Marketing Research Assignment
By: Neeraj Dani
1. Problem Statement: The factors affecting sale of SUV cars in India.
2. Objective of Research:
a) The find out how determinant is milage of the vehicle while buying a SUV.
b) To examine if Indian market has potential for the sale of SUVs.
c) To find out if SUVs have any market or scope of sale in rural areas.
3. Literature Review:
a. Darla Sravan, Sampathrushi K, Vijay Kumar Sarakamu & Purba H. Rao conducted a study
named ‘Analysing Consumer Purchase Decision in Indian SUV Market’. The focus or the
agenda of the research was to find out the change in market of 4 wheeler due to change
in the perception towards purchasing four wheeler. The research highlights the
consumer behaviour while buying a Sports Utility Vehicle (SUV). The study saw that
despite of down trail of 4 wheeler market in India the SUV segment was growing. Also,
factors like attitude, personality & lifestyle were identified as a major factors about the
individuals for buying a SUV.
b. A study was conducted by Dr.M.Prasanna Mohan Raj, Jishnu Sasikumar & S.Sriram titled
‘A Study On Customers Brand Preference In Suvs And Muvs’. The study identified 6
interesting and deciding factors which influence the buying decision which include
Product Promotion, Trustworthiness, Sensitivity Of Maker To Customer Needs, Vogue Or
Trendy Appeal, Monetary Factor & Product Reliability. The study used convenience
sampling method where in quantity technique was used to collect the primary data. It
was important to note that the study focused on economy segment of SUVs with a
upper limit of 15 Lakhs INR.
c. Another study was conducted titled ‘Analysis of Research in Consumer Behavior of
Automobile Passenger Car Customer’ by Vikram Shende. The study saw that with the
increased disposable income in both rural & urban areas and easy availability of finances
the market and demand for 4 wheeler market has grown and specifically the market for
SUVs. The research highlights that there has been a significant rise the market for SUVs
in the rural areas. The research pointed out factors like disposable income, value for
money, safety and driving comforts being top determinant in buying a SUV. The study
also saw a fun factor and look good aspect while buying a SUV which was there not only
in the urban areas but also in the rural areas.
d. Rahul Singh along with Shiny Raizada concluded a research titled ‘ Customer Analysis of
Mid-Range Sport Utility Vehicle in India’ brought up new facts regarding the buying or
non buying of SUVs in Indian market. The study shows that the mileage given by the SUV
is very important in the economical range where as when the price of the SUV goes up
the mileage takes a back seat as a deciding factor. The study analyses the patterns,
behaviour and utility of mid ranged SUVs in Indian market. It also highlighted that
consumers are highly concerned and driven by looks design and features of an SUV than
anything else and these factors are looked upon most only when buying a SUV. The
study used a survey method to collect primary data and it stated that 75% + responded
associated SUV with a ‘feel good’ attitude.
e. Nikhil Monga Dr. Bhuvnender Chaudhary & Saurabh Tripathi concluded a research titled
‘Car Market And Buying Behavior- A Study Of Consumer Perception’. The study aims to
know what a customer (or a potential customer) thinks about a given brand of car and
what are the possible factors guiding a possible purchase. It also helps in measuring the
willingness of existing users of a car to recommend it to others. The study finds out
different factors influencing the buying decision in different areas of the country. In
some part of the country prices is deciding factor, in some part it is look and feel where
as other areas it is the family size. This study found that interiors of a SUV matter a lot in
the final buying decision irrespective if it is rural or urban areas. Maintenance cost
emerged as a new deciding factor but it was specially in the economic SUV. Since
economic SUVs are preferred by those who have bigger family and have budget
constraints.
f. A study was conducted by Mr.P.M.Subramanian & Dr.V.Muthu with the title ‘An
Analysis on Sport Utility Vehicles Development in India and Its Safety’. The study found
that the market for SUVs in India is the fastest growing in the passenger car segment.
The study also shows that SUVs have higher height and more weight than other vehicles
making them more prone to severe damages in case of accidents. There comes an
interesting fact that with increased awareness of road safety, the SUVs have started
becoming more safety centred rather than just style and power. People have started to
look for the safety features of an SUV almost at par with style and comfort. Also
research showed a think line between selecting a sedan and compact or an economical
range SUV. The size of the vehicle and the status associated with it is what makes a
sedan closely competitive to an compact SUV where people prefer the latter one. The
safety aspect of SUV is dominant in urban and sub urban areas while making the buying
decision where as people in rural areas are not much aware about this.
g. ‘Maruti Suzuki – Reigning Emperor of Indian Automobile Industry’ Gunjan Malhotra and
Soumyadeep Sinharay shows are the Indian automobile market took a shift in its
passenger car sector with the increased income and spending capacity of Indian
households. With number of SUVs in different range available in India the competition
got stiffer since both the buyers as well as sellers increased. However the demand for
economic or cheaper SUVs increased drastically. This was triggered by multiple earners
in a family and a bigger family size. Owning a SUV is always seen a prestigious act and
this triggered the sale of SUVs in upper middle class families. For them SUV was not
about features, power, style or comfort but it was about fitting them family in 1 car &
showing off their SUV to make themselves show rich. Also the survey conducted showed
similar results that people just wanted to own SUVs but in case of upper middle class
who bought economic SUVs for them after sales cost was an important factor while
making a buying decision. Since SUVs have heavy running so they require proper
maintenance for a smoother run so maintaining an SUV might become a burden thus in
this segment maintenance cost plays a important role.
h. Tanmay Chattopadhyay, Rudrendu NarayanDutta & ShradhaSivani concluded a research
on the topic titled ‘Media Mix Elements Affecting Brand Equity: A Study Of The Indian
Passenger Car Market’ to find out the marketing and the advertising aspect affecting the
buying decision of SUVs in Indian market. The study showed that different people
responded differently to different mediums of sales promotion and advertising and their
buying decision differed depending upon the quality of the marketing mix used to
pursue them. The study highlighted that specially for SUVs the quality of the marketing
mix played a greater role than the quantity. Also, it pointed out that Television Ads have
a greater 1st impact in case of SUVs. For repeat buyers any medium or advertising or any
marketing mix is less impactful since in that case the consumer prefers going by his own
experience or reviews by others when deciding to buy a SUV.
i. Another study conducted by Prateek Bansal, Kara M.Kockelman, WillSchievelbein,
ScottSchauer-West titled ‘Indian Vehicle Ownership And Travel Behavior’ highlighted the
scope of different segments of passenger vehicles in Indian market. The study showed
that India is a land of family and togetherness and in such a market SUVs have the
highest potential and growth rate. The Indian market has been able to come up with low
priced SUVs making it more affordable which was supported by easy availability of
finance. The study highlights vast scope for SUVs keeping in mind bigger families and the
concept of togetherness and sharing and multi utility of cars in India. A study conducted
even showed that more than 35% of the people surveyed wanted to own a SUV among
which more than 70% of them belonged to upper middle class category who are
interested in economical SUVs.
j. Another interesting research was undertaken by Aindrila Biswas, Angshu Mukherjee and
Mousumi Roy titled ‘Leveraging Factors for Consumer’s Car Purchase Decisions’ which
found out that Indian market has seen a boom in demand for SUVs in rural and urban
areas. The 2nd most populated country in the world has a wide range of population its
category differs from North to South & East to West. But the significant problem was
that car manufacturers identified SUVs only with elite class. But with the induction of
economic SUVs, the segment has grown substantially and has seen a rapid increased
demand. The study showed that market needs more of economic SUVs. This segment is
bought by upper middle class people who have a bigger family or those who want to
own SUV as a status symbol. For such class features and look doesn’t matter much what
matters is owning a SUV.
4. Hypothesis:
a. The null hypothesis is that milage is a determinant factor in the sale of SUVs. The
alternate hypothesis is mileage doesn’t matter for the sale of SUVs.
b. The null hypothesis states that Indian car market has a huge scope and potential for the
sale of SUVs. The alternate hypothesis is that Indian car market does not have a scope
for the sale of SUVs.
c. The null hypothesis states that rural areas also have a market for SUVs. The alternate
hypothesis says that rural areas don’t have any market for SUVs.
5. Questionnaire
Dear Sir/Ma’am, this is a questionnaire prepared to know your response on the above topic, which is
a part of the academic curriculum your responses will be kept confidential and utilized only for my
research project.
1. What is your name?
2. Where are you from (Name of area/ town)?
3. Which age group do you belong to?
a. 18 – 30
b. 30 – 40
c. 40 – 50
d. 45 – 60
e. 60 above
4. What is your annual income group (lakhs)
a. below 6 lakhs
b. 6-9 lakhs
c. 9-12 lakhs above
d. Above 12 lakhs
6. Marital status
a. Married
b. Unmarried
c. Separated
7. No of family members
a. 1-3
b. 3-5
a. 3 more than 5
8. What is your occupation?
a. Business
b. Job
c. Student
d. Other (please specify here)
9. Do you already own a car?
a. Yes
b. No
10. Which car do you have?
11. Would you like to buy an SUV?
a. Yes, a cheaper one.
b. Yes, an mid range or expensive one.
c. No.
12. How important for you is the mileage of the SUV will making the buying decision?
a. Mileage doesn’t matter.
b. No, not really important.
c. Mileage is very important factor.
13. Would you be able to bear the maintenance cost of the SUV?
a) Yes, that isn’t a problem.
b) Yes, but it should be as low as possible.
c) No, not at all.
14. Why do you want to own an SUV?
a) For show off / Status Symbol.
b) To fit a big family.
c) I like to drive sporty cars.
15. What would you 1st look in you SUV?
a. Comfort.
b. Safety.
c. Features & Look.
d. Mileage.
