The Impact of Marketing Promotions of Lubricants Marketing Companies on Usage of Synthetic Lubricants by

Two Wheeler Motor Vehicle Users

By

Debanjan SahaID No. 12JU11300004

Research Supervisor :

Dr. R. GopalDirector, Dean and Head of the DepartmentPadmashree Dr. D. Y. Patil UniversityDepartment of Business Management

Research Guide :

Dr. B. M. SinghDean and Registrar,ICFAI University Jharkhand Ranchi

Synopsis of the Research ProposalSubmitted for the Registration into the

Ph. D. Programme (Part-Time) in Management

Agenda

• Introduction

• Relevance of the Topic

• Objective/s and scope

• Concepts/Theories/Philosophies

• Research work that was done on the topic, so far

• Problem Statement

• Hypotheses

• Methodology Proposed

• Data proposed to be collected and Statistical Techniques Projected: Justification

• Relevance of Projected Findings

• Challenges anticipated

• Proposed time frames for completion of the major milestones

• Help required ,if any, from the University

• Acknowledgements

• Motor vehicle categories

• Lubricants : Types & Brands

Introduction

Relevance

Insights gained can improve effectiveness marketing of new high technology products targeted at a particular customer segment Increase (ROMI) Return On

Marketing Investment

Objectives & ScopeObjectives :

1. To determine awareness of two wheeler motor vehicle users regardingintroduction, availability and benefits of synthetic (including semi-synthetic)lubricants for two wheeler motor vehicles, as a product category, differentiatedfrom mineral oil based lubricants for two wheeler motor vehicles.

2. To study the buying behaviour of two wheeler motor vehicle users with respect tosynthetic lubricants for two wheeler motor vehicles.

3. To study the factors influencing the usage synthetic lubricants for two wheelermotor vehicle.

4. To study the impact of the factors influencing the usage of synthetic lubricants fortwo wheeler motor vehicles.

5. To study the marketing strategies adopted by synthetic lubricants marketingcompanies.

Scope : Usage synthetic (including semi-synthetic) lubricants by 4 stroke petrolengine two-wheeler users in Pune, Nasik & Aurangabad, who get their vehiclesserviced at workshops other than the vehicle manufacturing company’s authorisedservice stations

Concepts/Theories/Philosophies

• Consumer Buying Behaviour concepts– Awareness, Interest, Evaluation, Trial, Adoption

– Need Recognition, Info Search, Evaluation of Alternatives, Purchase Decision, Post purchase evaluation

– Habitual purchase

Consumer Involvement Theory : Foote Cone Belding Matrix

Concepts/Theories/Philosophies

Concepts/Theories/Philosophies

Ansoff Matrix

Concepts/Theories/Philosophies

• Social contagion, Modelling, Risk aversion, Innovation, Uniqueness, Market Mavenism, Opinion Leadership

• Customer Relationship/ Experience

Loyalty/Advocacy

Research work that was done - I• Adoption of a new product is preceded by and is conditional on awareness and adoption

occurs if the perceived risk adjusted value of the product exceeds selling price of thenew product (Kalish 1985).

• Rogers (1976) has compiled a list of 2700 publications on diffusion of innovations andnew product adoption.

• Several researchers have developed models of innovation diffusion, starting with thesimple diffusion model by Bass (1969), which assumes a homogeneous population ofsusceptible individuals.

• Later researchers have provided models assuming heterogeneous population ofsusceptible individuals. Robinson and Lakhani (1975) and Kalish (1980 and 1983)introduced models incorporating price as a factor. Kalish (1985) provides a model ofindividual behaviour incorporating price and advertising variables. Oren and Schwartz(1988) model includes risk aversion factor. Chatterjee and Eliashbert (1989) introducedprice/performance parameter in their model. Lattin and Roberts (1989) consideredperceived benefits in their model.

• The role of information shared by marketers in influencing consumer perception of newhigh-technology product performance uncertainty has been extensively researched.Ziamou and Ratneshwar (2002) are of the view that more information is not alwaysbetter in reducing performance uncertainty.

Research work that was done - II

• Wee, Thomas T.T. (2003) concluded that the most important factors in adoption ofnew consumer electronic durables are trialability, compatibility, relativeadvantage, observability, complexity, image and perceived risk of adoption.

• Deacon et. al. (2003) have studied inhibitions to adoption of new products in foodindustry and have provided three recommendations to marketers to succeed innew product introduction, stimulate emotional attachment by consumerparticipation, build enduring involvement with opinion leaders and developnetwork to promote word of mouth publicity.

• The concepts of opinion leadership and word of mouth publicity and their role ininfluencing new product adoption have been studied by King and Summers (1970).

• Manning et. al. (1995) developed constructs of consumer novelty seeking andconsumer independent judgement and they are of the view that the formerconstruct is positively related to early stages of the adoption process, whereas thelater construct is associated with later stages of the adoption process.

• Iyenger et al. (2011) studied social contagion operating over network ties inadoption of new drugs by physicians and found that adoption is affected by usagevolume of peers, which is likely to arrive from enhanced source credibility.

Problem Statement - General

• Many new product launches have been grosslyunsuccessful, resulting in serious financial troublesfor organisations, not to mention erosion of brandequity.

• Adoption and usage of synthetic lubricants for twowheelers has met with muted response in India.

• Lubricants marketing companies have made heavyinvestments in ATL and BTL promotions, channelpartner schemes etc. with limited effect on sales ofpremium products.

Problem Statement – Gaps Identified

• Not found any study done on awareness, adoption and usage of the newly launched lowinvolvement product category of synthetic lubricants for two wheeler motor vehicles in India.

• The most cost effective media to create awareness of a new product amongst early adoptersin the target customer segment.

• The type, quality, depth and extent of information to be shared by marketers to reduceconsumer uncertainty.

• Effect of intensity of competition amongst marketers in enhancing consumer awareness.

• Effect of sales promotion events in promoting acceptability of new products in addition toincrease in awareness.

• Post purchase satisfaction or dissatisfaction and its role in influencing future consumerinnovativeness to support repurchase and continued future new product adoption process inother product categories.

• Diffusion of information on gap between consumer expectation and perceived performanceof new product and its effect on new product adoption.

• Change of population size of adopters over an extended time period and its effect onenhancing incidence of new adoption.

• Seasonality factors on new adoption, with relevance to macro, micro and personal economicfactors.

Hypotheses - I• H01 : Two Wheeler Motor Vehicle Users are not aware of (a) the product category

of Synthetic Lubricants for two wheelers, (b) its availability in local market and (c)its benefits compared to conventional mineral based lubricants.

• H11 : Two Wheeler Motor Vehicle Users are aware of (a) the product category ofSynthetic Lubricants for two wheelers, (b) its availability in local market and (c) itsbenefits compared to conventional mineral based lubricants.

• H02 : Two Wheeler Motor Vehicle Users are not involved in the purchase processof Synthetic Lubricants for their vehicle.

• H12 : Two Wheeler Motor Vehicle Users are involved in the purchase process ofSynthetic Lubricants for their vehicle.

• H03: Two Wheeler Motor Vehicle Users are not interested in acquiring knowledgeabout Synthetic Lubricants for their vehicle.

• H13 : Two Wheeler Motor Vehicle Users are interested in acquiring knowledgeabout Synthetic Lubricants for their vehicle.

Hypotheses - II• H04 : There is no correlation between (a) higher initial purchase price and (b) greater value

for money of synthetic lubricants compared to conventional mineral based lubricants,perceived by Two Wheeler Motor Vehicle Users and the usage of synthetic lubricants.

• H14 : There is correlation between (a) higher initial purchase price and (b) greater value formoney of synthetic lubricants compared to conventional mineral based lubricants,perceived by Two Wheeler Motor Vehicle Users and the usage of synthetic lubricants.

• H05 : There is no correlation between (a) category, (b) age, (c) make, (d) model and (e)engine capacity of the Two Wheeler Motor Vehicle used and the usage of SyntheticLubricants.

• H15 : There is correlation between (a) category, (b) age, (c) make, (d) model and (e) enginecapacity of the Two Wheeler Motor Vehicle used and the usage of Synthetic Lubricants.

• H06 : Demographic factors of the Two Wheeler Motor Vehicle user viz. (a) age, (b) formaleducation, (c) gender, (d) marital status and (e) monthly take-home income are notdeterminants of usage of Synthetic Lubricants.

• H16 : Demographic factors of the Two Wheeler Motor Vehicle user viz. (a) age, (b) formaleducation, (c) gender, (d) marital status and (e) monthly take-home income aredeterminants of usage of Synthetic Lubricants.

Hypotheses - III• H07 : Consumer behaviour characteristics exhibited by Two Wheeler Motor Vehicle

users viz. (a) Customer Innovativeness, (b) Opinion Leadership, (c) Market Mavenismand (d) Two Wheeler Enthusiasm are not determinants of usage of SyntheticLubricants.

• H17 : Consumer behaviour characteristics exhibited by Two Wheeler Motor Vehicleusers viz. (a) Customer Innovativeness, (b) Opinion Leadership, (c) Market Mavenismand (d) Two Wheeler Enthusiasm are determinants of usage of Synthetic Lubricants.

• H08 : Marketing efforts of lubricants marketing companies for promotion of sales ofSynthetic Lubricants by advertisement through various media viz. (a) In-store display,(b) In-store posters, (c) Outdoor hoardings, (d) News paper advertisements, (e)Advertisement in Magazines, (f) FM radio advertisements, (g) TV advertisements and(h) online advertisements have no effect on usage of Synthetic Lubricants by TwoWheeler Motor Vehicle users.

• H18 : Marketing efforts of lubricants marketing companies for promotion of sales ofSynthetic Lubricants by advertisement through various media viz. (a) In-store display,(b) In-store posters, (c) Outdoor hoardings, (d) News paper advertisements, (e)Advertisement in Magazines, (f) FM radio advertisements, (g) TV advertisements and(h) online advertisements have positive effect on usage of Synthetic Lubricants by TwoWheeler Motor Vehicle users.

Hypotheses - IV• H09 : Marketing efforts of lubricants marketing companies for promotion of sales of

Synthetic Lubricants by resorting to below the line sales promotional activities viz. (a)sales campaigns at petrol pumps, (b) sales campaigns at lubricants shops, (c) discounts,(d) free gifts and (e) lucky draws have no effect on usage of Synthetic Lubricants by TwoWheeler Motor Vehicle users.

• H19 : Marketing efforts of lubricants marketing companies for promotion of sales ofSynthetic Lubricants by resorting to below the line sales promotional activities viz. (a)sales campaigns at petrol pumps, (b) sales campaigns at lubricants shops, (c) discounts,(d) free gifts and (e) lucky draws have positive effect on usage of Synthetic Lubricantsby Two Wheeler Motor Vehicle users.

• H010 : Marketplace Influencers viz. (a) Innovative Customers, (b) Opinion Leaders, (c)Market Mavens, (d) Social, online media including blogs and Product CategoryInfluencers viz. (e) Motor Vehicle Mechanics and (f) Salespersons of Lubricants shopsexert no influence on usage of Synthetic Lubricants by Two Wheeler Motor Vehicleusers.

• H110 : Marketplace Influencers viz. (a) Innovative Customers, (b) Opinion Leaders, (c)Market Mavens, (d) Social, online media including blogs and Product CategoryInfluencers viz. (e) Motor Vehicle Mechanics and (f) Salespersons of Lubricants shopsexert influence on usage of Synthetic Lubricants by Two Wheeler Motor Vehicle users.

Hypotheses - V

• H011 : Two Wheeler Motor VehicleUsers who use Synthetic Lubricantsare not satisfied with its perceivedperformance.

• H111 : Two Wheeler Motor VehicleUsers who use Synthetic Lubricantsare satisfied with its perceivedperformance.

• H012 : Two Wheeler Motor VehicleUsers who use Synthetic Lubricantsare not Brand Loyalists.

• H112 : Two Wheeler Motor VehicleUsers who use Synthetic Lubricantsare Brand Loyalists.

Methodology Proposed• Descriptive research design

• Target population for the study is users of 4 stroke petrol engine Two Wheeler MotorVehicles in the cities of Pune, Nasik and Aurangabad, who get their vehicles serviced atworkshops other than the vehicle manufacturing company’s authorised service stations

• Sampling design of this study follows a combination of judgement and probability sampling

• Sample elements will be intercepted at 20 major workshops in each of the above three cities.

• Instrument : Questionnaire

• Pilot study at Pune – sample size 225 (25 elements at 9 workshops)

• Sample Size : n = z2 . p . q . N____

e2 . ( N – 1 ) + z2 . p . q

City

Population (N) :

31.03.2011

Determined Sample

size (n)

Rounded off sample

size for this study

Pune 1551968 384.07 384

Nashik 300877 383.67 384

Aurangabad 193878 383.40 383

Source : Motor Transport Statistics of Maharashtra 2010 – 2011. Retrieved on March 17, 2013 from http://www.mahatranscom.in/statistics.aspx.

Data proposed to be collected and Statistical Techniques Projected - I

• Questionnaires - personally administered for the pilot studyand thereafter paid researchers will be used from amongstMBA students in the above three cities

• Likert scale (5 point) to be used

• Data Analysis :

Hypothesis Testing using SPSS

Precision rate : 5%

Confidence level : 95%

Data proposed to be collected and Statistical Techniques Projected - II

Objective Hypothesis Questionnaire

1 1 1, 4-72 2 2, 32 3 8-12, 172 4 13-16

3, 4 5 373, 4 6 33-36, 38-403, 4 7 18-254, 5 8 304, 5 9 313, 4 10 32

2 11 282 12 26, 27, 29

Flow : Research Objective Research Hypothesis Research Instrument

Relevance of Projected Findings• Identify significant factors and influences on consumer behaviour in adoption and

usage of new and innovative high performance products.

• Generate greater awareness among organizations on the importance of having adedicated customer education, support and engagement mechanism to promotenew improved products through word of mouth publicity, supportive social mediaadvisories, customer referrals, opinion leader and market maven behaviour.

• Conclusions will be drawn which will be helpful to contribute to enhancement ofknowledge in the domain of marketing management not only in the academicworld but also to business organisations in designing strategic and tacticalmarketing approaches, for introduction, early adoption and growth of their newimproved, innovative and differentiated products and services.

Challenges Anticipated & Means to address them

• Low involvement of respondents with this product category - Create involvement by association with their two wheeler, to which they are emotional attached

• Low awareness / knowledge levels of respondents-Cordially explain benefits & provide product leaflets

• Lack of interest in respondents - Offer token giveaways to all & chance to win in lucky draw

• Lackadaisical approach by respondents -Handhold/Interact with respondents throughout the response process to provide him a good experience, make him feel valued

Proposed time frame

Phase Activity End Time Duration(months)

1 In-depth Literature Survey of the research topic tounderstand methodologies used, conclusions drawnand their limitations to understand and derive gaps inexisting research. Critical review of the researchobjectives and hypotheses formulated. Collection ofsecondary data.

Nov 2013 6

2 Pilot study to test the research design, sample design,research data collection instrument and incorporaterectifications.

Feb 2014 3

3 Field research for collection of primary data. Jun 2014 4

4 Data tabulation, coding and analysis using SPSSsoftware.

Nov 2014 2

5 Conclusion of research, thesis writing and submission. May 2015 9

TOTAL 24

Help required from the University

• Continuous guidance and support for early completion of research work, thesis submission & defence

• Opportunity to attend seminars

• Help in publication of articles in ICFAI journals

• Opportunity to be guest faculty at local IBS

• An early convocation

AcknowledgementsI am thankful to –

Dr. R. Gopal for his painstaking and caring supervision.

Prof. O. R. S. Rao for creating such a welcoming environment to pursue our PhD.

Dr. K. K. Nag for being a fountainhead of encouragement to strive for being expert in our field.

Dr. B. M. Singh for his enthusiasm in starting the PhD programme (because of whom we are here) and his advice on rectification of the synopsis.

Dr. S. C. Swain for his most prompt support at all times.

All the other staff of IUJ who always go all out to see to it that we are comfortable in our doctoral pursuit.

And all my fellow PhD scholars for their companionship.