COMMONWEALTH JOURNAL OF COMMERCE &

MANAGEMENT RESEARCH
Vol.3, Issue 1 (January 2016) ISSN: 2393-851X Impact Factor: 0.612

CREATING VALUE THROUGH NUDGES IN CARS

Manish Ishwardayal Gupta

Ph.D. Research Scholar, Department of Management Studies, Pacific Academy of Higher Education and Research
University, Udaipur

Dr. Nitin Manohar Joshi

Director, Department of Management Studies, Vidya Prasarak Mandal’s, Dr. V.N Bedekar Institute of Management
Studies, Jnanadweepa, Chendani

Abstract
Nudges are present everywhere product we use as being a part of product
ABSTRACT
and choice architecture, the world is moving from traditional marketing
concepts to value and retention focused marketingdue to change in
market from monopolistic market to highly liberalised market. The aim of
study is to study the use of Nudge and how it adds value perception in
cars marketing. Indian carmarket also experienced this change over from
monopolistic market to highly liberalised market for cars with almost all
car players putting plants in India and eachcompeting to get
customers.This study is a descriptive research based on secondary data
on car marketing and field survey of 490 new car owners in 5 cities in
Maharashtra.

Key Words: Nudge, Cars, automotive market in India, nudges framework

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Vol.3, Issue 1 (January 2016) ISSN: 2393-851X Impact Factor: 0.612

INTRODUCTION
Nudge Theory is a concept in behavioural science, political science and economics which argues
that positive reinforcement and indirect suggestions to try to achieve non forced compliance can
influence the motives, incentives and decision making of groups and individuals alike at least as
effective if not more effective that direct instruction, legislation or enforcement.
The heart of nudge theory is the NUDGE, originally defined by Richard Thaler and Cass
Sunstein (2008) as follows:
A nudge is a choice architecture that alters people’s behaviour in a predictable way without
forbidding any options or significant changing their economic incentives. To be counted as pure
nudge, the intervention must be easy and cheap to avoid.
A Nudge is a gentle push via choice architecture to alter people’s behaviour. A choice architect
is a person who has the responsibility for organizing the context in which people make decisions.
They are the people who design the user- friendly environment. A good system of choice
architecture helps people in improving their ability to choose and select options that will make
them better off. In use of nudge in marketing the positive reinforcement is given to product
through use of choice architecture on the 7 ps (Product, price, place, promotion, process,
physical sign, and people i.e. marketing tools) to achieve the customer’s satisfaction and sale.
The features on cars or on marketing tools are choices which act as Nudge ,Nudges remove the
biases, makes decision making easier and act till the subtlety remains on same and competitors
have not caught up in market.

LITERATURE REVIEW
Thaler and Sunstein (2008) explain that humans have biases and we blunder often in making
decisions, have temptations, follow sometimes herd mentality. They have given examples 0f
nudges in automobile field mainly in safety area, vehicle features, and vehicle and insurance

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Vol.3, Issue 1 (January 2016) ISSN: 2393-851X Impact Factor: 0.612

choices. The short form of NUDGE: incentives, Understanding mappings, Defaults Give
feedback, Expect errors, structured complex choices.
Neelamegham (2004) has done a case study on MUL.
Mullainathan (Nov 2009) has highlighted about how nudges can solve social issues, where last
mile issues are always there.
The speaker Eliassons (Sept 2012) talks about experiences of Sweden Stockholm where nudges
were used order to solve traffic congestion in 2006.
Hansen & Jaspersen (2013) thinking as per Kahneman noble laureate is either automatic(Type 1)
or reflective (Type 2), transparent and non-transparent.
Ly, Mazar, Zhao& Soman (March 2013) describe framework of nudges share some common
characters.
The factors like operational cost, bottlenecks, reach, adoption ,risk, user habits etc. involved
should be looked into in nudges. (Ly, Mazar, Zhao& Soman (March 2013)),
Dolan, Hallsworth, Halpers, King, Metcalfe& Vlaev (March 2, 2010) came out with a frame
work of called MINDSPACE framework of influences.
Camilleri & Larrick (2013) state in automobile field use of nudges in labels scales.
Menon &Jagathyraj (May 2012) have by a structured diagram explained the factors in car
purchase decision making.
Shende (Feb 2014) in his study on the consumers behavior the complexities in car purchase.
As per Subadra, Murugeshan, Ganpati (Dec 2010) in car marketing factors influencing sales are
driving comfort, fuel economy, spare parts availability, price, etc.
Sinaravelu (Dec 2011) studied the influence of source of information to buy a car which media is
better, repurchase behaviors of buyers and influence of special features of cars on car sales .
As per Kaul (2010) experimental marketing seeks to make consumer experience richer by
multiple facilities and senses.
As per author Kapoor (2004) in liberalized era brand loyalty does not exists only perceived value
loyalty exits. The author mentions about a new segment Look, Feel and do good.

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Vol.3, Issue 1 (January 2016) ISSN: 2393-851X Impact Factor: 0.612

IMPORTANCE AND OBJECTIVE OF PROPOSED INVESTIGATION

All car manufacturers are using choice architecture as USP (Unique selling proposition) on the
products they are selling, the intention of the study is to search for following:
 Find how some of these choices can acts as nudges in cars.
 To study how nudges create values in cars.
 Common framework which describes the working of nudges in car marketing.

RESEARCH METHODOLOGY
The research methodology adopted for the study comprised of following:
 Descriptive research is based on secondary data on Nudge, literature reviews on the topic
and on observations in car market.
 Quantitative research based on field survey via structured questionnaire on nudges in cars
in 5 districts of Maharashtra Mumbai, Pune, Nashik, Aurangabad and Nagpur. The
samples were chosen based convenience sampling on new car consumers found in
showrooms and societies. The questionnaire was administered to 490 new car consumers
in urban areas of these 5 districts.
 Parametric testing used using SPSS software.

ANALYSIS & INTERPRETATIONS

Table 1:7ps Framework for Nudges in Pre-liberalised Indian car market

Cars in market with

P Nudge feature Issue resolved by Nudge these Nudge
1) Car as a safer, faster Safe and tireless mode of Rail cars (1890), G.M
and tireless mode of transport for long and short & Canadian Ford
Product transport (1890-1900). distances in transportation. Motors cars
Confusions when
2) Trafficators--- turningscar, right - left
Direction indicators turning Bosch (1920 – 1950)

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Vol.3, Issue 1 (January 2016) ISSN: 2393-851X Impact Factor: 0.612

Bulb horns- Lucas

diaphragm horn(1908-
Signal people on road to 1920)
3)Horn move away
Ford T model -- oil
indicator lamp,
dynamo driven lamps
(1908), beamlamps
4)Dynamo Driven Use cars in night when (1936)head lamps
lamps visibility is poor (1940).

5)Floor gears and Difficulty faced by ladies in

power brakes shifting gears Ambassador

6)Lighter monocoque Bigger sturdy cars –safer

design car bodies cars MUL 800

7)Smaller hatchbacks
cars act as nudge for To buy a hatch back or Zen acted as nudge for
larger sedan cars sedan sales of MUL 1000
Lower height of car made
8)Taller body of car customers feel unsafe Hyundai Santro.
Cars are things of luxury for MUL 800 and later
Price 1)Low price of car rich people TATA Nano.
Daewoo --Matiz – tie
up ICICI,Bank of
America,
Arranging car finance was Citibank,Kotak
2)Tieing up with car always a worry in pre Mahindra, Sundram
finance companies liberalised era Finance etc.

Whether to buy car with

3)Warranty period more or less warranty TML Indica launch
1)Company show
rooms and company Trust the car company on
Place service stations quality and service Fiat and Ambassador
MUL - 108 dealers and
Car servicing road side 140 service outlets, -
garages Vs company quality service
2) Service authorised service stations Vsspurious parts -road

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Vol.3, Issue 1 (January 2016) ISSN: 2393-851X Impact Factor: 0.612

side garages.
1)Advertisements advertisements focused
Promotion focused on product Informed customer on features
MUL -self-mass
production -
Process 1)Availability of car Waiting post launch. distribution
Customers need for choice MUL cars-listening
2)Colour of cars of colour customers
3)Scratch free car MUL cardispatch
delivery Factory fresh delivery. Japan standards.
Physical 1)Labels on spare MUL genuine part
Sign parts Genuineness sticker MASS stickers.
MUL trained its
1)Train dealer staff in dealers -quality in after
People after service handling Quality -service on vehicle services.

Table 2: Passenger cars manufacturers in India

Audi
BMW
VW
Skoda
Renault
Mercedes Benz Mercedes Benz
Ford Ford
Toyota Toyota
HONDA HONDA Foreign
GM GM
Fiat Fiat
Hyundai Hyundai
MUL MUL MUL
M&M Tml Tml Tml
HM M&M M&M M&M
Premier HM HM HM Local
Premier Force
1980 1990 2000 2011

Source: http//acma.in/pdfstatus_Industry_Auto_Industrypdf

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Table 3: Nudges in post liberalized car market in India:

Cars in market with

P Nudge feature Issue resolved by Nudge these Nudge
1)Power AMT---MUL
stearing,adjustablestee Celerio,TataZest,Hyun
ring,AMT(Automatic Feminine feature on car, dai i10,i20,Honda
Product manual transmission) ease to handle Amazer etc.
Tata ---
Nano,Aria,Safari;Nissa
n-- Datsun
GO,Renault---
2)Key less entry in Forgetting keys problem Duster,Micra, Maruti--
cars for some people Calerio etc.

3)Remote starting of Starting and warming Volvo,BMW, and

car engines at cold places Mercedes
4)Parking assist Judging distances at rear Optional feature in
cameras on cars end ,reversing the car cars

5) Driving Modes like

economic, city and People like to drive cars as Tata --Zest, Bolt and
sport modes per their way of driving. Volvo cars
All Suvs of Tata--
6) ABS(Anti-lock Storme, Safari, Xenon;
braking), M&M--
ESP(Electronic Avoiding accidents while Scorpio,Rextroth;Rena
stability program) braking. ult --Duster etc.
Renault--Micra,Ace
Frequently stopping at Venture,M&M --
7)Start Stop signals -mileage drop Scorpio etc.

8)LED lights and

Intelligent light Night driving on High end cars of Audi,
system highways - judge way. Mercedes,BMW

9) Tubeless tyres as Usefulness of tubeless

standard tyres tyres Most manufactures

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Tata--Safari,Storme,
10)Seat belt indicator Aria, Toyota--
via light or noise Warning on not wearing Corola,Inova,Altis,
signal seatbelt in car. etios etc.
VW pole blue motion,
Nissan--Datsun GO --
MDS mobile docking
11)Multitasking like system, TATA--
playing music,GPS storme, safari,
navigation,attending Multitasking while driving aria,manza,
telecall,sms etc. car with ease. Ford,Hyundai.
Small Childs anddriving
12) Safety seat for of cars by single moms Volvo cars are seen
child with child. with such features.

To get increased fuel Nissan cars are with

14)Eco-pedal efficiency eco-pedals
To avoid battery drain
15)Follow me home post parking vehicle in
feature of headlamp night. Nissan--Datsun GO
16)Distance meter
after vehicle touches
reserve fuel People forget to refuel Nissan--Datsun GO
17) Drivers biometrics Passenger wants to know
: blood alcohol, BP, drivers biometric for his
glucose level, fatigue safety Nissan Gismo watches.
For electric vehicles locate
18)Near Field a charging point and
Communication(NFC) parking slot, identify
&Radio frequency location of vehicle in
identification( RFID) parking if parking too big. Renault
Protect vehicle from theft,
19)Global locate car missing by
navigational system police, assist drivers on
assisted lo-jack traffic jams, routing
security product options on traffic. Renault, BMW
20) Auto emergency
braking, smart Cruise To road block stopping car
control well in advance of crash. Hyundai Genesis

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1)Price difference
between petrol and
diesel fuel coupled
with CRDI technology All cars in India are
diesel engines To buy diesel or a petrol now giving both diesel
Price technology car and petrol options
Resale value buyers want Tml and Hyundai in
2) Resale value fixing to know of their cars of their promotions are
at time of buying a car interest giving in same now.
3) Car purchase Where to arrange for
scheme: lower EMI finance for buying a high Skoda,Mercedes,Audi,
from market rate end car. BMW,JLR
4) Free insurance and December discounts on
lower EMI schemes Better car finance option cars.
People reach & home
5)Congestion tax office faster Sweden
Stop over speeding at
6) Lottery traffic signal Sweden
Change the mood of
Place 1)Pleasant ambience customer Car dealers
2) Dashing display Make vehicle look more Jazzy displays at show
lights attractive rooms.
1)
Advertisementhighlig
hting features e.g. like
drivability and better
smarter controls than
focusing on safety Changing brand value
Promotion weak feature of car perception BMW.
Force 1 with Amitabh
2)Personality Perception to affiliation Bachchan, Santro with
endorsement for product Shahrukh Khan.
Physical 1)Signboards at Car Make the car and car show
Sign showrooms room look attractive to eye Car Dealers boards
People want to use and
2)Green tag stickers move to greener products M&M Reva, Toyota
on car sides and technologies Prius and Lexus
3) Mileage stickers on
cars giving saving per
year on fuel or miles People want to use more EPAUS mileage
per gallon as per US efficient cars. stickers Miles/ gallon

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EPA stickers

1)Incentives
benefits&usefulness To buy a car or not than
Process of car using taxi or two wheeler Car dealers
Remove fear of driving
2) Certified driving and change perception on
schools ease of driving the car MUL driving schools
3)Endorsement by
family and close
friends Hearing all Car dealers
4) Comparative with All things of life and best Tml Indica Vs Zen&
other cars value for money Santro

1)Training of car sales Personal selling by

People people , salesman Car dealers

Table 4: Value and Retention focused frame work of Nudge in Look, feel and do good

Above 7ps of car nudges can be put in look, feel and do good frame work as follows to increase
value perceptions in same:

Sr.
no. Look Feel Do good
Power steering, adjustable
steering, AMT(Automatic
1 Low price of car manual transmission) Horn
Seat belt indicator via
2 Colour of cars Key less entry in cars light or noise signal
Dashing display lights
on vehicle in car
3 showrooms Remote starting of car Safety seat for child
ABS(Anti-lock braking),
Personality ESP(Electronic stability
4 endorsement Parking assist cameras on cars program)
Green tag stickers on Driving Modes like economic,
5 car city and sport Eco-pedal
Car as a safer, faster Global navigational
6 and tireless mode of Start Stop, button starting car system assisted lo-jack

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transport security product

LED lights and Intelligent light Auto emergency braking,
7 system smart Cruise control
Multitasking like playing
music, GPS navigation, attend
8 ingtele call, sms etc. Congestion tax
Follow me home feature of Lottery of car drivers who
9 headlamp do not over speed.
Near Field
Communication(NFC) &Radio
frequency identification(
10 RFID) Direction indicators
Price difference between fuel
coupled with engines
11 technology Taller body of car
Certified driving schools
Resale value fixing at time of for removing fear of
buying a car, 3years/5 years driving and promoting car
12 after its use sales
Car purchase scheme: upfront
13 advance & lower EMI Warranty period
Pleasant ambience at car show Free insurance and lower
room by displays and soft EMI schemes in
14 music December every year
Advertisement highlighting Tie up with car finance
15 features companies
Tubeless tyres as
16 Signboards at Car showrooms standard tyres
Mileage stickers on cars Distance meter after
giving saving per year( US vehicle touches reserve
17 EPA stickers) fuel
Incentives benefits usefulness Drivers biometrics :
of car is focused by sales blood alcohol, BP,
18 person glucose level, fatigue
Endorsement by family and
19 close friends
20 Comparative with other cars
Smaller hatchbacks cars act as
21 nudge for larger sedan cars
22 Company show rooms and

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company service stations

Availability of car at
23 showroom nearby
24 Scratch free car delivery
25 Labels on spare parts
Trained dealer sales staff in
26 after service handling

Reliability Statistics:

Cronbach's
Alpha Based
on
Cronbach's Standardized N of
Alpha Items Items
0.833 0.785 63

In the study 63 variables were studied, Cronbach’s alpha value 0.833 was seen in the study, for
the standardised items Cronbach’s alpha 0.785 was seen for the refined scales as reliable and
consistent. As Cronbach’s alpha value above 0.8 is considered to be reliable for basic research,
hence data collected is demonstrating highlyreliability.

T Test –Hypothesis testing

One-Sample Test
Test Value = 3
95%
Confidence
Sig. Interval of the Remark
(2- Mean Difference ( H0: µ=3;
t df tailed) Difference Lower Upper H1: µ>3 )
There are Nudges in 39.158 489 .000 1.19184 1.1320 1.2516 P
cars value=0.00
is less than
α= 0.05,t
value 39.15
very high
than table
value 1.96,
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Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Nudges features are 37.048 489 .000 1.06939 1.0127 1.1261 P
benifitical value=0.00
is less than
α= 0.05,t
value 37.04
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Nudges Features 24.473 489 .000 .93673 .8615 1.0119 P
removes bottleneck value=0.00
is less than
α= 0.05,t
value 24.47
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Nudges features makes 28.637 489 .000 .99796 .9295 1.0664 P
life/work easier value=0.00
is less than
α= 0.05,t
value28.63

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very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Nudges features will 22.676 489 .000 .91020 .8313 .9891 P
last long value=0.00
is less than
α= 0.05,t
value 22.67
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
if known earlier on the 19.862 489 .000 .81224 .7319 .8926 P
nudge features your value=0.00
decision will remain is less than
same α= 0.05,t
value 19.86
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true

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People want- more 28.012 489 .000 1.07959 1.0039 1.1553 P

nudges features in cars. value=0.00
is less than
α= 0.05,t
value 28.01
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Nudge features 33.133 489 .000 1.10000 1.0348 1.1652 P
increase theValue of value=0.00
car in terms of look is less than
good α= 0.05,t
value 33.13
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Nudge features 39.607 489 .000 1.17143 1.1133 1.2295 P
increases the Value of value=0.00
car in terms of feel is less than
good α= 0.05,t
value 39.60
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate

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Hypothesis
H1 is true

Nudges features 36.057 489 .000 1.17755 1.1134 1.2417 P

increases the Value of value=0.00
car in terms of do good is less than
α= 0.05,t
value 36.05
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Effectiveness of 29.755 489 .000 1.02041 .9530 1.0878 P
Nudges features can be value=0.00
increased by higher is less than
education α= 0.05,t
value 29.75
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Effectiveness of 20.679 489 .000 .80816 .7314 .8850 P
Nudges features can be value=0.00
increased by a is less than
Movement.(Campaign) α= 0.05,t
value 20.67
very high
than table
value 1.96,
Hence null

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Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true
Effectiveness of Nudges 30.226 489 .000 1.06735 .9980 1.1367 P
features can be value=0.00
increased by is less than
aregulation. α= 0.05,t
value 30.22
very high
than table
value 1.96,
Hence null
Hypothesis
H0 is
rejected &
alternate
Hypothesis
H1 is true

t distribution approaches Z distribution with large sample size, compared value of t will be same
as Z value, P value in all above is found to be 0.00 (two tailed) which is less than 0.05, t test
values also be very high , we can conclude from above to reject null hypothesis,(Null hypothesis
being H0: µ=3; alternate hypothesis H1: µ>3) , making alternate hypothesis to be true, hence
we can say that nudges are there is cars, people find nudges to be beneficial in cars , the nudges
remove fears and confusions in cars, nudges makes life easier for car drivers, nudges as people
will last long in cars, even if people are told of nudge effect of features on cars they will still go
for these nudge features in cars, people want more and more such nudge features on cars , nudge
features increases the value of cars in perceptions of look good, feel good and do good (safety),
the effective ness of nudge features can be increased by higher education, movements promoting
same (social campaigns) and by government regulations.

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One-Sample Test
Test Value = 4
95%
Sig. Confidence Remark
(2- Mean Interval of the ( H0:
tailed Differenc Difference µ=4; H1:
t df ) e Lower Upper µ<4 )
Importance of a look - 48 .000 -1.92245 - - P
good feature like Price in 45.970 9 2.0046 1.8403 value=0.0
purchase of car 0 is less
than α=
0.05,t
value
45.97
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a look - 48 .000 -1.30204 - - P
good feature like Colour 31.427 9 1.3834 1.2206 value=0.0
in purchase of car 0 is less
than α=
0.05,t
value
31.42
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is

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rejected &
alternate
Hypothesi
s H1 is
true
Importance of a look - 48 .000 -.54286 -.6470 -.4387 P
good feature like display 10.239 9 value=0.0
in purchase of car 0 is less
than α=
0.05,t
value
10.23
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a look -6.477 48 .000 -.41224 -.5373 -.2872 P
good feature like 9 value=0.0
personality endorsement 0 is less
in purchase of car than α=
0.05,t
value
6.477
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi

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s H1 is
true

Importance of a look - 48 .000 -.75510 -.8610 -.6492 P

good feature like green 14.004 9 value=0.0
tag/sticker in purchase of 0 is less
car than α=
0.05,t
value
14.00
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a look - 48 .000 -2.00000 - - P
good feature like car as a 44.227 9 2.0889 1.9111 value=0.0
safe mode of transport in 0 is less
purchase of car than α=
0.05,t
value
44.22
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is

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true

Importance of a feel good - 48 .000 -2.08980 - - P

feature like steering 51.929 9 2.1689 2.0107 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
51.92
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.60204 - - P
feature like parking assist 33.336 9 1.6965 1.5076 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
33.33
very high,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true

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Importance of a feel good - 48 .000 -1.31633 - - P

feature like keyless entry 24.354 9 1.4225 1.2101 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
24.35
very high,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.11837 - - P
feature like driving modes 19.293 9 1.2323 1.0045 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
19.29
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.13265 - - P
feature like button start 18.539 9 1.2527 1.0126 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value

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18.53
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.19592 - - P
feature like LED light 20.682 9 1.3095 1.0823 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
20.68
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.84898 - - P
feature like multitasking 38.355 9 1.9437 1.7543 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
38.35
very high
than table

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value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.28163 - - P
feature like follow me 27.749 9 1.3724 1.1909 value=0.0
home head lamp features 0 is less
in purchase of car than α=
0.05,t
value
27.74
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.87551 - - P
feature like fuel price 48.159 9 1.9520 1.7990 value=0.0
difference(Petrol/diesel/cn 0 is less
g) features in purchase of than α=
car 0.05,t
value
48.15
very high
than table
value
1.96,
Hence

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null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.85918 - - P
feature like resale value 45.095 9 1.9402 1.7782 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
45.09
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.64082 - - P
feature like EMI features 32.714 9 1.7394 1.5423 value=0.0
in purchase of car 0 is less
than α=
0.05,t
value
32.71
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is

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rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.00612 - -.9089 P
feature like showroom 20.328 9 1.1034 value=0.0
ambience features in 0 is less
purchase of car than α=
0.05,t
value
20.32
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.06122 - -.9671 P
feature like advertisement 22.147 9 1.1554 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
22.14
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi

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s H1 is
true

Importance of a feel good - 48 .000 -.74490 -.8388 -.6510 P

feature like signboard 15.589 9 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
15.58
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.19796 - - P
feature like mileage 24.187 9 1.2953 1.1006 value=0.0
sticker features in 0 is less
purchase of car than α=
0.05,t
value
24.18
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is

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true

Importance of a feel good - 48 .000 -1.53878 - - P

feature like endorsement 33.167 9 1.6299 1.4476 value=0.0
by family/friends in 0 is less
purchase of car than α=
0.05,t
value
33.16
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -1.63061 - - P
feature like comparative 43.929 9 1.7035 1.5577 value=0.0
with other cars features in 0 is less
purchase of car than α=
0.05,t
value
43.92
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is

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true

Importance of a feel good - 48 .000 -1.18367 - - P

feature like labels on 24.323 9 1.2793 1.0881 value=0.0
spares as features in 0 is less
purchase of car than α=
0.05,t
value
24.32
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a feel good - 48 .000 -.85714 -.9564 -.7578 P
feature like double air 16.960 9 value=0.0
conditioner. features in 0 is less
purchase of car than α=
0.05,t
value
16.96
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is

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true

Importance of a feel good - 48 .000 -1.85306 - - P

feature like space and 47.451 9 1.9298 1.7763 value=0.0
head height features in 0 is less
purchase of car than α=
0.05,t
value
47.45
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a do good - 48 .000 -2.08367 - - P
feature like horn features 47.475 9 2.1699 1.9974 value=0.0
in purchase of car 0 is less
than α=
0.05,t
value
47.47
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is

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true

Importance of a do good - 48 .000 -2.17143 - - P

feature like airbag 55.139 9 2.2488 2.0941 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
55.13
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a do good - 48 .000 -2.11020 - - P
feature like seat belt 51.904 9 2.1901 2.0303 value=0.0
indicator features in 0 is less
purchase than α=
0.05,t
value 51.9
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true

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Importance of a do good - 48 .000 -1.86531 - - P

feature like safety child 38.409 9 1.9607 1.7699 value=0.0
seat features in purchase 0 is less
of car than α=
0.05,t
value
38.40
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a do good - 48 .000 -2.24082 - - P
feature like safe braking 56.599 9 2.3186 2.1630 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
56.59
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true

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Importance of a do good - 48 .000 -1.66122 - - P

feature like taller body 34.493 9 1.7559 1.5666 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value
34.49
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a do good - 48 .000 -1.99796 - - P
feature like warranty/ 51.051 9 2.0749 1.9211 value=0.0
extended warranty 0 is less
features in purchase of than α=
car 0.05,t
value
51.05
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true

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Importance of a do good - 48 .000 -1.67347 - - P

feature like free insurance 43.309 9 1.7494 1.5975 value=0.0
features in purchase of 0 is less
car than α=
0.05,t
value 43.3
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a do good - 48 .000 -1.91224 - - P
feature like distance 54.850 9 1.9807 1.8437 value=0.0
meter feature features in 0 is less
purchase of car than α=
0.05,t
value
54.85
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true
Importance of a do good - 48 .000 -2.12245 - - P
feature like tubeless tire 56.126 9 2.1968 2.0481 value=0.0
features in purchase of 0 is less
car than α=
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0.05,t
value
56.12
very high
than table
value
1.96,
Hence
null
Hypothesi
s H0 is
rejected &
alternate
Hypothesi
s H1 is
true

p value in all above is found to be 0.00 (two tailed) which is less than 0.05, t test values also be
very high , we can conclude from above to reject null hypothesis,(Null hypothesis being H0:
µ=4; alternate hypothesis H1: µ<4) , making alternate hypothesis to be true. In look good
features in cars price, colour of car, display of cars, personality endorsement, green tag/ stickers
and car as safer mode of transport are important. In feel good features like steering(power
steering, adjustable steering, AMT), keyless entry ,parking assist, driving modes ,button start,
LED light, multitasking (GPS, music system , s.m.s , tele-call ,navigation etc.), follow me home
headlamp, price difference between fuel prices and engine technology, resale value, EMI
scheme, show room ambience, advertisement, signboard, mileage stickers, endorsement by
family and friends, comparative with other cars, labels on spare parts, double air conditioner.,
interior space and head lamp are important features. In do good features(safety) like horn,
airbags, seatbelt indicator, safety child seat, braking features, taller body, warranty, free
insurance, distance meter, tubeless tires are important features.

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Rank Order Analysis

Rank Look
Good Feel Good Do Good
Frequency Frequency Frequency
Valid 1.00 44 87 359

2.00 85 327 78
3.00 361 76 53
Total 490 490 490

Ranked
Summarized by
Factor rank order customer

Look good 1297 3

Feel Good 969 2
Do good 674 1

Rank order analysis shows that people rank 1 st do good features i.e. safety features in a car, then
2nd feel features and lastly on the looks features.

CONCLUSIONS
From the analysis of the above data we can conclude that, there are nudge features in cars, which
are beneficial to us as they remove our confusions in decision making and make life and work
easier. People perceive that these nudges will last long, people want more such nudges. People
also say that if they knew nudges change our behaviour they will still follow herd mentality and
their decision will remain same. These nudges in car add value in car in terms of look, feel and
do good(safety).The effectiveness of these nudge features can be increased by higher education,

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movement ( social campaign) and by government regulation. We rank do good (safety) nudges
as most important, then feel nudges and look nudges in cars.
Nudges when put on 7ps (marketing mix) of marketing, change a traditional marketed product to
value and retention focused marketed product by improving value perception in look, feel and
do good perception.
Study of Nudge in automobile field can be used by car manufacturers on making better
automobile for the community, which connects with people instantly and make the automobile
successful in market. To consumers the study of nudges in automobile field is important so they
become aware on technology their or choices there for them to know and satisfy their hidden
needs.
Combining psychology, marketing and art with tools of scientific methods Nudge can be made to
solve the social life issues like first mile and last mile issues.

REFERENCES
1. ACMA acma.in/pdf, status_Industry_Auto_Industrypdf.
2. Auto Tech Review magazine ,May 2014 Volume3 issue 5,page 12-16; Auto Tech
Review, April 2014,Volume3,issue 4, page 60-62,pg. 22-26.
3. Camilleri, A. & Larrick ,R. , (2013), Scale & Metric design as choice architecture, AMA
Journal, The Fuqua School of business, Duke University, North Carolina USA.
4. Dolan, P., Hallsworth, M., Halpers, D.,King, D., Metcalfe, R.,& Vlaev, I. (March 2,
2010), Mindspace: Influencing behavior through public policy. Institute for Government
in www.instituteforgovernment.org.u.k/publication/mindspace
5. Eliassons,J. (Sept 2012), How to solve traffic jams, video on blog www.ted.com
6. Hansen, P.,& Jaspersen, A. (2013), Nudge & Manipulation of choice, EJRR journal on
www.lexxion.de/pdf.
7. History of Indian Automobile industry, www.Zigwheels .com.
8. Kirsloskar, V. (Sept 2013), Market perspective for Indian automobile industry 8th –IAA-
Day, SIAM, www.siam.com.

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9. Kaul, S. (2010), Experimental Marketing Myths and Realities, Viva Books.

10. Kapoor, J. (2004), Brand Switch, Jaico Books.
11. Ly, K., Mazar, N., Zhao, M., & Soman, D. (March 2013), A practioners guide to
Nudging, Rotman school of management, University of Toronto.
12. Menon, B., & Jagathyraj, R.(May 2012),Dominant mean percentage score factors of the
consumer purchase behaviors of passenger cars ,IJIM Journal,www.mairec.org
13. Mullainathan, S. (Nov 2009), Solving social problems with a nudge, vedio on blog
www.ted.com.
14. Morris, J., Marzano, M., Dandy, N., O’Brian, L. (2012); Forestry, sustainability, behavior
& behavior change: Theories; www/forestry.gov.u.k/pdf/behavior review theory.
15. Neelamegham, S. (2004), Marketing in India cases and reading, case study Maruti Udyog
Ltd, pg. no. 85-124, New Delhi, and Vikas Publishing House.
16. Nudge blog, http//nudges.org/cars.
17. Overdrive Magazine June 2014, The Lord of Light, pg.22-24.
18. Shende, V. (Feb 2014), Analysis of research in consumer behavior of automobile
passenger car customer, International Journal of scientific &research publication.
19. Sinaravelu, K. (Dec 2011), Consumer behavior: A study of influences features of
passenger cars in Coimbatore district, Indian streams research Journal.
20. Subadra, S., Murugeshan, K., Ganpati, R. (Dec 2010), Consumers perceptions &
behavior: A study with special reference to car owners in Namakkal District, APJRBM,
Srikrishna International research & educational consortium. http//www.skirec.com.
21. Thaler, R. & Sunstein, C. (2008), Nudge: Improving decisions about health, wealth and
happiness, Volume 14, release 2, Yale university Press 293 pages.

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