“A STUDY ON THE CUSTOMER BEHAVIOR OF THE ...

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“A STUDY ON THE CUSTOMER BEHAVIOR OF THE CUSTOMERS TOWARDS MARUTI SUZUKI” C.S.Gowtham Chakravarthy 1 , Ankit Kumar 2 Assistant Professor 1 , Student 2 , , Department of Management Studies 1,2 BIST, BIHER, Bharath University, Chennai [email protected] INTRODUCTION CUSTOMER BEHAVIOUR is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual customers such as demographics and behavioral variables in an attempt to understand people's wants[44]. It also tries to assess influences on the customer from groups such as family, friends, reference groups, and society in general. Customer behavior study is based on consumer buying behavior, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer behavior 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 customer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be categorized into social choice and welfare function[1-6]. Customer Behavior is an information industry term for methodologies, software, and usually internet capabilities that help an enterprise manage customer nature and behavior or customer relationship in an organized way. For example, an enterprise might build a database about its customer that described behavior in sufficient detail so that management , salespeople ,people providing services, and perhaps the customer directly could access information, match customer needs with product plans and offerings. Reminds customer of service requirements, know what other products a customer had purchased, and so forth[9-10]. CB methodologies enable the organization to understand the customer’s needs and behavior better. It introduces reliable process and procedures for interacting with customer and develops International Journal of Pure and Applied Mathematics Volume 119 No. 12 2018, 4253-4269 ISSN: 1314-3395 (on-line version) url: http://www.ijpam.eu Special Issue ijpam.eu 4253

Transcript of “A STUDY ON THE CUSTOMER BEHAVIOR OF THE ...

“A STUDY ON THE CUSTOMER BEHAVIOR OF THE CUSTOMERS TOWARDS

MARUTI SUZUKI”

C.S.Gowtham Chakravarthy1, Ankit Kumar

2

Assistant Professor1, Student

2, , Department of Management Studies

1,2

BIST, BIHER, Bharath University, Chennai

[email protected]

INTRODUCTION

CUSTOMER BEHAVIOUR is the study of when, why, how, and where people do or do not buy

a product. It blends elements from psychology, sociology, social anthropology and economics. It

attempts to understand the buyer decision making process, both individually and in groups. It

studies characteristics of individual customers such as demographics and behavioral variables in

an attempt to understand people's wants[44]. It also tries to assess influences on the customer

from groups such as family, friends, reference groups, and society in general.

Customer behavior study is based on consumer buying behavior, with the customer playing the

three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for

customer behavior 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 customer retention, customer relationship management,

personalization, customization and one-to-one marketing. Social functions can be categorized

into social choice and welfare function[1-6].

Customer Behavior is an information industry term for methodologies, software, and usually

internet capabilities that help an enterprise manage customer nature and behavior or customer

relationship in an organized way. For example, an enterprise might build a database about its

customer that described behavior in sufficient detail so that management , salespeople ,people

providing services, and perhaps the customer directly could access information, match customer

needs with product plans and offerings. Reminds customer of service requirements, know what

other products a customer had purchased, and so forth[9-10].

CB methodologies enable the organization to understand the customer’s needs and behavior

better. It introduces reliable process and procedures for interacting with customer and develops

International Journal of Pure and Applied MathematicsVolume 119 No. 12 2018, 4253-4269ISSN: 1314-3395 (on-line version)url: http://www.ijpam.euSpecial Issue ijpam.eu

4253

stronger relationship with them. The process helps organization in assimilating information about

customer, sales, marketing effectiveness, responsiveness, and market trends. Then this

information is used to give insight into behavior of customers and value of retaining those

customers. The whole process is designed to reduce cost and increase profitability by holding on

to the customer’s loyalty[7-11].

BELCH AND BELCH define CONSUMER BEHAVIOUR as, ’the process and activities people

engage in when searching for , selecting, purchasing, using, evaluating, and disposing of

products and services so as to satisfy their needs and desires’ .

GRAPHICAL REPRESENTATION OF CUSTOMER BEHAVIOUR

Environmental forces

|

Culture, sub-culture, social class, income, education,

Reference group, situational factors, family, social value,

Norms, Roles of marketing mix variables.

|

INDIVISUAL FACTORS

Motives perception learning

Attitude personality

|

PURCHASE DECISION

|

Problem information evaluation purchase post-purchase

Recog. Search & altern. Decision behavior

According to Ugala (2001), two types of customer behavior exist, i. e cognitive and experience

oriented consumer behavior. Customer with cognitive behavior are logical and rational

customers while experience oriented customers have more emotional reasons to purchase a

product[12-16].

Dalqvist and linde(2002) characterized customer behavior into four i.e. rational, learned,

unconscious, and social behavior and they are represented by these three steps.

(Knowledge ---- Attitude---- Action).

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RATIONAL BEHAVIOUR

Customers with rational behavior first get some knowledge about the product and what it may

offer. By assessing this information , they get an attitude toward the product and finally act;

whether or not to buy the product. This type of behavior is most common when customers are

purchasing expensive products, for eg. Cars

(KNOWLEDGE----ATTITUDE----ACTION)

UNCONSCIOUS BEHAVIOUR

Customers with unconscious behavior begins with an attitude towards the product, this attitude

may either come from emotions or feelings. This attitude will lead the customers to find out

more information about the product and get knowledge about it and finally act their choice[17-

22].

(KNOWLEDGE----ATTITUDE----ACTION)

LEARNED BEHAVIOUR

This type of behavior stems from habits. These customers do not plan their choice of product ,

they do it by habit. For eg. Buying a newspaper.

(KNOWLEDGE----ATTITUDE----ACTION)

SOCIAL BEHAVIOUR

Customers with social behavior choose their products as a result of the social environment which

they live in. Their status, lifestyle, and influence from others determine the product they will

buy.

(KNOWLEDGE----ATTITUDE----ACTION)

Culture has been seen to have one of the greatest influence on customer behavior . According to

kotler (1999), apart from cultural factors other factors such as social, personal, and psychological

factors have influenced on customers behavior.

OVERALL CUSTOMER SATISFACTION

•Quick service

•Billing clarity

•Good value for money

•Service quality

•knowledgeable employees

•courteous

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•friendly employees

•competitive pricing

•Accuracy and timeliness of billing

STATEMENT OF PROBLEM

Customer Behavior and satisfaction is considered to be the most important

factor as it involves Retention of the customer and creates brand loyalty. typical

elements that constitute customer Behavior are; customer nature, attitude,

society, living……etc. This study attempts to find the customer behavior

regarding MARUTI SUZUKI products and services[23-25].

NEED OF THE STUDY

The need of the study are:

• CUSTOMER BEHAVIOUR is must to understand the likes and dislikes of the

customer regarding MARUTI product and services.

• To evaluate understand the channels and how they are working.

• To know whether customer receive the product and services on time.

• this would plan for better channel and improve CRM activitie

SCOPE OF THE STUDY

The scope of the study are:

The Study helps to understand customer behavior.

• To find various factors that causes the dissatisfaction to the customer and overcome

those by better strategy.

• To channel the distribution which will enable to reach the customer and

Communicate.

• This study extends its emphasis on studying various economic, social,

geographical, and Political aspects of trade relation between India and the gulf

countries.

OBJECTIVE OF THE STUDY

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he objectives of the study are:

PRIMARY OBJECTIVE

•To find out the customer behavior of Maruti Suzuki in Bihar.

SECONDARY OBJECTIVE

•To know the importance of four wheeler i. e MARUTI SUZUKI in our daily life.

•T o analyze the factor influencing to use and buy MARUTI SUZUKI.

•To identify the difficulties in Maruti Suzuki product and services.

LIMITATIONS OF THE STUDY

Limitations of the study are:

• For the lack of time I could not meet the observation of different workings and

papers regarding the organization.

• Most of the company is reluctant to disclose their confidential data regarding their

sales promotion activities as well as upcoming Add campaigns.

• The products highly advance technology itself become a constrain in sales promotion

when the customer cannot understand the technical terms and terms and their

benefits.

• Sometimes, the investigator has to face with obstinate persons who only harp their

own tune.

• Unskilled drivers or users mishandle the cars and for any type of fault or

dissatisfaction they not only vilify organization but also mislead the

Upcoming customers.

RESEARCH METHODOLOGY

RESEARCH:

Research is an academic activity and as such the term should be used in technical sense.

According to Clifford woody research company defining and redefine problem , formulating

hypothesis or suggested solution , organizing and evaluating data ; making deduction and

reaching conclusion ; and at last carefully testing the conclusions to determine whether they fit

the formulating hypothesis[26-29].

The main purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of the research is to find out the truth which is hidden and

which has not been discovered as yet.

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A research methodology define, the purpose of research, how it proceed, how to Measure

progress and what constitute success with respect to the objective determined for carrying out

research study. The appropriate research design formulate is detailed below:

• Exploratory research : This kind of research has a primary objective of development Insights

into the problem. It studies the main areas where the problem lies and also tries to evaluate

some appropriate course of action[30-32].

DATA COLLECTION

• Secondary data has been used which is collected through article, reports, journals,

Magazines, newspapers, report presented by scholars, universities and internet[42-

45].

NATURE OF DATA

• SECONDARY DATA: Secondary data that is already available and published. It

could be internal or external source of data.

• INTERNAL SOURSE: Which originate from the specific field or area where

research Is carried out. Eg-public broacher, official report ,,,,etc.

TOOLS AND TECHNIQUES

• Analyze of data has been done with the help of various statistical tools like the tables

and graphs.

• Tools used for the analysis of data is percentage analysis.

FORMULA: Formula to calculate percentage analysis-

Percentage analysis =no. of respondent *100

Total no. of respondent

SAMPLE DESIGN

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A Sample design is a definite plan for obtaining a sample from a given population. It refers to a

technique or procedure the researcher would adopt in selecting item for the sample.

Generally sample design is of two types

•Probability Research Design

•Non Probability Research Design

SAMPLE

Selecting and surveying respondents from the population

•Simple random sample— anyone

•Stratified sample—different age group

•cluster sample—different areas ( cities)

• Sample unit—3 different districts of Bihar (Patna, Hajipur, Muzzaffarpur).

• Type of sample—Simple Random Sampling

• The Researcher has chosen

40 samples from Patna

30 samples from Hajipur

40 samples from Muzzaffarpur

• The Researcher had prepared Questionnaire to elicit responses for the following

≠ location

≠ age

≠ occupation

≠ Monthly income

≠ car user

≠ car service usages

≠ Media habit

Research used -- Exploratory research

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Type of data -- Primary & secondary data

Sample design -- Simple random sample

No. of sample -- 110

Charts used -- Pie , bar, line……………

2. Why did you go for Maruti Suzuki? Why no other vehicle?

TABLE NO-2

TITLE- Table showing respondents reason for buying Maruti Suzuki.

REASONS PERCENTAGE %

Style and Look 67

Unique 15

Comfortable 7

Power staring 2

Mileage 2

No idea 7

Total 100

INTERPRETATION:

From the above table it’s clear that maximum maruti Suzuki customer prefer it due to its style

and look. Maruti Suzuki has more than ten colors and most importantly it gives a unique look to

the rider. Maruti should give importance to develop its other feature in order to attract new

customer[37-41]

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3.Why was the need for vehicle felt ?

TABLE NO- 3

TITLE- Table showing respondents need for vehicle.

Need for vehicle Percentage %

Emotional need 11

Actual need 89

Total 100

INTERPRETATION:

Purchase of Maruti Suzuki is actual need for maximum people.

It’s around 89 % and some of the people have also motivated with their emotional need.

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4. Who is the participant in your decision making?

TABLE NO- 4

Table showing respondents influencing factors.

Participant in decision making Percentage %

Family members 62

Friends & colleagues 29

Reference group 5

Society 4

Total 100

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FINDINGS

1. Four wheeler is not very popular in younger generation.

2. Business class people for their business activity prefer cars(Maruti Suzuki).

3. Safety mode & technology is essential in four wheeler.

4. Maruti Suzuki has been launched for passed 10-12 years in the town and currently

it is at no. 1 position.

5. The accessibility of service centre is easy.

6. Majority of customers are satisfied with action of service provider.

7. High percentage of customers is satisfied with accessories given with the product.

8. It has been found that most of the customers of Maruti Suzuki have television as

their prime media habit and most of them came to know about Maruti from

television.

9. From market survey, it is observed that maximum Maruti Suzuki customers are

motivated with their actual need of four wheeler.

10. From the questionnaire, it is clear that 68% are not interested to buy the same

product.

11. The brand name, ”MARUTI” has a greater impact on the customers mind. They go

for Suzuki when they see Maruti.

12. From the questionnaire, it is observed that most of the decision making process of

customers is influenced by family members.

13. The respondents have given their opinion to make more sport cars, reduce price,

give more and better accessories.

14. A good majority of respondents prefer Maruti(48%) whereas Mahindra is least with

(7%).

15. A majority of respondents feel Maruti as , “Some what better (37%)”, while least is

,’’ some what worse (7%)’’

16. Once the parts of vehicle is damaged , it does come in original vehicle color. It comes

in black color and then painted accordingly, which cost customers extra.

17. It has been found that most of the customers buy the product on the basis of style

and look

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SUGGESTION

The marketing unit Karlo Automobiles & Pvt. Ltd. And Maruti Udyog ltd. Itself required a more

rational approach than they have got present[33-36]. Thus, the suggestion in my opinion for the

company are as follows:

1. Company should increase manpower.

2. Company should maintain its deliveries to the customer on time.

3. Firm should increase the number of cars in it’s stock.A/C to different colors and models.

4. Firm should open district wise enquiry cum display branch offices.

5. Firm should take care of employee’s satisfaction.

6. Motivation should also be provided to the sales executives and complaints after sale.

7. Company should take proper care of customer appreciation and complaints after sale.

8. The company should give addition gift schemes to customers other than general schemes.

The above schemes have been reached after studying and examining the entire concerns,

various functional departments and on the basis of interviews with company execut

CONCLUSION

In recent times, the production of passenger cars in India registered a massive growth of 118

percentage during 1990’s.the de-licensing of auto industry in 1993, however, opened the gates to

international automakers into the country with an idea to tap the large population base in India.

During the next 10 years, the production achieved an all-time high record, and managed to cross

the 500,000 mark in 1999. That was ‘stage 1 of auto India inc’, as some players in automotive

industry have called it. It was the decade of establishing operations, brands, dealers, service

network and field teams.

Year 2001 was fine tuning for new models, for expansion, signaling the beginning of ‘stage ll of

auto India inc.’ It saw a spate of new vehicle launches as well as controversies, financial

troubles, mergers and shutdowns, both in India and worldwide. The mid size car market has,

however, seen a growth rate of 42 percent, according to society of Indian automobile

manufacturers(SIAM).

Today it seems that India has finally arrived in the big league of Asian car markets. Steady and

impressive annual growth rate , presence of international automakers, relaxation of foreign

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exchange and equity regulations, reduction of tariffs on imports and few other are the

components of it’s booming auto market.

The country has now come to be recognized as a potential emerging market. The perception of

foreign investors has changed, everybody wanting to be here.

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