Consumer Preference and Motivation for Suv, Puducherry

CONSUMER PREFERENCE AND MOTIVATION FOR SUV, PUDUCHERRY.

A Project report submitted for the Partial fulfillment of the requirement of the degree of

Bachelor of Business Management

Submitted by

R. ABIRAMI (Reg.No.16BM0201) S.VINNARASI (Reg.No.16BM0244) R.NALINI (Reg.No.16BM0220)

Guided by

Dr.A.BHARATHY, M.B.A, HDSM, M.Phil Assistant Professor, Department of Management Studies, Pondicherry University Community College.

Pondicherry University Community College Department of Management Studies Puducherry -605 008. April 2019

CHAPTER 1

1.1 INTRODUCTION

In the early days SUV’s were designed to transport forest workers and members of the

Civilian Conservation Corporation to remote areas. The modern concept of the SUV began evolving in the 1960s with the growing popularity of the Wagoneer. The Wagoneer served as a mode for all future SUVs and the fast SUV was Jeep Cherokee released in 1984. Today Utility

Vehicle across the world stand as an icon of suggestions as well as luxury offering astounding off road capacity, room in terrors and powers.

Sports Utility Vehicles are trending globally and in India too in the last 5-7 years we see many models of SUVs being launched. Especially in the last 2 years we see brands like Maruti

Breeza, Mahindra XUV, Renault Duster, Ford EcoSport, Hyundai, Volkswagens etc.,

Automakers are seeing new demand for cars, Utility Vehicle and vans. It is also being seen that demand for UVs out stopping that for cars and during 2018 it saw 9, 21, 780, ( 20.97% increase).

It is expected to grow to 1 million mark in 2019, ( Auto car 2018, may edition). In this regarding understand the consumer preference in term of the factors influencing in terms of the factors influencing their choice of product and brand needs to be studied by the marketers to compete against their challengers for a bigger slice of the market share in the growing SUV market.

1.2 COMPANY PROFILE

FOUNDER OF NISSAN :

YOSHISUKE AI KAWA

LOGO OF NISSAN :

RENAULT–NISSAN–MITSUBISHI ALLIANCE

Renault–Nissan–Mitsubishi Alliance

Formerly Renault–Nissan Alliance (1999– 2017)

Type Strategic partnership

Industry Automotive

Founded 27 March 1999; 19 years ago

Founders Louis Schweitzer (businessman) Yoshikazu Hanawa

Headquarters Amsterdam, Netherlands[1]

Key people Carlos Ghosn (Chairman and CEO)

Products Cars and trucks

Website alliance-2022.com

The Renault–Nissan–Mitsubishi Alliance is a Franco-Japanese strategic partnership between the automobile manufacturers Renault, based in Paris, France; Nissan, based in Yokohama, Japan; and Mitsubishi Motors, based in Tokyo, Japan; which together sell more than 1 in 9 vehicles worldwide.[2] Originally known as the Renault–Nissan Alliance, Renault and Nissan became strategic partners in 1999 and have nearly 450,000 employees and control ten major Brands:

Renault,Nissan,Mitsubishi, Infiniti, RenaultSamsungMotors, Dacia, Alpine, Datsun, Venucia and Lada. The car group sold 8.3 million cars worldwide in 2013, behind Toyota, General Motors and Volkswagen Group for total volume. The Alliance adopted its current name in September 2017, one year after Nissan acquired a controlling interest in Mitsubishi and subsequently making Mitsubishi an equal partner in the Alliance.

As of January 2018, the Alliance is the world's leading plug-in electric vehicle manufacturer, with global sales since 2010 of over 500,000 electric vehicles, including those manufactured by Mitsubishi, now part of the Alliance. The top selling vehicle of the Alliance EV line-up is the Nissan Leaf all-electric car. The Leaf is also the world's best-selling highway-capable plug-in electric car in history, with more than 300,000 units sold worldwide through January 2018.

The strategic alliance partnership between Renault, Nissan and Mitsubishi is not a merger or an acquisition. The three companies are joined together through a cross-sharing agreement. The structure was unique in the auto industry during the 1990s consolidation trend and later served as a model for General Motors and the PSA Group, and Mitsubishi, as well as Volkswagen and Suzuki, though the latter combination failed. The Alliance itself has broadened its scope substantially, forming additional partnerships with automakers including Germany's Daimler, China's Dongfeng and Russia's Av to VAZ.

CORPORATE STRUCTURE AND STRATEGY

The Alliance is a strategic partnership based on the rationale that, due to substantial cross- shareholding investments, each company acts in the financial interest of the other—while maintaining individual brand identities and independent corporate cultures. Renault currently has a 43.4 percent (fully voting) stake in Nissan and Nissan holds a 15 percent (non-voting) stake in Renault effectively giving Renault control. Although more companies have adopted such an arrangement, it remains controversial. Some business journalists have speculated that the companies should be joined in a conventional merger in order to make a "bold" move, while other interested parties have said that the companies should separate.

Carlos Ghosn is the chairman and CEO of the Alliance. Ghosn is a Brazilian-Lebanese-French businessman who is also chairman and CEO of Nissan Motors and holds the same positions at Renault. Ghosn has compared the Renault–Nissan partnership to a marriage: "A couple does not assume a converged, single identity when they get married. Instead, they retain their own individuality and join to build a life together, united by shared interests and goals, each bringing something different to the union. In business, regardless of the industry, the most successful and enduring partnerships are those created with a respect for identity as the constant guiding principle."

Ghosn has consistently advocated an evolutionary approach that results in increasing integration and synergies for partners within the Alliance. "You have to be careful that at the end of the day, by trying to do more in the short-term you don't end up destroying what had been delivering so much result on the mid-term and long-term," Ghosn was quoted as saying in March 2011 Reuters Special Report, in which he said conventional, top-down acquisitions in the auto industry in the past decade have failed. "It is not validated by any example in the car industry that this works. Not one example. And saying something different is just rubbish."

The goal of the Alliance is to increase economies of scale for both Renault and Nissan without forcing one company's identity to be consumed by the other's. The Alliance achieves scale and speeds time to market by jointly developing engines, batteries and other key components. For instance, Nissan’s market share increases in Europe's competitive light commercial vehicle segment have been partly a result of badging various Renault van models such as the Renault Kangoo/Nissan Kubistar, Renault Master/Nissan Interstar, Renault Trafic/Nissan Primastar. In

6 addition, Renault builds nearly all of the diesel engines in Nissan cars sold in Europe. Nissan uses these engines to accelerate sales throughout Europe, where it has already become the number one Asian brand in many key markets.

Collaboration between Renault and Nissan also focuses on capital-intensive research projects such as sustainable, zero-emission transportation and development of automobile manufacturing in emerging markets such as Brazil, Russia and India. The Alliance also oversees purchasing for both companies, ensuring larger volume and thus better pricing with suppliers. Renault and Nissan have also consolidated logistics operations under the Alliance to reduce costs. The companies claim that they generate more than €200 million per year by sharing warehouses, containers, shipping crates, seagoing vessels and customs-related processing. In total, the Alliance reported more than €1.5 billion in synergies in 2010.

The Alliance develops "best practices," borrowing systems and controls from one company to strengthen the other company where appropriate. The "Nissan Production Way" became the cornerstone of the "Système de Production Renault" standard used by all Renault factories. Renault reported productivity increasing by 15 percent due to the new system.

HISTORY

The Alliance began on 27 March 1999. At the time, the auto industry was in a period of rapid consolidation. Numerous companies merged or were acquired in high-profile deals, most notably Daimler’s acquisition of Chrysler in 1998 (which dissolved in 2007, when the companies separated

At the time it was created, Renault bought 36.8 percent of Nissan's outstanding stock and Nissan vowed to buy into Renault when it was financially able. In 2001, after the company's turnaround from near-bankruptcy, Nissan bought a 15 percent stake in Renault, which in turn increased its stake in Nissan to 44.4 percent.

In 2002, the Alliance created the Renault–Nissan BV (RNBV), a strategic management company to oversee areas such as corporate governance between the two companies. Based in Amsterdam, it is owned 50/50 by Renault and Nissan and provides a neutral location for the Alliance to exchange ideas, build strategy and help leverage the maximum synergies between the two companies.

In 2006, the Alliance began exploratory talks with General Motors regarding the possibility of creating an industrial alliance. The talks were instigated by GM minority shareholder Kirk Kerkorian. GM reportedly demanded payment of several billion dollars to engage in an alliance, prompting Ghosn to call the terms "contrary to the spirit of an alliance." Discussions ended without agreement in October 2006, when Ghosn said, "It's clear the two sides have completely different appetites for an alliance."

Since 2010, the Alliance has undertaken a number of projects as part of a strategic cooperation deal with the German Daimler AG company.

In 2014, Renault and Nissan combined various research and development, manufacturing and business operations to increase money savings, integrate the two companies and accelerate development.

In September 2017, the Alliance announce its Alliance 2022, a six-year plan that has set a new target to double annual synergies to €10 billion by the end of the plan. Carlos Ghosn said: “Today marks a new milestone for our member companies. By the end of our strategic plan Alliance 2022, we aim to double our annual synergies to €10 billion. To achieve this target, on one side Renault, Nissan and Mitsubishi Motors will accelerate collaboration on common platforms, powertrains and next-generation electric, autonomous and connected technologies. From the other side, synergies will be enhanced by our growing scale. Our total annual sales are forecast to exceed 14 million units, generating revenues expected at $240 billion by the end of the plan.” Beside the announcement of the new plan, the new logo and the new name of the Alliance had been launched.

GLOBAL SALES

According to the Alliance, it sold one in nine cars worldwide in 2017, ranking as the world's largest producer of light vehicles by sales, with 10,608,366 units sold. In 2017, the Renault- Nissan-Mitsubishi alliance recorded an increase of 6.5% compared to 2016.

Alliance 2017 sales

Renault 3,761,634

Nissan 5,816,278

Mitsubishi 1,030,454

Total 10,608,366

PROJECTS Zero-emission vehicles

Carlos Ghosn charges a Nissan Leaf, one of six zero-emission vehicles developed by the Renault–Nissan Alliance as of December 2016.

The Alliance committed €4 billion (around US$5.2 billion) into its electric vehicle and battery development programs with the aim to become the leader in zero-emission transportation. Carlos Ghosn, Chairman and CEO of the Renault–Nissan Alliance predicted that by 2020 one in 10 new car sales will be an electric vehicle. The first electric car based on this investment was the Nissan Leaf, launched in December 2010 in the United States and Japan. Between 2011 and 2013, Renault launched four zero-emissions (Z.E.) battery electric vehicles (BEVs), the Renault Kangoo Z.E. utility van, Renault Fluence Z.E., Renault Zoe and the Renault

Twizy urban quadricycle. Zero-emissions refers to no CO2 emissions and no regulated exhaust pollutants while driving, that is, no tailpipe pollutants. Nissan's second all-electric vehicle,

9 the Nissan e-NV200, was released in Europe in June 2014, followed by Japan in October 2014. Nissan plans to launch two additional battery electric vehicles by March 2017. Initially, Carlos Ghosn predicted the two companies would sell a combined 1.5 million electric cars as early as 2016. As sales were slower than expected, in 2013 the Alliance revised its sales target to 1.5 million electric vehicles by 2020.

Renault–Nissan Alliance zero-emission vehicles milestones

Date Milestone

Dec 2010 Nissan Leaf launched in the U.S. and Japan.

Oct 2011 Renault Kangoo Z.E. utility van is released in Europe.

Nissan Leaf surpassed the Mitsubishi I MiEV as 2011 the best selling all-electric car in history.

Dec 2012 Renault Zoe released in France.

Feb 2013 Nissan Leaf global sales reached 50,000 units.

Jul 2013 Global EV Alliance sales reached 100,000 units.

Sep 2013 Global sales of the Kangoo Z.E. passed 10,000 units.

Jan 2014 Nissan Leaf global sales reached 100,000 units.

Jun 2014 Nissan e-NV200 utility van is released in Europe.

Oct 2014 Global EV Alliance sales passed 200,000 units.

Nov 2014 Nissan Leaf global sales reached 150,000 units.

Apr 2015 Global sales of the Renault Twizy reached 15,000 units.

May 2015 Global sales of the Renault Zoe passed 25,000 units.

Jun 2015 Global EV Alliance sales reached 250,000 units.

Dec 2015 Nissan Leaf global sales passed 200,000 units.

Dec 2015 Alliance global EV sales passed 300,000 units.

Jun 2016 Global sales of the Renault Zoe passed 50,000 units.

Aug 2016 Alliance global EV sales reached 350,000 units.

Sep 2016 Renault EV global sales passed 100,000 units.

Sep 2016 Nissan global EV sales totaled over 250,000 units.

Nov 2016 Nissan Leaf owners achieved 3 billion electric km driven.

Dec 2016 Nissan Leaf global sales passed 250,000 units.

Jan 2017 Alliance global EV sales reached 400,000 units.

Oct 2017 Alliance global EV sales reached 500,000 units.

Jan 2018 Leaf global sales achieved the 300,000 unit milestone.

In May 2008, as part of the Alliance’s zero emission strategy, Nissan and NEC formed a joint- venture company, Automotive Energy Supply Corporation (AESC) to focus on the development and mass production of advanced lithium-ion batteries for a wide range of automotive applications from hybrids, electric vehicles to fuel-cell vehicles. AESC began production in 2009 at its facility at Nissan’s Zama plant in Kanagawa Prefecture where annual capacity is 65,000 units. Globally, Alliance battery production capacity is expected to be 500,000 units a year by the end of 2013. Other Alliance battery production sites, announced in 2009, include France, Portugal, the UK and the U.S.

The Alliance has created partnerships with more than 100 public and private organizations to create consumer buying incentives and EV infrastructure investment. The Alliance also partnered with Better Place. After implementing the first modern commercial deployment of the battery swapping model in Israel and Denmark, Better Place filed for bankruptcy in Israel in May 2013.

Renault's Zero-Emissions (Z.E.) badge

Combined sales of Renault and Nissan models achieved the sales milestone of 400,000 all- electric vehicles delivered globally in January 2017. Groupe Renault global electric vehicle sales passed the 100,000 unit milestone in September 2016, with Zoe sales representing 54%, the Kangoo Z.E. with 24%, the Twizy with 18% and the Fluence Z.E. and its Korean variant, the Samsung SM3 Z.E., together representing 4%. Nissan global electric vehicle sales passed 275,000 units in December 2016. The Alliance, including Mitsubishi Motors i-MiEV family, sold 94,265 all-electric vehicles in 2016, up more than 8% from 2015. By the end of December 2017, the Alliance continued as the leading all-electric vehicle manufacturer with global sales of more than 500,000 electric vehicles, including those manufactured by Mitsubishi Motors, now part of the Alliance.

As of January 2018, the Nissan Leaf is the world's all-time best-selling highway-capable electric car, with global sales of more than 300,000 units sold since its introduction in December 2010. The Leaf was the world's best-selling plug-in electric car for two years in a row, 2013 and 2014. As of December 2016, Renault sales were led by the Renault Zoe with 61,205 units sold worldwide, followed by the Kangoo Z.E. electric utility van with 25,205 units and the Twizy heavy quadricycle with 19,342 units. The Zoe has been the top selling all-electric car in Europe for two years running, with 18,453 registrations in 2015, and with 21,735 units delivered in 2016. Also, the Zoe topped European sales in the broader plug-in electric car segment, ahead of the Mitsubishi Outlander P-HEV, the top selling plug-in car in the previous two years.

DAIMLER STRATEGIC COOPERATION

The Alliance announced on 7 April 2010, a broad strategic co-operation with Daimler, reported to be worth €2 billion over five years. The companies are joined by an equity exchange that gives the Renault–Nissan Alliance a 3.1% stake in Daimler and Daimler a combined 3.1% in Renault and Nissan.

Immediately after the announcement, Renault and Daimler began working together on combined next-generation small cars: the Renault Twingo and Smart Fortwo, including electric versions as well as expanding both model ranges. The launches of the jointly developed small car models are scheduled to begin in 2013.

The smart plant in Hambach, France, will be the production location for two-seater versions, while the Renault plant in Novo Mesto in Slovenia will be the production location for the four-

13 seater versions. Future models will also be available with an electric drive from launch. Powertrain sharing will focus on fuel-efficient, diesel and petrol engines. The Alliance will provide 3- and 4-cylinder petrol and diesel engines to Daimler.

The companies have agreed to share powertrain and development work on future projects across both passenger cars and light commercial vehicles. The deal will allow powertrain sharing between Infiniti and Mercedes-Benz vehicles and regional co-operation in the United States, China and Japan between Nissan, Infiniti and Daimler. Daimler will reportedly provide current 4- and 6-cylinder petrol and diesel engines to Infiniti.

In January 2012, the companies announced they would jointly produce engines in Nissan's plant in Decherd, Tennessee. The collaboration marks the first production of Mercedes-Benz engines in the North America Free Trade region. The Tennessee plant’s strategic location and logistics links ensure a direct supply of engines starting in 2014 for the Mercedes-Benz C-Class, built at Daimler’s vehicle plant in Tuscaloosa, Ala. The deal marked the first time that Daimler had ever built engines in North America. The companies will together produce 250,000 four-cylinder gasoline engines in the plant.

In January 2013, Renault-Nissan, Daimler and a third partner, Ford Motor Co., announcedthree- way development on "affordable, mass-market" hydrogen fuel cell vehicles by 2017. The companies said they would invest equal amounts into the effort. By collaborating on the fuel cell stack and other system components, Ford, Daimler and Renault-Nissan hope to improve the technology and produce at a large scale. With a higher production volume, these automakers expect to generate economies of scale and offer more affordable cars.

In June 2014, the Alliance and Daimler AG announced they would jointly develop premium compact vehicles and jointly manufacture them in Aguascalientes, Mexico, where Nissan already has an existing manufacturing complex. The arrangement is a 50:50 joint venture and the new plant will have an annual capacity of 300,000 vehicles. The $1.36 billion venture will produce Infiniti models by 2017 and Mercedes-Benz compacts by the following year.

NISSAN ACROSS THE WORLD

Nissan is a major player in the United States and Mitsubishi also has a minor presence. In October 2011, the Renault–Nissan Alliance launched an $1.8 billion "Brazilian offensive" with

14 two plants and a combined annual capacity of 580,000 vehicles per year at Brazil. Nissan invested 2.6 billion Brazilian reais (US$1.5 billion or €1.1 billion) to construct an all-new manufacturing facility and to develop, industrialize and launch new products in Resende, Rio de Janeiro. The all-new Nissan factory, which began production in the first half of 2014, have the capacity to produce up to 200,000 units annually and will create up to 2,000 jobs directly associated with the plant.

On 12 December 2012, the Renault–Nissan Alliance became the long-term controlling shareholder of Av to VAZ, Russia’s largest car company and owner of the country's biggest selling brand, Lada.Nissan has a joint-venture company with China's Dongfeng Motor Company to produce and sell cars throughout China. In July 2012, the Renault–Nissan Alliance announced it was investing 170 billion won (US$ 160 million) in Renault Samsung Motors, the South Korean company that Renault purchased in 2000. The new investment adds the capability to produce up to 80,000 Nissan Roguecrossover sport-utility vehicles per year at the Renault Samsung Motors plant in Busan, taking advantage of the free trade agreements of Korea with the United States and the European Union, as well as the favourable currency exchange. King Mohammed VI inaugurated the new Renault–Nissan Alliance plant in Tangier, Morocco, at a special ceremony attended by Carlos Ghosn, Chairman of Renault and Nissan. The new Renault– Nissan plant in Tangier represents an investment of €1 billion with annual production capacity of 400,000 vehicles with an estimated total staff of more than 6,000 by 2015.

INDIA

In July 2013, Renault-Nissan CEO Carlos Ghosn confirmed the development of an all-new car platform in India to meet the demands of new car buyers in the fastest growing economies of the world. The platform, code named CMF-A (Common Module Family - Affordable), is being designed and engineered in India and it is the first all-new vehicle platform designed jointly from the ground up by both Renault and Nissan teams. The first cars on the platform will roll out in 2015.

The CMF-A cars will come from the Renault–Nissan Alliance plant and technical center in Chennai, which opened in 2010. The first vehicle to be produced was the Nissan Micra. Starting in 2011, the plant began building the Renault Koleos and Fluence. The factory is located in the Oragadam Expansion Scheme and represents an investment of about €800 million over seven

15 years from February 2008 to 2015. The plant – which has full stamping, body, paint, plastic, trim and chassis shops with two test tracks—will have the capacity to produce 400,000 vehicles a year at full ramp up.

The plant can produce four separate platforms and eight body styles in random production order. Both sub-assembly and parts supply to the line are totally flexible. Efficiency is improved by having bumper and plastic moldings produced on site while the assembly line boasts a highly efficient logistics layout with a 100% kit supply system to the lineside which saves operators having to pick parts from more than one place reducing the need to walk to collect parts. This is a development of what Nissan does at its Oppama, Japan and Sunderland, UK facilities. The Renault team supports powertrain development, vehicle engineering, information systems, as well as styling and special project support for Renault's Mumbai-based design studio.

1.3 PRODUCT PROFILE

1.MICRA 2. MICRA ACTIVE

3.SUNNY 4. TERRANNO

4. KICKS

1.4 INDUSTRY PROFILE

This Chapter presents a brief profile of the key feature of various major fast selling SUV brands in India. These brands are also the major competition for Nissan Kicks model.

Nissan kicks:

Nissan kicks, the all-new compact SUV from the Japanese carmaker is all set to make its India debut today, and we’ll be bringing you all the live updates from the launch event here. Slated to be launched in January 2019, the all-new kicks set to be showcased last year in Brazil. Nissan says that the new Indian-spec Kicks SUV will be bigger than the internationally sold model and has been designed based on theplatform that also underpins the Renault Duster and Capture, as well as the Nissan Terrano.

The Nissan Kicks has been developed at the new Nissan Design Centre, located in Chennai. Furthermore, the India-bound Kicks will also be slightly bigger than its international counterpart and is expected to become with a roomier cabin, and a bunch of technical features for connectivity.

NISSAN KICKS:

FEATURES OF KICKS:

Features Kicks

Length 4384

Width 1813

Heigth 1656

Wheel Base 2673

Ground Clearance 210

Kerb Weigth 1136

Turn Rear 5.2

Fuel Tank 50

Boot Space 400

Alloy 17

Airbags 4

ABS Y

EBD Y

Front Brake Disc

Rear Brake Drum

Dimensions Petrol Diesel

Engine 1.5l 1.5l

Transmission 5MT 6MT

Power 106 110

Torque 142 240

Milleage 13 20

HYUNDAI Drive FWD FWD CRETA .The Hyndai Creta has been the undisputed leader in the compact SUV segment for long. It is underpinned by Hyundai’s PB Platform which is also the basis for many other Hyundai and KIA models. The Hyundai Creta has received a facelift earlier this year which has made its much- admired urban SUV look even better with a newly profiled bumper and the three-slat cascade grille which has made it look wider up-front. There has just been slightly tweaked to fit the skid plate.

HYUNDAI CRETA (SUV)

FEATURES OF CRETA :

Features Creta

Length 4270

Width 1780

Heigth 1630

Width 2590

Wheel Base 2741

Ground Clearance 198

Kerb Weigth 1386

Turn Rear 5.2

Fuel Tank 50

Boot Space 400

Alloy 17

ABS Y

EBD Y

Front Brake Disc

Rear Brake Drum

Dimensions Petrol Diesel

Engine 1.6l 1.5l

Transmission 6MT/6AT 6MT/6AT

Power 122 126

Torque 151 260

Milleage 15.29 19.6/17.1

Drive FWD FWD

FORD ECOSPORT:

FORD ECOSPORT PRICE AND VARIANTS: The Ford EcoSport is a sub-4 meter compact SUV that’s priced between Rs 7.82 lakh and Rs 11.89 lakh (ex-showroom Delhi). It is available in six variants: Ambience, Trend, Trend+, Titanium, Titanium+ and the S variant. The EcoSport is also available in a limited-run Signature Edition.

FORD ECOSPORT FEATURES: The EcoSport is well equipped with features like an 8- or 9- inch touchscreen SYNC 3 infotainment system with smartphone integration, automatic climate control, auto projector headlamps, cruise control, push-button start, rain-sensing wipers, sunroof and even paddle shifters on the Titanium+ AT variant.

FORD ECOSPORT SAFETY FEATURES: As expected in the price segment, the Ford EcoSport dual front airbags, rear parking sensors and ABS with EBD as standard across all variants. However, features like side and curtain airbags, ISOFIXchild seat anchors, electronic stability control, traction control, emergency brake assist and hill launch assist are only offered in the top-spec variant.

FORD ECO SPORT (SUV):

FEATURES OF FORD ECOSPORT:

FEATURES ECOSPORT

Length 3998

Width 1765

Height 1647

Wheel base 2519

Ground Clearance 205

Kerb Weigth 1281

Turn Rear 5.3

Fuel Tank 52

Boot Space 352

Alloy No

Tyre 205/60

Airbags Driver & Passenger

ABS Y

EBD Y

Front Brake Disc

Rear brake Drum

DIMENSIONS DIESEL

Enigine 2.0l

Transmission M

Power 88.5

Torque 260

Milleage 19.6/17.1

Drive FWD

MARUTI VITARA BREEZA

The very sporty Maruti Vitara Brezza is available only in the diesel guise and its VDI variant is priced at Rs 7.77 lakh (ex-showroom, Delhi). Among the highlights of the exteriors on Vitara Brezza VDI are the features like door handles, outside rear view Mirrors, and bumpers painted in body colour. You will also get sporty bumpers with integrated blinkers, black roof rails mounted on the floating roof design, skid plates, steel wheels with full covers, high Mount LED stop lamp, and split combination rear tail lamp. Slip inside the cabin and the interiors of Vitara Brezza VDI will welcome you with Splash of Chrome garnished generously throughout the cabin. Chrome detailing on the AC louvres knobs and parking brake simply feel out of the world. Brezza's instrument cluster is a modern unit and it displays all the necessary information including the trip metre and fuel level indicator. Maruti has also provided a 7-step illumination control for lifting the Ambience inside the cabin. There is a music system capable of playing CD/MP3/AM/FM and this unit sound via 4-door speakers and can also be operated through the remote control. In the interest of occupants' comfort and convenience, Vitara Brezza VDI comes equipped with front and rear power windows with driver side auto up / down and anti-pinch, central locking with keyless entry system,electricallyoperated.

Outside rear view Mirrors, tilt electronic power steering, manual air conditioning and heating with dust and Pollen filter, doors with bottle holders, upper and lower glove box, wide rear bench with flip and fold option, front seats with back pockets, and electric boot opening. As mentioned earlier, there is no petrol option available for now in the Brezza range and this VDI variant is powered by tried and tested 1.3-liter Multi-jet diesel engine (owned by the Fiat) boasting the new age Technologies like double overhead cams with a 16-valve mounting arrangement. The power and torque output is rated at 90 PS @ 4000 RPM and 200 NM @ 1750 RPM respectively. The 5- speed manual gearbox channelizes the drive to the front Wheels and the unit is slick in terms of shifting accuracy and definition of gates. With a length of 3995 mm, Vitara Brezza VDI confirms to the compact SUV segment and hence, avails the benefits of excise duty exemption applicable under the law. Large 16-inch Steel wheels shod by 205 m

MARUTI BREEZA

FEATURES OF MARUTI BREEZA :

FEATURES BREEZA

Length 3995

Width 1790

Heigth 1640

Wheelbase 2500

Ground clearance 198

Kerb weigth 1175

Turn Rear NA

Fuel Tank 48

Boot Space 328

Alloy NO

Tyre 205/60

Airbags Driver&passenger

ABS Y

EBD Y

Front brake Disc

Rear brake Drum

DIMENSIONS PETROL DIESEL

Engine 1.6l 1.67l

Transmission 6MT/6AT 6MT/6AT

Power 122 126

Torque 151 260

Milleage 15.29 19.6/17.1

Drive FWD FWD

RENAULT DUSTER

Renault starts at Rs.7.99 lakh (Ex-Showroom, Delhi) and the top end variant Renault Duster 110PS RXZ AWD is priced at Rs. 12.84 lakh (Ex-Showroom, Delhi). You can choose between a 1.5-litre petrol or a 1.5-litre diesel engine. The diesel motor gets two states of tune - 85PS/200Nm and 110PS/245Nm, whereas the petrol makes 106PS and 142Nm. You can choose between a 5-speed manual or a CVT with the petrol motor, and a 6-speed manual or a 6-speed AMT with the more powerful diesel. Our pick would be the punchy 110PS diesel that seems at home on the open highways. Of course, it’s the only one in the pack to feature all-wheel drive. So, if getting dirty is your thing, the Duster is your only option for now.

RENAULT DUSTER

FEATURES OF DUSTER:

FEATURES DUSTER

Length 4315

Width 1822

Height 1695

Wheelbase 2673

Ground clearance 205

Kerb weight 1770

Turn Rear 5.2

Fuel Tank 50

Boot Space 475

Alloy NO

Tyre 215/65 R16

Airbags Driver

ABS Y

EBD Y

Front brake Disc

Rear brake Drum

DIMENSIONS PETROL

Engine 1.5l

Transmission Manual

Power 104.5

Torque 142

Milleage 14.19

Drive FWD

TATA HARRIER

Latest: Tata has launched the Harrier at a competitive price range of Rs 12.69 lakh to Rs 16.25 lakh (ex-showroom Mumbai). Deliveries of the Tata Harrier have also begun from today. Tata Harrier Variants and Price: Tata has introduced the Harrier in four variants, namely XE, XM, XT and XZ. The Tata Harrier is priced between Rs 12.69 lakh to Rs 16.25 lakh (ex- showroom New Delhi). To know which variant we recommend, read here. Tata Harrier Powertrain: Underneath the bonnet of the Harrier is a 2.0-litre 4-cylinder turbocharged diesel engine that makes 140PS of power and 350Nm of torque. This is the same engine that as the Jeep Compass’, but is tuned to deliver more power in the Jeep SUV. The only transmission option, for now, is a 6-speed manual. Power is sent to the front wheels and Tata

29 does not have any plans to introduce a 4x4 model anytime soon. An automatic gearbox option with a 6-speed torque converter will be available around mid-2019, but there’s no concrete information if it will be mated to a petrol engine. The Harrier comes with driving modes (Eco, City and Sport) and multiple terrain response modes (Normal, Wet and Rough). Tata Harrier Features: Tata has packed the Harrier with a host of features. An 8.8-inch touchscreen infotainment system takes Centrestage. Apart from this, it also gets a 7-inch multi- info display in the instrument cluster, which works in tandem with the infotainment system and displays navigation info, music, tripmeter and tachometer. Apart from these, a cooled storage compartment is also present underneath the front armrest and passengers in the rear get individual spaces to stow away their mobile phones. LED elements and projector headlamps are also on offer. The Harrier does not get a sunroof, although it was a part of the feature list on the original H5X concept, on which the Harrier is based. Tata Harrier Rivals: The Harrier will take on the high-spec variants of the Hyundai Cretaand the low/mid-spec variants of the Jeep Compass and the upcoming MG Hector when it is launched in India this month.

TATA HARRIER

FEATURES OF HARRIER:

FEATURES HARRIER

Length 4598

Width 1894

Height 1714

Wheelbase 2741

Ground clearance 205

Kerb weight 1675

Turn rear NA

Fuel Tank 50

Boot Space 425

Alloy 17

Tyre 235/60

Airbags 6

ABS Y

EBD Y

Front Brake Disc

Rear brake Drum

DIMENSIONS DIESEL

Engine 2.0l

Transmission 6MT

Power 158

Torque 350

Mileage NA

Drive FWD

1.5 DEALER PROFILE

Pondicherry known for its French legacy tree lined streets; mustard colored colonial villas and chic boutiques also enjoys proximity to Chennai, uninterrupted power, skilled workforce and a strong industry base and a proactive government is fast becoming as an ideal and cost-effective expansion base and sourcing destination for large automotive and component industries.

Vignesh Moteurx established in 2016 in this backdrop is fast setting standards of its own in this growing industry of affluence. Initially in 2012 itself they had ventured into two wheeler dealership with Vespa and then expanded to include car sales with Nissan. Their profile also includes dealership of Datsun spares.

Vignesh Nissan has today grown is strength in terms of sales, employee strength as well as in terms of branches. Today Vignesh sells about 25+ vehicles per month since 2 years of its inception.

COMPANY SIZE:

They have about 100+ employees working in the showroom and services Centre of Vignesh Moteurx Pvt Ltd. One is Nissan showroom & the other is Vespa showroom.

The company is headed by S.K. Ganesan who is chairman & MD of Vignesh Moteurx Pvt Ltd. The company has 3 General Managers. It has 2 product divisions one is Nissan showroom and the other is Vespa showroom. Vignesh Moteurx has 3 departments namely Sales, Services and Finance.

The sales department has a sales head, sales manager and sales executives. Services managers head the service department and he is supported by service engineer.

The finance department is headed by finance manager and Assistant finance manager. It also has an accounts section common to both product divisions. It also has RTO section that helps consumer to register the vehicle with the RTO office in Puducherry. It also has a telephonic customer support section, which makes outbound sales calls & also answers to customer queries.

SUPPORT SERVICES PROVIDED BY VIGNESH MOTEURX PVT LTD:

Vignesh Moteurx Pvt Ltd. has financial tie up with HDFC, ICICI, M&M, SBI.

VIGNESH MOTEURX PVT LTD OFFERS :

 One year free service.  One year free insurance claim for customers.  Exchange offers also there.

PILLORS OF INDIA OFFER:

 Government employee getsan extra Rs. 3000 cash back offer.  Teachers, lawyers, stenographers get an extra 1000 cash back offer.  Vignesh Nissan offers farmers Rs.3000 cash back offer.

Old Go+ gets Rs. 60000 cash back offer for 800Cc, 1000Cc litre (petrol, diesel) vehicles which has to use redeemed within one year.

CHAPTER 2

NEED FOR THE STUDY

SUV – Sports Utility Vehicles were an aspirational product till the last decade. It was an envied possession of the politicians, film stars or industrialists. Further very expensive SUV like Toyota,Land Cruiser were imported with heavy customs duty and was hence affordable by the superrich Indians only. However, Globalization and Liberalization not only opened up the automobile manufacturing in India but has also seen a steady increase in demand not just for the small, medium and luxury cars but also for the SUV’s.

Also the Indian market did not only want actual SUV’s but was an attractive market for SUV look alike. Our government regulation of subsidy for vehicles 4m from ground level resulted in a booming SUV market.

Today we have companies like Suzuki, Ford, Tata, Mahindra, Toyota, Nissan, Hyundai motors having SUV’s or SUV look alike. Studies show that SUV sales are many times more than small and medium car sales in India. The number of SUV’s launched in 2018 tells how this segment is growing between April-September 2018 - Indian customers bought close to 4 lakh SUV’s. KIA motors a South Korean major is also launching SUV in India.

In thisscenario, this study is undertaken in the Union Territory of Puducherry where many of these brands have their franchised dealers and each is looking out for selling more of its brands in this fast growing market for many durables and industries. This will help Vignesh Moteurx Pvt. Ltd. (Nissan Dealer) to take better strategies to sell Nissan new SUV-Kicks launched in January 2019.

CHAPTER 3

REVIEW OF LITERATURE

This chapter presents a compilation of the theoretical foundation behind the study on“Consumer Preference and Motivation towards SUV in the town of Puducherry”.

The major concepts behind our study are consumer behaviour and thefactors/ motivators influencing consumer behaviour.

Meaning and Definition:

Consumer behaviour is the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the marketplace and the underlying motives for those actions.

Marketers expect that by understanding what causes the consumers to buy particular goods and services, they will be able to determine—which products are needed in the marketplace, which are obsolete, and how best to present the goods to the consumers. The study of consumer behaviour assumes that the consumers are actors in the marketplace. The perspective of role theory assumes that consumers play various roles in the marketplace. Starting from the information provider, from the user to the payer and to the disposer, consumers play these roles in the decision process. The roles also vary in different consumption situations; for example, a mother plays the role of an influencer in a child’s purchase process, whereas she plays the role of a disposer for the products consumed by the family.

Nature of Consumer Behaviour:

1. Influenced by various factors:

The various factors that influence the consumer behaviour are as follows: a. Marketing factors such as product design, price, promotion, packaging, positioning and distribution. b. Personal factors such as age, gender, education and income level.

36 c. Psychological factors such as buying motives, perception of the product and attitudes towards the product. d. Situational factors such as physical surroundings at the time of purchase, social surroundings and time factor. e. Social factors such as social status, reference groups and family. f. Cultural factors, such as religion, social class—caste and sub-castes.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time depending on the nature of products. For example, kids prefer colourful and fancy footwear, but as they grow up as teenagers and young adults, they prefer trendy footwear, and as middle-aged and senior citizens they prefer more sober footwear. The change in buying behaviour may take place due to several other factors such as increase in income level, education level and marketing factors.

3. Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave differently. The differences in consumer behaviour are due to individual factors such as the nature of the consumers, lifestyle and culture. For example, some consumers are technoholics. They go on a shopping and spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt unethical means to spend on shopping of advance technologies. But there are other consumers who, despite having surplus money, do not go even for the regular purchases and avoid use and purchase of advance technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the behaviour of the urban consumers is different from that of the rural consumers. A good number of rural consumers are conservative in their buying behaviours.

The rich rural consumers may think twice to spend on luxuries despite having sufficient funds, whereas the urban consumers may even take bank loans to buy luxury items such as cars and household appliances. The consumer behaviour may also vary across the states, regions and countries. It may differ depending on the upbringing, lifestyles and level of development.

5. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They need to study the various factors that influence the consumer behaviour of their target customers.

The knowledge of consumer behaviour enables them to take appropriate marketing decisions in respect of the following factors: a. Product design/model b. Pricing of the product c. Promotion of the product d. Packaging e. Positioning f. Place of distribution

6. Leads to purchase decision:

Positive consumer behaviour leads to a purchase decision. A consumer may take the decision of buying a product on the basis of different buying motives. The purchase decision leads to higher demand, and the sales of the marketers increase. Therefore, marketers need to influence consumer behaviour to increase their purchases.

7. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers who may buy more quantity of certain items and very low or no quantity of other items. For example, teenagers may spend heavily on products such as cell phones and branded wears for snob appeal, but may

38 not spend on general and academic reading. A middle- aged person may spend less on clothing, but may invest money in savings, insurance schemes, pension schemes, and so on.

8. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living. The more a person buys the goods and services, the higher is the standard of living. But if a person spends less on goods and services, despite having a good income, they deprives themselves of higher standard of living.

9. Reflects status:

The consumer behaviour is not only influenced by the status of a consumer, but it also reflects it. The consumers who own luxury cars, watches and other items are considered belonging to a higher status. The luxury items also give a sense of pride to the owners.

Some other articles studied in this connection shows the importance of consumer preference and motivation studies in other product groups. Theories of customers’ brand preference (Rogers, 1995;Tornasky and Klein, 1982; Mason, 1990; Cherney, 2003) emphasize on the importance of complexity, compatibility, observability, trial ability, relative advantage, risk, cost, communicability, divisibility, profitability, social approval, and product characteristics on brand preference. The relative importance of each factor depends on the nature of goods/services under consideration, culture and social characteristics of the consumers of the different brands. Karjaluoto et al. (2005) examined the customer brand preferences in the context of the mobile phone industry in Finland. The major objective of the study is used to assess consumer motivations in mobile phone preference. Seven factors influencing mobile phone preference were identified like innovative services, multimedia, design, brand image, outside influence, price, and reliability and these accounted for about 70% of the total variance.

According to Aaker(1991), brand equity is a combination of multiple dimensions. Brand preference or brand adoption as one of the elements of brand equity is influenced by various factors like price, store image, distribution intensity, price promotions and word of mouth. Based on the above studies the objective for the study was set and questionnaire prepared.

CHAPTER 4

OBJECTIVES OF THE STUDY

The title of the study is “Consumer Preference and Motivation towards SUV’s in the town of Puducherry”. The above primary objective is studied through proposing the following secondary objectives.

 To understand, the major factors influencing purchase preference of SUV’s.  To analyze the importance of various product attributes in the purchase preference of SUV’s.  To evaluate the role of brand image in SUV purchase.  To study the demographic profile of the respondents purchasing SUV.  To evaluate the influence of demographic variables on the reasons for purchase of SUV and on brand image of SUV.  To suggest suitable strategies for SUV companies and dealers.

CHAPTER 5

REASEARCHMETHODOLOGY

The data needed for the study was collected through the construction of a structured questionnaire. The collected data was analyzed through statistical tools and data is presented with the help of tables and charts.

RESEARCH DESIGN Research is a systematic and rigorous investigation of a situation or problem in order to generate new knowledge or validate existing knowledge. The research design used for this study was descriptive research.

DESCRIPTIVE RESEARCH It refers to a research that provides an accurate portrayal of these studies as means of discovering a new meaning, describing what exists and determining the frequency with which something occurs and categorizing information. In short descriptive research deals with anything that can be counted and studies that has impact on the lives of the people it deals with.

SAMPLE DESIGN A sample design is a definite plan followed in the study to collect information from a sample in the population. Convenience sampling method was used to collect the data from the respondents. Further it was ensured that the respondents were owners of SUV mostly and some having hatchbacks and sedans and also having some or more influence in the purchase decision of SUV.

PERIOD OF STUDY The period of the study was from January to March 2019.

SAMPLE SIZE The sample size used for the study is 70 respondents.

SAMPLE AREA The selected respondents of the sample were from areas like Lawspet, Muthialpet, ECR, Mudaliarpet and Uppalam.

DATA COLLECTION The data collected for the study comprises of primary data as well as secondary data.

PRIMARY DATA Primary data is information that you collect specifically for the purpose of your research project. An advantage of primary data is that it is specifically tailored to your research needs. Inthis study primary data was collected from the respondents who were owners of SUV and also showed low or more influence in the purchase decision of SUV. A well-designed questionnaire was circulated among the respondents and the filled up form were collected from them.

SECONDARY DATA Secondary data refers to data that was collected by someone other than the user. The secondary sources used for the study were  Books and journals  Company website  Vignesh Moteurx Pvt. Ltd. Website  In Plant Training for 2 weeks at Vignesh Moteurx Pvt. Ltd.  Product Brochures  Newspapers like Business Line etc..

RESEARCH INSTRUMENT

The research instrument used to collect the survey data was questionnaire. The questionnaire consisted of multiple choice questions and 5 point Likert scale

STATISTICAL TECHNIQUES USED The statistical techniques used in the study are percentage analysis, weighted average, Likert Scaling and SPSS software 16.0 for cross tabulation of data.

GRAPHICAL TECHNIQUES USED The graphical technique used was bar chart analysis.

CHAPTER 6

DATA TABULATION AND DISCUSSION

Table: 1 GENDER PROFILE

Gender No: of Respondents Percentage of Respondents (%)

Male 64 91

Female 6 9

Total 70 100

Discussion

Gender of the consumer is an important factor influencing product choice. This is because men and women buy different products and have different needs. The above table 1, and fig 1, shows the gender profile of the respondents surveyed. It is seen that a good majority of 91 % of the respondents were male and 9% of the respondents were only female.

This can be attributed to the fact that female car owners/drivers are comparatively far less than the male car owners/drivers. This becomes much less in the case of SUV vehicles in India.

FIG 1: GENDER PROFILE

Percentage of Respondents (%)

Female, 9%

Male, 91%

TABLE 2: AGE GROUP PROFILE

Age group (in years) No: of Respondents Percentage of Respondents (%)

25 or younger 25 36

26-30 27 39

31-40 11 15

41-50 5 7

51 or older 2 3

Total 70 100

Discussion:

Age has a significant influence on consumers purchase behavior towards SUVs as we pass through the different phases in our life our tastes, preferences and choice of products and brands varies. The age distribution of the consumers in the SUV market will help in determining strategies to market the product.The above table 2 and fig 2 shows the age group profile of the respondents taken for the study. It is seen that 39% of the SUV owners were in 26-30 years age group.

36% of the SUV owners were in 25years or younger age group 15% of the SUV owners were in 31-40 years age group. 7% of the SUV owners were in 41-50 years age group and 3% of the respondents surveyed were in 51+years of age.

Thus we see that a majority of the respondents surveyed for SUV/ Hatchback/Sedan ownership were in 26-30 years age group.

FIG 2: AGE GROUP PROFILE

51 yrs or older 41-50 yrs 3% 7%

31-40yrs15% 25 yrs or younger 36%

26-30 yrs 39%

25 or younger 26-30 31-40 41-50 51 or older

TABLE 3: OCCUPATION GROUP PROFILE

Occupational Group No: of Respondent Percentage of Respondents

(%)

Own business 20 29

Part time employed 2 3

Full time employed 47 67

Student 1 1

Total 70 100

Discussion:

Occupation plays on important role in the purchase decisions. People choice of different products is influenced by this occupation group. Further the mode of purchase is also influenced by occupation.

The above table 3 and fig 3 shows the occupation group of the respondents. It is seen that 67% of the SUV owners were full time employed 29% of the SUV owners were business people 3% were part time employees and 1% was a student owner. It is thus observed that an overwhelming majority of 67% of the SUV owners were full time employed in a private or government sector.

FIG 3: OCCUPATION GROUP PROFILE

Percentage of Respondent(%)

1 Student

67 Full time employed

Occupational group Part time employed

29 Own business

0 10 20 30 40 50 60 70

TABLE NO 4: INCOME GROUP PROFILE

Income level No: of Respondents Percentage Of Respondents

(%)

Less than 8 lakhs 56 80

8-20 Lakhs 14 20

More than 20 Lakhs 0 0

Total 70 100

DISCUSSION:

Income determines status and standard of living of a person. The buying behavior differs with the income levels. The rich people choice is surely very different from the choices of other income groups. It indicates the ability to pay for a product and is a very important market segmentation variable.

The above table 4 and fig 4 shows the Income group of the respondents. It is seen that a majority of 79% of the SUV owners were in the less than 8 lakh income group 20% of the SUV owners surveyed were in the 8 to 20 lakhs 1% of the SUV owner surveyed was in the 20 lakhs income group.

FIG4: INCOME GROUP PROFILE

Percentage Of Respondents (%)

More than 20 Lakhs

8-20 Lakhs INCOME GROUP PROFILE

Less than 8 lakhs

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

TABLE 5: EDUCATION PROFILE

Education Level No: of Respondents Percentage of Respondents

(%)

UG 28 40

PG 29 42

PhD 8 11

Others 5 7

Total 70 100

Discussion:

Education level also influences the level of achievement and the ownership of products. The above table 5 shows the educational level of the SUV owners surveyed. It Education level also influences is seen that

 42% were PG degree holder.  40% were UG degree holder.  11% were PhD holder.  7% had other qualifications

Thus majority of the SUV owners surveyed were PG degree owners.

FIG 5:EDUCATION PROFILE

EDUCATION PROFILE

Others, 7 PhD, 11

UG, 40

PG, 42

TABLE 6: FAMILY SIZE PROFILE

Family Size No: of Respondents Percentage of Respondents (%)

Less than 4 people 64 91

4-7 people 6 9

More than 7 people 2 3

Total 70 100

Discussion:

Family size is an important factor influencing marketing mix decisions as well as purchase behavior of the customers. It is seen from table 6 and fig 6 that 53% of the SUV owners surveyed had a family size of 4-7 people and 44% of the SUV owners had a family size of less than 4 persons and 3% had a family size of more than 7 people.

Thus we observe that majority of the SUV respondents surveyed had a family size of 4-7 persons.

FIG 6: FAMILY SIZE PROFILE

Percentage of Respondents (%) 100

91 90

40 Percentage Percentage of respondent(%)

9 10

0 Less than 4 people 4-7 people More than 7 people Family size

TABLE NO 7: VEHICLE TYPE PROFILE

Brand No: of Respondents Percentage of Respondents (%)

Ford 15 21

Hyundai 9 13

Nissan 11 16

Maruti Suzuki 15 21

Toyota 4 6

Honda 4 6

Mahindra 7 10

Tata 4 6

Volkswagen 1 1

Total 70 100

The above table 7 and fig 7 shows the vehicle brand owned by the respondents. It is seen that

21% own Maruti Suzuki brand of SUV/Hatchback/Sedan

21% own Ford brand of SUV/Hatchback/Sedan

16% own Nissan brand of SUV/Hatchback/Sedan

13% own Hyundai brand of SUV/Hatchback/Sedan

10% own Mahindra brand of SUV/Hatchback/Sedan

6% own Toyota brand of SUV/Hatchback/Sedan

6% own Tata brand of SUV/Hatchback/Sedan

1% own Volkswagen brand of SUV/Hatchback/Sedan

FIG 7 VEHICLE TYPE PROFILE

Percentage of Respondents (%)

1 Volkswagon

6 Tata

10 Mahindra

Honda VEHICLE TYPE PROFILE

6 Toyota

21 Maruti Suzuki

16 Nissan

13 Hyundai

21 Ford

0 5 10 15 20 25 Percentage of respondent

TABLE 8: INVOLVEMENT IN PURCHASE DECISION

Response No: of Respondents Percentage of Respondents (%) I will not involve in the 0 0 purchase decision I have little involvement in 26 38 the purchase decision I have significant influence 20 28 in the purchase decisions I will make the final 24 34 decision Total 70 100

Discussion:

Table 8 and figure 8 show the respondents involvement in purchase decision. This is another major factor in consumer buyer behavior. Many people assume different roles in consumer buying decision process. Further the influence of various sources of information is very significant in purchase decision process. It is seen from the above table 8 and fig 8 that no respondents were included in the study who did not show any interest/involvement in the purchase of SUV.

 38% of the SUV owners said their involvement is less.  34% of the SUV owners said that they made the final choice  28% of the SUV owners said that they made significant influence in the purchase of SUVs.

Thus a majority of the respondents who made significant /100% involvement in the purchase of SUV were only included in the study.

FIG8: INVOLEMENT IN PURCHASE DECISION

34 I will make the final decision

I have significant influence in the purchase decisions INVOLEMENT INVOLEMENT IN PURCHASE DECISION

38 I have little involvement in the purchase decision

0 I will not involve in the purchase decision

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

Percentage of Respondents (%)

TABLE 9: REASON FOR USE OF SUV

Response No: of Respondents Percentage of Respondents

(%)

To commute to work 4 5

General Transport for recreation 19 27

General transport for family 23 33

To perform office work 12 17

Some other use 15 21

Total 73 100

Discussion:

The major motivation behind the purchase of any product is that it satisfies some need of the consumer. Hence the reason of use of SUV will help us to understand the motivation or need satisfaction behind the purchase of SUV. It is seen from table 9 and fig 9 that 33% of the SUV owners purchased it to meet general transport for family.

 27% purchase it for recreation.  21% purchase for some other purpose  17% purchase to use it for office work  5% purchase it to commute to work.

Thus a big majority of the respondents purchase SUV for general family transport/recreation purpose.

FIG 9: REASON FOR USE OF SUV

21 Some other use

17 To perform office work

General transport for family Reason Reason Use for of SUV

27 General Transport for recreation

5 To commute to work

Percentage Of Respondents (%) 0 5 10 15 20 25 30 35

TABLE 10: REASON FOR PREFERRING SUV

Response No: of Respondent Percentage of Response (%)

Greater general use 16 7

Need larger vehicle due to family size 20 8

Greater safety 39 17

Better on road 22 9

Greater power 16 7

Good fuel economy 19 8

Prefer the image than other vehicles 22 9

Good for my size 29 12

Good deal/price 18 8

Always like big vehicles 21 9

Some other reason 14 6

Total 236 100

Discussion:

A product/brand choice is influenced by various factors and it varies from category to category. Hence it is very importance to critically examine the various factors/product features influencing SUV choice and consumer’s most favored SUV. It is seen firm table 10 and fig 10 that

 17 % of the respondent’s reason was greater safety.  12 % of the respondents reason was SUV matched their size.  9% each of the respondent’s reason was better on road prefer the image better fuel economy and better price.  7% each of the respondent’s reason was greater general use and greater power.

Thus product and its features dominate than price/promotion/place element of a firms marketing mix in SUVs.

FIG 10: REASON FOR PREFERRING SUV

Some other reason

Always like big vehicles

Good deal/price

Good for my size

Prefer the image than other vehicles

Good fuel economy

Greater power REASON FOR PREFERRING SUV PREFERRING FOR REASON Better on road

Greater safety

Need larger vehicle due to family size

Greater general use Percentage Of Response (%)

0 2 4 6 8 10 12 14 16 18

TABLE NO 11: FEATUREUSED OFTEN IN SUV

Response NO of Respondent Percentage of Respondents

(%)

None of the feature 5 4

Extra seat capacity 18 42

Extra luggage space 46 40

Off road 8 7

Some other features 9 7

Total 116 100

Discussion:

A look into the product feature most used will help the marketer of the brand to leverage on it and position his product on its basis. An analysis of the above table 11 and fig 11 shows that

 42% of the respondents used note often extra seat capacity.  40% of the respondents used more extra luggage space.  40% of the respondents used more extra luggage space.  7% each used more often its off road ability and for other features.

Thus extra seat capacity and extra luggage capacity were the most often used features in an SUV.

FIG 11: FEATURE USED OFTEN IN SUV

7 Some other features

7 Off road

Extra luggage space FEATURE FEATURE USED TEN OF SUV IN

42 Extra seat capacity

4 None of the feature Percentage of Respondents (%)

0 5 10 15 20 25 30 35 40 45

TABLE NO 12: ADDITIONAL REASONS FOR PURCHASE OF SUV

Response No of Respondents Percentage of Respondent (%)

Easier to drive 28 12

Greater safety 44 19

More convenient 23 10

For luxury options 38 16

Lower initial purchase 11 5

Low maintenance cost 15 7

Better fuel economy 20 9

Environmental friendly 37 16

Prefer the image 15 6

Total 231 100

Discussion:

Trying to understand some other reasons influencing SUV choice is also very important for this study. Today marketers are looking at new ways to impress consumers while consumers are motivated by products not only satisfying their need but also being socially relevant.

This can be seen from table 12 and fig 12. It is seen that

 19% purchase for greater safety.  16% purchase for luxury option.  16%purchase for environmental friendly.  12% purchase for easier to drive  10% purchase for more convenient.  9% purchase for fuel economy.  7% purchase for low maintenance cost.  6% purchase for prefer image  5% purchase for lower initial purchase price Then the most favored additional reasons for purchase are safety, luxury, environment friendly

FIG 12: ADDITIONAL REASON FOR PURCHASE OF SUV

Prefer the image 6

16 Environmental friendly

Better fuel economy 9

Low maintenance cost 7 ADDITIONAL ADDITIONAL REASONS PURCHASE FOR SUV OF Lower initial purchase 5

16 For luxury options

10 More convenient

19 Greater safety

12 Easier to drive

0 5 10 15 20

Percentage of Respondent (%)

TABLE 13:FEATURES ON PURCHASE IMPORTANCE OF SUV DECISION

Parameters Importance level Weighted Average Score 1 2 3 4 5

Brand image 8 6 12 18 26 3.38

Design and looks of the SUV 1 4 11 37 7 3.21

Price of the SUV 3 4 17 32 14 3.71

Fuel efficiency (kmpl) 1 7 15 30 17 3.78

Power-pulling capacity (BHP) 2 5 15 31 17 3.8 and engine capacity

Overall performance of SUV 2 5 17 30 16 3.75

Off-road ability 3 5 22 20 20 3.7

Driving experience 5 8 13 23 21 3.67

Comfort seat configuration 3 4 15 28 20 3.82 legroom AC etc.,

After sales services availability 3 14 14 2 19 3.54

Safety of the passengers 8 5 19 20 18 3.5

Availability of fuel options 2 8 13 32 15 3.71 diesel, petrol, CNG etc.,

Overall importance level=3.63

Discussion:

The above table 13 shows the level of importance rated by the present SUV owners towards SUV product features and its influence on purchase decision. On an average, overall importance given to all the above features in 3.6. This means slightly significant than normal score of 3. Further comfort, seat arrangement, price and fuel efficiency have been given an importance of 4.

FIG 13:IMPORTANCE OF SUV FEATURES ON PURCHASE DICISION

3.9 3.82 3.78 3.8 3.8 3.75 3.71 3.7 3.71 3.67 3.7

3.6 3.54 3.5

3.5 Weigthed 3.38 3.4

3.3 3.21 3.2

3.1

2.9

Importance of SUV features on purchase dicision

TABLE 14: IMPORTANCE TO PRODUCT RELIABILITY AND SERVICES

Parameters Importance level Weighted Rank 1 2 3 4 5 Average Score

Technical product 6 9 17 21 17 3.48 6 features

Trust worthiness of the 1 12 20 25 12 3.57 5 brand maker 1

Service effectiveness 0 9 19 26 16 3.70 1 and efficiency

Country of origin 2 6 21 26 15 3.65 4

Resale value 1 6 20 29 14 3.71 1

Brand makers listen 3 6 14 27 20 3.78 1 To your needs

The above table 14 shows the important given product reliability and service and we see that top rank 1 given to service effectiveness and efficiency and resale value and brand maker listen to my needs

FIG 14 : IMPORTANCE TO PRODUCT RELIABILITY AND SERVICES

TO YOUR NEEDS

3.78 BRAND MAKERS LISTEN

3.71 RESALE VALUE

3.65 COUNTRY OF ORIGIN

3.7

SERVICE EFFICTIVENESS AND EFFICIENCY IMPORTANCE TO PRODUCT RELIABILITY ANDSERVICES 3.57 TRUST WORTHINESS OF THE BRAND MAKER 1

3.48 TECHNICAL PRODUCT FEATURES

WEIGTHED

TABLE 15: IMPORTANCE TO PRODUCT PROMOTION AND NEW APPEAL

Important level

Parameter 1 2 3 4 5 Weigthed

Word of mouth 2 1 25 27 15 3.74

Brand image 2 2 26 19 21 3.78

Style and deign 0 6 22 23 19 3.78

Celebrity endorsement 1 6 21 31 11 3.64

Ad frequency 2 5 15 30 18 3.81

Store image 2 4 19 30 15 3.74

Network of showrooms 0 8 16 29 17 3.68

Overall importance given by respondents to product promotion new look appeal in the purchase decision of SUV is 3.7 which is very close to 4 and hence we see that SUV purchases give almost same level of importance to product promotion and new look appeal factors.

FIG 15: IMPORTANCE TO PRODUCT PROMOTION AND NEW APPEAL

3.85

3.81

3.8

3.78 3.78

3.75

3.74 3.74 percentage percentage respondent(%) of

3.7

3.68

3.65 3.64

3.6

3.55 Word of mouth Brand image Style and deign Celebrity Ad frequency Store image Network of endorsement showrooms Importance to product promotion and new apperal

TABLE 16:IMPORTANCE TO BRAND IMAGE

Important level

Parameter 1 2 3 4 5 Weighted Average Score

I love this brand 8 6 11 23 22 3.64

Brand is special to me 3 5 14 30 18 3.78

This brand gives me a sense of 2 7 15 37 9 3.62 belongingness

This is a brand used by people like 1 13 17 25 14 3.54 me

I feel a deep connection with users 3 2 15 30 20 3.88 of same brand

I am interested in learning more 2 4 20 24 20 3.8 about this brand

I follow this brand closely 7 19 22 15 7 2.94

I would love to speak about this 4 8 9 30 19 3.74 brand to others

Overall importance to brand image the above table 16 shows = 3.63 the respondents importance given to various factors influencing brand image of the SUV being purchased by them. It is seen that overall importance level is 3.6 again quite a considerable score.

However we also see that the respondent’s importance rating is less on some variables like “I follow the brand closely”. This shows that consumers value brand image but are not in constant engagement with their brands.

FIG 16 IMPORTANCE TO BRAND IMAGE

I WOULD LOVE TO SPEAK ABOUT THIS BRAND TO OTHERS

I FOLLOW THIS BRAND CLOSELY

I AM INTERESTED IN LEARNING MORE ABOUT THIS BRAND

I FEEL A DEEP CONNECTION WITH USERS OF SAME BRAND

THIS IS A BRAND USED BY PEOPLE LIKE ME IMPORTANCE TO BRAND IMAGE TO BRAND IMPORTANCE

THIS BRAND GIVES ME A SENSE OF BELONGINGNESS

BRAND IS SPECIAL TO ME

I LOVE THIS BRAND

0 0.5 1 1.5 2 2.5 3 3.5 4 weighted

TABLE 17: AGE GROUP VS CAR TYPE