Most Favorite Car Brands

11.43%

8.57%

Chevrolet (General Motors)

Honda
14.29% 17.14% 2.86% 2.86% 8.57% 31.43% 2.86% Hyundai Mahindra&Mahindra Maruti Suzuki Renault

Skoda
Toyota Others

Reasons for Changing the Old Car

Would you change your car with-in next year?
Yes (25.72%) No (74.29%)

Major Reasons were:

Want to Switch to Sedan.
To experience the thrill of SUV. Expanding Family, necessity. The old car is demanding too much maintenance.

FACTOR ANALYSIS AND MULTI DIMENSIONAL SCALING

FACTOR ANALYSIS
Factor analysis is a statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.

Bartlett's Test of Sphericity Approx. ChiSquare Df

.564
1936.76 27.0

Sig.

.000

Total Variance Explained Initial Eigen values % of Cumulati Variance ve %

24.915 14.177 11.258 9.191 8.568 6.278 5.030 3.571 3.193 24.915 39.092 50.350 59.540 68.108 74.386 79.416 82.988 86.181

Extraction Sums of Squared Loadings % of Cumulati Variance ve %

24.915 14.177 11.258 9.191 24.915 39.092 50.350 63.327

Rotation Sums of Squared Loadings % of Cumulati Variance ve %

16.030 14.898 12.764 12.312 16.030 30.928 43.692 63.327

Component 1 2 3 4 5 6 7 8 9

Total
4.983 2.835 2.252 1.838 .964 .865 .826 .714 .639

Total
4.983 2.835 2.252 1.838

Total
3.206 2.980 2.553 2.462

Extraction Method: Principal Component Analysis.

Rotated Component Matrixa Variables Component

1
Mileage Comfort Seating Capacity After-Sales Service Availability of Genuine Spares Appearance Style and Color Safety Features (ABS, Central Locking, Air Bag) Features (Power Brakes, Power Steering, Power Windows) Social Status (Income, Class) Family Friends Co-Workers Advertisements Celebrity Endorsements Dealer Schemes Discount Offers Past Experience Resale Value Technology Used Warranty Terms Accessories Engine Capacity Necessity Luxury Status Symbol Price Maintenance Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. .222 -.148 -.485 .776 .117 -.208 .725 .343 .230 .635 .299 .310 .172 -.239 .772 .292 .222 .813 .293 .252 .274 .336 .126 -.074 .121 .754 -.239 .045

2
-.004 .669 .458 .197 .688 .735 -.192 .656 .590 -.347 .106 .254 .278 .115 .123 .052 -.004 .075 -.047 .750 .786 .529 .763 .477 .506 -.347 .115 .102

3
-.053 -.166 .176 .193 .023 -.085 -.095 .146 .014 .395 .763 .756 .677 .847 .246 .662 -.053 .133 .262 .075 .045 .003 .140 -.035 .646 .395 .456 .255

4
.698

0.368
.418 .164 .315 .007 .096 .268 .154 .096 .278 .356 .106 .050 .102 -.111 .765 .178 .795 -.197 .102 -.501 -.102 .090 -.170 .096 .847 .745

a. Rotation converged in 9 iterations.

Factor Analysis Summary

Factor 1 includes Social Status, Style & Color, Celebrity Endorsements, Past Experience, Resale Value Psychological Factors

Factor 2 includes Comfort, Appearance, Safety Features, Features, Technology, Warranty Terms, Accessories, Engine Capacity, Luxury Product Factors
Factor 3 includes Advertisements, Dealer Schemes, Family, Friends, Co-Workers, Information Factors Factor 4 includes Mileage, Discount Offers, Resale Value, Price, Maintenance Economic Factors

Why Multi-Dimensional Scaling?

Multi Dimensional Scaling is a class of procedures for representing perceptions and preferences of respondents spatially by means of a visual display. These geometric representations are often called spatial maps. MDS has been used in marketing to identify: The number and nature of dimensions consumers use to perceive different brands in marketplace The positioning of current brands on these dimensions The positioning of consumers ideal brand on these dimensions

Stress value was 0.22942 RSQ value was 0.71652

SPSS output

EXTERNAL INFLUENCES

Communication Media
Advertisements : around 36 %. Newspaper/Magazines : 22% Television commercials : 76% Out of home : 2% Q : Do presence of celebrity in advertisements influence your decision while purchasing a car? Yes : 42 % No : 58 %

Social media/ Internet : 12 % Word of Mouth : 52 %

SOCIAL CLASS

SUBJECTIVE MEASURES
CATEGORIES Lower Class Lower Middle Class Upper Middle Class PERCENTAGE 33% 57%

Upper Class
Do not know/ refused to answer

10%
-

OBJECTIVE MEASURES
SLOTS PERCENTAGE

LESS THAN 20,000

20,000-30,000 30,000-50,0000 MORE THAN 50,000

23%
14% 35% 28%

According to the primary research done, mostly respondents lie in upper middle class category.

Influence of Social Class on Consumer Buying Decision

70 60 50 40 64

30
20 10 0 0
Most unlikely

23 2
unlikely

3
least unlikely neutral

6
least likely likely

2
most likely

Traditional Family Life Cycle

STAGES STAGE 1 STAGE 2 CATEGORIES BACHELORHOOD NEWLY MARRIED PERCENTAGE 44 12

STAGE 3
STAGE 4

FAMILY WITH CHILDREN

EMPTY NEST

37
7

Need for buying a new car was felt by newly married couples & family with children.

Influence of Reference groups

Primary reference groups include family, friends, co-workers, relatives, neighbours, seniors at workplace. 38 % respondents get influenced by the suggestions given by these reference groups.

Product Personality and gender

Consumer Innovativeness

Consumer Materialism
Social Status Appearance

Ethnocentrism

Product Personality and Colour

PERSONALITY
Product Personality and gender Female small car Male large car Hence combination of both sized cars Product Personality and Geography - In cities consumers (M & F) prefer small cars - Whereas in hilly areas SUV Innova

Product Personality and Color - Black , white , silver color is preferred by the consumers

 Consumer Innovativeness
You are interested in buying new products 42.5 % Disagreed 26.6 % Agreed Consumer Materialism Social Status 64 % towards likelihood Appearance 90 % towards likelihood

Consumer Ethnocentrism Yes 46 % No 54 %

Attitudes Factors
Multi-Attribute Model Attitude towards object model

Source of influence on attitude formation Personal experience Influence of family and friends Direct marketing, mass media and Internet - WOM

Safety Features

Features

Family/ Friends/Co-workers

Advertisement

Attitude formation toward product categories/Brands

Attitude New product categories Few brands Creation of a category in the mindset

Use

Consumer familiarity

Brands

Attitudinal components

Attitude toward brands

Consumer Motivation

Motivation
Intrinsic
Travelling long distance by road
14% of total respondents

Extrinsic
Status symbol
64% towards likelihood and 23% neutral

Travelling within the city

53% of total respondents

Safety features ABS, Air bags

63% towards likelihood and 30% neutral

Travelling with friends and family together

31% of total respondents

High end Interiors and accessories

59% towards likelihood and 13% neutral

Shelter from sun and dust while traveling

12% of total respondents

Engine Capacity
81% towards likelihood and 13% neutral

FUNCTIONAL RISK
Technology used Engine Capacity Features (Power Brakes, Power Steering, Power Windows) Safety Features (ABS, Central Locking, Air Bag)

Mileage
Availability of Genuine Spares

Technology Used
40% 35% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Engine Capacity

30%
25% 20%

15%
10% 5%

0%

Features (Power Brakes, Power Steering, Power Windows)

0% 5% 3% 30% 15% 13% 34% most unlikely unlikely least unlikely neutral least likely likely most likely

Safety Features (ABS, Central Locking, Air Bag)

0% 0% 15% 8% 25% 32% most unlikely unlikely least unlikely neutral least likely likely most likely

20%

Mileage
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Availability of Genuine Spares

0% 13% 0% 8% 3% most unlikely unlikely least unlikely neutral 34% 42% least likely likely most likely

CONCLUSION
Majority of the Indian consumers prefer with black , white and silver being the most preferred option.

Indian consumers are not ethnocentric and appearance and social status matters to great extent.

The attitude of consumer is mostly based on product features rather than advertisements.

Consumer Decision Making Model

Need Recognition

Prepurchase Search
Internal Sources
Past experience 72% towards Likelihood
Psychological field Family, friend, coworker 36% towards Likelihood

External sources
Advertisement 64% towards unlikely and only 11% towards likelihood

Prepurchase Search
Car purchase involves increased pre-purchase search for an Indian Customer due to following factors.
Infrequent Purchase Average time of last purchase 4 yrs
Change in technology 68% YES 32% NO High Price 31% of sample size is of income group Rs 30000 to 50000 Social visibility of Product 64% towards likelihood and 23% neutral Involvement of family/friends in purchasing the product 36% towards Likelihood and 31% neutral The consumers are well educated 44% are Professionals and 25% are students

Evaluation of Alternatives

Evoked Set Maruti , Toyota, Honda Inert Set Renault, Chevrolet, Mahindra Inept Set Ford, Skoda, Hyundai, Tata

Conclusion
Increased Pre-purchase search for buying a car.

Most People Buy a car to travel within the city or to travel along with their friends and family.

While purchasing a car consumer looks for Luxury, Social Symbol and Necessity.

Past Experience is most critical factor during Pre-purchase search.

Recommendation
Company must be more focused on providing experience through test drives before launch.

Should highlight the best experiences of past customer in their advertisements.

The product must have good interiors and accessories to give a luxurious feel.

Features like low turning radius and included.

advanced power steering should be

THANK YOU