A Study of Buying Behaviour of Customers Towards Small Car Segment in Haryana

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1 Interntionl Journl of Entrepreneurship nd Smll Business Mngement. olume, Number (), pp. Interntionl Reserch Publiction House A Study of Buying Behviour of Customers Towrds Smll Cr Segment in Hryn Dr. D.P. Wrne nd Kvit Rni Associte Professor, Deptt. of Commerce, Chudhry Devi Ll University, Sirs, Hryn Doctorl Scholr, Deptt. of Commerce, Chudhry Devi Ll University, Sirs, Hryn Emil: dpwrne_mgt@yhoo.com, dpwrne@gmil.com, Emil: kvitmdl@gmil.com. Abstrct This study minly focuses on influencing vribles which hve direct bering on customers buying behvior towrds smll crs in Sirs district. The informtion ws collected from different res of Sirs district with the prticulrly help of questionnires. Fctor nlysis nd ANOA hve been used on dt of vribles to test the significnt difference between the groups of respondents tht hve the most significnt effect on customers behviour towrds smll crs. The totl of respondents hd been tken s smple. The findings indicte tht fctor is t the top by which customers mke their psychologicl opinion for buying (Men) followed by fctor fter showroom vribility (Men), these fctors become more effective nd fctor personl desire (Men.) nd fctor finncil views (Men) re less effective. The nlysis of the study reveled n understnding of the customers differ significntly by gender, ge, eduction, occuption nd monthly income. The results of the study set up reltionship between the vribles which ffect the customer s buying behviour regrding smll cr segment. Keywords: Buying behviour ptterns, Psychologicl fctors, Fctor nlysis, nd ANOA.

2 Dr. D.P. Wrne & Kvit Rni. Introduction The individuls mke decisions relted to spend their vilble resources, i.e. time, money, nd efforts on consumptionrelted items nd mke pln like wht to buy, when, why, where, how often to buy nd how often to uses it. The gol of studying customers behviour is to stisfy their needs. The study of customers behviour hs been conducted by wy of nlysis of fctors tht influence purchse decisions nd product use. Philip kotler remrks tht customers re neither so simple tht they do not require to be studied, nor so complex tht their study is impossible the study of customers behviour provides sound bsis for identifying nd understnding customers needs. The study of customers' behviour is concerned with customers buying behviour rther thn consumption. It is sometimes esy nd sometimes impossible, to predict the behviour of people. Accurte prediction cn yield vst fortunes nd inccurte predictions cn result in the loss of millions of rupees. It is complicted tsk, filled with uncertinties, risk nd surprises. In recent er business round the world recognizes tht customer is the king. Knowing why nd how people consume products helps mnufcturers nd mrketers to understnd how to improve existing products wht types of products re needed in the mrket plce or how to ttrct customers to buy their products. Mrketers cn justify their existence only when they re ble to understnd customers wnts nd stisfy them. For exmple, if mnger knows through reserch tht fuel milege is the most importnt ttribute for certin mrket, the mnufcturer cn redesign the product to meet those criteri. A cr tht stisfies the needs of owners for trnsporttion lso obtin psychologicl stisfction from the possession of products. For the purpose of this study, the personl vribles like gender, ge, income, occuption, eduction, etc., hve been selected nd the influence of these personl vribles on the customers perception, their buying behviour nd the decision process hve been nlyzed. The behviour of customers is ffected by vrious uncontrollble vribles lso vi economic, socil, psychologicl, technicl nd personl fctors. In economic fctor we include personl income, fmily income, stndrd of living, economic condition. The recent cut down of the growth certin sectors of the vehicle industry hve estimte for the uto component sector in is %.. Review of literture Mndeep Kur nd Sndhu () ttempted to find out the importnt fetures which customer considers while going for the purchse of new cr. The study covers the owners of pssenger crs living in the mjor cities of the Stte of Punjb nd the Union Territory of Chndigrh. The respondents perceive tht sfety nd comfort re the most importnt fetures of the pssenger cr followed by luxuriousness. So the mnufcturers must design the product giving mximum weight ge to these fctors.

3 A Study of Buying Behviour of Customers Towrds Smll Cr Segment S. Subdr, Dr. K. M. Murugesn, Dr. R. Gnpthi () exmined tht demogrphic fctors to understnd the buying behviour by fmily size, occuption, ge, eduction qulifiction, life style re the mjor fctors which ffect customers behviours. The study covers the customer's perception of cr owners of Nmkkl district. Descriptive Sttisticl tools such s Men, Medin nd Stndrd devition hve been used to describe the profiles of customers, preferred product ttributes nd level of stisfction. TTest, FTest nd ANOA hve been used to test the significnt difference between the groups of respondents in their perception nd stisfction for selected independent vribles like ge, sex nd income. ChiSqure test hs lso been used to test the ssocition between the customer s demogrphic chrcteristics nd preferred product ttributes nd stisfction. A.M.Elnthiriyn, Dr..Blkrishnn () nlyzed tht mrketers cn justify their existence only when they re ble to understnd customers wnts nd stisfy them for exmple if mnger knows through reserch tht fuel milege is the most importnt ttribute for certin trget mrket, the mnufcturer cn redesign the product to meet tht criterion. The study covers the cr owners of Selm district in Tmilndu. The demnd for the smll cr segment is incresing becuse of the growing number of nucler fmilies, driving comfort, technology etc. M.S.idyrthy () stted tht customers lifestyle effect the customers behviour of cr owners living in chenni. The study comprised fctors like pick up, design, milege, brnd, technology, sttus, lifestyle, grip to consider customer behviour. It lso includes sociologicl, psychologicl, personl, technologicl fctors to judge customer behviour. A Simple Rndom smpling technique ws dopted in the study to select the smple respondents. Dt were collected through n interview schedule regrding the perception of the respondents on the usge of Automobiles. Descriptive sttisticl tools such s Percentge, Men, Medin nd Stndrd devition hve been used to describe the profiles of customers, preferred product ttributes nd level of stisfction. H.S.Adithy () nlyzed four mjor determinnts of customers' behviour, nmely culturl, socil, economic, personl nd psychologicl. The study covers the customer s perception nd behviour of cr owners in Bnglore city. Most of the respondents believe tht brnd imge, celebrity, dvertisement, price, discount, stisfction re most importnt fctors while purchsing cr. G.Syml (), studied the stisfction level of customers who own smll cr. The reserch covered the res of Aundh, Pshn, Bner in Pune, Mhrshtr. It cn be concluded by sying tht customers formed hppy to purchse nd stisfied with smll crs. Smll Crs hve truly gined populrity due its ffordbility fctor nd low cost over period of time. Nirv R ys () nlyzed the effect of the profession over buying behviour towrds the cr. This covers the impct of country origin of cr purchsing decision with different profession. This pper is n ttempt to probe into niche segment of customers nd to find out whether the country of origin of the brnds of crs, mke

4 Dr. D.P. Wrne & Kvit Rni significnt impct positively or negtively towrds the buying behvior of the customers.. Objectives. To study the customers preference towrds smll cr segment.. To identify the mjor fctors influencing the decision to buy smll cr. To find the importnt ttributes of cr tht influences the decision to purchse smll cr. Reserch Methodology Hypothesis H = There is no significnt effect of demogrphic vribles of customer on fctors influencing buying behviour. Relibility nd lidity: The response of items selected for respondents generlly mking n opinion before buying smll cr were collected in point likerts scle for strongly gree, for gree, for neutrl, for disgree nd for strongly disgree. The interctive cronbch s Alph vlues for relibility in responses of respondents were found.. The different items in the question contin the questionnire cover the contents of reserch significntly. Smple Size nd Dt Collection Method: Non probbility convenience cum judgment smpling ws used nd responses of customers were tken from different res of Sirs district. For nlysis men, stndrd devition, fctor nlysis hs been pplied. For confirmtion of descriptive sttistic ftest sttistic is used. To test the ppropriteness of fctor nlysis technique correltion between the vribles re checked nd KeiserMeyerOlkin (KMO) mesure of smple dequcy is lso used for the sme. The popultion correltion mtrix is n identicl mtrix, is rejected by Brtlett s test of sphericity. The pproximte Chisqure vlue is. with degree of freedom, which is significnt t levels. The vlue of KMO sttistic,. is lso lrger thn. Further, principl component nlysis method is used for extrction of vrible for the component (fctor) concerned. The extrction communlities, vergely for ech vrible hs been found which is the mount of vrince vrible shre with ll the other vribles being considered. It is lso the percentge of vrince explined by common fctors. Theoreticlly, smple size is enough to clculte fctor nlysis. The overll items explined by reproduced correltion mtrix in opinion mking of buying towrd cr hs shown tht % nonredundnt residuls with bsolute vlues greter thn, representing stisfctory model fit.

5 A Study of Buying Behviour of Customers Towrds Smll Cr Segment. Anlysis nd interprettion Tble : Descriptive Sttistics. Me n Std. Devition Anlysis N To wht extent dvertisement influence you to buy. the cr? To wht extent deler influence you to buy the cr?. To wht extent fmily members influence you to buy. the cr? To wht extent friends influence you to buy the cr?. To wht extent reltives influence you to buy the cr?.. To wht extent technicin council influence you to. buy the cr? To wht extent color influence you to buy the cr? To wht extent discount scheme influence you to buy. the cr? To wht extent fter sle services influence you to. buy the cr? To wht extent finncil fcilities influence you to buy the cr?. To wht extent interiors influence you to buy the cr?. To wht extent resle vlue influences you to buy the. cr? To wht extent spce influence you to buy the cr?. Services Price Milege Smooth Ride. Luxury. lue for money Mintennce Looks. Comfort. Sfety. Source: Primry (Dt Processed Through PASW Sttistic) Tble shows descriptive nlysis, sttistics which give the vlue of the men nd stndrd devition for mking n nlysis of the totl smple size tht is. If the vlue comes between (.) then it comes under th position, if the vlue comes between (.) then it comes between th position, if the vlue comes between (

6 Dr. D.P. Wrne & Kvit Rni.) then the vlue comes between rd position, if the vlue comes between (.) then the vlue comes between nd position nd if the vlue comes between the (.) then the vlue comes between st position. Tble : Correltion mtrix. Recti on Items Corr elti on

7 A Study of Buying Behviour of Customers Towrds Smll Cr Segment..... Source: Dt Processed Through PASW Sttistic Tble shows the correltion mtrix which tells bout the correltion with ech vrible. The interior portion of the tble contins correltion coefficient for ll pirs of vribles. The vlues long the digonl, which represent ssocitions between ech vrible nd itself, equl +. This digonl lso serves s line of symmetry. Correltion mtrix contins the correltion coefficient s well s significnt vlues nd

8 Dr. D.P. Wrne & Kvit Rni smple size for the dt used to nlyze ech pir of vribles. This tble gives the correltion between the originl vribles. Before conducting principle components nlysis, we wnt to check the correltion between the vribles. There should be t lest items which show the vlue bove thn. There re vribles in this tble nd vribles tht hve vlue bove thn, so this tble fulfill the condition. Tble : KMO nd Brtlett's Test KiserMeyerOlkin Mesure of Smpling Adequcy.. Brtlett's Test of Sphericity Approx. ChiSqure. Df Sig. Source: Dt processed through PASW sttistics version Tble shows the vlue of KMO (KeiserMeyerOlkin) nd brlett s test. To test the ppropriteness of fctor nlysis techniques correltion between the vribles KeiserMeyerOlkin (KMO) mesure of smple dequcy is used for the sme. The popultion correltion mtrix is n identity mtrix, which is rejected by the Brtlett s test of sphericity. The pproximte Chisqure vlue is. with degree of freedom, which is significnt t level of significnce. The vlue of KMO sttistic is. which is more thn. Tble : Communlities. Initil Extrction To wht extent dvertisements influence you to buy the cr? To wht extent deler influence you to buy the cr?. To wht extent fmily members influence you to buy the cr? To wht extent friends influence you to buy the cr? To wht extent reltives influence you to buy the cr? To wht extent technicin council influence you to buy the cr? To wht extent color influence you while purchsing cr? To wht extent discount scheme influence you while purchsing cr? To wht extent fter sle service influence you while. purchsing cr? To wht extent finnce fcility influences you while purchsing cr? To wht extent interior influence you while purchsing cr?. To wht extent resle vlue influences you while purchsing cr?

9 A Study of Buying Behviour of Customers Towrds Smll Cr Segment To wht extent spce influence you while purchsing cr?. Services Price Milege Smooth Ride Luxury lue for money. Mintennce Looks. Comfort. Sfety. Source: Dt processed through PASW sttistics Extrction Method: Principl Component Anlysis. Tble shows the communlities mtrix which shows ech vrible shre vrition with ech other. Communlities re for correltion nlyses the portion of vrince ccounted for in ech vrible by the rest of vribles. This is the proportion of ech vrible s vrince tht cn be explined by the principl components extrction communlities for ech vrible is lso clculted which give the verge of ech vrible hs been found which is the mount of vrince vrible shre with ll the vribles being considered. They re reproduced vrinces from the number of components tht we hve sved. Compon ent Initil Eigen vlues Tot l. % of ri nce Tble : Totl rince Explined. Cumul tive %..... Extrction Sums of Squred Lodings Tot % of Cumul l ri tive % nce Rottion Sums of Squred Lodings Tot % of Cumul l ri tive % nce...

10 Dr. D.P. Wrne & Kvit Rni Extrction Method: Principl Component Anlysis. Source: Dt Processed Through PASW Sttistic Tble no shows the totl vrince explined tble Eigen vlues re the vrince of the principl components.it shows tht Eigen vlue greter thn (defult option) result in fctors being extrcted. From the cumultive percentge of vrince ccounted for of the totl vrince by these extrcted fctors. The first component ccounts for the most vrince nd hve the highest Eigen vlue, nd the second component ccount for the next vrince fctor nd so on. Chrt

11 A Study of Buying Behviour of Customers Towrds Smll Cr Segment The scree plot shows the distinct brek occur t fctors. It shows component numbers on xxis nd Eigen vlue on yxis.in chrt till vrible the Eigen vlue is greter thn nd fter the th vrible the line is lmost goes flt. Components with Eigen vlue greter thn show high vrince nd Eigen vlue less thn show less vrince. Tble : Component Pttern Mtrix Rect Component Mtrix Rotted Component Mtrix ion items

12 Dr. D.P. Wrne & Kvit Rni Source: Dt Processed through PASW sttistics Extrction Method: Principl Component Anlysis ) components extrcted. b) Rottion method: vrimx with Kiser normliztion Tble no. shows the component pttern mtrix.it shows the coefficient used to express the stndrdized vrible in the term of fctors. These coefficients represent the correltion between the fctors nd vribles. The component mtrix shows the reltionship between fctors nd vrible.the correltion possible vlues rnge from to +. The rotted component mtrix is used for interpreting fctors. Ech fctor composed of tht vrible loded or higher loding on tht fctor.in cse where two vrible re loded or higher thn the highest loding is tken on tht fctor by ignoring the minus nd plus sign. The purpose of the rottion is to mke things esier for the structure of the nlysis, so tht ech fctor will hve nonzero lodings for only some of the vribles without ffecting the communlities nd the percentge of vrince explined. Rectio n items Repr oduc ed Corre Tble : Reproduced Correltions.

13 A Study of Buying Behviour of Customers Towrds Smll Cr Segment ltion......

14 Dr. D.P. Wrne & Kvit Rni Source: Dt Processed Through PASW Sttistics Extrction Method: Principl Component Anlysis. ) Reproduced communlities b) Residuls re computed between observed nd reproduced correltion. There re (%) non redundnt residuls with bsolute vlues greter thn.

15 A Study of Buying Behviour of Customers Towrds Smll Cr Segment Tble shows the reproduced correltion which contins two items i.e the difference between the reproduced correltion mtrix nd the originl correltion mtrix is the residul mtrix. The reproduced correltion mtrix is the correltion mtrix bsed on the extrcted components. The reproduced correltion mtrix of overll items extrcts fctors ffecting buying behviour which hs shown (%) non redundnt residuls with bsolute vlues greter thn, indicting stisfctory mking the model fit Tble : Overll item vrition explined in fctor wise. Fctors F F F F F F F Fctors interprettion (% of vrince explined) Personl desire (.) Technicl nd Finncil view () Psychologicl () After showroom vribility(. ) Reference group() Promotionl (.) Counseling (.) Coefficient vlue rible Fctor Items. Smooth ride (v). Luxury (v). Looks (v). Comfort (v). Sfety (v) Services (v) Price (v). Milege (v). lue for money (v) Mintennce (v) Color (v). Interior (v). Spce (v). After sle services(v). Resle vlue(v). Fmily members(v). Friends(v). Reltives(v). Advertisement (v) Discount schemes (v) lon fcility(v). Deler(v) Technicin council(v) Source: Dt Processed Through PASW Sttistic

16 Dr. D.P. Wrne & Kvit Rni Tble : Overll confirmtion of fctors ffecting buying behviour by demogrphic vrible. Fctors. Personl desire Smooth ride Luxury Looks Comfort Sfety. Technicl nd finncil Fcets Services Price Milege lue for money Mintennce. Psychologic l Color Interior Spce Confirmtory Sttistics Me Gender Age Eductio Occupti Monthly n n on Income f S f S f S f S f S vlu vlu vlu vlu vlu vlu vlu vlu vlu vlu e e e e e e e e e e *. *.... *.. *.. * *.... *

17 A Study of Buying Behviour of Customers Towrds Smll Cr Segment. After showroom vribility After sle services. *.... * * Resle vlue * * *. Reference.. group * Fmily. * * Friends. * Reltives... Promotionl. * * Advertising. * * * * Discount... scheme *. Finnce * fcility. Counseling.... * * * Deler.. * * * Technicin. council * Source: Primry (Dt Processed Through PASW ersion) Tble shows the ANOA vlue nd the significnce vlue of demogrphic vrible such s gender, ge, eduction, occuption nd monthly. Fctor (personl desire) hs no significnt effect on demogrphic vribles, however, occuption hve effects on personl desire specilly on sfety. Fctor (Technicl nd finncil fcets) is ffected by eduction vrible nd in fctor vrible service nd milege is ffected by eduction nd price is ffected by ge. Fctor (psychologicl) fctor hs no effect on demogrphic vrible, but ge hs n effect on color nd occuption hs n effect on spce. Fctor (fter showroom vribility) hs the effect of monthly, income nd eduction. In fctor eductions hve n effect on fter sle services, Gender, occuption nd monthly income hve significnt effect on resle vlue. Age hs significnt effect on reference group. In fctor Gender nd monthly income

18 Dr. D.P. Wrne & Kvit Rni hve significnt effect on fmily nd ge hs n effect on friends. Age nd monthly income hve significnt effect on promotionl vribles (fctor ). Wherever gender, ge, eduction, monthly income hs significnt effect on dvertising nd Age hs significnt effect on discount scheme, Monthly income hs significnt effect on finnce fcility. Eduction, occuption, monthly income hs significnt effect on counseling. In fctor delers hve significnt effect on eduction, occuption nd Monthly income hve significnt effect on technicin counselling.. Conclusion nd Suggestions Customer behviour consists ll dimensions of humn behviour tht helps in mking purchse decision.an understnding of the customers behviour enbles mrketer to tke mrketing decisions which re comptible with its customers needs, There re four mjor dimensions of customers behviour nmely, culturl, socioeconomic, personl nd psychologicl. The demogrphic determinnts of customers' behviour consist of gender, ge, eductionl qulifiction, occuption, monthly income. Fctor (personl desire) nd fctor (technicl nd finncil fcets) hs men to identify customer behviour with vlue (.) nd () which is less effective in comprison with fctor (psychologicl) nd fctor (fter showroom vribility) which hve highest men vlue tht is () nd () re more effective. According to this study monthly income is vrible tht ffects the customer behviour regrding buying smll cr nd ge, eduction nd occuption hve comprtively but less effect on customer behviour. Suggestions: It is recommended on the bsis of the study tht the price of the cr should be t pr or slightly lower so tht the customers my purchse cr insted of using vn or txi nd further vehicle mnufcturers should improve the knowledge of customers bout the opertions nd mintennce of vehicles.. Further re of Reserch The study hs covered nd nlyzed questionnires for tking the customers view bout the vrious questions long with vribles. This study covered the district of Sirs only. It my be extended with more items nd more question in other districts of the stte to hve understood the customers' behviour regrding smll crs. References [] A.M.Elnthiriyn,. (). Customers Perceptions nd Behviour: A Study with Specil Reference to Cr Owners in Slem District of Tmilndu. Interntionl Journl of Mngement Reserch nd Review, (),.

19 A Study of Buying Behviour of Customers Towrds Smll Cr Segment [] Adhity, H. S. (). customers perception nd behviour of cr owner An empiricl study in bnglore district. GRAGlobl Reserch Anlyse,. [] Blkrishnn Menon, J. R. (). Dominnt Men Percentge Score Fctors of The Customers Purchse Behviour of Pssenger Crs. Interntionl Journl of Reserch in IT & Mngement, (),. [] G. Rm Krishn, D. P. (). Customers Behviour Towrds Smll Crs A Cse Study of Nlgond District in A. P. Interntionl Journl of Reserch in Computer Appliction & Mngement, (),. [] Joshi, S. P. (). Customers Behvior for Smll Crs: An Empiricl Study. Interntionl Monthly Refereed Journl of Reserch In Mngement & Technology, II,. [] K.idyvthi. (). Customers Lifestyle Influence of Customers Behviour With Reference To Automobile Industry In Chenni. Interntionl Journl of Multidisciplinry Reserch, (),. [] M.Suresh, R. (). Customerss Attitudes Towrds Cr in INDIA Some Relities. Globl Reserch Anlysis, (),. [] Nirv.R.ys,.. (). An Anlysis of buying behvior of doctors towrds MNC vis vis Domestic brnd of crs With specil reference to Rjkot & Jmngr. PripxIndin Journl of AppliedReserch, (),. [] Pchuri, M. (). Customers behviour: A literture review. The Mrketing Review, (),. [] Phdtre, A. M. (). A Study Of Imc Mix & Customers Buying Behvior With Specil Reference To Smll Cr Segment In Str District. Indin Strems Reserch Journl, (),. [] S. Subdr, K. M. (). Customers Perceptions nd Behviour: A Study with Specil Reference to Cr Owners in Nmkkl District. Sri Krishn Interntionl Reserch & Eductionl Consortium (APJRBM), (),. [] S.Jbseeli Nnleen, A. (). A Study on Customers Perception of Tt Ltd. Interntionl Journl of Reserch in Computer Appliction & Mngement, (),. [] Skshi Modi, T. J. (). Customers Buying Behviour: Chnging Shopping Ptterns. Interntionl journl of Business Mngement Economic Reserch, (),. [] Shende,. (). Anlysis of Reserch in Customers Behviour of Automobile Pssenger Cr Customer. Interntionl Journl of Scientific nd Reserch Publictions, (),. [] Shrirm, S. (). A Study on Customers Buying Behviour for Cr users in Pune City. Ntionl Monthly Reffered Journl of Reserch in Commerce nd Mngement, (),. [] Syml, G. (). Stisfction of Smll Cr Owners in Select Ares of Aundh, Bner nd Pshn in Pune City. Interntionl Journl of Reserch in Computer Appliction & Mngement, (),.

20 Dr. D.P. Wrne & Kvit Rni [] Thmri Selvi N, N.. (). A Study on the Indin Smll Cr Mrket And Fctors Influencing Customers Decisions towrds Purchse of Smll Crs'. Interntionl Journl of Reserch in Computer Appliction & Mngement, (),.