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Indias Rapid Expansion Of Private Vehicles Marketing Essay

India has seen an instant expansion of private vehicles. Until the 80's, industrial creation in India was on license bases and two models comprised the whole car industry, collectively selling more than 40K automobiles an year. The full total population of the united states at that time was 684 million. Alternatively, the population of United States of America was 226 million but over 7 million new traveler cars were sold in the country (National Transportation Statistics, 2008). It really is in the 90's that when liberalization arrived resulting in a rise in the sale of autos. The fast rate of progress of the current economic climate since 2001 became a cause of supplementary spur to the growth of car sales. Currently, India is one of the very best 12 traveler car market having recorded countrywide sales of around 2 million automobiles in the year 2009-2010. In India there's a penchant in the consumers to hold their cars much longer and therefore the car or truck market and the new car market are equivalent in proportions in India, whereas it is dual in size in the rest of the world (Roychowdhury, A. , 2007). The used car market size is also likely to increase with the new car market. In the mechanized two wheeler section, India stands as the second largest market on earth with trailing only behind Japan. With over 9 million sales in the year 2009-2010 the sales of two wheeler segments have exceeded that of autos with leaps and bounds since the 70's. As is the case with the car segment, the development in the two wheeler segment is also very current. The market saw rise of many competitors and launch of varied models with the beginning of the marketplace to international players or collaborators. Currently Indian market hosts a wide range which includes scooters, motorcycles, mopeds, electrically run vehicles and street motorcycle with higher volume engines. This odds of the large change in consumer choices from two wheelers to vehicles can cause significant changes on the market and mode shares.


Let us see the earlier studies which may have been undertaken on the same domains. New vehicle purchase is the foundation of the majority of them. A few of them are based on the preference of the very most expensive or recurrently used vehicle. The target of the studies is principally the particulars of make, models and vintages or on preferences among vehicle types. The multinomial logit model is generally found in studies of vehicle type inclination. Machine features including the buying cost, quantity of seats, operating cost, luggage, used and free space, weight and age of the automobile are found to have the most influence on the choice of the vehicle purchased (Mannering & Winston, 1985, Berkovec & Rust, 1985, Mannering et. al. 2002). In some other tests done about them, machine features/capabilities are correlated with socio-demographic variables to research the transforming preference of different vehicle traits with alter in socio-demographic personality. The discussion between income and price was one of the significant socio-demographic parameters in the majority of the studies. Some studies also directed the consequence of the number of members in the household on vehicle peference (Lave & Train, 1976, Kitamura et. al. 2000). Some explore the effect of transit convenience (Kitamura et. al, 2000) and confirms that four door sedans have a tendency never to be preferred in areas where general public transit is unavailable. Some explore attitude and lifestyle choices in the view of characteristics like subjective and objective freedom, travel penchant, character and demographics. They duly observed that motorists of different size categories fluctuate in many of attitude and lifestyle choices (Choo and Mokhtarian, 2004). Ni decodes motorization pathways, vehicle buying and using pattern in Shanghai. He further conducts a factor analysis of attitudes and alternatives and uses the productivity to analyze choice of the most posh vehicle owned. He sees gender, income, and the recognized effect of position to have significant results on vehicle buying and using manners (Ni, 2008). Some studies conducted in Chennai between 2007 and 2008 show income, small kids (school heading), female earners with an effect-increased probably of owing a car- on your choice. They also noticed that peer impact and charge card capacity impact car possession in a confident way. Households with grocery resources or marketplaces in close closeness were found to be less probable to purchase autos as compared to other households. The analysts further realize that the tendency to buy mechanized vehicles was the leading among families that did not own mechanized vehicles five years prior. Given that many households have a two-wheeler and more than seventy percent of the households don't have an automobile, the creators conclude that car ownership may increase faster than motorized two-wheeler ownership in the foreseeable future. Dissanayak and Morikaw, in their paper on Bangkok Metropolitan area find lifestyle of university children in homeowners to increases the likelihood of purchasing automobiles. The studies conducted in other developing countries create a benchmark for this study.

Introduction for coo

Consumers nowadays take pleasure when they refer to the merchandise with the exclusivity they provide. It could be the advancements in technology which the product offers, its association with anybody or anyone. In the same way consumers also associate the exclusivity of the merchandise with the united states it is from or the Country-of-Origin. People say, " Its Swiss watch", " Himachali apples", "a German car" etc. However on the other palm they don't reveal that their cell phone is made in China. Within the psyche of a customer, it is embossed that produced goods from Japan implies quality, Germany reveals steadiness, France for the superiority and China for affordability. As we realize that consumers make a purchase decision predicated on the brand image of the merchandise which they have in their mind. The amazing variety of luxury products in India is an proof the accruing volume of Indian homes whose economic position has improved. According to National Survey of Household Income and Expenses in 2002-2003, there have been 30, 000 homeowners in India with an annual income greater than Rs 10 million. By 2007 the number had increased to 60, 000 and by the finish of 2011 it is likely to be around 1, 50, 000 millionaires. In elderly times the consumer had usage of almost all of these luxury goods from other countries i. e. that they had to purchase that from overseas countries only. India has seen in recent years a plethora of foreign brand coming and wedding caterers to the local market. This is actually the result of the affinity developed among Indian consumers for an extravagance brand. Car sector is one domains which has observed high development in the blissful luxury market. It is said to be rising at twenty five percent per season. In Indian circumstance car is known as to be a icon of affluence. The qualities associated with an extravagance car are style, luxurious car aimed for comfort for the dog owner or the drivers of the vehicle, sacrificing passenger space, luggage transporting capacity and other design specifics for sake of style. Taking the per capita income of Indians an extravagance car is very costly and thus is recommended only by high income organizations.

Some of the reasons for the expansion of the luxury car market in India - the rise of the throw-away income or the buying electric power of individuals anticipated to healthy growth in the economy. Indian car industry and finance institutions have further aided the individuals to buy luxury vehicles by introducing various loan strategies. Youngsters now days have heavy pay plans, people in their 20's and 30's are earning huge and thus become a market for the blissful luxury industry thus we can say that the IT growth in the country has helped the blissful luxury industry in a certain way. With the new polices by the federal government coming into effect has urged many visitors to aspire luxury as these rules have decreased the prices of luxury cars by a considerable amount which has also added to the rise in luxury car market.

Effect of Coo and early on studies

While stereotyping generally identifies the beliefs people have of individuals from specific countries, similar is the situation with products owned by certain countries particularly if they participate in the luxury course. This form of product connected stereotyping is named the COO result. Studies have exposed that customers over and over bottom their purchasing choice on where a particular kind of product is made (Johanssonn, 1985; Samie, 1994). Actually, many luxury customers search specifically for particular goods from a specific country; for example, for perfumes it is France. So customers buy a product also due to its place of origin, or supposed source and not only because of price of the product, brand, guarantee offered, or store feel. In some cases, particular designer product labels comprise products such as clothing, which are actually produced in other, less appealing countries, e. g. an Italian creator label may manufacture its clothing in India or may be Bangladesh for example. Yet consumers time and again do not take into account this reality; instead, they choose the product as a consequence of differential level (Johansson, 1985; Samie, 1994). They start to see the prominent designer label which is generally exhibited superficially as a emblem while they ignore the "Made- in" label stitched in to the piece of clothing as a hook loop. As stated earlier this behavior is majorly seen while purchasing luxury items. As the lot of overseas luxury car brands are now entering the Indian market it becomes imperative for us to be aware of the effect of the made-in label while making a purchase decision. Thus I strongly feel that it is very important to study the patterns of the consumers while buying a luxury car and also to explore it in the right path to study the effect of country of origins becomes essential.

Most of the study till now in the site of the result of country-of-origin is performed by the Chinese language. A number of clinical tests have unveiled that country of origins make a difference consumers in lots of ways, together with social status, store or product choice, professed risk, and specifically, product evaluation such as quality belief, product feelings or purchase purpose (Liefeld, 1993; Papadopoulos, 1993; Brodowski, 1998; Kaynakaa, 2000; Li, 2000; Chao, 2002; Huddleston, 2001; and Chui, 2007). The way the consumers perceive the merchandise sourced from different countries and their impact positive or negative in it (Chinenn, 2000). Many studies have directed the impact of country of source on both product diagnosis and decision making steps where customers envisage the possibility a product produced in a certain country will involve some features which are the special attributes related with that place (Zain and Yasin, 1997; Verlegh and Steenkamp, 1999; and Solomon, 2004). Many reports have also shown a organized bias in the minds of consumers and only the merchandise from developed countries such as US, Japan or France. Advanced of monetary and technological breakthroughs in these countries is one of the reasons of this positive stereotype held by the clients (Chinen, 2000; Ahmed and d'Astous, 2001; Huddleston, 2001; and Hsieh, 2004). Products from highly industrialized countries are believed to be better in quality and identified to perform better. Some experts also propose that the level of relevance customers place on country of source depends on the merchandise type (Ahmed and d'Astous, 2001). Most studies imply the products which display high intricacy are somehow also regarded as luxury products by the consumers for e. g. autos, computers, television, home entertainment system etc and users most likely be effected by the country of origins. Analysing the studies we get to know two major limits which have been highlighted by some scholars. the first one being the task being wholly based on 'made-in' label, or known as country of produce (COM), to explore customer behavior towards products from different countries. Global sourcing includes multiple locations or countries for sourcing, though a growing amount of studies are looking into country of origin as a multifaceted construct. On the other hand major part of country of origin studies have been done in developed countries mainly the United States of America, Canada and European countries (Wang and Chen, 2004). Studies regarding producing countries or non-western countries are still limited, especially Asian, although there is increasing range of studies which are now occurring at these locations as well. Because of this our understanding of country of source effects outside traditional western countries is scarce (Li, 2000). Analysing the results of the study we come to know about the importance which people associate with the 'Country of origins' in case of a luxury car buy. . The accruing cross-border trade and fast globalization are motivation for this study so as to explore the role of COO and its influence on several purchasing actions, centering the cross-national consumer behavior. The study demonstrated the consumer understanding of the country-of-origin while buying an extravagance car, what important things come in the customer's mind while purchasing a luxury car, the way the product is assessed predicated on its county-of-origin. These form basis of a few of the insights which have been resulted from the qualitative research.

Reasons for undertaking this study

Country of origins consequence is concerned with how customers understand goods or brands sourced from a specific country (Chinenn, 2000). Motivated by the intellectual conclusions of analysts; a research paper was needed to ask some valid discussions so as to have a much better understanding of the effect of country of origin on the client purchase decision of a luxury car. It really is unclear if customers still give relevance to the united states in which a car is produced (Usunierr, 2006). It isn't properly explored how consumers determine brands based on its country of origin, how clients show penchant towards a brandname predicated on its country of origin and make a buying decision predicated on that. Also few Indian researchers have been executing an extensive research in this domains. The country of origin will have a more substantial result when luxury items are involved alternatively than essential products, in reality in luxury items the country of source has seen to obtain stronger impact than even price (Wall membrane, 1991). Relatively fewer studies on country of source were available.


Research context and Design:

India has seen a 25% annual growth when it comes to the luxury products industry. The number of HNI's increased by 21% since the last year. It is also forecasted that by 2025 India would end up being the fifth greatest consumer market with an expected development of 5% to 41%(Atwal;Khan 2008). There sometimes appears an improvement in the socio-economic and political conditions of the united states due with an accelerating rate of economic expansion and the key reasons are-better syndication of wealth and buying electric power of consumers as it pertains to luxury autos/products. On the other hand, the relatively less variety of the existing middle income populace feels that today's progress of luxury car industry is dominated by popular overseas brands and for that reason, luxury is largely categorized to incorporate masstige brands. It is very hard to generalize foreign perceptions of luxury in the Indian context ignoring the effects of culture. Taking an example from the outfits market, Indian customers show inclination for cultural wear as well as a penchant towards european luxury outfits. Likewise in case of cars Indians show certain characteristics while making the purchase decision which is aimed to be explored by this analysis. The main reasons being the shortage of theorized comprehensions about perceptions of luxury car market in India against the backdrop of normal customer mentality and ethnic perspectives determined me for a versatile and open approach to the research objective. As a result, this study is dependant on interpretive viewpoint, in that present theories point the study and the occurrence appealing in the info to offer the foundation for theory screening and improvement.

Particularly, this study includes personal interview techniques in person and telephonic both, to build up thorough knowledge and understand consumer perceptions of luxury automobiles. The data was collected from three major cities in India: Delhi, Mumbai and Chandigarh. The reason behind choosing these specific physical locations is they are well apart from one another, have different ethnicities and even religions and thus reflects India's variety. Delhi and Mumbai being the major metropolitan areas to quite easily purchase luxury autos. Chandigarh was chosen due to fact that it offers one of the best per capita incomes in India and thus, is a home of several millionaires too. These three locations would offer contrasting variations of luxury cars ranging from overseas luxury car brands to Indian produced luxury cars. Any variations or missing proportions during the evaluation would be reduced because of the choice of such different towns. Two criteria that have been used during data collection were that the respondents must have an gross annual income between US $5, 000 to US $ 20, 000. The other one was that they must be at managerial levels in the business or degree holders. As the coast of living and prices of goods in India are relatively low than developed countries therefore the average income considered may be low if likened. Qualitative techniques were used to analyze the info. The three metropolitan areas provided a broad coverage of the 'city' based mostly population in India. City structured populations are expected to come in contact with international brands and patterns of luxury spending for the purpose of this specific research. British was the medium used for interviewing in order to decrease the misrepresentation of meanings during translation. Due to a large opportunity of sub cultures in the three metropolitan areas they were not considered which learning the behavior design of consumers while investing in a luxury car. Some definitive constructs were used and probed upon while interviewing:

Individual and subconscious factors- The respondents were mainly probed on

Conspicuousness- if the merchandise is obvious or notable, affordable or is expensive, if the item is designed for 'rich' or for 'well-off' people.

Exclusivity- if the merchandise is valuable or precious, if the merchandise is rather exclusive or highly exclusive, if it is rare or uncommon similarly if it is unique or different.

Superiority - if the product is known as crafted or made, if its luxurious or up market, if its superior or better, if its best quality or better quality or good quality.

Hedonism -if it is glamorous or attractive if it's stunning or memorable and if it's lovely or tasteful.

Extended self applied- if the merchandise is very powerful or fairly powerful, if it is rewarding or pleasing, if it's reputable or successful, if it's leading or important.

National cultural factors- The respondents were mainly probed on

Power distance- Capacity or amount of acceptable societal attributes like status, ability, wealth. The individualism or collectivism which also symbolizes the amount of distance in sociable relationships.

Masculinity or feminist

The level of uneasiness with the uncertain future or the doubt of avoidance.

Short term and long term course that is the ordering of relationships by offerings, favoritism and reverence for tradition.

The Global customer culture- The respondents were mainly probed on Conformity to spending trend, the quality belief in mind of the consumer and social prestige fastened with the merchandise i. e. if it complements their lifestyle, if it is a symbol with their status and trendy image. There's also these six guidelines, as mentioned before, that are under inspection specifically - product examination, approach towards the product, willingness to pay for the merchandise, image of the COO, ethnocentrism and consumer animosity. A questionnaire in the form of a survey is ready keeping all these constructs at heart and the respondents answers are measured on the top of your brain recall, emotions from the choice and carefully decoding and linking the answers.

Product Diagnosis:

The evaluation of the foreign product shows the entire cognitive wisdom of the merchandise by the consumer the questionnaire includes questions pertaining to six important top features of a luxury product that your consumers might connect to the united states of origin and so were generally probed on -

Fine craftsmanship and carefully produced

Relative quality (inter-nation)

Better use of color and design

High degree of technological advancements.

Reliable and long lasting

Good value for money

Approach towards the Product:

The answers were carefully assessed to analyze the general frame of mind of the respondents towards the merchandise and the conversations were changed into bipolar adjectives like pleasurable /unpleasant, favorable/unfavorable, good/bad etc to obtain an improved understanding.

Willingness to pay:

Questions relating to the capacity and willingness of the respondents, to cover a luxury product from a specific country of source in correspondence to the same product category from different country of source, were asked. The respondents were assessed on the next points-

Preference for just about any specific country of origin

Any guilt feelings associated with obtain a particular country.

Any excluded COO (avoid purchase)

Understanding the capacity to pay extra prime for specific nation's product.

Image of the Country-of-Origin:

One of the most important domains of the study was to investigate the brand image of the country to which the product belongs. To decode the opinion and trust of consumers' for the reason that particular country's industrial advancements and technological developments, finally the idea of preferred interaction displays customer's' readiness to build close economical ties with the target country. The major factors, on which respondents were probed, were:

If the respondents think the country is abundant or poor

The level of education as recognized by them

Technological improvements/ not technical advanced

Trustworthy or non trustworthy

Diligent or not diligent

Likeable or not likeable

Should or should not have close ties with which overseas countries

Ideal country or not ideal nation

Would they welcome assets from a particular international country?

Customer Ethnocentrism:

It is the response that the purchase of foreign goods is unpatriotic, inapt or morally incorrect because of its injurious results on the home economy and triggers domestic job losses. The respondents were mainly probed on the following:

Indian products first, previous and foremost

Buying foreign made cars is un-Indian

It's wrong to buy overseas cars since it puts Indian out of jobs

A true Indian should buy Indian-made cars

It might not work in the long run but we have to buy Indian cars

Buy Indian autos, keep India working.

Regulations on transfer of international luxury cars

Indians should buy Indian made automobiles instead of imports.

Foreign car companies should be taxed closely to reduce their access in India.



It is known as the customer's aversion towards a specific foreign region that is related to any previous experience i. e. armed service, political or otherwise. The respondents were probed on basic animosity, financial animosity, war animosity. Warfare animosity gauges customer's condescension towards a specific country credited to previous or current military services tiffs between your nations. In some studies of Chinese language customer's animosity towards the Japanese, they particularly devised the war animosity probing using the Nanjing massacre of 1930's wherein the Japanese troops were in charge of the termination of three lakh Chinese civilians. The writers proven that the Chinese language customers keep on having tremendous anger towards japan for this work of violence and several decline to acquire Japanese products, in spite of their overall positive analysis of these products. Likewise the respondents were probed on the next:

Reasons for the united states they dislike

Anger feeling against any country

'Likeness' for a certain country

Countries that are recognized to be good trading partners

Countries which want to get economic vitality over India

Countries that are taking features of India

Countries which have too much affect on India

Countries doing unfair business with India

India's relationship with China, Germany, Japan, Europe and its effect on the purchase decisions.

In order to invoke participant's emotions and perceptions about overseas car brands and global developments in luxury car ingestion two flipcharts exhibiting stylish luxury car brands were shown (e. g. Audi, BMW, Mercedes, Honda CRV). Thorough interviews were done which went on for 20-30 minutes it was digitally recorded with prior permission from the participant and records were taken to assist shoot details and particular reactions in body language as with the self-confidence portrayed through seating stance and eye contact. The main one on one interviews allowed me to probe and review proof behavioral and subconscious factors that change perceptions of luxury vehicles and lead to purchase. For the respondents who were unable to meet using one on one basis, the option of a telephone interview was retained open. The overall flexibility was rendered obligatory to meet budget restrictions and enough time required to carry out private interviews with respondents situated in three different cities. While the aptness of the two interview methods rests on the type and sensitivity of the issue under study, it can be seen that the coverage of relatively clear-cut questions as contrasting to sophisticated questions would not affect the utilization of two dissimilar interview solutions to produce reliable answers. In addition, the pull on of different interview methods can accomplish counter the down sides intrinsic in a particular study technique (Mallhotra 2007).

Data analysis

The actual interviews were first acknowledged, followed by removal of irrelevant information and categorization predicated on research questions. Respondent's reactions, together with detected reactions from one-on-one connections and tone of voice (e. g. , higher prominence) in telephonic interviews were carefully detected. This helped me to differentiate and split the importance of luxury meanings, in case of a car, as assumed by the individuals. The investigation mentioned rate of appearance and repetition of keywords like 'prestige', 'social status' and 'image' which were utilized by the respondents in this content for his or her answers. Patters and evolving themes from the data were explored for new insights which were undiscovered by the industry. These analyses were the basis for identifying effect of foreign luxury car industry on the Indian consumer.

General Conclusions:

The analysis advises, that Indian customers in the three metropolitan areas are influenced by social demo and position associated to luxury property. One respondent said "With regards to the upper category, many people in India define themselves by luxury. The middle class, even the low class wishes luxury. A sensible way to put it would be what I am what I've acquired. " Another respondent commented, "We separate ourselves from others when we purchase luxury and it is a means to illustrate you are affluent and growing. " It also highlights that luxury use conveys certain distinctiveness through equivalent symbolic representations of luxury with utilization. One said "Luxury is approximately accomplishments, achievements, position mark or image. Luxury gives me discomfort of success and success in life". This distinctiveness is associated with individual worth of affluence, position and socio-economic accomplishment produced from luxury ingestion. In this regard, consumer perceptions of luxury are susceptible to reference groupings. One respondent from Chandigarh said "People especially in Delhi define themselves by what car they buy or just how many automobiles they buy; there will be more cars than the total number of individuals in the household". There may be heavy mental health control of guide organizations like Bollywood celebs, global superstars, ethnical customs and traditions. According to one respondent, "I think it is natural fixation for Indians to check out the trends place by Bollywood actors, every Shahrukh Khan enthusiast needs to buy an automobile which Shahrukh has, and this is same for many other followers. " Another respondent said "Luxury is being observed in latest fashion and lifestyle specially the auto that they drive, like Bollywood superstars. " With the development of luxury periodicals in the united states, the upper middle income has been supplied with enough information to induce an action of shopping for a luxury vehicle. They know very well what exactly their 'idol' is using or driving. One of the respondents from Chandigarh commented "Luxury would be having all my clothes designed by Versace, Italian shoes like those that were worn by Aishwarya Rai in the Cannes Film festivity this past year and LMVH hand bags like Katrina has". Both national and western resources influence thoughts and opinions of luxury constantly by reinforcing assumed public acknowledgment and image of luxury car ownership. It had been also discovered that foreign luxury cars may boost interpersonal status by material show of affluence; Indian consumers retain traditional styles and blend them with Traditional western styles. This exclusive formula of personal style is influenced by Indian culture with perceived uniqueness and the interpersonal category of international luxury goods like autos. Thus, the extended-self of luxury usage through style, course and brand image are also top features of soothing comfort and the feel good factor which the buyer experiences in case there is making a decision while purchasing a luxury car. The purchase of an extravagance car fulfils the desired distinctiveness and non-functional domains of sentiments in relation to their consumption pertaining to pleasure.

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