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A Study of Consumer Preference For Motorbike Features Among Youths in Bangalore City

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“A Study of Consumer Preference for Motorbike Features
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among Youths in Bangalore City”

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Submitted By
Nikhil Fuljan
1 MBA ‘N’

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1021436

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Research Extract

Though preferences, expectations and experiences which build up opinion of


customers, vary from individual to individual, a general trend or an average pattern
reveals a lot of insight, collectively as well.

To get and understand the grass root level real picture of consumer preference of
different motor bike features among the motorcyclists of Bangalore city, the researcher
planned to conduct a detailed study on the same. An extensive research titled “A Study
of Consumer Preference for Motorbike Features among Youths in Bangalore City”
was conducted under a statistical frame work. To go about the research work a clear
statement of the problem was defined, based on which the objective for the research
work were framed.

A set of literatures was reviewed for the purpose of identifying and understanding those
contributions already made in the area. These literatures were reviewed from various
libraries and by surfing the net. Significant benefits were derived from the literatures
reviewed in order to proceeding further with the research work.

A suitable research methodology was adopted in conducting the research work. To


select a particular tool for data collection, the researcher had adopted the exploratory
research method. A sample size of 100 bike riders from Bangalore city was selected
through simple random sampling method.

A detailed questionnaire was developed for the collection of primary data as a part of
the instrumentation technique after a lot of pilot studies. The questionnaire was
designed on the basis of the objective of the study. The questionnaire so developed
was distributed to the respondents who were selected through sample survey to collect
the required data. Face to face, in depth interviews were also conducted to collect the
required data. Secondary data for this study included information’s from magazines,
newspapers and telephonic conversation conducted with respondents wherever
necessary.

The next step in the research work was the systematic presentation and scientific
analysis of the data. The data collected was classified and tabulated in an analytic
fashion in order to get deeper insights. Comprehensive frequency analysis were
conducted for each question and represented in the form of illustrative charts as well.
Conclusions from the analysis were derived after thorough slice and dice of data to
arrive at meaningful interpretations, where in it was concluded that though the
customers were more or less satisfied with the features provided by the various
motorbikes, some of the riders were not really delighted.

The researcher also provided some valuable recommendations in order to cash-in


various improvements opportunities.

The researcher has also laid down a road map through suggestions about those
relevant areas that have remained untouched or out of scope in this study due to
constraints of time and resource. The suggestions for further study will help the future
researcher to probe deeper in order to get valuable insights on certain other aspects as
well that have remained unanalysed.

General Introduction

The two-wheelers market has had a perceptible shift from a buyer’s market to a seller’s
market with a variety of choices. Players will have to compete on various fronts namely
pricing, technology, product design, productivity, after sale service, marketing and
distribution. In the short term, market shares of individual manufacturers are going to be
sensitive to capacity, product acceptance, pricing and competitive pressures from other
manufacturers.

All the three segments, motorcycles, scooters and mopeds have witnessed capacity
additions in the last one year and it will continue in the upcoming period as and when
Honda opens a local subsidiary. Over this period, only the motorcycle segment is
expected witness higher demand vis-à-vis supply, while the scooters and mopeds
supply will outstrip demand.

As incomes grow and people feel the need to own a private means of transport, sales of
two-wheelers will rise. Penetration is expected to increase approximately to more than
25% by 2012.

The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sales are expected to increase by 20% as compared to 1%
growth in the scooter market and 3% by moped sales respectively for the next two-
years.

Background of the Study

We come across a very wide spectrum of people related to industry some of whom are
fortunate enough to hop around all the motorcycle makers in India. Fortunately they are
probably the only ones next to the employees who are likely to know accurately the
actual scenario inside the company and all about the products.

Unfortunately the customer’s situation in a huge and diverse country like ours is very
dicey and difficult to predict. Before the researcher takes up a specific research project
in hand, let us assess the present situation in the motorcycle industry. The salient
features are as follows:

1)     Global competition in domestic market.

2)     Increasing market fragmentation

3)     New model expectation on a regular basis

4)     Demand forecasting being difficult


5)     Early birds gets bigger share

6)     High quality and low cost expectation 

The customer segmentation / description / brand are given below: 

1   Followers      50%    Conservative                  


Hero Honda, TVS
2   Fans           15%    Faithful to the brand           
Yamaha
3  Showy          10%    To impress                           
Yamaha, Hero Honda
4 Easy           5 %     Dad’s money                       
Kawasaki
5     Conscious      20%    Value for money                 
Yamaha, Kawasaki

Source: Overdrive, Volume 26, 12th August 2010

Statement of Problem

The problem that the researcher is trying to address is to understand the customer
satisfaction and preference of different motorbike features across the different segments
of motorbikes available. This study is intended not only to get the ground level real
picture of customer preference benchmarks but also to be cognizant about the
expectations of potential future customers.

This study will also help us to recognize how important a performance metric like
mileage is significant as against power among the motor bikers of the Bangalore city.

Objective of the Research

The objective of the research flows naturally from the problem statement, providing
specific, concrete, and achievable goals. The research objectives are the basic
guidelines to carry out the project. These also help in evaluating the project proposal
and, ultimately, the final report. The specific objectives of the researcher are given
below:
 To get and understand the grass root level real picture of consumer preference of
different motor bike features among the motorcyclists of Bangalore city.

 To get a first hand knowledge of customer expectations about certain motor bike
features by segments of motorbikes.

 To statistically test whether the average motorcyclist on the roads of Bangalore


city is inclined towards mileage or power.

 To develop a scientific, predictive model through multivariate statistical analysis


in order to predict the likelihood of a new buyer to prefer a mileage bike against a
power bike.

To provide a mechanism to suggest an optimal choice of bike to a new bike purchaser


after he expresses his needs in the form of answers to certain questions related to
motor bike features

Scope of the Study

The scope indicates the boundaries or areas covered under the study. The study was
conducted in Bangalore city through sample survey. Areas like Jayanagar, Majestic,
Indira Nagar etc were chosen for an extensive research with motorbike riders.

Mainly 4-stroke bikes were part of this data driven research across all the segments like
Premium, Power, Cruiser, Executive, Standard and Economy.
Methodology

Methodology here refers to the process that the researcher has followed to review the
literature relevant to the research.

Actual Collection of Data

Data means information expressed in measurable or quantifiable form. There are two
types of data used in this project study and those are:

1. Primary Data
2. Secondary Data

Type of Research

Research design is a detailed blue print used to guide a research study towards its
objectives. The process of designing a research study involves many inter related
decisions. The most significant decision is the choice of research approach as it
determines how the information will be obtained, analysed, presented and documented.

Descriptive research is appropriate in those areas of study where the data available is
limited. In most other studies exploration is the first stage of a project and is used to
arrive at the hypothesis
.
Sampling Technique

The basic idea of sampling is that by selecting some of the elements in a population, the
researcher can draw conclusions about the entire population. The population element
being the subject on which the measurement has been taken taken. Therefore, sample
is a representative fraction of the population.
The researcher while carrying out this study adopted the one of the most popular
sampling techniques for domestic research, better known as “Stratified Random
Sampling Technique”. On the other hand, Random sampling is a good technique
when there are comprehensive lists available of the target population.

Sample Size

Considering the large number of young Motorcyclists in Bangalore, the researcher has
taken one hundred sample points through stratified random sampling schema from
Bangalore city.
Questionnaire was first checked with few sample respondents to check whether the
questions were leading to objective accomplishment. Then questionnaire was partially
modified by adding, deleting, reforming few questions and again revaluated. The data
collection kick started after confirming the objectivity of the results derived from the
responses to the altered questionnaire.

Four areas had been selected and respondents were contacted for information.

SAMPLE
GEOGRAPHICAL AREA SIZE
Majestic 25
Indira Nagar 25
Jayanagar 25
JPNagar 25

Limitations of the Study

 Due to time and resource constraints the study was confined to only100 sample
points. Though the sampling was done scientifically, yet a sample as small as
100 compromises to some extent with the representativeness of the original
population.
 Only 4 strategic geographical areas were chosen to carry out the sample survey,
the assumption being that these will represent the true Bangalore bike
population.

 The study was confined to the city of Bangalore only, which in turn may have
incorporated the regional biases regarding motorcycles in comparison to the
national scenario.

 The analytical tools and techniques used for data collection, analysis may have
their own limitations.
Analysis:

CROSS TABLE : Bivariate Analysis of Response (Mileage or Power) with


Occupation

Responses vs Self
Occupation Business Executive Employed Student Total
Mileage 14 18 11 22 65
Power 9 11 8 7 35
Total 23 29 19 29 100

Analysis:
Out of the respondents who had Mileage bikes,
 21.54% belonged to Business Occupation
 27.69% belonged to Executive
 16.92% belonged to self employed and
 33.85% belonged to student
Out of the respondents who had Power bikes,
 27.1% belonged to Business Occupation
 31.43% belonged to Executive
 22.86% belonged to self employed and
 20.00% belonged to student
Out of the respondents who were in Business,
 60.87% had mileage bikes
 39.13% had power bikes
Out of the respondents who were Executive,
 62.06% had mileage bikes
 37.94% had power bikes
Out of the respondents who were Self Employed
 57.89% had mileage bikes
 42.11% had power bikes
Out of the respondents who were Students
 75.87% had mileage bikes
 24.13% had power bikes

Table showing Importance of Mileage to the Respondents

Imp of Mileage Frequency Percentage


Low 6 6%
Medium 60 60%
High 34 34%
Grand Total 100 100%
Analysis:

Within the respondents


6% gave low importance to mileage
34% gave high importance to mileage and
60% gave medium importance to the mileage

Interpretation:
The majority of the respondents gave medium importance to mileage which means that
the average motorcyclist on the streets of Bangalore not only desired great mileage but
also expected an equally good engine performance through enhanced power besides
host of other improved features in their motorbikes. Mileage is not necessarily the only
metric to judge a bike’s performance.
Table showing the Satisfaction level of the Respondents

Satisfaction Frequency Percentage


Dissatisfied 10 10%
Satisfied 61 61%
Very Satisfied 29 29%
Grand Total 100 100%

Analysis:
Among the respondents of the sample survey,
61% were satisfied
29% were very satisfied
10% were dissatisfied with their respective motorbikes.

Interpretation:
Satisfaction is a subjective experience and usually varies from person to person.
Majority of the respondents were more or less satisfied with the overall performance of
their bikes. Yet, the small group of dissatisfied customers indicates that there were a lot
of scopes for improvements to deliver complete customer satisfaction or rather
customer delight. More customer centric approach and better technological innovations
will help to provide real value for money to the highly esteemed customers.

Table showing Average Mileage of the motorbike riders

Avg_Mileage Frequency Percentage


25-40 6 6%
40-55 50 50%
55-70 44 44%
Grand Total 100 100%
Analysis:
Among the 100 respondents covered in the sample survey,
6% of the respondents got mileage of 25 to 40 km from their respective bikes
50% of the respondents got mileage of 40 - 55 km from their respective bikes
And 44% of the respondents got mileage of 55-70 km from their respective bikes

Interpretation:
More powerful bikes usually gave lesser mileage. In general, the power bikes were in
lesser proportion than mileage bikes. Most of the riders desired a balance and
reasonable blend of mileage and power and that’s why 50% of the respondents liked
the mileage of 40-55 km.

Table showing Fuel Efficiency of the bikes of the Respondents

Fuel_Efficient Frequency Percentage


No 30 30%
Yes 70 70%
Grand Total 100 100%

Analysis:
Among the respondents on whom the sample survey was conducted,
30% were not happy about the fuel efficiency of their respective bikes
70% seemed to be quite contended with the fuel efficiency aspect of their respective
bikes.

Interpretation:
Fuel efficiency was one of the main features of a bike, which an average motorcyclist
would look for. As expected by intuition, majority of bike riders in the city of Bangalore
desired fuel-efficient bikes.
Table showing Performance of Engine of the Motorbike

Engine Performance Frequency Percentage


1 37 37%
2 52 52%
3 11 11%
Grand Total 100 100%

1 = Excellent; 2 = Good; 3 = Fair; 4 = So-So; 5 = Bad

Analysis:
Among the respondents, on whom the sample survey was conducted,
37% had voted for excellent engine performance of their respective bikes
52% had voted for good engine performance of their respective bikes
11% had voted for satisfactory engine performance of their respective bikes

Interpretation:
Majority of the motorcyclists in the city of Bangalore were satisfied with the performance
of their respective bike’s engine. Compared to mileage bikes, power bikes had
comparatively better engine performance.

Conclusion and findings from the Analysis

1) Executives and Students both had equal share in the pie of motorbike market of
Bangalore. The Self-Employed segment seemed to have a bit of lower proportion
compared to the other segments.

2) Mileage bikes were more popular than the Power bikes across all sections of
occupation. Mileage bikes were the most well-liked by the Students, may be due
to the comparatively lower cost where as Self-Employed were relatively fond of
Power bikes.
3) The most common Age Group among the motorcyclists in the Bangalore city was
25 to 30 years. The motorcyclists in the age band of 18 to 25 years are fast
catching up trailing only by 4%, thanks to the popularity of motorbikes among the
students.

4) Motorcycling is mainly a young age phenomenon. The Age band of 25-30 years
is the sweet spot for bike manufacturers be it the Mileage segment for the Power.
As expected intuitively, the popularity of the power bikes decrease with the
higher age groups. The youngest lot however has a more mileage bike inclination
may be because of the relative cost advantage.

5) Almost two third of the Motor bikers in Bangalore city had a biking experience of
at least 3 years, which demonstrated the enormous popularity of bikes which in
turn signified the huge potential market in this city

6) The majority of the respondents gave medium importance to mileage which


means that the average motorcyclist on the streets of Bangalore not only desired
great mileage but also expected an equally good engine performance through
enhanced power besides host of other improved features in their motorbikes.
Mileage is not necessarily the only metric to judge a bike’s performance.

7) Mileage was one of the most desired aspects for Motor bike riders in the city of
Bangalore. Most of the respondents attached medium importance to mileage
which indicated that besides mileage there were loads of other features that
helped to form an opinion of any motorcyclist about a bike. Only very few
respondents were not bothered about low mileage issue clearly indicating that
this group was more interested in power with smooth and delightful riding.

8) Higher the gear, higher the possible speed of riding. Given the traffic scenario
within the city limits of Bangalore, a moderate speed was what motorcyclists
were comfortable with.
9) Among the 100 sampled motor bikers, more than 70% rode with an average
speed of more than 35 km/hour, a descent speed within city limits given the
traffic situation of the Bangalore city.

10) Majority of the motor bike riders thought pick up is reasonably important to them.
Liking sensible pick up meant assigning significance to power features of the bike
but the catch being the mileage lovers want a logical balance between the two.

11) In general, Pick Up is inversely proportional to Mileage. Power bikes has


comparatively better pick up than the mileage bikes. The Motorcyclists of
Bangalore wanted a logical combination of both power and mileage to get the
optimum returns.

12) Most of the respondents used the bike mainly for commuting between their
residence and workplace. On an average, the motorcyclists in Bangalore city
travelled at least 25 km everyday, which was a descent distance as far as city
travelling is concerned.

13) Satisfaction is a subjective experience and usually varies from person to person.
Majority of the respondents were more or less satisfied with the overall
performance of their bikes. Yet, the small group of dissatisfied customers
indicates that there were a lot of scopes for improvements to deliver complete
customer satisfaction or rather customer delight. More customer centric approach
and better technological innovations will help to provide real value for money to
the highly esteemed customers.
Recommendations

Consumer satisfaction is viewed as an integral part of the total quality of value


delivered. Every player in the motor bike industry is fighting out for its share of the pie
through improved and unique product features and quality of service. Based on the
detailed data driven research and analysis the following recommendations have been
made by the researcher.

 Special focus of marketing should be provided to occupation based different


segments to push up the market share. The self employed segment for example
constitutes only 19% of the motor biker population of the city which illustrates
immense untapped potential. Focussed target marketing initiatives can provide
great results.

 The popularity of bikes diminishes drastically as the age of customer increases


especially after the age of forty years. Designing easy to handle, comfortable to
ride and cheap bikes may help to cut a bit into the low end car segment.

 Since the demand in the market is for a high mileage bike with excellent pick up
and powerful engine, a lot of thrust should be put into research and development
to innovate that technology. The technological advancement should be the only
constant to provide value to the customers.

 Since good driving practices can lead to a consistent performance of the bike
besides an excellent mileage, the customers should be made aware of the good
driving practices and fuel saving tricks as add-on.

 Different champion and challenger strategies should be constantly tried out in


order to constantly improve the marketing, distribution as well as sales initiatives
besides after sales services.
References:

 All the primary data were collected through questionnaires through detailed
interaction with each respondent.
 http://www.autocarindia.com
 http://www.overdrive.in/
 http://www.wheelsunplugged.com/
 http://www.bsmotoring.com/index2.php
 http://www.automobileindia.com/consumer-guide/auto-news.html
 http://corp.credoreference.com/
 http://www.booknews.com/reference_and_research.html
 http://www.refdesk.com/instant.html
Questionnaire
Dear Sir/Madam,
I am a student of first year M.B.A from Christ University of Management, conducting
market a survey on “Consumer Preference for Motor Bike features among Youths
in Bangalore City.” I would be grateful to you if you could spare a few minutes in filling
up this questionnaire.

+++++++++++ Personal Details-Optional ++++++++++++++

Name:

Address:

E-Mail:

Phone:
+++++++++++++++++++++++++++++++++++++++++++

Please tick () in appropriate boxes:

1. Occupation

 Student  Self Employed

 Executive  Businessman

 Others specify………………..

2. Age Group

 18-25  25-30  30-40  40-45

3. How long is your biking experience? (In months): ……………………

4. How important is your bike-mileage to you?

 Low  Medium  High

5. What is your favourite riding gear in Bangalore City?

2 3 4 5
6. What is your average riding speed in Bangalore City? (In km/hour)

 25-35  35-45  More than 45

7. How important is pick-up to you?

 Low  Medium  High

8. Your average Travel Kilometres per day? (In Kilometres):

……………………….

9. Are you satisfied with the performance of your bike?

 Very satisfied  Satisfied  Dissatisfied

10. Rank the riding comfort of your bike.

 Excellent  Good  Satisfactory  Poor

11. Average Riding Hours per day? (In Hours): ………………….

12. Your motorbike brand (Company & Model)?


[E.g. Bajaj Pulsar, TVS-Victor etc.]

…………………………………………………………….

13. What is your bike’s average mileage?

25-40  40-55  55-70

14. How often you carry any other person on your back seat (Pillion Rider)?

 Rarely  Sometimes  Most of the time

15. How do you best describe your motorbike?

 Power Bike  Mileage Bike


16. What is your opinion about your bike’s maintenance cost?

 High  Moderate  Cheap

17. Do you think your motorbike is fuel-efficient?

 Yes  No

If No, Which bike will be fuel efficient in your opinion?

……………………………………………………..

18. Your bike’s on road price?

 Less than 40,000  40,000- 50,000  50,000 - 60,000  More than 60,000

19. Rank the following features of your bike in a scale of 1 to 5, 1 being excellent
and 5 being bad

Engine 1 2 3 4 5

Clutch/ Gearbox 1 2 3 4 5

Handling 1 2 3 4 5

Braking 1 2 3 4 5

Rider Comfort 1 2 3 4 5

Pillion comfort 1 2 3 4 5

Value for Money 1 2 3 4 5


20. Are you satisfied with the safety measures of the bike?

 Yes  No

If No, which bike is the best safety bike according to you?

………………………………………………………..

21. Do you feel bored / irritated in shifting gears of your bike?

 Yes  No

If yes, which types of bike you want?

………………………………………………………….

22. Do you wish to switch over to any other Brand?

 Yes  No

If Yes, why?

……………………………………………………….

+++++++++++++++++++++++++ Thank You +++++++++++++++++++++++++

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