A RESEARCH PROJECT REPORT ON

“FACTORS INFLUENCING PURCHASE DECISION OF

CONSUMERS ON HATCHBACK CARS”

A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF
BANGALORE UNIVERSITY
Submitted by
Anil.R
04XQCM6002

Under the guidance of

Dr.N.S.Viswanath
Senior Professor MPBIM

M.P.Birla Institute of Management

M P BIRLA INSTITUTE OF MANAGEMENT

(Associate Bharatiya Vidya Bhavan)
BANGALORE
2006

1
 DECLARATION

I hereby declare that this dissertation entitled “FACTORS

INFLUENCING PURCHASE DECISION OF CONSUMERS ON
HATCHBACK CARS" is an offshoot of my own research work carried
out under the guidance and supervision of Dr.N.S.Viswanath, Senior
Professor, MPBIM, Bangalore.
I also declare that this dissertation has not been submitted to any
other University/Institution for the award of any Degree or such like
equivalent.

Place : Bangalore
Date:
(Anil.R)

2
 CERTIFICATE

I hereby certify that this dissertation entitled

“FACTORS INFLUENCING PURCHASE DECISION OF
CONSUMERS ON HATCHBACK CARS" is the result of research
work carried out by Anil.R under the guidance of Dr N.S.Viswanath,
Senior Professor, M P Birla Institute of Management, Bangalore.

Place: Bangalore (Dr. N.S. Malavalli)

Date: Principal

3
 CERTIFICATE

I hereby certify that this dissertation entitled

“FACTORS INFLUENCING PURCHASE DECISION OF
CONSUMERS ON HATCHBACK CARS” is an offshoot of the
research work carried out by Anil.R. Under my guidance and
supervision.

Place: Bangalore (Dr N.S.Viswanath)

Date: (Internal Guide)

4
 Acknowledgement

I wish to express my thankfulness to Dr.N.S.Viswanath , Senior

Professor, M.P. Birla Institute of Management, Bangalore who was
instrumental in guiding me to complete this research work.

Further, special thanks to my family and certain friends for all their
understanding and support.

Yours truly,

Anil.R

5
 PAGE
SL No. CONTENTS #
Declaration, Certificates,
1 Acknowledgements
2 Executive Summary 1
3 Introduction To The History Of Cars 3
4 Research Methodology 11

5 Literature Survey 13
6 Conceptual Framework 16
7 Significance Of Purchase Behavior 17
8 Data Analysis and Inferences 25
9 Conclusion 52
10 Annexure 53
11 Bibliography 67

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EXECUTIVE SUMMARY

Being a ‘Motor enthusiast’ is one of the reasons, rather, the chief one for me to
take up this research work. Titled ‘Factors Influencing Purchase Decision Of
Consumers On Hatchback cars’. This report contains the consummate details of
the Indian Hatchback market in conjunction with what makes a consumer buy a
hatchback. The details are disclosed elsewhere in this report.

A sneak peak into the Indian Car Market reveals that, the Indian car market,
which grew at a frenetic 20 per cent last year, is likely to see even more
excitement this year, judging by the new launches announced by nearly all
automobile companies. Toyota Kirloskar, Honda, Maruti and Skoda are all set to
launch production models, while French car maker Renault is making an
unobtrusive entry.

The major difference about vehicles introduced into the Indian market in 2004
against previous years was that carmakers ventured into a new segment with the
launch of Ford Fusion and Hyundai Getz, both innovative products positioned
between the compact 'B' and mid-range 'C' segments. Before this, new car
launches usually tended to stay within the safe confines of 'B' segment compact
cars, 'C 'segment three-box passenger sedans or MUVs.

The objectives of my research titled Factors Influencing Purchase Decision

of Consumers on Hatchback cars are:
 To identify the ‘Hot Buttons’ in purchase decisions?
 To make apt recommendations to enable the customers to make a right
purchase decision.
 To sketch a road map for implementing recommendations.

The evident factors are:

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1. TECHNOLOGY
2. SERVICE
3. DIMENSIONS
4. ACCESSORIES
5. PERFORMANCE AND MAINTENANCE

History of cars

8
It was circa 1900 when the first car came into India. In the next few years three
automobiles were imported into the country, and within 10 years of the first car,
there were several thousand vehicles, driven by the many Maharajas, Princes,
Industrialists and Philanthropists in the country. Anticipating the need for cars in
India, General Motors set up, as early as in 1927, and their own "assembly" in
Mumbai. Within 10 years General Motors India Ltd. (as they were known then
too) could chum out as many as 11,000 cars and trucks - Buicks, Chevrolets and
Vauxhalls - per year. Today, more than 75 years later, India boasts of a sizeable
collection of early and vintage cars. The largest collection of Vintage cars in the
world is in India, owned by l\.1r.Pranlal Bhogilal. The Vintage and Classic Car
Club of India was founded by Mr. Pranlal Bhogilal with the objective of preserving
this rich heritage of cars in the country. All owners of Vintage & Classic cars are
eligible to become members. The Club helps members in restoration of their
Vehicles and in sourcing spares. Today the VCCCI has 158 members. With Mr.
Pranlal Bhogilal as the President and Mr. Nitin Dossa as the Hon. Secretary.

The YCCCI is registered under Sec.25 of the Indian Companies Act & is affiliated
to FlVA (Federation International Vehicles Ancients) - which is- the international
body for vintage. The birth of the car as we know it today occurred over a period
of years. It was only in 1885 that the first real car rolled down on to the streets.
The earlier attempts, though successful, were steam-powered.
Nicolas Cugnot built the first self-propelled car in 1769, which could attain speeds
of up to 6 kms/hour. In 1771 he again designed another steam-driven engine,
which ran so fast that it rammed into a wall, recording the world's first accident. In
1807 Francois Isaac de Rivaz designed the first internal combustion engine. He
developed the world's first vehicle to run on such an engine, one that used a
mixture of hydrogen and oxygen to generate energy, subsequently used this.
This spawned the birth of a number of designs based on the internal combustion
engine in the early nineteenth century with little or no degree of commercial
success. In 1860 thereafter, Jean Joseph Etienne Lenoir built the first successful
two-stroke gas driven engine. In 1862 he again built an experimental vehicle

9
driven by his gas-engine, which - ran at a speed of 3 kms/hour. These cars
became popular and by 1865 could be frequently espied on the roads.

The next major leap forward occurred in 1885 when the four-stroke engine was
devised. Gottileb Daimler and Nicolas Otto worked together on the mission till
they fell apart. Daimler created his own engines, which he used both for cars and
for the first four-wheel horseless carriage. In the meanwhile, unknown to them,
Karl Benz, was in the process of creating his own advanced tri-cycle, which
proved to be the first true car.
This car first saw the light of the day in 1886.The season of experiments
continued across the seas in the United States where Henry Ford began work on
a horseless carriage in 1890. He went several steps forward and in 1896,
completed his first car, the Quadricycle in 1896. This was an automobile powered
by a two-cylinder gasoline engine.
The Ford Motor Company was launched in 1903 and in 1908 he catapulted his
vehicle, Model T Ford to the pinnacle of fame. Continuing with his innovations, he
produced this model on a moving assembly line, thus introducing the modern
mass production techniques of the automobile industry.

The modern car therefore comes from a long list of venerated ancestors, and its
lineage will, hopefully grow longer as we progress! With the invention of the
wheel in 4000 BC, man's journey on the road of mechanized transport had begun.
Since then he continually sought to devise an automated, labor saving machine
to replace the horse. Innumerable attempts reached conclusion in the early
1760s with the building of the first steam driven tractor by a French Captain,
Nicolas Jacob Cugnot. It was however left to Karl Benz and Gottlieb Daimler to
produce the first vehicles powered by the internal combustion engine in 1885. It
was then that the petrol engine was introduced, which made the car a practical
and safe proposition. The cars in this period were more like the cars on our roads
today. With cars came the era of speed. The first ever land-speed record was
established about 100 years back, in 1898. Count Gaston de Chasseloup-Laubat

10
of France drove an electric car (in Acheres near Paris) at a speed of 39.24 miles
per hour. This flagged off the era of 'wheels racing', which lasted till 1964, after
which jet and rocket -propelled vehicles were allowed. Then onwards, it has been
one big journey...on the roads. Man had not yet realized his dream of the
automobile. Just as today man may strive to achieve time travel, our ancestors of
this period longed to develop a method of land travel that was independent
human or animal power. All attempts at this time failed. How then the gasoline
car was finally created? 1t was certainly not the result the genius single person,
but rather the accumulated. Effort and know-how of a number of people who
worked to achieve the long-awaited breakthrough. The pioneering age of
automobiles played a vital role in building the foundation of automotive
technology. Henry Ford, born July 30, 1863, was the first of William and Mary
Ford's six children. He grew up on a prosperous family farm in what is today
Dearborn, Michigan. Henry enjoyed a childhood typical of the rural nineteenth
century, spending days in a one room school and doing farm chores. At an early
age, he showed an interest in mechanical things and a dislike for farm work. In
1879, sixteen-year-old Ford left home for the nearby city of Detroit to work as an
apprentice machinist, although he did occasionally return to help on the farm. He
remained an apprentice for three years and then returned to Dearborn. During
the next few years, Henry divided his time between operating and repairing
steam engines, finding occasional work in a Detroit factory, and over-hauling his
father's farm implements, as well as lending a reluctant hand with other farm
work. Upon his marriage to Clara Bryant in 1888, Henry supported himself and
his wife by running a sawmill.

In 1891, Ford became an engineer with the Edison Illuminating Company in

Detroit. This event signified a conscious decision on Ford's part to dedicate his
life to industrial pursuits. His promotion to Chief Engineer in 1893 gave him
enough time and money to devote attention to his personal experiments on
internal combustion engines. These experiments culminated in 1896 with the
completion of his own self-propelled vehicle-the Quadricycle. The Quadricycle

11
had four wire wheels that looked like heavy bicycle wheels, was steered with a
tiller like a boat, and had only two forward speeds with no reverse. Although Ford
was not the first to build a self-propelled vehicle with a gasoline engine, he was,
however, one of several automotive pioneers who helped this country become a
nation of motorists. After two unsuccessful attempts to establish a company to
manufacture automobiles, the Ford Motor Company was incorporated in 1903
with Henry Ford as vice-president and chief engineer. The infant company
produced only a few cars a day at the Ford factory on Mack Avenue in Detroit.
Groups of two or three men worked on each car from components made to order
by other companies. Henry Ford realized his dream of producing an automobile
that was reasonably priced, reliable, and efficient with the introduction of the
Model T in 1908. This vehicle initiated a new era in personal transportation. It
was easy to operate, maintain, and handle on rough roads, immediately
becoming a huge success. By 1918, half of all cars in America were Model Ts.
To meet the growing demand for the Model T, the company opened a large
factory at Highland Park, Michigan, in 1910. Here, Henry Ford combined
precision manufacturing, standardized and interchangeable parts, a division of
labor, and, in 1913, a continuous moving assembly line. Workers remained in
place, adding one component to each automobile as it moved past them on the
line. Delivery of parts by conveyor belt to the workers was carefully timed to keep
the assembly line moving smoothly and efficiently. The introduction of the moving
assembly line revolutionized automobile production by significantly reducing
assembly time per vehicle, thus lowering costs. Ford's production of Model Ts
made his company the largest automobile manufacturer in the world.

The History of the Automobile: Henry Ford and his Model T

12
The Model T -A car that changed America. Henry Ford had planned a revolution,
but the end result even exceeded his expectations. The first Model T was
introduced in showrooms in late 1908. At that time automobiles were considered
play toys for the rich. After all, the Oldsmobile cost $2,750.00 and the average
worker only earned around $500.00 per year. Henry being a farm boy and
wanting less affluent people to own cars had introduced the Model N in 1906 for
a cost of only $600.00. He sold 8243 in a year. Despite the great sales, Ford felt
the Model N was too conventional. Thus, in 1907, Ford set up shop in a small
factory in Detroit. He told Charles Sorenson and Joseph Galamb to design a new
car. The car that eventually rolled out was the first Model T. The 1's compact
body was tall, narrow, and sat high off the road. The Mode] T's road clearance,
lightweight, and tenacious engine made it virtually unstoppable on rural roads.
However, things weren't perfect on the Model T. Too little choke or throttle and
the engine wouldn't start. Too much choke and it would flood.
The Model T wasn't the least expensive car on the market, but it was the most
famous even before its official debut. By mid 1909, Ford had to tell dealers to
send no more orders. It would be all the company could do to build the 18,257
cars that year. Six colors were offered, red, black, and green. Due to heavy
demand for the Model T, production had to be increased. Ford unhappy with the
traditional assembly line, created a faster and more economical line. The new
method allowed one unskilled worker to replace four or five skilled assemblers.
By 1913, it took just 93 minutes for a Model The Model T was changed many
times over the next few years, and the price continually lowered to keep up with
competition. During the Great War, sales of the Model T had fallen and war
material production too its place. But at wars end, it quickly became a seller's
market with more than three quarters of a million Model 1's sold in 1919.
Throughout the early 20's production continued to increase. But by 1926,
competition with other car makers reduced the Model 1's popularity and in 1927
Ford announced the end of the model T Ford records show a total of 15,007,033
Model 1's had been built. Henry Ford and his Model T single-handedly changed
the automobile era. Some call the Model T - The Car that Changed A Nation.

13
This was only a small part of the history of cars. Cars share a long and
passionate relationship with the human race. Marketing concept in business
mainly focuses on identifying the need of customers and satisfying their needs
through designing the offerings. Marketing concepts have given rise to better
living standards and conditions in the society. If the consumer has the will and
the power to purchase, there is no hesitation on their part to satisfy their need.
Traveling from one place to another is one of the most essential aspects of the
urban society. With rapid urbanization and industrialization a man has to travel
from his residence to his place of work frequently in a day. Since he has to cover
a large distance he could either make use of public transportation provided to
him by the government or purchase a two or four wheeler for his own personal
conveyance. A four-wheeler offers not only a conveyance made out, but also
many more advantages compared to other conveyances. But the cost is
prohibitive to the common man. Hence, a man who buys a four-wheeler will
discriminate against a man common man mainly because of the higher price he
pays for the car. This sets him from the common man in the social strata. He now
becomes an affluent man with surplus or high disposable income. From the last 4
decades after independence less than 4% of India's population were estimated to
be able to afford a four-wheeler for their traveling needs. The car market then
focused mainly on Hindustan Motors, Ambassador and the Premier automobiles
fiat. During the late 70's and early 80's India witnessed the introduction of Maruthi
cars in collaboration with Suzuki Motors, Japan offering a variety of cars in the
differentiated customer segment of the market. Around the same time there was
an economic upswing in the country. Public conveyance had become tedious,
uncomfortable and untimely. Hence, the people looked for other means of
transportation. Many of them opted for the two-wheelers. This led to the instant
success of Maruthi udyog; their sales reached overwhelming heights. There were
many foreign and Indian players who had entered into the market like-Daewoo
Motors with Cielo,Matiz, Benz with Tata, Escort with Ford, Opel with Astra, Corsa,
Fiat with UNO, Sienna, Palio, Mitsubishi with Lancer, Hyundai with Santro , Getz
etc. With so many cars in the market it is no doubt every manufacturer will be

14
concentrating on acquiring some market share so they can survive in the market.
The manufacturers who satisfy the needs of the consumers can survive in the
market; hence study of consumer behavior of four-wheelers will provide sufficient
input in designing the different strategies for the companies. This project aims at
studying the consumer behavior of a four-wheeler owner, their attitudes, brand
perceptions, satisfaction levels buying habits and finally the value they have
received in exchange for the money they have paid forms the core of this study.

CONSUMER MARKETS: INFLUENCES ON CONSUMER

Top managers at Ferrari spend a great deal of time thinking about their
customers. They want to know who their customers are, what they think and how
they feel, and why they buy a Ferrari rather than a jaguar, a Porsche or a
Mercedes. Even Ferrari owners don't know what motivates their buying.
A car like Ferrari appeals to a very narrow segment of financially successful
people- achievers who set high goals and work doggedly to achieve them. They
expect no less from their hobbies, clothes they wear, restaurants they dine at or
the cars they drive. These achievers see themselves not as a regular part of the
larger world, but as exceptions. They buy a Ferrari because the car mirrors their
self-image. Many of us buy what Ferrari executives call utility vehicles "cars to be
used: to go to work, to go shopping etc.” We base buying decision on facts like
price, size function, fuel economy and other practical considerations. But a car
like the Ferrari is definitely not a utility vehicle. Ferrari buyers are not ' moved by
facts but by feelings. To most Ferrari owners a car is more than mere
transportation. It’s like a piece of. Clothing, it's a very personal
Relationship, one that has to do with the way the car sounds, the way it vibrates,
the way it feels. Surprisingly, many Ferrari owners are not car enthusiasts; they
are not interested in racing or learning how to drive a high performance car. They
simply like the way the car makes them feel or what the car tells others about
their achievements, lifestyles and stations in life. A Ferrari costs a lot of money,
but price is not much of an issue with most

15
Buyers' .The company deals often with people who constitute of the richer class.
To many Ferrari owners the car is a possession. Infact Ferrari's competition
comes not just from other cars, but also from such things as sailboats, summer
homes and airplanes. This chapter and the next explore the dynamics of
consumer behavior and consumer market. The consumer market consists of all
the individual requirements, which buy or acquire goods for personal
consumption. The American consumer market consists of about 250 million
people who consume more than $3 million worth of goods and services i.e. more
than $12,000 worth for every man, woman and child. Each year this market
grows by several million people and more than $100 billion making it one of the
most attractive consumer markets in the world. American consumers vary
tremendously in age, income, educational level and they buy an incredible variety
of goods and services. How consumers make choices among these products
embraces a fascinating array of personal, cultural and social patterns.

Problem Question:

16
  What is the broad spectrum buying behavior for
Hatchback purchases?

The problem has been crystallized into the research objectives

Research Objectives:
 To identify the normative behavior of the customers’ ‘Brand
Choice’
 To identify the ‘Hot Buttons’ in purchase decisions?
 To make apt recommendations to enable the customers to
make a right brand choice.
 To sketch a road map for implementing recommendations.

Research design:
The proposed research is customer specific and our investigation is
an analytical exercise. The analysis will be done through car owners
and suspects through a structured questionnaire.The Stratified
random sampling method is used for this exercise. The data
generated will be exposed to statistical treatments through the
application of relevant tools (Which depends on the distribution of the
sample data) and inferences will be drawn accordingly.

UNIVERSE OF STUDY

17
This Research will stay confined to Bangalore.

AREA OF STUDY
Consumers Purchase Decision on hatchback cars.

PARAMETERS:
The research task will require the car owners and also the
prospective buyers to be its target group.
They will be selected on the parameters of the cars they/they want to
own. This research will stay confined to Bangalore

Research limitations
 The basic barrier will be that the study is confined to Bangalore.
 No statistical analysis is done

Literature survey

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In nexus to my project on Hatchbacks, there is this piece of research work, which
explains the reason why I took up this research. I go on to comment on this
article. For many Indians owning a car was just a dream till the Maruti 800 came
along in the mid 1980s and shook the industry out of its stupor. The fifteen-odd
years since then have seen a virtual car revolution in the country; both the
number of brands available and the number of cars on the road have increased
in geometric progression. Today, almost every major international car
manufacturer is present in the country. But what is it that makes an increasing
number of Indians decide to buy a car, despite having, in many instances, to
borrow substantial sums of money for this? How do potential car buyers go about
the task of buying a car? What are their sources of information on the various
brands of cars in the market? How do they actually decide on a particular car
brand or model? Does advertising influence their choice of brand? Where do they
find the money to buy a car? Questions such as these abound. To provide an
answer to these questions, Business Line commissioned Project Beatle, a
Business Line-Indica Research survey, to decipher the mind of the Indian car
buyer. The findings of the study are the basis of this issue of Urban Pulse. The
study drives home the point that branding is here to stay. This is especially true
of a category such as cars, where it is often difficult to distinguish between
competing models on purely technical or functional parameters. The brand thus
becomes the most meaningful differentiator and a ‘safe’ choice. And while
functional factors do trigger the decision to purchase car, the wheels are most
often set in motion by emotional need-based factors. The study found that the
more rational reasons for buying a car are frequently sparked off by the
psychological benefits that owning a car bring. Emotions also work throughout
the purchase process, right down to the choice of the brand. A slight variation of
Maslow’s hierarchy of needs operates in this category, with three levels instead
of the conventional four. At the bottom of the pyramid is the first-time buyer, for
whom a car conveys a sense of belonging. For those at this level factors such as
family and peer pressure and the need to upgrade from a two-wheeler exert a
great deal of influence. Also working on the minds of those at this stage of the

19
hierarchy of needs is the craving to own a car. And once this craving has been
satisfied the result is a feeling of belonging, achievement and confidence. At the
next level is the desire for a car as a status symbol. Here, ownership of a car is a
reflection of who you are. At this level, choice of a car is influenced by factors
such as performance, quality and after-sales service. In addition to that is the
need to move up the social ladder and to be seen to be doing so. A car ceases to
be merely a mode of transport, but also becomes a message to the world. So
aspects such as luxury and comfort matter to those at this level. And at the top of
the pyramid is the desire for self expression through the car one owns. A person
at this level is more likely to be driving a particular car because he feels it’s an
expression of his personality. Thus a wealthy person could drive a jeep because
he believes that it is a reflection of his zest for the road less travelled. A thought-
provoking point thrown up by the survey is the view that advertising does not
have any impact on the choice of a particular brand by the prospective buyer.
While a fair proportion of the respondents declared that they did take a dekko at
car ads, only a very small number said that they believe the information in these
ads. Also a cause for thought is the sentiment expressed by a good number of
the respondents that advertising is really not needed in a category such as cars.
The study also had bad news for all those Web sites on cars. Only a very
small proportion of the respondents used this medium to gather information prior
to purchase, and still fewer actually trust the information they got off the Net. And
for financing their purchase most of the respondents opted to use multiple
sources, with some respondents going in for as many as four sources. Personal
savings were the primary source for most buyers, followed by loans from private
banks and public sector banks. With more car brands set to enter the country,
and existing players planning to launch new models, the options available to the
prospective buyer are going to increase. However, taking a decision on which
model to buy is also going to get more challenging. For the Indian car buyer it’s
perhaps time to get more market savvy.
The study found that both rational and emotional factors trigger the decision to
buy a car and also operate throughout the purchase process

20
A point thrown up by the study is that ads do not have any perceptible impact on
the choice of a specific brand by the prospective buyer.

CONCEPTUAL FRAMEWORK:

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As a result of the spectacular growth of car markets over the past ten
years, the marketing literature has recently seen substantial interest
in the study of prestige brands. Yet, little is known about how to best
market and monitor car brands. As a general rule, Hatchbacks have
been used as an example of extreme-end high-involvement decision
making. The assumption is that HATCHBACKS are nowadays
frequently purchased, require a higher level of interest and
knowledge, and strongly relate to the person self-concept. Their
framework reasonably assumes that buying cars are high-
involvement products, and that transformational brand choices (i.e.,
sensory gratification, intellectual stimulation, and particularly social
approval) are the primary factors in selecting a Hatchback. The
involvement model is useful to distinguish Hatchbacks from other
models (Saloons, Sedans, SUV) it does significantly differentiate the
level of prestige.

Significance of Purchase behavior

22
PERSONAL CHARACTERISTICS AFFECTING CONSUMER
BEHAVIOR
Consumer purchases are strongly influenced by cultural, social, personal and
psychological characteristics. Although the marketer cannot control most factors,
they must be taken into account. When choosing products and services,
consumers often are influenced by advice from other people. An ad agency
executive encapsulates the power
and importance of personal influence in the following comment: "Today, 80
percent of the buying decisions are influenced by someone's direct
recommendation. This chapter deals with the influence that friends, neighbors,
acquaintances, co-workers, and others have on the individual's consumption
behavior. It examines the nature and dynamics. We illustrate these
characteristics for the case of a hypothetical consumer named Jennifer smith.
Jennifer smith is a married college graduate who works as a brand manager in a
leading consumer packaged-goods company. She wants to find a new leisure
time activity that will provide contrasts to her working day. She is considering
buying a camera to take up photography. Many characteristics in her background
will affect the way she evaluates cameras and chooses a brand. The remainder
of the chapter examines the personal characteristics that affect a consumer's
behavior.

CULTURAL FACTORS:

23
Cultural factors exert the broadest and deepest influence on consumer behavior.
The marketer needs to understand the roles played by the buyer's culture,
subculture and social class.

CULTURE:
Culture is the most basic cause of a person's wants and behavior. Human
behavior is largely learned. Growing up in a society, a child learns basic values,
perceptions, wants and behaviors from the family and other important institutions.
An American child normally learns or is exposed to the following values,
achievement and success, activity and involvement, efficiency and practicality,
progress, material comfort, individualism,
Freedom, external comfort, humanitarianism, youthfulness and fitness. Jennifer
smith's wanting a camera is a result of being raised in a modern society. Jennifer
knows what camera's are, knows how to read instructions and her society has
accepted the idea of women photographers. In another culture - say a primitive
tribe in central Australia a camera will simply be a curiosity. Marketers are always
trying to spot cultural shifts in order to imagine new products that might be
wanted. For example, the cultural shift towards greater concern about health and
fitness has created a huge industry for exercise equipment, lighter and more
dietary foods. The shift towards informality has resulted in more demand for
casual clothing, simpler home furnishings and lighter entertainment. And the
increased desire for leisure time has resulted in more demand for convenience
products and services such as microwave ovens and fast food. More than 6,500
catalogues Companies range in from giant retailers like Sears and Spiegel to
specialty goods retailers let L.L Bean, sharper image, Royal silk and Lands' End -
bombarded American households with 8.5 billion catalogues each year.

SUBCULTURE:

24
Each culture contains smaller subcultures or groups of people with shared value
systems based on common life experiences and situations. Nationality groups of
people such as Irish, Polish, Italians, and Hispanics are found within larger
communities and have distinct ethnic tastes and interests. Religious groups such
as the Catholics, Mormons, Presbyterians, and Jews are subcultures with
preferences and taboos. Racial groups such as the blacks and Asians have
distinct cultures styles and attitudes. Geographical areas such as the South
California and New England are distinct subcultures with characteristics lifestyles.
Many of these subcultures make up important market segments and marketers
often design products and marketing programs tailored to the needs if these
segments. Jennifer Smith's interests in various goods thus are influenced by her
Nationality, religion, race and geographical background. These factors will affect
her food preferences, clothing choices, recreation activities and career goals.
Subcultures attach different meanings to picture taking and this could affect not
only Jennifer's interest in cameras but in the brand she buys.

SOCIAL CLASS:
Almost every society has some form of social class structure. Social classes are
relatively permanent and ordered divisions in a society whose members share
similar values, interests and behavior. Social scientists have identified the seven
American social classes.
Social class is not determined by a single factor such as income but is measured
as a combination of occupation, income, education, wealth and other variables..
In some social systems, members of different classes are reared for certain roles
and cannot change their social positions. But in the United States, the lines
between social classes are not fixed and rigid; people can move to higher social
classes or drop into a lower one. Marketers are interested in social class
because people within a given social class tend to
Exhibit similar behavior, including buying behavior. Social classes show distinct
product and brand preferences in such areas as clothing, home furnishing,

25
leisure activity, and automobiles. Jennifer smith's social class may affect her
camera decision. She may have - come from a higher social background. In this
case, her family probably owned an
Expensive camera and may have dabbled on in photography. The fact that she
thinks about "going professional" is also in line with a higher social class
background.

SOCIAL FACTORS:
A consumer's is also influenced by social factors, such as the consumer's small
groups, family, social roles and status. Because these social factors can strongly
affect consumer responses, companies must take them into account when
designing their marketing strategies.

GROUPS:
Many small groups influence a person's behavior. Groups that have a direct
influence and to which a person belongs are called membership groups. Some
are primary groups with whom there is regular but informal interaction, such as
family, friends, neighbors, and co-workers. Some are secondary groups, which
are more formal and have less regular interaction. They include organizations
such as religious groups professional
Associations and trade unions. Reference groups are groups that serve as direct
(face-to-face) or indirect points of comparison or reference in the forming of a
person's attitudes or behavior. Reference groups to which they do not belong
often influence people. For example, an aspirational group is one to which the
individual wishes to belong, as a teenage football player who wishes to play for
the Dallas Cowboys someday. He identifies with this group although there is no
face-to- face contact. Marketers try to identify the reference groups of their target
markets. Reference groups influence a person in three ways. They expose the

26
person to new behaviors and lifestyles. They influence the person's attitudes and
self-concept because he or she wants to "fit in". Pressure is created which
eventually affects the person's product and brand choices. The importance of
group influence varies across products and brands, but it tends to be strongest
for conspicuous purchase. A product or brand can be conspicuous for one of two
reasons. Firstly, it may be noticeable because the buyer is one of few people
who own it - luxuries are more conspicuous than necessities because fewer
people own the luxuries. Secondly, a brand can be conspicuous because it is
consumed in public where others can see it. It shows how group influences might
affect product and brand choices for four types of products public luxuries, public
necessities, and private necessities. A person considering the purchase of a
public luxury such as a sailboat will be strongly influenced by others. Many
people will notice the sailboat because few own one. They will notice the brand
because the boat is used in public. Both the product and the brand will be
conspicuous, and the opinions of others will strongly influence decisions about
whether to own a boat and
what brand to buy. At the other extreme group's influences do not affect
decisions for personal necessities because neither the product nor the brand will
be noticed by others.

OPINION LEADERS are people within a reference group who, because of

special skills, knowledge, personality or other characteristics, exert influence on
others. At one time, sellers thought that opinion leaders were primarily
community social leaders, who the mass market imitated because of "snob
appeal". But opinion leaders are found in all strata of society, and one person
may be an opinion leader in certain product areas and an opinion follower in
others. Marketers try to identify the personal characteristics of opinion leaders for
their products, determine what media they use, and direct messages at them. If
Jennifer smith buys a camera, both the product and the brand will be visible to
others she respects, and her decision to buy the camera and her brand choice

27
may be strongly influenced by some of her groups. Friends who belong to a
photography club may influence her to buy a good camera.

FAMILY:
Family members can strongly influence buyer behavior. We can distinguish
between two families in the buyer's life. The buyer's parents make up the family
of orientation. A person acquires an orientation towards religion, politics, and
economics and a sense of personal ambition, self-worth, and love. Even if the
buyer no longer interacts very much with his or her parents, the can still
significantly influence the buyer's unconscious behavior. In countries where
parents continue to live with their children. Their influence
Can be crucial. The family of procreation - the buyer's spouse and children -
exerts a more direct influence on everyday buying behavior. The family is the
most important consumer. Marketers are interested in the roles and relative
influence of the husband, wife and children on the purchase of large variety of
products and services. Husband-wife involvement varies widely by product
category and by stage in the buying process. Buying roles change with evolving
consumer life styles. The wife has traditionally been the main purchase agent for
the family, especially in the areas of food, household products and clothing. But
this is changing with the increased number of working wives and the willingness
of husbands to do more of the family purchasing. For example,
women now buy about 45% of all cars and men account for about 40%of food-
shopping dollars. In the case of expensive products and services, husbands and
wives engage more in joint decision making. And their joint decisions often differ
from those they would make as individuals. The marketer needs to determine
how family members interact to reach decisions and how much influence each
has on the purchase of a particular product of service. Understanding the

28
dynamics of husband-wife decision-making can help marketers to aim the best
marketing strategies toward the right family members.
In the case of Jennifer Smith buying a camera, her husband will play an influence
role~ he may have an opinion about her buying a camera and the kind of camera
to buy although she will be the primary decider, purchaser and user.

ROLES AND STATUS:

A person belongs to many groups- family, clubs, and organizations. The person's
position in each group can be defined in terms of both role and status. With her
parents, Jennifer Smith plays the role of daughter, in her family, she plays the
role of wife: in her company, she plays the role of brand manager. A role consists
of the activities people are expected to perform according to the persons around
them. Each of Jennifer's roles will
influence some of her buying behavior. Each role carries a status reflecting the
general esteem given to it by society. For example, the role of brand manager
has more status in our society than the role of daughter. As a brand manager,
Jennifer will buy the kind of
clothing that reflects her role and status. People often choose products that show
their status in society. A company president might drive a Mercedes or Cadillac,
wear expensive clothes, and vacation in Europe: an office worker might drive a
Taurus or Toyota wear less expensive clothes, and take camping vacations.

PERSONAL FACTORS:
A buyer's decision are also influenced by personal characteristics such as the
buyer's age and life cycle stage, occupation, economics situation, life style and
personality and self-concept.

29
AGE AND LIFE-CYCLE STATE:
People change the goods and services they buy over their lifetimes. For instance,
they eat baby food in their early years, most food in their growing and mature
years, and special diets in their later years. Their taste in clothes, furniture, and
recreation is also age related. Buying is also shaped by the stage of the family
life cycle - the stages through which families might pass as they mature over time.
Marketers often define their target markets in terms of life cycle stage and
develop appropriate products and marketing plans. Psychological life cycle
stages have also been identified. Adults experience certain passages or
transformations as they go through life. Thus Jennifer Smith may move from
being a satisfied brand manager and wife to being an unsatisfied person
searching for new ways to fulfill herself. In fact, such a change may have
stimulated her strong interest in photography. Marketers should pay attention to
the changing buying interests that might be associated with these adult passages.
value. There should be constant value addition to it so as to exceed its value
depletion. This alone maintains the sustained competitive advantage.

30
MAJOR FINDINGS

When carried out a survey based on different parameters that

influence the purchase of a hatchback the following inferences were
extracted from the graphs above.

BODY STYLE

SOURCE: FIELD INVESTIGATION

1. What type of body style do you look for in a hatchback car?

a. Tall boy b. Short sport

39%
tall boy
short sport
61%

61% of the respondents love to have a ‘TALL BOY’ body style as they
prefer a large headroom and the remaining being 39% chose ‘SHORT
SPORT’ as they liked the car to look sporty .

31
SEATING CAPACITY
2. What is the seating capacity you look for in a hatchback car?
a. Four b.Five
SOURCE: FIELD INVESTIGATION

17%

four
five

83%

83% of the respondents prefer a 5 seater than a 4 seater as they required

an extra space for their family. The remaining prefers a 4 seater car.

FUEL TANK CAPACITIES

3. What is the fuel tank capacity you prefer in a hatchback car?
a.30-35 b.35-40 c.40-45 d.45-50
SOURCE: FIELD INVESTIGATION

13% 19%
30-35
35-40
40-45
42% 26% 45-50

42% of the respondents want a fuel tank capacity of 40-45, 26% 35-40, 19%
30-35, and 13% 45-50.

32
GROUND CLEARANCE
4. What is the type of ground clearance you prefer in a hatchback
car?
a. Low ground clearance b.High ground clearance
SOURCE: FIELD INVESTIGATION

23%
low ground
clearance
high ground
clearance
77%

77% of the respondents have a preference for a high ground clearance

hatch back since they felt the road conditions they used to often had pot
holes and big road humps and 23% opted for Low ground clearance.

ENGINE TYPE
5. What is the engine type you prefer in a hatchback car?
a. Diesel b.Petrol c.Electric
SOURCE: FIELD INVESTIGATION

2%
29%
diesel
petrol
electric
69%

Irrespective of the ever increasing petrol price, 69% of the respondents

opted for a Petrol engine. 29% prefer a Diesel engine and 2% electric
engine.

33
SPEED
6. Do you look for speed in a hatchback car?
a.Yes b.No

SOURCE: FIELD INVESTIGATION

32% look for speed

do not look for

68% speed

For 68% of the respondents, ‘Need for Speed’ is a must and for the rest
32% Speed doesn’t matter as they looked for a fuel efficient vehicle.

POWER
7. What is the bhp do you prefer in a hatchback car?
a.50-60 b.60-70 c.70-80
SOURCE: FIELD INVESTIGATION

23%
40% 50-60bhp
60-70bhp
70-80bhp
37%

40% of the respondents will go for 50-60bhp, 37% will chose 60-70bhp and
23% ‘power hungry’.

34
GEAR TRANSMISSION
8. What type of transmission do you prefer in a hatchback car?
a.Automatic b.Manual
SOURCE: FIELD INVESTIGATION

24%

automatic
manual

76%

76% of the respondents like to change the gears by themselves while 24%
want the car to do it for them due to huge traffic and they didn’tlike
changing gears often .

SUSPENSION
9. What type of suspension do you prefer in a hatchback car?
a.Normal air shock b.RBSS
SOURCE: FIELD INVESTIGATION

44%
normal
rbss
56%

56% of the respondents prefer Normal Air Shocks and 44% go

for RBSS

35
BRAKING SYSTEM
10. What type of brakes do you prefer in a hatchback car?
a.Drum b.Disc c.ABS
SOURCE: FIELD INVESTIGATION

27% 24%
drum
disc
abs

49%

49% of the respondents will go for Disc, while 24% prefer Drum
brakes and 27% will go for ABS provided by Maruti.

STEERING

11. What type of steering do you prefer in a hatchback car?

a.Ordinary b.Power steering
SOURCE: FIELD INVESTIGATION

19%

ordinary steering
power steering

81%

81% want the wheels to listen to them and 19% will settle for ordinary
steering as they felt power steering was dangerous at highspeed.

36
POWER OR MILEAGE
12. Do you look for a hatchback with power or mileage?
a.Power b.Mileage

SOURCE: FIELD INVESTIGATION

48% power
52% mileage

52% are ‘POWER HUNGRY’ while the rest are surprisingly low
on mileage

UPHOLSTERY
13. Type of upholstery you prefer in a hatchback car?
a.Leather b.Fabric
SOURCE: FIELD INVESTIGATION

19%

leather
fabric

81%

19% prefer plush Leather interiors and 81% prefer fabric

37
AIRBAGS
14. Do you prefer air bags or you feel seat belts are sufficient
in a hatchback car?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

37% prefer air bags

do not prefer air

63% bags

63% of the respondents do not want the safety airbag and the rest are
concerned about safety.

REAR STOP LIGHTS

15. Do you prefer additional rear stop lamps?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

11% prefer additional

rear stop lamps

do not prefer
additional rear stop
89%
lamps

89% want others to know about the stoppage of their car by the
road side while 11% are easy without it.

38
POWER WINDOWS
16. Do you prefer power windows or manual roller?
a.Power windows b.Manual roller
SOURCE: FIELD INVESTIGATION

29%
power windows
manual roller
71%

Majority of the people want to roll the windows with just a push of a button
and 29% prefer to roll it up manually since they felt if there was an
electrical fault the wind shields may get jammed.

FOG LAMPS
17. Do you prefer front fog lamps?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

33% prefer front fog

lamps
do not prefer front
67% fog lamps

67% prefer front fog lamps while 33% do not prefer fog lamps

39
REAR DE-FOGGER
18. Do you prefer rear defogger?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

17%
prefer rear
defogger
do not prefer rear
defogger
83%

83% of respondents prefer rear defoggers while 17% can

manage without it.

MUSIC SYSTEM
19. Do you prefer a company fitted music system?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

prefer company
22%
fitted music system

do not prefer
78% company fitted
music system

78% of Music buffs will like customize their own audio system
and the left out will take it as it comes.

40
SKIRTING
20. Do you look for body skirting for a sports look?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

36% prfer body skirting

do not prefer body

64% skirting

64% want a stylish Hatchback with skirting and the remaining

36% do not like it.

ALLOYS
21. What do you prefer alloy wheels or rims?
a.Alloys b.Rims

SOURCE: FIELD INVESTIGATION

34%
alloy wheels
rims
66%

66% prefer rims as they feel the alloys may develop cracks early
while 34% want to flaunt with ‘ALLOYS’.

41
COLORS
22. What type of colors you prefer in a hatchback car?
a.Dark b.Light c.Metallic d.Non –Metallic
SOURCE: FIELD INVESTIGATION

14%
27% dark
light
metallic
36%
23% non-metallic

14% like it dark, 36% prefer light, 23% metallic and 27% non-
metallic

BUMPERS
23. Do you prefer body colored bumpers & door handles?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

prefer body
11% coloured
bumpers&door
handles
do not prefer body
coloured
89% bumpers&door
handles

89% prefer body colored bumpers & door handles and 11% do
not prefer body colored bumpers & door handles.

42
CENTRALIZED LOCKING
24. Do you prefer centralized locking with burglar alarms?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

13% prefer centralised

locking system

do not prefer
centralised locking
87%
system

87% prefer centralized locking with burglar alarms while 13% are
less concerned.

AIR-CONDITIONING
25. What type of a/c do you prefer in a hatchback car?
a.Ordinary b.Automatic climate control
SOURCE: FIELD INVESTIGATION

21%
ordinary ac

automatic-climate
control
79%

79% prefer an ordinary AC while 21% prefer an ACC system.

43
PRICE

26. What is the price bracket you prefer in a hatchback car?

a.3.0-3.5 b.3.5-4.0 c.4.0-4.5
SOURCE: FIELD INVESTIGATION

7%
36% 3.0-3.5
30%
3.5-4.0
4.0-4.5
4.5-5.0
27%

36% feel they can afford from 3 lakhs to 3.5, 27% 3.5-4.0, 30%
4.0-4.5, 7% 4.5-5.0.

SPARES
27. Would you prefer spares from local market or genuine
a.Genuine b.Local market
SOURCE: FIELD INVESTIGATION

33%
genuine
local market
67%

67% say that they will go for genuine spare parts while 33% feel
they can fix it from the local market itself.

44
PURCHASE MODES
28. Would you buy the car paying full cash or take loan from
banks?
a.Full cash b.Bank loan
SOURCE: FIELD INVESTIGATION

29%

full cash
bank loan
71%

71% owing to various reasons said, they will avail a loan while
29% said they will purchase through liquid cash.

REAR BENCH
29. Do you prefer single or double folding rear bench?
a.Single b.Double
SOURCE: FIELD INVESTIGATION

33%
single fold
double fold
67%

67% want a single fold rear bench, while others insist on double
fold.

45
RESALE VALUE
30. Do you prefer a car with a good resale value or a car with
looks and performance?
a.Looks & performance b.Resale value
SOURCE: FIELD INVESTIGATION

35% looks
&performance
resale value
65%

65% want a car with a good resale value, while others care less
about it.

BRAND
31. Do you prefer a car from a particular company?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

32% prefer a car from a

particular company
prefer a car from
68% any company

68% said they will go by the company’s credentials while for

other’s its not a main concern.

46
TEST DRIVE
32. Do you prefer a test drive before the purchase of the car?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

5%
prefer a test drive

do not prefer a test

drive
95%

A whopping 95% insist a test drive before the purchase, while a tiny size
said they don’t need it.

TEST DRIVE
33. Would you prefer to have a test drive from the showroom
or at your doorstep?
a.Showroom b.Doorstep
SOURCE: FIELD INVESTIGATION

prefer test drive at

41%
showroom

59% prefer test drive at

doorstep

59% prefer a test drive at door step with various reasons

attached to it, while for others, it will do anywhere.

47
DELIVERY PERIOD
34. What is the maximum delivery period you would wait for?
a.1-2 months b.2-3 months
SOURCE: FIELD INVESTIGATION

19%

1-2momths
2-3months

81%

81% can wait for 1-2 months for their car to be delivered, while
others can go for an extra month.

RELIGIOUS INTERVENTIONS
35. Do you prefer to buy the car on any day of the year or
only on particular days?
a.Any day b.Only on particular days
SOURCE: FIELD INVESTIGATION

41% any day

only on particular
59%
days

59% of the respondents will buy on certain days owing to certain

beliefs, while for others it’s just any day.

48
SERVICE
37. Are you happy for the price you pay for the service?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

22% are happy for the

price they pay for
the service
are not happy for
the price they pay
78%
for the service

78% say that the service men are doing a good job, while others
have reasons to complain.

INSURANCE
38. Are you happy with the insurance service?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

are happy with the

33% insurance service

are not happy with

67% the insurance
service

67% are happy with the insurance options, for the rest, they are
not as they feel that they hardly come at risk .

49
INSURANCE PROCESS
39. Have you ever claimed insurance for your existing vehicle? If yes
what was the amount refunded?
SOURCE: FIELD INVESTIGATION

11%
have claimed
insurance
have not claimed
insurance
89%

89% have not claimed so far, while 11% have claimed and the
agreed upon amount was refunded.

INSURANCE ADD-ON
40. Are you happy with the insurance as add on product?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

are happy with

37% insurance as an
add on product
are not happy with
63% insurance as an
add on product

63% are happy for the above question and 37% are not.

50
SERVICE RESPONSE
41. What do you feel about the service response?
a.Top class b.Top c.Moderate d.Low quality e.No class
SOURCE: FIELD INVESTIGATION

9% 4% top class
33%
top
moderate
25%
low quality
29% no class

33% , 29% say that they are getting a top class service while 25%,
9% and 4% feel that they get moderate, low quality, no class in
that order.

SERVICE FOLLOW-UP
42. What do you feel about the service follow-up?
a.Top class b.Top c.Moderate d.Low quality e.No class
SOURCE: FIELD INVESTIGATION

7% 2% top class
32%
top
30%
moderate
low quality
29% no class

32% are extremely happy about the service follow-up and only
2% says there’s no follow-up, while others don’t have much to
compain.

51
SERVICE RENDERED
43. What would you rate the service rendered?
a.Top class b.Top c.Moderate d.Low quality e.No class

SOURCE: FIELD INVESTIGATION

8% 3% top class
30%
top
moderate
28%
low quality
31% no class

30% say that they get a top class service while 3% say it’s
useless, while the rest dont have much to complain.

SERVICE QUALITY
44. What would you rate the overall quality?
a.Top class b.Top c.Moderate d.Low quality e.No class

SOURCE: FIELD INVESTIGATION

11% 2% top class

32%
top
moderate
24%
low quality
31% no class

32% vouch for the top class service, while only a 2% agree on
low or no service at all.

52
QUALITY OF THE CAR
45. How do you decide the quality?
a.Power b.Peer group c.Fuel efficiency d.Over all family
acceptance
SOURCE: FIELD INVESTIGATION

power
23% 17%
peer group

fuel efficiency
29%
31%
overall family
acceptance

31% of the respondents feel that mileage is the important factor

to gauge the quality, while power, peer group, overall family
acceptance stands at 17%, 29%, 23% respectively.

AGE FACTOR
SOURCE: FIELD INVESTIGATION

25-30
7% 3% 16% 30-35
9%
35-40
40-45
12% 21% 45-50
50-55
13%
19% 55-60
60-65

The above chart speaks about the age group of the hatchback
owners and with which age group it’s the most popular and
that’s in the group of 30-35.

53
OCCUPATION
SOURCE: FIELD INVESTIGATION

3%

38% business
service
59% retired

59% of the businessmen become the primary owners of a

hatchback or its their preferred buy, followed by employees and
3% being retired.

INCOME RANGE
SOURCE: FIELD INVESTIGATION

3% 14% 200000-300000
3%
300000-400000
400000-500000
48%
32% 500000&more
not applicable

48% of the HATCHBACK owners have an income of 5lakhs and

above, while the least being 3%, 2 – 3 lakhs.

54
FAMILY SIZE
SOURCE: FIELD INVESTIGATION

7% 13% three
12%
four
five
six
27% 41%
six&more

41% of the hatch owners or buyers have a family size of four,

which reveals that a hatchback is the preferred one in a small
family.

EDUCATION

SOURCE: FIELD INVESTIGATION

18% 4% 11%
10th
10+2
graduate
post-graduate
67%

67% of the HATCHBACK owners are graduates, while only 4%

have did their 10Th.

55
PRIMARY USER
SOURCE: FIELD INVESTIGATION

6%
15%
head of the family
spouse
children
79%

The study reveals that in majority the head of the family uses the
car.

USAGE STATS
SOURCE: FIELD INVESTIGATION

9%
16% daily
thrice a week
52% weekly once
23% occassionally

52% of them use their cars daily, while only 9% use it

occasionally. and the rest are as above in the graph.

56
SELF DRIVE OR CHAFFEUR DRIVEN
 Is the vehicle chauffer driven?
a.Yes b.No
SOURCE: FIELD INVESTIGATION

17%

chauffer driven
self driven

83%

The study reveals that 83% of the respondents want to drive by

themselves while only a 17% will appoint a driver.

57
CONCLUSION
The evident factors are:
1. TECHNOLOGY
2. SERVICE
3. DIMENSIONS
4. ACCESSORIES
5. PERFORMANCE AND MAINTENANCE

These Makes a consumer to opt for a hatchback car.

Surprisingly, Price, Brand name, aesthetics, Color parameters,
Safety, Exteriors, Mileage are not the factors which drives a
consumer to buy a hatchback. So, it is advisable for the car
makers to leverage more on the aforesaid five factors which the
consumers look for in a hatchback.

58
 OUESTIONNAIRE

Dear Sir/Madam,
I am student of M.P.Birla Institute of Management
and presently conducting a research on “Factors
Influencing Purchase Decision of Consumers on
Hatchback Cars”.
I request your valuable participation. Your
participation is completely voluntary. There are no
foreseeable risks associated with this project. However if
you feel uncomfortable answering any questions, you can
withdraw from the survey at any point. Your opinion is
highly appreciated. Your responses will be strictly kept
confidential and will be used for academic purpose only.
Please answer the following questions.

1.What type of body style do you look for in a hatchback car?

a. Tall boy
b. Short sport
c.2 door
d.4 door
2.What is the seating capacity you look for in a hatchback car?
a. Four
b.Five
3.What is the fuel tank capacity you prefer in a hatchback car?
a.30-35
b.35-40
c.40-45
d.45-50
4.What is the type of ground clearance you prefer in a hatchback
car?
a. Low ground clearance
b.High ground clearance
5.What is the engine type you prefer in a hatchback car?
a. Diesel
b.Petrol
c.Electric
6.Do you look for speed in a hatchback car?
a.Yes

59
 b.No
7.What is the bhp do you prefer in a hatchback car?
a.50-60
b.60-70
c.70-80

8.What type of transmission do you prefer in a hatchback car?

a.Automatic
b.Manual
9.What type of suspension do you prefer in a hatchback car?
a.Normal air shock
b.RBSS

10.What type of brakes do you prefer in a hatchback car?

a.Drum
b.Disc
c.ABS
11.What type of steering do you prefer in a hatchback car?
a.Ordinary
b.Power steering
12.Do you look for a hatchback with power or mileage?
a.Power
b.Mileage
13.Type of upholstery you prefer in a hatchback car?
a.Leather
b.Fabric
14.Do you prefer air bags or you feel seat belts are sufficient in a
hatchback car?
a.Yes
b.No
15.Do you prefer additional rear stop lamps?
a.Yes
b.No
16.Do you prefer power windows or manual roller?
a.Power windows
b.Manual roller
17.Do you prefer front fog lamps?
a.Yes

60
 b.No

18.Do you prefer rear defogger?

a.Yes
b.No
19.Do you prefer a company fitted music system?
a.Yes
b.No
20.Do you look for body skirting for a sports look?
a.Yes
b.No

21.What do you prefer alloy wheels or rims?

a.Alloys
b.Rims
22.What type of colors you prefer in a hatchback car?
a.Dark
b.Light
c.Metallic
d.Non –Metallic
23.Do you prefer body colored bumpers & door handles?
a.Yes
b.No
24.Do you prefer centralized locking with burglar alarms?
a.Yes
b.No
25.What is the mileage you prefer in a hatchback car?
a.12-14
b.14-16
c.16-18
26.What type of a/c do you prefer in a hatchback car?
a.Ordinary
b.Automatic climate control
27.What is the price bracket you prefer in a hatchback car?
a.3.0-3.5
b.3.5-4.0
c.4.0-4.5
28.Would you prefer spares from local market or genuine

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 a.Genuine
b.Local market
29.Do you prefer single or double folding rear bench?
a.Single
b.Double
30.Would you buy the car paying full cash or take loan from
banks?
a.Full cash
b.Bank loan
31.Do you prefer a car with a good resale value or a car with looks
and performance?
a.Looks & performance
b.Resale value
32.Do you prefer a car from a particular company?
a.Yes
b.No
33.Do you prefer a test drive before the purchase of the car?
a.Yes
b.No

34.Would you prefer to have a test drive from the showroom or at

your doorstep?
a.Showroom
b.Doorstep
35.What is the maximum delivery period you would wait for?
a.1-2 months
b.2-3 months
36. Do you prefer to buy the car on any day of the year or
only on particular days?
a.Any day
b.Only on particular days
37.Are you happy for the price you pay for the service?
a.Yes
b.No

38.Can you recollect any specific advertisement of any hatch back

car?

39. Which ad you like the most

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40. Are you happy with the insurance service?
a.Yes
b.No
41. Have you ever claimed insurance for your existing vehicle? If yes
what was the amount refunded?

42. Are you happy with the insurance as add on product?

a.Yes
b.No
43. Do you suggest any other area related to a hatchback car which
can be assured?

44. What do you feel about the service response?

a.Top class
b.Top
c.Moderate
d.Low quality
e.No class
45. What do you feel about the service follow-up?
a.Top class
b.Top
c.Moderate
d.Low quality
e.No class
46. What would you rate the service rendered?
a.Top class
b.Top
c.Moderate
d.Low quality
e.No class
47. What would you rate the overall quality?
a.Top class
b.Top
c.Moderate
d.Low quality
e.No class
48. How do you decide the quality?

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a.Color
b.Power
c.Peer group
d.Fuel efficiency
e.Over all family acceptance

 Age :
 Occupation :

 Income range :
a.150000-200000
b.200000-250000
c.250000-300000
d.300000-350000
e.350000 & more
f.Not applicable

 Family size :
a.Three
b.Four
c.Five
d.Six e.Six + …

 Spouse’s education :
a.10
b.10+2
c.Graduate
d.Post-Graduate

 Spouse’s position :

 Who uses the vehicle?

a.Head of the family
b.Spouse c.Children

 How often do you use the vehicle?

a.Daily
b.Three days a week
c.Weekly once
d.Only during certain occasions

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  Is the vehicle chauffer driven?
a.Yes b.No
PARAMETERS FOR A HATCHBACK CAR

PARAMETERS FOR A HATCHBACK

Dimensional Parameters
Overall length
Overall width
Overall height
Wheelbase
Minimum turning radius
Ground clearance
Seating Capacity
Weight
Unladen weight
Laden weight
Capacity
Fuel tank capacity

Technical Parameters
Engine Type
No. of cylinders
Piston displacement
Maximum output
Maximum torque
Power Transmission
Suspension

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Front
Rear
Coil spring with gas filled shock absorbers
Brakes
Front Disc
Rear Drum
Tyres
Tyre size (Radial)
Windshield washer
Airflow controls
Clear lens headlamps
Clear lens rear combination lamps
Front Grille
Collapsible steering
Front and rear seat belt pre-tensionless with load limiters
ABS
Steering Controls
Both Sides ORVM
Detachable Bumper Insert Moulding
Instrument Cluster w/Chrome Lining
Power
Speed
Mileage
Robustness
Body Design
Aerodynamics
Torque Power

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Engine sub-frame
Engine immobilizer
Ventilated disc brakes
Body metal type (GALVANIZED SHEET METAL / ALUMINIUM)
Pollen Filter

Accessory Parameters
Outside rear view mirror
Green tinted glasses
Lockable fuel lid
Back door lock
Reclining & Sliding front seats
Dual Tone Interior Upholstery
New head restraints
Glove compartment
Center box with lid
Coin receptacle
Sun visors on both sides
Front & rear assist grips
Front door pocket (only LHS)
Floor & luggage room carpets
Moulded roof lining
Stay type fuel gauge
Inside rear view mirror
Electrical Equipment
Rear wiper
Cabin light (3 positions)

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Beam adjusters
Halogen bulbs
Safety Equipment
Side impact beams
Laminated windshield
Additional body reinforcements
High mount rear stop lamp
Collapsible steering column
Dual Tone Interior Upholstery
Rear Combination Lamps
Heater
Antenna
Power windows
Cabin light
Sun visors
Trip meters
Cup holders
Console box
Day & Night Mirror
Front Fog lamp
Rear Spoiler
Front & Rear Mud Guard
Rear Defogger
Body coloured o/s Door Handles
Alloy Wheels
TGS Knob w/Chrome Insert
Seat Fabric Semi

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Utility Tray Under Steering Wheel
Room Lamp
Digital Clock
High Mounted Stop Lamp
Audio system
Speakers
LCD
Tinted Windshields
Sunroof
GPRS
Skirting
Trimmers
Heat reflective glass

Safety Parameters
Two stage bumpers
Front and rear seats belts
Head lamp leveling device
Dual front airbags
Child lock
Side impact beams
Child-Safety Rear Door Locks
Rear Bumper Reflector
Door Open Indicator
Clutch lock
Tail Gate Open Indicator
Low Fuel Warning Lamp

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Audio Warnings-Key-in belt not fastened
Road grip
Crook proof
Acoustic reverse Sensors

Emission standard parameters

Bharat Stage
Bharat Stage
Bharat Stage

Performance & Maintenance Parameters

Better performance and design
Highest product quality
Least problems per vehicle
Lowest cost of ownership
Lowest cost per kilometer
Higher sales satisfaction
Higher after sales satisfaction
Highest fuel efficiency
Highest total customer satisfaction

Aesthetics Parameters
AC
Ordinary steering
Price Parameters

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Price
Price of service
Price of spares

Interior Parameters
Single folding rear bench seat
Double folding rear bench seat
Anti Submarine Seats
Tachometer
Cabin space

Color Parameters
Colors
Body coloured Radiator Grill
Body Coloured Bumper

Exterior Parameters
Boot Capacity
Remote Release of Fuel Lid Latch & Tailgate Latch
Centrally Mounted Fuel Tank

Financial Parameters
Financing options
Resale value

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 Other Parameters
Premium brand image
Emmergency road service
Authorized service center
Convenience
Maneuverability
Proximity of Service stations
Visibility
Laminated front windscreen
Offers
Promotions
Availability of Spare parts
Cost of spares
Wax injection for coastal areas
Test drives
Guarantee
Delivery period
Luxury
Easy accessibility inside bonnet
Religious beliefs

Source: Overdrive , www.marutiudyog.com

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WEBSITE:
WWW.GOOGLE.COM
WWW.INDIACAR.COM

MAGAZINES:
OVERDRIVE
MOTOR INDIA

BOOKS:
ASWATHAPPA ‘CONSUMER BEHAVIOR’
PHILIP KOTLER ‘MARKETING MANAGEMENT’

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