Automobile Choice and Household Factors

This assignment delves into the impact of household characteristics on an individual's preference for automobiles. It examines various factors influencing consumer decision-making within the automotive market. The focus is on understanding how specific household attributes shape purchasing choices and contribute to the overall dynamics of the automobile industry.

Running head: INTERNATIONAL MARKETING
International Marketing
Name of the student:
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Table of Contents
Introduction......................................................................................................................................2
Target market alternatives...............................................................................................................2
Defining the population...................................................................................................................3
Sampling frame................................................................................................................................4
Sampling approach..........................................................................................................................4
Effectiveness of the selected approach............................................................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................8
Appendix........................................................................................................................................10

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Introduction
Tata Motors Limited which was known as TELCO is an Indian multinational company
that excels in manufacturing and is one of the members of TATA Group. They manufacture
products such as sports cars, passenger cars, vans, trucks, buses, coaches, military vehicles and
construction equipment. This company was founded in the year 1945 and their market is spread
worldwide. They also provide services such as automotive design, engineering and outsourcing
services apart from the goods mentioned above (Business 2016). Their manufacturing and
assembly plants is not only present in India but also in Argentina, Thailand, Great Britain and
South Africa. Even the research centers are located in Spain, Great Britain and South Korea
along with India. Their main subsidiaries have purchased the English supreme car maker Jaguar
Land Rover and the South Korean manufacturer of commercial vehicle TATA Daewoo. They
also have different joint enterprises such as bus manufacturing with Marco polo S.A.,
construction equipment with Hitachi and automotive components with Fiat Chrysler. They had
manufactured their first commercial vehicle in 1954 by collaborating with Daimler Benz AG but
it was finished in 1969. TATA penetrated the passenger vehicle market in 1991 by introducing
TATA Sierra. They became the first Indian company to launch a competitive indigenous
automobile.
Target market alternatives
The Zest is a compact and comfortable car that has been manufactured keeping in mind
the present and the future market in mind (Chatterjee 2015). It is a new model which possess a
fresh look which can be attributed for the family and also has some interest applications suitable
for the young generation. The LED daytime running lights is absolutely perfect for the target
audience. The voice- controls of the car is really unique and created after testing the dialects of

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70 individuals. This will attempt to target the audience of different areas and regions. The
attempt of the company to make the journey of passengers’ safe along with comfort will be
appealing to all kind of customers who will have income range to afford the car.
Recommendation- four speakers and four tweeters in the car for a surround sound experience is
best recommended for today’s youth who lives for the music. This car will easily make way into
their life by providing the opportunities that they always look for (Chia 2014).
Defining the population
For the research study of Zest Sedan, if the population needs to be defined then that will
include the people of those areas where it is launched. The price range of the car starts from 5.21
lakhs at 17.57 km/l. Therefore, the population whose income ranges in this group will be able to
afford this new member of the TATA family. As the company is situated at more than one
location therefore the natives of all those places will be counted in the population for the research
study. Then the large population group will be classified according to the age, gender, income
range and needs of the customers. The customers will also be sorted according to their choice of
specifications of the car (Chu and Guo 2015).
Recommendation- As the TATA company is based in India therefore the prime attraction will be
the Indian population. The sorting will be done as in among the Indian population who are the
potential customers who can purchase the car. There will be different choices on the part of the
customers. A market research on the population of the area will be able to measure the buying
decision, purchasing behavior, choices of the product and preferences of the customer. This
classification will be helpful for the researchers to draw a picture of the sale of the product.

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Sampling frame
Sampling frame is referred to as the source material of a given area from which the
required amount of sample population is taken into consideration. In the given scenario of Zest
Sedan, the alternatives of sampling frame can be the population classification can be according
to their age, another according to the gender, the other according to the buying pattern and the
other according to preference of the product. The sampling frame can also be based on the
customers’ previous purchasing pattern which will hint at their recent buying behavior (Dawar
and Arora 2016). This market survey will help the TATA company to get an idea about the sale
and profit of their new product. The same process will be followed in all the region wherever
Zest will be launched. The sample selected for the research will further be surveyed on the basis
of primary and secondary data. Following this procedure will help the researcher to understand
the market in a better way and also the lifetime of their product.
Recommendation- It can be recommended that the sampling frame should be chosen as per the
income range of the population. Affordability is the most important factor when it comes to
buying a product. This is because choice, preference, age, gender will not matter when the
individual cannot pay the necessary money for the product. So, the company will have to target
the population by keeping in mind their annual income range (Gupta 2017). Although the EMI
system is applicable for purchasing the product but it should be taken into consideration that the
individual must be sufficient enough to pay the EMI at the given time. Thus, there will be a
sorted sampling frame for Zest Sedan which will only be targeted towards the chosen population.
Sampling approach
Sampling approach or methods are categorized as either probability or non- probability.
In probability sampling, every member in the sampling frame has indefinite chance of being

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selected. Random sampling, systematic sampling, and stratified sampling fall under the approach
of probability sampling. Non- probability sampling is suitable for statistical quantitative research
because there arise some questions in the assertions. Accidental, snowball, purposive, deviant
and others fall under the category of non- probability sampling. According to the researchers,
probability approach of sampling is appropriate for large scale studies and surveys which include
representativeness but non- probability approaches are more appropriate for detailed qualitative
research (Hensher, Ho and Beck 2017). For the survey of Zest both the approaches of sampling
are some way or the other required to derive a finding. Both probability and non- probability
sampling will be applicable to seek findings about the sampling frame for TATA company’s new
product.
Recommendation- It is recommended to use probability approach of sampling to conduct a
research on Zest. This is because this is a research based on a large- scale study and requires
representativeness. The study of the population for the sale of Zest needs to be minutely done.
There is not so much importance of theoretical saturation or generalization of analytical data but
statistical generalization is required (Karosiya and Shukla 2017). This given case study is not
appropriate for non- probability sampling because it gives rise to certain doubts, queries and
questions. The TATA company will only find out in details about the purchasing power and the
buying behavior of the target customers in their specific market where they want to launch the
product. Probability sampling is best suited for this survey of TATA motors’ Zest as it will take
into consideration the random sampling frame and draw the data accordingly.
Effectiveness of the selected approach
Sampling is referred to as the data that is beneficial in drawing conclusion by analyzing
the data from selected items of the total population. For instance, in the given scenario, a

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sampling frame was selected from the whole population (Ng et al. 2016). Then the selected
sampling was done according to specific criteria such as age, gender, preference, choice,
selection, buying decision and purchasing behavior. According to these criteria, the sample were
surveyed by the process of random sampling. The sample of the population were surveyed at a
random basis to find out the require outcome. It helped the researcher to gauge the sale or the
challenge that the company might experience after the new product will be launched in the
market.
In probability sampling each item in the population carries a balanced chance of getting
selected. It is assured that all the item has at least a single chance of getting selected (Planet and
Radisson Blu Plaza 2017). Probability sampling is more effective because it uses a minimum
reliance over the judgement of human beings and thus there is no scope of biasness. There is a
list of advantages behind the reason of selecting probability sampling for this research. It is a
cost- effective process as the study of selection of the items is done that completes half of the
work. It not only saves money but also time. There is no limitation of selecting samples in this
process. When the study of the sample is conducted, the researcher has a random trend that
makes the process of probability sampling more effective and accurate. It does not involve any
complex and long duration process therefore sampling can be done easily with efficiency. It is
such an easy process that any person can do this if he is given a brief idea on the background.
Probability sampling used random numbers while surveying for Zest which assures that the
selected sample can vary just like the population (Nielsen and Wilhite 2015).
Conclusion
From this assignment on Zest Sedan of TATA Motors Company it can be concluded that
not all the sample that is selected for simple random sampling will provide necessary to permit

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the researcher to make proper estimates and derive correct and appropriate inference. This is
because the sample size can vary just like the total population. The primary step involved in
working with the survey data of Zest is to understand the sampling design. There are certain
ideas and concepts which needs general apprehension for defining the sample in order to deliver
an appropriate context for analyzing estimates and deriving interferences. The sampling unit of
the study of Zest Sedan is the most important to be included in the sample of the probability
random sampling. This unit has referred to the person who were selected as the target customer
based on the specific criteria given throughout the assignment. The sampling units need to be put
into proper frame and context in order to get the desired outcome.

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Reference
Business, I., 2016. Harman, Tech Mahindra/Ather Energy/Autonebula. Interaction, 5(1), pp.4-9.
Chatterjee, A., 2015. A study of consumer behaviour towards premium passenger car segment in
Uttar Pradesh in post liberalization era a case study of Kaval Towns.
Chia, R., 2014. Reflections on the distinctiveness of European management
scholarship. European Management Journal, 32(5), pp.683-688.
Chu, T.H. and Guo, Y.S., 2015. The Relationships among Service Quality, Relationship Quality
and Customer Satisfaction in Automobile Maintenance Services. 中中中中中中中中, (61), pp.107-122.
Dawar, D. and Arora, S., 2016. Event Study on Stock Prices of Tata Motors-A Study on Launch
of Zest. Wealth: International Journal of Money, Banking & Finance, 5(1).
Gupta, P., 2017. ANALYSIS ON TWITTER DATA OF AUTOMOBILE DOMAIN USING
ONTOLOGY. International Education and Research Journal, 3(5).
Hensher, D.A., Ho, C. and Beck, M.J., 2017. A simplified and practical alternative way to
recognise the role of household characteristics in determining an individual’s preferences: the
case of automobile choice. Transportation, 44(1), pp.225-240.
Karosiya, A. and Shukla, V., 2017. A Survey on Automobile Registration Number Retrieval
System Using Novel Partitioning Method.
Ng, P.K., Yeow, J.A., Jee, K.S., Thong, L.W. and Lee, C.H., 2016. Japanese Automobile
Industry in Malaysia: A Survey on Consumer Decision-Making.

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Nielsen, K.B. and Wilhite, H., 2015. The rise and fall of the ‘people's car’: middle-class
aspirations, status and mobile symbolism in ‘New India’. Contemporary South Asia, 23(4),
pp.371-387.
Nielsen, K.B. and Wilhite, H., 2016. 10 The rise and fall of the ‘people’s car’. Cars,
Automobility and Development in Asia: Wheels of Change, p.171.
Planet, G. and Radisson Blu Plaza, D., 2017. Appendix F: List of Indian Companies in the UN
Global Compact (Compact, 2016). Corporate Social Responsibility in India, p.191.
Saklatvala, B.S. and Khosla, K., 2015. Jamset Ji Tata. Publications Division Ministry of
Information & Broadcasting.
Vakhariya, S., 2017. Tata at a Crossroads. American Journal of Educational Research, 5(3),
pp.284-295.
Vingilis, E., Seeley, J., Wiesenthal, D.L., Wickens, C.M., Fischer, P. and Mann, R.E., 2013.
Street racing video games and risk-taking driving: An Internet survey of automobile
enthusiasts. Accident Analysis & Prevention, 50, pp.1-7.

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Appendix
According to Ng, P.K., Yeow, J.A., Jee, K.S., Thong, L.W. and Lee, C.H., 2016. Japanese
Automobile Industry in Malaysia: A Survey on Consumer Decision-Making, the automobile
industry plays a significant role in the life of the Malaysians. This dependence of the individuals
has encouraged the automobile companies to keep up with the competitive advantage of the
satisfying customers. There are factors such as branding of the product and its price which
dominate the purchasing decision of the customers. To take a look into this matter, the researcher
had collected a sampling unit by survey responses and evaluated them by using correlation,
reliability and multiple regression analysis. Price and recreational consciousness were not found
to be as significant as the decision making and the buying pattern of the automobiles by the
Malaysian customers.
According to Dawar, D. and Arora, S., 2016. Event Study on Stock Prices of Tata
Motors-A Study on Launch of Zest. Wealth: International Journal of Money, Banking &
Finance, 5(1), the event studied the magnitude, direction and pace of price reactions are based on
the structure of efficient capital market. It is primarily based on the theoretical framework on
which the capital of the industry can rely. The methodology for the study is Market Model
Method, used to calculate the cumulative abnormal returns or CAR. This study aims to determine
the CAR of TATA Motors and the actual stock market returns and analysis that was affected
after the launch of Zest. It is a comparative study targeted to find out the proper estimates on the
sale of the product.