APJRBM Volume 1, Issue 3 (December, 2010) ISSN 2229-4104

CONSUMER PERCEPTIONS AND BEHAVIOUR: A STUDY WITH

SPECIAL REFERENCE TO CAR OWNERS IN NAMAKKAL DISTRICT

Dr. S. SUBADRA,
Assistant Professor in Management Sciences
S. N. S. College of Engineering
Coimbatore. Pin Code – 641 107.
Tamil Nadu State, India.

Dr. K. M. MURUGESAN,
Assistant Professor in Business Administration
Alagappa Government Arts College
Karaikudi. Pin Code – 630 003.
Tamil Nadu State.

Dr. R. GANAPATHI,
Assistant Professor in Commerce
Directorate of Distance Education
Alagappa University, Karaikudi. Pin Code - 630 003.
Tamil Nadu State.

Abstract

In recent days India is witnessing a change in consumerism. The market is now predominantly
consumer driver. The focus is shifting for product based marketing to need based marketing.
Consumer is given many options to decide. Passenger car segment is no exception to this general
trend. An effective market communication is imperative for reaching the target audience. So it is
important that we study the consumer perceptions and behaviour of the car owners which will
give us feedback on how marketing strategies can be worked. Namakkal town in Tamil Nadu
State, which is in the southern part of India, has a progressive and growing market for cars. This
down was selected for this study. Pre-testing was done by an Interview schedule which was
developed and administered to a convenient sample of twenty five car owners. A Simple Random
sampling technique was adopted in the study to select the sample respondents. As the size of the
universe is restricted, the study has been conducted on the respondents who are the owners of all
the segments of passenger cars. A total of 350 Interview schedules were prepared and out of this,
only 327 interview schedules were filled up and collected. Data were collected through an
interview schedule regarding perception of the respondents on the usage of cars. The following
tools were used in testing the hypotheses and in the analysis of the data. Descriptive statistical
tools such as Percentage, Mean, Median and Standard deviation have been used to describe the
profiles of consumers, preferred product attributes and level of satisfaction. ANOVA, t-Test and
F-Test have been used to test the significant differences between the groups of respondents in
their perception and satisfaction for selected independent variables like age, sex and income.
Chi-Square test has been used to test the association between the consumer demographic
characteristics and preferred product attributes and satisfaction. Multiple regression analysis
has been used to study the influence of income and lifestyle on overall satisfaction level of the

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respondents. Correlation analysis has been used to establish the relationship between ‘the
factors which influenced the purchase’ and ‘the factors which favoured the level of satisfaction’.
Factor analysis is employed to identify the key factors responsible for the consumers’ purchase
of cars and level of satisfaction after purchase. Cluster analysis has been used to identify the
consumers with similar tastes and preferences with respect to purchase of car. The study throws
light on various features that the manufacturers should concentrate on to attract the prospective
buyers. This study concludes that consumer behaviour plays a vital role in marketing cars and
there is more scope for extensive research in this area.

Introduction

Human beings, in general, are complex creatures who often do not seem even to know their own
minds. It is seldom easy, and sometimes impossible, to generalize about human behaviour. Each
individual is a unique product of heredity, environment and experience. Predicting such a strange
behaviour of people is a difficult and complicated task, filled with uncertainties, risks, and
surprises. Accurate predictions can yield vast fortunes and inaccurate predictions can result in the
loss of millions of rupees. Today, business around the world recognizes that „the consumer is the
king‟. Knowing why and how people consume products helps marketers to understand how to
improve existing products, what types of products are needed in the market place, or how to
attract consumers to buy their products. The era of liberalization, privatization and globalization
has brought changes in society and lifestyle of people.
Marketers can justify their existence only when they are able to understand consumers‟ wants
and satisfy them. The modern marketing concept for successful management of a firm requires
marketers to consider the consumer as the focal point of their business activity. Although it is
important for the firm to understand the buyer and accordingly evolve its marketing strategy, the
buyer or consumer continues to be an enigma - sometimes responding the way the marketer
wants and on other occasions just refusing to buy the product from the same marketer. For this
reason, the buyer‟s mind has been termed as a black box, which should be opened by the seller to
be a successful marketer.The study of consumer behaviour also includes an analysis of factors
that influence purchase decisions and product use. Understanding how consumers make purchase
decisions can help marketing managers in several ways. For example, if a manager knows
through research that fuel mileage is the most important attribute for a certain target market, the
manufacturer can redesign the product to meet that criterion. If the firm cannot change the design
in the short run, it can use promotion in an effort to change consumers‟ decision making criteria.
For example, an automobile manufacturer can advertise a car‟s maintenance-free features while
downplaying fuel mileage.

Passenger Car Industry in India and profile of the study area

The Indian Automobile Industry has got a tremendous market potential. With the growth of
population and change in their pattern of life style as a result of urbanization, there has been a
rapid increase in demand for Indian automobiles. The purpose of this chapter is to survey the
growth of Automobile Industry in India and their role in economic development and to bring out
the profile of the study area. The entire discussion has been divided into three main sections. The
first section traces the growth of Automobile Industry. The second section discusses origin,
growth and other aspects of Passenger Car Industry. The third section gives a brief profile of the
study area.

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The Indian Automobile Industry has flourished like never before in the recent years. This
extraordinary growth that the Indian automobile industry has witnessed is a result of a major
factor namely, the improvement in the living standard of the middle class and an increase in their
disposable incomes. Moreover, the liberalization steps, such as, relaxation of the foreign
exchange and equity regulations, reduction of tariffs on imports, and refining the banking
policies initiated by the Government of India, have played an equally important role in bringing
the Indian Automobile Industry to great heights. The increased demand for Indian automobiles
has resulted in a large number of multinational auto companies, especially from Japan, the
U.S.A., and Europe, entering the Indian market and working in collaboration with the Indian
firms. Also, the institutionalization of automobile finance has further paved the way to sustain a
long term high growth for the industry. The Future Growth Drivers like higher GDP Growth,
India‟s huge geographic spread – mass transport system, increasing road development,
increasing disposable income with the service sector, cheaper (declining interest rates) and easier
finance schemes, replacement of aging four wheelers, graduating from two wheelers to four
wheelers, increasing dispensable income of rural agricultural sector, growing concept of second
vehicle in urban areas. India produced about eight million two-wheelers, three million passenger
cars and utility vehicles in 2009 - 2010. It ranks second in the world in the production of the two-
wheelers and thirteenth in the production of the passenger cars.
Statement of the Problem
Due to the emergence of globalization and liberalization there is a stiff competition among the
variety of car industries which are focusing attention in capturing the Indian markets. Cars
though considered as luxury once, now occupies a part of day-to-day life and has become a
necessity. Namakkal, which is selected for the study, is one of the main growing markets for car
manufacturers. People who were not ready to spend their money on luxuries have now changed
their attitude that „yesterday‟s luxuries are today‟s necessities.‟ To be a successful marketer it is
absolutely essential to read the minds and perceptions of the prospective buyers of cars. In
addition to the above, the due weightage which is given by the Government for the growth of
passenger car industry and the involvement of the consumers in the selection of a particular
brand of car have also made the researcher to undertake a study on the passenger car industry
with special reference to the perceptions, behaviour and satisfaction of owners of cars.
Review of Literature

Mandeep Kaur and Sandhu (2006) attempted to find out the important features which a
customer considers while going for the purchase of a new car. The study covers the owners of
passenger cars living in the major cities of the State of Punjab and the Union Territory of
Chandigarh. The respondents perceive that safety and comfort are the most important features of
the passenger car followed by luxuriousness. So the manufacturers must design the product
giving maximum weightage to these factors.

Chidambaram and Alfread (2007) postulates that there are certain factors which influence the
brand preferences of the customers. Within this framework, the study reveals that customers give
more importance to fuel efficiency than other factors. They believe that the brand name tells
them something about product quality, utility, technology and they prefer to purchase the

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passenger cars which offer high fuel efficiency, good quality, technology, durability and
reasonable price.
Satya Sundaram (2008) analyzed how the competition makes the automobile manufacturer to
launch at least one new model or a variant of the model every year. This survey also pointed out
that diesel cars are becoming popular in India and the announcement of reductions in excise
duties by the government has helped to some extent to boost the demand.
Clement Sudhakar and Venkatapathy (2009) studied the influence of peer group in the purchase
of car with reference to Coimbatore District. It was also found that the influence of friends is
higher for the purchase of small sized and mid sized cars.

Brown et al (2010) analyzed the consumers‟ attitude towards European, Japanese and the US
cars. The country – of – origin plays a significant role in the consumers‟ behaviour. The brand
name, lower price and distributor‟s reputation completely have a significant impact on the sale of
passengers‟ car.
However, the present study differs from the above, in that, the buyer behaviour in Namakkal in
Tamil Nadu is sought to be analyzed here. The scope and the area of the study are unique in
nature.

Objectives of the Study

The purpose of this research is to study the behaviour of consumers, their importance in the
aspects of life style, perception of product attributes and level of satisfaction. Hence, the study is
aimed at the following objectives.
1. To evaluate car owners‟ perception and behaviour pertaining to the purchase and use of cars.
2. To identify and analyze the factors influencing the purchase of cars.
3. To analyze the level of satisfaction among the respondents and to identify the switch over
brand option, if any and
4. To make suggestions in the light of the findings of the study.

Scope of the Study

Nowadays, car has become a necessity and forms a part of life. Therefore, there is a significant
scope to examine the perception and purchase behaviour of the consumers of cars. The study is
restricted to Namakkal District of Tamil Nadu, which is economically the richest district famous
both for lorry body building and poultry farming. Due to their increasing purchasing power, the
people of this district have started to buy cars for business or personal use or the prestige and
maintenance of social status. Namakkal District with a population of 14, 95,661 is a potential
market for all consumer products and services. Knowledge of the buying behaviour of the
different market segments helps a seller to select their target segment and evolve marketing
strategies to increase the sales. Advertisers and marketers have been trying to discover why
consumers buy and what they buy. This study tries to analyze the influence of perception in the
consumers‟ mind and how this information can be used successfully by marketers to gain entry
into the minds of the consumers. The scope of this research has a very good future.

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Methodology

Before beginning to carry out the present study, the researchers initially conducted a pilot study
in order to find out the feasibility and the relevance of the study. The present study is based on
the perceptions, behaviour and satisfaction of the consumers for passenger cars. Sources of the
primary and the secondary data are discussed. The researchers has used Interview schedule for
the purpose of collecting primary data. It took six months for the researchers to complete the
process of collection in person. As the universe of the study is large, the researchers have
decided to select sample respondents by adopting the Simple Random Sampling Technique. The
secondary data have been collected from the companies‟ bulletins, annual reports and websites.
Further, the researchers has used national and international journals in the field of management,
as well as marketing, business magazines, business dailies, referred text books in marketing
management as well as consumer behaviour and academic studies conducted in the related areas
for the purpose of building a strong conceptual background including the review of literature for
the study.

Sampling Design

This study was conducted among the car owners residing at Namakkal District, Tamil Nadu. A
Simple Random sampling technique was adopted in the study to select the sample respondents.
As the size of the universe is restricted, the study has been conducted on the respondents who are
the owners of all the segments of passenger cars. A total of 350 Interview schedules were
prepared and out of this, only 327 interview schedules were filled up and collected. A scrutiny of
these schedules led to the rejection of 27 interview schedules on account of incomplete
responses. Thus 300 completed interview schedules were used for the present study. Data were
collected through an Interview Schedule regarding perception of the respondents on usage of
cars. The collected data are analyzed through descriptive statistical tools such as Percentage,
Mean, Median and Standard deviation have been used to describe the profiles of consumers,
preferred product attributes and level of satisfaction. The ANOVA, t-Test and F-test have been
used to test the significant differences between the groups of respondents in their perception and
satisfaction for selected independent variables like age, sex and income. The Chi-Square test has
been used to test the association between the consumer demographic characteristics and the
preferred product attributes and satisfaction. Multiple regression analysis has been used to study
the influence of income and lifestyle on the overall satisfaction level of the respondents.
Correlation analysis has been used to establish the relationship between „the factors which
influenced the purchase‟ and „the factors which favoured the level of satisfaction‟. Factor
analysis is employed to identify the key factors responsible for the consumers‟ purchase of cars
and level of satisfaction after purchase. Cluster analysis has been used to identify the consumers
with similar tastes and preferences with respect to purchase of car.

Analysis and Interpretation of Data

The results of the analysis of the collected data are presented below:

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TABLE 1
AVERAGE RATINGS FOR THE INFLUENCING FACTORS

Standard
Sl. No. Factors Mean Median Rank
Deviation
1. Driving Comfort 3.5500 1.1247 4.0000 1
2. Fuel Economy 3.3667 1.0275 3.0000 2
3. Availability of Spare Parts 3.3167 1.1078 3.0000 3
4. Price 3.3067 1.0816 3.0000 4
5. Pick Up 3.3033 0.9562 3.0000 5
6. Attractive Model 3.2867 1.2767 3.0000 6
7. Road Grip 3.2733 1.0076 3.0000 7
8. Brand Image 3.1733 1.2227 3.0000 8
9. Internal Space 3.1033 1.1476 3.0000 9
10. After Sales Service 3.0533 1.0492 3.0000 10
11. Maintenance Cost 3.0333 1.0144 3.0000 11
12. Status Symbol 2.9933 1.3111 3.0000 12
13. Latest Technology 2.9100 1.2572 3.0000 13
14. Resale Value 2.4100 1.0920 2.0000 14
Source: Calculated from Primary Data

„Driving Comfort‟ indicates that most of the respondents have given their responses in the
category of „Moderate influence‟ and „More influence‟. The factors of fuel economy, availability
of spare parts, price, pick up, attractive model, road grip, brand image, internal space, after sales
service and maintenance cost with their obtained mean values indicate that most of them have
favoured for „Moderate influence‟. The obtained mean values of 2.9933, 2.9100 and 2.4100 for
the factors status symbol, latest technology and resale value, which are close to the scale value of
„Moderate influence‟ indicating that these factors moderately influenced the respondents in their
purchase decision.
Factor Analysis – Factors influencing purchase
The general purpose of factor analysis is to find a method of summarizing the information
contained in a number of original variables into a smaller set of new composite dimensions
(Factors) with minimum loss of information. It usually proceeds from the correlations matrix
formed out of the selected variables included in the study. The appropriateness of the factor
model can also be calculated from this. Next, Factor extraction, the number of factors necessary
to represent the data and the method of calculating them must be determined. At this step, how
well the chosen model fits the data is also ascertained. Rotation focuses on transforming the
factors to make them more interpretable and following this, scores for each factor can be
computed for each case. These scores are then used for further analysis. For our study, it is
interesting to study the factors which can be derived out of several variables which contribute in
influencing the purchase of a car. There are 14 variables under the heading „factors influencing
purchase‟. These variables were subject to correlation analysis first.

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TABLE 2
CORRELATION MATRIX

AVAILABILITY OF
SALES
INTERNAL SPACE
STATUS SYMBOL
FUEL ECONOMY

RESALE VALUE
MAINTENANCE

BRAND IMAGE
TECHNOLOGY

SPARE PARTS
ATTRACTIVE

ROAD GRIP
COMFORT
VARIABLES

SERVICE
DRIVING

PICK UP
LATEST
MODEL

AFTER
PRICE

COST
Price --- .458 .260 .134 .021 -.116 .040 -.085 .048 .136 .190 -.168 .212 .097
Fuel Economy --- .273 .248 .136 .076 .199 .119 .247 .220 .258 -.015 .118 .127
Driving Comfort --- .239 .433 .261 .077 .283 .249 .361 .348 .238 .275 .080
Maintenance Cost --- .222 .081 .169 .165 .184 .265 .250 .040 .196 .116
Attractive Model --- .565 .182 .575 .424 .213 .217 .197 .166 .044
Status Symbol --- .313 .407 .257 .140 .098 .245 .051 -.100
Resale Value --- .310 .285 .159 .111 .092 .095 .003
Latest Technology --- .524 .215 .199 .204 .092 .011
Brand Image --- .381 .347 .223 .139 .137
Pick Up --- .674 .313 .287 .228
Road Grip --- .297 .321 .255
Internal Space --- .304 .193
After Sales Service --- .587
Availability of Spare Parts ---
Source: Calculated from Primary Data

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Correlation matrix for the variables from „price‟ to „availability of spare parts‟
(totally 14 items) was analyzed initially for possible inclusion in Factor Analysis.
TABLE 3
KMO AND BARTLETT'S TEST

Kaiser-Meyer-Olkin Measure of Sampling Adequacy .747

Approx. Chi-Square 1211.497
Bartlett's Test of Sphericity Degrees of Freedom 91
Sig. **

Bartlett's test of sphericity is used to test whether the correlation matrix is an identity
matrix. The test value (1211.497) and the significance level (P<.01) which are given above
indicate that the correlation matrix is not an identity matrix, i.e., there exists correlations
between the variables. Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy or
KMO measure is closer to 1, and then it is good to use factor analysis. If the KMO is closer
to 0, then the factor analysis is not a good idea for the variables and the data. The value of
test statistics is given above as 0.747, which means the factor analysis for the selected
variables is found to be appropriate to the data. The Principal Components Analysis (PCA)
is used to extract factors. The PCA is a method used to transform a set of correlated
variables into a set of uncorrelated variables (here factors) so that the factors are unrelated
and the variables selected for each factor are related.
TABLE 4
COMPONENT MATRIX

Component
VARIABLES
1 2 3 4
Pick Up .670 .255 -.133 -.481
Road Grip .659 .327 -.113 -.451
Brand Image .656 -.207 .043 -.067
Attractive Model .653 -.444 .059 .161
Driving Comfort .626 .057 .145 -.110
Latest Technology .605 -.506 .022 .105
After Sales Service .492 .472 -.359 .451
Maintenance Cost .437 .149 .233 .030
Resale Value .394 -.259 .203 .278
Status Symbol .479 -.590 -.0007 .145
Availability of Spare Parts .332 .534 -.412 .458
Price .227 .522 .594 .108
Fuel Economy .430 .294 .588 .070
Internal Space .451 -.056 -.582 -.127
Source: Calculated from Primary Data

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These are all coefficients used to express a standardized variable in terms of the factors.
These coefficients are called factor loadings, since they indicate how much weight is
assigned to each factor. Factors with large coefficients (in absolute value) for a variable are
closely related to that variable. These are all the correlations between the factors and the
variables, since all the factors are uncorrelated with each other. Hence the correlation
between variable „Pick up‟ and Factor 1 is 0.670. Thus the factor matrix is obtained and
presented in the above table. Most factors are correlated with many variables. Since the
idea of factor analysis is to identify the factors that meaningfully summarize the sets of
closely related variables, the rotation phase of the factor analysis attempts to transfer initial
matrix into one that is easier to interpret. It is called the rotation of the factor matrix.

Anova Technique age group and influencing factors

Table 5 & 6 give the results of the ANOVA conducted to test for significant difference if
any, between the respondents of different age groups on the various influencing factors.

Null Hypothesis: The average scores of influencing factors among the respondents of the
different age groups do not differ significantly.

TABLE 5

AVERAGE SCORES OF THE INFLUENCING FACTORS FOR DIFFERENT AGE

GROUPS

Influencing Factor
Age Group N External Technical Cost Service
Mean SD Mean SD Mean SD Mean SD
< 25 years 31 15.48 4.18 12.39 3.84 9.87 2.43 6.23 2.29
25 – 35 years 63 15.00 4.28 13.13 2.84 9.67 2.24 6.57 1.88
36 – 45 years 103 14.60 4.50 13.34 2.95 9.78 2.29 6.27 1.79
46 – 55 years 65 14.74 4.41 13.49 3.09 9.55 2.19 6.35 2.01
> 55 years 38 14.34 4.72 13.34 2.99 9.71 2.25 6.45 1.93
Source: Calculated from Primary Data

TABLE 6
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ANOVA ON THE INFLUENCING FACTORS FOR DIFFERENT AGE GROUPS

Degrees
Sources of Sum of Mean F - Table
Factor of Sig.
Variation Squares Square Value Value
Freedom
Between Groups 29.059 4 7.265
External Within Groups 5791.528 295 19.632 .370 2.402 NS
Total 5820.587 299
Between Groups 28.885 4 7.221
Technical Within Groups 2770.245 295 9.391 .769 2.402 NS
Total 2799.130 299
Between Groups 2.961 4 .740
Cost Within Groups 1517.225 295 5.143 .144 2.402 NS
Total 1520.187 299
Between Groups 4.437 4 1.109
Service Within Groups 1099.493 295 3.727 .298 2.402 NS
Total 1103.930 299
Source: Calculated from Primary Data NS - Not Significant

The Analysis of Variance test is applied to test for significant difference among the
different age groups for each influencing factor separately. The results of the ANOVA are
given in the above table. It is found from the results of ANOVA that influencing factors –
external, technical, cost and service do not differ significantly among the respondents of
the different age groups. Hence, the null hypothesis with respect to all the four influencing
factors is accepted.

Educational Qualification and influencing factors

Table 7 & 8 bring out the results of the ANOVA conducted to test for significant
difference if any, between the respondents of the different educational qualifications on the
various influencing factors.

Null Hypothesis: The average scores of the influencing factors among the respondents of
the different educational qualifications do not differ significantly.

TABLE 7

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AVERAGE SCORES OF THE INFLUENCING FACTORS FOR DIFFERENT

EDUCATIONAL QUALIFICATION

Influencing Factor
Educational
External Technical Cost Service
Qualification N
Mean SD Mean SD Mean SD Mean SD
No Formal
24 14.71 5.22 14.04 3.24 8.88 1.65 7.04 1.65
Education
School Level 60 15.58 3.90 13.60 2.85 9.55 2.11 5.98 1.78
Graduate Level 116 14.95 4.44 13.33 2.96 9.83 2.35 6.59 1.90
Post Graduate Level 46 13.65 4.21 12.41 3.09 9.87 2.46 6.20 2.01
Professional
54 14.48 4.61 12.94 3.31 9.85 2.24 6.17 2.07
Qualification
Source: Calculated from Primary Data
TABLE 8

ANOVA ON THE INFLUENCING FACTORS FOR DIFFERENT EDUCATIONAL

QUALIFICATION

Degrees
Sources of Sum of Mean F - Table
Factor of Sig.
Variation Squares Square Value Value
Freedom
Between Groups 105.439 4 26.360
External Within Groups 5715.148 295 19.373 1.361 2.402 NS
Total 5820.587 299
Between Groups 60.234 4 15.059
Within Groups 2738.896 295 9.284 1.622 2.402 NS
Technical
Total 2799.130 299
Between Groups 22.128 4 5.532
Cost Within Groups 1498.059 295 5.078 1.089 2.402 NS
Total 1520.187 299
Between Groups 29.292 4 7.323
Service Within Groups 1074.638 295 3.643 2.010 2.402 NS
Total 1103.930 299
Source: Calculated from Primary Data NS - Not Significant

From this ANOVA table, it is observed that the F ratios calculated are 1.361, 1.622, 1.089
and 2.010 for all the influencing factors which are less than the table value 2.402 and so it
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is not significant. Hence, the hypothesis formulated is accepted and it is inferred that there
is no significant difference among the different educational qualification of the respondents
on the influencing factors.

Occupational status and influencing factors

Table 9 & 10 analyze for the existence of any significant difference between the various
occupational status and the influencing factors.

Null Hypothesis: The average scores of influencing factors among the respondents of the
different occupational status do not differ significantly.

TABLE 9

AVERAGE SCORES OF THE INFLUENCING FACTORS FOR DIFFERENT

OCCUPATIONAL STATUS

Influencing Factor
Occupational
N External Technical Cost Service
Status
Mean SD Mean SD Mean SD Mean SD
Agriculture 13 15.92 4.09 11.85 2.27 9.62 1.56 6.54 1.33
Business 159 14.91 4.55 13.57 3.09 9.40 2.07 6.42 1.89
Employed in
34 14.00 4.92 12.29 2.90 9.91 2.73 6.53 1.83
Government Service
Employed in Private
47 15.34 3.74 13.13 3.08 10.38 2.63 6.02 2.12
Organization
Professional 24 13.63 4.53 12.75 3.26 9.63 2.41 5.88 1.96
House Wife 16 14.44 4.27 13.75 2.38 10.81 1.52 6.69 2.12
Others 7 14.14 3.44 13.86 3.98 9.00 1.73 7.43 1.99
Source: Calculated from Primary Data

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TABLE 10

ANOVA ON THE INFLUENCING FACTORS FOR DIFFERENT

OCCUPATIONAL STATUS

Degrees
Sources of Sum of Mean F - Table
Factor of Sig.
Variation Squares Square Value Value
Freedom
Between Groups 91.923 6 15.321
External Within Groups 5728.663 293 19.552 .784 2.140 NS
Total 5820.587 299
Between Groups 85.731 6 14.289
Technical Within Groups 2713.399 293 9.261 1.543 2.140 NS
Total 2799.130 299
Between Groups 60.967 6 10.161
Cost Within Groups 1459.220 293 4.980 2.040 2.140 NS
Total 1520.187 299
Between Groups 22.706 6 3.784
Service Within Groups 1081.224 293 3.690 1.026 2.140 NS
Total 1103.930 299
Source: Calculated from Primary Data NS - Not Significant

The above table highlights the results of the ANOVA for different occupational status of
respondents on the influencing factors. The calculated F values of 0.784, 1.543, 2.040 and
1.026 for the External, Technical, Cost and Service factors are insignificant. Therefore, the
stated hypothesis has been proved.

FAMILY INCOME AND INFLUENCING FACTORS

The ANOVA table 11 & 12 given below the mean table tests for any significant difference
between the different family income of the respondents and the influencing factors.

Null Hypothesis: The average scores of influencing factors among the respondents of the
different family income do not differ significantly.

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TABLE 11
AVERAGE SCORES OF THE INFLUENCING FACTORS FOR DIFFERENT
INCOME GROUPS

Influencing Factor
Monthly family
N External Technical Cost Service
Income
Mean SD Mean SD Mean SD Mean SD
< Rs.10000 21 14.43 4.55 12.95 2.60 9.71 2.61 6.10 1.76
Rs.10000- 55 13.67 4.27 12.53 3.24 9.64 2.61 6.05 2.08
Rs.15000
Rs.15001- 60 14.87 4.36 12.80 3.31 9.95 2.42 6.53 1.75
Rs.20000
Rs.20001- 63 15.11 4.86 13.48 2.95 9.54 2.07 6.43 1.97
Rs.25000
> Rs.25000 101 15.18 4.18 13.77 2.90 9.70 2.00 6.47 1.95
Source: Calculated from Primary Data
TABLE 12
ANOVA ON THE INFLUENCING FACTORS FOR DIFFERENT INCOME
GROUPS
Sources of Degrees of Mean F- Table
Factor Sum of Squares Sig.
Variation Freedom Square Value Value
Between
93.387 4 23.347
Groups
External Within 1.203 2.402 NS
5727.200 295 19.414
Groups
Total 5820.587 299
Between
73.392 4 18.348
Groups
Technical Within 1.986 2.402 NS
2725.738 295 9.240
Groups
Total 2799.130 299
Between
5.584 4 1.396
Groups
Cost Within .272 2.402 NS
1514.603 295 5.134
Groups
Total 1520.187 299
Between
9.793 4 2.448
Groups
Service Within .660 2.402 NS
1094.137 295 3.709
Groups
Total 1103.930 299
Source: Calculated from Primary Data NS - Not Significant

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From the above table, it is observed that the obtained F values for the influencing factors
are 1.203, 1.986, 0.272 and 0.660. These values are less than the table value of 2.402.
Hence, they are insignificant and so the above stated null hypothesis has been accepted.

FAMILY SIZE AND INFLUENCING FACTORS

Table 13 & 14 describe the results of ANOVA for significant difference between the
various family sizes of the respondents on their influencing factors.

Null Hypothesis: The average scores of influencing factors among respondents of

different family sizes do not differ significantly.

TABLE 13

AVERAGE SCORES OF THE INFLUENCING FACTORS FOR DIFFERENT

FAMILY SIZE

Influencing Factor
Size of the
External Technical Cost Service
Family N
Mean SD Mean SD Mean SD Mean SD
1 – 3 members 72 15.43 4.67 13.43 3.02 9.90 2.26 6.11 2.09
4 – 6 members 190 14.26 4.23 13.06 2.97 9.72 2.29 6.48 1.90
Above 6 members 38 16.11 4.46 13.71 3.54 9.29 2.05 6.32 1.68
Source: Calculated from Primary Data

TABLE 14

ANOVA ON THE INFLUENCING FACTORS FOR DIFFERENT FAMILY SIZE

Degrees
Sources of Sum of Mean F - Table
Factor of Sig.
Variation Squares Square Value Value
Freedom
Between Groups 148.992 2 74.496
External Within Groups 5671.595 297 19.096 3.901 3.026 *
Total 5820.587 299
Between Groups 17.298 2 8.649
Technical Within Groups 2781.832 297 9.366 .923 3.026 NS
Total 2799.130 299
Between Groups 9.399 2 4.699
Cost .924 3.026 NS
Within Groups 1510.788 297 5.087

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Total 1520.187 299

Between Groups 7.193 2 3.596
Service Within Groups 1096.737 297 3.693 .974 3.026 NS
Total 1103.930 299
Source: Calculated from Primary Data NS - Not Significant
(* Denotes 5% level of significance)

The above table represents the ANOVA for significant difference between the various
family sizes of the respondents with respect to the influencing factors. From the analysis it
is found that the F value of 3.901 with respect to the external factor differs significantly at
5% level of significance. Therefore the null hypothesis is rejected. Hence it is concluded
that there is significant difference between the various family sizes and the influencing
external factor. The F values of the other three influencing factors Technical, Cost and
Service of 0.923, 0.924 and 0.974 respectively have no significant difference. Hence the
hypothesis with respect to these three factors is accepted.

Life style Dimensions and influencing factors

The ANOVA tables 15 & 16 analyze for significant difference if any between respondents
of different life style dimensions on various influencing factors. The following hypothesis
is framed for this purpose:

Null Hypothesis: There is no significant difference among the groups of the respondents
of the different life style dimensions in the average level of influence exhibited by the
factors - external, technical, cost and service.
TABLE 15
AVERAGE SCORES OF THE INFLUENCING FACTORS FOR DIFFERENT
LIFE STYLE DIMENSIONS

Influencing Factor
Life Style
N External Technical Cost Service
Dimensions
Mean SD Mean SD Mean SD Mean SD
Compact Drivers 110 14.71 4.29 13.29 2.93 9.53 2.23 6.34 1.97
Travel Lovers 42 14.12 4.35 12.83 2.97 9.93 2.47 6.24 1.85
Reserved Affluent 69 15.30 4.42 13.14 2.91 9.67 2.17 6.43 1.94
Luxury Relishes 79 14.75 4.63 13.43 3.43 9.87 2.27 6.43 1.89
Source: Calculated from Primary Data

TABLE 16

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ANOVA ON THE INFLUENCING FACTORS FOR DIFFERENT LIFE STYLE

DIMENSIONS

Degrees
Sources of Sum of Mean F - Table
FACTORS of Sig.
Variation Squares Square Value Value
Freedom
Between Groups 37.946 3
12.649
External Within Groups 5782.641 296 0.647 2.635 NS
19.536
Total Groups 5820.587 299
Between Groups 10.688 3
3.563
Technical Within Groups 2788.442 296 0.378 2.635 NS
9.420
Total Groups 2799.130 299
Between Groups 7.915 3
2.638
Cost Within Groups 1512.271 296 0.516 2.635 NS
5.109
Total Groups 1520.187 299
Between Groups 1.433 3
0.478
Service Within Groups 1102.497 296 0.128 2.635 NS
3.725
Total Groups 1103.930 299
Source: Calculated from Primary Data NS - Not Significant

The Analysis of Variance test is applied to test for the significant difference among the life
style dimensions for each influencing factor separately. The results of the ANOVA are
given in the above table. It is found from the results of the ANOVA that influencing
factors - external, technical, cost and service do not differ significantly among the
respondents of the different life style dimensions. Hence, the hypothesis with respect to all
the four influencing factors is accepted.

Brand of car and influencing factors

Tables 17 & 18 bring out the ANOVA results for significant difference between the
various brands of cars possessed by the respondents and the factors which influenced the
purchase of those brands among the respondents.

Null Hypothesis: There is no significant difference between the different brands of cars
owned by the respondents and the factors which influenced the purchase of that specific
brand of car.

TABLE 17

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AVERAGE SCORES OF THE INFLUENCING FACTORS FOR DIFFERENT

BRAND OF CAR
Influencing Factor
Brand of Car N External Technical Cost Service
Mean SD Mean SD Mean SD Mean SD
Hyundai 42 16.02 4.21 13.50 3.12 9.71 1.95 6.48 1.94
Maruti Udyog 108 13.11 3.96 12.71 2.98 10.42 2.53 6.71 2.26
Fiat 22 14.36 4.62 12.36 2.92 9.86 2.27 5.82 1.47
Tata 49 16.31 3.90 13.78 2.84 9.08 2.02 6.35 1.68
Hindustan
44 15.30 4.58 13.18 3.13 9.18 1.83 5.93 1.59
Motors
Others 35 15.86 4.84 14.34 3.24 8.94 1.92 6.11 1.57
Source: Calculated from Primary Data
TABLE 18
ANOVA ON THE INFLUENCING FACTORS FOR DIFFERENT BRAND OF CAR
Degrees
Satisfaction Sources of Mean F - Table
SS of Sig.
Factor Variation Square Value Value
Freedom
Between 536.000 5 107.200
Groups 5284.587 294 17.975
Within 5820.587 299
External 5.964 3.080 **
Groups
Total
Groups
Between 106.475 5
Groups 2692.655 294
Within 2799.130 299 21.295
Technical 2.325 2.245 *
Groups 9.159
Total
Groups
Between 106.670 5
Groups 1413.517 294
Within 1520.187 299 21.334
Cost 4.437 3.080 **
Groups 4.808
Total
Groups
Between 30.639 5
Groups 1073.291 294
Within 1103.930 299 6.128
Service 1.679 2.245 NS
Groups 3.651
Total
Groups
Source: Calculated from Primary Data NS - Not Significant
(* Denotes 5% level of significance)
(** Denotes 1% level of significance)
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The above table outlines the brand of car possessed by the respondents namely Hyundai,
Maruti Udyog, Fiat, Tata, Hindustan Motors and other including brands of General
Motors, Skoda, Ford, Honda and Daewoo Motors. From the above table, it is clearly
known that the calculated value of the influencing factor „Service‟ of 1.679 is less than the
table value of 2.245 at 5% level of significance. Therefore, the above formulated null
hypothesis is accepted with respect to service only. It is inferred that there is no significant
difference between the brand of car and the influencing factors with respect to Service.
It is seen that the „F‟ values of 5.964 and 4.437 for the Influencing factors External and
Cost are much higher than the table values. Therefore, the proposed null hypothesis is
rejected at 1% level of significance and it is concluded that there is a highly significant
difference between the brand of cars with respect to External feature of the car and the cost
of car among the respondents.
It is also observed that the „F‟ value of 2.325 for the influencing factor „Technical‟ is
higher than the table value of 2.245. Hence the above stated null hypothesis is rejected at
5% level of significance and it is concluded that there is significant difference between the
brand of car and the influence of Technical features of car on the purchase of a particular
brand.
* The analysis of influencing factor „External‟ highlights the respondents of Tata Brand
with the highest mean value of 16.31. They think that Tata Brand is a successful one in
effectively influencing the respondents on the purchase with respect to External features of
car. The car owners of Maruti with least mean value of 13.11 feel that external features is
less successful than the other brands in creating interest in purchasing Maruti Brand.
* The analysis of influencing factor „Technical‟ indicates the respondents of various brands
of General Motors, Skoda, Honda and Daewoo with the highest mean value of 14.34. They
feel that the above brands are successful in influencing the respondents on their purchase
with respect to the technical features of car. The Fiat car owners with the least mean value
of 12.36 perceive that the technical features are not successful in creating interest in the
purchase with respect to Fiat owners.
* The analysis of influencing factor „Cost‟ represents the respondents of Maruti Brand with
the highest mean value of 10.42. They judge that Maruti brand is much successful in
effectively influencing the respondents on the purchase of car based on Cost. It is also
highlighted that the owners of other brands like General Motors, Skoda, Honda and
Daewoo with least mean value of 8.94 think that „Cost” is not successful in creating
interest in the purchase of these brands.
* The analysis of Influencing factor „Service‟ discloses the respondents of Maruti Brands
with the highest mean value of 6.71. They perceive that Maruti brand is very much
successful in effectively influencing the respondents on purchase with respect to the
services available in the usage of cars. The car owners of Fiat with least mean value of
5.82 judge that Service factor is not encouraging the respondents in the purchase of Fiat
brand.

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Suggestions

1. To ensure that a product finds a place in the minds of consumers, the manufacturers
should position their products through sales promotional activities such as
advertisement through the media.
2. Indian youth / consumers are very strongly influenced by testimonials of sports
personalities, film stars and celebrities. For positioning the consumer durables like
cars, the manufacturers can utilize the endorsement of these celebrities.
3. Majority of the respondents reported that they formed their expectations through the
statement made by friends and relatives and therefore it would be beneficial if the
extent of influence of such groups is studied. It may be found through closely
studying the social interactions of the consumers.
4. Experts believe the main driver of the Indian car market is the availability of car
finance on easy installments and reasonable interest rates. Most of the respondents
also reported that due to the easy availability of finance they buy cars. So the car
dealers should have tie-up arrangements with the authorized financial institutions to
boost sales.
5. The demand for small car segment is increasing because of the growing number of
nuclear families as well as parking problems. Hence the manufacturers should find
out the needs, wants, tastes and preferences of the consumers in order to design the
products.
6. The respondents perceive that driving comfort and fuel economy are the most
important features of the passenger car followed by availability of spare parts and
price of the car, thus the manufacturers should design the product giving maximum
weightage to these factors.
7. A large component of a passenger car‟s cost is taxes such as excise duties, central
and state sales taxes which push up the ex-factory price of a car by around 50%. The
governments, both the central and the state should come forward to reduce these tax
levels to enhance the demand for cars in the country.
8. The study reveals that the middle class population has risen to 13 per cent of the total
population. Hence the brand image and brand loyalty could be boosted by selling
quality cars at a reasonable price to suit the needs of the middle income group.
9. India is witnessing significant changes in the economic and social status of women.
Many women are now becoming educated and they pose challenge in employment,
once reserved for men. According to the observations made, it is stated by most of
the female respondents that the automobile manufacturers should study the behaviour
of women and should produce a car exclusively for women as the two wheeler
manufacturers are doing.
10. Car owners feel that the hospitality shown by the dealers is more during their visits to
the places of dealers before and immediately after the purchase. But after some time
they face a problem with their dealers regarding after sales service. Therefore, it is
suggested that the services rendered or to be rendered should be properly explained,
friendly approach and reliability in service are to be further improved.
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11. Most of the respondents expressed that they have technical problems in their existing
car and some of them opined that they switch over to another brand because they
would like to buy a new technology car. Hence the government should announce a
National Award for the automobile companies which adopt the Research and
Development measures so that Indian cars can really become world class quality.

Conclusion

Consumer Behaviour consists of all human behaviour that goes in making purchase
decisions. An understanding of the consumer behaviour enables a marketer to take
marketing decisions which are compatible with its consumer needs. There are four major
classes of consumer behaviour determinants and expectations, namely, cultural, socio-
economic, personal and psychological. The socio-economic determinants of consumer
behaviour consist of age, marital status, occupation, education, income, family size etc.
Realizing the importance of passenger car industry in the present economic situation, the
researcher has analyzed the perceptions, and behaviour of consumers related to this
product. It is rightly said; yesterday‟s luxuries are today‟s necessities. Hence in this digital
world, car is no longer a luxury. From the discussions made in the previous chapters, there
are certain product attributes which are identified in the study as influencing the purchase
decision and satisfying the consumers. The growth in the population of India and the
increasing number of middle class consumers has attracted the attention of car
manufacturers and marketers. The manufacturers and marketers who study the behaviour
of consumers and cater to their needs will be successful. It may be concluded that
consumer behaviour has a greater role to play in the LPG era of economic activities for
which a necessary survey and research should be conducted in an efficient manner.

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