1- Dedication --------------------------------------- 4

2- Preface --------------------------------------- 5

3- Acknowledgment --------------------------------------- 6

4- Project Information --------------------------------------- 7

5- Intro. To Organization--------------------------------------- 8

6- Consumer Buying Behavior--------------------------------- 11

7- Buying Decision Behavior----------------------------- 16

8- Conclusion --------------------------------------- 17

9- References --------------------------------------- 18

Dedicated to our beloved parents,

Who always prays for us,

And encouraged us

at every step in this project

as well as every step that we have taken,

in our life.

In this era where time is very big factor for every one. Every person wants to save his every second to utilize it to achieve more and more goals, and with less time, people wants the better facilities and in short time.

When the traveling is the factor, people choose that how best, they can travel, what facilities they can get and how much time and money they can save.

In the marketing point of view, the behavior of the consumers effects deeply on the concerned organization. So that why, we are here to analyze and study the consumer behavior towards the Daewoo Pakistan Express Bus Service.

One of the great pleasure of writing the report is acknowledging the efforts of many people whose names may not appear on the cover but whose hard work, cooperation, friendship and understanding were crucial to the production of this report.

We would like to acknowledge the efforts of Miss Mahwish Anjum, whose continuous guidance helped us to complete this project report.

A very special thanks to Mr. M. Sajid, who guided us in this report and Mr. Arshad Hussain, Terminal Manager of Daewoo Pakistan Express Bus Service, Rawalpidi.

Babar Hussain

Mujahid Khan

Qaiser Naeem Malik

Date: 19-04-2003

Our project deals with the evolution of Consumer Buying Behavior of Daewoo Pakistan Express Bus Service. In this project we visited personally to the Daewoo Pakistan Express Bus Service at their Rawalpindi terminal and analyzed the behavior and attitudes of the passengers and customers of this organization, that why they prefer to travel by Daewoo Bus service.

We also analyzed the behavior of the staff of this organization towards their customers and what facilities they are providing to their customers.

Daewoo Corporation is a Korean company, which has their broad network all over the world including U.S.A, U.K, and many other countries having a long chain of their offices and services.

In Pakistan, this company was given the project of Islamabad to Lahore Motorway which was completed in 1998. It was 333 kilometers long Motorway project, which is also called LIMP (Lahore to Islamabad Motorway Project) which provided the safe and fast travel between the capitals of Lahore and Islamabad as well as providing improved access to the cities of Multan, Faisalabad and Sargodha.

The existing direct link between these two major centers is the Grand Trunk Road which forms part of an historic route across the Indian subcontinent linking Kabul in Afghanistan with Calcutta in India.

The agreement for design and construction of a four lane limited access tolled Motorway facility between Lahore and Islamabad was signed in December 1991, with this Korean Company, Daewoo Corporation. Daewoo agreed to fund 40% of the construction cost.

Now Daewoo Corporation is also working on the other projects of Motorway networks all over the Pakistan.

After the completion of Lahore to Islamabad Motorway Project, Daewoo was the introduced the marvelous bus service between these two cities of Islamabad and Lahore.

Initially, the Daewoo Pakistan Express Bus Service recruited 184 employees when they started their service on November 11 with a fleet of 20 buses. They had made the recruitment on the assumption that 50 more vehicles would join their fleet. These 50 completely built units were awaiting shipment in Korea. Korean firm had committed to bringing 300 air-conditioned buses on the Lahore roads by December 31, 1999 in an agreement with the Lahore Regional Transport Authority.

Daewoo has very good services for their passengers at their terminal points/stations as well as during the journey. They have big halls for the passengers, which are also called waiting halls. 27" TVs are provided in these halls, there are the Tuc shops. There are separate ticketing counters for every stations.

From their Rawalpindi terminal, Daewoo bus service has the bus services to Lahore, Multan, Faisalabad, and Peshawar. There is also the service from Rawalpindi to Murree which is being greatly appreciated by their customers. They also provide service from Lahore to Peshawar.The plan of starting the service between Rawalpindi to Abbottabad is under consideration in near future.

Daewoo Pakistan Express Bus Service has two categories of buses in their fleet,

Normal buses has the less facilities where in Super category, there are luxury seating arrangement and some other luxury facilities within the bus.

Now, this company has nearly about 100 buses providing services different routes and has a vast network within Pakistan.

Consumer Behavior involves the psychological processes that consumer go through in recognizing needs, finding way to solve these needs, making purchase decisions (e.g whether or not to purchase a product and, if so, which brand and where), interpret information, make plan, and implement these plans (e.g. by engaging in comparison shopping or actually purchasing a product).

The consumer faces numerous sources of influence. Often we take cultural influences for granted, but they are significant. An American will usually not bargain with a store owner, while that is common practice in much of the world. Physical factors also influence our behavior. We are more likely to buy a soft drink when we are thirsty for example, and food manufacturers have found that it is more effective to advertise their products on the radio in the late afternoon when people are getting hungry. A person's self image will also tend to influence what he/she will buy and upwardly mobile manager may buy a flashy car to project an image of success. Social factors also influence what the consumer buy-often, consumer seek to imitate others whom they admired and may buy the same brands. The social environment can include both the main stream culture and a subculture. Thus sneaker manufacturers are eager to have their products worn by admired athletes.

Finally, consumer behavior is influenced by learning-you try a hamburger and learn that it satisfies your hunger and tastes good, and the next time you are hungry, you may consider another hamburger.

Consumer choices are often influence dramatically by values. Some consumers, for example, seeks to "fit in with the crowd" and would like to own a car as similar as possible to that of the neighbor. Others, on the other hand, want to stand out. Terminal values reflect and states-e.g, a person wants to be affluent, while instrumental values reflects a chosen way of reaching the end value- e.g, a consumer may choose hard work as a way to gain wealth. In the consumption context, then, a consumer may choose to spend a great deal of money on buying and maintaining neat and professional attire, not because he/she is particularly interested in that appearance for its own sake, but rather because this will help the consumer be successful in his/her career. Core values are more deeply held than peripheral ones. Thus, a person may highly value honestly and avoid manufacturers that seems to make unwarranted claims, but only weekly hold a value of punctuality. In general, marketers will be more successful in appealing to core values.

Subculture often significantly influences the consumer. There are several potential ways that a society can be divided up. Some consumers are highly influenced by their ethnic origin. In some areas in Los Angeles, shop keepers may transact all their business in a language of the predominant immigration patterns into the neighborhood. Virtual pets at first spread in the U.S through Asians- American teenagers. Only after a while did the product diffuse into other ethnic groups. Occasionally religious groups will influence consumer's behaviors. Usually, because a religion may set a certain standards- e.g, some religions do not allow the consumption of Alcohol, while others may disapprove of charging interests. The fact that many Americans spends a great deal of time with members of their religion in churches and masks implies that members have a great deal of influence on each other. People in similar age groups also tend to have more influence on each other. This is particularly evident in the spread of fashion social status may also have some influence, as people may tend to emulate others in similar occupation or neighborhoods.

One way to look at social influence is though "reference groups" - people against which one compares oneself. Thus, a consumer may notice that all his friends are wearing a special kind of jeans and may expect to be ostracized if he/she chooses to wear a different brand. Interestingly however one may also hold dissociative reference group- people that one would not want to be compared to.

Family may influence the consumer’s choices a great deal. Research has shown, for example, that there is a tendency for adult children to use the same brands that their parents used over time. In many cases, these brand choices are made without much conscious thought.

In marketing jargon, a consumer problem refers to a discrepancy between the ideal situation and reality. Thus, problems can range greatly in severity. One problem, for example, is that you are hungry. The problem is easily solved by eating. Other problems can be significantly more severe—for example, a consumer is scared that he will be rejected by his wife because he is growing bald. Note that problems can be solved in more than one way. Baldness could be served by obtaining a wig, medical treatment, buying a fancy car (as an alternative way to achieve attractiveness), or some other creative way.

One model of consumer decision making involves several steps. The first one is problem recognition—you realize that something is not as it should be. Perhaps, for example, your car is getting more difficult to start and is not accelerating well. The second step is information search—what are some alternative ways of solving the problem? You might buy a new car, buy a used car, take your car in for repair, ride the bus, ride a taxi, or ride a skateboard to work. The third step involves evaluation of alternatives. A skateboard is inexpensive, but may be ill-suited for long distances and for rainy days. Finally, we have the purchase stage, and sometimes a post-purchase stage (e.g., you return a product to the store because you did not find it satisfactory).

Consumer involvement will tend to vary dramatically depending on the type of product. In general, consumer involvement will be higher for products that are very expensive (e.g., a home, a car) or are highly significant in the consumer’s life in some other way (e.g., a word processing program or acne medication).

It is important to consider the consumer’s motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein we consider a logical progression of consequences of product use that eventually lead to desired end benefit. Thus, for example, a consumer may see that a car has a large engine, leading to fast acceleration, leading to a feeling of performance, leading to a feeling of power, which ultimately improves the consumer’s self-esteem. A handgun may aim bullets with precision, which enables the user to kill an intruder, which means that the intruder will not be able to harm the consumer’s family, which achieves the desired end-state of security. In advertising, it is important to portray the desired end-states. Focusing on the large motor will do less good than portraying a successful person driving the car.

If a marketer can identify consumer buyer behaviour, he or she will be in a better position to target products and services at them. Buyer behaviour is focused upon the needs of individuals, groups and organisations. It is important to understand the relevance of human needs to buyer behaviour (remember, marketing is about satisfying needs).

Let's look at human motivations as introduced by Abraham Maslow by his hierarchy of needs: The hierarchy is triangular. This is because as you move up it, fewer and fewer people satisfy higher level needs. We begin at the bottom level. Physiological needs such as food, air, water, heat, and the basic necessities of survival need to be satisfied. At the level of safety, man has a place to live that protects him from the elements and predators. At the third level we meet our social and belongingness needs i.e. we marry, or join groups of friends, etc. The final two levels are esteem and self-actualisation. Fewer people satisfy the higher level needs. Esteem means that you achieve something that make you recognised and give personal satisfaction, for example writing a book. Self-actualisation is achieved by few. Here one is the one of a small number to actually do something. For example, Neil Armstrong self-actualised as the first person to reach the Moon. The model is a little simplistic but introduces the concept a differing consumer needs quite well.

To understand consumer buyer behaviour is to understand how the person interacts with the marketing mix. As described by Cohen (1991), the marketing mix inputs (or the four Ps of price, place, promotion, and product) are adapted and focused upon the consumer. The psychology of each individual considers the product or service on offer in relation to their own culture, attitude, previous learning, and personal perception. The consumer then decides whether or not to purchase, where to purchase, the brand that he or she prefers, and other choices.

 This is a very simple example of what can be a very complex process. There are many complex and detailed models of buyer behaviour such as The Source Loyalty Model of Webster and Wind (1972), Decision Process Models such as Cyert (1956), Organizational Models such as Webster and Wind (1972), Consumer Buyer Behaviour such as Sheth and Howard (1969), Engel et al (1978), and Industrial Buyer Behaviour such as Sheth (1973), as well as many others.

Culture is a set of values, perceptions, wants, behavior learned by a member of society from family. Culture is a most basic cause of a person wants and behavior.

We observed that in Pakistan, the culture doesn't effect mostly on the service of Daewoo buses. And the company has not faced the much problems to establish in this culture.

Now the Daewoo company is trying to start their services in many cities of Pakistan in order to make the service common in between the people to make its access and to increase their customers all over the Pakistan.

A consumer behavior also is influenced by social factors, such as the consumer's small groups, family, and social roles and status.

In Daewoo buses, we have observed that upper and middle class people travel more than the lower class. Because they want to save their time as well as to avail the maximum facilities, which are provided by Daewoo buses like air conditions, videos and the hosting facilities etc.

A buyer's decisions are also influenced by personal characteristics such as the buyer's age and life-cycle stage, occupation, economic situations, life styles and personality and self concept.

The Daewoo company's services may be effected greatly by the personal factors of people. If the the life styles are like in Islamabad, they like mostly to travel by the Daewoo bus services instead of the people living in the small towns of the Pakistan. And there are many other personal factors like people of high income, who don't take it much serious to travel this costly service of Daewoo buses.

A person buying choices are further influence by four major psychological factors, motivation, perceptions, learning and beliefs and attitudes.

In Pakistan, the most people think that the costly things/services are good and the cheeper things/services doesn't satisfy their psyche. So as it is the advantage to the Daewoo to have their maximum customers.

Passengers like the hosting facility provided in Daewoo buses very much.

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The buyer decision process is a useful tool to use when trying to learn consumer buyer behaviour. It has a number of stages:

We have analyzed that the buying behavior of Daewoo consumers is Dissonance Reducing. As Dissonance Reducing buying behavior is a customer buying behavior in situations characterized by high involvement but few perused differences among the brands.

As it is clear that there is no any competitor of Daewoo Pakistan Express Bus Service who is providing the same services, which are being provided by this company. They are providing very unique services all over the Pakistan and the people looking for these services need not to think at the stage of selection.

Even though the services of Daewoo Pakistan Express Bus Service are very costly, people still prefer to travel by this service because of their efficient services at the stations as well as during the journey, proper timing schedules. Especially, the business class definitely prefers their services to save their precious time.