CONTENTS

Index
CONTENTS
Need for the study
Objectives of the study

CHAPTER 1

INTRODUCTION

Scope of the study

Limitations of the study
Research Methodology

CHAPTER 2
CHAPTER 3

LITERATURE
REVIEW
COMPANY PROFILE

CHAPTER 4

DATA ANALYSIS &

INTERPRETATION

CHAPTER 5

FINDINGS

CHAPTER 6

SUGGESTION

CHAPTER 7

CONCLUSION

CHAPTER 8

BIBILIOGRAPHY
QUESTIONNAIRE

Page. no

CHAPTER 1
INTRODUCTION

INTRODUCTION

Marketing is the process of ascertaining consumer needs converting them into a product
or service and then moving product or service to the final consumer to satisfy such needs and
wants of specific costumer segment, with emphasis on profitability, ensuring optimum use of the
resources available to the organization.

1. INTRODUCTION TO MARKETING
To be a marketer, we need to understand what marketing is, how it works, what is marketed and
who does the marketing.

What is marketing?
Marketing deals with the identifying and meeting human and social needs. One of the shortest
definitions of marketing is creating and meeting needs profitability.

The American Marketing Association offers the following common definition: Marketing is an
organizational function and set of for creating, communicating, and delivering value to
customers and managing customer relationships in way that benefit the organization and its stake
holders.

We see marketing management as the art and science of choosing target markets and getting,
keeping and growing customers through creating, delivering and communicating superior
customer value.

2. The Scope of Marketing

While marketing can be stated as a distinct function of the marketing manager; it has certain
tools by which one can scan, monitor, assess & reach to the market and implement any strategies
they formulate; perhaps one needs to understand the strong insights of consumers instead of
implementing mere boardroom ideas, for which the study of perception is the first step.
3. Objectives of the study:
The Primary Objectives are:1. To understand, analyze and evaluate the opinion of the Factors influencing Consumer
Behavior on Maruti Suzuki.
2. To know the factors influencing the consumers while deciding to purchase the Maruti
Suzuki.
3. To provide information helpful to Mithra Agencies [Dealers of Maruti Suzuki] in
planning and implementation of marketing approach towards the buying motives of
Maruti Suzuki bike owners and to know their satisfaction.
4. To know the level of satisfaction among the owners and users of Maruti Suzuki.
Scope of the Study:The study covers the over all consumer opinion survey on Maruti Suzuki in Hyderabad.
The study is done to analyze the consumer perception towards the Maruti Suzuki and the
response relate to that period only.

Limitation of the project

Time limitation for compelling the project.

The data obtained in some cases may be biased.
Difficulty in communication within the city while conducting the survey.
The information obtained from the consumers based on questionnaires was assumed to be

factual.
Since the survey is based on sampling method, it does not disclose the character of the
entire customers.

RESEARCH METHODOLOGY
2.1.Statement of the Problem:
The knowledge of post purchase consumer perception of a product and level of
satisfaction with a product is essential for the manufacturers of a product in order to get an
idea about what the general consumer perceives about the product.

This helps the

manufacturer to know where his product is lacking as compared with a competitor.

Now a days the competitors are HONDA, TATA, FORD and MARUTHI, in the Fourwheeler market. It is much important to any manufacturer to understand the level of
satisfaction to their product and they should manufacture and provide the services to their
customers in such a way that it should provide complete satisfaction to its customers. Then
only they can compete in this competitive world. Hence today study aims at analysis of
consumer perception towards Maruti Suzuki in MITHRA AGENCIES, Hyderabad.
2.2 Title of the report:

Factors influencing Consumer Behavior with reference to Maruthi Suzuki-a study

undertaken in Hyderabad
2.5 Sampling Size:
A few people or a unit of population called as sample size was taken to obtain
representative sample of the whole universal.
The data collection of this study was limited to Hyderabad city. The researcher has
randomly selected five blocks in Hyderabad and each block consists of 20 respondents of
Maruti Suzuki owners.

2.6 METHODOLOGY OF THE STUDY

Sources of Data
Primary Sources
Secondary Sources.

Primary Sources:
Primary sources are original sources directly collected data that have not been previously
collected.

Primary data in this research was obtained through questionnaires and direct interview.
Questionnaires, with close ended questions and few open ended questions.
Through personal interviews to collect information on responses requiring an
explanation and also information vital to the study but not covered in the questionnaires.
Secondary Sources:
These are sources containing data that have been collected and compiled for another
purpose. Secondary data for the study is obtained through the companys brochure and
information from library and through internet source [web site of Maruti Suzuki
Company: WWW. Maruti Suzuki.com.
2.7 DATA COLLECTION INSTRUMENT:
In this study the main tool used for data collection is questionnaire. The questionnaire
construction consists of 5 steps: Specifying the information needed.
Determining the type of questions to be asked.
Deciding the number and sequence of questions are to be asked.

 Preparing the preliminary draft of questionnaire.

Revising and pretesting the questionnaire.

2.8 DATA PROCESSING AND ANALYSIS:

Validation:
The researches routinely checked the some proportion of questionnaire in order to check,
whether an accurate sample was obtained.
Editing:
In the second step the researches edited the data and some of the questions were found
not necessary in order to extract the relevant information. Hence the questions prepared are
modified in order to extract the relevant information.
Coding:
Pre coding is done which involves identification and classification of each responses.
Transcription: Since direct tabulation from the edited data is difficult the researcher used the
transcription process [in a long work sheet] rather than obtain tabulation directly.
Tabulation:
After the Transcription of data is over, percentages were used to analyze data. Data
collected is depicted through tables, graphs and pie-charts.

CHAPTER 2
LITERATURE REVIEW

What Is Consumer Behaviour?

Consumer behaviour is the study of how individuals, groups, and organizations select, buy, use,
and dispose of goods, services, ideas, or experiences to satisfy their needs and wants. Successful
marketing requires that companies fully connect with their customers.
Adapting a holistic marketing orientation means understanding customers, gaining a 360-degree
view of both their daily lives and the changes that occur during their lifetime so that the right
products are marketed to the right customers in the right way.
Studying consumers provides clues for improving or introducing products or services, setting
prices, devising channels, creating messages and developing other marketing activities. To
implement marketing strategy, marketers examine-what, where, when and how consumers buy
Consumer Markets
Consumer markets are the markets for products and services bought by individuals for their own
or family use. Goods bought in the consumer market can be categorized in several ways such as:
Fast-Moving Consumer Goods (FMCGs) these are high volume, low unit value but with
fast purchase e.g. ready meals, newspapers, soap, and cooking oil
Consumer Durables these have low volume but high unit value e.g. cars, fridges/freezers,
cookers, television sets, washing machines, computers etc.
Soft Goods these are similar to consumer durables except that they wear out more quickly and
therefore have shorter replacement cycle e.g. clothes, shoes etc.
Consumer Marketing
Consumer Marketing refers to the marketing of the above goods and services for personal
consumption. However, there could be exceptions whereby Cars are bought for both personal
and organizational use.
Business/Organizational Marketing

This involves marketing products or services to other companies, government bodies, institutions
(such as schools, hospitals and churches) and other organizations. McDonald's and Burger King
buy products such as salt, and services to use in the production of their products. The business
market consists of all the organizations that acquire goods and services used in the production of
other products or services that are sold, rented, or supplied to others.
Characteristics Affecting Consumer Behaviour

1. Cultural Factor
Culture Culture is the fundamental determinant of a persons wants and behaviour. The
growing child acquires a set of values, perceptions, preferences and the behaviour through his or
her family and other key institutions. A child grown in USA is exposed to the following values:
achievements and success, efficiency and practicality, progress, material comfort, individualism,
freedom and youthfulness. What about a child grown in Ghana?
Subculture Each culture consists of smaller group (subculture) of people with shared value
systems based on common life experiences and situations. These subcultures can be ethnic,
religious, racial or regional groups as well as those that form around music groups. Nestle Gh
Ltd (MaggieHomowoCooking contest) Guinness & MTN have been exploiting our festivals to
promote and build their brands and Corporate Image.
Social Class Virtually all human societies exhibit social stratification. It is a relatively
homogeneous and enduring division in a society, which is hierarchically ordered and whose
members share similar values, interests, and behaviours. Social classes reflect not only income
but also other indicators such as occupation, area of residence, education, and wealth. Social
classes show distinct product and brand preferences in many areas, including clothing, home
furnishing, leisure activities, automobiles, and media consumption
2. Social Factors

Group Membership: Anyone who has ever gone along with the crowd" knows that people act
differently in groups than they do on their own. Since many of the things we buy are consumed
in the presence of others, group behaviours are important to marketers
Primary Groups: A person has continuous /informal interaction including family members,
friends, neighbours, and co-workers with these groups.
Reference Group: These are groups that have direct/face-to-face or indirect influence on a
persons attitudes and behaviours. A set of people a consumer wants to please or imitate.
Consumers refer to these groups in evaluating their behaviour i.e. what they wear, where they go
and what brands they buy
Secondary Group: A person has formal relations and less continuous interaction including
religious organizations, professional associations, and trade unions with these groups.
Opinion Leader: Is a person who influences others' attitudes or behaviour because others
perceive him/ her as possessing expertise about the product. Opinion leaders are often among the
first to buy new products, so they absorb much of the risk, reducing uncertainty for others who
are not as courageous. Marketers try to reach opinion leaders by identifying demographic and
psychographic characteristics associated with them and coaxing them especially the celebrities to
use their products sometimes before they are launched.
The Family: This is probably the most important consumer buying organization in society.
Family members constitute the most influential primary reference group. Marketers are
interested in the roles and relative influence of the husband, wife, and children in the purchase of
a large variety of products and services.
3. Psychological Factors
Psychology helps marketers understand the why and how of consumer behaviour. In the
psychological situation, consumer buying behaviour is influenced by four factors including:
Motivation, Perception, Learning, and Beliefs & Attitudes.
a.

Motivation

Motivation is an inner state that energizes, activates, moves or channels behaviour towards
certain goals (Assael). Motivation arises from perceived needs. These can be grouped
into biogenic and psychogenic needs:
Biogenic needs: arise from physiological state of tension e.g. thirst, hunger, discomfort
Psychogenic needs: arise from psychological state of tension such as esteem, belongingness.
Maslows theory of motivation states that needs are satisfied based on importance. He argues that
a consumer will satisfy the most important need first
Maslows Hierarchy of Needs
Physiological Needs (water, sleep, food)
Safety Needs (security, shelter, protection)
Social Needs (love, friendship, acceptance by others, belongingness)
Ego Needs (Self-esteem, prestige, status, recognition, accomplishment)
Self- Actualization (self-fulfilment, realization, and enriching experience)
The theory helps marketers understand how various products fit into the plans, goals, and lives of
consumers.
b.

Perception

A motivated person is ready to act. How the motivated person actually acts is influenced by his
or her perception of the situation. Perception is the process by which an individual selects,
organizes, and interprets information inputs to create a meaningful image of a situation.
Selective Attention- Listeners select part of the message that interests them. Sexual attraction
are used to attract attention

Selection distortion- here receivers distort the information they receive if the information does
not agree with their existing beliefs, opinions
Amplification- the receiver adds things to the message that are not there.
Different people in the same motivated and objective situation may act quite differently because
each perceives the situation differently. For example, one person might perceive a fast talking
sales person as aggressive and insincere, another as intelligent and helpful. People can emerge
with different perceptions of the same object because of three perceptual processes: selective
distortion, selective attention, and selective retention. In marketing, people's perception are
important than the reality.
c.

Learning

Learning involves changes in an individuals behaviour arising from experience. Most human
behaviour is learned. Learning theorists believe that learning is produced through:
Drive: Strong internal stimulus that compels a person to act in a particular way (motive) e.g.
thirst, hunger, discomfort etc
Response: Action taken as a result of the cue, e.g. purchase of beer, soft drink or air-conditioner
Reinforcement: If experience (from using the beer, soft drink, or air-conditioner) is rewarding
/satisfying, the person will continue to take same action anytime he feels thirsty/uncomfortable.
Habit is then formed which may result in brand loyalty.
d.

Beliefs & Attitudes

Through doing and learning, people acquire beliefs and attitudes and these in turn influence
buying behaviour. A persons belief is the descriptive thought that he/she holds about something.
His attitude is his/her enduring favourable or unfavourable evaluation, emotional feeling and
action tendencies toward some object (product/service) or idea, e.g. attitudes towards religion,
politics, music which may be positive or negative. Marketers need to decide which part of an

attitude is the most important driver of consumer preferences e.g. (Diet coke/Pepsi in
blind/branded test)
Lifestyle: Is a pattern of living that determines how people choose to spend their time, money,
and energy and that reflects their values, tastes, and preferences Consumers often choose goods,
services and activities that are associated with a certain lifestyle. Analysis of consumer lifestyles
(i.e. psychographics) is important in producing insights into consumer behaviour. For instance,
lifestyle analysis is useful in segmenting and targeting consumer markets
Personality: Each person has personality characteristics that influence his or her buying
behaviour, By personality, we mean a set of distinguishing human psychological traits that lead
to relatively consistent and enduring responses to environmental stimuli. Personality is often
described in terms of such traits as self-confidence, dominance, autonomy, deference, sociability,
defensiveness, aggression, and compliance.
Personality can be a useful variable in analyzing consumer brand choices. The idea is that brands
also have personalities, and that consumers are likely to choose brands whose personality
matches their own. We define Brand Personality as the specific mix of human traits that may be
attributed to a particular brand.
Self-Concept: Is an individuals self-image that is composed of a mixture of beliefs,
observations, and feelings about personal attributes. Self-image is how a person thinks of himself
or he thinks others think of him.
4. Situational Factors
Some important situational cues are;
The Physical Environment: Marketers are aware that factors such as decor, smells, lighting,
music, crowding, and even temperature can significantly influence many purchases. Many
retailers are focusing on adequate packing, cyber-hangout and in-store display to influence the
consumer decision-making process.

Time: Marketers know that the time of day, the season of the year, and how much time one has
to make a purchase affect decision-making. Time is one of consumers' most limited resources.
The sense of time poverty makes consumers responsive to marketing innovation that allow them
to save time including such services as drive-through lanes at fast food restaurants and ordering
products on the web.
.Social Surrounding: Including the other people present when the purchase decision is made,
may affect what is actually purchased. Thus, a playboy who went to a pharmacy to buy condoms
late in the night ended up buying a bottle of tricilicate when he came face to face with an elderly
man he had woken up from sleep.
Purchase Task: Is the reason underlying the consumers decision to buy which may be as a gift
or for the buyers own consumption or consumption by the members of the household
The Consumer Decision Process-How They Buy;
Need identification/Problem awareness
Information gathering
Evaluation of alternative solutions (products)
Selection of an appropriate solution (product)
Post-purchase evaluation of decision
Goods is a set of tangible physical attributes assembled in an identifiable form to provide want
satisfaction to customers.
Goods are classified into two consumer goods which are used in daily life like tooth paste, soap,
coffee , tea, prestige pressure pans etc
Services are like postal service, courier service, transportation, banking, education, etc
there are products like fridge, television, motorbike, car washing machine and these products
should have good after sales service and it warranty attached to them.

1. Tangibility, 2) change of ownership 3) services are heterogeneous, goods are

homogeneous
When one buys a refrigerator it is defined as a good but then the service angle is the part that
starts after the sales of the good. Service is an important part of the entire package that one buys.
It is more entwined when one buys a laptop. The laptop is a physical good but then the service in
terms of soft wares/installations etc is a continuous process. It is difficult to detach the service
from the physical good. Both are now part of the package.
Goods - things you can touch - tangible
Services - things you cant touch - but you can see their effect intangible
services are not physical, they are intangible
A Service is a type of a product.
Services have special characteristics that make them different than products.
A product without physical characteristics; a bundle of performance and symbolic attributes
designed to produce consumer want satisfaction
Challenges for services.
: the challenges for the service marketing are
1) Quality improvement: The service provider always find it difficult to improvise the quality
of service for various reasons like chances of rejection in deviation in service delivery.
2) Communicating new services: Another important issue is communicating a new service so
that customers can be attracted for trial.
3) Maintaining image: A Hair dresser cannot perform the haircut same every time, there is
variability in the delivery of service so maintaining image is very difficult task.
4) Motivating and sustaining employee commitment: Once the employee receives some good
experience, demands for higher remuneration and retaining the employees gets difficult.
5) Coordinating marketing, operations and human resource efforts
6) Setting prices: Since the cost of production and delivery of services is difficult to determine
setting price gets even more difficult.
Anything that can be offered to a market for attention, acquisition, use or consumption and
satisfies a want or a need includes

goods

Pure Services

Persons

Places

Organizations

Ideas

Combinations of the above

CONSUMER BEHAVIOUR
What products and services do we buy?
Why do we buy?
How often do we buy?
From where do we buy etc?
Are the issues which are dealt with in the discipline of consumer behavior
DEFINATION:Consumer behavior can be defined as these acts of individuals (consumers) directly involved in
obtaining, using and disposing of economic goods and services including the decision processes
that precede and determine these acts.
IMPORTANCE OF CONSUMER BEHAVIOUR FOR MARKETERS
1. Consumer behavior is helpful in understanding the purchase behavior and preferences of
different consumers. As consumers we differ in terms of our sex, age, education, income,
occupation, family set-up, religion, nationality, social status.
2. To successfully market to different market segments, the market needs appropriate
marketing strategies which we can design only when he understands the factors which
account for these differences in consumer behavior and tastes.
3. In todays world of rapidly changing technology, consumer tastes are also characterized
by fast changes. Consumer behavior provides invaluable clues and guidelines for
marketers on new technological frontiers which they should explore. For example- CTV
in lieu of B/W TV
4. Consumer behavior is a process and purchase forms one part of this process. There are
various psychological and environmental factors which influence this process, to the

extent that the marketer can understand and manipulate the influencing factors, he can
predict the behavior of consumers.
Thus the importance of consumer behavior lies in the fact that the behavior can be
understood and influenced to ensure a positive purchase decision. The marketing managers
interest lies exactly here i.e. to ensure that his marketing strategy results in purchase of the
product.

TYPES OF CONSUMERS
All consumers can be classified as

Personal
Organizational

All individuals fall into the category of personal consumer.

All business organizations, government agencies and bodies, non business organizations such as
hospitals, temples, and trusts are organizational consumers of goods and services purchased for
running the organizations.
BUYER VERSUS USER
Often the person who purchases the product is not the person who actually consumers or uses the
product.
Question Who should be the subject of study in consumer behavior?
Should we study buyer or consumer?
Many companies play safe and focus their promotion at both the user and the buyer. For
example- Maggi Noodles- Mother and Children
A SIMPLE MODEL OF CONSUMER BEHAVIOUR
I
N
P
U
T

External Influences
Marketing Stimuli
Product
Price
Promotion
Channel of distribution

Other Stimuli
- Economic
-Technological
-Political
-Social

Process

O
U
T
P
U
T

Consumer Decision Making

Buyer Characteristics
Psychological
Personal &
Cultural characteristics
Consumer Decisions & Actions
Product choice
Brand choice
Dealer choice
Purchase timing
Purchase amount

Buyer Decision
-Process

EXAMPLE- A SIMPLE MODEL OF CONSUMER BEHAVIOUR

You are on your way home from work after a hot, long, tiring day.

On the way you see a hoarding/ kiosk for a cola drink which promises to be cool,
refreshing and tasteful.
This hoarding/kiosk provides you a stimulus to stop at the nearest cold drink shop and
drink a cola.
All three brands (Pepsi, Coke and Thums Up) are available at the shop at a certain price.
You can recall some association with each of the three brands from the advertisements.
You have seen on media viz T.V., hoardings, newspapers, magazines.
You buy a particular brand of cola and consume.
The initial stimulus for this purchase and consumption was provided by the hoarding.
This was further backed-up by other stimuli such as product display in the shop, watching
other consumers buy a particular brand, a pop material, earlier satisfaction with a given
brand etc.
Your response to these stimuli results in the purchase of a particular brand.
In between the process of receiving these stimuli and responding to them, you
went through a decision making process.
The stimuli, the process of decision making and response constitute a simple
model of consumer behavior.

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR

Cultural
Social
Culture
Reference Groups
Sub-culture
Family

Personal
Age & Life cycle Psychological
stage
Motivation
Occupation
Perception

Social Class

Income
Lifestyle
Personality

Role & Statuses

Learning
Beliefs &
Attitudes

Buyer

MOTIVE
When a need is sufficiently pressing, it directs the person to seek its satisfaction, it is known as
motive.

Primary Needs or motives

These are physiological needs which we are born with. For example- need for air, water, clothing
& shelter.

\
Secondary Needs
These are our acquired needs, which we have developed in response to the society &
environment we live in. for example- need for power, prestige, esteem, affection, learning, status
etc.
MASLOWS HIERARCHY OF NEEDS
Self
Actualization
Self Fulfillment
Ego Needs, Prestige, Status,
Success, Self respect
Social Needs, Affection, Friendship,

Belonging etc
Safety & Security Needs, Protection,
Stability etc
Physiological Needs
Food, water, Air, Shelter, Sex etc

Same product- Many segments- example- Bicycle

One- for community
Second- Recreational/Leisure Need
Third- Need of a health aid
Fourth- for converting into rickshaw/cart
Example- Generally consumers tend to perceive the quality of perfumes on the basis of

Package

Brand name

Price &

Manufacturers image
PERCEPTION

It can be described as how we see the world around us

The different sights, sounds, smells, tastes & sensations that we feel are known as stimuli. Each
person recognizes, selects, organizes & interprets these stimuli in his own individual manner
based on his needs, values & expectations and this is known as perception since each individuals
needs, motives and expectations are unique. Therefore each individual perception is unique.
Perception helps to explain the phenomenon of why different individuals respond differently to
the same stimulus under the same condition.

As a marketing manager you are providing stimulus to your consumers through the physical
shape, color, size, fragrance, feel, product taste, packaging, ads/commercials.
But we all have an in built, screening system which helps us to select & recognize only the
relevant stimuli & ignore all the others.
There are three aspects of perception:

Selective exposure

Selective distortion

Selective retention
SELECTIVE EXPOSURE

People are more likely to notice stimuli which relate to their immediate needs.
For the marketer, the implication is that he has to carefully and accurately identify his potential
customers since other customers are not at all likely to notice the stimuli having identified the
potential customers, the marketer has to ensure that the stimuli are interesting enough to attract
and hold their attention.
For example- Washing machines (Punjab), hair dye (goat- Rajasthan), Refrigerator (for storing
goods & services)

SELECTIVE DISTORTION
When you attempt to fit information to suit your own ideas or personal meaning the process is
known as Selective Distortion. Thus a marketer may find that his message is often not received
in the intended manner but it is twisted in different ways by different consumers.
SELECTIVE RETENTION
People forget much of the stimuli which they receive and only retain that information which
reinforces their values and decision.
LEARNING
New Born- instinctive behavior
Adult- learned behavior
For example- housewife has need for cutting down cooking time- Pressure Cooker

Influencing stimuli

Various advertisements

Positive feedback (friend)

Window display

Discount

She buys and is satisfied with its performance her response to pressure cooker is reinforced.
Satisfied housewife may settle for another product of same company (say oven) i.e.
generalization of response.
Consumers can be made to learn the desired behavior through an interplay of motives, stimuli
cues, responses and reinforcements.
BELIEFS AND ATTITUDES
A persons belief- cooking oil X has lowest fat content. Belief based on real facts or notion or
opinion- the person has.
A belief is a descriptive thought that a person has about something. The belief that the customer
has about a brand is important. Therefore it determine his behavior towards buying and using the
belief constitute the brand image and if the customer has the wrong belief he is likely to generate
negative image about the brand.
The marketer must ensure that consumer have all relevant and correct information about the
brand to facilitate formation of a positive image.

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR

PERSONAL FACTORS

DEMOGRAPHIC FACTORS AND LIFESTYLE STAGE

Age influences and buyers decision the need for different products and services changes with
age.

Babies and children need product like milk powder, baby foods and toys.

Young adults need- clothes, recreational and educational facilities, transportation and a
host of other age and fashion related products.

The first factor influencing a buyers decision is his age need for different products
changes with age.

There are certain physiological differences between men and women which result in their
having different consumption needs. For example:- women need certain specialized
medical facilities, clothes and cosmetics. Their requirement is different from that of men.

Consumption behavior is also influenced by the specific stage of the family life cycle.

FACTORS AND LIFECYCLE STAGE

STAGE IN LIFE CYCLE

BUYING/BEHAVIOUR PATTERN

Single stage- young, unmarried people,

living away from home

Few financial burdens. Spend on rent, food

very basic kitchen equipment/furniture
stereo systems etc

Young children newly married.

Better off financially now, wife is usually

working, highest purchase rate, spend on
furniture, durables such as refrigerator, gas
stoves, vacation etc.

No children

Full Nest-
Youngest child under-6

Full Nest-
Youngest child over-6

Spend maximum on home purchases,

interested in new products, influence by
advertising. Buy T.V., baby foods, cough,
medications, toys etc
Some wives return to work, better financial
position, buy large sized packs, education,
bicycles, house purchasing

Full Nest-

Financial position still better, spend on

education, better furniture, cars, appliances
Old married couple with dependent children etc.
Empty Nest-
Older married couples, no children at home,
have head still working
Empty Nest-

Spend on travel, recreation, health care, self

improvement, home improvement etc

Drastic reduction in income, buy medical

Older married, no children at home, head

retired

appliances, Medicare products for health

Solitary survivor

Likely to sell home, but income still good

Working

Reduced income, spend on medical products

EDUCATION AND OCCUPATION

Education widens a persons horizons, refines his tastes and makes his outlook more
cosmopolitan.
Occupation also shapes the consumption needs people following specialized occupations such
as- photography, music, carpentry etc need special tools and equipment.
Further the status and role of a person within an organization affects his occupation behavior. For
example- chief executive buys 3 piece suits of best fabric; handmade leather briefcase junior
manager in same organization may also buy similar things- but compromises on quality.
INCOME
The income which a person earns is an extremely important influence on his consumption
behavior. He may aspire to buy certain goods and services but his income may become a
constraint. Persons attitude towards spending vs saving and his borrowing power are also
important.

Small size packaging in sachets is meant for LIG customers.

Luxury products are more income sensitive than necessities.

PERSONALITY
Personality is sum total of an individuals psychological traits, characteristics, motives, habits,
attitudes, beliefs and outlooks. Personality is the very essence of individual differences in
consumer behavior. Personality is defined as those inner psychological characteristics that both
determine and reflect how a person responds to his environmental stimuli. Personality is
enduring and ensures that a persons responses are consistent over time.
Different types of personalities can be classified and each type responds differently to the same
stimuli and personality can be used to identify and predict that response.

For example- Charms cigarettes used by young, modern, carefree personality. Potential marketer
segment students and other young people.
Surfs Lalitaji- A middle class traditional forthright and objective housewife for appeal to a
potential customer of surf.
LIFESTYLE
Lifestyles are defined as patterns in which people live; as expressed by the manner in which they
spend money and time on various activities and interests. Lifestyle is a function of our
motivations learning, attitudes, beliefs and opinion, social class, demographic factors, personality
etc.
Life style is measured by a technique known as psychographics. It involves measuring
consumers responses to activities, interests and opinions (AIO) along with collecting
information on demographic factors.
LIFESTYLE DIMENSIONS
ACTIVITIES

INTERESTS

OPINIONS

DEMOGRAPHICS

Work

Family

Themselves

Age

Hobbies

Home

Social issues

Education

Social

Job

Politics

Income

Vacation

Community

Business

Occupation

Entertainment

Recreation

Economics

Family Size

Club Membership

Fashion

Education

Dwelling

Community

Food

Products

Geography

Shopping

Media

Future

City Size

Sports

Achievements

Culture

Stage in life cycle

Garden Vareli, Raymonds, Vimal textiles have based their promotional strategies on lifestyles.

DETAILED MODEL OF FACTORS INFLUENCING CONSUMER BEHAVIOUR

CULTURAL FACTORS

CultureThe study of culture encompasses all aspects of a society such as its religion, knowledge,
language, laws, customs, traditions, music, art, technology, work patterns, products etc. All these
factors makeup the unique distinctive personality of each society.
1. Formal learning
In which parents and elders teach children the proper way to behave.
2. Informal Learning
In which we learn by imitating the behavior of our parents, friends, film actors/ artists in action.
3. Learning
In which instructions are given about the specific method by which certain things have to be
done such as printing, dancing, singing etc.
Through a marketer can influence all the 3 types of learning through his companys advertising
strategy. It is informal learning which is most amenable to such influences.
The kind of products and advertising appeals that can work effectively in a society depend
largely on its cultural background.
For Eg:- In American society, individualism, freedom, achievement, success, material, confort,
efficiency and practically are the values/products/services which fulfill these values are
successfully marketed in America.
In Indian society- conformity, spiritualism, respect for elders, tradionalism and education are few
dominant cultural values.
However our society is undergoing a cultural metamorphosis, some major cultural shifts have far
reaching consequences for the introduction of a vast variety of new products and services. Some
of these changes are

Convenience

Education

Physical appearance

Materialism
Convenience

With more women joining the work force there is an increasing demand for products like gas
stoves, mixies, washing machine, precooked food, fast food outlets etc.
Education
People in our society today wish to acquire relevant education and skills that would help improve
their career prospects , so many professional/ career oriented centres are coming up.
Physical Appearance
Physical fitness, good health and smart appearance are on a premium today so slimming centres
and beauty parlors are mushrooming in major cities.
Sub Culture
A sub culture is an identifiable distinct, cultural group which while following the dominant
cultural values of the overall society also has its own beliefs, values and customs that set them
apart from other members of the same society.
Sub cultural category

Illustrative sub culture

Nationality

Indian, Pakistani, Sri Lankan

Religion

Hinduism, Sikhism, Islam, Christianity

Race

Black, white, Asian

Age

Young, middle aged, elderly

Sex

Female, male

Occupation

Farmer, teacher, doctor

Social class

South, north, western

Geographic location

South, north, eastern, western India

These subcultures offer readymade market segments to the marketer who can position his
products to meet the specific needs, motivation, perceptions and attitudes of each sub culture.
However the marketer may need to modify both his product and advertising appeal to suit their
specialized needs.
Each member of a society is a member of several groups( such as elderly, keralite, Christian,
female, teacher.)
Social Class

Social classes can be defined as relatively permanent and homogeneous divisions in a society
which individuals or families sharing same values, life styles, interests and behavior can be
categorized. Social class is a concept based on distribution of status and the categories are
usually ranked in a hierarchial order ranging from low to high status. Social status is an idea
basis for segmenting the market.

Major social classes and their dominant characteristics and buying behavior patterns
Social class

Distinguishing

Dominant consumption

characteristics

Patterns

Upper Upper

Elite of society, aristocrats, or top

industrialists, inherited wealth; well known
family background; spend money lavishly but
in discreet, conservative taste.

Spend on property, homes,

best education for children,
frequent foreign vacations,
antiques, jewellery, custom
made cars

Lower Upper

Top professionals, businessman who have

earned rather than inherited money, style and
taste is conspicuous and flamboyant, they seek
professions which will reflect their status

Spend on large homes with

flashy and expensive dcor,
best education for children,
imported cars, latest
household gadgets, 5-star
hotels.

Upper Middle

Professional careerists coming from middle

class values of respectable buying conformity,
emphasis is on good education, style is
gracious & careful.

Spend on buying quality

products, irrespective of the
category of product it is
quality which is the most
important feature, color TV,
VCR, Maruti car are some of
the products associated with

this class.
Lower Middle

White collar workers such as office workers,

small businessman, traders, value neatness and
cleanliness and want their home and
professions to reflect this

Spend a great deal of time

shopping around for best
bargain, they buy refrigerator,
B/W TV, scooter, motor cycle
etc

Upper Lower

Poorly educated, semi- skilled factory

workers, they comprise the largest social class
segment. Their major motivation is security,
purchase decision, often impulsive about
exhibits a high degree of brand loyalty

B/W TV, gas stove, ceiling or

table fan are bought but
largely on hire purchase basis,
if available

Lower Lower

Often uneducated, at the bottom of the society

and working as unskilled labor , live from day
to day basis with little planning for future.

Buy only the basic necessities

of life usually buy loose and
unbranded products have no
comprehension and value of
brands.

SOCIAL FACTORS
Reference Groups
The consumers decision to purchase and use certain products and services is influenced not only
by psychological factors, his personality and life style, but also by the people around him with
whom he interacts and various social groups he belongs to .
A group is defined as two or more people who interact to achieve individual or common goals.
The 3 categories of groups are

Primary & Secondary groups- A primary group is one with which an individual
interacts on a regular basis and whose opinion is of importance to him.
For eg:- family, neighbours, close friends, collegues and co-workers
Secondary groups are those with which an individual interacts only occasionally and does
not consider their opinion very important.

Formal & Informal groups- Rotary, lions, Jaycees are well known social groups in our
society. A formal group has a highly defined structure, specific roles and authority

positions and specific goals. An informal group is loosely defined and may have no
specified roles and goals. For eg- meeting neighbours over lunch once in a month, for
friendly exchange of news.

Membership & Symbolic groups- A membership group is one to which a person belongs
or qualifies for membership. All workers in a factory qualify for membership to the
labour union. Symbolic group is one in which an individual aspires to belong but is not
likely to be recognized as a member. A head clerk in an office may act as if he belongs to
the top management group by adopting their attitudes, values and modes of dress etc.

Reference groups- are used in advertising to appeal to different market segments, group
situation with which potential customers can identify are used to promote products and
services. Hidden in this appeal in the subtle inducement to the customer to identify
himself with the user of the product in question. The three types of reference group
appeals are celebrities, experts and common man.
celebrities

Film stars & sport Heroes

experts

Doctors, accountants, lawyers

Common man

Lalitaji (surf)

Indirect reference groups comprise those individuals or groups with whom an individual
does not have any direct face to face contact such as filmstars, TV stars, sportsmen,
politician.
Direct reference groups are ones which exert a significant influence on consumers
purchase decision and behavior can be classified as

Family

Friendship groups

Formal shopping groups

Consumer action groups

Work groups
Family two families shape an individuals consumption behavior.

1. Family of orientation is the family in which an individual is born, consists of parents,

brothers and sisters.

2. Family of procreation consists of consumers spouse and children. Within the family,
different members play different roles, marketers want to find out exactly the role played
by individual member. For eg- traditionally wife purchases food, clothing and other
household sundries, Husband plays a dominant role in the purchase of
automobiles/insurance children are also beginning to exert their influence on family
purchase decisions. TV, music system, personal computers etc.
Roles
An individual may participate in many groups has position within each group can be
defined in terms of activities he is expected to perform. For eg:At workplace

At home

Individual

manager

Spouse/parents

Requires

3 piece suit, tie, leather shoes

Jeans/T-Shirt/ Kurta Pyjama

Reason

To reflect status

Informal/comfort

Status
Each role a person plays has a status which is relative prestige according to society.
People buy and use products which reflect their status.
Group Norms
The norms of a group are the implicit rules of conduct and behavior that are expected of
its member.
For eg:- multinational company in India
Norm for office wear is shirt/tie even in summer
Marketers need to identify the various groups to which potential consumers belong to
market the products required.
Conformity
This implies that members of a group have adopted attitudes and behavior patterns that
are consistent with the groups norms. In the context of consumer behavior it refers to the
percentage of members who knowingly use the same brand of product.
Opinion leaders

Apart from family, a consumer is influenced by the advice he receives from his friends,
neighbours, relatives and collegues about what products and services he should buy.
This process of influencing is known as the opinion leadership process and is described
as the process by which the opinion leaders normally influences the actions and attitudes
of others.
The advice of opinion leaders is sought in case of specific products. People who have
acquired considerable knowledge and experience in a particular field are considered as
opinion leaders in that area.
Advertisers/marketers are therefore concerned with reaching opinion leaders.
Diffusion of Innovation
The acceptance of new products, brands and ideas is known as the diffusion of
innovation. Marketers are concerned with spread or diffusion of this innovation.

CONSUMER BEHAVIOR- DECISION

DECISION
In between the stage of receiving the stimuli and responding to it, the consumer goes through the
process of making his decision.
A decision is the selection of an alternative out of the several number of alternatives available.
LEVELS OF CONSUMER DECISIONS
As a buyer are consumer, we are all the time making decisions such as
1. What product to buy
2. Which brand to buy
3. From where
Type of Retail Outlet

Company showroom, exclusive brand dealer outlet

Multinational brand dealer outlet

Dealer outlet near home/recommended

Dealer outlet with servicing facility

PROCESS OF DECISION MAKING

Making a decision is a rational and conscious process in which the consumer evaluates each of
the available alternatives to select the best amongst them.
Each decision you make involves an elaborate mental thought process, a degree of active
reasoning, though on the surface it may not always seen to be so.
For eg:- Daily Bread- Decision variable, brand quantity, retail outlet
Sofa set- Decision variable, far more in number

Readymade/ made to order

From shop/ to be built at home

Type of material and design

Three factors1. Involvement

2. Alternative differentiation
3. Time pressure
Which influence the degree of active reasoning undertaken by the consumer in his process of
decision making.
INVOLVEMENT
When a product is perceived to be of great personal importance to the customer, such as personal
clothing, or its purchase involves a great deal of money or risk viz jewellery, car , home,
company shares the level of involvement is likely to be very high the consumer is likely to spend
a great deal of time before arriving at the final decision. In contrast when buying items which do
not reflect much on the consumers personality or their purchase involves small amounts of
money or the risk associated with them is not high, the degree of involvement of the consumer is
likely to be low.
For eg:- toilet soap, tooth brush. Biscuits, shoe polish etc.
TIME PRESSURE
When we are under pressure to make a decision quickly we cannot afford to spend a long time
finding out about the various products or brands. We probably buy whichever is readily available
For eg:- purchase of car tyre/tube under emergency on the road when it bursts and purchase
when we need to buy tyres.
DIFFERENTIATION
When the consumer perceives that the various alternatives which are available are very different
from one another in terms of their features and benefits offered, he is likely to spend more time
in gathering information and evaluating these different features.
On the other hand, in case of products which are not very different from one another either in
terms of their features or benefits offered, the consumer is bound to perceive them as being

almost the same and buy the first available product/brand which satisfies his minimum
expectations.
TYPES OF PURCHASE DECISION BEHAVIOR- THREE TYPES OF BUYING BEHAVIOR

Routinised response behavior

Limited problem solving

Extended problem solving

ROUTINISED RESPONSE BEHAVIOR (RRB)

this occurs when the consumer already has some experience of buying and using the product
consumers do not give much thought or time. When buying such products and already have a
preferred brand. The degree of involvement in buying such products is low. Frequently
purchased and low cost products such as razor blades, coffee powder, tooth paste, soap, soft
drinks etyc fall in this category.
Marketers dealing in products involving RRB must ensure the satisfaction of existing customers
by maintaining consistent quality service and value.
LIMITED PROBLEM SOLVING (LPS)
In this type of buying behavior, the consumer is familiar with the product and the various brands
available, but has no established brand preferrance. The consumer would like to gather additional
information about the brands to arrive at him brand decision.
For eg:- Branded refined oils (shopkeepers view)
LPS also takes place when a consumer encounters an unfamiliar brand in a known product
category. For eg:- Saffola
The marketers task in a situation where he is introducing a new brand in a well known product
category is to design a communication strategy that gives complete information on all the
attributes of the brand thus increasing the consumers confidence and facilitating his/her
purchase decision.
EXTENSIVE PROBLEM SOLVING (EPS)
EPS occurs when the consumer is encountering a new product category. He needs information on
both the product category as well as the various brands available in it.
The marketing strategy for such buying behavior must be such that it facilitates the consumers
information gathering/learning process about the product category and his own brand.

The marketer must be able to provide his consumer with a very specific/unique set of positive
attributes regarding his own brand so that the purchase decision is made in his favor.
The concept of EPS is most applicable to new products. The product may be new at the generic
product concept level (magi noodles) or it may be an established product concept but new for a
particular consumer (tribal exposed to concept of toothpaste).

STAGES IN THE BUYER DECISION PROCESS

In making a purchase decision the consumer goes through the five stages of
1. Problem recognition
2. Pre-purchase information search
3. Evaluation of alternatives
4. Purchase decision
5. Post purchase behavior
However, in case of routine purchases, the consumer may skip the second & third stages and
straight away go the stage of purchase decision.

Problem recognition- the buying process starts with the buyer recognizing a need or a
problem

Pre-purchase information search- External & Internal

Internal- refers to recalling relevant information stored in the memory.
External- refers to deliberate and voluntary seeking of information, recognized the
product/brand under consideration which can be from1. Personal sources- family, friends, collegues, neighbors
2. Commercial sources- advertisements, retailers, salesperson
3. Public sources- seeing others, consumer information centres
EVALUATION OF ALTERNATIVES

Commonly used criteria

Product attribute

Relative importance

Brand image

Attitudes towards the different brands/alternatives under consideration

The stage of the buying decision process gives the marketer a chance to modify his product
offering in keeping with the relative importance attached to each attribute by various consumer
segments, altering beliefs and attitudes about his own brand and calling attention to neglected
product attributes.
PURCHASE DECISION
Consumer end up buying a brand which is not his most preferred because of

Shopkeepers influence

Preferred brand not available

Attractive incentive on other brand

POST PURCHASE BEHAVIOR

After purchasing the product if consumer finds that its performance/utility matches up to his
expectation, satisfaction occurs.
Satisfaction will reinforce customers perceived favorable image of the brand which can get
extended to the entire range of products manufactured by the company.
Customer may also strongly recommend the brand to others. However if the product is not upto
his expectation- dissatisfaction results. The customer may decide to stop buying other products
of the company and inform people known to him/her about the poor quality performance of the
product.

CHAPTER 3
COMPANY PROFILE

India is an emerging country with huge potential. The domestic economy is now growing at
around 9-10% per annum and Indias importance in global terms is being reinforced by rapidly
rising exports and domestic consumption. At a time when numbers of a slowdown and
overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a
surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark.
The automotive industry is at the center of Indias new global dynamic. The domestic market
expanding rapidly as incomes rise and consumer credit becomes more widely available.
Manufacturers product lines are being continually expanded, as is the local automotive
manufacturing base. Expectation are high that India can develop as a global hub for vehicle
manufacturers and as an outsourcing center that offers the global automotive industry solution
high up the automotive value chain.
India eyes 25 million automotive jobs.
India's GDP is set to double over the next decade
In percentage terms, the automotive industry's contribution should also double.
In dollar terms, the sector's contribution is set to quadruple to some $145bn
The automobile industry in India accounts for a business volume of $45 billion and has the
potential to grow much faster both through Indian as well as international manufacturers who
have established huge facilities in the country
With the worlds second largest and fastest-growing population, there is no denying Indias
potential in both economic and population terms and the effect it will have on the auto industry
in the years to come. The country is already off to a good start, with a well-developed
components industry and a production level of 1 million four-wheeled vehicles a year, plus a
further 5 million two- and three-wheelers.
The implications, market drivers and scope of a future massive Indian vehicle market are
covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and
related activity to 2020. Based on Max Pemberton's unique relational long-term forecasting
model, it forecasts car and CV sales, demographics, materials usage, auto industry employment,
and explains their inter- year of healthy growth in auto industry.

INDUSTRY GROWTH

Future of the Automobile in the Economy

US based consultancy, keystone predicts that India will become worlds third largest automobile
market by 2030. Overall size expected to exceed 20 million with compounded annual growth
rate of over 12%.

India Then & Now

1983
Number of brands 2
Number of models 2
2008
Number of brands

30

Number of models 70
Some of the Car companies in India:
Maruti Suzuki
Fiat
General motors (Opel, Chevrolet)
Ford
Hindustan motors, Mitsubishi
Honda
Hyundai
Baja tempo
Marinara
Maine elect.
Mercedes Benz
Nissan
San engineering
Soda
Toyota

Top three manufacturers:

Maruti Suzuki
Tata motors
Hyundai
Car segmentation: This is done on the basis of size and price of the car
A segment: maruti800, omni
B segment: Zen, wagon-r, alto, Santo, polio, indicia
C segment: esteem, accent, indigo, icon, Honda city, civic
D-segment: opera, Octavia, sonata, monde, accord, corolla, Camry, Mercedes

History of Maruti

In 1970 , Sanjay Gandhi the son of Indira Gandhi envisioned the manufacture of an indigenous ,
cost effective , low maintenance compact car for the Indian middle class . Indira Gandhis
cabinet passed a unanimous resolution for the development and production of a peoples car.
Sanjay Gandhis company was christened Maruti limited. The name of the car was chosen after a
Hindu deity named Maruti Ltd. That time Hindustan Motors Ambassador was the chief car and
the company had come out with a new entrant the premier Padmini that worked slowly gaining a
part of the market share dominated by the ambassador. For the next ten years the Indian car
market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983.
Sanjay Gandhi was awarded the exclusive contract and license to design, develop and
manufacture the Peoples Car. These exclusive rights of production generated some criticism in
certain quarters, which was directly targeted at Indira Gandhi. Over the next few years the
company was sidelined to Bangladesh liberation war and emergency.
In the early days under the powerful patronage of Sanjay Gandhi the company was provided with
free land, tax breaks and funds. Till the end of 1970 the company had not started the production
and a prototype test model was welcomed with criticism and skepticism. The company went into
liquidation IN 1977. The media perceived it to be another area of growing corruption.
Unfortunately Marutis started to fly only after the death of Sanjay Gandhi, when Suzuki motors
joined the government of India as a joint venture partnered with 50% share. After his death
Indira Gandhi decided that the project should not be allowed to die. Marutis entered into this
collaboration with Suzuki motors. The collaboration heralded a revolution in the Indian car
industry by producing the maruti-800. It created a record of taking 13 months time to go from
design to rolling out cars from a production line.
The production of Maruti-800 in 1983 marked the beginning of a revolution in the Indian
automobile industry. It brought in the latest technology of that time more fuel efficiency and
lower prices that led to the creation of a huge market for all car segments as the Indian, middle
class grew in size. This in turn brought in more players in this segment. A number of auxiliary

car parts making units were set up as more car manufacturers realized it was more cost effective
to make their car parts in India rather than importing them.
Marutis major influence was in helping the component industry in the country because of its
emphasis on localization and indigenization. As in the beginning that sector hadnt grown much
Marutis had to start dozens of joint ventures with Indian entrepreneurs. It got them from foreign
collaborations that led to collaborations for other manufacturers so that over a period of time the
whole component industry was able to upgrade itself and improve its quality who had given their
income leading to major existing export potential vehicle components. It also brought in better
methods of financing that allowed more people who given their income levels could not afford to
buy a car on their own, to buy cars. It still remains the leader not only in the terms of market
share but also in customer satisfaction surveys. It has consistently topped J.D. power quality
surveys, including 2005. By the year 1993 the company had sold 1, 96,820 cars. By March 1994
it produced 1 million vehicles becoming the first Indian company to cross the 2 million mark in
October, 1997 and rolled out 4 millionth vehicles as Alto-LX .Then it introduced Wagon-R
followed by Swift . Swift has been a great success in the market .In 2007 Maruti came up with
SX4 and Grand Vitara.

Maruti Suzuki- at a glance

Maruti Suzuki India Limited is a

Maruti Suzuki India Ltd

publicly listed automaker in India. It

is a leading four-wheeler automobile
manufacturer in South Asia. Suzuki
Motor Corporation of Japan holds a Type
majority stake in the company. It was

Public

the first company in India to mass- Founded

1981[1]

produce and sell more than a million

cars. It is largely credited for having

(BSE

MARUTI,

NSE

MARUTI)

Headquart

Gurgaon, Haryana, India

ers

brought in an automobile revolution to

R C Bhargav , Chairman

India. It is the market leader in India.

On 17 September 2007, Maruti Udyog Key people
was renamed to Maruti Suzuki India

Shinzo Nakanishi, Managing

Director

Limited. The company's headquarters

remain in Gurgaon, near Delhi.

Industry

Automotive

Products

Cars

Revenue

US$2.5 billion (2005)

Employees 6,903[2]
Parent
Website

Suzuki
www.marutisuzuki.com

Profile

Maruti Suzuki is one of India's leading automobile manufacturers and the market leader
in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,
18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan.
The Indian government held an initial public offering of 25% of the company in June 2003. As of
May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this,
Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles.
Marutis are sold in India and various several other countries, depending upon export orders. Cars
similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and
other South Asian countries.
The company annually exports more than 30,000 cars and has an extremely large
domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004, was the
India's largest selling compact car ever since it was launched in 1983. More than a million units
of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model. Till recently the term "Maruti", in popular
Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has
been the leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of
New Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity
of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines
and transmissions.
Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units
annually. More than half the cars sold in India are Maruti cars. The company is a subsidiary of

Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the
public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock
Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti cars are on Indian roads since the first car was rolled out on December
14, 1983.
Maruti Suzuki offers 10 models, ranging from the peoples car, Maruti 800, for less than
Rs 200,000 ($ 5000) ex-showroom to the premium sedan SX 4 and luxury SUV, Grand Vitara.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact
cars for three decades. Suzukis technical superiority lies in its ability to pack power and
performance into a compact, lightweight engine that is clean and fuel efficient.
Maruti is clearly an employer of choice for automotive engineers and young managers
from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.
The company vouches for customer satisfaction. For its sincere efforts it has been rated
(by customers)first in customer satisfaction among all car makers in India for seven years in a
row in annual survey by J D Power Asia Pacific.
Maruti Suzuki was born as a government company, with Suzuki as a minor partner, to
make a peoples car for middle class India. Over the years, the product range has widened,
ownership has changed hands and the customer has evolved. What remains unchanged, then and
now, is Marutis mission to motorize India.

SERVICES OFFERED

The following products are offered by Maruti Suzuki:1. Maruti 800: Launched 1983. Largest selling car in India, until 2004. Cheapest
car in India. 3 Face-Lifts.(P)
2. Maruti Omni: Launched 1984. 2 Face-Lifts.(P)
3. Maruti Gypsy: Launched 1985.(P)
4. Maruti Wagon-R:Launched 1999, 2 Face-Lifts.(P)
5. Maruti Alto: Launched 2000. Currently the largest selling car in India. 1 FaceLift.({{Tooltip|P|Petrol
6. Maruti Versa(2003-) (P)
7. Maruti Zen Estilo(2005-) (P)
8. Maruti Suzuki Swift 1 very small face-lift(2006- ) (P & D)
9. Maruti Suzuki SX4 (May 2007- ) (P & D)
10.Maruti Grand Vitara Sports Utility Vehicle Launched in (July 2007- ).
Imported(P)
11.Maruti DZiRE Sedan Version of swift launched in (March 2008- ) (P)

Upcoming models in 2008

1. Suzuki Splash
2. Suzuki A-Star

Future Maruti Suzuki Plans

1. Maruti Omni Face-Lift in 2009

2. New Mini-SUV in 2010 Likely to be a four-door Jimny.

3. New Luxury Sedan in 2010 Likely to be a production version of the Kizashi.
4. New Swift in 2011
5. New Alto

(Price wise product segmentation by Maruti Suzuki)

GENERAL DISCRIPTION OF MODELS

MARUTI 800:-

Maruti 800 is a city car manufactured by Maruti Udyog in India .It used to be the largest selling
car in India until the Maruti Alto recently took that title. It is also exported to a number of
countries in southeastern Asia including Bangladesh and Sri Lanka, and to some South American
markets (as Chile, sold as Suzuki Maruti), and was available in selected European markets
between 1988 and 1992, sold as the Suzuki Maruti. In Morocco it is currently sold as Suzuki
Maruti (as of March 2008). The car comes in different versions including one with air
conditioning and one without. It was launched in December 1984 with almost 100% imported
components.

MARUTI OMNI :
The Maruti Omni is a microvan manufactured by Indian automaker Maruti
Udyog Limited. The first version of Maruti Omni had the same 796 cc
engine as the Maruti 800 city car. This was the second vehicle to be
launched by Maruti, one year after the 800, in 1984. Later
version of the Omni includes the

Omni (E), released in 1996, 796 cc engine, 8

seater capacity vehicle

Omni XL - 1999, same engine, modified with a higher roof.

Omni Cargo LPG - 2004, created to answer the growing popularity of this
car being used as an inter-city cargo vehicle.

Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit, authorised by the
Indian RTOs (Regional Transport Offices). This makes it the most economic 4 wheeler in India,
as far as the driving costs are concerned
MARUTI GYPSY

The Maruti Gypsy is a four wheel drive SUV based on the Suzuki
SJ long wheel base.Produced in India, it is also a common sight in
Chile and Kenya. Within Europe, it is most often found in Malta and
Hungary. In contrast to the Suzuki, the Maruti is available with 4
seats and a sizeable trunk. The Maruti Gypsy is available as a "soft
top", "hard top " and as an "ambulance car". In India, it is widely
used by the police and defense forces. In civilian use, the Gypsy is a popular choice as a low-cost
SUV and is a common sight at rally events.
MARUTI WAGON-R
The Maruti Wagon-R is a made for India version of Suzuki
Wagon R. The Wagon-R was born out of Japanese kei-jido-sha
restrictions which dictated a limited length and engine size. This boxy, tall-boy design has now
completed five years of presence on Indian roads. Now the car has found a market for itself,
especially among young Indian urban professionals who don't mind its boxy slab-sided looks,
but value its Maruti lineage. The car is currently among India's top five best-selling cars.
MARUTI ALTO
The Maruti Alto is a city car manufactured by Maruti
Udyog in India. It is the best-selling car in India.It is India's
largest selling car and has recently crossed the 1 million
production figure.It is exported to a number of countries
including Bangladesh and Sri Lanka, and to Chile. Alto has
crossed the 150,000 export target. The popularity of the Alto has increased over the past few
years, mainly due to the reduction in prices. This reduction in prices has mainly come in due to
the reduction in excise duty over time. It has now become the first choice of young car buyers
intending to upgrade from a 2 wheeler. Some of its appeal is from stylish looks, attractive
features, and impressive fuel economy at very affordable prices compared to the other cars in the
Indian market.
MARUTI VERSA

The Maruti Versa is a micro van produced by Maruti

Udyog Limited and sold in India since October 2001. The
Versa is a clone of the now discontinued Suzuki Carry. It is
the second van released by Maruti Udyog since the Maruti
Omni was released in 1984. There are two basic versions
of this car in production; the two 8-seater DX/DX2
versions, and the 5-seater STD version. The DX2 version of the Versa is equipped with twin air
conditioners for front and rear.

MARUTI SUZUKI SWIFT

The MARUTI Suzuki Swift is name plate marketed by Suzuki carried by vehicles of
three distinct derivations:

Generations I, II, III: a super mini

that began as an export nameplate
of the Japanese domestic market of
suzuki .

Generation IV: the current JDM, Europe and Oceana generation, a significant
departure from the previous models, marketed solely under the nameplate
"Swift". (this article)

Canadian Swift+: the current Canada-only generation marketed under the Suzuki swift.
Currently this varient is hot seller in India in the mini car segment.
MARUTI SUZUKI SX4

In an attempt to strengthen its position in the of

Sedan cars market, Maruti Udyog Ltd. has
launched its premium model bearing name SX4.
After Maruti Suzuki Swift, SX4 is the second
international model being launched in India.
Suzuki SX4, is an A3 segment sedan car, with a
perfect combination of style, performance, safety
and comfort. There are two versions of Suzuki SX4: Vxi and Zxi that gets power from
latest and efficient 1.6-litre M-Series engine delivering impressive 102 BHP of power.
Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough
competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and
Indigo XL.

MARUTI SUZUKI DZIRE

Maruti Swift Dzire is the new entry level sedan
from Indian automaker Maruti Suzuki.
Launched on March 26 2008, Maruti DZiRE is
based on the popular Maruti Swift platform. The
DZire replaces Maruti Suzukis popular entry
level sedan, Maruti Suzuki Esteem, production
of which was discontinued in late 2007. Maruti
Suzuki has introduced DZire only in the Indian market. The car is pitted against the other entry
level sedans in the Indian market, such as the Mahindra Renault Logan and the Tata Indigo.
MARUTI SUZUKI ESTEEM
Sophisticated big structured Maruti Suzuki esteem is one of the old car of the Maruti
Udyog group. To run this huge car its engine is made of lightweight all-aluminum.

This contemporary engine has capacity of

65 bhp at 6000 rpm . According to
*Mileage (Auto India , Nov 2005), Esteem
holds the topmost position on mileage
among the other category of cars
including the small cars. The Esteem was
introduced in the global market in 1995 as
Suzuki's first attempt in the compact segment, at the time dominated by European
cars such as the Volkswagen Bora/Jetta and Opel Astra, and Japanese models such
as the Nissan Sunny/Sentra and Toyota Corolla. As a North American replacement
for the Suzuki Swift sedan (the 3-door hatchback remained after it was redesigned
in 1995), it was built on a slightly stretched Suzuki Cultus platform for improved
cabin room, but otherwise sharing most of internal components with the smaller
model and marketed as a distinct model

MARUTI SUZUKI BALENO

The Baleno has the looks and feel of a winner. This was
Maruti Udyog's first D-segment car launched in India to
compete with the Mitsubishi Lancer and the Honda City.
This is also Suzuki's biggest passenger car and in Japan
and other markets. The Baleno is called the Cultus in
Japan. Suzuki restyled the Baleno in 1999. The car was
given a new front end, with a rounder
grille and new headlights, and the
engine lineup was expanded.

MARUTI SUZUKI GRAND VITARA

The Suzuki Grand Vitara is a compact SUV, namely a long-wheelbase version of the Vitara,
produced by the Japanese automaker Suzuki since 1999. It was face lifted in 2002 and 2004, and
redesigned in 2006. A rebadged version was sold in North America by General Motors as the
Chevrolet Tracker. The Tracker is sold in Latin America, but Mexico, as Chevrolet Grand
Vitara. In Mexico, Grand Vitara and Tracker are different vehicles, sold by Suzuki and Chevrolet
respectively The 2006 model has had a structural redesign with a new ladder-boxed chassis
integrated into a unibody construction. In India, it is sold as a Maruti.
MARUTI SUZUKI ZEN-ESTILO
Estilo has got Wagon R's engine and chassis and Suzuki
MR Wagon's shape. Whatever remains is taken from Zen,
well does anything remain actually? This is the mixture
of zen and wagon -R . 'Zen Estilo'. In essence its stylish
Wagon R, Japan's MR Wagon, combination of the two or
anything but Zen. It seems Maruti wants to exploit Zen
brand-image hence named this car after Zen. With this model MSL has given its B segment a
new variant by which it may compete with the models of other company.

CHAPTER 4
DATA ANALYSIS & INTERPRETATION

1. Age:
Below 20 yrs

20-30yrs

30-40yrs

40-50yrs

Above 50yrs

Table No: 1

Age of the consumers

Below 25 years
26 to 30 years
31 to 40 years
40 years & above
Total

Frequency

Percent

Valid Percent

18

18

18

32

32

32

24

24

24

26

26

26

100

100

100

120
100
80
60

Age of the consumers Valid

Percent

40

Age of the consumers

Percent

20

Age of the consumers

Frequency

Interpretation:
Majority of Consumers falls between the age of 26 to 30 years, & later followed by 40 years &
above. There is no investment activity between the age of below 25 years, it may be because of
the people in this age are found to be students or employees.

2. Marital Status:

Married

Unmarried

Table No: 2
Status
No of Respondents
Married
52
Unmarried
48
Total
100

52

51

50
Married

Unmarried

49

48

47

46
response

Interpretation:
The above chart showing 52 people is married and 48 people is unmarried

3. Educational Qualification:

No formal Education

Matriculation

Graduation

PG & Others

10+2

Table No: 3
Education
No Formal Education
Matriculation
10+2
Graduation
PG & Others
Total

No of Respondents

15
15
38
22
10
100

No of Respondents
40
35
30
25
20
15

No of Respondents

10
5
0

Interpretation
The above chat showing in my survey 15% people have no formal education they small
bossiness holders and 38% people completed 10+2, in second position 22% customer completed
graduation only 10% people completed PG & Others.

4. Respondents on the basis of their Occupation

Student

Employed

Business

Professional Others
Table No: 4
Sl. No.

Occupation

No of Respondents

Percentage

13

13 %

44

44 %

13

13 %

30

30 %

100

100 %

Govt. Employee

Pvt. Employee

Business People

Student

Any other

Total

No of Respondents
44

Percentage

44

30

13

13

Govt. Employee

13

Pvt. Employee

30

13

Business People

Student

Any
0 other
0

Interpretation
The above table interprets that the Govt. working Employees 13 % and the Pvt. Working
employees 44 % of the respondents and Business people 13% of respondents. Majority of the
respondents are form working class who use Maruthi Suzuki connection, apart this interesting to
note that even non working class also use Maruthi Suzuki connection significantly.

5. Classification of respondents on the basis of their monthly income

10,000-20,000

20,000-30,000

30,000-40,000

40,000-50,000

50,000 Above

Table No: 5
Sl. No.
Income

No of Respondents

Percentage

10

10 %

40

40 %

23

23 %

27

27 %

100

100 %

10,000-20,000
2
20,000-30,000
3
30,000-40,000
4
40,000-50,000
5
50,0000 and above
Total

Interpretation
The above table interprets that 10 % of respondents belong to the income group of 20,000
30,000, 40 % of respondents belong to the income group of 30,000 40,000, 23 % of respondents
belong to the income group of 40,000 50,000 and the remaining 27 % of respondents belong to
the income group of 50,000 and above.

The above data indicates that most of the respondents belong to the middle and upper income
group which play an important role in purchase of Maruthi Suzuki6.How did you come to know
about Maruti Suzuki?
Internet

Friends

TV Ads

Magazines News paper Ads

Others

Table No: 6
Mode
Internet
Friends
TV ads
Magazines
News papers
Others
Total

No of respondents

Percentage (%)

40

40

19

19

11

11

23

23

100

100

Interpretation
This shows that the mode of awareness is mainly due to the friends circle and then we see
through Television, newspapers, magazines and internet.

7. Did you own a two wheeler prior to purchasing Maruti Suzuki?

Yes

No

Table No: 7
Particulars

No Respondents

Yes

68

No

32

Total

100

No Respondents
Yes

No

32%

68%

Interpretation
The above chart showing most of the customers form has two wheeler.

Two wheelers customer 68% others 32%, Maruthi Suzuki need to concentrated on two wheeler
owners.8. Purpose of buying Maruti Suzuki

Personal Use

Business or Commercial Use

Investment

Gift

Any other

Table No: 8

Purpose
Personal Use
Business or Commercial Use
Investment
Gift
Any other
Total

Response
52
32

8
2
6
100

Response
60
50
40
30

Response

20
10
0

Interpretation
The above chart showing most people preferred Maruthi Suzuki is use for personal use 52%
using and 32% people using for bossiness and commercial use only 8% people for investment
like cabs maintains and 2% people using for gift purpose to give others and 6% people using
others purpose.

11. What is your opinion regarding pricing of Maruti Suzuki?

Reasonable

High Too high

Table No: 10
Response

Cost
Reasonable

78

High

21

Too high

1
100

Total

Reasonable

High

Too high

Interpretation
78 % of the respondents are liked price and they total reasonable and 21% respondents they are
feeling prices is too height only 1%

12. Do you think Maruti Suzuki is a multipurpose vehicle?

Yes

No

Table No: 11
Particulars

No of respondents

Percentage

Yes

75

75%

No

25

25%

Total

100

100

80
70
60
50

Yes

NO

40
30
20
10
0
No of respondents

Interpretation
75% of the samples consider Maruthi Suzuki as multi purpose vehicle and 25% people do not
feel so.

13. How satisfied are you with the after sales service you received for your vehicle?
Fully satisfied

Satisfied

Unsatisfied

Table No: 12
No of respondents

Percentage (%)

Fully satisfied

65

65

Satisfied

14

14

Unsatisfied

21

21

Total

100

100

Particulars

70
60
50
40

Fully satisfied

Satisfied

Unsa tisfied

30
20
10
0
No of respondents

Interpretation
65 of respondents are fully satisfied and 14% of respondents are normally satisfied and 21%
people are not satisfied.

14. Are you satisfied with the duration of service period?

Yes

No

Table: 13
Particulars

Cant Say

No. of Respondents

Percentage (%)

Yes

49

49

No

43

43

Cant Say

100

100

Total

8%

Yes
49%
43%

No
Cant Say

Interpretation:
49% of the respondents are satisfied about the service period and 43% percent are not satisfied
and 8% people could not say clearly.

15. If you are not satisfied with the duration of free services, what is your preferred
extension of service period?
6months

1year

Table No: 14
Particulars

1 Years

No. of Respondents

Percentage

35

35

46

46

1 Years

19

19

Total

100

100

6months
Yes
1year

3; 19%
1; 35%

2; 46%

Interpretation:
80% of the respondents were desirous to increase the free services offered by the company and
are not satisfied about free service period

16. Are you satisfied with availability Spare Parts of Maruthi Suzuki
Yes

No

Table No: 15
Particulars

No. of Respondents

Percentage (%)

Yes

89

89

No

11

11

100

100

Total

Interpretation:
Spare parts availability is the important factor while purchasing about a car. In this case 89% of
the samples is satisfied about that 11% of the samples were not.

17. How do you rate Maruthi Suzukis Service?

Excellent

Good Satisfactory

Not satisfactory

Table No: 26
Particulars
No of respondents

Percentage (%)

52

52

18

18

12

12

100

100

Excellent

Good

Satisfactory

Not satisfactory

Total

60

50

40
Excellent

Good

Satisfactory

Not satisfactory

30

20

10

0
No of respondents

Interpretation:
From the above mentioned chart it can be realized that liking of the respondents towards
MARUTHI SUZKI is very high i.e. MARUTHI SUZKI service is liked by most of the
respondents. But there is mixed responses over their plan to buy MARUTHI SUZKI. There were
around 40 respondents who may buy MARUTHI SUZKI and there 32 respondents who may not
buy. The rest 6 were not satisfied

18. How satisfied you are with the performance of Maruti Suzuki?

 Fully satisfied

Satisfied

Not at all satisfied

Table No: 17
Particulars

No. of Respondents

Percentage (%)

Fully satisfied

82

82

Satisfied

12

12

Not at all satisfied

100

100

Total

90
80
70
60
50

Fully satisfied

Satisfied

Not at all satisfied

40
30
20
10
0
No.of Respondents

Interpretation
82% of the respondents liked Maruth Suzuki and are highly satisfied and 12% of the respondents
are not satisfied fully and 6% of the respondents is not satisfied.
19. What is your opinion about advertisement and publicity of Maruti Suzuki?

 Excellent

Good

Satisfactory

Not satisfactory

Table No: 18
Particulars
No of respondents

Percentage (%)

29

29

19

19

25

25

15

15

100

100

Excellent
Good
Satisfactory
Not satisfactory
Total

30

25

20
Excellent

Good

Satisfactory

Not satisfactory

15

10

0
No of respondents

Interpretation
65% of the respondents was satisfied and 35% was not satisfied about Maruthi Suzukis
advertisement programme and Maruthi Suzuki needs to introduce some workshops and powerful
marketing activities

20. Would you like to recommend Maruthi Suzuki products to others?

Yes

No

Table No: 19
Particulars

No of respondents

Percentage

Yes

90

90%

No

10

10%

Total

100

100

90
80
70
60

Yes

NO

50
40
30
20
10
0
No of respondents

Interpretation:
90% of the respondents said they would refer Maruthi Suzuki to in their own network and circle.

CHAPTER 6
FINDINGS & SUGGESTIONS

FINDINGS
The sales consultants were polite and courteous with the customers, and answer
all the queries.
Information regarding price list etc is readily available at the showroom.
Majority of customers says that the sales consultants are knowledgeable and they
able to answers the queries.
As above mentioned 96% of the customers says that they get there vehicles at
clean & good conditions.
Over all 64% of the customers have received the letter of thanks from this dealer.
The majority of the customers experience regarding dealer was good & excellent.
Majority of the customers would like to recommend Maruti varun dealer
definitely to there friends & associates.
Customers who had purchased vehicles from this dealer would like to visit the
same showroom in case of purchasing another Maruti car.
Almost every customer felt that they gain some advantage in buying the vehicle
from Maruti Suzuki agencies.

Majority of the customers are highly satisfied the with overall performance of
Maruthi cars & still minor changes can be brought in the car .

The customers are satisfied with the available colors.

Most of the customers are satisfied with the prices charged
agency for Maruti Suzuki.

Varun Pvt Ltd

 Customer satisfaction towards organization is to build long term relation &

strong value in them. The organization has been successful in satisfying
individual needs of customers.

SUGGESTIONS
The company should work towards building customers lifetime value enhances
customer relationship.
Placing knowledge and technical sales people who are able to provide complete
information to the customers their enquiry would be of greater advantage to the
company.
The firm should work towards proper value delivery network where customers
get value for his product.
Attention should be paid on addressing all the small and minute problems and
queries in the customer care division.
Customers feel that the customer care division should involve more Personnel
and Human touch
Sunday car servicing would be an added advantage to official people and it will be
very convenient for every customer.
The firm should work towards bridging the gap between the
customers expectations before purchase and customers satisfaction after the
usage of the product.

CHAPTER 7
CONCLUSION

CONCLUSION
Based on study conducted on customer perception it has been concluded
that in order to improve the satisfaction level, a company has to come up with different
models and creative technique. Hence, it has been further concluded that to satisfy
customer dealers plays a vital role in providing accurate services by reaching their
expectations and by maintaining good relations with the customer which satisfies their
needs and wants.

QUESTIONNAIRE

QUESTIONNAIRE
1

Name :

Age:

Marital Status:

Below 20 yrs
40-50yrs

20-30yrs
Above 50yrs

Married
4

Educational Qualification:
No formal Education
Graduation

30-40yrs

Unmarried
Matriculation
PG & Others

Occupation:
Student
Employed
Professional Others

10+2

Business

Monthly Income of your family (in Rs)

10,000-20,000
20,000-30,000
30,000-40,000
40,000-50,000
50,000 Above

How did you come to know about Maruti Suzuki?

Internet
Friends
TV Ads
Magazines News paper Ads
Others

Did you own a four wheeler prior to purchasing Maruti Suzuki?

Yes
No

Purpose of buying Maruti Suzuki

Personal Use
Business or Commercial Use
Investment
Gift
Any other

10 What factors influenced you to own Maruti Suzuki?

Parameter
Good
Average
Style
Comfort
Quality
Safety
Maintenance
Mileage
Service
Availability of Spares

Poor

11 What is your opinion regarding pricing of Maruti Suzuki?

Reasonable
High Too high
12 Do you think Maruti Suzuki is a multipurpose vehicle?
Yes
No
13 How satisfied with the after sales service you received for your vehicle?
Fully satisfied
Satisfied
Unsatisfied
14 Are you satisfied with the duration of service period?
Yes
No
15 If you are not satisfied with the duration of free services, what is your preferred extension
of service period?
6months
1year
1 Years
16 Are you satisfied with availability of Spare parts in Maruthi Suzuki
Yes
No
17 Are you satisfied with Maruthi Suzuki Service
Excellent
Good Satisfactory

Not satisfactory

18 How satisfied are you with the performance of Maruti Suzuki?

Fully satisfied
Satisfied
Not at all satisfied
19 What is your opinion about advertisement and publicity of Maruti Suzuki?
Excellent
Good Satisfactory
Not satisfactory
20 Would you like to recommend Maruthi Suzuki products to others?
Yes
No

BIBLIOGRAPHY

BIBLIOGRAPHY
TEXT BOOKS
1 Kotler & Armstrong, 2006, Principles of marketing (15th edition)
Prentice hall of India

2 David j. Luck & Ronald S. Rubin, 2002, marketing research

(9th edition) Prentice hall of India
3 S.L.Gupta, 2002, Cases & Problems in marketing research (1st edition)
Himalaya publishing house

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www.marutisuzuki.com
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