Final CP Change

8/10/2019 Final CP Change

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DECLARATION

We are, Kishan G. Patel (127420592040) and Heena G. Prajapati

(127420592044), hereby declare that the report for Comprehensive

Project entitled the study of Consumer Percept ion towards Hero

Bikes is a result of our own work and our indebtedness to other work

publications, references, if any, have been duly acknowledged.

Place : Kishan G. Patel(127420592040)

Date : Heena G. Prajapati(127420592044)


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PREFACE

MBA is a two year degree course. This is based on management

studies. Practical knowledge is also necessary for developing skill aboutindustrial environment and business practice.

The marketing research to Hero Bikes is very helpful to students of

management because it helps to get better prospects and understanding

of the working condition of various industries.

As a part of first year study program, we need to make a project report

on practical study and we have decided to prepare a project report on

the study of Consum er Percept ion tow ards Hero B ikes.

While preparing a project report, we met customers of Hero Motocorp

and ask them questions related to their consumption habit, what they

keep in their mind while buying this product.

Preparing the project report is a good learning experience for us where

in we come to know about the various aspects of the practical scenario.

The report is a compilation of this experience.


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ACKNOWLEDGEMENT

Through this acknowledgement I express my sincere gratitude towards

all those people who helped me in the preparation of this project, which

has been learning experience.

I would like to thank our Director Dr. Bijal Zaveri and our faculty guide

Prof. Vidhita Sinhato encourage me for a practical study.

Finally, I express my sincere thanks to our faculty memberswho guided

us throughout the project work and gave us valuable suggestions and

encouragement and I also thanks to them who helped me in this project

directly or indirectly.

TABLE OF CONTENT


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Basic Information


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Idea Cellular Limited

Type Public company

{{|532822}}

NSE: IDEA

Industry Telecommunications

Founded 1995

Headquarters Santacruz East, Mumbai,India

Key people Kumar Mangalam Birla

(chairman)

Products Mobile telephony, wireless broadband

Revenue 265 billion (US$4.3 billion) (201314)

Operatingincome

28.79 billion(US$470 million) (2011)

Net income 19.68 billion(US$320 million) (201314)

Total assets US$5.334 billion (2010)

Employees 6,481 (2010)

Parent Aditya Birla Group (49.05%)Axiata Group Berhad (19.96%)

Providence Equity (10.6%)

Website www.ideacellular.com
http://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/File:Idea_Cellular_Logo.svghttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/File:Idea_Cellular_Logo.svghttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/File:Idea_Cellular_Logo.svghttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/Indian_rupeehttp://en.wikipedia.org/wiki/File:Idea_Cellular_Logo.svg


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IDEA CELLULAR

ABOUT US

Idea Cellular is an Aditya Birla Group Company, India's first trulymultinational corporation. Idea is a pan-India integrated GSMoperator offering 2G and 3G services, and has its own NLD and ILDoperations, and ISP license. With revenue in excess of $4 billion;revenue market share of nearly 15%; and subscriber base of over121 million in FY 2013, Idea is Indias 3rd largest mobile operator.

Idea ranks among the Top 10 country operators in the world with atraffic of over 1.5 billion minutes a day.

Idea is listed on the National Stock Exchange (NSE) and the Bombay

Stock Exchange (BSE) in India. Idea has been ranked #1 in the

Telecom sector in Indias Best Companies to Work for Study 2013

and the "Best Place to Work" at the Asia Communication Awards

2013.

VISION

To develop an integrated supply chain focusing on maximizing the

return on our spend and assets to efficient information systems

supported processes, making its supply chain a benchmark across

industry

MISSION

"We will Delight our Customers while meeting their individual

communication needs anytime anywhere"

STRATEGY

The Idea Cellular Limited falls in the question mark quadrant of

BCG matrix and in the High attractive and Strong Competitive

strength category as per the GE Matrix. Thus they need to formulate

some strategies to try capturing some market share, growing and

building their brand image as well as brand value.


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BRAND

The new Hero is rising and is poised to shine on the global arena. Company's

new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen

focus on mobility and technology and creating global footprint. Building and promoting new brand identity will be central to all its initiatives,

utilizing every opportunity and leveraging its strong presence across sports,

entertainment and ground-level activation.

MANUFACTURING

Hero MotoCorp two wheelers are manufactured across 3 globally

benchmarked manufacturing facilities. Two of these are based at Gurgaonand Dharuhera which are located in the state of Haryana in northern India.

The third and the latest manufacturing plant is based at Haridwar, in the hill

state of Uttrakhand.

DISTRIBUTION

The Company's growth in the two wheeler market in India is the result of an

intrinsic ability to increase reach in new geographies and growth markets.Hero MotoCorps extensive sales and service network now spans over to

6000 customer touch points. These comprise a mix of authorized dealerships,

service & spare parts outlets, and dealer-appointed outlets across the country.

FORMATION OF HERO MOTOCORP

The name of the company was changed from Hero Honda Motors Limited to

Hero MotoCorp Limited on July 29, 2011. The new brand identity and logo ofHero MotoCorp were developed by the British firm Wolff Olins.The logo was

revealed on 9 August 2011 in London, to coincide with the third test

match between England and India.

Hero MotoCorp can now export to Latin America, Africa and West Asia. Hero

is free to use any vendor for its components instead of just Honda-approved

vendors.

COMPANY PERFORMANCE


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The company has sold over 47 million 2-wheelers since its inception in 1984

till March 2013.

It sold 6.07 million 2-wheelers in 2012, out of which 5.5 million were

motorcycles.

Hero Motocorp sells more two wheelers than the second, third and fourth

placed two-wheeler companies put together.

Its most popular bike Hero Honda Splendor sells more than one million units

per year.

In 2013, Hero MotoCorp registered best ever calendar year performance of

more than 6.1 million unit sales.

By selling 6.25 million units in the month of October, it became the first-ever

manufacturer to cross landmark 6 lakh unit sales in a month.

In the last quarter of the year or say in the festive season, the company sold

more than 1.6 million units, while in non festive time in AprilMay 2013; it

managed to sell out quite good numbers of units- 1.1 million.


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HISTORY

2013 Became the 3rd largest mobile operator in subscriber terms as well Received a USD 1 million Grant from US Trade and Development Agency for

a Green Telecom Project

2012 Subscriber base as on December 31, 2012: 113,946,827 Won back spectrum for 7 circles for which licenses were quashed by the

Supreme Court. Became a $4 Billion Company in revenue

Established a robust network of over 100,000 cell sites across the country

2011 Subscriber base as on December 31, 2011: 106,380,111 First operator to announce the launch of Mobile Number Portability, have

been the Top gainer ever since the service was launched. Launched 3G in 10 circlesAndhra Pradesh, Gujarat, Haryana, Himachal

Pradesh, Jammu & Kashmir, Kerala, Madhya Pradesh and Chhattisgarh,Maharashtra and Goa, Uttar Pradesh (East), Uttar Pradesh (West).

Entered the devices category with the launch of affordable 3G smartphones.

Only operator in the country to have ISO 9001:2008 certification for itsservice delivery platform for all 22 service areas and the corporate office

2010 Subscriber base as on December 31, 2010: 81,778,655 Idea won 3G Spectrum in 11 service areas in India. These markets account

for over 81% of the companys total revenue Idea crossed usage of One Billion Minutes per day on the network,

propelling it amongst the Top 10 country operators in the world Idea emerged as the 3rd largest mobile operator in India, in revenue terms.

2009 Subscriber base as on December 31, 2009: 57,611,872 Idea becomes a pan-India operator Emerging Company of the Year - fastest growing mobile operator in the

worlds fastest growing telecom marketBecomes pan-India operator in 2009

2008 Subscriber base as on December 31, 2008: 40,016,153

Idea acquired 9 licences for Punjab, Karnataka, Tamil Nadu & Chennai,West Bengal, Orissa, Kolkata, Assam, North East and Jammu & Kashmir


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Acquired Spice Communications with the operating circles of Punjab andKarnataka

Launched services in Mumbai metro in the largest single metro city launch,ever

Launched services in Bihar

2007 Subscriber base as on December 31, 2007: 21,054,027 Won an award for the "CARE" service in the "Best Billing or Customer Care

Solution" at the GSM Association Awards in Barcelona, Spain Initial Public Offering aggregating to Rs. 28,187 million and Listing of Equity

Shares on the Bombay Stock Exchange and the National Stock Exchange Merger of seven subsidiaries with Idea Cellular Limited Reached the twenty million subscriber mark

2006 Subscriber base as on December 31, 2006: 12,442,450 Became part of the Aditya Birla Group subsequent to the TATA Group

transferring its entire shareholding in the Company to the Aditya BirlaGroup

Acquired Escorts Telecommunications Limited (subsequently renamed asIdea Telecommunications Limited)

Restructuring of debt Launch of the New Circles Reached the 10 million subscriber mark Received Letter of Intent from the DoT for a new UAS License for the

Mumbai Circle. Received Letter of Intent from the DoT for a new UAS License for the Bihar

Circle through Aditya Birla Telecom Limited. ABNL, the parent of AdityaBirla Telecom Limited, pursuant to a letter dated November 22, 2006,agreed to transfer its entire shareholding in Aditya Birla Telecom Limited tothe Company for the consideration of Rs. 100 million.

2005

Subscriber base as on December 31, 2005: 6,473,962 Reached the five million subscriber mark Turned Profit Positive Won an Award for the "Bill Flash" service at GSM Association Awards in

Barcelona, Spain Sponsored the International Indian Film Academy Awards

2004 Completed debt restructuring for the then existing debt facilities and

additional funding for the Delhi Circle.

Acquired Escotel Mobile Communications Limited (subsequently renamed as Idea Mobile Communications Limited)


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Reached the four million subscriber mark First operator in India to commercially launch EDGE services 2005

Acquired Escotel, incumbent cellular service provider in Haryana,UP(W) & Kerala and new licensee in HP

2003 Reached the two million subscriber mark

2002 Changed name to Idea Cellular Limited and launched "Idea" brand name Commenced commercial operations in Delhi Circle Reached the one million subscriber mark

Brand IDEA launched Delhi operations commence (Nov)

2001

Acquired RPG Cellular Limited and consequently the license for the MadhyaPradesh (including Chattisgarh) Circle Changed name to Birla Tata AT&T Limited Obtained license for providing GSM-based services in the Delhi Circle

following the fourth operator GSM license bidding processAcquired RPG Cellcom, service provider in Madhya Pradesh (Feb)Awarded

2000 Merged with Tata Cellular Limited, thereby acquiring original license for the

Andhra Pradesh Circle

1999 Migrated to revenues share license fee regime under New

Telecommunications Policy ("NTP")

1997 Commenced operations in the Gujarat and Maharashtra Circles

MoU for merger between Birla AT&T and Tata Cellular Limited AndhraPradesh signed (Jan)

1996 Changed name to Birla AT&T Communications Limited following joint

venture between Grasim Industries and AT&T Corporation

1995 Incorporated as Birla Communications Limited Obtained licenses for providing GSM-based services in the Gujarat and Maharashtra Circles following the original GSM license bidding process


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Industry Analysis


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INDIAN AUTOMOBILE AT A GLANCE

It is now the second largest telephone network in the world, after China.2

nd

largesttwo wheeler market

4thlargest commercial vehicle market

India emerged as Asias 4th largest exporter of automobiles, behind Japan,

South Korea and Thailand.

By 2050, the country is expected to top the world in car volumes with approx.

611 million vehicles on the nations road.

TWO WHEELERS IN INDIA

Started in 1851 when the first operational land lines were laid by the government near

Calcutta (seat of British power). Telephone services were introduced in India in 1881. In

1883 telephone services were merged with the postal system. Indian Radio Telegraph

Company (IRT) was formed in 1923.

After independence in 1947, all the foreign telecommunication companies were nationalized

to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's

Ministry of Communications. Telecom sector was considered as a strategic service and the

government considered it best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the

private sector was allowed in telecommunications equipment manufacturing. In 1985,

Department of Telecommunications (DOT) was established. It was an exclusive provider of

domestic and long-distance service that would be its own regulator (separate from the

postal system). In 1986, two wholly government-owned companies were created: the Videsh

Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar

Telephone Nigam Limited (MTNL) for service in metropolitan areas. In 1990s,

telecommunications sector benefited from the general opening up of the economy. Also,


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examples of telecom revolution in many other countries, which resulted in better quality of

service and lower tariffs, led Indian policy makers to initiate a change process finally

resulting in opening up of telecom services sector for the private sector.

Private operators hold 89.01% of the wireless subscriber market sharewhere as BSNL and MTNL, the two PSU operators hold only 10.99%market share. The graphical representations of market shares and sharesin net additions of all the service providers during the month of January,2014 are given below:

A. Service Provider wise Market Share as on 31st January, 2014.

National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap

for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India

(TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the

telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were

also launched in the same year.


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Telecommunication sector in India can be divided into two segments: Fixed Service Provider

(FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic

long distance and international long distance services. The state operators (BSNL and MTNL),

account for almost 90 per cent of revenues from basic services. Private sector services are

presently available in selective urban areas, and collectively account for less than 5 per cent

of subscriptions. However, private services focus on the business/corporate sector, and offer

reliable, high- end services, such as leased lines, ISDN, closed user group and

videoconferencing. Cellular services can be further divided into two categories: Global

System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The

GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector

is dominated by Reliance and Tata Indicom.

Opening up of international and domestic long distance telephony services are the major

growth drivers for cellular industry. Cellular operators get substantial revenue from these

services, and compensate them for reduction in tariffs on airtime, which along with rental

was the main source of revenue. The reduction in tariffs for airtime, national long distance,

international long distance, and handset prices has driven demand.


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B. Service Provider wise net subscriber addition during January,2014

http://www.telecomlead.com/telecom-statistics/indian-telecom-market-share-report-february-

2014-trai-85888-50423.

Key players in the Two-wheeler Industry

There are many two-wheeler manufacturers in India. Major players in the 2-wheeler

industry are:

The major players in the mobile phone service industry are enlisted as:

BSNL

The Bharat Sanchar Nigam Limited, countrys largest cellular service operator was

set up in the year 2000. It is a state owned telecom company with its

headquarters located in New Delhi. BSNL is also the largest land line telephone
http://www.telecomlead.com/telecom-statistics/indian-telecom-market-share-report-february-2014-trai-85888-50423http://www.telecomlead.com/telecom-statistics/indian-telecom-market-share-report-february-2014-trai-85888-50423http://www.telecomlead.com/telecom-statistics/indian-telecom-market-share-report-february-2014-trai-85888-50423http://www.telecomlead.com/telecom-statistics/indian-telecom-market-share-report-february-2014-trai-85888-50423http://www.telecomlead.com/telecom-statistics/indian-telecom-market-share-report-february-2014-trai-85888-50423


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establishment in India. As of April, 2011 87.1 million users have been reported to

be BSNL users.

MTNL

Mahanagar Telephone Nigam Limited (MTNL) was set up in the year 1985, to runtelecom operations in the major metro cities of India, Mumbai and Delhi. Its

headquarters are based in Mumbai. MTNL was the first company in India to

initiate 3G services in India, having the brand name of MTNL 3G Jadoo Services

which provided options as Video call, Mobile TV, Mobile Broadband etc to the

customers.

Airtel

Also known asBharti Airtel Limited was started in July 1995, with its head office

based in New Delhi. Airtel runs its operations in as many as 19 countries across

the world and is also ranked fifth as telecom service provider globally. As of April

2011, figures show that Airtel has over 164.61 million users which make it the

biggest mobile service operator in India. Its service includes both 2G and 3G

facilities

.Reliance Communication

Also known as RCOM was set up in 2004, with its head office in NaviMumbai.Reliance Communications as of now has more than 128 million users all

across the world.

Aircel

Aircel was founded in 1999, with its head office in New Delhi. It is a joint

enterprise between Maxis Communications and the Apollo Hospitals.

Vodafone Essar

Vodafone Essar was founded in 1994 with its head office at Mumbai. Vodafoneprovides services to 23 telecom circles across India.

Tata Indicom

TheTata Teleservices was founded in 1996, with its headquarters in Navi

Mumbai.

Idea Cellular
http://business.mapsofindia.com/communications-industry/companies/airtel.htmlhttp://business.mapsofindia.com/communications-industry/companies/reliance-communications.htmlhttp://business.mapsofindia.com/communications-industry/companies/aircel-cellular-limited.htmlhttp://business.mapsofindia.com/communications-industry/companies/vodafone.htmlhttp://business.mapsofindia.com/communications-industry/companies/tata-teleservices.htmlhttp://business.mapsofindia.com/communications-industry/companies/tata-teleservices.htmlhttp://business.mapsofindia.com/communications-industry/companies/vodafone.htmlhttp://business.mapsofindia.com/communications-industry/companies/aircel-cellular-limited.htmlhttp://business.mapsofindia.com/communications-industry/companies/reliance-communications.htmlhttp://business.mapsofindia.com/communications-industry/companies/airtel.html


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Idea Cellular was started in 1995, with its head office in Mumbai. It also provides

3G services to its subscribers.

Virgin Mobile

Virgin Mobile started its services in India in 2008, March. It is a U.K. basedcompany.

Uninor

This Company is a joint venture between Telenor Group and Unitech Group and

was started in 2009. - See more at:

http://business.mapsofindia.com/communications-

industry/companies/#sthash.1cD3kEIO.dpuf

http://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/-

LxomKgN7SU/s1600/india-mobile-networks.gif

MANUFACTURER DETAILS

Name ofManufacturers

Head Quarter Established In

vodafone Peninsula Corporate Park, Ganpatrao Kadam Marg,Lower

Parel,Mumbai,Maharashtra,India[1]

21,February,1992

airtel Bharti Crescent, 1,Nelson Mandela Road,New Delhi,India[1]

July 7, 1955

Reliancecommunications

Mumbai, India 2002

bsnl New Delhi,India 15 September 2000

Tata indicom Mumbai, Maharashtra,India 1996

aircel Chennai,Tamil Nadu,India 1999

uninor Gurgaon, India 2009
http://business.mapsofindia.com/communications-industry/companies/idea-cellular.htmlhttp://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/-LxomKgN7SU/s1600/india-mobile-networks.gifhttp://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/-LxomKgN7SU/s1600/india-mobile-networks.gifhttp://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/-LxomKgN7SU/s1600/india-mobile-networks.gifhttp://en.wikipedia.org/wiki/Lower_Parelhttp://en.wikipedia.org/wiki/Lower_Parelhttp://en.wikipedia.org/wiki/Lower_Parelhttp://en.wikipedia.org/wiki/Lower_Parelhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Vodafone_India#cite_note-1http://en.wikipedia.org/wiki/Vodafone_India#cite_note-1http://en.wikipedia.org/wiki/Nelson_Mandela_Roadhttp://en.wikipedia.org/wiki/Nelson_Mandela_Roadhttp://en.wikipedia.org/wiki/Nelson_Mandela_Roadhttp://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-airtel.in-1http://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-airtel.in-1http://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-airtel.in-1http://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Bharti_Airtel#cite_note-airtel.in-1http://en.wikipedia.org/wiki/Nelson_Mandela_Roadhttp://en.wikipedia.org/wiki/Vodafone_India#cite_note-1http://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Lower_Parelhttp://en.wikipedia.org/wiki/Lower_Parelhttp://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/-LxomKgN7SU/s1600/india-mobile-networks.gifhttp://1.bp.blogspot.com/-4am2b94uC44/UTC0X1L0Z5I/AAAAAAAAAa0/-LxomKgN7SU/s1600/india-mobile-networks.gifhttp://business.mapsofindia.com/communications-industry/companies/idea-cellular.html


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Types of Two-wheelers in India

There are mainly three types of two-wheelers available in India:

Motorcycles

Scooters

Scooterettes/Mopeds.


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Literature Review


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Coupey et al., (1998) argue that prior knowledge of product attributes allows

consumers to formulate more questions and therefore, lead them to look for

more information. These researchers further argue that category-specific

knowledge helps individual consumers to evaluate responses to questions,

thereby reducing cognitive cost of using information and increasing the

benefits of obtaining it.

Goodwin and Smith, (1990) Consumers influence more trust in product

information created by other consumers than in information generated by

manufacturers. Another consumer's personal experience with a product

seems important to several participants who view such feedback as more

credible than that obtained from other sources some consumers may be

unlikely to complain regardless of the context, due to their extremely polite

and restraining nature. More specifically, they may have an interaction style

that prevents them from confronting the dealer/ retail employees. Politeness

may have such an unassuming effect on the consumer behavior. Politeness

has already been identified as an interaction style within customer-

salesperson encounters by (Goodwin and Smith, 1990)

Sharma and Patterson, (1999) affirm that car dealers are implementing a

strategy to position themselves, more effectively in the market place than

before, by means of continuous improvement of quality maintenance through

services delivery packages, as car dealers are increasingly being confronted

by demanding and technologically knowledgeable consumers, shortened

product model lifecycles, intensified competition and fragmented market

segments.

Reynolds and Arnold, (2000) Highly satisfied customers will convey their

success stories of satisfaction and directly recommend that others try the

source of satisfaction, as stated in the studies conducted by (Reynolds and

Arnold, 2000).


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Ewing, (2000) investigated brand loyalty by examining actual past behaviour

and its impact on future behavioral intentions, as well as willingness to

recommend the brand to another customer known to him. Findings indicate

that purchase expectation/intention remain a valid research metric. It would

appear that the brand/consumer interface offers greater predictive ability than

the retailer/consumer interface. Willingness to recommend a brand to another

consumer does not seem to be influenced by past behavior, but the higher the

respondents expectation to purchase the brand, the higher will be their

willingness to recommend the brand.

Cordell, 1992; Thorelli, et al., (1989) Information - processing theories posits

that consumers use product and psychological cues to form beliefs and to

evaluate of products. Generally, country of origin of the brand, peer

recommendation and whether the brand is used by people who are

considered affluent by the prospective buyers etc. are considered as an

extrinsic product cue (Cordell, 1992; Thorelli, et al., 1989).

Srikatanyoo and Gnoth, (2002) Consumers are known to develop

stereotypical beliefs about products from particular countries and have

opinions about the attributes of those products. Thus, the country of origin

image has the power to arouse importers and consumers belief about the

product attributes and to influence the evaluation of products and brands

(Srikatanyoo and Gnoth, 2002).

Farrell, et al., (2000) It is plausible, therefore, that this effect can be

leveraged by brand managers. The process may involve screening out less

favorable information and/or selectively communicating appealing informationto the brand's target market. This can be thought of as activating the

celebrity for the benefit of the brand. Evidence for the proposed effects of

celebrity activation is provided by (Farrell, et al., 2000),who initiated that the

proficient success of a celebrity endorser, if publicized by the endorsed

product's firm, improved consumer brand-evaluations of the endorsed product

(measured as excess returns for the endorsed brand). On the basis of Farrell

et al. (2000) discussion, it is proven that more a celebrity endorser is


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activated, the more the endorsed products brand image will benefit from

endorsement by the celebrity.

White, (2004) discusses the factors that affect car-buyers' choices and

comments that people expect to haggle with dealers over price and to receive

substantial rebates or incentives as well as low-interest payment plans. He

points out that with an increase in multi-car households, car porch and

advertisers need to target the right audience, taking into account the pester

power of children and the importance of life stage. Despite the fact that

women are the primary buyers of most new cars, he admits that the motor

trade has traditionally been contemptuous of women's role in the car-buying

process.

Herrmann, et al., (2007) seek to examine specific factors that influence

fairness perceptions, including price perception and consumer vulnerability, in

the context of car purchases in major German car dealerships. Their research

paper shows that price perceptions directly influence satisfaction judgments

as well as indirectly through perceptions of price fairness.

Awasthy et al., (2012)First, prior knowledge suffices the need to know about

the attributes of various alternatives and consequently limits the additional

information search from external sources. Second, the knowledgeable

consumers can perform more efficient information searches because they

know what information is important and useful. Information may be

categorized by consumers according to their degree of importance (Awasthy

et al., 2012).

Menon and Raj, (2012) Customer satisfaction can be considered the central

determinant in all phases of the contact chain. Multi-dimensional recording of

customer loyalty reveals clear differences in the interactions, first, with brand

loyalty and, second, with dealer loyalty. In contrast to the opinion widely held

in practice, customers in the automotive sector definitely do not perceive the

brand and the dealer as one unit. Since similar studies in different countries

come to almost the same conclusions, it can be argued that the results are

valid in several cultural settings.


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Till and Shimp, (1998)Several studies suggest that when a brand becomes

associated with a celebrity via the endorsement process, information

regarding that celebrity's activities and achievements can transfer to the brand

and have an effect on its image (Till and Shimp, 1998).

Chaudhuri and Holbrook, (2001) examined two aspects of brand loyalty,

purchase loyalty and attitudinal loyalty, as linking variables in the chain of

effects from brand trust and brand affect to brand performance (market share

and relative price).

www.ijrcm-1-IJRCM-1_vol-4_2013_issue-11-art-04.pdf

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Final CP Change

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