characteristic of Buyer Behaviors
The chief characteristics of the buyers behaviors are as
follow:-

(1) It consists of mental and physical activities which consumers
undertake to get goods and services and obtain satisfaction from
them.

(2) It includes both observable activities such as walking through
the market to examine merchandise and making a purchase and
mental activities-such as forming attitudes, perceiving advertising
material, and learning to prefer particular brands.

(3) Consumer behaviors are very complex and dynamic to
constantly changing. And therefore, management need to adjust
with the change otherwise market may be lot.

(4) The individuals specific behaviors in the market place is
affected by internal factor, such as need , motives, perception, and
attitudes, as well as by external of enviourmenatal influences such
as the family social groups, culture, economics and business
influences.

20


CHAPTER:3
PROBLEM DEFINATION

• PROBLEM DEFINATION

• OBJECTIVE OF STUDY

• LIMITATIONS OF STUDY

21


PROBLEM DEFINATION

To know the best consumer buying behavior and demand into
the minds of consumer of Surat city because always consumer say
something and does something. There are many companies
manufacturing motorcycles into the market, at the same time as
there are many companies manufacturing motorcycles, idea about
thinking of customer on whether, what, how, and for whom to
purchase the motorcycle.

Therefore, research is required to measure present consumer
buying behavior at the purchase of Hero Honda bike. so the
researcher problem is to identify what are the criteria that
prospective customer takes into consideration before buying the
motorcycles.

SCOPE OF STUDY

 The main scope of the study is limited to Surat city.

 It also analysis the benefits accruing to the company as a
result of those service.

 This study has been made to find the level of satisfaction the
customer has regarding the service provider by bike place.

22


OBJECTIVES OF STUDY

 To know market position of Hero Honda bike in the
market.

 To know consumer behavior for purchase of two wheeler
bike.

LIMITATIONS OF STUDY

 When the buyers are busy we can’t get accurate data from
them.

 According to the time limit of our project we can cover
only the some area.

 During survey some respondents may not give answer in a
proper manner.

23


CHAPTER:-4
RESEARCH METHDOLOGY

• INTRODUCTION
• RSEARCH DESIGN
• SOURCES OF DATA
• SAMPLING PLAN
• DATA COLLECTION METHOD

24


RESERCH METHODOLOGY
(A)Introduction
Marketing research is the function which links the
consumer, customer and public to the marketers through
information used to identify and define marketing, opportunities
and problems, generates refine marketing action; monitor
marketing performance; and improve understanding of marketing
as a process.

Marketing research specifies the information required
to address these issues; designs the method for collection
information manages and implements the data collection process;
analysis the results and communication the findings and their
implication.

Research definition:
“Research is careful inquiry or examination to discover
new information and relationship and to expand and to verify
exiting knowledge,”

Research always starts with questions or a problem. Its
purpose is to find answer to questions through the application of
the scientific method. It is a systematic and intensive study
directed towards a more complete knowledge of the subject
studies.

25


(B) Research design

“Research design is the plan, structure and strategy of
investigation conceived so as to obtain answer to research question
and to control variance.”
- BY KERLINGER
From definition it is evident that research design is ore or less a
blueprint of research.

At the outset may be noted that there are several ways of
studying and tackling a problem. There is no signal perfect design.
The research design can be classified in to true broad categories:

(A) Exploratory
(B) Descriptive
(C) Casual

Exploratory research is focus on the discovery of ideas.
Exploratory research is carried out to define problems and
developed hypothesis to test later. An exploratory study is
generally based on the secondary data that are reading available. It
does not have to change his focus of direction, depending on the
availability of new ideas and relationship among variables.

Descriptive studies are undertaken in many circumstances.
Descriptive studies can be complex, determining a high degree of
scientific skill on the part of the researcher.

Casual research helps in determined cause and effect
relationship. Between two or more variables.

26


The present study seeks to find out the consumers attitude
towards buying of bike. The study also aims at findings out the
drawbacks of the marketing set up of Hero Honda PVT. LTD. So
this makes the study a descriptive one.

(D) Sources of Data

The sources of data collection methods are as follows.

a) Primary data:-

The primary data is that which details we collect first time
from the market and also used first time in the research. We also
say that the information is first time in the research decision. To
collect the primary data questionnaire is prepared structure non-
disguise questionnaire is prepared.

b) Secondary data:-

Secondary data are those data which are already collected by
someone for some purpose and are available for the present study;
secondary data are already collected by the company’s records and
other library’s books. When the secondary data are sufficient, the
researcher has to be satisfied with the primary sources of data.
Secondary data can be used as bases for comparison with primary
data have been collected by questionnaire.

27


(E) Data Collection Method
Researcher instruments is the tool by which the researcher
can do research on specific problems or objective. The most
popular researcher instrument for collection data is
“Questionnaire” for a particular investigation. It is simple for a
moiled set of questions presented to respondents for their answers.
Due to this flexibility, it is most common instrument used to
collect the primary data. During the pre- testing of questionnaire, I
seen the reaction of respondents and suggestions required to make
change in research instrument.

The questionnaire contains three types of questions.

 Open-ended question:-

It is helpful in knowing what is uppermost in the mind of the
respondents. It gives complete freedom to the respondent.

 Dichotomous questions :-

It has only two answers in form ‘yes’ or ‘n’, ‘true’ or ‘false’,
‘use’ or ‘do not use’. So the respondent is offered two or more
choice.

 Multiple-choice question:-

In this, the respondent is offered two or more choice.

28


(F) Sampling plan

Sampling is a process of obtaining. The information about
the entire population by examine a part of it .The effectiveness of
the research depends on the sample size selected for the survey
purpose.

(A) sample Site:-

The survey was conducted in SURAT CITY.

(B)Sampling Unit:-

It means “Who is to be surveyed”. Here target population
is decided and it is who are interested to purchase “Bike” and
sampling frame is developed so that every one in the target
population has known chance of being sampled. So the survey is
conducted particularly in Surat City.

(C)Sample size:-

For the purpose of proper survey, there is need of perfect
research instruments to find out sample size for more accurate
result about buying behavior of bike. The sample size is 100
respondents.

29


Statically Formula for Sample Size is:-

n=p*q (z/e) 2

Were,

n=Sample Size

p=0.80(probability of satisfied customer)

q=0.20(I-p)

z=1.96(The z (95%) score associated with the degree of
Confidence)

e=0.05 (tolerable error)

n= (0.84)*(016)*(1.96/0.05)2

= (0.1344)*(1536.64)

=206.52

Sample Size n=206.52

Here, from calculation n=206.52 is found but for the simplicity of
the study n=206.52have taken.

30


(D)Sampling Method:-

A Stratified random sample is one where the population is
divided in to mutually exhaustive strata or sub-group and then a
simple random is selected within each of strata on age groups,
occupation etc. It may be noted that stratification does not means
absence of randomness. I use a simple random sampling method.

31


32


1. AGE WISE CLASSIFICTION
Age (in year) No. of respondents Percentage (%)
18-20 30 30
21-25 37 37
26-30 15 15
31-35 06 06
36-40 07 07
41& above 05 05
Total 100 100

Age wise Classification

7, 7% 5, 5%
6, 6% 30, 30% 18-20
21-25
26-30
31-35
15, 15%
36-40
41& above
37, 37%

(Sources: Questionnaire-personal Detail)

Comment:-
Above Graph shows are 30% of respondent in age group
of 18-20, 37%of respondent in age group of 21-25, 15% of
respondent in age group of 26-30, 7% and 5% respondent are come
in 36-40 and 41&above.

2. OCCUPATION WISE CLASSIFICATION

33


Occupation No. of respondents Percentage (%)
Servicemen 47 47
Student 30 30
Business 12 12
Profession 08 08
Others 03 03
Total 100 100
Occupation Wise Classification
100
No. of Respondents

80
60
No. of respondents
40 Percentage (%)
20
0
s
en

t

on
s
en

er
s
m

ne

si

th
ud
e

es
i

O
ic

us
St

of
rv

B

Pr
Se

Occupation

(Sources: Questionnaire-personal detail)

Comment:-
Above Chart Shows that 47 respondent are Servicemen out
of 100 and 30 are the students. 12 respondents are businessman.

3. INCOME WISE CLASSIFICATION

34


Income Level No. of respondents Percentage (%)
<= 5000 54 54
5000-10,000 25 25
10,000-15,000 11 11
15,000-20,000 07 07
20,000 Above 03 03
Total 100 100

Income Wise Classification

7, 7% 3, 3%

11, 11%
5000
5000-10,000
10,000-15,000
15,000-20,000
54, 54%
20,000 Above
25, 25%

(Sources: - Questionnaire – Personal Detail)

Comment:-
Above graph shows that 54% of respondents are income
in <=5000 income level, Second 25% of respondents are of
5000-10,000 income level. 11% of respondents are of
10,000-15,000, 7% of respondents are of 15,000-20,000 and
remain 3% of respondents above 20,000 of income level.

35


4. SOURCES OF FINANCE

Sources of Finance No. of respondents Percentage (%)
By cash 45 45
By Loan 55 55
Total 100 100

55 55
60 45 45
50

40 No. of
respondents
30 Percentage (% )
20

10

0
By cash By Loan

(Sources: - Questionnaire—Que.8)

Comment:-
Above Graph shows that 55 people purchase Hero
Honda Bike For by Loan and 45 people purchase Hero Honda Bike
from Cash.

36


5. ANALYSIS OF PREFERING AUTO MOBILE

Auto Mobiles No. of respondents Percentage (%)
Shivani 20 20
Dhru 17 17
Siddhi 11 11
Other 52 52
Total 100 100

No. of respondents

Shivani
20%
Other Dhru
52% 17%
Siddhi
11%

(Sources: - Questionnaire – Que.7)

Comment:-

Above Chart shows that out of 100, 52 % respondents
prefer other Automobile to purchase bike. 20 % respondents prefer
shivani Automobile to purchase bike.

6. FROM WHICH SOURCE YOU PURCHSE BIKE?

37


Sources No. of respondents Percentage (%)
News Paper 12 12
T.V.Advertisement 14 14
Friends 26 26
Others 48 48
Total 100 100

No. of respondents

News Paper, 12
T.V.Advertiseme
nt, 14
Others, 48

Friends, 26

(Sources: - Questionnaire – Que.3)

Comment:-
Above graph shows that 48 % respondents are come to
know from the ‘other’. Then 26 % respondents are come to know
from the ‘friends’. 14 % & 12 % respondents are come to know
from the T.V.Advertisement & news paper.
7 AGE V/S USAGE OF COMPANIES MOTORCYCLE

Age (in Hero Bajaj TVS Yamaha Honda Total
year) Honda

38


18-20 15 05 03 02 05 30
21-25 23 06 03 03 02 37
26-30 09 02 01 03 00 15
31-35 02 00 01 01 02 06
36-40 01 2 02 01 01 07
41& above 01 01 00 02 01 05
Total 51 16 10 12 11 100

Age V/S Of Companies Motorcycles

25

20
No. Of Respondents

18-20
21-25
15
26-30
31-35
10
36-40
41& above
5

0
Hero Honda Bajaj TVS Yamaha Honda

(Sources: - Questionnaire – personal detail)

Comment: -
Above Charts shows that 51 respondents are use Hero
Honda Company’s Motorcycle. And 16 respondents are using
Bajaj bikes.
4. WHO IS DECISION MAKER FOR PURCHASING BIKE IN
YOUR FAMILY?

Sources No. of respondents Percentage (%)
Father 46 46
Self 42 42
Mother 10 10

39


Others 02 02
Total 100 100

Decision maker for purchasing bike

50 46
46
42
42
40

30

20 No. of respondents
Percentage (%)
10
10 10
2
0 Percentage (%)
2
Father No. of respondents
Self
Mother
Others

(Sources: - Questionnaire – personal detail & Que-4)

Comment:-

Above Graph shows that 46 % respondents take decision
by father for purchasing bike. And 42 % respondents are take
decision by self for purchasing bike.

5. WHAT FEATURES YOU CONSIDERS WHEN YOU
PURCHASE BIKE PLEASE GIVES THE RANK.

40


Weightage 6 5 4 3 2 1
Attributes Excellent Very Good Averag Poor Very Total Total
Good e Poor score
Price 30 20 18 16 10 06 100 426
Less 18 11 17 30 13 11 100 358
maintenance
Style 21 18 19 10 11 21 100 355
Durability 10 17 16 24 21 12 100 335
Mileage 24 19 14 17 09 17 100 381
Easy Driving 20 12 21 23 10 14 100 367
Brand 17 19 14 21 17 12 100 362
Reputation
Color 28 19 18 13 10 12 100 406
Pick up 19 22 15 20 14 10 100 382
Total 187 157 152 174 115 115 900 3370

Attributes Weightage
Price 426
Less maintenance 358
Style 355
Durability 335
Mileage 381
Easy Driving 367
Brand Reputation 362

41


Color 406
Pick up 382
Total 3370

Feature of purchasing Bike

11% 12% Price
Less maintenance
12% 11% Style
Durability
Mileage
11% 11% Easy Driving
Brand Reputation
10% Color
11%
11% Pick up


Comment:-

Above chart show that more no of respondents are give
more weightage to the price.

6. RATE THE FOLLOWING ATTRIBUTES OF
SHOW ROOM

42


Attributes Excellent Very Good Average Poor Total
Good
Available 30 24 18 16 12 100
After Service 16 35 24 15 10 100
Knowledge 20 21 23 20 16 100
Of Sales man
Service 25 18 27 19 11 100
Infrastructure 12 29 20 17 22 100
Total 103 127 112 87 71 500

43


Attribute of show room

100
12 10 11
90 16
22
80 16 15
19
no of respondents

20
70 17 Poor
18 24
60 Average
27
50 23 20 Good
40 24 Very Good
35 18
30 21 Excellent
29
20
30 25
10 16 20
12
0
Available After Service Knowledge Of Service Infrastructure
Sales man


Comment:-

Above chart shows that 30 respondents out of 100 are
available who give Weight age on the excellent and second 35
respondents out of 100 are after service who gives Weight age on
the Very Good, 23 respondents are Knowledge of salesman who
give Weight age on the good, 27 respondents are service who give
Weight age on the good, 29 respondents are Infrastructure who
gives Weight age on the Very Good.

44


9. RATE THE FOLLOWING SCHEMES THAT
ATTRACT YOU MOST.

Good
Festival 43 21 12 14 10 100
Offer
Exchange 15 31 29 12 13 100
Offer
Special Gift 20 19 30 20 11 100
Cash 11 21 19 34 15 100
Discount
Anniversary 14 13 12 20 41 100
Offer
Total 103 105 102 100 90 500

45


Anniversary Offer

Cash Discount
Poor
Average
Special Gift Good
Very Good
Excellent
Exchange Offer

Festival Offer

0 20 40 60 80 100


Comment:-

Above graph shows that in festival offer 43 respondents
out of 100 are give a excellent, then in exchange offer 31
respondents out of 100 are give a very good rank, in special gift 30
respondents are give a good rank, in cash discount 34 respondents
are give a average rank

46


10. RATE THE FOLLOWING FEATURE YOU HAVE
PURCHASE HERO HONDA BIKE

Good
Mileage 31 26 15 18 10 100
Available 14 25 32 16 13 100
Price 16 22 42 11 09 100
After Service 20 31 25 14 10 100
Pick up 21 36 17 15 11 100
Style 18 25 15 26 16 100
Color 20 24 26 10 20 100
Average 27 24 20 15 14 100
Total 167 213 192 125 103 800

47


Average 27 24 20 15 14

Color 20 24 26 10 20

Style 18 25 15 26 16
Excellent
Pick up 21 36 17 15 11 Very Good
Good
After Service 20 31 25 14 10
Average
16 22 42 11 9 Poor
Price

Available 14 25 32 16 13

Mileage 31 26 15 18 10

0 20 40 60 80 100


Comment:-

Above graph show that respondents give more weightage
to the price then after they give more weightage to the mileage
before purchasing motorcycle.

48


CHAPTER: 6
• TESTING OF HYPOTHESIS

49


TESTING OF HYPOTHESIS
A hypothesis is a proposition, which the researcher wants to
verify. It is tall test and my null hypotheses are,

H0: P = 0.40
H1: P ≠ 0.40

With reference to favorable market of Hero Honda Bike.

Now to verify this hypothesis I have taken significantlevel of
1 %. It means in the long run risk of making the wrong decision is
I out of every 100.

Since the sample size is more than 30 the use of Z test is
most applicable.

Now,
P = Probability of Hero Honda is given best by consumer.
Q = Probability of other company bike is given best by consumer.
X = Hero Honda bike is purchased by consumer.
N = Total no. of Respondents.

P = x/n
=51/100
=0.51
q =1-p i.e. 0.49

Z calculation = p–q
_______
_______
√ PQ
_______
100

50


= 0.51- 0.40
__________
__________
√ 0.49*0.4
________
100

= 0.11
________
________
√ 0.00196

= 0.11
_______
0.04427

= 2.48

= 2.48 < 2.56

So, How may accepted at 1 % level of significance. It may be
concluded that 40 % of consumer go for other company bike and
60 % go for Hero Honda bike.

51


CHAPTER: 7
•FINDINGS

52


FINDINGS

 The study shows that 51 respondents are using Hero Honda.
 The current trend is that respondents give maximum no of point
to price and mileage.
 The study show that 48 respondents are come to know from
“others” and 26 respondents are come to know from “friends”
about Hero Honda bike.
 The study shows that 55 respondents are purchase Hero Honda
bike by Loan and 45 respondents are purchase Hero Honda bike
by cash.
 The study shows that 31 respondents are give point to mileage.
 The study shows that more no. of respondents gives more
weightage to price. The more no. of serviceman, Students,
Businessmen, and others give more weightage to the price when
Professionals give more weightage to the mileage.
 The study shows that 46 respondents are father take a decision
to purchase bike And 42 respondents are self take a decision to
purchase bike.
 The study shows that 30 respondents are give rank to available
in show rooms and 35 respondents are give rank to after service.
 The study shows that 43 respondents are giving excellent to
festival offer and 41 respondents are give poor rank to the
anniversary offer.
 The study shows that 45 respondents are purchase Hero Honda
bike whose salary is below 5000 income.

53


54


SUGGESTIONS

1. Hero Honda should introduce a low price moped

2. For the promotion, company show make road-show that will

3. Increase the sales. The company should give more
concentrate on the advertisement.

4. Hero Honda Company should implement a new strategy to
reduce the competition and lead into the bike market.

5. As people expect more mileage per kilometer, company
should increase the mileage of the hero Honda bike.

6. Hero Honda should make a sports bike like to Kawasaki
Suzuki Hyabusa bikes which can run with maximum speeds.

55


SWOT
ANALYSIS
OF
HERO HONDA

56


SWOT ANALYSIS

Strengths

 Ability to understand customer’s needs and wants

 Recognized and established brand name

 Effective advertising capability

Weaknesses

 R&D is not close to the Hero manufacturing plant

 Hero is vulnerable in the joint venture because

 Honda Motor Company has so much power

57


 Opportunities

Global expansion into the Caribbean and Central
America

Expansion of target market (include women)
Become India’s leader in the scooter market

 Threats

Honda Motorcycles and Scooters India can take
away market share and cause joint venture to go sour

Bajaj Motors is a strong competitor

58


CHAPTRE: 8
REFERENCE MATERIAL

• BIBLOGRAPHY

• APPENDICES

59


BIBLIOGRAPHY

60


 Marketing research, G.C.Beri, Third Edition, Tata McGraw
Hill Publishing Company Limited, New Delhi, 2000

 Marketing management, Philip Kotler, Twelth (Millennium)
edition, Prentice-Hall of India Private Limited, New Delhi, 2003

 www.herohonda.com

61


APPENDICES

QUESTIONNAIRE

62


A STUDY ON CONSUMER BUYING BEHAVIOUR AT
TIME TO PURCHASE HERO HONDA BIKE.

1 Do you have own bike?

(a) Yes [ ]. (b) No [ ]

If yes than,

2 Which company bike do you have at present?

Company ____________________

3 Whom do you refer to purchasing bike?

(A) News paper [ ] (C) TV advertisement [ ]
(B) Friends [ ] (D) others [ ]

4 Who is decision maker for purchasing bike in your family?

(A) Father [ ] (B) Mother [ ]
(B) Self [ ] (D) other [ ]

5 How you purchase bike?

(A) By cash [ ] (B) By Loan [ ]

63


6 What features you considers when you purchase bike
please give the rank.

attributes excellent Very good Average Poor Very
good poor
price
Less maintenance
Style
Durability
Mileage
Easy driving
Brand reputation
Color

7 Rate the following attribute of show room

Attributes 1 2 3 4 5

Available
After sales
Services
infrastructure

8 From where are you purchasing___________?

(A) Shivani Auto [ ] (C) Shiddi Auto [ ]
(B) Dhruv Auto [ ] (D) others [ ]

64


9 Rate the following schemes that attract you most.

attributes 1 2 3 4 5
Special
offer
Exchange
offer
Special
gift
Cash
discount

10 Rate the following feature you have purchase hero Honda
Bike.

Attribute 1 2 3 4 5
Mileage
Available
Price
After service
Pick up

11 give your suggestion.

___________________________________________________
___________________________________________________
___________________________________________________

• CUSTOMER PERSONAL INFORMATION:-

A. Name: - ___________________________________________

B. Address:-___________________________________________

65


___________________________________________
___________________________________________

C. phone no:-__________________________________________

D. Age (in year):-

18 to 20 [ ] 21 to 25 [ ]
26 to 30 [ ] 31 to 35 [ ]
36 to 40 [ ] 41 & above [ ]

E. Occupation:-

Services [ ] Businessman [ ]
Students [ ] Professional [ ]
Others [ ]

F. monthly income:-

5000 [ ] 5000-10,000 [ ]
10,000-15,000 [ ] 15,000-20,000 [ ]
20,000 Above [ ]

Sing.___________________

Date.___________________

66

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