A STUDY ON CUSTOMER SATISFICATION IN KINEMATIC TRADING &CO

PRIVATE LIMITED AT CHENNAI

CHAPTER I

INTRODUCTION

Customer is the king; this is all the more apt for today's business environment where, all
other factors remaining more or less constant, it is the value addition to the customer that is
making all the difference.

Customer satisfaction depends on the performance relative to expectations.

A key premise in customer satisfaction is understanding the needs and meeting or exceeding the
expectations of customers. Furthermore, this is done while optimally using resources. While
most companies have developed strategies to improve quality and external customer service,
internal customer satisfaction is a much neglected component of quality improvement. To this
end, it is important to emphasize that total customer satisfaction can be attained only if all
employees devoted to external customer satisfaction can work together and assist each other to
achieve the common objective, when the internal customer isn't satisfied, Relationships with the
external customer suffer. So, it is suggested to adopt customer oriented approach to keep the
internal customer satisfied and motivated, who in turn will focus their attention and energy upon
meeting the requirements of their customers, thereby maximizing the customer, thereby
maximizing the customer satisfaction.

Customer satisfaction survey is the process to monitor the satisfaction quotient of their
people. In internal satisfaction surveys therefore tracks the return on your investments in keeping
your people happy, high salaries, a quality culture, a healthy work environment.

Last, but not the least internal customer satisfaction survey helps in finding the critical
areas, which need further improvement.

NEED OF INTERNAL CUSTOMER SATISFACTION SURVEY ARISES DUE TO

FOLLOWING REASONS.
  Rapidly growing organization.
 High or growing turnover rate
 Excessive rumor's
 Highly competitive industry.
 Planned and recent organizational changes.

BENEFITS OF AN INTERNAL CUSTOMER SATISFACTION SURVEY

Ø It creates better teamwork and much improved work process.

Ø It leads to higher output and superior quality product.

Ø It decreases the turnover.

Ø Reduced overheads, and increase customer satisfaction level's inter departmental.

Ø It enhance communication and hence helped in team building, hence there is less wasted
effort caused by lack of common purpose and poor communication.

Ø A good employee feedback survey improves employee attitude and boosts morals.
INTERNAL CUSTOMER-SUPPLIER RELATIONSHIP

In an organization, from procuring an order to delivering the final product, a series of

activities takes place. There are different depts. To which these activities are assigned eg. Raw
material for production is purchased by one dep’t. And supplied to other dep’t. Where the
production initiates. Thus every debt. Play an important role of a customer and supplier as well.

The importance of a customer is well known from the maxim, “Customer is the king”.
Earlier, organizational administrators concentrated only on the satisfaction of external customers
i.e. the target market. But now it is being realized that if the internal customer is satisfied the
quality as well as the quantity is also appreciable. Higher the customer satisfaction index, higher
will be the quality of the production. This results in the satisfaction of external customers and
ultimately brings profits & prosperity to the organization. It can benefit the organization in
following ways:-

1) There will be less employee turnover.

2) Optimum utilization of available resources will take place.

3) High job satisfaction and feeling of belongingness in employees.

4) Qualitative product.

5) Least conflicts in the departments.

6) Good reputation in the market and many more benefits can be accrued.

Thus, every debt. Should ensure that the customer deptt. is satisfied with the product and services
provided by it as it will result into an overall improvement of the organization.

To serve a final customer first of all a company has to satisfy his employees. If
employees are satisfied then they will ultimately satisfy the final customer. Three types of
marketing arise. These are a follows:-

1) Internal marketing:

It is defined as when company communicates its policies to the employees. In this

understands their employees & provides good working condition, compensation and
 incentives so as to satisfy their employees. Company satisfies their employees because
they are the person in touch with the final users.

2) External marketing:

When company communicates with its final end user regarding the product
complaints & suggestions so as to satisfy them.

3) Interactive marketing:

In this employees communicate company product to its final end users.

INTRODUCTION TO CUSTOMER SATISFACTION

Today’s companies are facing their toughest competition ever. These companies can
outdo their competition if they can move from product and sales philosophy to a marketing
philosophy. We spell out in detail how companies can go about winning customers and
outperforming competitors. The answer lies in doing a better job of meeting and satisfying
customers needs. Only customer-centered companies are adept at building customers, not just
building product. They are skilled in market engineering, not just product engineering.

Too many companies think that it is the marketing/sales department’s job to procure
customers. If that department cannot, the company draws the conclusion that its marketing
people aren’t very good. But in fact, marketing is only one factor in attracting and keeping
customers. The best marketing department in the world cannot spell products that are poorly
made or fail to meet anyone’s need. The marketing department can be effective only in
companies whose various departments and employees have designed and implemented a
competitively superior customer value-delivery system.

Although the customer oriented firms seek to create high customer satisfaction, its main
goal is to maximize customer satisfaction, first the company can increase customer satisfaction
by lowering its prices, but results may be lower profits second the company might be able to
increase prices. Third the company has many stake-holders including employees, dealers,
suppliers and stock holders spending more to increase customer satisfaction might divert funds
from increasing the satisfaction of other partner. Estimate the company must operate on the
philosophy that it is trying to deliver a high level of satisfaction to the other stake-holder within
the constraints of its resources. From the past studies of last three decades we observed that the
company’s first task is to create and satisfy customers. But today’s customers face a vast array of
product and brand choice prices and suppliers.

It is generally believed that customers estimate which offer will deliver the most value
customers are like value maximizes, within the bounds of search costs and limited knowledge,
mobility income, they form an expectation of value and act on it, whether or not the offer lives
up to the value expectations affects customer’s satisfaction and their repurchase probability.

CUSTOMER VALUE

Customer delivered value is the difference between the total customer value and total
consumer cost. Consumer value is the bundle of benefits customers expect from a given product
or service. Total consumer cost it the bundle of costs consumer expect to incur in evaluating,
obtaining and using the product.

That two customers can report being “highly satisfied” for different reasons. one may be
easily satisfied most of the time and other might be hard to please but was pleased on this
occasion. Companies should also note that managers and salespeople can manipulate their
ratings on customer satisfaction. They can be especially nice just before the survey. They can
also try to exclude unhappy customers from the survey. Another danger is that if customers will
know that the company will go out of its way to please customers, some customers may express
high dissatisfaction (even if satisfied) in order to receive more concession.

DELIVERING CUSTOMER VALUE AND SATISFACTION:

The value chain is a tool for identifying ways to create more customer value. Every firm is
a collection of activities that are performed to design, produce, market, deliver and support its
product. The value chain identifies nine strategically relevant activities that create value and cost
in a specific business. These nine value-creating activities consist of five primary activities and
four support activities.
INTERNAL RECORD SYSTEM

Marketing managers rely on internal reports on orders, sales, prices, cost, inventory
levels, receivables, payables, and so on. By analyzing this information, they can spot important
opportunities and problems.
THE MARKETING INTELLIGENCE SYSTEM

A marketing intelligence system is a set of procedures and sources used by managers to

obtain everyday information about developments in the marketing environment. Marketing
managers collect marketing intelligence by reading books, newspapers and trade publications;
talking to customers, suppliers and distributors; meeting with other company mangers.

First, it can train and motivate the sales force to spot and report new developments. Sales
representatives are positioned to pick up information missed by other means.

Second, the company can motivate the distributors, retailers, and other intermediaries to
pass along important intelligence.

Third, companies can collect competitive intelligence by purchasing competitors’

products; attending open houses and trade shows; reading competitors’ publishing reports;
attending stockholders’ meeting; talking to employees, dealers, distributors, suppliers, and
freight agents; collecting competitors’ ads; and looking up news stories about competitors on the
internet.
SOURCES OF INTERNAL DATA

Sources of internal data are of two types:

1. Internal or primary data

2. External or secondary data.

INTERNAL SOURCES

Company profit-loss statements, balance sheets, sales figures, sales call reports, invoices,
inventory reports and prior research reports.
EXTERNAL SOURCES

A) Government publications

B) Periodicals and books

C) Commercial data

CHAPTER II
REVIEW OF LITERATURE
REVIEW OF LITERATURE
(Schrader 1999; Meijkamp 2000), ski rental and washing services (Hirschl, Konrad
et al. 2001).
For more than a decade now, a range of studies that address environmentally sound
consumer behaviour, e.g. car use, waste sorting, minimisation and recycling practices, have been
conducted. However, few studies evaluated consumer acceptance of the PSS concept – a
consumption based on non-ownership of physical products, see, for example, studies on car
sharing schemes
(Gudgion and Thomas 1991; McKenzie-Mohr, Nemiroff et al. 1995; Oskamp 2000).
A number of examples (mainly from the business-to-business area) exist that confirm the
potential of PSS for reducing life cycle environmental impact. It is, however, increasingly
evident that these examples are difficult to directly apply to the market of private consumers,
mainly because business customers often prefer services to product ownership (Alexander 1997),
while according to some studies it is a formidable challenge for private customers to adopt
“ownerless consumption” (Schrader 1996; Littig 1998). In addition, the environmental impacts
of such offers depend to a large extent on user behaviour. (Goodwin, Ackerman et al. 1997);
(OECD 1997); (Stern, Dietz et al. 1997); (Thøgersen and Ölander 2002).
To address this problem, changes are needed in consumption behaviour; consumption
patterns and levels; and ultimately a change in lifestyles towards more sustainable patterns.
Many authors recognise that “the health of our planet is inextricably dependent upon human
behaviour” (Geller 1995), and therefore changing human behaviour may foster and maintain
sustainability An increasing number of studies have been conducted in search for instruments
that can potentially help facilitate the shift toward more sustainable patterns of consumption,
e.g.,
Paul S. Goldner (2006) Grigoroudis, E and Siskos, Y (2009)
defines, “…a customer is any organization or individual with which you have done
business over the past twelve months”. “Customer means the party to which the goods are to be
supplied or service rendered by the supplier”. Provide definition for ‘customer’ upon two
approaches: With reference to loyalty, “A customer is the person that assesses the quality of the
offered products and services” and on process oriented approach, “the customer is the person or
group that receives the work output” (p.9).
(Hanif, Hafez & Riaz, 2010
Customer satisfaction is an evaluation of difference between prior expectations about
productand its actual performance. Customer satisfaction is how customers react towards the
state ofsatisfaction, and how customers judge the satisfaction level
(Khayyat & Heshmati,2012).
Customer satisfaction is the reaction of customer toward state of the fulfilment and
judgment ofcustomer about that fulfilled state Customer satisfaction is the expectation before
consuming a product regarding quality or it is a pre-consumption judgment or
expectation(bae,2012).Satisfaction is an outcome of purchase in which consumer compare cost
and rewards with theanticipated consequences(Maxham,2001).There is always a positive
relationship between customer satisfaction and profit maximization ofan
organization(bowen&chen,2001).
(Yuan Hu, Ching-Chan&Cheng, Hong,2010)
No one is important than customers and their satisfaction isthe ultimate objective through
improvement in services in terms of competitiveness and it savesfuture revenue plus it becomes
the cause of cost reduction in future. Customer satisfaction is the perceived feeling of a customer
for which he orshe has set standards if his expectations match with the standard he is satisfied
(Eggert&Ulaga,2002
There are number of imperial studies on specific relationship of
employee’ssatisfaction.Often the quality of the relationship is called satisfaction mirror which
gives an ideathat success of business is from satisfaction of employee which is reflected in term
of thecustomer satisfaction.Service quality is derived from employee satisfaction for example
ifemployees are satisfied it has direct effect on both customer satisfaction and service
quality(Madern, Maull, Smart&Baker,2005).There is a significant effect of customer satisfaction
on the performance of business and throughcustomer satisfaction returns of shareholders can be
increased and value of any business can be maximized(
O’sullivan,Mccalling,2010)
The most widely accepted conceptualization of the customer satisfaction concept is the
expectancy disconfirmation theory (McQuitty, Finn and Wiley, 2000). The theory was
developed by Oliver, who proposed that satisfaction level is a result of the difference between
expected and perceived performance. Satisfaction (positive disconfirmation) occures when
product or service is better than expected. On the other hand, a performance worse than expected
results is dissatisfaction (negative disconfirmation). Studies show that customer satisfaction may
have direct and indirect impact on business results. Luo and Homburg (2007) concluded that
customer satisfaction positively affects business profitability. The majority of studies have
investigated the relationship with customer behaviour patterns (Dimitriades, 2006; Olorunniwo
et al., 2006; Chi and Qu, 2008; Faullant et al., 2008). According to these findings, customer
satisfaction increases customer loyalty, influences repurchase intentions and leads to positive
word-of-mouth.

.(Campbell&Finch,2004).
Customer satisfaction with offices is resolved by specialized execution, as well as by a
many-sided set of trade procedures, for example, compelling correspondence and administration
ofdesires. Customer satisfaction have antecedent, mediated and moderated effect on personal
connectionsand enjoyable interactions Customer satisfaction with offices is resolved not just by
specialized execution, additionally by amultifaceted set of trade methodologies, for example,
powerful correspondence andadministration of desires
(Turel&Serenko,2013)
The exceptional dissemination of portable administrations has beaten the masters
‘desires.Telecommunication has turned into a heading segment, giving
commoditizedadministrations. Accordingly, the infiltration of cellular telephones is very nearly
twice as highas that of personal computers. The portable Internet guaranteed equalling
adaptability and expense productivity to the typicalweb. In any case, encounters show that the
improvement of portable web requisitions needs tothink about uncommon tests in the zones of
convenience, advancement proficiency.(Spriestersbach&Springer,2005).As interest obliges that
more provisions be re-wrote for versatile arrangements, organizationsmay think that it is
important to upgrade information offering and substance conveyance systemsto backing the
portable stage

.(Devi,Ramzan&Shander,2012).

Mobile applications and administrations progressively help us in our everyday lifecircumstances,

satisfying our needs for data, correspondence,diversion or
relaxation(Wac,Ickin,Hong,Janowski,Fielder&Dey,2011)Regardless of the reputation of flexible
demands, their execution likewise imperativeness bottlenecks remain stowed away due to a non-
attendance of detectable quality into the advantageconstrained conveyable execution
environment with possibly intricate affiliation with the procurement behaviour
(Qian,Wang,Gerbar,Mao,San,Spatscheck,2011).
Cell phones and tablets are converting the way individuals digest news, take after games,
and sitin front of the TV and films. Individuals are basically strolling around with a
worldwidenewsroom, a games enclosure, widescreen HD TV, and film theater in their pocket or
tote.Furthermore as a rule nowadays, clients have a decision by they way they need to get to the
dataand captivate with the substance(Anderson,2013)It is evident that clients are vital
stakeholders in associations and their fulfillment is a necessityto administration. Client
fulfillment has been a subject of incredible enthusiasm to associationsand specialists
indistinguishable
 CHAPTER III
RESEARCH METHODOLOGY
STATEMENT OF PROBLEM
The objective of every company would be ensuring customer satisfaction for the customer
satisfaction would create loyal customers. Measuring customer satisfaction is always a challenge,
as customer either would not disclose or sometimes do not assess their satisfaction level clearly.
Many times the customer can not specify the reasons for his satisfaction.

NEED OF THE STUDY

Growing individualistic ideas are fast penetrating the Indian minds and the joint family
and caste system are fast cracking. Company many benefits in store for them. It saves their
families from misery, chaos, and destitution. Insurance lays the foundation on which the
economic structure of life can be gradually and safely built up and sustained to the end.
Uncertainties to the individual are made certainties for the group
OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE
 The primary objective of the study is to find out the “study on the customer satisfaction
level of KINEMATIC TRADING &CO PRIVATE LIMITED AT CHENNAI

SECONDARY OBJECTIVE
 To study the socio economic variables that influences the insuring public to take-up the
policies.
 To study the awareness of insurance plans in KINEMATIC TRADING &CO
PRIVATE LIMITED AT CHENNAI
 To study the effectiveness of advertisement of KINEMATIC TRADING &CO
PRIVATE LIMITED AT CHENNAI
 To study the customer satisfaction of KINEMATIC TRADING &CO PRIVATE
LIMITED AT CHENNAI
 To study the efficiency of KINEMATIC TRADING &CO PRIVATE LIMITED AT
CHENNAI being a private organization.
SCOPE OF THE STUDY
  The scope of the study is to find out the customer satisfaction with reference to pipes.
The study covers the different aspects of customer satisfaction.
 This has been conducted in KINEMATIC TRADING &CO PRIVATE LIMITED AT
CHENNAI
 Data have been collected from customer by a personal interview.
The researcher took 3 weeks to study the entire customers’ satisfaction
ESEARCH METHODOLOGY
Once the problem has been carefully defined, the researcher needs to establish the plan that will
outline the investigation to be carried out. The research design indicates the steps that have been
taken and in what sequence they occurred. It is a systematic and purposive Investigation of facts
with an objective of understanding the customer satisfaction for KINEMATIC TRADING
&CO PRIVATE LIMITED AT CHENNAI. The methodology that will be applied by the
study has been chosen in order to acquire information and deduce conclusions about the
Customer satisfaction for KINEMATIC TRADING &CO PRIVATE LIMITED AT
CHENNAI
Themain purposes of this study is to obtain an insight into the problems faced by customers in
order to propose further recommendations for better customer satisfaction.
RESEARCH DESIGN
Research design is the arrangement of conditions for collection and analyze of data in
systematic manner that aims to combine relevance to research purpose with economy
in procedure. The research study applied here is purely descriptive.
SAMPLING TECHNIQUE
 The simple random sampling method was used for the primary data collection. Simple
random sampling is the basic sampling technique where we select a group of subjects (a
sample) for study from a larger group (a population).
 Each individual is chosen entirely by chance and each member of the population has an
equal chance of being included in the sample.
 Every possible sample of a given size has the same chance of selection; i.e. each member
of the population is equally to be chosen stage in the sampling process. There are two
types of sampling techniques.
  They are Probability sampling and Non-Probability sampling. The researcher adopted
Non- probability sampling.
NON-PROBABILITY SAMPLING
 Nonprobability sampling procedure, which does not afford any basis for estimating the p
robability that each item in the population has been include in the sample
CONVENIENCE SAMPLING
The researcher has adopted convenience sampling method for this study
DATA COLLECTION
PRIMARY DATA
The primary data for this study is collected with the objective in mind “a study on the customer
satisfaction of KINEMATIC TRADING &CO PRIVATE LIMITED AT Chennai
SECONDARY DATA
The secondary data for the study is collected with the information that is being published in
journals and magazines and from the internet.

SAMPLE COLLECTION
The data required for the study is collected with the help of questionnaire. These questionnaires
are handed over to the customers and asked to get it filled up. The data is interpreted from the
information that is incurred from the questionnaire
SAMPLE AREA
 The area where the data is collected is in and around KINEMATIC TRADING &CO
PRIVATE LIMITED AT CHENNAI
 The respondents are the people who reside KINEMATIC TRADING &CO PRIVATE
LIMITED AT CHENNAI
SAMPLE SIZE
Due to the limitation of time and scope of the study the number of respondents from which the
data is collected is 100.
RESEARCH TOOL
STOOLS OF ANALYSIS
Analytical techniques are used to obtain findings and arrange information in a logical sequence
from the data collected. After tabulation of the data, researcher used the following quantitative
techniques
1. Percentage Analysis
The data that is obtained is from the questionnaire is analyzed through percentage analysis. The
results are shown on the percentage basis.
2. Graphs
Graphical representations are used to show the results in simple form. The graphs are prepared
on the basis of data that is received from the percentage analysis
3. Chi – Square Test
The research methodology tool chi – square test is being taken as a tool in order to bring out the
final result by analyzing the factors. The end result for the study is being derived from the using
this research tool.
Chi square test is an important non parametric test and as such no test is necessary in respect of
the population. We require only the degree of freedom (implicitly of the course the size of the
sample) for using this test. As anon parametric test chi square can be used (i) as a test of
goodness to fit and (ii) as a test of independence. Since there searcher used test of independence
only the details about the independence is given below
TEST OF INDEPENDENCE
The 2 test is used to test whether there is a significant difference between the observed number
of responses in each category and the expected number of responses for such category under the
assumption of null hypothesis. It enables us to explain whether or not two attributes are
associated with each other. In order that we may apply the chi-square test either as a test to judge
the significance of association between attributes, it is necessary that the observed as well as
theoretical distribution must be adjusted to give the same total frequency as we find in case of
observed distribution. Karl Pearson developed test for testing the significance of discrepancy
between experimental values and the theoretical values obtained under some theory of
hypothesis. This is known as test of goodness of fit. Karl Pearson proved that the statistics is
used to test whether difference between observed and expected frequencies are frequent.
LIMITATIONS OF THE STUDY
 The study suffers from a few limitations, which will have to be kept in mind for the
findings to be fairly interpreted
 The recommendations are subjected to time and cost constraint
 Sampling has its own limitations, which would have resulted in minor errors
 There can be errors due to bias of respondents
 The size of the sampling was not big enough to arrive at strong conclusion. The results
should be interpreted with the above limitations in perspective.
.
CHAPTER SCHEME:
 Chapter I study about the introduction, objective ,research methodology and review of
literature
 Chapter II study about the company profile and industry profile
 Chapter III study about the data analysis and interpretation
 Chapter IV study about the finding, suggestion and conclusion