A Structural Equation Model to Understand the Consumer Purchase Decision Process in the Indian Automobile Industry : a Case of Mini and Compact Cars
MUDRA INSTITUTE OF COMMUNICATIONS
A structural equation model to understand the consumer purchase decision process in the Indian automobile industry : A case of mini and compact cars
Ankit Kalkar, 008A
23rd February, 2012
Guided by: Dr. Rajneesh Krishna
Acknowledgements
I would like to thank Dr. Rajneesh Krishna for assenting to guide me through the course of my dissertation. It is because of his unrelenting support and able guidance that this thesis has come into being.
I would also like to thank the batch of PGP17 for being a constant moral support and a true source of inspiration for me. Also, a special thank you goes to Mr. Varun Kore for helping me and countless others in achieving their dream R-square values.
I must also thank my mother Dr. Surekha Kalkar for helping me with the data collection for this study, without which this study would not have been possible.
2|Ankit Kalkar 008A
Table of Contents
Executive Summary
1. Introduction
5
7
1.1. The Indian Automobile Industry
7
1.2. The Consumer Purchase Decision Process
8
2. Literature Review
11
2.1. Need Recognition
11
2.2. Information Search
12
2.3. Evaluation and Purchase
17
3. Knowledge Gap
18
4. Research Problem
19
5. Research Objective
19
6. Key Research Questions
21
7. Research Methodology
22
7.1. Data Collection
23
7.2. Questionnaire
27
7.3. Universe
29
7.4. Sampling
30
7.5. Results of the Survey
31
8. Data Analysis
3|Ankit Kalkar 008A
33
8.1. Factor Analysis
33
8.2. Structural Equation Modelling
40
9. Results and discussions
45
10. Scope and limitations of the study
50
11. References
51
4|Ankit Kalkar 008A
Executive summary
A structural equation model to understand the consumer purchase decision process in the Indian automobile industry : A case of mini and compact cars
This study aims at understanding the
A structural equation model to understand the consumer purchase decision process in the Indian automobile industry : A case of mini and compact cars
Ankit Kalkar, 008A
23rd February, 2012
Guided by: Dr. Rajneesh Krishna
Acknowledgements
I would like to thank Dr. Rajneesh Krishna for assenting to guide me through the course of my dissertation. It is because of his unrelenting support and able guidance that this thesis has come into being.
I would also like to thank the batch of PGP17 for being a constant moral support and a true source of inspiration for me. Also, a special thank you goes to Mr. Varun Kore for helping me and countless others in achieving their dream R-square values.
I must also thank my mother Dr. Surekha Kalkar for helping me with the data collection for this study, without which this study would not have been possible.
2|Ankit Kalkar 008A
Table of Contents
Executive Summary
1. Introduction
5
7
1.1. The Indian Automobile Industry
7
1.2. The Consumer Purchase Decision Process
8
2. Literature Review
11
2.1. Need Recognition
11
2.2. Information Search
12
2.3. Evaluation and Purchase
17
3. Knowledge Gap
18
4. Research Problem
19
5. Research Objective
19
6. Key Research Questions
21
7. Research Methodology
22
7.1. Data Collection
23
7.2. Questionnaire
27
7.3. Universe
29
7.4. Sampling
30
7.5. Results of the Survey
31
8. Data Analysis
3|Ankit Kalkar 008A
33
8.1. Factor Analysis
33
8.2. Structural Equation Modelling
40
9. Results and discussions
45
10. Scope and limitations of the study
50
11. References
51
4|Ankit Kalkar 008A
Executive summary
A structural equation model to understand the consumer purchase decision process in the Indian automobile industry : A case of mini and compact cars
This study aims at understanding the
References: making process as defined by Kotler (Kotler, 2010). A review of literature suggested that although researchers have used this process to model structural equations on one of these postulated Kotler and Maslow (Maslow, 1943) in their works, in order to understand the purchase decision process of an average Indian consumer in the mini and compact automobile choice.(Euromonitor International. (2010). Consumer Lifestyles in India,) This dissertation endeavours to explore the purchase decision process of the consumer in the context of these 1.2 The consumer purchase decision process The five-stage consumer decision making process as defined by Kotler(Kotler, 2010) starts with