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PROJECT REPORT
ON
CONSUMER BUYING BEHAVIOUR AT TIME TO
PURCHASE HERO HONDA BIKE.
SUBMITTED TO
PUNJAB TECHNICAL UNIVERSITY
Submitted by submitted to
Manohar Mr. Kamaldeep singh
BBA-III Lecturer In management
Uni. Roll no. 81409320060
1
CERTIFICATE
This is to certified that Manohar lal student of
BBA 3rd sem GNA-IMT Phagwara ,has
undergone this project of “CONSUMER BUYING
BEHAVIOUR AT TIME TO PURCHASE HERO HONDA
BIKE” under the supervision of Mr. Kamaldeep
singh and submitted satisfactory project report
during session 2008-11.
This report satisfies entire practical
fulfillment for the Punjab technical university
examination.
In the sincere efforts of the student hard-
work, this report satisfies the practical study of
them certified by Punjab technical university.
………………
Teacher sign
2
PREFACE
Beginning of the system project is entirely creative. This does not come all of a sudden,
but it comes by result of discussion, consultation and contemplation. Problem unsolved
here can never be satisfactory eliminated later. It is therefore a slow process.
3
ACKNOWLEDGEMENT
Manohar
4
INDEX
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 32-46
INTERPRETATION
6 • TESTING OF HYPOTHESIS 47-49
7 FINDINGS 50-52
8 SUGGESTIONS 53-54
9 SWOT ANALYSIS OF HERO HONDA 55-56
10 REFERENCE MATERIAL 57
• BIBLIOGRAPHY5 58
• APPENDIX 59
LIST OF TABLE AND GRAPH
6
CHAPTER :
1
INTRODUCTION
• INTRODUCTION OF INDUSRY
• HISTORY OF COMPANY
7
INTRODUCTION OF INDUSTERY
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.
8
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.
9
History OF COMPANY
Industry : Automotive
10
Produce : Motorcycle, Scooters
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.
12
During the 80s, Hero Honda became the first company in India to
prove that it was possible to drive a vehicle without polluting the
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.
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
13
motorcycles has facilitated the growth of Hero Honda. However its
performance vis-à-vis industry indicates that the performance of
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.
14
CHAPTER:2
THEORITICAL BACKGROUND
15
CONSUMER BUYING
BEHVIOUR
16
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.
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.
19
Characteristic of Buyer Behaviors
The chief characteristics of the buyers behaviors are as
follow:-
20
CHAPTER:3
PROBLEM
DEFINATION
• PROBLEM DEFINATION
• OBJECTIVE OF STUDY
• LIMITATIONS OF STUDY
21
PROBLEM DEFINATION
SCOPE OF STUDY
The main scope of the study is limited to Phagwara city.
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
Limitations of study
When the buyers are busy we can’t get accurate data from
them.
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.
Research definition:
“Research is careful inquiry or examination to discover
new information and relationship and to expand and to verify
exiting knowledge,”
25
(B) Research design
(A) Exploratory
(B) Descriptive
(C) Casual
26
Casual research helps in determined cause and effect
relationship. Between two or more variables.
a) Primary data:-
b) Secondary data:-
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.
Open-ended question:-
Dichotomous questions :-
Multiple-choice question:-
28
In this, the respondent is offered two or more choice.
(B)Sampling Unit:-
(C)Sample size:-
29
Statically Formula for Sample Size is:-
n=p*q (z/e) 2
Were,
n=Sample Size
q=0.20(I-p)
n= (0.84)*(016)*(1.96/0.05)2
= (0.1344)*(1536.64)
=206.52
30
(D)Sampling Method:-
31
32
1) Have a bike
2) Company name
33
Company No. of respondent(30)
Bajaj 11
Hero Honda 9
TVS 3
LML 7
3) Media
34
Newspaper 4
Television 9
Friends 14
Other 3
4) Advertisement influence
35
No 8
36
6) Decision maker
37
7) Mode of purchase
38
8) Features consider
Features No. of respondent(30)
Price 2
Style 9
mileage 8
Easy driving 3
Color 4
Brand reputation 4
39
9) Time period
40
10)Schemes attracts
41
11)Change a bike
42
12)Test drive
43
13) Satisfaction
44
CHAPTER: 6
45
• TESTING OF HYPOTHESIS
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
46
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
= 0.51- 0.40
__________
__________
√ 0.49*0.4
________
100
= 0.11
________
________
√ 0.00196
= 0.11
_______
47
0.04427
= 2.48
CHAPTER: 7
48
• FINDINGS
Findings
49
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.
50
SUGGESTIONS
51
2. For the promotion, company show make road-show that will
52
SWOT
Analysis
OF
HERO
HONDA
SWOT Analysis
53
Strengths
Weaknesses
Opportunities
54
Global expansion into the Caribbean and Central
America
Threats
55
CHAPTRE: 8
REFERENCE MATERIAL
• BIBLOGRAPHY
• APPENDICES
56
BIBLIOGRAPHY
57
58