Influence of Price on Consumer Behavior in Motor Cycle Industry (With Special Reference to Hero Honda, Bajaj and TVS Companies, Andhrapradesh, India)

Abstract

Price is arguably the most vital and important influence on the positioning of the product and its growth and hence has a direct impact on the volume of the sale of the product and share in the market. If put to the right and thoughtful use, effective pricing can earn a business organization a major and sustained share in a given market. A marketing manager can also maintain resale price of his product, maximize profit and achieve the targeted return on investment. As we know, price of any product can directly influence the demand factor and other factors of production of a product directly. Price fixation of any product is not simple and it depends upon several factors like product cost, availability of substitutes, demand, market share, and geographic factors and so on. Keeping all the factors which have direct and indirect bearing on consumer behavior, we have studied the responses of 1300 bike owners in the 9 districts of coastal Andhra Pradesh. Keeping the fixation of price of a product in view, the manufacturer has to think over the price of the product at four levels .i.e. reasonable price, high price, low price and resale value of the product and hence we have taken into consideration of the above said parameters to know their influence on the behavior of two wheeler owners and studied their attitude. 

Keywords: Consumer Behavior, Value of the Product, Demographic Profile