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Marketing Research
Project
A market study on Hybrid Cars
Project report
Submitted to:
To the faculty of Department of Busi...
Table of Contends
Acknowledgement
I have taken efforts in this project. However, it would not have been possible without
the kind support an...
Objective of my project
In this project we have basically set out two objectives:

Business objective:
Our main objective ...
Market Conditions for Hybrid Cars

The growing concern over the increasing carbon emissions has forced global automobile i...
What is a hybrid car?
A hybrid vehicle is a vehicle that uses two or more distinct power sources to move the
vehicle. The ...
How does a Hybrid car works?

The question how do hybrid cars work, can be classified into two separate categories. The
tw...
Advantages of a hybrid car
Hybrid cars are an extremely interesting and environmentally friendly option that has been
maki...
Example of hybrid cars
Ford fusion hybrid(2014):

Price: $25861-$31678
Mileage: 47 kms
The 2014 Ford Fusion Hybrid ranks 1...
Survey for Market Research
for Hybrid Cars
Hello friends please fill this questionnaire for my marketing project on hybrid...
1

2

3

4

5

Size
Speed
Safety
Maintenance costs
Petrol
Consumption
Co2 Emissions

What do you think is the main disadva...


High using cost



Petrol is too expensive



Not environment friendly



Others
What is your daily average usage of...
Summary of responses of my questionnaire

50 responses
Summary
What is your name ?
diksha malik harmanpreet singh saagar g...
Male

35

70%

Female

15

30%

In my project maximum respondents are male this is quite obvious because males have more
i...
Petrol

24

55%

Diesel

19

43%

Hybrid-electric or other environmental friendly vehicle

1

2%

Other

0

0%

In this we...
4

5

10%

5

32

67%

Size [ What are the main benefits you consider the most when you are buying
a vehicle?]
1

1

2%

2...
1

2

4%

2

2

4%

3

11

23%

4

15

31%

5

18

38%

Maintenance costs [ What are the main benefits you consider the mo...
4

4

8%

5

34

71%

Co2 Emissions [ What are the main benefits you consider the most when you
are buying a vehicle?]

1
...
his or her safety. Safety is also sometimes considered as important factor people want their car
should have all safety fe...
36% of respondents dislike traditional vehicles because they have to depend on petrol which is most
expensive fuel today a...
Its more environment friendly

14

28%

The using cost is lower than the traditional vehicles

35

70%

1

2%

The oil pri...
0-25 kms

15

32%

25-50 kms

7

15%

50-75 kms

12

26%

75-100 kms

13

28%

How much excess money are you ready to pay ...
Small size cars

7

15%

Middle size cars

21

44%

Large size cars

20

42%

44% of respondents want hybrid technology in...
Maruti suzuki

8

16%

Toyota

14

28%

Honda

19

38%

Renault

7

14%

Other

2

4%

38% and 28% prefer hybrid cars made...
Analysis of questionnaire
Consumer Behaviour
There are many reasons why people decided to purchase a new vehicle. It was f...
Target market
(Characteristics of a hybrid car owner)
Educated people:
Those who purchase hybrid vehicles tend to have muc...
Summary of my Marketing Research on Hybrid Cars
Project focused on the ever advancing hybrid vehicle technology and its in...
Conclusion
Hybrid vehicles can be an overall improvement over conventional vehicles These vehicles are now a
vailable in n...
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Transcript of "Market research project on hybrid cars"

  1. 1. Marketing Research Project A market study on Hybrid Cars Project report Submitted to: To the faculty of Department of Business Studies of Keshav Mahavidyalaya(University of Delhi) Submitted by: Paras Aggarwal Submitted to: Ms Kangan Jain
  2. 2. Table of Contends
  3. 3. Acknowledgement I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Ms. Kangan Jain for their guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude towards my parents & classmates for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to colledge persons for giving me such attention and time. My thanks and appreciations also go to all respondents in developing the project, filling up of the Questionnaire and people who have willingly helped me out with their abilities.
  4. 4. Objective of my project In this project we have basically set out two objectives: Business objective: Our main objective is to increase the sales of hybrid cars by shifting the consumer from traditional vehicles to hybrid cars. Research objective:     To understand the behaviour of consumer towards hybrid cars. To understand the reasons of not purchasing of hybrid cars. To understand the market conditions for hybrid cars. To learn the ways by which sales of our product can be increased.
  5. 5. Market Conditions for Hybrid Cars The growing concern over the increasing carbon emissions has forced global automobile industry to develop advance and better vehicles running on alternative fuels. The factors such as Volatile Oil Prices, Shrinking of Fuel Reserves, Government Support and European Emission Standards are some of the factors driving the hybrid cars market. The report anticipates global hybrid automobile industry will witness a CAGR of more than 20 % over the period of 2012-2018. Government support will play a vital role in the growth of this industry. Electric vehicles are penetrating the market rapidly to constitute 35% of the cars made in 2025: 25% of those are expected to be hybrids. Environmental concerns have made hybrid vehicles more and more attractive, and both government incentives and consumer attitudes have pushed companies in the automotive industry to pay more and more attention to the manufacturing of environment-friendly cars. But hybrid vehicles is not a synonym of cars: nowadays there is a wide variety of vehicles that use two power sources, from bicycles to buses and other heavy vehicles, including military and medical applications.
  6. 6. What is a hybrid car? A hybrid vehicle is a vehicle that uses two or more distinct power sources to move the vehicle. The term most commonly refers to hybrid electric vehicles (HEVs), which combine an internal combustion engine and one or more electric motors. However other mechanisms to capture and utilize energy are included. Hybrid-electric vehicles (HEVs) combine the benefits of gasoline engines and electric motors and can be configured to obtain different objectives, such as improved fuel economy, increased power, or additional auxiliary power for electronic devices and power tools. Some of the advanced technologies typically used by hybrids include  Regenerative Braking. The electric motor applies resistance to the drivetrain causing the wheels to slow down. In return, the energy from the wheels turns the motor, which functions as a generator, converting energy normally wasted during coasting and braking into electricity, which is stored in a battery until needed by the electric motor.  Electric Motor Drive/Assist. The electric motor provides additional power to assist the engine in accelerating, passing, or hill climbing. This allows a smaller, more efficient engine to be used. In some vehicles, the motor alone provides power for low-speed driving conditions where internal combustion engines are least efficient.  Automatic Start/Shutoff. Automatically shuts off the engine when the vehicle comes to a stop and restarts it when the accelerator is pressed. This prevents wasted energy from idling.
  7. 7. How does a Hybrid car works? The question how do hybrid cars work, can be classified into two separate categories. The two categories are that of the engine powered by petroleum and that of the engine aided by an electric charge. Let us first discuss the working of the engine working on petroleum fuel. This category of engine can be used to propel the car only when the electric motor is being run at an extremely slow and measured speed. The gasoline motor can also be utilized to add an extra boost to the engine at instances when the car requires additional power, such as that of climbing up an inclined road or a steep hill. Some of the examples of cars belonging to this category include the Toyota Prius and the Ford Escape Hybrid. Let us consider the example of the Toyota Prius. When the car is started up, the engine continues to work by the assistance of the electric motor until the car reaches a speed of 25 mph. When the engine is accelerated further and the car begins to move beyond this speed, the gasoline engine comes to life and starts propelling the system. If the car is subjected to excess acceleration from the moment of starting up, the gasoline engine takes over automatically. The working of electric assist engines is somewhat different. In cars using this technology, the electrical engine is brought into use only when there is a need for extra power. In other words, the electric engine is used only to give a push to the car in conditions of traveling uphill or on harder terrain. Cars like the Civic Hybrid and the Honda Insight work on the basis of an electric assist engine. These cars make use of the electric engine only when the driving circumstances are such that there is need for extra force and power. These cars function better in conditions of cruising on the highway as the driving conditions then do not strain the engine much and hence fuel economy is bettered. Therefore when asked how do hybrid cars work, the answer will depend on the model and type of hybrid engine arrangement.
  8. 8. Advantages of a hybrid car Hybrid cars are an extremely interesting and environmentally friendly option that has been making waves in the news of late. With the need for action to protect the environment, hybrid cars are being hailed as the answer to polluting and environmentally damaging vehicles. Hybrid cars are a sort of cross between electric cars and conventional cars running on fuels. Hybrid cars work by running on rechargeable batteries as well as some fuels. As hybrid cars make the best of both worlds so as to speak, they offer a lot many advantages to people, which play an important role in the rise in their popularity. In this article we have discussed some of these advantages. Let us first discuss the most prominent advantage of hybrid cars, which arises out of the amalgamation of two separate technologies. Due to the electrical motor which is a part of the system, hybrid cars run on clean energy which does not damage the environment by causing pollution. And as a result of the gasoline being used as well, these cars also have the power that comes from conventional fuels. In other words, these cars by combining positives from both sides manage to be environmentally friendly and at the same time offer a good mileage. Due to the constant advances being made in the technology, hybrid cars are at an equal footing as conventional cars which run on gasoline, and hence owners of hybrid cars do not have to worry about being cheated out of any fundamental features. One of the great benefits of using hybrid cars is that these cars help to reduce the consumption and thus dependency of fossil fuels, and by doing this, they lead to a direct change in the prices of various fuels. While it is true that the parts of hybrid cars are hard to find and often quite expensive, owners and prospective buyers need not worry about additional costs as there are certain warranty schemes which offer replacement of the battery pack as well as other components, free of cost. With all the advancements being made in the field of science, the technology for hybrid cars is being refined and bettered with each passing day. This proves to be a positive sign as it shows that hybrid cars are here to stay and the investments of big companies in the concept can be seen to predict a positive future for hybrid cars. As an added incentive to appeal to people, many governments offer certain schemes to motivate people into buying hybrid cars. For example, the government in the United States offers a tax discount to owners of hybrid cars. Hybrid cars are extremely environmentally friendly as they have fewer emissions of carbon monoxide and other greenhouse gases, in comparison to the cars which run solely on gasoline. The maintenance for hybrid cars is fairly easy and certainly no more complicated than that of conventional vehicles. Hybrid cars do not need any particular servicing or maintenance throughout the entire lifespan of the car and hence are easy to take good care of. Hybrid cars reduce the gas emissions by a significant 25% to 35% in comparison to even the socalled environmentally friendly conventional cars.
  9. 9. Example of hybrid cars Ford fusion hybrid(2014): Price: $25861-$31678 Mileage: 47 kms The 2014 Ford Fusion Hybrid ranks 1 out of 22 Affordable Midsize Cars. This ranking is based on our analysis of published reviews and test drives of the Ford Fusion Hybrid, as well as reliability and safety data. Honda Accord Hybrid Avg. Paid:$29,724 - $35,433 MPG: 50 City / 45 Hwy The 2014 Honda Accord Hybrid ranks 4 out of 22 Affordable Midsize Cars. This ranking is based on our analysis of published reviews and test drives of the Honda Accord Hybrid, as well as reliability and safety data. Toyota Camry Hybrid Avg. Paid:$25,692 - $28,058 MPG: 43 City / 39 Hwy The 2014 Toyota Camry Hybrid ranks 4 out of 22 Affordable Midsize Cars. This ranking is based on our analysis of published reviews and test drives of the Toyota Camry Hybrid, as well as reliability and safety dates.
  10. 10. Survey for Market Research for Hybrid Cars Hello friends please fill this questionnaire for my marketing project on hybrid cars. Hybrid cars are those types of cars that uses two sources of energy for running (e.g. petrol and electricity) and is 20-30 kms more fuel efficient than traditional technology and is also a environment friendly vehicle. What is your name ? What is your age?  0-18  19-35  36-60      above 60 What is your gender? Male Female Do you have any private vehicle? Yes No Which kind of fueled vehicle are you using now?  Petrol  Diesel  Hybrid-electric or other environmental friendly vehicle  Other What is your present vehicle fuel efficiency ?  0-5 kms  6-10 kms  10-15 kms  15-20 kms  above 20 What are the main benefits you consider the most when you are buying a vehicle? Scale these factors below 1 Price 2 3 4 5
  11. 11. 1 2 3 4 5 Size Speed Safety Maintenance costs Petrol Consumption Co2 Emissions What do you think is the main disadvantage of using traditional fueled (perol or diesel) vehicle?  vehicles are too expensive  high using cost  Too rely on petrol  Not environment friendly      Others When you are buying a vehicle, do you think of the environmental factor? Yes No Do you know any about hybrid-electric vehicle or any other more environmental friendly vehicles before doing this questionnaire? Yes No Which reason would make you buy this hybrid electric vehicle?  Its more environment friendly  The using cost is lower than the traditional vehicles  The oil pricing is very fluctuating Which reason would make you stop buying this hybrid electric vehicle?  Its more expensive than the some performance's traditional fueled vehicles  You don't know this technology so much  You are not sure about the results of this technology  Hybrid vehicles is not good as traditional fuelled vehicle   As the global economic down turn, the decreasing fuel price is decreasing What are the reasons stopping you using a private vehicle? The vehicles are too expensive
  12. 12.  High using cost  Petrol is too expensive  Not environment friendly  Others What is your daily average usage of your private vehicle?  0-25 kms  25-50 kms  50-75 kms  75-100 kms How much excess money are you ready to pay for Hybrid engine in the same car?  Rs0 - Rs100000  Rs100000 - Rs500000  Rs500000 - Rs1000000 Which size of hybrid car would you prefer ?  Small size cars  Middle size cars  Large size cars For how long you are going to use a hybrid car?  3years  5years  8years  10years and above Which brands of car would you prefer with hybrid technology?  Maruti suzuki  Toyota  Honda  Renault  Other:
  13. 13. Summary of responses of my questionnaire 50 responses Summary What is your name ? diksha malik harmanpreet singh saagar gupta Samarth Rohit rhythima mahesh Rajiv aggarwal Hitesh Harshit Chawla Vibhore Neha Aggarwal Paras sharma Sahdev rohit Shivam Gupta Himanshu Anand Verma renu Anmol gogia keshav Dilnaman singh sachdeva Chandni divya Abhinav gupta himesh jyotish Shukul gaba rishabh aggarwal kunal Shruti Aggarwal yash Priyanka Chawla Shivam meghna Paras Ruchika pawan Pooja aggarwal Sumukh Shubham Ranjan rahul Saagar shalgam mirch Pawan renuka swami Priya Gaurav Kishore Sahil These are the name of all the people who have filled my questionnaire. What is your age? 0-18 15 30% 19-35 29 58% 36-60 5 10% above 60 1 2% In my project maximum respondents constitute of the people of age group 19-35 which constitute to about 58% this is the group of people who actually decides which vehicle to purchase , they have more knowledge about automobile and even have knowledge about hybrid cars. So this group of people have made by project more accurate and realistic. What is your gender?
  14. 14. Male 35 70% Female 15 30% In my project maximum respondents are male this is quite obvious because males have more interest towards cars than females they are actually better decision makers while purchasing of a vehicle . Do you have any private vehicle? Yes 37 74% No 13 26% Here we can see that maximum(74%) respondents do have their private vehicles this is because owning your own vehicle has become a necessity in today’s scenario you need your vehicle for some or the other purpose so that brought a great boom in automobile sector and is expected that is going to have same for hybrid cars market . Which kind of fueled vehicle are you using now?
  15. 15. Petrol 24 55% Diesel 19 43% Hybrid-electric or other environmental friendly vehicle 1 2% Other 0 0% In this we can see that people own more of petrol cars than diesel cars by a small percentage this is due to the fact that petrol are being part of market since 50 years whereas diesel cars have been part since 20 years . Today people are purchasing more of diesel cars instead of petrol it is a cheap source of fuel and diesel cars are more fuel efficient than petrol cars. In similar way hybrid cars is better more than diesel not just because of fuel cost and fuel efficiency but also it is environment friendly vehicle. Since hybrid cars are just recently a new innovation in automobile sector so therefore is not owned by many people but yes we do expect its rising future market. What is your present vehicle fuel efficiency ? 0-5 kms 1 2% 6-10 kms 9 20% 10-15 kms 26 58% 15-20 kms 6 13% above 20 3 7% We can observe that only 7% vehicle are having fuel efficiency above 20kms but maximum vehicles have fuel efficiency in range of 10-15 kms which is not very good for traditional vehicles as hybrid cars have fuel efficiency 3-4 times more than traditional vehicles which is biggest drawback to our traditional automobile industry. Price [ What are the main benefits you consider the most when you are buying a vehicle?] 1 2 4% 2 2 4% 3 7 15%
  16. 16. 4 5 10% 5 32 67% Size [ What are the main benefits you consider the most when you are buying a vehicle?] 1 1 2% 2 6 13% 3 11 23% 4 14 29% 5 16 33% Speed [ What are the main benefits you consider the most when you are buying a vehicle?] 1 0 0% 2 5 10% 3 13 27% 4 12 25% 5 18 38% Safety [ What are the main benefits you consider the most when you are buying a vehicle?]
  17. 17. 1 2 4% 2 2 4% 3 11 23% 4 15 31% 5 18 38% Maintenance costs [ What are the main benefits you consider the most when you are buying a vehicle?] 1 0 0% 2 4 8% 3 7 15% 4 6 13% 5 31 65% Petrol Consumption [ What are the main benefits you consider the most when you are buying a vehicle?] 1 3 6% 2 2 4% 3 5 10%
  18. 18. 4 4 8% 5 34 71% Co2 Emissions [ What are the main benefits you consider the most when you are buying a vehicle?] 1 4 8% 2 10 21% 3 23 48% 4 5 10% 5 6 13% These are the factors that consumer will consider before buying of a vehicle Price: It is the most important factor that people look for and also a dimension according to which cars are categorized. Purchase of vehicle basically depends upon the income of the consumer. E.g. Alto would be purchased by a individual who wants to purchase car for Rs 3,00,000 and Verna would be purchased by a individual who wants to purchase car for Rs 10,00,000. As per the questionnaire 67% of respondents consider price as a primary factor before purchasing of a vehicle which constitutes maximum part of respondents and these are the people who are good financial planners who go according to their pocket. Size: Many people do consider the size of the vehicle as their top priority. As people have family members let’s say 12 members so they might require a SUV car and whereas people who have members let’s say 4 can purchase a hatchback or sedan. Moreover people who already have a 5 seater car so they chooses to purchase a big car so that all family members can go together somewhere in a single big car. 33% of respondents scale size 5 because it depends upon their family size and moreover nowadays people also decide the size on basis of parking size of the vehicle. Safety: 31% respondents scale safety 4 even less than 50% because sometimes people have to compromise for the safety because of higher cost of vehicle with safety features otherwise who would not ensure
  19. 19. his or her safety. Safety is also sometimes considered as important factor people want their car should have all safety features like airbags. People don’t find it tough to compromise for money for safety. Performance: Performance is also crucial factor it many a times comes after price factor people do consider the performance of their vehicle either by a test drive or knowing its performance through brochures. People look for car horse power, BHP, top speed etc. Maintenance: It’s not just like that you purchase a vehicle and after that no money need to be spent on vehicle. Every vehicle has its some maintenance costs which consumer needs to spend from time to time . Maintenance is a very important factor because person will choose a car that leads to least future outflows. Fuel Efficiency: Every vehicle runs in some source of fuel it covers the maximum part of running cost. So as to reduce it person has to purchase a car which runs more miles in a litre of fuel. Purchasing highly fuel efficient is also a very important factor while purchasing of a vehicle. In our questionnaire 75% of respondents have scaled it 5 because running cost matters a lot to consumer and in which hybrid cars are more better option which gives fuel efficiency 3-4 times more than traditional vehicles. What do you think is the main disadvantage of using traditional fueled (perol or diesel) vehicle? vehicles are too expensive 5 10% high using cost 16 32% Too rely on petrol 18 36% Not environment friendly 10 20% 1 2% Others
  20. 20. 36% of respondents dislike traditional vehicles because they have to depend on petrol which is most expensive fuel today and hybrid cars have alternate source of energy like electriity similarly 10% respondents because of expensive vehicles but could save their cost by purchasing hybrid car because it covers its cost by cheaper running cost and 20% dislike because of not environmentally friendly and whereas hybrid cars are environment friendly. When you are buying a vehicle, do you think of the environmental factor? Yes 36 73% No 13 27% 73% of respondents consider environment also a factor while purchasing which shows consumer will love to purchase hybrid car. Do you know any about hybrid-electric vehicle or any other more environmental friendly vehicles before doing this questionnaire? Yes 40 82% No 9 18% 82% of respondents are aware about hybrid cars so consumers have much knowledge so we need not spend much on marketing of hybrid cars. Which reason would make you buy this hybrid electric vehicle?
  21. 21. Its more environment friendly 14 28% The using cost is lower than the traditional vehicles 35 70% 1 2% The oil pricing is very fluctuating 70% of respondents would purchase hybrid cars because its running cost is less than traditional vehicles which shows greater market scope for hybrid cars. Which reason would make you stop buying this hybrid electric vehicle? Its more expensive than the some performance's traditional fueled vehicles 11 22% You don't know this technology so much 14 28% You are not sure about the results of this technology 18 36% Hybrid vehicles is not good as traditional fuelled vehicle 7 14% As the global economic down turn, the decreasing fuel price is decreasing 0 0% 36% and 28% of respondents are not aware about the results of this technology and don’t know about this technology since hybrid cars are a recent innovation in automobile industry which will soon prove itself to the consumers. 22% of respondents doesn’t like it because it is more expensive than traditional vehicles and yes this is one of the drawbacks of hybrid cars. What is your daily average usage of your private vehicle?
  22. 22. 0-25 kms 15 32% 25-50 kms 7 15% 50-75 kms 12 26% 75-100 kms 13 28% How much excess money are you ready to pay for Hybrid engine in the same car? Rs0 - Rs100000 12 26% Rs100000 - Rs500000 30 64% Rs500000 - Rs1000000 5 11% 64% of respondents are ready to pay Rs 1,00,000 –Rs 5,00,000 extra for hybrid cars which is positive sign for hybrid cars industry because they will get their required return and progressively develop this particular field and even may reduce this difference since their innovation cost have been coveres. Which size of hybrid car would you prefer ?
  23. 23. Small size cars 7 15% Middle size cars 21 44% Large size cars 20 42% 44% of respondents want hybrid technology in middle size cars might be because of higher cost of hybrid so that they could afford this technology whereas 42% want it in large size cars might be because hybrid technology will be a thing of social status and it increases with large size cars. For how long you are going to use a hybrid car? 3years 4 9% 5years 18 38% 8years 21 45% 4 9% 10years and above 45% of respondents would keep the car for 8 years , 38% would keep for 5 years and 9% for both 3 years and 10 years. Which brands of car would you prefer with hybrid technology?
  24. 24. Maruti suzuki 8 16% Toyota 14 28% Honda 19 38% Renault 7 14% Other 2 4% 38% and 28% prefer hybrid cars made by Honda and Toyota respectively because they are aware that they both of them have good markets in the hybrid technology. Whereas Maruti Suzuki and Renault have not come up with with hybrid technology yet. Number of daily responses
  25. 25. Analysis of questionnaire Consumer Behaviour There are many reasons why people decided to purchase a new vehicle. It was found that the primary motivation for buying a new car was high mileage on the consumer’s previous or current car: When a vehicle attains high mileage, typically problems with the cars condition arise, whether the exterior of the car is eroding or beginning to look worn, the interior might be unkempt and grungy, or the car might begin to have mechanical problems. “Cars which continually breakdown and spend excessive amounts of time being repaired can work out to be a very costly expense. In the long run it is more economical to buy new and have the satisfaction and knowledge that the car will be covered under a warranty”23, before problems arise, most people try to sell his or her car and then purchase a new one, or, if these problems occurred unexpectedly, rather than spending money sens elessly on a vehicle that might not be worth it, it is more resourceful for the owner to invest in a new car. Update to new car Consumer sometimes just get tired of their vehicle and desire something more updated. They might wish for something with more modern technology, equipped with the latest machinery and features, something more comfortable and with a contemporary sleek appearance, “Many people are choosing to get a newer car because many safety features now come as standard on most makes and models. Airbags fitted to both the driver's and front passenger are a key feature many people now look for. Additional back seat airbags are becoming increasingly requested safety features by people looking for family cars. Bigger size of the vehicle Many people require a vehicle with more room and additional space to compensate for a growing family, extracurricular activities, etc.
  26. 26. Target market (Characteristics of a hybrid car owner) Educated people: Those who purchase hybrid vehicles tend to have much higher levels of education and report much higher household incomes.27 Car buyers who have more knowledge can make an educated and rati onal decision before committing to a large financial purchase. Rich class people: It also comes as no surprise that hybrid owners have higher incomes than those of traditional vehicl es. The average $5000 price difference between hybrids and nonhybrids is not something many families can afford to pay up front. This quickly eradicates the option of a hybrid. Environment lovers: The environmentally friendly consumers show interest in hybrid vehicles. Furthermore, most have previously owned smaller vehicles. This justifies that environmentally conscious consumers have a t rend in purchasing vehicles that have exceptional fuel efficiency. Factors that consumer considers while purchasing of a vehicle Price: It is the most important factor that people look for and also a dimension according to which cars are categorized. Purchase of vehicle basically depends upon the income of the consumer. E.g. Alto would be purchased by a individual who wants to purchase car for Rs 3,00,000 and Verna would be purchased by a individual who wants to purchase car for Rs 10,00,000. Size: Many people do consider the size of the vehicle as their top priority. As people have family members let’s say 12 members so they might require a SUV car and whereas people who have members let’s say 4 can purchase a hatchback or sedan. Moreover people who already have a 5 seater car so they chooses to purchase a big car so that all family members can go together somewhere in a single big car. Safety: Safety is also sometimes considered as important factor people want their car should have all safety features like airbags. People don’t find it tough to compromise for money for safety. Performance: Performance is also crucial factor it many a times comes after price factor people do consider the performance of their vehicle either by a test drive or knowing its performance through brochures. People look for car horse power, BHP, top speed etc. Maintenance: It’s not just like that you purchase a vehicle and after that no money need to be spent on vehicle. Every vehicle has its some maintenance costs which consumer needs to spend from time to time . Maintenance is a very important factor because person will choose a car that leads to least future outflows. Fuel Efficiency: Every vehicle runs in some source of fuel it covers the maximum part of running cost. So as to reduce it person has to purchase a car which runs more miles in a litre of fuel. Purchasing highly fuel efficient is also a very important factor while purchasing of a vehicle.
  27. 27. Summary of my Marketing Research on Hybrid Cars Project focused on the ever advancing hybrid vehicle technology and its integration into society. Society has been making a large effort to make everything green and cleaner in today’s world, including transportation. Advertisements have led people to believe that hybrid cars pollute less, will save money and reduce dependence on natural fuel sources.The encompassing question answe red in this paper was; do hybrids live up to expectations that society has suggested of them in the past decade? People buy new cars for a variety of reasons, sometimes out of necessity, sometimes for vanity, and sometimes for fun. Buying a car is a big investment and requires the consideration of many different variables. People look into price, performance, safety, and reliability when searching for a new car. With the growing interest in saving our planet, many companies have created hybrid cars and the government is developing incentive programs. These factors have enticed many people to consider buying these vehicles. With many types of hybrid technology available there is much interest in widespread conversion to hybrid transportation. With such a massive world population and high dependency on transportation, a significant switch to hybrids from gasoline and diesel vehicles must be met before any changes can be seen. This could mean converting all of our gas stations; possibly to electric plug in stations or hydrogen fill up stations. A widespread change to hybrids requires an extended period of time and also may not be cost effective. Many of the outcomes are not worth all that goes into getting the advanced technology on the road. Although hybrid cars typically achieve better gas mileage, they are initially much more expensive than conventional vehicles. If the increased initial cost of a hybrid is too much, the investment will be very hard to break even with. Hybrids must be driven to high mileages in certain conditions to re ally be worth paying for; these mileages are often many times higher than the average mileage that a consumer keeps their car for. In our focus group of non hybrid vehicles, the additional investmen t of a hybrid car was often a deciding factor against purchasing a hybrid vehicle. Others in the non‐ hybrid focus group were unable to find hybrid vehicles that fit the requirements that were necessar y to accommodate their lifestyles. Those that purchased hybrid vehicles were often doing so as a statement about their concern and efforts to saving the environment. Hybrid vehicles need to be utilized in situations that will benefit the most from them, such as public transportation. It can also be concluded that widespread implementation of hybrid technology is no t feasible at this time. The production of equally efficient hybrid vehicles is not great enough to com pete with non‐hybrids, both economically and numerically.
  28. 28. Conclusion Hybrid vehicles can be an overall improvement over conventional vehicles These vehicles are now a vailable in numerous models of all different sizes, capable of filling the requirements for single individuals or families. They are more technologically advanced, characteristically their appearance is more modern and desirable, and because there are so many different models and versions of these cars now, they are better suited for a whole spectrum of people with different desires and personalities. Due to the steadily increasing gas prices, the popularity of Hybrid vehicles among society has also escalated. There are many reasons for purchasing these new technologically advanced automotives; however, one of the more current reasons is the amount of money customer save on fuel. These new cars are advertised to achieve exceptional gas mileage when compared with conventional cars. It is said that even though they are typically more expensive initially, the amount that you save on gas eventually allows the purchaser to break even and save money, “…with gas prices rising even further …it is likely that you will recoup that up‐front premium in just a few short years. Another issue facing the economy is global warming and the effects of pollution on us and the environment. Those that believe and support in the world “going green” look at the lower fossil fuel emissions of hybrid vehicles as a reason to buy these cars. With the combination of a gasoline engine and an electric motor, hybrid cars produce less emissions while being driven, thus saving on gas and also helping the environment. While most hybrid cars still burn gasoline in an internal combustion engine, they also use other forms of motive power to help limit how much gasoline they burn. This means that hybrid cars cause significantly less damage to the environment than normal cars. It is said that every gallon of fuel burned produces 26 pounds of carbon dioxide that is then released into the environment. By driving a car that is more fuel efficient, a car that gets about 10 miles more per gallon in comparison to your old car, an individual can reduce the amount of car bon dioxide released into the environment by about 2,500 pounds each year. Other than the potential savings on fuel and the opportunity to give back to the environment, there are also state and federal tax benefits to persuade customers to spend the additional money in purchasing a new hybrid vehicle, “The Energy Policy Act of 2005” replaced the clean‐ fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006. The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit. Hence hybrid cars have a great potential market and world is no longer far that when we will see the hybrid car with each and every individual of the world. At last……… Think hybrid, think green, think money……. Thank you Mam for referring my project.

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