Factors Affecting Customer Buying Behavior

A Study on Factors Affecting Customers buying behavior at MK Motors
Girideepam Institute of Advanced Learning
1
CHAPTER I
INTRODUCTION

2
1.1 INTRODUCTION:
Consumer Behavior is the study of individuals, groups, or
organizations and the processes theyuseto select, secure, use, and disposeofproducts,
services, experiences, or ideas to satisfy needs and the impacts that these processes
have on the consumer and society. It blends elements from
psychology, sociology, social anthropology, marketing and economics. It attempts to
understand the decision-making processes ofbuyers, both individually and in groups
such as how emotions affect buying behavior. It studies characteristics of individual
consumers suchas demographics and behavioral variables in an attempt to understand
people's wants. It also tries to assess influences on the consumer from groups such as
family, friends, sports, reference groups, and society in general.
Customer behavior study is based on consumer buying behavior, with the customer
playing the three distinct roles of user, payer and buyer. Research has shown that
consumer behavior is difficult to predict, even for experts in the field. Relationship
marketing is an influential assetforcustomerbehavior analysis as it has a keen interest
in the re-discovery of the true meaning of marketing through the re-
affirmation of the importance of the customer or buyer. A greater importance is also
placed on consumer retention, customer relationship management, personalization,
customization and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.
Each method for vote counting is assumed as socialfunction but if Arrow’s possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications of the social functions are decisiveness,
neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and
strong Pareto optimality. No social choice function meets these requirements in an

3
ordinal scale simultaneously. The mostimportant characteristic of a social function is
identification of the interactive effect of alternatives and creating a logical relation
with the ranks. Marketing provides services in orderto satisfy customers. With that in
mind the productive system is considered from its beginning at the production level,
to the end of the cycle, the consumer (Kioumarsi et al., 2009).
Need to understand:
 Why consumers make the purchases that they make.
 What factors influence consumer purchases?
 The changing factors in our society.
A firm needs to analyze buying behavior for:
 Buyer’s reactions to a firms marketing strategy has a great impact on the firm’s
success.
 The marketing conceptstresses that a firm should create a Marketing Mix (MM)
that satisfies (gives utility to) customers, therefore need to analyze the what,
where, when and how consumers buy.
Marketers can better predict how consumers will respond to marketing strategies.
1.1.1 Stagesofthe Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (Forcomplexdecisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a
purchase. All consumer decisions do not always include all 6 stages, determined by
the degree of complexity...discussed next.

4
The 6 stages are:
1. Problem Recognition (awareness of need)--difference between the desired state and
the actual condition. Deficit in assortment of products. Hunger-Food. Hunger
stimulates your need to eat. Can be stimulated by the marketer through product
information--did not know you were deficient. I.E., see a commercial for a new pair
of shoes, stimulates your recognition that you need a new pair of shoes.
2. Information search--
o Internal search, memory.
o External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources etc.
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the
buyer wants or does not want. Rank/weight alternatives or resume search. May
decide that you want to eat something spicy, Indian gets highest rank.
If not satisfied with your choice then return to the search phase. Can you think of
another restaurant? Look in the yellow pages etc. Information from different
sources may be treated differently. Marketers try to influence by "framing"
alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store,
method of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product
availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have you made the right decision. This can be reduced by warranties,
after sales communication etc. After eating an Indian meal, may think that really
you wanted a Chinese meal instead.

5
1.1.2 FactorsInfluencing Consumer Buying Behavior
Buying behavior ofindividuals is often unconsciously affected by
some factors. Social factors play an important role in the decision of buying certain
products, including the most sensitive products such as cars. The important social
factors are: reference groups, family, role and status. There are four important
psychological factors affecting the consumer buying behavior are: perception,
motivation, learning, beliefs and attitudes. The economic factors that mostcommonly
affect consumer behavior include occupation, economic situation and personality.
Successfulbusinesses understand how to leverage the different factors that influence
consumer buying behavior to effectively market their products and maximize sales.
Studies show that there are generally four main factors that play a role in the
consumer's buying behavior. The factors include cultural factors, social factors,
personal factors and psychological factors. This study will therefore explore of the
four main factors that influence consumer buying behavior of the automotive. A study
by Havkinze, Roger & Kenth (2006) found out that the consumers disposableincome
play a major role in determining what to buy and in what quantities, however this
depends on the income elasticity of a certain product, if the consumers disposable
income increases and that the income elasticity ofdemand for that good is greater than
one then the proportional rise in the demand for that productis greater than the rise in
income levels. Their study also reported that the influence of culture on buying
behavior varies from country to country therefore marketers have to be very careful
in analyzing the culture of different groups, regions or even countries. According to
Peter and Olson (2005) customerpossessesspecific belief and attitude towards various
products. Since such beliefs and attitudes make up brand image and affect consumer
buying behavior therefore marketers are interested in them. Marketers can change the
beliefs and attitudes of customers by launching special campaigns in this regard.

6
1.2 INDUSTRY PROFILE
1.2.1 AUTOMOBILE INDUSTRY IN INDIA
In the fast moving world with the biggest countries with huge
economies India has managed to be the eleventh in the world for annual productionof
2 million units approximately. This sectorin India is growing at a very fast rate and it
has crossed China in terms of selling the Units. Automobile industry in India
comprises of 13 million direct and indirect employees. It contributes 3.1% of India’s
GDP (nominal) and the valuation of the industry is about US$ 34 billion. India's
motorcycle market with an annual sale of 5 million units is the second largest around
the globe. India has Fourth largest commercial vehicle market, Eleventh largest
passenger car market, fifth largest bus & truck market (by volume) around the globe.
With this growing paceIndia by 2016 is expected to be the seventh largest automobile
market and by 2030 world’s 3rd largest behind US & China. Late 1890’s is the time
when Automobile was introduced in India but it came into existence only after the
independence in 1947. Until 1980’s Hindustan Motors and some small manufacturers
Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard Motors held an
oligopoly till the time when Maruti Suzuki came into existence after the death of the
great Indian politician Sanjay Gandhi who championed the need for a "people's car".
It quickly gained over 50% of the market share. The Maruti 800 became popular
because of its low price, high fuel efficiency, reliability and modern features relative
to its competition at the time. Fromthe decades in the Indian automotive industry there
were only few vehicle models but then also there is a good lead time to get a car after
the booking. So with changing economy, competition, and urge to grow big we are
here with more than 100 Models and every moth with a new model to offer. Keeping
in mind the comfort of the people and their choice the models are prepared.
Performance of vehicle is increasing day by day, its fuel efficiency and reliability has
no match with others around the globe. In spite of having manufacturing of major

7
foreign automakers based in India our Indian Domestic Automobile Companies are
leading in the Market. Tata Motors is the largest commercial vehicle company, Maruti
Suzuki is the largest passenger vehicle company & Hero Honda is the largest
motorcycle company in India. Mahindra & Mahindra, Ashok Leyland and Bajaj Auto
are some more leading automobile manufacturers.
1.2.2 Evolution of Automobile Industry in India
The first car ran on India's roads in 1897. Until the 1930s, cars
were imported directly, but in very small numbers. An embryonic automotive industry
emerged in India in the 1940s. Hindustan was launched in 1942, long time competitor
Premier in 1944. They built General Motors and Fiat products respectively. Mahindra
& Mahindra was established by two brothers in 1945, and began assembly of Jeep CJ-
3A utility vehicles. Following the independence, in 1947, the Government of India
and the private sector launched efforts to create an automotive component
manufacturing industry to supply to the automobile industry. In 1953 an import
substitution programme was launched, and the import of fully built-up cars began to
be impeded.
However, the growth was relatively slow in the 1950s and 1960s dueto nationalization
and the license raj which hampered the Indian private sector. Total restrictions for
import of vehicles were set and after 1970 the automotive industry started to grow,
but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars
were still a major luxury item. In the 1970s price controls were finally lifted, inserting
a competitive element into the automobile market. By the 1980s, the automobile
market was still dominated by Hindustan and Premier, who sold superannuated
products in fairly limited numbers. During the eighties, a few competitors began to
arrive on the scene.

8
Eventually multinational automakers, such as, though not limited to, Suzuki and
Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian
market ultimately leading to the establishment of an automotive industry in India.
Maruti Suzuki was the first, and the most successfulof these new entries, and in part
the result of government policies to promotethe automotive industry beginning in the
1980s. As India began to liberalize their automobile market in 1991, a number of
foreign firms also initiated joint ventures with existing Indian companies. The variety
of options available to the consumer began to multiply in the nineties, whereas before
there had usually only been one option in each price class. By 2000, there were 12
large automotive companies in the Indian market, most of them offshoots of global
companies.
Exports were slow to grow. Sales ofsmall numbers of vehicles to tertiary markets and
neighboring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to
Europe (Hungary). After some growth in the mid-nineties, exports once again began
to drop as the outmoded platforms handed down to Indian manufacturers by
multinationals were not competitive. This was not to last, and today India
manufactures low-priced cars for markets across the globe. As of 18 March 2013
global brands suchas Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodgeand
Geely Holding Group are shelving plans for India due to the global economic crisis
1.2.3 Present scenario of Indian Automobile Industry
The automotive industry in India is one of the larger markets in
the world. It had previously been one of the fastest growing globally, but is currently
experiencing flat or negative growth rates. India's passenger car and commercial
vehicle manufacturing industry is the sixth largest in the world, with an annual
production of more than 3.9 million units in 2011. According to recent reports, India
overtook Brazil and became the sixth largest passenger vehicle producerin the world

9
(beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada,
Mexico, Russia, Spain, France, and Brazil), grew 16 to 18 percent to sell around three
million units in the courseof 2011 and 2012. In 2009, India emerged as Asia's fourth
largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010,
India beat Thailand to become Asia's third largest exporter of passenger cars.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making
the country the second (after China) fastest growing automobile market in the world
in that year. According to the Society of Indian Automobile Manufacturers, annual
vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as
previously projected. The majority of India's car manufacturing industry is based
around three clusters in the south, west and north. The southern cluster consisting of
Chennai is the biggest with 35% of the revenue share. The western hub near Mumbai
and Pune contributes to 33% ofthe market and the northern cluster around the National
Capital Region contributes 32%. Chennai, with the India operations ofFord, Hyundai.
Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA
Peugeot Citroen is about to begin their operations by 2014. Chennai accounts for60%
of the country's automotive exports. Gurgaon and Manesar in Haryana form the
northern cluster where the country's largest carmanufacturer, Maruti Suzuki, is based.
The Chakan corridor near Pune, Maharashtra is the western cluster with companies
like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors,
Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly
plants in the area. Nashik has a major base of Mahindra and Mahindra with a SUV
assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and
Volkswagen also forms part of the western cluster. Another emerging cluster is in the
state of Gujarat with manufacturing facility of General Motors in Halol and further
planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-

10
Citroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors,
Noida with Honda and Bangalore with Toyota are some of the other automotive
manufacturing regions around the country. In 2011, there were 3,695 factories
producing automotive parts in all of India. The average firm made US$6 million in
annual revenue with profits close to US$400 thousand.
1.2.4 List of Major Companies:
Indian Companies
Force Motors (BajajTempo Ltd)
Force Motors, formerly Bajaj Tempo, is an Indian manufacturer
of three-wheelers, multi-utility and cross countryvehicles, light commercial vehicles,
tractors, buses and heavy commercial vehicles. It was originally named Firodia Tempo
Ltd. and later after partial acquisition by Bajaj Auto as Bajaj Tempo Ltd
Ashok Leyland
Ashok Leyland is an Indian automobile manufacturing company based
in Chennai, India. Founded in 1948, it is the 2nd largest commercial vehicle
manufacturer in India, 4th largest manufacturer of buses in the world and 16th largest
manufacturer of trucks globally. Operating six plants, Ashok Leyland also makes
spare parts and engines for industrial and marine applications. It sells about 60,000
vehicles and about 7,000 engines annually. It is the second largest commercial vehicle
company in India in the medium and heavy commercial vehicle (M&HCV) segment.

11
Hindustan Ambassador
The Hindustan Ambassador was an automobile manufactured
by Hindustan Motors of India. It was in production from 1958 to 2014 with few
improvements or changes and is based on the Morris Oxford III model, first made by
the Morris Motors Limited at Cowley, Oxford in the United Kingdom from 1956 to
1959. Modelled after the British Morris Oxford, the Ambassador was the first car to
be made in India and was once a status symbol, but began losing its dominance in the
mid-1980s when Maruti Suzuki introduced its low-priced 800 hatchback. It lost
further cachet and market share when global automakers began setting up shop in
India in the mid-1990s, offering models with contemporary designs and technology.
The Ambassador has remained the choice of a dwindling share of bureaucrats and
politicians, usually in white with a red beacon on top and a chauffeur at the wheel. It
is also still in use as a taxi in some Indian cities.
Mahindra & Mahindra Limited
Mahindra & Mahindra Limited (M&M) is an Indian
multinational automobile manufacturing corporation headquartered in Mumbai,
Maharashtra, India. It is one of the largest vehicle manufacturers by production
in India and the largest seller of tractors across the world. It is a part of Mahindra
Group, an Indian conglomerate. It was ranked as the 10th most trusted brand in India,
by The Brand Trust Report, India Study 2014. It was ranked 21st in the list of top
companies of India in Fortune India 500 in 2011.

12
Multi-national companies
BMW
Bayerische Motoren Werke AG, English: Bavarian Motor Works),
commonly known as BMW or BMW AG, is a German automobile, motorcycle and
engine manufacturing company founded in 1916.
BMW is headquartered in Munich, Bavaria. It also owns and produces Mini cars, and
is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles
under BMW Motorrad. In 2012, the BMW Group produced
1,845,186 automobiles and 117,109 motorcycles across all ofits brands. BMW is part
of the "German Big 3" luxury automakers, along with Audi and Mercedes-Benz,
which are the three best-selling luxury automakers in the world.
Fiat
Fiat India Automobiles Limited (FIAL) was originally incorporated on 2
January 1997. The company presently employs about 2600 employees and is located
at Ranjangaon in the Pune District of Maharashtra. The definitive agreement of the
Joint Venture between Fiat S.p.A (Italy) and Tata was signed on 19 October 2007.
The board of directors for this company comprises five nominees each from Fiat and
Tata. Earlier, Fiat used to sell the 1100, 124 and Uno in India, manufactured under
license by Premier Automobiles Limited.

13
Ford Motors
The Ford Motor Company (commonly referred to as simply Ford) is
an American multinational automaker headquartered in Dearborn, Michigan, a suburb
of Detroit. It was founded by Henry Ford and incorporated on June 16, 1903. The
company sells automobiles and commercial vehicles under the Ford brand and most
luxury cars under the Lincoln brand. Ford also owns Brazilian SUV
manufacturer, Troller, and Australian performance car manufacturer FPV. In the past
it has also produced tractors and automotive components. Ford owns a 2.1% stake
in Mazda of Japan, an 8% stake in Aston Martin of the United Kingdom, and a 49%
stake in Jiangling of China. It also has a number of joint-ventures, two in China
(Changan Ford Mazda and Ford Lio Ho), one in Thailand (Auto Alliance Thailand),
one in Turkey (Ford Otosan), and one in Russia (Ford Sollers). It is listed on the New
York Stock Exchange and is controlled by the Ford family, although they have
minority ownership. It is described by Forbes as "the most important industrial
company in the history of the United States."
Ford is the second-largest U.S.-based automaker (preceded by General Motors) and
the fifth-largest in the world based on 2010 vehicle sales. At the end of 2010, Ford
was the fifth largest automaker in Europe. Ford is the eighth-ranked overall American-
based company in the 2010 Fortune 500 list, based on global revenues in 2009 of
$118.3 billion. In 2008, Ford produced5.532 million automobiles and employed about
213,000 employees at around 90 plants and facilities worldwide.

14
General Motors
General Motors Company, commonly known as GM, is
an American multinational corporation headquartered in Detroit, Michigan, that
designs, manufactures, markets and distributes vehicles and vehicle parts and sells
financial services. General Motors led global vehicle sales for 77 consecutive years
from 1931 through 2007, longer than any other automaker, and is currently among the
world's largest automakers by vehicle unit sales.
Honda
Honda Motor Co., Ltd.is a Japanese public multinational
corporation primarily known as a manufacturer of automobiles, motorcycles and
power equipment. Honda has been the world's largest motorcycle manufacturer since
1959, as well as the world's largest manufacturer of internal combustion
engines measured by volume, producing more than 14 million internal combustion
engines each year. Honda became the second-largest Japanese automobile
manufacturer in 2001. Honda was the eighth largest automobile manufacturer in the
world behind General Motors, Volkswagen Group, Toyota, Hyundai Motor
Group, Ford, Nissan, and PSA in 2011. Honda was the first Japanese automobile
manufacturer to release a dedicated luxury brand, Acura, in 1986. Aside from their
core automobile and motorcycle businesses, Honda also manufactures garden
equipment, marine engines, personal watercraft and power generators, amongst
others. Since 1986, Honda has been involved with artificial intelligence/robotics

15
research and released their ASIMO robot in 2000. They have also ventured into
aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda
HA-420 HondaJet, which began production in 2012. Honda has three joint-ventures
in China (Honda China, Dongfeng Honda, and Guangqi Honda).
Hyundai
The Hyundai MotorCompany is a South Korean multinational automotive
manufacturer headquartered in Seoul, South Korea. The company was founded in
1967 and, along with its 32.8% owned subsidiary, Kia Motors, together comprise
the Hyundai Motor Group, which is the world's fifth largest automaker based on
annual vehicle sales in 2012. In 2008, Hyundai Motor(without Kia) was ranked as the
eighth largest automaker. As of 2012, the Company sold over 4.4 million vehicles
worldwide in that year, and together with Kia total sales were 7.12 million. Hyundai
is currently the fourth largest vehicle manufacturer in the world. Hyundai operates the
world's largest integrated automobile manufacturing facility in Ulsan, South Korea,
which has an annual production capacity of 1.6 million units. The company employs
about 75,000 people worldwide. Hyundai vehicles are sold in 193 countries through
some 6,000 dealerships and showrooms.
Renault-Nissan
Renault S.A. is a French multinational vehicle manufacturer established in
1899. The companyproduces arange ofcars and vans, and in the past, trucks, tractors,

16
tanks, buses/coaches and auto rail vehicles. In 2011, Renault was the third biggest
European automaker byproductionbehind Volkswagen Group and PSAand the ninth
biggest automaker in the world by production in 2011. Headquartered in Boulogne-
Billancourt, the Renault group is formed by the namesake Renault marque and
subsidiaries Automobile Dacia from Romania and Renault Samsung Motors from
South Korea. Renault is known for its role in motor sport, and its success over the
years in rallying and Formula 1. Its early work on mathematical curve modeling for
car bodies is also important in the history of computer graphics.
Mercedes-Benz
Mercedes-Benz is a German automobile manufacturer, a multinational
division of the German manufacturer Daimler AG. The brand is used for luxury
automobiles, buses, coaches, and trucks. The headquarters of Mercedes-Benz is
in Stuttgart, Baden-Württemberg, Germany. The name first appeared in 1926
under Daimler-Benz but traces its origins to Daimler-Motoren-Gesellschaft's
1901 Mercedes and to Karl Benz's 1886 Benz Patent Motor wagon, which is widely
regarded as the first gasoline powered automobile. Mercedes-Benz's slogan is "Das
Beste oder nichts" (English: "The best or nothing"). Mercedes-Benz is part of the
"German Big 3" luxury automakers, along with Audi and BMW, which are the
bestselling luxury automakers in the world.

17
Mitsubishi Motors
The Mitsubishi Group (also known as the Mitsubishi Group of
Companies or Mitsubishi Companies) is a group of autonomous
Japanese multinational companies covering a range of businesses which share the
Mitsubishi brand, trademark, and legacy. The Mitsubishi group of companies form a
loose entity, the Mitsubishi Keiretsu, which is often referenced in Japanese and US
media and official reports;in general these companies all descend fromthe zaibatsu of
the same name. The top 25 companies are also members of the Mitsubishi Kin'yōkai,
or "Friday Club", and meet monthly. The Mitsubishi.com Committee facilitate
communication and access to the Mitsubishi brand through a portal web site.
Škoda
Škoda Auto more commonly known as Škoda, is
an automobile manufacturer based in theCzech Republic. The car manufacturer was
founded in 1895 as Laurin & Klement, it was acquired by Škoda Works in 1925, and
became a wholly owned subsidiary of the Volkswagen Group in 2000, positioned as
the entry brand to the group. Its total global sales reached 931,696 cars in 2013.

18
Toyota
Toyota Motor Corporation is a Japanese automotive manufacturer
headquartered in Toyota, Aichi, Japan. In 2013 the multinational
corporation consisted of333,498 employees worldwide and, as of November 2014, is
the twelfth-largest company in the world by revenue. Toyota was the largest
automobile manufacturer in 2012 (by production) ahead of the Volkswagen
Group and General Motors. The company was founded by Kiichiro Toyoda in 1937
as a spinoff from his father's company Toyota Industries to create automobiles.
Volkswagen
Volkswagen plant on India was officially inaugurated on 2009. The plant has
a production capacity of 1,30,000 vehicles a year, which in capacity was maximized
in 2011. The construction of the plant commenced in 2007.The Pune plant is one of
the most modern in the Volkswagen Group. It has a high level of vertical integration
and a large share of local suppliers. The facility is the only production plant operated
by a German automaker in India that covers the entire production process, frompress
shop through body shop and paint shop to final assembly.

19
Audi
Audi AG is a German automobile manufacturer that designs, engineers,
produces, markets and distributes luxury automobiles. Audi oversees worldwide
operations from its headquarters in Ingolstadt, Bavaria, Germany. Audi-branded
vehicles are produced in nine production facilities worldwide.
Audi has been a majority owned (99.55%) subsidiary of Volkswagen Group since
1966, following a phased purchase of Audi AG's predecessor, Auto Union,
from Daimler-Benz. Volkswagen re-launched the Audi brand with the 1965
introduction of the Audi F103 series.
The company name is based on the Latin translation of the surname of the
founder, August Horch. "Horch", meaning "listen" in German, becomes "Audi" in
Latin. The four rings of the Audi logo each represent one of four car companies that
banded together to create Audi's predecessor company, Auto Union. Audi's slogan
is Vorsprung durch Technik, meaning "Advantage through Technology". However,
since 2007 Audi USA has used the slogan "Truth in Engineering". Audi is a member
of the "German Big 3" luxury automakers, along with BMW and Mercedes-Benz,
which are the three best-selling luxury automakers in the world.

20
1.3 COMPANY PROFILE
1.3.1 MALANKARA PLANTATIONS LTD. 100 Years of Excellence
The Company was registered on 22nd June 1910 under the
Travancore Joint stock Companies Act at a time when Joint Stock Companies were
very few in number, under the name Malankara Rubber & Produceco Ltd. It was the
first Indian owned RubberPlantation Company when Rubberplanting and cultivation
was a novelty. The founder and Joint Managing Director of the Company Mr. P John
had initially set up a successfulOil Mill in Alappuzha. He represented Alappuzha in
the Shree Moolam Praja Sabha and was elected unopposedto the Legislative council
of Travancore. He was also a member of the Cochin Port Trust, chairman of the
Alappuzha Chamber of commerce and Member of the Travancore Development
Committee (Travancore Dharama Pariposhana Committee). His enterprising spirit led
him to Rubber planting and cultivation. He procured rubber seeds from Sri Lanka
(Ceylon) with great difficulty and planted kaliyar Estate in thodapuza in Partnership
with his brothers in 1905. This Estate was sold to one of the British Plantation
Companies. Thereafter Malankara Estate was planted when this Company was floated
in 1910. Among the notable Directors of the Company was Mr. KC Mammen
Mappilai, Editor, Malayala Manorama, Kottayam, who was also its Company
secretary for the first 4 years and continued to be a director for 14 years. He helped to
guide the administration of the Company when very few knew the legal requirements
of Company Management and gave wide publicity in the Malayala Manorama about
the prospectsof Rubber Plantations to encourage people to invest in the shares of the
Company. The other Directors were Rev CP Philipose Kassessa, Manager of Syrian
Christian High School, Thiruvalla & Secretary to His Grace The Mathoma Syrian
Metropolitan, Mr. John Chandy, Superintendent, CMS Press, Kottayam, Mr. S
Ramaswamy Iyer, Bank of Madras, Alappuzha, Mr. S Parameswaran Pillai BA BL,

21
Arakkal House, Kadappra, Thiruvalla and Mr. KV Chacko BA LT, MD Seminary,
Kottayam.
At about the same time Mr. P John in Partnership with his brothers opened up
Karimkulam tea estate on the banks of the Periyar River in Elappara. Karimtharuvi
Tea Estate was started in partnership with Mr. GH Davey, Imperial Bank of India, on
the opposite bank of the Periyar River in 1915. Penshurst Estate, which was the first
tea Estate in south India and planted in 1875 was purchased by Mr. P Kurian John in
1943 and it was later purchased byKarimtharuvi Tea Estate Ltd in1953. Karimtharuvi
Tea Estate Ltd was merged with Malankara Plantation Ltd in 2002. Malankara Estate
and Karimtharuvi Estate were someof the very few Rubberand Tea Plantation owned
and opened by Indians at that time.
After the death of Mr. P John in 1927 his son and personal Assistant since 1919, Mr.
P Kurian John, Fellow of the Royal College of Arts, London, tookup the management
of the Company and was the managing Director till 1953. He served on the Board till
his death in 1962. Along with his elder brother Mr. WJ John, who was the
superintendent of Malankara Estate from 1923 to 1947, they ensured that replanting
activities continued without interruption during the great depression and 2nd World
War. This ensure the profitability of the Company for the future years. Mr. P Kurian
John was made the Honorary Permanent Controller to carry out the work of the
International rubber Regulation Agreement of 1934 and held this posttill 1942. This
International agreement aimed to regulate production of rubber to control declining
prices. The scheme worked satisfactorily and rubber price improved. The 2nd World
War led to a mad scramble for rubber for Military Purposes. Japan captured Malaysia
(Malaya) and the rubber supplies to the ‘Allied’ countries dried up. In 1942, the
Governor General of India appointed Mr. P Kurian John as the Rubber Production
Commissioner of India to administer the Indian Rubber Production and Marketing
Board, which post the relinquished in 1947.

22
The Company was under the managing agency of m/s John Sons’ Estate & Agencies
(P) Ltd from 1953. Mr. KC Thomas was appointed as the Managing Director in 1954
and continued to guide the Company till his death in 1991. Throughout his tenure the
Company paid attractive dividends and declared 3 out of 4 Bonus Issues made by the
Company.
1.3.2 Products of Malankara Plantation Ltd:
Rubber Products:
1. ISNR 3L EX SUPER
Superior quality latex crumb of High Technical Standard. Malankara Crumb is
considered to be the bestavailable compared to similar products available in the
Market (BIS Certified)
2. ISNR 5S
Excellent quality crumb rubber processedfrom fresh Field Coagulam. Malankara
ISNR 5S rated as the ultimate processed fromField Coagulam. (BIS certified)
3. CENEX(60% Centrifuged Latex)
High Standard Low VFA 60% Centrifuged Latex manufactured in our ISO Certified
Malankara RubberFactory. (BIS Certified)
Tea Products
1.Broken Pekoe ( BP )
2.Broken Orange Pekoe ( BOP )
3.Broken Orange Pekoe Fenings
4.Pekoe Dust ( PD )
5.Red Dust ( RD )
6.Super Red Dust ( SRD )
7.Super Fine Dust ( SFD )

23
1.3.3 MK MOTORS
M K Motors is a division of Malankara Plantation Ltd. It started its
operation in September 2013. MK Motors is one of the dealers for Tata motors in
Kerala having its head office, showroomand sateofthe art service center in Kottayam.
MK Motors is committed to customerdelight byoffering the highest quality in vehicle
dealership, sales and service.
1.3.4 Competitors
Indus motors
AVG Motors
Popular Motors
Kulathinkal Motors
1.3.5 Mission
To establish the TATA Brand in the territory.
Make Nano reachable to every ordinary person.
Build awareness to the Off Roading community that TATA 4x4 Vehicles are
capable.
1.3.6 Vision
Influencing home market with Indian products.
1.3.7 KEY STRENGTH AREA
Having a strong network presence in Kottayam, Thiruvalla, Chagnassery
and Pathanamthitta.
High quality service center with automatic car washing
Our strength lies in “Ethics Loyalty Dedication and Concentration.
Diversification of business.

24
1.3.8 ORGANISATIONAL STRUCTURE
Board of Directors
Headed by Managing Director
Head Office Sales
Service
General
Manager
Assistant
General
Manager
Assistant General
Manager
Accounts
Sales Manager
C R M
Service
Manager
Supervisor
Technicians
Sales
Executives
Customer
Relation
Manager
Front Office Back Office
Back OfficeFront Office

25
1.3.9 Objectives
 Enhancing the satisfactionlevel of customerbymeeting or exceeding their needs
and expectations onservice quality in dealership sales and service delivery and cost.
 Continuous improvement of performance and skills of employees through active
training programmes.
 Implementing at least one continual improvement project per quarter.
 To improve the responsiveness to address customer needs.
 Achieving enhanced Business targets by satisfying and retaining customers.
1.3.10 Dealership
The Company have the dealership of Tata Passenger car only.
1.3.11 CUSTOMER CARE
All operations are geared towards ensuring that customer satisfaction
is maximized. Continuous expansion of their network ensures that their customers
have convenient access to aMK Motor’s outlet. They pioneered the conceptofmobile
vans that provide service for customers at remote locations. Experienced courteous
and well trained staff means all our showrooms and service centers. The Company's
objective, always, is to ensure that all our interactions culminate in a memorable
experience. It is this emphasis on customer care that has helped them retain and
expand loyal complaint.

26
1.3.13 PRODUCT PROFILE
Bolt
The sportyhatchbackis here to capture the roads and hearts alike! The Bolt is
the perfect fusion of sporty design and thrilling performance. This ultimate hatch is
designed to make heads turn and engineered to set your pulse racing.
FEATURES
o First time ever* MULTI-DRIVE : SPORT | ECO | CITY
o Revotron 1.2 turbocharged MPFi petrol engine
o Generation next safety with 9th gen ABS by BOSCH™, cornerstability
control and dual airbags
o superior spaceand comfort
o Connect next touchscreen infotainment by Harman™
Zest
The stunning new Zest is here. Loaded with state-of-the-art features to help
you power through the week and be at ease through the weekend.
Powerful. Inspiring. Cutting-edge. The Zest isn't just a car. It's an extension of you.

27
FEATURES
 Bold and sculpted design
 Stylish dual tone interiors
 Body hugging rugby shoulder seats and best-in-class* interior space
 Exclusively designed 5" Touchscreeninfotainment by Harman™
 Revotron 1.2T MPFi turbocharged petrol engine with first-in-segment
multi-drive mode – Sport, Eco, City
Nano
The Tata Nano has created a completely new category and continues to
innovate in line with the evolution of the market. The awesome spirit of the Nano -
of living life on your own terms - is depicted through the colorful world of Nano and
the people in this world who share the brand's unique attitude - to do things bigger,
better, and differently.
FEATURES
 New AmphistreamTM Music System
 Two New Elegant Interior Trims
 Remote Keyless Entry
 Twin Glove-boxes
 9 Exciting colors
 India's Best Petrol Mileage 25kmpl*

28
Manza
The all New Tata Manza Club Class - An icon of contemporary luxury,
multitude of advanced features and epitome of elegance. It's built to earn status.
FEATURES
 TouchscreenMultimedia Navigation System
 Fully Automatic Climate Control
 Powerful 90PS Q-Jet Engine*
 Largest Cabin in its Class
 Infinity Contrast Roof
SafariStorme
A creature of the wild, the Tata Safari Storme is a beast built to be feared
and respected. A true explorer at heart, this powerful beast runs free, refusing to
show mercy to any terrain.
FEATURES
o 2.2L VariCOR engine
o 140PS @ 4000 rpm
o 320 Nm Torque @ 1700 rpm
o Turing Radius 5.4

29
Vista
Limited edition and designed to thrill, Tata Motors reveals the all new Vista
in a new avatar – the Tata Vista Tech. With a striking new blue chill color, the Vista
Tech comes equipped with a Drive Pro Console and refined 75PS Quadra jet diesel
engine. The Vista Tech is a perfect combination of power, technology, entertainment
and style.
FEATURES
 Refined Quadra jet Diesel Engine power of 75 PS@4000RPM
 New Drive Pro Console with an Advanced Driver Information System
 Touchscreenmultimedia system with satellite navigation
 New Blue chill colour
 ABS with EBD
Indica
With a refined 1.4L CR4 diesel engine, an incredible mileage of 25 kmpl*
and striking exteriors, it’s everything you would want in a car. It’s a whole new world
inside. Welcome to an all new experience with the new Tata Indica.

30
FEATURES
 Refined CR4 engine with best-in-class mileage of 25 kmpl*
 Duo Float suspension
 Spacious cabin with new shadow beige interiors
 Powerful music system with Bluetooth
 Electrically operated ORVM with side blinkers
Aria
Finesse and muscle is now available in 4X2. Designed to give you an
excellent driving experience on and off the road, the Tata Aria is equipped with
extensive safety features that provide you and your family with highest level of
protection.
FEATURES
 ABS with EBD
 Body over frame construction with hydroformed frame members
 Keyless entry with immobiliser with peri-metric alarm system

31
Sumo Gold
EXPERIENCE UNSTOPPABLE POWER: An all new roaring 3.0L CR4
engine, along with top notch features guaranteed to bring you more style and
comfort than ever before. It's the ultimate power statement - Tata Sumo Gold.
FEATURES
o Most Powerful & Technologically advanced BS4 3.0L CR4 engine
o High performance Clutch
o First in segment Dual AC
o First in segment Music system with USB & Bluetooth
Indigo
Presenting the All New Tata Indigo eCS, packed with all new features
and an all new attitude. With exteriors high on style, interiors full of elegance and
immense power under the hood, a never before sedan experience is here.
FEATURES
 New powertrain with F shift Gear box and refined CR4 engine
 New Duo Float Suspension for enhanced ride comfort

32
 New cabin with dual tone interior and anti-acoustic chamber
 New exteriors with diamond chrome grille and smoked fog lamps
 New age safety features with rear park assist and anti-lock braking system
(ABS).
Movus
With great features and stylish interiors, the new Tata Movus is a companion
that will always be by your side for every journey, no matter what road you choose.
FEATURES
o 2.2 L VARICOR Engine with 120 PS power and 250 Nm torque
o Modern CSC +SAC clutch
o Excellent fuel efficiency of 15.16 kmpl
o Seating Flexibility with 7,8,9 seater options
SafariDicor
Designed to be a cut above the rest, Tata Safari is for those who take the road
less travelled. Make your own path as the majestic car conquers all.
FEATURES
o 2.2 VTT Dicor Engine
o ABS with EBD
o 4X4 All Terrain Performance

33
CHAPTER II
LITERATURE REVIEW

34
Bennett (1995) defines consumer behavior as the dynamic interaction of affect and
cognition, behavior, and environmental events by which human beings conductthe
exchange aspects of their lives,”
Blackwell et al. (2001) define consumer behavior as a summation of acquisition,
consumption and disposalof products orservices.
The first step in consumer purchasing process is the need recognition or motivation,
where consumers realize that s/he has need for something. It reflects an inner state of
arousal that directs the consumer to engage in goal relevant behaviors, effortful
information processing and detailed decision making. Motivation is enhanced, when
consumers regard something as personally relevant, consistentwith their values, goals
and needs, risky and moderately inconsistent with their prior attitude (Hoyer, 2004).
When motivation is high, consumers are willing to do things which are closely related
to their goals, e.g. if one has aim to be buy clothes which can be fashionable as well
as give confidence to wear at work place and when such a style comes in front of her
then they immediately go for it. Highly motivated people pay more attention and think
about their goals, they evaluate the information critically relevant to it and try to
remember the information for later use. Consumers are motivated when they feel
processed information or things are personally relevant. Maslow grouped these
different consumers need in five major categories; (Hoyer, 2004).
Physiological (Need for food, water and sleep), Safety (Need for shelter, protection
and security Social (need for affection, friendship and acceptance), Egoistic (need for
prestige, success, accomplishment and self-esteem) and Self-actualization (need for
self-fulfillment and enriching experiences). In further detail needs can be categorized
as social, non-social, Functional, symbolic and Hedonic needs. Social needs are
extremely directed and related to other individuals. Social needs are fulfilled by the
presence or action of other people. Non-social needs are those in which achievement

35
is not based on other people. Only one self is related to usage of certain product and
services. Functional needs motivate the search for products that solve consumption
related problems. Symbolic needs affect how we perceive ourselves and how we are
perceived by others. Achievement, independence and self-control are symbolic needs
because they are connected with consumer's sense of self.
Consumers need for uniqueness is symbolic because it drives consumption decision
about how s/he expresses his/her own identity. Achievement, status, affiliation and
belonging are symbolic because they reflect consumers‟ social position or role.
Hedonic needs reflect consumer’s inherent desires for sensory pleasure. Sensory
simulation, cognitive simulation and novelty are non-social hedonic needs, while
needs for reinforcement are social hedonic needs (Hoyer, 2004).

36
CHAPTER III
RESEARCH METHODOLOGY

37
3.1 Research
Researchis a careful investigation orinquiry especially through search
for new facts in any branch of knowledge.
3.2 Research methodology
Research methodology is a way to systematically solve the research
problem. It must be understood as a science of studying how research is done
scientifically. In this we study the various steps that are generally adopted by a
researcher in studying his research problem along with the logic behind them. It is
necessary for the researcher to know not only the research methods or techniques but
also the methodology.
3.3 Statement of problem
The study on “Factors Affecting Customers buying Behavior” was on
conducted in MK Motors Kottayam. It studies the factors that affect the customers in
purchasing a car.
3.4 OBJECTIVES OF STUDY
PRIMARY OBJECTIVE
To identify the factors that influence customer’s buying behavior of
automobile products from M K MOTORS
SENCONDARY OBJECTIVE:
 To understand Tata car market in India.
 To know the buyers preference about Tata cars.
 To understand the changing behavior of the customers

38
3.5 SCOPE OF THE STUDY
The present study entitled, “A study factors affecting consumers
buying behavior at MK Motors” aims to find out the buying behavior of customer in
the company. The study will point out the factors that affect customers in purchasing
a car so that the management can take effective measures to change according to
customer’s needs. The studyreveals the opinion of the customers about the company.
3.6 SOURCES OF THE DATA
Primary data
Primary data refers to the first-hand information that an
investigator himself collects from the respondents. It’s direct and original in nature.
Questionnaires are the Primary sources ofdata collection. A questionnaire consisting
of a number of questions on a form was given to the employees concerned with a
request to answer the questions and returned.
In this method, I have mainly used multiple choice questions along with yes or no
questions and scheduling questions.
Secondary data
Secondary data is the information collected from those data which
have already been obtained by some other researcher/authors
 Books: - Research Methodology
 Websites: - www.wikipedia.com, www.malankaraplantation.com
 Previous project reports etc.

39
3.7 ResearchDesign
A research design is the arrangement of conditions for the collection
and analysis of the data in a manner that aims to combine relevance to the research
purpose with economy in procedure. “Descriptive Research Design is used for this
study.” A descriptive research is concerned with the detailed description of certain
functional variables and characteristics of a problem situation. This project describes
the factors that affect customers in buying behavior at MK Motors.
3.8 Population
The population for this study consisted of 5,000 customers who own
Tata products from M K Motors. The choice of the respondents being customers to
the company was based on the fact that they are the ones aware of the factors that
drive their purchasing behavior of the very brands that they own.
3.9 Sampling
Sampling is done to select a part of whole group of population,
which exhibits all the characteristics of the population and tracks representatives in
character in this research.
3.10 Selectionofsample
The sampling technique used for this study is “Convenience
Sampling”. Convenient slice of a population that is commonly referred to as a Sample.
In Convenience Sampling the researcher have the right to choosethe sampling on the
basis of his convenience. This method found to be more in use when the researcher is
confronted by the constraints like time and mobility.

40
3.11 Sample Design
Study area
A population is a group of individuals, objects, or items from which
samples are taken for measurement. All the customers of MK Motors Kottayam
branch are considered to be the universe of the study.
Sample Size
The number of sampling units selected from the population is called
the size of sample. The sample size used for collecting data is 50.
Sampling Unit
Sampling unit is the few units of population selected from it with the
objective of investing its properties. The study has been conducted in MK Motors
Kottayam.
Research Instrument
 Questionnaire
Period of study
The research period of the study has started from 8th
December 2014 to 8th January 2015 having 4 weeks of
Duration.
Tools Used
Method used for analyzing the data is percentage analysis.
Percentage of the respondents = No. of respondents *100
Total no. of the respondents

41
3.12 Limitations of the study
 The topic under study id vast and requires much information, but the
information available is very limited.
 Duration of the project is only 30 days which is not sufficient for detailed
study.
 Confidentiality matter restricts in depth study.
 Personalbias of the respondentand their busyschedule was a limiting factor
in the collection of data.
 Only 50 respondents were selected for the study due to time and other
constraints.
 Some of the customers had not co-operated in filling or answering the
questionnaire.

42
CHAPTER IV
DATA ANALYSIS AND
INTERPRETATION

43
4.1 DATA ANALYSIS & INTERPRETATION
Analysis of data is a process of inspecting, cleaning,
transforming, and modeling data with the goal of discovering useful information,
suggesting conclusions, and supporting decision-making. Data analysis has multiple
facets and approaches, encompassing diverse techniques under a variety of names, in
different business, science, and social science domains.
Data mining is a particular data analysis technique that focuses on modeling and
knowledge discovery for predictive rather than purely descriptive purposes. Business
intelligence covers data analysis that relies heavily on aggregation, focusing on
business information. In statistical applications, some people divide data analysis
into descriptive statistics, exploratory data analysis(EDA), and confirmatory data
analysis (CDA). EDA focuses on discovering new features in the data and CDA on
confirming or falsifying existing hypotheses. Predictive focuses on application of
statistical models for predictive forecasting or classification, while text
analytics applies statistical, linguistic, and structural techniques to extract and classify
information from textual sources, a species of unstructured data. All are varieties of
data analysis.
Data integration is a precursor to data analysis, and data analysis is closely linked
to data visualization and data dissemination. The term data analysis is sometimes used
as a synonym for data modeling.
Qualitative methods used for analyzing data is percentage analysis.

44
4.2 Percentagemethod
In this method the frequency of the various factors are tabulated
and the percentage for each value with respect to the total is find out. They are
presented pictorially by the way of graphs in order to have better understanding.
Percentage of respondents = No. of respondents *100
Total no. of respondents

45
4.1 Table showing gender wise classification
Source: Primary data
4.1 Chart showing gender wise classification
Interpretation:
 80% of the respondents are males
 20% of the respondent are females.
80
20
0
10
20
30
40
50
60
70
80
90
Male Female
Gender
Gender
Gender No. of the
respondents
Percentage
Male 40 80
Female 10 20
Total 50 100

46
4.2 Table showing age group of the respondents
4.2 Chart showing age group of the respondents
Interpretation:
 50% of the respondents come under 31 - 40 age category
 20% of the respondents comes under 41 -50
 20% of the respondents falls under age above 51
 10% of the respondents fall under 20 - 30 age group.
10
50
20
20
Age
Between 20 to 30 years Between 31 to 40 years Between 41 to 50 years 51 years and above
Age No. of the
respondents
Percentage
Between 20 to 30 5 10
Above 51 10 20
Total 50 100

47
4.3 Table showing types of Tata Cars owned by the respondents
Criteria No. of the
respondents
Percentage
Indica 16 32
Vista 9 18
Manza 10 20
Nano 8 16
Safari Storme 4 8
Aria 2 4
Zest 1 2
Total 50 100
4.3 Chart showing types of Tata Cars owned by the respondents
Interpretation:
 32% of the respondents own Indica car
 18% of the respondents owns vista
 20% of the respondents owns Manza
 16% of the respondents owns Nano
 8% of the respondents owns Safari Storme
 4% of the respondents owns aria
 2% of the respondents owns zest.
32
18
20
16
8
4
2
0 5 10 15 20 25 30 35
Indica
Vista
Manza
Nano
Safari Storme
Aria
Zest
Series 1
Series 1

48
4.4 Table showing the period of using this car brand.
Criteria No. of the
respondents
Percentage
Less than 1 year 5 10
1 to 5 years 30 60
6 to 9 years 10 20
10 years and above 5 10
Total 50 100
4.4 Chart showing the period of using this car brand
Interpretation:
 60% of the respondents are customers for 1 - 5 years
 20% of the respondents are customers for 6 - 9 years
 10% of the respondents are customers for 10 years and above
 10% of the respondents are customers for less than 1 years.
10
60
20
10
Period of Ownership
less than 1 year 1 to 5 years 6 to 9 years 10 years and above

49
4.5 Table showing the source of information in selecting the car.
4.5 Chart showing the source of information in selecting the car
Interpretation:
 40% of the respondents got information about the car from their
friends
 30% of the respondents got information from relatives
 20% of the respondents got information from advertisement
 10% of the respondents got information from social media.
20
10
30
40
0
5
10
15
20
25
30
35
40
45
Advertisment Social Media Relatives Friends
Sourceof information
Source of information
Criteria No. of the
respondents
Percentage
Advertisement 10 20
Social Media 5 10
Relatives 15 30
Friends 20 40
Total 50 100

50
4.6 Table showing reasons for preferring Tata automobile
4.6 Chart showing reasons for preferring Tata automobile
Interpretation:
70% of the respondents prefer Tata automobile for business purpose
20% of the respondents prefer Tata automobiles for good comfort
10% of the respondents prefer Tata automobile due to less cost.
0
70
20
5
Preferenceto this car
Social Status Business Purpose Good Comfort Less Cost
Criteria No. of the
respondents
Percentage
Social Status 0 0
Business Purpose 35 70
Good Comfort 10 20
Less Cost 5 10
Total 50 100

51
4.7 Table showing influence of price at the time of purchase
4.7 Chart showing influence of price at the time of purchase
Interpretation:
۩ 70% of the respondents is of the opinion that price is influential
۩ 20% of the respondents is of the opinion that price is most influential
۩ 10% of the respondents is in opinion that price is not influential at all.
70
20
10
0
10
20
30
40
50
60
70
80
Influential Most influential less influential
Influenceof price
Influence of price
Criteria No. of the
respondents
Percentage
Influential 35 70
Most influential 10 20
Not influential 5 10
Total 50 100

52
4.8 Table showing whether respondent consider quality of the car when purchasing from
MK Motor
4.8 Chart showing whether respondent consider quality of the car when purchasing from
MK Motor
Interpretation:
 80% of the respondents considerthe quality of car during the purchase
 20% of the respondents doesn’tconsider the quality of car during the
purchase.
80
20
Quality of car
Yes No
Criteria No. of the
respondents
Percentage
Yes 40 80
No 10 20
Total 50 100

53
4.9 Table showing, whether product image influence the attitude of customer in purchasing
from MK Motors
Criteria No. of the
respondents
Percentage
Yes 40 80
No 10 10
Total 50 100
4.9 Chart showing whether product image influence the attitude of customer in purchasing
from MK Motors
Interpretation:
۩ 80% of the respondents are influenced by the productimage
۩ 10% of the respondents are not influenced by the productimage.
80
10
ProductImage
Yes No

54
4.10 Table showing, whether level of income is a factor that influence a customer to buy from
MK Motors
Criteria No. of the
respondents
Percentage
Yes 35 70
No 15 30
Total 50 100
4.10 Chart showing, whether level of income is a factor that influence a customer to buy from
MK Motors
Interpretation:
 70% of the respondents considerlevel of income as an influential
factor in the buying behavior
 30% doesn’t considerthe level of income as a influential factor in
buying behavior.
70
30
0 10 20 30 40 50 60 70 80
Yes
No
Level of income that influence a customer to buy a car
Level of income that influence a customer to buy a car

55
4.11 Table showing the factors that customer would take into consideration while purchasing a
car
Criteria No. of the
respondents
Percentage
Price 5 10
Comfort 5 10
Spacious 10 20
Mileage 30 60
Total 50 100
4.11 Chart showing the factors that customer would take into consideration while purchasing a
car
Interpretation:
 60% of the respondents considermileage
 20% of the respondents considerspacious as a factor
 10% of the respondents considercomfort
 10% of the respondents considerprice of the automobile
10
10
2060
Factors Which Influnces a customer in purchasing a car
Price Comfort Spacious Mileage

56
4.12 Table showing Awareness among customers about the resale value
4.12 Chart showing Awareness among customers about the resale value
Interpretation:
 70% of respondents are aware of the resale value
 30% of the respondents are not aware about the resale value.
Criteria No. of the
respondents
Percentage
Yes 35 70
No 15 30
Total 50 100
70
30
Resale Value
Yes No

57
4.13 Table showing, whether resale value is considered as a factor at the time of purchase
decision
4.13 Chart showing whether resale value is considered as a factor at the time of purchase
decision
Interpretation:
 70% of the respondents considerresale value as a factor while taking
purchasing decisions.
 30% of the respondents doesn’t considers resale value as a factor.
70
30
0 10 20 30 40 50 60 70 80
Yes
No
Resale value of car
Resale value of car
Criteria No. of the
respondents
Percentage
Yes 35 70
No 15 30
Total 50 100

58
4.14 Table showing respondents plan to buy car in future
4.14 Chart showing respondents plan to buy car in future
Interpretation:
 50% of the respondents are planning to buy a car in future
 30% of the respondents are not planning to buy a car in future
 20% of the respondents cannot say anything about the purchase of car
in future
Criteria No. of the
respondents
Percentage
Yes 25 50
No 15 30
Cannot say 10 20
Total 50 100
50
30
20
Planning to buy car in future
Yes No Cannot Say

59
4.15 Table showing reasons for buying another car in future
Criteria No. of the respondents Percentage
Up gradation of existing
model
10 20
Fuel Efficiency 20 40
Safety features 10 20
Design 10 20
Total 50 100
4.15 Chart showing reasons for buying another car in future
Interpretation:
 40% of the respondents are planning to buy a car for fuel efficiency
 20% of the respondents are planning to buy a car for design
 20% for Safety features
 20% for up gradation of existing model.
20
40
20
20
Reasons for buying another car in future
Up gradation of existing model Fuel Efficiency Safety features Design

60
4.16 Table showing price perception of Tata automobiles
4.16 Chart showing price perception of Tata automobiles
Interpretations:
 50% of the respondents is of the opinion that brand is reasonably priced
 20% of the respondents is of the opinion that brand offers value for money
 20% of the respondents is of the opinion that brand is a good indicator of its
quality
 10% of the respondents is of the opinion that brand is highly priced
50
20
20
10
Price perception
Brand is reasonably priced Brand offers value for money
Brand is a good indicator of its quality Brand is highly priced
Price perception No. of the respondents Percentage
Brand is reasonably
priced
25 50
Brand offers value for
money
10 20
Brand is a good
indicator of its quality
10 20
Brand is highly priced 5 10
Total 50 100

61
4.17 Table showing whether brand provides wide range of color variants
Criteria No. of the
respondents
Percentage
Yes 35 70
No 15 30
Total 50 100
4.17 Chart showing whether brand provides wide range of color variants.
Interpretation:
 70% of the respondents agrees with brand providing sufficient color
variant
 30% of the respondents disagree with brand providing sufficient color
variant
70
30
0
10
20
30
40
50
60
70
80
Yes No
Color variant
Color variant

62
4.18 Table Showing people who is likely to influence the purchase decisions
4.18 Chart showing people who is likely to influence the purchase decisions.
Interpretation:
o 60% of the respondents are influenced by their friends
o 20% of the respondents are influenced by their family
o 10% of the respondents are influenced by relatives
o 10% of the respondents are influenced by others
Criteria No. of the
respondents
Percentage
Family 10 20
Relatives 5 10
Friends 30 60
Others 5 10
Total 50 100
20
10
60
10
0
10
20
30
40
50
60
70
Family Relatives Friends Other
Customer's Belief
Customer's Belief

63
4.20 Table showing opinion about MK Motors
Criteria No. of the respondents Percentage
Good Service 35 70
Good Customer care 10 20
Spare Parts are less in
cost
5 10
Total 50 100
4.20 Chart showing opinion about MK Motors
Interpretation:
 70% of the respondents is of the opinion that MK Motors provide good
service
 20% of the respondents is of the opinion that MK Motors provides good
customer care
 10% of the respondents is of the opinion that spare part, costless in MK
Motors.
70
20
10
Opinion About MK Motors
Good Service Good Customercare Spare parts are less in cost

64
CHAPTER V
FINDINGS, SUGGESTIONS AND
CONCLUSION

65
Findings
 About 32% of the customers own Indica cars
 Most of the respondents (60%) are using the car for 1 – 5 years.
 Majority of the respondents ( 40%) came to know about the company by friend’s
 Most of the respondents are from middle class or service class444
 Most of the respondents (70%) buy Tata car for business purposes
 Most of the respondents (60%) prefer Tata Indica car as it gives good mileage, (as
it is mostly used as taxi service).
 40% of the respondents are planning to buy a car after considering fuel efficiency
 50% of the respondents are planning to buy a car in future
 70% of the respondents says MK Motors provide good after sales service
 44% of the respondents strongly agree that brand provides sufficient color variant
according to customer preference.
 60% of the respondents agrees with brand provides good value for money
 80% ofthe respondents areinfluenced bythe productimage at the time of purchase
 46% ofthe respondents is of the opinion that price has an adverse effect onpurchase
decisions.
 70% of the respondents consider level of income as factor while taking purchase
decisions
 70% of the respondents consider resale value as a factor while taking purchasing
decisions.

66
Suggestions
 Company should give more emphasis on after sales services
 Company should train and develop young energetic sale executives.
 There should regular training programmes for all employees
 Promotional offers like free checkup, monsooncampaign etc. must be improved and
promoted
 The number of customer relationship executives must be increased, so that they will
get enough time to take care the customers
 Should bring less cost effective cars which meet customers’ expectations
 Should study customers’ needs in order to build good relationship.

67
Conclusion
The title of the study is “Factors affecting Customers Buying Behavior”.
This study was conducted to find out what are the factor that affect customer buying
behavior in purchasing a car. The factors which affect are price, color, specifications
good features, mileage etc. Most the people buy cars on the basis of good features
mileage etc.
The study was conducted in MK Motors Kottayam. The study was
conducted for one month. Through this study I came to know that customers prefer
Tata cars for business purposes. So as to increase sales, company must bring out fuel
efficient car which can be afforded by the customer.
Factors that affect customer are cultural factors, social factors, economic
factors etc. Customers sometimes are driven according to their factors when purchase
a car. Some buy car that is valued in the society. According to the study customers
prefer most fuel efficient car Most of the customers give more emphasis on design of
the automobile. So necessary steps should be taken by Tata Motors to improve the
design of the automobile. If the company builds relationship with the customers then
they will be loyal to the company. Company should provide free checkups and other
services so that the customer will think company is taking care of them.
Most of the customer says the brand has got good value for money. For
more customers company needs to increase its retail network in many major places.
There should be new innovation in vehicles which is affordable by all people.
Customer care must be increased to build good relation between them.

68
BIBLOGRAPHY

69
BOOKS
Research methodology: Vineeth K.M& Kumar Dlieep M.C
Marketing management: Kotler, P. (2008)
Consumer behavior: Hoyer, W. D. & Maclnnis, D. J. (2001)
Consumer Behavior: Buying, Having, and Being: Solomon, M. (2009),8th ed.,
WEBILOGRAPHY
www.scribd.com
www.wikipedia.com
www.malankaraplantation.com
www.google.com

70
APPENDIX

71
Questionnaire
Dear Respondent
I Melvin Monsy Joy student of Girideepam Institute of Advanced learning pursuing
bachelor’s degree in BBA. As part of the academic requirements, I am conducting a
research study on “Factors influencing consumer buying behavior of the automobile
products at the MK Motors. You have been chosen to take part in making me achieve
this objective. I therefore request you to go through the questionnaire and fill it for
research purpose. The information will be used purely for academic purposes and will
be treated with confidentiality.
NAME: _____________________________
Gender: Male [ ] Female [ ]
Mobile no: _______________
2. Please tick (√) on the age bracket which best describes the range in which your age
falls
Between 20 -30 Years [ ]
Between 31 - 40 Years [ ]
Between 41 - 50 Years [ ]
51Years and above [ ]
3. What is your car brand? _______________________________
4. Forhow long have you been using this car brand?
Less than 1 year [ ] 1 to 5 years [ ] 6 to 9 years [ ] 10 years and above [ ]
5. What were your sourceof information in selecting the car?
Advertisement [ ] Social media [ ] Relatives [ ] Fiends [ ]

72
6. Why did you prefer this car?
Social Status [ ] Business Purposes [ ] Good comfort[ ] Less cost[ ]
7. To what extent do you consider price as a factor when purchasing automobile
products ofyour choice.
Very great extent [ ] Great extent [ ] Moderate extent [ ] little extent [ ] Not at all [ ]
8. Do you considerthe quality of car while purchasing from M K Motors.
Yes [ ] No [ ]
9. Do productimage affect your attitude in repurchasing the automobile of Tata.
Yes [ ] No [ ]
10. Does your level of income influence your buying behavior in purchasing
automobile of Tata?
Yes [ ] No [ ]
11. What are the factors that you take into consideration while purchasing a car.
Price [ ] Comfort[ ] Spacious [ ] Mileage [ ]
12. Are you aware of the resale value of the vehicle?
Yes [ ] No [ ]
13. Do you consider resale value as a factor, when taking the purchase decision?
Yes [ ] No [ ]
14. Are you planning to buy an improved version of the same car that you are using in
future?
a) Yes b) No c) Cannot say
15. If Yes, state
why__________________________________________________________

73
 What is your level of agreement on the following statements on the effects of
price on consumers buying behavior of the automobile?
Use a scale of 1-5 where
1 strongly agree, 2 agree, 3 neutral, 4 disagree and 5 strongly disagree.
16. The increased price would not hinder my purchase intentions.
1 2 3 4 5
17. The brand provides good value for money.
1 2 3 4 5
18. The car brand has sufficient color choices that customer values the most.
1 2 3 4 5
19. Customer always believe in what their friends, relative, prefer most.
1 2 3 4 5
20. In your opinion, what are the major factors that you notice with M K Motors, which
can make a personto buy a car from M K Motors.
_________________________________________________________________

Factors Affecting Customer Buying Behavior

More Related Content

What's hot

Viewers also liked

Similar to Factors Affecting Customer Buying Behavior

Recently uploaded

Factors Affecting Customer Buying Behavior