Market Segmentation and Consumer Decision-Making: A Study with Reference to KTM Bikes

Abstract

This study delves into understanding the intersection of market segmentation and consumer decision making in the context of KTM motorcycles in India. It aims to understand the various demographic; psychographic and behavioural factors influence the consumer buyer decisions and evaluates the KTM’s current market positioning. Primary data was collected from 100 respondents through structured questionnaire accompanied by secondary sources. The major findings of the study reveal that performance, price, and mileage are the key factors that drive the decision choices by consumers, also there is a significant influence from test rides, peer opinions, and digital content. KTM still has trouble converting consumers because of issues with comfort, cost, and brand alienation, despite good market presence and brand recognition. This research focuses on getting to understand these challenges better and suggest strategic rebranding, enhanced comfort and affordability, experiential marketing, and digital engagement. For marketers and researchers studying consumer behaviour, the conclusions and insights have both theoretical and practical ramifications

Introduction

India’s two-wheeler market is one of the most competitive and rapidly growing segments in the country's automotive industry, with over 15 million units sold annually. Among key players, KTM has established a unique position by targeting young, urban male consumers with a taste for performance, speed, and premium engineering. Its partnership with Bajaj Auto has allowed KTM to expand in India and other emerging markets.

Despite strong brand appeal, KTM faces challenges in conversion rates—many admire the brand, but few purchase, often opting instead for more affordable or comfortable alternatives like Yamaha or Royal Enfield. This suggests a misalignment between KTM’s segmentation strategy and actual consumer preferences.

The study explores consumer behaviour, segmentation, and decision-making models (like the Engel Kollat Blackwell model) to understand these dynamics. It identifies that consumer choices are influenced by factors such as performance, price, mileage, comfort, and digital peer influence. Indian consumers, though aspirational, remain highly price-sensitive.

Through a survey of 100 urban respondents, most aged 18–24, the research reveals:

• Only 8% owned a KTM, despite 89% owning two-wheelers.

• Performance, price, and mileage were the top purchase factors.

• Digital platforms like YouTube and peer reviews heavily influence decisions.

The literature review supports that brand image, after-sales service, environmental consciousness, and affordability significantly shape consumer behaviour. The rise of electric vehicles (EVs) and sustainability concerns is another growing factor.

Key Research Objectives

1. Identify KTM’s targeted market segments in India.

2. Understand consumer decision-making factors when purchasing KTM bikes.

3. Evaluate alignment between KTM’s segmentation strategies and consumer preferences.

Research Gap & Contribution

While earlier studies focused on general two-wheeler or EV preferences, this study fills the gap by specifically analyzing high-performance motorcycle brands like KTM in India. It provides actionable insights for KTM to refine its marketing, better understand its core audience, and potentially expand into untapped segments like female or commuter-focused buyers.

Conclusion

One of the most competitive and dynamic automobile markets in India today, is the two-wheeler sector. With over 15 million units sold annually, it caters to a vast and diverse consumer base ranging from frugal commuters to performance-driven fanatics. India’s automobile sector is split into four segments, i.e., two-wheelers, three-wheelers, passenger vehicles, and commercial vehicles, each having a few market leaders. Two-wheelers and passenger vehicles dominate the domestic demand. In terms of market size, the Indian passenger car market was valued at US$ 32.70 billion in 2021, and it is expected to reach a value of US$ 54.84 billion by 2027 while registering a CAGR of over 9% between 2022-27.

References

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Copyright

Copyright © 2025 Suchithra Swaminathan. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.