Relationship between Socio-Economic Status and Post-Purchase Behaviour of Maruti car customers

Transcription

1 Relationship between Socio-Economic Status and Post-Purchase Behaviour of Maruti car customers R.Sivakumar Asst. Professor Management Wing, Directorate of Distance Education Annamalai University, Annamalainagar Dr.N.Kumarasamy Associate Professor Management Wing, Directorate of Distance Education Annamalai University, Annamalainagar Abstract This article is aimed at ascertaining the extent of influence of socio-economic status on postpurchase behavior of customers of Maruti car. The post-purchase behavioral factors considered for the study are: frequency and purpose of using car and reasons for buying same brand car again when it arises. The study covers 550 randomly selected Maruti car owners in Cuddalore district. The descriptive analysis is used to ascertain the status of post-purchase behavior. The canonical correlation analysis, a multivariate technique, is used to unravel the relationship between socio-economic status and post-purchase behavior of the Maruti car users. The results of the analysis have elicited that promptness and quality with low cost service are the reasons for inducing the Maruti car owners behave positively towards considering the purchase of same brand car again. Key Words: Socio-Economic Status, Post purchase behaviour, Canonical Correlation Analysis, Maruti Brand. In the present competitive world, understanding the consumer is a necessity for marketers of any products as consumer needs and preferences are continuously changing due to changes in their demographics and lifestyles. These changes can become great business opportunities for alert marketers and threats for marketers who fail to adapt. Consumers dispose off the products and services created by organizations after acquiring and consuming them. While consuming the product, they go through several mind oriented and behavioral processes while making their purchase and consumption decisions. Their knowledge on how they decide one brand instead of another as well as the factors that influence their decision-making is crucial for marketers, not only to cater to the existing needs of their consumers but also to prepare for their future needs. This knowledge is also essential to make various business decisions related to product development, packaging, pricing, distribution, promotions, communication, etc. Moreover, the growth of consumerism and consumer legislations have led the researchers to take special interest in the study of buyer behaviour and the formulation of marketing mix so as to gain positive buyer response in the market place. Buyer behaviour is a complex and it is very difficult to predict its phenomenon as changes in buying pattern are taking place at an alarming speed. Therefore, in the highly competitive marketing environment, the marketers have to basically understand the factors governing buyer behaviour as it is necessary for the long-run existence of the organization. Hence, an attempt is made in this article to study the post behaviour of car customers with reference to Maruti brand cars as research work on this are will given various implications to the other researchers and car manufacturers. Post Purchase Behaviour Post-purchase behavior involves all the consumers' activities as well as their experiences with products that follow the purchase. Usually, after making a purchase, consumers experience postpurchase satisfaction / dissonance, i.e., they often happy with or regret their purchase decision. The > RJSSM: Volume: 04, Number: 07, November 2014 Page 55

2 reasons for this kind of high post-purchase attitude can be attractiveness and performance of forgone alternatives, difficult purchase decision, large number of alternatives, etc. A high level of agreeing or conflicting attitude among the consumers during post-purchase period positively / negatively affect their level of satisfaction the consumer draws out of product usage. Review of Literature As observed by Wilkie (1994), consumers behaviors are physical emotional and mental activities to satisfy the needs and demands of the consumers when people select, buy, and use goods and services and to discard the product [1]. Hawkins et al (2006) have said that an organization can continue to survive if it can supply consumer needs and demands with a comprehensive understanding of them. This shows the importance of studying consumer behavior [2] Kotler and Armstrong (2006) have stated that making his decision, the buyer considers many factors classified in four categories. In many authentic marketing texts, these factors are categorized generally as: cultural factors, social, personal and psychological categories. Although marketers cannot influence many of these factors, identifying these factors is important to identify potential buyers and make products to meet these needs. Each of these factors has a special dimension. Social factors play a special role in the decision of the buyer s purchase [3]. As stated by Kotler (2009), customers may not know their own deeper inner motivation or they may react to affecting factors in the last moment and simply change their mind. However, marketers should consider their customers requests, intakes and buying behaviors. He further stated that buying behavior of individuals is often unconsciously affected by some factors. One of these factors is social factors. Social factors play an important role in the decision of buying certain products, including the most sensitive products such as cars. Car production has an important role in the lives of people [4]. Mahapatra, Kumar and Chauhan (2010) have indicated that product performance significantly influencing the consumers future purchase decision. The product attributes such as pollution, ignition, battery performance and pickup are highly influencing the consumers future purchase decision [5]. According to Stella and Rajewari (2012), relationship Marketing is an influential asset for consumer behaviour analysis as it has a keen interest in the re-discovery of the true meaning of marketing through the re-affirmation of the importance of the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. The Indian economy is set to grow rapidly through improved public transport and intensified competition and the rural people are graduating to higher income. Rising income has enhanced the purchasing power and more and more people are able to afford a car. Improved public transport is likely to impact the four -wheeler segment rather than the two-wheeler segment [6]. Anitha and Kanimozhi (2013) have assessed expectations, perceptions, and post purchase behaviour of Mahindra scooter customers, which will enable both the manufacturer and the distributors to know about the customers' expectations, perceptions, and post purchase behaviour, that in turn helps to reduce the post purchase dissonance and aids in enhancing customer satisfaction [7]., Objectives of the Study 1. To evaluate the status of consumers behavior in respect of frequency of using the car and assets the post-sales behavior of dealers as perceived by consumer. 2. To analyze the relationship between socio-economic status and post-purchase behavior of Maruti car customers. Methodology The present study is primarily based on primary data. The study covers 550 respondents selected randomly among the population of different model Maruti brand car users in Cuddalore district. The socio-economic profile of the sample respondents are shown in Table I. of To evaluate the post-behaviour of Maruti car customers, the sample customers in (respondents) are asked to give their views about frequency and purpose of using car per week and reasons for purchasing again the same brand car. > RJSSM: Volume: 04, Number: 07, November 2014 Page 56

3 Table I: Socio-Economic Profile of the Respondents Profile Number of Respondents % to Total Age (in Years) <= > Education Secondary Graduates Post-Graduates Occupation Self-employed Government Employee Private Employee Location Rural Urban Family Income (Monthly) Up to Rs Rs > Rs Total Sample Source: Primary Data To obtain the respondents opinion about frequency of using care per week, 6 different usage options are included in the questionnaire. The scale values used for obtaining the opinion of the respondents for purpose of using car range from Never, Less than once, One two times, Three to four times and Almost every day. The above qualitative values are assigned with numerical values from 1 to 5 for Never to Almost every day. The respondents views on their intention to buy the same brand car again, 9 statements characterizing the various aspects of the car are included in the questionnaire with scale value ranging from strongly disagree, disagree, neutral (neither disagree nor agree, agree and strongly agree. For the purpose of analysis, the qualitative value are converted into quantitative value by assigning 1 for strongly disagree, 2 for disagree, 3 for neutral (neither disagree nor agree), 4 for agree, and 4 for strongly agree. As respondents opinion ranges from 1 to 5, the opinion of entire sample is considered to be Never / strongly disagree, Less than once / disagree, One two times / neutral (neither disagree nor agree), Three to four times / agree, and Almost every day / strongly agree if the obtained mean value to 5 (score for Almost every day / strongly agree ) is 0 20 per cent, per cent, per cent, per cent and per cent respectively. Results and Discussion Table II provides the descriptive analysis results eliciting the frequency of using car by purpose per week. It is understood that using car is almost every day for travelling to near by places (% mean = 84.4) and commute to work (% mean = 81.4) among Maruti car owners. While using the car for shopping and picking up family members / children has been 3-4 times per week, using the car for picking up the children from schools and for social activities is 1-2 times per week. The major purpose of frequently using car is found to be for travelling to near by places and commute to work. Regarding reasons for purchasing again the same brand car, Table III shows that the Maruti car owners tend to buy the same brand again as it is cost effective and easy to maintain (% mean = 86.5), best performance (% mean = 81.6), good dealer service (% mean = 81.2) and used by many people (% mean = 80.9). The For buying the same brand car again is also due to design and style of the car (% > RJSSM: Volume: 04, Number: 07, November 2014 Page 57

4 mean = 80.3), good warranty (% mean = 78.7), matching with prestige / status (% mean = 74.1) and high technology (% mean = 68.5%). Overall, it is found that the primary reason for buying same brand car again among Maruti car owners is cost effectiveness and easy maintenance followed by best performance and good dealer service. With regard to relationship between frequency of using car by purpose per weak and socio economic status (age, education, occupation, area of residence and family income), Table IV and V show the results of canonical correlation analysis As shown in Table III, first three canonical functions with canonical correlation of more than 0.30 and significant at one per cent level. The first function with correlation of and shared variance of per cent (Canonical R 2 = ) reveals strong relationship between linear composites of variables in the criterion and predictor set. From the canonical loadings of the variables with respective canonical variates reported in Table V, it is evident that the age followed by education has high loading on linear composite of socioeconomic status variable. The loading is positive for age and negative for education. With linear composite of reasons for purpose of using car, picking up family members / children has high loading followed by travelling to near by places, commute to works and shopping. The loadings of all these four reasons are positive. is highly pronounced by age and education. Hence, it is likely to use the car often for picking up family members / children, travelling to nearby places and commute to works among Maruti car owners who are aged and less educated. Similarly, from the second function, it is understood that using the car for picking up children from schools and commute to work is likely to be high among young Maruti car owners who are less educated and with low occupational status. As per third canonical function, it is found that frequency of using car for social activities is more among Maruti car owners belong to low income families residing in rural areas. As depicted in Table VI, first, second and third canonical function correlating the linear composites reasons for purchasing the car again and socio-economic status of Maruti car owners are significant with correlation of , and (> 0.30 for all) and shared variance of per cent, per cent and per cent (Canonical R 2 ) respectively. The canonical loadings with first function depicted in Table VII shows that the Maruti car owners in the lower age levels with less educational status (canonical loading for education is positive whereas the canonical loadings of reasons with their canonical variates are negative) tend to buy the car gain as they can resolve any problem on first visit and promptness in carrying out the repair work in service centre. From the loadings of variables in criterion and predictor set with second canonical function, it is apparent that the Maruti car owners with low occupational status is likely to buy the same brand car again because of promptness in carrying out the repair work, quality of work done and promptness in handling service in service centre. Similarly, based on the canonical loadings with third function, it is concluded that the Maruti car owners residing in rural areas belong to low income families (minimum income has been up to Rs.35000) tend to buy the same brand as they are able to resolve the problem if any on first visit and due to fairness of charges of service work done in service centre. Conclusion This article is aimed at evaluating the post-purchase behavior of Maruti car owners in terms of frequency of using the car by purpose per week and reasons for purchasing the same brand car again. In order to ascertain the post-purchase behavior the above two aspects are empirically related to socioeconomic status variables by canonical correlation analysis. First, the overall status of frequency of using the car by purpose and reasons for buying the same brand gains is identified by descriptive analysis. From the inferences, it is concluded that the Maruti car owners have frequently used the car for travelling to near by places and commute to work. The Maruti car owners tend to buy same brand car again because of cost effectiveness and easy maintenance followed by best performance and good dealer service. With regard to their behavior towards frequency of using the car by purpose, it is understood that aged and less educated Maruti car owners often use the car for picking up family members / children, travelling to nearby places and commute to works whereas young Maruti car owners who are less educated and with low occupational status frequently use the car for picking up children from > RJSSM: Volume: 04, Number: 07, November 2014 Page 58

5 schools and commute to work while those belong to low income families residing in rural areas frequently use the car for social activities. Regarding post-purchase behavior in respect of going for same brand car again, it is elicited that the less educated Maruti car owners in the lower age levels tend to buy the car gain because they can resolve any problem on first visit and promptness in carrying out the repair work in service centre. Further, Maruti car owners with low occupational status is likely to buy the same brand car again because of promptness in carrying out the repair work, quality of work done and promptness in handling service in service centre whereas Maruti car owners residing in rural areas belong to low income tend to buy the same brand as they are able to resolve the problem if any on first visit and due to fairness of charges of service work done in service centre. In sum, it is concluded that promptness and quality with low cost service are the reasons for inducing the Maruti car owners behave positively towards considering the same brand car again. References [1] Wilkie, W, 1994, Consumer Behavior, John Wiley & Sons. New York. [2] Hawkins, D, Best, R, & Coney, K, 2006, Consumer behavior, compilation of the marketing strategy, Translated by Ahmad Roosta & Atiyeh Botahi, Sargol publication, Tehran. [3] Kotler, P, Armstrong, G, 2006, Marketing principles, Translated by Bahman Frozandeh, Amokhteh Publication, 5 th Publication, Esfahan. [4] Kotler, P, (2009), Marketing management: analysis, planning, implementation and control, Translated by Bahman Frozandeh, Atropat Publication,1 st Publication, Esfahan. [5] Mahapatra, S.N., Kumar, J., Chauhan, A. (2010). Consumer Satisfaction and Dissatisfaction and Post-purchase Evaluation: An Empirical Study on Small Size Passenger Car in India, International Journal of Business and Society, Vol.11, No.2, pp [6] Stella, A.Josephine and Rajeswarei, K.Dr. (2012). Consumer Behaviour Towards Passenger Cars A Study with Reference to Virudhunagar District of Tamil Nadu, IJEMR, Vol.2, No.1, pp.1-12 dowloaded from [7] Anitha, R. and Kanimozhi, V. (2013). A Study on Post-Purchase Behaviour with Special Reference to Mahindra Two Wheelers, Indian Journal of Marketing, Vol.43, No.6, pp Annexure Table II: Results of Descriptive Analysis for Purpose of Using Car Purpose Usage Mean Standard Deviation % Mean Opinion Level Shopping Times Picking Family members/ Children Times Picking up Children from schools Times Social activities Times Travelling to nearby places Almost Every day Commute to works Almost Every day Source: Survey Data Table III: Results of Descriptive Analysis for Reasons for Purchasing Again Same Brand (Maruti) Car Reasons Mean Standard Deviation % Mean Opinion Level Cost effective and easy to maintain Strongly Agreed Good warranty Agreed Matches my prestige / status Agreed Used by many people Strongly Agreed > RJSSM: Volume: 04, Number: 07, November 2014 Page 59

6 Like the design / style of the car Agreed Good dealer service Strongly Agreed High technology Agreed Best performance Strongly Agreed Source: Survey Data Table IV: Canonical Function Canonical Correlation Functions between Purpose of Using Car and Socio- Economic Status of Maruti Car Owners Canonical R Canonical R 2 (Eigenvalue) Chi-Square df p-value Wilks Lambda Source: Primary Data Table V: Canonical Loadings of Various Purposes of Using Car and Socio-economic Variables with Significant Functions Variables Canonical Functions CRITERION VARIABLES Purpose of Using Car Shopping Picking up Family members / Children Picking up Children from schools Social activities Travelling to nearby places Commute to works Percent of Variance extracted Redundancy Index PREDICTOR VARIABLES Socio-Economic Status Age Education Occupation Area of Residence Family Income Percent of Variance extracted Redundancy Index Source: Primary Data (Note: Canonical loadings of 0.40 & above are considered). > RJSSM: Volume: 04, Number: 07, November 2014 Page 60

7 Table VI: Canonical Function Canonical Correlation Functions between Reasons for Purchasing Same Brand Car Again and Socio-Economic Status of Maruti Car Owners Canonical R Canonical R 2 (Eigenvalue) Chi-Square df p-value Wilks Lambda Source: Primary Data Table VII: Canonical Loadings of Reasons for Purchasing Same Brand Car Again and Socioeconomic Variables with Significant Functions Variables Canonical Functions CRITERION VARIABLES Reasons for Purchasing Same Brand Car Easy of obtaining an appointment for service/repair Promptness in handling service Promptness in carrying out the repair work Making the vehicle available in time as promised Fairness of charges for service work Quality of work done Ability to resolve the problem on first visit Courtesy to customers Percent of Variance extracted Redundancy Index PREDICTOR VARIABLES Socio-Economic Status Age Education Occupation Area of Residence Family Income Percent of Variance extracted Redundancy Index Source: Primary Data (Note: Canonical loadings of 0.40 & above are considered). > RJSSM: Volume: 04, Number: 07, November 2014 Page 61