RESEARCH ON VARIOUS FACTORS INFLUENCING PURCHASE OF GEARLESS BIKES

K.RAMYA-1201082 G.V.ADITYA-1201114 K.ALEKHYA-1201080 SHARMEEN S.VIRANEE-1201095 M.VEROICA-1201119

EXECUTIVE SUMMARY:
India is the second largest producer of two wheelers vehicle in the world. In the last two years, the Indian two wheeler industry has seen spectacular growth as majority of Indians especially youngsters prefer these as most convenient means of transport. The objective of two wheeler industry is to sustain market share through satisfying customer needs and expectations. The manufacturers therefore, have to understand the real needs, wants, belief and attitude of customer towards the product and after sales service. A strong understanding of consumer buying behavior is required for sustenance and growth of the business. To get a first hand input I have taken response of customers (actual & potential two wheeler buyers) in the questionnaire. The analysis of data was done using chi-square test. I am hopeful the present study will positively contribute to two wheeler industry to understand the attributes of the product that customer expect from the company.

INTRODUCTION:
The two wheeler industry in India is one of the largest in the world and one of the fastest growing globally . India manufacture over 18 million vehicles ( including four wheeled vehicle ) every year . It is the world's second largest manufacturer of motorcycles, there are eight key players in the Indian market that produced 13.8 million units in the year 2010-11.At present the dominant products of the automobile industry are two wheelers with a market share of over 75% . The industry has attained a turnover of more than USD 35 billion & provides direct and indirect employment to over 13 million people. The Indian two wheeler industry has come a long way since its humble beginning in 1948 when Bajaj Auto started importing and selling Vespa scooters in India. Since then, the customer preferences have changed in favor of motorcycles and gearless scooters that score higher on technology , fuel economy and aesthetic appeal, at the expense of metal bodied geared scooters and mopeds. These changes in customer preference have had an impact on the fortunes of the lead manufacturers. The erstwhile leaders have either perished or have significantly lost market share, whereas new leaders have emerged. The two wheeler industry consists of three segments viz., scooters, motorcycles and mopeds. With an expanding market and entry of new players over the last few years, the Indian two wheeler industry is now approaching a stage of maturity. Previously, there were only a handful of two wheeler models available in the country. Currently, India is the second largest producer of two wheelers in the world. It stands next only to China and Japan in terms of the number of two wheelers produced and the sales respectively . There are many two wheeler manufacturers in India. The major players in the two wheeler industry are Hero Motor Corp., Bajaj Auto Ltd., TVS Motor Company Ltd., The Honda motorcycle and scooter India Pvt. Ltd., Suzuki motorcycle India Pvt. Ltd., India Yamaha motor Pvt. Ltd., Ectrotherm India Ltd.(Y o bikes) accounting for over 93% of the sales in the domestic two wheeler market. It is noteworthy that motor bike segment share is just below 80% of the total two wheeler market in India which is dominated by Hero Honda with a market share of 59% . Scooter segment market share is about 18% which is led again by Honda motorcycle and scooter India Pvt. Ltd. with a market share of 43%. The level of technology change in the motor vehicle industry has been high but, the rate of change in technology has been medium. Consumers are very important for the survival of the motor vehicle manufacturing industry . This research paper gives insight of the gearless two wheeler consumer preference in Hyderabad including the different brands, competition and the trends in the domestic sales. The paper also shows the oligopolistic nature of the Indian two wheeler industry and the propensity of the major players to increase their share. It is extremely important to analyze the state of competition to check whether a few firms may increase their dominance and also the implications of after sales services provided by the two wheeler firms to the consumers. RATIONALE OF THE STUDY: In India the growing economic well being is reflected in rising per capita GDP. This makes two wheelers more affordable. The Indian two wheeler industry is destined to grow rapidly and therefore, there is always the propensity of the key manufacturers aspiring to increase their share. The two wheeler industry in India is one of the largest in the

world and also one of the fastest growing globally .With an expanding market and entry of new players over the last few years, the Industry is now approaching the stage of maturity. Every year a large variety of two wheelers are introduced into the market. In today's competitive environment, many National and Multinational two wheeler industries have gained remarkably by taking notice of consumer preferences, innovative marketing strategies and sales promotion. In two wheeler marketing, relationship with consumer is very important and their cannot be good relationship unless we understand customer preferences well. In this regard a questionnaire war prepared so as to assess the consumer needs. The ever increasing number of two wheeler models will compel the industry to take notice of consumer buying behavior. This will enable industry to fulfill the customer's desire by giving him exactly what he wants in terms of brand popularity , price range, fuel efficiency , after sales service, model and color of the vehicle. In the present study we have made an effort to understand the fine aspects of consumer behavior . I strongly believe if two wheeler industries understand and cater to the demands of consumer it will develop into a beneficial preposition for both the two wheeler industry as well as the consumers. OBJECTIVE OF THE STUDY: This study focus on identifying the factors influencing the purchase of gearless bikes, the most sellable brands /models, customer needs/ inclination and the market demand of the two wheelers. The information on aforesaid factors will help manufacturer determine its manufacturing and marketing strategies for sustaining and growth of the business. The following were our main objectives: Which type of bike do people prefer geared or non-geared Why do people prefer buying a gear less bike Knowing what is the most important criteria for choosing a gearless bike Type of engine prepared petrol or electronic Preferences of gear less bikes based on age, gender, occupation Source of information which they rely on for information on gear less bike

RESEARCH METHODOLOGY:
The data was collected in the first quarter of the year 2013. In market research, exploratory research plays a similar role. Marketers have no machines to peer inside a decision problem, so they may use certain research techniques to open up the problem and look around. Researchers use these techniques, which they refer to collectively as exploratory research, with a single broad purpose: clarify the research questions that guide the entire research project. Importantly, the entire notion of exploratory research suggests that it precedes a larger, more formal research project. This is usually the case. The techniques we classify as exploratory generally provide information and insight to researchers as they prepare for larger research efforts such as surveys and experiments. In the present study we have used the primary data. A group of 120 respondents (Customers) from different areas of Hyderabad were selected. The group consisted of potential two wheeler buyers of different sex, age groups and financial status. A questionnaire with relevant multiple attributes was designed to generate the primary data. The respondents were asked to register their response in multiple options as per the nature of question. The data was tabulated as per attributes for the interpretation and analysis.The research is explorative Convenient sampling method is used. The potential two wheeler customers willing to respond to the questionnaire were identified. 102 customers out of two hundred approached volunteered for the response. So the sample size is 102 and the area of work is Hyderabad city .

DATA ANALYSIS
Data analysis for the given set of objectives is done using either percentage method. They are represented as pie charts and/or bar graphs. Since, the type of research is explorative; the in-depth analysis of the data was not done. Of the total sample, 102, the sample consists of Male sample population: 61 Female sample population : 41

This data shall be constant and the sample size of every gender based analysis shall be as above.

Objective 1: Preference of gearless bikes based on gender

After drawing the pie charts taking into consideration the data, we analyze the data by percentage method. The respondents were asked to give their preference of bike among geared or non-geared bikes. The following is the data obtained: 1) Male population: Number of respondents favoring percentage

Bike type

Geared Non-geared

40 21

66% 34%

Men

21, 34% 40, 66%

Geared

Non Geared

2)

Female population:

Bike type Geared Non-geared

No. of respondents favoring 4 39

Percentage 9% 91%

Objective 2: Reasons for choosing a gearless bike

The second important thing that we wanted to study was, regarding, what people believe was the most important criteria for people to choose a gearless bike. Observation: From the secondary sources of information, we have observed three prominent reasons for people choosing a gearless bike. They are1. Convenient for carrying luggage 2. Easy to learn to drive 3. Can be used by both, men and women at home, with ease

We have also given the respondents an option to give any other reason apart from the given, which they think, is important for choosing a gearless bike.

120 100 80 60 40 20 0 57

45 16
Convenient for carrying luggage Strongly agree Easy to learn to drive

Can be driven by both men and women at home with ease Disagree Strongly disagree

Agree

Neither agree nor disagree

The data analysis has been done with the help of data analysis in Microsoft Excel. The data is proj ected as a bar graph. The reason for choosing has been taken on x-axis and the population in y-axis. In this question, the respondents were given the option, and were asked to choose from a scale of most important to least important.

Objective 3: Criteria for selecting a gearless bike

Like the question above, this one too was a question with multiple option and asked to rate every option on a between most important to most unimportant.

Factors affecting the selection of a grealess bike and their importance levels
150 S 100 a 50 m 0 p l e Criteria for selecting s i z e Most important Important Neutral Unimportant Most unimportant

The above bar graph shows the analysis of the factors affecting the selection of a gearless bike and their levels of importance.

Objective 3: Preference of gearless bikes based on engine type

Here, the respondents were asked to give their preferences for a gearless bike based on the engine type i.e., either petrol run engine or electricity run engine. Then after taking the data into consideration, pie charts are drawn and the data is analyzed using percentage method. Engine type Petrol run engine Electricity run engine No of respondents favoring 87 15

Percentage 85.3% 14.7%

Engine type

15,14.7%

87,85.3%

Petrol run engine

Electricity run engine

Objective 4: Preference based on age

Preference of gearless bikes based on age is taken as another objective and the following analysis has been made.

Male Population
12 13 8 10 18-25 25-30 30-40 40-60

18

The above Pie chart depicts that men belonging to the age group of 40-60 prefer a gearless bike more than those of any other age group. It was also observed that men belonging to the age group of 25-30 have a least preference for a gearless bike.

Female population
0
5,12.1% 7,17.07% 11,26.8% 18,43.9%

18-25 26-30

31-40
41-60

The above Pie chart depicts that women belonging to the age group of 18-25 prefer a gearless bike more than those of any other age group. It was also observed that women belonging to the age group of 41-60 have a least preference for a gearless bike.

Objective 5: Preference based on Occupation

Analysis has also been made on the basis of the Occupation of the chosen sample.

Male population
12 3 15 5 10 14

Student Private company employee Government Employee Business Freelancer Retired

From the above pie chart, it is observed that most of the male population using a gearless bike are into business. And it is also noticed that freelancers and government employees have a least preference for gearless bike.

Female population
0 3 2, 2 15

Students Private company employee Government servant Home maker Business

10 2

Freelancer

From the above pie chart, it is observed that most of the female population using gearless bikes are students. And it is also noticed that women who are into business, free lancers and government employees have a least preference for gearless bikes.

Source of information people rely-on:

In our research, we tried to find out the source of information that people trusted the most. The choices that we gave were Newspaper, Peers, Internet, Consult experts and company personnel. It was observed that 13 out of the sample of 102 trusted newspapers as their source of information,56 out of 102 trusted their peers,48 out of 102 trusted the Internet, 29 out of 102 trusted consult experts and 23 out of 102 trusted company Personnel. This clearly proved that most of the customers rely on their peers for information or feedback of a gearless bike. This also concludes that Word of Mouth plays an important role in in creasing the sales of a gearless bike as this would have more effect on the person buying the product.

Most Owned Gearless bike: Out of the 102 responses it was observed that 27 owned a Honda Activa proving that it is the most trusted Gearless bike followed by Hero Honda Pleasure which is mostly used by college going students especially girls. Mahindra Dio, Tvs Wego, Suzuki Access, Mahindra Rodeo, Scooty, Yo Bike and Honda Aviator are a few other bikes that are considered when choosing a gearless Bike.

Findings:
When it comes to preference of gearless bike based on gender, we see that the 51% of men and 91% of women from our study prefer using gearless bike. And these people mostly rely on information from peers for purchasing gearless bike than any other source such as newspaper, internet, company personnel etc. And they prefer choosing gearless bike over geared bikes because both men and women can learn it with ease. Also 95% of population from our study says that they prefer petrol run engines over electrical run. For them Mileage and Engine Specifications is the most important criteria for choosing a gearless bike than colour,price, brand ,style, life expectancy, after sale value being less important. Women students and men who are into business prefer using gearless bike.

Limitations:
The sample which we have collected may not be the exact representation of our population because of time constraint and budget constraint as this study is restricted only to the city of Hyderabad (India). Also the responses collected from respondents may not be 100% accurate and may be influenced by various factors such as lack of time, convenience of the respondent. It may not be universally accepted as it has considered very less sample size.

Conclusions and Recommendations:

It is suggested and recommended that the advertisements of gearless bikes should mainly focus on bikes which can be used by both men and women at home and they should also focus on mileage aspect. Since most, of the people (56% of the study) rely on the peers as a source of information of a particular gear less bike, word of mouth plays a prominent role.