Summer Internship Report

On

“TO STUDY THE CUSTOMER PERCEPTION TOWARDS

TATA MOTORS & FACTORS SIGNIFICANT WHILE
CHOOSING A FOUR WHEELER”

By
Aamir Hamidi
A0116209002
MBA-RM Class of 2011

Under the Supervision of

Dr. Himani Sharma

Department of Marketing And Sales

In Partial Fulfillment of Award of Master of Business

Administration

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2010

1
 AMITY UNIVERSITY UTTAR PRADESH
AMITY BUSINESS SCHOOL

DECLARATION

I, Aamir Hamidi student of Masters of Business Administration from Amity Business

School, Amity University Uttar Pradesh hereby declare that I have completed Summer
Internship on

“To study the customer perception towards Tata Motors and factors significant while
choosing a four wheeler” as part of the course requirement .

I further declare that the information presented in this project is true and original to the
best of my knowledge.

Date: 23/07/2010 Aamir Hamidi

Enroll. No:A011620900

Place: Noida MBA-RM Class of 2011

2
3
 AMITY UNIVERSITY UTTAR PRADESH
AMITY BUSINESS SCHOOL

CERTIFICATE

I hereby certify that Aamir Hamidi students of Masters of Business

Administration at Amity Business School, Amity University Uttar Pradesh has completed
Summer Internship on “To study the customer perception towards Tata Motors and
factors significant while choosing a four wheeler”, under my guidance.

Dr.
Himani Sharma

Department of Marketing and Sales

4
 Acknowledgement

I am heartily thankful to all of them who helped me to achieve this project in Tata
Motors. I got lots of support and inspiration from my mentor, Mr. Sanjeev Gulati (G.M).
The support and guidance which my industry mentor provide cannot be expressed by
words.

I am also grateful to Dr. Himani Sharma, Faculty guide (ABS) for her guidance and
support. I wish to express my sincere gratitude to her for providing me an opportunity to
do the project.

Lastly, I offer my regards to all of those who supported me in any respect during the
completion of the project.

Aamir Hamidi

Enroll no. A0116209002

MBA-Retail Management

5
 TABLE OF CONTENT

S.No. Particular Page No.

1. Executive Summary 7

2. Introduction 8- 23

3. Literature Review 24- 29

4. Research Methodology 30- 34

5. Data Analysis & Interpretation 35- 67

6. Findings, Conclusion & Recommendation 68-71

7. Reference 72

8. Annexure 73-77

6
 EXECUTIVE SUMMARY

During my training, project was “To study the customer perception towards Tata Motors
and factors significant while choosing a four Wheeler”. In training I analyzed the
differentiating factor and reasons that customers thinks before while purchasing a car and
also why people choose Tata in comparison to other brands. I also went through various
sales presentation and demonstration to know the selling process. And I learned how
actual sale happen.

For this purpose, a questionnaire was prepared & 100 respondents were approached to fill
that questionnaire & select the factors which according to them should be kept in mind
while choosing a four wheeler and what is the perception of consumers towards Tata
Motors. The area covered under study was Delhi and NCR.

The questionnaire took into account various factors that might be necessary for the
prospective buyers. These were price, quality, pick up, fuel efficiency, brand image,
engine, interior, spacious, free accessories, AC, wheelbase, power steering, power
window, airbags, after sale services and many other things.

Therefore, the project comprises of both primary as well as the secondary data. Primary
data here refers to the questionnaire & the analysis made whereas the secondary data
comprises of the information gained from the company’s official website & the other
published sources.

After receiving all the filled questionnaires, the same were analyzed using simple
analytical tools such as tables & graphs. Once, the analysis was complete, it was clear
which all factors were of utmost important to the customers & which were the least ones.

Hence, it can be said that the objective of the project was completely achieved.

7
Chapter 1- Introduction

8
 History of Automotive Industry in India

In 1953, the government of India and the Indian private sector initiated manufacturing
processes to help develop the automobile industry, which had emerged by the 1940s in a
nascent form. Between 1970 to the economic liberalization of 1991, the automobile
industry continued to grow at a slow pace due to the many government restrictions. A
number of Indian manufactures appeared in 1970-1980. Japanese manufacturers entered
the Indian market ultimately leading to the establishment of Maruti Udyog. A number of
foreign firms initiated joint ventures with Indian companies.

Timeline of Indian automobile industry:

1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves Company,
Mumbai

1901 First Indian to own a car in India – Jamshedji Tata

1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata

1905 Fiat Motors

1911 First Taxi in India

1924 Formation of traffic police

1928 Chevrolet Motors

1942 Hindustan Motors

1944 Premier Auto Limited

1945 Tata Motors

1947 Mahindra Motors

9
1948 Ashok Motors

1948 Standard Motors

1974 Sipani Motors

1981 Maruti Suzuki

1994 Rover Motors

1994 Mercedes Benz

1994 Opel

1995 Ford Motors

1995 Honda SIEL

1995 Reva Electric Car Company

1995 Daewoo Motors

1996 Hyundai Motors

1997 Toyota Kirloskar Motors

1997 Fiat Motors (Re-Entry)

1998 San Motors

1998 Mitsubishi Motors

2001 Skoda Auto

2003 Chevrolet

Following the economic reforms of 1991, the automobile section underwent delicensing
and opened up for 100 percent Foreign Direct Investment. A surge in economic growth
rate and purchasing power led to growth in the Indian automobile industry, which grew at
a rate of 17% on an average since the economic reforms of 1991. The industry provided

10
employment to a total of 13.1 million people as of 2006-07, which includes direct and
indirect employment.

History of Tata Motors

Tata Motors is a part of the Tata Group manages its share-holding through Tata Sons. The
company was established in 1935 as a locomotive manufacturing unit and later expanded
its operations to commercial vehicle sector in 1954 after forming a joint venture with
Daimler-Benz AG of Germany. Despite the success of its commercial vehicles, Tata
realized his company had to diversify and he began to look at other products. Based on
consumer demand, he decided that building a small car would be the most practical new
venture. So in 1998 it launched Tata Indica, India's first fully indigenous passenger car.
Designed to be inexpensive and simple to build and maintain, the Indica became a hit in
the Indian market. It was also exported to Europe, especially the UK and Italy. In 2004 it
acquired Tata Daewoo Commercial Vehicle, and in late 2005 it acquired 21% of
Aragonese Hispano Carrocera giving it controlling rights of the company. It has formed a
joint venture with Marcopolo of Brazil, and introduced low-floor buses in the Indian
Market. Recently, it has acquired British Jaguar Land Rover (JLR), which includes the
Daimler and Lanchester brand names.

Expansion

After years of dominating the commercial vehicle market in India, Tata Motors entered
the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle.
After the launch of three more vehicles, Tata Estate (1992, a station wagon design based
on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994)
and Tata Safari (1998, India's first sports utility vehicle). Tata launched the Indica in
1998, the first fully indigenous passenger car of India. Though the car was initially
panned by auto-analysts, the car's excellent fuel economy, powerful engine and
aggressive marketing strategy made it one of the best selling cars in the history of the
Indian automobile industry. A newer version of the car, named Indica V2, was a major
improvement over the previous version and quickly became a mass-favorite. Tata Motors

11
also successfully exported large quantities of the car to South Africa. The success of
Indica in many ways marked the rise of Tata Motors.

Joint ventures

Tata Marco Polo released this low-floor bus in India and now it is widely used as public
transport in Delhi, Mumbai, Bangalore and Lucknow

Tata Motors has formed a 51:49 joint venture in bus body building with Marcopolo of
Brazil. This joint venture is to manufacture and assemble fully-built buses and coaches
targeted at developing mass rapid transportation systems. The joint venture will absorb
technology and expertise in chassis and aggregates from Tata Motors, and Marcopolo will
provide know-how in processes and systems for bodybuilding and bus body design. Tata
and Marcopolo have launched a low-floor city bus which is widely used by Delhi,
Mumbai, Lucknow and Banglore transport corporations.

Tata Motors also formed a joint venture with Fiat and gained access to Fiat’s diesel
engine technology. Tata Motors sells Fiat cars in India and is looking to extend its
relationship with Fiat and Iveco to other segments. Tata has also formed several JV's with
many small companies in various countries around the world.

Important Development

Tata Nano

12
In January 2008, Tata Motors launched Tata Nano, the least expensive production car in
the world at about Rs. 1,00,000 (US $2,500). The city car was unveiled during the Auto
Expo 2008 exhibition in Pragati Maidan, New Delhi.

Tata has faced controversy over developing the Nano as some environmentalists are
concerned that the launch of such a low-priced car could lead to mass motorization in
India with adverse effects on pollution and global warming. Tata has set up a factory in
Sanand, Gujarat and the first Nano are to roll out summer 2009.

Tata Nano Europa has been developed for sale in developed economies and is to hit
markets in 2010 while the normal Nano should hit markets in South Africa, Kenya and
countries in Asia and Africa by late 2009. A battery version is also planned.

Tata has also been approached by a province in France named Moselle to setup Tata
Nano manufacturing plant.

13
Vision And Mission Statement

Vision

“To evolve into a world class Indian car brand”

Mission

“To provide passenger vehicles that offer customers exceptional value, and through this
build a company that provides its shareholders with superior returns, and is seen by
society and other stakeholders as a valuable contributors to their developments”

14
Tata Motors Profile

Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.
92,519 crores (USD 20 billion) in 2009-10. It is the leader in commercial vehicles in each
segment, and among the top three in passenger vehicles with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's fourth largest truck
manufacturer, and the world's second largest bus manufacturer.

The company's 24,000 employees are guided by the vision to be "best in the manner in which we
operate, best in the products we deliver, and best in our value system and ethics."

Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat
Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat
powertrains. The company is establishing a new plant at Sanand (Gujarat). The company's
dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors
also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the New York Stock
Exchange (September 2004), has also emerged as an international automobile company. Through
subsidiaries and associate companies, Tata Motors has operations in the UK, South Korea,
Thailand and Spain. Among them is Jaguar Land Rover, a business comprising the two iconic
British brands that was acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles
Company, South Korea's second largest truck maker. The rechristened Tata Daewoo Commercial
Vehicles Company has launched several new products in the Korean market, while also exporting
these products to several international markets. Today two-thirds of heavy commercial vehicle

15
exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in
Hispano Carrocera, a reputed Spanish bus and coach manufacturer, and subsequently the
remaining stake in 2009. Hispano's presence is being expanded in other markets. In 2006, Tata
Motors formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building
for buses and coaches to manufacture fully-built buses and coaches for India and select
international markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles
in Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup
truck, with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint, established through exports since 1961.
The company's commercial and passenger vehicles are already being marketed in several
countries in Europe, Africa, the Middle East, South East Asia, South Asia and South America. It
has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal
and South Africa.

The foundation of the company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 3,000 engineers and scientists, the company's
Engineering Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur, Lucknow, Dharwad in
India, and in South Korea, Spain, and the UK. It was Tata Motors, which developed the first
indigenously developed Light Commercial Vehicle, India's first Sports Utility Vehicle and, in
1998, the Tata Indica, India's first fully indigenous passenger car. Within two years of launch,
Tata Indica became India's largest selling car in its segment. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India's first indigenously developed mini-truck.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world
have been looking forward to. The Tata Nano has been subsequently launched, as planned, in
India in March 2009. A development, which signifies a first for the global automobile industry,
the Nano brings the comfort and safety of a car within the reach of thousands of families. The
standard version has been priced at Rs.100,000 (excluding VAT and transportation cost).

Designed with a family in mind, it has a roomy passenger compartment with generous leg space
and head room. It can comfortably seat four persons. Its mono-volume design will set a new
benchmark among small cars. Its safety performance exceeds regulatory requirements in India. Its

16
tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants,
it has a lower pollution level than two-wheelers being manufactured in India today. The lean
design strategy has helped minimise weight, which helps maximise performance per unit of
energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the
car has low carbon dioxide emissions, thereby providing the twin benefits of an affordable
transportation solution with a low carbon footprint.

In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry, in
keeping with its pioneering tradition, by unveiling its new range of world standard trucks called
Prima. In their power, speed, carrying capacity, operating economy and trims, they will introduce
new benchmarks in India and match the best in the world in performance at a lower life-cycle
cost.

Tata Motors is equally focused on environment-friendly technologies in emissions and alternative

fuels. . It has developed electric and hybrid vehicles both for personal and public transportation. It
has also been implementing several environment-friendly technologies in manufacturing
processes, significantly enhancing resource conservation

Through its subsidiaries, the company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
supply chain activities, machine tools and factory automation solutions, high-precision tooling
and plastic and electronic components for automotive and computer applications, and automotive
retailing and service operations.

Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives of
more than a million citizens. The company's support on education and employability is focused
on youth and women. They range from schools to technical education institutes to actual
facilitation of income generation. In health, our intervention is in both preventive and curative
health care. The goal of environment protection is achieved through tree plantation, conserving
water and creating new water bodies and, last but not the least, by introducing appropriate
technologies in our vehicles and operations for constantly enhancing environment care.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

17
Manufacturing

Tata Motors owes its leading position in the Indian automobile industry to its strong focus
on indigenisation. This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product evolution-
design, development, manufacturing, assembly and quality control, is carried out
meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in
the West and Lucknow in the North.

Jamshedpur:
Established in1945, the Jamshedpur unit was the company's first unit and is spread over
an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine Factory, Cab
& Cowl Factories.

Pune:
The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and Chinchwad
(130 acres). It was established in 1966 and has a Production Engineering Division, which
has one of the most versatile tool making facilities in the Indian sub-continent.

Lucknow:
Tata Motors Lucknow is one of the youngest production facilities among all the Tata
Motors locations and was established in 1992 to meet the demand for Commercial
Vehicles in the Indian market.

Uttarakhand
The company has set up a plant for its mini-truck Ace and the passenger carrier Magic
(based on the Ace platform) at Pantnagar in Uttarakhand. This is the company's fourth
plant, after Jamshedpur (commercial vehicles), Pune (commercial vehicles and passenger

18
vehicles) and Lucknow (commercial vehicles). The plant is spread over 953 acres, of
which 337 acres is occupied by the vendor park.

Joint Venture, Subsidiary and Associate Companies

Tata Motors has several joint venture, subsidiary and associate companies:

Jaguar Land Rover

Tata Technologies Ltd. (TTL) and its subsidiaries

Telco Construction Equipment Co. Ltd. (Telcon)

HV Axles Ltd. (HVAL)

HV Transmissions Ltd. (HVTL)

TAL Manufacturing Solutions Ltd. (TAL)

Sheba Properties Ltd. (Sheba)

Concorde Motors (India) Ltd. (Concorde)

Tata Daewoo Commercial Vehicle Company Ltd (TDWCV)

Hispano Carrocera S. A. (HC)

Tata Motors Insurance Broking & Advisory Services Ltd (TMIBASL)

Tata Motors European Technical Centre plc

Tata Motors Finance Limited

Tata Motors Thailand

Tata Marcopolo Motors Ltd (TMML)

Tata Motors(SA) Proprietary Ltd (TMSA)

TML Distribution Company Ltd (TDCL)

19
Products of Tata Motors (Passenger vehicle)

Tata Indica Vista

Tata Indigo Manza

20
Tata Indigo CS

Tata Safari

21
Tata Nano

22
Preamble of research

PURPOSE OF STUDY

The purpose of study is to understand the customer perception towards Tata Motors and
to get a deep insight into the various influencing factors significant while choosing a four
wheeler.

OBJECTIVE OF THE STUDY

• To analyze the customer perception towards Tata Motors.

• To analyze the important factors while choosing a four wheeler.

23
Chapter 2- Literature Review

24
Conceptual framework

Background

Consumer Perception

Customer perceptions are what indicate whether you have achieved satisfaction or not. In
other words, they represent stepping stones along a continuum. Perceptions accumulate
over time and gradually equate to either satisfaction or dissatisfaction. You job is to
understand and act on these perceptions so the final result is customer satisfaction.

The word ‘perception’ was used in ISO 9001, in my opinion, to highlight just how
subjective this quality is. Perceptions can comprise just about anything: fact, fiction,
fantasy, whatever. If customers believe their perceptions, though, the perceptions have the
weight of fact. That is why it is so important to reach out to customers and specifically
ask them what they think. By their very nature, you probably won’t agree with all the
perceptions. A perception equals fact in the mind of the customer, though. You must act
on these perceptions and let the customer know what you’ve done.

Customer perceptions are influenced by a variety of factors. Besides the actual outcome –
i.e. did the product or service deliver the expected function and did it fulfil the customers
need – the whole process of consumption and all interactions involved are of crucial
importance. In today’s globalize information driven economy this can also comprise
issues like

How other customers or influencing groups perceive the product or brand

The degree to which the customer feels the actual marketing campaign addresses the most
important issues

Responsiveness and service quality of any affiliates, e.g. distribution partners

25
Customer perceptions are dynamic. First of all, with the developing relationship between
customer and company, his perceptions of the company and its products or services will
change.

The backbone of any customer perception management and measurement system,

however, is thorough market research and surveys.

• Before purchasing a product customer consider many factors hence the decision
making process is given below:

THE DECISION PROCESS CAN BE DIVIDED INTO FIVE STAGES:

1. Problem Recognition

This occurs when the buyer notices that there is a difference between the desired state and
the actual conditions. The consumer gets aware that he has to change something to get
satisfied. For example, the person recognizes that there is a difference between the
desired state (a working mobile) and the actual condition ( a broken mobile).

2. Information Search

After receiving the problem, the buyer searches for information about a new product that
can solve his problem and also will be able to satisfy his needs.

Here we can distinguish two aspects to an information search:

In the internal search buyer check first if they have any information about the needed
product in their memory. If they cannot get enough information for their memory for a
decision, they are looking for more information in an external search. In an external
search the buyer may focus on communication with friends or relatives, to hear about

26
their experience with special brands. He also can obtain information from public sources
like manufacturers, sales persons or product test organizations.

3. Evaluation of alternatives

To evaluate the products of which the buyer got information is looking for criteria to
compare the products. These criteria are for example characteristics or features that the
buyer wants (or does not want). The buyer also thinks about how important each criterion
is because some features may carry more weight than others. This evaluation of consumer
can be influenced by the marketer by framing the alternatives that means the manner how
the marketer describes the products and their features.

4. Purchase

In this stage the consumer chooses the product or brand which he wants to buy. This
selection is based on the result of the previous evaluation stage. There is also a set of
criterions, which must be taken into account.

One of the most important criterions is the product availability, which may influence
which brand is purchased. If the favorite brand is not available at the moment the
consumer may choose the brand that is ranked second. Other criterion that also could be
important for the consumer is for example the price, delivery, guarantees, maintenance,
agreements and installation and credit agreements.

5. Post Purchase Evaluation

After the purchase the buyer begins to check the product with actual performance meeting
the expected level. In this stage many of the criteria used on the evaluating alternatives
stage are used again. The result is either satisfaction or dissatisfaction.

• Bill Brewer presents an original view of the role of conscious experience in the
acquisition of empirical knowledge. He argues that perceptual experiences must

27
 provide reasons for empirical beliefs if there are to be any determinate beliefs at
all about particular objects in the world. This fresh approach to epistemology turns
away from the search for necessary and sufficient conditions for knowledge and
works instead from a theory of understanding in a particular area.

• Paul Rookes and Jane Wilson explain perception and perceptual processes in a
way that almost anyone can understand. The study of perception, or how the brain
processes information from the senses, has fascinated psychologists and
philosophers for a long time. Perception takes the key research areas and presents
the arguments and findings in a clear, concise form, enabling the reader to have a
quick working knowledge of the area.

This clear and informative text discusses sensation and perception then looks
at theories and explanations of perception. The way visual perception is structured is
examined, followed by an analysis of the development of perceptual processes. The
authors then consider individual social and cultural variations in perceptual
organization. Perception will be particularly useful to students new to higher-level
study. With it's helpful textbook features to assist in examination and learning
techniques, it should interest all introductory psychology students.

• To effectively communicate, we must realize that we are all different in the way
we perceive the world and use this understanding as a guide to our communication
with others.

- Tony Robbins

• It is our choice how we choose to see and perceive things. We always get to
choose how we see a person, place or a situation. Our perception determines our
experience.
- Ryan Pearson

28
• Disability is a matter of perception. If you can do just one thing well, you're
needed by someone.
- Martina Navratilova

29
Chapter 3- Research Methodology

30
MARKET RESEARCH PROBLEMS

1. To study the customer Perception towards Tata Motors.

Hypotheses

The perception of customers towards Tata Motors is good.

2.To study the factors significant while choosing a four wheeler with reference to

Tata Motors.

31
Research Method
Research is a collection and analysis of data gathered from a sample of individuals
relating to their characteristics, behavior, attitudes or opinions (Market research society,
1998). Research objectives can be obtained or answered by using both primary and
secondary-research. Collins (1985) further defines research as, “systematic investigation
to establish facts or principles or to collect information on the subject” (p.1690). (Finn et
al., 2000) suggests that existing literature will benefit primary research and work as a
framework for analysis; likewise research carried out will constantly review, modify and
challenge the theoretical details.

Primary Research

Primary research (also called field research) involves the collection of data that does not
already exist, which is research to collect original data. Primary Research is often
undertaken after the researcher has gained some insight into the issue by collecting
secondary data. This can be through numerous forms, including questionnaires, direct
observation and telephone interviews amongst others. This information may be collected
in things like questionnaires and interviews .

Secondary-Research

Secondary research includes data that has been previously collected and assembles for
projects other than the one in hand (Zikmund, 1999). This method allows researchers to
evaluate and identify gaps in literature with the help of various sources which further
validates the proposal economically. It is relatively inexpensive as compared to primary-
research and can be undertaken without going into the field.

32
Primary data resources used

Questionnaire

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents.

Secondary data resource used

Industry presentations and company database.

Books , electronic resources.

Different forms of secondary-methods have been used to gather relevant data for study
which can further be analyzed to make appropriate implications and achieve the
objectives. This includes topics that have been discussed covering the subject area and
has identified areas that need to be explored. However, there is a disadvantage of
information being outdated as this industry is evolving at a rapid pace.

Data Collection

Primary Data

It is collected through questionnaire, and analysis is done with the SPSS software and MS
Excel.

Secondary Data

These are collected through websites, company database, and company reports.

33
Research Design

The research design here used is descriptive research. Descriptive research, also known
as statistical research, describes data and characteristics about the population or
phenomenon being studied. Descriptive research answers the questions who, what, where,
when and how.

Sampling method

Non Probability Sampling This includes the personal judgment of the researcher rather
than chance to select sample elements. The researcher can arbitrarily or consciously
decide what elements to include in the sample. Non probability samples may yield good
estimates of the population characteristics. Commonly used non probability sampling
techniques are:

• Convenience Sampling
• Judgmental sampling

Scaling Technique

Scaling technique used here is Likert scale, and Q – sort scaling. Likert scaling involves a
list of statements relating to attitude in question. In Likert scaling we can also check the
degree of agreement and disagreement. Each degree of agreement and disagreement is
given a score on a level of 1 to 5 or it can also be rated on at a scale of 1 to 5. Score is
computed by summing up these scores from all the statements. Q – sort scaling, a scaling
technique that uses a rank order procedure to sort objects, based similarity respect to
some criterion.

34
 Chapter-4
Data Analysis

35
Keeping in mind the pre- requisites of the research, the research survey was done for 150
respondents. These belong to different age groups and professions.

Question 1 Which vehicle do you own ?

options no. of respondent

(a) Maruti 28

(b) Tata 22

(c) Hyundai 32

(d) chevrolet 6

(e) Honda 8

(f) other 4

current vehicle which customer own

35
no. of respondents

30
25
20
no. of respondent
15
10
5
0
t

a
ta

r
i

ai

le
ut

he
nd
Ta

nd

ro
ar

ot
Ho
ev
M

yu
)

(f)
(b

ch
H
)

)
(a

(e
c

)
(d

options

Chi-square test

36
Frequencies

Maruti

Observed N Expected N Residual

no 72 50.0 22.0

yes 28 50.0 -22.0

Total 100

Tata

Observed N Expected N Residual

no 78 50.0 28.0

yes 22 50.0 -28.0

Total 100

Hyundai

Observed N Expected N Residual

no 68 50.0 18.0

yes 32 50.0 -18.0

Total 100

37
Chevrolet

Observed N Expected N Residual

no 94 50.0 44.0

yes 6 50.0 -44.0

Total 100

Honda

Observed N Expected N Residual

no 92 50.0 42.0

yes 8 50.0 -42.0

Total 100

Other

Observed N Expected N Residual

no 96 50.0 46.0

yes 4 50.0 -46.0

Total 100

38
Test Statistics

maruti tata hyundai chevrolet honda other

Chi-Square 19.360a 31.360a 12.960a 77.440a 70.560a 84.640a

df 1 1 1 1 1 1

Asymp. Sig. .000 .000 .000 .000 .000 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 50.0.

Question 2 Which fuel option of Tata vehicle you want to purchase?

options no. of respondents

Diesel 70

Petrol 30

39
 fuel option of Tat vehicles customer want to
purchase

80
70
no. of respondents

60
50
40 no. of respondents
30
20
10
0
Diesel Petrol
options

Chi-Square test

Frequencies

Diesel

Observed N Expected N Residual

no 30 50.0 -20.0

yes 70 50.0 20.0

Total 100

40
Petrol

Observed N Expected N Residual

no 70 50.0 20.0

yes 30 50.0 -20.0

Total 100

Test Statistics

diesel petrol

Chi-Square 16.000a 16.000a

df 1 1

Asymp. Sig. .000 .000

a. 0 cells (.0%) have expected

frequencies less than 5. The minimum
expected cell frequency is 50.0.

41
Question 3 what are the options you are looking in Tata?

Options no. of respondents

(a) Indigo Manza 38

(b) Indica Vista 20

(c) Indigo CS 24

(d) Safari 16

(e) nano 2

options customer looking in Tata

40
35
no. of respondents

30
25
20 no. of respondents
15
10
5
0
(a) Indigo (b) Indica c Indigo (d) Safari (e) nano
Manza Vista CS
options

42
Chi-Square Test

Frequencies

indigo_manza

Observed N Expected N Residual

no 62 50.0 12.0

yes 38 50.0 -12.0

Total 100

indica_vista

Observed N Expected N Residual

no 79 50.0 29.0

yes 21 50.0 -29.0

Total 100

43
indigo_CS

Observed N Expected N Residual

no 74 50.0 24.0

yes 26 50.0 -24.0

Total 100

safari

Observed N Expected N Residual

no 84 50.0 34.0

yes 16 50.0 -34.0

Total 100

nano

Observed N Expected N Residual

no 98 50.0 48.0

yes 2 50.0 -48.0

Total 100

44
Test Statistics

indigo_manza indica_vista indigo_CS safari nano

Chi-Square 5.760a 33.640a 23.040a 46.240a 92.160a

df 1 1 1 1 1

Asymp. Sig. .016 .000 .000 .000 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 50.0.

Question 4 Kindly rate the features of Tata vehicles.

Particulars poor average Good very good Best

Looks of the vehicle 0 6 66 16 12

Interiors of the vehicle 0 8 66 20 6

Leg space 0 8 30 50 2

Boot space 0 12 20 58 10

seat comfort 1 18 48 25 8

45
pick up 0 24 42 26 8

operations 0 26 46 18 10

overall evauation 0 4 66 22 8

featurs of tata vehicle

70
no. of respondents

60 poor
50 average
40 good
30
very good
20
10 best
0
comfort
Looks of

Leg space

operations
vehicle

seat
the

options

Z-Test

46
One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

looks_of_vehicle 100 3.3400 .76831 .07683

interior_of_the_vehicle 100 3.2400 .68343 .06834

leg_space 100 3.6400 .82290 .08229

boot_space 100 3.6800 .83943 .08394

seat_comfort 100 3.1600 .88443 .08844

pick_up 100 3.1400 .94302 .09430

operations 100 3.1200 .91320 .09132

over_all_evaluation 100 3.3600 .71802 .07180

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

looks_of_vehicle 43.472 99 .000 3.34000 3.1876 3.4924

interior_of_the_vehicle 47.408 99 .000 3.24000 3.1044 3.3756

leg_space 44.234 99 .000 3.64000 3.4767 3.8033

boot_space 43.839 99 .000 3.68000 3.5134 3.8466

seat_comfort 35.729 99 .000 3.16000 2.9845 3.3355

pick_up 33.297 99 .000 3.14000 2.9529 3.3271

operations 34.165 99 .000 3.12000 2.9388 3.3012

over_all_evaluation 46.795 99 .000 3.36000 3.2175 3.5025

47
Question 5 What do you think most important things while purchasing a new
vehicle?

Faster Pick up

48
Looks

Mileage

49
After sale service

Maintenance cost

50
Safety

Brand Value

51
Price

Z-Test

52
One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

faster_pick_up 100 3.6800 2.07379 .20738

looks 100 3.4400 2.27556 .22756

mileage 100 3.3600 2.13447 .21345

after_sale_service 100 4.5000 2.23155 .22315

maintenance_cost 100 5.7800 1.97244 .19724

safety 100 5.2800 1.98010 .19801

brand_value 100 5.3200 1.99434 .19943

price 100 4.6400 2.35067 .23507

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

faster_pick_up 17.745 99 .000 3.68000 3.2685 4.0915

looks 15.117 99 .000 3.44000 2.9885 3.8915

mileage 15.742 99 .000 3.36000 2.9365 3.7835

after_sale_service 20.165 99 .000 4.50000 4.0572 4.9428

maintenance_cost 29.304 99 .000 5.78000 5.3886 6.1714

safety 26.665 99 .000 5.28000 4.8871 5.6729

brand_value 26.676 99 .000 5.32000 4.9243 5.7157

price 19.739 99 .000 4.64000 4.1736 5.1064

53
Question 6 Tata vehicles are good at:

Particulars poor average good very good best

1. Price 0 4 68 18 10

2. Design 2 18 46 18 16

3. Mileage 4 8 32 48 8

4. interior space 2 10 30 36 22

54
 5. safety 8 28 26 30 8

Tata vehicles are good at:

80
70
no. of respondent

60 1. Price
50 2. Design
40 3. Mileage
30 4. interior space
20 5. safety
10
0
poor average good very good best
options

Z-test

One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

price 100 3.3400 .71379 .07138

design 100 3.2400 1.05524 .10552

mileage 100 3.5200 .92638 .09264

interior_space 100 3.6600 .99717 .09972

safety 100 3.0200 1.10992 .11099

55
One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t df Sig. (2-tailed) Mean Difference Lower Upper

price 46.793 99 .000 3.34000 3.1984 3.4816

design 30.704 99 .000 3.24000 3.0306 3.4494

mileage 37.997 99 .000 3.52000 3.3362 3.7038

interior_space 36.704 99 .000 3.66000 3.4621 3.8579

safety 27.209 99 .000 3.02000 2.7998 3.2402

Question 7 The cost of ownership of a Tata vehicle:

options no. of respondent

very economical 2

economical 38

average 56

expensive 4

very expensive 0

56
 cost of ownership

60
no. of respondents

50
40
30 no. of respondent
20
10
0

e
e

ive
l

al
ica

ag

iv
ic

ns
ns
om

er
om

pe
pe
av
on

on

ex
ex
ec

ec

ry
ry

ve
ve

options

Chi-square test

Frequencies

very_economical

Observed N Expected N Residual

no 98 50.0 48.0

yes 2 50.0 -48.0

Total 100

57
economical

Observed N Expected N Residual

no 62 50.0 12.0

yes 38 50.0 -12.0

Total 100

average

Observed N Expected N Residual

no 44 50.0 -6.0

yes 56 50.0 6.0

Total 100

expensive

Observed N Expected N Residual

no 96 50.0 46.0

yes 4 50.0 -46.0

Total 100

58
very_expensive

Observed N Expected N Residual

no 100 100.0 .0

Total 100a

a. This variable is constant. Chi-Square Test cannot be performed.

Test Statistics

very_economical economical average expensive

Chi-Square 92.160a 5.760a 1.440a 84.640a

Df 1 1 1 1

Asymp. Sig. .000 .016 .230 .000

a. 0 cells (.0%) have expected frequencies less than 5. The minimum

expected cell frequency is 50.0.

59
Question 8 Do you think test drive is important before buying a vehicle?

options no. of respondents

Yes 98

No 2

Test drive is important before buying vehicle

120

100
no. of respondents

80

60 no. of respondents

40

20

0
Yes No
options

Chi-Square test

Frequencies

60
Yes

Observed N Expected N Residual

no 2 50.0 -48.0

yes 98 50.0 48.0

Total 100

No

Observed N Expected N Residual

no 98 50.0 48.0

yes 2 50.0 -48.0

Total 100

Test Statistics

yes no

Chi-Square 92.160a 92.160a

Df 1 1

Asymp. Sig. .000 .000

a. 0 cells (.0%) have expected

frequencies less than 5. The minimum
expected cell frequency is 50.0.

61
Question 9 What is the best thing you like about Tata?

particulars poor Average Good very good best

product desgn 4 12 66 12 6

Brand 2 0 42 42 14

product features 0 20 56 20 4

Service 4 22 60 14 0

maintenance cost 2 18 60 20 0

overall riding comfort 0 8 64 24 4

best thing customer like about Tata

no. of respondents

70
60
50
40
30
20 poor
10
0 average
good
rt
d

es

ce
n

st

fo
sg

an

co
i
ur

very good
m
rv
Br
de

at

co
Se

ce
fe
t

an
uc

best
t

in
uc
od

en

id
od
pr

lr
nt

al
pr

ai

er
m

ov

options

Z-Test

62
One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

product_design 100 3.0200 .81625 .08162

brand 100 3.6600 .79417 .07942

product_features 100 3.0800 .74779 .07478

service 100 2.8000 .69631 .06963

maintenance_cost 100 3.0000 .69631 .06963

overall_riding_comfort 100 3.2800 .69747 .06975

One-Sample Test

Test Value = 0

95% Confidence Interval of the

Difference

t Df Sig. (2-tailed) Mean Difference Lower Upper

product_design 36.999 99 .000 3.02000 2.8580 3.1820

brand 46.086 99 .000 3.66000 3.5024 3.8176

product_features 41.188 99 .000 3.08000 2.9316 3.2284

service 40.212 99 .000 2.80000 2.6618 2.9382

maintenance_cost 43.084 99 .000 3.00000 2.8618 3.1382

overall_riding_comfort 47.027 99 .000 3.28000 3.1416 3.4184

Question 10 Do you recommend Tata vehicle to your friends and relatives?

63
options no. of respondents

Yes 92

No 8

Recommend Tata vehicle to others

100
90
no. of respondents

80
70
60
50 no. of respondents
40
30
20
10
0
Yes No
options

Chi-Square Test

Frequencies

Yes

Observed N Expected N Residual

no 8 50.0 -42.0

yes 92 50.0 42.0

Total 100

64
No

Observed N Expected N Residual

.00 92 50.0 42.0

1.00 8 50.0 -42.0

Total 100

Test Statistics

yes no

Chi-Square 70.560a 70.560a

Df 1 1

Asymp. Sig. .000 .000

a. 0 cells (.0%) have expected

frequencies less than 5. The minimum
expected cell frequency is 50.0.

65
 Chapter 5-
Findings, Conclusion
And
Recommendation

Findings

• Most of the customers are using Hyundai brand. Now they shifting from Hyundai
to Tata, after Hyundai Maruti brand is used by the customers and after it Tata is
used by the customers, it shows that they are using Tata and again they are opting
for Tata vehicle.

• Mostly customers opt for diesel engine rather than petrol engine in Tata vehicles.

66
 • Now a days the most demanded car of Tata is Indigo Manza because of its
features at economical prices, secondly Indigo CS because recently it launched e-
series with advanced engine and new features.

• Customers rate the features of Tata vehicle and according to them the looks of the
vehicle are good, interior are good, the leg space is very good, boot space is again
very good, seat comfort is good, pick up is good, the operations are good, and last
but not the least the overall evaluation is good.

• According to customers the important things while purchasing a new vehicle is its
mileage, looks and the least important is the brand value, this shows that customer
see product not the brand , the product should be good doesn’t matter what the
brand is.

• According to the customers the Tata vehicle are good at its price, design and very
good at its mileage, interior space and safety.

• The cost of ownership of a Tata vehicle is average, not too high and not too low.

• 98% of customers think that test drive is important before purchasing a vehicle.

• The best thing customers like about Tata vehicles is its design are good, Brand is
very good, the features of the product are good, the service they provide is again
good, maintenance cost is good, and finally the riding comfort is good.

• 92% of the customers said they will recommend the Tata vehicle to others.

Conclusion

To study the customer Perception towards Tata Motors.

Hypotheses

Ho: The perception of customers towards Tata Motors is good.

67
 Ha: The perception of customers towards Tata Motors is not good.

According to the data available and analysis it is clearly observe that : Alternate
hypothesis is rejected.

The factors significant while choosing a four wheeler are Mileage and looks which
customer prefer as important and things, the thing which is least important is brand
value. And, another thing that is test drive is also consider very important before choosing
a four wheeler.

Most of the respondents think Tata vehicles are good at overall basis and in case of
specific things like the interior space it is very spacious , the leg space is also spacious, if
we talk about safety the Tata vehicle’s come under European safety norms. Tata Motors
is using the same quality of paint which Mercedes Benz is using.

Recommendation

• More offers should be provided to customers.

• Car delivery time should be less.

68
 • The plastic quality should be improved in Tata cars .

• More test drives should be offered.

References
Books

Naresh K. Malhotra, “Marketing Research”

Philip Kotler, “ Marketing Management”

Leon G. Schiffman, “Consumer Behaviour”

69
Bill Brewer, “Perception and Reason”

Perception Theory, Development, and Organization, “Paul Rookes, Jane Willson”

Websites

www.tatamotors.com

www.themanager.org/marketing/Customer_Perception.htm

www.carwala.com

http://elsmar.com/Forums/showthread.php?t=10730

www.gaadi.com

www.articlesbase.com/article-tags/perception

Others

Company’s brochures and presentations

Article: Choose Your Perception to Create Your Reality

70
 Annexure

QUESTIONNAIRE
NAME: _________________________________________

GENDER: Male Female

Age: _____ years

ADDRESS: _______________________________________

71
OCCUPATION:____________________________________

CONTACT NO.: ___________________________________

QUESTIONS

1. Which vehicle do you own?

(a) Maruti ____________ (b) Tata_______________

(c) Hyundai___________ (d) Chevrolet___________

(e) Honda_____________ (f) other ______________

Year of manufacture:________________

2. Which fuel option of Tata vehicles you want to purchase?

(a) Diesel (b) Petrol

3. What are the options you are looking in Tata?

(a) Indigo Manza (d) Safari

(b) Indica Vista (e) Nano

(c) Indigo CS

4.Kindly rate the features of Tata vehicle.

1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best

1 2 3 4 5

• Looks of the vehicle

• Interiors of the vehicle

72
• Leg Space

• Boot Space

• Seat comfort

• Pick up

• Operations

• Over all evaluation

4. What do you think most important things while purchasing a new vehicle?

(Rank from 1 to 8 , 1 most important and 8 least important )

(a) Faster pick up

(b) Looks

(c) Mileage

(d) After sales service

(e) Repair/Maintenance cost

(f) Safety

(g) Brand value

(h) Price

5. Tata vehicles are good at: (Rate 1 to 5 )

1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best

1. Price

73
 2. Design

3. Mileage

4. Interior space

5. Safety

7. The cost of ownership of a Tata vehicle:

5 – very economical

4 – economical

3 – average

2 – expensive

1 – very expensive

4
5 3 2 1

8. Do you think test drive is important before buying a vehicle?

(a) Yes (b) No

9. What is the best thing you like about Tata Motors?

1 – Poor, 2 – Average, 3 – Good, 4 – Very good, 5 – Best

74
 Particulars 1 2 3 4 5

• Product Design

• Brand

• Product Features

• Service

• Maintenance cost

• Overall riding comfort

10. Do you recommend Tata vehicles to your friends and relatives?

(a) Yes (b) No

75