IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X CAR MARKET AND BUYING BEHAVIOR- A STUDY OF CONSUMER PERCEPTION Nikhil Monga Assistant Professor & HOD, Department of Management Studies, Phonics Group of Institutions, Roorkee Dr. Bhuvnender Chaudhary Dean, Phonics Group of Institution, Roorkee Saurabh Tripathi Assistant Professor, Department of Management Studies, Phonics Group of Institutions, Roorkee ABSTRACT The automobile industry today is the most lucrative industry. Due to the increase in disposable income in both rural and urban sector and easy finance being provided by all the financial institutes, the passenger car sales have increased at the rate of 38% per annum in June 2005-06 over the corresponding period in the pervious year. Further competition is heating up in the sector with a host of new players coming in and other like Porsche, Bentley, Audi, and BMW all set to venture in the Indian markets. One factor that could help the companies in the marketing of their product is by knowing and creating a personality for their brands. This research attempts to answer some of the questions regarding brand personality of selected cars in India by conducting the market research. This personality sketching will help in knowing what a customer (or a potential customer) thinks about a given brand of car and what are the possible factors guiding a possible purchase. Similarly, the idea of measuring the customer satisfaction will serve the same purpose of determining the customer perception. Thus, by measuring the” willingness of existing users of a car to recommend it to others” will help the car manufacturers to chalk out the entire Customer Buying Behavior. This research will be helpful for the new car entrant companies in India to find out the possible gaps between the customer expectations and the present market offerings. It will be mainly a primary research and the information will be gathered from both primary and secondary research. The research will analyze the applicability of existing research concepts, theories, and tools for evaluating consumer satisfaction. Keywords: Automobile, Car Market, Buying Behavior, Perception International Journal of Research in Management, Economics and Commerce www.indusedu.org 44 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X INTRODUCTION The concept of “buying behavior” is of prime importance in marketing and has evolved over the years. It is important to understand consumer buying behavior as it plays a vital role in crating an impact on purchase of products. The human wants are unlimited and always expect more and more. Car Models are no exception to this behavior. This lead to constant modifications of Car Models & its features and today we see a new model coming into the market practically every quarter. The market is a very important place to study the behavior of consumers and also provide useful insights what a consumer requires in a product. It is only through research that a company will be able to study the buying behavior of consumers. “As one of the measurements of the performance of the quality management system, the organizations shall monitor information relating to customer perception as to whether the organization has met customer requirements. The method for obtaining and using this information shall be determined” The requirement has been there in the QS9000 standard clause 4.1.6 which says: “Trends in customer satisfaction and key indicators of customer dissatisfaction shall be documented and supported by objective information. These trends shall be compared to those of competitors, or appropriate benchmarks, and reviewed by senior management.” There is obviously a strong link between customer satisfaction and customer retention. Customer’s perception of service and quality of product will determine the success of the product or service in the market. With better understanding of customer’s perceptions, companies can determine the actions required to meet the customer’s needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out the path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company. The decision-making process consists of a series of steps which the consumer undergoes. First of all, the decision is made to solve a problem of any kind. This may be the problem of creating a cool atmosphere in your home. For this, information search is carried out, to find how the cool atmosphere can be provided, e.g. by an air-conditioner or, by a water-cooler. This leads to the evaluation of alternatives and a cost benefit-analysis is made to decide which product and brand image will be suitable, and can take care of the problem suitably and adequately. Thereafter the purchase is made and the product is used by the consumer. The constant use of the product leads International Journal of Research in Management, Economics and Commerce www.indusedu.org 45 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X to the satisfaction or dissatisfaction of the consumer, which leads to repeat purchases, or to the rejection of the product. The marketing strategy is successful if consumers can see a need which a company.s product can solve and, offers the best solution to the problem. For a successful strategy, the marketer must lay emphasis on the product/brand image in the consumer.s mind. Position the product according to the customers. likes and dislikes. The brand which matches the desired image of a target market sells well. Sales are important and sales are likely to occur if the initial consumer analysis was correct and matches the consumer decision process. Satisfaction of the consumer, after the sales have been effected, is important for repeat purchase. It is more profitable to retain existing customers, rather than looking for new ones. The figure below gives an idea of the above discussion. In this model, the consumer passes through five stages: problem recognition, information search, evaluation and selection of alternatives, decision implementation, and post-purchase evaluation. a) Problem Recognition: In this information processing model, the consumer buying process begins when the buyer recognizes a problem or need. For example, Doug may realize that his best suit doesn’t look contemporary any more. Or, Kathleen may recognize that her personal computer is not performing as well as she thought it should. These are the kinds of problem that we as consumers encounter all the time. When we found out a difference International Journal of Research in Management, Economics and Commerce www.indusedu.org 46 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X between the actual state and a desired state, a problem is recognized. When we find a problem, we usually try to solve the problem. We, in other words, recognize the need to solve the problem. But how? b) Information Search: When a consumer discovers a problem, he/she is likely to search for more information. Kathleen may simply pay more attention to product information of a personal computer. She becomes more attentive to computer ads, computers purchased by her friends, and peer conversations about computers. Or, she may more actively seek information by visiting stores, talking to friends, or reading computer magazines, among others. Through gathering information, the consumer learns more about some brands that compete in the market and their features and characteristics c) Evaluation and Selection of Alternatives: How does the consumer process competitive brand information and evaluate the value of the brands? Unfortunately there is no single, simple evaluation process applied by all consumers or by one consumer in all buying situations. One dominant view, however, is to see the evaluation process as being cognitively driven and rational. Under this view, a consumer is trying to solve the problem and ultimately satisfying his/her need. In other words, he/she will look for problem-solving benefits from the product. The consumer, then, looks for products with a certain set of attributes that deliver the benefits. Thus, the consumer sees each product as a bundle of attributes with different levels of ability of delivering the problem solving benefits to satisfy his/her need. The distinctions among the need, benefits, and attributes are very important. One useful way to organize the relationships among the three is a hierarchical one (Figure 2). Although simplified, Figure 2 is an example of how a bundle of attributes (i.e., a product or, more specifically, personal computer) relates to the benefits and underlying needs of Kathleen. d) Decision Implementation: To actually implement the purchase decision, however, a consumer needs to select both specific items (brands) and specific outlets (where to buy) to resolve the problems. There are, in fact, three ways these decisions can be made: 1) simultaneously; 2) item first, outlet second; or 3) outlet first, item second. In many situations, consumers engage in a simultaneous selection process of stores and brands. For example, in our Kathleen’s personal computer case, she may select a set of brands based on both the product’s technical features (attributes) and availability of brands in the International Journal of Research in Management, Economics and Commerce www.indusedu.org 47 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X computer stores and mail-order catalogs she knows well. It is also possible, that she decides where to buy (e.g., CompUSA in her neighborhood) and then chooses one or two brands the store carries. Once the brand and outlet have been decided, the consumer moves on to the transaction (“buying”). e) Post-purchase Evaluation: Post-purchase evaluation processes are directly influenced by the type of preceding decision-making process. Directly relevant here is the level of purchase involvement of the consumer. Purchase involvement is often referred to as “the level of concern for or interest in the purchase” situation, and it determines how extensively the consumer searches information in making a purchase decision. Although purchase involvement is viewed as a continuum (from low to high), it is useful to consider two extreme cases here. Suppose one buys a certain brand of product (e.g., Diet Pepsi) as a matter of habit (habitual purchase). For him/her, buying a cola drink is a very low purchase involvement situation, and he/she is not likely to search and evaluate product information extensively. In such a case, the consumer would simply purchase, consume and/or dispose of the product with very limited post-purchase evaluation, and generally maintain a high level of repeat purchase motivation (Figure 3). INDUSTRY STATISTICS OF AUTOMOBILE INDUSTRY  The domestic Indian passenger car market (including utility vehicles) totaled 900,000 units (with a CAGR of 10 per cent over the past 4 years) while the exports were 130,000 million units (with a   registered CAGR of 68 per cent over the past 4 years) during financial year 2004 The Indian two-wheeler Industry is one of the largest in the world, and is expected to maintain robust growth in the future At the back of this phenomenal automotive growth is the success of the Indian auto component industry. Presently a US$ 6.7 billion industry, it is expected to almost treble in less than eight years time to US$ 17 billion by 2012 India offers a distinct technological and cost-competitive advantage, which global Original Equipment Manufacturers (OEMs) and automotive suppliers are leveraging for both manufacturing and research facilities. The passenger car market is projected to grow at a CAGR of 12.3 per cent over the next few years. Growth in the mid-size and premium car segments is International Journal of Research in Management, Economics and Commerce www.indusedu.org 48 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X expected to outpace the overall market growth. This Figure that represents the Gross turnover of Industry Source: SIAM International Journal of Research in Management, Economics and Commerce www.indusedu.org 49 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X Source: SIAM Source: SIAM RESEARCH METHODOLOGY The research objectives for the project are to determine the demographic variables of the customers of different brands of cars, to Examine the customer perception about the cars to judge International Journal of Research in Management, Economics and Commerce www.indusedu.org 50 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X the satisfaction level of car owners of different brands.The research tracks responses at following two layers i.e., Product related parameters and Dealer related parameters FINDINGS AND ANALYSIS Motives For buying a car 40 35 39 30 25 20 23 Series1 15 17 10 12 9 5 0 In c re a s e in d is p o s a ble in c o m e B e tte r s a fe ty Fa m ily n e e d s a t ro a d s In c re a s e in fa m ily s ize Su its yo u r life s tyle a n d p e rs o n a lity Motives As per the analysis shows, increase in disposable income seems to be the most important reason for buying a car. This trend is reflected in the growth of the Per capita Disposable income and consequently the growth of the Indian automobile industry especially in the B and C segment cars. Similarly, the growing family needs like working partners, increasing family size, status, etc. add to the motives of buying a car. International Journal of Research in Management, Economics and Commerce www.indusedu.org 51 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X Pro du ct Spe cific Re a s o n s fo r Bu yin g a Ca r 2 10 32 Afforable prices Technical superiority Comfort Manufacturer's image Value for money Safety After sale services 28 7 9 12 32% of the respondents suggested that affordable prices are the most important factor while purchasing a car. This is the reason for sticking to a particular segment till the next substantial rise in the personal disposable income. This reason is followed by ‘Value for money’ where the customers look for the best product, best services and best repute all bundled in one with the best deal they can strike. This explains the reason for the stagnant or sudden growth in sale of B and C segment cars just before budget and near occasions like Diwali. In te rio rs fo r Se gm e n t B cars 100% 3 80% 1 3 3 3 3 1 1 1 3 Level of satisfaction 4 4 4 3 3 1 4 4 4 4 60% 4 3 3 3 3 4 4 3 Adjustable Front Seat Headrest Music System Interior Colour Dash Board Leg Room Seat Design 40% 4 4 3 3 4 4 3 4 4 4 In dica V2 Ave o Sa n tro Ge tz 4 20% 3 4 4 Ma ru ti W ago n R Ma ru ti Sw ift 0% Maru ti Es tilo Cars International Journal of Research in Management, Economics and Commerce www.indusedu.org 52 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X Interiors play a very important role in deciding the sale of a car. More plush, comfortable and exotic the interiors are more are the chances of its being popular among the customers. For this reason manufacturers spend billions of dollars every year on R&D to continuously improve the interiors of their cars. Seats, leg room, dash board, armrests etc are few of the options which count for the interiors. As the analysis show Getz scores substantially high w.r.t. its counterparts on the account of music system installed. Similarly, Indica V2 races far ahead as far as leg room is concerned. However, Wagon R fares badly on this front. Overall, almost all cars get a mixed response in this segment as far as the interiors are concerned. Customer Satisfacton based on Interiors of Cars Satisfaction level ( in %age) 100% 80% 60% 3 3 3 3 3 3 3 3 3 4 5 4 4 4 4 4 3 5 4 4 4 3 4 4 5 5 4 4 4 5 5 5 5 4 4 4 4 4 4 5 3 40% Adjustable Front Seat Headrest Music System Interior Colour Dash Board Leg Room Seat Design 20% 4 V er na t A cc en ra pt ar In di go M In O in go di o B al en m ee st E a 0% Cars ' In te rio r Pa ra m e te rs As one can see most of the respondents are quite happy with the interiors of their respective cars. However, one striking point observed here are that almost every car fares neutral on the adjustable front seat headset. These cars have more leg room, come with attached music systems (Verna fares the best among all cars on this front) combined with luxury features like TV screens, armrests at the back seat etc. International Journal of Research in Management, Economics and Commerce www.indusedu.org 53 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X Customer Satisfaction on the Safety Parameter Cu s to m e r Sa tis fa ctio n Le ve l ( %a ge ) 100% 90% 3 3 4 4 4 4 5 80% 3 70% 3 4 60% 3 4 5 4 4 50% 3 40% 3 3 3 4 30% 4 3 1 1 1 1 1 20% 3 3 3 Maru ti Es tilo (9 ) Maru ti W ago n R( 2 3 ) Ma ru ti Sw ift 10% Intensity of front light Aerodynamic Shape ABS Air Bags Crossbar under Dashboard 1 3 3 3 3 In dica V2 Ave o Sa n tro Ge tz 0% Safe ty Param e te rs o f D iffe re n t ca rs As can be noted Maruti Swift and Indica V2 fight neck to neck on almost every front, with Indica marginally better in features like crossbars under the dashboard and Anti Brake systems. Most of the cars in this segment fare relatively similar and very close to each other on most of the fronts. Customer Satisfaction Level on Safety Parameters 100% 90% 3 3 4 4 4 4 4 4 3 4 4 4 4 4 4 4 4 Indigo Indigo Marina Optra Accent Verna 4 4 5 Customer satisfaction level 80% 70% 3 3 3 3 3 60% 4 50% 4 4 1 1 4 4 4 5 40% 30% 3 Intensity of front light Aerodynamic Shape ABS Air Bags Crossbar under Dashboard 20% 10% 0% Esteem Baleno Cars' Safety Parameters As one can see most of the respondents are quite happy with the safety parameters of their respective cars. However, one striking point observed here are that almost every car fares neutral on the safety parameters. International Journal of Research in Management, Economics and Commerce www.indusedu.org 54 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X Customer Satisfaction Level on the Fuel Efficiency Cu s to m e r Sa tis fa ctio n Le ve l ( %a ge ) 100% 90% 3 3 3 4 4 4 4 5 4 80% 70% 60% 3 4 3 4 5 Stability at higher speed Pick up Mileage Fuel Consumption 50% 40% 4 3 4 4 3 30% 3 4 20% 10% 3 4 3 3 3 3 3 Ma ru ti S w ift In dica V2 Ave o S a n tro Ge tz 0% Ma ru ti Es tilo (9 ) Ma ru ti W a go n R( 2 3 ) Ca rs ' Fu e l Efficie n cy P a ra m e te rs The customer choice of the car highly depends upon the performance and maintenance costs of the car. This is the reason why this class of parameter was chosen for this study. And the results show that Maruti’s Wagon R fares the best car in its segment as most fuel efficient car of all. Similarly, Wagon R fares the best on the terms like mileage but it lags behind Hyundai’s Santro on pick up front. So this segment shows a mixed bag of response for the Fuel efficiency and mileage parameter. Indica V2 performs consistently on all the parameters and Getz fares really well on pick up whereas it fares badly on fuel consumption. Considered this condition for Getz it should be seen as a red signal for the manufacturers so that Getz does not end up being like Fiat’s Palio famous as a car for ‘drinking petrol. Customer Satisfaction Level on the basis of Fuel Efficiency 90% 4 4 5 3 4 4 5 5 5 5 5 5 5 5 3 3 3 3 3 3 3 3 In d i go M a ri n a Op tra Ac c e n t Ve rn a 80% 70% 60% terms) Customer Satisfaction Level ( in % age 100% 50% Stability at higher speed Pick up Mileage Fuel Consumption 40% 3 30% 3 3 20% 10% 4 3 3 Es te e m B a le n o 0% In d i go Ca r's Fu e l Effi c i e n c y P a ra m e te r s International Journal of Research in Management, Economics and Commerce www.indusedu.org 55 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X Segment C cars are known as hybrid car segment between the B segments fuel efficiency with the luxury of the D class. Checking the same it seems that most of the cars in this segment are placed much closed to each other with very little difference here and there. Most of the cars are fuel efficient w.r.t their weights and pickups. Indigo fares as the best car in terms of fuel efficiency. Baleno fares a little bit behind than its counterparts as far as the stability at high speeds and mileage is concerned.Dealers is the middle men between a car manufacturer and its customers. Dealer thus becomes the most important link in joining the company to its customers as he is the person who will sell the product, will deliver it and will keep on providing the after sales services to the customers as and when required. So, it becomes necessary automatically to study dealer as a part of customers’ satisfaction journey with the product called car! Customer Satisfaction Level ( in %age terms) Customer Satisfaction Level on the Basis of Dealers 100% 90% 4 4 2 3 2 4 3 4 3 5 5 4 4 4 4 4 5 4 4 4 4 4 80% 1 70% 4 3 50% 3 5 4 4 40% 2 4 2 4 60% 4 4 4 4 4 30% 20% 4 5 5 5 4 10% 5 4 4 4 4 4 Hyundai General Motors Tata Motors Maruti Suzuki 4 5 4 es r m te he e t) ic di rv C re Se ( e nc na en Sc ct Ce n io ic sa an Tr ce Fi bi m A ed A ss ur of er m to C us ( g in dl an H C ar ns e) f & y er iv D el rm fo In er dv A rv se C ha St rg af es e m d Ti de e rv Se P n at io ic ro Sp of y lit bi ila va A vi ar vi es ce s fS to C os ca ni ch Te er il ac lF m ro ts en m ti se it ns io it ot im ox Pr (P ( e nc ta is D ie ) y) 0% D e a le rs re le a te d pa ra m e te rs fo r diff Ma n u factu re rs While buying a car, dealers ‘choice play a very important role in deciding the company and model’s choice. So dealers act as influencers on the complete buying behavior of the prospective customers. Among all the listed factors Maruti fares the best among all its counter parts in terms of dealer density which is quite obvious. Also, the cost of service provided by Maruti dealers is the lowest followed by Tata Motors. Similarly, for B and C segment cars Maruti emerges out as the clear winner among the four car companies studied all thanks to the vast, extensive and well managed dealer system. International Journal of Research in Management, Economics and Commerce www.indusedu.org 56 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X Brand Image 6 Customer Perception ( Avg) 5 4 3 Series1 5 4 2 4 4 3 3 3 1 0 Ma ru ti Es ti lo Ma ru ti W a go n R Ma ru ti S w i ft In d i c a V2 Ave o S a n tro Ge tz Ca r B ra n d s as per the analysis, Santro is the car whose brand image is most preferred in the market. This is because of the reason, that it’s from the house of Hyundai a South Korean company known for its overall image. On the contrary Maruti Estilo and Aveo share the same platform on the brand image. This can be attributed to the fact that both these cars are relatively new on the block and market takes time to imbibe and give the brand an image. This is established by the fact that Maruti’s Wagon R and Swift are exactly the same as far as the image is concerned. Customer Perception of Different Cars 6 Customer Perception ( Avg) 5 4 3 Series1 5 2 4 4 3 4 4 Ac c e n t Ve rn a 3 1 0 Es te e m B a le n o In d i go In d i go Ma ri n a Op tra Ca r B ra n d s As the analysis reveals GM’s Optra fares as the Best Car as far as customers’ perception is concerned about the brand image of the car in the C segment. This is because of the fact that GM International Journal of Research in Management, Economics and Commerce www.indusedu.org 57 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X itself commands an amazing brand image among its customers. Accent and Verna both Hyundai cars share the same position. Customer's Ultimate Perception 80 73 70 Frequency 60 50 40 27 30 20 10 0 Ye s No Customer Action ( Will you recommend your car to your friends?) It seems logical that satisfied customers will someday become loyal customers, in other words there is a positive correlation between customer satisfaction scores and customer buying behavior. If a customer rates the car very high in satisfying his or her needs, the car manufacturer should expect more referrals and this is reflected in the analysis that 73% customers say that they will refer their car to their friends even if they move to other segment or other brand. Customer Perception 40 35 30 12 Values 25 20 15 6 7 17 17 C B 7 23 10 5 11 0 S a m e S e gm e n t, Sam e Se gm e n t, Upper sam e d iffe re n t Se gm e n t, Sam e m an u fa ctu re r m a n u fa ctu re rs Man u factu re r U p pe r S e gm e n t, D iffe re n t Ma n u factu re r Customer Actions International Journal of Research in Management, Economics and Commerce www.indusedu.org 58 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X The analysis shows that most people when moving to upper segment will prefer a different manufacturer. And the next striking finding is that the customers will prefer both same and different manufacturers in the B segment cars and there is not much difference in the C segment also. This behavior is complex to understand as this are the customers who have given whopping response for recommending their car to their friends. It’s the reason why brand perception is so difficult to understand. Demographics age group <21 21-35 36-55 >55 17 20 21 41 MONTHLY FAMILY INCOME International Journal of Research in Management, Economics and Commerce www.indusedu.org 59 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X monthly family income <50,000 50,001-1,00,000 1,00,001-2,00,000 >2,00,001 19 33 19 28 Above graphs exhibits the income bracket of the sample size, as evident the majority of the sample is in the income bracket of < 50,000 a month income. Though none of the bracket is highly skewed, this enables the study to be wide and not dependent on a set income class, which was a fortunately desirable result of simple random sampling. 1. Motive to buy the car*segment car B and C Bar Chart segment Car B 20 Estilo Wagon R Swift 15 Santro Count Getz Indica V2 Aveo 10 Esteem Baleno Accent Verna 5 Indigo Marine Indigo Optra 0 A r fte sa y e e ag im y rit rio ic rv se e on m r's re tu s le r fo y e lu et af S va rt fo om es e up ic pr S al le ac uf an m C ic hn ab rd ffo ec T A e ov r co pe m io tit respondant's objective buying a car brand n According to the result, I found that choice of car depends upon these following factors: So the choice of car is not driven only by intensive factors such as brand perception but is hugely influenced by extensive factors such as price, service, and models available, financing options etc. also the choice of the car is largely influenced by the manufacture image. This is why Maruti is perceived as a value for money car and Getz emerges out as a winner in the B segment for this criteria. As Getz is from the house of Hyundai known for its technology and great design is far International Journal of Research in Management, Economics and Commerce www.indusedu.org 60 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X better perceived as a preferred car than other cars. But a word of caution here, this perception may or may not result in a converted sale. 2. Recommend the car to your friend*ranking of Brand and company Bar Chart respondants' ranking of brand and company image 40 Very Low Low Neutral 30 High Count Very High 20 10 0 yes no Would you recommend your car to your friends The graph shows that people who rank their car high or very high on the brand image are the people who recommend their car to their friend. This is something the car companies should look for as these people may not be the brand loyal but are definitely the people who help a company to reinforce the brand image propagated by the company. 3. ranking of Brand and Image*Segment B and C car Bar Chart segment Car B and C 10 Estilo Wagon R Swift 8 Santro Getz Count Indica V2 Aveo 6 Esteem Baleno Accent Verna 4 Indigo Marine Indigo Optra 2 0 Very Low Low Neutral High Very High respondants' ranking of brand and company image This graph shows that how brand image is useful in making the choice of a car especially in the B and C segment. So, Santro is the car whose brand image is on the top and it’s the most preferred car. International Journal of Research in Management, Economics and Commerce www.indusedu.org 61 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X CONCLUSION To conclude, the results show that the companies are playing on the peripheral cues to maintain their Total Relationship Management and connect to the customers both present and potential. The companies are operating in a highly aggressive and competitive global market place and this climate has led to the emphasis on quality in all aspects. TQM focuses on integration and coordination as well as the continuous improvement of all activities and processes. Total Relationship Management (TRM) is a very recent marketing strategy and philosophy. It focuses on and is concerned with all integrated internal and external activities within and between the organizations. These two terms are integrated by the manufacturers by building good quality products and building good relationship with dealers and enhancing service levels. However, when studied from the point of view of a customer there seems to be no major difference among the car brands in a segment as far as performance is concerned. The brand perception is dependant mostly on the peripheral cues depending upon the nature and quality of the service provided along with the pricing, maintenance, availability of spare parts and related issues. So, a question arises here that is this the end of road for the branding of cars? Has the commoditization of cars has started and its time that manufacturers must read the writing on the wall? It seems so! It seems as an undercurrent sentiment is flowing and the perception of the customers is changing according to it. So this might be the reason that despite Verna faring so high on the performance parameters still lags on the account of converted sales. The study shows that brand perception is something which starts building up before a car is purchased and goes on with its use and is reflected in the recommendations the customer makes to his acquaintances for the same car. Also, its seen that the customer might not be using the car still he holds the perceptions about it. Brand personality of a car is enforced by the sellers in the mindsets of the customers and the customers react to it by forming their perceptions about the car and this reflects in the overall brand image of the car. So brand image and brand personality complement each other and the brand perception aids the building of brand images. Dealers, as per the study findings, play a very important role in building up the brand perception of the cars. Since dealers are the connecting link between the customers and the manufacturers thus becoming the most important link in joining the company to its customers as he is the person who will sell the product, will deliver it and will keep on providing the after sales services to the International Journal of Research in Management, Economics and Commerce www.indusedu.org 62 IJRMEC Volume2, Issue 2(February 2012) ISSN: 2250-057X customers as and when required. So, it becomes necessary automatically to study dealer as a part of customers’ satisfaction journey with the product called car! Their proximity to the customers, the service provided by them and the relationship maintained by them with the customers helps the car companies to establish and reinstate the brand personality communicated by them to the customers. Finally the major point that emerges out of this detailed study is a caution for the car companies. It says that there is no doubt that Indian car market may be growing with a double digit figure still the car companies have a long way to travel to convince their customers about the brand personality of their cars and how it suits the prospective buyers. Simply because it simply is not a guarantee that how so ever good the customer might be holding the brand perception and how so ever good the brand image may be it is not a guarantee that it will convert into sale. Cars just like clothes and accessories suit the style and persona of a person and since all cars will become commodity someday the key to sell and excel in the market will lie with a person who knows how to use the perceptions of the customers to its use and sell the cars ‘coz ultimately only that car survives which sells! REFERENCES 1) Kotler et al. (2004) Chapter 7, pp. 242-244, 'Consumer behaviour' and 'A model of consumer behaviour'. 2) David L. Albert J. Della Bitta, “ Consumer Behavior ” Fourth edition, Tata McGraw Hill, pp - 22 -25 3) Solomon Michal R. ( 2006 ) “ Consumer Behavior ” Pearson Education Delhi pp 31 – 35 4) Hawkins, Del I., R. J. Best, and K. A. Coney (1983), Consumer Behavior: Implications for Marketing Strategy, Plano, Texas: Business Publications Inc. Websites 1) http://www.siamindia.com/scripts/industrystatistics.aspx 2) http://www.siamindia.com/scripts/gross-turnover.aspx 3) http://www.siamindia.com/scripts/market-share.aspx 4) http://www.siamindia.com/scripts/domestic-sales-trend.aspx 5) http://www.learnmarketing.net/consumer.htm International Journal of Research in Management, Economics and Commerce www.indusedu.org 63