Studies in Business and Economics no.

9(3)/2014

PURCHASE DECISION OF INDIAN CONSUMERS: THE

FACTORS OF ATTRACTION WHILE PURCHASING CAR
GAUTAM Raj Kumar
Punjabi University, India
Abstract:
The aim of the paper is to study factors affecting the purchase behaviour of the
automobile consumer. At present, the automobile sector is facing stiff competition due to
availability of local & foreign brands and increasing pre-sales and post-sales expectation of the
customers. The study has been conducted in northern states comprising Punjab, Haryana,
Himachal Pradesh, Delhi and Chandigarh. The total 250 customers who have purchased
(Volkswagen, Hyundai, Maruti and Honda cars) were contacted for purpose of study. The study
is based on primary and secondary data. Kruskal-Wallis test has been applied to know the
significant differences among the respondents relating to different factors of purchase. The test
has been applied at assumed p-value =0.05. The statements with less than 0.05 p-value are
considered significant and those with p-value more than the assumed value are considered to be
insignificant. It has been found that safety, looks, shape, features and interior image and presales and post sales policies have compelled the customer to select and buy the car. Hyundai
and Volkswagen are emerging as very strong brand in the area in comparison to other
manufacturers.

Key words: buying decisions, automobile sector, competition, interiors, shape and brand

1. Introduction
Modern market is driven by the consumers as it is decided by them whether to
select or to reject the product. Consumer is king in the market and company cannot
force them to buy the product. The need is to understand what is more relevant for
consumers and how these consumers spend time for searching their preferences and
tastes. Hence, it is also important for the organization to be careful at the product
launching and other stages of the product development. In the globalized era
marketing is becoming sensory marketing which engages the consumers senses and
affects their perception, judgement and behaviour. Subconscious triggers which appeal
to the basic senses may be a more efficient way to engage consumers. Also, these
sensory triggers may result in consumers' self-generation of (desirable) brand
attributes, rather than those verbally provided by the advertiser. The understanding of
these sensory triggers implies an understanding of sensation and perception as it
applies to consumer behaviourthis is the research perspective of sensory marketing

Studies in Business and Economics - 29 -

Studies in Business and Economics no. 9(3)/2014

(Aradhana,2012). Buying resistance at any stage by the consumer may result to
rejection of product and could create worrisome position for the company (IIona and
Domen, 2013). Stuart et al (2013) observed that consumers construct an ostensibly
distinct and stable version of luxury brands expressing its subjective, experiential,
moral and artistic constructs. Luxury brand discourse operates strategic juxtapositions
between normatively positive (ideal) and normatively negative (problematic)
categories, which are paradoxically interdependent. Cultural drivers and trust
outcomes of consumer perceptions on issues pertaining to the unethical marketing
behaviour of firms. It specifically investigates: the role of cultural orientation in forming
consumer ethical ideology; the link between the consumer's ethical ideology and
his/her perceptions regarding the unethical marketing behaviour of firms; the effect of
perceived unethical marketing behaviour on trust in firms; and the moderating role of
gender, age, and education of the consumers (Leonidas et al 2013). Marylyn and
Ahmed,(2001) viewed that Marketing ethics and social responsibility are inherently
controversial, and years of research continue to present conflicts and challenges for
marketers on the value of a socially responsible approach to marketing activities.
Consumers care about ethical behaviour. The marketers might encourage consumers
to engage in positive purchase behaviour by way of ethical marketing. Ethical
marketing leads to consumer empowerment and companies with such policies will
operate for longer time in the market (Deirde et al, 2006). Chris and Matthew (2013)
observed that different organizational culture is needed to drive the number of new
services from that required for a higher success rate i:e learning culture. A new service
development (NSD) capability has an important role supporting both of these aspects
of new service development performance. The quantity and quality of NSD go on to
affect the financial contribution made by NSD. NSD performance is further enabled by
the appropriate alignment of culture, capability and strategic orientation. Companies
having environment responsibility have an edge over competition (Scott and David,
2000). Consumers also values ecological lifestyle and are environmentally conscious
(Elena and Eva, 2006). Another significant aspect is corporate social responsibility
which contributes to building consumer identification and also correlated to consumer
satisfaction (Andrea et al, 2013).
Cova (1996) expressed that in the era of post-modern marketing, functional
difference between products or services are shrinking, and consumers make their
buying decisions according to the image of these products. Image appears as a nontechnological source of advantage and product is becoming its predominant function in
a society saturated with goods. The job of post-modern marketing is to identify the
cultural meanings and images that are intended for the product. Image marketing and
branding or brand management are closely related. Branding is of critical importance in
post-modern marketing. In post-modernity, the consumers are not a passive target for
image marketing but an active link in the continual production of meanings. This may
be called experience based marketing that emphasizes interactivity, connectivity and
creativity. If the market can no longer be cut up into homogeneous and stable
segments, the only alternative is to pin down the consumers individually with the help

- 30 - Studies in Business and Economics

Studies in Business and Economics no. 9(3)/2014

of computerized information systems. Stephen et al (2009) highlighted the notion of fit
between individual characteristics, task demands and the contextual environment.
When the fit is high, older consumers use their considerable knowledge and
experience to compensate for the impact of any age-related changes in abilities and
resources. When the fit is relatively low, older consumers feel increased need to adapt
their decision making processes. We discuss these consumer adaptations and
propose a number of research questions related to the processes underlying them in
order to contribute to a better understanding of how they can lead to more effective
consumer decision making for older adults. Consumers desire to participate in a
relationship influence their level of motivation, degree of confidence and these, in turn,
impacts on the consumers' sense of affiliation with the service provider. A consumer's
sense of affiliation subsequently influences the strength of their relationship and their
level of satisfaction with the relationship. Consumers' desire indirectly impacts on
retention intentions; hence service managers should be careful not to assume that
consumers' deliberate choice to participate in a relationship will routinely result in
loyalty (Maria et al, 2013).
1.1 Indian Automobile Sector at a Glance
At present, Indian automobile industry presents variety of models in various price
range and meeting the expectation of customers of all the segments and producing
vehicles as per international standards. Prior to liberalization Indian automobile
industry was dependent on foreign technology but after 1991 scenario in the industry
changed and Indian automobile manufacturers started manufacturing of vehicles with
latest technology. This gave big boost to the industry which became globally
competitive. After 1991 foreign automobile brands also entered the market and
increased the competition in the industry. The performance of the sector is given below
during 2011-2012.
Production: The cumulative production data for April-March 2012 shows production
growth of 13.83 percent over same period last year. In March 2012 as compared to
March 2011, production grew at a single digit rate of 6.83 percent. In 2011-12, the
industry produced 20,366,432 vehicles of which share of two wheelers, passenger
vehicles, three wheelers and commercial vehicles were 76 percent, 15 percent, 4
percent and 4 percent respectively (Siam,2013).
Domestic Sales: The growth rate for overall domestic sales for 2011-12 was 12.24
percent amounting to 17,376,624 vehicles. In the month of only March 2012, domestic
sales grew at a rate of 10.11 percent as compared to March 2011.Passenger Vehicles
segment grew at 4.66 percent during April-March 2012 over same period last year.
Passenger Cars grew by 2.19 percent, period. In March 2012, domestic sales of
Passenger Cars grew by 19.66 percent over the same month last year. Also, sales
growth of total passenger vehicle in the month of March 2012 was at 20.59 percent (as

Studies in Business and Economics - 31 -

Studies in Business and Economics no. 9(3)/2014

compared to March 2011). For the first time in history car sales crossed two million in a
financial year. The overall Commercial Vehicles segment registered growth of 18.20
percent during April-March 2012 as compared to the same period last year
(Siam,2013).
Exports: During April-March 2012, the industry exported 2,910,055 automobiles
registering a growth of 25.44 percent. Passenger Vehicles registered growth at 14.18
percent in this period. Commercial Vehicles, Three Wheelers and Two Wheelers
segments recorded growth of 25.15 percent, 34.41 percent and 27.13 percent
respectively during April-March 2012. Car exports crossed half a million in a financial
year. In March 2012 compared to March 2011, overall automobile exports registered a
growth of 17.81 percent. (Siam,2013).
2. Review of Literature
Stephen (2009) reviewed existing knowledge about older consumers and
decision making. They developed conceptual framework that incorporates the notion of
fit between individual characteristics, task demands and the contextual environment.
When the fit is high, older consumers use their considerable knowledge and
experience to compensate for the impact of any age-related changes in abilities and
resources. When the fit is relatively low, older consumers feel increased need to adapt
their decision making processes.
Alexender and Assaf (2010) examined the three-way interaction among
product-country image, product-origin congruency and product involvement on
consumers' product-related evaluations and purchase intentions. They found that
product-country image, product-origin congruency and product involvement interact on
product evaluations plays a differentiating role for consumers in a low involvement
situation, but a neutral role for consumers in a high involvement situation. Therefore,
when a company deals with less-involved customers, the country of origin image and
the congruency of the product origins are particularly important issues. Conversely,
when a company deals with more product-involved customers, product-origin
congruency has no differential influence on their product evaluations and behavioural
intentions to purchase.
Aradhna (2012) highlighted the sensory marketing as marketing that engages
the consumers' senses and affects their perception, judgment and behaviour. From a
managerial perspective, sensory marketing can be used to create subconscious
triggers that characterize consumer perceptions of abstract notions of the product.
Also, these sensory triggers may result in consumers' self-generation of (desirable)
brand attributes, rather than those verbally provided by the advertiser. The
understanding of these sensory triggers implies an understanding of sensation and
perception as it applies to consumer behaviourthis is the research perspective of
sensory marketing.

- 32 - Studies in Business and Economics

Studies in Business and Economics no. 9(3)/2014

IIona and Domen (2012) examined the consumer resistance literature, and
found that consumer parodic resistance a resistant form of play that critically
refunctions dominant consumption discourses and marketplace ideologies. Their
contribution is threefold: (i) demonstrate the role of parody in consumer resistance; (ii)
outline the subversively playful nature of parodic consumer resistance; and (iii)
demonstrate how parodic holiday celebration unsettles dominant discourses and
conventions.
Pavlos (2012) in his study found that corporate social responsibility including
environmental protection, treatment of employees, and charitable giving impacts the
sales performance of the company. The results of the study indicate that CSP
influences consumer-firm emotional attachment and that this attachment constitutes an
unrecognized meditational pathway in the CSP-loyalty link. The results identify the
moderating and strengthening role of altruism, need-for-activity, and esteemenhancement on the CSP-emotional attachment link. Finally, the study reveals that
attributions are likely to moderate the influence of consumer altruism.
Jha and Krishnana (2013) in their round table discussions focused on how
multinational companies from developed countries are operating in emerging markets,
facing challenges and introducing new techniques in their operations with innovation.
These companies are developing close relationships with other similar organizations,
co-creating with customers, empowering the staff and taking clean slate approach to
new product development. This has given them edge not only in the local market but
also in the global market.
Kumar and Pradhna (2013) advocated the need of software as a service
because the physical contact between the service provider and the customer is
minimizing. The service level agreements are the only means of a confidence building
between the service provider and customers. The service level agreements are
increasing day by day and these service level agreements are becoming complex and
challenging. The study highlights that current service level agreement must focus on
security, control and performance issues. In the current scenario more focus is
required on trust management, integration of regional languages and quality of service.
Seethamraju and Sunder (2013) described that Enterprise Resource
Planning(ERP) in the past have contributed to simplification, standardization,
integration and automation of processes but their influence on the companys ability to
build agility is ambiguous. The study suggests that integration of processes and
information across functional boundaries contributes to the improvement in the speed
of execution and enhances the ability to re-configure process components. This further
leads to improved visibility, centralization of control and improved decision making
process..
3. Objectives and Importance of Study
The study has been conducted keeping in mind the consumer buying process
with the following objectives:

Studies in Business and Economics - 33 -

Studies in Business and Economics no. 9(3)/2014

To identify the reason of purchasing car.
To know customer process of information search of product.
To examine the basis of evaluation of product.
To find out the factors of attraction for purchase of car.
To know their post purchase experience.
In the present time competition in the market is increasing day by day among all
st
industries and in all the areas of business operation. Marketing in the 21 century
derecognize the concept of national boundaries and throw open competition among
national and foreign brands. The automobile sector is one of the major contributors for
revenue generation for the central and state governments. The number of cars is
increasing on day to day basis as more and more people are buying or want to buy
car.
Hence, keeping this in mind the study became important to have insight about
the consumer buying decision process in the northern states. The study adds to
knowledge to the manufacturers of the cars in the region and also helpful to
understand the buying decisions process and factors of attraction for purchase of car.
The analysis part highlights the various factors of attraction for purchase and
significant buying variation among the owners of different brands.
4. Research Methodology
The study has been conducted in northern states comprising Punjab, Haryana,
Himachal Pradesh, Delhi and Chandigarh. The total 250 customers who have
purchased (Volkswagen, Hyundai, Maruti and Honda cars) were contacted for purpose
of study .However the responses of the 30 respondents were discarded due to
incomplete information filled by them in the questionnaire. Hence total 220 customers
were selected for data analysis purpose. Thus the study comprising 220 customers
(state-wise) includes 44 from Punjab, 41 belonging to Haryana, 45 in Himachal
Pradesh, 43 from Delhi and 47 in Chandigarh. The company-wise sample includes 56
customers of Volkswagen, 55 from Hyundai, 54 having Honda cars and 55 owning
Maruti brands.
The study is based on primary and secondary data. Kruskal-Wallis test has
been applied to know the significant differences among the respondents relating to
different factors of purchase. The test has been applied at assumed p-value =0.05. The
statements with less than 0.05 p-value are considered significant and those with pvalue more than the assumed value are considered to be insignificant.
5. Discussion and Results
The data collected has been analyzed to identify the main reasons, process
and method of information search, basis of evaluation of product, buying decisions:
factors of attraction and post purchase experience of the customers in the tables from
1 to 5. In table 1 and 2, the percentage have been calculated while Kruskal-Wallis test

- 34 - Studies in Business and Economics

Studies in Business and Economics no. 9(3)/2014

has been applied in the table 3 to 5 to know the significant differences among the
respondents relating to different factors of purchase. The test has been applied at
assumed p-value =0.05. The statements with less than 0.05 p-value are considered
significant and those with p-value more than the assumed value are considered to be
insignificant.
5.1. Reason of buying Car
The existing customers were enquired about the reasons of buying the car.
The responses in this regard are presented in table 1.
Table 1
Reasons

PB

HY

HP

CHD

DL

Total

a) Need of car

30(68.1)

36(87.8)

39(86.6)

32(68)

37(86)

174(79)

b) New product
in market

37(84)

22(53.6)

19(42.2)

34(72.3)

31(72)

c)
Family
Pressure/peer
group pressure

38(86.3)

34(82.9)

29(64.4)

39(82.9)

29(67.4)

d) For status in
the society

40(90.9)

37(90.2)

38(84.4)

37(78.7)

42(97.6)

e)Craze for the

product

29(65.9)

22(53.6)

24(53.3)

31(65.9)

27(62.7)

f)
Surplus
finances

31(70.4)

21(51.2)

23(51.1)

37(78.7)

34(79)

10(22.7)

9(21.9)

12(26.6)

8(17)

6 (13.9)

7(15.9)

6(14.6)

4(8.8)

3 (6.3)

2 (4.6)

5(11.3)

3(7.3)

2(4.4)

1(2.1)

2 (4.6)

44

41

45

47

43

g) Availability of
car
h) Sales person
influence
i)Follow up by
the company
N=

143(65)
169(76.8)

194(88.1)
133(60.4)
146(66.3)

45(20.4)
22(10)
13(5.9)
220

Source: own
Note: Abbreviations) PB-Punjab, Hy-Haryana, HP-Himachal Pradesh, CHD-Chandigarh, DL-Delhi.
Figures in brackets denotes %age of the respondents

ii)

Table 1 reveals that 88.1 per cent of the respondents purchased car to have
status in the society, which has emerged as the main reason of buying. This is
followed by need of car (79%) and Family Pressure/peer group pressure (76.8%).
State- wise analysis shows that 97.6 per cent customers from Delhi and 90.9 per cent
respondents from Punjab have purchased vehicle to have status in the society.
In Haryana 87.8 per cent followed by Himachal Pradesh (86.6%) admitted that
the purchase of car is need based. Family pressure and peer group pressure have
been stated another important reason of buying the vehicle by 86.3 per cent

Studies in Business and Economics - 35 -

Studies in Business and Economics no. 9(3)/2014

respondents from Punjab, followed by 82.9 per cent from Haryana. Craze for the
product have been listed important reason of purchase by the customers of Punjab
and Chandigarh (65.9%) in both the states. Further, surplus finances have also
emerged as one of the reason of purchase in the state of Delhi (79%), followed by
Punjab (70.4%). The other factors such as availability of car, sales person influence,
and follow up by the company have not been rated as the important reasons of the
purchase.
5.2. Information Search of the Product
The respondents were further asked to highlight the sources of collection of
information relating to the product. Table 2 shows their responses in this regard.
Table 2
Sources of
information
(a) Through market
Survey

PB

HY

HP

CHD

DL

Total

12(27.2)

14(34.1)

8(17.7)

11(23.4)

6(13.9)

51(23.1)

(b) Search on the

websites

24(54.5)

28(68.2)

29(64.4)

41(87.2)

37(86)

159(72.2)

(c) Visiting company

showrooms

44(100)

41(100)

45(100)

47(100)

43(100)

220(100)

(d) Test Drives

41(93.1)

38(92.6)

39(86.6)

42(89.3)

41(95.3)

201(91.3)

(e) Feedback of the

existing customers

27(61.3)

31(75.6)

38(84.4)

34(72.3)

36(83.7)

166(75.4)

(f) Information
brochures of the
company
(g) Advertising in the
Electronic/print media

22(50)

19(46.3)

27(60)

38(80.8)

34(79)

140(63.6)

11(25)

9(21.9)

12(26.6)

11(23.4)

14(32.5)

57(25.9)

(h) Trade fairs

8 (18.1)

10(24.3)

6(13.3)

6(12.7)

4(9.3)

34(15.4)

Source: own
Note: Abbreviations: PB-Punjab, Hy-Haryana, HP-Himachal Pradesh, CHD-Chandigarh, DL-Delhi. ii)
Figures in brackets denotes %age of the respondents

It is quite evident from Table 2 that all customers in all five states have
purchased car after visiting the company showroom only, followed and 91.3 per cent
customers have also taken the test drive before purchase. Area-wise analysis
indicates that 87.2 per cent from Chandigarh and 86 per cent respondents from Delhi
have also searched web-sites of the companies to collect product information. The
analysis further shows that 84.4 per cent customers in Himachal Pradesh followed by
83.7 per cent customers in Delhi have taken feedback from the existing customer.
Whereas the other sources like Information brochures of the company, advertising in

- 36 - Studies in Business and Economics

Studies in Business and Economics no. 9(3)/2014

the Electronic/print media, and trade fair have not been rated as an important source
of information by majority of the customers.
5.3.Basis of Evaluation of Car
The respondents were further asked to indicate the importance given to the
various factors for evaluation of the car on a five point scale. Mean scores have been
calculated and Kruskal-Wallis test has been applied to identify the significant
differences among the respondents owning different cars. Their responses are shown
in the Table 3.
Table: 3
Basis

Vol

Hyn

Hon

Mau

Average mean
Score

(a) Product Features

4.38

4.74

4.26

4.12

4.38

(b) Financial issues

4.19

4.13

3.74

3.56

3.91

(c) Brand image in market

4.66
4.61
4.41
4.72
4.60
(d) Pre-sales and post sales
4.41
4.37
4.62
4.29
4.35
services promised
(e)
Environmental
friendly
4.34
4.45
4.34
4.26
4.32
concerns
(f) Guarantee/warrantee or 4.69
4.85
3.37
2.95
3.97
other schemes
(g) Financing facilities
4.31
4.34
4.62
4.29
4.39
(h) Purchasing power
2.12
2.19
2.38
2.42
2.28
Source: own Abbreviations: Vol-Volkswagen, Hyn-Hyundai, Hon-Honda, Mau-Maruti

P-value

.074
.000
.038
.763
.006
.000
.764
.661

Table 3 indicates that most of the customer considered Product Features,

Brand image in market, pre-sales and post sales services promised, environmental
friendly concerns and financing facilities (mean score being more than 4 in all) as the
most important factors for evaluation of the car. Company-wise analysis shows that
customers of Volkswagen and Hyundai stated product features, financial issues,
pre-sales and post sales services promised, environmental friendly concerns,
guarantee/warrantee or other schemes, (mean score being high than Honda and
Maruti) as the most important factors for evaluation of the car. Whereas, Brand image
in market have been considered important for evaluation of car in case of Maruti and
financing facilities by Honda car owners (mean scores being highest).
K-W results reveals that there are significant differences among the
respondents relating to different brands with respect to the factors such as financial
issues and guarantee/warrantee or other schemes p-value being less than 0.05.

Studies in Business and Economics - 37 -

Studies in Business and Economics no. 9(3)/2014

5.4. Buying Decisions: Factors of Attraction
The customers were also enquired about the degree of emphasis they give to
various factors of attraction compelling them for purchase decisions. The information
in this regard is shown in Table no 4.
Table: 4
Factors
a) Brand Name/image of
company
b) Price of the car
c)Product differentiate from
competitors
products(looks/shape

Vol

Hon

Hyn

Mar

4.46

4.32

4.85

4.35

Average
mean score
4.49

3.73
4.52

3.52
3.68

3.48
4.63

3.61
3.95

3.59
4.19

d)Interior
and exterior 4.58
3.83
4.81
3.72
4.23
style/design
e) Safety
4.62
4.39
4.51
4.46
4.49
f) Mileage of the vehicle
4.63
3.66
4.70
3.73
4.18
g) Net work of the company 4.14
4.42
4.28
4.84
4.42
in the area
h) Availability of product
3.64
3.81
3.65
3.72
3.70
i) sales team influence
3.40
3.38
3.29
3.62
3.42
j)services differentiation
4.37
3.38
4.21
3.85
3.95
k) Brand loyalty (repeat 4.64
3.66
4.16
3.76
4.05
purchase)
l) Brand ambassador and 2.28
2.62
2.36
2.54
2.45
Advertising Basis
m) Discounts and other 3.33
3.80
3.86
4.32
3.82
schemes
Source: own Abbreviations: Vol-Volkswagen, Hyn-Hyundai, Hon-Honda, Mau-Maruti

P-value
.076
.025
.000

.000
.001
.000
.074
.659
.173
.000
.000
.024
.000

Table 4 shows that most of the respondents considered brand Name/image of

company, product differentiate from competitors products, interior and exterior
style/design, Safety, net work of the company in the area, and brand loyalty (repeat
purchase) as the important factors of attraction while taking buying decisions( mean
score being more than 4).
Company-wise analysis reveals that customers of Hyundai considered brand
Name/image of company, product differentiate from competitors products, Interior
and exterior style/design, mileage of the vehicle, and brand loyalty (repeat
purchase), as the most important factors of attraction for purchase decisions (mean
score being highest in comparison to others). Respondents of Volkswagen viewed
price of the car, safety, services differentiation, and brand loyalty (repeat
purchase), as the important factors of attraction for buying the car (mean score being
highest). Further, customers of Maruti have stated net work of the company in the
area, sales team influence, and discounts and other schemes, as factors of attraction

- 38 - Studies in Business and Economics

Studies in Business and Economics no. 9(3)/2014

to purchase the vehicle, whereas, respondents of Honda considered availability of
product as the reason to buy the car (mean score being the highest). The data also
reveals that the factor brand ambassador/advertising have not been rated high by the
customers.
K-W analysis shows that there are significant differences among customers
with respect to factors product differentiate from competitors products, interior and
exterior style/design, mileage of the vehicle, service differentiation and brand loyalty
(repeat purchase) as the p-values are lower than the assumed p-value of 0.05.
5.5 Post Purchase Experience
The surveyed respondents were asked to indicate the post purchase
experience with the companies. The responses given by them are presented in Table
5.
Table: 5
Experience
a)Purchase regrets
b)
Product
related
experience
c) non availability of
spare parts
d) service experience

Vol

Hon

Hyn

Mar
1.00
4.61

Average
mean score
1.10
4.52

1.19
4.63

1.22
4.32

1.00
4.52

4.42

4.91

4.48

4.69

.127
.072

3.72

3.22

4.06

.000

4.72

4.57

4.61

.076

e) Guarantee/warrantee 3.47
3.02
3.23
2.56
3.07
issues resolved
f) Any complaint during 1.10
1.23
1.36
1.17
1.21
one year
g)
Promptness
of 4.06
3.46
4.21
3.32
3.76
company to resolve issue
h)More Time taken than 3.66
3.42
3.54
2.68
3.32
expected to resolve issue
i)Product
4.55
4.42
4.63
3.34
4.23
recommendation
to
reference groups
J) Brand switching
2.01
2.12
1.86
2.42
2.10
Source: own
Abbreviations: Vol-Volkswagen, Hyn-Hyundai, Hon-Honda, Mau-Maruti

P-value

.004
.336
.000
.000
.000

.000

Table 5 shows that most of the respondents replied in positive manner with
respect to product related experience, and service experience (mean score being
more than 4). It has also been found that majority of the car owner do not have
purchase regrets.
Company-wise analysis reveals that customers relating to Volkswagen have
very positive product experience (mean score 4.63) followed by Maruti owners (mean
score 4.61). The majority of the respondents from Honda have experienced difficulties
due to non availability of spare parts (mean score 4.91 and highest) followed by

Studies in Business and Economics - 39 -

Studies in Business and Economics no. 9(3)/2014

Volkswagen owners (mean score 4.42). Whereas the customers of Maruti do not face
such problems (mean score being the lowest 3.22). It has also been observed that
majority of the customers have not faced any major product problems as the average
mean score about complaint is (1.21). Customers of Volkswagen appears to be
satisfied with guarantee/warrantee schemes offered by the company (mean score
3.47 being highest). Respondents belonging to Hyundai viewed that company have
promptness to resolve issue (mean score being 4.21), whereas, customers of
Volkswagen feels that company takes more time than expected to resolve the issue
(mean score 3.66) but customers of Maruti do not experience such issues (mean
score 2.68 being the lowest). Further, owners of Hyundai agrees for product
recommendation to reference groups (mean score 4.63) followed by Volkswagen
(mean score 4.55). With regard to brand switching the customers of Maruti felt that
they may go for changing the brand in future (mean score 2.42).
K-W analysis shows that there is significant difference among the customers of
different brands with respect to non availability of spare parts , promptness of
company to resolve issue, more Time taken than expected to resolve issue, product
recommendation to reference groups and brand switching as the p-values are lower
than the assumed p-value of 0.05.
6. Conclusions
The conducted study shows that most of the customers have bought car to
have status in the society under family pressure and peer pressure in Delhi and Punjab
whereas majority of respondents belonging to Himachal Pradesh have purchased the
vehicle on need based. It has also been observed that people of Punjab and Delhi had
surplus finance and wanted to spend for having status in the society. Almost all the
customers preferred to visit the company showroom for product evaluation purposes.
Further, it has also been found that most of the customer relating to Volkswagen and
Hyundai has evaluated cars on the basis of product features, financial issues, Presales and post sales services, environmental friendly concerns guarantee/warrantee
schemes. Whereas, brand image in market have been considered important for
evaluation of car by Maruti owners and financing facilities by Honda car owners.
Moreover, the study also reveals that customers of Hyundai considered brand image of
company, interiors and exterior style/design, mileage of the vehicle, and brand loyalty
as the most important factors of attraction for purchase decisions. Customers of
Volkswagen stated price, safety, services differentiation, and also brand loyalty, as the
reasons of buying the car. However, customers of Maruti purchased the car due to
good net work of the company, sales team influence, and discounts and other
schemes, whereas, respondents of Honda considered availability of product as the
reason to buy the car. Customers relating to Volkswagen have very positive product
experience followed by Maruti owners and respondents from Honda have experienced
difficulties due to non availability of spare parts.

- 40 - Studies in Business and Economics

Studies in Business and Economics no. 9(3)/2014

It has also been observed that majority of the customers relating to Hyundai
and Volkswagen appeared to more satisfied and better served than the customers of
Maruti and Honda. Though, owners of all brand studied have not faced any major
product complaint, even then Maruti and Honda customers needs more attention in the
areas where Volkswagen and Hyundai are serving better, especially to the area such
as promptness to resolve issue, better customer care services in pre-sales and postsales because this will lead to repeat purchase and customers will be more loyal
towards the product.
Hence, to survive in the market it also becomes important to have best
customer relationship marketing practices and serving them to utmost levels. Adoption
of modern management techniques with special emphasis on marketing practices and
continuous study of consumer buying behaviour would help the organization to take
lead over the competition.
The future study can be conducted by taking larger sample from other automobile
manufacturers also relating to other marketing aspects such as marketing mix strategies,
customer Relationship marketing, product life cycle or any other operational area relating to
marketing. The study can also be conducted in the same territory or other parts of the
country to have more insight knowledge about the customers. Further detailed survey on
the consumer buying models would also lead to more understanding about the
consumer purchase decisions process. The study has relevance to the marketing
Practitioners, decision makers, academicians, research scholars and automobile
manufacturers and its marketing departments to have insight of prevalent factors of
attraction in car buying decisions process by the consumers of northern region.
7.References
Alexander, Josiassen., Assaf. A., (2010), Country-of-origin contingencies: their influence on
consumer behaviour, Asia Pacific Journal of Marketing and Logistics,Vol. 22, no 3, pp.
294 313.
Andrea, Prez., Mara, del. Mar., Garca, de. Los., Salmones, Ignacio., Rodrguez, Bosque.
(2013), The effect of corporate associations on consumer behaviour, European Journal
of Marketing, Vol. 47, no, 1/2, pp. 218 238.
Aradhna, Krishna., (2012), An Integrative review of sensory marketing: Engaging the senses of
affect perception, judgement and Behaviour, Journal of Consumer Psychology, Vol. 22,
no. 3, pp. 332-351.
Chris, Storey., Matthew, Hughes., (2013), The relative impact of culture, strategic orientation
and capability on new service development performance, European Journal of
Marketing, Vol. 47 Iss. 5/6, pp.833 856.
Cova, Bernard., (1996), The Post-modern Explained to Managers: Implications for Marketing,
Business Horizone, issue (November-December), pp. 15-23.
Deirdre, Shaw., Terry, Newholm., Roger, Dickinson., (2006) , Consumption as voting: an
exploration of consumer empowerment, European Journal of Marketing, Vol. 40, no.
(9/10), pp. 1049 1067.

Studies in Business and Economics - 41 -

Studies in Business and Economics no. 9(3)/2014

Elena, Fraj., Eva, Martinez., (2006), Environmental values and lifestyles as determining factors
of ecological consumer behaviour: an empirical analysis, Journal of Consumer
Marketing, Vol. 23, no. 3, pp.133 144.
IIona, Mikkonen., Domen, Bajde., (2013), Happy Festivus! Parody as playful consumer
resistance, Consumption Markets & Culture, Vol.16, no. 4, pp. 311-337.
Jha, S.T., Krishnana, R.T., (2013), Local Innovation: The Key to Globalization, IIMB
Management Review, Vol. 25, no. 4, pp. 249-256.
Kumar,V., Pradhan, P.,(2013), Role of Service Level Agreements in Saas Business Scenario,
IUP journal of Information Technology, Vol. IX, no. 1, pp. 64-76.
Leonidas, C., Leonidou, Constantinos., N, Leonidou., Olga, Kvasova., (2013), Cultural drivers
and trust outcomes of consumer perceptions of organizational unethical marketing
behavior, European Journal of Marketing, Vol. 47, no. 3/4, pp. 525 556.
Marylyn, Carrigan ., Ahmad, Attalla.,(2001), The myth of the ethical consumer do ethics matter
in purchase behaviour, Journal of Consumer Marketing, Vol. 18, no. 7, pp. 560 578.
Maria, M. Raciti., Tony, Ward., Tracey, S. Dagger.,(2013), The effect of relationship desire on
consumer-to-business relationships, European Journal of Marketing, Vol. 47, no. 3/4,
pp. 615 634.
Pavlos, A. Vlachos., (2012), Corporate social performance and consumer-retailer emotional
attachment: The moderating role of individual traits, European Journal of Marketing,
Vol. 46, no. 11/12, pp. 1559 1580.
Scott, B. Follows., David, Jobber., (2000), Environmentally responsible purchase behaviour: a
test of a consumer model, European Journal of Marketing, Vol. 34, no. 5/6, pp. 723
746.
Seethamraju,,R.,
Sundar, D.K.,(2013), Influence of ERP system on Business Process
Agility, IIMB Management Review, Vol. 25, no. 3, pp. 137-149.
Society of Indian Automobile Manufacturers (siam)., (2013), Annual report of Indian automobile
sector.
Stephen, M.Ross., Henry, B.Tippie., Lee, Kong.Chian.,(2009), Consumer decision making and
aging, Current knowledge and future direction, Journal of Consumer Psychology, Vol.
19, no. 1, pp. 2-16.
Stuart, Roper., Robert, Caruana., Dominic, Medway., Phil, Murphy., (2013), Constructing luxury
brands: exploring the role of consumer discourse, European Journal of Marketing, Vol.
47, no. 3/4, pp. 375-400.

- 42 - Studies in Business and Economics