Muskan Garg (3)
Muskan Garg (3)
ON
“A STUDY ON CONSUMER BUYING BEHAVIOUR
TOWARDS TATA MOTORS CAR”
Dean VSBS
Table of Contents
Executive Summary 1
Bibliography 32
Annexure 33-38
Executive Summary
This research has been undertaken in order to understand the consumer buying
behaviour towards Tata Motors Car. Consumer Buying Behaviour refers to the
actions taken by consumers both online and offline before buying a product or
service. There are a variety of factors which influence the consumers buying
behaviour namely- cultural, social, personal and psychological factors. It is
important for marketers to understand this concept as it will help them gain a
better understanding as to what makes a consumer to make a purchase.
This research comprises of both the primary as well as secondary data. The
methodology used in the research is exploratory research. The data has been
collected using non-probability sampling method (convenience sampling).
The data on consumer buying behaviour towards Tata Motors car has been
collected using a well-structured questionnaire. The questionnaire contains
questions related to demographic profile of the respondents, what makes them go
for Tata Motors car and what are their preferences in regards to cars.
The analysis of the data has been done using Excel in which Chi square test has
been conducted and the data is represented through Pie Charts.
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CHAPTER – 1
INTRODUCTION
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1.1 Introduction of Study
Buying behaviour is the decision processes and acts of people/prospective customers involved
in buying and using products.
It helps in understanding:
Why consumers make purchases they make?
What factors influence consumer purchases?
The changing factors in our society.
It essentially refers to the buying behaviour of the ultimate consumer.
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External search, if you need more information – friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping, public sources etc.
A successful information search leaves a buyer with possible alternatives, the
evoked set.
3. Evaluation of alternatives – Need to establish criteria for evaluation, features the buyer
wants or does not want. Rank/weight alternatives or resume search. May decide that
you want to eat something spicy, Indian gets highest rank etc. If not satisfied with your
choice, then return to the search phase. Information from different sources may be
treated differently. Marketers try to influence by framing alternatives.
4. Purchase decision – Choose buying alternative, includes product, package, store,
method of purchase etc.
5. Purchase – May differ from decision, time lapse between 4 and 5, product availability.
6. Post-purchase evaluation – Outcome: satisfaction or dissatisfaction. Cognitive
dissonance – have you made the right decision? This can be reduced by warranties,
after sales communication etc. After eating an Indian meal, you may think that really
you wanted a Chinese meal instead.
1.3 Company Profile
Tata Motors Limited (TML), a USD 42 billion organization, is India’s largest automobile
company by revenues. Incorporated in India, in the year 1945, Tata Motors is a part of the USD
100 billion Tata group and has operations across India, UK, South Korea, Thailand, South
Africa, and Indonesia.
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company has played an instrumental role in transforming the country into a destination for
world-class automotive manufacturing and continues to work towards building the nation. Tata
Motors has always been at forefront of innovating technologies and providing products and
experiences catering to the discerning needs of our customers across both passenger and
commercial vehicles business. With its corporate brand identity - Connecting Aspirations, Tata
Motors continues to create segment-defining products that will fire up the imagination of
customers - generation after generation; reiterating the company’s promise of offering better
journeys.
1.5 Scope
This project is undertaken to study how consumer makes a buying decision while purchasing
Tata Motors cars. It aims to analyse buying behaviour of the customers of Tata Motors.
This study will focus its attention on the customers in Delhi-NCR and in identifying the factors
which are relevant for the buying decision process.
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CHAPTER – 2
LITERATURE
REVIEW
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2.1 Introduction
A literature review is a survey of scholarly sources on a specific topic. It identifies, evaluates,
and synthesises the relevant literature within a particular field of research. It also illuminates
how knowledge has evolved within the field, highlighting what has already been done, what is
generally been accepted, what is emerging and what is the current state of thinking on the topic.
In addition, a literature review identifies an unexplored research area and articulates how a
particular research project addresses this gap.
Conclusion: The conclusion drawn is that better understanding the consumer buying
behaviour through studying and identifying their needs leads to huge long-term benefits
to the businesses. Despite the great efforts to learn and understand the buying behaviour
of consumers, it is very difficult to identify the exact reasons why a consumer purchases
and prefers one product or service over another one. This is because consumers
sometimes make purchasing decisions based on their emotional beliefs which they even
themselves are not well aware of.
Conclusion: Consumer Buying Behaviour refers to the buying behaviour of the ultimate
consumer. Many factors, specificities and characteristics influence the individual in
what he is and the consumer in his decision-making process, shopping habits,
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purchasing behaviour, the brands he buys or the retailers he goes. A purchase decision
is the result of each and every one of these factors.
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Occupation – The occupation of a person has significant impact on his
buying behaviour. For example, a marketing manager of an organisation
will try to purchase business suits, whereas a low-level worker in the same
organisation will purchase rugged work clothes.
Economic Situation – Consumer economic situation has great influence on
his buying behaviour. If the income and savings of a consumer is high then
he will purchase more expensive products. On the other hand, a person with
low income and savings will purchase inexpensive products.
Lifestyle – Lifestyle of consumers is another important factor affecting the
consumer buying behaviour. Lifestyle refers to the way a person lives in a
society and is expressed by the things in her/her surroundings. It is
determined by consumer interests, opinions, activities etc. and shapes his
whole pattern of acting and interacting in the world.
Personality – Personality changes from person to person, time to time and
place to place. Therefore, it can greatly influence the buying behaviour of
consumers. It has different characteristics such as: dominance,
aggressiveness, self-confidence etc. which can be useful to determine the
consumer behaviour for particular product or service.
4. Psychological Factors – There are four important psychological factors affecting
the consumer buying behaviour. These are: perception, motivation, learning,
beliefs, and attitudes.
Motivation – The level of motivation also affects the buying behaviour of
customers. Every person has different needs such as physiological needs,
biological needs, social needs etc. The nature of the needs is that, some of
them are most pressing while others are least pressing. Therefore, a need
becomes a motive when it is more pressing to direct the person to seek
satisfaction.
Perception – Selecting, organising, and interpreting information in a way to
produce a meaningful experience of the world is called perception. There
are three different perceptual processes which are selective attention,
selective distortion, and selective retention. In case of selective attention,
marketers try to attract the customer attention. Whereas, in case of selective
distortion, customers try to interpret the information in a way that will
support what the customers already believe. Similarly, in case of selective
retention, marketers try to retain information that supports their beliefs.
Beliefs and Attitudes – Customer possesses specific belief and attitude
towards various products. Since such beliefs and attitudes make up brand
image and affect consumer buying behaviour, therefore marketers are
interested in them. Marketers can change the beliefs and attitudes of
customers by launching special campaigns in this regard.
Conclusion: The study of consumer behaviour is quite complex, because of many
variables involved and their tendency to interact with and influence each other. These
variables are divided into three major sections that have been identified as the most
important general influences on consumer behaviour. Imagine three concentric circles,
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one at the outer most, one in the middle and one at the inner most, and they represent
the following:
External Environment Variables Influencing Behaviour – These are the factors
controlled by external environments like the following form the basis of
external influences over the mind of a customer (outer circle).
Culture and Subculture
Social Class and Social Group
Family and Inter-Personal Influences
Other Influences (which are not categorised by any of the above six, like
geographical, political, economic, religious environment, etc.).
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Conclusion: The concept “brand image” has drawn significant attention from
academics and practitioners since it was put forward, because it played an important
role in marketing activities. Although brand image was recognised as the driving force
of brand asset and brand performance, few studies have elaborated on the relationship
between brand image and brand equity. Based on the brand image theories, this study
reviewed extant studies about the impact of brand image on consumer from perspective
of consumer equity.
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CHAPTER – 3
RESEARCH
METHODOLOGY
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3.1 Research Methodology
Research methodology is the specific procedures or techniques used to identify, select, process,
and analyse information about a topic. In a research paper, the methodology section allows the
reader to critically evaluate a study’s overall validity and reliability. The research is concerned
with carrying out experiment, test, surveys, interviews, etc. As against this, research
methodology is concerned with learning various techniques which can be employed in the
performance of experiment test or survey.
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3.6 Sampling
Sampling is a process used in statistical analysis in which a predetermined number of
observations are taken from a larger population. The sampling methods are of two types:
a) Probability Sampling – It uses random sampling techniques to create a sample.
Probability sampling is based on the fact that every member of a population has a
known and equal chance of being selected.
b) Non-Probability Sampling – It is a sampling method in which not all members of the
population have an equal chance of participating in the study, unlike probability
sampling. It is most useful for exploratory studies.
The sampling method used in the study is convenience sampling which is a technique of Non-
Probability Sampling. The sample size for the present study consisted of 150 respondents
whose responses have been collected through a questionnaire.
Convenience Sampling is where samples are selected from the population only because they
are conveniently available to the researcher. Researchers choose these samples just because
they are easy to recruit, and the researched did not consider collecting a sample that represents
the entire population.
It is the most common non-probability sampling method, because of its speed, cost-
effectiveness, and ease of availability of the sample.
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CHAPTER – 4
DATA ANALYSIS
AND
INTERPRETATION
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4.1 Introduction
Data Analysis and Interpretation can be defined as a process of assigning meaning to the
information that has been collected and determining the conclusions, significance and,
implications of the findings.
Fig: 1.1
Interpretation –
Out of total respondents 71.3% are males and 28.7% are females. Hence, major proportion
of the respondents are males.
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Age
Fig: 1.2
Interpretation –
57.3% of the respondents fall into 18-25 age group while the rest 42.7% of the respondents
fall into other three groups. Hence, majority of the respondents are of young population.
Occupation
Fig: 1.3
Interpretation –
From the above figure, we can see that majority of the respondents are students with 40.7%,
rest of the respondents belong to the other categories.
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Income
Fig: 1.4
Interpretation –
From the above figure, we can see that 32.7% of the respondents earn more than 10,00,000
per annum.
Customer’s Behaviour
Do you own car?
Fig: 1.5
Interpretation –
From the above presentation we can see that majority of the respondents do own a car.
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What do you look for in a car?
Fig:1.6
Interpretation –
64.7% of the respondents see overall performance of the car after that 13.3% of the
respondents go for high pickup in a car.
Do you check pollution emission levels before buying a car?
Fig: 1.7
Interpretation –
With 63.3%, the majority of the respondents do check pollution emission levels before
buying a car.
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Do you have a Tata Motors car?
Fig: 1.8
Interpretation –
Only a small portion of the respondents (16%) have Tata Motors car.
Have you ever purchased a Tata Motors car?
Fig: 1.9
Interpretation –
From the above figure we can see that of the total respondents only 35.3% have purchased
a Tata Motors car.
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Are you willing to buy a Tata Motors car?
Fig: 1.10
Interpretation –
Majority of the portion are not willing to buy a Tata Motors car, only 41.3% of the
population are willing. Further questions are answered by 62 respondents as the rest were
not willing to buy a Tata Motors car.
Section B
What type of Tata Motors car are you willing to buy?
Fig: 1.11
Interpretation –
Majority of the population are willing to buy an SUV car with 46.8% of the respondents.
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Where do you get to know about Tata Motors car?
Fig: 1.12
Interpretation –
From the above presentation, majority of the population with 53.2% get to know about Tata
Motors car from their friends and relatives.
What do you like the most about Tata Motors?
Fig: 1.13
Interpretation –
Majority of the population with 46.8% likes Tata Motors car because of its reliability factor.
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If you are to buy a new Tata Motors car, how much are you willing to spend?
Fig: 1.14
Interpretation –
Majority of the respondents with 54.8% are willing to spend 5,00,000-10,00,000 to buy a
new Tata Motors car whereas only 8% of the respondents would like to spend only up to
5,00,000 on a new Tata Motors car.
What mileage would you like to go for?
Fig: 1.15
Interpretation –
From the above representation we can see that 45.2% of the respondents would like to go
for 20-25 kmpl mileage whereas only 19.4% would go for 10-15 kmpl mileage.
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Which of the following do you prefer?
Fig: 1.16
Interpretation –
Majority of the respondents with 40.3% would prefer to buy petrol car whereas 27.4%
would prefer CNG car.
Which of the following motivated you to buy a Tata Motors car?
Fig: 1.17
Interpretation –
Majority of the people were motivated by their family and friends to buy a Tata Motors car
with 46.8%, after that people bought a Tata Motors car on their own choice. Advertisement
motivated only 8.1% of the people to buy a Tata Motors car.
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Why do you prefer Tata Motors over other brands?
Fig: 1.18
Interpretation –
More than half of the population prefers Tata Motors car over other brands because of its
brand image, after that they prefer it because of its low maintenance with 22.6% and only
4.8% of the respondents prefers it because of its fuel efficiency.
Would you recommend others to buy Tata Motors?
Fig: 1.19
Interpretation –
82.3% of the respondents would recommend others to buy a Tata Motors car whereas only
17.7% of the population would not.
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CHI SQUARE TEST
Problem: Determine the relation between age and factors affecting buying behaviour of the
consumers.
Hypothesis Testing:
H0: There is no relation between age and factors affecting buying behaviour
Hα: There is relation between age and factors affecting buying behaviour
Friends and Social Own Row
Age Family Class Choice Advertisement Ratings Total
18-25 10 1 10 3 5 29
25-35 14 3 4 3 2 26
35-45 4 1 1 0 0 6
Above 45 1 0 0 0 0 1
Column
Total 29 5 15 6 7 62
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Decision Rule:
If chi square statistics is greater than tabulated value, reject null hypothesis.
If P value is less than α, reject null hypothesis.
Inference:
Since, chi square statistics (9.38180505) is less than tabulated value (21.03), therefore accept
null hypothesis.
Since, P value (0.96658622) is greater than α (0.05), therefore accept null hypothesis.
Conclusion:
There is no relation between age and factors affecting buying behaviour.
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CHAPTER – 5
FINDINGS AND
SUGGESTIONS
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5.1 Findings
Most of the respondents were from an age group 18-25 years.
Most of the respondents are students.
Most of the people see the overall performance of a car before buying it.
More than half of the population check pollution emission levels of a car before
purchasing it.
Majority of the population do not own a Tata Motors car, more than half of the
people have never bought it, and more than half of the population are not even
willing to buy it.
Majority of the population who are willing to buy a Tata Motors car, would like to
buy an SUV car.
People get to know about Tata Motors car through their friends and relatives.
People like Tata Motors because of its reliability factor.
If people want to buy a Tata Motors car, they are willing to spend between 5,00,000-
10,00,000.
Most of the people like to buy petroleum cars with a mileage of 20-25kmpl.
People are motivated by their friends and family to purchase a Tata Motors car.
More than half of the population buys a Tata Motors car because of its brand image
which states that brand image plays an important role while making a buying
decision.
People would recommend others to buy a Tata Motors car.
Through chi square test we found that there is no relation between the age of the
consumers and the factors that influences their buying behaviour.
5.2 Suggestions
Tata Motors should target on family factor in their advertisements as friends and family
motivates one to buy their product.
Tata Motors should use social media more for advertising as our population is young
and they are the most active age group on social media networks. It will help them gain
potential buyers.
They should produce cars of a range between 5,00,000-10,00,000 as people are willing
to spend that much amount on buying a Tata Motors car.
Marketers should focus on other factors which influence consumer buying behaviour
as age does not play a significant role in buying behaviour.
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CHAPTER-6
CONCLUSION
AND
LIMITATIONS
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6.1 Conclusion
Consumer buying behaviour refers to the study of customers and how they behave while
deciding to buy a product that satisfies their needs. It is a study of the actions of the consumers
that drive them to buy and use certain products. Study of consumer buying behaviour is most
important for the marketers as they can understand the expectations of the consumers. It helps
to understand what makes a consumer to buy a product. It is important to assess the kind of
products liked by the consumers so that they can release it to the market. Marketers can
understand the likes and dislikes of the consumers and design base their marketing efforts based
on the findings.
Consumer buying behaviour studies about the various situations such as what do consumers
buy, why do they buy, when do they buy, how often does consumers buy, for what reason do
they buy, and much more. Understanding consumer behaviour is essential for a company to
find success for its current products as well as new product launches. Every consumer has a
different thought process and attitude towards buying a particular product. If a company fails
to understand the reaction of a consumer towards a product, there are high chances of product
failure. Due to the changing fashion, technology, trends, living style, disposable income, and
similar other factors, consumer behaviour also changes. A marketer has to understand the
factors that are changing so that the marketing efforts can be aligned accordingly.
Consumer behaviour depends upon several factors namely: cultural, social, psychological,
personal. In the case of Tata Motors car, the consumers are motivated to buy their product
because of its brand image and their family convinces them to purchase Tata Motors because
of its reliability factor.
6.2 Limitations
Due to time restriction the research was restricted to a sample of only 150 respondents.
The opinions of the sample may or may not depict the exact opinions of the total
population.
The study focuses on limited set of variables.
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https://www.tatamotors.com/wp-content/uploads/gms2018/tata-motors-
profile-english.pdf
https://pe.tatamotors.com/knowus/vision-mission-corevalues.php
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Annexure
33
34
35
36
37
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