CHAPTER-1

CUSTOMER SATISFACTION TOWARDS BAJAJ

TWO WHEELERS
INTRODUCTION:
Marketing “is the process of planning and executing the conception, pricing,

promotion and distribution of ideas goods and services to create exchange that satisfy

individual and organizational goals” today marketing must be under-stood not in the old

sense of making sale-telling and selling. The marketing has changed from Barter

concept to new sense of satisfying customer needs. The objective of all marketing effort should

maximize customer satisfaction. An individual firm’s success depends not only on how well

it has performs ,but also on how well its entire supply chain and marketing channel competes

with competitors channels. The customer is the key. Therefore the satisfaction of consumer is the

prime objective of an enterprise.

SATISFACTION:
Satisfaction is a person’s feeling of pleasure of disappointments resulting from

comparing a product’s perceived performance in relation to his or her expectations. Many

companies are aiming for high satisfaction because customers who are just satisfied still find

it easy to switch when better offer comes along.

[1]
CUSTOMER SATISFACTION:
Customer satisfaction is both a goal and a marketing tool

.Customer’s first interaction with the product occurs at the retail level. The

availability of the product, their display, spacing etc, influence the customers purchase

decision to a large extends. Retailers also act as an important link between consumers and the

company. They are closer to the customers know his wants and needs better than the

company. This information is highly useful to the company in catering the

consumer’s wants and needs.

This study on Customer Satisfaction of Bajaj two wheeler is a step

To understand the factors which are effective for the success of the product. 50

samples are taken for this study to understand the satisfaction level of the customers.

Organizations are increasingly interested retaining existing customers

While targeting non-customers measuring customer satisfaction provides an indication of how

successful the organization is at providing products and /or services to the market place.

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the

state of satisfaction will very from person to person and the product/service to product/service.

The state of satisfaction depends on a number of both psychological and physical variables

which chorrelate with satisfaction behaviors such as return and recommended rate. The level of

satisfaction can also v e r y d e p e n d i n g o n o t h e r o p t i o n s t h e c u s t o m e r m a y h a v e

a n d o t h e r p r o d u c t s against which the customer can compare the organizations products.

[2]
CUSTOMER SWITCHING:
The switching path is triggered by a factor that changes the present

relationship between customer and supplier by somehow making the customer aware

of different reasons for switching. This initiating factor affects the entire

switching path. There are three different triggers: external, internal, and situational.

In the trigger, the company that the customer has switched to has served as some kind of

comparative object vis-a-vis the company with which he has broken the rela tionship.

The new company has perhaps changed or improved its business con-

cept, is a new competitor, or simply can offer something that the former company could not.

During the process, the customer begins to consider a change and becomes sensitive to the

various factors that finally lead to a switch. The time span can vary and is here termed process

duration. The main reason for switching, according to the customer, is called the push

factor. There are also tip factors, which alone cannot speed up or extend the switching

process but which can expedite or delay the path that the customer goes through while

considering a change. Even other factors could be classified as causes for switching, since the)

alone could lead to switching and not only be considered trip factors. These factors are not

classified as switching causes but as sub-push factors because the respondents do not

consider them to be the main reason for switching. Even if a customer has switched,

there can be reasons why he could consider returning to the first company, by the force of a

pull factor. Even if a customer breaks the relationship with a company, it is important to stress

that the break should be handled professionally and end on friendly terms. The former

customer is otherwise likely to spread negative word-of-mouth

[3]
CUSTOMER EXPECTATION:
Customer satisfaction is largely a reflection of the expectations and experi-

ences that the customer has with a product or service. However expectation s also

reflect that influences the evaluation of the product or service. When we make major

purchases, we research the product or service and gain information from the advertising,

salespersons, and word-of-mouth from friends and associates.

This information influences our expectations and ability to

evaluate quality, value, and the ability of the product or service to meet our needs. In meeting

customers' requirements and measuring customers' satisfaction indexes, customer

perception should be definitely a key consideration. Qualified services in the operation

execution layer, technical management layer and business development layer are

necessary. However, it is even more important to efficiently understand customer expectations

and make efforts to exceed their expectations. Therefore, customer perception management

becomes a central topic. Frankly speaking, among all indexes in customer satisfaction

management, the biggest challenge is customer perception management, or customer percep-

tion satisfaction.

[4]
TITLE OF THE STUDY:

CUSTOMER SATISFACTION TOWARDS BAJAJ

TWO WHEELERS

[5]
 CHAPTER 2

IMPORTANCE OF MARKETING
As consumption initiates production, the producer should identify the mo-

tives, which promote consumers to purchase. This helps him to offer a total product that can

satisfy the consumer’s needs. Thus consumer’s inner motives such as fear, pride, fashion,

profession, purchasing power are the things which decide the buying pattern. Today’s

marketers have also released the buying power of the consumers and they are constantly

trying to adopt their product suite the ever changing needs of the customers. Its importance is

 To create awareness about new products in the minds of the customer.

 To attract the customers to buy the products

 To increase the sales

THE OPERATIONAL CONCEPTS OF MARKETING:MARKET:

“A market consists of all the potential customers sharing a particul

ar need or want who might be willing and able to engage in exchange of products to satisfy the

need or want”.

MARTKETING:
“Marketing is social and management processes by which individuals and

group obtain what they need and what they want through creating offering

and exchange products of value with other”.

[6]
MARKET SEGMENTATION:
Market segmentation is a method for achieving maximum market

response from limited marketing resources by recognizing difference in the response char-

acteristics of various parts of the market. In the sense market segmentation is the strategy of

divide and conquer i.e. dividing markets in order to conquer items for different group of

customer there exist different sets of marketing strategy .segmentation strategy is an answer to

the question, to whom should, one sell his product and what he sell them? It is a

strategic choice concerned with doing the right things as opposed to tactical choice, doing things

right. It enables the marketer to give better attention to the selection of customers and offer

an appropriate marketing mix for each segment or a group of buyer having similar demand.

CORE CONCEPT OF MARKETING:

THE PRODUCT CONCEPT:

The product concept hold that consumer will favor those product that offer the

most quality, performance or innovation focus their energy on making superior product and

improving them over time.

THE SELLING CONCEPT:

The selling concept holds that consumer if left alone, will ordinary not

but enough of the organization product. The organization must therefore undertake an

aggressive selling promotion effort.

[7]
THE MARKTING CONCEPT:

The marketing concept holds that the keys to achieving the

Organization goals consist in determining the need and wants of target market and delivering

desires satisfaction more effectively and efficiently than competitors.

MARKETING MIX:

“Marketing mix is a combination of 4p’s such as product, price, promotion and

place (distribution channel) to deliver standard goods and services”.

4 P’S OF MARKETING:PRODUCT:

PRODUCT:
A product can be anything that can be offered to a market for attention acquisition

use or consumption that might satisfy a need or want.

PRICE:
Economist’s defines price as “the exchange value of a product or reserve always

impressed in terms of money”.

[8]
PROMOTION:
Promotion may be defined as “the various activities that the company undertakes to

promote its products to the target market”.

DISTRIBUTION CHANNEL:
it can be defined as “the set of marketing institution participating in marketing

activities involved in the movement or the flow of good sand services from the primary product

to the ultimate consumer”.

TYPES OF BUYING BEHAVIOR:

COMPLEX BUYING BEHAVIOR:

The consumers go through complex buying behavior when they are highly

involved in a purchase and aware of significant among brands. Consumer are in -

volves when the product is expensive, brought infrequently risky and highly self expressive.

DISSONANCE REDUCING BUYING BEHAVIOR:

Sometimes the consumer is highly involved in the purchase but sees the little

difference in the product & service. The high involvement is again on the fact

that the purchase is expensive infrequently risky.

HABITUAL BUYING BEHAVIOR:

Many products are bought under conditions of low consumer involvement and

theabsence of significant product difference, consumer do not search extensivelyfor information

about the product, evaluate their characteristics and make weightly decision on which

product to buy.

[9]
VARIETY SEEKING BUYING BEHAVIOUR:
Some buying situation is characterized by low consumer involvement

but significant product difference. Here consumer is often observed to do a lot

of product switching. The buyer’s behavior is influenced by four major factor cultural(cultural,

sub cultural,& social class),social(reference group, family,& roles & status )personal ( age & life

stage, occupation, economic circumstances. Life styles, personality, self concept &

psychological (motivation, perception learning& belief and attitude). All of these provide clues

to know reach and serve buyers more effectively.

NECESSITY OF CUSTOMER SATISFACTION:

The emerging consumer movement necessities markets to understand consumer

behavior their needs, expectations and problems. It will be easier in exploiting

marketing opportunities meeting the challenges of the market. Thus marketers must try

to offer the product wanted by the customers at the price he is prepared to pay, through

distribution channel convenient to him and with a proper promotional activities. A

consumer by nature is extrovert, a study of consumer behavior helps to formulate

marketing program mix and policies.

FACTORS:
To understand consumer behavior on the eventual buying decisions, the major factors

have to be clearly understood and analyzed. They are:

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1. Buyer characteristics:
It deals with the individuals, personal, psychological, cultural and

Social characteristics.

2. Personal characteristics:
It deals with the factors like age, sex, occupation, lifestyles, economic

and financial conditions, culture which affects the consumers purchase behavior.

3. Seller characteristics:

Influences the buying decision factor lies in the image of the facilities

offered by the companies or retail out lets etc affects the choice of the buyers. The buyers

decision will be based on the attitudes, behaviors’ and characteristics of the seller or sales

person.

4. Situational characteristics;

This also plays an important role in influencing the decision of the

buyer. The aspects such as time, day, season, financial conditions, marketing situations,

demand for the products etc.

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 CHAPTER-3

Methods of tracking and measuring customer satisfaction:

A company tools for tracking and measuring customer satisfaction rangefrom

primitive to sophisticate.

The following methods are used to measure customer satisfaction

1. Complaints and suggestion system:

A customer centered organization would make it easy for its customer todeliver

suggestions and complaints. Many customers maximize the ease with telephone

numbers, customer can inquire, make suggestion on complaint. These information flows

provide these companies with many good ideas and enable them to act more rapidly to

resolve the problems.

2. Lost customer analysis:

c o m p a n i e s s h o u l d c o n t a c t c u s t o m e r s w h o h a v e s t o p p e d b u y i n g o r swit

ched to another supplier. It is important to conduct exit interview and monitor the customer loss

rate.

3. Customer satisfaction survey:

A company must not conclude that it can get a full picture of customer sat-

is faction and dissatisfaction by simply running a complaint and suggestion sys tem.

Studies show that customer4s are dissatisfied with one out of every ten purchases and less

than 2% dissatisfied customers will complain customers may feel that their complaints

are minor.
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PURCHASING AND CONSUMING:
It is important to distinguish between purchase and consumption for

three reasons. Firstly the product may be purchased by 1% and consumed by

another . S e c o n d a l y t h e p u r c h a s e d e p e n d s o n c o n s u m e r e x p e c t a t i o n o f t h e

d e g r e e t o which brands are likely to satisfy needs. Thirdly a consumer post purchase evolu-

tion determines whether the brand is likely to be repurchased.

SATISFACTION V/S DISSATISFACTION:

Satisfaction occurs when customer’s expectations met to exceed and the

purchase decision is reinforced. Satisfaction reinforces positive attitudes towards the brand

leading to a greater likelihood that the customer will re purchase the same brand,

dissatisfaction results when consumer expectation is not met. T h u s w e a s s e r t t h a t b t h e

b u ye r s f o r m s a j u d g m e n t o f v a l u e a c t s o n i t whether the buyers are satisfied

after purchase depends upon the offer perfor mance in relation to the buyers expectation.

here is our definition of customer satisfaction, thus the satisfaction level is a function of

the difference between perc e i v e d p e r f o r m a n c e a n d e x p e c t a t i o n s . a c u s t o m e r

c o u l d e x p e r i e n c e o n t h e i r board level of satisfaction. If the performance matches the

expectations the customer is satisfied if the performance exceeds expectations, a customer is

highly satisfied, pleased or delighted. But how do buyers form their expectations?

Expectations are formed on the basis of the buyers past buying experience, state-

ments. made by friends and associates and market and competitor information and

promises etc. if marketers raise expectations to high the buyers are likely to be disappointed,

some of today’s most successful company are raising expectations and delivering performance to

match. Thus companies are aiming for total consumer satisfaction.

[13]
CUSTOMER RELATIONSHIP MARKETING:
It refers to developing stronger bonds with customers. It is the process

of managing detailed information about individual customers and carefully managing all

customers to maximize

A customer touch point is any occasion on which a customer encountersthe

brand and the product from actual experience to personal or mass communications to casual

observations. Customer relationship marketing enables companies to provide excellent real time

customer service through the effective use of individual accounting information. Based on

what they know about each valued customer, companies can customize market

offerings, services, messages and media, and also it is important because it is a major

driver of company profitability is the aggregate value of the company’s customer base. Some

customers will inevitable become in active or drop out for reasons, moves to other

location, dissatisfaction so on. Here the companies challenge is to reactive dissatisfied customers

through customers backing strategies. It is often easier to re attract the ex-customers

because the company knows their names and histories. Developing more loyal customer’s

increases revenue. However the comp a n y h a s t o s p e n d m o r e t o b u i l d g r e a t e r

c u s t o m e r l o ya l t y. H o w m u c h s h o u l d company invest relationship building, so that the

cost does not exceed the gains, we need to distinguish 5 different levels of investment n

customer relationship building.

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1. BASIC MARKETING:
The salesman simply sells the product.

2. REACTIVE MARKETING:

The salesman sells the product and encourages the customer to call if he or she

has question, comments or complaints.

3. ACCOUNTING MARKETING:
The sales person phones the customers a short time after the

s a l e t o check whether the product is meeting expectation. The sales person also

asks for any product service improvement suggestion and any specific disappoint -

ments. This information helps their company to continue to improving its perfor -

mance.

4. PROACTIVE MARKETING:
The company sales person contacts the customer from time to time

With suggestion about improved product uses or helpful new products.

5. PARTNERSHIP MARKETING:
The company works continues with the customer to discover ways
to perform better.

[15]
 CHAPTER-4
INDUSTRY PROFILE

The liberalization policy and various tax reliefs by the Govt. of India in re-cent

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. 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 Automobile Industry of India is also growing at rapid

speed, occupying an important place on the ‘canvas’ of Indian economy. Today Indian

automobile industry is fully capable of producing various kinds of vehicles and can be

divided into 3 broad categories: cars, two-wheelers and heavy vehicles. Among the two-

wheeler segment, motorcycles have major share in the market. Hero Honda contributes

50% motorcycles in the market. In it Honda holds 46% share in scooter and TVS makes 82% of

the mopeds in the in the country.

SNIPPETS:
The first automobile in India rolled in 1897 in Bombay India being

recognized as potential emerging market.

 Within two wheelers, motorcycles contribute 80% of the segment size.

 India is the largest three wheeler market in the world

 India is the largest two-wheeler manufacturer in the world.

 India is the fifth largest commercial vehicle manufacturer in the world.

[16]
INDIAN TWO-WHEELER INDUSTRY
Automobile is one of the largest industries in the global market. Being the

leader in product and process technologies in the manufacturing sector, it has been

recognized as one of drivers of economic growth. During the decade will directed efforts

have been made to provide a new look to the automobile policy for realizing the

sector’s full potential for the economy. Steps like abolition of licensing, removal of

quantitative restrictions and initiatives to bring the policy frame work in consonance

with WTO requirements have set the industry in a progressive track. Removal of the

restrictive environment has helped restructuring and enabled industry to absorb new

technologies, aligning itself with the global development and also realize its

potential in the country. The liberalization poli cies have led to continuous increase in

competition that has ultimately resulted in modernization in line with global standards as

well as in substantial cut in price. Aggressive marketing by the auto finance.

EVOLUTION OF TWO WHEELER INDUSTRY IN INDIA:

Two wheeler segments is one of the most important components of the

automobile sector that has undergone significant changes due to shift in polic y

environment. The two wheeler industry has been existence in the

c o u n t r y since 1955. it consists of three segments. Scooters, Motorcycles and

Mopeds. According to the figures published by SLAM, the share of two wheeler in automobile

sector in terms of unit sold was about 80% during 2003-04. This high figure itself is

suggesting of the importance of the sector.

[17]
 In the initial year’s entry of the firms, capacity expansion, choice of products

including capacity mix and technology, all critical areas of functioning of an industry

were effectively controlled by state machinery. The lapses in the system had invited

fresh policy options that c a m e i n t o b e i n g i n l a t e 6 0 s . A m o n g t h e s e p o l i c i e s

M o n o p o l i e s & R e s t r i c t i v e Trade Practices (MRTP) and Foreign Exchange

Regulation Act (FERA) wereaimed at regulating monopoly and foreign investment

respectively. companies have also played a signifi-cant role in boosting automobile demand,

especially for the population in the mid-dle income group.

[18]
 CHAPTER-5

COMPANY PROFILE

THE BACKGROUND OF THE COMPANY:

The Bajaj group is one of the top 10 business concerns in India its

foot point stretcher over a wide range of industries, spanning automobiles 12 wheelers and the

three wheelers, lighting iron and home appliances insurance, travel, and finance. It was founded

in 1926 at a height of India’s movement for independent from the birth the group has on

illustrious history the integrity dedications resourcefulness and determination today are

often traced back of its bitch during there days of relentless devotion to a common

case, Jomanlar founder of the group was a close confident and discipline of mahatma

Gandhi in fact gandgiji had adopted him as his son. This close relationship and his deep

involvement in the independence movement did not leave Jamaal Bajaj with much time to

spend on his newly launched business venture. His son Kamalanayan Bajaj when he was 27

took over the rains of business in 1942 he to be close to Gandhi and it was only

after independence in 1947that he was able to give his full attention to the business.

Kamalanayan Bajaj notonly consolidated the group but also the flagship companies has gone up

form 72million to rs.47.18 billion (US $ 936 million) its product portfolio has

expanded from one to and the brand has found a global market. He is one of the

Indian’s must distinguished business leaders and internationally respected for his

business acumen and entrepreneurial spirit.

[19]
BAJAJ AUTO:
It i s a m a j o r Indian automobile manufacturer. It is India's largest and

the world's 4th largest two- and three-wheeler maker. It is based in Pune, Mahastra, with

plants in Akurdi and Chakan (near Pune), Waluj (near Aurangabad) and Pantnagar in

Uttaranchal. Bajaj Auto makes and export smotor scooters, motor-cycles and the auto rickshaw.

The Forbes Global 2000list for the year 2005ranked Bajaj Auto at1946

Over the last decade, the company has successfully changed its

Image from a scooter manufacturer to a two wheeler manufacturer. Its product range en-

compasses Scooterettes, Scooters and Motorcycles. Its real growth in numbers has come in the

last four years after successful introduction of a few models in the motorcycle

segment. The company is headed by Rahul Bajajwho is worth more than US$1.5 billion.

COMPANY'S HISTORY:
Bajaj Auto came into existence on November 29,1945as M/s

Bachraj Trading Corporation Private Limited. It started off by selling imported two -

and three-wheelers in India. In1959,it obtained license from the Government of India to

manufacture two- and three-wheelers and it went public in1960. In1970, trolled out its

100,000th vehicle. In1977, it managed to produce and sell 100,000 vehicle in a single financial

Year. In 1985,it started producing at waluj in Aurangabad. In 1986,it managed to produced to

Sell 500,000 vehicles in a single financial year . In 1995, it rolled out ten million vehicles and

Produced and sold 1 million vehicle in a year.

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 chapter-6

Timeline of new releases:

 1971- three-wheeler goods carrier

 1972-Bajaj Chetak

 1976-Bajaj Super

 1977- Rear engine Autorickshaw

 1981-Bajaj M-50

 1986-Bajaj M-80,Kawasaki Bajaj KB100

 1990-Bajaj Sunny

 1991-Kawasaki Bajaj 4S Champion

 1994-Bajaj Classic

 1995-Bajaj Super Excel

 1997-Kawasaki Bajaj Boxer , Rear Engine Diesel Autorickshaw

 1998-Kawasaki Bajaj Caliber ,Bajaj Legend, India's first four-stroke scoot-er,Bajaj Spirit

 2000-Bajaj Saffire

 2001-Eliminator ,Bajaj Pulsar

 2003-Caliber115,Bajaj Wind125,Bajaj Pulsar

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  2004-Bajaj CT 100, New Bajaj Chetak 4-stroke withWonder Gear ,BajajDiscover DTS-i

 2005-Bajaj Wave,Bajaj Avenger ,Bajaj Discover

 2006-Bajaj Platina

 2007-Bajaj Pulsar-200(Oil Cooled),Bajaj Kristal,Bajaj Pulsar 220 DTS-Fi(Fuel

Injection),XCD 125 DTS-Si (Pronounced Exceed 125 DTS-Si).

 2008-Bajaj Discover 135 DTS-i-Sports.

 2009-Bajaj XCD 135cc, Bajaj Pulsar 220 DTS-I, Bajaj Discover 100 DTS-S

Products:
Some of the models that Bajaj makes (or has made including prototypes) are:

Motorcycles:

 Bajaj CT 100

 Bajaj Platina

 Bajaj Discover 110cc

 Bajaj Discover DTS-i 125cc

 Bajaj XCD 125 DTS-Si

 Bajaj Discover DTS-i 135cc

 Bajaj Pulsar 150 DTSi

[22]
  Bajaj Pulsar 180 DTSi

 Bajaj Pulsar 200 DTSi

 Bajaj Pulsar 220 DTS-Fi

 Bajaj Avenger

Upcoming Models:
 Bajaj Blade

 Bajaj Sonic

 Bajaj Pulsar 300

 Bajaj Discover 150

 Bajaj XCD 125 sprint

Discontinued Models:
 Bajaj Sunny

 Bajaj Chetak

 Bajaj Cub

 Bajaj Super

 Bajaj Saffire

[23]
  Bajaj Wave

 Bajaj Legend

 Bajaj Bravo

 Kawasaki Eliminator

 Bajaj Kawasaki Wind 125


 Bajaj Kawasaki 4s Champion

 Bajaj Kawasaki KB 100 RTZ

 Bajaj Boxer

 Bajaj Caliber

 Bajaj Wind

 Bajaj CT 100

Spinoffs and Acquisitions:

It has been reported that Bajaj is headed for a de-merger into two separate

companies: Bajaj Auto and Bajaj Finance. It is expected that the sum of the parts created will

be worth more that the current whole, as was the case in the de-merger of Reliance Industries. In

November 2007, Bajaj Auto acquired 14.5% stake in KTM Power Sports AG (holding company

[24]
Of KTMS promotor cycles AG). The two companies have signed a cooperation deal, by

which KTM will provide the know-how for joint development of the water-cooled 4stroke

125and 250 cc engines, and Bajaj will take over the distribution of KTM products in India and

some other Southeast Asian nations. Bajaj Auto said it is open to take a majority stake in KTM

and is also looking at other takeover opportunities. On the 8th of January 2008, Managing

Director Rajiv Bajaj confirmed the collaboration and announced Bajaj Auto's intention to

gradually increase their stake in KTM to 25%.

MILESTONE

[25]
THE FACTS AND FIGURES:
 Sale of company new products during 2002 -03 spirit, Bravo,
Legend and caliber was 35% of the total number of two wheeler sold during the period.

 Sale of recently introduced sprit scooter has

c r o s s e d 6 0 0 0 u n i t s p e r m o n t h . This will be followed by an new scooter in the text

quarter.

 Four stroke form engine and rear engine three wheelers will be
introduced in the current quarter. Ultra low emission form strokes three wheelers field by CNG

and LPG are under developmented .

 In m o t o r c yc l e s s e g m e n t i n t r o d u c t i o n n e w B o x e r , A t ,

C T a n d c a l i b e r h a s been very exchanging.

 In 201 December Bajaj Pulsor introduced in chakan plant (Pune).

 Commercial production of “Bajaj Platina” bike

c o n n e c t e d a t A k r u d i p l a n t (Pune) on 2004.

[27]
[28]
PRODUCT PROFILE:

The Platina 125 (DTS-Si):

The Platina 125 (DTS-Si) motor cycle, one of the finest motor cycle in

The country brought to you by Bajaj Auto Ltd. the first service falls dues between 500-750 kms

of initial number or 30-45 days whichever occurs first from the date pf purchase .

A large fuel tank capacity consists of full 13.0 liters, reserve 2.5 liters, us-able 1.75 liters.

It is the India’s most fuel efficient 124 cc motorcycle engine. Bestride comfort on any

kind of road surface. This motorcycle is low price and high mileage capacity