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Customer Satisfaction on Post-Sales

Service with Reference to Two-Wheeler


Automobile Industry
S Saraswathi*

The key to success of automobile industry lies not only in having good products but also
in being able to provide the customer with the level of service they desire. Because of
increasing competitiveness in the Indian automobile industry, almost all automobile
manufacturers have invested valuable resources on customer satisfaction as a tool to
understand the needs and expectations of their customers. Increased presence of
two-wheeler vehicles throughout the country has created a growing need for providing service
infrastructures closer to the customers’ homes or offices. A study on customer satisfaction
on post-sales service with reference to two-wheeler automobile industry was conducted in
the twin cities of Hyderabad and Secunderabad. Primary data was collected from 100
customers who purchased the motorbikes of various two-wheeler companies. The study is
presented under two heads: a) Part I and b) Part II. Part I outlines the perception of
customers on post-sales service and Part II gives a ranking of respondents and satisfactory
index on post-sales service of two-wheeler automobile industry.

Introduction
The automobile industry, which is one of the largest industries in India, is one of the key
sectors of the Indian economy. This industry comprises automobile and auto component
sectors and encompasses commercial vehicles, multi-utility vehicles, passenger
two-wheelers, three-wheelers, tractors and related auto components. India is also being
looked upon as the prime business destination for many global auto players. India is the
world’s largest motorcycle manufacturer, the second largest two-wheeler and tractor
manufacturer, the fifth largest commercial vehicle manufacturer and the fourth largest car
market in Asia (the estimate was one million plus vehicles in 2004-05).

The automobile industry maintained a steady annual growth rate of over 15% in the
last four years. With the gradual liberalization of the automobile sector since 1991, the
number of manufacturing facilities in India has grown progressively to 15 manufacturers of
passenger cars and multi-utility vehicles, nine manufacturers of commercial vehicles,
14 manufacturers of two/three wheelers and 14 manufacturers of tractors. The automobile
industry performance in the year 2005-06 showed encouraging results for all segments of
the automobile industry.

Two-wheeler segment posted a steady growth of around 14% during 2005-06.


The two-wheeler segment witnessed excellent sales with three leading players

* Senior Assistant Professor, Chaitanya Bharathi Institute of Technology (CBIT), Gandipet, Hyderabad,
India. E-mail: Singisaraswathi@yahoo.co.uk

© 2008 The Icfai University


32 ThePress. All RightsJournal
Icfai University Reserved.
of Consumer Behavior, Vol. III, No. 2, 2008
[Hero Honda Motors Ltd. (HHML), Bajaj Auto Ltd. (BAL) and TVS Motors Ltd. (TVS)]
accounting for more than 90% of the total sales for the financial year 2006. Bajaj auto
closed the year with an impressive 32% growth (y-o-y) growth. Hero Honda managed a
reasonably good 14% growth while TVS motors clocked a decent growth of 19%.
The demand continued to be strong and the analysts estimated that motorcycle sales
would see a growth of 15 to 16% for the financial year 2007.

Post-Sales Service: Key to Growth


According to the many business gurus and many more successful companies, the key to
success lies not only in having a good product, but also in being able to provide the
customer with the level of service they desire. Customer service is defined as “a function
of how well an organization meets the needs of its customers”. Post-sales service is a
concern area for customers as their expectations on the overall quality continue to go
higher. Moreover, the increasingly growing demand for after sales support and better services
has compelled the manufacturers to focus and invest more on R&D, reaching the customer,
and satisfaction.

Because of increasing competitiveness in the Indian automotive industry, almost all


the automotive manufacturers have invested valuable resources on customer satisfaction
as a tool to understand the needs and expectations of their customers. All manufacturers
are taking efforts for highest level of customer satisfaction by taking care of motorcycle
service and maintenance through a vast network of more dealers and service outlets
spread across the country. The increase in two-wheeler vehicles has created a growing
need to provide service infrastructures closer to the customers’ homes or offices. For
instance, the Bajaj company unveiled a new concept called ‘YES’-the Young Engineers
Service. These are small and exclusive service centres manned by young engineers at
various neighborhoods. Manufacturers need to provide customization in standard features,
which could be a great opportunity area in future.

Consumer Behavior
Consumer behavior refers to the buying behavior of consumers—individuals and households
who buy goods and services for personal consumption. Consumer behavior is influenced
strongly by cultural, social, personal and psychological factors. Consumer behavior is an
indispensable condition upon which all market planning and marketing strategy must be
based. An analysis of the consumer behavior is the first and foremost requirement for the
successful formulation and implementation of marketing strategies. The study of consumer
behavior involves the process of identifying: a) what they purchase; b) why they purchase;
c) where they purchase; d) when they purchase; and e) how they purchase, etc. It is
important for the marketers to be sufficiently well versed in the field of consumer behavior
to develop effective marketing strategies to survive in the present era.

Customer Satisfaction on Post-Sales Service with Reference 33


to Two-Wheeler Automobile Industry
Objectives
The objectives of the study are as follows:

• To know the customers’ perception on post-sales service of two-wheeler


automobile industry;

• To identify whether services of two-wheeler automobile industry are up to the


customers’ expectations or not;

• To find out the customer satisfaction level on post-sales service of two-wheeler


automobile industry;

• To identify the areas for improvement so that the quality of two-wheeler automobile
industry is enhanced.

Methodology
Both primary and secondary data has been collected for the study.

Primary Data
Primary data was collected through structured questionnaires distributed among the
customers who purchased the motorbikes of various two-wheeler companies, as
motorbikes’ share in two-wheeler segment is high compared to other segments of
two-wheelers. The questionnaire was categorized into two parts. Part I dealt with ‘Perception
of Customers on Service’ with responses Yes and No, and Part II dealt with ‘Ranking of
Respondents and Satisfaction Index’ by using a seven-point rating scale.

Secondary Data
The secondary data were collected from published documents, journals, newspapers,
magazines, websites, etc.

The Sample
A sample size of 100 respondents was drawn on random basis. Considering the
convenience and time constraint, the study was confined to twin cities of Hyderabad and
Secunderabad. The sample respondents were chosen from employees, businessmen,
students, etc.

Analysis
The collected data were analyzed by calculating mean scores. The questionnaire used a
seven point rating scale. The mean scores for each item could theoretically range from
1 to 7 where 1 indicates that the customers were extremely dissatisfied and 7 indicates
that they were extremely satisfied with the item. Scores around 4 indicate a moderate
tendency on that item. Scores around 2 indicates dissatisfaction. Scores around 6 indicates
satisfaction. Scores around 3 indicate dissatisfaction to some extent and scores around
5 indicates moderate satisfaction. To know the overall customer satisfaction, overall mean
was calculated by adding means of all items divided by number of items.

34 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008
Limitations of the Study
• Time was a limiting factor for the study.

• The study has been conducted only in twin cities of Hyderabad and Secunderabad.

• Only one category (i.e., motorbikes) of two-wheeler segment has been considered.

• Size of the sample is small.

Two-Wheeler Industry: Structure and Development


The Two-Wheeler Industry (henceforth TWI) in India has been in existence since 1955.
It consists of three segments, viz., scooters, motorcycles and mopeds. The increase in
sales volume of this industry is proof of its high growth. In 1971, sales were around
0.1 million units per annum. But by 1998, this figure has risen to 3 million units per
annum. Similarly, capacity of production has also increased from about 0.2 million units
of annual capacity in the seventies to more than 4 million units in the late nineties.
The two-wheeler automobile industry is continuously striving for synergy between
technology and systems to provide products and services that meet the quality, performance
and price aspirations of the Indian buyers, as the demand for a more fuel-efficient and
look-wise appealing two-wheeler, which can also provide a comfortable ride is on the rise.
The two-wheeler industry in India has grown at an annual compounded rate of 11% in the
last 10 years. This growth has been fuelled by the 26% CAGR (Compound Annual Growth
Rate) growth in motorcycles and 21% (CAGR) in the ungeared scooters.

Market Share
The market share of Commercial Vehicles (CVs), passenger vehicles, two and three
wheelers in the automobile sector is presented in Table 1.

Table 1: Market Share


% Share

Category Market Share for 2004-05 Market Share for 2005-06

CVs 4.03 3.94

Total Passenger Vehicles 13.44 12.83

Total Two-Wheelers 78.63 79.19

Three-Wheelers 3.90 4.04

Source: Society of Indian Automobile Manufacturers (SIAM).

In the automobile sector, the market share of CVs and total passenger vehicles has
declined during 2005-06 as against the previous year; whereas, the market share of two
and three wheelers has increased during 2005-06. The two-wheelers market share has
increased to from 78.63% in 2004-05 to 79.19% in 2005-06. Thus, it indicates that there
is more demand for two-wheelers.

Customer Satisfaction on Post-Sales Service with Reference 35


to Two-Wheeler Automobile Industry
Production Trends
The two-wheeler automobile industry is classified into three types: scooters, motorcycles
and mopeds. In the two-wheeler segment, there is a greater preference for motorcycles
followed by scooters, with both production and domestic sales of motorcycles increasing
at faster rates than that of scooters in the current and previous years.

The production of two-wheeler segment in automobile industry has been depicted in


Table 2. A robust growth has been observed since 2001-02. During 2002-03, automobile
production grew by 19%. Due to liberalization, the arrival of new and contemporary models,
easy availability of finance at relatively low rate of interest and price discounts offered by
the dealers and manufacturers have stimulated the demand for vehicles and a strong
growth of the industry. The total vehicle production in the year 2005-06 touched 7,600,801
units with a registered growth rate of 16%.

Table 2: Automobile (Two-Wheelers) Production Trends (in Nos.)

Two-Wheelers
Year Total Growth %
Scooters Motorcycles Mopeds

1993-94 833,083 461,955 460,451 1,755,489 –

1994-95 1,030,803 647,521 516,936 2,195,260 25

1995-96 1,225,895 809,097 623,114 2,658,106 21

1996-97 1,322,928 988,709 668,666 2,980,303 12

1997-98 1,279,549 1,125,958 667,242 3,072,749 3

1998-99 1,315,055 1,387,276 671,699 3,374,030 10

1999-00 1,259,408 1,794,093 724,510 3,778,011 12

2000-01 879,759 2,183,430 694,974 3,758,163 –0.5

2001-02 937,506 2,906,323 427,498 4,271,327 14

2002-03 848,434 3,876,175 351,612 5,076,221 19

2003-04 935,279 4,355,168 332,294 5,622,741 11

2004-05 987,498 5,193,894 348,437 6,529,829 16

2005-06 1,020,013 6,201,214 379,574 7,600,801 16


Source: Automotive Component Manufacturers Association of India (ACMA) and SIAM.

Domestic Sales Trend


Two-wheeler sales grew by 11% in 2003-04. Continued increase in household income,
a slew of new model launches, and the greater availability of low-cost finance, resulted in
a 16% growth with a market size of more than 6 million units during the year

36 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008
2004-05. This sales growth was driven by motorcycle category recording a growth of
19% during 2004-05 over the year 2003-04, with a share of motorcycles in the
two-wheeler industry rising further from 78% in the year 2003-04 to 80% during the year
2004-05 (Table 3).

Table 3: Automobile (Two-Wheelers) Domestic Sales

(Sales in Nos., Growth and Share in %)

Category Perf. 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Scooters Sales 876,224 908,268 825,648 886,295 922,428 908,159

Growth – 3.6 –9 7 4 –1.5

Share 24 21 17 16 15 13

Motorcycles Sales 2,114,693 2,887,194 3,647,493 4,170,445 4,964,753 5,815,417

Growth – 36.5 26 14 19 17

Share 58 69 75 78 80 82

Mopeds Sales 643,461 408,263 338,985 307,509 322,584 332,741

Growth – –36.5 –17 –9 5 3

Share 18 10 7 6 5 5

Total Sales 3634378 4203725 4812126 5364249 6209765 7056317

Growth – 16 14 11 16 14

Note: Perf.-Performance.
Source: Society of Indian Automobile Manufacturers (SIAM).

Backed by Government’s initiative on rural roads and better connectivity with major
towns and cities, improved agricultural performance, upward trend of purchasing power in
the hands of rural people, the two-wheeler segment continued to post a steady growth of
around 14% and was able to achieve the record performance of crossing 7 million two
wheelers with exact sales standing at 7,056,317 during 2005-06. Motorcycle segment
grew at the rate of more than 17% during the fiscal year 2005-06 as compared to
2004-05.
Export Trend
The Indian automobile industry is gaining increasing recognition worldwide. During the
last four years, export from this sector has grown significantly, owing to the export of cars
and two/three wheelers.
It is found from Table 4 that the two-wheeler exports also crossed 300,000 mark for the
first time clocking around 366,407 numbers and recorded a growth rate of 38% during
2004-05 over the year 2003-04. However, mopeds have registered low or negative growth.

Customer Satisfaction on Post-Sales Service with Reference 37


to Two-Wheeler Automobile Industry
Table 4: Automobile (Two-Wheelers) Exports Trends (in Nos.)

Year Scooters Motorcyles Mopeds Total Two-Wheelers Growth(%)

2000-01 25,625 41,339 44,174 111,138 –

2001-02 28,332 56,880 18,971 104,183 –6.0

2002-03 32,566 123,725 23,391 179,682 72.0

2003-04 53,687 187,287 24,078 265,052 47.5

2004-05 60,699 277,123 28,585 366,407 38.0

2005-06 83,873 386,202 43,181 513,256 40.0


Source: Society of Indian Automobile Manufacturers (SAIM).

Export growth rates have been high both for motorcycles and scooters. The two-wheelers
exports also crossed 500,000 mark for the first time clocking 513,256 numbers recording
a growth rate of 40% for the year 2005-06.

However, mopeds have registered a low or negative growth. Export growth rates have
been high both for motorcycles and scooters.
Major Players
The BAL, HHML and TVS are the major players in two-wheeler industry. The two-wheeler
segment witnessed excellent sales with three leading players accounting for more than
90% of the total sales for the financial year 2006.
It can be observed from Table 5 that BAL witnessed a 24% (y-o-y) growth in two-
wheeler segment comprising of 1,602,646 units during 2004-05. During 2005-06, BAL
registered a sales of 2,279,862 (including three-wheeler). HHML registered highest sales
of 3,000,751 during 2005-06 compared to 2,621,400 for the year 2004-05, registering a

Table 5: Sales of Major Players of Two-Wheeler Industry


Year Bajaj Growth (%) Hero Honda Growth (%) TVS Growth (%)

2000-01 1,053,901 – 1,029,510 – 863,000 –

2001-02 1,198,296 13.7 1,425,302 38.4 866,000 0.34

2002-03 1,251,914 4.0 1,677,537 17.7 1,119,000 29.20

2003-04 1,288,949 3.0 2,070,147 23.4 1,147,000 2.50

2004-05 1,602,646 24.0 2,621,400 26.6 1,167,016 1.70

2005-06 2,279,862 42.0 3,000,751 14.0 1,342,257 15.00

Note: Bajaj sales for 2005-06 includes 3-wheelers also.


Source: www.herohonda.com, www.tvsmotor.in and www.bajajauto.com

38 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008
growth rate of 14%. In the year 2004-05, TVS reached the landmark of cumulative sales of
10 million two-wheelers and also one million mark for three consecutive years. The TVS
two wheeler sales witnessed 15% growth by clocking 1,342,257 units in 2005-06 compared
to 1,167,016 units recorded in the financial year 2004-05.
Consumer Survey Analysis
Part I
Part I of the consumer survey analysis deals with the “perception of customers on post
sales service”, which is presented in Table 6.

Table 6: Perception of Customers on Post-Sales Service


Perception
Yes No Total
Item
No. of No. of Respondents
Res. Res.
1. Awareness of the service center 69 31 100
2. Reminder from the dealer for free service 64 36 100
3. Use of customer waiting area 44 56 100
4. Examining the vehicle in presence of the customer 41 59 100
5. Filling of job card/book in customer’s presence 94 6 100
6. Permission regarding additional work 79 21 100
7. Paid any minimum charges during free service 52 48 100
8. Asking for a test ride at the time of delivery 56 44 100
9. Offered a test ride before demanding 58 42 100
10. Test ride the vehicle after servicing 89 11 100

Source: Consumer Survey.

• From Table 6, it is evident that 69% of the respondents are aware of the location of
the service center at the time of delivery, while 31% of the respondents are not
aware of the location of the service center.

• It is found that about 64% of the respondents received reminders from the dealer for
free service, while 36% of the respondents did not receive any reminders from the
dealer for free service.

• It is found that 44% of the customers are using customer-waiting area, whereas
56% are not using the customer waiting area.

• The above information leads us to the conclusion that for 41% of the respondents,
service staff did not examine the vehicle in presence of customer.

Customer Satisfaction on Post-Sales Service with Reference 39


to Two-Wheeler Automobile Industry
• The above information leads us to the conclusion that for majority of customers
(94%), service staff filled the job card/book in the presence of the customer.

• The above information leads us to the conclusion that service staff took permission
from majority of the customers, i.e., 79% when any additional work is to be done.

• Majority of the customers did not pay the minimum charges (52%), whereas 48%
of the customers paid the minimum charges.

• 56% of the customers asked for a test ride at the time of delivery, whereas 44% did
not asked for a test ride.

• 58% of the customers were offered a test ride before they demanded it, whereas
42% were not offered a test ride.

• Majority of the customers (89%) chose to test ride the vehicle after servicing.

Part II
Part II of the consumer survey analysis is “ranking of respondents and satisfaction index”
on seven point scale, presented in Table 7.

Overall Reception at the Service Center


From Table 7, it is evident that 43% of the customers are satisfied with the reception of
the service center whereas, 27% are extremely satisfied, 22% somewhat satisfied and
the remaining 8% neutral and below. The total score for this item is 584 and mean value
is 5.84. Hence its satisfaction level is rated as satisfied.

The Location of the Outlet


49% of the customers are satisfied with the location of the outlet, 21% are extremely
satisfied, 21% are somewhat satisfied, 5% are neither satisfied nor dissatisfied and very
less percent, i.e., 3% of customers are somewhat dissatisfied and 1% is dissatisfied
whereas none of the customers are extremely dissatisfied. The total score for this item is
577 and mean value is 5.77. Hence its satisfaction level is rated as satisfied.

Cleanliness of the Outlet


It is evident from Table 7 that 37% of the customers are satisfied with the cleanliness of
the outlet followed by 33% extremely satisfied, 19% somewhat satisfied, 4% of customers
are neither satisfied nor dissatisfied, 5% are somewhat dissatisfied and 1% of the
customers are dissatisfied and extremely dissatisfied. The total score for this item is 582
and mean value is 5.82. Hence, its satisfaction level is rated as satisfied.

Getting a Service Appointment


Table 7 shows that 35% of the customers are satisfied in getting the service appointment
followed by 31% who are extremely satisfied and 24% are somewhat satisfied and the
percentage of customers who are neither satisfied nor dissatisfied is followed by somewhat
dissatisfied and none of the customers are extremely dissatisfied. The total score for this

40 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008
Table 7: Ranking of Respondents and Satisfaction Index
for Seven Point Scale

Ranking Total Satisfactory


No. of Index
Item
7 6 5 4 3 2 1 Res. Score Mean
No. of Respondents
1. Overall reception at the service center 27 43 22 4 3 1 0 100 584 5.84
2. The Location of the outlet 21 49 21 5 3 1 0 100 577 5.77
3. Cleanliness of the outlet 33 37 19 4 5 1 1 100 582 5.82

to Two-Wheeler Automobile Industry


4. Getting a service appointment 31 35 24 5 3 2 0 100 565 5.65
5. Comfort level in the waiting area 34 28 22 8 5 3 0 100 569 5.69
6. Ambience in the waiting area 29 31 18 14 6 2 0 100 551 5.51
7. Space available in the waiting area 32 31 20 7 5 5 0 100 573 5.73
8. Attention given in the waiting area 25 35 20 10 3 6 1 100 547 5.47
9. Information given in the owner’s manual 30 42 20 4 2 2 0 100 588 5.88

Customer Satisfaction on Post-Sales Service with Reference


10. Help provided by the service staff 22 36 23 9 5 3 2 100 544 5.44
11. Interest shown by the service staff in specific problems 25 29 18 10 10 5 3 100 514 5.14
12. Understanding of vehicles problems by service staff 27 24 14 18 11 4 2 100 518 5.18
13. Availability of the spare parts 14 61 13 4 5 2 1 100 565 5.65
14. Clarity in delivery time information 57 22 12 3 5 1 0 100 620 6.20
15. Accuracy in delivery time 53 27 7 4 4 5 0 100 606 6.06
16. Readiness of the vehicle at the time of delivery 44 31 13 6 2 2 2 100 595 5.95
(Contd...)

41
item is 565 and mean value

Satisfactory

Res. Score Mean


(...contd)

6.10
6.12
5.09
5.09
5.12

5.40
5.12
is 5.65. Hence its satisfaction

Index
level is rated as satisfied.

610
612
509
509
512

540
512
Comfort Level in the
No. of Waiting Area
Total

100
100

100
100

100
100
89
It is inferred from Table 7 that
No. of Respondents 34% of the customers are
1

0
2
2
1
1

0
3
extremely satisfied with the
comfort level in the waiting
2

1
0
4
5
5

0
4
area, 28% are satisfied, 22%
are somewhat satisfied, 8%
1
1
3
5
3

6
2
3
Table 7: Ranking of Respondents and Satisfaction Index

are neither satisfied nor


Ranking

14
12

15
17
8
6
5

dissatisfied, 5% are
4

somewhat dissatisfied, 3%
14

20
33
39

27
31
11
5

are dissatisfied and none of


the customers are extremely
29
32
45
32
31

41
29
6

dissatisfied. The total score for


for Seven Point Scale

this item is 569 and mean


Source: Consumer Survey.
47
48
10
10

14
11
7

value is 5.69. Hence its


satisfaction level is rated as
21. Rating of service centre in terms of replacement/charge of spare parts/

satisfied.
Ambience in the Waiting
Area
It is clear from Table 7 that
31% of the customers are
satisfied, 29% are extremely
17. Cleanliness of the vehicle at the time of delivery

satisfied, 18% are somewhat


20. Rating of dealer in terms of quality of service

satisfied, 14% are neither


satisfied nor dissatisfied, 6%
are somewhat dissatisfied,
Item

2% are dissatisfied and none


18. Handling and delivering of vehicle

22. Technical skills of the mechanic

of the customers are


19. Satisfaction after the test ride

extremely dissatisfied. The


23. Overall Service experience

total score for this item is 551


and mean value is 5.51.
Hence, its satisfaction level is
rated as satisfied.
labor charges.

Space Available in the


Waiting Area
It is evident from Table 7 that
32% of the customers are

42 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008
extremely satisfied with availability of space in the waiting area, 31% are satisfied, 20%
are somewhat satisfied, 7% of the customers are neither satisfied nor dissatisfied, 5%
are somewhat dissatisfied, 5% are dissatisfied and none of the customers are extremely
dissatisfied. The total score for this item is 573 and mean value is 5.73. Hence, its
satisfaction level is rated as satisfied.

Attention Given in the Waiting Area


The Table 7 shows clearly that 35% of the customers are satisfied with attention given in
the waiting area, 25% are extremely satisfied, 20% are somewhat satisfied, 10% of the
customers are neither satisfied nor dissatisfied, 3% are somewhat dissatisfied, 6% are
dissatisfied and 1% of the customers are extremely dissatisfied. The total score for this
item is 547 and mean value is 5.47. Hence, its satisfaction level is rated as satisfied.

Information Given in the Owner’s Manual


It is found that 42% of the customers are satisfied with the information given in the owner’s
manual followed by 30% are extremely satisfied, 20% are somewhat satisfied, 4% of the
customers are neither satisfied nor dissatisfied, 2% are somewhat dissatisfied, 2% are
dissatisfied and none of the customers are extremely dissatisfied. The total score for this
item is 588 and mean value is 5.88. Hence, its satisfaction level is rated as satisfied.

Help Provided by the Service Staff


It is inferred from the Table 7 that 36% of the customers are satisfied with the help provided
by the service staff, 22% are extremely satisfied, 23% are somewhat satisfied, 9% of the
customers are neither satisfied nor dissatisfied, 5% are somewhat dissatisfied, 3% are
dissatisfied and 2% of the customers are extremely dissatisfied. The total score for this
item is 544 and mean value is 5.44. Hence, its satisfaction level is rated as satisfied.

Interest Shown by the Service Staff in Specific Problems


It is analyzed that 29% of the customers are extremely satisfied with interest shown by
the service staff in specific problems, 25% are satisfied, 18% are somewhat dissatisfied,
10% are neither satisfied nor dissatisfied, 10% of the customers are somewhat dissatisfied,
5% are dissatisfied and 3% are extremely dissatisfied. The total score for this item is 514
and mean value is 5.14. Hence, its satisfaction level is rated as satisfied.

Understanding of Vehicles Problems by Service Staff


It is found that 27% of the customers are extremely satisfied with understanding of
vehicle-specific problems by service staff, 24% are satisfied, 14% are somewhat satisfied,
18% are neither satisfied nor dissatisfied, 11% are somewhat dissatisfied, 4% of the
customers are dissatisfied and 2% are extremely dissatisfied. The total score for this
item is 518 and mean value is 5.18. Hence its satisfaction level is rated as satisfied.

Availability of the Spare Parts

It is inferred that majority (61%) of the customers are satisfied with the availability of the
spare parts, 14% are extremely satisfied, 13% are somewhat satisfied, 4% are neither

Customer Satisfaction on Post-Sales Service with Reference 43


to Two-Wheeler Automobile Industry
satisfied nor dissatisfied, 5% are somewhat dissatisfied, 2% of the customers are
dissatisfied and 1% are extremely dissatisfied. The total score for this item is 565 and
mean value is 5.65. Hence, its satisfaction level is rated as satisfied.

Clarity in Delivery Time Information


Table 7 leads us to the conclusion that 57% of the customers are extremely satisfied with
clarity in delivery time information, 22% are satisfied, 12% are somewhat satisfied, 3%
are neither satisfied nor dissatisfied, 5% are somewhat dissatisfied, 1% of the customers
are dissatisfied and none of them are extremely dissatisfied. The total score for this item
is 620 and mean value is 6.20. Hence, its satisfaction level is rated as extremely satisfied.

Accuracy in Delivery Time


The information leads us to the conclusion that 53% of the customers are extremely
satisfied with accuracy in delivery time, 27% are satisfied, 7% are somewhat satisfied,
4% are neither satisfied nor dissatisfied, 4% are somewhat dissatisfied, 5% of the
customers are dissatisfied and none of them are extremely dissatisfied. The total score
for this item is 606 and mean value is 6.06. Hence, its satisfaction level is rated as
extremely satisfied.

Readiness of the Vehicle at the Time of Delivery


It is clear from Table 7 that 44% of the customers are extremely satisfied with readiness
of the vehicle at the time of delivery, 31% are satisfied, 13% are somewhat satisfied, 6%
are neither satisfied nor dissatisfied, 2% are somewhat dissatisfied, 2% of the customers
are dissatisfied and 2% of them are extremely dissatisfied. The total score for this item is
595 and mean value is 5.95. Hence, its satisfaction level is rated as satisfied.

Cleanliness of the Vehicle at the Time of Delivery


It is found that 47% of the customers are extremely satisfied with cleanliness of the
vehicle at the time of delivery, 29% are satisfied, 14% are somewhat satisfied, 8% are
neither satisfied nor dissatisfied, 1% are somewhat dissatisfied, 1% of the customers are
dissatisfied and none of them are extremely dissatisfied. The total score for this item is
610 and mean value is 6.10. Hence, its satisfaction level is rated as extremely satisfied.

Handling and Delivering of Vehicle


With regard to handling and delivering of vehicle, 48% of the customers are extremely
satisfied, 32% are satisfied, 11% are somewhat satisfied, 6% are neither satisfied nor
dissatisfied, 1% are somewhat dissatisfied, none of the customers are dissatisfied and
2% are extremely dissatisfied. The total score for this item is 612 and the mean value is
6.12. Hence, its satisfaction level is rated as extremely satisfied.

Satisfaction After the Test Ride


Among 100 respondents, 89 respondents have ridden the vehicle after servicing for testing.
Among 89 respondents, 45 are satisfied after the test ride, 10 extremely satisfied, 20 are
somewhat satisfied, 5 are neither satisfied nor dissatisfied, 3 are somewhat dissatisfied,

44 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008
4 of the customers are dissatisfied and 2 are extremely dissatisfied. The total score for
this item is 509 and mean value is 5.09. Hence, its satisfaction level is rated as satisfied.

Rating of Dealer in Terms of Quality of Service


Relating to item dealer in terms of service, 32% of the customers are satisfied, 10% are
extremely satisfied, 33% are somewhat satisfied, 14% are neutral, 5% are somewhat
dissatisfied, 5% are dissatisfied and 1% are extremely dissatisfied. The total score for
this item is 509 and mean value is 5.09. Hence, its satisfaction level is rated as satisfied.

Rating of Service Centre in Terms of Replacement/Changes of Spare Parts/


Labor Charges

It is observed in the study that 31% of the customers are satisfied with the terms of
replacement/change of spare parts/labor charges, 9% are extremely satisfied, 39% are
somewhat satisfied, 12% are neutral, 3% are somewhat dissatisfied, 5% are dissatisfied
and 1% is extremely dissatisfied. The total score for this item is 512 and mean value is
5.12. Hence, its satisfaction level is rated as satisfied.

Technical Skills of the Mechanic

It is inferred that 41% of the customers are satisfied with the technical skills of the
mechanics, 11% are extremely satisfied, 27% are somewhat satisfied, 15% are neither
satisfied nor dissatisfied, 6% are somewhat dissatisfied, and none of them are dissatisfied
or extremely dissatisfied. The total score for this item is 540 and mean value is 5.40.
Hence, its satisfaction level is rated as satisfied.

Overall Service Experience


It is found from Table 7 that 29% of the customers are satisfied with the overall service
experience, 14% are extremely satisfied, 31% are somewhat satisfied, 17% are neither
satisfied nor dissatisfied, 2% are somewhat dissatisfied, 4% are dissatisfied and 3% are
extremely dissatisfied. The total score for this item is 512 and mean value is 5.12. Hence,
its satisfaction level is rated as satisfied.

Findings
The followings are the findings of the study:

• It is found that 69% of the respondents were told about the location of the service
center at the time of delivery.

• It is found that 64% of the customers received a prompt reminder from the dealer
for the first/second free service.

• It is found that 44% of the customers were using the customer waiting area.

• It is found that 70% of the customers are satisfied with the location of the outlet.

• It is found that 70% of the customers are satisfied with the cleanliness of the outlet.

Customer Satisfaction on Post-Sales Service with Reference 45


to Two-Wheeler Automobile Industry
• It is found that 66% of the customers are satisfied in getting a service appointment.

• It is found that 62% of the customers are satisfied with the comfort level in the
waiting area.

• It is found that 60% of the customers are satisfied with the ambience in the waiting
area.

• It is found that 63% of the customers are satisfied with the space available in the
waiting area.

• It is found that 60% of the customers are satisfied with the attention given in the
waiting area.

• It is found that 72% of the customers are satisfied with the information given in the
owner’s manual.

• It is found that 58% of the customers are satisfied with the help provided by the
service staff.

• It is found that 54% of the customers are satisfied with the interest shown by the
service staff in the specific problems.

• It is found that 51% of the customers are satisfied with the understanding of vehicle
specific problems by service staff.

• It is found that 41% of the customers are satisfied with examining the vehicle in
presence of the customer.

• It is found that 94% of the customers are satisfied with filling of job card/book in
customer’s presence.

• It is found that service staff took permission from the customer when any additional
work is to be done for majority customers, i.e., 79%.

• It is found that 52% of the customers were asked to pay minimum charges during
free service.

• It is found that 75% of the customers are satisfied with the availability of spare
parts.

• It is found that 79% of the customers are satisfied with the clarity in delivery time
information.

• It is found that 80% of the customers are satisfied with the accuracy in delivery time.

• It is found that 75% of the customers are satisfied with the readiness of the vehicle
at the time of delivery.

• It is found that 76% of the customers are satisfied with the cleanliness of the
vehicle at the time of delivery.

46 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008
• It is found that 80% of the customers are satisfied with the handling and delivering
of the vehicle.

• It is found that 56% of the customers asked for a test ride at the time of delivery.

• It is found that 58% of the customers are offered a test ride before demanding.

• It is found that 89% of the customers have a test ride after servicing.

• It is found that 55% of the customers are satisfied after the test ride.

• It is found that 42% of the customers are satisfied with the dealer in terms of
service quality.

• It is found that 40% of the customers rated service center as satisfaction in terms
of replacement of spare parts/labor charges.

• It is found that 52% of the customers are satisfied with the technical skills of the
mechanic.

• It is concluded that overall satisfaction of the customers on post-sale service is


‘satisfied’ with a mean value of 5.60.

Suggestions
As 69% of the respondents are told about the location of the service center at the time of
delivery and remaining 31% are not aware of it, it is recommended that the purchasers
should be made aware of the location of the service center at the time of delivery, which is
of key concern to them.

It is found that the mean value for some of the dimensions of service are moderate.
Hence the manufacturers or dealers should invest highly valuable resources in the areas
like interest of service staff on specific problems, knowledge of service staff on specific
problems, i.e., specialized skills, satisfaction after the test ride and quality of service. q

Bibliography
1. Beri G C (2000), Marketing Research, Tata McGraw Hill Publishing Co. Ltd.

2. Henry Assael (2005), Consumer Behaviour a Strategic Approach, Biztantra,


New Delhi.

3. Loudon David L and Della Bitta Albert J (1993), Consumer Behaviour, McGraw Hill
International Editions, New Delhi.

4. Philip Kotler and Gray Armstrong (2002), Principles of Marketing, Pearson Education
Asia, Delhi.

5. Schiffman Leon G and Leslie Lazar Kanuk (1996), Consumer Behaviour, Prentice
Hall of India Private India, New Delhi.

Customer Satisfaction on Post-Sales Service with Reference 47


to Two-Wheeler Automobile Industry
6. Soloman Michael R (2004), Consumer Behaviour: Buying, Having and Being, Pearson
Education, Delhi.

7. Tull Donald S and Hawkins Del I (1998), Marketing Research, Prentice Hall of India
Private Limited, New Delhi.

8. www.indianbusiness.nic.in

9. www.acmainfo.com

10. www.herohonda.com

11. www.tvsmotor.in

12. www.bajajauto.com

13. www.siamindia.com

Reference # 46J-2008-06-03-01

48 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008

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