An Empirical Analysis of the Psychological Factors Influencing the Purchase Behaviour in the Automotive Market

Abstract

This article throws light on various discriminant functions that will best discriminate between different segments of consumers regarding the psychological factors influencing the purchase behavior in India's automotive market. The paper further highlights the importance of various promotional tools in the purchase of cars in India. The car market in India is one of the largest segments of the domestic auto industry. From a luxury product for the urban middle class in the eighties and earlier, a car has now become the favorite mode of personal transport and the most coveted personal household durable possession among nearly all consumer classes. The commercial vehicle segment's leading vehicle is the stylish, fuel-efficient and sturdy 4-stroke car, the purchase of which is influenced by various psychological factors like motivation, perception, learning, beliefs, and attitudes. Descriptive research using a stratified random sampling method was undertaken, and the study was conducted using both primary and secondary data. It was concluded that the “Beliefs and Attitudes” factor was the most effective psychological factor in discriminating among the urban consumers and the ‘Motivation’ factor was the most effective psychological factor in discriminating among the rural consumers in the choice of a car brand.