Project & Viva-voceRoll No.

:74500240102017-18

CHAPTER – 1
INTRODUCTION

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1. INTRODUCTION
The main aim of marketing is to meet and satisfy target customers need and wants. Buying
behaviour refers to the peoples or organization conduct activities and together with the
impact of various influences on them towards making decision on purchase of product and
service in a market. The field of consumer behaviour studies how individuals, groups and
organization select, buy, use and dispose of goods, service, ideas, or experience to satisfy
their needs and desires understanding consumer behaviour and knowing customer are
never simple. The wealth of products and service produced in a country make our economy
strong. The behaviour of human being during the purchase is being termed as ―Buyer
Behaviour‖. 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.

1.1 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 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. They can then develop marketing strategies that triggers
consumer interest.
2. Information Search: The consumer tries to collect information regarding various
product/services. Through gathering information the consumers learn about
different brands and their features. Information may be collected from magazines,
catalogue, retailers, friends, family members, business association, commercial,
chamber of commerce, telephone directory, trade fair etc. marketers should find out
the source of information and their relative degree of importance to the consumers.
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 process,
some basic concept are:-
 The consumer is trying to satisfy need.
 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. Purchase decision: The marketer up to this stage has tried every means to
influence the purchase behaviour 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 buy the most preferred brand.
5. Post Purchase Behaviour: Post purchase satisfaction- If the performance falls
short of expectations, the consumer is disappointed; if it meets expectations, the
consumer is delighted. These feelings make a difference in whether the consumer
buys the product again and talks favourably or unfavourably about it to others.

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1.2 FOUR TYPES OF CONSUMER BEHAVIOUR

Consumer behaviour is an interdisciplinary science and relatively emerged as a new field of

study in the mid to late 1060s. This new discipline is borrowed heavily from concepts
developed in other scientific disciplines such as applied psychology, social psychology,
cultural anthropology, economics and econometrics. Therefore, it is crucial to discuss various
dimensions of consumer behaviour in the context of Indian consumer.

1. Complex Buying Behaviour: When the consumer is highly involved in the

buying and there is significant differences between brands then it is called complex
behaviour. So in this case the consumer must collect proper information about the
product features and the marketer must provide detailed information regarding the
product attributes. For example Consumer while buying a motor cycle is highly
involved in the purchase and has the knowledge about significant differences
between brands.

2. Variety Seeking Behaviour: In this case consumer involvement is low while

buying the product but there are significant differences between brands. Consumers
generally buy different products not due to dissatisfaction from the earlier product
but due to seek variety. Like every time they buy different washing detergent just for
variety. So it is the duty of the marketer to encourage the consumer to buy the
product by offering those discounts, free samples and by advertising the product a
lot.

3. Dissonance buying behaviour: Here consumer is highly involved in the

purchase but there are few differences between brands. Like consumer while buying
a floor tiles buy them quickly as there are few differences between brands.

4. Habitual buying behaviour: In this case there is low involvement of the

consumer and there are few differences between brands. The consumer buys the
product quickly. For eg. Toothpaste. These are the types of consumer buying
behaviour.

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CHAPTER – 2
COMPANY PROFILE

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2.1 HYUNDAI MOTORS

HYUNDAI MOTORS established in 1967, Hyundai Motor Co. has grown into the Hyundai
Motor Group, which was ranked as the world’s fifth-largest automaker since 2007 and
includes over two dozen auto-related subsidiaries and affiliates.
Hyundai Motor, which exported its first independently-made vehicle, the Pony, in 1976, now
exports over one million high-quality vehicles ranging from sedans, SUVs, trucks and buses.
In 2010, Hyundai Motor sold about 3.6 million cars worldwide, up 16.3 percent from 2009.
Hyundai Motor, South Korea’s largest automaker, sold 659,565 cars in the Korean domestic
market in 2010, reaching a market share of about 45 percent. Outside Korea, the company
sold about 2.9 million cars in 2010 in over 186 countries through some 5,300 dealers.

2.2 GLOBAL OPERATION

Employing over 78,000 people worldwide, Hyundai Motor is implementing a new global
policy aimed at localization. This includes product development, design, sales, marketing,
and consumer services to satisfy local customers’ tastes as well as that of the global market.
Currently Hyundai Motor has six overseas plants in the U.S., India, China, Turkey, the Czech
Republic and Russia. The company will add a seventh plant by 2012, in Brazil. Hyundai Motor
today has a combined global production capacity of about 3.91 million units a year (Korea
Domestic: 1.86 million / Overseas: 2.05 million).

2.3 COMPANY HISTORY

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung Chung
established Hyundai Auto Service in Seoul, South Korea at The age of 31 years. The name
Hyundai was chosen for its meaning which in English translates to “modern.” The Hyundai
logo is symbolic of The Company's desire to expand. The oval shape represents The
Company's global expansion and the stylized "H" is symbolic of two people (The Company
and customer) shaking hands.

Hyundai Motor India Limited was formed in 6 May 1996 by the Company of KOREA.
The first production plant was established in IRRUNGATTUKOTAI near Chennai, India.
HMIL's first car, The Hyundai SANTRO was launched in 23 September 1998 and was a
Runaway success. Within a few months of its inception HMIL became the second largest
Automobile manufacturer and The largest automobile exporter in India.

Hyundai sells several models in India, The most popular being Santro Xing, i10 and
The i20 other models Include Getz Prime, Accent, Verna Transform, Tucson, and
Sonata Transform.

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2.4 ABOUT HYUNDAI MOTORS INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the second
largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across
segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes the
Accent and the Verna, the A5 segment includes the Sonata Transform.

HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. To cater to rising
demand, HMIL commissioned its second plant in February 2008, which produces an
additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000
units per annum.

As HMC’s global export hub for compact cars, HMIL is the first automotive company in India
to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars to
more than 110 countries across EU, Africa, Middle East, Latin America, Asia and Australia. It
has been the number one exporter of passenger car of the country for the sixth year in a
row. To support its growth and expansion plans, HMIL currently has a 290 strong dealer
network and 580 strong service points across India, which will see further expansion in 2010.

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CHAPTER – 3
INDUSTRY PROFILE

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3.1 INDUSTRY PROFILE

The automotive industry is a wide range of companies and organizations involved in the
design, development, manufacturing, marketing, and selling of motor vehicles,[1] some of
them are called automakers. It is one of the world's most important economic sectors by
revenue. The automotive industry does not include industries dedicated to the maintenance
of automobiles following delivery to the end-user, such as automobile repair shops and
motor fuelfilling stations.

The term automotive was created from Greek autos (self), and Latin motives (of motion) to
represent any form of self-powered vehicle. This term was proposed by Elmer Sperry.

3.2 HISTORY OF AUTOMOBILE INDUSTRY

The automotive industry began in the 1890s with hundreds of manufacturers that pioneered
the horseless carriage. For many decades, the United States led the world in total
automobile production. In 1929, before the Great Depression, the world had 32,028,500
automobiles in use, and the U.S. automobile industry produced over 90% of them. At that
time the U.S. had one car per 4.87 persons.[3] After World War II, the U.S. produced about 75
percent of world's auto production. In 1980, the U.S. was overtaken by Japan and then
became world's leader again in 1994. In 2006, Japan narrowly passed the U.S. in production
and held this rank until 2009, when China took the top spot with 13.8 million units. With
19.3 million units manufactured in 2012, China almost doubled the U.S. production, with
10.3 million units, while Japan was in third place with 9.9 million units.[4] From 1970 (140
models) over 1998 (260 models) to 2012 (684 models), the number of automobile models in
the U.S. has grown exponentially.

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The automotive industry in India is one of the largest in the world with an annual
production of 23.96 million vehicles in FY (fiscal year) 2015–16, following a growth of 2.57
per cent over the last year. The automobile industry accounts for 7.1 per cent of the
country's gross domestic product (GDP). The Two Wheelers segment, with 81 per cent
market share, is the leader of the Indian Automobile market, owing to a growing middle
class and a young population. Moreover, the growing interest of companies in exploring the
rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV)
segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth expectations for the
near future. In FY 2014–15, automobile exports grew by 15 per cent over the last year. In
addition, several initiatives by the Government of India and the major automobile players in
the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four
Wheeler (4W) market in the world by 2020.

The Hyundai Motor Company is a South Korean multinational automotive manufacturer

headquartered in Seoul, South Korea. The company was founded in 1967It is the third
largest vehicle manufacturer in the world.

Hyundai operates the world's largest integrated automobile manufacturing facility[6] in

Ulsan, South Korea, which has an annual production capacity of 1.6 million units. The
company employs about 75,000 people worldwide. Hyundai vehicles are sold in 193
countries through some 5,000 dealerships and showrooms.

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CHAPTER – 4
LITERATURE REVIEW

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LITERATURE REVIEW

In most post purchase behaviour customers tend to evaluate purchasing through a trail or
experience some level of satisfaction or dissatisfaction. If the product meets his or her
expectations, the consumer is likely to satisfied, but if it falls short, the consumer is likely to
be dissatisfied. Thus, customers may evaluate the product prior to their preconceived
expectations.

- Schiffman (2008)

An outcome of the evaluation is either the performance that matches expectations, that
performance which exceeds expectations or that the performance below expectations. The
amount of dissatisfaction depends on the size of the different between expectations and
performance.

- Kotler, (1996)

Bruner and Pomazal (1988) argue that a purchase is done by a consumer after s/he first
recognizes some kind of problem, and thus the purchase is a solution to the experienced
problem. Further, Bruner and Pomazal (1988) state that to be able to conduct a purchase the
problem recognised needs to be defined. Consumer tend to choose to buy the product by
considering characteristics such as location, price assortment personnel, store image and
service etc.

- Boone and Kurtz, (2006)

The decision making process can be used to analyzed consumer purchasing decision of
certain product that required enormous level of engagement from a customer.

- Kotler & Armstrong, (2002)

A group membership can influence individual‘s purchase decision by values, attitude and
behaviour that a group deems appropriate for its member. Hence, many consumers are
often strongly making decision by people who the consumer knows and trusts.

- Boone and Kutz (2006)

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The physical action or behavior of consumer and their buying decision every day can be
measured directly by marketers (Papanastassiu and Rouhani, 2006). For that reason many
organizations these days are spending lot of their resources to research how consumer
makes their buying decision, what they buy, how much they buy, when they buy, and where
they buy.

- Kotler, Amstrong, (2001)

To get a well coherent result, organizations normally looked at these behavior base their
analysis on difference conceptions; whether customers buying behaviour were measured
from different perspectives, such as product quality and better service, lower price
structured etc.

- Papanastassiu and Rouhani, (2006)

Different theories and researchers have claimed that when organizations fully meet all
aspects of its customer needs, the result enhances their profitability. Chaudhuri, (2006) And
also enable them to develop better tackling strategies for consumer.

- Asseal, (1998)

The reason why marketer chooses to learning about consumers‘ buying behavior is, from a
business perspective; to be able to be more effectively reach consumers and increase the
chances for success.

- Sargeant& West, (2001)

Complex Buying Behaviour

This kind of buying behaviours significantly involved the consumers when making a purchase
decision. This kind of buying behaviours demand consumer to highly involve within the
process. In case of high involvement, consumers distinguish salient differences among the
competing brands

- Kotler, Wong, Saunders, Armstrong, (2005)

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Variety Seeking Buying Behaviour

This type of consumer level of involvement is low. However consumer may became critical in
terms of brand differences. Additionally, consumer may easily switch from Hero Pleasure to
Honda Activa i.e. from one brand to another. The consumers can now have beliefs about the
various brands and choose a brand without much evaluation.

- Aaker, (1991)

The common value terms often involve in the trade-off between quality and price, which
also may also be defined the ‗value-for-money between quality and price, which also may
defined the ‗value-for-money perspective.

- Sweeney and Soutar,( 2001)

Cue Utilization Theory

A number of cues are studied in many researches. In judging the product quality, these cues
can be used to indicate, including ‗country of origin‘ (Eliot and Cameron, 1994), ‗product
composition‘ (Olson, 1972), ‗brand name‘, ‗store name‘ (Dodds, 1995) and ‗price‘ (Shapiro,
1973; Brooker et al., 1986). As mentioned in the cue utilisation theory, consumers try
decrease risk by applying cues (e.g. brand name, price, colour, advertising, etc) as a way of
determining the service or the product quality. Thus, the reliance on one or one or more
cues is a risk-reduction strategy.

- Hansen, (2005)

Information processing perspective

Consumers are expected to apply their cognitive resources in creating ‗beliefs‘ (cognitive
part) about the attribute of a product, which may result of the progression of an overall
feeling (affective part) in the sense of liking/disliking product. Consumers with a positive
attitude to a product are expected to be more willing to consider purchasing in (cognitive
part) than consumers with less positive attitude to the same product.

- Dubois (2001)

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CHAPTER – 5
RESEARCH METHODOLOGY

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5. RESEARCH METHODOLOGY
Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.

5.1 Research Objective

1. To study the concept of consumer buying decision while purchasing four wheelers.
2. To identify the factors influencing consumer buying decision.
3. To find out the most influencing factor while purchasing four wheeler (Hyundai i20).

5.2 Research Design

The research problem having been formulated in clear cut terms, the researcher will be
required to prepare a research design, i.e., he will have to state the conceptual structure
within which research would be conducted. The preparation of such a design facilitates
research to be as efficient as possible yielding maximal information. In other words, the
function of research design is to provide for the collection of relevant evidence with minimal
expenditure of effort, time and money. But how all these can be achieved depends mainly
on the research purpose.

5.3 Types of Research Design

 Descriptive research - Descriptive research includes surveys and fact-finding

enquiries of different kinds. The major purpose of descriptive research is description
of the state of affairs as it exists at present. The main characteristic of this method is
that the researcher has no control over the variables; he can only report what has
happened or what is happening. Most ex post facto research projects are used for
descriptive studies in which the researcher seeks to measure such items as, for
example, frequency of shopping, preferences of people, or similar data.

 Exploratory research - Exploratory research, as the name states, intends

merely to explore the research questions and does not intend to offer final and
conclusive solutions to existing problems. Conducted in order to determine the
nature of the problem, this type of research is not intended to provide conclusive
evidence, but helps us to have a better understanding of the problem. When
conducting exploratory research, the researcher ought to be willing to change
his/her direction as a result of revelation of new data and new insights.

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 Casual research - Casual research, also known as explanatory research is

conducted in order to identify the extent and nature of cause-and-effect
relationships. Causal research can be conducted in order to assess impacts of specific
changes on existing norms, various processes etc. Causal studies focus on an analysis
of a situation or a specific problem to explain the patterns of relationships between
variables. Experiments are the most popular primary data collection methods in
studies with causal research design.

5.4 Source of data

 Primary data: The primary data are those which are collected a fresh and for the
first time, and thus happen to be original in character.

 Secondary data: The secondary data, on the other hand, are those which have
already been collected by someone else and which have already been passed
through the statistical process.

5.5 Method of Data Collection

 Quantitative data collection methods are based in mathematical calculations

in various formats. Methods of quantitative data collection and analysis include
questionnaires with closed-ended questions, methods of correlation and regression,
mean, mode and median and others. These includes:
 Observation method
 Interview method
 Questionnaires
 Experimental

 Qualitative research methods, on the contrary, do not involve numbers or

mathematical calculations. Qualitative research is closely associated with words,
sounds, feeling, emotions, colours and other elements that are non-quantifiable.
These includes:
 Focus group interview
 Depth interview
 Projective technique

5.6 Terminologies

 Sampling location: The area where the survey was conducted.

 Sampling elements: The people who responded to the survey.
 Sample size: Number of population on whom the survey was conducted.

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5.7 Research Plan

PARTICULARS DESCRIPTION

Research design Descriptive research design

Data collection Primary and Secondary

Research instrument Questionnaire

Research technique Survey

Sampling method Convenience sampling

Sample location Durg, Bhilai

Sample size 100 customers

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CHAPTER – 6
DATA ANALYSIS AND INTERPRETATION

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