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CHAPTER ONE
INTRODUCTION

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INTRODUCTION
Introduction to the Study
Consumer Behaviour is the study of individuals, groups, or organizations and the
processes they use to select, secure, use, and dispose of products, services, experiences, or
ideas to satisfy needs and the impacts that these processes have on the consumer and society.
It blends elements from psychology, sociology, social anthropology, marketing and
economics. It attempts to understand the decision-making processes of buyers, both
individually and in groups such as how emotions affect buying behaviour. It studies
characteristics of individual consumers such as demographics and behavioural variables in an
attempt to understand people's wants. It also tries to assess influences on the consumer from
groups such as family, friends, sports, reference groups, and society in general.
The personal consumer is the individual who buys good and services for his own use or for
his household usage. They buy goods for ultimate consumption; hence, they are called as
end users, or Ultimate users. The year 2000s have borne witness to spectacular shifts in
the marketplace activated by prickly changes in the lifestyle patterns of the past and present
and the essential revolution in the communication technology. Time tested concepts on brand
loyalty and mass marketing, are being turned on their heads as they fail to gauge the
behaviour of new generation customers. The behaviour is characterized by the exceptionality
of individual prospects, the preference for numerous options, inclination to abandon brand
loyalty and switch to competition brands that give higher apparent value. The new breed is
even willing to import to satisfy specific requirement. It is complicated to categorize this
generation by conservative demographic factors and unless their contemplation process and
buying behaviour are fully understood, decisions on product designs and packaging, branding
and distribution channels are likely to be misplaced.
Customer behaviour study is based on consumer buying behaviour, with the customer
playing the three distinct roles of user, payer and buyer. Research has shown that consumer
behaviour is difficult to predict, even for experts in the field. Relationship marketing is an
influential asset for customer behaviour analysis as it has a keen interest in the re-discovery of
the true meaning of marketing through the re-affirmation of the importance of the customer or
buyer.

A greater importance is also placed on consumer retention, customer relationship

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

be categorized into social choice and welfare functions.
Buying Behaviour; Purchase decision making pattern that is a complex amalgam of needs and
desires, and is influenced by factors such as the consumer's societal role (parent, spouse,

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worker,) etc. social and cultural environment and norms, aspirations and inhibitions.
Consumer buyer behaviour is considered to be an inseparable part of marketing and Kotler
and Keller (2011) state that consumer buying behaviour is the study of the ways of buying
and disposing of goods, services, ideas or experiences by the individuals, groups and
organizations in order to satisfy their needs and wants.
Buyer behaviour has been defined as a process, which through inputs and their use though
process and actions leads to satisfaction of needs and wants (Enis, 1974, p.228). Consumer
buying behaviour has numerous factors as a part of it which are believed to have some level
of effect on the purchasing decisions of the customers.
Alternatively, consumer buying behaviour refers to the buying behaviour of final consumers,
both individuals and households, who buy goods and services for personal consumption
(Kumar, 2010, p.218). From marketers point of view issues specific aspects of consumer
behaviour that need to be studied include the reasons behind consumers making purchases,
specific factors influencing the patterns of consumer purchases, analysis of changing factors
within the society and others.
Customer satisfaction, a business term is a measure of how products and services supplied by
a company meet or surpass customer expectation. It is seen as a key performance indicator
within business and is part of the four perspectives of a Balanced Scorecard. In a competitive
marketplace where businesses compete for customers, customer satisfaction is seen as a key
differentiator and increasingly has become a key element of business strategy.

Significance of the Study

This study has an overview of Go Green BOV company or organization. The study
gain knowledge about the company, focusing on overall industry and on the customer buying
behavior.

Literature Review
Kotler and Keller (2011) highlight the importance of understanding consumer buying
behaviour and the ways how the customers choose their products and services can be
extremely important for manufacturers as well as service providers as this provides them with
competitive advantage over its competitors in several aspects. For example, they may use the
knowledge obtained through studying the consumer buying behaviour to set their strategies

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towards offering the right products and services to the right audience of customers reflecting
their needs and wants effectively.
Another valuable argument is provided by Egen (2007) on the importance of understanding
the consumer behaviour. According to the author, better awareness of consumer buying
behaviour is a positive contribution to the countrys economic state. The author further argues
that the quality of goods and products are exceptionally good in countries where buying
behaviour of consumers is well understood. This in turn increased the competitiveness of the
products and services in international market increasing the export potential of the country.
Meanwhile, high quality of domestic products and services lead to sophisticated domestic
customers base (Blackwell et al, 2006).
Kotler (2005) it is essential to mention that despite the great efforts to learn and understand
the buying behaviour of consumers, it is very difficult to identify the exact reasons why a
consumer purchases and prefers one product or service over another one. This is because
consumers sometimes make purchasing decisions based on their emotional beliefs which they
even themselves are not well aware of.
The assumption that people have series of needs which lead to drive state. Faison and
Edmund (1977)
Those acts of individuals directly involved in obtaining, using, and disposing of economic
goods and services, including the decision processes that precede and determine these acts
Engel, (1986)
Consumer behaviour is the study of how people buy, what they buy, when they
buy and why they buy. Kotler (1994)
Consumer behaviour is the study of the processes involved when individuals or groups
select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy needs
and desires Solomon (1995)
the behaviour that consumers display in searching for, purchasing, using, evaluating, and
disposing of products and services that they expect will satisfy their needs Schiffman (2007)
One of the current fundamental assumptions in consumer behaviour research is that
individuals often purchase products for their subjectively perceived values rather than their
primary functions (Stvkov, Stejskal & Toufarova, 2008). This does not mean that the
products basic functions are not important, but that the contemporary role of a product is
more than its basic use-value (Solomon, 2004). Frequently, consumers do not rate products

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according to their core attributes (i.e., the primary utility they provide) but, above all,
according to the so-called real product (i.e., a particular products qualities) and the extended
product, which represents the set of intangible factors that confer a desired perceived
advantage on the consumer including image, consultancy, and after-sale service (Foret &
Prochzka, 2007).

Acebron et al (2000). The aim of the study was to analyze the impact of previous experience
on buying behaviour. In their studies the authors used structural equation model in order to
identify the relationship between the habits and previous experience on the consumer buying
decision. Their findings show that personal habits and previous experience on of the
consumers have a direct impact on the consumers purchase decision. They also found that
the image of the product has a crucial impact on the purchasing decision of the consumer and
further recommended that the product image should continuously be improved in order to
encourage the consumers towards purchasing.
Lee (2005) carried out study to learn the five stages of consumer decision making process in
the example of China. The researcher focuses on the facts that affect the consumer decision
making process on purchasing, in particular demographic effects such as gender, education,
income and marital status. The author employed questionnaire method in order to reach the
objectives of the research. Analysis of five stages of consumer decision making process
indicate that impact of family members on the consumer decision making process of
purchasing was significant.
One of the common models of consumer decision making process has been offered by
Blackwell et al (2006). According to him, the five stages of consumer decision making
process are followings: problem/need recognition, information search, evaluation of
alternatives, purchase decision made and post-purchase evaluation.
Each stage is then defined by a number of researchers varying slightly but leading to a
common view about what each stage involves. For example, according to Bruner (1993) first
stage, need recognition occurs when an individual recognizes the difference between what
they have and what they want/need to have. This view is also supported by Neal and Questel
(2006) stating that need recognition occurs due to several factors and circumstances such as
personal, professional and lifestyle which in turn lead to formation of idea of purchasing.
In the next stage, consumer searches information related to desired product or service
(Schiffman and Kanuk, 2007). Information search process can be internal and external. While

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internal search refers to the process where consumers rely on their personal experiences and
believes, external search involves wide search of information which includes addressing the
media and advertising or feedbacks from other people (Rose and Samouel, 2009).
Once the relevant information about the product or service is obtained the next stage involves
analyzing the alternatives. Kotler and Keller (2005) consider this stage as one of the important
stages as the consumer considers all the types and alternatives taking into account the factors
such as size, quality and also price.
Backhaus et al (2007) suggested that purchase decision is one of the important stages as this
stage refers to occurrence of transaction. In other words, once the consumer recognized the
need, searched for relevant information and considered the alternatives he/she makes decision
whether or not to make the decision. Purchasing decision can further be divided into planned
purchase, partially purchase or impulse purchase as stated by Kacen (2002) which will be
discussed further in detail in the next chapters.
Finally, post-purchase decision involves experience of the consumer about their purchase.
Although the importance of this stage is not highlighted by many authors Neal et al (2004)
argues that this is perhaps one of the most important stages in the consumer decision making
process as it directly affects the consumers purchases of the same product or service from the
same supplier in the future.
It is important to note that The Five Stage Model is not the only model related to consumer
decision-making, and there are also a range of competing models that include StimulusOrganism-Response Model of Decision Making developed by Hebb in 1950s, Prescriptive
Cognitive Models, The Theory of Trying (Bagozzi and Warsaw, 1990), Model of Goal
Directed Behaviour (Perugini and Bagozzi, 2001) and others.
Focus of the Problem
The study was done on consumer buying behavior in electric two wheelers. The focus
of the study was mainly to understand the factors influencing the customers while buying
electric two wheelers and to identify the different variables in comparison to non-electric two
wheelers. It was also in consideration to know the problems faced by customers who are
using electric two wheelers.
Objectives of the Study

To identify the factors influencing the customers while buying electric two wheelers

Proper understanding of major problems faced by electric two wheeler users.

To suggest ways to improve level of customer satisfaction

Scope of Study
The Study facilitated to acquaint about the customers buying behaviour on electric
two wheelers and to know about the customers overall experience in using electric two
wheelers which would help the company to improvise themselves.

Research methodology
Research Methodology deals with the method of study i.e. how the study was carried
out and what were the various techniques used. It is a investigation or enquiry in a systematic
manner in order of find solution to problem in research. It consists of defining and redefining
problems, collecting and evaluating data, making deduction and reaching calculation,
formulating suggested solution etc.
Research Design
Research design is a conceptual structure with in which research would be conducted.
Research design involves the following considerations:

Means of obtaining the information.

Availability & skills of the researcher & his staff.

Explanation of the way in which selected means of obtaining information will be

organized.

Time availability for research.

The cost factor relating to research

Sampling Design
It includes size of sample & the technique that we used for selecting the different
items from the sample. A sampling design is a definite plan for obtaining a sample from a
given population. It refers to the technique that the researcher adopts in selecting items for the
sample. It should be ensured in the sampling process itself that the sample selected is
representative of the population

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Sample size - By sample size we mean that the number of people to be selected from the
population to make a sample. A sample size should be sufficient enough that can serve our
purpose. It should have Efficiency, Flexibility, and Reliability. My sample size is of 100
customers of Go Green BOV.
Sample unit - Sample unit is individual customers of the company whose buying behavior has
to be examined.
Sample technique- This is the type of technique that one uses to select the items for the
sample. The sampling method that I have used is convenient sampling, which is a type of
Non- Probabilistic sampling.
Collection of Data
Data collection includes the type of data & the source of data that we used while
doing a project. The data is collected from both primary and secondary sources
Primary Data: Primary data is the data which is new .We use the primary source to
collect the primary data. Primary source include interviewing method. As a primary Source of
data I have filled the questionnaires from different customer who have purchased electric two
wheelers form Go Green Bov.
Questionnaire: A questionnaire is prepared to examine the buying behavior and to
identify factors which influences consumer buying behavior of electric two wheelers. The
language of questionnaire should be so simple & easy so that everyone can answer easily.
These questions has helped me to study the Consumers Buying Behavior
Secondary Data: The data which is already in existence is known as secondary data.
Secondary sources include websites, brochures of the respective companies, various papers,
and magazines published from time to time. Historical documents and other sources of
published information.
The four methods of secondary data collection are as follows:
1) Internet search, using online resources to gather data for research purposes. This method is
not usually very reliable and requires appropriate citation and critical analysis for findings.
2) Library search and indexing, this technique requires to go through written texts that have
already done similar work and utilizing their researches for your dissertations.
3) Data collection organizations, for example Gallup and AC Nielsen conduct researches on a
recurrent basis ranging in a wide array of topics.

4) News Papers and Magazines, journals and other similar periodicals

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Limitations of the Study
Though the present study aimed to achieve the above- mentioned objectives in full
earnest and accuracy, it was hampered due to certain limitations. Some of the limitations of
this study may be summarized as follows:

The time constraint faced in the project might have affected the comprehensiveness of
its finding

The sample size was small and hence the results can have a degree of variation.

The response of the customers in giving information was lukewarm.

Hesitance from authorities to share the internal information.

Questionnaire is subjected to errors.

Getting accurate responses from the respondents due to their inherent problems were
difficult. They were partial, and refused to cooperate.

Since we did not had the privilege to work on a large scale, so many finding and
recommendations may not be as much in tune with their ground realities

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CHAPTER TWO
INDUSTRY, COMPANY AND PRODUCT
PROFILE

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INDIAN AUTOMOBILE INDUSTRY

History
In 1897, the first car ran on an Indian road. Through the 1930s, cars were only
imported, and in very small numbers. An embryonic automotive industry emerged in India in
the 1940s. Hindustan was launched in 1942, long-time competitor Premier in 1944, building
GM and Fiat products respectively. Mahindra & Mahindra was established by two brothers in
1945, and began assembly of Jeep CJ-3A utility vehicles. Following independence in 1947,
the Government of India and the private sector launched efforts to create an automotivecomponent manufacturing industry to supply to the automobile industry. In 1953, an import
substitution programme was launched, and the import of fully built-up cars began to be
restricted.
However, growth was relatively slow in the 1950s and 1960s, due to nationalisation
and the license raj, which hampered the Indian private sector. After 1970, with restrictions on
the import of vehicles set, the automotive industry started to grow; but the growth was mainly
driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item. In
the 1970s, price controls were finally lifted, inserting a competitive element into the
automobile market. However, by the 1980s, the automobile market was still dominated by
Hindustan and Premier, who sold superannuated products in fairly limited numbers. During
the eighties, a few competitors began to arrive on the scene.
In 1986, to promote the auto industry, the government established the Delhi Auto
Expo. The 1986 Expo was a showcase for how the Indian automotive industry was absorbing
new technologies, promoting indigenous research and development, and adapting these
technologies for the rugged conditions of India. The nine-day show was attended by then
Prime Minister Rajiv Gandhi.

Liberalisation And Its Effect On The Industry

Eventually multinational automakers, such as, Suzuki and Toyota of Japan and
Hyundai of South Korea, were allowed to invest in the Indian market, furthering the
establishment of an automotive industry in India. Maruti Suzuki was the first, and the most
successful of these new entries, and in part the result of government policies to promote the
automotive industry beginning in the 1980s. As India began to liberalise its automobile
market in 1991, a number of foreign firms also initiated joint ventures with existing Indian
companies. The variety of options available to the consumer began to multiply in the nineties,
whereas before there had usually only been one option in each price class. By 2000, there
were 12 large automotive companies in the Indian market, most of them offshoots of global
companies.
In 2000, in tune with international standards to reduce vehicular pollution, the central
government unveiled standards titled "India 2000", with later, upgraded guidelines to be
known as Bharat stages. These standards are quite similar to the stringent European standards,
and have been implemented in a phased manner, with the latest upgrade being implemented in

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13 cities and, later, in the rest of the nation. Delhi (NCR), Mumbai, Kolkata, Chennai,
Bangalore, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur and Agra are the
13 cities where Bharat Stage IV has been imposed while the rest of the nation is still under
Bharat Stage III.

Exports
Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and
neighbouring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe
(Hungary). After some growth in the mid-nineties, exports once again began to drop as the
outmoded platforms provided to Indian manufacturers by multinationals were not
competitive. This was not to last and today India manufactures low-priced cars for markets
across the globe. As of 18 March 2013, global brands such as Proton Holdings, PSA Group,
Kia, Mazda, Chrysler, Dodge and Geely Holding Group were shelving plans for India due to
the competitiveness of the market, as well as the global economic crisis.
India's automobile exports have grown consistently and reached $4.5 billion in 2009,
with the United Kingdom being India's largest export market, followed by Italy, Germany,
Netherlands, and South Africa.According to the New York Times, India's strong engineering
base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the
expansion of manufacturing facilities of several automobile companies like Hyundai, Nissan,
Toyota, Volkswagen, and Maruti Suzuki. In 2008, South Korean multinational Hyundai
Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000
vehicles manufactured in its India plant by 2011.Similarly, US automobile company, General
Motors announced its plans to export about 50,000 cars manufactured in India by 2011.
In September 2009, Ford Motors announced its plans to set up a plant in India with an
annual capacity of 250,000 cars, for US$500 million. The cars will be manufactured both for
the Indian market and for export. The company said that the plant was a part of its plan to
make India the hub for its global production business. Fiat Motors announced that it would
source more than US$1 billion worth auto components from India. In 2009 India (0.23m)
surpassed China (0.16m) as Asia's fourth largest exporter of cars after Japan (1.77m), Korea
(1.12m) and Thailand (0.26m) by allowing foreign carmakers 100% ownership of factories in
India, which China does not allow.
In recent years, India has emerged as a leading center for the manufacture of
small cars. Hyundai, the biggest exporter from the country, now ships more than 250,000 cars
annually from India. Apart from Maruti Exports' shipments to Suzuki's other markets, Maruti
Suzuki also manufactures small cars for Nissan, which sells them in Europe. Nissan will also
export small cars from its new Indian assembly line. Tata Motors exports its passenger
vehicles to Asian and African markets, and is preparing to sell electric cars in Europe in 2010.
The firm is planning to sell an electric version of its low-cost car the Tata Nano in Europe and
in the U.S. Mahindra & Mahindra is preparing to introduce its pickup trucks and small SUV
models in the U.S. market. Bajaj Auto is designing a low-cost car for Renault Nissan
Automotive India, which will market the product worldwide. Renault Nissan may also join
domestic commercial vehicle manufacturer Ashok Leyland in another small car project.
While the possibilities for the Indian automobile industry are impressive, there are challenges

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that could thwart future growth. Since the demand for automobiles in recent years is directly
linked to overall economic expansion and rising personal incomes, industry growth will slow
if the economy weakens.
Growth Drivers Of The Industry

Passenger vehicles are to increase at a CAGR of 16% between 2013-2020.

Two-wheelers and three-wheelers are projected to expand at a CAGR of 9%

between 2013-2020.

A growing working population and an expanding middle class are expected

to remain key demand drivers. GDP per capita has grown from USD 1,432.25
in 2010 to USD 1,500.76 in 2012, and is expected to reach USD 1,869.34 by
2018.

India has the worlds 12th largest number of high net worth individuals, with
a growth of 20.8%, the highest among the top 12 countries.

Increasing disposable incomes in the rural agri-sector.

The presence of a large pool of skilled and semi-skilled workers and a strong
educational system.

A large number of products are available to consumers across various

segments. With the entry of a number of foreign players and reduced overall
product lifecycle, quicker product launches have become the order of the day.

The availability of a variety of vehicle models meets diverse need and

preferences.

Easy finance schemes, owing to which the auto finance industry has grown at
the rate of 13% between 2008-13. Car finance penetration has increased from
68% to 70% between 2008-10 and between 70% to 72% in 2011-13.

Favourable government policies like lower excise duties, automotive mission

plans, the constitution of NATRiP etc.

Fdi Policy In Automobile Industry

100% FDI is allowed under the automatic route in the auto sector, subject to all the
applicable regulations and laws.The Foreign Direct Investment in Indian Automobile Industry
has opened up new avenues for the development of this important sector of Indian industries.
The liberalization of government policies regarding FDI in the automobile industry of India
has increased the scope of this industry. The first FDI player in the Indian automobile
industry was Suzuki. In 1980s this company entered into a joint venture with Maruti Udyog, a
state run enterprise. The then Indian government permitted this company to enter the Indian
automobile market in 1983.In 1991, the government of India liberalized its policies regarding
the automobile industry of India Foreign Direct Investment in the automotive industry of

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India was permitted. In 1993, FDI was also allowed in the passenger car segment of Indian
automobile industry
Electric Vehicle And Hybrid Vehicle Industry In India
During April 2012, the Indian government planned to unveil the road map for the
development of domestic electric and hybrid vehicles (xEV) in the country. A discussion
between the various stakeholders, including Government, industry, and academia, was
expected to take place during 2324 February. The final contours of the policy would have
been formed after this set of discussions. Ministries such as Petroleum, Finance, Road
Transport, and Power are involved in developing a broad framework for the sector. Along
with these ministries, auto industry executives, such as Anand Mahindra (Vice Chairman and
Managing Director, Mahindra & Mahindra) and Vikram Kirloskar (Vice-Chairman, Toyota
Kirloskar), were involved in this task. The Government has also proposed to set up a Rs 740
crore research and development fund for the sector in the 12th five-year plan during 2012-17.
The idea is to reduce the high cost of key imported components such as the battery and
electric motor, and to develop such capabilities locally.
The category of battery electric vehicles, along with extended-range electric vehicles,
attracts a disproportionate amount of media attention compared to the mild and full hybrids
that have been on the market for several years now. But the number of electric vehicles that
will actually be built between now and 2015 is a small fraction of the total projected for the
two hybrid types.
Pure battery electric vehicles, or BEVs, store energy in a lithium-ion battery pack
sized from 20 to 80 kilowatt-hours, powering one or more electric motors that provide torque
to the wheels. In dispensing with the combustion engine and its associated mechanical
drivetrain, BEVs radically reduce the complexity and parts count of a typical vehicle, while
offering designers new opportunities in both structure and packaging.
The typical range for first-generation B- and C-segment BEVs is likely to be roughly
100 miles, which raises fears of the dreaded range anxiety among buyers. Alleviating this
worry leads to a variation on the BEV, the extended-range electric vehicle, or E-REV.
The E-REV design gives range comparable to a combustion-engined car, which
BEVs simply cant do with todays battery technology. But the gain in range comes with a
cost: E-REVs carry the complexity and expense of a second powertrain the liquid-fuelled
generator set that may rarely, if ever, be used by drivers.

Factors Affecting The Market

As the global vehicle market has stabilised following the precipitous declines of 2008
and 2009, roll-outs of advanced technology vehicles have been delayed by some companies
(e.g. General Motors) but sped up by others (e.g. Nissan, most German makers).
There are four concerns that must be addressed in the public eye to enable the
widespread roll-out of electric-drive vehicles. They include concerns over adequate supplies
of electricity to recharge plug-in cars; analyses of the wells to wheels carbon impact of cars
powered largely or exclusively by electricity; the troubling question for vehicle makers of

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whether they are willing to see their core energy storage medium produced by an entirely
separate industry; and the emergence of lithium as a strategic commodity, along with the
associated geopolitics.

Electric Vehicle Market Forecast

The battle over market projections for battery-electric vehicles (BEVs), including
extended-range EVs (EREVs) over the next 10 years is marked by a fascinating blend of data,
assumptions, and quasi-religious beliefs.On one hand stands Nissan CEO Carlos Ghosn, who
says that BEVs and EREVs will make up 10% of global vehicle sales by 2020, or perhaps 8m
vehicles out of a total global production of 80m. Earlier, he said he expects the NissanRenault alliance to build as many as 500,000 electric vehicles alone by the end of 2012, when
five battery plants across the globe come on line. More recently, Nissan spokespeople have
ramped that back to a capacity of 550,000 units by 2016.
On the other hand are numerous industry analysts who believe that battery powered
vehicles will struggle even to reach beyond 1 or 2% of the global total in 2020.Putting on our
thickest future-vision spectacles, just-auto estimates that BEVs and EREVs (vehicles with
large battery packs) will take at best 3 to 5% of the market 10 years hence, in 2020.
In 2013-14, electric two-wheeler sales crashed to a mere 21,000 units from 100,000
two years ago. If that did not fully reflect the dismal show, consider this: As many as 960
distributors of e-bikes - nearly half the total number of dealers in the country in 2011-12 have shut shop in the past 24 months. Worse, 26 of the 35 major electric two-wheeler makers
during the peak sales period (between November 2010 and March 2012) are out of business
today, thanks to poor demand. Companies like Ultra Motors, BSA Motors and Luminous
Power Technologies winding down their businesses has also meant a loss of 10,000 direct and
indirect jobs.
The drive has not been any less bumpy for cars, either. Mahindra & Mahindra, which
bought Reva Electric four years ago to venture into the electric car segment under the
Mahindra Reva brand, had set a target of selling 500 units when it launched the Mahindra
e20. The company has managed to sell only 1,000 units of the electric car in the past 15
months. While the plan was to make the product available in eight cities, the company has not
been able to take it beyond its limited distribution network in Delhi, Mumbai, Bangalore and
Pune.

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National Electric Mobility Mission Plan
The government's inability to implement the ambitious National Electric Mobility
Mission Plan (NEMMP), unveiled in January last year by the then prime minister, Manmohan
Singh, is seen as a key reason for the failure of electric vehicles. Though the scheme was to
offer subsidies and create supporting infrastructure for e-vehicles, the plan has mostly
remained on papers.

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COMPANY PROFILE

Go GreenBOV is the leading manufacturer of Electric two wheeler and three

wheeler based out at Bangalore with headquarters in JP Nagar.Go GreenBOV was
started in 2007, with an aim to reduce carbon emission and give an eco-friendly
environment to the world. Customer base of the company is in entire south at present,
but looking for Pan India presence in near future. The parent company of Go
GreenBOV is ACTD .ACTD was born with a vision to revolutionize policies and
create innovative products for the improvement of the sector and the country. By
designing the electric 2 wheeler Go GreenBOV ACTD has provided the national
consumer base with a greener and energy efficient option.
Go GreenBOV electric two-wheelers are highly advanced with cruise control
technology, Theft braking system, Lock braking, International styling, Keyless entry,
No number plate, No licensee and a lot of other feature. Go Green BOV operates
throughout Karnataka with a very strong Dealership network. Apart from being light
on pocket and light on conscience GO Green BOV bikes are easy to use, lightweight
and maintenance free providing a stress free experience Its factory is located in Kolar
district and the warehouse is located in JP Nagar Bangalore. The production capacity
of Go Green BOV factory is around 800 to 900 bikes. Majority of the parts of Go
Green BOV bikes are imported from outside. The batteries are imported from Korea,
plastic parts, controllers, motor etc. are imported from China.
The major competitors of Go Green BOV are Hero electric, Romai, Amphere
etc.. The core competency of Go Green BOV is that it is the only electric bike in India
which gives a mileage of 100 km in a single charge. The cost of travelling 100 km in
a GoGreen Bike is Rs 10 only. The company also has a social presence in the form of
Facebook and twitter page. With zero emissions the vehicle provides a solution for a
better planet, because in the long run economic sustainability depends upon ecological
sustainability. Consumers have to spend zero on fuel/petrol which helps in immense
cost saving. Further the futuristic design of our models, adds a spark to the trendy
youth as well as the veterans. As an independent, neutral and professional
organization, Go GreenBOV is committed to working towards a future that can fulfil
the needs of both mankind and the environment in the long term. In the ever changing
markets in which Go GreenBOV operates, its focus is on serving customers,

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achieving success and constantly enhancing its appeal to customers, partners and
staff.

Mission Statement
To create energy efficient vehicles that empowers our customers to lead
sustainable and greener lifestyles. To consistently innovate and redesign our products
in keeping with the values of Green/ Sustainable Engineering thereby providing
maximum profit and leading to minimum emissions planetary risk.

Vision Statement
To reboot our load by actively choosing alternative energy sources that can
ensure minimized pollution, maximum profitability, a developed economy and a
greener planet.To lend nature a helping hand by reducing pollution by One degree
every year

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Target Segments
The company focuses on two wheeler segment of electric vehicle market. It is
also planning to start producing electric three wheelers and electric vehicle for the
handicapped. Companys main target customers are middle and lower class people.
Majority of the parts of Go Green BOV bikes are imported from outside. The
batteries are imported from Korea, plastic parts; controllers, motor etc. are imported
from China. Its customer base is mainly located in Karnataka, Tamil Nadu and in
some parts of Andhra Pradesh. The major competitors of Go Green BOV are
Amphere and Zon. The core competency of Go Green BOV is that it is the only
electric bike in India which gives a mileage of 100 km in a single charge.
The cost of travelling 100 km in a Go Green Bike is Rs 10 only. The
production capacity of Kolar plant is around1200 bikes per month. The production
plant is spread over an area of 5 acres. The company also has a social presence in the
form of Facebook and twitter page. Company is also planning to launch new products
in the electric Ride-on vehicle segment for kids. Some of the products in this segment
include Electric Ride on car, Electric Ride on Bike, Electric Ride on Truck etc. It also
produces electric wheel chair for rental model. The company is planning to come out
with electric cycles in the near future.
Advantages of using electric bike:
1. No Petrol, No Exhaust, absolutely zero-emission transportation
2. Pollution free & silent
3. A feel of smooth riding all weather/ hassle free riding
4. Zero maintenance and nominal cost operation.
5. Motor Vehicle Registration is not required.
6. Light weight
7. Cost economical
8. No Helmet, No Insurance is mandatory

20

Distribution Channel: Product distribution (or place) is one of the four elements of
the marketing mix. Distribution is the process of making a product or service
available for use or consumption by a consumer or business user, using direct means,
or using indirect means with intermediaries. Go GreenBov has the following three
distribution channels through which its products are delivered to the end customers.
Figure 1: Distribution Channels

Sales Force
The revenue for a company is generated by the sales department. Therefore
the sales force has to be very strong and aggressive. The sales force has to highly
skilled in product knowledge, understanding different customers and pushing the
product aggressively and yet convincingly to the customers.
Whenever there are enquiries for the vehicle, they have to follow up regularly
so that they do not lose the customer. The sales force has to track customers who are
in need, using various sources.

21

Promotional Strategies
Product promotion is one of the necessities for getting our brand in front of
the public and attracting new customers. There are numerous ways to promote a
product where the company uses more than one method. A strong set of promotional
strategies can help position of a company in a favourable light with not only current
customers but new ones as well.

Social Methods
Social media websites such as Facebook and Twitter offer companies a way
to promote products and services in a more relaxed environment. This is direct
marketing at its best. Social networks connect with a world of potential customers that
can view Go GreenBOV Company from a different perspective. Rather than seeing
the company as "trying to sell" something, the social network can see a company that
is in touch with people on a more personal level. This can help lessen the divide
between the company and the buyer, which in turn presents a more appealing and
familiar image of the company.

Mail Order Marketing

Customers who come into business are not to be overlooked. These customers
have already decided to purchase the product can be helpful in getting personal
information from these customers. These are customers who are already familiar with
your company and represent the target audience you want to market your new
products to.

Events
Go Green Management selected some prime locations in Bangalore city for
conducting road show campaigns for creating brand awareness and promoting our
vehicles, distributed pamphlets and broachers to the people also gave test rides to the
prospective customers. On June 5th being the world Environment day showcased the
Go GreenBOV vehicles in different IT parks located at different parts of Bangalore.
Go GreenBOV participated in business opportunity meet organized by Franchise
India at Calicut, Trivandrum, Madurai and Cochin.

22

Segmentation
A marketing term referring to the aggregating of prospective buyers into
groups (segments) that have common needs and will respond similarly to a marketing
action. Market segmentation enables companies to target different categories of
consumers who perceive the full value of certain products and services differently
from one another. Go GreenBOV segmented the market as Urban and Rural markets.
The following factors that Go GreenBOV has the advantages over the urban market.

High carbon emission.

24 hours power supply
High income of the customers
Awareness on the vehicle

Targeting.
The consumers a company wants to sell its products and services to, and to
whom it directs its marketing efforts. Identifying the target market is an essential step
in the development of a marketing plan. A target market can be separated from the
market as a whole by geography, buying power and demographics, as well as by
psychographics. Go GreenBOV is a company which targets all the age groups by its
different models. Kohra is the basic model targeting the students from the age 15
years to 18 years as to ride the electric vehicles license is not required. They can take
this to schools and colleges. Kimaya is the stylish model that is mainly targeted on
young generation especially ladies. Comfort level of this vehicle suits for ladies.
Sunoti is the vehicle specially designed for delivery persons. Go GreenBOV targeted
Restaurants and Pharmaceutical companies. Because of the high mileage and goods
carrying space is suited for this vehicle. Kavach is the top end model that targeted the
customers who want more mileage.

Positioning
Once the organization decides on its target market, it strives hard to create an
image of its product in the minds of the consumers. The marketers create a first
impression of the product in the minds of consumers through positioning. Positioning
helps organizations to create a perception of the products in the minds of target
audience.
For increasing the brand awareness marketing team have initiated new
strategies, for few days company approached to the newspaper distribution centres in
different areas in Bangalore and gave Go GreenBOV vehicles pamphlets to distribute
it along with the newspapers, where it create more awareness in minds of the
customer.

23

Technology
BLDC motors are a type of synchronous motor which is assisted by Hall
sensor at throttle grip. The powerful Torque generated by these motors is an interplay
of magnetic field generated by Rare Earth Permanent magnets and electromagnets on
the motor. This motor controlled by state-of-the-art embedded system technology
coupled with reliable power electronics gives the rider a smooth riding experience
with a high starting capability and ability to climb high gradients. Features

Simple construction
Ease of control
High dynamic response
High efficiency
High reliability
Noiseless operation
Better speed vs Torque characteristic

The following are the technological factors of Go GreenBOV:

Continues innovation & research.

New product development, R&D has changed the facial of industry.
Technological sophistication has made more comprehensive & user friendly.
Hybrid concept.
Regular Up gradation in Motor standardization.
Regular Innovation like Cruise control system, Anti-Theft Locking, 3 Speed
toggle switch etc. in E bike.

24

VARIOUS MODELS AVAILABLE WITH THE COMPANY

KAVACH

Figure 2: Kavach

KIMAYA

Figure 3: Kimaya

25

KOHRA

Figure 4: Kohra

SUNOTI

Figure 5: Sunoti

SPECIFICATIONS

26
Table no 1: Specifications of vehicles
Model Name

Sunoti

kavach

Kohra

Kimaya

Battery Specification

48V, 20 AH/48V,
35AH

60V, 35AH

48V, 20AH

60V, 20AH

Payload Capacity

150 Kg.

180 Kg

180 Kg

180 Kg

Mileage/ Charge

60Km ,110 Km

110 Km

60 Km

60 Km

Sector Target

Delivery, Daily
Use

Long
Distance
commuters

Anybody
between age
group of 1580

Ladies,
youngsters

Price (INR)

44,000

53,500

35,000

49,000

27

CHAPTER THREE
DATA ANALYSIS AND INTERPRETATION

28

DAILY TRAVELLING DISTANCE

Table 2: Table showing details of distance travelled by the respondents daily
DISTANCE

NO OF RESPONDENTS

PERCENTAGE

10-20KM

45

45%

20-30KM

29

29%

30-40KM

20

20%

40-50KM

6%

50 AND ABOVE

0%

50
45
40
35
30
25

NO OF RESPONDENTS

20
15
10
5
0
10-20KM

20-30KM

30-40KM

40-50KM

Figure 6 : Daily travelling distance

Interpretation: It can be inferred from the figure that most number of customers
(45%) travel a distance of 0-20 km daily, 29% of the customers travel a distance
between 20-30 km a day, 20% of the customers travel a distance of 30-40 km a day,
6% of customers travel 40-50 km a day, and none of the customers travel above 50
km a day. From the figure it is understood that the number of daily travelers are
higher than people who rarely use the vehicle, and this can be mainly because most
users use it for going to their work place.

29

MAJOR PROBLEMS FACED BY CUSTOMERS

Table 3: Table showing details of customers facing problems regarding mileage of

vehicle
WHETHER PROBLEM
FACED
YES

NO OF CUSTOMERS

PERCENTAGE

36

36%

NO

64

64%

YES
NO

Figure 7: Problems faced by customers.

Interpretation: It can be inferred from the figure that 36% of customers ae facing
problems with the mileage of the vehicle, whereas 64% of customers do not face any
problem regarding the mileage of the vehicle. The majority of users do not face
problem shows that the quality of the vehicle may not be the real problem and
mileage can even go down due to un proper usage of the vehicle.

30

MAJOR PROBLEMS FACED BY CUSTOMERS

Table 4: Table showing details of customers who face problems with Sevice of
vehicle
WHETHER PROBLEM
FACED
YES

NO OF CUSTOMERS

PERCENTAGE

73

73%

NO

27

27%

YES
NO

Figure 8: Service of vehicles

Interpretation: It can be inferred from the figure that 73% of customers face
problems with the servicing done on the vehicle by the company whereas 27% of
customers do not face any issue with the service provided by the company. The
majority of customers face problems in servicing their vehicle show that the company
needs to address this issue with more care and do the need full to make the customers
feel better about the same.

31

MAJOR PROBLEMS FACED BY CUSTOMERS

Table 5: Table showing details of customers who face problems with charging the
vehicle.
WHETHER PROBLEM
FACED

NO OF CUSTOMERS

PERCENTAGE

YES

22

22%

NO

78

78%

YES
NO

Figure 9: Problems in charging

Interpretation: It can be inferred from the figure that 22% of the customers face
problems with the charging of the vehicle whereas 78% of the customers do not face
any problem with the same. This show that though the majority do not face a problem,
a considerable number of customers face an issue with charging their vehicle and it
need to be addressed and problems need to be resolved.

32

MAJOR PROBLEMS FACED BY CUSTOMERS

Table 6: Table showing details of customers who face miscellaneous problems.

WHETHER PROBLEM
FACED

NO OF CUSTOMERS

PERCENTAGE

YES

61

61%

NO

39

39%

YES
NO

Figure 10: Miscellaneous problems

Interpretation: It can be inferred from the figure that 61% of the customers
miscellaneous problems with the vehicle and 39% of the customers do not face any
miscellaneous problems. Miscellaneous problems include problem with the fiber
body, chase, shock absorbers, stand, tires, alloy wheels etc. which can happen due to
un proper usage and errors during the manufacturing or assembling process as well.

33

FREQUENCY OF PROBLEMS

Table 7: Table showing details of frequency of problems faced by customers

DURATION
ONCE IN A MONTH
ONCE IN 3 MONTHS
ONCE IN 6 MONTHS
ONCE IN A YEAR

NO OF
RESPONDANTS
18
27
33
22

PERCENTAGE
18%
27%
33%
22%

ONCE IN A MONTH
ONCE IN 3 MONTHS
ONCE IN 6 MONTHS
ONCE IN A YEAR

Figure 11: Frequency of problems.

Interpretation: It can be inferred from the figure that 18% of the customers face
problems with vehicles once in a month, 27% of the customers face problems once in
3 months, 33% of the customers face problems with the vehicle once in 6 months, and
22% of the customers face problems with the vehicle once in a year. There is a
considerable number of customers who face problems once in in a month or three
month which is a serious issue, which even can happen when the problems are not
resolved properly once they occur.

34

RATING ON SERVICE

Table 8 : Table showing details of Service done on vehicles rated on a scale of 1-5
(5 being the highest and 1 being the lowest)
RATING

NO OF CUSTOMERS

PERCENTAGE

20

20%

23

23%

31

31%

16

16%

10

10%

1
2
3
4
5

Figure 12: Rating on Service

Interpretation: The figure shows the details of rating done by the customers on
service done by the company over its vehicles, 20% of the customers rated it as 1,
23% of the customers rated it as 2, 31% of the customers rated it as 3, 16% of the
customers rated it as 4, 10% of the customers rated it as 5. Considering the small
number of respondents who rated it highest, it can be understood that the majority are
not satisfied with the service provided by the company and it needs to be improved.

35

RATING ON SOLVING PROBLEMS

Table 9: Table showing details of whether problems are being resolved rated on a
scale of 1-5 (one being the lowest and 5 being the highest)
RATING

NO OF CUSTOMERS

PERCENTAGE

10

10%

18

18%

33

33%

25

25%

14

14%

1
2
3
4
5

Figure 13: Rating on Solving of problems

Interpretation: The figure shows the details of rating done by the customers on
whether the problems are resolved by the company, 10% of the customers rated it as
1, 18% of the customers gave a rating of 2, 33% of customers gave a rating of 3, 25%
of customers rated it as 4 and 14% of customers rated it as 5. Considering that the
number of customers who has given highest rating is less, the ability of resolving
problems by the company is questioned. It can be due to lack of training or even may
be because of insufficient resources for resolving the problems.

36

RATING ON REPEATED PROBLEMS

Table 10: Table showing details of customers facing same problem again rated on a
scale of 1-5 ( 1 being the lowest and 5 being the highest)
RATING

NO OF CUSTOMERS

PERCENTAGE

22

22%

11

11%

29

29%

17

17%

21

21%

1
2
3
4
5

Figure 14: Rating on Repeated problems

Interpretation: The figure shows that about 21% of the customers have not faced the
same problem again as they have given it a rating of five, 17% of customers gave
rating of 4, 29% of customers gave a rating of 3, 11% of customers rated it 2 and 22%
of customers rated the lowest in scale. Though the result gives somewhat an equal
distribution in the rating scale, it can happen majorly due to problems when not
resolved on time and by proper way.

37

TRAINING OF STAFF

Table 11: Table showing details of whether the service personals are well trained
rated in a scale of 1-5 (1 being the lowest and 5 being the highest)
RATING

NO OF CUSTOMERS

PERCENTAGE

1
2

3
17

3%
17%

31

31%

22

22%

27

27%

1
2
3
4
5

Figure 15: Training of Staff

Interpretation: The figure shows that majority of the customers have given a
medium rating regarding whether the service employees are trained or not. 31% of
the customers gave a rating of 3 which is the largest, 27% of the customers have given
the highest rating, 22% of people gave a rating of 4 which is near to the highest, 3%
of customers gave the lowest rating of 1. The graph shows requirement of training by
service personals. This could happen due to errors which happened from staff by
which the customer had problems with vehicle or even the way staff deals with the
customers can be the reason for lower ratings.

38

SPARE PARTS AVAILABILITY

Table 12 : Table showing details of whether spare parts are readily available for
replacement
RATING
1

NO OF CUSTOMERS
21

PERCENTAGE
21%

16

16%

3
4

34
18

34%
18%

11

11%

1
2
3
4
5

Figure 16: Spare parts availability.

Interpretation: It is shown in the figure that 11% of customers gave a rating of 5

regarding the availability of spare parts, 18% of the customers gave a rating of 4, 34%
of customers gave a rating of 3, 16% of customers gave a rating of 2 and 21% of
customers gave the lowest rating of 1. The results shows that the availability of spare
parts is low and it can happen due to multiple reasons, timely updating of the
inventory levels of spare parts as per the requirement if not done properly can lead to
this problem.

39

HOW CUSTOMER COME TO KNOW ABOUT VEHICLE

Table 13: Table shows details of how the customers come to know about electric
two-wheelers.
SOURCE

NO OF CUSTOMRES

PERCENTAGE

FRIENDS

26

26%

FAMILY

12

12%

ADVERTISEMENT

41

41%

PRINTED ARTICLES

21

21%

FRIENDS
FAMILY
ADVERTISEMENT
PRINTED ARTICLES

Figure 17: How customer come to know about vehicle

Interpretation: It can be understood from the figure that majority of customers came
to know about the vehicle through advertisements, that is 41%, 26% of customers
come to know about from friends, 12% from family and 21% from printed articles. It
shows that advertisements play a vital role in generating awareness among customer
than any other source of information and the company needs to focus on
advertisements so that it helps them in gaining more customers.

40

WHO INFLUENCED CUSTOMERS

Table 14: Table shows who influenced the customers to purchase the vehicle
DECISION
SELF DECISION
FRIENDS
FAMILY
COLLEAGUES

NO OF CUSTOMRES
49
18
21
12

PERCENTAGE
49%
18%
21%
12 %

SELF DECISION
FRIENDS
FAMILY
COLLEGUES

Figure 18: Who influenced customers.

Interpretation: From the figure it can be understood that nearly half of the
customers (49%) themselves decided to buy the vehicle, 18% of them were influenced
by their friends, 21% of them were influenced by family and 12% of them were
influenced by their colleagues. It shows that purchase decisions are mostly taken by
the customer himself though there are influences from others and the probable reason
could be that the vehicle is for self or personal use and people choose vehicles
according to their comfort.

41

FOR WHOM THE VEHICLE WAS BOUGHT

Table 15: Table shows the detail of for whom the customer bought the vehicle
USER
SELF USE
CHILDREN
SPOUSE
PARENTS

NO OF CUSTOMERS
37
16
32
15

PERCENTAGE
37%
16%
32%
15%

SELF USE
CHILDREN
SPOUSE
PARENTS

Figure 19: For whom the vehicle was bought

Interpretation: It can be understood from the figure that majority of the customers
(37%) were using the vehicle by themselves, 16% of them bought it for their children,
15% of them bought it for their parents and 32% of them bought it for their spouse.
The result support the previous finding that most of the time purchase decisions are
influenced by the customers themselves and is because they buy it for their own use.

42

SPENDING ON VEHICLE

Table 16: Table showing details of money spend by customers on buying the electric
two wheeler
AMOUNT
0-15000
15000-30000
30000-45000
45000 AND ABOVE

NO OF CUSTOMERS
0
0
85
15

PERCENTAGE
0%
0%
85%
15%

0-15000
15000-30000
30000-45000
45000 AND ABOVE

Figure 20: Spending on vehicle

Interpretation: The figure explains that 85% of the customers had to spend between
Rs 30000-45000 and the rest 15%had spent more than Rs 45000 for purchasing the
vehicle. This result is based on the model of vehicle the customer opted for and the
amount spend is the price of the vehicle itself.

43

INFLUENCE BY PRICE OF CONVENTIONAL FUELS

Table 17: Table showing the details of whether price of conventional fuels
influenced their buying decision
DECISION
YES
NO

NO OF CUSTOMERS
78
22

PERCENTAGE
78%
22%

YES
NO

Figure 21: Conventional fuel price influence

Interpretation: It can be understood from the figure that 78% the customers were
influenced by the high price of conventional fuels and 22% of the customers were not
influenced by the same. It can be inferred that if fuel price were low it could have
affected the sales negatively. Vehicles are often chose by customers on basis on
economic usage particularly if it is for daily use, and electricity is considered cheaper
than conventional fuels like petrol and diesel.

44

FACTORS INFLUENCED THE CUSTOMERS

Table 18: Table shows the details of highest rating done by the customers on
various factors which influenced the customers while buying the vehicle.
FACTORS

NO OF CUSTOMERS

PERCENTAGE

PRICE OF
CONVENTIONAL FUELS
MILEAGE

26

26%

20

20%

PAY LOAD

10

10%

COST PER KM

39

39%

SPEED

15

15%

PRICE OF CONVENTIONAL
FUELS
MILEAGE
PAYLOAD
COST PER KM
SPEED

Figure 22: Factors influenced the customers

Interpretation: The figure explains the factors which influenced the customers while
they decided buying the vehicle, 26% of customers rated price of conventional fuels
as five(the highest), 20% of customers gave mileage the highest rating of five, 10% of
customers rated pay load of the vehicle with the highest, 39% of the customers rated
cost per kilometer with highest rating, 15% of the customers rated speed with the
highest rating. It can be understood that the probable reason for higher rating on cost
per kilometer is that people prefer to spend less on every kilometer they travel and
thus all other factors stands secondary based on the result generated.

45

FACTORS INFLUENCED THE CUSTOMERS

Table 19: Table showing details of highest rating done by the customers on various
factors which influenced the customers while buying the vehicle.
FACTORS

NO OF CUSTOMERS

PERCENTAGE

PRICE

12

12%

LESS POLLUTION

47

47%

GOVERNMENT
SUBSIDY
MAINTENANCE

0%

31

31%

SERVICE
AVAILABILITY

14

14%

PRICE
LESS POLLUTION
MAINTENANCE
SERVICE AVAILABILITY

Figure 23: Factors influenced the customers

Interpretation: It can be inferred from the figure that less pollution and less
maintenance are two major influencing factors as per the rating given by the
customers, 47% osf customers rated 5 for less pollution, 31% customers rated 5 for
maintenance, 12% of customers rated 5 for price, and 14% of customers rated 5 for
service availability. Less pollution is another factor which is highly rated by the
customers probably because of the promotions done by the company, the company
promotes green energy and stands for reducing pollution.

46

LEVEL OF SATISFACTION

Table 20: Table shows the details of number of customers who are satisfied with the
vehicle
LEVEL OF
SATISFACTION
HIGHLY SATISFIED

NO OF CUSTOMERS

PERCENTAGE

20

20%

SATISFIED

46

46%

DISSATISFIED

28

28%

HIGHLY DISSATISFIED

6%

HIGHLY SATISFIED
SATISFIED
DISSATISFIED
HIGHLY DISSATISFIED

Figure 24: Level of satisfaction

Interpretation: The figure represents the level of satisfaction by the customers, 20%
of the customers are highly satisfied, 46% of the customers are satisfied, 28% of the
customers are dissatisfied and 6% of customers are highly dissatisfied. The results
shows that the majority of customers are satisfied about the vehicle and is probably
due to the satisfactory performance of the vehicle while usage though there is scope
for improvising various aspects.

47

RECOMMENDATION BY USERS

Table 21: Table shows the detail of customers who would recommend others to buy
an electric two wheeler.
RECOMMENDATION

NO OF CUSTOMERS

PERCENTAGE

YES

64

64%

NO

36

36%

YES
NO

Figure 25: Recommendation by users

Interpretation: The figure shows percentage of customers who would recommend

others to buy this vehicle, 64% of customers would recommend others, whereas 36%
of customers would not. Though the majority would recommend , there are
considerable number of customers who would not recommend the vehicle to others
which shows that they might not be satisfied with some or the other factor,
considering previous results the probable reasons may not be the vehicle quality but
the service provided by the company

48

SERVICE SATISFACTION

Table 22: Table shows the details of whether the customers are satisfied with the
companys after sale service

LEVEL OF
SATISFACTION
HIGHLY SATISFIED

NO OF CUSTOMERS

PERCENTAGE

19

19%

SATISFIED

38

38%

DISSATISFIED

23

23%

HIGHLY DISSATISFIED

20

20%

HIGHLY SATISFIED
SATISFIED
DISSATISFIED
HIGHLY DISSATISFIED

Figure 26: Service satisfaction

Interpretation: It can be inferred from the figure that 19% of the customers are
highly satisfied with the companys after sales service, 38% are satisfied, 23% of
customers are dissatisfied and 20% of customers are highly dissatisfied. The result
supports the previous findings that the service provided by the company needs to be
improved because of the considerable number of customers being unsatisfied about
the same.

49

MOST PREFERRED FEATURES

Table 23: Table shows the different features of electric two wheelers most preferred
by different customers.
FEATURES
STORAGE SPACE
SPEED
ECONOMY

NO OF CUSTOMERS
13
17
28

PERCENTAGE
13%
17%
28%

AFTER SALE SERVICE

SPARE AVAILABILITY

9
7

9%
7%

STORAGE SPACE
SPEED
ECONOMY
AFTER SALE SERVICE
SPARE AVAILABILITY

Figure 27: Most preferred features

Interpretation: The figure shows that 13% of customers prefer storage space the
most, 17% of customers prefer the speed of the vehicle, 28% of customers prefer the
economic way of travel offered by the vehicle, 9% of customers prefer after sales
service as the most attractive factor whereas 7% of customers say spare availability as
most attractive factor. It is understood from the figure that the results support the
previous finding that customers prefer an economic way of travelling and probably
due to this economy is the most preferred feature for a major number of customers.

50

MOST PREFERRED FEATURES

Table 24: Table shows the different features of electric two wheelers most preferred
by different customers.
FEATURE

NO OF CUSTOMERS

PERCENTAGE

RESALE VALUE

0%

COMFORT

5%

EASY RIDE

6%

SAFETY

11

11%

ZERO MAINTENANCE

4%

RESALE VALUE
COMFORT
EASY RIDE
SAFETY
ZERO MAINTENANCE

Figure 28: Most preferred features

Interpretation: It is understood from the figure that 5% of customers were attracted

by comfort of the vehicle, where as 6% of the customers prefer the easy ride offered
by the vehicle, 11% of the customers were attracted by the safety features of the
vehicle and 4% of customers believe that zero maintenance is the most attractive
factor, The results shows that safety is another most preferred feature by a major set
of customers due to the high rate of accidents happen daily and due to the
specifications electric vehicles are usually less prone to accidents.

51

AGE GROUP OF CUSTOMERS

Table 25 : Table showing details of age group of customers

AGE GROUP

NO OF CUSTOMERS

PERCENTAGE

15-25 YEARS

10

10%

26-35 YEARS

27

27%

36-45 YEARS

39

39%

46-55 YEARS

15

15%

56-65 YEARS

9%

15-25 YEARS
26-35 YEARS
36-45 YEARS
46-55 YEARS
56-65 YEARS

Figure 29: Age group of customers

Interpretation: It is understood from the figure that 10% of the customers belong to
15-25 age group, 27% customers belong to 26-35 age group, 39% of customers
belong to 36-45 age group, 46-55 age group represents 15% of the customers and 9%
of customers belong to 55-65 age group. The results shows that youngsters and
middle age people combines the majority of user of electric two wheelers.

52

GENDER OF CUSTOMERS.

Table 26: Table showing details of Gender of customers

GENDER

NO OF CUSTOMERS

NO OF CUSTOMERS

MALE

87

87%

FEMALE

13

13%

MALE
FEMALE

Figure 30: Gender of customers.

Interpretation: Figure shows the details of gender of respondents, 87% of the

respondents were male and 13% of respondents were female. Though it is shown in
the result that majority of the customers are men, people who actually use the vehicle
include family members and spouse of the buyer, hence the vehicle is not only meant
for male users.

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OCCUPATION OF USERS

Table 27: Table showing details of occupation of customers

OCCUPATION

NO OF CUSTOMERS

PERCENTAGE

STUDENT

5%

PRIVATE EMPLOYEE

42

42%

GOVERNMENT JOB

12

12%

OWN BUSINESS

15

15%

OTHERS

26

26%

STUDENT
PRIVATE EMPLOYEE
GOVRNMENT JOB
OWN BUSINESS
OTHERS

Figure 31: Occupation of users

Interpretation: Figure represents the occupation of the respondents, 5% of them

were students, 42% of them were private employees, 12% of them were having
government job, 15% of them were having own business and 26% of them were
engaged with other jobs. People with private job being more in number can be
explained on the basis of demography and it has probably no relation with the buying
behavior.

54

ANNUAL INCOME OF USERS

Table 28: Table showing details of annual income of customers

ANNUAL INCOME

NO OF CUSTOMERS

PERCENTAGE

0-200000

15

15%

200000-300000

20

20%

300000-400000

26

26%

ABOVE 400000

39

39%

0-200000
200000-300000
300000-400000
ABOVE 400000

Figure 32: Annual income of Users

Interpretation: The figure explains the annual income of respondents, 15% of them
have it between 0-2 lakhs, 20% of the respondents have between 2 lakhs and 3lakhs,
26% of the customers have between 3 lakhs and 4 lakhs, 39% of the customers have
above 4 lakhs of annual income.it shows that majority of the users belong to middle
class families with proportionate income.

55
MOST PREFERRED FEATURE OF ELECTRIC TWO WHEELER BASED ON THE AGE
GROUP OF THE CUSTOMERS.

Table no 29: Table showing details of most preferred features based on age groups.
FEATURE

AGE GROUP
15-25

26-35

STORAGE SPACE
SPEED

ECONOMY

46-55

56-65

14
10

AFTER SALE
SERVICE
SPARE
AVAILABILITY

36-45

10

RESALE VALUE
COMFORT

FRIENDLY&EASY
RIDE
SAFETY
ZERO
MAINTENANCE

Interpretation: Comfort in usage was the most preferred feature by the age group of 15-25
whereas After Sale Service was the most preferred factor by the age group of 26-35, After
sales service being an unavoidable factor for any vehicle the reason for this feature being
preferred most is obvious, Speed is the most preferred feature by age group of 36-45 as it is
necessarily required in for a daily user who travels long distance, economy is the most
preferred feature by both age groups 46-55 & 56-65 mostly because of the high mileage
which the vehicle provide when compared to petrol vehicles available in the market and the
low cost per kilometer offered by the vehicle.

56
CUSTOMERS WHO WERE INFLUENCED BY THE HIGH PRICE OF CONVENTIONAL
FUELS BASED ON DIFFERENT AGE GROUPS

Table 30: Table showing details of customers who were influenced by the high price of
conventional fuels based on different age groups.
AGE GROUP

NO OF CUSTOMERS

15-25

26-35

16

36-45

40

46-55

14

56-65

45
40
35
30
25
NO OF CUSTOMERS

20
15
10
5
0
15-25

26-35

36-45

46-55

Figure 33: customers influenced by high price of conventional fuels based on age group.

Interpretation:

it is evident from the figure that all the customers from different age
group has similar opinion about the influence of high price of conventional fuels in their
buying decision, high price of petrol and diesel has always influenced life of people and
thereby it has an influence in the entire economy of the nation, the survey throws light into
the fact that people would always prefer alternatives to conventional fuels and electric
vehicles are an excellent solution available at this point of time.

57

CHAPTER FOUR
SUMMARY OF FINDINGS, SUGGESTIONS
AND CONCLUSION

58

FINDINGS AND SUGGESTION

It was found from the study that most of the customers come to know about
electric two wheelers from advertisement; a few through printed articles, friends and
family, and it can be inferred that marketing activities of the company has been a
success as it could generate awareness and interest among potential buyers in the city.
Majority of the customers bought the vehicle on own interest and others
buying decision were influenced by their family, friends and their colleagues. It shows
that family, friends and colleagues always plays a vital role in buying decision of the
customers. Majority of the customers bought the vehicle for self-use, near to the
majority of customers bought the vehicle for their spouse, a few for their parents and
for children too, and the buying decision is hence influenced by the user too.
Majority of the customers spend between thirty thousand and forty five
thousand Rupees to buy their vehicles and a few have spent more than that, which
shows that people are willing to adopt newer technology and concepts and are less
concerned with the money they spend, this assumption can be supported when we
compare the price of these vehicles with non-electric two wheelers. Petrol vehicles are
available within the same price range which have greater acceptance and wide usage
in the market, keeping this fact in mind we can definitely say that people are ready to
try innovative ideas.
Another important finding was that high price for conventional fuels had an
effect in buying decision of customers as they do not want to spend too much in
buying fuel and need an economic alternative which can bring down their day to day
expenses.
When customers were asked about the factors which influenced them while
they decide upon the vehicle, multiple factors were identified such as mileage, pay
load, cost per kilometer, speed, price, pollution etc. Price of conventional fuels, least
maintenance when compared to non-electric vehicle and availability of service were
also considered by the buyers while they decided upon the purchase. Zero pollution
and cost per kilometer stood as major reasons why they purchased the vehicle when

59

compared to other factors. The feature of which mostly liked by the customers is it
being economic compared to non-electric two wheelers
Majority of the customers are satisfied with the vehicle and are willing to recommend
the same to others they know. It was also inferred from the study that majority of
customers are satisfied with the company after sale service.
It was observed from the survey that majority of the respondents represents the
age group of 36-45 which shows that middle aged people are more interested in
buying the vehicle when compared to young as well as elder people. 87% of
customers are male but it can be inferred from the study that though women are not
majority buyers, when it comes to usage number of both men and women users are
some what equal. It was also revealed in the study that most of the users are employed
in private firms.
Income of a buyer has always been an influencing factor in a buying decision and
majority of the customers have an annual income above four lakh Rupees, which
shows that it is affordable for them to buy a petrol vehicle but they preferred an
electric vehicle because of various factors influenced them.
Most of the customers use their electric two wheelers on a daily basis and majority of
the travel about 10-20 kilometres, it shows that the vehicle has an unavoidable role in
their daily life. It was found in the study that the customers are facing various
problems while using the vehicle which include problems such as mileage, charging,
service and miscellaneous problems, Service was found to be the most reported
problem among the customers.
Though the frequency of problems faced by the customers varies, it was found
that most of the customers find a problem with the vehicle at least once in six months
and few of them have problems once in three months as well as once in a year. Few of
the customers complaints that the problems are not resolved completely even after
servicing is done and they have to face same problems again. Some of the respondents
say that the service personals are not well trained as well as the spares are not readily
available.

60

SUGGESTIONS
In addition to findings, this study also provides several scopes for further research,
which will be addressed in the following paragraphs. Following are the suggestions:

The price of the electric two wheelers need to be decreased, it can be done by
adopting sophisticated technologies and carrying out mass productions or
some discounts on price or offers could be given in order to increase the sales

More awareness needs to be created among the consumers regarding the

Electric Two wheelers and their benefits. It can be promoted continuing the
same methods already the company has adopted as the survey results indicates
that customers were attracted by the advertisement of the company

More number of service centres need to be opened at least in major areas to

cater to the problems & needs of the customers when needed. Service being a
major issue for the company, it is suggestable that the company invest more its
time and resources in improvising this area so that the existing customers
remain satisfied which will definitely help to improve the number of
customers.

As most of the people prefer high speed, speed of the vehicle can be improved
by giving importance to safety aspect as well it is because both factors are
preferred by customers as resulted in the survey.

Give high quality service training for servicing people. Training requirement
of the service employees were a major concern for customers reflected in the
survey results, staff can be trained both in technical and customer care aspects,
giving proper service and resolving the issues on time would improvise the
customers satisfaction level to a greater extend.

Increase the availability of spare parts in all showrooms. Thorough check in

the inventory need to be carried out and the requirement need to be forecasted,
only then customers can be provided with spare parts whenever it is required.

61

CONCLUSION

As one of the major objective of the study was to identify the factors which
influence the customers buying behavior, the study explains that the buying behaviour
of customers are influenced by Social and economic factors and buying is a part of
satisfying needs and desires. It was also understood from the study that individuals
often purchase products for their subjectively perceived values rather than their
primary functions and this does not mean that the products basic functions are not
important, but that the contemporary role of a product is more than its basic use-value.
Another objective of the study was to understand the satisfaction level of
customers, from the study conducted it was concluded that though majority of the
customers are satisfied with vehicle there are factors which need to be improved. It
also shows that there is a combination of positive and negative effect of those factors
on customer satisfaction level. It is very difficult to identify the exact reasons why a
consumer purchases and prefers one product or service over another one. This is
because consumers sometimes make purchasing decisions based on their emotional
beliefs which they even themselves are not well aware of.
Suggestions are made purely based on the survey results which include ways
to improve the product as well as measures which can be taken to increase the
customer satisfaction level which would help this wonderful organization with a great
motive of promoting green energy to reduce carbon footprints to achieve greater
heights.

62

BIBLIOGRAPHY

Kotler, P., & Keller, K. L. (2009). Marketing management. Upper Saddle River,
N.J : Pearson Prentice Hall.5th ed, Print.
Egan, John. Marketing Communications. 2007 : n. pag. Print.
Kotler, Philip et al. Principles Of Marketing. 4th ed. Pearson, 2005. Print.
McGivern, Yvonne. The Practice Of Market And Social Research: An Introduction.
2nd ed.Prentice Hall, 2006. Print.
Edmund W. J. Faison, A useful Concept for Consumer Behavior,Journal of Consumer
Research, 1977, print
Engel, James F. and Roger D. Blackwell (1982), "Consumer Behavior,"5th ed Hinsdale,
IL: Dryden Press2006, Print
Solomon, M.R. 1995, Consumer Behaviour, 3rd ed. Prentice Hall, 2005, Print.
Stavkova, J., Stejskal, l., Toufarova, Z.. Factors influencing consumer
behaviour. Agriculture Journal, 2008, Print
Foret, M. and P. Prochazka (2007) Buying Behaviour of Households in the.
Czech
Republic.Journal of Agricultural Economics, Czech, Vol.53, 2007, Print
Acebron et al., 2000, Acebron L.B., Mangin J.-P.L., Dopico D.C., personal
habits and previous experience on consumers purchase decision,
Journal of International Food and Agribusiness Marketing 11, 3, 2000, Print.

63

ANNEXURE

64
QUESTIONNAIRE

Respected Sir/Maam, I am an MBA student from SSTM COCHIN, This survey is

conducted as a part of my academic project on the topic A Study On Customer Buying
Behavior On The Electric Two Wheelers

1) How much do you travel daily: ________________

a) 10-20 km b) 20-30 km c) 30-40 km
d) 40-50 km

e) Above 50 km

2) What are the problems that you have with your vehicle? Yes or No
a) Mileage Problems
c) Charging Problems
b) Service problems
d) Miscellaneous

3) How frequently do you face the problems?

a) Once in a Month
b) Once in 3 Months
a Year

c) Once in 6 Months

d) Once in

4) Rate the following on a scale of 1 to 5? (5 being the highest and 1 being the lowest)
a) Servicing done for the vehicle
b) Problems are being resolved
c) You dont get the same problem again
d) Service personnel are well
trained
e) Spare parts are readily available for
replacement

5) How do you come to know about electric Two-wheelers?

a) Friends
b) Family
c) Advertisement

6) Who influenced you to purchase the vehicle?

a) Self decision b) Friends
c) Family

c) Printed articles.

d) Colleagues

7) For whom you bought this vehicle?

a) Self use
b) Children
c) Spouse d) Parents
8) How much amount of money you spend on buying your bike?(In INR)
a) 0-15000
b) 15000-30000
c) 30000-45000
d) more than 45000
9) Did the high price of conventional fuels influence your buying decision?
a) Yes
b) No

65
10) How would you rate the factors that influenced you while buying e- two wheeler? (5
being highest and 1 being lowest)
a) Price of conventional fuels

b) Mileage

c) Pay load

d) Cost per km

e) Speed

f) Price

g) Less pollution

h) Government Subsidy

i) Maintenance

j) Service availability

11) Are you satisfied with the vehicle: ___________________

A) highly satisfied
b) satisfied
c) dissatisfied d) highly dissatisfied

12) Will you recommend others to buy an Electric two wheeler: ______
a) Yes
b) No

13) Are you satisfied with the company aftersales service: ___________________
a) highly satisfied
b) satisfied
c) dissatisfied d) highly dissatisfied

14) Select the feature of your current electric two wheeler you like the most?

1. Storage space

2.Speed

3. Economy

4. After sale service.

5. Spare availability.

6. Resale value.

7.Comfort journey

8. Friendly and easy ride.

9.Safety

10. Zero maintenance.

Name: ______________________________

Age: _______________________
a) 15-25yrs
b) 26-35yrs

Gender: ______________
a) MALE
b) FEMALE

c) 36-45yrs

d) 46-55yrs

e) 56-65yrs

66

Occupation: __________________________
a) Student
b) Private Employee
c) Own Business
d) Other

Annual Income: ________________

a) 0 - 200000 b) 200000 300000

c) Government Employee

c) 300000 400000

d) Above 400000