Understanding Customer Perception Towards the Small Car Segment: A Study at Varun Motors Pvt Ltd

Abstract

Customer perception plays a pivotal role in shaping consumer behavior and influencing purchasing decisions in today’s competitive market environment. It encompasses the attitudes, opinions, and impressions that customers form based on their interactions with a brand, product, or service. This study explores the key factors that contribute to customer perception, including brand image, service quality, price, customer experience, and online reviews. It also examines how these perceptions are formed and how they affect customer loyalty and satisfaction. With the rise of digital platforms and social media, customer perception has become more dynamic and susceptible to external influences. Understanding and managing customer perception is essential for businesses aiming to build strong customer relationships, enhance brand equity, and gain a sustainable competitive advantage. The research highlights the importance of aligning marketing strategies with customer expectations to foster positive perceptions and long-term engagement.

Introduction

Varun Motors Private Ltd is a prominent Maruti Suzuki dealership serving customers in Vijayawada, Andhra Pradesh and Telangana. This study explores customer perceptions of the small car segment (Alto, Celerio, WagonR) focusing on factors like design, pricing, mileage, after-sales service, and brand value to understand what influences purchase decisions and satisfaction.

Key Insights from Literature:

• Service quality is critical to customer satisfaction and loyalty, measured by models like SERVQUAL.

• Marketing strategies should focus on customer satisfaction, long-term relationships, and integrating technology with human service.

• Studies in India confirm a strong link between perceived service quality and customer satisfaction in automobile dealerships.

• Digital influence, especially social media, plays a growing role in consumer behavior.

Objectives:

• Analyze customer opinions on vehicle quality, pricing, and service experience at Varun Motors.

• Identify factors affecting customer satisfaction and loyalty.

• Evaluate Varun Motors’ strategies to improve customer relationships and service quality.

Research Methodology:

• Primary data collected via questionnaires and interviews focused on sales, after-sales, pricing, and satisfaction.

• Secondary data from online reviews, company websites, and industry reports.

Findings:

• Majority (53.47%) rate Maruti vehicles’ quality as excellent.

• Brand reputation is the top reason (80.7%) customers choose Varun Motors, followed by competitive pricing.

• Courteous staff and smooth vehicle delivery significantly influence after-sales satisfaction.

• Regression analysis highlights vehicle delivery process and after-sales service as key drivers of customer satisfaction.

• Younger customers (under 25) and first-time buyers form a large part of the customer base.

• Customers are highly satisfied with test drives and sales staff interactions.

Suggestions:

• Implement loyalty programs and service bundles to retain customers.

• Focus marketing on value and quality rather than price alone.

• Use digital engagement strategies such as automated service reminders, personalized offers, and gamified feedback.

• Leverage local influencers and encourage word-of-mouth through referral incentives.

Conclusion

Customer perception is a key factor in the success of any business. It reflects how customers view and feel about a company’s products, services, and overall brand. Positive perceptions can lead to increased customer loyalty, repeat business, and strong word-of-mouth, while negative perceptions can harm a brand’s reputation. Therefore, businesses must continuously monitor, understand, and improve customer perceptions to meet expectations and remain competitive. The customer satisfaction survey conducted at Varun Motors reveals a highly positive experience across most service and product touchpoints. The majority of customers, especially first-time and younger buyers, expressed high satisfaction with vehicle quality, pricing, staff interaction, and post-sale support. The strong inclination to recommend Varun Motors and the positive influence of brand reputation and staff suggestions indicate a well-established trust in the brand. However, customers highlighted pricing and added-value services as key areas for improvement. By focusing on these aspects and enhancing convenience features like home pickup/drop, Varun Motors can further strengthen customer loyalty and market position.

References

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Copyright

Copyright © 2025 Ch. Janaki Sai, Dr. P.V.M. Raju. 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.