"The People's Car From Tata Motors": Customer Behaviour Towards Nano Car

[Type the document title]
CUSTOMER BEHAVIOUR TOWARDS NANO CAR
Mar. 2
1
“The people’s car from Tata motors”
Mar. 2
Research Project
on the topic
‘Customer behavior towards Tata NANO
Submitted in partial fulfillment of the requirements of
Master of Business Administration (MBA)
Kurukshetra University, Kurukshetra
Under the Guidance of : Submitted By:
Name: ms. Gayatri arya Sahil singla
Designation MBA: 4th Semester
Roll. No. mba 09/50
Department of Management Studies
NC College of Engineering Israna, Panipat
SESSION 2009 – 2011

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INDEX
Mar. 2
S.NO. CONTENT PAGE NO.
1 INTRODUCTION 5
 MARKET OVERVIEW
 COMPANY PROFILE
 ABOUT NANO
2 OBJECTIVES & RESEARCH 24

METHODOLOGY
3 LITERATURE RIVIEW 29
4 DATA ANALYSIS 34
5 FINDINGS 43
SUGGESTIONS
BIBLOGRAPHY
6 QUESTIONAIARE 47
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Mar. 2
CHAPTER1
INTRODUCTION
4
Mar. 2
Executive Summary
Tata Nano is the cheapest car in the world. It is sold in home country India around Rs 1 lakh i.e.
approximately USD 2000. It is manufactured by Tata Motor Limited, the largest to automobile
company in India. It’s Chairman, Mr Ratan Tata envisions that Tata Nano become a “People’s
car” which is affordable by almost everybody. Tata Nano was first launched in India on 1st April
2009 and expected to be in Indian market by July 2009. Since launching, it has created a huge
buzz all over India. Within the first two days of lunching, it has received 5500 booking. The
figures keep increasing everyday since the launching.What makes Tata Nano so cheap?
Basically, by making things smaller, lighter, do away with superficial parts and changethe
materials wherever possible without compromising the safety and environmental compliance. It
is said that Tata Nano has better mileage than Toyota Prius and same gas emission as a
scooterTata Nano will be imported to Malaysia by Tata Industries in parts. It will be assembled
in its two factories i.e in Shah Alam, Selangor and Pasir Gudang, Johor Bahru. There are four
distribution centres in Peninsular Malaysia i.e. in Kuala Lumpur, Penang, Johor Bahru and
Kuantan. All Tata Nano cars will be distributed through these distribution centres only. Order
can. be made vide these distribution centres or its web site.There are three types of Tata Nano car
available i.e. Tata Nano, Tata Nano CX and Tata Nano LX. However, due to hot weather in
Malaysia, only Nano CX will be brought to Malaysia and will be sold here. The selling price of
Nano CX in Malaysia is RM 13,704 per unit. It is estimated that gross profit for the first year
would yield xxx, second year xxx and third year xxx Estimated monthly instalment payment is
xxx for seven years period. With this price, the target market is very wide which includes those
with income RM 2000 per month, students female workers and scooters’ riders. Introduction:
India is an emerging country with huge potential. The domestic economy is now growing at
around 9-10% per annum and India’s 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
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surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark.The
automotive industry is at the center of India’s new global dynamic. The domestic market
Mar. 2
expanding rapidly as incomes rise and consumer credit becomes more widely available.
Manufacturer’s 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
doubleover the next decadeIn percentage terms, the automotive industry's contribution
shouldalso 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 world’s second largest and
fastestgrowing
population, there is no denying India’s 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 welldeveloped components industry and a production level of 1 million fourwheeled
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.
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Market overview
Mar. 2
The passenger vehicle market, which constitutes around 80% of automobile sales, has immense
growth potential as passenger car stock stood at around 11 per 1,000 people in 2008.
Anticipating the future market potential, the production of passenger vehicle is forecasted to
grow at a CAGR of around 11% from 2009-10 to 2012-13. The recent launch of Tata Nano has
brought about a new revolution in the country’s small car segment. Seeing the good initial
response from consumers, many other players in the industry are chalking out their plans to
launch cars in this segment in the next few years. Our research foresees a CAGR growth of
around 12% in domestic volume sales of passenger vehicles during the forecast period. Other
segments, such as two-wheelers, multipurpose vehicle and light commercial vehicle, are also
expected to witness fast growth in coming years. The report covers various aspects of the Indian
automobile market and gives detailed analysis of its various segments such as passenger vehicle,
commercial vehicle, utility vehicles, multi-purpose, two wheelers and three
wheelers. Each section succinctly explains the current and future market trends, and
developments in the Indian automobile market. There are immense opportunities for various
industry players including automobile manufacturers and players of automobile components.
Besides, we have also comprehensively analyzed the auto component industry and its future
outlook. The study has evaluated growth avenues available for the automobile market, which
include automotive design market, non-conventional vehicle market, domestic tyre industry,
India as global manufacturing hub, green car market etc.
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Mar. 2
Company Profile:-
Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.
92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each
segment, and among the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fourth largest truck
manufacturer, and the world's second largest bus manufacturer.
The company's 24,000 employees are guided by the vision to be "best in the manner in which
we operate, best in the products we deliver, and best in our value system and ethics."
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with
Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and
Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's
dealership, sales, services and spare parts network comprises over 3500 touch points; Tata
Motors also distributes and markets Fiat branded cars in India.
Tata Motors, the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the UK, South
Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two
iconic British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial
Vehicles Company, South Korea's second largest truck maker. The rechristened Tata Daewoo
Commercial Vehicles Company has launched several new products in the Korean market,
8
Mar. 2
while also exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors
acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and
subsequently the remaining stake in 2009. Hispano's presence is being expanded in other
markets. In 2006, Tata Motors formed a joint venture with the Brazil-based Marcopolo, a
global leader in body-building for buses and coaches to manufacture fully-built buses and
coaches for India and select international markets. In 2006, Tata Motors entered into joint
venture with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and
market the company's pickup vehicles in Thailand. The new plant of Tata Motors (Thailand)
has begun production of the Xenon pickup truck, with the Xenon having been launched in
Thailand in 2008.
Tata Motors is also expanding its international footprint, established through exports since
1961. The company's commercial and passenger vehicles are already being marketed in several
countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America.
It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia,
Senegal and South Africa.
The foundation of the company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in
India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a
new segment by launching the Tata Ace, India's first indigenously developed mini-truck.
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Mar. 2
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT and
transportation cost).
Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will set a
new benchmark among small cars. Its safety performance exceeds regulatory requirements in
India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in India
today. The lean design strategy has helped minimise weight, which helps maximise
performance per unit of energy consumed and delivers high fuel efficiency. The high fuel
efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry,
in keeping with its pioneering tradition, by unveiling its new range of world standard trucks
called Prima. In their power, speed, carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in the world in performance at a lower
life-cycle cost.
Tata Motors is equally focussed on environment-friendly technologies in emissions and

alternative fuels. It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.
10

Through its subsidiaries, the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
Mar. 2
supply chain activities, machine tools and factory automation solutions, high-precision tooling
and plastic and electronic components for automotive and computer applications, and
automotive retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives
of more than a million citizens. The company's support on education and employability is
focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, our intervention is in both preventive and
curative health care. The goal of environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last but not the least, by introducing
appropriate technologies in our vehicles and operations for constantly enhancing environment
care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
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Mar. 2
ABOUT TATA NANO
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Mar. 2
13
(b)SPECIFICATION OF TATA NANO

DIMENSIONS
Mar. 2
3099 mm
Overall Length
Overall Width 1495 mm (& 1620 mm with ORVM)
Overall Height 1652 mm
Wheelbase 2230 mm
Ground clearance 180 mm

DIMENSIO
NS
Min. Turning Circle
4m
Radius
Seating Capacity 4 persons
Fuel Tank Capacity 15 Liters
Kerb Weight
Nano 600 kg
Nano CX 615 kg
Nano LX 635 kg
Payload 300 kg
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ENGINE & TRANSMISSION
Mar. 2
(c)FEATURES OF TATA NANO
EXTERIOR
DETAILS NANO NANO CX NANO LX
Sunshine Yellow, Champange

Ivory White, Racing Red, Ivory White, Racing Red, Summer Blue,
Colors
Summer Blue Champange Gold, Lunar Silver
Gold, Lunar Silver
Body Color Bumpers - - Yes
Body Color Door Handles - - Yes
ORVM (Driver Side) Black Black Body Colored
Front Fog Lamps - - Yes
Rear Fog Lamps - - Yes
Wheel Covers Style-in-Steel Wheels Style-in-Steel Wheels Half Wheel Covers
Clear lens Headlamp & Taillamp Yes Yes Yes
Tinted Glasses - Yes Yes
Aerokit Airdam Airdam Airdam
Front Wiper & Washer 2 speed 2 speed 2 speed + Intermittent
Front Windshield Plain Tinted Tinted with Top Blue Band
Roof Beading - - Yes
Spoiler - - Yes
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Mar. 2
INTERIOR
Seat Upholstery Single Tone Vinyl Dual Tone Vinyl Complete Fabric
Door Trim Single Tone Vinyl Dual Tone Vinyl Vinyl with Fabric insert
Roof Lining Jute Based Polyester Fabric Polyester Fabric
Rear Parcel Shelf - Yes Yes
A & B Pillar Trims - Yes Yes
Electronic Trip Meter - - Yes
Instrument Cluster Illumination Yes Yes Yes
Fuel Gauge Digital Digital Digital
Front Room Lamp Yes Yes Yes
Steering Wheel 2 Spoke 2 Spoke 3 Spoke
COMFORT & CONVENIENCE
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AC with Heater - Yes Yes

Mar. 2
Front Power Windows - - Yes
Cup Holders in Front Console - - Yes
IRVM Plain Plain Antiglare
High End Console with
Gear Shift Console Basic Basic Provision for Mobile Charger/
Cigarrette lighter
Magazine and coin Holder on all doors - - Moulded Door Trim
Map pocket Integral with Driver & Codriver

Fabric pocket Fabric pocket Separate plastic trim
Seat
Front Seat Headrests Integrated Integrated Integrated
Rear Seat Headrests - Integrated (With Nap Rests) Integrated (With Nap Rests)
Sunvisor on Driver & Passenger side Yes Yes Yes
Driver Seat with Slider Yes Yes (With Recliner) Yes (With Recliner)
Passenger side Seat with Slider - Yes (With Recliner) Yes (With Recliner)
Front assist grips Yes Yes Yes
Rear assist grips NA NA NA
Integral feature through

Integral feature through innovative
innovative suspension
Head lamp levelling innovative suspension
suspension design
design
design
17

Low Fuel Warning Lamp Yes Yes Yes
Mar. 2
Rear Seat Folding Yes Yes Yes
SAFETY & SECURITY
Central Locking - - Yes
Center High Mount Stop Lamp Yes Yes Yes
Laminated Windshield Yes Yes Yes
Door Lock on Driver Side Yes Yes Yes
Door Lock on Passenger Side - - Yes
Booster assisted brakes - Yes Yes
Front & Rear Seat Belts Yes Yes Yes
Additional body reinforcements Yes Yes Yes

Integral feature through Integral feature through innovative door system
Intrusion beam innovative door system
innovative door system design design
design
Radial Tubeless tyres Yes Yes Yes
(d)COMPARISION OF TATA NANO

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Mar. 2
Santro
Details Nano CX Nano LX Maruti 800 Std Maruti 800 AC Alto Alto LX Alto Lxi Santro Non-AC Santro GL
GLS
Airconditioner - - -
Heater - - -
Front Power Windows - - - - - - - - - -
Central Locking - - - - - - - -
Body Colored Bumpers - - - - - - - -
Handles & ORVM - - - - - - - - -
Front & Rear Fog

Lamps
- - - - - - - - -
Tinted Glasses - - -
Digital Fuel Gauge* - - - - - - - -
Tubeless Tyres* - - - - - - - -
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Mar. 2
OVERALL COMPARISON
Details Nano Maruti 800 Alto Santro
Base Model Nano M800 Std Alto Santro Non-AC
Plus Air Conditioner Nano CX/LX M800 AC Alto LX/LXi Santro GL/GLS
Plus Heater Nano CX/LX Feature Not Available Alto LX/LXi Santro GL/GLS
Plus Tinted Glasses Nano CX/LX M800 AC Alto LX/LXi Santro GL/GLS
Fully Loaded Nano LX M800 AC Alto LXi Santro GLS
Plus Front Power Windows Nano LX Feature Not Available Feature Not Available Santro GLS
Santro GLS
Plus Body Colored Bumper, Door Handle
Nano LX Feature Not Available Feature Not Available (Only Body Colored
& ORVM
Bumper)
Plus Central Locking Nano LX Feature Not Available Feature Not Available Santro GLS
Plus Front & Rear Fog Lamp Nano LX Feature Not Available Feature Not Available Feature Not Available
DIMENSION COMPARISON
20

Details Nano Maruti 800 Alto
Overall Length (mm) 3099 mm 3335 mm 3495 mm

Mar. 2
Overall Width (mm) 1495 mm (1620 mm with ORVM) 1440 mm 1475 mm
Overall Height (mm) 1652 mm 1405 mm 1460 mm
Wheelbase (mm) 2230 mm 2175 mm 2360 mm
Ground Clearance (mm) 180 mm 170 mm 160 mm
Min. Turning Radius 4m 4.4 m 4.6 m
Seating capacity 4 persons 4 persons 5 persons
Kerb Weight 600 kg (Nano) 650 kg (Std) 720 kg (Alto)
615 kg (Nano CX) 655 kg (AC) 735 kg (Alto LX/LXi)
635 kg (Nano LX)
ENGINE COMPARISON
Details Nano Maruti 800 Alto
Displacement (cc) 624 cc 796 cc 796 cc
Maximum Power 35 PS @ 5250 +/- 250 rpm 37.3 PS @ 5000 rpm 47 PS @ 6200 rpm
Maximum Torque 48 NM @ 3000 +/- 500 rpm 59 Nm @ 2500 rpm 62 Nm @ 3000 rpm
TATA NANO MODELS
21
Mar. 2
TATA NANO STANDARD AND CX
22
Mar. 2
23
Mar. 2
CHAPTER 2
OBJECTIVES & RESEARCH
METHODOLOGY
24
Mar. 2
Research methodology
1. Problem statement: objectives and the purpose of the study:

✔ To understand the customer satisfaction levels of tatanano
✔ Features and the benefits of the car adda to high customer satisfaction
✔ Features and the benefits of the car that is not considered as important factor for customer
satisfaction
✔ To know people perception towards nano available in the market.
Significance of the study:

✔ To gain insights wheather the product delivers what it promises
1. Variables under study:
✔ Dependent variable: customer satisfaction
✔ Independent variables: Price ,After Sales Service,
Availability of Service Stations, Maintenance Cost, Comfort, Design and Dimensions, Fuel
Options, Safety Features, Luggage Space, Mileage, Engine Performance, Leg Space, Warranty,
Engine Sound ,Resale Value, Accessories Quality,Individual Satisfaction Level
1. Research hypothesis:
Customer Satisfaction of Tata Nano Customers:
H1: Customers satisfied with Tata Nano
Factors Influencing Customer Satisfaction:
H1: Price plays an important role in customer satisfaction (CS)
H2: There is a strong relationship between CS and after sales
service
25

H3: There is a strong relationship between CS and availability of
service stations
Mar. 2
H4: There is a strong relationship between CS and maintenance

cost
H5: There is a strong relationship between CS and comfort
H6: There is a strong relationship between CS and Fuel Options
H7: There is a strong relationship between CS and Safety
Features
H8: There is a strong relationship between CS and Luggage
Space
H9: There is a strong relationship between CS and mileageq
H10: There is a strong relationship between CS and Engine Performance
H11: There is a strong relationship between CS and warranty
H12 : There is a strong relationship between CS and leg space
H13: There is a strong relationship between CS and Engine Sound
H14: There is a strong relationship between CS and Re-sale Value
H15: There is a strong relationship between CS and Accessory Quality
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2. Research design:
Mar. 2
Research Classification: Descriptive

Data Collection Technique: Primary Research
Population: All Tata Nano Users in Bhubaneswar
Sample Size: 20
Sampling Method: Random Convenient
Sampling
Data Collection Tool: Structured Questionnaire (17)
LIMITATION OF STUDY
1. An underlying assumption for the entire project is that the details and the feedback received
from the population is true.
2. It was difficult to find respondents as they were busy in their schedule, and collection of data
was very difficult. Therefore, the study had to be carried out based on the availability of
respondents.
3. Some of the respondents were not ready to fill the questionnaires and some of them were not
ready to come out openly.
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Mar. 2
CHAPTER 3
LITERATURE REVIEW
28
Literature review
Mar. 2
1.CONSUMER RESEARCH IN DIFFERENT DISCIPLINES:

A considerable body of literature in a range of different discip lines exists on consumption,
consumer behaviour, and consumer decision-making process. Research in economics,
business, marketing, psychology and sociology domains studies consumer behaviour from
different theoretical premises: “for economists, consumption is used to produce utility; for
sociologists, it is a means of stratification; for anthropologists – a matter of ritual and symbol; for
psychologists – the means to satisfy or express physiological and emotional needs; and for
business, it is a way of making money”(Fine 1997). For more than a decade now, a range of
studies that address environmentally sound consumer
behaviour, e.g. car use, waste sorting, minimisation and recycling practices,
have been conducted. However, few studies evaluated consumer acceptance of the PSS
concept – a consumption based on non-ownership of physical products, see, for
example, studies on car sharing schemes (Schrader 1999; Meijkamp 2000), ski rental and
washing services (Hirschl,Konrad et al. 2001).
One reason explaining the lack of studies in the area could be that, there are still not many
PSS schemes in place to serve as test grounds. Another reason could be uniformity of research
focus. Most of consumer research focused on adopter categories, habits, attitudes and intentions,
rather than on actually measuring the satisfaction level with the service. The reason is probably
that PSS ideas have been promoted by researchers from the environmental management,
marketing, design, and engineering fields, and to a lesser extent by sociologists, who hold the
banner of research in customer satisfaction.
2. CONSUMER SATISFACTION PROCESS :
The paramount goal of marketing is to understand the consumer and to influence buying
behaviour. One of the main perspectives of the consume r behavior research analyses buying
behaviour from the so-called “information processing perspective" (Holbrook and Hirschman
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1982). According to the model, customer decision-making process comprises a needsatisfying
behaviour and a wide range of motivating and influencing factors. The process can
Mar. 2
be depicted in the following steps (Engel, Blackwell et al. 1995):
✔ Need recognition – realisation of the difference between desired

situation and the current situation that serves as a trigger for the
entire consumption process.
✔ Search for information - search for data relevant for the purchasing
decision, both from
internal sources (one's memory) and/or external sources.
✔ Pre-purchase alternative evaluation - assessment of available choices
that can fulfil the
realised need by evaluating benefits they may deliver and reduction of
the number of options to the one (or several) preferred.
✔ Purchase - acquirement of the chosen option of product or service.
✔ Consumption - utilisation of the procured option.
✔ Post-purchase alternative re-evaluation - assessment of whether or not
and to what degree the consumption of the alternative produced
satisfaction.
✔ Divestment - disposal of the unconsumed product or its remnants.
Besides the information processing perspective, marketing analyses
consumer behaviour by employing a psychologically grounded concept
of attitudes (Balderjahn 1988; Ronis, Yates et al. 1989; Luzar and
Cosse 1998). It is consumer attitudes that are usually named as the
major factor in shaping consumer behaviour and a wealth of studies is
available on the topic of how attitudes can predict behaviour.
3. WHY CUSTOMER SATISFACTION IS SO IMPORTANT :
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It seems self evident that companies should try to satisfy their customers. Satisfied customers
usually return and buy more, they tell other people about their experiences, and they may well
Mar. 2
pay a premium for the privilege of doing business with a supplier they trust. Statistics are
bandied around that suggest that the cost of keeping a customer is only one tenth of winning a
new one. Therefore, when we win a customer, we should hang on to them. Why is it that we can
think of more examples of companies failing to satisfy us rather than when we have been
satisfied? There could be a number of reasons for this. When we buy a product or service, we
expect it to be right. We don’t jump up and down with glee saying “isn’t it wonderful, it actually
worked”. That is what we paid our money for. Add to this our world of ever exacting standards.
We now have products available to us that would astound our great grandparents and yet we
quickly become used to them. The bar is getting higher and higher. At the same time our lives
are ever more complicated with higher stress levels. Delighting customers and achieving high
customer satisfaction scores in this environment is ever more difficult. And even if your
customers are completely satisfied with your product or service, significant chunks of them could
leave you and start doing business with your competition. A market trader has a continuous
finger on the pulse of customer satisfaction. Direct contact with customers indicates what he is
doing right or where he is going wrong. Such informal feedback is valuable in any company but
hard to formalise and control in anything much larger than a corner shop. For this reason surveys
are necessary to measure and track customer satisfaction. Developing a customer satisfaction
programme is not just about carrying out a survey. Surveys provide the reading that shows where
attention is required but in many respects, this is the easy part. Very often, major long lasting
improvements need a fundamental transformation in the company, probably involving training of
the staff, possibly involving cultural change. The result should be financially beneficial with less
customer churn, higher market shares, premium prices, stronger brands and reputation, and
happier staff. However, there is a price to pay for these improvements. Costs will be incurred in
the market research survey. Time will be spent working out an action plan. Training may well be
31

required to improve the customer service. The implications of customer satisfaction surveys go
far beyond the survey itself and will only be successful if fully supported by the echelons of
Mar. 2
senior management.
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Mar. 2
CHAPTER 4
DATA ANALYSIS
33

Why you bought NANO car?
Mar. 2
 70% people bought nano car because of cheap car
 10% people bought nano car because of small car
 5% people bought nano only for easy to drive
 5% people bought nano only availability of 0% finance
 0% people bought nano because of easy to parking
 5% peole bought nano because of more mileage
 5% people bought nao due to more exciting colours
 0% for sporty look
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Mar. 2
2.Instead of purchasing a bike, will you prefer to go for NANO?
 40% yes
 50% no
 10% can’t say
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Mar. 2
BASIS STRONGL SATISFIED NEUTRAL DISSATISFIE STRONGLY

Y D DISSATISFIE
SATISFAC D
TIED
ENGINE POWER 40% 40% 10% 10%
RPM 50% 40% 10%
A/C 60% 40%
SAFETY 20% 40% 20% 20%
BODY COLOUR 80% 20%
NOISE OF THE CAR 50% 10% 40%
GROUND LEARENCE 80% 20%
CAR SPACE 70% 20% 10%
INTERIOR 20% 20% 40% 10% 10%
ENGINE POWER
36
Mar. 2
SATISFIED
NEUTRAL
DISSATISFI
ED
STRONGLY
DISSATISFI
ED
RPM
SATISFIED
NEUTRAL
DISSATISFIED
A/C
37
Mar. 2
NEUTRAL
DISSATISFIED
SAFETY
Slice 1
SATISFIED
NEUTRAL
DISSATISFIED
STRONGLY
DISSATISFIED
BODY COLOUR
38

80%
70%
Mar. 2
60%
50%
40%
30% BODYCOLOUR
20%
10%
0%
STRONGLY SATISFIED
SATISFIED
NOISE OF THE CAR
SATISFIED
NEUTRAL
DISSATISFIED
4.Which feature of NANO attracts you more, that inspires you to go for NANO?
 PRICE 60%
 DESIGN 10%
 MILEAGE 20%
 INTERIOR 0%
 ALLOF THE ABOVE 5%
 CAN’T SAY 5%
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70
Mar. 2
60
50
40
ATTRACT
30
20
10
0
PRICE DESIGN MILEAGE INTERIOR ALLABOVE CAN'TSAY
5.Which colour of NANO would you prefer? ( Pls tick)
a. Blue (10%)
b. Red (20%)
c. White (20%)
d. Yellow (40%)
e. Silver (10%)
40
35
30
25
20
COLOUR
15
10
5
0
BLUE RED WHITE YELLOW SILVER
6.Do you think NANO is the people’s car?
a. Yes (20%)
b. No (60%)
c. Can’t say (10%)
40

60
Mar. 2
50
40
30
PEOPLECAR
20
10
0
YES NO CAN'TSAY
7.Which small car would you prefer to buy?
a. Tata NANO (10%)
b. Maruti 800 (0%)
c. SNTRO (30%)
d. INDICA (20%)
e. ALTO (30%)
f. Beat (10%)
30
25
20
15
SMALLCAR
10
5
0
NANO MARUTI 800 SANTRO INDICA ALTO BEAT
8.How long can you wait for NANO?

41

a. 1-2 months (40%)
Mar. 2
b. 2-4 months (0%)
c. 4-6 months (20%)
d. Can’t wait (40%)
9.If the prices of NANO increases, would you still purchase it?
a. Yes (30%)
b. No (50%)
YES
NO
CAN'TSAY
10.Will you recommend NANO to your friends and relatives?
a. Yes (20%)
b. No (70%)
42
Mar. 2
YES
NO
CAN'TSAY
11.How will you feel if NANO is used as a taxi?
a. Embarrass (100%)
b. Don’t care (0%)
c. Can’t say (0%)
12..Will there be traffic problem with the introduction of NANO on Indian

roads?
a. Yes (0%)
b. No (100%)
c. Can’t say (0%)
13.Can you trust NANO for safety?
a. Yes (10%)
b. No (90%)
43

c. Can’t say (0%)
Mar. 2
44
Mar. 2
LIMITATIONS SUGGESTIONS &

BIBLOGRAPHY
45
Mar. 2
Limitations:-
1.price Tata Nano in some extent is high.
2. quality of interior in Tata Nano in some extent low.
3.length of the car also not satisfactory.
4.features comparison with other cars also not satisfactory.
5.power steering is not available in all models of Tata nano.
6.engine of Tata Nano is in back or not covered completely.
7.sound of the Tata Nano engine also loud in some extent.
8.power windows only front two doors only in Tata Nano LX.
9. The Tata Nano Engine is of 624cc so the mileage should be 30 plus.
10.front tiers are opposite to the back tiers front of 135/70,rear 155/65.
11. not compatible in long drive.
12.desk box should be in build in Tata Nano interior.
46
Mar. 2
SUGGESTION:-
1.Length of the Tata Nano car should increase from front.
2.Tata Nano should with some extra feature.
3. Tata Nano engine Sound should be reduce.
4.Price of Tata Nano should reduce in some extent to increase the sale.
5.A/c of Tata Nano should be more effective.
6.The Tata Nano Demand increased by some attractive offers and schemes.
7.front and rear tiers size should be same.
8.The window for boot space should be open from back.
47
Mar. 2
Bibliography:-
1. www.tatamotors.com
2. tatanano.inservices.tatamotors.com
3. www.gaadi .com
4. Field survey.
5. The Tata Nano brochure.
48
Mar. 2
QUESTIONNAIRE ON TATA NANO
1. What is the first thing that comes to your mind, when you think about NANO?
...........................................................................................................................
.........
……………………………………………………………………………………………….
……………………………………………………………………………………………….
2. Why you bought NANO car? ( Pls tick)
a. cheap car (…………)
b. Small car (…………)
c. Easy to drive (…………)
d. Finance is available at 0% (…………)
e. Easy to parking (…………)
f. More mileage in petrol (…………)
g. More colour (…………)
h. Sporty look (…………)
3. Instead of purchasing a bike, will you prefer to go for NANO? ( Pls tick)
49

a. Yes (…………)
Mar. 2
b. No (…………)
c. can’t say (…………)
4. pls tick
BASIS STRONGL SATISFIED NEUTRAL DISSATISFIE STRONGLY

Y D DISSATISFIE
SATISFAC D
TIED
ENGINE POWER
RPM
A/C
SAFETY
BODY COLOUR
NOISE OF THE CAR
GROUND LEARENCE
CAR SPACE
INTERIOR
5. Which feature of NANO attracts you more, that inspires you to go for NANO? (
Pls tick)
a. Price (…………)
b. Design (…………)
c. Mileage (…………)
d. Interior space (…………)
e. All of the above (…………)
50

f. Can’t say (…………)
Mar. 2
6. Which colour of NANO would you prefer? ( Pls tick)
f. Blue (…………)
g. Red (…………)
h. White (…………)
i. Yellow (…………)
j. Silver (…………)
k. Other, specify........................
7. Do you think NANO is the people’s car? ( Pls tick)
d. Yes (…………)
e. No (…………)
8. Which small car would you prefer to buy? ( Pls tick)
g. Tata NANO (…………)
h. Maruti 800 (…………)
i. SNTRO (…………)
j. INDICA (…………)
k. ALTO (…………)
l. Beat (…………)
51
Mar. 2
9. How long can you wait for NANO? ( Pls tick)
e. 1-2 months (…………)
f. 2-4 months (…………)
g. 4-6 months (…………)
h. Can’t wait (…………)
10. If the prices of NANO increases, would you still purchase it? ( Pls tick)
d. Yes (…………)
e. No (…………)
11. Will you recommend NANO to your friends and relatives? ( Pls tick)
d. Yes (…………)
e. No (…………)
12. How will you feel if NANO is used as a taxi? ( Pls tick)
d. Embarrass (…………)
e. Don’t care (…………)
52

Mar. 2
13. .Will there be traffic problem with the introduction of NANO on Indian
roads? ( Pls tick)
d. Yes (…………)
e. No (…………)
14. Can you trust NANO for safety? ( Pls tick)
d. Yes (…………)
e. No (…………)
15. Give your suggestion to improve nano car?
.........................................................................................................................
.............
………………………………………………………………………………………………………
………………………..
………………………………………………………………………………………………………
…………………………
53
Mar. 2
(SIGNATURE)
54

"The People's Car From Tata Motors": Customer Behaviour Towards Nano Car

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CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

‘Customer behavior towards Tata NANO

Submitted in partial fulfillment of the requirements of

Master of Business Administration (MBA)

Kurukshetra University, Kurukshetra

Under the Guidance of : Submitted By:

Name: ms. Gayatri arya Sahil singla

Designation MBA: 4th Semester

Roll. No. mba 09/50

Department of Management Studies

NC College of Engineering Israna, Panipat

SESSION 2009 – 2011

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

2 OBJECTIVES & RESEARCH 24

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

Tata Motors is equally focussed on environment-friendly technologies in emissions and

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

ABOUT TATA NANO

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

(b)SPECIFICATION OF TATA NANO

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

Overall Width 1495 mm (& 1620 mm with ORVM)

Overall Height 1652 mm

Ground clearance 180 mm

Seating Capacity 4 persons

Fuel Tank Capacity 15 Liters

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

(c)FEATURES OF TATA NANO

DETAILS NANO NANO CX NANO LX

Sunshine Yellow, Champange

Body Color Bumpers - - Yes

Body Color Door Handles - - Yes

ORVM (Driver Side) Black Black Body Colored

Front Fog Lamps - - Yes

Rear Fog Lamps - - Yes

Wheel Covers Style-in-Steel Wheels Style-in-Steel Wheels Half Wheel Covers

Clear lens Headlamp & Taillamp Yes Yes Yes

Tinted Glasses - Yes Yes

Aerokit Airdam Airdam Airdam

Front Wiper & Washer 2 speed 2 speed 2 speed + Intermittent

Front Windshield Plain Tinted Tinted with Top Blue Band

Roof Beading - - Yes

CUSTOMER BEHAVIOUR TOWARDS NANO CAR

DETAILS NANO NANO CX NANO LX

Roof Lining Jute Based Polyester Fabric Polyester Fabric

Rear Parcel Shelf - Yes Yes

A & B Pillar Trims - Yes Yes

Electronic Trip Meter - - Yes

Instrument Cluster Illumination Yes Yes Yes

Fuel Gauge Digital Digital Digital

Front Room Lamp Yes Yes Yes

Steering Wheel 2 Spoke 2 Spoke 3 Spoke

COMFORT & CONVENIENCE