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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.
* Senior Assistant Professor, Chaitanya Bharathi Institute of Technology (CBIT), Gandipet, Hyderabad,
India. E-mail: Singisaraswathi@yahoo.co.uk
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.
• 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.
Market Share
The market share of Commercial Vehicles (CVs), passenger vehicles, two and three
wheelers in the automobile sector is presented in Table 1.
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.
Two-Wheelers
Year Total Growth %
Scooters Motorcycles Mopeds
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).
Share 24 21 17 16 15 13
Growth – 36.5 26 14 19 17
Share 58 69 75 78 80 82
Share 18 10 7 6 5 5
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.
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
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.
• 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.
• 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.
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
41
item is 565 and mean value
Satisfactory
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
14
12
15
17
8
6
5
dissatisfied, 5% are
4
somewhat dissatisfied, 3%
14
20
33
39
27
31
11
5
41
29
6
14
11
7
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
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.
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
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.
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.
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.
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.
• 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.
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
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Reference # 46J-2008-06-03-01
48 The Icfai University Journal of Consumer Behavior, Vol. III, No. 2, 2008