CONSUMER BUYING BEHAVIOUR TOWARDS SUZUKI TWO-

WHEELERS IN KATHMANDU VALLEY

(V.G. SUZUKI)

Under Graduate Applied Business Research Project Report

submitted to
Kathmandu University School of Management
in partial fulfillment of the requirements for the

Bachelor of Business Administration

Submitted By

Jayson Shrestha
015794-13

Under the supervision of

Ms. Sunanda Sharma

Faculty of Marketing and Communications
 DECLARATION

Acknowledgement

I would like to thank Ms Suba

I would also like to thank the management of the Kathmandu University School of Management
for the course on

Last but not least,I would like to extend my warm greetings to all who have helped me by filling
up the questionnaire
 BACKGROUND
Suzuki company started as a company that produced weaving looms 1909 to building its
first motorized bicycle in 1952.Suzuki after years of technical advancement in automobile
sector afterwards made way into Nepal through V.G Automobiles. V.G. Automobiles is the
authorized importer and distributor of Suzuki Motorcycle and scooters in Nepal. The company
started its operation in September 2013 with own two showrooms at Teku (Kathmandu) and
Kumaripati (Lalitpur) and 25 appointed dealer partners Currently ,there are more than 70
Suzuki 3S Network (Sales, Service and Spares) all over Nepal.

The company succeeded to achieve the sales figure of four digits in less than three
months with five models. The major market of Suzuki two-wheelers are the urban areas of
Nepal and utilizes a strong distribution channel to make their products available in the market.

PROBLEM STATEMENT
V.G Automobiles company is unable to identify the consumers attitude towards Suzuki
two wheelers in Kathmandu. If this problem couldnt be identified, the organization would not
be able to form customer centric marketing strategy.

This research intends to measure present consumer buying behavior while purchasing a Suzuki
two-wheeler in Kathmandu as various factors comes into play for the choice of consumer in this
product category.

Therefore, the problem is to identify what are the criterias that a prospective customer
takes into consideration before buying a two wheeler.

Management Dilemma
The company has not been able to expand its market share in Kathmandu valley.

Management Question
What can be done to improve the market share of Suzuki in Kathmandu valley?

Research question
The major question this research intends to answer are:
RQ1: What is the consumers attitude towards Suzuki two wheelers in Kathmandu
valley?
RQ2: What are the major factor affecting consumer buying behavior at time of
purchasing Suzuki Two-wheelers in Kathmandu valley?

Research Objective
The major objective of this research specifically include the following:
O1: To know consumer attitude towards Suzuki two wheeler bike.
 O2: To know the factors considered by consumers before purchasing two wheeler.

Research Design

For the purpose of understanding Consumer buying behavior towards Suzuki Two-
wheelers in Kathmandu, quantitative method of data collection will be used through
questionnaire survey. The sampling bracket consists of the participants from the Kathmandu
valley. The sample size is 50, having an open age bracket. The type of sampling is the
convenient sampling.

The present study seeks to find out the consumers attitude towards buying of two-
wheelers. The study also aims at findings out the drawbacks of the marketing set up of Suzuki
motorcycle in Kathmandu. Thus, the study is mainly descriptive in nature.

Literature review
Consumer buying behavior is studied as part of the marketing and the main objective of
it is to learn why consumers buy, use and dispose the product and how consumers base their
purchasing decision on factors such as their previous experience, price and branding. (Kotler
and Keller, 2012).

Buying behavior refers to the conducting of activities by people who with the impact of
various influences on them, moves towards making a decision on purchase of product or
service in a market. The behavior of human being during the purchase is being termed as
Buyer Behavior.

According to Blackwell et al (2006), There are following five stages in consumer buying
decision process

1. Problem/need recognition
2. Information search,
3. Evaluation of alternatives,
4. Purchase decision made
5. Post-purchase evaluation.

The buying process begins when the buyer recognizes a problem or a need. In case of
automobiles, it could be price, style, mileage or other factors.
Consumer searches for information after they have recognized the need. In cases where
customers drive is strong, information is searched externally and more extensively (Bruner &
Pozmal, 1988)
 After recognizing the issue, the consumer tries to gather information about products
related to their needs. The consumer could gain the information through various sources such
as advertisements, family members, magazines and such. After acquiring the information,
customers use a variety of criteria in deciding which store to visit and which product to buy,
including selection, price, quality, service, value, and convenience (Boone and Kurtz, 2006).

The evaluation of alternatives by the consumer is done after assessing various factors they
require in their product. Choosing from the alternatives, a consumer decides on a product. The
consumer may focus on some factors more than the others and choose one of them .
To be able to conduct a purchase the problem recognized needs to be defined. (Bruner and
Pomazal ,1988).

The factors or needs may include brand name, pricing of the product, design or other such
factors. In post purchase evaluation, customer tend to evaluate their purchase through trial and
experience of the product and decide whether the product is satisfactory or not.

For this research, the process of how a consumers mind works helps in understanding
and creating a strategy to spark interest in the consumer mind, create brand awareness of the
product through use of effective mediums and help to get an upper hand against its
competitors. Since understanding the essential factors that influences buyers to purchase
Suzuki two-wheelers is the main objective, Understanding the characteristics of the targeted
consumers and how they base their decision on purchasing it is a highly important factor.
 Conceptual framework
The independent variable for buyers decision to purchase two wheelers are Price,
Maintenance cost, Two-wheeler design, Mileage and Brand awareness. The correlation of the
dependent and independent variable is measured using Likert scale having range from 1 to 5
with options ranging from strongly disagree to strongly agree. The following figure illustrates
the conceptual framework of the research:

Buyers Decision to purchase Price

Maintenence cost
two wheeler

Design

Mileage

Brand Awareness
Hypothesis

Hypothesis 1
Null hypothesis: The price of two wheelers does not affect the purchase decision
of the two wheeler

Alternate hypothesis: The price of two wheeler affects the purchase decision of
the two wheeler

Hypothesis 2
Null hypothesis: The Maintenance cost of two wheelers does not affect the
purchase decision of the two wheeler
Alternate hypothesis: The Maintenance cost of two wheeler affects the
purchase decision of the two wheeler

Hypothesis 3
Null hypothesis: The design of two wheelers does not affect the purchase
decision of the two wheeler
Alternate hypothesis: The design of two wheeler affects the purchase decision
of the two wheeler

Hypothesis 4
Null hypothesis: The brand awareness of two wheelers does not affect the
purchase decision of the two wheeler
Alternate hypothesis: The brand awareness of two wheeler affects the purchase
decision of the two wheeler

Hypothesis
Null hypothesis: The mileage of two wheelers does not affect the purchase
decision of the two wheeler
Alternate hypothesis: The mileage of two wheeler affects the purchase decision
of the two wheeler