Category: MBA Seminar Topics

History of Banking in India:

The economy will not be healthy without a solid and effective banking system inIndia. The technology as well as the internal and external factors imposed challenges must be reached by the Indian banking sector in addition to being hassle free. For the credit of Indian banking system, many outstanding achievements are added since past three decades and its accomplishments are wide and more striking.  InIndia, this bank is not only impounded to cosmopolitans or metropolitans but also even arrived at the remote corners of the country. All the above mentioned reasons formed as the main causes for the development process inIndia.

When the 14 main private Indian banks are nationalized, the rich dividends are remunerated for Indian bank by the government’s regular policy from 1969 itself.  In the year 1786 inIndiathe first bank was introduced which is the traditional bank. The Indian banking system expedition from the year 1786 to till date is divided into three discrete phases. They are:

• From the year 1786 to 1969, the Indian banks early phase.
• Indian bank’s nationalization and till 1991 earlier to Indian banking sector reforms.
• After 1991, the banking sector ofIndia’s new phase with the arrival of Indian Financial and Banking sector Reforms.

           The Bengal Bank which later became the State Bank ofIndia

Phase I:

      In 1786 the General Bank ofIndiais established. The follower banks that came into existence are the Bengal Bank and Hindustan Bank. Like self-governing units, the Bank of Madras in 1843, Bank of Bengal in 1809 and the Bank of Bombay in 1840 are launched by the East India Company and these banks are named as presidency banks.  In the year 1920 all the three banks are merged later on like private shareholders banks, the Imperial Bank of India is formed which is mainly of European shareholders. 

After the establishment of Allahabad bank in the year 1865, Punjab National Bank Ltd is launched with headquarters atLahorein the year 1894 by the Indians for the first time. The establishment of the banks such as Bank of Baroda, Bank of Mysore, Bank of India, Indian Bank, Central Bank ofIndiaand Canara Bank took place in between the years 1906 and 1913.  In the year 1935 the Reserve Bank ofIndiais launched.

Regarding the banks, public has less confidence in those days which resulted in slow deposit mobilization.  When compared, the postal department presented savings bank facility which is safer. Besides on a large scale, traders have taken more funds. 

Phase II:

      After theIndependence, several steps have been taken by the government in the Indian Banking sector Reform. Mainly in semi urban and rural areas the wide banking facilities are provided with the help of Imperial Bank ofIndiaafter its nationalization in the year 1955. Across the country to lever theUnionand State Governments banking transactions as well as to operate like a RBI principal agent, the state Bank of India is fashioned.  In the year 1980 seven more banks are nationalized in the nationalization Indian Banking sector reform’s second phase. Therefore under the government ownership nearly 80 percent of the banking segment is taken.

In order to regulate the Banking Institutions in the country, some of the below given steps are considered by the government:

• Enactment of Banking Regulation Act in 1949.
• Nationalization of State Bank ofIndiain 1955.
• Nationalization of SBI subsidiaries in 1959.
• Insurance cover extended to deposits in 1961.
• Nationalization of 14 major banks in 1969.
• Creation of credit guarantee corporation in 1971.
• Creation of regional rural banks in 1975.
• Nationalization of seven banks with deposits over 200 crore in 1980.

InIndia, the public sector bank branches grown in deposits to around 800 percent and progressed by 11,000 percent after nationalization.  

Phase III:

In the banking sector in case of reforms measure, several facilitates as well as products have been introduced in this phase. A committee for the banking practices liberalization is established on the name of M Narasimham in the year 1991.

With the ATM stations and foreign banks, the country became inundated. For offering satisfactory services to customers many efforts are made, therefore net and phone banking is initiated.  These results turned the total system to convenient and hasty. Than money much importance is given to time.  

A great deal of resilience is exposed by the Indian financial system. The East Asian countries are suffering from crisis which is caused due to external macroeconomics shock. All this is because of foreign reserves are high, banks and its customers having limited foreign exchange exposure, flexible exchange rate regime and the capital accounts are not completely convertible. 

The Panzer-Rosse Test for Assessing Completion in Banking:

Up on the competition measurement, literature can be splitted into analysis that will take structural approach that in turn will take non structural-approach. The structural approach is based up on the SCP (structure-conduct-performance) model. The SCP theory considered a casual relationship going on from the market structure to the behavior of firms pricing.

It consists of two theories. They are:

1. Influence conduct is known as structure.
2. Conduct is supposed to influence performance.

This implies the banking power can be produced by concentrating the banking industry that consent to lower deposit rates in banks and lending rates are increased and this can gain monopolistic profits. 

The two techniques which are utilized broadly which follows non-structural approach to measure empirically the competitive behavior degree in the market, termed contestability are been developed by Lau (1982), Breshanan (1982), Rosse and Panzar and (1987). The Breshanan model uses the idea of the firms which are profitably running in stable and a general market equilibrium model. The firms in profit will choose the quantity and price such that to maintain marginal revenue to be equal to the marginal cost.

This will perfectly meets the demand price in the competition or with the marginal revenue of the industry under collusion. The technique suggested by Lau (1982) and Breshanan (1982) need to estimate the model with the simultaneous equation based up on the industry data which is an aggregate, where the degree of market power is represented by a parameter is included. In Shaffer (1993), Haaf (2002), Alexander (1988) and Bikker investigation, test is done in this technique of Empirical implementation. 

In the Panzar-Rosse (PR) the future possibilities are: in this model, this investigates the relationship among change in input price factor and the revenue acquired by a particular bank. The Panzer-Rosse model will place on the suggestion that banks make use of various pricing strategies for changing the input cost based on the market structure in where the model is functioned.  To approach this model there will be benefit of utilizing the data of specific-bank and therefore it captures the single characteristics of various banks.

This static analysis which is comparative needs the evaluation of a revenue function in a reduced form. For a particular firm, the total revenue equilibrium is given by equilibrium quantity times the equilibrium price. Together equally based upon demand, cost and conduct; consequently all the demand and cost must be included in the revenue functions, through a particular concentration towards the factor prices. In the time period “t” and for the “i^th” term, the revenue equation in the reduced form is given by specification: 

                   R_it  =  f(w_it, z_it, y_it, ε_t )                                                      

Where                              

                   w_it   →  vector of factor price,

                   z_it    →   the variables that shift the cost function,

                   y_it    →   the variable that shift the demand function,

                   ε_t     →    is the error term.

In this case, the derivative is ∂R_it/∂W_itk which is of total revenue with respect to the price of kth input, the PR and H-test (statistic) in then represented as: 

H = ∑[(∂ R_it/∂ W_itk) * (W_itk/ R_it)]                                                             

In the reduced form of revenue, H is the sum of elasticities regarding to all the factor prices. Otherwise, in banks percentage change is measured by the statistic. In banks equilibrium revenue is produced by 1 percent change in all the input prices of banks. Consequently, factor prices and particular data from firm is essential for H statistic for computation. In advance cost information is not required, even though the introduction of variables affecting demand or cost is required. 

When related to the market study, PR test has clear-cut understanding. In the equilibrium revenue, percentage variation is represented by H and this result in increase of unit percentage in the price by the firm which uses all the factors. In an collusive environment, PR points out assuming maximum profit, when the input prices are increased then the marginal cost will increase and equilibrium output and revenues are decreased.  For monopoly, a homogeneous conjectural difference oligopoly or a perfectly colluding oligopoly, H<0.  Shaffer (1982) has proven that the H =1 for operating a natural monopolist in a market which is perfectly contestable and also in a firm where the maximum sales subject to break even constraints.

Under a competition which is perfect, marginal revenue and the marginal cost will increase with increase in input prices by the equal amount and therefore H=1. Monopolistic competition is considered when the value of H is between 1 and 0, in revenues proportional increase becomes less due to increase in input prices. In a monopolistic competitive market which is symmetric, 0<H<1. It is worth highlighting that not only H sign is important, but magnitude is also equally important. As explained in Haff and Bikker (2000), the approach includes four conditions. 

They are: 

1. At the long run equilibrium, banks are operated.
2. By the participant’s action of the other market, performance of the bank is influenced.
3. The cost structure is homogeneous and
4. Compare to the unity, price elasticity of demand is greater. 

From the standpoint of econometric, the rejection of H≤0 rules which is out of monopoly model, rejection of H≤1 excluded by the three models and rejection of H≤0 and H=1 hypothesis but should not consider the H≤1 then it mean that only competition model which is of monopolistic is consistent with the data. The relevant summary of cross-country and country specific studies is illustrated in below table: 

During the year 1996-2004, degree of competition is evaluated in the Indian banking industry utilizing data on the scheduled commercial banks and PR approach is employed. 

Author(s)	Countries	Years	Outcome*
Developed Economies
Shaffer (1982)	New York(United States)	1979	MC
Nathan and Neave (1989)	Canada	1982-84	1982: PC; 1983-84: MC
Molyneux et al. (1994)	Germany, United Kingdom,France,Italy, andSpain	1986-89	Italy: M;UK,France, Spain: MC;Germany: MC (except 1987: PC)
Corrorese (1998)	Italy	1988-96	MC (except 1992 and 1994: PC)
Bikker and Groenveld (2000)	15 EU countries	1989-96	MC (exceptBelgium andGreece: PC)
De Bandt and Davis (2000)	France,Germany,Italy, and United States	1992-96	Large banks: MC; small banks: M (except Italy: MC)
Bikker and Haaf (2002)	23 countries	Various ranges (up to 1998)	MC (for overall sample)
Emerging Economies
Gelos and Roldos (2002)	Argentina,Brazil,Chile, CzechRepublic,Mexico, Hungary,Poland, and Turkey	1994-99	MC
Philippatos and Yildrim (2002)	15 Central and Eastern European countries	1993-2000	MC (except large banks: PC)
Belaisch (2003)	Brazil	1997-2000	MC (except foreign banks)
Levy-Yeyati and Micco (2003)	Argentina,Brazil,Chile, Colombia,Costa Rica, El Salvador, andPeru	1993-2002	MC

* M — monopoly; MC — monopolistic competition; PC — perfect competition

Table: Application of the Panzar-Rosse Methodology to Banking Studies

Indian Banking Sector – An Overview

Through a huge number of banks, the system of Indian banking is expressed by means of combined ownership. The sector of commercial banking consists of 33 foreign banks, 40 private sector banks, and 27 public sector banks where majority ownership is included by the government. In 2003-04, whole assets of bank add up to a small amount exceeding 70 percent of GDP (Gross Domestic Product). In 2003-04, while the foreign and private banks apprehend 25 percent, the public sector banks comprise of about 75 of the banking system assets. Through contrast, the share of the public sector banks of entire banking system assets has been a little above 90 percent, during the year 1991. In the year 1992, in prior to the introduction of financial sector development, the government sector in each and every sphere of economic action has a principal role, and towards the requirements of development which is planned the system of Indian financial has effectively accommodated.

The rule for an administered interest rate has been resulted in financial intermediation of low-quality and high-cost, and the preemption of a huge amount of bank deposits result in the form of reserves. The existence of the interest rates structure that has been found difficult and it is taking place from the concerns of both social and economic, regarding the supply of acknowledgment credit towards definite sectors which resulted in cross subsidization, where the larger rates stimulating to non-concessional borrowers were involved. On deposits and lending, through specified regulatory instructions, the administered interest rates system was distinguished which in further leads to interest rates in large quantity.

Therefore, among the commercial banks lending rates and deposits rates the spreads have been increased, and in the credit risk the administered lending rates does not make any issue. During the banking system operations, the lack of prudential norms, accountability, and transparency also results in the expanding of non-performing assets trouble. The bank’s functional autonomy and operational independence has been confined by the inflexibility in management structures and licensing of branches which has increased the overhead costs on the expenditure front.

During this period, the financial environment by means of underdeveloped and segmented financial markets was distinguished. Therefore, this has resulted in the incompetent allocation of scarce resources and distortion of interest rates.  In relation to exposure norms, provisioning, asset classification, income recognition, and capital adequacy, the execution of prudential norms has been found. The economy of world has also observed most important variations like ‘corresponding with the movement towards financial services and global iteration’, even though these reforms were employed .

For the purpose of present reform process, on banking sector reforms a second government-appointed committee has provided the blueprint, against such conditions.

During the reform period, the noteworthy and critical reforms in the financial system have incorporated the following: 

• Permitting the banks to select their lending rates and deposit, by liberalizing the interest rate rule.
• Establishing micro-prudential measures like income recognition, provisioning norms for loans, accounting norms, capital adequacy requirements, asset classification, and exposure norms.
• Authorizing higher disclosure to make sure of larger transparency in the balance sheets.
•  Introducing competition by allowing the establishment of new foreign banks and also permitting more liberal entry of foreign banks.
• Assuming a consultative method so as to originate policy through measures that are being ushered by the participants of market to supply lead time useful to the market players in order to create required adjustments.
• Reducing the statutory reserve necessities to the present levels of 25 for statutory liquidity ratios and 5 percent for cash ratios.
• Expanding the public sector banks ownership in order to increase their capital up to 49 percent from the market by means of enabling the state-owned banks. Since the end of March 2004, seventeen state-owned banks has increased about 82 billion rupees and accessed the capital market. 

            As a result of the reforms, in the system of banking the share of entire assets of public sector banks was decreased to 75 percent from 90 percent between the year 1991 and 2004. The concentration ratio of five-bank asset has turned down to 0.43 in 2003-04 and to 0.44 in 1995-96, from 0.51 percent in the year 1991-92. Still it showed a turn down to 0.41 percent in 2003-04 and 0.48 in 1995-96, from 0.68 in the year 1991-92.    

Table:

Year/bank group*	1990-91			1996-97			2003-04
	SOB	Pvt.	Forgn.	SOB	Pvt.	Forgn.	SOB	Pvt.	Forgn.
No. of banks	28	25	23	27	34	42	27	30	33
Total assets	2929	119	154	5563	606	561	14714	3673	1363
Total deposits	2087	94	85	4493	498	373	12268	2685	798
Total credit	1306	50	51	2202	281	265	6327	1709	605
Credit-deposit ratio (%)	63	52	60	49	56	71	52	64	76
Share (percent)
Total assets	92	4	4	83	9	8	75	19	6
Total deposits	92	4	4	84	9	7	74	16	10
Total credit	93	4	3	80	10	10	73	20	7
Total income	246	11	15	536	74	76	1376	332	130
of which: interest income	239	9	13	465	64	62	1095	255	90
Total expenditure	241	11	13	540	61	56	1211	297	108
Of which: interest expenses	183	6	9	309	31.7	32	657	175	43
Net profit	5	0.3	2	71	13	20	165	35	22

 *SOB- State-owned Banks; Pvt-Private Sector banks; Forgn- Foreign Banks

                   In the private sector, the new banks entry diminished the concentration of asset which further might have made the competition stronger. The basic idea is that efficiency is improved through competition. However, this may not true always. One argument is that the excessive risk-taking may be directed by means of increased competition. To achieve economies of scope and scale in order that the concentration increased may directs to the improvements of efficiency, an argument was made by others that consolidation or concentration is required. 

In the system of Indian banking, the degree of competition is estimated. InIndia, the banking sector was made as an interesting case study by several factors. At first, through the objective of profitability, productivity, and enhancing efficiency,Indiaexperience liberalization of the banking sector, during the 1990s. Secondly, the banking sector experience a significant transformation that is being driven by the requirement for making a competitive economy, productive, and market-driven so as to maintain accentuate growth and larger investment levels.

Thirdly, in markets that are emerging the studies of competition relate to countries through a subsequent consolidation and history of banking crises. Concentration enlarged because of consolidation, and the tested studies in these countries, whether this resulted in increase in the power of institutions or increase in the competition. It is quiet fascinating to observe in the Indian context, whether penetration of foreign and private banks and diversification of public sector banks consists of any impact on competition.

Research methodology : 

Research methodology is a methodology for collecting all types of information & data pertaining to the subject in question. The main objective is to study all the issues involved and conduct situational analysis. Research Methodology consists of sampling procedures, the overall research design, and fieldwork done and finally the analysis procedure. By means of both primary and secondary data, sample survey is conducted in the research methodology. With the help of questionnaires as well as personal observation books and magazines, the primary data is collected. Journals are referred as secondary data.

Styles of research:

Research style is defined as a master plan identifying the procedure and method for the purpose of analyzing and collecting the information required. The research style is found to be descriptive. Various types of fact-finding inquire and surveys were included by descriptive research. Wherever the data is brought together by the questionnaire, the design of descriptive research is used. Through various customers of two banks i.e. ICICI Bank and State Bank ofIndia, the information is collected.

In Banks, in order to seek frank and fair responses on service quality, thirty bank officials and seventy five respondents of bank from both SBI and ICICI banks were individually contacted. The model of service quality has been utilized that is developed byBerry(1998). The model’s major assumption is that the quality of service is defined to be a multi-dimensional theory. During any setting, these dimensions supply to the estimation of quality of service.  

        In this method, the statements are performance based and one-dimensional that includes the ‘SERVQUAL’ model statements which can be used as a measurement. Fewer than five dimensions 21 statements have been grouped. In the perceptions, in order to guess the variations and range, Likert’s 5-point scale has been utilized for its appropriateness so as to determine the service quality perceptions. The scale 1-5 signifies ‘1’ as strongly disagrees and ‘5’ as strongly agree.   

The research problem and style chosen:

    Scope and objectives of the Study:

       SBI Bank has been obtained as public sector banks representative unit and ICICI Bank has been obtained as private banks representative units. Survey has been accomplished on 100 people who are the banks common people. Persons and professors from self-employed category, doctors and professors, etc, have been surveyed.  

Objectives:

• To compare and analyze the customers perceptions in both public banks like SBI bank and private banks like ICICI bank.
• To learn the strategies that are implemented by SBI bank, this further can guide to its advanced performance.
• To determine the customers perceptions in bank about the quality of service.
• To recognize the areas which require development, such that these bank’s service quality is improved.
• To determine the strategies those are being implemented by ICICI bank so as to attain more market share. 

Hypothesis:

The hypothesis of the study is:

H0 – Among the customer satisfaction and quality perceptions of private and public sector banks, there is no major difference.

H1 – Among the customer satisfaction and quality perceptions of private and public sector banks, there is a major difference. 

 Research Question:

Following are the research questions for this project 

1. What is the role of Indian banking sector across the financial growth ofIndia?
2. What are the existing banking systems inIndiaand how they are affecting the economy?
3. How SBI can be compared with the other competitive banks and how does it perform when compared with ICICI and PNB? 

Methods of Analysis:

    RESEARCH DESIGN:

In order to get the insight into the problem, the secondary data is investigated for research initialization. The current system short comings must be explored through secondary data examining which is the aim of the study.  The secondary data analysis is validated with the help of primary data. Moreover the areas that call for improvement are unrevealed.  

DEVELOPING THE RESEARCH PLAN:

By means of self administration, data is composed for this research project. The method like direct personal interview is employed because of time limitation and other constraints.  Less time is consumed, easy for interpreting as well as tabulating and produces definite along with point to point information, so the structured questionnaire is framed besides the direct answers are preferred by the people for representation. The types of questions in questionnaires include close ended as well as open ended are utilized.   

SAMPLING PLAN:

It is essential from the universe to get the samples in order to recognize its characteristics because to study the entire universe there is no possibility.  

• Sample Technique:  Simple Random Sampling technique is used.
• Sampling Units: Different professionals such as Lawyers, Chartered Accountants, Andhra Pradesh House Wives, Tax Consultants, Business Man and Professionals.
• Contact Method: Personal Interview. 
• Research Instrument: Structured Questionnaire. 

SAMPLE SIZE:

            For this project, 200 persons are involved in my sample size. There is need to collect the sample size of 200 persons because in the available time period there is no probability to bind the entire universe. 

Data Sources:

          By using the personal contact approach and questionnaire primary data can be collected. In ICICI and SBI banks mutually the bank officials and bank customers, the fair and frank responses were attained on service quality by the respondents to approach personally in sequence. ICICI and SBI banks fact sheets and public reports are secondary data, from internet this secondary data is collected. Mean and mean differences are designed which is used to analysis the data.

The actual goal of the research process is to evaluate the customer’s buying behavior of cars by taking Tata Nano as the primary example and analyzing car-marketing segments in the automobile industry in order to support the Indian automobile companies especially Tata Nano, for improving their market sales. 

 Scope of the Project

The main scope of this project is to analyze the information on the Indian automobile industry and the car marketing aspects of automobile industry by considering Tata Nano as an example. This research will provide the detailed overview on the automobile industry in India and the changes in the Indian automobile industry after the establishment of Tata Nano.  It will cover the different aspects related to the car marketing like the marketing plans and marketing strategies required for success.

Deliverables of the Project

The main deliverables of this project are as follows:

• The overview of the Indian automobile industry
• The detailed information on the buying behavior of the customers when they buy cars

Limitations and Obstacles

Within the process of completing this research, the researcher hasn’t faced any obstacles until now and in the process of gathering the information from the different types of data collection methods of primary source of data, there are some limitations and restrictions for collecting the information. In the process of gathering the information from the articles and case studies of previous scholars the researcher was asked to get authenticated for downloading them. The researcher followed the authentication and registration process and successful gathered the information without violating the previous scholar’s information. For completing the research process in a successful way the researcher will rectify them immediately and will complete research process in a reliable manner. 

Conclusion

The significant information on Indian automobile industry is explained in detail within this research study. According to this study Indian automobile industry is facing tough competition in the market because of changing behavior of customers. Even though many companies are using strategic approaches and marketing methods in order to identify and satisfy the wants and needs of customers still they are facing problems in managing customer behavior process. Tata Nano a recent invention of Tata Motors has shown major impact on Indian automobile sector because it the customer car designed and implemented with all needs of the customers within a reasonable price which is the cheapest car in the World.

There are three main significant aspects in this research process such as Indian automobile industry, buying behavior of customers and Tata Nano. Researcher used different literature searchers and published articles and journals on these aspects and analyzed them in a critical manner and finally identified that identifying the actual wants and needs of the customers is the significant problem faced by automobile companies. According to this study even though companies are following many marketing strategies and methods in order to satisfy the customers, still changing behavior of customers is showing its impact on the companies. One customer might prefer fuel efficient car and other may prefer low cost car with high features because product preferences changes from customer to customer. Indian automobile market is a huge group with different communities of people and they cultures and values shows impact on their buying behavior.

On the other hand, Tata Motors established Tata Nano car in order to reach target customers and was successful in the first year but year by year sales of Nano are decreasing rapidly because of customer feedback and reviews of existing customers. Many complaints are been raised on Nano car that it is not having much sufficient place and having some technical problems etc that has effected the sales of Nano car recently. In order to overcome this problem Tata Motors made changes to Nano car according to the customer feedback in order to satisfy existing and new customer needs. Finally, even though Nano is the cheapest car still many other companies are successful in the market because price is not only the concern to buy the cars but there are other specific reasons through which customers buy the cars. 

            Finally this study concludes that identifying customer buying behavior is not a simple task and no research study has explained the actual buying behavior of customers because it does not have proper definition and it changes continuously according to changing preferences of the customers. In order to become successful company among the competitors, companies should first identify the high preferences of the customer on specific aspect and offer efficient services to the customer according to that preference in order to improve the sales. On the other hand if that particular preference changes continuously then companies can innovate their products according to the changing behavior and preferences of the customers.

According to the report of automobileindia.com (2009) Indian automobile industry is the lucrative industry with more competitors in the marketplace. The competitive nature is very high in Indian companies, which are allowing them to use more marketing strategies in order to balance the competition and get competitive benefits. In order to reach end customers every company uses different marketing strategies to attract them and improve their sales. If competition is high among the companies, then customers will be benefited more with efficient services offered by the companies. Depending on the company standards the marketing process varies and most of the car companies will use online and on field marketing processes in order to sale their cars. Advertisements are showing major impact on the consumers through which they take decisions whether to buy the product or not. In this particular situation companies should successfully implement appropriate marketing strategies within their marketing process. Especially celebrity advertisements are impacting the customers and their interest towards specific product.

Finally this article concludes that marketing strategies are the only aspects that allow the companies to understand wants and needs of the customers and get competitive benefits. Future work is required in order to explain the importance of marketing strategies to the car companies.

This article is related to car marketing strategies which is one of the major aspect in the research process and for this reason this article information is included in the research process.

Research Methodology 

Research Methodology is the aspect, which includes different methods and frameworks in order to get the solution to the problems that take place in the research process. The Research methodology includes different methods such as Quantitative research, Qualitative research and mixed research method. These research methods include many data collection sources, which are as follows:

Research Method Selected

In order to gather the essential information required for the research process the quantitative and qualitative research methods are taken into consideration. By using the quantitative research method the required information on the Indian automobile industry, buying of customers, TATA-NANO and car marketing strategies is gathered from different types of primary sources of information like articles, journals, case studies and web related documents from internet sources without violating the previous scholar’s information. By using the qualitative research method the researcher is conducting the interviews and surveys on the automobile industry, Tata Nano and car buying of the customers by preparing a set of research questionnaires. In order to select the participants the researcher is using sampling techniques by which the required participants for the research interviews will be selected. In order to conduct the research interview the researcher should have good knowledge on the research topic and should be capable of answering any type of questions from the participants. The specific timetable will be prepared for the research interview that clearly specifies, why, what and where to conduct the research interviews and surveys. 

Research Design

According to views of Polit & Beck (2008) research design is the specific type of approach used to schedule the plans for research process that will help the researcher to plan what, when and where to do. The experimental as well as the non-experimental are the two types of research designs used for methodology aspects, and the specific research design will be selected depending on the type of research method. In this research process both experimental and non-experimental research designs are taken into consideration because both quantitative and qualitative research methods are used in the research data collection process.

Polit & Beck (2008) stated that experimental research design process includes different types of consistent opinions and for this specific reason this research design is widely accepted for qualitative research based studies. This study is based on qualitative and quantitative research methods through which opinions of earlier scholars and survey process on participant opinions will be taken into consideration. Surveys and interviews are the major processes involved in research design process that can be used to collect essential research data from participants. Researcher conducted survey on automobile industry in order to gather the opinions and views of different authors (Parahoo, 1997). 

Data Collection process

Saunders (2006) stated that there are two different types of data collection methods such as primary data collection method as well as secondary data collection method that are explained in detail as follows:

Primary data

• Interviews
• Surveys
• Discussions and
• Questionnaires

Secondary data

• Articles
• Journals
• Books
• Scholar reviews
• Web documents

Population and sample

According to the views of Cooper, D. R. & Schindler, P. S. (2001), sample size is the process of identification of total number of participants involved in the research process. In this research study the researcher-conducted survey on Tata Nano Car by including 20 individuals working in Tata Motors in order to gather their opinions on Nano car. On the other hand, the researcher even considered 40 customers who are already using cars and 40 customers who are willing to buy the car soon. The total sample size is 100 through which each and every participant will be interviewed with questions on automobile industry.

Measurements

The sample measurement will be carried out by using probability and non-probability techniques and 20workers, 40existing customers and 40new customers are the actual samples of the research process and the final sample size of research is 100.

Ethical Considerations

The ethical issues are the types of aspects that specify the individuality of the researcher while conducting the research process. In order to complete the research process successfully the researcher followed the required ethics and morals. The authentication methods are significant ethical considerations for the secondary source of data, the researcher followed these authentication methods to gather the data from secondary data sources. On the other hand the participant’s interest towards the research is the other significant ethical aspect, which should be taken into consideration. The researcher selected and included the participants according to their interest towards the research without troubling them and finally completed the research process in a reliable manner.