Case Title:
Tata Nano: Consumers' Post-Purchase Behavior
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
http://www.ibscdc.org/Case_Studies/Marketing/Consumer%20Behaviour/CSB0028.htm