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Case Title:

Tata Nano: Consumers' Post-Purchase Behavior

Publication Year : 2010

Authors: Kumar Gambhiraopet, Prashant Vidya Sagar Talluri

Industry: Manufacturing

Region:India

Case Code: CSB0028

Teaching Note: Available

Structured Assignment: Available

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Abstract:
Hundred years ago, when Henry Ford unveiled ‘Model T’ in US as the people’s car, many a company followed suit. Incidentally after a century, history repeated itself when Ratan N. Tata (Ratan Tata), chairman of Tata Sons, the promoter company of the Tata group, announced his long-cherished dream to produce the world’s cheapest car, Tata Nano, at an amazing price of INR 1lakh.

As Tata Nano vroomed to the customers on March 23rd 2009, few questions arose: How are the consumers receiving it? Has the dream of Ratan Tata come true? Set in early 2010, this case study focuses on the post-purchase behaviour of Tata Nano buyers. The post-purchase perceptions, dissonance levels and moments of pride have been analysed with the help of primary data collected through video interviews conducted among 8 customers of Tata Nano in Hyderabad, India, in mid-January 2010. The case study runs in the backdrop of the conceptualisation of theTataNano car and the roadblocks that cropped up during its production. This case study, primarily positioned to discuss the dissonance levels in new products, offers valuable insights.

Pedagogical Objectives:

  • To understand the conceptualisation of Nano car as the world’s cheapest car by Tata Motors and analyse the causes and concerns in taking the car from drawing board to board room to the shop floor
  • To debate on whether the introduction of Tata Nano would herald the new age of small cars in general and whether India can become the hub for small cars in particular
  • To understand the bottlenecks involved in the production ofTataNano and critically examine the influence of those bottlenecks on the buying behaviour of the customerswhile purchasing Tata Nano, as well as on the brand Tata and its impact on the brand loyalty thereof
  • To debate on the success of Tata Nano car in the wake of consumers’ post-purchase perceptions and assess their levels of dissonance
  • To raise a general debate on addressing all the possible cognitive dissonance touch points in the case of new products – launched either by an existing and established company or a new company.

Keywords : Cognitive Dissonance, Consumer Post Purchase Behavior, Post Purchase Dissonance, Post Purchase Dissonance in New Product, New Products' Cognitive Dissonance, Levels of Cognitive Dissonance, Consumer Satisfaction / Dissatisfaction, Tata Nano, Building Brands, Brand Loyalty, Customer Loyalty Vs Brand Loyalty

Contents:

  • Tata Nano – World's Cheapest Car: Causes and Concerns
  • From Conceptualisation to the Making of a Miracle
  • Small Car – Big Hopes: The Outcome of Tata Nano Amid All the Roadblocks
  • Tata Nano – Common Man's car – Uncommon Perceptions
  • The RoadAhead

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