IJEMR January 2017 - Vol 7 Issue 01 - Online - ISSN 22492585 Print - ISSN 2249-8672

Customers Preference towards Car Purchase

*S. Gowri
**Dr. S. Mohan

*Research Scholar in Commerce, SKSS Arts College, Tiruppanandal 612 504

**Principal, SKSS Arts College, Tiruppanandal 612 504

Abstract
Customer preference varies from person to person. Thus, success of a business
depends on how efficiently they identify their customers taste and preference and
manufacture goods in accordance with their customers expectations. Thus, in this study an
attempt has been made to identify the factors considered by a customer before choosing a car.
The result of the study disclose that majority of customers are prefer four wheeler considering
mileage offered by the car, transmission, availability of spares etc.
Keywords: Car Preference, Customers, Fuel consumption, Automobile Industry
Introduction
The Indian passenger-car industry has been on the continuous growth due to healthy
progress of economy and development of road facilities supported by easy vehicle financing for
prospective buyers. The small car segment has exhibited robust growth in production and
sales over the last few years right from the launch of Maruti Udyog Company in 1983. As
such, for many years, small cars have accounted for a major part of the revenue of the fast
expanding passenger-car market. Today, business around the world recognizes that the
consumer is the king. Knowing why and how people consume products helps marketers to
understand what types of product are needed in the market place, or how to attract
consumers to buy their products. The era of liberalization, privatization and globalization has
brought changes in society and lifestyle of people. Manufacturers can justify their existence
only when they are able to understand customers wants and satisfy them. The modern
marketing concept for successful management of a firm requires marketers to consider the
customer as the focal point of their business activity. Although it is important for the firm to
understand the buyer and accordingly evolve its marketing strategy, the customer continues
to be an enigma sometimes responding the way the marketer wants and on other occasions
just refusing to buy the product from the same marketer. The study of customer behaviour
focuses on how individuals make decision to spend their available resources. That includes
what, why, when, where, how often they buy it, how they evaluate it after the purchase and
the impact of such evaluation on future purchase. More than ever before, the need to
understand customers and customer behaviour has become a hot topic around the globe. The
study of consumer behaviour also includes an analysis of factors that influence purchase
decisions and product use.

Review of Literature

Mathankumar., V and Dr.R.Velmurugan (2015) in their study observes that customers

may prefer a car based on look and style, transmission, availability of spares etc. Vinoth
(2012) observes that easy maintenance, more mileage and an easy availability of spares
motivates the customer to prefer Maruti Suzuki swift car. Roheenal Nagpal(2010) finds that
easy to park, light steering, durability of interiors, convenience, and easy handling are the
features consider by the women before purchasing the car. Karthigai Prakasam (2010) reveled
that consumers prefer small cars due to low cost, better appearance and more mileage.
Ranganathan (2009) finds that the mileage is the important criteria considered by the
consumer while purchasing the car. Keerthi (2009) ascertains that advertisement on television

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 IJEMR January 2017 - Vol 7 Issue 01 - Online - ISSN 22492585 Print - ISSN 2249-8672

significantly influence the consumer to prefer car. Clement Sudhakar and Venkatapathy
(2009) find that friends influence a person in choosing of small sized and mid sized cars.
Statement of the Problem
Customers may ascertain factors before choosing a four wheeler. Such factors may differ
from person to person. Few customers choose a car based on brand name and few may choose or
prefer a car based on mileage. Customer prefer towards four wheelers depends on safety and style,
(Katiravan, 1997) product quality of a car influences a customer to own a car, (Peer
Mohammed, 1998) competitive pricing and service quality influences a customer to purchase a
car, (Bhuvana Ramalingam, 1999) customer will give importance to price, while purchasing
the car, (Dharama Raj, 2000) opinion that design, fuel efficiency and after sales service
influence a customer to prefer a car. These studies raise the following question (1) what are
the important factors considered by a customer while preferring a car?
Objective of the Study
This study has been made to examine the reason for preferring a four wheeler by the
customers
Methodology
Data: Data required for the study have been collected through questionnaires. Questions
pertaining to Customers Preference towards Cars have been included in the questionnaire.
Sampling: By adopting convenience sample method, 520 respondents have been selected for
the study.
Study Area: The present study confined to Thanjavur District.
Tools: Data have been analyzed by making use of Friedman Rank Test.
Analysis and Interpretation
To identify the factors considered by a customer before purchasing a car Friedman
Rank test is employed.
Table: Factors Considered before a Car Purchase Friedman Rank Test
Mean
Preference Rank
Rank
Look and style 11.05 5
Fuel consumption 12.27 1
Pulling Power (bhp) 10.62 8
Seating Capacity 9.98 11
Riding Comfort 7.69 18
Safety Features 7.86 17
Suitable to Indian Roads 10.83 6
Speed 10.13 10
Shock Absorber 10.53 9
Transmission 11.61 2
Tyre mileage 10.63 7
Braking efficiency 9.34 13

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 IJEMR January 2017 - Vol 7 Issue 01 - Online - ISSN 22492585 Print - ISSN 2249-8672

Mean
Preference Rank
Rank
Availability of Spares 11.53 3
Low Smoke Emission 9.76 12
More number Service Stations 8.95 16
Low Maintenance Cost 11.36 4
Cost Of Spares 9.2 14
Warranty period 7.65 19
High Resale Value 9.02 15

From the Friedman rank test it is ascertained, Majority of customers are prefer four
wheeler considering mileage offered by the car, transmission, availability of spares etc.
Suggestions
Customers give much more importance to mileage before choosing a car. Hence, it is
suggested to manufacturers to spend huge among on their Research and Development
activities for improving the mileage of the cars.
Customers equally give importance to look and style. Hence, it is suggested that
manufacturers keep on introducing new model cars without sacrificing on safety aspects.
Government authorities and manufacturers should take necessary steps that spare
parts available at the market are genuine. At the same, manufacturers should initiate
necessary steps to make available genuine spare parts at cheaper cost.
In order to reduce maintenance cost, customers are instructed to properly maintain
their car, by making use of free service check-ups. Apart from, manufacturers are suggested
to increase their free after sales service at their showrooms.
Indian road condition is not up-to the mark of foreign countries. Hence, manufacturers
have to design car, which is suitable to Indian road conditions.
To avoid air pollution, manufacturers have to design cars which offer low smoke
emission.
Time-taken for car service is high, when more number of customers simultaneously
delivers their car for service. In order to avoid delay, manufacturers may establish more
number of service stations in the needy area.
Currently, insurance companies demand to incorporate more safety features in the
newly manufacturing cars, in order to avail decent claim from insurance companies. Thus
manufacturers have to improve the safety features not only to avail insurance claim but also
to protect the invaluable life of their customers.
Manufacturers may attract new customers and retain their existing customers by
improving the satisfaction level of customers. Hence, in order to increase their satisfaction
level seating capacity may be enlarged and necessary shock-absorber to be incorporated in
accordance with Indian road condition.

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 IJEMR January 2017 - Vol 7 Issue 01 - Online - ISSN 22492585 Print - ISSN 2249-8672

Conclusion
Customer behaviour consists of all human behaviour which reflects in making
purchase decisions. An understanding of customer purchase decision enable manufacturers
to design or manufacturer cars according to customers desire, thereby their goal may be
attained. This study highlights the various factors which influence the consumer behaviour
towards four wheeler purchase decision and their behaviour. The findings of the study
mentions that majority of customers prefer four wheeler considering mileage offered by the
car, transmission, availability of spares etc.,
References
1. Mathankumar., V and Dr.R.Velmurugan (2015), Customer Preference towards Four
Wheelers, Journal of Progressive Research in Social Sciences, Vol.1, Issue 1, pp.5-11.
2. Vinoth (2012), A study on customer preference towards different brands of diesel cars,
Indian Journal of Marketing, Volume xxxvi, p.30.
3. Roheenal Nagpalin (2010), Small cars what do women expect from them, Indian Journal
of Marketing, February, pp. 3-8.
4. Karthigai Prakasam (2010), Consumer preference towards purchase of small cars,
journal of the Academy of Marketing Science, Vol. 2 (4), p.19.
5. Ranganathan (2009), Important criteria in purchasing the car, journal of the Academy of
Marketing Science, Vol. 2 (4), p.19.
6. Keerthi (2009), Impact of TV advertisement on consumers in buying four wheelers,
Journal of Product & Brand Management 7(4): pp275-290.
7. Clement Sudhakar J., and Venkatapathy R (2009), A Study on Automobile Purchase
Peer Influence in Decision Making, Indian Journal of Marketing, Vol.35, No.6, p.16.
8. Katiravan (1997), Customer preference towards Opel Astra cars, Apeejay Business
Review, Vol.5, No.1, p.19.
9. Peer Mohamed (1998), The passenger car industry of India-a study of market conditions
and brand selection, Journal of Marketing Research, Volume 47, p. 4.
10. Bhuvana Ramalingam (1999), Passenger car profile of Indian market, Journal of
Services Marketing, Vol. 13 No. 2, pp. 151-70.
11. Dhrama Raj (2004), Consumer survey on brand preference towards passenger cars in
Coimbatore, Journal of Consumer Research, Vol.2, p.28.

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