Small Car Segment

Submitted by:
Group # 8

Raunaq Singh : 08EM-034

Deepankar Agarwal : 08EM-014

Sumit Agrawal : 08EM-045

Sushan Rungta : 08EM-048

 Small Car Segment

INDEX

1) Introduction

2) Executive Summary

3) Introduction to consumer Behaviour and Perception.

♦ Consumer Behaviour

♦ Bases of Consumer Behaviour

♦ Consumer Perception

4) Industry Insight

♦ Industry Background

♦ Current Market Scenario

5) Passenger Car Segmentation

♦Classification of Indian Car Market

♦ Key Demand Drivers

6) Pricing

7) Research Methodology

8) Research and Data Analysis

♦ Data Analysis

♦ Research analysis (Graphs)

9) Conclusions and Recommendations

10) Scope and Limitations

11) Bibliography

12) Annexure -Questionnaire

 Small Car Segment

INTRODUCTION

You can't decide what exactly is it that you want. You ask yourself: "Do I want
power, or do I want fuel-efficiency? Which car offers me the best combination of
both? Is seating for five with a toothbrush tucked in enough for me, or do I need
place to pack in a wardrobe for the weekend? Am I happy with the plain Jane
Maruti 800, or can I and should I stretch for that sexy Palio?" Diesel or petrol? Big
or luxury? Tough questions huh?

Well, in today’s scenario with competitive marketing and globalization, the job for
the consumers has become very tough and confusing whether to buy A or to buy B.
The market is so vast, competitive and complex that it often confuses the buyers.
The decision taken for buying a product and choosing one is more often
incomplete and sometimes not fully satisfactory.

In Luxury Segment Cars the options are wide and identical to each other. In Indian
scenario the luxury segment cars have the biggest share in the car industry. It
directly aims at the middle class and lower middle class of the society. Even the
upper classes do find it of immense satisfaction and utility. Therefore the buyers
are in a bulk for this segment. But what is not clear here, is that the buyers are not
fully aware of all features & what is provided by whom. This seems to be the point
of discussion and study on which this project is based on.
 EXECUTIVE SUMMARY

The objective of this project is to determine the decision making process by the
consumer while purchasing a luxury segment Car.

Firstly, we took mainly three brands of luxury cars BMW,AUDI,MERCEDES

for a comparative study of luxury car segment. We got the companies’ broad
background; their entry into the segment, their positioning strategies of cars and
other factors affecting the consumer’s buying behavior.

Later we went through the process of filling the questionnaires, to know exactly
what the customer’s of luxury cars perceived about their cars. A sample size of
hundred respondents was taken. Sample unit was a customer who owned a
luxury car. Secondary data from various sources like magazines, journals etc
was also collected.

The findings showed that the consumer’s who owned luxury cars basically
wanted good performance, after sales service and a car at their budget.

All the cars taken for the sample showed that the consumers perceived them as
almost same in all the attributes like safety, comfort and luxury. Respondents
liked AUDI more for its looks, whereas BMW after sales service was perceived
to be good.

But, at the end the research was limited due to luxury sample size, luxury sample
area and time constraints.

OBJECTIVES OF THE PROJECT

1. Examine the psychographics of potential luxury size car customers.

2. Probe the buying behavior of car owners.

3. To study the attributes of different brands of luxury cars.

4. To probe into consumer’s knowledge about cars.

 Small Car Segment

INTRODUCTION TO CONSUMER BEHAVIOR

AND PERCEPTION

♦ CONSUMER BEHAVIOR

♦ BASIS OF CONSUMER BEHAVIOR

♦ CONSUMER PERCEPTION AND SENSATION

 CONSUMER BEHAVIOR

The study of consumer behavior is the study of how individuals make decisions to
spend available resources on consumption related items. It includes the study of
what they buy , why they buy it, where they buy it, how often they buy it and how
often they use it.
Consumer Behavior has been variously defined and with varying stress and focus.
Consumer behavior can be described as acts directly involved in obtaining and
using economic goods and services. It also includes the preceding decision process
and influence the experience obtained from such acts. Consumer Behaviour is “the
way people act in the exchange process “.
Consumer Behaviour is “the behaviour that consumer display in searching for,
purchasing, using and evaluating products, services, and ideas which they expect
will satisfy their needs”.
Another definition of Consumer Behaviour can be said as “those actions directly
involved in obtaining, consuming, and disposing of products and services,
including the decision processes that precede and follow these actions.
Consumer Behaviour keeps changing, consumer preferences of yesterday may
not hold well today and tomorrow-new motivations, and new aspirations may take
hold. It is this ever-changing nature of consumer’s behaviour that provides a
challenge to marketing professionals, and is responsible for dubbing the consumer
“as a moving target”.
Consumer Behaviour is the action people takes in purchasing and using products
and services, including the mental and social process that precede and follow these
actions.

CONSUMER PERCEPTION
Perception can be defined as “how we see things around us”. Two individuals
may be subject to same stimuli under the same apparent conditions, but how each
person recognise them, and interprets them is highly individual process based on
each person’s own need, values and expectation.
Perception is defined as a process, which an individual selects, organizes and
interprets stimuli into a meaning full and coherent picture of the world.
A stimulus is any unit of input to any of the senses example of stimuli includes
product, packages, brand names and commercials. Sensory receptors are the human
organs that receive sensory inputs. All of these functions are called into play either
singly or in combination in the evaluation and use of most consumer products.
 Small Car Segment

INDUSTRY BACKGROUND

Overview of Indian automobile

Indian automobile industry is riding high with overwhelming economic growth
rate of 8.4% in 2005-06. The industry has been growing at CAGR of 16.33% from
2001-02 to 2005-06 in terms of production.

This is easy to understand because the per capita disposable income of the people
has gone up remarkably. Over the last five years, per capita personal disposable
income has gone up by around 8%, which has increased purchasing capacity of the
people in the country.

Other factors have also contributed to this high growth in Indian automobile sector.
These include lowering age of first car users, shorter replacement cycles, rising
dual income families, new technology, which is lowering cost of ownership, low
car penetration in the country and most importantly growing steel production in the
country. In addition, wide variety and easily available financing options are also
some of the major reasons for surge in demand for automobiles in India.

Domestic sales have grown at CAGR of 14.27% from 2001-02 to 2005-06. The
commercial vehicle segment, in particular, has increased at CAGR of 24.35%
during the above-mentioned period; whereas total sales of passenger cars in
domestic market have increased at CAGR of 14.02%. In terms of production,
commercial vehicles have registered a CAGR of 24.55% from 2001-02 to 2005-06;
while passenger vehicles have registered a CAGR of 18.24%. There is a declining
trend in mopeds production as well as in sales in the domestic market. During
2001-02, mopeds production and sales have declined at CAGR 2.93% and 5%
respectively.
Current Market Scenario

India's domestic passenger car sales have increased by 22.01%, up from 882,208 in
2006 to 1,076,408 units in 2007. Overall, the automobile industry posted a 13.50%
growth.

Global Automotive Financial Review forecasts the Indian passenger car market
sales will rise up to19 lakh cars by the end of 2010 leading to a growth of above
50% and there will be more than 2 million cars in the Indian car market.

The passenger car segment has seen an impressive growth in the Indian automobile
market because of the change in standard of living, their high-end incomes, easy
monthly installment (EMIs) and loan schemes offered by banks and financial
institutions to buy cars. Indian car market has received a major boost due to these
reasons and now foreign players are moving in to capture a market share.
 Small Car Segment

PASSENGERS CAR SEGMENTATION

Passenger Cars Segmentation

The segmentation of the passenger car market in India is vastly different

from that in the developed nations. In India, the economy segment
accounts for the largest share of the cars sold, as compared to mid-range
segment in the mature markets. The economy and the premium segment
face the lowest competitive threats, while the premium segment will
witness intense competition due to lower volumes.

Segment-Wise Classification of the Indian Car Market

Segment

Range Price (in lacks) Models

Economy Maruti 800, Maruti Omni,

Premier, Fiat , Reva.

Mid-range 3 –4 Uno, Zen, 118 NE, Ford Fiesta, Fiat

Premium 5– 7 Esteem, Contessa, Opel Astra, Ford

Escort, Cielo, Mitsubishi Lancer,
Hyundai Accent

Key Demand Drivers

Traditionally, disposable income was perceived as the one critical factor
that drove passenger car demand. However, household income is no
longer the single most important factor in determining the demand for
vehicles. Other critical factors are the mobility needs of people and the
availability of cheap finance. The number of high-income households is
growing very rapidly, more so in the rural areas. The development of the
used car market will also play a major role, as the customers will be
encouraged to trade in their old cars. The key to the growth of future
markets is to make maintenance-free vehicles, to improve the road
infrastructure, and to reformulate fuels and lubricants so as to reduce
vehicle-operating costs.
 PRICING
In any business, nothing is more dangerous than using money as the magnet for
attracting customers. It kills loyalty, mangles margins, and encourages defections.
But it is the Unique Selling Price the only road to success in the intensely
competitive automobiles business?

Those in the race for winning over the Rs. 7,500-crore luxury cars market seem to
believe so. We have seen Maruti Udyog Ltd (MUL) announcing first ever price
cuts – from Rs 6,998 to Rs 36,808 on its different models – to deflect attention
from the launch of the Telco’s Indica. It was, of course, Hyundai Motors that had
set the pace by putting a ticket of Rs 2.99 lakh on the basic model of its Santro.
Then, even as customers rubbed their eyes in disbelief at the Indica’s Rs 2.59 lakh
entry price.

In the luxury car segment, the only ‘P’ that, suddenly, seemed to matter was the
second in the Product-Price-Promotion-Place marketing-mix.

The typical Indian car-buyer is obsessed with post-purchase pricing. Which is, in
effect, the cost of maintenance and the possible re-sale value. And obviously, the
lower the selling price of a second hand model, the less is the purchaser’s incentive
to opt for it.

However, not every company plays the price-card. Instead of cutting the price of
Santro, Hyundai Motors has launched an enhanced version with product features
like power steering, and product-plus features like better service and customer-
care. Hyundai arrived at the pricing strategy after a careful analysis.

Attempting to sell the lowest priced car in every segment will not enable a
company to survive.

Hyundai realised the difficulty to compete in the car markets and decided to go for
sharp differentiation strategy. In order to avoid the price game, it decided to
reinforce the individualistic positioning of the brand and tried to match the
customer’s perception that the car is commodity using other differentiators.
Hyundai opted against the drop in prices, one reason being the fact that, buyers are
shopping for brand associations and customers are unlikely to let their decisions be
swayed by savings of a few thousands.

Sure, the lower price will be an attraction to the first-time buyer who is, essentially,
stretching his budget to buy personal transportation. The less the stretch, the more
is the likelihood of actually buying a car instead of, say, a two-wheeler. So, even a
drop of Rs.1000 in the luxury cars segment could expand its size.

Thus price can be a selling proposition for only one segment of customers. But a
company that seeks life-long customers, who progressively move up its product
ladder, cannot rely on price alone for success.
 Small Car Segment
The response of the customers to the Santro seems to indicate a market in the
luxury car segment, which is prepared to pay premium for a superior features and
performance. Santro and launch of Accent appear to be a conscious effort on
Hyundai’s part to meet the needs of different customers in the luxury car market.
Maruti’s response of cutting down on price seems to be a defensive measure aimed
at retaining market share by concentrating on the price sensitive market segment.
The Hyundai has stretched both price and feature thresholds and created market for
itself.

Entry of Hyundai has changed the very nature of the competition as it has
introduced contemporary product into the market.
 RESEARCH METHODOLOGY

A research design is the arrangement of condition for collection and

analysis of data in a manner that to, combine relevance to research
purpose with economy in procedure.

Research Design is conceptual structure within which research is

conducted. It constitutes the blue print of collection, measurement and
analysis of data. Research Design is needed because it facilitates the
smooth sailing of various research operations, thereby making research as
efficient as possible yielding maximum information with minimum time,
effort and money. Research Design stands for advance planning of
methods to be used for collecting relevant data and techniques to be used
in the analysis .The design helps researcher to organize his ideas whereby
it will be possible for him to look for flaws and inadequacies.

MAJOR OBJECTIVES OF THE PROJECT

• Examine the psychographics of luxury size car customers.

• Probe the buying behavior of car owners.

• To examine the decision making process of the customers while

purchasing a luxury segment car.
 Small Car Segment
Sources of primary and secondary data:

The major aim of the project was to analyze the competition of different
car brands in the market. Therefore we had to get considerable
information about the competing luxury cars. For this we had to go
through a lot of secondary data.

A lot of issues of auto India, Motoring and Motor India were consulted

. Since the research aims at finding the attitude of people towards the
different brands of cars, a conclusive research was conducted. The data
collection form was designed in the form of a standard questionnaire
because it is more reliable than unstructured format. By reducing the
chance or the sample to influence results through different questions and
through different judgment of answers and what to record, the structured
questionnaire produces more reliable results i.e. if the research project is
repeated in the same manner, similar results will be obtained.

Most of the questions asked in the questionnaire were closed ended with a
few open-ended questions also, to know consumers general views. Some
questions are designed for the purpose of cross checking the samples
genuineness in filling the questionnaire.

For the purpose of analysis, ranking scale is used to rank the preferences
of attributes of the customers. (Semantic differential scale is used to
understand the images of brands of cars as perceived by the consumers.
This scale is used because it permits the development of descriptive
profiles that facilitates the comparison of competitive items.)

Universe: The universe is entire group of items the researchers wish to

study and about which they plan to generalize. For this, the universe
consists of people of Delhi who own luxury car. Selecting the sample: for
this project, a probability sampling method is used. Probability sampling
method is that in which every item in the universe has a known chance of
being chosen in the sample. Here the sample size consists of 30 residents
of Delhi. The probability sampling is preferred because:

• It is the only sampling method that provides essentially

unbiased estimates having measurable precision. If the
investigator requires this level of objectivity, then some variant
of probability sampling is essential.

• The probability sampling permits the researchers to evaluate in

quantitative terms, the relative efficiency of alternate sampling
techniques in a given situation. Usually this is not possible in
non-probability sampling.
 DATA ANALYSIS

Sample size - 30

Respondents - 27

Owners of Santro - 6

Owners of Zen - 9

Owners of Indica - 6

Owners of 800 - 4

Owners of other cars – 3

 Small Car Segment
FACTORSAFFECTINGPURCHASEDECISION

COMFORT
GEARBOX
BOOTSPACE
FUELEFFICIENCY
LOWMAINTAINENECECOSTS
COLOUR
VALUEADDEDACCESSORIES
INTERIORS
SAFETYFEATURES
LOOKS
PRICE

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

%OFRESPONDENTS

RESPONDENTS’ RANKING OF ATTRIBUTES

Attributes Preference Rank

SAFETY 1

PERFORMANCE 2

COST 3

LOW MAINTENANCE 4

AFTER SALES SERVICE 5

BRAND NAME 6

CREDIT FACILITY 7
 CREDIT FACILITY
PREFERENCE POINTS

SAFETY

BRAND NAME

AFTER SALES SERVICE

LOW MAINTENANCE

COST

PERFORMANCE

0 50 100 150 200 25

ATTRIBUTES

0100090000032a0200000200a20100000000a20100002606

0f003a03574d46430100000000000100ca050000000001000
 Small Car Segment

000180300000000000018030000010000006c00000000000

00000000000080000001000000000000000000000000f3c00

005e1a000020454d46000001001803000012000000020000

0000000000000000000000000000050000d0020000400100

00b400000000000000000000000000000000e2040020bf020

0160000000c000000180000000a0000001000000000000000

000000000900000010000000670200000e01000025000000

0c0000000e000080250000000c0000000e000080120000000

c00000001000000520000007001000001000000f1ffffff0000

000000000000000000009001000000000000044000224300

61006c006900620072006900000000000000000000000000

000000000000000000000000000000000000000000000000

000000000000000000000000000000001100a45b11001000

0000085f1100885c110052516032085f1100005c110010000

000705d1100ec5e110024516032085f1100005c1100200000

0049642f31005c1100085f110020000000ffffffff8c0cd200d06

42f31ffffffffffff0180ffff01800fff0180ffffffff000000000008000

000080000d4fba20301000000000000006000000025000000

372e90010000020f0502020204030204ef0200a07b2000400

0000000000000009f00000000000000430061006c00690062

00720000000000a023050370a060324e88bdfd6c0cd2004c5

bc400345c11009c3827310600000001000000705c1100705c

1100e878253106000000985c11008c0cd2006476000800000
000250000000c00000001000000250000000c000000010000

00250000000c00000001000000180000000c0000000000000

254000000540000000000000000000000080000001000000

0010000000000c8410000c841000000000d00000001000000

4c000000040000000000000000000000670200000e0100005

0000000200000000900000046000000280000001c0000004

744494302000000ffffffffffffffff680200000f01000000000000

460000001400000008000000474449430300000025000000

0c0000000e000080250000000c0000000e0000800e0000001

400000000000000100000001400000004000000030108000

50000000b0200000000050000000c020e016702040000002e

0118001c000000fb021000070000000000bc0200000000010

2022253797374656d0000000000000000000000000000000

000000000000000000000040000002d010000040000002d0

1000004000000020101001c000000fb02f1ff0000000000009

001000000000440002243616c69627269000000000000000

00000000000000000000000000000000000040000002d010

100040000002d010100040000002d0101000500000009020

00000020d000000320a0d000000010004000000000067020

e0120470900040000002d010000040000002d01000003000

0000000
NUMBER OF RESPONDENTS
ADVERTISEMENTRECALLOFHYUNDAI

70

60
Small Car Segment
50
INFLUENCING FACTORS IN DECISION MAKING
40

30
80
70
20
60

10 50 FRIENDS
PERCENTAGE OF
RESPONDENTS 40 FAMILY
0 30 MEDIA
MAGAZINE TELEVISIO
20 N HOARDING NEWSPAPER
OTHERS
ADVERTISEMENTVEHICLE
10
0
1
INFLUENCERS

BRAND RECALL

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
SANTRO INDICA MARUTI ZEN MARUTI 800

BRAND RECALL
 EFFECTIVE MEDIUM FOR BUYING CARS

ANY OTHER

AUTO EXHIBITIONS

MAGAZINES

HOARDINGS

NEWSPAPERS

TELEVISIONS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

EFFECTIVE MEDIUM FOR BUYING CARS

WHICH CAR IS THE BEST IN

OVERALL PERFORMENCE

SANTRO
INDICA
MARUTI-800
MARUTI ZEN
 Small Car Segment

CONCLUSIONS AND RECOMMENDATIONS

Consumers of luxury cars are seeking a very good overall performance in a car
than any other attributes. Most of the consumers prefer Luxury cars and mid sized
cars for their good mileage, good acceleration, easy driveability, requiring
luxury rooms for parking. Good looks hardly count for the buyers of
luxury cars.

Again a good after sales service and low maintenance in a vehicle is a

garnish on customer’s delight. Safety and credit facility are almost
ignored factors in purchasing a luxury car.

Family wields the highest influencing power in making a purchase

decision for an Indian consumer. Friends and media also have a good
impact on decision-making. A very few customers get influenced by
dealers also.

Usually consumers get detailed information through friends, magazines,

other car owners and dealers whereas, they get the product information
from the other sources like television, hoardings etc.

Earlier Maruti used to have very high Brand recall but now Hyundai has
taken over followed by Indica, Zen and then Maruti 800.This gives Maruti
a fight to retain its leadership position.

Indica and Santro has outscored Zen and Maruti 800 in brand recall with
their scintillating marketing and advertising strategies and made their
punch lines, “Add spice to life” and a “Complete family car” more
conspicuous. Santro has created a niche position for itself as a celebrity’s
car, Shahrukh Khan’s car. Their advertisement showing Shahrukh Khan
sponsoring the car, showing its unmatchable features have made Santro
synonymous to Shahrukh Khan.

Zen has in the recent years been able to create a brand name for itself.
Zen and Santro are perceived as cars with a more feminine appeal. Hence
they need to be positioned as the cars for today’s women.

The dream cars of the consumers are high luxury cars like Mercedes S-
class, BMW, Ferrari, Pajero, Rolls Royce, Jaguar, Porsche, the cars with a
class apart when it comes to their brands images, cars which flaunt status,
style, wealth and attitude of the people owning them, cars which are
considered to the best on the globe.

Most of the respondents are in an income bracket of Rs.20001 to Rs.25000 and

above Rs.25000. This indicates that most of the car owners belong to either
middle, upper middle or upper class segment.
While purchasing a car a safety is the most important criterion followed by price,
fuel efficiency, looks and comfort etc.

When the consumers were asked to rank the factors they consider being important
in buying a car, ranking the factors from 1 to 7 where ‘1’ is the highest preference
rank ‘7’, the lowest preference rank, safety is the highest concern followed by
Performance of a car as it outweighs its style and cost on the consumer’s list of
priorities to buy a car. Performance, be it engine make up, fuel efficiency in city
conditions, smoothness, pick up, drivability, is consumer’s first preference in their
look out on attributes in making a decisions for buying a car.

The car owners as the third most important factor, considered the cost and
low maintenance of a car.

After sales service and brand name were the fifth and sixth preferences of
the respondents. Credit facility was ranked next on the preference scale.

Given the city conditions, the consumers needed a very good overall
performance of cars. Luxury cars taking less space with no parking
problems, easy drivability in heavy traffic conditions, easy gearshifts and
good fuel efficiency makes them the most preferred ones.

The luxury car owners being mostly the professional class or the upper
middle class were very cost conscious and due to their busy life styles
preferred low maintenance in their cars.

Sources of Information

The luxury car consumers are high search information seekers, most of
them using at least 3 sources of seeking the information. They believe
that extensive search is necessary to make a good buy. Having owned
fewest cars previously, they had very less information about the cars.

The survey showed that a highest number of consumers sought friends as

a source of information. Even as a majority of them went for magazines
and other car owners as a source of seeking information, a good number
of consumers went to dealers for getting the information. Television as a
source of information was also used by a number of consumers and a very
few of them went to mechanics in search of information.

Most of these luxury car buyers being first time purchasers usually go for
friends, automobile magazines or other car owners to get information
about the various products and brands in the market to know the most
favorable brand or products and later they seek further information from
dealers and other sources once they are through their choice process and
have decided upon a particular brand or brands to buy.

During the buying process family is the biggest influencer followed by

friends and media.
 Small Car Segment
The most efficient medium of advertising is television, followed by
magazines and newspapers. Auto exhibitions also play a significant role
in communicating about the luxury segment cars.

Satisfaction Level

Most of the luxury car consumers are somewhat happy with their
purchases. A probe into respondents’ satisfaction level, ranking from 1 to
5 where ‘1’ was full satisfaction and ‘5’ full dissatisfaction with their
cars, gave 70% as an average figure of satisfaction level.

Out of a total of 30 respondents, 19 ranked their satisfaction level as ‘1’,

6 ranked ‘2’, 1 ranked ‘3’, 1 ranked ‘4’ and only one respondent showed
null satisfaction. The main reasons which were quoted for their
satisfaction were driving comfort, good fuel efficiency, luxury is cute,
easy parking, less maintenance, good pick-up and a perfect car for a
luxury family.

Advertisement Recall

The most interesting part of the research being the brand appeal part of it,
where four celebrities, Shahrukh Khan, Hrithik Roshan, Aishwarya
Rai and Rani Mukherjee were given and respondents were asked to
suggest any car which came to their mind. Almost all the respondents
named Santro for Shahrukh khan. Hyundai has almost positioned Santro
as Shahrukh Khan’s car and his personal choice through the advertisement
where Shahrukh himself narrates the supervisor performance of car. Any
other brand of car could not catch up with such a familiarity of a car with
a celebrity.

For Hrithik Roshan, most of the people preferred tough looking cars like
BMW, Bolero, Safari, Pajero, Sumo, Honda sports car etc. Aishwarya
gave people an appeal of sleek beauty through cars like Lancer, Ferrari,
Zen, Matiz, Mercedes, etc. Rani Mukherjee stole away respondents minds
with luxury car like Zen, Matiz, and Santro, sometimes a bit bulky like
ambassador and van.

A perceptual ranking of various attributes of Maruti 800, Zen, Indica and

Santro was also taken. A total analysis of people’s average rankings
showed people’s perceptions about various attributes like safety,
performance, comfort, luxury of the 4 cars. All these luxury cars showed
very less variances in perceptions of people regarding their safety,
comfort, luxury and overall performance with ranks ranging between ‘2’
and ‘3’ showing moderate satisfaction.

A change in consumer’s perceptions could be noticed when Santro was

ranked 3 rd showing a slight disagreement with its good looks. Indica was
ranked 2 nd satisfactory with its new look and fine edges in its new model
of V-2. Zen was ranked 1 st for its trendy and cute outlook. The interiors of
Zen were much liked by the consumers as compared to Indica and Santro.
Mainly in specific description the dash board of Zen attracted the most.

SCOPE AND LIMITATIONS

• The sample size being very luxury, that is only thirty respondents,
limited the scope and study of the project.

• Taking the convenience sampling might have led to some bias as

people with different age groups have different perceptions. For
example people with age above 35 years have more awareness then
people between the age group of 20 and 30 years.

Time constraints put boundaries to the sample area and hence limited the extent
of the study.
 Small Car Segment

BIBLIOGRAPHY
Reference books:

Consumer behavior. By Schiffman and Kanuk

Internet:

www.marutiudyog.com

www.hyudaimotorindia.com

www.autoweb.com

http://html.rincondelvago.com/consumer-decision-process.html

http://www.cygnusindia.com/pdfs/Supply%20Chain%20Management%20in
%20Automobile%20industry.pdf
 ANNEXURE

QUESTIONNAIRE

A survey of consumer perception about luxury cars

Personal details :

Name :

No. of members in family :

Monthly household income :

1. Do you own (Please tick) Car Two wheeler

2. If you do own a car?

Name

Model

Colour

3. Are you satisfied with it?

4. How much do you spend on maintenance on a monthly basis?

___________________________________.

5. Name some cars in the luxury car segment in India?

♦
♦
♦
♦
 Small Car Segment
♦
♦
♦

6. Can you relate the following cars to their ads?

Maruti 800 o

Zen o

Indica o

Santro o

7. Rate the following attributes according to your preferences while buying a new car?

Price :
Looks :
Safety features :
Interiors :
Value added accessories :
Color :
Stability while driving :
Low maintenance costs :
Fuel efficiency :
Boot space :
Gearbox :

9. Rate the following cars as per your perception on the basis of the attributes specified (5
excellent to 1 poor)?

Attributes ZEN SANTRO MARUTI INDICA

800

Sales and Service

Price

Fuel Efficiency

Smooth Ride

Luxury

Value for Money

Looks

Comfort

Safety

Style / Looks

13. Where would you or where from do you get the relative information for buying a car
for yourself?

Television
Friends
Dealers
Mechanics
Magazines
Other car owners

14. Who influences you the most while making a decision to buy a luxury segment car?
Media
Friends
Family
others

15. What are the sources of advertising that you recall, as a influencing factor to you? Is
it: -
o Television :
o Newspaper :
o Hoardings :
o Magazines :
o Auto Exhibitions :
o Any other :

15. Comment on the following cars as to how can there be any improvements?

ZEN

INDICA

MARUTI 800

SANTRO

16. Which of the four cars mentioned below is the best in overall perspective to you?
 Small Car Segment
(Rank 1 as the best and so on)

Santro

Zen

Indica

Maruti 800

15. Which car will you associate with the following personalities?
• Shahrukh Khan
• Hrithik Roshan
• Aishwarya Rai
• Rani Mukherjee

Thank you, Sir\Madam for spending your precious time in filling this
Questionnaire. Your opinion values a lot for us. Thank you.

Date ----------------------------