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This paper aims to understand two-wheeler consumer retention behavior by examining their perception of service evaluation variables (such as service quality, perceived product quality and perceived consumer value), brand image and consumer empowerment that may trigger consumer satisfaction.

The study comprised a simple random sampling technique and conducted a survey (n = 284) using a structured questionnaire. The study analyzed the data using SPSS AMOS version 25 and PROCESS macros for analysis.

The study results show that service evaluation variables work best in leading to consumer retention in the two-wheeler industry. This relationship is further strengthened in the presence of consumer empowerment, brand image and consumer satisfaction.

The current study is one of the first studies in the two-wheeler industry that examine the relationship between service evaluation variables and consumer retention using direct, mediation and moderation effects.

After working through the case and assignment questions, students will be able to: understand how product markets in a given global region are to be analysed and assessed; assess various dimensions of consumer behaviour that would impact the strategies of a firm under consideration; identify how a firm can create its brand image and value proposition in a given international market; and evaluate and categorize various threat dimensions that a firm would experience in an international market.

Bajaj Auto (BA) was India’s largest two-wheeler exporter, with ongoing exports to more than 75 countries worldwide. Besides being in other regions of the world, BA’s foray into the African market had been very successful, and it was growing from strength to strength in this market. BA’s motorcycles, three-wheeler rickshaws and small commercial vehicles had been successfully plying the roads of many countries in Africa such as Egypt, Nigeria and Kenya.

Rakesh Sharma (Sharma), the Executive Director of BA, knew very well that Africa was a high-risk-high-gain market for BA. Intense competition from Indian and international two-wheeler and three-wheeler manufacturers, global supply chain and logistics issues, various economic and legal challenges, and the threat of losing African consumer patronage were the challenging issues that Sharma was facing in this market. Would Sharma be able to effectively assess the market environment and consumer behaviour prevalent in the African countries? Would he be able to recognize BA’s brand and value-propositions and identify the international marketing challenges threatening BA’s smooth ride in this market?

The case can be taught in advanced undergraduate, MBA or executive-level programs.

Teaching notes are available for educators only.

CSS 5: International Business.

The current work aims to understand the consumers’ adoption of electric vehicles (two-wheelers) from their value perspective by utilizing the value-based adoption model.

The study considered data from 302 potential electric two-wheeler customers and tested the hypotheses using structural equation modeling.

The outcomes showed that perceived economic benefits, social image, enjoyable acceleration and enhanced fun and perceived environment (positively) and perceived physical safety risk, perceived cost of ownership and range and charging risk (negatively) influenced the customers’ perceived value linked with electric two-wheeler (ETW) adoption. Only low engine noise emission and infrastructure issues did not affect perceived value.

Most of the respondents considered in the study were less than 35 years old. Hence, the model can be tested for other age groups.

The study’s outcomes will help ETW marketers, manufacturing companies and governments (state and central) to provide a more convenient environment for electric two-wheelers' adoption and help them curate appropriate strategies.

The current work offers a better understanding of potential customers' ETW adoption by employing a value-based trade-off.

The paper aims to explore how Porter and Kramer’s “Creating shared value” (CSV) framework supports the multinational corporation’s business model to turn social problems into business opportunities in two contextually different international markets.

Conceptually, the paper uses the CSV framework to argue that evaluation of business models in different societal contexts (geographically, culturally and economically) might be able to shed more light on the firm-societal needs. Empirically, the paper conducts a comparative content analysis of the business models of an international brand of a three-wheeler vehicle – Piaggio Ape – in Italy and India since its launch right after World War II. The content for qualitative analysis was identified using the Nexis Uni database.

Findings reveal that CSV outlines the strategy for firms to integrate societal concerns uniquely into their business models, rather than solving them in isolation. However, the business model performances resulting from these firm–society linkages may vary in an emerging market and a developed market. Regulatory fit is yet another factor that decides how well CSV could be applied.

Given CSV’s contradictory perception in corporate governance literature, the study empirically establishes its theoretical value in explaining the actions and success of strategic decisions that large multinational firms take. The interactions between the underlying attributes of four CSV strategies, the regulatory fit and business model success are articulated in the form of propositions and an integrated CSV framework. Given the paper’s two-case comparative analysis, the generalizability of the identified attributes of the four CSV strategies is limited and therefore calls for future research using larger samples of firms practicing shared value perspectives.

Corporate and international business managers can use the study findings and the proposed framework to comprehend scenarios beyond business systems and to apply CSV as a tool to address market needs in concurrence with addressing environmental and societal concerns.

The paper is one of the initial attempts to evaluate and extend the “CSV” perspective in the international business context and, thus, promises a broad future research scope.

In 2010, Hero Honda (HH), the largest global two-wheeler manufacturing company (based on unit sales), terminated its 26 year old JV with Honda, effective 2014. In August 2011, HH, rebranded itself as “Hero”, with a nationwide campaign across media; over three months, the campaign was rolled out on 30 TV channels, leading websites, 200 radio stations, and 4, 000 cinema halls. Signages were changed in 4, 500 touchpoints over a weekend. The case documents the market and brand position of HH and its principal competitors, Bajaj and Honda in India, the rationale for ending the JV, the rebranding requirements, and the actions taken. Pedagogically, we evaluate the rebranding effort to sustain, create, and build consumer memories and emotions.

Marketing.

Advanced undergraduate students, MBA students, and business executives interested in enhancing their knowledge and skills of consumer behavior analysis, and marketing strategy and execution in a developing country market.

Tata Motors Chairman, Ratan Tata, noticed that Indian families with three and four family members often commuted on a two-wheel scooter or motorbike. He had a vision to make a safe family transport for the Indian masses, a four-wheel vehicle made from scooter parts. His engineers took about five years (2003-2008) to develop the product. On January 10, 2008, Tata Motors publicly announced the Nano at the 9th Auto Expo in New Delhi at the target price of Rs 100,0000 ($2,500), unarguably the world’s cheapest car. Deliveries of the Nano began in June 2009. The initial target market for the Tata Nano was comprised of individuals and families who relied on a two-wheeler for transport. The value proposition was a safe, affordable, and attractive car. Initial reactions from industry analysts, dealers, and consumers were overwhelmingly positive.

In February 2010, Carl-Peter Forster (born in the UK and raised in Germany) was appointed Group CEO of Tata Motors. Monthly sales kept increasing until a high of 9,000 units in July 2010, then there were consistent declines for the next four months to just 509 units in November. In December 2010, ten months after being on the job, Carl-Peter Foster had to turn around the sales performance of Tata Nano.

Get students to appreciate the importance of understanding consumer behavior in the design and execution of marketing strategy.

Get students to understand the concept of value and how it is important at any price level, especially in comparing and contrasting consumer behavior across developed and developing country markets.

Get students to understand how marketing strategy is designed (target market selection and positioning) and executed after understanding consumer behavior.

Get students to understand how the marketing programs (marketing-mix) reinforce product positioning.

Teaching notes.

The learning outcome of this case study is to help students identify issues of the electric two-wheeler industry in India, revisiting conventional business models and transitioning toward sustainable business models. Eventually, this case study will enhance students’ analytical, qualitative analysis, multidisciplinary approach and strategic decision-making skills.

This case study can be used to discuss Michael Porter’s five forces model, TOWS matrix and Michael Porter’s generic strategies for competitive advantage.

Bounce was established in 2014 by Vivekananda Halkere, Anil G. and Varun Agni. The startup was an on-demand service provider of scooters. It also claimed to be the world’s fastest-growing scooter rental startup. As of March 2020, Bounce operated in 12 Indian cities, namely, Bengaluru, Jaipur, Hassan, Kolar, Mysore, Bhuj, Udaipur, Belgavi, Hyderabad, Ahmadabad, Hampi and Delhi. Bounce’s revenue grew to INR 1,000m in the fiscal year (FY) 2020 compared to INR 160m in FY 2019. Halkere was happy and proud of what his friends and he had achieved in the past two years. However, he was concerned about competition. What plan of action was needed to help thwart competition. What would be the best strategy to achieve growth and monetize operations? and How would Bounce address these major challenges to capture market share?

This case study can be taught in advanced undergraduate, MBA or executive-level programs dealing with strategic management. This case study helps students in dealing with issues pertaining to a given market sector where a firm is operating and the strategies to thwart competition.

Teaching notes are available for educators only.

CSS11: Strategy.

Purpose — The purpose of the chapter is to make retrospective data from biographic surveys comparable with traditional cross-section travel surveys, by correcting some biases attached to the biographic collection method. This is applied to a biographic survey passed in France within the 2007–2008 national travel survey.

Methodology/approach — The methodology implemented deals with three specific biases: the general survey sampling and response rate, the survival bias, due to differential surviving rates according to generations, and the geographical bias, as biog‘raphies were not passed in all regions. All biases were corrected by computing specific weightings.

Findings — One main finding is that with these three corrections, biographic data can yield modal shares for commuting trips to work and for commuting trips to education that are similar to those derived from the historical cross-section surveys about regular trips.

Research limitations/implications — Though biographic collection suffers from the memory effect, this effect remains low and does not disturb the modal shares derived from biographies.

The most challenging issue is that of missing generations that contributed to past mobility. But they can be replaced by modeling with an age-period model.

Practical implications — The chapter provides methodology to correct biographic data to reconstitute historical behavior.

Social implications — Exploring the memory of living people is essential to save data about the past, that otherwise could be lost, although they may be useful to understand present behavior and future likely trends.

Originality/value of chapter — Investigating biographic surveys is a new topic in the field of transport survey methods.

The learning outcomes of this paper will help students in understanding the dynamics of the formation of industry clusters and the benefits associated with industry clusters. The case will give stimulus towards the cluster competition.

The case describes the dilemma of a potential investor of a tyre company that wants to diversify its product line and is searching for a new strategic location. The investor is thoughtful about the Pithampur auto industry cluster for its upcoming investment. The case demonstrates how Pithampur has transformed into an “industry cluster” and the benefits it provides to firms in it. However, Pithampur is not the only auto industry cluster in India, clusters like Chakan-Pune is in competition with Pithampur for attracting investments. This is a cause of worry for the cluster’s stakeholders. The case projects amalgamation of concerns of the stakeholders of the clusters and those of potential investors in evaluating and benchmarking it with other clusters for a competitive future.

Suitable for both undergraduate and post-graduate students (MBA students).

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS: 11: Strategy.