CONSUMER PREFERENCES AND SATISFACTION LEVELS TOWARDS LUXURY CARS A STUDY OF RAYALASEEMA REGION IN A. P.

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1 CONSUMER PREFERENCES AND SATISFACTION LEVELS TOWARDS LUXURY CARS A STUDY OF RAYALASEEMA REGION IN A. P. * DR. Godha Rama Krishna, Asst. Professor, Dept. of Management, Rayalaseema University, Kurnool, A.P., ** M.S. Narasimham, Lecturer, St. Josephs Degree College & Research Scholar in Management, Rayalaseema University, Kurnool INTRODUCTION : The automobile sector is considered as a prime driver for the growth of Indian economy and is important contribution to the global economy is unimaginable. The Indian automobile industry being one of the most vibrant sector, accounts for 7 % of the Country s GDP. According to the reports of , 31 % of the small cars that are being sold globally are being manufactured in India. The two wheelers segment with 81% market share is the leader of the Indian automobile sector owing to a growing middle class and a young population in the country. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. The overall Passenger Vehicle (PV) segment has 13 per cent market share. India being one of the major auto exporter has an expectations of growth rate for the near future. According to the statistics of April January 2016, growth of percent has been experienced over April January Indian automobile market is flooded with opportunities and has wide scope of development. Indian automotive industry has its roots in the 1940s and has seen substantial rise due to economic liberalization including 100% FDI in the sector. But, the market of luxury cars is little indifferent in India. Majority of the luxury cars are produced by foreign companies. It is at this juncture, a study is aimed to study about the luxury cars. Various initiatives are being taken by the Government and dominant players to make India a leader in the segment of two wheeler and four Wheeler market by SIGNIFICANCE OF THE STUDY : All the firms have started considering customer as the king or queen. Interestingly, after the liberalization of India s economy, the market place is flooded with many new players including the host of MNCs resulting the availability of more number of brands in every segment of the market. Automobile segment is one major area for any economy. Luxury cars market in India is dominated by foreign players. Moreover luxury cars are majorly confined to metro cities and developed cities. The presence of luxury cars in developing cities and towns is still a undiscovered phenomenon. It is at this juncture, a study of luxury cars is aimed to conduct in the backward region of Rayalaseema. REVIEW OF LITERATURE : Effective policy formulation always needs a thorough and continuous search into the nature of the reasons for, and the consequences of organisation. In line with this, some related earlier studies conducted by individuals and institutions are reviewed to have an in-depth insight into the issues of consumers behaviour. An overall view of a few studies is presented below. Amima Shoeb and Adeel Maqbool 1, has conducted a study entitled Growth of Indian Automobile Industry and concluded that, The automobile industry has an enormous growth and has created huge interest among the analyst, ploicy makers and researchers. The factors that has led to the growth of automobile industry is its favourable government policy and the role played by supporting industries.thus, it can be positioned as one of the world s most attractive automotive markets for both manufacturers and consumers and its benefits which provides support to economy, employement, stability for families employed by the automotive industry. Nidhi Agarwal 2, has published a paper entitled, Recent growth trends of automobile industry in India, and stated that, the Indian automobile industry has a prominent future in India. Apart from meeting the advancing domestic demands, it is penetrating the international market too. Favoured with various benefits such as globally competitive auto-ancillary industry; production of steel at lowest cost; inexpensive and high skill manpower; entrenched testing and R & D centres etc., the industry provide immense investment and employment opportunities. Various initiatives by the Government of India and the major automobile players in the 127

2 Indian market is expected to make India a leader in the Two Wheeler and Four Wheeler market in the world by Almost Selfgoverning cars are predicted to be on the streets by More than half the cars on the streets are going to be powered by diesel by High Performance Hybrid cars are likely to gain greater popularity among consumers. The Japanese auto maker Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.8 million units in India is probably the most competitive country in the world for the automotive industry. Walmik Kachru Sarwade 3, has conducted a study entitled Evolution and growth of Indian auto industry, and concluded that, the Automotive Industry being one of the key industries in India has received due attention and concerted efforts are being made for the rapid development of the Industry. These are well supported by various Government initiatives towards the development of the Indian Automotive Industry. The brief analysis above gives the optimistic view about the industry and the overall industry shows a positive growth which recommends the investors to keep a good watch on the major players to benefit in terms of return on investments. This analysis helps us to know the actual position of the industries in the present scenario. Eventually, it will be observed from the present study that this research methodology and findings may help in better functioning of the industries and may provide a good platform for further specific research activities in more detail. Haiyadri Sharma 4, has published a paper entitled A study of demographic characteristics influencing consumer behavior towards premium car brands and stated that, the study focuses on the demographic parameters of the premium car brand buyers and also the usage of evaluative criteria by them. It helps to explore the relationship between variables that affect the consumer's decision of buying luxury brand cars. This was the first time that these variables have been combined and applied to premium car industry. The outcomes of this study have demonstrated how the gender of respondents and evaluative determinants did have an impact on some consumer's premium car purchases in addition to the common premium car criteria. The results have given further insight into premium car as well as consumer purchasing in general. The implications of this research are of significance for marketers and scholars in the field of prestige brands. This study will help the marketing managers to better reposition their branding and advertising strategy to capture the correct target market to boost the sales in times where economy is at a challenge. The contribution is both useful from a market segmentation point of view and from a market positioning point of view. NEED FOR THE STUDY : The most important area of marketing is Consumer Behaviour. The essence of marketing concept is the satisfaction of the consumer. This requires a thorough understanding of consumer behaviour and their buying decision making process. Consumer behaviour is a fundamental ingredient in the marketing process. Consumer research plays an important role in new product introduction and overall increase in marketing expenditure and growing concern for improving productivity. Marketing producers, sellers and consumers are the integral partners in the market. The state of affairs and the status of any market situation depend on how the partners act, react and interact. Though several studies on the subject of consumer behaviour have been conducted the explorations on the subject have been meager. Automobiles is particularly luxury cars market is growing at a rapid speed and is gaining importance during the last decade. The usage of luxury car in urban areas has increased. During the last decade, a number of new brands and models were introduced and the people have wide variety of options before them. It was, therefore, considered meaningful to explore whether the Indian consumers displayed similar pattern of consistent brand consumption or differed significantly. In view of the above studies and the importance of consumer preferences and satisfaction levels, the present study is targeted at understanding consumer preferences and satisfaction levels with reference to luxury car users of Rayalaseema Region in Andhra Pradesh. OBJECTIVES OF THE STUDY : The primary objective of this study is to assess the consumer preferences and satisfaction levels with reference to luxury car users in Rayalaseema Region of Andhra Pradesh. The other objectives are: 1. To identify the preferences and mode of payment of luxury car users. 2. To examine the satisfaction levels towards various aspects of marketing mix 3. To assess the overall satisfaction towards luxury cars and 4. To offer suitable suggestions for further development of luxury car industry in India. METHODOLOGY SECONDARY DATA : In order to fulfil the objectives of the study, secondary data were collected. The secondary data pertaining to four districts of Rayalaseema Region viz. Anantapur, Chitoor, Kurnool and YSR Kadapa districts were collected from various government publications and records, the major source of secondary data being Census of India 2011 (provisional results), District Statistical Centre and Collectorate. The secondary data has been collected from various magazines, journals, daily newspapers, survey reports and reference books etc., SAMPLING : The study has been based on convenient sampling technique and a sample size of 125 luxury car users from each of Anantapur, Chitoor, Kurnool and YSR Kadapa districts were collected accounting to 500. After eliminating few partially unfilled questionnaires, the resultant sample size is 494. The sample covers various socio-economic backgrounds of the population. DATA COLLECTION : The data collected for the present study comprises of both primary and secondary sources. The primary data has been collected through questionnaire. 128

3 TOOLS OF ANALYSIS : The data collected through primary sources has been analysed with the help of simple statistical tools namely percentages and charts. DATA ANALYSIS AND INTERPRETATION : The primary and secondary data collected from different sources have been tabulated and interpreted meaningfully. The information has been represented in a simple way for better understanding. Table No. 1 : Details about the purchase of preferred vehicle Have you purchased the vehicle you preferred INFERENCE: It can be analysed from the table No. 1 that, among the users of luxury cars, majority of 88.10% of the respondents stated that, they have purchased the car they preferred and 11.9% of the users of luxury cars stated that, they couldn t purchased the car they preferred. Table No. 2 : Details about the purchase of new / used vehicle Vehicle you have purchased is a Vehicle Seconds) INFERENCE: It can be concluded from the table No. 2 that, among the users of luxury cars, majority of 88.3% of the respondents stated that, they have purchased new car and 11.7% of the users of luxury cars stated that, they have purchased a used (seconds) car. Table No. 3 : Details about the mode of purchase Mode of purchase yment ment (Finance) INFERENCE: It can be described from the table No. 3 that, among the users of luxury cars, majority of 70.0% of the respondents stated that, they have purchased by making full payment and 30.0% of the users of luxury cars stated that, they have purchased on instalment basis using finance facility. Table No. 4 : Details about satisfaction level towards product aesthetics / look Product aesthetics / look Satisfied ately Satisfied INFERENCE: It can be explained from the table No. 4 that, among the users of luxury cars with regard to satisfaction levels towards product aesthetics / look, majority of 65.0% of the respondents stated that, they are highly satisfied and 35.0% of the users of luxury cars stated that, they are moderately satisfied. Table No. 5 : Details about satisfaction level towards product design Product design Satisfied ately Satisfied INFERENCE: It can be illustrated from the table No. 5 that, among the users of luxury cars with regard to satisfaction levels towards product design, majority of 65.0% of the respondents stated that, they are highly satisfied and 35.0% of the users of luxury cars stated that, they are moderately satisfied. 129

4 Table No. 6 : Details about satisfaction level towards product quality Product quality Satisfied ately Satisfied INFERENCE: It can be observed from the table No. 6 that, among the users of luxury cars with regard to satisfaction levels towards product quality, majority of 76.9% of the respondents stated that, they are highly satisfied, 11.7% of the respondents stated as moderately satisfied and 11.3% of the users of luxury cars stated that, they are dissatisfied. Table No. 7 : Details about satisfaction level towards product comfort Product comfort Satisfied ately Satisfied INFERENCE: It can be stated from the table No. 7 that, among the users of luxury cars with regard to satisfaction levels towards product comfort, majority of 76.9% of the respondents stated that, they are highly satisfied and 23.1% of the users of luxury cars stated that, they are moderately satisfied. Table No. 8 : Details about satisfaction level towards product special features Product special features Satisfied ately Satisfied sfied INFERENCE: It can be understood from the table No. 8 that, among the users of luxury cars with regard to satisfaction levels towards product special features, majority of 53.2% of the respondents stated that, they are highly satisfied, 34.8% of the respondents stated as moderately satisfied and 11.9% of the users of luxury cars stated that, they are dissatisfied. Table No. 9 : Details about satisfaction level towards product price Product price (on road) Satisfied ately Satisfied INFERENCE: It can be visualised from the table No. 9 that, among the users of luxury cars with regard to satisfaction levels towards product price (on road), majority of 53.0% of the respondents stated that, they are highly satisfied and 47.0% of the users of luxury cars stated that, they are moderately satisfied. Table No. 10 : Details about satisfaction level towards service facility availability Service facility availability Satisfied Moderately Satisfied Dissatisfied Don t Know Total INFERENCE: It can be analysed from the table No. 10 that, among the users of luxury cars with regard to satisfaction levels towards service facility availability, 22.7% of the respondents stated that, they are highly satisfied, 41.7% of the respondents stated as moderately satisfied, 23.7% of the users of luxury cars stated that, they are dissatisfied and 11.9% stated it as Don t know. 130

5 Table No. 11 : Details about satisfaction level towards availability of qualified service personnel Qualified service personnel Satisfied ately Satisfied INFERENCE: It can be concluded from the table No. 11 that, among the users of luxury cars with regard to satisfaction levels towards availability of qualified service personnel, majority of 58.7% of the respondents stated that, they are moderately satisfied and 41.3% of the users of luxury cars stated that, they are highly satisfied. Table No. 12 : Details about satisfaction level towards promotional aspects Promotional aspects Satisfied ately Satisfied INFERENCE: It can be described from the table No. 12 that, among the users of luxury cars with regard to satisfaction levels towards promotional aspects, majority of 59.3% of the respondents stated that, they are moderately satisfied, 29.4% of the respondents stated as highly satisfied and 11.3% of the users of luxury cars stated that, they are dissatisfied. Table No. 13 : Details about satisfaction level towards usage of latest technology Usage of latest technology in imparting service Satisfied ately Satisfied INFERENCE: It can be explained from the table No. 13 that, among the users of luxury cars with regard to satisfaction levels towards usage of latest technology for imparting service, 41.1% of the respondents stated that, they are highly satisfied, 47.6% of the respondents stated as moderately satisfied and 11.3% of the users of luxury cars stated that, they are dissatisfied. Table No. 14 : Details about overall satisfaction towards present brand Please rate your overall satisfaction towards your present brand of vehicle Satisfied INFERENCE: It can be illustrated from the table No. 14 that, among the users of luxury cars with regard to overall satisfaction level towards present brand of vehicle, majority of 88.7% of the respondents stated that, they are highly satisfied and 11.3% of the users of luxury cars stated that, they are moderately satisfied. SUGGESTIONS : It is suggested to take up following measures for further improvement of luxury cars market in Rayalaseema Region of A.P.: Measures to be taken to increase the service quality thereby increasing customer satisfaction. Service personnel should be trained properly in treating and responding to the customers. Physical evidence should be maintained both in the sales and service aspects making the sense felt by the customers. LIMITATIONS OF THE STUDY : In a study of this magnitude though, meticulous care has been taken in each and every aspect of study. Certain limitations are likely to be there in the study. A few respondents were hesitant to give details. There might be a sense of bias crept in answers given by the respondents. 131

6 REFERENCES 1. Amima Shoeb and Adeel Maqbool, Growth of Indian Automobile Industry, International Journal of Emerging Research in Management & Technology, May 2017, Volume -6, Issue 5, ISSN: Nidhi Agarwal, Recent growth trends of automobile industry in India, Indian Journal of Applied Research, July 2015, Volume- 5, Issue 7, ISSN: X. 3. Walmik Kachru Sarwade, Evolution and growth of Indian auto industry, Journal of Management Research and Analysis, April June 2015, 2(2). 4. Haiyadri Sharma, A study of demographic characteristics influencing consumer behavior towards premium car brands Pacific Business Review International, October 2015, Volume -8, Issue -4, 132