You are on page 1of 55

A STUDY ON

DEALERS SATISFACTION FOR FANS


AT

Submitted in partial fulfilment for the award of the degree of

Master of Business Administration (MBA)


Of
Mahatma Gandhi University Kottayam
Submitted by

BASIL GEORGE

Reg.No.80207

2007-2009

Under the Guidance of


PROF. MATHEW JOSEPH

Faculty, BIMS
LIST OF TABLES AND FIGURES
LIST OF TABLES

TABLE Pg
TABLE HEADING
No. No
2.1 SECTOR FINANCIALS 5
2.2 GROWTH IN 2005-06 OF THE SECTOR 6
2.3 PENETRATION LEVEL IN VARIOUS COUNTRIES 8
2.4 DEMAND AND PENETRATION LEVEL 8
2.5 PRODUCT PORTFOLIO 15
2.6 PRODUCT LINE 19
4.1 CASE PROCESSING SUMMARY 28
4.2 RELIABILITY STATISTICS 28
5.1 EXPERIENCE IN DEALERSHIP 30
5.2 QUALITY OF USHA FANS 31
5.3 CREDIT PERIOD ALLOWED 32
5.4 RATING PROMOTION ACTIVITIES 33
5.5 OPINION ABOUT PRICING 34
5.6 OPINION ABOUT EMPLOYEES’ DEALING OF USHA 35
5.7 OPINION ABOUT AFTER SALES SERVICE 36
5.8 DEALERS’ EXPECTATION ON PROMOTIONAL ACTIVITY 37
5.9 PROMOTING FACTOR 38
5.10 DEALING WITH OTHER COMETITORS 39
5.11 ANOVA TABLE 40

LIST OF FIGURES

No Pg
HEADING
No
2.1 ELECTRONICS EXPONENTIAL GROWTH 9
5.1 EXPERIENCE IN DEALERSHIP 30
5.2 QUALITY OF USHA FANS 31
5.3 CREDIT PERIOD ALLOWED 32
5.4 RATING PROMOTION ACTIVITIES 33
5.5 OPINION ABOUT AFTER SALES SERVICE 36
5.6 DEALERS’ EXPECTATION ON PROMOTIONAL ACTIVITY 37
5.7 PROMOTING FACTOR 38
TABLE OF CONTENTS
Executive summary...............................................................................
1 Introduction................................................................................ 1-3
1.1. Introduction..................................................................................................... 1
1.2. Nature of the problem..................................................................................... 2
1.3. Objective of the study...................................................................................... 3
1.4. Hypothesis........................................................................................................ 3

2. Profile of the Industry and Organisation............................... 4-19


2.1. Industry analysis
2.1.1.Overview................................................................................................. 4
2.1.2.Introduction............................................................................................. 4
2.1.3.Sector outlook......................................................................................... 5
2.1.4.Classification of consumer durables........................................................ 6
2.1.5.Scope....................................................................................................... 7
2.1.6.Current scenario...................................................................................... 7
2.1.7.Future scenario....................................................................................... 7
2.1.8.List of companies................................................................................... 9
2.1.9.Top players............................................................................................ 11
2.2. Profile of the organisation............................................................................. 12
2.2.1.The Shriram group history..................................................................... 12
2.2.2.The Siddharth shriram group................................................................. 12
2.2.3.Joint ventures......................................................................................... 13
2.2.4.Associates.............................................................................................. 13
2.2.5.Mission of the company........................................................................ 13
2.2.6.History of the company......................................................................... 14
2.2.7.Divers product portfolio........................................................................ 15
2.3. UIL’s Distribution network.......................................................................... 16
2.3.1.Sales force.............................................................................................. 16
2.3.2.Reach across India................................................................................. 16
2.3.3.Supply chain network............................................................................ 16
2.3.4.Sales management practice.................................................................... 16
2.3.5.UIL fan market in India......................................................................... 17
2.4. Product line of the company......................................................................... 19

3. Review of Literature.............................................................. 20-25


3.1. Review of literature....................................................................................... 20
3.2. Customer satisfaction.................................................................................... 21
3.3. Measuring customer satisfaction................................................................. 22
3.3.1.Sub segments Vs sub units.................................................................... 23

4. Research Methodology ......................................................... 26-29


4.1. Title of the study............................................................................................ 26
4.2. Statement of the problem.............................................................................. 26
4.3. Scope of the study.......................................................................................... 26
4.4. Nature of the study........................................................................................ 26
4.5. Research methodology.................................................................................. 26
4.6. Universe.......................................................................................................... 27
4.7. Population...................................................................................................... 27
4.8. Sampling......................................................................................................... 27
4.9. Source of data collection.............................................................................. 27
4.9.1.Primary data.......................................................................................... 27
4.10.Tools used for the study............................................................................. 28
4.11.Limitations of the study............................................................................. 29

5. Analysis and Interpretations................................................. 30-40


6. Findings and Suggestions...................................................... 41-45
6.1. Findings.......................................................................................................... 41
6.2. Suggestions..................................................................................................... 43

7. Conclusion.................................................................................... 46
Annexure..................................................................................... 47-52
1. Questionnaire......................................................................................... 47
2. Bibliography.......................................................................................... 51
1.1 INTRODUCTION

In today’s economy all manufacturers need to pay attention on how to build strong long-term
relationships with their dealers’ chain. In fact, it has been demonstrated that short term policies aimed
to provide dealers immediate benefits (e.g., price discount) may prevent the development of long term
and fruitful relationships. Also supporting dealers in promoting manufacturers’ products has been
proved as a sustainable strategy in the long run.

These issues have been debated in then field of Distribution channel management. In particular,
researchers emphasised that manufactures cannot ignore in designing long term growth-oriented
policies, strategies aimed dealers’ satisfaction. Furthermore, in order to successfully plan business
growth, it has been remarked literature the central role played by communication. In fact, researchers
underlined the failure in channel communication is likely to affect the relationship between
organizations and its own dealer structure

Such remarks suggest that in order to effectively build a long term relationship with an own dealers’
chain, a manufacturer has to adopt a systematic approach aimed to foster market consensus on aside,
and mutual benefits on the other side. In particular, in the innovative and revolutionary high-tech
industry, manufacturers in order to achieve the desired sales revenues cannot ignore the need to
continuously promote activities aimed to both update dealers employees’ skills and motivation.

This paper is the result of a research project conducted by the researcher with a manufacturer operating
in the consumer durable Industry. It is based on the hypothesis that in order to successfully support
dealers, manufacturer has to design long term oriented policies aimed both build up a growing
potential customers’ awareness of company product a side, and increase dealer’s employee skills and
motivation on the other side.
1.2 NATURE OF THE PROBLEM

The efficiency and success of many organizations may be strongly based on the distribution channels.
This structure involves different agents and distinct organizations that, despite the convergence in the
objective to offer a certain product, may have conflicting interests.

A marketing channel or distribution channel is a “set of interdependent organizations involved in the


process of making a product or service available for use or consumption” and the members of the
channel depend on each other to make their job (idem). The correct management of these agents is,
therefore, a fundamental issue.

Attending their purpose of providing products and services for the use or consumption and satisfying
the final market users – no matter if they are consumers or industry buyers – a large amount of the
channel structure make use of brokers that execute some kind of role on the products and service
distribution.

It emphasize the importance of channels that link specific activities which are connected to the
functions of distribution and final users necessity serving, dividing these causes based on the demand
and supply. Therefore it is obvious to keep the channel members satisfied and motivated to keep the
momentum of the business going. Any disturbance on this may cause loss on the sales or even losing
the channel member.

Considering this fact, the study was pertaining to the satisfaction of the dealers of Usha International
Ltd who belongs to the class II and Class III towns. In many times the companies fail to give good
service to those dealers because of the lack of resources or the reachability etc. this study is to find out
the satisfaction level of these dealers of UIL since nearly the 20% of the sales of UIL is from the rural
market.
1.3 OBJECTIVES

1. To find the dealers’ satisfaction of the Class II & Class III towns in the Ernakulam district
who deals with USHA fans
2. To find out how the dealers rate the promotional activities carried down by UIL
3. To find out whether there is any co relation between the experience and the type of promotion
they needed.
4. To know the impact of after sales service provided by UIL and the satisfaction level of the
dealers
5. To know how effective are the employees in dealing with the dealers

1.4 HYPOTHESIS

Ho: There is no significant relation between the dealers’ experience and their Satisfaction Level on
the Promotional Activities.

H1: There is a significant relation between the dealers’ experience and their Satisfaction Level on
the Promotional Activities.
2. PROFILE

2.1 INDUSTRY ANALYSIS

2.1.1 OVERVIEW

With the increase in income levels, easy availability of finance, increase in consumer awareness, and
introduction of new models, the demand for consumer durables has increased significantly. Products
like washing machines, air conditioners, microwave ovens, color televisions (CTVs) are no longer
considered luxury items. However, there are still very few players in categories like vacuum cleaners,
and dishwashers.

Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and
intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major
target is the growing middle class of India. MNCs offer superior technology to the consumers, whereas
the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged
brands, and hold over wide distribution network. However, the penetration level of the consumer
durables is still low in India. An important factor behind low penetration is poor government spending
on infrastructure. For example, the government spending is very less on electrification programs in
rural areas. This factor discourages the consumer durables companies to market their products in rural
areas.

2.1.2 Introduction

Some Facts

1. Bargaining power of suppliers in consumer durables sector is limited due to threat of imports and
intense competition.

2. Some of the entry barriers in consumer durables sector are distribution network, capital, and ability
to hire purchases.

3. Demand is seasonal and cyclical.

4. Competition among players is on the basis of difference in prices and well-acknowledged brands.
2.1.3 Sector Outlook

There has been strong competition between the major MNCs like Samsung, LG, and Sony.
LG Electronics India Ltd. has announced its extension plan in 2006. The company is going to invest
$250 million in India by 2011 and is planning to establish a manufacturing facility in Pune. TCL
Corporation is also planning to establish a $22 million manufacturing facility in India. The Indian
companies like Videocon Industries and ONIDA are also planning to expand. Videocon has acquired
Electrolux brand in India. Also, with the acquisition of Thomson Displays by Videocon in Poland,
China, and Mexico, the company is marking its international presence. According to Isuppli
Corporation (Applied Market Intelligence), country's fiscal policy has encouraged Indian consumer
electronic industry. The reduction on import duty in the year 2005-06 has benefited many companies,
such as Samsung, LG, and Sony. These companies import their premium end products from
manufacturing facilities that are located outside India. Indian consumers are now replacing their
existing appliances with frost-free refrigerators, split air conditioners, fully automatic washing
machines, and color televisions (CTVs), which are boosting the sales in these categories. Some
companies like Samsung Electronics Co. Ltd. and LG Electronics India Ltd. are now focusing on
rural areas also. These companies are introducing gift schemes and providing easy finance to capture
the consumer base in rural areas.

TABLE 2.1

Sector Financials (In Rs)

31/03/2002 31/03/2003 31/03/2004

Sales 37,331m 30,100m 43,096m

Sales Growth - -19.4% 43.2%

Gross Profit Margin 10.7% 6.6% 4.3%

Profit After Tax (PAT) 1,019m 940m -1,202m

PAT Growth - -4.3% -209.5%

Market Capitalization 1,787m 2,392m 2,359m

P/E Ratio 7.0 7.6 -7.9

Return on Capital Employed 13.9% 23.1% 6.9%

Growth in 2005-06

TABLE 2.2
Consumer Durables Growth

Air Conditioner 20-25%

Refrigerator 5-10%

Microwave Ovens 25%

Washing Machines 5-10%

Color Televisions (CTVs) 15-20%

Black & White Televisions -20%

Clock 10%

Watch 10%

VCDs 30%

Consumer Electronics (Overall) 9%

2.1.4 Classification of Consumer Durables

Consumer durables Sector can be classified as follows:

1. Consumer Electronics includes VCD/DVD, home theatre, music players, color televisions
(CTVs), cameras, camcorders, portable audio, Hi-Fi, etc.
2. White Goods include dishwashers, air conditioners, water heaters, washing machines,
refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-
in appliances, tumble dryer, personal care products, etc.
3. Moulded Luggage includes plastics
4. Clocks and Watches
5. Mobile Phones

2.1.5 Scope

In terms of Purchasing Power Parity (PPP), India is the 4th largest economy in the world and is
expected to overtake Japan in the near future to become the 3rd largest. Indian consumer goods market
is expected to reach $400 billion by 2010. India has the youngest population amongst the major
countries. There are a lot of young people in India in different income categories. Nearly two- thirds of
its population is below the age of 35, and nearly 50 % is below 25. There are 56 million people in
middle class, who are earning US$ 4,400- US$ 21,800 a year. And there are 6 million rich households
in India. The upper-middle and high-income households in urban areas are expected to grow to 38.2
million in 2007 as against 14.6 million in 2000.

2.1.6 Current Scenario

Rural sector offers huge scope for consumer durables industry, as it accounts for 70% of the Indian
population. Rural areas have the penetration level of only 2% and 0.5% for refrigerators and washing
machines respectively. The urban market and the rural market are growing at the annual rates of 7%-
10%and 25% respectively. The rural market is growing faster than the urban market. The urban market
has now largely become a product replacement market. The bottom line is that Indian market is
changing rapidly and is showing unprecedented business opportunity.

2.1.7 Future Scenario

With easy availability of finance, emergence of double-income families, fall in prices due to increased
competition, government support, growth of media, availability of disposable incomes, improvements
in technology, reduction in customs duty, rise in temperatures, growth in consumer base of rural
sector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth is
projected in the future, too.
The penetration level of consumer durables is very low in India, as compared with other countries.
This translates into vast unrealized potential.

For example, in case of color televisions (CTVs), the penetration level of various countries is:
TABLE 2.3

PENETRATION LEVEL IN VARIOUS COUNTRIES

India 24%

Brazil 11%

China 98%

US 333%

France 235%

Japan 250%

TABLE 2.4

Demand and Penetration Level of White Goods in India

1995-1996 2005-2006 2009-2010


Demand 3.43 million 8.72 million 13.14 million

149 per 1,000 319 per 1,000 451 per 1,000


Penetration level
households households households

In a study conducted by Frost & Sullivan and commissioned by India Semiconductor Association
(ISA), the demand for Electronic Appliances is projected to grow exponentially at a compounded
annual growth rate (CAGR) of 30%.
In billions

FIGURE 2.1

2.1.8 List of Companies

Some of the companies in consumer durables sector are:

1. AIWA

2. Akai India

3. BenQ Corporation

4. Blue Star Ltd.

5. Bose Corporation

6. BPL

7. Canon India

8. Carrier Aircon Ltd.

9. Daewoo India

10. Electrolux-Kelvinator

11. Godrej

12. Haier India


13. Hitachi Ltd.

14. Khaitan India Ltd.

15. LG Electronics India Ltd.

16. MIRC Electronics Ltd.

17. Mitsubishi Electronic Corporation

18. Nokia India

19 Pace Micro Technology

20. Panasonic

21. Philips India

22. Samsung India

23. Samtel

24. Sansui India

25. Siemens

26. Sony India

27. Thomson Ltd.

28. Titan Industries

29. Toshiba Corporation

30. Videocon Industries

31. Whirlpool Appliances

2.1.9 Top Players

The top 10 players in consumer durables sector are:

• Nokia India
• LG Electronics India Ltd.

• Philips India

• Titan Industries

• Samsung India Electronics

• Whirlpool Appliances

• Siemens

• Sony India

• Videocon Industries

• Blue star
2.2 PROFILE OF THE ORGANISATION

Usha International Limited. The Group's principal activity is to manufacture and sale of home
appliances and automotive components. The products include fans, sewing machines, appliances,
power products, auto components, water coolers. The Company export fans, sewing machines, diesel
engines, diesel engine parts and other automotive components. The Group operates in four segments,
namely, Consumer durables, Engines, pump sets and motors, Auto products and others.

USHA international is one of the India’s known consumer durables marketing and distribution
companies. It started in 1957 and marketing its products for over 50 years under the brand name
USHA company majorly Manufacturing of Electric Fans and Fuel Injection Equipment. Presently
USHA have Over 50 million customers. They have a large distribution network in core categories. It is
the First Indian Company to be awarded ISO 9001:2000 for Marketing practices.

USHA international is a company under the flagship of Siddhartha Shriram group.

2.2.1 The Shriram group history

The group was incorporated by Lala Shriram (grandfather of Siddhartha Shriram) in 1889. Over the
next 100 years, the group expanded into textiles, chemicals, sugar, automobiles, engines, rayon’s /
nylon tyre cord, automotive components, edible oils, heavy chemicals (fertilizers/ chlor caustic),
engineering foundries, sewing machines, fans, home appliances and other kind of items.

In 1989, the group was split amongst the descendants of Lala Shriram and the businesses that came to
Siddhartha Shriram’s group have been mentioned below.

2.2.2 The Siddhartha Shriram group

Siddhartha Shriram group is one of India’s renowned business groups with interests as diverse as
sugar, edible oils and industrial chemicals to fans, appliances and automobile.
2.2.3 Joint ventures

Company has joint ventures with

➢ Hunter Fan Company, USA (Fans)

➢ Janome Sewing Machine Company, Japan (Sewing Machines)

2.2.4 Associates

Company associates with

➢ Honda Siel Power Products Ltd.

➢ G.D.Midea Environment Appliances Manufacturing Company Ltd., China

➢ NGK India

➢ CIXI Three Circle Diesel Engine Company Ltd. (Diesel Engines)

2.2.5 Mission of the company

Usha International's mission is to pursue excellence in all its spheres of business activity. It believes in
providing reasonable returns to its shareholders and adding value to the principal's business operations
through effective marketing. Thus, making it one of the leading marketing organisation in India. This
must be achieved by meeting customer requirements, providing them satisfaction thereby building
their trust in the company and its products.
1934 India's first indigenous sewing machine marketed.
1946 The first Indian Sewing Machine is exported.
1948 Fans are added to the product range.
1950 The first Indian Fan exported.
1966 Dr. Charat Ram appointed as Chairman of the board of UIL.
1968 Diesel Engines are added to the Usha product range.
1975 Usha becomes a Public Ltd. Company.
1979 Fuel Injection Equipment is introduced to the Usha Auto Components range.
1982 Usha Sales is renamed to Usha International.
1984 Launches a range of Home Appliances.
1994 Fourth generation fully automatic Sewing Machines in collaboration with Janome Sewing
Machine Company of Japan is added to the product range.
1994 Monoblock pumps followed by a complete range of water lifting equipment are launched.
1996 Introduces a new range of diesel engines for power generation.
2000 Commences marketing of Light Weight Kerosene pump sets powered by Honda engines.
2001 Tie-up with Hunter Fan Company of USA for marketing of premium Usha Hunter ceiling
fans.
2005 Purchase of Water Cooler factory from DAIPL.
2007 Appointed as super distributor for 2 and 3 wheeler spark plugs in India by NGK Spark Plug
Company Limited, Japan.
2008 Amalgamation of Usha International Limited and Shriram Fuel Injection Industries Limited
with The Jay Engineering Works Limited. The new merged entity called Usha International
Limited.

2.2.6 History of the company


2.2.7 Diverse product portfolio

UIL is a multi product consumer durable marketing and distribution company with a diverse
product portfolio that includes the following six product lines:

TABLE 2.5

PRODUCT PORTFOLIO

Electric Fans

Sewing Machines

Home Appliances

Engines, Electrical motors & Pump


sets.

Drinking water coolers & dispensers

Generators

Auto components.
2.3 UIL’s DISTRIBUTION NETWORK

2.3.1 Sales force

Separate sales force for 6 product lines and 3 different channels (traditional, modern retail and
government sales)

16 Locational offices across India, with a Location Head to ensure capture of synergies across product
lines

Strong experienced middle management in charge of sales.

2.3.2 Reach across India

Dealerships in all urban centres with population greater than 20,000

Penetration in important modern retail outlets (Future Group, Metro, Reliance)

Presence in rural India is contributing approximately 20% of the total sales.

2.3.3 Supply chain network

33 warehouses leased and managed in-house

SAP enabled across all UIL locations (head office, location offices, and warehouses)

2.3.4 Sales management practices

SBU led sales organization structure, with regional segregation of market

Coverage of dealers by trained sales staff


2.3.5 UIL Fan market in India

The fan market was a well developed and mature market. Fans were the 4th largest owned consumer
durable after watches, bicycles and radio sets. In the year 1993, the electrical fan market was more
than Rs 1000 crores.
The market was dominated by the top 5 brands- Usha, Orient, Crompton, Polar and Khaitan - who
controlled 70% of the market. They also enjoyed 95% awareness in the market. However, they were
gradually losing market share in a low growth stagnating market, where the rapid growth of the
unorganized sector (10% annually) was giving them stiff competition.

The organized fan industry had witnessed a decline of 30 per cent in production last year because of
competition from small scale units which escaped excise duty. Despite this Usha International had sold
more last year and gained market share.
The size of the market is Rs. 1,300-1,400 crores in value terms including the small scale sector and
Usha's share is half of this. On import threat from China, company pointed out that there was duty
protection of 40 per cent.

On the other hand in the plastic table and wall fans segment there may be a serious problem as China
can make them much cheaper. The company will continue to focus on strategic tie ups only in fans,
sewing machines, small appliances, engines and motors, auto components, air-conditioners and
exports. It has no intention to get into white goods.

At the top end, the company has joined hands with the U.S.-based Hunter Fan Company, biggest
ceiling manufacturer in the world. It will exclusively market the Hunter range of fans in India under
the joint branding of Usha Hunter. The tie up has enabled Usha to enter and create a high-end premium
category in the ceiling fans market.

The premium end ceiling fans costing Rs. 5,000 - 10,000 are meant for hotels, guest houses and air-
conditioned houses. The consumers can now look forward to super premium ceiling fans with wooden
blades with an option of imported Belgian and Italian light fittings to enhance the decor of any room.
Around eight models will be introduced in the first year.

The company last year had a turnover of Rs. 400 crores and a profit of Rs. 9.8 crores. This year would
witness marginal growth in the top line segment.

In an effort to expand its market share in the lower-end, the largest consumer durable marketing
company, Usha International is planning to launch low-cost fans christened ‘Zipp’, shortly. The
company is preparing a new marketing strategy to enhance the market share in the domestic fan
market by creating price points for targeted customers. Without compromising on the quality, the
company is planning to offer a range of fans to suite to the needs and paying capacity of the customers.

Company had launched 19 fan models between April and May 2003, besides the company will also
launch 10 models in the home appliances segments, he added. The models include: Ceiling fans range-
Opera, Optima, Sea Breeze, Sonata Decorative, Ultimate, Zipp, Table fans range-Mist Air EX, Zipp
table fan, Pedestal Fans range-Mist Air ultra, Mist Air Pedestal remote fan, Mist Air EX pedestal fan.

The company last year had a turnover of Rs. 400 crores and a profit of Rs. 9.8 crores. This year would
witness marginal growth in the top line segment.

On the financial front, the company hopes to achieve a turnover of over Rs 500 crore in the current
year as against Rs 400 crore turnovers reported in the last year.
2.4 PRODUCT LINE OF THE COMPANY
There are 6 types of fans marketed by the company:

TABLE 2.6

PRODUCT LINE

Ceiling Fans Table Fans


Pedestal Fans

Wall Fans Exhaust Fans Other Fans


3.1 REVIEW OF LITERATURE

Channel satisfaction and its consequent impact on channel relationships has been an important concern
of both practitioners as well as researchers during the last three decades. This is in reaction to a world
wide trend towards building closer, and more integrated relationships between manufacturers and
channel intermediaries. It is being realized that one of the major prerequisites for achieving effective
integration of channel operations is the existence of high levels of commitment to the relationships.
The focus of managerial decisions with regard to channel management has thus shifted to a large
extent on creating and maintaining relationship commitment. As Morgan and Hunt (1994) in their
seminal work on channel commitment has put it “relationship commitment is central to all the
relational exchanges between the firm and its various partners”.
Drawing from studies from diverse domains such as marriage, social exchange, organizational
behavior etc. they feel that, “Commitment and trust are very important because they encourage
marketers to (1) work at preserving relationship investments by cooperating with existing partners (2)
resist attractive short-term alternatives in favor of the expected long-term benefits of staying with
existing partners and (3) view potentially high-risk actions as being prudent because of the belief that
their partners will not act opportunistically”.
Channel satisfaction is undoubtedly a major factor that could lead to greater levels of channel
commitment. Channel member satisfaction is defined as an overall positive affective state resulting
from the appraisal of all aspects of a firm’s working relationship with another firm (e.g. Frazier, Gill
and Kale 1989, Gaski and Nevin 1985). However, there exists considerable variation among channel
theorists on the exact definition of channel satisfaction (Andaleeb, 1995). In order to reduce this
apparent variation in conceptualization, Geyskins and Steenkamp (2000) proposed a two way
classification of channel satisfaction wherein satisfaction is defined in terms of its economic
antecedents and social antecedents. Economic satisfaction is described as “a channel member’s
evaluation of the economic outcome that flows from the relationship with its partners such as sales
volume, margins and discounts”. Social satisfaction on the other hand is defined as a channel
member’s “evaluation of the psychological aspects of its relationship in that interactions with the
exchange partner are fulfilling, gratifying and facile”.
When we talk about customer service and/or satisfaction, we talk about creativity. Creativity allows us
to handle or diffuse problems at hand or later on in the process of conducting the everyday business.
We talk about how, or rather what, does the organization have to do to gain not only the sale but also
the loyalty of the customer. We want to know the payoff of the transaction both in the short and long
term. We want to know what our customers want. We want to know if our customers are satisfied.
Satisfaction, of course, means that what we delivered to a customer met the customer’s approval. We
want to know if customers are delighted and willing to come back, and so on. Fleiss2 and Feldman3
present examples of that delightfulness in their writings. Fleiss has written about Ben and Jerry’s ice
cream and Feldman has discussed excellence in a cab ride.
As important as delightfulness is, some of us minimize it, or even totally disregard it. At this point, we
fail. Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are:
• Employees must adhere to a rigid chain of command
• Employees are closely supervised
• Conflict—in whatever form—is not allowed
• Rewards are based on carrot-and-stick principles
• Wrong objectives are measured

3.2 CUSTOMER SATISFACTION

Customer satisfaction is a key and valued outcome of good marketing practice. According to Drucker
(1954), the principle purpose of a business is to create satisfied customers. Increasing customer
satisfaction has been found to lead to higher future profitability (Anderson, Fornell, and Lehmann
1994), lower costs related to defective goods and services (Anderson, Fornell, and Rust 1997),
increased buyer willingness to pay price premiums, provide referrals, and use more of the product
(Reichheld 1996; Anderson and Mittal 2000), and higher levels of customer retention and loyalty
(Fornell 1992; Anderson and Sullivan 1993; Bolton 1998). Increasing loyalty, in turn, has been found
to lead to increases in future revenue (Fornell 1992; Anderson, Fornell, and Lehmann 1994) and
reductions in the cost of future transactions (Reichheld 1996; Srivastava, Shervani, and Fahey 1998).
All of this empirical evidence suggests that customer satisfaction is valuable from both a customer
goodwill perspective and an organization’s financial perspective.

A firm’s future profitability depends on satisfying customers in the present – retained customers
should be viewed as revenue producing assets for the firm (Anderson and Sullivan 1993; Reichheld
1996; Anderson and Mittal 2000). Empirical studies have found evidence that improved customer
satisfaction need not entail higher costs, in fact, improved customer satisfaction may lower costs due to
a reduction in defective goods, product re-work, etc. (Fornell 1992; Anderson, Fornell, and Rust
1997). However, the key to building long-term customer satisfaction and retention and reaping the
benefits these efforts can offer is to focus on the development of high quality products and services.
Customer satisfaction and retention that are bought through price promotions, rebates, switching
barriers, and other such means are unlikely to have the same long-run impact on profitability as when
such attitudes and behaviors are won through superior products and services (Anderson and Mittal
2000). Thus, squeezing additional reliability out of a manufacturing or service delivery process may
not increase perceived quality and customer satisfaction as much as tailoring goods and services to
meet customer needs (Fornell, Johnson, Anderson, Cha, and Everitt 1996).

3.3 MEASURING CUSTOMER SATISFACTION

While it seems clear that increasing customer satisfaction is beneficial to a marketing manager, how to
measure it is less clear. Customer satisfaction has been studied from the perspective of the individual
customer and what drives their satisfaction (Oliver and Swan 1989; Oliver 1993; Fournier and Mick
1999) as well as from an industry-wide perspective to compare customer satisfaction scores across
firms and industries (Fornell 1992; Anderson, Fornell, and Lehmann 1994; Fornell et al. 1996; Mittal
and Kamakura 2001), while other research has examined customer satisfaction in a single organization
(Schlesinger and Zornitsky 1991; Hallowell 1996; Loveman 1998) or across several organizations
(DeWulf, Odekerken-Schröder, and Iacobucci 2001). In addition, specific tools for measuring
customer satisfaction have been developed in the past, including SERVQUAL (Parasuraman, Berry,
and Zeithaml 1988, 1991). Thus, there exists an ample literature on which to draw when attempting to
measure customer satisfaction.

In attempting to measure customer satisfaction, it is possible that attributes can have different
satisfaction implications for different consumer and market segments – the usage context, segment
population, and market environment can influence satisfaction and product use (Anderson and Mittal
2000). Failure to take into account segment-specific variation may lead a firm to focus on the wrong
aspect for a given set of consumers (Anderson and Mittal 2000). Furthermore, consumers with similar
satisfaction ratings, yet different characteristics, may exhibit different levels of repurchase behavior
(Mittal and Kamakura 2001). It is clear, then, that market and consumer segments should be important
factors to consider when measuring customer satisfaction and its implications.
Garbarino and Johnson (1999) did consider segments in the customer base in their study of satisfaction
where they analyzed the different role played by satisfaction between low relational and high relational
customers. Their study, however, involved customers from only a single organization. Our approach
extends this work by studying customers from multiple organizations, and shares some similarities
with Anderson and Sullivan (1993) with respect to the type of analysis and sampling methods. The
goals of their research, however, were to study the antecedents and consequences of customer
satisfaction rather than investigate how different types of satisfaction may influence the overall
measure of customer satisfaction. In addition, our theoretical approach shares some similarities to
Hutchison, Kamakura, and Lynch (2000) who posited that unobserved heterogeneity is a problem for
interpreting results from behavioral experiments. The basic point of their argument is that aggregation
may create effects that do not exist in any segments, or may mask effects that do exist. The present
study makes a similar point and provides an analytical method for overcoming such a problem. Kekre,
Krishnan, and Srinivasan (1995) examine heterogeneity of effects across individual customers of a
single company using a random effect ordered profit model. These models are similar to the
hierarchical linear models considered here, and a single customer could be considered a subunit.

3.3.1 Sub segments vs. Subunits

Other authors have examined the heterogeneity of customer satisfaction effects. Danaher (1998) shows
how latent class regression can be used to segment customers and estimate regression effects by
segment simultaneously. Our work is different in that we assume pre-defined subunits – our concern is
not to define segments that have different effects. For the problems examined here, the subunits
already exist. Danaher (1998) identifies segments of customers (end users) who place different
emphasis on different service attributes. Malthouse (2002) defines such a process as sub segmentation.
A firm has targeted a market segment and acquired customers/end users. It then sub segments these
customers/end users from a market segment into smaller, more homogeneous groups based on some
criteria such as utility for aspects of the product in the case of Danher (1998).

An important conceptual question concerns when one approach should be preferred over the other. We
make two points in response to this question. First, the pre-defined subunit approach to studying
heterogeneity is more appropriate when the resulting managerial actions will be implemented at the
subunit level. Second, managerial actions implemented at the subunit level are most reasonable when
there is homogeneity within a subunit and heterogeneity across subunits; when this is not the case the
organization should seek actions that can be implemented for sub segments of customers within a
subunit. We give several examples to illustrate these points.
Consider the case of a newspaper owner, discussed in more detail below. An owner in the U.S. has
multiple newspapers and wants to know whether to invest in improving either the service or the
content of its individual papers. Investing in content could involve hiring additional reporters so that
local news can be covered more thoroughly, adding pages to existing sections, adding special-interest
sections, etc. For most newspapers in the U.S. these actions would have to be taken at the subunit
level. One might object by suggesting, for example, that large metropolitan newspapers (which
represent only a small percentage of U.S. newspapers) could improve content for specific suburban
communities by hiring reporters and adding customized local sections. We would argue that the
suburban “zone” would be a subunit.

A second example can be when actions primarily involve reach media. If a company is communicating
a single message with, for example, television, newspapers, billboards, etc., the message must be
tailored to the subunit reached by the media. A third example is managerial actions that are most
naturally applied at the subunit level of retail stores, car dealerships, supermarkets, and bank branches,
as discussed previously. A corporation could send employees of certain subunits, but not all, for
specialized customer service training programs. Corporations often choose where to locate subunits,
and might opt for more expensive locations in regions where “convenience” is more important. In
addition, pricing strategies often must be executed at the subunit level (Singh, Chintagunta, and Dube
2002).Of course; there are numerous examples of situations where customer sub segmentations are
more appropriate. See Danaher (1998) or Malthouse (2002) for further discussion and examples.

The present research represents the first study of which we are aware to measure customer satisfaction
from a representative sample of customers who are in turn from a representative sample of
organizations in a single industry. The analysis was replicated in a second industry to confirm that the
findings are not unique to a single industry.
4. RESEARCH METHODOLOGY

4.1 TITLE OF THE STUDY

A Study on DEALERS’ SATISFACTION of USHA INTERNATIONAL LTD


ERNAKULAM

4.2 STATEMENT OF THE PROBLEM

The problem for the study was to estimate the dealers’ satisfaction of Usha International Limited and if
not in which areas they are not satisfied with the service of the company.

4.3 SCOPE OF THE STUDY

This study covers respondents form the class II and Class III towns in Ernakulam district who are the
dealers of Usha fans. The result of the study can be used as a support data for UIL’s comprehensive
marketing programme.

4.4 NATURE OF THE STUDY

The type of research followed is mainly analytical and to a certain extent descriptive in nature.
Analytical research is the method used to analyze and draw inference from a set of facts or collected
data. This analysis is used to arrive at new information and facts.

4.5 RESEARCH METHODOLOGY

The research design is the conceptual structure within which research is conducted; it constitutes the
blueprint for the collection, measurement and analysis of data. The data was collected from 50 dealers
from Ernakulam district. A scheduled questionnaire was used to collect primary data on the other
hand; secondary data was collected using books, magazines and websites. Graphical tools including
bar diagrams, pie charts and statistical tools including percentage & chi-square analysis were used in
the process of analysis and interpretations of the collected data.
4.6 UNIVERSE

The dealers of UIL in the entire Ernakulam district concertedly contributed to the universe.

4.7 POPULATION

50 dealers from the universe were selected randomnely for the survey.

4.8 SAMPLING

Simple random sampling was the method adopted for the selection of sample from the above-
mentioned universe.

4.9 SOURCE OF DATA COLLECTION


Both primary and secondary data were used for the data collection

➢ 4.9.1 PRIMARY DATA


The primary data was generated through the questionnaire by soliciting the response of
the dealers of UIL. The questionnaire has been tested for its validity before the research is been
conducted. The reliability test has given an Alpha value of 0.604. The reliability statistics has been
given below.
TABLE 4.1

Case Processing Summary

N %

Cases Valid 7 100.0

Excluded a 0 .0

Total 7 100.0

a. List wise deletion based on all variables in the procedure.

TABLE 4.2

Reliability Statistics

Cronbach's Alpha No of Items

.604 10

4.10 TOOLS USED FOR THE STUDY

Various statistical tools have used for the study.

1. Reliability test has been conducted f finding out the Alpha value for the questionnaire used
for the survey.
2. Statistical tool like ANOVA is used for testing the Hypothesis generated
3. Statistical tables, Charts and Diagrams are used for the presentation of the data.
4. Analysis being carried down by the help of statistical software like SPSS
4.11 LIMITATIONS OF THE STUDY

➢ Since the study was within a period of 8 weeks, time factor was a major constraint.
➢ The study was based on the assumption that the respondents will always be truthful and
correct. But this assumption might not be true always.
➢ The study depends upon responses of the respondents, who are believed to be giving the right
information. Thus the accuracy of the survey and its findings depends a lot on the respondents
and their responses.
➢ This sample size cannot represent the features and characteristics of the universe to its entirety.
➢ The study was confined to the Erankulam district, so the results may not be the same in other
parts of Kerala which are having different market conditions.
5 ANALYSIS AND INTERPRETATIONS

TABLE 5.1
EXPERIENCE IN DEALERSHP

Sl No. Criteria No. of respondents

1 1 – 3 years 2
2 4 – 7 years 8
3 8 – 10 years 15
4 Above 10 years 25
TOTAL 50

FIGURE 5.1

INFERENCE:

The experience of the dealers matters a lot in this analysis to find the degree of dealers’ satisfaction.
The percentage analysis gives the percentage of their experience in their dealership and if it is higher
the analysis have the higher value.

Of about 50 dealers 50% of are having above ten years experience and 30% are in the business of
about 8-10 years. The other 16% have 4-7 years of experience and the rest 4% of the dealers have 1-3
years experience. Since the chart above shows the dealers have considerable experience and their
answers are valued much and their statements are very much helpful for the analysis to come
effective.

TABLE 5.2

QUALITY OF USHA FANS

Sl No. Criteria No. of respondents

1 VERY GOOD 24
2 GOOD 18
3 SATISFACTORY 8
4 POOR 0
TOTAL 50

FIGURE 5.2

INFERENCE:
The chart above shows the degree of reliability on the quality of USHA products the dealers have.
From this inference we can analyse the quality USHA offers to their customers. Most of the dealers
said the quality of USHA is unbeatable. Around 48% dealers have the opinion that it is very good,
36% of the dealers say the quality is good and only a mere 16% of them have the opinion Satisfactory.
No one reported on poor quality products from USHA.
TABLE 5.3
CREDIT PERIOD ALLOWED
Sl
Criteria No. of respondents % of respondents
No.
1 VERY GOOD 18 36
2 GOOD 22 44
3 SATISFACTORY 10 20
4 POOR 0 0
TOTAL 50 100

FIGURE 5.3

INFERENCE:

This table shows the degree of dealers’ satisfaction on the credit period allowed by USHA to them.
Most of the dealers are satisfied with the credit period allowed. 36% of the dealers are very much
satisfied about the credit period offered to them. 44% of the dealers are voted “Good” and 20% of the
dealers find no faults and almost satisfied with the credit period allowed. None of the dealer has
reported that the credit period allowed is not matching with them.
TABLE 5.4

RATING OF PROMOTION ACTIVITIES


Sl No. Criteria No. of respondents
1 VERY GOOD 3
2 GOOD 15
3 SATISFACTORY 27
4 POOR 5
TOTAL 50

FIGURE 5.4

INFERENCE:
The promotion, one of the P’s of marketing is most important for the survival of any business concern,
be it public or private, service or production. From the analysis, the promotion activities carried out by
USHA is found to be satisfactory. 6% of dealers found it extremely well and 30% of the dealers have
reported as “Good”. 54% of the dealers are satisfied and the rest 10% of the dealers are reporting
“poor”. According to them the competitors are giving good promotion for their products compared to
Usha.
TABLE 5.5

OPINION ABOUT PRICING


Sl
Criteria No. of respondents % of respondents
No.
1 VERY HIGH 10 20
2 HIGH 24 48
3 AVERAGE 16 32
4 LOW 0 0
TOTAL 50 100

INFERENCE:
This table shows the opinion of the dealers and customers about the price of the USHA products. At
any time, the price of a company’s product is always discussed; even it is maintained at a low cost. But
when asked to a lot of customers the real fact is revealed. Among the 50 dealers, 20% of them reported
that the product is priced the highest, 48% of them are reporting it is higher but not the highest.
32% of the dealers are satisfied with the price, because of the product’s quality. And none of the
dealers have reported that the price is lower and no problem to deal with that.

To compete with the low cost products available in the market, the company has recently launched
products like Zipp, Atom etc.
TABLE 5.6

Employees relationship to dealers


Sl
Criteria No. of respondents % of respondents
No.
1 HIGHLY SATISFIED 12 24
2 SATISFIED 28 56
3 MODERATE 10 20
4 DISSATISFIED 0 0
TOTAL 50 100

INFERENCE:

In the pursuit of marketing, maintaining good relationship with the dealers is essential. The employees
of the firm should maintain a good rapport with the dealers in order to carry on their business in a
smooth fashion.
This table shows that no dealer has a trouble in dealing with the employees of USHA, which is also a
main factor affecting the dealership and their satisfaction. The friendly relation with the dealers helps
much better for an organization to flourish.
Here, in the case of USHA, the replies depicts that they have understood this concept very well. 24%
of the dealers are proud to be the dealers of USHA and 56 % are much satisfied. 20 % produce average
results and none of them have reported a poor relationship with the employees of the company.
TABLE 5.7

OPINION ABOUT AFTER SALES SERVICE


Sl No. Criteria No. of respondents
1 HIGHLY SATISFIED 3
2 SATISFIED 10
3 MODERATE 35
4 DISSATISFIED 2
TOTAL 50

FIGURE 5.5

INFERENCE:
After sales-service, is very much important for a manufacturing company to bloom. In that matter,
Usha finds a little problem with the dealers. They are quite satisfied, because, no product will be of
under-quality and a very few if found to be defective, are replaced and repaired sooner.
From the above figure, it is evident that from the after – sales service offered by the company 6 % and
20%, so totally 26 % of the dealers have no problem and they are satisfied well. But 70 % of the
dealers voted that the service is only moderate and 4% of the dealers find some problems in the after
sales service.
On observation, the dealers are having problem with the after sales service which is unavoidable. They
say that it takes time for the product to get repaired and having comparatively less problems with the
replacement; hence they do use local mechanics for the sudden repair.
TABLE 5.8
DEALERS’ EXPECTATION ON PROMOTIONAL ACTIVITY
Sl
Criteria No. of respondents % of respondents
No.
1 DISCOUNT 32 64
2 GIFT 4 8
3 PRIZE 5 10
4 OTHER OFFERS 9 18
TOTAL 50 100

FIGURE 5.6

INFERENCE:
Some dealers have the suggestions, and the suggestions about the promotional activities are, shown in
the table. It becomes essential for the manufacturing organization to satisfy its dealers by the way to
sustain and compete.
USHA already offering discounts and they are satisfied with it. Hence the 64 % of the dealers find no
problem with the promotional activity and they get what they expect. 18% of the dealers expect offers
when they purchase in bulk. 8% expect for the gift items and 10% expect prizes to be offered.

TABLE 5.9

PROMOTING FACTOR

Sl No. Criteria No. of respondents

1 PROMOTION 5
2 BRAND NAME 25
3 COMPANY POLICY 3
4 MARGIN 12
5 SCHEMES 5
TOTAL 50
FIGURE 5.7

INFERENCE:
While talking with the dealers about the main factors which drive them to deal with USHA, it came
out that most of the dealers prefer on Brand name to be the first factor. About 50% of the dealers are
dealing with Usha products because of its Brand name. 24 % of the dealers have voted for margin and
10% for the promotional schemes and 6% for the company policies. Though the dealers prefer margin,
promotional schemes etc apart from the Brand name, they believe that it is the Brand name of the
company and its products which are the main factors behind their promotion of the brand.

TABLE 5.10
DEALING WITH COMPETITORS
Sl % of
Criteria No. of respondents
No. respondents
1 YES 50 100
2 NO 0 0
TOTAL 50 100

INFERENCE:
Most of the dealers deal with the competitors also. This is because it is very essential for them to
satisfy their various kinds of customers who have different brand and product preferences.

Most of them are dealing in products of companies like Crompton Greaves, Havell’s, Bajaj, Khaitan,
Polar and many other local brands. Many of them are dominated by Crompton Greaves.
ANOVA Table for Comparison of Dealers’ Experience with their Satisfaction on the
Promotional Activities:

Hypothesis:
Ho : There is no significant relation between the dealers’ work life and their Satisfaction Level
on the Promotional Activities.

H1 : There is a significant relation between the dealers’ work life and their Satisfaction Level
on the Promotional Activities.

TABLE 5.11

ANOVA

EXPERIENCE

Sum of Squares df Mean Square F Sig.

Between Groups 3.048 1 3.048 22.857 .005

Within Groups .667 5 .133

Total 3.714 6

From the table above, Degree of Freedom = 1, the value of F = 22.857, the significance lesser than
0.05, thereof the null hypothesis is rejected, by accepting the alternate hypothesis.
Therefore, there is a significant relation between the dealers’ experience and their Satisfaction Level
on the Promotional Activities, and most of the well experienced dealers are satisfied with the
promotional activities.
6.1 FINDINGS

➢ Usha have got an array of well established dealers. The dealers have a good track record of
their business.

➢ The dealers are satisfied with the quality of the products which are offered by Usha. None of
the dealers said that the products are of poor quality.

➢ It is found that the price is a little higher for the Usha products but when considering about the
quality, the product is worth the price. Most of the dealers are satisfied with the price, because
of the product’s quality and none of the dealers reported that the price is lower so no problem
to deal with that.

➢ The friendly relation helps much better for an organization to flourish. Here, in the case of
Usha, the feedback depicts that they have understood this concept very well. The dealers are
happy with the involvement of the employees of UIL.

➢ On observation, some of the dealers are having problem with the after sales service which is
unavoidable. They say that it takes time for the product to get repaired, hence they do use local
mechanics for the sudden repair but no problem faced on the replacement front.

➢ Most of the dealers also deal with the competitors. This is because it is very essential for them
to satisfy the customers who have different brand and product preferences.

➢ From the observation, it is found that there are complaints about the profitability and price of
Usha products. Because the margin they are getting is less compared with the immediate
competitors.

➢ There is a significant relation between the dealers’ experience and their Satisfaction Level on
the Credit Period allowed and most of the well experienced dealers are satisfied with the credit
period. The company gives less credit period to the new dealers. When they prove to be good
with their payment pattern, the company gives extension on the credit period and payment
modes.
➢ There is a significant relation between the dealers’ experience and their Satisfaction Level on
the Promotional Activities, and most of the well experienced dealers are satisfied with the
promotional activities given by the company such as hoardings, name boards, display aids etc.

➢ While talking with the dealers about the main factors which drive them to deal with USHA, it
came out that most of the dealers prefer on Brand name to be the first factor other than the
profitability.
6.2 SUGGESTIONS

The main objective of every analysis is to find the faults and road blocks of a business.
Some of the suggestions, based on the 4P’s of marketing are:

PRODUCT
➢ Usha fans are well known for their durability, but the imported Chinese fans called the Mist Air
series are having a shorter life. More complaints are arising from this imported Mist Air series.
The company should be careful about these series fan; otherwise the brand name may be
affected.

➢ Trendy designs should be adopted to have an aesthetical appeal which is lacking for Usha fans
compared with the competitors’ products, especially Havell’s and Crompton Greaves

➢ Most of the dealers are not highly satisfied with the after-sales service given by the company. It
should be taken care of because it is the vital factor in every business. For this, a Gap analysis
can be done to find out where the company is lacking in delivering the after sales service
activities, and the effective measures can be taken.

➢ Opening more service centers across Kerala is needed for the better after sales programme. The
major towns like Kottayam, Alappuzha, and Palakkad are not having a service centre for the
company at present. By opening service centers at these places, the company can cater to the
needs of a wide customer base across Kerala.

➢ Periodic training programs should be conducted for the technicians as the company is
extending the product line periodically. They should become familiarized with the technical
specifications of the products for providing better after sales service.
PRICE
➢ The company is offering discounts and allowances in the form of trade discounts to the dealers.
But the existing trade discount packages are benefiting the dealers who are doing big volumes
of business. The dealers in the class II and Class III towns may not be able to do that much
volume. In order to improve the rural sales, existing trade discounts should be made in that way
which should be motivating those dealers to do the business.

➢ Cash discounts are offered to the dealers who are making advance payments. It is now merely
2%. Increasing that level may motivate the dealers for the cash purchase as they are getting this
benefit other than the trade discounts.

PLACE

➢ The company should focus more on the rural market as it contributes nearly 20% of the total
sales and is an untapped market too. It can be beautifully done through the newly introduced
low cost products like Zipp, Wind, Zen and Atom etc.

➢ The company is having a different channel for the low end model like Zen. Either by adding
members to this channel or by using the existing Members the rural market can be captured.

➢ It will be better to have a feedback from the dealers at regular intervals, to minimize the
communication gap in the distribution process between the dealers and company people.

➢ The dealers have some complaints about the delivery of goods. The company is using road
transport for the delivery of goods with the help of different transporting companies. It should
be taken care of while selecting the transporter. So that the deliveries can be made in time.

PROMOTION
➢ The company is now mainly focusing on the Push strategy for promotion. Since the
competition is strengthening, Pull strategy also can be used along with this.
➢ The existing trade promotion schemes are not offering much to the small scale dealers. There
should be good trade promotion schemes which support the smaller dealers too.

➢ The immediate competitors are far ahead of Usha in using the Pull strategy. Usha should
concentrate more on advertising through Visual Media.

➢ Billboards or hoardings can be used as an outdoor promotional method instead of the existing
wall paintings. The billboards are to be more attractive.

➢ In store advertising can be designed to increase the number of spontaneous buying decision.
Studies revealed that nearly 70% of all buying decisions are made in the store.

➢ To encourage repeated purchases, Usha can take many short-term actions such as price
promotions, coupons, displays, and repetitive advertising.

➢ Admissibility of brand ambassadors plays an important role in the advertising campaign.


Presently Usha is not having a brand ambassador for the promotion.
7. CONCLUSION

Competing is the global brand and it is difficult one. From the survival point of view, UIL should enter
into all aspects of marketing activities to improve the product life in the future market. The company
has mostly achieved in satisfying its dealers and as well as its customers. It is evident from this study
and UIL is advised to maintain its Quality on its products so as to retain this stage forever. The study
has been successful in knowing the Dealers’ Satisfaction with Usha International Limited.

In order to successfully design long term policies aimed to foster manufacturers-dealers relationships,
it has been demonstrated that manufacturers must give up decisions exclusively oriented to generate
immediate benefits. In fact such policies may disclose future company failure.

The study is not entirely devoid of limitations. The sampling methodology deviates substantially from
a pure random sampling based methodology and therefore reduces the generalisability of the study.
Future studies could look at different contexts as well as inclusion of other moderators.
ANNEXURE

A Study on DEALERS’ SATISFACTION of USHA INTERNATIONAL LTD ERNAKULAM with


special reference to the class II & Class III towns in the Ernakulum district

Questionnaire

Name:

Address:

1. How long you are dealing with USHA products?

1-3 years 4-7 years 8-10 years above 10 years

2. Are you dealing with other companies?

Yes No

If Yes, specify
BRANDS
CROMPTON
HAVELLS
USHA
BAJAJ
KHAITAN
POLAR
OTHERS

3. How do you feel about Quality of USHA products?

Very Good Good Satisfactory Poor

4. Which factor enables you to be the dealer of USHA products?

Promotion Schemes Company Policy


Margin Brand Name

5. How do you rate Price of USHA products compared with the following competitors?

BRANDS Very High High Average Low


CROMPTON
HAVELLS
USHA
BAJAJ
KHAITAN
POLAR

6. What do you feel about credit period given by USHA?

Very Good Good Satisfactory Poor

7. How do you rate the Promotional Activities given by USHA?

Very Good Good Satisfactory Poor

8. What type of promotional activity do you prefer with USHA products?

Discount Gift Prize Offers Others (Specify)……………..

9. Whether the expected quantity of USHA products is supplied to you in time?


Yes No

10. What do you feel about the employees dealing with you in USHA?

Highly Satisfied Satisfied

Average Dissatisfied
11. What are the factors that you expect from USHA?

Promotional Sales follow-up Scheme

Service Credit Facility Others

12. Do you have any complaints about USHA products?

Yes No

If Yes, specify the reason,

Delivery of goods Quality of products

After sales service Pricing

13. Do you recommend your customers about USHA products?

Yes No
If No, specify the reason,

14. What do you feel about after sales service given by USHA?

Highly Satisfied Satisfied


Moderate Dissatisfied

15. Do you have any suggestions to improve the quality of USHA products?
Yes No

If Yes, specify,
BIBLIOGRAPHY

BOOKS
➢ Drucker, Peter F. (1954), The Practice of Management, New York: Harper & Row.

JOURNALS
➢ Andaleeb, S. S. (1995) “Dependence Relations and the Moderating Role of
Trust: Implications for Behavioural Intentions in Marketing Channels”,
International Journal of Research in Marketing, Vol 12 No 2, pp. 157-172

➢ Anderson, Eugene W., Claes Fornell, and Donald R. Lehmann (1994), “Customer
Satisfaction, Market Share, and Profitability: Findings from Sweden,” Journal of Marketing,
58 (3), 53-66.

➢ Anderson, Eugene W., Claes Fornell, and Roland T. Rust (1997), “Customer Satisfaction,
Productivity, and Profitability: Differences Between Goods and Services,” Marketing
Science, 16 (2), 129-145.

➢ Anderson, Eugene W. and Vikas Mittal (2000), “Strengthening the Satisfaction-Profit Chain,”
Journal of Service Research, 3 (2), 107-120

➢ Danaher, Peter J. (1998), “Customer Heterogeneity in Service Management,” Journal of


Service Research, 1 (2), 129-139.

➢ Fornell, Claes (1992), “A National Customer Satisfaction Barometer: The Swedish


Experience,” Journal of Marketing, 56 (1), 6-21.

➢ Frazier, G.L., James D. Gill and Sudhir H. Kale (1989) “Dealer Dependence
Levels and Reciprocal Actions in a Channel of Distribution in a Developing
Country”, Journal of Marketing, Vol.53, pp:50-69
➢ Geyskens, I; Steenkamp(1999), J.E.M.; Kumar, N. A meta-analysis of satisfaction in marketing
channel relationships. Journal of Marketing Research. Chicago: Mai, Vol.36. p. 223.

➢ Mittal, Vikas and Wagner A. Kamakura (2001), “Satisfaction, Repurchase Intent, and
Repurchase Behavior: Investigating the Moderating Effect of Customer Characteristics,”
Journal of Marketing Research, 38 (1), 131-142.
➢ Parasuraman, A., Leonard L. Berry, and Valarie A. Zeithaml (1988), “SERVQUAL: A
Multiple-Item Scale for Measuring Consumer Perceptions of Service Quality,” Journal of
Retailing, 64 (Spring), 12-40.

➢ Singh, Vishal, Pradeep Chintagunta, and Jean-Pierre Dube (2002), “Balancing Profitability
and Customer Welfare: An Application to Zone Pricing by a Supermarket Chain," Working
Paper.

➢ Srivastava, Rajendra K., Tasadduq A. Shervani, and Liam Fahey (1998), “Market-Based
Assets and Shareholder Value: A Framework for Analysis,” Journal of Marketing, 62 (1), 2-
18.

WEBSITES

➢ http://censusindia2001.com
➢ http://gogetpapaers.com
➢ http://ibef.org
➢ http://naukrihub.com/india/consumer-durables
➢ http://scribd.com
➢ http://shine.com
➢ http://stanforduniversity.edu
➢ http://ushainternationallimited.com

You might also like