Maruti Suzuki - Consumer Buying Behaviour Case Study

Question: Discuss about the Analyse and Determine Consumer Buying Behaviour. Answer: Introduction Maruti Suzuki India Limited is initially known as the Maruti Udyog Limited. According to Anderson et al. (2010), the brand is manufactured in the Indi a market and has a subsidiary in the Japanese automobile manufacturer, Suzuki Motor Corporation. The statistics of 2016 reflects that the enterprise has managed to attain a market share of 47% of the Indian passenger car market. In the year 2008, the management of the brand has launched Maruti Suzuki Swift Dzire in the Indian market. It has been replaced with the long-standing Maruti Esteem and shared the engine with its hatchback. Saikia (2012) determined that the Indian customers are highly satisfied with the smooth and the efficient performance of its petrol version. In the year 2010, Swift Dzire has been fitted with the heavily revised version of the K12 engine. Thackeray et al. (2007) claimed that in certain states, the 3rd generation of Suzuki Swift Dzire makes use of a 1.4-liter VVT petrol engine (K14B) that produces 95hp. The r esponses of the customers towards the specific product are highly positive. The price range of the specific product is between the ranges of Rs 5.27 8.52 lakh. The prospects are extremely satisfied with receiving the supreme features of the car within such affordable price range. General problem / opportunity In the context of the present subject, Hinterhuber and Bertini (2011) mentioned that the solutions to the new Maruti Swift brakes are not working at the low speed. Although Maruti Suzuki Dzire has not yet announced officially any of its solution criteria before the media, yet, the management of the enterprise is recently contacting the new Swift customers who rose up the complained regarding the brakes related issues in the past. The brand has updated the software of ECU which tends to control the engine of modernMPFIandCRDIcars. Conklin (2010) determined that the customers having the issues have been called at Bangalore, where the models have been updated with the ECU software. After the installation of the software, the cars have been examined again, and the issues have been found to be resolved. Inference can be drawn from the later evaluation that proficient technical team can stand out to be the major opportunity for the enterprise. The customers have already generated a huge interest towards the car segment. Therefore, the service unit requires being efficient enough to resolve the stand out issues of the customers to increase the percentages of the loyal prospects. The significance of the research topic The present research topic presents an idea regarding the purchasing behaviour of the Indian customers towards the hatchback car models. The present study would also reflect upon the specification criteria the Indian customers are seeking while purchasing the hatchback cars in Delhi market. Identification of the scope of review The current study would evaluate the customer reaction towards the hatchback cars in the Delhi, Indian market. The current study would exclusively emphasise on the efforts taken by management to widespread the accessibility of Maruti Swift Dzire amongst the Delhi customers. Research Question: What is the current situation of customers buying attitude towards the hatchback cars in Delhi? What are the factors affecting the customers purchasing behaviour for Maruti Suzuki Swift in India? What would be the suitable strategies to improve the customers purchasing behaviour of hatchback cars in Delhi? The current situation of customers buying attitude: Cars purchasing is one the second most important and expensive decision for the people of Indian middle-class family. The Indian automobile sector is one of the Indias major sectors and accounts for 22% of the countrys manufacturing GDP (Kalimuthu Rath, 2015). It has been speculated that the Automobile market of Delhi is majorly dominated by the two wheelers as most of the buyers prefer to buyers two wheelers rather than the four wheelers. Thus, it can be observed that the four wheeler car industry in India is small as the majority prefer the two wheelers vehicles. According to the industry statistics report by SIAM (Society of Indian Automobile Manufacturers), the passenger car sells in the Indian market has crossed two million units in FY 2011-2012 (www.automotiveml.com, 2016). For an example, it has been identified that Maruti Suzuki is one of the current market leader in Indian automobile sector having the market share of 49.24% (www.marutisuzuki.com, 2016). However, Hyundai Mot or India is the second preference to the Indian customer with having 21.44% of the total market share. In the addition, Honda is the third choice for the Delhi customers, and it holds only 6.56% market share. As per the opinion of Lucas Henion (2006), the automobile industry would be increased gradually as the customers could change the buying behaviour towards the passenger car segment. Moreover, it has been observed that the customers purchasing power parity is increased in the case of Suzuki Dzire in India. Supporting this, Nowak (2016) added that The Dzire was the number one with 17,796 units followed by the Honda City in the Indian market. The statics indicates that the hatchback car segment contributes 52% market share in 2016 in India (www.marutisuzuki.com, 2016). The factors affecting the customers purchasing behaviour for Maruti Suzuki Swift India is increasingly booming towards the automotive hub by increasing the quality of production from the existing level. The consumer purchasing decision of Indian market depends on the several factors. The attitude plays a major role to influence the purchasing decision if the buyers. The people who have unlimited budget prefers to buy the sports car and the hatchbacks cars. In the opinion of Sheth et al. (2007), personality is the other factor which determines the selection of car while buying. The soft and calm person prefers to choose the small cars. The model of Maruti Suzuki Swift is famous for every category of people. The lifestyle factor of the customers is the other major players to influence the customers buying attitude. Considering the opinion of Solomon (2009), the family-oriented people required to prefer the hatchback cars to solve the purpose. The purchase decision model helps to understand the buying attitude of the Indian Maruti Suzuki Swift. The first step Problem Recognition helps the consumer segment to realise the requirement for the cars. According to the opinion of Poorani et al. (2016), the Indian customers use the various authentic sources to collect related information while purchasing any car. It has been observed that the currently Maruti Suzuki Swift has occupied second highest position by selling 14, 524 units in the last year (www.automotiveml.com, 2016). The model shows that evaluation of the alternative is the next segment of this model that helps the customers to compare the chosen model in terms of price and equipment. As the Suzuki Swift is available in an affordable range, this, the majority of the customers presently prefers the model while purchasing the hatchbacks cars. In this circumference, Varma Dr. Manjula D. M. Y. M. (2011) mentioned that most of the Indian buyers follow the similar process w hile buying the family cars. Festival is the other factor for the Indian consumers as the offer of a discount is provided by the car selling firm during the time of the festival. Hence, an inference can be drawn that the several significant factors can be responsible for the customers buying nature in India. Recommended strategies to improve the customers purchasing behaviour towards hatchback Provision of the mobility solutions In the framework of the present subject matter, Markey et al. (2007) mentioned that the management of Maruti has announced to recall 69,555 diesel cars due to its service related issues. The customers in the Delhi market are majority looking for the mobility solutions. The majority of the customers have denoted to have switched the car brands due to its insufficient mobility solution options. However, Swift Dzire has already created a positive record in the Delhi market. Therefore, the customers are expressing the affirmative attitude towards the hatchback car models, in which the car models of Maruti Swift Dzire stands out top (www2.deloitte.com, 2016). Hence, mobile service locations would be an effective effort to make the customers confident regarding the purchasing actions of the car models. Interactions at dealerships The past records indicate that the almost 720% of the Indian customers prefer visiting the dealerships and take a test drive of the car models intended to purchase. Conklin (2010) denoted that the test drive is identified as the key aspects in the dealership to facilitate the decision making an approach. Figure 1: Customers visiting dealerships (Source: www2.deloitte.com, 2016) Inference can be drawn from the above figure that the management requires making the maximum percentages of dealership deals to mitigate the drive test requirements of the customers. However, Conklin (2010) inferred that Unlike the customers spend at least 10 hours, more than 50% desire to expand less than 45 minutes for the dealership visit and test drive action. It specifies that the bulk of the information accumulation is done outside the dealerships. Figure 2: Shopping experiences of the customers in Delhi market (Source: www2.deloitte.com, 2016) Endorsement policies with the family members The previous research records reflect that 87% of the Indian customers prefer to make car procurement for the family members (Saikia, 2012). Therefore, it is important for the management of the Maruti Swift Dzire to promote its car models through the endorsement policy of the family members. The customers majority appreciate the marketing concept where the car model is promoted by the car owners and its family members. Hinterhuber and Bertini (2011) mentioned that the enterprise has already created a huge buzz in the Delhi market; therefore, to maintain the similar retention ratio, the promotional criteria requires being involving the family endorsement policy. The last mile switches strategies The research conducted by the previous scholars signifies that 73% of the Delhi customers can get heavily influenced by the pitching styles of the sales staffs. The customers initiate a last minute change in the purchasing behaviour. According to Conklin (2010), the Indian consumers are still highly inclined by the guided action of the sales executives. The mentality of the majority of the customers is that the car requires being swerving well shortly,. Therefore, a confident sales pitch of the sales executives often enacts to be the effective medium for the enterprise to make a push effect. Conclusion: The preliminary analysis indicates the consumers buying behaviour for hatchback cars in Delhi. It has been analysed the only customers complex buying attitude can be the responsible factor for the automobile firm to achieve success a competitive advantage. An understanding has been revealed that the customers can enable the marketers to adopt a potential marketing decision for increasing the compatibility as per the requirement of the customers. While conducting the study, various major classes of consumer behaviours and the determinants have been critically analysed. The research associate has found out the several classifications of human categories to align the strategies in synchronising to the customer purchasing behaviour. It has been identified that the customers are highly conscious while purchasing the hatchbacks car but the customer segment also improving the fashion of requirement due to augment in the disposal income. It has been speculated that the Indian customers are more inclined to Maruti Suzuki Swift. It has been observed that the mid-size segment consumer group is highly focused on the safety, driving and seating comfort of the car model while taking the purchasing decision. The consumer also looks for a value of the product, features and the customer friendly characteristic of the chosen car. The premium group of customers is focusing on the brand image to get the assurance for meeting the requirements regarding the measure of safety, performance and feature requirements. Furthermore, the study has provided some suitable initiative like an exploration of the available options, interactions at dealerships, endorsement policies with the family members, the last mile switch strategies and provision of the mobility solutions to improve the purchasing decision of the consumers. This process would also be helpful for the automobile company to standardise the products, brand image, supply and distribution channels and the communications aspect. Reference: Anderson, J., Kupp, M. and Vandermerwe, S. (2010) Good Business Makes Poor Customers Good Customers,Business Strategy Review, 21(4), pp. 4651. Blog, Admin, A. (2016). 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