Research Proposal
Research Proposal
Research Proposal
Introduction
Advertising
Brand managers need to understand how customers perceive and select brands in specific
product categories and market segments. It is also needful to know what is important to
customers when making a brand decision, where customers get information about
products and services, and what customers think about your brand. (Lars Perner 2010)
Passenger cars are motor vehicles with at least four wheels, used for the transport of
passengers, and comprising no more than eight seats in addition to the driver's seat.
Light commercial vehicles (LCV) are motor vehicles with at least four wheels, used for
the carriage of goods. Mass given in tons (metric tons) is used as a limit between light
commercial vehicles and heavy trucks. This limit depends on national and professional
definitions and varies between 3.5 and 7 tons. Minibuses, derived from light commercial
vehicles, are used for the transport of passengers, comprising more than eight seats in
addition to the driver's seat and having a maximum mass between 3.5 and 7 tons.
Heavy trucks (HCV) are vehicles intended for the carriage of goods. Maximum
authorised mass is over the limit (ranging from 3.5 to 7 tons) of light commercial
vehicles. They include tractor vehicles designed for towing semi-trailers.
Buses and coaches are used for the transport of passengers, comprising more than eight
seats in addition to the driver's seat, and having a maximum mass over the limit (ranging
from 3.5 to 7 tones) of light commercial vehicles. (oica 2014)
The cumulative foreign direct investment (FDI) inflows into the Indian automobile industry
during the period April 2000 August 2014 was recorded at US$ 10,119.68 million, as per
data by Department of Industrial Policy and Promotion (DIPP).
Data from industry body Society of Indian Automobile Manufacturers (SIAM) showed that
137,873 passenger cars were sold in July 2014 compared to 131,257 units during the
corresponding month of 2013. Among the auto makers, Maruti Suzuki, Hyundai Motor India
and Honda Cars India emerged the top three gainers with sales growth of 15.45 per cent, 12
per cent and 11 per cent, respectively.
The three-wheeler segment posted a 24 per cent growth to 51,461 units on the back of
increased demands from the urban market. Total sales across different vehicle segments grew
12 per cent year on year (y-o-y) to 1,586,123 units.
Scooter sales have jumped by 29 per cent in the ongoing fiscal, and now form 27 per cent of
the total two-wheeler market from just 8 per cent a decade back. The ever-rising demand for
scooters, which has far outstripped supply has prompted Honda to set up its first dedicated
scooter plant in Ahmedabad.
Tractor sales in the country is expected to grow at a compound annual growth rate (CAGR)
of 89 per cent in the next five years making India a high-potential market for many
international brands. (ibef 2007)
The ranks that customers place for choosing products are: reliability, durability, easy
maintenance, service, ease of use, a trusted brand name, and low price etc. The quality of a
product has a considerable impact towards its performance, thus it is linked to a customer's
worth and satisfaction. Similar is the case with the purchase of an automobile. People prefer
a motorbike over a four-wheeler car, because the former is economical and affordable. As
there are a lot of motorbike companies in the market currently thus there is a huge
competition among the players. As a result people also have a set of choices and preferences
over a company or a brand. (ibef 2007)
1.4 Significance:
For any brand to remain in market, it main focus needs to on consumer needs and
wants. Hence, Consumer Perception about brand is a critical factor. The automobile
market has recently seen a rise in competition as compared to other markets.
Automobile is a dynamic industry in India. So, for a brand such as one belonging to an
automobile, it is necessary to research into what are the factors that most affect a
persons decision to buy a car. As for investing in items of basic need such as rice,
wheat people do not care much about brand but for investing in luxury goods such as
car, people do think deeply and value of brand matters.
The study makes an attempt to know the perception of consumer about famous
automobile brand Volkswagen. It seeks to understand how consumer perceives an
image for a particular brand. Also it helps to understand how consumer perception
about the brand can change his or her buying decision for the same. The importance of
this study is to know what consumers perceive about the Volkswagen brand.
Secondary objective:
1. To analyze how the consumer perception for a brand can affect the willingness of buying
it.
2. To study the determinants and variables affecting the consumer perception for a
particular brand.
In brief, the objective of this Study is to know peoples perception and how it affects its
purchasing decision of a brand.
5 Literature Review
5.1 LR Plan
In order to get literature review for my subject the literature reviews plan, which I considered
was various perspectives surrounding the topic such as:
With the help of Google Scholar, JSTQR and ProQuest database I found out approximately
20 literature reviews which were closet and near to my topic A study on Consumer
Perception about a brand Volkswagen in Surat city for the literature review.
The paper of (Zhonqqin and Kondap 2006) examines the usefulness of the brand origin
concept in shaping the perception of Indian consumers. The results demonstrated that most
consumers can identify the brand origin correctly but the recognition power decreases when
the brand has a long history of "localization". The results also implied that the origin is a
useful concept for companies engaging in an emerging market such as India.
Understanding consumer responses to brands has become an important topic for both
academicians and practitioners. The customer-based brand equity scale asks consumers to
respond to a set of questions designed to determine brand loyalty, brand associations,
perceived quality and awareness, and is generally an overall measure of the strength of
a brand. Another option for the same is the Implicit Association Test (IAT). The IAT taps
into consumer feelings about brands without using traditional paper-and-pencil scale items.
Research of (Priluck and Till 2010) compares a standard brand equity scale with the IAT to
determine instances when they may diverge in their measurement of brand attitudes.
The brand image is of paramount importance for customers as well as marketers. Beyond
their functional utility, products have a symbolic meaning. (Farhat and Khan 2012) Parts of
this symbolic meaning are accounted for by concepts like brand image and product-user
image. The product image influences consumer preferences and satisfaction through a
congruence effect. Inter-relationships exists between the various facets of the brands and
corresponding outcomes.
Brand equity, perceived risk, and customer loyalty have significant and positive relationship
to customer involvement.
Brand equity
partially
mediate
the
relationship between perceived risk and customer involvement, while customer loyalty has
slightly stronger mediating effect on customer involvement than brand equity. (Hu 2012)
A product recall is a request to return to the manufacturer, a batch, unit or an entire
production run of a product, generally over safety concerns or design defects or labelling
errors. All the firms' efforts concentrate to settle in the consumer mind permanently. The
success
of
the
marketer
depends
in
forming
the perception or
changing
the
perception depends. The research paper of (Venugopal, et al. 2012) provides an insight into
the effect of product recalls on the brand perception by the people and the brand image in
their minds. The choice of brand name for a product can change the consumers judgment
about the product and their purchase decision-making process. With competition getting
fiercer and product quality becoming more homogenous, a better brand name can be decisive
in product choice if the consumers compare several products. The research offers new
physiological insights about how brand names are processed in the consumer's brain in order
to identify potential determinants of better brand names. (Hillenbrand, et al. 2013)
Brand personality is a strategic tool for brand differentiation and creation of consumerbrand relationships. Brand personality also influences consumer responses to persuasion
attempts. Brand personality matters when consumers interpret and react to persuasion
attempts:
flattery
from
and
increased
disappointment, yet these effects did not occur for the exciting brand. This research of
(Guvremont and Grohmann 2013) suggests that managers should consider brand personality
when designing brand communications and managing customer interactions.
The entrance of new international brands affects market dynamics in a market where national,
international and private brands are present. Hence its necessary to understand the
phenomena of consumer choice and preference in the backdrop of such a market.
The consumer choice is model in the context of these different categories of brands by using
a multinomial discrete choice model. The estimated model of (Ghose and Lowengart 2013)
provides several diagnostic findings of managerial interest especially with respect to what
kinds of product attributes differentially affect choice probabilities of different categories
of brands - the international, the national and the private.
(Tran and Fabrize 2013) Examines the effect of brand names (foreign versus national)
on consumer perception. It investigates how product ratings affect the relationship
between brand names and consumer perception which is measured by brand attitude,
advertisement feeling, purchase intention, and advertisement attitude. The results show that
the national brand causes more positive consumer perception than the foreign brand. The
findings
suggest
that
product
attribute
information
moderates
the
relationship
between brand names and consumer perception. The results are important and relevant to
branding strategies marketers use to counteract competitive brands.
5.5 Consumer Perception for automobile industry over the globe and for
the country India.
A potential customer from an automobile discriminates between available features, prioritize
ones preferences and evaluate their relative worth taking. Therefore, one should not only
consider the characteristics of vehicle but also their relative utility as perceived by customer
and price they are willing to pay. Based on his analysis, (Lopes, et al. 2006) concluded that
an understanding of consumer behaviour relative to the attributes of goods, such
as automobiles, could enhance the management of the industry value chain.
Study of (Lee 2009)
Globalization and liberalization, with the entry of foreign companies, changed the automobile
scenario in India. These companies started capturing the hearts of Indian customers with their
choice of technological and innovative product features, with quality and reliability.
(Balakrishnan and Jagathy V P 2012) came up with the identification of possible parameters
and a framework development, that influence the consumer purchase behaviour patterns of
passenger car owners in the State of Kerala.
Keeping in consideration that people have a criteria of preference in the minds before they go
to purchase a motorbike, the researcher has tried to summate some of the factors which
people evaluate before the actual purchase. Through the paper of (Shakeel-Ul-Rehman 2013)
he tried to explore a real order of preference which a customer places and rank of some
important
factors,
which
play
an
important
role in making
the
final
purchase
6. Methodology
6.3 Instrument:
The instrument is a standardised questionnaire. The scores will be matched against standard
values available. This data will again be put through statistical tests.
6.4 Method:
One sample t-test will be done for significance of the variables.
Cronbachs Alpha will be tested for internal consistency of constructs.
Principal Components Analysis (with Varimax Rotation) will be done for factor analysis.
Data will be partitioned randomly and one partition will be used for final confirmatory
analysis through Structural Equation Modelling (SEM).
Work Plan
Bibliography
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Baltas, George, and Charalabos Saridakis. 2009. "Brand-name effects, segment differences, and
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Bhatt, Subodh, Gail E Kelley, and Kathleen O'Donnelle. 1998. "An investigation of consumer
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Ghose, Sanjoy, and Oded Lowengart. 2013. "Consumer choice and preference for brand categories."
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Guvremont, Amlie, and Bianca Grohmann. 2013. "The impact of brand personality on consumer
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Appendix
Questionairre
[ ] No
[ ] No
]Yes
[ ]No
[ ]below 10 lakhs
[ ]between 10 to 25 lakhs
[ ]between 25 lakhs to 50 lakhs
[ ]above 50 lakhs
8. How much would you spend on buying a car?
Please Specify ________
9. Rate features on scale of 1 to 5, which you consider while buying a car?( 1 for
highly dissatisfied and 5 for highly satisfied)
Sr No
Features
Prices
Technology
Safety Features
Reliability
Resale Value
Comfort
Status
Car
Brand
11.a) Car A
11.b) Car B
11.c) Car C
11.d) Car D
12. How much are you satisfied with your current car?(on 1 to 5 scale where 1 for
highly dissatisfied and 5 for highly satisfied)
Car A
Sr
Features
No
1
Design &
Style
Prices
Technology
Safety
Features
Reliability
After Sale
Service
Resale
Value
Comfort
Car B
Car C
Car D
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Status
13. If you get an opportunity to change this car, which brand would you prefer?
Please Specify ___________
Sr No
Features
Prices
Technology
Safety Features
Reliability
Resale Value
Comfort
Status
Sr No
Features
Prices
Technology
Safety Features
Reliability
Resale Value
Comfort
Status
Sr No
Features
Prices
Technology
Safety Features
Reliability
Resale Value
Comfort
Status
15. Which of the following made you most aware about Volkswagen Please mark in
Scale from 1 to 5?
Sr No
Features
Tv Advertisement
Newspaper
Advertisement
Internet
Advertisement
Friends
Relatives
[ ]
[ ]
[ ]
[ ]
]Das Auto
]Simply Clever
]Way of life!
18. Are you aware of the fact that, Audi and Skoda are also Volkswagen group
companies?
[ ] Yes
[ ] No
19. Which is your 1st favorite model of Volkswagen car?
[ ] Passat
[ ] Jetta
[ ] Bettle
[ ] Polo
[ ] Vento
20. Which is your 2nd favorite model of Volkswagen car?
[ ] Passat
[ ] Jetta
[ ] Bettle
[ ] Polo
[ ] Vento
21. Which is your 3st favorite model of Volkswagen car?
[ ] Passat
[ ] Jetta
[ ] Bettle
[ ] Polo
[ ] Vento
22. Rate on the following reason you think a Volkswagen car is famous for? (on 1 to
5 scale where 1 for highly satisfied and 5 for highly dissatisfied)
Sr No
Features
Prices
Technology
Safety Features
Reliability
Resale Value
Comfort
Status