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MarketResearch_ProjectReport

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MarketResearch_ProjectReport

  1. 1. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. What drives satisfaction in motorbikes for men? _______________________________________________________________________________ A Marketing Research Study Presented By Arjun Ramesh FT163107 Arsh Prakash FT163014 Harshil Gagnani FT163028 Kumaresh Passoupathi FT163044 Nitin Raj FT163062 Ritvik Sahai FT163079 Srikanth Vadrevu FT163093 Section # 3 : Group # 13
  2. 2. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 1 INTRODUCTION Motorbikes are very much a part of our daily lives. With every passing day, the dependence on motorbikes is increasing at an exponential rate. People ride bikes for pleasure, satisfaction and for their usual business purposes. In less than five decades, these machines have occupied almost every nook and corner of the world. And so, the manufactures around the globe have responded to this rising demand. They try to meet the customers’ expectations and fulfill their satisfaction by continuous improvements in the product, over a period of time, in a tryst to garner a strong customer loyalty. And this is the topic of this research study, that amongst all this frenzy, what are the key drivers of customer satisfaction for a bike? 2 LITERATURE REVIEW Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectation. Satisfaction is a function of perceived performance and expectation. If it falls short of expectations, the customer remains dissatisfied; if it matches the expectations, the customer is satisfied. If the same exceeds expectations, the customer is highly satisfied or delighted. The concept of customer value and satisfaction is being increasingly used in strategy and marketing literature in recent years. Customer satisfaction is considered central to competitive advantage and long‐ term success of business organizations. Gilbert A Churchill, JR. & Carol Surpenant in their research paper, “An Investigation Into the determinants of Customer Satisfaction”, have explained that the concept of consumer satisfaction occupies a central position in marketing thought and practice. They further elaborate that satisfaction is a major outcome of marketing activity and serves as a chain-link of processes culminating in purchase and consumption. It also influences post purchase phenomenon such as attitude change, repeat purchase and brand loyalty. The importance is reflected by its inclusion in the marketing concept that profits generated through the satisfaction of consumer needs and wants. This research paper attempts to read into the nuances that influence satisfaction about motorbikes among men. This study could lead to potential insights that could prove useful for the automobile industry as it is common perception that men form a dominating share of the market for motorbikes. This research paper attempts to build an integrative configuration of the concept of customer satisfaction that reflects its richness and complexity. It reviews, synthesizes, and extends the literature on the subject. There have been several customer satisfaction research works done in the motorbike industry by some of the eminent and distinguished personalities in the industry. Work done by Parasuraman et.al, from 1985 to 1988 provides the basis for measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature.
  3. 3. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. M. Arutselvi (2011) in her research paper “A study on consumer satisfaction towards TVS bikes” analyses the performance of SARADAS Auto Agency for retaining their customers by their authorized sales. The study employs descriptive research approach and adopted survey method -130 respondents- for data collection. She concluded that sales for the agency were good because of a right approach of a group of sincere mechanics. Duggani Yuvaraju and Durga Rao (2014) in a study on “customer satisfaction towards Honda two Wheelers” have found that 90% consumers were completely satisfied with mileage and performance of the bike, 73% with the pickup of the bike, 56% by quality of service, 50% with design, 54% with price, and 60% found that explanation was excellent. This study concluded that there are considerable differences between among preferable factors such as mileage, pickup, price and design. A Study named “Customer Perception with Motor Cycle” was conducted by Dr. L. Vijay, Professor in SA Eng. College and B. Jayachitra, Associate Professor Vel Sreenivasa College, Chennai. It was published in the International Journal of Marketing and Human Resource Management (IJMHRM). It is a comparative study between customers of Hero Honda, Bajaj and TVS to know customer perception and the reason to a customer opt for a particular brand. The study suggests a better way to introduce eco- friendly bikes and to reduce cost in case of Hero Honda. It also states that it is better to improve mileage in case of Bajaj. And it is better to take necessary step to improve brand image in case of TVS. Few other notable mentions are work by Virupaxi Bagodi and Biswajit Mohanty, 2008, in which they highlight that the customer satisfaction is a corner stone of sustainable growth in two wheeler industry. Joshi V and Little I, 1996 detail the evolution of the competition structure of the two wheeler industry in India and stress the importance of consumer preference as an important factor in planning sales strategies. This research project tries to bring in the larger picture where we primarily consider the Indian motorbike Industry and the factors that drive satisfaction in men for these motorbikes. With the average levels of income increasing, in the coming decade, the motorcycle industry is expected to grow at a healthy rate. Which makes “satisfaction” the key word, as this has been targeted by the manufactures for very long. We intend to identify the areas where motorbike players can focus to improve their sales through healthy competition and help them identify newer methods and ways to churn out better, more customer centric products. 0% 20% 40% 60% 80% 100% Mileage and Performance Pick-Up Rate Quality Design Price Explanation Customer Satisfaction in Honda Bike
  4. 4. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 3 QUALITATIVE PHASE Motorbike markets appeal to men on radically different fronts. There are the heavy weight bikes that aim chiefly at being a pleasure ride banking on the macho-factor. And there are also bikes that cater to the conservative average earning Indian male by offering economical mileage and less maintenance costs. 3.1 METHOD USE: DEPTH INTERVIEWS The parameters that drive satisfaction needed to be obtained from a dip-stick research method. We evaluated the following options 1. Focus Groups : a. Identify two homogenous groups with varied perception of motorbikes. One that drives for pleasure and another that drives for business. b. Conduct separate group discussions in the presence of a moderator. c. Collate the results and list the dependent and independent variables. 2. Depth Interview : a. Identify well known bike lovers and people who drive for business. b. Sit with them in an informal environment and pick their mind with a loose set of questions. c. Listen to their opinions, and jot down the points that influence them. 3. Expert Opinion : a. Identify industry experts from leading motorbike manufacturing industry or sales experts. b. Conduct a personal interview with them. c. List down the parameters that according to them influence buyers’ opinions. After evaluation, we observed the following: Focus Group Expert Opinion Depth Interview Ease of Sample Collection Moderate Low High Number of Samples Involved More Less Less Credibility of results Meets Expectations Lends more insights Most Reliable Considering practicality and reliability, it was decided to go with Depth interview as it involved less man hours and lent a fair degree of reliability for a dipstick research. Further, since motorbike satisfaction is highly personalized and depends on different factors, it feels more appropriate to capture the level of satisfaction personally. Depth interview process helps avoid the influence of other peoples’ influence and opinion, providing a fair degree of reliability.
  5. 5. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 3.2 DEPTH INTERVIEW ANALYSIS To identify the parameters that tend to influence men, we sought to do Depth Interviews of two respondents. Subjects were first allowed to talk about their choice of bikes. And then, they were asked specific questions about what they like about their bike. They were then asked about their dream bike (if they had one). Then they were asked what they like about the dream bike more? Finally, they were asked to specify what they perceived as being better in the Dream Bike that their current bike did not have. A Typical Question List looked like this: Part I 1. Tell us about your bike. What do you own? Why do you own it? 2. What do you like specifically about your bike? Part II 3. Do you have a dream bike that you don’t own now? 4. What does your Dream Bike have that your bike does not have? The points identified by the subjects varied with the type of user. We identified three types of users. 1. Passionate Drivers: Their objective is not necessarily to commute. They like to drive just for the heck of it. 2. Everyday Commuters: These guys use bikes as a means of transport. They take minimal care on maintenance and are rarely attached to the idea of driving for pleasure. 3. Balanced Hybrids: These people are balanced. They use bikes for commutation. And they are also passionate about taking drives. They don’t go overboard like the Passionate Drivers to do a thousand mile trip. But they enjoy the commutes and the pleasure driving too. They take more cautionary maintenance of their bikes. Their level of attachment is more than the Everyday Commuters but less than the Passionate Drivers.
  6. 6. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 3.3 IDENTIFIED VARIABLES Based on the three types, we were able to identify a ballpark list of variables for the parameters to look for. Identified Independent Variables Passionate Drivers Everyday Commuters Balanced Hybrids Mileage Low High Moderate Acceleration and Engine Power High High High Brand Name High High High Promotion Low High High Cost Low High High Style (Sporty/ Legendary) High Low Moderate Riding Comfort High High High Engine Sound Moderate Moderate Moderate Low Maintenance Cost Low High Moderate Weight of the bike Low High Moderate Service Centres Low High Moderate Control Variables: Occupation, Age, Income Segment Dependent Variables: Customer Satisfaction Independent Variables: Mileage, Power, Brand, Promotion, Cost, Style, Comfort, Engine Sound, Number of Service Centers and Maintenance cost. 4 HYPOTHESIS H1: Mileage influences satisfaction. H2: Weight of the bike influences satisfaction. H3: Brand Name influences satisfaction. H4: Sales Promotions influences satisfaction. H5: Cost of the bike influences satisfaction. H6: Style of the bike influences satisfaction. H7: Riding comfort influences satisfaction. H8: Engine sound influences satisfaction. H9: Maintenance Cost influences satisfaction. H10: Aftersales Service influences satisfaction.
  7. 7. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 5 QUANTITATIVE PHASE It is proposed to hand out a survey with a set of questions. Multiple items are used to measure each construct to ensure a high degree of Cronbach alpha. 5.1 QUESTIONNAIRE DESIGN There are ten constructs being measured. Other than specific unambiguous constructs like mileage, weight, etc. every other construct was measured using a set of multiple items. Some items are reverse scored to ensure the consistency of the responses. The items are measured using a five point Likert Scale. The questionnaire used is included as Annexure A. 5.2 SAMPLING DESIGN The population that can be sampled is halved due to the gender segmentation of the topic. And, further, finding male bikers of a diverse background in a busy road would be the ideal method. One should also avoid choosing areas that are biased with one kind of population. For example, if the survey is conducted in the Rajiv Gandhi IT Expressway, the population is more likely to be dominated by educated graduates heading to work at their IT Offices. It is therefore ideal that a Cluster Sample be done. Choosing a metro like Chennai, and doing a random sampling in a bikers’ frequenting region would be appropriate. However, due to temporal and spatial constraints, this study was done using a convenience sampling. The impact of this kind of sampling on the results is discussed in sections 6 and 7. 5.3 ANALYSIS Data Collection was done using a typeform survey. Data from 42 variables were collated. About a 120 responses were polled. Post data cleansing by which glaringly pseudo data were removed, we were left with 116 responses.
  8. 8. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 5.3.1 Reliability Analysis For each multi-item construct, a reliability analysis was performed on its items. The computed Chronbach alphas passed the thumb rule threshold of 0.6 minimum value. Upon confirmation of a good alpha value, the average scores for the multi-item measures were computed. 5.3.2 Principal Component Analysis The scores were then subjected to a co-relation test. This revealed the existence of a high degree of co- relations among the independent variables. As a result, Factor Extraction and Rotation were performed. Two Rotated Principal Components were obtained with the loadings distinguished in the table given. Principal Component # 1: Has components mileage, weight and sound. These are parameters that an economic commuter looks for. His driving force is the need to commute. He is concerned about the most economical parameter of a bike, namely the mileage factor. Since his need is more functional than anything else, weight matters to him. The sound of the engine is the chief indicator of the performance of his vehicle. So, the sound features in the same head. And given a tradeoff between comfort and mileage, he’d always choose mileage. Principal Component # 2: The elements belonging to this component highlight those that a passionate biker will be looking for. The passionate bikers are those that know the potential of their bike, and are usually racers who are in good control at top speeds. They are also influenced by big brand names in their sector. Since they are more likely to enjoy long rides, they are most likely to look for the comfort factor. So, the two components are being named as follows. PC1: Economic Commuting Factor PC2: Passionate Driving Factor Variable Chronbach α Number of Items pickUp 0.75 4 brand 0.84 3 promo 0.926 3 comfort 0.756 4 afterSales 0.92 4 sound 0.924 5 style 0.921 5 satisfaction 0.869 5 mileage - 1 weight - 1 Rotated Component Matrixa Component 1 2 mileage .099 -.647 Weight .260 .565 PickUp .643 .265 Brand .836 .011 Promotions .537 -.187 Comfort .737 .059 AfterSales .736 -.116 Sound -.092 .725 Style .681 .467 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 3 iterations.
  9. 9. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 5.3.3 Regression Analysis The R2 reveals that 80% of the variance in the dependent variable is explained by the variations in the given independent variables. Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 3.252 .024 138.335 .000 Passionate Driving .458 .024 .790 19.398 .000 Economic Commuting .246 .024 .424 10.401 .000 a. Dependent Variable: Satisfaction Both factors are significant. And the regression line is given by Y = 3.252 + 0.458 * PC1 + 0.246 * PC2 Where Y is the Satisfaction among Consumers. PC1: Passionate Driving Factor PC2: Economic Commuting Factor The Principal Components each in turn are identified as a function of each of the loading variable. Since both the Factors are significant, all the variables contributing to them are significant. This implies that the Hypothesis defined earlier in section 4 are all valid and accepted. 6 RESULTS AND INFERENCES As supported by the above equation, we can state, with fair degree of certainty, that the Passionate Driving factors dominate the arena. The Passionate Driving Factor encompasses bikers who are very knowledgeable and attached to their bikes. As a result, they value the pickup, and other vanity factors such as Brand, Promotion. Since they are more prone to long term driving they prefer to be comfortable while driving. The bikers are also want to be always ready for a journey on a short run. They seem particular about the after sales service, its frequency and quality. The other component comprises of the Economic Driving parameters. These parameters are associated with people who use their bikes meticulously but only for their commutation. They find it hard to form the kind of emotional bond with their bikes like the Passionate Drivers do. Mileage is the prime concern for them. They also notice the weight, and the performance in the long run. These are the people who also notice and are sensitive to the sound of the engine. Since these people are involved in economic advantage over comfort, they settle for uncomfortable bikes too if it gets them a better price.
  10. 10. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 7 RESULTS BIAS The survey was floated on online forums which are frequented by bikers who are passionate about what they do. So, the result of this showing a high level of weightage on the Passionate Bikers’ Factor might be biased. The bias can be corrected by a proper choice of sampling that incorporates the heterogeneity better. 8 SHORT COMINGS: ROOM FOR IMPROVEMENT The results that portray that the Passionate Bikers’ factors are more pronounced than the Daily Commuter’ Factor is heavily biased by the fact that the sampling did not account for the heterogeneity. The number of respondents for the sample survey was lower than preferred. Going by the benchmark of ten times the number of questions, the ideal sample size should have been around 400. Instead the low number of responses (about 120) takes a toll on the veracity of the analysis. The Size of the Questionnaire was too long by popular opinion. The respondents also were able to sense the repetitiveness of the items quite obviously. Thus, a better questionnaire design will have a sharper questionnaire with a reduced number of questions and less ambiguous questions. The Factor Separations took a hit due to the non-availability of sufficient variance in the data caused by the lack of adequate heterogeneity in the sampled data. More responses and sharper questions would have helped in factor extraction with better variance and grouping. 9 ANNEXURES 9.1 ANNEXURE – A: QUESTIONNAIRE USED # Question General Info / Potential Control Variables 1 Tell us your name 2 How old are you? 3 What do you do for a living? 4 How much money do you make per month? 5 What bike do you drive? Mileage 6 Bike's mileage? 7 My bike gives good mileage Cost 8 How much did your bike cost you? Weight 9 My bike is heavy 10 What's your weight?
  11. 11. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. PickUp 11 My bike picks up really fast 12 I am satisfied with how quick my bike can pick up 13 I feel that after breaking, it takes me a long time to get to speed* 14 My bike's poor acceleration annoys me during stop/start in traffic* Brand 15 My bike's makers have made a quality product 16 I feel good being associated with the brand of my bike 17 The brand of my bike is poor. I made a mistake in buying it.* Promo 18 My bike's makers did good promotions for the bike 19 I liked that promotion events that were made 20 The promotions were nice and adequate Comfort 21 My bike is very comfortable to ride. 22 I hardly feel any discomfort when riding my bike 23 My butt and back ache after a ride* 24 I never notice any discomfort when riding my bike After Sales 25 I am satisfied with the after Sales service 26 The after Sales service provided is good 27 I am quite happy with the level of service provided 28 The after Sales service for my bike is poor* Sound 29 My bike makes a lot of sound 30 The sound from my bike is high 31 My bike is very quiet* 32 My bike is loud when it runs 33 My bike is one of the loud bikes in the market. Style 34 My bike is trendy 35 I think my bike is quite stylish. 36 My bike has good looks. 37 I don't like my bike's design. I don't like the looks.* 38 I like the overall style factor of my bike Satisfaction 39 Overall, I like my bike 40 I am quite satisfied with my bike 41 I regret buying my bike.* 42 My bike is not to my liking.* 43 I love my bike.
  12. 12. Section # 3, Group # 13, What drives satisfaction in motorbikes for men? Market Research | Analysis Report Passionate Pandyas. PGPM 2015-16 Marketing Research Project, Great Lakes Institute of Management, Analysis Report | August 2015 Manamai, Chennai. 9.2 ANNEXURE – B: OUTPUT SCREENS: REGRESSION MODEL Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .897a .804 .801 .2585687 a. Predictors: (Constant), Economic Commuting, Passionate Driving ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 32.391 2 16.195 242.237 .000b Residual 7.889 118 .067 Total 40.280 120 a. Dependent Variable: Satisfaction b. Predictors: (Constant), Economic Commuting, Passionate Driving ANOVAa Model Sum of Squares df Mean Square F Sig. 1 Regression 32.391 2 16.195 242.237 .000b Residual 7.889 118 .067 Total 40.280 120 a. Dependent Variable: Satisfaction b. Predictors: (Constant), Economic Commuting, Passionate Driving 10 BIBLIOGRAPHY Arutselvi, M. (2011). A study on consumer satisfaction towards TVS bikes. Dr. L. Vijay, a. B. (n.d.). Customer Perception with Motor Cycle. GA Churchill Jr, C. S.-J. (1982). An investigation into the determinants of customer satisfaction. JSTOR. Gilbert A Churchill, J. &. (n.d.). An Investigation Into the determinants of Customer Satisfaction. J. Joseph Cronin, J. a. (Jan., 1994). SERVPERF versus SERVQUAL: Reconciling Performance-Based and Perceptions-Minus-Expectations Measurement of Service Quality. Journal of Marketing, Vol. 58, No. 1, p. 125-131. Rao, D. Y. (n.d.). Customer Satisfaction towards Honda Two Wheelers.

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