Perception of Consumers Towards Car Purchase Decision

Abstract

Today, the automobile industry becomes the most attractive industry. Since the disposal income in rural and urban sector is increasing continuously and easy finance being provided by all the financial institutes, the sales of passenger cars have been increasing. It motivates a researcher to identify and study the factors which affect the consumer’s behaviour towards purchasing cars. This research attempts to answer some of the questions regarding perception of consumers towards car purchasing decisions in India by conducting a market survey. This is a descriptive study based on primary data collected from 300 car users of Kanpur City. The data was collected with the help of a structured questionnaire containing questions based on 5-point Likert scale. The reliability test was applied for identifying the consistency of the questionnaire. The KMO – Bartlett’s test was applied for checking the data adequacy. The Exploratory factor analysis was applied for identifying the factors and four factors named cost, resale value, quality and dealer’s services were identified. Non-parametric Spearman’s rank correlation test was applied for testing the hypothesis.