A practical analysis of the sales psychology involved in increasing the sale of automobiles by...

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Master Thesis

Submission

On

Topic

“A practical analysis of the sales psychology involved in increasing the sale of

automobiles”

By

Jerrin Tony Varghese, Matrikel No: 7311101

To

Mentor: Prof. Guillaume De Meuter

Faculty of

Hochschule für angewandte Wissenschaften Würzburg-Schweinfurt,

University of Applied Sciences Wuerzburg-Schweinfurt,

Germany

For degree of

Master of Business Administration (MBA)

For Academic Year 2011 -2013

Under the Joint Academic Program

By

FHWS, Germany & Christ University, India

user

Confidential

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Statutory Declaration

Hereby I declare that I have written this Master's Thesis on my own and that

I have not transcribed the whole part of any book or any academic research.

In addition, I have only quoted or consulted the part of resources or figures

from the books and websites listed in the references to support the practical

and theoretical basis for my Master's Thesis.

Place, Date Signature, Matrikel No. 7311101

(Jerrin Tony Varghese)

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Certificate of the Mentor

This is to certify that the Master´s Thesis on “A practical analysis of the sales

psychology involved in increasing the sale of automobiles” is done by Jerrin

Tony Varghese in partial fulfillment of requirement for the degree of Master of

Business Administration at University of Applied Sciences Wuerzburg-

Schweinfurt, Germany.

This thesis has been carried out under my guidance and in record of bonafide

work carried out successfully.

Place, Date Signature

(Prof. Guillaume De Meuter)

user

Confidential

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ACKNOWLEDGEMENT

I would sincerely like to express my profound gratitude to all those who have helped me for their

support and guidance for the completion of this thesis.

Firstly, I would like to express my gratitude to my mentor Prof. Guillaume De Meuter who has

guided me throughout the preparation of my thesis.

I would like to express my sincere gratitude to Prof. Uwe Sponholz for providing the constant

guidance and support.

I must also thank, Ms. Susanne Hüfner coordinator FHWS, for her timely communication and

constant support.

I would also like to extend our gratitude for all the respondents who had spent their valuable time

filling up the questionnaire. The patience of the respondents is much appreciated. To cap it all I

am obliged to my family and friends and all those who have directly or indirectly helped me for

the completion of the thesis.

Jerrin Tony Varghese

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TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................................. 5

List of figures: ............................................................................................................................................. 10

List of Tables ............................................................................................................................................... 11

CHAPTER 1: ............................................................................................................................................... 12

INTRODUCTION ....................................................................................................................................... 12

CHAPTER 1.1: INTRODUCTION............................................................................................................. 13

1.2: Background of the Study ...................................................................................................................... 13

1.3: Statement of the Problem ..................................................................................................................... 14

CHAPTER 2: ............................................................................................................................................... 15

LITERATURE REVIEW ............................................................................................................................ 15

CHAPTER 2: LITERATURE REVIEW ..................................................................................................... 16

2.1 Introduction ........................................................................................................................................... 16

2.2 Consumer decision making ................................................................................................................... 16

2.2.1 Need of stimulation ............................................................................................................................ 16

2.2.2 Need recognition ................................................................................................................................ 18

2.2.3 Information search .............................................................................................................................. 20

2.2.4 Evaluation of alternatives ................................................................................................................... 22

2.2.5 Purchase and post purchase evaluation .......................................................................................... 23

2.3 How do sales executive use psychology in sales of cars ................................................................... 25

2.4 How sales executive can use psychological in gaining trust of customer ............................................. 27

2.5 The relevance of empathy for the purpose of sale ................................................................................. 28

CHAPTER 3: ............................................................................................................................................... 29

RESEARCH METHODOLOGY ................................................................................................................ 29

CHAPTER 3: RESEARCH METHODOLOGY ......................................................................................... 30

3.1. Introduction .......................................................................................................................................... 30

3.2. Problem definition ................................................................................................................................ 30

3.3. Objectives of the project ....................................................................................................................... 30

3.4. Research design .................................................................................................................................... 30

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3.5. Sample method ..................................................................................................................................... 30

3.6. Sample size and research setting .......................................................................................................... 31

3.7. Data collection methods and tools ........................................................................................................ 31

3.8. Data collection from car owners and aspirators ................................................................................... 31

3.9. Data collection for managers and sales executive ................................................................................ 32

3.10. Secondary data collection ................................................................................................................... 32

3.11. Limitations.......................................................................................................................................... 32

3.12. Data analysis tools .............................................................................................................................. 32

CHAPTER 4: ............................................................................................................................................... 33

ANALYSIS ................................................................................................................................................. 33

CHAPTER 4: ANALYSIS .......................................................................................................................... 34

4.1. Reliability Statistics .............................................................................................................................. 34

4.1.1. Customer Data ................................................................................................................................... 34

Table 4.1.1 Cross Tabulations ..................................................................................................................... 34

4.1.2. Sales Executive Data ......................................................................................................................... 34

Table 4.1.2 Cross Tabulations ..................................................................................................................... 34

4.2 cross tabulations .................................................................................................................................... 35

Table 4.2.2 Different sources of information collected by the customers ................................................... 36

Figure 4.2.1: Sources on information collection and its usage .................................................................... 38

Figure: 4.2.2: Category usage of luxury cars ............................................................................................... 40

Category usage of luxury cars ..................................................................................................................... 40

Figure 4.2.3: Car changing period ............................................................................................................... 41

Car changing period .................................................................................................................................... 41

Figure 4.2.4: Sales executive attributes ....................................................................................................... 44

Figure 4.2.5: Financial attributes ................................................................................................................. 46

Table 4.2.6: Impact of astrological dates in buying of luxury cars ............................................................. 47

4.3 factor analysis ........................................................................................................................................ 49

4.3.1: Factor analysis on sales executive attributes selected by customer. .................................................. 49

Table 4.3.1: KMO and Bartlett‟s test .......................................................................................................... 49

Table 4.3.2:Total variance of sales executive attributes explained ............................................................. 49

Figure 4.3.1: Scree plot ............................................................................................................................... 51

Table 4.3.3 Rotated Component Matrix ...................................................................................................... 51

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Table 4.3.4: Factors Extracted ..................................................................................................................... 52

4.3.2: Factor analysis on the luxury car attributes as per the customer ratings ........................................... 53

Table 4.3.4: KMO and Bartlett's Test .......................................................................................................... 53

Table 4.3.5: Total Variance Explained ........................................................................................................ 54


Table 4.3.6: Rotated Component Matrix ..................................................................................................... 55

4.3.3 Factor analysis on the luxury car attributes emphasis as per the sales executive ratings ................... 58

Table 4.3.8: KMO and Bartlett's Test .......................................................................................................... 58

Table 4.3.9: Total Variance Explained ........................................................................................................ 59


Table 4.3.10: Rotated Component Matrix ................................................................................................... 60

Factor 1: luxury with comfort and safety .................................................................................................... 62

4.4: Interview............................................................................................................................................... 64

4.4.1: MERCEDES BENZ .......................................................................................................................... 64

4.4.2: AUDI ................................................................................................................................................. 65

Figure 4.4.2:Attributes emphasis while interacting to managers (Five Rate Scale) .................................... 65

4.4.3: BMW ................................................................................................................................................. 66


4.4.4: SKODA ............................................................................................................................................. 67


4.4.5: JAGAUR ........................................................................................................................................... 68


4.4.6: LAND ROVER ................................................................................................................................. 69


CHAPTER 5: ............................................................................................................................................... 70

DISCUSSION ............................................................................................................................................. 70

CHAPTER 5: DISCUSSION ...................................................................................................................... 71

5.1: Inference ............................................................................................................................................... 71

Cross tabulations was conducted, which indicates the following ............................................................... 71

5.2: Factor analysis of sales executive attributes ......................................................................................... 71

5.3: Factor analysis on the luxury car attributes as per customer ratings .................................................... 72

5.4: Factor analysis on the luxury car attributes as per sales executive ratings ........................................... 72

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5.5: Gap Analysis between customer needs and sales executive deliverance ............................................. 73

CHAPTER 6: ............................................................................................................................................... 74

CONCLUSIONS AND RECOMMENDATIONS ...................................................................................... 74

CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS ............................................................... 75

6.1: Conclusions .......................................................................................................................................... 75

6.2.1: Recommendations ............................................................................................................................. 75

6.2.2: Application in the field of manufacturing ......................................................................................... 76

6.2.3: Sales executive training ..................................................................................................................... 77

6.2.4: Conversion and tackling techniques .................................................................................................. 78

6.2.4.1: If there is a strength there will be a weakness associated to it ....................................................... 78

6.2.5: Play with the mind (application) ....................................................................................................... 79

6.2.6: Application in the field of marketing ................................................................................................ 79

6.2.8: Improvements to be made ................................................................................................................. 80

6.2.8.1 Mercedes Benz ................................................................................................................................ 81

6.2.8.2 BMW ............................................................................................................................................... 81

6.2.8.3 SKODA ........................................................................................................................................... 81

6.2.8.4 JAGUAR ......................................................................................................................................... 81

6.2.8.5 LAND ROVER ............................................................................................................................... 81

Annexure ..................................................................................................................................................... 82

Annexure1- Questionnaire .......................................................................................................................... 83

purchase of luxury cars (Customers) ..................................................................................................... 83

Annexure 2- Questionnaire ......................................................................................................................... 89

CHAPTER 6 ................................................................................................................................................ 92

REFERENCE .............................................................................................................................................. 92

CHAPTER 6: REFERENCE ....................................................................................................................... 93

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Executive summary

The aim of this thesis is to practically analyse the sales psychology involved in increasing

the sale of automobiles. The study tries to identify the different factors which contributed to the

purchase of luxury cars. The study uses these factors in developing practical techniques, which

can increase the sales of automobile. The study conducted has two sided approach, one from the

point of view of customers and other from the point of view of representatives of luxury cars

companies.

The study was conducted on the topic: Practical analysis on sales phycology involved in

increasing the sales of automobiles. The research tool used is factor analysis. Factor analysis has

done for 3 psychological stages. 1) Identification of different delivery styles which sales

executive can use 2) Identification of factors involved in purchase of luxury car from the view

point of customer. 3) Identification of factors involved in purchase of luxury car from the view

point of representative of luxury car manufactures. The analysis has done with the help of SPSS

statistical software. The different method of analysis included cross tabulation method, factor

analysis, graph and pie charts.

The factors identified from the customer information, was compared with the information

given by the company representatives. Resultant finding was used in gap analysis. At the end of

the study, this finding was used to develop techniques which can increases the sales of

automobiles. The technique application also includes in the field of training of sales executives,

marketing of luxury cars, and manufacturing of luxury car.

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List of figures:

Figure 1: Howard–Sheth Model of buyer behaviour ................................................................................... 17

Figure 2: A Stimulus-Response Model of Buyer Behaviour ......................................................................... 19

Figure 3: The Engel-Kollat-Blackwell Model of Consumer Behaviour ......................................................... 20

Figure 4: Bettman Information-Processing Model of Consumer Choice .................................................... 22

Figure 5: Sheth-Newman Gross Model of Consumption Values ................................................................. 24

Figure 6: Model of Buyer's Trust of the Seller in an Initial Sales Encounter ............................................... 27

Figure 7: Sources on information collection and its usage ......................................................................... 38

Figure 8: Category usage of luxury cars ...................................................................................................... 40

Figure 9: Car changing period...................................................................................................................... 41

Figure 10: Sales executive attributes .......................................................................................................... 44

Figure 11: Financial attributes ..................................................................................................................... 46

Figure 12: Number of people preferring to buy car according on their preferred astrological dates ........ 48

Figure 13: Scree plot (Sales executive attributes) ....................................................................................... 51

Figure 14: Scree plot ( as per customer ratings ) ........................................................................................ 55

Figure 15: Effectiveness of factors in purchase of luxury car based on customer ratings .......................... 58

Figure 16: KMO and Bartlett's Test ( as per sales executive ratings ) ......................................................... 58

Figure 17: Scree plot ( as per sales executive ratings ) ............................................................................... 60

Figure 18: Effectiveness of factors in purchase of luxury car based on sales executive ratings ................. 63

Figure 19: Attributes Emphasis (in Mercedes Benz) ................................................................................... 64

Figure 20: Attributes Emphasis ( in Audi ) ................................................................................................... 65

Figure 21: Attributes Emphasis ( in BMW ) ................................................................................................. 66

Figure 22: Attributes Emphasis (in Skoda) .................................................................................................. 67

Figure 23: Attributes Emphasis ( in Jagaur) ................................................................................................. 68

Figure 24: Attributes Emphasis ( in Land Rover ) ........................................................................................ 69

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List of Tables

Table 1: Reliability statistics (Customer Data) ............................................................................................. 34

Table 2: Reliability statistics (Sales executive Data) ................................................................................... 34

Table 3: Describing the monthly income, educational background and occupation in terms of frequency.

..................................................................................................................................................................... 35

Table 4: Different sources of information collected by the customers ...................................................... 36

Table 5: Category of usage, car changing cycle compared with monthly income ...................................... 38

Table 6: Sales executive attribute rating by customers on the bases of monthly income ......................... 41

Table 7: : Customer ratings on finance, tax, benefits and risk attributes which customer consider,

important while buying a luxury car ........................................................................................................... 44

Table 8: Impact of astrological dates in buying of luxury cars .................................................................... 47

Table 9: KMO and Bartlett's Testa (Sales executive attribute) ................................................................... 49

Table 10: Total variance of sales executive attributes explained ............................................................... 49

Table 11: Rotated Component Matrix ( Sales executive attributes ) .......................................................... 51

Table 12: Factors Extracted (Sales executive attribute) .............................................................................. 52

Table 13: KMO and Bartlett's Test ( as per customer ratings ) ................................................................... 53

Table 14: Total Variance Explained ( as per customer ratings ) .................................................................. 54

Table 15: Rotated Component Matrix ( as per customer ratings ) ............................................................. 55

Table 16: Factors extracted by principal component analysis ( as per customer ratings ) ......................... 57

Table 17: Total Variance Explained ( as per sales executive attributes) ..................................................... 59

Table 18: Rotated Component Matrix (as per sales executive ratings ) ..................................................... 61

Table 19: Factors extracted by principal component analysis ( as per sales executive ratings ) ................ 62

Table 20: Comparing the models on the bases of purchase decision factors ............................................. 76

Table 21: Conversion Demo ( Audi Q5 to Audi Q3 ) .................................................................................... 79

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CHAPTER 1:

INTRODUCTION

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CHAPTER 1.1: INTRODUCTION

In May 2010, I worked as a Sales Executive in Suzuki automobile showroom during the

re-launch of modified „WagonR – the blue eyed boy‟. The company marketing team was

promoting the new „WagonR‟ in all fields of marketing. Every customer coming into the

showroom had a pre-occupied mind of buying the new „WagonR‟. The distributor knew that the

new wagoner has a high demand in the market. At the same time an existing model called Estilo

had a lower demand and high inventory.

The challenge was to increase the sales of Estilo and to have a controlled sale of WagonR.

As a sales executive it was always a challenge to convert a customer intending to buy WagonR

into buyers of Estilo.

That morning a customer arrived asking for a WagonR model. I already knew that the

customer had collected some information related to the WagonR model. I explained to him some

features of the new WagonR. What I did was only mention some features which are common to

WagonR and Estilo. At the end, I would ask a question like, would you like to see the new Estilo

also? Compared to WagonR its 25,000 lesser and also has the features which I have mentioned

earlier. For a moment the customer thinks why not check the new Estilo if the feature said earlier

are the same?

After the customer seeing the new Estilo, I bring forward more of its features

which I have not mentioned earlier. Finally the customer would choose model Estilo instead of

WagonR. This was possible only because I knew all the factors that contribute to decision

making. The way in which I presented the Estilo has brought in confidence to the customer that

his needs could be more satisfied by Estilo, rather than WagonR.

Today the automobile industry is one of the fastest growing industries in the

world. In a globalized world luxury cars are becoming more and more important. It reflects the

status symbol of wealth and passion the one possess. India is the second most populous country

in the world. The Gross Domestic Product per capita in India was last recorded at 3649.53 US

dollars in 20121. As per department of industrial policy and promotion in India, foreign direct

investment inflow to India in automobile sector was about US$ 6992 million, in between April

2000 to July 20122.

India has become the one of the preferred country for automobile companies. This

is because of the increase in buying power, improvement in infrastructure, stable government

structure and increasing population of India.

1.2: Background of the Study

The Purchase of a car involves a complex decision making process. The various

attributes involved in the decision making process include the top speed of the car, brand image,

fuel mileage, colour of the car etc. Automobile manufacturers are in a race to gain maximum

share of automobile sales. Luxury car manufactures are in a competition to differentiate the

products they deliver. The idea of what constitutes „luxury‟ is often different for different people.

This study focuses on identifying the factors which customers consider before purchasing a

1 INDIA GDP PER CAPITA PPP. (n.d) retrieved 01/21/2013, from India GDP Per capita Web Site: 3http://www.tradingeconomics.com/india/gdp-per-capita-ppp 2INDIA GDP PER CAPITA PPP. (n.d) retrieved 01/21/2013, from India GDP Per capita Web Site: 3http://www.tradingeconomics.com/india/gdp-

per-capita-ppp

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luxury car. These factors are then compared with the factors which sales executives focus on

while selling the car. This difference is evaluated though gap analysis. The results will help the

luxury automobile companies in delivering quality service to the customers. This will result in an

increase in the sales of automobiles.

1.3: Statement of the Problem

To understand the sales psychological involved in increasing the sales of luxury cars.

Effectiveness of different factors on the decision to purchase of luxury car.

Which are the factors which sales executives emphasise while communicating to the

customers.

Is there a gap in what the customer expects and what the sales executive delivers.

How can this gap be reduces to help improve the sales of automobiles.

How can his finding to applied in different departments of the organisation.

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CHAPTER 2:

LITERATURE REVIEW

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CHAPTER 2: LITERATURE REVIEW

2.1 Introduction

The thesis aims at analysis of the sales psychology involved in increasing the sale of

automobiles. The aim of this chapter is to know about the previous studies pertaining to

consumer psychology.

2.2 Consumer decision making

The study of consumer behaviour focuses on how individuals make decisions to spend

their available resources (time, money, effort) on consumption-related items.3 The field of

consumer behaviour covers a lot of ground. According to Solomon (2010) “consumer behaviour

is a study of the processes involved when individuals or groups select, purchase, use, or dispose

of products, services, ideas, or experiences to satisfy needs and desires.”4

2.2.1 Need of stimulation

Need stimulation is the first stage in buying process. In Indian context, buying of a car is

considered the second main dream after buying a house. Need stimulation comes from both

external and internal factors. The Howard–Sheth Model of buyer behaviour has categorised the

stimulus display (inputs) in main three balances Significative, Symbolic, Social.

3 Schiffman, L. G., & Kanuk, L. L. (2000). Consumer behavior. 7th. edn. Prentice Hall International. 4 Erasmus, A. C., Boshoff, E., & Rousseau, G. G. (2010). Consumer decision-making models within the discipline of consumer science: a critical approach. Journal of Family Ecology and Consumer Sciences/Tydskrif vir Gesinsekologie en Verbruikerswetenskappe, 29(1).

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Howard–Sheth Model of buyer behaviour 5

Figure 1: Howard–Sheth Model of buyer behaviour Significative

This factor includes attributes such as: 1. Quality 2. Price 3. Distinctiveness 4. Service 5.

Availability.6 Howard–Sheth Model of buyer behaviour in contest to field of car sales, includes

factors like,

Quality of the car which is sold

Price at which the car is offered

Distinctiveness of car from other models

Availability of cars.

5 A Simplified Description of the Theory of Buyer Behaviour Source: Howard and Sheth, p32 (1969) 6 Howard J.A and Sheth J.N.(1967). "Theory of Buyer Behaviour," Proceedings, American Marketing Association

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Symbolic

This factor includes attributes such as: 1. Quality 2. Price 3. Distinctiveness 4. Service 5.

Availability. This symbolic classification takes into consideration how the remaining factor is

perceived by others in their mind set.7

Social

This factor has different attributes which include 1. Family 2. Reference groups 3. Social class. 8

Howard–Sheth Model of buyer behaviour in contest to the field of car sales includes factors like,

1. Family wants and needs with regard to a car.

2. Reference group‟s advice towards purchasing a new car.

3. Social class prestige towards different class of car.

The major components involved in Howard–Sheth Model of buyer behaviour are 1. Input

variable 2. Hypothetical constructs 3. Exogenous variables 4. Hypothetical constructs.9

Other behaviour terms which model put forward about the thinking process included

attention (magnitude buyer information intake), comprehension (buyers store of brand

information), attitude (evaluation of brand choose to satisfy his needs), and intention (buyers

forecast of which brand to buy).

2.2.2 Need recognition

The need of the consumer in the consumer behaviour approach proposed by Jay D.

Lindquist and M.Joseph Sirgy states that the need recognition of the customer is the difference

between the current car benefits and the benefits of the new car. The larger the gap between the

benefits of new car and the old car, the higher the consumer need recognition10. Need

recognition of a consumer is dependent on the current benefits, he enjoys in using the present car

and the benefits which he expects to derive from the new car.

The basic need hierarchy of Abraham H Maslow, which motivates consumers, are as

follows.

1. Physiological needs

2. Safety needs

3. Belongingness and love needs

4. Esteem needs

5. Self-actualization needs11

7 Howard J.A and Sheth J.N (1969), the Theory of Buyer Behaviour, New York: John Wiley and Sons.9-28 8 Howard J.A and Sheth J.N (1969), the Theory of Buyer Behaviour, New York: John Wiley and Sons.9-28 9 Howard J.A and Sheth J.N (1973), The Theory of Buyer Behaviour, in H.H 10 Buyer and Consumer Behavior, 2009 Jay D. Lindquist, M. Joseph Sirgy. 11 A Theory of Human Motivation,1943, Maslow.

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The physiological needs are the basic needs such as water, food, shelter and sexual

behaviour. The safety needs includes security, dependability. The belongingness and love needs

include love and affection from the society, the belongingness in the society. The esteem needs

included self-respect and the respect from the society. The self-actualization needs are the

ultimate actualization for what you are. Some of the management experts don‟t agree to the last

self-actualization needs since many people believes that the need of man never ends till his death.

The consumer psychological mind-set is a state of mind, when the consumer recognizes

the need and takes necessary steps to satisfy the need. The different factors which contribute to

his decision making is closely related to the needs and wants of the consumer. The major decision

making process comes from his past experience related to the previous experience.

The new marketing era comes with not only satisfying the needs and wants of consumers;

Now new generation marketing is all about creating artificial need in the consumer mind by

having „seasonal shopping fests‟ ,„changing fashion trends‟, etc. which in return creates artificial

demand. The „A stimulus-response‟ model of buyer behaviour is a new development in the field

of motivation. This model is designed to create artificial need in the mind of the consumer.

Figure 2.8 A Stimulus-Response Model of Buyer Behavior12

Figure 2: A Stimulus-Response Model of Buyer Behaviour The model differentiates determinants and motivators in consumer buying behaviour and

concentrate more on the effects that an organization have on consumer buying decision by

controlling the communication channels.

12 Middelton, V.T.C (1994) Marketing for Travel and Tourism. 2nd edn. Butterworth-Heinemann, London .104-112

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The model suggests advertisement, sales promotion, brochure, personal selling and public

relationship as a means to promote sales. Friends, family and reference group are the other

external factors which affect the decision making of the consumer. The decision making is

influenced also by other factors such as the learning, perception, past experience, demographic,

economic and social position, psychographic characteristic, attitudes and needs - wants goals.13

The post purchase behaviour is also considered in making a decision in the purchase of next car.

2.2.3 Information search

The Engel-Kollat-Blackwell Model of Consumer Behaviour14

13 Middelton, V.T.C (1994) Marketing for Travel and Tourism. 2nd edn. Butterworth-Heinemann, London .104-112 14 The Engel-Kollat-Blackwell Model of Consumer Behaviour, Engel , Blackwell, and Miniard,(1995) page No 95

Stimuli: Marketer-

Dominated, other

Exposure

External search

Attention

Comprehension Perception

Yielding/ Acceptance

Retention

Dissatisfaction Satisfaction

M E M O R Y

Problem Recognition

Search Internal search

Outcomes

Purchase

Alternative Evaluation

Individual Characteristics:

Motives Values

Lifestyle Personality

Beliefs

Attitude

Intention

Social

Influences : Culture

Reference group Family

Situational Influences

Input Information Processing

Decision Process Variables Influencing Precision Process

Figure 3: The Engel-Kollat-Blackwell Model of Consumer Behaviour

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The Engel-Kollat-Blackwell Model of Consumer Behaviour has classified information

sources into marketing and non-marketing sources. Marking source in the case of car selling

includes advertisements, brochures, sales executive information, bill boards, posters and brand

campaign. Non-marketing sources includes advices by the peer groups, family, relatives and

well-wishers.15 This information collected has a great impact on the buying decision. If the

information collected is not enough to make a proper decision making, the consumer demand for

more information will be high. Even after collection of more information, if the consumer is not

able to make a decision on this alternative, then the psychological explanation is that, the

consumer expectation about the product is much higher than the actual product attributes.

According to W.L. Wilkie and P.R. Dickson “information search represents the primary

stage in which marketing can provide information and influence consumer decision.” 16The

information search priority is different for different people. A consumer who is more interested in

the running cost of the car will be more interested in having information regarding mileage,

service cost, changing period of battery, changing period of fuel filters, insurance covered parts in

the car, the cost of changing air bags, and the charge of car service.

If the consumer is more interested in the speed of the car, then the information which

interest him will be horse power of the car, engine Cubic Capacity, torque of the car, how much

time it takes from 0 to 100 km/h. If the consumer is more interested in comfort, the information

which may interest him will be the leather finishing of sits, wooden panelling, the type of

suspension, the tire width and the brake system of the car.

The Engel-Kollat-Blackwell Model of Consumer Behaviour has classified the stage of

information process into 5 stages. They are

1. Consumer exposure

2. Attention

3. Perception

4. Acceptance

5. Retention of incoming information.17

To retain the information, the consumer needs to be exposed to the information, allocate

space in his memory, interpret the stimuli, and retain the information in to long term memory.

For most of the consumer durables, information search is the most important step in

making decision making. Durable products have to be used for a longer period thus consumers

are more enquires about the information regarding the products and products comparing with our

similar products.

Girish N. Punj and Richard Staelin in Journal of Consumer Research have developed a

model for information search for new cars. In their study they have found out two unique

components of prior knowledge which they found out by survey of new car purchasers18.

1. Specific product knowledge

15 Assael, H. (2004). Consumer behavior: A strategic approach. Boston: Houghton Mifflin. 16 W. L. Wilkie and P. R. Dickson,Shopping for Appliances: Consumers' Strategies and Patterns of Information Search 17 The Engel-Kollat-Blackwell Model of Consumer Behaviour, Engel , Blackwell, and Miniard,(1995) page No 95 18Punj, Girish N., and Richard Staelin (1983), "A Model of Consumer Information Search Behavior for New Automobiles

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2. General product class knowledge

The specific product search includes less external searching compared to the general

product search. The external search in their study is found to be inversely related to the cost of

search, while external search was found to be directly related to cost savings.

The specific product knowledge search is based on the consumer interest towards specific

product attributes. The specific product knowledge is gathered from the user of the product this

are the information, peer groups, advices, family and other experts. The general product class

knowledge is searched mostly from the external sources.

2.2.4 Evaluation of alternatives

The Bettman Information-Processing Model of Consumer Choice19

19 Bettman, J. R. (1970). Information processing models of consumer behavior. Journal of Marketing Research, 370-376.

Motivation Goal hierarchy

Processing capacity

Attention

Information acquisition

and evaluation

Decision Processes

Consumption and

learning processes

Perceptual encoding

Scanner and

interrupt mechanisms

interrupt interpretation

and response

Memory search

External search

Scanner and


Interrupt interpretation and response

Scanner and


Interrupt interpretation

and response

Scanner and interrupt mechanisms

Interrupt interpretation and response

Figure 4: Bettman Information-Processing Model of Consumer Choice

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The Bettman Information-Processing Model of Consumer Choice finds that

psychologically, the main goals of the consumer are sub divided into different goal. This sub

divided goals are then matched with what the product serves. This sub divided goals are used to

evaluate the information and collected to make the best choice.

The goals which are set for the decision making are generated by two main processes.

1. attention

2. perceptual encoding

There are basically two types of attentions 1. Voluntary attention 2. Involuntary

attention.20 Voluntary attention is when consumer conscious allocates the processing capacity to

current goals. Involuntary attention is the spontaneous response to a special event.

The perceptual encoding deals with how the perceived stimuli have to be encoded. If the

encoded information is not enough to make a choice, the consumer tries to get more information

related to the product. The information search ends only when the information collected is

sufficient or the consumer finds that the additional information is costly in terms of money and

time.

The information collected is first scanned based on the priority of the consumer. The

information then is interpreted by the consumer based on the usage. For example: The

information about the cars width can be interpreted in such a way that - The length of the front

gate of the house is much higher than the width of the car so that the car can be parked inside the

house garage. This is the way consumers psychologically interpret the information given by the

external source. These interpretations are based in the past experience of the consumer.

Decision making process is done based on the goals of the consumer and how the product

satisfies his goals. Bettman‟s model indicates that after the evaluation of specific brand

information, two other factors influence the decision making. 1. Individual factors 2. Situational

factors. After considering both factors, a choice is made.

2.2.5 Purchase and post purchase evaluation

After the evaluation of the brand based on the information collected on the

consumer purchases, the choice is made. The choice is made based on the belief that the product

can satisfy the needs and wants of the consumer.

The purchase of the car depends on other factors which are mentioned in the

Bettman‟s model. In purchase of car, the other factors include financing of the car, identifying the

right dealer, finalizing the customization of car parts and negotiating on the final price. Among

the attributes, price of the car is one of the most important aspects were the consumer tries to find

a fix between product and price. If the consumer is not satisfied with the final price, he or she

may go for other low cost product, which can satisfy their needs.

The Bettman model gives more importance to the information processing ability

of consumer to make a choice based on the information, but have not mentioned anything about

the “criteria by which consumer accepts or refuses to information”

20 The Bettman Information-Processing Model of Consumer Choice, Bettman. (1979). P 402

24 | P a g e

Sheth-Newman Gross Model of Consumption Values21

Sheth-Newman Gross Model of Consumption Values has brought forward five

consumption values which influences the consumer behaviour of choice. The model classifies

factor influencing consumer behaviour into following.

1. Functional values – To Sheth et al. (1991) the functional value of an alternative is defined

as "The perceived utility acquired from an alternative for functional, utilitarian, or

physical performance. An alternative acquires functional value through the possession of

salient functional, utilitarian, or physical attributes. Functional value is measured on a

profile of choice attributes. "

„Functional values‟ means the attributes which the car delivers when purchased. It can be

physical attributes, salient functional or utilitarian. As per the economic utility theory by Stigler

(1950) and Marshall (1890), functional valve is considered to be the primary decision making

factor in a “rational man”22. As per Ferber, 1973 the alternative functional factors can be derived

from its attributes23. Katz Daniel(1960) in the functional theory of attitudes mentions some

general functional factors which includes 1. Utilitarian function 2. Valve expressive function 3.

Ego defensive function 4.24 Knowledge function

2. Social value - Sheth et al. (1991;161) defines social values as "The perceived utility

acquired from an alternative association with one or more specific social groups. An

alternative acquires social value through association with positively or negatively

21 Sheth-Newman Gross Model of Consumption Values, Sheth, Newman, and Gross (1991) Pp159-170 22 economic utility theory, Marshall (1890) and Stigler (1950) 23 Ferber. Robert (1973) Consumer Economics a Survey a Journal of economics Literature 11 December, 1303-1342 24 Katz Daniel (1960) The Functional Approach The Study Attitude Public Opinion Q.24 summer 16-204

Consumer Choice Behaviour

Functional Value

Conditional Value

Social Value

Emotional Value

Epistemic Value

Figure 5: Sheth-Newman Gross Model of Consumption Values

25 | P a g e

stereotyped demographic, socioeconomic, and cultural-ethnic groups. Social value is

measured on a profile choice imagery."25

3. Emotional value - Sheth et al. (1991; 161) defined emotional value of an alternative as

"The perceived utility acquired from an alternative‟s capacity to arouse feelings or

affective states. An alternative acquires emotional value when associated with specific

feelings or when precipitating those feelings. Emotional values are measured on a profile

of feelings associated with the alternative."26

4. Epistemic value- Sheth et al. (1991 ;162) defined epistemic value as "The perceived

utility acquired from an alternatives capacity to arouse curiosity, provide novelty, and/or

satisfy a desire for knowledge. An alternative acquires epistemic value by items referring

to curiosity, novelty, and knowledge."27

5. Conditional value- Sheth et al. (1991;162) defined the conditional value as "The

perceived utility acquired by an alternative is the result of the specific situation or set of

circumstances facing the choice maker. An alternative acquires conditional value in the

presence of antecedent physical or social contingencies that enhance its functional or

social value. Conditional value is measured on a profile of choice contingencies."28

Based on the above influence the consumer chooses the product which gives them the

maximum satisfaction at the minimum cost. This experience which he delivers from the purchase

of the product affects the consumer behaviour. The consumer behaviour thereafter depends on

how good or bad the experience was. The consumer uses his learning curve which he delivers

from the previous purchase, as the base for the purchase of his next car.

2.3 How do sales executive use psychology in sales of cars

Whittler (1994) shows that customer spend little time in collecting information about the

car of their interest. Customer collects only the basic information related to the car. Rarely does a

consumer study a car by comparing to the similar models. The main intention of customer is to

get the information need for purchase from the sales executive of the company.

In fact research has shown that customers have a mind-thought process of

comparing the new car, with the previous car model. Most of the decision making process is done

based on the experience which they have on the previous car. The failure in meeting their needs,

25 Sheth, J.N.B.I. and Newman B.L Gross, B.L. (1991) .Why We Buy What We Buy a Theory of Consumer Behavior. Journal of Business Research Vol 22. 159-170 26 Sheth, J.N.B.I. and Newman B.L Gross, B.L. (1991) .Why We Buy What We Buy a Theory of Consumer Behavior. Journal of Business Research Vol 22. 159-170 27 Sheth, J.N.B.I. and Newman B.L Gross, B.L. (1991) .Why We Buy What We Buy a Theory of Consumer Behavior. Journal of Business Research Vol 22. 159-170 28 Sheth, J.N.B.I. and Newman B.L Gross, B.L. (1991) .Why We Buy What We Buy a Theory of Consumer Behavior. Journal of Business Research Vol 22. 159-170

26 | P a g e

the dissatisfaction, bad experiences caused by the car in their past, are the foundation knowledge

of their questions and doubts.29

The sales representative should ask questions that encourage the consumers to

think about their past experience with their cars. The main idea is to bring their previous decision

making factor which consumer have used in their previous purchase decision; which is more

important for the consumer than the information given by the sales representative.

These decision factors are in most case different from executive‟s point of view.

The sales representative information which is not related to the customer‟s decision factor can

waste a lot of time and energy.

The decision making process includes lots of complex thought process and visual

images. This thought process and the visual images are related to the past experience with the

previous car. Sales representative must be able to find this thoughts and visuals. This thinking

pattern can later help the sales representative to have a long term, customer relationship with the

customer.30

29 1. Eliciting Consumer Choice Heuristics: Sales Representives' Persuasion Strategies Tommy E. Whittler The Journal of Personal Selling and Sales Management Vol. 14, No. 4 (Fall, 1994), pp. 41-53 30 1. Eliciting Consumer Choice Heuristics: Sales Representives' Persuasion Strategies Tommy E. Whittler The Journal of Personal Selling and Sales Management Vol. 14, No. 4 (Fall, 1994), pp. 41-53

27 | P a g e

2.4 How sales executive can use psychological in gaining trust of customer

The Formation of Buyer's Trust of the Seller in an Initial Sales Encounter

Figure 6: Model of Buyer's Trust of the Seller in an Initial Sales Encounter

Trust worthiness as per Mayer et al. (1995) and Rousseau et al. (1998) is “an expectation

that another party will perform a particular action.”31 This article is about the study on the sales

representative‟s perception ability and its impact on the consumers mind. Role of verbal and non-

verbal communication of sales representative in gaining the trust of the consumers have a crucial

role in selling of cars. The sales executive‟s first encounter with the consumer is very important.

The way in which he smiles, his other facial expressions, the body language, and the way he

speaks have a profound impact on the minds of the consumer. The study also found that physical

appearance of sales executive have a very important role in gaining the trust of the consumer.32

The results indicate that sales representative‟s expertise, likability and the firm‟s

reputation have a significant role in the consumer‟s decision making. The practical application of

these findings in the field also been mentioned in this report.

31 Trust and New Technologies: Marketing and Management on the Internet and mobile media by Teemu Kautonen, H. Karjaluoto Pages:5 32 The Journal of Marketing Theory and Practice Issue: Volume 16, Number 1 / Winter 2008 Pages: 27 - 39 URL: Linking Options DOI: 10.2753/MTP1069-6679160102 The Formation of Buyer's Trust of the Seller in an Initial Sales Encounter John Andy Wood A1, James S. Boles A2, Barry J. Babin A3 A1 West Virginia University, Morgantown, WV A2 Robinson College of Business, Georgia State University, Atlanta, GA A3 Department of Marketing and Analysis, Louisiana Tech University, Ruston, LA

28 | P a g e

2.5 The relevance of empathy for the purpose of sale

This study is about the understanding of the relevance of empathy for the purpose

of sale. The study tries to understand empathy, which is considered as one of the main traits of

the sales representative. The study tries to find a positive relationship between sales

representative sales performance and empathy. The results of the study found that there is no

positive relation between empathy and sales performance. Empathy measurement used in this

study is the Barrett-Lennard Relationship Inventory. The study tried to compare the empathy

rating with the new customers for the cars. The final results were contradicting the prior

assumption of empathy having a positive relationship with sales performance. 33

33 Psychology & Marketing Volume 9, Issue 4, pages 297–310, July/August 1992 The effects of empathy on salesperson effectiveness Lyndon E. Dawson Jr.1, Barlow Soper1, Charles E. Pettijohn2 Article first published online: 6 SEP 2006 DOI: 10.1002/mar.4220090404

29 | P a g e

CHAPTER 3:

RESEARCH METHODOLOGY

30 | P a g e

CHAPTER 3: RESEARCH METHODOLOGY

3.1. Introduction

The main objective of this study is to understand the sales psychological involved in

increasing the sales of luxury cars. The study also tries to identifies different factors that

influence the customer in decision making process and evaluates the weightage of each factor to

the decision making process. The results of this customer decision factors is compare, with the

factor which sales executives and managers emphasis more while delivering to the customers.

Thus the resultant solution from final gap analysis makes sure in meeting the need of the

customer of luxury car segment.

3.2. Problem definition

To analyse the factors that affect the purchasing decision of the customers for the

purchase of luxury automobile, and thereby provide superior delivery to the customers. The

purchase decision of the customer depends on many factors like reputation, driving pleasure,

standard of the car, security, convenience, and also the quality of the luxury car.

3.3. Objectives of the project

1. To identify and access the factors affecting the consumer purchasing decision for luxury

cars.

2. To identify and access the factors which luxury car sales executive emphasis.

3. To identify the gap between the customer expectation and company deliver.

4. Suggest meaning full solutions to recover the gap from the results obtained.

3.4. Research design

The research conducted is a mixture of both primary and secondary research. The primary data

collection involves collection of response by the use of structured questionnaire from the defined

sample size. It also involves personal interview with the experts in the field. The secondary

research has been collected though online and offline research paper, journals, books and other

data research database.

3.5. Sample method

The sample method used to select the target group was snowball sampling. The initial target

respondents select additional respondents from their network of friends. The purpose of this is to

get a homogeneous sample group. Along with the snowball sampling, simple random sampling

was also followed, where each element of population, has an equal probability of getting selected.

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3.6. Sample size and research setting

As per the report of The Economic Times, total luxury car sales stood at 23000 units in 2011 and

is expected to reach 30,000-31,000 units by the end of 2012. Taking into consideration the time

limit the sample size of the study is taken as 50. The sample of 50 is selected from different cities

of the different states in the India. The sample of 50, were from target group of different age

group, both the genders, different religion, different education background, with an income group

of 50000 / month and above.

Target group includes both the existing car owners and aspirants.

Age group: 20 to 50 yrs.

Occupation: Self-employed, Employed in Private/Public sector, Retired.

3.7. Data collection methods and tools

The primary data collection contained two sets. One set includes the data collected from

the target customer and aspirants for luxury cars. The second set includes the data collected from

the mangers and sales executives of luxury cars which includes Mercedes, BMW, Jaguar, Skoda

and Audi.

The data collection was done with the help of questionnaire. The questionnaire is made in

English. The questionnaire was made in google docs, there after the links were sent to the target

groups by mail. The target group fills in data though email and the data is recorded automatically

in the google drives. Manual questionnaire was also used were by data was collected manually by

paper and pen. Were the target group was contacted personally. The purpose of the study was

explained clearly and then respondents were requested to fill the printed questionnaire. The data

collected from the showroom manager and executives were mostly manual bases. Thereby more

relevant information can be collected by interacting with the manager in charge. The

questionnaire consists of check boxes, multiple choice, grid, radio buttons and scales. The online

questionnaire provides faster means of data collection from across the India.

3.8. Data collection from car owners and aspirators

The questionnaire starts by a small description about the purpose of the research. It also

includes a confidentiality statement to ensure that the response obtained from the respondent is

kept confidential. The sensitive information like the name, age, profession and income are

collected. The first set of questions is to know the general information about the customer. This is

to identify the independent variables of the customer based on which the decision is make. The

independent factors questions includes the gender, education background, occupation, car owned,

price range of high-end car used, road system used, time spend on car per week, source of

information search, car changing cycle, category of usage. The dependent variables evaluating

question asked was, whether you intend to buy a luxury car(s) in the next year. The main idea of

this set of question is to identify the major general independent factors involved in the decision

making of purchase of luxury cars.

The next set of questions is for the purpose of determining the attributes of a car which

are most in purchasing of luxury cars. The first questionnaire for pilot study contained 78

attributes. After the pilot study of sample size 30, attributes was reduced to 28. To minimize the

effort used for filling the questionnaire a grid matrix system was used in attribute evaluation.

The link of questionnaire in Google docs is: http://goo.gl/1f5sa

http://goo.gl/1f5sa

32 | P a g e

3.9. Data collection for managers and sales executive

The questionnaire to be filled by the managers and sales executives had two parts. First

part of questionnaire contain general questions to check the statue and quality of sales executive

it includes questions like education background, sales done per month, car model in which you

deal which you deal the most, his view about personal networking, time spend in sales related

activity. There was no confidentiality statement because of the common fact that there is only one

dealer for each district in each luxury car company.

The second part of questionnaire consists of 28 attributes, which were the output of user

and aspiration pilot study. Sales executives were asked to rate the attributes based on the how

they emphasis on these attributes. This is done to understand whether executive‟s delivered

service is to the expectation of customers.

Luxury means different for different people so to get an unbiased information, data was

collected from different company showroom which include Jaguar, Land rover, Range Rover,

BMW, Audi, Skoda and Mercedes. Sale executive questionnaire sample size is 50.

3.10. Secondary data collection

The secondary data collection was done by conducting an article review. This was

conducted by referencing to research papers, previous study conducted, newspaper articles

relevant and related to the study. Online data bases like Emerald, EBSCO, JSTOR, Sage journals,

google scholar were used. Information pertaining to sales psychology, customer behaviour and

sales executive way of negotiation were collected.

3.11. Limitations

Time consumption is high in identifying the target customer.

Inaccurate information from the respondents

Getting appointment to meet the manager of luxury car showroom is time consuming.

To meet the sales executives when they are free from day job schedule need lots of

communication and time management.

3.12. Data analysis tools

Factor analysis of data was done with the help of SPSS statistical software. The data

collected is converted in MS Excel format. The pie chart, bar chart models were extracted from

the excel sheet itself. Further for advanced data processing the excel sheet is loaded into SPSS

software. SPSS was used to analysis the attributes and further converted into factors.

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CHAPTER 4:

ANALYSIS

34 | P a g e

CHAPTER 4: ANALYSIS

4.1. Reliability Statistics

4.1.1. Customer Data

Table 4.1.1 Cross Tabulations

Table 1: Reliability statistics (Customer Data)

Case Processing Summary

N %

Case

s

Valid 50 100.0

Excludeda 0 .0

Total 50 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's

Alpha

N of

Items

.923 28

Cronbach‟s Alpha is 0.923, which is above standard value of 0.75. Thus the sampling is

internally consistent or reliable.

4.1.2. Sales Executive Data

Table 4.1.2 Cross Tabulations

Table 2: Reliability statistics (Sales executive Data)

Case Processing Summary

N %

Case

s

Valid 50 100.0

Exclude

da

0 .0

Total 50 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's

Alpha

N of

Items

.947 28

35 | P a g e

Cronbach‟s Alpha is 0.947, which is above standard value of 0.75. Thus the sampling is

internally consistent or reliable

4.2 cross tabulations

Table 4.2.1 Describing the monthly income, educational background and occupation in terms of

frequency.

Table 3: Describing the monthly income, educational background and occupation in terms of frequency.

Age group

Below

20

20 to

30

30 to

40

40 to

50

Above

50

Total

Count Count Count Count Count Count

Monthly

Income

Less than 50,000 0 0 0 0 0 0

50,000 to 75,000 0 10 13 0 0 23

75,000 to 100,000 0 4 6 1 0 11

1,00,000 to 1,25,000 0 3 4 1 0 8

Above 1,25,000 0 5 1 0 2 8

Total 0 22 24 2 2 50

Education

background

Master degree 0 9 11 0 0 20

Bachelor degree 0 5 5 0 2 12

Professional qualification

(engineering/CA/CS/MBBS)

0 6 7 2 0 15

Others 0 2 1 0 0 3

Total 0 22 24 2 2 50

Occupation Home maker 0 0 0 0 0 0

Employed (private/public sector) 0 6 9 0 0 15

Self- employed 0 16 15 1 2 34

Retired 0 0 0 1 0 1

Student 0 0 0 0 0 0

Other 0 0 0 0 0 0

Total 0 22 24 2 2 50

The number of respondents in the age group of 20 to 30 is 22 people, which is about 44 %

of the total population. Among them, 9 people comes from a master degree background, 5 from a

bachelor degree background, 6 comes from a professional background; rest 2 comes from other

courses. The number of respondents in the age group of 30 to 40 is 24 people, which is about 48

% of the total population. Among them 11 people comes from a master degree background, 5

36 | P a g e

from a bachelor degree background, 7 comes from a professional background; rest 1 comes from

other courses. The number of respondents who coming under the age group of 40 to 50 are 2

people, which is about 4 % of the total respondents. Among them 2 comes from a professional

background. The number of respondents in the age group of above 50 is 2 people, which is about

4 % of the total population. Both of them have a bachelor‟s degree.

The number of respondent with a monthly income of rupees 50000 to 75000 consist of

23 people, which is 46% of the total population. The number of respondent with a monthly

income of rupees 75000 to 100000 consist of 23 people, which is 46% of the total respondents.

30 % of the total respondent works in private or public sector field. 68% of the total respondents

are self-employed.

Table 4.2.2 Different sources of information collected by the customers

Table 4: Different sources of information collected by the customers

My Monthly Income is ( )

Less

than

50,000

50,000

to

75,000

75,000

to

100,000

1,00,000

to

1,25,000

Above

1,25,000

Total

Count

Magazines,

newspaper

and

journals

Every

time

Gender Female 0 1 0 0 0 1

male 0 3 2 1 0 6

Almost all

the time

Gender Female 0 2 1 0 1 4

male 0 2 1 2 4 9

Sometime Gender, Female 0 1 0 0 0 1

male 0 8 5 3 2 18

Rarely Gender, Female 0 2 0 0 0 2

male 0 3 2 1 0 6

Never

Gender, Female 0 1 0 0 0 1

male 0 0 0 1 1 2

Total


male 0 16 10 8 7 41

Peer

groups

Every

time


male 0 4 2 2 2 10

Almost all

the time


male 0 6 5 3 4 18


male 0 4 1 2 1 8


male 0 2 1 0 0 3

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Never Gender, Female 0 0 0 0 0 0

male 0 0 1 1 0 2

Total Gender, Female 0 7 1 0 1 9

male 0 16 10 8 7 41

Internet Every

time


male 0 8 4 3 3 18

Almost all

the time


male 0 2 4 2 3 11


male 0 4 0 1 0 5


male 0 1 1 1 1 4

Never Gender, Female 0 0 0 0 0 0

male 0 1 1 1 0 3

Total Gender, Female 0 7 1 0 1 9

male 0 16 10 8 7 41

When checking the effectiveness of the different source of information search. 40 % of

the respondents agree to the fact that they use magazines, newspaper and journals in collecting

information regarding automobile. 22% are of the option that they don‟t use magazines,

newspaper and journals for their data collection, before purchase of automobile. Among the

female population 56% agree to the fact that they use magazine before purchase of luxury cars.

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Figure 4.2.1: Sources on information collection and its usage

Figure 7: Sources on information collection and its usage

Internet search has the highest number of usage for information search. Which is about 35 from

the total respondents of 50; which comes to 70% of the total respondents. 34 people from the

population of 50 agree to the fact that they use peer group advice before purchase of a luxury car.

It comes to 68% of the total population size. Which shows a very close media reach when

compare to the internet media. This gives an idea of how important public relationship building is

for a luxury car segment.

Table 4.2.3: Category of usage, car changing cycle compared with monthly income

Table 5: Category of usage, car changing cycle compared with monthly income

Monthly Income ( )

Less

than

50,00

0

50,00

0 to

75,00

0

75,00

0 to

100,0

00

1,00,

000

to

1,25,

000

Abov

e

1,25,

000

Total

Count

Categorise of usage I use my car only when

absolutely necessary

0 11 2 3 2 18

I just use my car for my 0 9 7 3 4 23

0

5

10

15

20

25

Magazines, newspaperand journals

Peer groups Internet

Every time

Almost all the time

Sometime

Rarely

Never

39 | P a g e

day-to-day activities

I use my car for every

possible occasion

0 3 2 2 2 9

Total 0 23 11 8 8 50

Car changing period Once in 2 years 0 2 0 2 1 5

Once in 4 years 0 7 8 3 5 23

Once in 6 years 0 7 0 0 0 7

After 6 years 0 6 3 3 2 14

Total 0 23 11 8 8 50

To understand the respondents‟ usage behaviour, I have classified the usage behaviour

into 3 categories. 1) People who uses their car only when absolutely necessary. 2) People who

uses their car for their day to day activities. 3) People who uses their car for every possible

occasion. 36% of the total respondents belong to the category of using their cars when absolutely

necessary. This also shows an insight that, there are alternative solutions used by this class of

people for their day to day activity. This could be anything like a second car, public transport or

taxi. This class of people are looking for luxury cars, for a luxury class status symbol rather than

a utility.

Second category consists of day to day users which can be considered to be people who

seriously look at luxury cars, for their utility. This group consist of 46% of the total respondents.

The third group consists of extreme users of luxury cars

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Figure: 4.2.2: Category usage of luxury cars

Figure 8: Category usage of luxury cars

Category usage of luxury cars

Extreme user of luxury cars when compared to the monthly income, we can observe that

they are the category of people who earns a monthly salary of 75 000 and above. Chart of

category of usage is also depended on the bases on the luxury car which the respondents own.

0

2

4

6

8

10

12

use my car onlywhen absolutely

necessary

I just use my car formy day-to-day

activities

I use my car forevery possible

occasion

50,000 to 75,000 Rs

75,000 to 100,000 Rs

1,00,000 to 1,25,000

Above 1,25,000

41 | P a g e

Figure 4.2.3: Car changing period

Figure 9: Car changing period Car changing period

When we observe the chart, we find that income group of 50,000 to 75 000 have can

purchase pattern of changing the luxury car once in 2year. This purchase can also be from the

second hand sales of luxury car. This pattern also depends on the price rage and life span of the

luxury car owned by the respondent. When we observe the buying cycle of luxury car it also

depends on the product life cycle of luxury car which comes to 5 to 10 year. The new launched

model of Q3 will have no product change for next 10 years Indian market.

Table 4.2.4:Sales executive attribute rating by customers on the bases of monthly income

Table 6: Sales executive attribute rating by customers on the bases of monthly income

My Monthly Income (Rs)

Less

than

50,000

50,000

to

75,000

75,000 to

100,000

1,00,000

to

1,25,000

Above

1,25,000

Total

Count

Dress code is

important

strongly

disagree

0 1 0 0 0 1

Disagree 0 3 0 2 0 5

Neutral 0 4 3 1 7 15

Agree 0 12 6 5 1 24

strongly 0 3 2 0 0 5

0

2

4

6

8

10

12

Once in 2 years Once in 4 years Once in 6 years After 6 years

50,000 to 75,000 Rs

75,000 to 100,000 Rs

1,00,000 to 1,25,000

Above 1,25,000

42 | P a g e

agree

Total 0 23 11 8 8 50

communication

skill is important

strongly

disagree

0 0 0 0 0 0


Neutral 0 0 3 2 3 8

Agree 0 17 7 6 3 33

strongly

agree

0 4 1 0 1 6

Total 0 23 11 8 8 50

Experienced sales

executive have

more chance of

convincing me to

buy the car.

strongly

disagree

0 0 0 0 0 0


Neutral 0 5 3 1 3 12

Agree 0 10 5 6 3 24

strongly

agree

0 6 3 0 1 10

Total 0 23 11 8 8 50

Sales executive

using my same

mother tongue

have more chance

of convincing me

to buy the car.

strongly

disagree

0 0 0 1 0 1

Disagree 0 8 2 1 2 13

Neutral 0 4 3 2 4 13

Agree 0 5 4 3 2 14

strongly

agree

0 6 2 1 0 9

Total 0 23 11 8 8 50

Sales executives

“who knows me

personally” have

more chance to

convince me to

buy the car.

strongly

disagree

0

1

0

1

1

3


Neutral 0 3 2 3 3 11

Agree 0 5 8 3 2 18

strongly

agree

0 9 1 1 2 13

Total 0 23 11 8 8 50

I like the sales

executive to offer

a test drive of the

car which I am

interested in.

strongly

disagree

0 1 0 0 2 3


Neutral 0 2 2 4 2 10

Agree 0 10 2 1 1 14

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strongly

agree

0 7 6 3 3 19

Total 0 23 11 8 8 50

I think the sales

executive needs to

come to my home

to close the deal.

strongly

disagree

0 3 2 0 2 7


Neutral 0 7 2 4 3 16

Agree 0 6 4 2 0 12

strongly

agree

0 4 2 1 1 8

Total 0 23 11 8 8 50

I like to discuss

my experiences

and problems

with cars I have

owned in the past

with my sales

executive.

strongly

disagree

0 1 0 0 1 2


Neutral 0 3 3 2 3 11

Agree 0 13 6 5 3 27

strongly

agree

0 4 0 0 1 5

Total 0 23 11 8 8 50

I like the sales

executive to

recommend a car.

strongly

disagree

0 1 0 0 1 2


Neutral 0 9 1 5 2 17

Agree 0 6 4 0 1 11

strongly

agree

0 6 3 1 2 12

Total 0 23 11 8 8 50

I don‟t like it

when a sales

executive tries to

convince me to

purchase another

model.

strongly

disagree

0 2 1 0 1 4


Neutral 0 7 0 4 0 11

Agree 0 9 4 3 2 18

strongly

agree

0 4 6 1 3 14

Total 0 23 11 8 8 50

58% of the total respondents agree to the fact that dress code is important. 68% of the

respondents agree to the fact that experienced sales executive have more convincing ability to

make the customer buy the product.

44 | P a g e

Figure 4.2.4: Sales executive attributes

Figure 10: Sales executive attributes

When we observe the chart we can find that 78% of the total sample agrees to the fact that

communication skills is the most essential attribute which a sales executive needs to have.

Table 4.2.5: Customer ratings on finance, tax, benefits and risk attributes which customer

consider, important while buying a luxury car.

Table 7: : Customer ratings on finance, tax, benefits and risk attributes which customer consider, important while buying a luxury car

Maximum amount that customer is willing to spend on a luxury car

Less than

15,00,000

15,00,000

to

30,00,000

30,00,000

to

40,00,000

40,00,000

to

55,00,000

More than

55,00,000

Total


loan strongly 1 2 3 0 0 6

0

5

10

15

20

25

30

35

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

45 | P a g e

availability disagree

disagree 0 4 4 3 1 12

neutral 1 5 1 1 1 9

agree 4 3 7 1 1 16

strongly

agree

3 1 2 1 0 7

Total 9 15 17 6 3 50

Interest rates

on the loan

strongly

disagree

0 1 2 1 0 4

disagree 0 3 2 0 1 6

neutral 1 6 5 3 1 16

agree 4 3 5 2 1 15

strongly

agree

4 2 3 0 0 9

Total 9 15 17 6 3 50

Tax rate strongly

disagree

0 2 2 0 0 4


neutral 3 3 4 3 0 13

agree 3 7 4 1 2 17

strongly

agree

3 2 4 0 0 9

Total 9 15 17 6 3 50

Down

payment

(first deposit

on loan

repayment)

strongly

disagree

0 3 0 0 1 4


neutral 2 5 3 2 0 12

agree 5 4 7 2 1 19

strongly

agree

2 0 3 0 1 6

Total 9 15 17 6 3 50

Benefits

(cash

discount &

free

accessory)

strongly

disagree

0

1

1

1

1

4


neutral 2 4 6 1 0 13

46 | P a g e

agree 4 7 3 2 2 18

strongly

agree

3 2 4 1 0 10

Total 9 15 17 6 3 50

Risk

associated

with

repayment of

dues

strongly

disagree

1 2 2 1 0 6


neutral 1 1 4 0 1 7

agree 3 6 5 2 2 18

strongly

agree

4 3 3 1 0 11

Total 9 15 17 6 3 50

Figure 4.2.5: Financial attributes

Figure 11: Financial attributes

02468

101214161820

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

47 | P a g e

When evaluating the graph we find that risk associated with repayment of dues is

a major issue compare to other attributes of finance. 58% of the total respondent are of the

opinion that risk in repayment is a major issue. 56% of the total respondents agrees to the fact

that benefits are attractive factor for buying a luxury car.

Table 4.2.6: Impact of astrological dates in buying of luxury cars

Table 8: Impact of astrological dates in buying of luxury cars

My Monthly Income is, [Monthly Family income ]

Less

than

50,000

50,000

to

75,000

75,000

to

100,000

1,00,000

to

1,25,000

Above

1,25,000

Total


I like to buy

my car on a

preferred

astrological

date

strongly

disagree

Gender, female 0 2 0 0 1 3

male 0 3 3 1 3 10

disagree Gender, female 0 2 0 0 0 2

male 0 4 2 3 1 10

neutral Gender, female 0 2 0 0 0 2

male 0 1 2 2 1 6

agree Gender, female 0 1 0 0 0 1

male 0 5 3 1 2 11

strongly

agree

Gender, female 0 0 1 0 0 1

male 0 3 0 1 0 4

Total Gender, female 0 7 1 0 1 9

male 0 16 10 8 7 41

48 | P a g e

Astrological date

Astrology dates are appropriate time for a certain event to occur as per the

recommendation of a horary astrologer. Historically in India it‟s being used in plan battles,

weddings and trips. Some of the respondents in the survey like to buy their car on this specific

date.

Figure 4.2.6: Number of people preferring to buy car according on their preferred astrological

dates

Figure 12: Number of people preferring to buy car according on their preferred astrological dates

As per the chart 50 % of the total respondents wish to buy their car according to their

preferred astrological dates. 34% of respondent disagree is this opinion.

13

12 8

12

5

Number of people preferring to buy car according on their

preferred astrological dates

strongly agree

agree

nutral

disagree

strongly diagree

49 | P a g e

4.3 factor analysis

4.3.1: Factor analysis on sales executive attributes selected by customer.

Table 4.3.1: KMO and Bartlett‟s test

Table 9: KMO and Bartlett's Testa (Sales executive attribute)

KMO and Bartlett's Testa

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .691

Bartlett's Test of

Sphericity

Approx. Chi-Square 128.918

df 45

Sig. .000

a. Based on correlations

KMO measure of sampling adequacy is .691. If the value comes, between 0.5 and 1.0 it

indicates that the factor analysis is appropriate. Since the KMO measure of sample adequacy is

above 0.5 sampling is adequate, enough to have a proper factor analysis.

Table 4.3.2:Total variance of sales executive attributes explained

Table 10: Total variance of sales executive attributes explained

Total Variance Explained

Compon

ent

Initial Eigenvaluesa Extraction Sums of

Squared Loadings

Rotation Sums of Squared

Loadings

Tot

al

% of

Varia

nce

Cumulat

ive %

Tot

al

% of

Varia

nce

Cumulat

ive %

Tot

al

% of

Varia

nce

Cumulat

ive %

Raw 1 3.7

95

33.71

7

33.717 3.7

95

33.71

7

33.717 3.0

33

26.94

2

26.942

2 2.0

32

18.05

4

51.771 2.0

32

18.05

4

51.771 2.3

04

20.47

2

47.414

3 1.4

11

12.53

6

64.306 1.4

11

12.53

6

64.306 1.9

01

16.89

2

64.306

4 .97

9

8.697 73.004

5 .86

1

7.650 80.654

6 .70

7

6.285 86.939

50 | P a g e

7 .50

7

4.502 91.441

8 .38

4

3.410 94.851

9 .32

9

2.922 97.773

10 .25

1

2.227 100.000

Rescal

ed

1 3.7

95

33.71

7

33.717 3.3

53

33.53

3

33.533 2.6

75

26.75

2

26.752

2 2.0

32

18.05

4

51.771 1.5

24

15.23

7

48.770 1.8

43

18.43

4

45.186

3 1.4

11

12.53

6

64.306 .98

0

9.803 58.573 1.3

39

13.38

7

58.573

4 .97

9

8.697 73.004

5 .86

1

7.650 80.654

6 .70

7

6.285 86.939

7 .50

7

4.502 91.441

8 .38

4

3.410 94.851

9 .32

9

2.922 97.773

10 .25

1

2.227 100.000

Extraction Method: Principal Component Analysis.

a. When analyzing a covariance matrix, the initial eigenvalues are the same across the raw and rescaled solution.

With Eigen value of 1 and extraction method of Principal Component Analysis 3 components

were extracted from 10 main attributes. The total variance explained is 64.306.

51 | P a g e

Figure 4.3.1: Scree plot

Figure 13: Scree plot (Sales executive attributes) Scree plot showing the components with respect to its Eigen values.

Table 4.3.3 Rotated Component Matrix

Table 11: Rotated Component Matrix ( Sales executive attributes )

Rotated Component Matrixa

Raw Rescaled

Component Component

1 2 3 1 2 3

I like the sales executive

to offer a test drive of

the car which I am

interested in.

1.023 .852

Sales executives “who

knows me personally”

.774 .671

52 | P a g e

have more chance to

convince me to buy the

car.

Sales executive using

my same mother tongue

have a better chance of

convincing me to buy

the car.

.740 .662

I like to discuss my

experiences and

problems with cars I

have owned in the past

with my sales executive.

.571 .601

communication skill is

important

.380 .534

Experienced sales

executive have more

chance of convincing me

to buy the car.

I like the sales

executive to recommend

a car.

.996 .869

I don‟t like it when a

sales executive tries to

convince me to purchase

another model.

1.023 .865

Dress code is important

I think the sales

executive needs to come

to my home to close the

deal.

1.146 .908


Rotation Method: Varimax with Kaiser Normalization.

Table 4.3.4: Factors Extracted

Table 12: Factors Extracted (Sales executive attribute)

Factor A Factor B Factor C

I like the sales executive to

offer a test drive of the car


recommend a car

I think the sales executive

needs to come to my home to

53 | P a g e

which I am interested in close the deal.

Sales executives “who knows

me personally” have more

chance to convince me to buy

the car

I don‟t like it when a sales

executive tries to convince

me to purchase another

model

Sales executive using my

same mother tongue have a

better chance of convincing

me to buy the car.

I like to discuss my

experiences and problems

with cars I have owned in the

past with my sales executive.

Communication skill is

important

The above table shows the components and its items extracted by Principal component analysis.

A principal components analysis with varimax rotation indicated that the data could be

represented by 3 factors. The 10 attributes measuring the sales executive skills were analysed

using common factor analysis and 3 factors were extracted. The factors are defined as follows

Factor 1: Personal friend who acts according to need of the customers.

Factor 2: Trust-worthy recommender.

Factor 3: Sales Executive who gets things done at customer home itself.

4.3.2: Factor analysis on the luxury car attributes as per the customer ratings

Table 4.3.4: KMO and Bartlett's Test

Table 13: KMO and Bartlett's Test ( as per customer ratings )

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.651

Bartlett's Test of

Sphericity


37

df 378

Sig. .000

KMO Measure of Sampling Adequacy is .651. If the value comes, between 0.5 and 1.0 it



54 | P a g e

Table 4.3.5: Total Variance Explained

Table 14: Total Variance Explained ( as per customer ratings )


Compone

nt

Initial Eigenvalues Extraction Sums of Squared

Loadings


Loadings

Tota

l

% of

Varian

ce

Cumulati

ve %

Tot

al

% of

Varian

ce

Cumulati

ve %

Tota

l

% of

Varian

ce

Cumulati

ve %

1 9.58

3

34.225 34.225 9.58

3

34.225 34.225 4.87

9

17.425 17.425

2 3.18

0

11.356 45.581 3.18

0

11.356 45.581 4.25

7

15.205 32.630

3 2.63

6

9.414 54.995 2.63

6

9.414 54.995 4.13

1

14.753 47.383

4 1.72

1

6.148 61.143 1.72

1

6.148 61.143 2.86

9

10.246 57.628

5 1.69

1

6.040 67.183 1.69

1

6.040 67.183 2.08

9

7.460 65.088

6 1.22

2

4.364 71.547 1.22

2

4.364 71.547 1.80

8

6.459 71.547

7 .995 3.555 75.102

8 .924 3.299 78.400

9 .821 2.931 81.331

10 .761 2.718 84.049

11 .583 2.083 86.132

12 .581 2.074 88.206

13 .516 1.842 90.048

14 .472 1.686 91.734

15 .385 1.376 93.110

16 .313 1.117 94.228

17 .297 1.060 95.288

18 .233 .834 96.122

19 .223 .796 96.918

20 .206 .735 97.653

21 .151 .538 98.191

22 .128 .457 98.648

23 .112 .399 99.047

55 | P a g e

24 .079 .282 99.328

25 .069 .246 99.574

26 .059 .212 99.787

27 .043 .153 99.939

28 .017 .061 100.000


With Eigen value of 1 and extraction method of Principal Component Analysis 6 components

were extracted from 28 main attributes. The total variance explained is 71.547.


Figure 14: Scree plot ( as per customer ratings ) Scree plot showing the components with respect to its Eigen values.

Table 4.3.6: Rotated Component Matrix

Table 15: Rotated Component Matrix ( as per customer ratings )


Component

56 | P a g e

1 2 3 4 5 6

Braking system .774

Acceleration .766

Top speed .761

Suspension .708

Tyre .670

Traction control .664

Engine C.C. .601 .524

Pre sense .900

Hold assist (A) .854

Cruise control .723

Navigation assist .722

Brand image .643

Electronic stabilisation .544

Head light design .867

Body lining design .826

Exterior length, high and width of the car .790

Body colour .703

Body design .662

Gear system .536

Engine fuel mileage .826

Engine fuel type .758

Leg space .705

Engine life span .543 .550

Engine series .738

Engine lower pollution level

Bluetooth .665

Seat adjustment .519

4X4 wheel drive



a. Rotation converged in 12 iterations.

The above table shows the rotated component matrix with extraction method used is Principal

Component Analysis and rotation method Varimax and Kaiser Normalization. The rotation

converges in 12 iterations.

57 | P a g e

Table 4.3.7: Factors extracted by principal component analysis

Table 16: Factors extracted by principal component analysis ( as per customer ratings )

FACTOR 1 FACTOR 2 FACTOR 3 FACTOR 4 FACTOR 5 FACTOR 6

Braking

system

Pre sense Head light

design

Engine

fuel

mileage

Engine

series

Bluetooth

(Telephone

connectivity)

Acceleration Hold assist

(A)

Body

lining

design

Engine

fuel type Seat

adjustment

Top speed Cruise

control

Exterior

length,

high and

width of

the car

Leg space

Suspension Navigation

assist

Body

colour

Engine life

span

Tyre Brand image Body

design

Traction

control

Electronic

stabilisation

Gear

system

Engine C.C.


represented by 6 factors. The 28 attributes measuring the buying behaviour were analysed using

common factor analysis and 6 factors were identified. The factors are defined as follows

Factor 1: Power and speed

Factor 2: Support technology associated with band

Factor 3: Exterior design

Factor 4: Highly economic and engine longevity

Factor 5: Engine Series

Factor 6: Internal comfort and connectivity

58 | P a g e

Figure 4.3.3 Effectiveness of factors in purchase of luxury car based on customer ratings

Figure 15: Effectiveness of factors in purchase of luxury car based on customer ratings

4.3.3 Factor analysis on the luxury car attributes emphasis as per the sales

executive ratings

Table 4.3.8: KMO and Bartlett's Test

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling

Adequacy.

.629

Bartlett's Test of

Sphericity


52

df 378

Sig. .000

Figure 16: KMO and Bartlett's Test ( as per sales executive ratings )

KMO Measure of Sampling Adequacy is .629. If the value comes, between 0.5 and 1.0 it



3.77

3.45

3.98 3.59

3.32

3.51

Effectiveness of factors in purchase of luxury car

Power and speed

Support technology associatedwith band

Exterior design

Highly economic and enginelongevity

Engine Series

Internal comfort andconnectivity

59 | P a g e

Table 4.3.9: Total Variance Explained

Table 17: Total Variance Explained ( as per sales executive attributes)


Compone

nt

Initial Eigenvalues Extraction Sums of Squared

Loadings


Loadings

Total % of

Varian

ce

Cumulati

ve %

Total % of

Varian

ce

Cumulati

ve %

Tota

l

% of

Varian

ce

Cumulati

ve %

1 12.19

1

43.540 43.540 12.19

1

43.540 43.540 6.42

4

22.943 22.943

2 3.488 12.457 55.997 3.488 12.457 55.997 5.00

9

17.891 40.834

3 2.094 7.479 63.476 2.094 7.479 63.476 4.98

1

17.788 58.622

4 1.915 6.838 70.315 1.915 6.838 70.315 2.40

6

8.594 67.216

5 1.518 5.421 75.736 1.518 5.421 75.736 2.21

0

7.893 75.109

6 1.229 4.390 80.126 1.229 4.390 80.126 1.40

5

5.017 80.126

7 .989 3.531 83.657

8 .847 3.026 86.683

9 .754 2.694 89.377

10 .647 2.311 91.688

11 .405 1.445 93.134

12 .380 1.356 94.490

13 .303 1.083 95.573

14 .275 .983 96.556

15 .199 .712 97.268

16 .153 .548 97.816

17 .136 .485 98.301

60 | P a g e

18 .132 .470 98.771

19 .088 .314 99.084

20 .077 .276 99.361

21 .055 .196 99.557

22 .039 .139 99.696

23 .029 .103 99.799

24 .023 .080 99.879

25 .013 .047 99.926

26 .011 .040 99.966

27 .007 .025 99.991

28 .002 .009 100.000


With Eigen value of 1 and extraction method of Principal Component Analysis 6

components were extracted from 28 items. The total variance explained is 80.126.


Figure 17: Scree plot ( as per sales executive ratings )

Scree plot showing the components with respect to its Eigen values.

Table 4.3.10: Rotated Component Matrix

61 | P a g e

Table 18: Rotated Component Matrix (as per sales executive ratings )


Component

1 2 3 4 5 6

Gear system .878

Electronic

stabilisation

.835

Pre sense (P) .807

Type of suspension .796

leg space .770

Hold assist (A) .712

Brand image .674

Body design

Engine C.C. .853

Body colour .832

Navigation assist .797

4X4 wheel drive .674

Engine lower

pollution level

.626 .551

Body lining design .590 .504

Engine series .542

Exterior length, high

and width of the car

Engine fuel type .944

Type of tyre .818

Braking system .530 .696

Engine acceleration .696

Traction control .612

Engine life span .540 .555

Cruise control .760

Head light design .612 .628

Seat adjustment .873

Engine top speed .528 .577

Telephone connect

(Bluetooth)

.532

Engine fuel mileage .809



a. Rotation converged in 9 iterations.

62 | P a g e

The above table shows the rotated component matrix with extraction method used is

Principal Component Analysis and rotation method Varimax and Kaiser Normalization. The

rotation converges in 9 iterations.

Table 4.3.10: Factors extracted by principal component analysis

Table 19: Factors extracted by principal component analysis ( as per sales executive ratings )

FACTOR 1 FACTOR 2 FACTOR 3 FACTOR 4 FACTOR 5 FACTOR 6

Type of

suspension

Engine C.C. Engine fuel

type

Cruise

control

Seat

adjustment

Engine fuel

mileage

Leg space Engine lower

pollution

level

Type of

tyre

Head light

design

Engine top

speed

Pre sense Engine series Braking

system

Telephone

connect

(Bluetooth)

Electronic

stabilisation

Navigation

assist

Engine

acceleration

Gear system Body colour Traction

control

Hold assist Body lining

design

Engine life

span

Brand image 4X4 wheel

drive


represented by 6 factors. The 28 attributes measuring the buying behaviour were analysed using

common factor analysis and 6 factors were identified. The factors are defined as follows

Factor 1: luxury with comfort and safety

Factor 2: Engine performance with assistance and design

Factor 3: Technological and long term commitment

Factor 4: Cruising with proper vision

Factor 5: Pure driving pleasure

Factor 6: Engine fuel mileage

63 | P a g e

Figure 4.3.5: Effectiveness of factors in purchase of luxury car based on sales executive ratings

Figure 18: Effectiveness of factors in purchase of luxury car based on sales executive ratings

4.057

3.445

3.8 3.64

3.406

3.54

Effectiveness of factors in purchase of luxury car

luxury with comfort and safety

Engine performance withassistance and design

Technological and longcommitment

Cruising with proper vision

Pure driving pleasure

Engine fuel mileage

64 | P a g e

4.4: Interview

To understand the factors affecting emphasised by the sales department of luxury car

segment, interviews were conducted with the managers of different luxury car companies. Rating

scale are as follows, 1- Not at all important, 2- Not that important, 3- Being nutral 4- Important 5-

Very important

4.4.1: MERCEDES BENZ

The interview was conducted with the manager Mr.Sreenath of Mercedes benz in Cochin

sales division. As per the information provided by him, the results are as follows.

Figure 4.4.1:Attributes emphasis while interacting to managers (Five Rate Scale)

Figure 19: Attributes Emphasis (in Mercedes Benz)

0

1

2

3

4

5Engine fuel mileage

Engine accelerationEngine top speed

Engine C.C.

Engine life span

Engine series

engine lower…

body design

head light design

body lining design

body colour

gear systemSeat adjustmentTelephone connect…

leg spacetype of suspension

braking system

traction control

type of tyre

brand image

Navigation assist

Pre sense (P)

Hold assist (A)

Cruise control

4X4 wheel drive

MERCEDES BENZ

user

Confidential

65 | P a g e

4.4.2: AUDI

The interview was conducted with the manager Mr. Rakesh of Audi in Cochin sales

division. As per the information provided by him the results are as follows.


Figure 20: Attributes Emphasis ( in Audi )

0

1

2

3

4



Engine C.C.

Engine life span

Engine series

Engine fuel type

engine lower…

body design

head light design

body lining design

body colour

gear systemSeat adjustment

Telephone…leg space

type of suspension

braking system

traction control

type of tyre

brand image

Navigation assist

Pre sense (P)

Hold assist (A)

Cruise control

4X4 wheel drive

Audi

user

Confidential

66 | P a g e

4.4.3: BMW

The interview was conducted with the sales executive Mr. Azeem of BMW in Banglore

sales division. As per the information provided by him the results are as follows..


Figure 21: Attributes Emphasis ( in BMW )

0

0.5

1

1.5

2

2.5

3

3.5



Engine C.C.

Engine life span

Engine series

Engine fuel type

engine lower pollution…

body design

head light design

body lining design

body colour


Telephone connect…leg space

type of suspension

braking system

traction control

type of tyre

brand image

Navigation assist

Pre sense (P)

Hold assist (A)

Cruise control

4X4 wheel driveElectronic stabilisation

BMW

user

Confidential

67 | P a g e

4.4.4: SKODA

The interview was conducted with the sales executive Mr. J.Reji of Skoda in Banglore sales

division. As per the information provided by him the results are as follows.


Figure 22: Attributes Emphasis (in Skoda)

0

1

2

3

4



Engine C.C.

Engine life span

Engine series

Engine fuel type

engine lower…

body design

head light design

body lining design

body colour



type of suspension

braking system

traction control

type of tyre

brand image

Navigation assist

Pre sense (P)

Hold assist (A)

Cruise control

4X4 wheel drive

SKODA

user

Confidential

68 | P a g e

4.4.5: JAGAUR

The interview was conducted with the manager Mr. Shinoy K Simon of Jagaur in

Banglore sales division. As per the information provided by him the results are as follows.


Figure 23: Attributes Emphasis ( in Jagaur)

0

1

2

3

4

5Engine fuel…

Engine…Engine top…

Engine C.C.

Engine life span

Engine series

Engine fuel type

engine lower…

body design

body colour


Telephone…leg space

braking system

traction control

type of tyre

brand image

Navigation assist

Pre sense (P)

Hold assist (A)

Cruise control

4X4 wheel drive

JAGAUR

user

Confidential

69 | P a g e

4.4.6: LAND ROVER

The interview was conducted with the manager Mr. Sumeth S Kumar of Land Rover in

Banglore sales division. As per the information provided by him the results are as follows.


Figure 24: Attributes Emphasis ( in Land Rover )

00.5

11.5

22.5

33.5

44.5



Engine C.C.

Engine life span

Engine series

Engine fuel type

engine lower pollution…

body design

head light design

body lining design

body colour



type of suspension

braking system

traction control

type of tyre

brand image

Navigation assist

Pre sense (P)

Hold assist (A)

Cruise control4X4 wheel drive

Electronic stabilisation

LAND ROVER

user

Confidential

70 | P a g e

CHAPTER 5:

DISCUSSION

71 | P a g e

CHAPTER 5: DISCUSSION

5.1: Inference

In order to practically analyse sales psychology involved increasing the sales of

automobiles, 78 attributes were identified. After conducting the pilot study, these attributes were

reduced to 28 attributes. The consumer and sales executive perception recorded were analysed

using descriptive analysis and factor analysis.

To check the sampling is internally consistent or reliable, Cronbach‟s alpha test has been

conducted. In the case of customer data set it is 0.923 and 0.947 in the case of sales executive

data set. This assures the reliability of data collected.

Cross tabulations was conducted, which indicates the following

1. Most of the buyers come from an occupation background of self-employed and private/

public sector.

2. Internet is a highly used medium for the data collection for luxury cars. 70% of the

respondents have checked internet before buying of a luxury car.

3. 46% of the respondents come under the category of day to day users.

4. Majority of the respondent changes the luxury car in 4 year time.

5. Communication skill is the most important attribute of a sales executive.

6. 66% of the respondents prefer the sales executive who gives them test drive.

7. 58% of the respondents are of the opinion that risk associated with repayment of due is

important while buying a luxury car.

8. 56% of the total respondents agree to the fact that benefit is an attractive factor for buying a

luxury car.

9. As per the chart 50 % of the total respondents wish to buy their car according to their

preferred astrological dates

5.2: Factor analysis of sales executive attributes

For understanding the factor contributing to sales executive‟s effectiveness, 10 main

attributes were selected. KMO measure of sample adequacy is 0.691. Which assure that the

sample is adequate. Total variance explained is 64.306. The resultant outputs of factor analysis

have extracted 3 factors among the 10 attributes. 3 factors are 3 style of approach which the sales

executive can perform while approaching the customer. They are as follows.

1. A personal friend who acts according to need of the customers.

2. A Trust worthy recommender.

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3. Sales Executive who gets things done at customer home itself.

5.3: Factor analysis on the luxury car attributes as per customer ratings

For identifying the factors contributing to the sales of luxury car, 28 main attributes were

selected. KMO measure of sample adequacy is 0.651. Which assure that the sample is adequate.

Total variance explained is 71.547. The resultant outputs of factor analysis have extracted 6

factors among the 28 attributes. 6 factors are different perception of customer in relation with the

luxury car. These are the perceived factor of customer which makes them buy the luxury car.

They are as follows.

1. Power and speed

2. Support technology associated with band

3. Exterior design

4. Highly economic and engine longevity

5. Engine Series

6. Internal comfort and connectivity

When extracting the mean of means for these factor. Among the above 6 factors, „exterior

design‟ is having the highest effect on customer perception. „Exterior design‟ has a mean of mean

value of 3.98. Second is „power and speed‟, with a mean of mean of 3.77. Factor analysis also

identifies that attribute like „4X4 wheel drive‟ and „Engine lower pollution level‟ is not at a

significant part of any factors extracted, this means that customers are little concern about these

attributes.

5.4: Factor analysis on the luxury car attributes as per sales executive ratings

For identifying the factors contributing to the sales of luxury car as per sales executive, 28

main attributes were selected. KMO measure of sample adequacy is 0.629. Which assure that the

sample is adequate. Total variance explained is 80.126. The resultant outputs of factor analysis

have extracted 6 factors among the 28 attributes. This are 6 different factors which sales

executive emphasis while communicating to the customer. These factors are extracted from the

data provided by the managers and sales executives of different luxury car companies. The

factors are as follows.

1. Luxury with comfort and safety

2. Engine performance with assistance and design

3. Technological and long commitment

4. Cruising with proper vision

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5. Pure driving pleasure

6. Engine fuel mileage

When extracting the mean of means for these factor among the above 6 factors, „luxury

with comfort and safety‟ is what sales executive emphasis mostly on. ‟ luxury with comfort and

safety‟ has a mean of mean value of 4.057. Second is „Technological and long term

commitment‟, with a mean of mean of 3.8. Factor analysis also identifies that attribute like „Body

design‟ and „exterior length, high and width of the car‟ is not at a significant part of any factors.

Which means that sales executive mention little about these attributes.

5.5: Gap Analysis between customer needs and sales executive deliverance

The study conducted found 6 major factors contributing to the sales of luxury cars. 6

factor from customer view point and 6 factors from sales executive view point. Sales executives

are mainly focusing on factor like „luxury with comfort and safety‟ and „Technological and long

term commitment‟. When we compare these factors derived from sales executive rating with the

factors derived from customers ratings, we can find that customers are mostly looking for

„Exterior design‟ and „power and speed‟ of the luxury car. This also shows that the perception of

customers for term “luxury” has not varies much for different cars in same market segment. What

customer see and perceive is more of „exterior attributes‟ and „speed and power‟ of the car.

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CHAPTER 6:

CONCLUSIONS AND RECOMMENDATIONS

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CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS

6.1: Conclusions

The study has found out that there are 6 major factors which are involved in

decision making. Factor involved in decision making by customer includes „Power and speed‟,

„Support technology associated with band‟, „Exterior design‟, „Highly economic and engine

longevity‟, „Engine Series‟, and „Internal comfort and connectivity‟. Among these the factors

„Exterior design‟ and „Power and speed‟ has the maximum impact on decision making. Attributes

like „lower pollution level‟ and „4X4 wheel drive‟ do not having much impact on decision

making. Study also have identify that there are 6 major factors which the sales executives focus

while selling a luxury car. The major factor focused by sales executive includes „luxury with

comfort and safety‟, „Engine performance with assistance and design‟, „Technological and long

term commitment‟, „Cruising with proper vision‟, „Pure driving pleasure‟ and „Engine fuel

mileage‟. Among these factors „luxury with comfort and safety‟ and „Technological and long

term commitment‟ is having the highest impact.

Study conducted has found that there are 3 factors defining the sales executive

attributes. These factors includes „Personal friend who acts according to need of the customers‟,

„Trust worthy recommender, and „Sales Executive who gets things done at customer home itself‟.

Among all the aspects related to finance in buying a luxury car. Risk associated to repayment of

loan is having the highest impact in decision making.

6.2.1: Recommendations

As a sale executive, try to understand which of the 3 styles should be selected in

approaching a customer.

o Personal friend who acts according to need of the customers

o Trust worthy recommender

o Sales Executive who gets things done at customer home itself

Determine which model to sell and identify attributes of the model which is contributing

to the factors like „Power and speed‟, „Support technology associated with band‟,

„Exterior design‟, „Highly economic and engine longevity‟, „Engine Series‟, and „Internal

comfort and connectivity‟.

As a marketer of luxury car, focus on creating ads which focus on factors like „Power and

speed‟, „Support technology associated with band‟, „Exterior design‟, „Highly economic

and engine longevity‟, „Engine Series‟, and „Internal comfort and connectivity‟.

Sales executive focus on Exterior design and „Power and speed‟ of the car while

communicating to the customer.

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Astrological dates are often important to customers in India. Sales force of luxury cars

need to create events of car sales related to the astrological date.

Pollution level and 4x4 wheel drive are not much of a concern for luxury car customer. So

don‟t focus on this attributes.

Peer groups have high influence in data collection of customer, so always maintain a

positive word of mouth in public.

Changing period of luxury car as per maximum response in this study is 4 year. So always

maintain continues relationship with customer and remind the customers about the new

model launch.

.2.2: Application in the field of manufacturing

Now let‟s see how we can create a comparative edge between two cars of similar model

by changing the main factors of purchase decision making found. For explanation, I am taking

two luxury car models by different manufacture. They are as follows.

1. Audi Q3

2. BMW X1

BMW India lunched its BMW X1 model in Dec 24, 2010. After its success in the market

Audi have lunched a competitive model for BMW X1 called the Audi Q3 in June 5, 2012. The

findings from the thesis have shown main 6 factors in purchase of luxury cars.

Table: 6.2.1: Comparing the models on the bases of purchase decision factors34

Table 20: Comparing the models on the bases of purchase decision factors Factors Effectiveness raking BMW X1 Audi Q3

Exterior design 1 SUV design SUV design

Power and speed 2 1) Torque of 350

Nm at 1750 – 3,000

rpm

2) Top speed of

200 km/h

3) 0-100 km/h in 8.3 seconds

4) 6 step

transmission

1) Torque of 380

Nm at 1750- 2500

rpm

2) Top speed of

230 km/h

3) 0-100 km/h in 8.2 seconds

4) 7 step

transmission

34 Check the Features wise Comparison of Audi Q3 and BMW X1. (n.d) retrieved 01/23/2013, from Audi Q3 vs BMW X1 – Compact Crossovers battle it out Web Site: http://www.carzy.co.in/blog/car-comparison/audi-q3-bmw-x1-compact-crossovers-battle-expert-review.html/

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Highly economic

and engine

longevity

3 1) Fuel mileage of

11-14 km/litre

1) Fuel mileage of

12-13 km/litre

Internal comfort

and connectivity

4 Have lesser leg

space compare to

Audi Q3

Have more leg

space compare to

BMW X1

Support

technology

associated with

band

5 1) Traction control

2) Adaptive light

1)Presence

2) Quattro

3) Adaptive light

Engine Series 6 BMW X1

sDrive20d

Audi Q3 2.0 TDI

Quattro

When compare the main difference of these two models, we can find that Audi Q3 have

brought in a better challenging model against BMW X3 by focusing mainly of the 6 factors

identified by the study. The study has found out 6 major factors which consumer mainly focuses

while making a purchase decision. While checking the major difference between Q3 and X1 we

can find that Audi mainly focus in improving this 6 factor. Keeping rest other factors remain

same as of the competitor‟s model.

Another thing which we can observe is that of the “number of series” given to the

model. In Indian cognitive process 3 is greater than 1 in the case of raking, and it‟s vice versa for

German cognitive process. When comparing Q3 with X1, the mental picture which an Indian gets

is that of comparing a bigger thing with a smaller thing.

6.2.3: Sales executive training

A sales executive should be aware of certain facts. Which are as follows- 1) Leaser the

time sales executive take per customer more will be the number of customers you will be able to

handle. 2) Too much information can create processing problems to the customer known as

information overload, so stick to few points. 3) No customer is the same each customer varies

from other. 4) Salesmanship lies not in explaining the specification of models, but influencing the

customer purchase decision the way in which sales executive wanted.

The study has found 3 styles in which executive can showcase his talents. First select one

or more skills among the 3 styles according to the customer appeal. Styles of sales executive are

classified into 3 types as per the study, they are

Style 1: Personal friend who acts according to need of the customers.

Style 2: Trust-worthy recommender.

Style 3: Sales Executive who gets things done at customer home itself.

In the first 3 minutes of interaction with the customer. Sales executive should focus in

getting information relate to customer occupation, previous cars used, related car experience,

model he is looking for, features of car which made him purchase that car and the requirements

of the customer.

The data collected should bring in information which can help in selection of a style. If

the customer has already made up his mind in buying one model, follow style 1. Style 1 can also

be used if the customer has no made up his mind on which car to select in that case all sale

executive have to do is to support his decision. If the customer is loyal to the company, follow

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style 2. Thereby customer relationship is maintained for a longer period. If the customer wants

thing to be done at his home, follow style 3.

6.2.4: Conversion and tackling techniques

Conversion is when you influence the customer purchase decision from one model to

another as per sales executive‟s interest. Sales executive can only arrive this, if you are in style 2

that is “Trust-worthy recommender”. If a customer thinks that sales executive is a trust worthy

recommender he/she will buy what sales executive recommend. To do that you should know the

„6 decision making factors of purchase‟ and specifications of the models.

6.2.4.1: If there is a strength there will be a weakness associated to it

There is a general perception that the car with most superior feature can only be sold. But

the strategy is “If there is a strength there will be a weakness associated to it”. If the car is having

engine with higher CC, it may having a weakness of poor mileage. If the car is too aerodynamic,

it may have a weakness of poor inner spacing. If the car is having a high mileage, it may have a

weakness of poor acceleration.

Table: 6.2.2 General Law of engineering

Strength Associated weakness

High engine CC Lower fuel mileage

High wheel base Lower fuel mileage

More aerodynamic Lower inner space

More the exterior height Poor aerodynamics

Lesser the ground clearness Poor of road experience

More number of feature More the price of the car

More price discount May be poor brand image

May be poor product life cycle

More the stability Lesser the ground clearness

Lengthier the car Poor traffic crushing

Longer turning radius

Higher the brand image Higher the price

The general rule is “you can‟t have an animal which gives egg and milk at the

same time”. So, a sales executive should keep on making combination of strength and weakness

in each car segment. Now ones the sales executive have mastered the strength weakness

combination, he/she just needs to relate the combination to the factors identified by the study.

Note: Never blame about a model manufactured by a company in which sales

executive is working for, if need blame the model manufactured by the competitor. Only compare

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between the models manufacture by company in which sales executive is working for, never

blame a model manufactured by a company in which sales executive is working for to make a

sale of another model.

6.2.5: Play with the mind (application)

Situation: The distributor is having an over stock of Audi Q3 and has a low stock of Audi Q5,

because of the news that the Audi company is about to redesign the Audi Q5 model. The dealer,

what‟s sales executive to sell maximum number of Audi Q3 instead of Audi Q5.

Problem statement: How to convert an Audi Q5 customer to an Audi Q3 customer.

Solution: Conversion of Audi Q5 to Audi Q3 customer as per the 6 factor identified

Table: 6.2.2 Conversion Demo

Table 21: Conversion Demo ( Audi Q5 to Audi Q3 ) Factors Audi Q5 Audi Q3 Argument to

convert

Exterior design SUV design SUV design 1) Q3 comes with

SUV design, with

Xenon plus lighting.

2) Q3 is 4.39 metres

long which gives

customer better

traffic cruising

capabilities.

Power and speed 1) 2.0 TDI engines

2) Top speed of 230

km/h

3) 0-100 km/h in 9

seconds

4) 7 step

transmission

1) 2.0 TDI engines

2) Top speed of 230

km/h

3) 0-100 km/h in 8.2

seconds

4) 7 step

transmission

1) Audi Q3 comes

with same engine as

of Audi Q5 in small

baby Audi model

which give more

acceleration to Audi

Q3 compare to Q5.

Highly economic

and engine

longevity

1) Fuel mileage of

11-14 km/litre

1) Fuel mileage of

12-13 km/litre

1)Audi Q3 have

better fuel mileage

compare to Audi Q5

because of small

exterior body

Never lie to a customer. If sales executive feel that the certain specification among the

both car models are debatable, don‟t talk about that specification. For example: Brand image of

Audi Q5 is higher than Audi Q3. In this case, don‟t talk about band image.

6.2.6: Application in the field of marketing

A marketer can‟t select all the features of a car and showcase it to the customers. He

chooses select few features based on the main factors identified. For example if Jaguar has to

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make an advertisement to promote XFX model. It mainly focuses on the exterior factor. Because

from the results derived from the study exterior factor is having the maximum influence on

decision making.

6.2.8: Improvements to be made

Figure 6.2.1Customer rating on different attributes in decision making (Five Rate Scale)

0

1

2

3

4



Engine C.C.

Engine life span

Engine series

Engine fuel type

Lower pollution level

body design

head light design

body lining design

body colour

gear systemSeat adjustmentTelephone connect…

leg space

type of suspension

braking system

traction control

type of tyre

brand image

Navigation assist

Pre sense (P)

Hold assist (A)

Cruise control4X4 wheel drive

Customer

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6.2.8.1 Mercedes Benz

Mercedes Benz doesn‟t have many models with 4X4 wheel drive. There few numbers of

people in the luxury segment who likes to have a 4X4 wheel drive. Then also, it is not a major

issue since the rotated component matrix (based on customer rating) have identify that the 4X4

wheel drive don‟t have any effect on decision making

So Mercedes Benz sales executives need not be worried about informing the customer, if

asked about the 4X4 wheel drive feature. Sales executives need not emphasis on the low

pollution aspect of the car, as per the rotated component matrix (based on customer rating) study

has found that this aspect of the car has no effect on decision making.

6.2.8.2 BMW

BMW is concentrating more on engine fuel mileage and seat adjustment. Both this

attributes are in the decision making factors. On the other side BMW needs to explain more on

telephone connectivity, type of suspension, braking system and importantly brand image.

6.2.8.3 SKODA

Skoda is wasting too much time in explaining about type of tyre and 4X4 wheel drive.

Need to spend more time explaining about the exterior design and engine fuel type. Good thing is

that they don‟t spend much time in explaining about the low pollution levels.

6.2.8.4 JAGUAR

Jaguar sales executive except in explaining the engine top speed and engine acceleration

have left all other attributes of the engine. This sounds better because both engine top speed and

engine acceleration contributes most of the factor 1(engine power and speed). This can save more

time by explain one or two main aspect of one factor.

Body design is having maximum impact on decision making, Jaguar sales executives

spend more time in explaining about the body design and that‟s brilliant.

6.2.8.5 LAND ROVER

Land Rover sales executives spend more time in explaining every attributes of the car.

However the problem in doing this way is that customer many suffer from something called

information overload. Which creates confusion in deciding “whether to buy the car or not”.

Customer will take lots of time in processing the merits and demerits of all aspects explained. So

it better to explain few as per the 6 factors identified by the study.

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Annexure

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Annexure1- Questionnaire

purchase of luxury cars (Customers) This research project guarantees respondent confidentiality. * Required

name * Gender, *

Female

Male I fall in age group. *

Below

20 20 to 30 30 to 40 40 to 50

Above 50

My Education background is, *

Master's degree

Bachelor's degree

Professional qualification (engineering/CA/CS/MBBS)

Others

My Occupation is, *

Home maker

Employed(Private/Public sector)

Self-employed

Retired

Student

Others How many cars have you owned? Until now? *(total number of cars)

none one two three

more than three

What is the price range(Rs) of the ‘higher-end car’ which you have used *one euro is approximately 72 Rs (January 2013 )

84 | P a g e

< 20 lakhs

Between 20 lakhs and 35 lakhs

Between 35 lakhs

&50 lakhs

Between 50 lakhs and 65 lakhs

> 65 lakhs

How much time do you spend on driving your car, every week? *

Less than

1 hour 1-6 hours 6-12 hours

12- 18 hours

More than 18 hours

Where do you mostly drive your car? *

National highways

State highways

District highways

Village roads

Hill Range

Do you use the following sources to gather information before purchasing a car? *

Every time

Almost all the time

Sometime Rarely Never

Internet

Peer groups

Magazines, newspaper and

journals

How often do you change your car? *

Once in 2

years Once in 4

years Once in 6

years After 6 years

Which of the following 3 would you categorise yourself under in terms of your usage of the car? *

I use my car only when absolutely necessary

I just use my car for my day-to-day activities

I use my car for every possible occasion

Do you intend to buy a luxury car(s) in the next year? *

Strongly Disagree

Disagree Neutral Agree Strongly

Agree

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Strongly Disagree

Disagree Neutral Agree Strongly

Agree

Attributes which you consider important when buying a luxury car? *

Not At All Important

Not That Important

Neutral Important Very

Important

Engine fuel mileage

Engine acceleration

Engine top speed

Engine C.C.

Engine life span

Engine series

Engine fuel type


Body design

Head light design

Body lining design

Body colour

Exterior length, high and width of

the car

Gear system

Seat adjustment

Telephone connect (Bluetooth)

Leg space

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Not That Important


Important

Type of suspension

Braking system

Traction control

Type of tyre

Brand image

Navigation assist

Pre sense

Hold assist (A)

Cruise control

4X4 wheel drive


Sales executive attributes which you consider important while purchasing a car ? *

Strongly

Agree Agree Neutral Disagree

Strongly Disagree

Sales executive's dress code is

important

Sales executive's communication

skill is important

Sales executive with high

experience have more chance of

convincing me to buy the car.

Sales executives who speaks my

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Strongly

Agree Agree Neutral Disagree

Strongly Disagree

mother tongue have more chance

of convincing me to buy the car.

Sales executives “who knows me

personally” have more chance to

convince me to buy the car.

I like the sales executive to offer a test drive of the car

which I am interested in.

I think the sales executive needs to come to my home to close the deal.

I like to discuss my experiences and

problems with cars I have owned in

the past with my sales executive.


recommend a car.

I don’t like it when a sales executive tries to convince me to purchase another model.

Finance, Tax, Benefits and Risk attributes which you consider important in buying a car ? *Last few question.

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Not That Important


Important

loan availability

Interest rates on the loan

Tax rate

Down payment (first deposit on

loan repayment)

Benefits (cash discount & free

accessory)

Risk associated with repayment of

dues

I like to buy my car on a preferred

astrological date

What is the maximum amount that you are willing to spend on a luxury car? *one euro is approximately 72 Rs (January 2013 )

Less than 15 00 000

Rs

15 00 000 to 30 00 000 Rs

30 00 000 to 40 00 000 RS

40 00 000 to 55 00 000 Rs

More than 55 00 000

RS

My Monthly Income is, *one euro is approximately 72 Rs (January 2013 )

Less than 50 000 Rs

50 000 – 75 000 Rs

75 000 – 100,000

RS

100 000 – 125 000 RS

Above 125 000 RS

Monthly Family income (Rs)

Submit

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Annexure 2- Questionnaire

Purchase of luxury cars (Mangers & Sales Executives) * Required

name * Gender, *

Female

Male I fall in age group. *

Below

20 20 to 30 30 to 40 40 to 50

Above 50

My Education background is, *

Master's degree

Bachelor's degree

Professional qualification (engineering/CA/CS/MBBS)

Others

Car sales done per month is, *

below 3

between 3 to 5

between 5 to 10

Between 10 to 15

Above 15 How many cars have you sold in your organisation career? *(total number of cars)

Below 10

Between 10 to 20

Between 20 to 50

More than 50

How important is personal networking in car sales? *

Not at all important

Not that important


important

How much time do you spend per day on sales related activity? *

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Less than 6

hour 6-9 hours 9-12 hours

More than 12 hours

Attributes which you consider important when buying a luxury car? *


Not That Important


Important

Engine fuel mileage

Engine acceleration

Engine top speed

Engine C.C.

Engine life span

Engine series

Engine fuel type


Body design

Head light design

Body lining design

Body colour

Exterior length, high and width of

the car

Gear system

Seat adjustment

Telephone connect (Bluetooth)

Leg space

91 | P a g e


Not That Important


Important

Type of suspension

Braking system

Traction control

Type of tyre

Brand image

Navigation assist

Pre sense

Hold assist (A)

Cruise control

4X4 wheel drive


Submit

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92 | P a g e

CHAPTER 6

REFERENCE

93 | P a g e

CHAPTER 6: REFERENCE

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Heinemann, London .104-112

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Marketing Research, 370-376

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21.Ferber. Robert (1973) Consumer Economics a Survey a Journal of economics Literature 11

December, 1303-1342

22.Katz Daniel (1960) The Functional Approach The Study Attitude Public Opinion Q.24

summer 16-204

23.Sheth, J.N.B.I. and Newman B.L Gross, B.L. (1991) .Why We Buy What We Buy a Theory of

Consumer Behavior. Journal of Business Research Vol 22. 159-170

24. 1. Eliciting Consumer Choice Heuristics: Sales Representives' Persuasion Strategies Tommy

E. Whittler

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Vol. 14, No. 4 (Fall, 1994), pp. 41-53

26. The Journal of Marketing Theory and Practice Issue: Volume 16, Number 1 / Winter 2008

Pages: 27 – 39 URL: Linking Options DOI: 10.2753/MTP1069-6679160102 The

Formation of Buyer's Trust of the Seller in an Initial Sales Encounter John Andy Wood A1,

James S. Boles A2, Barry J. Babin A3

A1 West Virginia University, Morgantown, WV

A2 Robinson College of Business, Georgia State University, Atlanta, GA

A3 Department of Marketing and Analysis, Louisiana Tech University, Ruston, LA

27. Psychology & Marketing Volume 9, Issue 4, pages 297–310, July/August 1992

The effects of empathy on salesperson effectiveness Lyndon E. Dawson Jr.1, Barlow Soper1,

Charles E. Pettijohn2 Article first published online: 6 SEP 2006 DOI: 10.1002/mar.4220090404

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review.html/

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