ASSIGNMENT OF

RESEARCH
METHODOLOGY (MGT-516)
RESEARCH TOPIC

BARND PREFERENCE FACTORS OF PASSENGER CARS: AN

EMPIRICAL ASSESSMENT

SUBMITTED TO:

Mr.Chander Shekhar Dogra,

SUBMITTED BY:-

OM PRAKASH KUMAR

ROLL NO- B 40

SECTION- R1002

MBA- 3501

D.O.S – 28-Jan-2011

2.5+4.5+2.5+2=11.5
BRAND PREFERENCE FACTORS OF PASSENGER CARS:
AN EXPERIMENTAL ASSESSMENT

 CONTENTS:-

• INTRODUCTION

• RESEARCH OBJECTIVE

• REVIEW OF LITERATURE

• RESEARCH DESIGN

• RESEARCH METHODOLOGY

• CONCLUSION

• REFERENCES
INTRODUCTION:

In India, liberalization has payed the way for people to possess luxury items such
as television, refrigerator, home appliances and car. Motorcar is one of the
commonly used conveyances by the upper and middle-class people.Two decades
ago, only a few industrialists and rich people owned cars. There was a time when
one had to wait for weeks, months or even years to buy a car in India. The option
of cars was limited to a few models. But , after liberalization, the earning capacity
of middle-class people increased. These days, Motorcar is not only bought for
social status, but has become a necessity.

Moreover, every middle or upper middle-class person` wants to have a car

today.Taking the above into consideration,the I study the level of perception of the
factors influencing the purchase of a car. I also make an attempt to capture the
dimensions reflecting brand preference of passenger cars.

RESEARCH OBJECTIVES: (Good objectives 2.5)

The aim of the study is to identify, describe and analyze the factors that have an
impact on brand preference.

• To identify the factors underlying brand preference of passenger cars.

• To analyze the level of contribution of factors identified on brand preference

of passenger car.

REVIEW OF LITERATURE (Excellent review of literature-4.5)

The literature review is done to clarify the underlying concepts in brand preference
and to discover the factors that have been found to affect the brand preference.In
spite of the significant role that the car industry plays in the nation’s economy,
there is an acute scarcity of literature on the car industry, particularly on the
passenger car industry.This is one of the serious limitations the researchers had to
encounter during the course of the study.

The American Marketing Association (2009) defines a brand as “an intangible

asset, striving to increase the performance of a product or service through a set of
psychological associations”. The primary function of a brand is to provide
convenience and clarity in decision making, providing a guarantee of performance
and communicating a set of expectations, thereby offering certainty and facilitating
the buying process.

“Consumer Buying Behavior of Two Wheelers in Tirunelveli City,

Tamilnadu”

Abdul Haneef. M, Abdul Karim B A and Edwin Gnanadhas M (2006),

Indian Journal of Marketing, Vol. xxxvi,No.4, pp.49-60.

In their study, noted that consumer behavior is influenced strongly by cultural,

social, personal and psychological factors. Cultural factors include the set of basic
values, perceptions, wants and behavior learned by a member of society from the
family and other important institutions. The social factors include consumer’s
family, small group, social roles and status. A person’s buying choices are further
influenced by four major psychological factors: Motivation, Perception, Learning,
Beliefs and Attitudes.

Smita Sharma (2006), “Celebrity Endorsement is it the only survival Recipe for
Marketers?”, Indian journal of Marketing, Vol.xxxvi,No.10,pp. 3-14.

In her study , pointed out the importance of celebrity support in advertisement and
concluded that advertisers use endorsers to add excitement and glamor to their
brands.Basically,celebrity endorsements give a brand a touch of glamor in the
minds of people,and the hope that a famous face will provide added appeal and
recognition in a crowded market.

Suresh A M and Raja K G (2006), “Measuring Customer Satisfaction for Small

Cars: An Empirical Study”, Indian Journal of Marketing , Vol. XXXVI, No. 2, pp.
3-12.

Made an attempt to measure the customer satisfaction level of small cars. In this
study,the customer satisfaction was measured by using the variable attributes,like-
after-sales service, ability to understand customer needs,behavior and knowledge
of the mechanics,warranty,prompt delivery,24- hour customer care,information
about the cars,horsepower,engine capacity,power steering,technology,fuel
capacity,acceleration,easy finance,convenience and accessibility,ground
clearance,easy processing and documentation,price,discount and rebates,fuel
efficiency and maintenance cost.

Karjaluo to H , Karvonen J and Kesti M wt al. (2005), “Factors Affecting

Choice of Car Brands: Two Studies from Finland”, Journal of Euro Marketing,
Vol. 14, No. 3, pp.59-82.

Investigated the consumer choice in the context of the car industry in

Finland.They assessed the consumer motivations in car’s brand choice.The various
factors influencing car’s brand choice,according to them,were innovative services,
design,brand,basic facilities,outside influence and price.

Jaspreet Singh Mithras (2005), “A Study On Passenger Car Industry In India

with Reference to Maruti Car Udyog Limited”, Unpublished M.Phil. Dissertation,
Bharathiar University, pp. 154-162.),

In his study, suggested that price, brand image, product, performance, new model
launches, distribution network, after-sales support and availability of value-added
after sales services are the factors that determine competition in the Indian
passenger car industry.

Sumit K and Abhishek C (2006), “Brand preference of Consumers”, Journal of

Public Policy and Marketing, Vol. 4, No. 2, pp. 36-47.
In his study, suggested that demand for cars depends on a number of factors.The
key factors affecting demand for passenger cars in India are fuel costs,prices of
cars,per capita income,introduction of new models,incidence of duties and
taxes,the quality of road infrastructure and availability and cost of consumer
financing.

Ravichandran K and Narayanarajan S (2004), “Factors Determining the Brand

Preference of TV: With Special Reference to Thoothukudi District in Tamil Nadu”,
Indian Journal of Marketing, Vol. xxxiv, No. 4.

Studied factors determining the brand preference of consumer durables.They

concluded that the study with brand preference of consumer durables is largely
influenced by a number of factors such as advertisement,price,quality,
performance, availability of spares, and after-sales service. Moreover, these factors
play a vital role in the decision-making process and in the brand preference.

Kotler and Fullberg (2003), “Using Sonic Brand in the Retail Environment: A
Easy Way to Create Consumer Brand Loyality While Enhancing the In-store
Experience”, Journal of consumer Behavior, Vol.3, No.2, pp.193-198.

In his study, stated thatconsumer surveys often reveal that quality is one of the
important, if not the most important, decision-making factors for consumers and
product quality stands for the ability of a product to perform its functions.

Tan Tsu Wee T (2003), “Factors Affecting New Product Innovation in the
Consumer Electronic Industry- Singapore ”, Management Review, Vol.6, No.1.

Conducted a study to find the factors affecting adoption of new product

innovations in the consumer. By using factor analysis, he find that these factors
were relative advantage, perceive risk complexity, compatibility, observability,
image and trialability.

Doyle P (2002), Marketing Management and Strategy,3rd Edition, Pearson

Education, England.

In his study, pointed out that the important product decisions in any marketing
context are product, variety, product performance, product features, product
design, product presentation, sizes, etc.
Keller K (2002),”Branding and Brand Equity”, Handbook of Marketing, pp.151-
178, ISBN:10-14129-21201-1,Sage Publications, London.

In his study, said that the brand is the sum total of all elements of the marketing
mix. Brands can also be explained based on their elements-“…those trademarkable
devices that serve to identify and differentiate the brand (e.g.-brand names , logos,
symbols, characters, slogans, jingles and packages)”.

Dorsch M J, Grove S J and Darden W R (2000) , “Consumer Intentions to Use a

Service Category”, Journal of Services Marketing, Vol. 14, No. 2,pp.92-117.

Studied consumer choice behavior using the five-step process (need, information
search, evaluation of alternatives, purchase and, and post-purchase evaluation)
problem solving paradigm or through the progression of consumer choice from a
product class to brand choice.

Park C, Jun S and Shocker A (1996), “Composite Brand Alliances, AN

Investigation of Extension and Feedback Effects”, Journal of marketing Research,
Vol.33, pp. 453-466.

in their paper, stated that the marketplace associates symbolic and functional
attributes with the brand. Symbolic attributes are those that satisfy internally
generated needs for self-enhancement , role position , group membership or ego
identification. Whereas functional brand attributes solve an externally generated
consumption related problem.

Ambler T and Styles C (1996), “Brand Development Versus Product

Development: Towards a Process Model of Extension Decisions”, Journal of
Product Brand Management, Vol. 6, No. 4 pp.223-234.

Describe two different views of defining a brand.The first is the product plus view,
where the brand is seen as an addition to the product. In this view , a brand is also
called an identifier. The second is the holistic view that communicates the focus on
the brand itself that is considered to be much more than just the product.

Rogers E M (1995), Diffusion of Innovation ,4th edition, Free Press, New york .
In their study, explained how consumers form preferences for various goods and
services using theory of adoption. If any brand attracts them, they fell comfortable
about that and they prefer it.

Tickwell Paul M, Horgon, Dainne D and Keeny Charless (1993), “Relationship

Between Self-Images, Brand Image, and Brand Loyalty and Whether People Use
Products to Enhance Self Image ”, Research and Review , Vol. 22, No. 2, pp. 41-
53.

In his study, investigated the implications of loyal and non-loyal brands and found
that a significant difference exits between loyal and non-loyal brands and also a
high correlation exist between self image and product user rating.

Kotta Thomas (1992), “Building Brand Equity Through Societal Marketing ”,

Journal of Public Policy and Marketing, Vol.21, No.3,pp-78-89

In his study , investigated the influence of extrinsic cause, e.g., price, reputation
of the product and advertising, in a main experimental setting using multi-item
measures.

Phillips (1988), “Buying a Brand: What you Can’t see Can Hurt you”, design
Management Journal, Vol. 9, No. 1, pp. 43-46.

In his study, stated that a brand can be described as a “trademark that

communicates a promise”.

Broadbent K and Copper P (1987), “Research is Good for You”, Marketing

Intelligent Planning, Vol. 5, No. 3, pp.3-9.

In his study, noted that if the brand is to be successful , images and symbols must
relate to and indeed exploit the needs, values and lifestyle of consumers in such a
way that the meaning involved give added values and differentiate the brand from
other brands.
RESEARCH METHODOLOGY:- (Good, be more specific-2.5)

This research, attempting to review the brand preference factors, is exploratory in

nature. The data for the study, primary as well as secondary in nature, has been
collected using questionnaires from 712 customers/car owners in the area of
Coimbatore city, from April 2005 to April 2009, yielding a response rate of
77.65%. In the first stage of sample selection, stratified random sampling
techniques were used to stratify the regions of Coimbatore city, and in the second
stage of sampling, the simple random sampling technique was used to set of
respondents.

For this we have used different Tools-

1. Factor analysis

2. Customer behavior analysis

Factor analysis has been defined as a tool which attempts to identify the
underlying variables or factors that explain the pattern of correlations within
a set of observed variables.

RESEARCH DESIGN:

In the initial phases ,we collected information about the passenger car
industry from various secondary sources such as already existing research
journals and surveys, business magazines,internet, etc. We refereed to the
annual reports of brands to understand how they view the industry.

This study provided us the following:

• The factors which affect consumer’s brand preference.

• Various players in the market and the respective brands

• Market share and relative positioning of different brands

• Consumer perspective and expectations

 • Brand prefernce and attribute dependencies

Apart from this we also referred literature about consumer purchasing

decision in high involvement product like cars. This provide us
knowledge about how information search takes place in this category
and what are the important attributes that customer look for while
chosing a good brand.

CONCLUSION:-

Before buying a particular product or service , a customer may have a number of

questions in his mind regarding the product and its services. This research made a
systematic effort at studying the consumer’s brand preference for passenger cars in
India by analyzing the factors that influence the brand preference of the customers
and addressed the beginning issues related to the selection of a brand. It is indeed
obvious from the study that the product performance factors of the passenger car
brands dominate the preference of the customers, based on their economic status.
The marketing communication strategies loosed by manufacturers and dealers
also have a fair say on the total decision of the customer preference. Overall, the
all-round ability of the car brands such as reliability , safety, technology, value
for money, high resale value, high mileage, maintenance cost, quality, comforts,
durability, etc., is the crucial factor in brand preference.

REFERENCES:- 2
1. Abdul Haneef M, Abdul Karim B A and Edwin Gnanadhas M (2006),
“Consumer Buying Behavior of Two Wheelers in Tirunelveli
City,Tamilnadu” , Indian Journal of Marketing, Vol. xxxvi,No.4,pp.49-60.

2. Ambler T and Styles C (1996), “Brand Development Versus Product

Development:Towards a Process Model of Extension Decisions”, Journal of
Product Brand Management, Vol. 6, No. 4 pp.223-234.

3. Broadbent K and Copper P (1987), “Research is Good for You”, Marketing

Intelligent Planning, Vol. 5, No. 3, pp.3-9.

4. Dorsch M J, Grove S J and Darden W R (2000) , “Consumer Intentions to

Use a Service Category”, Journal of Services Marketing, Vol. 14, No.
2,pp.92-117.

5. Doyle P (2002),Marketing Management and Strategy,3rd Edition, Pearson

Education, England.

6. Jaspreet Singh Mithras (2005), “A Study On Passenger Car Industry In India

with Reference to Maruti Car Udyog Limited”, Unpublished M.Phil.
Dissertation, Bharathiar University, pp. 154-162.

7. Karjaluoto H, Karvonen J and Kesti M wt al. (2005), “Factors Affecting

Choice of Car Brands: Two Studies from Finland”, Journal of Euro
Marketing, Vol. 14, No. 3, pp.59-82.

8. Keller K (2002),”Branding and Brand Equity”, Handbook of Marketing,

pp.151-178, ISBN:10-14129-21201-1,Sage Publications, London.

9. Kotler and Fullberg (2003), “Using Sonic Brand in the Retail Environment:
A Easy Way to Create Consumer Brand Loyality While Enhancing the In-
store Experience”, Journal of consumer Behavior, Vol.3, No.2, pp.193-198.

10. Kotta Thomas (1992), “Building Brand Equity Through Societal

Marketing ”, Journal of Public Policy and Marketing, Vol.21, No.3,pp-78-89

11.Mason C H (1990), “New Product Entries and Product Class Demand”,

Marketing Science, Vol.9, No.1, pp.58-73.
12. ParkC, Jun S and Shocker A (1996), “Composite Brand Alliances, AN
Investigation of Extension and Feedback Effects”, Journal of marketing
Research, Vol.33, pp. 453-466.

13. SumitK and Abhishek C (2006), “Brand preference of Consumers”,

Journal of Public Policy and Marketing, Vol. 4, No. 2, pp. 36-47.

14.Phillips (1988), “Buying a Brand: What you Can’t see Can Hurt you”,
design Management Journal, Vol. 9, No. 1, pp. 43-46.

15. RavichandranK and Narayanarajan S (2004), “Factors Determining the

Brand Preference of TV: With Special Reference to Thoothukudi District in
Tamil Nadu”, Indian Journal of Marketing, Vol.xxxiv, No. 4.

16. Rogers E M (1995),Diffusion of Innovation ,4th edition, Free Press, New

york .

17.Smita Sharma(2006), “Celebrity Endorsement is it the only survival Recipe

for Marketers?”, Indian journal of Marketing, Vol.xxxvi,No.10,pp. 3-14.

18.Suresh A M and Raja K G (2006), “Measuring Customer Satisfaction for

Small Cars: An Empirical Study”, Indian Journal of Marketing , Vol.
XXXVI, No. 2, pp. 3-12.

19.Tan Tsu Wee T (2003), “Factors Affecting New Product Innovation in the
Consumer Electronic Industry-Singapore ”, Management Review, Vol.6,
No.1.

20. TickwellPaul M, Horgon, Dainne D and Keeny Charless (1993),

“Relationship Between Self-Images, Brand Image, and Brand Loyalty and
Whether People Use Products to Enhance Self Image ”, Research and
Review , Vol. 22, No. 2, pp. 41-53.

21. DickS and Hair (1995),”Factors affecting Brand Preference: An Empirical

study”, Indian Journal of Marketing, Vol.21, No. 3, pp. 21-32.
………………………….THANK YOU SIR………………………………….