A study on the consumer perception of hyundai santro cars in salem city

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A STUDY ON THE CONSUMER PERCEPTION OF HYUNDAI
SANTRO CARS IN SALEM CITY

By

Reg.No.

of

KONGU ENGINEERING COLLEGE,
Perundurai, Erode – 638 052.

A PROJECT REPORT
Submitted to the
FACULTY OF MANAGEMENT SCIENCES

In partial fulfillment of the requirements
for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

June, 2005


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BONAFIDE CERTIFICATE

Certified that this project report titled “A STUDY ON THE CONSUMER
PERCEPTION OF HYUNDAI SANTRO CARS IN SALEM CITY” is the bonafide
work of ........................................... who carried out the research under my
supervision. Certified further, that to the best of my knowledge the work reported
herein does not form part of any other project report or dissertation on the basis
of which a degree or award was conferred on an earlier occasion on this or any
other candidate.

Supervisor Director

Viva – voce held on __________

Internal Examiner External Examiner


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ABSTRACT

The study entitled “Consumer perception of Hyundai Santro cars in
Salem City” was conducted in Salem City with special reference to HYUNDAI
MOTORS INDIA LIMITED. The study was undertaken to know the perception
level of the Santro car users and other b-segment car users towards various
brands like Tata Indica, Maruti Wagon – R, Maruti Zen, Maruti Alto in relation to
perception on various aspects. The survey was conducted by collection from
various consumers. Many have not preferred to buy Santro cars because of
perceptual error on cost and size aspects, so proper steps should be taken to
improve the awareness of Santro cars. The respondents who are using Santro
cars are mostly satisfied. The performance to some of the previous version
Santro Cars are not good.

The expectations of the consumers are quite high. Many expect high
design, comfort, and mileage in lower cost involvement. The experience of the
consumers and their rating of the cars are moderate, proper awareness
campaigns should be given importance. As the study was limited to Salem City
only, it was possible for the scholar to understand the demographic profiles and
consumer perception.

The perception of individual consumers depends mainly on annual
income, expected and actual performance of the product as well as external
influencing factors like society and etc., Consumers prefer to advice of others
also. Consistency in performance, level of satisfaction also has a major impact.
The study of consumer perception towards Santro Cars gives an idea of
individual preference towards the product based on various influencing factors
like price, group influences, social influences and Psychological influences. And


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also gives an idea on rating of product done by the consumers generally etc,
particularly relating to Salem City.

The main objectives of the study were to analyse the position of the
Santro cars and other B-Segment cars (include Maruti Wagon-R, Maruti Zen,
Maruti Alto and Tata Indica) in the consumers mind, to measure the perception
level with regard to price, maintenance cost, Service, advertisement impact,
performance, safety, mileage, comfort, design and etc., to know the reason for
preferring the particular brand over the other brands and finally to receive
suggestions for the further improvement.

The type of Research undertaken for the study was Descriptive
research and the sampling design was Stratified Random Sampling.

Both primary and secondary data were collected by interview method
and referring to the company manual and the website of the company. The
statistical tools used in the study were Percentage analysis, Chi Square Analysis.

The limitation of the study was that the data provided by the
respondents may be false at times and it is confined to 350 consumers only.


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ACKNOWLEDGEMENT

If words are considered as symbols of approval of acknowledgement
then let the words play the heralding role of expressing my gratitude to all those
who have helped me directly (or) indirectly in this project.

I express my sincere gratitude to our honourable Correspondent
....................................................., and other college trust members for allowing
me to develop the project in their institution.

I express my sincere thanks to our Principal .......................................

It gives me great pleasure to acknowledge my sincere thanks to
................................................., Director of Department of Management Studies,
Kongu Engineering College, Perundurai for his valuable advice for the
completion of this project.

I am greatly privilege to express my faculty guide
....................................., Department of Management Studies, Kongu Engineering
College, Perundurai for his encouragement and guidance for the completion of
this project.

I wish to express my deep sense of gratitude to ........................... for
offering me this project and
.................................................................... ....................... for their timely help
and guidance. And ....................................... ........................................... for his
timely help and guidance.

I express my sincere thanks to all my friends and family members for
their constant support, blessings and co-operation, which they gave me at all
steps of this project work.


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CONTENTS

Chapter Page
Particulars
No. No.
LIST OF TABLES ix
LIST OF FIGURES xi
1 INTRODUCTION
1.1 Indian Automotive Industry -Industry Profile 1
1.2 Company Profile 5
2 OBJECTIVES, SCOPE & LIMITATIONS OF
THE STUDY
2.1 Objectives of the study 14
2.2 Scope of the study 15
2.3 Limitations of the Study 15
3 RESEARCH METHODOLOGY
3.1 Research Design 16
3.2 Sampling Design 20
3.3 Statistical Tools 22
4 ANALYSIS AND INTERPRETATION
4.1 Analysis of data 23
4.2 Chi-square Analysis 42
5 FINDINGS, SUGGESTIONS AND
CONCLUSION
5.1 Findings of the study 55
5.2 Suggestions and Recommendations 57
5.3 Conclusion 60
APPENDIX
REFERENCES


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LIST OF TABLES

TABLE PARTICULARS PAGE
NO. NO.
4.1.1 Age of the respondents 23
4.1.2 Gender of the respondents 24
4.1.3 Marital status of the respondents 25
4.1.4 Educational qualification of the respondents 26
4.1.5 Monthly income level of the respondents 27
4.1.6 Family size of the respondents 28
4.1.7 Year of usage of santro car and other cars by the 29
respondents
4.1.8 Driving kilometre per day 30
4.1.9 Influencing factors while purchasing the santro and other 31
cars
4.1.10 Influencing person to prefer santro and other cars 32
4.1.11 Seen the dealer’s advertisement of the santro car 33
4.1.12 Opinion about the advertisement of the santro car 34
4.1.13 Level of perception about the performance of the car 35
4.1.14 Maintenance handling system 36
4.1.15 Reminder of the maintenance time 37
4.1.16 Opinion about the service offered by dealer 38
4.1.17 Respondents satisfaction level on santro and Other cars 39
4.1.18 Level of brand loyal customers in santro and other cars 40
4.1.19 Recommendations on santro and other cars to friends 41
and relatives
4.2.1 Age and customer perception towards santro cars 42
( Two-way table )
4.2.2 Gender and customer perception towards santro cars 43
(Two-way table)


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TABLE PARTICULARS PAGE
NO. NO.
4.2.3 Educational qualification and customer perception 44
towards santro cars ( Two-way table )
4.2.4 Monthly income and customer perception towards santro 45
cars (Two-way table)
4.2.5 Family size and customer perception towards santro cars 46
(Two-way table )

4.2.6 Period of usage and customer perception towards santro 47
cars ( Two-way table )
4.2.7 Age and customer perception towards other cars 48
(Two-way table )
4.2.8 Gender and customer perception towards other cars 49
(Two-way table )
4.2.9 Educational qualification and customer perception 50
towards other cars ( Two-way table )
4.2.10 Monthly income and customer perception towards other 51
4.2.11 Family size and customer perception towards other cars 52
( Two-way table )
4.2.12 Period of usage and customer perception towards other 53
4.2.13 Comparison of overall perception level of the respondents 54
towards various attributes of santro cars and other cars


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LIST OF FIGURES

FIGURE PARTICULARS PAGE
NO. NO.
4.1.1 Age of the respondents 23
4.1.2 Gender of the respondents 24
4.1.3 Marital status of the respondents 25
4.1.4 Educational qualification of the respondents 26
4.1.5 Monthly income level of the respondents 27
4.1.6 Family size of the respondents 28
4.1.7 Year of usage of Santro car and other cars by the 29
respondents
4.1.8 Driving kilometre per day 30
4.1.9 Influencing factors while purchasing the Santro and other 31
cars
4.1.10 Influencing person to prefer Santro and other cars 32
4.1.11 Seen the dealer’s advertisement of the Santro car 33
4.1.12 Opinion about the advertisement of the Santro car 34
4.1.13 Level of perception about the performance of the car 35
4.1.14 Maintenance handling system 36
4.1.15 Reminder of the maintenance time 37
4.1.16 Opinion about the service offered by dealer 38
4.1.17 Respondents satisfaction level on Santro and Other cars 39
4.1.18 Level of brand loyal customers in Santro and other cars 40
4.1.19 Recommendations on Santro and other cars to friends 41
and relatives


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CHAPTER 1

INTRODUCTION

1.1 INDIAN AUTOMOTIVE INDUSTRY – INDUSTRY PROFILE

The far-reaching economic reforms undertaken since 1991 have
unleashed the growth potential of the Indian economy. A series of “Second
Generation Reforms” aimed at deregulating the country and stimulating foreign
investment have moved India firmly into the front ranks of the rapidly growing
Asia Pacific region.

The automotive Industry in India is now working in terms of the
dynamics of an open market. Many joint ventures have been set up in India with
foreign collaboration, both technical and financial with leading global
manufacturers. The Government of India is keen to provide a suitable economic
and business environment conducive to the success of the established and
prospective foreign partnership ventures.

The joint venture list indicates a wide variation ranging from 10% to
100%, i.e., wholly owned foreign subsidiaries. The equity participation is not
regulated by Government but is market driven. It depends upon the market
perceptions of the joint venture partners and their business perceptions primarily
in terms of technological, financial and market strengths of the partners. The
setting up of joint ventures has also led to enhanced capacity creation in the


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vehicle sector, particularly in the passenger car sector and the additional capacity
is expected to mount by one million passenger cars in the next 4-5 years.

Concentrated efforts are going on in India for inducting and absorbing
the latest technology and upgrading the quality of products to an international
level and a partner search mission is on. Indian firms are on the look out for Joint
Ventures and Technology Transfers specializing in niche technology and to
complement their range of products as well as bench marking with the world’s
latest and the best.

1.1.1 INSIGHT ON INDIAN AUTO INDUSTRY

DEMAND FORECASTS

The projected figures from 2004-05 to 2009-10 in 000's are given in the
table below:
Particulars 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Cars 796 876 960 1060 1166 1283

India's potential in both economic and population terms and the effect it
will have on the auto industry in the years to come. With a well-developed
components industry and a production level of one million four-wheeled vehicles
a year, plus a further five million two- and three-wheelers, India came to be
recognized as a potential emerging auto market a few years back.

But now, it is also the fastest growing auto market globally. And
judging by the growth rate of auto sales recorded in 2004, and the slew of new
launches poised for this year, it seems that India has finally arrived in the big
league of the Asian car markets.


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With almost 24 percent growth in car sales in 2004, India has emerged
as the fastest-growing car market in the world, outstripping China's estimated
13.7 percent growth last year.

Sales of passenger vehicles crossed the million-figure mark (1,044,597
units) in 2004, making India the fastest growing in this segment. The growth rate
of other segments was equally impressive. Sales of commercial vehicles grew at
28 percent, two-wheelers at 17 percent, three-wheelers at 13 percent and
exports went up by 36 percent.

India's total auto tally in 2004, however, is nowhere close to China,
which sold 2.2478 million units in 2004. But that was 52.7 percent points lower
than the 66.4 percent growth in 2003. Sales of cars started dropping in April last
year and even posted negative growth in September and October, and then
recovered a bit in the last two months of the year.

"There is no doubt that India has lately emerged as one of the fastest
growing auto markets in the world," and one of the main reasons behind that is
the fact that the car market is also undergoing significant structural shifts."

One such major shift is easy finance. Over 80 percent of the cars sold
in the country now are financed, thanks to the continuously sliding interest rates
for the past five years. Consequently, car upgrades have become frequent and
multiple ownership a norm.
A booming market then, has expectedly changed the perception of
foreign investors, for whom the Indian market, or rather the lack of it, was a


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laughing stock not so long ago. "The past two years have completely changed
the way the world views India," says Rajesh Jejurikar, vice president of Indian
auto major Mahindra and Mahindra. "Now, everybody wants to be here."

The country is also getting all the variety and attention that were so far
reserved for mature car markets. Creating a landmark of sorts, 35 new car
models will hit Indian roads this year, including 11 "super luxury" cars from
celebrated brands like Audi, BMW, Ferrari and Alfa Romeo.

The next three to four years could see the industry pump in as much
as $5 billion, "out of which foreign direct investment would be close to $3 billion --
higher than ever,"

The report added that in line with the industry's projection, India would
add a million cars a year from next year. Other projected growth rates indicate
that total demand for passenger vehicles in 2007 will be around 2.24 million units
as against 1.87 million units of installed capacity.

According to the Society of Indian Automobile Manufacturer's
projections, domestic sales of passenger vehicles (cars and utility vehicles) are
set to grow at 20 percent over the next two years, given the current GDP growth,
and exports at 40 percent.

1.2 COMPANY PROFILE


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1.2.1 ABOUT HYUNDAI MOTORS INDIA LIMITED

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of
Hyundai Motor Company, South Korea and is the second largest and the fastest
growing car manufacturer in India. HMIL presently markets over 25 variants of
passenger cars in six segments. The Santro in the B segment, Getz in the B+
segment, the Accent in the C segment, the Elantra in the D segment, the Sonata
in the E segment and the Terracan in the SUV segment.

The company recorded combined sales of 215,630 during calendar
year 2004 with a growth of 43% over year 2003. HMIL is India’s fastest growing
car company having rolled-out over 700,000 cars in just over 70 months since its
inception and is the largest exporter of passenger cars with exports of over Rs.
1,700 crores. HMIL has recorded a staggering growth of 149% in exports over
the year 2003.

HMIL’s fully integrated state-of-the-art manufacturing plant near
Chennai boasts some of the most advanced production, quality and testing
capabilities in the country. HMIL has announced plans for its second plant, which
will produce 150,000 units per annum, raising HMIL’s total production capacity to
400,000 per annum by 2007. The plant will be built on a 2.1 million square meter
site adjacent to the existing facility with an investment of $450-$500 million on its
new integrated facility. HMIL plans to expand its dealer network, which will be
increased from 146 to 180 this year. And with the company’s greater focus on the
quality of its after-sales service, HMIL’s service network will be expanded to over
1,000 in 2005.
HMIL has many awards in its bouquet. It was declared “The Star
Company” amongst unlisted companies by Business Standard this year. Getz got
the coveted “Car of the Year 2005” award twice over. It was declared a winner by

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both Business Standard Motoring and CNBC-TV18 Autocar Auto awards.
Hyundai Elantra won the CNBC-TV18 Autocar “Best Value for Money” Car
Award.

HMIL has also been awarded the benchmark ISO 14001 certification
for its sustainable environment management practices.

ABOUT HYUNDAI MOTOR COMPANY

The parent company of HMIL is the Korean Car giant Hyundai Motor
Company (HMC), a part of the Hyundai Motor Group comprising Hyundai Motor
Company, Kia Motors, Hyundai Mobis and other affiliated companies, with a
combined turnover of over US$ 50 Billion. The Hyundai Motor Group with a
presence in over 185 countries and combined annual sales of over 3 million units
is one of the fastest growing auto manufacturers in the world.

Hyundai Motor and its sister concern Kia Motor achieved global sales
of over 3.16 million cars worldwide in 2004. The target for 2005 is an ambitious
3.7 million vehicles.

Hyundai is expanding its globalisation efforts with fresh investments in
China, the United States and Turkey, apart from India. It has emerged as one of
the largest car manufacturers in the world and is currently positioned at seventh
rank globally. The goal is to surge into the global top 5 by 2010.
HYUNDAI’S FULLY INTEGRATED MANUFACTURING CAPABILITIES


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The Press Shop

A computer controlled line that converts sheet metal to body panels of
high dimensional accuracy and consistency.

The Body Shop

A hi-tech line that builds full body shells from panels. Automated
robotic arms are used for intricate welding operations that ensure superior and
consistent build quality.

The Paint Shop

This is one of the most modern paint shops in the country and uses
the environment friendly water based process for superior and lasting exteriors. A
unique process management system followed here helps us deliver the most
extensive colour range, independent of minimum batch requirements, helping
customers get their preferred colour anytime.

The Aluminium foundry

Forges the engine cylinder blocks for our cars to exacting design
specifications.


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The Engine and Transmission Shop

One of the biggest engine shops in the country, this unit is equipped
with the most modern tooling and testing facilities to make a wide range of
engines in house.

The Plastic Extrusion Unit

Moulds the dashes, bumpers and other plastic components to perfect
fit and finish.

The Plastic Paint Shop

One of the very few manufacturing units in India to have this facility in-
house, Hyundai's plastic paint shop delivers a high grade finish on exterior plastic
components.

The Test Track

With comprehensive performance testing facilities like rattle testing
and ABS brake testing, this track is designed to meet pre-delivery (PDI)
certification standards to exacting Euro specifications.


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R&D FACILITIES

Hyundai and Kia together have R&D centres in the United States,
Europe, Japan apart from the global R&D headquarters at Ulsan, Korea.

The Hyundai Motor Group has recently dedicated an annual R&D
spend of close to US$ 2 Billion, up from US$ 1.2 Billion to enhance its thrust on
new product development and achieve global quality benchmarks by year 2005.
This includes the $30 Mn Hyundai-Kia Design and Technical Center in Irvive,
California.

FOCUS

The R&D team focuses on the development of new products and
technologies that include interior and exterior design changes, development
of new generation engines and alternate fuel systems, concept vehicles and
advanced passenger safety and comfort systems, in line with evolving
customer preferences across the globe. Recent successes of the team
include the development of the Hyundai patented Common Rail Direct
Injection (CRDi) engine in association with Detroit Diesel and the award
winning Fuel Cell Santa FE.

ENVIRONMENT MANAGEMENT

Hyundai Motor India has been awarded the benchmark ISO 14001
certification for its sustainable environment management practices. Living up to


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its commitment of providing global standards of qualityand process management
in India, Hyundai had put in place an Environment Management System (EMS)at
its manufacturing plant in Chennai right from its project stage. The certification
process was completed in a record time of 10 months. The assessment was
done by TUV SUDDEUTSCHLAND and covered areas like Awareness Training,
Technology Upgradation, Recycling, Waste Management and fulfilling
Government Regulations. HMI is also working on a backward integration
strategy that will support vendors of the company in implementing EMS.

The company has also been in the forefront of development of
environment friendly technologies like Hybrid Electric Vehicles (HEVs), and Fuel
Cell Electric Vehicles (FCEVs) and has been awarded the ISO 14001 certification
for all its three major plants in Ulsan, Asan and Jeonju in S.Korea.

SOCIAL RESPONSIBILITY

Hyundai, as a responsible corporate citizen is committed to
sustainable social development and the preservation of the environment. All the
company's key manufacturing units, including the Indian plant has the ISO 14001
certification for its Environment management practices. As a part of its social
responsibility programs, the company conducts various campaigns to spread
awareness of in-car safety and safe driving practices, particularly targeted
against drunken driving, speeding, etc.

As a part of its community development projects, the company has
adopted a few villages around its factory in Tamilnadu and has been working
towards the social and economic development of these villages, assisting them in
the areas of primary health care, education, basic amenities and employment
opportunities.


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HYUNDAI MOTORS INDIA ACCOMPLISHMENTS

- Hyundai Santro has topped the JD Power Asia Pacific Initial Quality
Study (IQS) that measures product quality for three years in a row
(Years 2000, 2001 and 2002)
- Hyundai Santro has topped the JD Power Asia Pacific APEAL study
that measures customer satisfaction for three years in a row (Years
2000, 2001 and 2002)
- Hyundai Accent has topped the JD Power Asia Pacific IQS for 2002
and the APEAL study for 2001 and 2002.
- Hyundai Santro is BS Motoring's 'Car of the Year' for 1999
- Hyundai Motor India has been awarded the 'Manufacturer of the Year'
by CNBC- Autocar India for two years in a row (2001 and 2002)
- Hyundai Motor India was adjudged the ‘Car Maker of the year’ at the
ICICI Bank – Overdrive awards 2003.

1.2.2 HYUNDAI PRODUCT PROFILE

SANTRO XING (B-Segment)

Santro Xing with it’s new aerodynamic styling, power-assisted
brakes, the advanced suspensions, the uniquely responsive technology is as
much a magnificent creation of our drive to delight you as much as a benchmark
in engineering excellence. Santro is being produced exclusively in India and the
Indian Xing will now drive the World.

GETZ (B+ Segment)


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The trendsetter. Hyundai Getz is all set to storm the Indian market.
The Euro-chic styling makes this car stand out. Its spacious interiors are
thoughtfully designed. The 1.3-litre SOHC engine delivers lively performance and
is also easy on fuel. Its computer engineered precisely tuned chassis, provides a
comfortable ride and nimble handling with class-leading safety features.

ELANTRA (D-Segment)

The New Elantra comes perfectly handy for all occasions. Speed,
agility and power come as standard equipment in Elantra. The design is a
culmination of European styling and delightful functionality.

TERRACAN (SUV Segment)

Hyundai's biggest, most powerful SUV yet. Wide, powerful stance,
sophisticated four-wheel independent suspension and generous cabin
dimensions. Terracan ensures you have an edge every time, everywhere.

SONATA (E-Segment)

Sonata’s sophistication really shines from all angles together with its
impressive rear view with its subtle curvature, fine details and unique rear
combination lamps.


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The Sonata is built like a fortress. The car body incorporates
numerous structural protection elements like, dual side impact beams, the energy
absorbing collapsible steering column, front and rear crumple zones, cross-bar
under the dashboard, engine sub-frame and reinforced bumpers together with
the ABS (Anti-locking Braking System), TCS (Traction Control System) and the
optional SRS airbag which provides maximum protection.

ACCENT VIVA CRDi (C-Segment)

The exhilarating performance of the Accent Viva is taken a step
further with the new Accent Viva CRDi. Besides the original semi-notchback 5-
door design, the Accent Viva CRDi boasts of the future-ready CRDi engine.
Which is amazingly silent for a diesel engine and low on vibration as well. It's
also surprisingly zippy and eco-friendly. Add to this a host of features such as
Power Steering, Power Windows (Front & Rear), Tilt-type Steering Wheel.


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CHAPTER 2

OBJECTIVES, SCOPE AND
LIMITATIONS OF THE STUDY

2.1 OBJECTIVES OF THE STUDY

This study is undertaken with the following objectives.

Ι To identify the various attributes of Santro cars and other cars that influences
on an individual’s choice among alternatives.

Ι To identify the attractiveness of the Santro advertisement.

Ι To identify the reason for the brand preference over the competing brands
and to find out the consumer perception on various attributes of the products.

Ι To identify the maintenance handling system adopted by the users.

Ι To find out the consumer satisfaction level on service provided by the dealers
and also towards their product.

Ι To identify the level of brand loyal customers.

Ι To identify the kinds of recommendations made towards the product to
others.


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2.2 SCOPE OF THE STUDY

 It helps the organisation to understand the consumer psychology on choosing
the product or service so that easily the product can be positioned.
 I
• t assesses the preference of choosing the Santro Car by the
respondents.
 The study helps us to know about the Customer perception towards Santro
Cars and other competing brands.
 It also helps to assess the real opinion and mindset of consumers and aids to
meet out their expectation in future in turn that will increases the volume of
sales.
 It helps the company to understand the efficiency of dealer service provided
to the consumers, so that it can create the root for further improvement.
 It identifies the usage and maintenance system adopted by the consumers so
that it helps the company to educate the customers further towards the
product usage and maintenance. So that it really creates an impact on
consumer perception towards the product.

2.3 LIMITATIONS OF THE STUDY

 The Survey was limited to Salem City only.

 The Study covers only five variants of competing brands that includes
Hyundai Santro, Tata Indica, Maruti Alto, Maruti Wagon R, Maruti Zen.

 The respondents were less interested in answering the questionnaire, as they
felt that it was an interruption to their regular work.

 The number of respondents was limited to 350 only.

 Some of the respondents are not open in giving their opinions. This is normal
in any field study.


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CHAPTER 3

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

It is a conceptual structure within which research should be
conducted. Thus the preparation of such a design facilitates research to be
as efficient as possible and will yield max information.

3.1.1 Research Objectives

Ι To study the perception of consumers towards the Santro and other
competing brands.

Ι To identify the influencing factors on individuals choice among the
alternatives.

Ι To analyse the interest of respondents in towards Santro cars and other cars.

Ι To know the reason for preferring the competitors brand (Other Brands).

Ι To identify the real opinion of Santro cars towards the consumers.


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3.1.2 Sources of Data

The task of collecting data begins after a research problem has been
defined and plan is chalked out. This study pertains to collection of data from
primary and secondary sources.

3.1.3 Primary Data

Data are collected for the first time for a specific purpose in mind
using the questionnaire method. Questionnaire through personal contact and
telephone calls.

3.1.4 Secondary Data

The data that already collected and published are referred through the
company sales guide and following websites.

www.hyundai.co.in
www.broadwaycarsonline.com

3.1.5 Type of Research


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Here in order to meet the research objectives, descriptive research
design is used.

3.1.5.1 Descriptive Research Design

Descriptive research design includes surveys and fact findings,
enquires of different kinds. The major purpose of Descriptive research is
description of state of affairs, as it exists at present. In social business research
we quiet often use the term Ex post facto research for descriptive studies.

The main characteristic of this method is that the researcher has no
control over the variable; he can only report what has happened or what is
happening. Most Ex post facto research projects are used for descriptive studies
in which the researcher seeks to measure such items, for example, frequency of
shopping, and consumer preferences on products or services.

Descriptive Research method will be applicable to the existing
problem. Here the study is conducted for a fact i.e, to know the “Customer
perception on Santro cars in Salem City”. So the process was conducted through
questionnaire.

3.1.5.2 Information required


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• Demographic profiles of the respondents
• Information on factors influencing respondents while choosing a
particular brand of car. Users maintenance handling system.
• On which brand the respondents are interested in and the reason why
they are stick on to the particular brand. Whether they will switch over
to other brands.

3.1.5.3 Instrument Design

Questionnaire Design

Designing and implementing the question is one of the most
interesting and challenging tasks of conducting research and analysis. This
questionnaire has revealed the importance of the above.

Questionnaire

This method of data collection is quiet popular particularly in case of
big enquiries. Private individuals are adopting it.

Research workers, private and public organisations and even by
government. In this method, a questionnaire is sent to the persons concerned
with the request to answer the questions and return the questionnaire. A


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questionnaire consists of number of questions printed or typed in a definite order
on a form.

The researcher has used questionnaire for the following purposes

• For identify the demographic profiles of the respondents.
• To study the interest and perception level towards the various
attributes of Santro cars compared to other cars.
• To know the maintenance handling system adopted by the users. To
identify the consumers opinion towards the advertisement of Santro
car and identifying the general satisfaction level on Santro and other
cars.

3.1.5.4 Research Plan

Data source : Primary and Secondary data
Research Approach : Survey method
Research Instrument : Questionnaire
Contact method : Direct – Personal interview / Telephone Calls
Sample size : 350

3.2 Sampling Design

A sample plan is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would adopt
in selecting items for the sample.


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After deciding the research approach and instrument the next stage is
to design a sampling plan. The selected respondents from the total population
constitute what is technically called a “sample” and the selection process is
called “Sampling technique”. The sampling plan calls for the following decisions
such as :-

1. Population
2. Sampling Frame
3. Sampling Unit
4. Sampling method
5. Sample Size

3.2.1 Population

The first step in the sampling process is the definition of the
population, which can be defined in terms of elements, sampling units, extend
and time. For the present study undertaken the population was consumers who
owning/using B-Segment car that includes only Hyundai Santro, Tata Indica,
Maruti Zen, Maruti Wagon – R, Maruti Alto.

3.2.2 Sampling Frame

A sample frame is a means of representing the elements of the
population. The sample frame made use of in this study is consumer database
lists.


22

3.2.3 Sampling Unit

It goes a head with “who is to be surveyed”. Here the sampling unit is
each individual user of B-Segment cars, restricted to Hyundai Santro, Tata
Indica, Maruti Alto, Maruti Zen, Maruti Wagon R.

3.2.4 Sampling Method

Stratified Random Sampling method in Probability Sampling is used in
this study.

3.2.5 Sample size

The Sample size selected for the survey is 350. The sample size
determination was purely by intuition.

3.3 STATISTICAL TOOLS

To analyze the data the following tools were applied:

 Percentage Analysis

 Chi square Test


23

CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

4.1 ANALYSIS OF DATA

TABLE 4.1.1
AGE LEVEL OF THE RESPONDENTS

S. SANTRO Other Cars
No. Age Level No. of % No. of %
Respondents Respondents
1 Upto 30 yrs. 24 32.9 49 17.7
2 31 – 40 yrs. 24 32.9 82 29.6
3 Above 40 yrs. 25 34.2 146 52.7

Total 73 100.0 277 100.0

From the above table it is found that, 34.2% of the respondents using
Santro cars and 52.7% of the respondents using other cars belong to age group
of Above 40 years.

FIG. 4.1.1
AGE LEVEL OF THE RESPONDENTS

60
52.7
50
PERCENTAGE

40
32.9 32.9 29.6 34.2
Santro
30
Other Cars
20 17.7

10

0
Upto 30 yrs. 31 – 40 yrs. Above 40 yrs.


24

TABLE 4.1.2

GENDER OF THE RESPONDENTS

S. SANTRO Others
No. Gender No. of % No. of %
1 Male 45 61.6 257 92.8

2 Female 28 38.4 20 7.2

Total 73 100.0 273 100.0

From the above table it is identified that, in Santro cars most of the
respondents (61.6%) are Male and in other cars most of the respondents (92.8%)
are Female.

FIG. 4.1.2
GENDER OF THE RESPONDENTS

92.8
100
90
80
61.6
PERCENTAGE

70
60
Santro
50 38.4
Other Cars
40
30
20 7.2
10
0
Male Female


25

TABLE 4.1.3

MARITAL STATUS OF THE RESPONDENTS

S. SANTRO Others
No. Marital Status No. of % No. of %
1 Married 62 84.9 242 87.4

2 Unmarried 11 15.1 35 12.6

Total 73 100.0 277 100.0

respondents (84.9%) are Married and in other cars most of the respondents
(87.4%) are also Married.

FIG. 4.1.3
MARITAL STATUS OF THE RESPONDENTS

84.9 87.4
90
80
70
PERCENTAGE

60
50 Santro
40 Other Cars
30 15.1
12.6
20
10
0
Married Unmarried


26

TABLE 4.1.4

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

S. Educational SANTRO Others
No. Qualification No. of % No. of %
1 High School 23.3 58
17 20.9
2 Graduates 38.4 121
28 43.7
3 Post Graduates 38.4 98
28 35.4
Total 73 100.0 277 100.0

respondents (38.4%) are graduates, (38.4%) are Post Graduates and in other
cars most of the respondents (43.7%) are graduates.

FIG. 4.1.4
EDUCATIONAL QUALIFICATION OF THE
RESPONDENTS
43.7
45 38.4
38.4
40 35.4
35
PERCENTAGE

30
23.3
25 20.9
20 Santro
15 Other Cars
10
5
0
High School Graduates Post
Graduates


27

TABLE 4.1.5

MONTHLY INCOME LEVEL OF THE RESPONDENTS

S. SANTRO Others
No. Monthly Income level No. of % No. of %
1 Upto Rs.15,000 13 17.8 19.9
55
2 Rs. 15,001 – Rs.20,000 26 35.6 24.9
69
3 Rs. 20,001 – Rs.25,000 18 24.7 26.4
73
4 Above Rs. 25,000 16 21.9 28.8
80
Total 73 100.0 277 100.0

respondents (35.6%) are under the income category of Rs. 15001- 20000 and in
other cars most of the respondents (28.8%) earning are in the income range
above Rs. 25000.

FIG. 4.1.5
MONTHLY INCOME LEVEL OF THE RESPONDENTS

40
35.6
35
30 28.8
26.4
PERCENTAGE

24.9 24.7
25 21.9
19.9 Santro
20 17.8
Other Cars
15
10
5
0
Upto Rs. 15,001 Rs. 20,001 Above Rs.
Rs.15,000 – Rs.20,000 – Rs.25,000 25,000


28

TABLE 4.1.6

FAMILY SIZE OF THE RESPONDENTS

S. SANTRO Others
No. Family Size No. of % No. of %
1 Upto 3 members 16 21.9 70 25.3

2 4-5 members 34 46.6 166 59.9

3 Above 5 members 23 31.5 41 14.8

Total 73 100.0 277 100.0

respondents (46.6%) are having their family size of 4-5 members and in other
cars most of the respondents (59.9%) are also having their family size of 4-5
members.

FIG. 4.1.6
FAMILY SIZE OF THE RESPONDENTS
59.9
60

50 46.6
PERCENTAGE

40
31.5
30 25.3
21.9 Santro
Other Cars
20 14.8

10

0
Upto 3 4-5 members Above 5
members members


29

TABLE 4.1.7

YEAR OF USAGE OF SANTRO CAR AND OTHER CARS BY THE
RESPONDENTS

No. Using Years No. of % No. of %
1 Upto 3 years 28 38.4 103 37.2
2 4 - 5 years 20 27.4 63 22.7
3 Above 5 years 25 34.2 111 40.1
Total 73 100.0 277 100.0

respondents (38.4%) are using the car upto 3 years and in other cars most of the
respondents (40.1%) are using the car above 5 years.

FIG. 4.1.7
YEAR OF USAGE OF SANTRO CAR AND OTHER CARS BY THE
RESPONDENTS

45 38.4 37.2 40.1
40 34.2
35 27.4
PERCENTAGE

30 22.7
25 Santro
20 Other Cars
15
10
5
0
Upto 3 years 4-5 years Above 5 years


30

TABLE 4.1.8

DRIVING KILOMETRE PER DAY

No. Kilometer No. of % No. of %
1 Less than 10 km. 5 6.8 13 4.7

2 10 – 25 km 13 17.8 57 20.6

3 25 – 50 km 31 42.5 111 40.1

4 50 – 80 km 10 13.7 52 18.8

5 Above 80 km 14 19.2 44 15.9

Total 73 100.0 277 100.0

respondents (42.5%) are driving 25-50km per day and in other cars most of the
respondents (40.1%) are also driving 25-50 km per day.

FIG. 4.1.8
DRIVING KILOMETRE PER DAY

45 42.5
40.1
40
35
PERCENTAGE

30
25 20.6
17.8 18.8 19.2 Santro
20
15.9 Other Cars
15 13.7
10 6.8
4.7
5
0
Less than 10 – 25 25 – 50 50 – 80 Above 80
10 km. km km km km


31

TABLE 4.1.9

INFLUENCING FACTORS WHILE PURCHASING THE SANTRO
AND OTHER CARS

No. Influencing Factor No. of % No. of %
Responses Responses
1 Price 2 0.8 85 12.1
2 Brand name 43 17.3 76 10.8
3 Comfort 22 8.9 36 5.1
4 Safety 12 4.9 26 3.7
5 Design 36 14.5 68 9.7
6 Size 41 16.5 86 12.2
7 Mileage 13 5.2 35 5.0
8 Performance 48 19.4 102 14.5
9 Maintenance Cost 28 11.3 165 23.4
10 Others 3 1.2 25 3.6
Total 248 100.0 704 100.0

respondents (19.4%) are influenced by performance and in other cars most of
the respondents (23.4%) are influenced by low maintenance cost.

CHART FIG. 4.1.9
INFLUENCING FACTORS WHILE PURCHASING SANTRO CARS AND
OTHER CARS
25 23.4
19.4
20 17.3
PERCENTAGE

16.5
14.5 14.5
15 12.1 10.8 12.2
8.9 9.7 11.3
10
5.1 5.2 5
4.9 3.6
5 3.7
0.8 1.2
0
Safety

Size

Maintenance
Mileage
Price

Comfort

Others
Brand name

Design

Performance

Cost

Santro Other Cars


32

TABLE 4.1.10

INFLUENCING PERSON TO PREFER SANTRO AND OTHER CARS

No. Influencing Person No. of % No. of %
1 Dealers 9 12.3 38 13.7

2 Family Members 7 9.6 25 9.0

3 Friends & Relations 5 6.9 8 2.9

4 Self 52 71.2 206 74.4

Total 73 100.0 277 100.0

respondents (71.2%) are preferred the car by self and in other cars most of the
respondents (74.4%) are also preferred the car by self.

FIG. 4.1.10
INFLUENCING PERSON TO PREFER SANTRO AND
OTHER CARS

74.4
80 71.2
70
60
PERCENTAGE

50
40 Santro
30 Other Cars
20 12.3 13.7 9.6 9 6.9
10 2.9
0
Dealers Family Friends & Self
Members Relatives


33

TABLE 4.1.11

SEEN THE DEALER’S ADVERTISEMENT OF THE SANTRO CAR

No. Opinion No. of % No. of %
1 Yes 50 68.5 99 35.7

2 No 23 31.5 178 64.3

Total 73 100.0 277 100.0

respondents (68.5%) have seen the dealer’s advertisement and in other cars
most of the respondents (64.3%) have not seen the dealer’s advertisement.

FIG. 4.1.11
SEEN THE DEALER’S ADVERTISEMENT OF THE
SANTRO CAR
68.5
64.3
70
60
PERCENTAGE

50
35.7
31.5
40 Santro
30 Other Cars

20
10
0
Yes No


34

TABLE 4.1.12

OPINION ABOUT THE ADVERTISEMENT OF THE SANTRO CAR

No. Opinion No. of % No. of %
1 Highly Attractive 5 10.0 16 16.2

2 Attractive 35 70.0 58 58.5

3 Moderately Attractive 9 18.0 25 25.3

4 Not Attractive 1 2.0 0 0

Total 50 100.0 99 100.0

respondents (70.0%) have opined that the advertisement is attractive and in
other cars most of the respondents (58.5%) have opined as attractive.

FIG. 4.1.12
OPINION ABOUT THE ADVERTISEMENT OF THE
SANTRO CAR
70
70
58.5
60
PERCENTAGE

50
40
25.3 Santro
30
18 Other Cars
20 16.2
10
10 2 0
0
Highly Attractive Moderately Not
Attractive Attractive Attractive


35

TABLE 4.1.13

LEVEL OF PERCEPTION ABOUT THE PERFORMANCE OF THE CAR

Level of Perception No. of % No. of %
No. Respondents Respondents
1 Low Level 0 0 91 32.9

2 Medium Level 29 39.7 111 40.1

3 High Level 44 60.3 75 27.1

Total 73 100.0 277 100.0

respondents (60.3%) are high level perception and in other cars most of the
respondents (40.1%) are having medium level perception.

FIG. 4.1.13
LEVEL OF PERCEPTION ABOUT THE PERFORMANCE
OF THE SANTRO CAR

70
60.3
60

50
PERCENTAGE

40.1
39.7
40 Santro
32.9
27.1 Other Cars
30

20

10
0
0
Low Level Medium Level High Level


36

TABLE 4.1.14

MAINTENANCE HANDLING SYSTEM

No Maintenance Time No. of % No. of %
Respondent Respondent
. s s
1 Through scheduled maintenance 71 97.3 272 98.2

2 As problem arise 2 2.7 3 1.1

3 Postpone as long as possible 0 0 2 0.7

4 Others 0 0 0 0

Total 73 100.0 277 100.0

respondents (97.3%) are going for scheduled maintenance and in other cars
most of the respondents (98.2%) are also going for scheduled maintenance.

FIG. 4.1.14
MAINTENANCE HANDLING SYSTEM

97.3 98.2
100
90
80
PERCENTAGE

70
60
50
Santro
40
Other Cars
30
20
2.7 1.1 0 0.7 0 0
10
0
Through As problem Postpone as Others
scheduled arise long as
maintenance possible


37

TABLE 4.1.15

REMINDER OF THE MAINTENANCE TIME

No Reminder No. of % No. of %
. s s
1 Automobile Dealers Reminder 22 31.0 133 48.8

2 Mechanic Shop Reminder 1 1.4 7 2.6

3 Personal Records 46 64.8 131 48.2

4 Others 2 2.8 1 0.4

Total 71 100.0 272 100

respondents (64.8%) are getting their reminders of the maintenance time through
personal records and in other cars most of the respondents (48.8%) are getting
reminders of the maintenance time through automobile dealers.

FIG. 4.1.15
REMINDER OF THE MAINTENANCE TIME

70 64.8

60 48.2
48.8
PERCENTAGE

50
40 31
30 Santro
Other Cars
20
10 1.4 2.6 2.8 0.4

0
Automobile Mechanic Personal Others
Dealers Shop Records
Reminder Reminder


38

TABLE 4.1.16

OPINION ABOUT THE SERVICE OFFERED BY DEALER

No Opinion No. of % No. of %
. s s
1 Excellent 4 5.5 16 5.8

2 Very Good 50 68.5 171 61.7

3 Average 18 24.7 88 31.8

4 Below Average 1 1.4 2 0.7

Total 73 100.0 277 100.0

respondents (68.5%) have opined that service is very good and in other cars
most of the respondents (61.7%) have opined that service is very good.

FIG. 4.1.16
OPINION ABOUT THE SERVICE OFFERED BY DEALER
68.5
70 61.7
60

50
PERCENTAGE

40 31.8
24.7 Santro
30
Other Cars
20

10 5.5 5.8
1.4 0.7
0
Excellent Very Good Average Below
Average


39


40

TABLE 4.1.17

RESPONDENTS SATISFACTION LEVEL ON SANTRO AND
OTHER CARS

No Opinion No. of % No. of %
. s s
1 Very Satisfied 20 27.4 58 20.9

2 Satisfied 52 71.2 212 76.6

3 Dissatisfied 1 1.4 7 2.5

4 Highly Dissatisfied 0 0 0 0

Total 73 100 277 100.0

respondents (71.2%) are satisfied and in other cars most of the respondents
(76.6%) are also satisfied.

FIG. 4.1.17
RESPONDENTS SATISFACTION LEVEL ON SANTRO AND OTHER CARS

90
76.6
80 71.2
70
PERCENTAGE

60
50 Santro
40 Other Cars
27.4
30 20.9
20
1.4 2.5
10
0 0
0
Very Satisfied Satisfied Dissatisfied Highly
Dissatisfied


41

TABLE 4.1.18

LEVEL OF BRAND LOYAL CUSTOMERS IN SANTRO AND OTHER CARS

Opinion No. of % No. of %
1 Yes 22 30.1 89 32.1

2 No 51 69.9 188 67.9

Total 73 100 277 100.0

respondents (69.9%) are brand loyal customers and in other cars most of the
respondents (67.9%) are also brand loyal.

FIG.4.1.18
LEVEL OF BRAND LOYAL CUSTOMERS IN SANTRO AND OTHER
CARS

69.9 67.9
70
60
PERCENTAGE

50
40 30.1 32.1 Santro
30 Other Cars
20
10
0
Yes No


42

TABLE 4.1.19

RECOMMENDATIONS ON SANTRO AND OTHER CARS TO FRIENDS AND
RELATIVES

Recommended No. of % No. of %
1 Certainly 59 80.8 245 88.4

2 Uncertain 14 19.2 26 9.4

3 Will Not recommend 0 0 6 2.2

Total 73 100 277 100.0

respondents (80.8%) are certainly recommended the product to friends and
relatives and in other cars most of the respondents (88.4%) are also certainly
recommended the product to their friends and relatives.

FIG.4.1.19
RECOM MENDATIONS ON SANTRO AND OTHER CARS TO FRIENDS
AND RELATIVES

88.4
80.8
90
80
70
PERCENTAGE

60
50
40 Santro
30 19.2 Other Cars
20 9.4
0 2.2
10
0
Certainly Uncertain Will Not
recommend

4.2 CHI–SQUARE ANALYSIS


43

SANTRO CARS

TABLE NO. 4.2.1
AGE AND CUSTOMER PERCEPTION
TOWARDS SANTRO CARS ( TWO-WAY TABLE )
Level of Perception
S.No. Age Medium High Total

1 Upto 30 Yrs 8 16 24
2 31 to 40 yrs 6 18 24
3 Above 40 yrs 15 10 25
Total 29 44 73

Null Hypothesis (H0) - There is no significant relationship
between age and customer Perception
towards Santro Car.

Alternative Hypothesis (H1) - There is close significant relationship
towards Santro Car.

CHI-SQUARE (χ 2) CALCULATION :

Calculated χ2 value = 6.875
Degree of freedom = 2
Table value = 5.991
Level of Significance = 5%

INFERENCE

It is found from the above analysis that calculated chi-square value
greater than the table value at 2 degree of freedom and null hypothesis rejected.
So, we conclude that, there is close significant relationship between the age and
Customer Perception towards Santro Cars.

TABLE NO. 4.2.2


44

GENDER AND CUSTOMER PERCEPTION
TOWARDS SANTRO CARS (TWO-WAY TABLE)

Level of Perception
S.No. Gender Total
Medium High
1 Male 23 22 45
2 Female 6 22 28
Total 29 44 73

between Gender and customer
Perception towards Santro Car.



Table value = 3.841

INFERENCE

So, we conclude that, there is close significant relationship between the Gender
and Customer Perception towards Santro Car.
TABLE NO. 4.2.3

EDUCATIONAL QUALIFICATION AND CUSTOMER PERCEPTION


45

Educational Level of Perception
S.No. Total
Qualification Medium High
1 High School 9 8 17
2 Graduate 14 14 28
3 Post Graduate 6 22 28
Total 29 44 73

between Educational Qualification and
customer Perception towards Santro
Car.

between Educational Qualification and
customer Perception towards Santro
Car.

Table value = 5.991

INFERENCE

So, we conclude that, there is close significant relationship between the
Educational Qualification and Customer Perception towards Santro Car.

TABLE NO. 4.2.4

MONTHLY INCOME AND CUSTOMER PERCEPTION
TOWARDS SANTRO CARS (TWO-WAY TABLE)

Level of Perception
S.No. Monthly Income Total
Medium High


46

1 Upto Rs.15,000 7 6 13
2 Rs. 15,001 – Rs.20,000 6 20 26
3 Rs. 20,001 – Rs.25,000 6 12 18
4 Above Rs. 25,000 10 6 16
Total 29 44 73

between Income Level and customer

between Income Level and customer

Table value = 7.815

INFERENCE

So, we conclude that, there is close significant relationship between the Income
Level and Customer Perception towards Santro Cars.

TABLE NO. 4.2.5

FAMILY SIZE AND CUSTOMER PERCEPTION
Level of Perception
S.No. Family Size Total
Medium High
1 Upto 3 members 6 10 16
2 4 – 5 members 9 25 34
3 Above 5 members 14 9 23
Total 29 44 73


47

between Family size and customer
Perception towards Santro Cars.

between Family size and customer

Table value = 5.991

INFERENCE

So, we conclude that, there is close significant relationship between the family
size and Customer Perception towards Santro Cars.

TABLE NO. 4.2.6

PERIOD OF USAGE AND CUSTOMER PERCEPTION
Level of Perception
S.No. Using Period Total
Medium High
1 Upto 3 years 6 22 28
2 4 – 5 years 9 11 20
3 Above 5 years 14 11 25
Total 29 44 73


48

between using period and customer

between using period and customer

Table value = 5.991

INFERENCE

So, we conclude that, there is close significant relationship between the using
period and Customer Perception towards Santro Cars.


49

OTHER CARS

TABLE NO. 4.2.7

AGE AND CUSTOMER PERCEPTION
TOWARDS OTHER CARS ( TWO-WAY TABLE )

Level of Perception
S.No. Age Low Medium High Total

1 Below 30 Yrs 16 17 16 49
2 31 to 40 yrs 17 38 27 82
3 Above 40 yrs 58 56 32 146
Total 91 111 75 277

towards Other Cars.

towards Other Cars.

CHI-SQUARE (χ 2) CALCULATION:

Table value = 9.488

INFERENCE

So, we conclude that, there is close significant relationship between the age and
Customer Perception towards Other Cars.
TABLE NO. 4.2.8


50

GENDER AND CUSTOMER PERCEPTION
Level of Perception
S.No. Gender Total
Low Medium High
1 Male 84 104 69 257
2 Female 7 7 6 20
Total 91 111 75 277

Perception towards Other Cars.

Perception towards Other Cars.


Table value = 5.991

INFERENCE

lesser than the table value at 2 degree of freedom and null hypothesis accepted.
So, we conclude that, there is no significant relationship between the Gender and
Customer Perception towards other Cars.

TABLE NO. 4.2.9

EDUCATIONAL QUALIFICATION AND CUSTOMER PERCEPTION


A study on the consumer perception of hyundai santro cars in salem city

A study on the consumer perception of hyundai santro cars in salem city

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A study on the consumer perception of hyundai santro cars in salem city