TRAINING REPORT ON

CUSTOMER SATISFACTION MEASUREMENT TOWARDS MARUTI

COMMENCED AT HIRA AUTOMOBILES, PATRAN

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY
This report details the customer satisfaction measurement towards Maruti. The consumer purchase behavior is complex. The report relates to the study of Maruti cars as part of BBA training done at Hira Automobiles, Patran. Customer satisfaction survey for Maruti Suzuki is the project conducted for Maruti Suzuki Automotive pvt. Ltd in city of Patran. Today Companies are facing toughest competition ever. The intense competition makes the companies to take the necessary steps. To retain their existing customer as well as attract new once. In the environment of advancement of the technology the companies are trying hard to keep the pace with latest development. This survey will help the company to know the customers satisfaction level and feedback of customers at the product in Patran. It will also help company to know about the competitors. This will help company to know about wants and expectation of customers. The company can also know if there are any problems faced by the customers in that region. This survey has conducted a geographical are in Patran.

CHAPTER 1 INTRODUCTION

1. INTRODUCTION
Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898, the Indian automobile industry has demonstrated a phenomenal growth to this day. Today, the Indian automobile industry presents a galaxy of varieties and models meeting all possible expectations and globally established industry standards. Some of the leading names echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of others. During the early stages of its development, Indian automobile industry heavily depended on foreign technologies. However, over the years, the manufacturers in India have started using their own technology evolved in the native soil. The thriving market place in the country has attracted a number of automobile manufacturers including some of the reputed global leaders to set their foot in the soil looking forward to enhance their profile and prospects to new heights. Following a temporary setback on account of the global economic recession, the Indian automobile market has once again picked up a remarkable momentum witnessing a buoyant sale for the first time in its history in the month of September 2009. The automobile sector of India is the seventh largest in the world. In a year, the country manufactures about 2.6 million cars making up an identifiable chunk in the worlds annual production of about 73 million cars in a year. The country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry experts have visualized an unbelievably huge increase in these figures over the immediate future. The figures published by the Asia Economic Institute indicate that the Indian automobile sector is set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and Thailand. Experts state that in the year 2050, India will top the car volumes of all the nations of the world with about 611 million cars running on its roads. The Indian Automobile industry is the seventh largest in the world with an annual production of over 11 million vehicles and exports of about 1.5 million. In 2009, India emerged as Asia's fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. 5

At present, about 75 percent of Indias automobile industry is made up by small cars, with the figure ranking the nation on top of any other country on the globe. Over the next two or three years, the country is expecting the arrival of more than a dozen new brands making compact car models. Recently, the automotive giants of India including General Motors (GM), Volkswagen, Honda, and Hyundai, have declared significant expansion plans. On account of its huge market potential, a very low base of car ownership in the country estimated at about 25 per 1,000 people, and a rapidly surging economy, the nation is firmly set on its way to become an outsourcing platform for a number of global auto companies. Some of the upcoming cars in the India soil comprise Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small car (Bajaj Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition to several others.

1.1 HISTORY OF THE AUTOMOBILE INDUSTRY IN INDIA

The economic liberalization that dawned in India in the year 1991 has succeeded in bringing about a sustained growth in the automotive production sector triggered by enhanced competitiveness and relaxed restrictions prevailing in the Indian soil. A number of Indian automobile manufacturers including Tata Motors, Maruti Suzuki and Mahindra and Mahindra, have dramatically expanded both their domestic and international operations. The countrys active economic growth has paved a solid road to the further expansion of its domestic automobile market. This segment has in fact invited a huge amount of India-specific investment by a number of multinational automobile manufacturers. As a significant milestone in its progress, the monthly sales of passenger cars in India exceeded 100,000 units in February 2009. The beginnings of automotive industry in India can be traced during 1940s. After the nation became independent in the year 1947, the Indian Government and the private sector launched their efforts to establish an automotive component manufacturing industry to meet the needs of the automobile industry. The growth of this segment was however not so encouraging in the initial stage and through the 1950s and 1960s on account of nationalization combined with the license raj that was hampering the private sector in the country. However, the period that followed 1970s, witnessed a sizeable growth contributed by tractors, scooters and commercial vehicles. Even till those days, cars were something of a sort of a major luxury. Eventually, the country saw the entry of Japanese manufacturers establishing Maruti Udyog. During the period that followed, several foreign based companies started joint ventures with Indian companies. 6

During 1980s, several Japanese manufacturers started joint-ventures for manufacturing motorcycles and light commercial-vehicles. During this time, that the Indian government selected Suzuki for a joint-venture to produce small cars. Following the economic liberalization in 1991 and the weakening of the license raj, several Indian and multi-national car companies launched their operations on the soil. After this, automotive component and automobile manufacturing growth remarkably speeded up to meet the demands of domestic and export needs. Experts have an opinion that during the early stages the policies and the treatment by the Indian government were not favorable to the development of the automobile industry. However, the liberalization policy and various tax reliefs announced by the Indian government over the recent past have pronounced a significantly encouraging impact on this industry segment. Estimates reveal that owing to several boosting factors, Indian automobile industry has been growing at a pace of about 18% per year. Therefore, global automobile giants like Volvo, General Motors and Ford have started looking at India as a prospective hot destination to establish and expand their operations. Like many other nations Indias highly developed transportation system has played a very important role in the development of the countrys economy over the past to this day. One can say that the automobile industry in the country has occupied a solid space in the platform of Indian economy. Empowered by its present growth, today the automobile industry in the country can produce a diverse range of vehicles under three broad categories namely cars, two-wheelers and heavy vehicles.

1.2 EXPORTS OF AUTOMOBILE INDUSTRY

Today, India is among the worlds largest producers of small cars. The New York Times has rated India as a very strong engineering base with an incomparable expertise in the arena of manufacturing a number of low-cost, fuel-efficient cars has encouraged the expansion plans of the manufacturing facilities of a number of automobile leaders like Hyundai Motors, Toyota, Volkswagen and Suzuki. On 22 February 2010, Hyundai motors exported its 10,00,000th car, the feat which was achieved by the firm in just over 10 years. Hyundai Motors is the largest passenger car exporter and the second largest car manufacturer in the country. In the similar lines, General Motors has 7

announced its plans to export not less than 50,000 cars made in India by the year 2011. In yet another proposal, Ford Motors is to setup a manufacturing facility costing about US$500 million in India with an annual capacity of 250,000 cars. The firm has stated that the facility will play a major part in its strategic plan to make India a hub for its global production business. In yet another significant move, Fiat motors has stated that it will source a big volume of auto components from India worth about US$1 billion. In the year 2009, India overtook China by emerging as the fourth largest exporter of cars in Asia. India has emerged as one of the world's largest manufacturers of small cars. According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuelefficient cars have resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Toyota, Volkswagen and Suzuki. In 2008, Hyundai Motors alone exported 240,000 cars made in India. Hyundai Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011. In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export. The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat also announced that it would source more than US$1 billion worth auto components from India. According to Bloomberg L.P., in 2009 India surpassed China as Asia's fourth largest exporter of cars. 1

1.3 VARIOUS SEGMENTS OF THE INDIAN AUTOMOBILE INDUSTRY

Motor cycles manufacture makes up the major share in the two-wheeler segment of the Indian automobile industry. About 50% of the motorcylcles are manufactured by Hero Honda. While Honda manufactures about 46% of the scooters, TVS produces 82% of the mopeds running on the Indian roads. About 40% of the three-wheelers manufactured in India are used for transporting goods with Piaggio manufacturing 40% of the vehicles sold in the Indian market. On the other hand, Bajaj

Kamala, T.N. & Doreswamy, A.G. (2007). Strategies for Enhancing Competitiveness of Indian Auto Component Industries

has emerged as the leader in manufacturing three-wheelers used for passenger transport. The firm produces about 68% percent of the three wheelers used for passenger transport in India. The Indian passenger vehicle segment is dominated by cars which make up about 80% of it. Maruti Suzuki manufactures about 52% of passenger cars while the firm enjoys a complete monopoly in the manufacture of multi-purpose vehicles. In the utility vehicles segment Mahindra makes up a 42% share. Tata Motors is the leader in the Indian commercial vehicles market while it holds more than 60% share. Tata Motors also enjoys the credit of being the worlds fifth largest manufacturer of medium and heavy commercial vehicles.

1.4 POTENTIAL OF INDIAN AUTOMOBILE INDUSTRY

There is a very stiff competition in the automobile industry segment in India. This has helped many to realize their dreams of driving the most luxurious cars. During the recent past, a number of overseas companies have started grabbing a big chunk of the market share in both domestic and export sales. Every new day dawns in India with some new launches by active players in the Indian automobile arena. By introducing some low cost cars, the industry had made it possible for common men to buy cars for their personal use. With some innovative strategies and by adopting some alternative remedial measures, the Indian automobile industry has successfully come unaffected out of the global financial crisis. While the automobile industry in India is the ninth largest in the world, the country emerged as the fourth largest automobiles exporter on the globe following Japan, South Korea and Thailand, in the year 2009. Over and above, a number of automobile manufacturers based in India have expanded their operations around the globe also giving way for a number of reputed MNCs to enthusiastically invest in the Indian automobile sector. Hyundai Motors has revealed its prospective plans to export 250,000 vehicles produced in its India plant by the year 2011. General Motors has also come up with similar plans. During the current fiscal year, the Indian automobile industry rode high on the resurgence of consumer demand in the country as a result of the Governments fiscal stimulus and attractively low interest rates. As a result the total turnover of the domestic automobile industry increased by about 27 per cent. A reply produced in the Lok Sabha recently has quoted data from the Society of Indian Automobile Manufacturers and has revealed that the total turnover of the Indian automobile Industry in April-February 2009-10 was 1,62,708.77 crores. 9

This is a remarkable achievement compared with the total revenue of Rs 1,28,384.53 crore reported during the same period of last fiscal year. Specifically, the segment of commercial vehicles witnessed the biggest jump in revenues by 31 per cent by reporting Rs 38,845.09 crores. During the same period, the passenger vehicle segment in the country witnessed a growth of 27 per cent over the last fiscal year by reporting a total revenue of Rs 76,545.96 crores. These figures imply a highly prospective road lying immediately ahead of the Indian automobile industry. Predictions made by Ernst and Young have estimated that the Indian passenger car market will have a growth rate of about 12 percent per annum over the next five years to reach the production of 3.75 million units by the year 2014. The analysts have further stated that the industrys turnover will touch $155 billion by 2016. This achievement will succeed in consolidating Indias position as the seventh largest automobiles manufacturer on the globe, eventually surging forth to become the third largest by the year 2030 behind China and the US. The Automotive Mission Plan launched by the Indian government has envisaged that the country will emerge as the seventh largest car maker on the globe thereby contributing more than 10 percent to the nations $1.2-trillion economy. Further, industry experts believe that the nation will soon establish its stand as an automobile hub exporting about 2.75 million units and selling about a million units to be operated on the domestic roads.

1.5 EVOLUTION AND GROWTH OF INDIAN AUTO INDUSTRY

The year 1898 saw the first car rolling out, on the streets of Mumbai. Since then Indian auto industry has witnessed a lot of change. A land of Premier Padminis, Ambassadors, scooters, temps, trucks and autos galore, India had not seen much of choice in vehicles. Only the affluent could think of owning a personal four-wheeler and the clichd image of a car followed by lots of children on a dusty road was actually true. Protectionism Early 1980s This was the pre-1980 era where the manufacturing of automobiles especially cars was subject to strict licensing, restrictive tariff structure and limited avenues for expansion. The advent of foreign technology collaboration came with the inception of Maruti Udyog in collaboration with

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Suzuki of Japan in the passenger car segment. Indian roads saw the launch of Maruti 800. It was still not very easy to own a car, first was affordability and next was a long waiting period. Liberalization 1990s In the early 1990s, with liberalization, some more Japanese manufacturers entered the twowheeler and the commercial vehicle segment in a collaborative arrangement. This period characterized joint ventures in India and the market started opening up. Automobile Industry was delicensed in July 1991 with the announcement of the New Industrial Policy. The passenger car industry was, however, delicensed in 1993. The abolition of the controls led to an avalanche of demand. The era of controls and protection came to an end. Curbs on capacity were done away with, decrease in customs and excise duties meant that a vehicles started getting affordable. The entry of foreign banks with attractive auto finance schemes helped garner a huge base of middle class population. However the market was still ruled by the sellers. Globalization 2000s Early 2000 however saw globalization of Indian auto industry. Several policy changes were introduced with focus on boosting the auto exports. A Core Group on Automotive Research and Development (CAR) was established in 2003 for encouraging R&D activities. Foreign manufactures started looking at India for sourcing auto components. The buyers started ruling the market due to the availability of choices in the form of models, price points and brands. A vibrant economy meant an increase in the GDP and per capita income. These factors turned out to be significant contributors in pushing up the domestic demand. The vast geographic spread of India attracted foreign investments. The marquee brands from all over the world started courting Indian consumers aggressively. The mature markets in the developed countries paled in comparison to the sheer numbers and the growth phase of the Indian auto industry.

1.6 LATEST DEVELOPMENTS

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked 11

by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles. Snippets

The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark. Segment Know how

Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 12

42% share. In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer. Miscellaneous Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions and insurance services to create a complete range of services required for both auto companies and customers. It will also have a multi-purpose convention centre for auto fairs and product launches.

Cars by Price Range

Under Rs. 3 Lakhs

Maruti 800, Alto, Omni Reva Ambassador Fiat Palio Hyundai Santro, Getz Chevrolet Opel Corsa Maruti Zen, Wagon R, Versa, Esteem, Gypsy Ford Icon & Fiesta Tata Indica, Indigo XL, Indigo Marina Chevrolet Swing, Optra Magnum, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Innova Tata Safari Mitsubishi Lancer, Mitsubishi Cedia Honda City ZX Mahindra Bolero Hyundai Sonata Embera Toyota Corolla Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia & Combi Honda Civic

Rs. 3-5 Lakhs

Rs. 5-10 Lakhs

Rs. 10-15 Lakhs

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Rs. 15-30 Lakh

Honda CR-V Maruti Suzuki Grand Vitara Terracan & Tucson Mitsubishi Pajero Audi A4 Opel Vectra Honda Accord Mercedes C Class Toyota Camry Audi A6, A8 & Audi TT BMW X5, 5 Series & 7 Series Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S Toyota Prado Bentley Arnage, Bentley Continental GT & Flying Spur Rolls Royce Phantom Maybach

Rs. 30-90 Lakhs

Above Rs. 1 Crore

The following links gives the complete picture of Indian Auto Industry:

Automobile History

The first auto vehicle rolled out in India at the end of 19th century. Today, India is the the 2nd largest tractor and 5th largest commercial vehicle manufacturer in the world. Hero Honda with 1.7M motorcycles a year is now the largest motorcycle manufacturer in the world.

Industry Investment

On the cost front, OEMs eyeing India in a big way to source products and components at significant discounts to home market. On the revenue side, OEMs are active in the booming passenger car market in India.

Industry Growth

The passenger car and motorcycle segment in Indian auto market is growing by 8-9 per cent. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent.

Vehicle Production

India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4wheelers manufacturer. Hero Honda is the leading 2-wheelers 14

manufacturer.

Auto Export

Passenger vehicle exports have grown over five times and two-wheeler exports have reached more than double. Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005.

Auto Companies

Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market. Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world.

Vehicle Distribution

Know about the number of vehicles registered as Transport or NonTransport in the Indian states and Union Territories.

Associations

Get all the contact details of Automobile Association of Upper India (AAUI), Automotive Research Association of India (ARAI), Automobile Association of Southern India (AASI), Automotive Component Manufacturers Association of India (ACMA) and more

Major Manufacturers in Automobile Industry

Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors 15

DC Designs Swaraj Mazda Ltd

1.7 KEY FACTORS IN VEHICLE CHOICE

When it comes to making their final decision about which vehicle to buy, consumers focus on factors such as reliability, safety, price and fuel economy. At the bottom of the list are cash-back incentives, named by fewer than half of consumers. The importance of incentives as a deciding factor has declined for the past several years, indicating that consumers today seem less interested in gimmicks when it comes to their car purchases. Where consumers are in the buying cycle can make a difference in how they rank the factors that influence their vehicle choice. For example, additional warranty coverage is important to consumers who are furthest away from the point of purchase; it was named by 69% of respondents who were 13 to 18 months from purchase. However, the number declines as consumers get closer to actually buying the car: 55% of respondents who were within three months of purchase said extra warranty coverage was important. This reflects the fact that consumers will narrow down the factors that really matter to them as they get closer to the point of purchase. Demographic factors such as age and gender accounted for some variances. For example, older consumers tend to put more emphasis on reliability and safety than do younger respondents. Those in the 50-plus age group were also more concerned with environmental issues and fuel economy. The youngest respondents were most likely to rate the ability to research information on the Internet as an important factor in their vehicle decision. Women tend to rate most of the factors as more important than do men. The difference was most pronounced for cash-back incentives, low financing, safety, environmental issues, fuel economy and additional warranty coverage.

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CHAPTER 2 REVIEW OF LITERATURE

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2. REVIEW OF LITERATURE
Parallel stagnation in the mature markets has forced multinational firms to consider in seeking opportunities outside advanced markets. Consumers are becoming more aware of products and services available in such market due to the advances in satellite communication, internet access, travel and increased education. Thus, consumers have access to wide variety of foreign products and brands from outside the country. In developing countries, preference for imported and branded product prevails rather than those local brands among consumers in developing countries (Leila Hamzaoui Essoussi and Dwight Merunka And Paul Cezanne, 2007). Research in many countries also indicated that consumers in developing countries generally prefer foreign brands. This is because they believe that local brand is more superior to foreign brand in terms of quality. (Nor Khasimah Alimana and Md Nor Othman, 2007). Other previous studies have suggested that consumers tend to have negative stereotype about foreign good and has patriotic feelings on local brand goods made in home country. It shows that consumers are more likely to prefer domestically-made goods rather than foreign-made goods. There are different views on the image that consumers associate with a given country-of-origin for a product. The first view is that the country-of-origin of the product is the picture and reputation that businessmen and consumers attach to products. It is seen as a representative products combined with the countryof-origins national characteristics, economic and political background, history and tradition. The second view is that the country image that reflects consumers general perception on the products quality and the tradition of the people in the country (Gary A. Knight, 1999). Scholars have noted that country-of-origin perceptions lead to cognitions. It also lays emphasis on specific product and marketing attributes. These were noted as the factors that could bring affect to the people in the country of where the product or services were marketed (Gary A. Knight, 1999). Brands are made of various attributes which affect the overall preference and purchase. Attributes refers to products and services that are described in terms of characteristics or features. It can be divided into intrinsic cues which is the physical attributes of a product such as colour and extrinsic cues which are product-related but not part of the physical product itself such as brand name, price, and country-of-origin. Attributes is important to consumers because those are the characteristics that deliver the benefits and values to them. In past studies, it is found that brand name and country-of-origin could affect the brand purchase decisions. Consumers often rely on brand names which are an extrinsic cue, to evaluate a product when they are facing difficulties to detect the product intrinsic qualities. It has been generally agreed 19

that country-of-origin affects the choice of product and brands. Studies show that country-oforigin it is more important than brand name cue in evaluations of foreign products and domestic vs. foreign products. However, a few studies also indicated that country-of-origin can be a very important factor in a developing country until the extent to which this is true varies by product category and ethnicity. Consumers tend to evaluate their own countrys products more favorable than foreign-made products (Nor Khasimah Alimana and Md Nor Othman, 2007). Price is often viewed as a dominant factoring guiding choice when it comes to making a purchase decision. Price in general has always been a determinant factor on consumers brand choice when selecting a product or service. It is assumed that when a consumer is facing a buying decision in a product category, consumers observe a price to take into account on their current inventory position in the category. This helps them to maximize their immediate utility that they gain from the purchase. However, when consumer faces brand with varying prices and perceived quality levels, they would have to make a choice consistent with the relative importance attached to both attributes (Nor Khasimah Alimana and Md Nor Othman, 2007). However, according to other studies, it is believed that customers often look upon on additional services provided that comes together with the product or service rather than looking on the price factor. Customers were believed to put different weights on every factor when it comes to the evaluation process. Analysis shows that customers who had experienced bad customer service tend to consider more thoroughly all aspects of the service when it comes to choice of product (Tor W. Andreassen and Line L. Olsen, 2008). In another study research, it is found that automotive companies are facing tough challenges to improve vehicle quality to achieve higher customer satisfaction in improving their business effectiveness. Customer satisfaction is one of the factors that could help the company to assess their product performance in the market to enable them to set future targets. In automobile industry, there are several measurements of satisfaction and quality and reliability is the most major factor that determines the consumers choice of vehicle (Om Prakash Yadav and Parveen S. Goel, 2008). Other studies shows that there are large quality differences among brands in several product categories. It was proven that there were quality differences within local brands, within foreign brands and between local and foreign brands in a specific product category or in different product categories when comparisons were made. Consumers with quality conscious will perceive quality as an important attribute in their brand decisions. Thus, they are willing to spend more money to pay higher price to get better quality brands. Consumers in developed countries generally believe that local brand is more superior to foreign brand in terms of quality. 20

Thus, many consumers in developed countries would prefer local brands or products (Nor Khasimah Alimana and Md Nor Othman, 2007). A consumer behavior model, Wheel of Consumer Analysis, was created by J. Paul Peter and Jerry C. Olson (1994) as a basis for explaining car buying behavior. According to the American Marketing Association, consumer behavior is defined as the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives. (Olson & Peter, 1994). Marketers can analyze am consumer behavior situation according to the three elements using the Wheel of Consumer Analysis the environment, behavior, and affect/cognition (see Figure 1). However, because these three factors interact and influence each other, no one factor can be isolated from the other. To understand consumer behavior, marketers must pay close attention to all three elements, each of which is discussed below.

Affect and Cognition: Both affect and cognition are important for understanding consumer behavior, because affect and cognition refer to the internal and psychological reactions that consumers may have in response to objects in the external environment i.e., marketing stimuli, or to their own behavior. In other words, affect concerns feelings, while cognition involves thinking. Affective feelings can be positive and favorable, or negative and unfavorable. Whether positive or negative, they will affect the decisions of consumers. The Chinese consumer presents a good example of this. When Chinese consumers go to car dealers to purchase a car, their emphasis is on the services, including the attitude of sales people and option packages. An important factor for the Chinese is that dealers are sincere when conducting business rather than focusing solely

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on the price. Many international companies have experience when dealing with the Chinese and they understand that the Chinese like to negotiate, especially on price and service. Behavior The second important component is behavior or the overt acts of consumers. While affect and cognition are concerned with what customers feel and think, behavior deals with what customers actually do. Examples of consumer behavior include watching a TV commercial, visiting a store, or purchasing a product. Chinese consumers typically pay more attention to the informational content than entertainment features of the advertisements. One study found that Chinese customers considered themselves to be sophisticated and knowledgeable in their purchasing choices. (Shen & Zhao, 1995) Environment The last component of consumer behavior concerns the environment. The environment refers to all the physical and social characteristics of the consumers' external worlds on both a macro and a micro level. Marketers need to know which level of environmental analysis is relevant for the marketing problem and choose or design strategies appropriately. The macro environment includes general environmental factors such as, the climate, demographics, economic conditions, and political system. The micro-environment includes face-to-face social interactions among smaller groups of people such as families and reference groups. (Olson & Peter, 1994) Both environments could include the objects, places, or other people who influence consumers' affect/ recognition, and behavior. In the Chinese society, friends are good reference providers, particularly in the case of large, durable goods purchases.

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CHAPTER 3

INTRODUCTION OF MARUTI SUZUKI COMPANY

3.1 3.2

HISTORY OF MARUTI SUZUKI COMPANY

TRANSFER OF TECHNOLOGY OF THE MARUTI SUZUKI COMPANY

3.3 3.4 3.5

ETHOS OF THE MARUTI SUZUKI COMPANY PRODUCTS OF THE MARUTI SUZUKI COMPANY REGISTERED AND CORPORATE OFFICE

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Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.5 million (1,500,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013.

The Company offers 15 brands and over 150 variants ranging from people's car Maruti 800 to the latest Life Utility Vehicle, Ertiga. The portfolio includes Maruti 800, Alto, Alto K10, A-star, Estilo, WagonR, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. With this Maruti Suzuki became the first company in India to introduce factory fitted CNG vehicles. In terms of number of cars produced and sold, the Company is the largest subsidiary of Suzuki Motor Corporation. Cumulatively, the Company has produced over 10 million vehicles since the roll out of its first vehicle on 14th December, 1983.

Maruti Suzuki is the only Indian Company to have crossed the 10 million sales mark since its inception. In 2011-12, the company sold over 1.13 million vehicles including 1,27,379 units of exports.

The Company employs over 9000 people (as on 31st March, 2012). Maruti Suzuki's sales and service network is the largest among car manufacturers in India. The Company has been rated first in customer satisfaction in the JD Power survey for 12 consecutive years. Besides serving the Indian market, Maruti Suzuki also exports cars to several countries in Europe, Asia, Latin America, Africa and Oceania.

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3.1

HISTORY OF MARUTI SUZUKI COMPANY : Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament,

to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MUL contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world). A license and a Joint Venture agreement were signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct1982. The objectives of MUL then were: Modernization of the Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary for economic growth Maruti created history by going into production in a record 13 months. On 14 December 1983, the then Prime Minister of India, Mrs Indira Gandhi, released the first vehicle for sale by handing over the keys of a Maruti 800 to Mr.Harpal Singh of Delhi. Volume targets were routinely exceeded, and in March 1994, we became the first Indian company to produce over one million vehicles, a landmark yet to be achieved by any other car company in India. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 4 million vehicles by April 2003. Maruti (subsidiary of Suzuki), has made profits every year since inception except 2000-01. In 2001-02, we made a profit (before tax) of Rs 1183 million. In 2002-03, the profit (before tax) rose to Rs 2821 million, recording a growth of 138.4%over the previous year. Maruti revolutionized the way Indians looked at cars. "No other car company so completely dominates its home market" - (The Economist). MUL is the first and only car company in the world to lead its home market in terms of both market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer Satisfaction studies). It is also

25

the only car company in the world to be Top ranked four times in a row (2000, 2001, 2002 & 2003).

Present Status

Manufacturing Excellence

26

They began our operations in 1983, with the first Maruti 800 rolling out from our Gurgaon plant. Over the next two decades Maruti Suzuki car models led by Maruti 800 brought about a revolution in the Indian car market. As the automobile market grew so did our production capacities, production process and infrastructure. Our scale and manufacturing today is completely different from when it began. Today, Maruti Suzuki's plants are comparable with the best in the world in terms of quality, productivity and operational efficiency.

3.2

TRANSFER OF TECHNOLOGY OF THE MARUTI SUZUKI COMPANY :

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer of contemporary technology from our partner Suzuki is a smooth process. Great stress is laid on training and motivating the people who man and maintain the equipment, since the best equipment alone cannot guarantee high quality and productivity. From the beginning it was a conscious decision to send people to Suzuki Motor Corporation for on-the-job training for line technicians, supervisors and engineers. This helps them to imbibe the culture in a way that merely transferring technology through documents can never replicate. At present 20% of our workforce have been trained under this programme
Gurgaon Facility

27

The Gurgaon facility spread over 300 acres is located around 25 kms south of Delhi. This facility houses three fully integrated plants. Together the three plants churn out around 9 lakh units annually. K- series Plant

The Gurgaon premises also houses the 'K Engine' Plant. Commissioned in 2008, the K-series engine plant has an installed capacity of over 7.7 lakh units per annum. Since the launch of the engine cumulatively, over 10 lakh K-series engines have been rolled out.

K-series engines are available in 1 litre, 1.2 litre and 1.4 litre capacities. The highly fuel efficient, technologically advanced K-series engines have been very well appreciated by our customers for their performance.

Several Maruti Suzuki cars such as the Alto K10, A-star, Estilo, WagonR, Swift, Swift Dzire, Ritz and Ertiga are powered by the K-series engines.

Manesar Facility

The 600 acre Manesar facility located around 25 kms south of Gurgaon facility was inaugurated in February 2007. The Manesar facility houses two fully integrated plants with a capacity of 5.5 lakh units annually. The third assembly line is in advanced stage of completion and is expected to be completed in the year 2013. Both manufacturing facilities are highly automated with advanced robotics, contemporary paint, weld and machining infrastructure. While the different models can be assembled on same lines, inter plant flexibility helps to increase productivity. On a single line diverse car models can be 28

made conveniently. Automatic tool changers, centralized weld control systems and advance numerical control machines help for quick change over between models.
Suzuki Powertrain

Suzuki Powertrain India Limited is a joint venture of Maruti Suzuki with Suzuki Motor Corporation, Japan.at Manesar. It manufactures world class diesel engines and transmissions for cars.

SMC holds 70 per cent equity in SPIL the rest is held by Maruti Suzuki.

3.3

ETHOS OF THE MARUTI SUZUKI COMPANY : Our employees are our greatest strength and asset. It is this underlying philosophy that has

moulded our workforce into a team with common goals and objectives. Our EmployeeManagement relationship is therefore characterised by: Participative Management. Team work & Kaizen. Communication and information sharing. Open office culture for easy accessibility To implement this philosophy, we have taken several measures like a flat organisational structure. There are only three levels of responsibilities ranging from the Board Of Directors, Division Heads to Department Heads. Other visible features of this philosophy are an open office, common uniforms (at all levels), and a common canteen for all. This structure ensures better communication and speedy decision making processes. It also creates an environment that builds trust, transparency and a sense of belonging amongst employees

29

3.4 Products

30

31

32

33

34

3.5

Registered and Corporate office

11th Floor, Jeevan Prakash, 25, Kasturba Gandhi Marg, New Delhi - 110001, -11-23316831 (10 lines) Fax: 91-11-23318754, 91-11-23713575Telex: 031-65029 MUL IN Works Palam Gurgaon Road, Gurgaon -122015, Haryana, -124-2340341-5, 91-124-2341341-5, -124-2346721 -124-2399004, 91-124-2340367 Fax: 91- 124-2341304 (ENGG), 91-124-2341404 (SUPPLY CHAIN), 91-124-2342617 (PRODN), 91-124-2341411 (P&P), 91-124-2340078 (S&D), 91-124-2341408 (SPARES), 91124-2341402 (PROJECTS),91-124-2340338 (FINANCE)

1600 11 1515 (Toll Free) --

-01515

-- accessible to mobile phone users and subscribers of Touchtel, WLL, Tata etc. Please note that the calls to this mobile number will not be Toll-Free Service presently available in Delhi, Gurgaon, Mumbai, Chennai, Bangalore and Hyderabad

Regional offices East For the States: Eastern Madhya Pradesh, Orissa, West Bengal, Bihar, Andaman & Nicobar L & T CHAMBERS 4th FLOOR,16,CAMAC STREETKOLKATAFax: 91-33-22835261 Telex: 021-8045 35 -33-22835252/53/54/60/62/63

North East For the States: All North East States403, Orian Towers,Christian Basti, G.S. Road, Guw North 1 For the States: Delhi, Rajasthan, Uttar Pradesh (NCR) and parts of Western UP, parts of Haryana New Delhi:6th Floor, Hansalaya Building, 15 Barakhamba Road, New Delhi -11-23325329/5625/5342/5369, 23736612 -0361-2344140, 2340850, 2340605 (all telefax)

Fax: 91-11-23325375 Telex: 031-65528 North 2 For the States: Haryana, Chandigarh, H.P., J&K, Punjab, Chandigarh Sector 8-C, SCO 39-40 Madhya MargChandigarh Fax: 91-172-548234Telex: 0395-545 Central For the States: Central and Eastern Uttar Pradesh, North and West Madhya Pradesh Ground Floor, Block B-1, Pickup Building, Vibhuti Khand, Gomtinagar Lucknow South 1 For the States: Tamil Nadu, Kerala and Pondicherry -0522-2720931/32/33/34 (all telefax) -172-780057,781352

36

7th Floor, Capital Towers,180, Kodambakkam High Road, Nungambakam,Chennai Fax: 91-44-8112059 South 2 For the States: Andhra Pradesh, Karnataka 204, 2nd Floor, "Embassy Classic" Vittal Mallya Road Bangalore Fax: 91-80-2996647 Area Office: Andhra Pradesh 603/2 , 6th FloorWhite House (Block -1)6-3-1192/1/1, Kundan BaghBegumpet, Hyderabad West-1 For the States: Maharashtra, Goa, Daman & Diu 602, Madhava Building, Bandra-Kurla Complex,Bandra(E), Mumbai -22-Tel: 91-22-26590165/0286/0290/0291 -40- 55250102, 55250203 -80- 2127384, 2127385, 51120017, 51120018 & 51120018 -44-28233050-53,

Fax: 91-22- 26590285Telex: 011-73522 West 2 For the State: Gujarat 505, Satkar Complex, Behind Swagat Building, Off; C G Road, Navrangpura, Ahmedabad Fax: 91-79-26408471 37 -79-26408416, 91-79-26408472,91-79-26408478

CHAPTER 4

THEORETICAL BACKGROUND

38

4.1

CUSTOMER SATISFACTION THEORY Whether the buyer is satisfied after purchase depends on the offers performance in

relation to the buyers expectations. Satisfaction is a persons fallings of pleasure or disappointment resulting from comparing a products perceived performance 9or outcome) in relation to his or her expectations. As this definition makes clear, satisfaction is a function of perceived performance and expectation. If the performance falls short of expectations, the customers, the customer is dissatisfied. If the performance matches the expectations, the customers are satisfied. If the performance exceeds expectations, the customers are highly satisfied or delighted. Many companies are aiming for high satisfaction because customers who are just satisfied still find it easy to switch when a better comes along. Those who are highly satisfied are much less ready to switch. High satisfaction or delight creates an emotional bond with the brand, not just a rational performance. The result is high customer loyalty. Xeroxs senior management believes that a very satisfied or delighted customer is worth 10 times as much to the company as a satisfied customer. A very customer is likely to stay with Xerox many more years and buy more than a satisfied customer will. There are five major factors, which affected satisfaction of the car namely: 1. Problems Experienced: Contributing to 35% of the CSI score, this factor measures the quality of the car in terms of the number of repair problems that cropped up and how often it was returned for reservice. 2. Service Advisor: Which related to ability of the services advisor to ability of the service advisor to understand the problem and his promptness in attending to the customer, contributing to 28% of the CSI Score. 3. Service Performance: Measures the quality of the service performed as well as the dealers ability to fix a problem on the first visit. It has a weightage of 26% in the CSI score and also considers how easily spare parts are available when required. 39

4. Service Timing: Affecting the score by just 6%, this time taken for a service or repair job was responsible and if the vehicle was ready at the time promised. 5. Facility Appearance: Deals with the appearance of the customer lounge at the dealership and the look and cleanliness of the service area. This factors has the least impact CSI score at Just 5%

4.2 KEY INITIATIVES FOR SATISFYING CUSTOMERS Car pickup & delivery facility for women car owners Quote Unquote: "The study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience, compared with customers who do not receive this service...." Car Safety device: Immobilizer The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were more prone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars. Setting up "Express Service Bays" & "2 - Technician Bays" As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays. These are done for customers who are hard pressed for time. Both the initiatives undertaken in this direction have helped improve customer interface and also helped increase the productivity and capacity of existing workshops. Mega Camps The company aggressively conducts 'Mega Camps' throughout the country round the year. Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc. 40

Apart from mega camps workshop camps like A/C checkup camps, PUC and general check-up camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of customer connect initiatives. Service at your Door Step through Maruti Mobile Support Another unique initiative is the door step service facility through Maruti Mobile Support. Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable. Complete Car Needs The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the existing car for a new one -- under one roof at dealerships also enhances customer satisfaction.

4.3 MARKETING AND CUSTOMER SATISFACTION Marketing has been conceptualized and accepted as an activity directed at satisfying need and wants through exchange process. The Marketing Concept is essentially the satisfaction of the customer needs through integrated marketing with the intend to satisfy the customers while earning the profit. The basic idea is that a satisfied customer will likely to repurchase, leading to increase sales and share for the firm. Integrated marketing activities amied at producing customer satisfaction include what have been referred to as 4 Ps of marketing, namely product, promotion, price & place. Generally marketing is conceder as the Primary functional area in the firm that works to satisfy the firms customers. It is true that customer satisfaction is the result of total marketing efforts, industry has generally failed to recognized the importance of customer as provided by physical distribution to the customer satisfaction and has not effectively integrated customer service with the other component of marketing mix.

41

Customers expectations: Customer is defined as anyone who receives that which is produced by the individual or organization that has value. Customers expectations are continuously increasing. Brand loyalty is a thing of past. Customer seek out products and producers that are best able to satisfy there requirements. A product does not need to be rated highest by the customer on all dimensions, only those they think are important. Customer perceived value: Customer perceived value is difference between the prospective customers evaluation of all the cost of an offering and the perceived alternatives. Total customer value is perceived monetary value of the bundle of economics, functional and psychological benefits customer expect from the given marketing offering. Delivering high customer value the key to generating high customer loyalty is to deliver high customer value. According to Michel Lanning, a company must design a competitively superior value deliver system. Customer satisfaction: Satisfaction is the persons feelings of pleasure or disappointment resulting from comparing a products perceived in relation to his or her expectations. In general, if performance of the products matches the expectations, the customer is said to be satisfied. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectations. In a competitive marketplace where business complete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. If performance exceeds expectations, the customer is said to be highly satisfied or delighted. If the performance falls short of expectations, the customer is said to be dissatisfied. Measuring customer satisfaction: Organizations are increasingly interesting in retaining existing customers while targeting noncustomers measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is

42

an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organizations products. Importance to measure customer satisfaction: While is it is critical to be in sync with the overall business objectives of the organization, it is also critical to be in tune with information requirements of users, and the value they find in services provided by the info center. In order to be perceived as integral assets to their organizations, most information professionals are concerned with expanding their activities, and serving more customers better. Building on a loyal customer or user base is the best and easiest way to grow your business. Just as companies find it costs approximately five times more to acquire new customers than it costs to keep a customer, Info Centers will find it most cost effective to grow by building on the services now provided to loyal, committed customers. To continue earning that customer loyalty, information professionals must keep tabs on the satisfaction levels and perceptions of value held by Info Center users. Strategies to develop the new business should always be balanced by strategies to retain existing business and ensure ongoing satisfaction of existing customers. There is an also real bottom-line reason for measuring customer satisfaction. Positive results from customer satisfactions studies will make a strong statement in support of continued funding for Info Center activities.

Tools for measuring Customer Satisfaction: Complaint and Suggestion Systems: A customer-centered organization makes it easy for customers to register suggestions and complaints. Companies also using web sites and e-mail for quick, two-way communication. Customer Satisfaction Survey: Responsive companies measure customer satisfaction directly by conducting periodic surveys. 43

Ghost Shopping: Companies can hire people to pose as potential buyers to report on strong and weak points experienced in buying the companys and competitors products. These shoppers can even test the companys sales personnel handle various situations. Lost Customer Analysis: Companies should contact customers who have stopped buying or who have switched to another supplier to learn why this happened. Focus Groups: Focus groups can be held on an informal or formal basis. On an informal basis, consider having a group of users meet for coffee or lunch to discuss their satisfaction with services being evaluated. On a more formal basis, a facilitator with experience in leading focus groups can work with personnel to plan questions and activities to elicit perception of value and satisfaction from participants.

Customer Satisfaction Survey: Study show that although customers are dissatisfied with one out of every four purchases, less than five percent of dissatisfied customers will complain. Most customers will buy less or switch to other supplier. Complaint levels are thus not good measure of customer satisfactions responsive companies measure customers. Satisfaction directly by conducting periodic survey. They send questionnaire or make telephonic calls to a random sample of recent customers. They also solicit buyers views on there competitor performance. While collecting customer satisfaction data, it is also useful to asked additional questions to measure re purchase intention; this will normally be high if his customer satisfaction is high. It is also useful to measure likely hood or willingness to recommend the company and brand to others. A high positive word-of-mouth score indicates that the company is producing high customer satisfaction. Customer satisfaction helps company in knowing the wants, needs and expectation of customers. It also helps to collect feedback about products. This will assist company in new product development. 44

CHAPTER 5

INTRODUCTION OF THE PROBLEM

5.1 5.2 5.3 5.4

PROBLEM INDENTIFICATION OBJECTIVE OF THE STUDY SCOPE OF THE STUDY LIMITATION OF THE STUDY

45

5.1

PROBLEM IDENTIFICATION. I have conducted the research study at Hira Automobiles, Patran. It is authorized dealer

of Maruti Suzuki Company,

Now, Hira Automobiles, Patran wants to know the customer satisfaction level of the Marutis four-wheeler with respect of the customer performance and expectation and to know the improvement under taken by close competition of Marutis four wheeler

PROBLEM DEFINATION To measure the satisfaction level of Marutis four-wheeler after sales, service provided by Hira Automobiles, Patran with special concentration in Patran city within two-month special research study.

5.2

OBJECTIVE OF THE STUDY : To find out customer performance and expectation. To know customer bahavior, habit.attudes toward Marutis four wheeler To understand the position of the competitors To determine customer satisfaction level of Marutis four wheeler To know the reason why customer buy Marutis four wheeler To know the purchasing criteria of customers

5.3

SCOPE OF THE STUDY.: In today, we have to make each and every step with full care because competition hit the

market at anytime.

46

So for future growth and surviving in competition. this study is useful to know satisfaction level if the customer of Marutis four wheeler and its competitors. The customer of Marutis four wheeler can also know the satisfaction level and its competitors. Customer satisfaction level can be known from this study and find out barriers. Market potentiality can also be judge from this study Company can improve the market share through satisfaction of customer.

5.4

LIMITATION OF THE STUDY.: A good report describes and explains the results derived at through the study. As a result,

whatever limitation occurs in the study, also creep into the report and become the limitations of the report. In Short, it can be said that a study is as accurate as the limitations of its study. Every project has its own limitations and so did mine. I have listed a few of the limitation of my studies below:

1. The survey was limited only to the physical boundaries of the city of Patran and there by limited in the population studied. 2. The time period of the survey being only two months, it was not possible to conduct a highly in-depth and detailed study, which in turn might affect the findings. 3. Different people have different thought process and different attitudes. As a result, their manner of answering the questions of the study differs. Therefore, the answers received were sometimes good while sometimes they were negative. 4. Due to unavoidable circumstances, the study had to be stopped mid-way for some time.

47

CHAPTER 6

RESEARCH METHODOLOGY

6.1 6.2 6.3 6.4

THEORY OF RESEARCH METHODOLOGY

RESEARCH DESIGN METHOD Of DATA COLLECTION SAMPLING PLAN

48

6.1

THEORY OF RESEARCH METHODOLOGY: This is chapter explain various methods & techniques used in this research study with

their suitability. This part of the research report is very much important because it explain the methods; concept & procedures followed by the researcher study the problem. It is helping to the reader to understand whole the easily. As marketing research does not address itself to basic or fundamental question. It does not quality as basic research on the country, It tackles problem, which seem to have immediate commercial potential. In view of this major consideration. Marketing research should be regarded as applied research. We may also say that marketing research is of both types-problem solving and problem oriented. Marketing research is a systematic and objective study of problem pertaining to the marketing of goods and service. It may be emphasized that is it not restricted to any particular area of marketing but is applicable to all its phases and aspects The American Marketing Association (AMA) has defined Marketing research follows Marketing research is the function which the consumer, Identify and define marketing opportunities &problems; generate, refine and Evaluate marketing actions; monitor marketing performance; and improve Understanding of a market as a process. Marketing Research specified the information required to Address these issues; designs the method for collecting information. Managers and Implements the data collection process; analyses the results; the Communications the findings and their implications.

6.2

RESEARCH DESIGN: A research design in the specification of methods and procedures for acquiring the

needed information it is the over all operational pattern of frame work of the project that stipulates what information is to be collected from which sources by what procedures To achieve objectives of my project study I have selected the exploratory research & also the causal research.

49

6.3

METHOD Of DATA COLLECTION : There are two types of data Primary data: -

Primary data is the data which is collected by the research at first hand.

Sources To collect primary data the questionnaire system is uses through market survey. Structured non disgusisd questionnaire is applied in which question question are listing in prearranged on paper and where the object of inquiry is revealed to the respondent I have contected the customer and interviwed them by personally & by telephones.The analysis of the collected data through questionnaire is given in the later part of the project. Secondary data Secondary data whether internal or external is the data already collected by others for propose other then solution of the problem at hand Secondary sources are Internal sources: Internal guide (Mr. Neeraj Goyal, Asst. Professor, Multani Mal Modi College, Patiala) Mr. Mangal Pal Goel, Sales executive of the Hira Automobiles, Patran External sources Various marketing books www.maruti udhyog.com PRE-TESTING A pre- testing is small-scale replica of the main study. it dresses a rehearsal and provides guidance on the following matter. 1. The adequacy of the sampling frame to be followed for the survey. 2. It helps the researcher in selecting the data collection method. 50

3. It gives prior knowledge about the population to be sampled. 4. The pre0testing helps the researcher in checking the validity of the questionnaire and in redesigning of the same. 5. It also provides training to the researcher for interviewing.

6.4

SAMPLING PLAN : A number of decision & task are include in sampling and it is the procedure required

right from defining a population selection of sample element. Define the population: The population id defined in terms of Element, Sampling units, Extent ,Time Element: -Owner of Maruti four wheeler Sampling unit: -Businessman, Professional, salaried, student. Extent: - Patran city

Sampling Frame I have taken whole Patran city as sample frame for conducting research.

Sampling Method I have used proportionate random sampling to select the respondent from the entire population

I have conducted a survey by interviewing 300 respondents. Select randomly, it is helpful in finalization of the questionnaire and also in knowing standard error or core element. How this survey has became useful to me in deciding the sample size

51

CHAPTER 7 DATA ANALYSIS & INTERPRETATION

7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 OVERALL SATISFACTION LEVEL OF SWIFT OVERALL SATISFACTION LEVEL OF ALTO OVERALL SATISFACTION LEVEL OF ZEN OVERALL SATISFACTION LEVEL OF WAGON-R OVERALL SATISFACTION LEVEL OF OMNI OVERALL SATISFACTION LEVEL OF DZIRE SATSFACTION LEVEL ACCORDING TO OCCUPATION SATSFACTION LEVEL OF SWIFT V/S FEATURES SATSFACTION LEVEL OF ZEN V/S FEATURES SATSFACTION LEVEL OF ALTO V/S FEATURES SATSFACTION LEVEL OF WAGON R V/S FEATURES SATSFACTION LEVEL OF OMNI V/S FEATURES SATSFACTION LEVEL OF DZIRE V/S FEATURES

52

7.1

OVERALL SATISFACTION LEVEL OF SWIFT : The total numbers of the respondents are 75 in the collection of the data so according to

that the data is classified are as below in the table:

During sales During Delivery of car Discussion Question No of Respondents 53 15 07 00 75 In (%) 70% 20% 10% 00% 100% No of Respondents 55 12 05 03 75 In (%) 73% 16% 07% 04% 100%

Level of satisfaction of product No of Respondents 56 12 07 00 75 In (%) 75% 16% 09% 00% 100%

Excellent Good Average Poor TOTAL

Comment : Above graph shows that the customer are highly satisfy because of the maintenance of the car is low compared to other car. some percentage of car owner is average satisfy because of the ride. handling and braking of the car.

53

7.2

OVERALL SATISFACTION LEVEL OF ALTO : The total number of the respondent is 50 in the collection of the data so according to that

the data is classified are as below in the table:

During sales During Delivery of car Discussion Question No of Respondents 38 08 04 00 50 In (%) 76% 16% 08% 00% 100% No of Respondents 40 05 05 00 50 In (%) 80% 10% 10% 00% 100%

Level of satisfaction of product No of Respondents 35 10 03 02 50 In (%) 70% 20% 06% 04% 100%

Excellent Good Average Poor TOTAL

Comment : Above graph shows that the customer of the alto are average satisfy because of the fewest problem on feathers and control of the in this car

54

7.3

OVERALL SATISFACTION LEVEL OF ZEN : The total number of the respondent is 50 in the collection of the data so according to that

the data is classified are as below in the table:

During sales Discussion Question No of Responden ts 40 08 02 00 50

During Delivery of car No of Responden ts 45 04 01 00 50

Level of satisfaction of product No of Responden ts 38 08 03 01 50 In (%) 76% 16% 06% 02% 100%

In (%)

In (%) 90% 08% 02% 00% 100%

Excellent Good Average Poor TOTAL

80% 16% 04% 00% 100%

Comment : Above graph shows that the customer are highly satisfy because the three categories namely vehicle interior,trasmission and engine

55

7.4

OVERALL SATISFACTION LEVEL OF WAGON-R : The total number of the respondent is 60 in the collection of the data so according to that

the data is classified are as below in the table:

During sales Discussion Question No of Respondent s 40 15 05 00 60

During Delivery of car No of Respondent s 45 10 05 00 60 In (%) 75% 17% 08% 00% 100%

Level of satisfaction of product No of Respondent s 55 03 02 00 60 In (%) 92% 05% 03% 00% 100%

In (%)

Excellent Good Average Poor TOTAL

67% 25% 08% 00% 100%

Comment : Above graph shows that the customer of wagon r are highly satisfy because of true testament to the culture of continuous improvement which Suzuki has put in at Maruti. It has performed particularly well are vehicle exterior, followed by engine

56

7.5

OVERALL SATISFACTION LEVEL OF OMNI : The total number of the respondent is 50 in the collection of the data so according to that

the data is classified are as below in the table:

During sales Discussion Question No of Respondents 35 10 05 00 50 In (%) 70% 20% 10% 00% 100%

During Delivery of car No of Respondents 40 08 02 00 50 In (%) 80% 16% 04% 00% 100%

Level of satisfaction of product No of Respondents 30 10 03 07 50 In (%) 60% 20% 06% 14% 100%

Excellent Good Average Poor TOTAL

Comment : Above graph shows that the omni car customer are average satisfy Because of the problems in ride,handlingand seats. of this vehicles

57

7.6

OVERALL SATISFACTION LEVEL OF DZIRE : The total number of the respondent is 15 in the collection of the data so according to that

the data is classified are as below in the table: During sales Discussion Question No of Responden ts 10 03 02 00 15 In (%) 67% 20% 13% 00% 100% During Delivery of car No of Responden ts 12 02 01 00 15 Level of satisfaction of product No of Responden ts 11 02 02 00 15 In (%) 74% 13% 13% 00% 100%

In (%)

Excellent Good Average Poor TOTAL

80% 13% 07% 00% 100%

Comment : Above graph shoes that the owner of Dzire are highly satisfy because. Owners reported the greast improvement on two categories, namely Features and control and engine. The Dzire also achieved segment best score and achieves overall leadership of the Entry Midsize segment

58

7.7

SATSFACTION LEVEL ACCORDING TO OCCUPATION:

No. Respondent Occupation Which is satisfy In percentage

Businessman

180

60%

Professional

45

15%

salaried

60

20%

Student

15

5%

Total

300

100%

Comment: Above graph shows that the business is highly satisfy in the Marutis four vehicle Because of the maintenance of the car is very low compare to other and the service of the company is excellent after sales

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7.8

SATSFACTION LEVEL OF SWIFT V/S FEATURES: The total numbers of the respondents are 75 in the collection of the data so according to

that the data is classified are as below in the table. FEATURES MPFI ENGINE 60 EXCELLANT (80%) 7 GOOD (10%) 6 AVERAGE (8%) 2 POOR (2%) 75 Total (100%) (100%) (100%) (100%) (100%) (0%) 75 (2%) 75 4%) 75 (1%) 75 (3%) 0 (8%) 1 10%) 3( (4%) 1 (10%) 4 15%) 6 (18%) 7( (10%) 3 (85%) 7 (75%) 12( (70%) 12 85%) 7 MILEAGE PICK UP OUTLOOK RIDING

64

56

53

64

Comment: The SWIFT owner reported the maximum number of person with the ride; handling and bracing perform which leads to the decline the owner satisfaction.

60

7.9

SATSFACTION LEVEL OF ZEN V/S FEATURES : The total number of the respondent is 50 in the collection of the data so according to that

the data is classified are as below in the table: FEATURE MPFI ENGINE EXCELLANT (In%) GOOD (In%) AVERAGE (In%) POO(In%)R 38 (75%) 7 (15%) 10 (5%) 0 (0) 50 Total (100%) (100%) (100%) (100%) (100%) OUTLOO K 45 (90%) 4 (8%) 1 (2%) 0 (0%) 50

MILEAGE

PICK UP

RIDING

43 (85%) 5 (10%) 2 (5%) 0 (0%) 50

43 (88%) 4 (7%) 2 (3%) 1 (2%) 50

47 (95%) 4 (7%) 1 (2%)_ 0 (0%) 50

Comment : Above graph Shows that the owner of Zen is highly satisfy because of the its Vehicle interior, engine and the outlook of the car.

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7.10

SATSFACTION LEVEL OF ALTO V/S FEATURES : The total number of the respondent is 50 in the collection of the data so according to that

the data is classified are as below in the table:MPFI ENGINE 35 (70%) 5 GOOD (In%) (10%) AVERAGE (In%) POOR (In%) 6 (12%) 4 (8%) 50 Total (100%) (100%) (100%) (100%) (100%) (12%) 5 10%) 1 (3%) 50 (15%) 2 (4%) 1 (1%) 50 (8%) 2 (4%) 1 (1%) 50 (15%) 4 (8%) 1 (2%) 50 OUTLOO K 43 (80%) 4

FEATURES

MILEAGE

PICK UP

RIDING

EXCELLANT (In%)

37 (75%) 6

40 (80%) 7

38 (75%) 7

Comment: Above graph shows that the Alto owner reported the fewer problem in feature so alto car owner is satisfy.

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7.11

SATSFACTION LEVEL OF WAGON R V/S FEATURES : The total number of the respondent is 60 in the collection of the data so according to that

the data is classified are as below in the table:MPFI ENGINE 51 (85%) 7 (12%) 2 (3%) 0 (0%) 60 (100%)

FEATURES

MILEAGE

PICK UP

OUTLOOK

RIDING

EXCELLANT (In%) GOOD (In%) AVERAGE (In%) POOR (In%) TOTAL (In%)

47 (79%) 5 (11%) 7 (9%) 1 (1%) 60 (100%)

54 (90%) 5 (8%) 1 (2%) 0 (0%) 60 (100%)

57 (95%) 2 (3%) 1 (2%) 0 (0%) 60 (100%)

54 (90%) 5 (8%) 1 (2%) 0 (0%) 60 (100%)

Comment: Above graph shows that the owner of the wagon r is highly satisfy with its features like new outlook car, pickup and engine of the car.

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7.12

SATSFACTION LEVEL OF OMNI V/S FEATURES : The total number of the respondent is 50 in the collection of the data so according to that

the data is classified are as below in the table MPFI ENGINE 43 (85%) 6 12%) 1 (2%) 1 (1%) 50 (100%)

FEATURES

MILEAGE PICK UP OUTLOOK RIDING

EXCELLANT (In%) GOOD (In%) AVERAGE (In%) POOR (In%) Total (In%)

40 (80%) 7 (15%) 19 (2%) 1 (1%) 50 (100%)

35 (70%) 7 (15%) 5 (10%) 3 (5%) 50 (100%)

42 (85%) 5 (10%) 2 (4%) 1 (1%) 50 (100%)

35 (70%) 7 (15%) 5 (10%) 3 (5%) 50 (100%)

Comment: The above graph shows that the owners are average satisfy with its features because of the ride, handling and braking and seats problem

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7.13

SATSFACTION LEVEL OF DZIRE V/S FEATURES: The total number of the respondent is 15 in the collection of the data so according to that

the data is classified are as below in the table MPFI ENGINE 12 (80%) 2( 13%) 1 (7%) 0 (0%) 15 TOTAL (100%) (100%) (100%) (100%) (100%) OUTLOO K 12 (80%) 2 (13%) 1 (7%) 0 (0%) 15

FEATURES

MILEAGE

PICK UP

RIDING

EXCELLANT (In%) GOOD (In%) AVERAGE (In%) POOR (In%)

11 (75%) 3 (16%) 2 (8%) 0 (0%) 15

13 (90%) 1 (8%) 1 (7%) 0 (0%) 15

12 (80%) 2 (15%) 1 (4%) 0 (0%) 15

Comment: The above graph shows that the owner of Dzire are highly satisfy because of the greatest improvement on the features, control. And engine.

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CHAPTER 8

FINDINGS & CONCLUSION

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FINDINGS
Based on my observation during the entire two months project, I list my findings as under: Maruti Suzuki is a name India has loved and trusted for 20 years There are around 40 lakh satisfied Maruti Suzuki owners on the road today. Maruti Suzuki sells more cars than all others put together. New Maruti Suzuki cars are built with technology other cars just cant match. Maruti Suzuki customers enjoy benefits few other car companies can offer. Maruti Suzuki owners are more satisfied with their cars than anyone else. Now Maruti Suzuki vehicles have advanced new MPFI (Multipoint Fuel Injection) technology that works with the unique 16 X 4 Hypertech engine to give you unmatched performance. Only Maruti Suzuki has a nation wide network of over 1900 service station in more than 900 towns. From Kashmir to Kanyakumari. Better fuel economy. Lower emission levels easily meet euro 2 norms. Modern advanced repairing equipment and tools. Maruti Suzuki spares are easily available across the length and breadth of the country. Just dial 9622 9622 00 for a 24-hour on-road breakdown service in many cities. No other car company can match this.

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CONCLUSION
It has been observed that most customers are satisfied with pre sales services similarly most of these customers are dissatisfied with the post sales service which is the matter of concern for the company. Maruti Suzuki needs to improve some parts of products specifically the interiors. High customer satisfaction level helps the company to retain its existing customer as well as generate new customer through word to mouth publicity. Customer satisfaction index is a good tool to make improvements in the products and services of the company. And therefore should utilize carefully & kept as confidential as possible.

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CHAPTER 9

SUGGESTIONS

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SUGGESTION

After conducting the survey and knowing the market, I realized that:

o The company should keep in mind the need of young generation. o Company should improve the promotion strategy of product. o Company should improve the promotion strategy of Add-on services. o It will be beneficial for the company to make the warehouse near to the showroom and there should be roof facility, adequate security facility in the warehouse.

o The Company should know its customers satisfaction level throughout doing periodic surveys. Periodic surveys can treat customer satisfaction directly.

o Company should improve/upgrades its employees product knowledge, market situation, and its competitors knowledge by giving proper training to employee. o Company should upgrade or innovate its new product.

o The Company should not only concentrate on the customer satisfaction but also the company led to monitor their competitors performance in their areas of operations. o The Company should make changes according to the other competitors & according to the customers expectations.

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BIBLIOGRAPHY

71

BIBLIOGRAPHY
BOOKS AND JOURNALS
Braun, C. C., & Silver, N. C. (1995). "Interaction of signal word and colour on warning labels: Differences in perceived hazard and behavioural compliance," Ergonomics, 38(11), 2207-2220. Brown, M. G., Lee, J. Y., & Seale, J. L Jr. (1994). "Model choice in consumer analysis: Taiwan, 1970-89," American Journal of Agricultural Economics, 76 (3), 504. Derrick, F. & Linfield, A. (1980). "The family life cycle: An alternative approach," Journal of Consumer Research, 7 (2), 214-217. Gary A. Knight, Consumer preferences for foreign and domestic products, JOURNAL OF CONSUMER MARKETING, VOL. 16 NO. 2 1999 Kasper, H. (1988). "On problem perception, dissatisfaction, and brand loyalty," Journal of Economic Psychology, 9 (3), 387-397. Om Prakash Yadav and Parveen S. Goel, Customer satisfaction driven quality improvement target planning for product development in automotive industry, O.P. Yadav, P.S. Goel / Int. J. Production Economics 113 (2008) 9971011 Olson, J. C., & Peter, J. P. (1994). Understanding Consumer Behavior. Burr Ridge, IL: Richard D. Irwin, Inc. Remich, N. C Jr. (1995). "China or bust," Appliance Manufacturer, 43 (4), 68. Shen, F. & Zhao, X. (1995). "Audience reaction to commercial advertising in China in the 1980s," International Journal of Advertising, 14 (4), 374-390. Tseng, O. (1992). "Are consumers ready for plastic money?" Free China Review, 42(9), 46. Tor W. Andreassen and Line L. Olsen, The impact of customers perception of varying degrees of customer service on commitment and perceived relative attractiveness, Managing Service Quality Vol. 18 No. 4, 2008 pp. 309-328 q Emerald Group Publishing Limited 09604529 DOI 10.1108/09604520810885581 Nor Khasimah Alimana and Md Nor Othman, Purchasing Local and Foreign Brands: What Product Attributes Metter?, Proceedings of the 13th Asia Pacific Management Conference, Melbourne, Australia, 2007, 400-411 Leila Hamzaoui Essoussi and Dwight Merunka And Paul Cezanne, Consumers product evaluations in emerging markets: Does country of design, country of manufacture, or brand 72

image matter?, International Marketing Review Vol. 24 No. 4, 2007 pp. 409-426 q Emerald Group Publishing Limited 0265-1335 DOI 10.1108/02651330710760991

INTERNET RESOURCES
http://drop-of-thoughts.blogspot.com/2010/09/literature-review-consumers-perception.html http://www.sbaer.uca.edu/research/swma/2000/17.pdf http://www.driveinside.com/compare-cars/3270-3173/0/summary/ http://www.autonagar.com/newcars/spec-compare-car-specification-maruti-swift-hyundaii10-maruti-ritz-781-763-2641.html http://rightindicator.com/comparison-between-ritz-i10-and-swift/

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ANNEXURE: QUESTIONNAIRE
Name: ____________________ 1. What is the overall satisfaction level of Swift? During sales Discussion Excellent Average Good Poor 2. What is the overall satisfaction level of Alto? During sales Discussion Excellent Average Good Poor 3. What is the overall satisfaction level of Zen? During sales Discussion Excellent Average Good Poor 4. What is the overall satisfaction level of Wagon-R? During sales Discussion Excellent Average Good Poor During Delivery of car Level of satisfaction of product During Delivery of car Level of satisfaction of product During Delivery of car Level of satisfaction of product During Delivery of car Level of satisfaction of product

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5. What is the overall satisfaction level of Omni? During sales Discussion Excellent Average Good Poor 6. What is the overall satisfaction level of Dzire? During sales Discussion Excellent Average Good Poor 7. What is your profession? Businessman Professional Salaried Student During Delivery of car Level of satisfaction of product During Delivery of car Level of satisfaction of product

8. What is the overall satisfaction level of Swift and its features? MPFI Engine Excellent Average Good Poor 9. What is the overall satisfaction level of Alto? MPFI Engine Excellent Average Good Poor 75 Mileage Pick up Outlook Riding Mileage Pick up Outlook Riding

10. What is the overall satisfaction level of Zen? MPFI Engine Excellent Average Good Poor 11. What is the overall satisfaction level of Wagon-R? MPFI Engine Excellent Average Good Poor 12. What is the overall satisfaction level of Omni? MPFI Engine Excellent Average Good Poor 13. What is the overall satisfaction level of Dzire? MPFI Engine Excellent Average Good Poor Mileage Pick up Outlook Riding Mileage Pick up Outlook Riding Mileage Pick up Outlook Riding Mileage Pick up Outlook Riding

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