STUDY ON CONSUMER BUYING BEHAVIOR

FOR A CAR

Submitted To :Prof. Sarika Tandon

STUDY OF CONSUMER BUYING

BEHAVIOUR FOR A CAR

Group MembersTaqweem Iqbal AhmedKuldeep SinghVivek MorjariaNishant SinghDristhi SharmaArpit Maan

INTRODUCTION

Problem Statement:New Car Buyer Behaviour - Quantifying Key Stages &

Activities in the Consumer Buying Process.

Research Objectives:

• Managing demand.• Understanding influences on timing of purchase decisions.• Validate current positions on consumer behaviour.

Questionnaire DesignTo design the buying behaviour of consumer.The respondents were asked to give the

preference about the brand they want.

Sample Characteristics “Sample” consisted of the customers of five CAR

companies in India viz. VW,Maruti, Hyundai, Tata, Mahindra

These cars were selected, as they are representative of the major segments in the car industry from full fare to low priced cars.

Targeted sample size was 40 per car, and achieved sizes were as follows.Table 1 – Car (Brand) wise Composition of SampleNO Company Obtained number

of samples

1 VW 39

2 Maruti 40

3 Hyundai 35

4 Tata 38

5 Mahindra 36

DATA ANALYSIS & RESULTS • The statistical analyses used were ANOVA, Regression

analysis, Factor analysis. • Analysis of research data used the level of significance, a =

0.05.• The objective of this study was to examine customer

perception of service quality. ANOVA was performed and the result showed a significant

difference among the five car companies in India viz. VW, Maruti, Hyundai, Tata, Mahindra

Testing for Significance: F Test

The F test is used to determine whether a significant relationship exists between the dependent variable and the set of all the independent variables.

The F test is referred to as the test for overall significance.

Testing for Significance: F TestHypotheses

H0: 1 = 2 = . . . = p = 0

Ha: One or more of the parameters

is not equal to zero.

Rejection RuleReject H0 if F > F

where F is based on an F distribution with p d.f. in the numerator and n - p - 1 d.f. in the denominator.

As adjusted square is 0.004, it implies that 0.4% of variance of the dependent variable is explained by independent variable.

As R= 0.182, it explains a very weak correlation.

H0: 1 = 2 = . . . = p = 0

Ha: One or more of the parameters

is not equal to zero.

p = 0.285

p = .05

Since p > p we accept the null hypothesis and our model is not good.

Testing for Significance: t Test

Hypotheses H0: i = 0

Ha: i = 0

Rejection RuleReject H0 if t < tor t > t

where t is based on a t distribution with

n - p - 1 degrees of freedom.

H0: i = 0

Ha: i = 0

p = 0.000 p < .05 Since p < 0.05, we reject the null hypothesis.

K.M.O Test If two variables share a common factor with

other variables, their partial correlation (aij) will be small, indicating the unique variance they share.

Used to measure sampling adequacy.This index is used to measure the

appropriateness of the test .High values (.5 – 1) means factor analysis is

adequate.

Interpretation of the KMO as characterized by

Kaiser, Meyer, and Olkin …   

KMO Value Degree of Common Variance

   

0.90 to 1.00 Marvelous

   

0.80 to 0.89 Meritorious

   

0.70 to 0.79 Middling

   

0.60 to 0.69 Mediocre

   

0.50 to 0.59 Miserable

0.00 to 0.49 Don't Factor

Kaiser-Meyer-Olkin Measure of Sampling adequacy 0.524

Barlett’s Test of Sphericity Approx. Chi Square

79.957

df 28

Significance

0.0000

KMO and Bartlett’s Test

Since the value of KMO is 0.524, therefore it implies that the degree of variance is very bad, in fact the variables do not factor with the other variables.

Limitations

The findings of this study are limited to the behaviour of the consumer towards car in India.

This study has not considered industry measures to measure service quality.

We have measured only the customer perception of service quality.

ConclusionTiming of orders & delivery bias towards weekends– Fridays for collection– Saturdays for order– supports dealer researchDifferences between men & women– females less willing to wait– reference growth in female motorists & change inrelative influence & role• Information Sources– Dealer still critical• Friend, Brochure, Magazine– 4 different sources of information – growth of internet – now nearly 20%• Research suggests that the consumer demand for a Car

would be strong

THANK YOU

NOW YOU PEOPLE CAN DRIVE OUT……..