You are on page 1of 91

A STUDY ON CONSUMER BEHAVIOR TOWARDS MERCEDES BENZ

Submitted in Partial Fulfillment For the Degree of Bachelor of Business Studies By Dishank Kukreja (Roll No. 09/BBS/0079 Batch 2009-12) To

DEEN DAYAL UPADHYAYA COLLEGE University of Delhi Shivaji Marg, Karampura New Delhi-110015

ii

DECLARATION

I, DISHANK KUKREJA, Roll No. 09/BBS0079, BBS 6th sem of Deen Dayal Upadhyaya College hereby declare that the Project entitled A STUDY OF CONSUMER BEHAVIOR TOWARDS MERECEDES BENZ is an original work and the same has not been submitted to any other institute for the award of any other degree. The feasible suggestions have been duly incorporated in consultation with the supervisor.

Countersigned:

Signature of Supervisor

Signature of Candidate

ACKNOWLEDGEMENT
I hereby take the opportunity to express my wholehearted thankfulness to all those who have been helpful to me in the completion of this project. I would like to express my deep gratitude to Dr. Nisha Rana, Convener, Department of Business Studies for hER constant support, guidance & encouragement in exploring the nuance of the project without which it would not have been possible for me to accomplish this project. I would also like to thank my project guide Ms. Aanchal Gupta, Department of Business Studies for cooperating with me & extending a helping hand in the collection of relevant information related to my project. I would like to place on record my indebtedness to the whole faculty of Deen Dayal Upadhyaya College who have enriched me with the knowledge required for the successful completion of this project. Last but not the least I would like to thank all my friends for their cooperation, constant support in the accomplishment of this project.

(DISHANK KUKREJA)

ii

CONTENTS
CHAPTER 1 INTRODUCTION 1.1 1.2 Background of the Study Background of Industry 24-37 38-39 40-45 1-23

CHAPTER 2 LITERATURE REVIEW CHAPTER 3 OBJECTIVE OF STUDY CHAPTER 3 RESEARCH METHODOLOGY 3.1 3.2 3.3 3.4 3.5 3.6 Title of the study Statement of the problem Need of the study Objective of the Study Scope of the Study Research Methodology 3.7 Description of Research Design Sampling Procedure Source of Data Data Collection Instruments Field Work

Limitation of the study 46-70 71-73 74-77 78-80 81-85 86-87

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION CHAPTER 5 FINDINGS CHAPTER 6 SUGGESTIONS CHAPTER 7 CONCLUSION ANNEXURE BIBLIOGRAPHY

iii

Chapter 1

Introduction

BACKGROUND OF THE STUDY


As the 21st century approached, marketing become more attractive at the company, state, national, International levels, in the early days, there was no difference between selling and marketing. But today the difference between these two terms has been clearly made in the present dynamic world. Marketing is recognized as the most significant activity in our society. The importance of marketing function in business management has grown significantly during last two decades. This development has come about as a result of several factors such as technology expanding world markets, changing international environment, increasing consumer sophistication, keen competition and growing size and complexities of modern business. Marketing is thus all around us, our daily existence our economical life and our life styles is continuously affected by a wide range of marketing activities. The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfaction to its customers more effectively and efficiently. The marketing system plays a unique role in transforming the benefits of mass production in terms of raising the standard of living and life styles of all people. Thus better marketing can raise living standards of all people in the country. It is entrusted with the task of creation and raising the standard of living of the society. the food we eat, the clothes we

wear, the house we live in, the comforts and the amentias we enjoy in our homes and at work placed, the health and welfare activities which give us peace of mind, all these are profoundly affected each day by the marketing system. marketing process reflects on social importance because it has been given the responsibility of creating, raising and maintaining the standard of living of society. Marketing comprises of integrated system of business activates in order to plan, price, promote and distribute goods and services to meet the customer needs within the limits of society. In marketing, marketing strategy plays an important role in various aspects of marketing. The American Marketing Association defines Marketing as the performance of business activates that direct the flow of goods and service from producer to consumer or user. According to Philip Kotler Marketing is a set of human activities directed at facilitating and consuming exchange of products and services through transaction to satisfy human needs and wants . Thus marketing is social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products and services of value with each other. Understanding of these various definitions being out the following concept of marketing: needs, wants and demand products (goods, service & ideas) ; value, cost and satisfaction; exchange and transaction; relationships and networks markets; marketers and prospects. 3

BACKGROUND OF THE INDUSTRY


The French engineer Nicolas Joseph Cungnot is generally considered to have built the fist self-propelled vehicle in 1789. It was heavy, three- wheeled, steam driven carriage with a boiler that projected in from and its top speed approximately 5 km per hour. In 1801 the English engineer Richard Trevithick also built a three wheeled, stream driven car. This was rear- wheel driven car. Many more vehicles were developed in England and attempts were made to operate them on regular schedulers. However, they were banned from the roads and automobile development was retarded. The speed was limited to 4 miles per hour. In accordance with the Red Flag Act, which was in effect from 1836 to 1896 a man was required by law to walk in front of a self propelled vehicle, carrying a red flange by day and red lantern by night. The man who developed this crude machine into a practical and reliable automobile was Gotlieb Daimler (1834-1900), a German engineer, who developed an improved internal combustion engine in 1885. His improvement mad in the made in the 1880s contributed largely to the development of the automobile industry. In 1890, he founded the Daimler Motor company at Constant, Germany, which is credited with having turned out the finest motorcars in automobile history. In the United States, Charles Duryea and J. Frank Duryea Elwood Hynes, Henry Ford, Ransom E. Olds, and Alexander Winton manufactured internal combustion cars in 1887. The man who has distinction of bringing the motorcar to the masses was undoubtedly

Henry Ford (1863-1947) an American industrialist born in Dearborn, Michigan. He showed mechanical aptitude at early age and left his fathers farm in 1879 to work as an apprentice in a Detroit machine shop. He soon returned to his home, but after considerable experimentation with power driven vehicles, he went to Detroit again in 1890 and worked as a machinist and engineer with the Edison Company. Ford continued working in his spare time as well, and in 1892 he completed his first automobile. In 1889 he resigned from the from the Edison Company and launched the Detroit automobile company, but a disagreement with his associates lead him to organize the Ford Motor company in partnership with James Couzenz, the Dodge brother and others in 1903. In 1907 the purchased the stock of his associates, and thereafter the company remained in control of the ford family. By cutting the costs of production, gaining control of raw materials and the means of distribution, adapting the conveyor belt and assembly line to automobile production, and by featuring an inexpensive and standardized car, Hendry Ford were soon able to outdistance all his competitors and become the largest automobile manufacturer in the worked. He came to be regarded as the apostle of mass production. In 1908 he designed the Model, T, and a new design, the Model A was created to meet growing competition. Ford will always be remembered in history for introducing the commoners to the wonder of a totally exciting and radical; mode of transportation that is being upgraded constantly to give the man on the street the automobile of his dreams.

CURRENT TRENDS IN THE AUTOMOBILE INDUSTRY


Widespread environment concerns that stem from the rapid and irreversible depletion of fossil energy resources coupled with serious pollution hazards, have triggered a spate of lobbying for stricter federal norms to take necessary corrective actions in the fight against pollution. The maximum acceptable emission level for all road vehicles is constantly being revised, with a view to compel the automobile industry to increase the pace of the development of alternative fuel consumption vehicles, and to stop almost a century of total reliance on fossil energy resources. The garnering of immense public support has only served to convince the various automobile titans that ecofriendly is the way to go in order to survive. All these development have lead to the metamorphosis of a new concept, the alternate fuel vehicles, (AFV) that run on fuels other than gasoline and diesel. Some of the practical alternative fuels are: Compressed Natural Gas (CNG) Liquefied Propane Gas (LNG) Liquefied Propane Gas (LPG) Methanol (M 85 or 100) Ethanol (E 85 or E 100) Bio diesel or Soy diesel Electricity 6

Hydrogen (Fuel Cell Vehicles)

The above mentioned alternative fuel vehicles are vehicles increasingly popular. The latest statistics revel that there are well around 3.75 million AFVs worldwide. The United States of America has 980,000 AFVs vehicles. Contrary to popular perception Alternative Fuel vehicles are not an impractical and short term solution in the gradual phasing out of the conventional gasoline and diesel powered vehicles. Extensive tests have proved that, in fact the Alternative Fuel Vehicles are in

many respects more economical to maintain and have many additional advantages over their petrol/diesel counterparts.

RECENT TRENDS IN THE INDIAN AUTOMOBILE INDUSTRY


Until recently, India has the dubious distinction of being the home of some of oldest and least updated cars in the world. The Ambassador, from Hindustan motors is still in production and bears the same features and styling as its first models, which Fiat rolled out in themed 1950s these two cars initially revolutionized the Indian roads, but failed to keep pace with the rapidly advancing technology and gradually become blight in the history of the automobile in Indian. Both the Ambassador and the Fiat were notorious for not even acknowledging customer grievances and were publicly scorned for continuing to produce age old relics for the Indian consumer.

However, India opened up its economy and invited multinational corporations to partake in its future. This cautious liberalization is reflected in the automobile industry, which has seen an unprecedented growth rate in the last decade. Undoubtedly, the firm which heralded the automobile revolution in India was Maruti Udyog Limited and its Japanese partner Suzuki which introduced the Maruti 800 in India in 1985. As a result after a long period of deprivation, the Indian consumer had access to a modern car at very affordable price. The original Maruti 800 was soon updated, and the new version became so successful that it captured 85% of the market share, and was viewed as the car that established Maruti Udyog Limited as a titan in the domestic passenger car segment. This spectacular success story made global automobile giants look at India as a vast, virtually untapped market with enormous potential. The 1990s saw a host of multinational companies enter different segments in the Indian automobile industry. Rover from Britain brought Montego in estate and saloon guise to replace its standard 2000 model. Peugeot, the French car giant launched the 309 in the mid-size car segment. Italian car manufacturer Fiat introduced the Uno in the lucrative small car segment. The Korean giant Daewoo launched its Cielo, a luxury saloon at an attractive price. Ford, a big name throughout the world spirited its hugely successful Escort as its flagship model in India and launched Ikon in 2000. Opel from General Motors, soon followed suit and launched Astra in the fast growing mid-size size luxury car segment. Mercedes Benz also entered India with its luxury E230 and E250 D models.

Global players like Skoda, Volkswagon, Renault, Toyota, B.M.W. and other automobiles heavyweights are closely monitoring the Indian market due to its strategic importance in the Asian sector.

Introduction To The Company

Mercedes- Benz India Limited (MBIL) is a 100% subsidiary of the Daimler AG and one of the first auto joint ventures set up in India. Mercedes Benzs relationship with India dates back to 1950s when the company introduced trucks into India with local collaboration. The company entered the India market and set up Mercedes Benz-India in 1994. Mercedes- Benz India Limited was launched in 1995. It is a joint venture between the DM 124-billion Benz Ag and RS 10,073 crores Tata engineering and Locomotive Co. (Telco).The company is headed by Dr. Till Breaker de freitas from Pune,Maharashtra.

In line with Daimler Chryslers corporate philosophy, Mercedes- Benz India Limited was rechristened Daimler Chrysler India Private Ltd. It ahs long term commitment to the Indian market and has full support of its partner company for its future plans in India. Daimler Chrysler is well aware of the future potential of the Indian automobile market and the tremendous economic power the country can generate. The company is targeting 25% of the total turnover from Asia. Mercedes- Benz has been associated with India for more than 50 years Presently, Mercedes =Benz Indias engagement in India covers several domains:

Local production of Mercedes- Benz cars

Making available imported Mercedes Benz cars

Commercial vehicle operations

Global sourcing of auto components

Captive research and development

Mercedes Benz is also involved with social-oriented programs like:

Bio fuel from Jatropha

Road safety project for children

10

Automotive education

PROFILE OF T & T MOTORS

T&T Motors are the dealers of Mercedes-Benz vehicles in Delhi & NCR, Rajasthan, and UP & Uttaranchal. With exclusive retail business in these markets, T&T Motors is well positioned to satisfy customer demands in Sales & Service. World-class facilities enable a competitive team to get ahead of others in customer enhancement. They are: Professionally managed with separate proficiency benchmarking. The company President who has a background of more than 20 years of work experience oversees each business.

Certified as an 'MB Autohaus 250' Company by Daimler AG

The largest dealership of Mercedes-Benz India 11

The first dealership of Mercedes-Benz India to be certified as an ISO 9001:2000 company T&T Motors Facility:

5 showrooms, 4 workshops and 1 Mega Body shop in Delhi & NCR

15 repair and preparation bays

2 paint booths with aluminum repair bay

2 authorized service stations at Jaipur & Lucknow

4 other major towns of territory covered by Channel Partners.

Periodic service camps are organized in up-country markets such as Agra, Kanpur, Dehradun & others in order to address the service requirements of vehicles which are not able to reach Delhi often.

Our Workshops & Body shop are as per AH-250 standards with impressive capacities

12

WORK CULTURE AT DAIMLER CHRYSLER INDIA


Products that meet such high demands also require high standards from people producing them the staff of Daimler Chrysler. A high level of qualification, focused motivation and the uncompromising identification of the staff with their task are the basis of the image which Daimler Chrysler has acquired with their products all over the world.

Mercedes Benz has equipped the production facilities with the latest state of the art engineering. It has also invested in the continuous training and education of the staff in the training center. The company encourages team work, group dynamics, responsibility and outstanding performance. All this service the purpose of creating the optimal basis for quality. International high tech companies have had their products developed and produced in India for years-especially in the field of computers and computer software. There is a large potential of highly qualified and highly motivated staff in India from manual works to top manager 13

This is true for production facilities in India, as it is in any other part of the worked. Indian workers may differ from their German counterparts, but they have the same level of qualification a their counterparts in Germany. They also enjoy the same facilities and level of training as their counterparts in any other Mercedes Benz production facility. The training guidelines are identical to those in Germany, and the examinations to be passed are of the same caliber and are awarded with the exact same job titles as in Germany. The German colleagues who carry out senior jobs for Daimler Chrysler in India play an important role in education, production and quality control. The result of the collaboration between Indian and German colleagues is high quality work which translate to outstanding quality products Mercedes Benz made by Daimler Chrysler AG

14

SOCIAL AND ENVIRONMENTAL RESPONSIBILITY

Mercedes- Benz India is not only a leading vehicle manufacturer, but also an important participant in society in general. The company has a social commitment to all the communities in which they operate. The Jatropha Biodiesel Project address issues such as rural income and employment, indigenous and environment friendly bodices and reclamation of wasteland. Automotive training programmes are aimed at developing local technical competence in India. Mercedes Benz India also have a Mobile Kids programme that runs in various schools across India that takes internationally relevant traffic safety topics and brings them across through information, motivation and training; the MercedesBenz International School information , motivation and train gin. The Mercedes Benz International school meets educational requirements internationally. Social responsibility is

15

an important factor the long term success of the company as only then can it contribute towards peace and prosperity in the future. For Daimler Chrysler India environmental protection is a corporate goal that is to be practiced with devotion. The company has been awarded the prestigious ISO 140001 Certificate for implementing the Environmental management system . Keeping in line with Daimler Chryslers policies towards environmental protection, DaimlerChrysler India is making every effort towards protecting the environment.

16

CUSTOMER RELATIONSHIP MARKETING

Mercedes Benz India has developed a world class dealer network across the country with presence in 30 cities. Daimler Chrysler India has dedicated network of Mercedes- Benz authorized dealerships comprising of 15 Mercedes- Benz showrooms and 17 service workshops all across India. The company implemented the Mercedes-Benz Retail Operating System which ensures that all Mercedes- Benz dealerships follow standardized retail operating procedures and deliver high standards of service to the customers. The right atmosphere, aesthetic product presentations and qualified sales personnel who know exactly what a customer is looking for makes buying Mercedes vehicle at a MercedesBenz showroom a truly unique experience. The exemplary engineering qualities of a Mercedes-Benz car only be matched by firstclass after-sales service and each Mercedes- Benz Authorized service station is equipped with the state-of-the-art infrastructure to handle the most critical service needs. Needless to mention, modern equipment requires skilled personnel and the Mercedes-Benz service center employs a team of dedicated and well-trained service processionals

17

And in the endeavor to provide total customer satisfaction, nothing is left to chance. Daimler Chrysler India has equipped its entire dealer network with 24- hours service to provide round the clock service to it valuable customers. The Mercedes- Benz service vans are equipped with the latest automatic diagnostic instruments and offer breakdown assistance even in remote places. The company has lunched the Mercedes-Benz Club, which brings together like-minded Mercedes-Benz owners and caters to their special interests and needs. The philosophy of Mercedes-Benz Club is to bring Mercedes customers closer through activities they would like to identify with and get them further associated with the Mercedes- Benz brand. Another medium for interaction with the customers in through the companys website www.Mercedes-benz.com the website provides a unique Mercedes- Benz car configuration, first of its kind amongst India car manufacturers, which makes it possible to virtually build, select the color, upholstery and options and view that desired Mercedes car. There is also a pre- owned car search facility and the facility to book service appointments on the website and the customers can send their requests online to the nearest MercedBenz dealer.

18

PRODUCT PROFILE

In the last two years, Daimler Chrysler India has extended the product range to the maximum possible, offering the exclusive customers a variety of Mercedes- Benz products. The company has been a main contributor to the expansion of the luxury vehicle segment in the Indian market. In January 2000, the company introduced Mercedes-Benz E-Class (W 210) petrol and E 220CDI Diesels versions with a number of unique additional features. In addition to the companys own manufactured range the Mercedes-Benz S-Class, E-Class and C-Class, Daimler Chrysler India has further expanded the product range to make variety of imported vehicles like Mercedes-Benz S-Class, M-Class, SLK, etc. available to discerning Mercedes Benz customers. The market trend in India in the last couple to years reflects a clear shift in customer preference to words the latest technology, safely, comfort and environmental compatibility.

19

Keeping this is mind; Daimler Chrysler India has been following the product extension stringy with total commitment and offering the latest and most sophisticated technology Model/class: C-Class: The C-Class is a pleasure to behold: its taut lines lend it an air of effortless superiority while the wide radiator grille and distinctive rear section announce a vehicle with dynamic personality. CL-Class: The shape of the CL-Class Coupe is typical Mercedes-Benz Breathtakingly elegant and dynamic. This is particularly true of the new V 8-engine Cl 500 with 285 KW (388 hp) and engine CL 600 with 380 kW (517 hp) and an 830 Nm torque rating. CLS-Class: The CLS-Class is a dream coupe with four doors, the elegant curves of its sleek roofline stretching between the long front and rear overhangs. The CLS- Class is a 8unique synthesis of design and driving 20

pleasure. E-Class: The E-Class is a byword for comfort, safety and elegance. Comfort of the highest order is a defining attribute of the E-Class. M-Class: For the M-Class, comfort is more than just an opulent interior, the 7 G-TRONIC automatic transmission, with seven forward gears the transmission delivers excellent a acceleration and low fuel consumption. S-Class: The S-Class is an attitude, an aspiration, a way of seeing things, in terms of innovative technology, the S-Class has always played a SAFE(R)- the S-Class has set trends which the rest of the car industry has followed

21

SLK-Class: The SLK- Class shows a great deal of respect for the legendary racing car. The SLK is the worlds best selling roadster in its class. The unique AIRSCARF ensures that SLK drivers can enjoy the top -down sensation. And its arrow =Shaped body just oozes classic sports car design.

A A Class: The A-Class is a ground breaking car and after seven years in production, Mercedes Benz sold over 1.1- million units of the model. The all-new A-Class is available with a choice of six engines (3 petrol and 3 diesel and in Classic, Classic SE, Elegance Se and Avant- Garde SE trim levels.

22

Chapter 2

Literature Review

23

OPERATIONAL CHALLENGES IN THE AUTOMOBILE INDUSTRY: A critical review of literature


K.S. Dixit , J.P. Modak and M. P. Singh (IJAEST) INTERNATIONAL JOURNAL OF ADVANCED ENGINEERING SCIENCES AND TECHNOLOGIES Vol No. 10, Issue No. 2, 285 - 299

Abstract Time management has probably become the most important aspect in 21 st century, with automobile sector being no exception. The intricacies related to scheduled maintenance of vehicles have not made the job of providing best service any easier. The behavioural aspects associated with the overall process also provide numerous challenges. Furthermore, the lack of adequate knowledge and unavailability of specific literature was the main precursor of this study. This review was carried out to assess the past research efforts and its validity for possible application and formulation of novel approaches for sustainable growth of service quality in industry in general and automobile sector in particular. The literature was reviewed by following the standard methods of content analysis and the results are presented under appropriate subsections.

24

Introduction The critical time and effort put into keeping up with scheduled maintenance can save customers money in the long run. There are procedures and checks that the car needs at varying intervals. All vehicle manufacturers have developed a maintenance schedule and service intervals that are specific to each car model, however, many times it is difficult to follow regular maintenance checklists. Regular maintenance of vehicles is vital to obtain optimum performance for longer duration. But, often the maintenance schedule demands some extra efforts to be put in by the vehicle owners, automotive dealers, manufacturers, etc. However, it is very difficult to expect all the before mentioned dimensions to behave in a well coordinated way.The lack of coordination results in less customer satisfaction that affects the overall bottom line of manufacturer and dealers. Hence, to assess the evolution of research efforts in this domain a systematic review has been carried out to find the research gaps and probable future studies for sustainable growth of the automotive sector. Methodology The literature review was carried out to identify the previous research efforts and directions related to the main area of this research. The objective was to identify the research gaps. This review presents the underlying pattern of evolution of thoughts and ideas in the selected domain i.e. automobile service sector. Similarly, to the extent possible, care was taken to reproduce the original terminology used by the authors, to preserve the

25

originality of the views. The literature review addressed various issues encompassing the field of service quality evaluation, especially in relation to automobile sector; however, related and relevant literature was also used for theorization, so that the

conclusions of this study would be more reliable as well as valid. This chapter is an effort of deductive reasoning methodology that was carried out to identify various issues encompassing the service quality in automobile sector. Automobile Sector - Service quality Ruyter (1997) have reported that service quality should be treated as an antecedent of service satisfaction. Goodale et al., (1997) analyzed the perceptual linkages between empowerment and employees' perceptions of the service quality that they are able to provide for the organization. Authors reported that the intrinsic rewards for and the extent to which service providers believe members of the organization value exceptional customer service (i.e., a service quality culture exists in the firm) had a strong, positive relationship with perceptions of service quality. Andaleeb and Basu (1998) studied the relationship between customers' overall evaluation of service quality. The findings indicated that the empathy demonstrated by the service provider was important only when the service was not under warranty. Fairness and reliability were found to be important when there was no warranty and their effects were heightened by the presence of warranty. The influence of responsiveness and convenience were significant and remained the same for products with or without warranty. Schneider et al., (1998) stated that employee work and service quality is a necessary cause for a good

26

climate for service, which is reflected in customer satisfaction. They further stated that climate for service rests on the foundation issues, but in addition it requires policies and practices that focus attention directly on service quality. reported that higher levels of both Hays and Hill (2001) and

employees motivation/vision

organizational learning positively affect perceived service quality by the customers. Brady et al., (2002) reported that the service quality in automobile industry should be measured using a performance-only index as opposed to the gap-based SERVQUAL scale. Snipes et al., (2005) stated that employee job satisfaction is a relevant factor in service quality improvement. Employees who feel satisfied with their jobs provide higher levels of customer satisfaction. This study concludes that certain job satisfaction facets may have a larger effect on service quality than others. Lin (2007) has reported that improvement in service quality has a positive effect on the attitude of consumers toward the perceived value in the future. Gil et al (2008) reported that service encounter directly and significantly affects perceived service value which is the final antecedent to customer satisfaction and secondly, that the level of employment satisfaction moderates its effect on service value. Liu et al., (2009) reported the utility of comprehensive quantitative (normalized service level achievement function) and

qualitative (hierarchical model) perspective based evaluations for service quality of technical operations. Authors concluded that the quantitative and qualitative evaluations together form a comprehensive solution which is universal, customer-oriented and

flexible. Chiu et al., (2011) applied the Taiwan Customer Satisfaction Index model

27

to the automobile industry in Taiwan. Authors concluded that the total service time and certain operational procedures are needed to be modified to increase their competitiveness. Technology Management Bailey (1992) highlighted importance of technical information, especially in view of it being a vital link in the technician's ability to accomplish his tasks and understand technology. Flood (1994) reported that integrated systems should be deployed to get optimum benefits of various technologies for the organizations. Chung and Hung (1996) reported that the economic design of x- control charts in a situation, where the duration time that the process remains in the in-control state follows a general distribution which has an increasing hazard rate. The study results indicated that the proposed model under a preventive maintenance policy has a lower expected total cost per hour than those reported previously. Miyazaki and Kijima (2000) put forward a model classifying complex situations, including technology management on a two dimensional space, i.e., object-related and human-related complexity. The authors reported that the automobile sector has been undergoing radical changes due to growing internal and external complexity. Their results were based on the data collected from the Japanese automobile sector (chosen companies were Toyota, Nissan, Honda, Mitsubishi Motors, and Mazda). Okada (2004) reported that dynamic industrial transformations in the 1990s significantly changed the nature, content and extent of skills development at domestic suppliers of automobile industry.

28

Furthermore, he stated that various institutional mechanisms created by assembler firms played a critical role in upgrading skills at suppliers, transforming the supply chain into a learning chain. Karwan and Markland (2006) suggested that IT-enabled approach to designing a service and operational service alignment is the key to avoiding results that have long been labeled a dilemma in the service sector. Williams (2007) argued that most current initiatives (evidence of higher-order learning amongst stakeholders; changes in infrastructure and institutional practice; changes in vehicle design,

manufacture and end-of-life management; changes in vehicle ownership structure; and changes in modes of produceruser interactions) do not unify these key elements of a product service systems in a single coherent system they do not constitute completeversions of product service systems, and therefore, fail to deliver the full range of envisaged benefits in contributing towards system innovation. Orsto and Wells (2007) stressed that main concepts of technological regime, such as automobile design, material selection, and the economic fundamentals are primarily

commercialisation. Yousefi and Hadi- Vencheh (2010) based on the results of study using Multi-Criteria Decision Making concluded that safety and price are the

customersmost important criteria for automobile selection. Cardilo (2011) stressed a need to learn and evolve with technological advancements and embrace standards and legislation to lead the automobile industry.

29

In House Performance Das (1987) reported that ergonomically designed manufacturing work system proves to be effective and efficient in terms of manufacturing processing time, safety, training time, and worker productivity, satisfaction, and job attitudes. Stamper (1989) outlined an approach to suggest practical enhancements to established support systems in a way that is realistic and achievable. The approach utilizes following key areas i.e. tools supported by engine manufacturers, procedures to update these tools in the field and techniques which can be employed to facilitate more standard support. Gary (1992) studied Quality and Productivity of car service in future. Authors

perceived that those vehicles that have the best service records will outsell their competition and auto repair like television repair will become a non-issue for thefuture. This may mean that the need will be for fewer but better skilled and more productive technicians. Cerny (1992) stressed a need of performance based technician training programs and insisted that automotive manufacturers, aftermarket suppliers and mass merchandisers must build sufficient profit into their products and services to support required training. Gahrs (1992) highlighted need of recruitment and retainment of automotive service technicians. Author also stressed that in order to be competitive, the image, pay, benefits, and working conditions of the automotive repair technician will have to be improved by the automotive service industry. Das and Sengupta (1996) provided a conceptual basis for a good workstation design, where population

anthropometry (adequate posture, work height, normal and maximum working areas,

30

lateral

clearance

and

visual

requirement)

is

given

due

importance while

implementation of various components of the workstation. Jasch and Lavicka (2006) reported that the two major cost drivers in Styrian automobile cluster in Austria are the purchase costs of non-product output and the costs related to lost working days because of sick leave and accidents and the overtime pay to make up for these lost working days. Furthermore, it has been observed that the work of the Environmental Health and Safety department helps to reduce these costs significantly. Zhu et al., (2011) reported that the fault losses can be further reduced by the optimization of

maintenance interval and maintenance duration. Customer Satisfaction Hensel (1990) has stressed the need to create a supportive internal service climate, reinforced by recruiting, training, and motivational approaches that serve to enhance service workers' desire and ability to meet and exceed customer expectations. Waldman and Gopalkrishnan (1996) have reported that customer perceptions would be a function of a combination of operational, organizational, and human resource factors that have been associated with total quality management. Ugboro and Obeng (2000) reported that employee empowerment and improved levels of job satisfaction are facilitated by top management leadership and commitment to the total quality management goal of customer satisfaction by creating an organizational climate that emphasizes total quality and customer satisfaction. In the context of the automotive industry, Devraj et al., (2001) reported that product and service quality simultaneously affects consumers' purchase

31

intentions. Anton et al., (2007) have reported poor service quality and low firm commitment undermine consumer satisfaction and have only an indirect switching intentions, price unfairness and anger effect on on

incidents have a strong effect

switching, both directly and indirectly through satisfaction. Brown and Lam (2008) reported that there is strong relationship between employee job satisfaction and customer satisfaction and perceived service quality. Authors used path analytic model and concluded that customer-perceived service quality

completely mediates the relationship between employee job satisfaction and customer satisfaction. Dabholkar and Abston (2008) have proposed a conceptual framework that highlights the role of internal marketing as a tool for enhancing the competitive advantage gained by strategically considering the customer contact employee's role as external customer, which ensures customer satisfaction. Adela (2009) reported that every company and every team is concerned today about the service quality in automotive industries because of there is a perfect correlation between the level of the First Time Service Quality and Customer Loyalty.

Modeling Approach/ Service Quality Models Onyebueke et al., (1987) developed a PC based mathematical and rapid prototyping technique for anthropometric accommodation in a maintenance environment

32

using the principle of simulation based design. The model has wide scale applicability, especially when maintenance is required in a confined environment. This analysis technique developed prevents sending a maintenance crew with wrong body size to an assignment. Li et al., (1991) developed an enhanced fuzzy neural network based decision support system for managing automobile spares inventory in a central warehouse. Their results (after evaluation with the real word data and experimental results) indicate that the developed enhanced fuzzy neural network outperforms other five models in fill rate and stock cost measures. Oke and Charles- Owaba (2006) studied the uncertainty in the development of a model that schedules both preventive maintenance and operational activities. Authors used fuzzy logic to transform the human expertise into IF-THEN rules. Authors claim that the approach has semantic uncertainty with the associated the advantage of revealing

non-specifying measures of the process.

Ben-Daya and Alghamdi (2000) reported that the integrated hazard rate condition may be used to greatly reduce the number of decision variables at the expense of a reasonable increase in the expected total cost of preventive maintenance. Gaurishankar and Sahani (2003) studied the maintenance of an operational system consisting of a number of independent and identical units. Authors concluded that reliability analysis is critical factor to determine the effect of preventive maintenance and repair on the float factor determination. Zapf (2004) on the basis of their study concluded that the efficacy of service process designs for handling customer requests within a communication center are dependent on the

33

process characteristics, such as the level of difficulty (standard versus special requests) and the communication channel (synchronous versus a-synchronous

requests). Martnez and Martnez (2010) studied past work in the conceptualization and measurement of perceived service quality models proposed in the last 25 years. Based on their study, the authors concluded that there is a need to develop more creative models of service quality, which should help in quantitative analysis to minimize the limitations that characterize the most widely used models. Gonsalves and Itoh (2011) described the performance modeling and the optimization of

concurrent service systems. On the basis of study results authors proposed the novel Client Server Petri net model editorsimulatoroptimizer, which has practical implications for an automobile purchase concurrent service system. Moghaddam and Usher (2011) developed a new optimization model to determine the optimal preventive maintenance and replacement schedules in repairable and maintainable systems using exact and metaheuristic algorithms. Olle and Carl (2011) have reported a delineate building blocks for end-user charging services of electric cars. They suggested that these building blocks can easily be transformed into objectives and constraints in a charging schedule optimization problem formulation. Pattada et al., (2011) presented an interactive, fault model-based prototype diagnostic tool that can assist need to

service technicians in isolating the root cause of vehicle problems and performing corrective repairs. Authors claimed that this tool will enable correct and efficient first-time repairs leading to a reduction in warranty costs and repeat visits.

34

Conclusions Service quality is the backbone of automobile sector. The growth of this sector has seen tremendous association with the innovative measures taken by the industry to manage and improve the service quality. The phenomenon of globalization has made the industries view customer satisfaction in entirely new way. Those industries, which have given this aspect (customer satisfaction) its due importance have witnessed sustainable

improvements in their bottom line. However, the recent advances in the field of service sector have put forward innumerable opportunities for improving service quality, which was evident from the limited literature (of service quality in automobile sector) availability. Based on the literature, it may be concluded that the service quality is dependent on many factors as the domain under consideration (automobile sector) is very dynamic. It was also evident from the literature, that the major factors that govern the service quality are time, cost, skills of technicians, quality of technical manuals, organisation culture, workplace design, economic condition of the region, etc.

35

Chapter 3

Objective Of The Study

36

OBJECTIVES OF THE STUDY


The following are the objective s of the study: 1. To find the popularity of Mercedes Benz. 2. To analyze the customers preferences to Mercedes- Benz cars in particular. 3. To analyze the factors which in influence their decisions.

SCOPE OF THE STUDY


The study is based on the market survey conducted for T & T Motors in Delhi city. The study provides an area to find whether Mercedes Benz is providing professional service to the satisfaction of the customers.

37

Chapter 4

Research Methodology

38

4.1 TITLE OF THE STUDY:


A study on customer satisfaction of Mercedes- Benz in India.

4.2 STATEMENT OF PROBLEM:


In the automobile sector, four wheelers play a vital role and contribute to the economic growth of the country. The characteristics and nature of the India are very difficult to understand and the defined population of the country has been divided in to different social classes, namely high class, middle class, and lower class, As four wheelers are owned by the upper middle class and higher- class people, the present study tries to analyze the opinions of the customer, why they prefer particular service center for getting their car serviced repaired.

4.3 NEED OF THE STUDY:


There are many players in the market namely T & T Motors and Mercedes Auto Hence customers have many choices. The need of the study was to determine the consumers mindset towards present Mercedes Benz care and its service. 1. It is necessary to know the responses of the consumers regarding the service expenses, quality of work, performance etc. of the service center which they prefer.

39

2. It is important to know the trend awareness of customers towards the service center, which they prefer.

3. It is necessary to know the present competition to T & T Motors so that company can upgrade its product and marketing strategies.

4. It is necessary to know the desire of the customer, what they expect from the service center and what steps should be taken by the service center to fulfill the expectations of it customers.

4.4 RESEARCH METHODOLOGY OF THE STUDY:


DESCRIPTION OF RESEARCH AND DESIGN The Encyclopedia of social science defines research as the manipulation of generalizing to extend, correct or verify knowledge. This definition highlights the primary purpose of research; arriving at generalization and the method of manipulation, which is an aspect of experimentation adopted for the purpose.

Sampling size: The study is conducted on a sample size of 100 respondents who are owners of Mercedes-Benz cars.

Sampling Frame:

40

The target population for the study consists of customer of T & T Motors.

Research instruments:

An interview was scheduled to conduct the study.

SOURCE OF DATA
PRIMARY DATA:

Primary data are original source from which the researcher directly collects data that have not been previously collected from the structured questionnaire. For the purpose of collecting the same, hundred respondents have been selected. In this study primary data plays a vital role for analysis, interpretation, conclusion and suggestion.

SECONDARY DATA:

These are source- containing data, which have been collected and complied for another purpose. The secondary sources consist of readily available media and already compiled statistical statements and reports whose data may be used by the researcher for the studies.

41

Secondary data have been collected from the following. 1. Various Newspapers 2. Company Brochures 3. Company Reports 4. Information From Internet 5. Car Magazines

DATA COLLECTION INSTRUMENTS


The instrument used for his study is structure interview schedule. Questions related to objectives of the study from the major portion of the interview schedule. It mainly consists of multiple choice questions where the respondents can make one or more of the several choice of answers.

FIELD WORK
The project involved fieldwork of 30 days, where in the survey was carried out and respondents who are customers of T & T Motors Mercedes service center were questioned to know why they prefer T & T Motors for servicing their Mercedes Benz car.

42

4.5 REFERENCE PERIOD:


The data for the study has been collected the year 2011-12.

4.6 LIMITATION OF THE STUDY:


Despite all possible efforts to make analysis more compressive and scientific, a study of the present kind is bound to have certain limitations. The present study is an empirical work presented in a descriptive manner. Since the objective to the study will meet this kind of analysis, no attempt has been made to provide a conceptual analysis. However the role of automobile in the development of the economy and future prospects have been rightly understood and explained. There are always certain limitations of interview method, observation technique and questionnaire method. Due to time constraints and other supporting factors the study has been limited only to the customers of T & T Motors (Mercedes Benz) service center, Further it is inevitable in a study of this kind that time analysis has to be done based on the opinion and attitudes of the dealers. In such cases the results at best re near to truth. However an honest attempt has been made to report and analyze the opinions of the dealer.

43

Chapter 5

Data Analysis and Interpretation

44

Table 5.1

Showing the age group of Mercedes-Benz Car owners in Delhi

Sample size No. of Respondents Percentage Source: Primary Data Analysis

Below 30 4

31-40 30

41-50 52

Above 51 14

30

52

14

Out of the 100 respondents, 52 belong to the 41-50 age group followed by 30 respondents in the 31-40 age group, 14 respondents in the above 51 age group and 4 respondents in the below 30 age group.

45

Graph No. 5.1: Distribution showing the age group of respondents

14%

4% 30% Below 30 31-40 41-50 Above 51

52%

Interference: 52% of Mercedes-Benz owners in Delhi are in the 41-50 age group followed by 30% in the 31-40 age group, 14% in the above 51 age group and only 4% below 30 years. It is found that middle age group people are more attracted to Mercedes Benz Cars. MBIL should target this group as its primary market segment.

46

Table 5.2

Showing the occupation of Mercedes-Benz Car owners in Delhi

Sample size

Professional

Producers Export & import 46 28

Service

Agriculture

No. of Respondents Percentage Source: Primary Data Analysis

14

46

28

14

Out of 100 respondents, 46 are in the manufacturing business, followed by 28 respondents who are in the export / import business, 14 respondents are working in the services sector, 8 respondents are professionals and only 4 respondents are in agriculture.

47

Graph No. 5.2: Distribution showing the occupation of respondents

Interference: 46% of the Mercedes-Benz car owners are in the manufacturing business, followed by export/import business at 28%. 14% of the car owners are in the service sector, 8% are professionals and only 4% are in agricultural business. It is observed that Businessmen in manufacturing and export/.import are interested in purchasing Mercedes Benz cars.

48

Table 5.3

Showing the overall experience of customers with Mercedes-Benz car

Sample Size No. of Respondents Percentage Source: Primary Data Analysis

Delighted 65 65

Satisfactory 30 30

Unsatisfactory 5 5

Out of 100 respondents, 65 are delighted with their experience of Mercedes Benz car, followed by 30 respondents who are satisfied with their Mercedes Benz car and there are only 5 customers who are unsatisfied with their car.

49

Graph No. 5.3: Distribution showing the overall experience of customers with Mercedes-Benz car

Interference: 65% of the customers are delighted with their experience of Mercedes Benz car, followed by 30% respondents who are satisfied with their Mercedes Benz car and there are only 5% customers who are unsatisfied with their car.

50

Table 5.4

Showing the method of payment

Sample size No. of Respondents Percentage Source: Primary Data Analysis

Cash 6

Finance 68

Lease 26

68

26

68 of the respondents purchased the car through finance, followed by 26 respondents who purchased the car through lease. Only 6 respondents purchased the car by paying cash.

51

Graph No. 5.4: Distribution showing the Method of Payment

6% 26%

68%

Cash

Finance

Lease

Interference: Most of the owners brought the car through finance (68%) followed by taking lease (26%) and cash purchase (6%). MBIL should arrange a more convenient method for obtaining finance for its car in order to increase the sales.

52

Table 5.5

Showing the factors influencing the respondents decision while

purchasing the car

Sample size

Self

Spouse

Children

Friends / Relatives 34

No. of Respondents Percentage Source: Primary Data Analysis

44

22

44

22

34

Out of the 100 respondents, 44 respondents make their own decision to buy the car; their friends and relatives influence the decision of 34 respondents. Only 22 of the respondents decision to purchase the car are influenced by their spouse.

53

Graph No. 5.5: Distribution showing factors influencing the purchase decision

Interference: Most of the Mercedes Benz car owners took their own decision to buy the car themselves (44%). Some of them are influenced by their friends and relatives (34%). And only 22% of them are influenced by their family to buy a car.

54

Table 5.6

Showing how the customer sees a Mercedes-Benz Car

Sample Size No. of Respondents Percentage

Family Car 26

Corporate Car 20

Executive Car 54

26

20

54

Source: Primary Data Analysis Out of the 100 respondents, 54 respondents received saw Mercedes Benz as an executive car, followed by 36 respondents who saw it as a family car. 20 respondents saw it as a family car.

55

Graph No. 5.6: Distribution showing the sources of information

Interference: 54% of the customers saw Mercedes Benz car as an executive car followed by 26% of the customers who saw it as a family.20% of the customers saw it as a corporate car.

56

Table 5.7

Showing the efficiency of servicing facilities of Mercedes-Benz Delhi

Sample size No. of Respondents Percentage Source: Primary Data Analysis

Excellent 52

Good 34

Average 10

Poor 4

52

34

10

Out of the 100 respondents, 56 respondents felt that Mercedes Benz has excellent servicing facilities, followed by 34 respondents expressing good servicing facilities. 10 respondents felt that the servicing facilities were average and 4 respondents felt that the servicing facilities were poor.

57

Graph No. 5.8: Distribution showing availability of spare parts

Interference: Most of the owners expressed the term excellent regarding the servicing facilities of Mercedes-Benz (52%), followed by good (34%) and average (10%). However 4% of the respondents/owners expressed the term poor. Mercedes-Benz needs to rectify this by providing better servicing facilities to its customers at fair prices.

58

Table 5.8

Showing the availability of spare parts for Mercedes-Benz Delhi

Sample size No. of Respondents Percentage Source: Primary Data Analysis

Excellent 46

Good 34

Average 14

Poor 6

46

34

14

Out of the 100 respondents, 46 respondents felt that Mercedes Benz has excellent availability of spare pars, followed by 34 respondents expressing good availability of spare parts. 14 respondents felt that the availability of spare parts was average and 6 respondents felt that the availability of spare parts was poor.

59

Graph No. 5.8: Distribution showing availability of spare parts

Interference: Most of the owners expressed the term excellent regarding the availability of spare parts for Mercedes-Benz (46%), followed by good (34%) and average (14%). However 6% of the respondents/owners expressed the term poor. Mercedes-Benz needs to rectify this by providing spare parts promptly to its customers at fair prices.

60

Table 5.9

Showing the cost of spare parts of Mercedes-Benz

Sample size No. of Respondents Percentage Source: Primary Data Analysis

High 40

Reasonable 60

40

60

60 out of the 100 respondents / owners expressed their satisfaction regarding the cost of spare parts for the car. 40 respondents felt that the cost of spare parts is high. MBIL should communicate the quality of its spare parts to eliminate the conception of high price among its customers.

61

Graph No. 5.9: Distribution showing the cost of spare parts

40%

60%

High

Reasonable

Interference: Most of the owners expressed their satisfaction regarding the cost of spare parts for the car (60%). However some of the respondents felt that the cost of spare parts is high (40%). MBIL should communicate the quality of its spare parts to eliminate the conception of high price among its customers.

62

Table 5.10

Showing the source of information about Mercedes-Benz Car

Sample Size No. of Respondents Percentage

Print Media 36

Visual Media 0

Outdoor 10

Others 54

36

10

54

Source: Primary Data Analysis Out of the 100 respondents, 54 respondents received information regarding Mercedes Benz from friends, relatives and other sources, followed by 36 respondents who received the information through print media. Only 10 respondents received the information from outdoor media. However no respondents received information from visual media.

63

Graph No. 5.10: Distribution showing the sources of information

Interference: The first source of information for Mercedes-Benz car owners is through friends, relatives and other sources (54%), followed by print media (36%) and outdoor media (10%) MBIL should give more importance to visual media to communicate with its customers by focusing on the advertising media.

64

Table 5.11

Showing the promotion strategy of Mercedes-Benz in Delhi

Sample size No. of Respondents Percentage Source: Primary Data Analysis

Excellent 8

Good 20

Average 44

Poor 28

20

44

28

Although the present customers have no interest in the promotion strategy of MercedesBenz in Delhi but the survey figure is not satisfactory. MBIL should give more importance on its promotion strategy that should include the satisfied customers also.

65

Graph No. 5.11: Distribution showing the promotion strategy

Interference: 8% of the respondents felt that the promotion that the promotion strategy of Mercedes Benz was excellent, followed by 20% who felt it was good and 44% felt that the promotion strategy was average. Whoever 28% felt that the promotion strategy was average. However 28% felt that the promotion strategy was poor.

66

Table 5.12

Showing the Comparison between a Mercedes-Benz car and an imported luxury car

Sample size No. of Respondents Percentage

Excellent 34

Better 46

Good 20

Poor 0

34

46

20

Source: Primary Data Analysis Out of 100 respondents, 34 respondents felt that Mercedes Benz car was excellent, followed by 46 respondents who expressed the Mercedes Benz car was better. 20 respondents felt although the Mercedes Benz car was good it was at par with the imported luxury car. None of the respondents felt that Mercedes Benz car was poor or worse than the imported luxury car.

67

Graph No. 5.12: Distribution showing the comparison between Mercedes Benz Car and an imported luxury car

Interference: 34% of the respondents felt that Mercedes Benz car was excellent, followed by 46% who expressed that Mercedes Benz car was better. 20% of the respondents felt although the Mercedes Benz car was good it was at part with the imported luxury car. None of the respondents felt that Mercedes Benz car was poor.

68

Chapter 6

Findings

69

FINDINGS
1. 52% of Mercedes-Benz owners in Delhi are in the 41-50 age group followed by 30% in the 31-40 age group, 14% in the above 51 age group and only 4 % below 30 years. 2. 46% of the Mercedes- Benz cars owners are tin the manufacturing business, followed by export/import business at 28 % 14% of the car owners are in the service sector, 8 % are professionals and only 4 % are in agricultural business. 3. Most of the Mercedes-Benz car owners took their own decision to buy the car themselves (44%). Some of them are influenced by their friends and relatives (34%). And only 22% of them are influenced by their family to buy a car. 4. Most of the owners brought the car through finance (68%) followed by taking tease (26%) and cash purchase (6%). MBIL should arrange and more convenient method for obtaining finance for its car in order to increase the sales. 5. The source of information for Mercedes-Benz car owners is through friends, relatives an other sources (54%) followed by print media (36%) and outdoor media (10%). 6. 98% of the respondents are satisfied with the servicing facilities of the company. Only 2% of the respondents are dissatisfied with the delivery.

70

7.

Most of the owners expressed the term excellent regarding the availability of spare parts for Mercedes-Benz (46%), followed by good (34%) and average (14%). However 6% of the respondents /owners expressed the term poor.

8.

Most of the owners expressed their satisfaction regarding the cost of spare parts for the car (60). However some of the respondents felt that the cost of spare parts is high (40%).

9.

34% of the respondents felt that Mercedes Benz car was excellent, followed by 46% who expressed that Mercedes Benz car was better. 20% of the respondents felt although the Mercedes Benz car was good it was at par with the imported luxury car. None of the respondents felt that Mercedes Benz car was poor.

10.

8% of the respondents felt that the promotion strategy of Mercedes Benz was excellent, followed by 20 who felt it was good and 44% felt that the promotion strategy was average. However 28% felt that promotion strategy was poor.

71

Chapter 7

Suggestions & Recommendation

72

SUGGESTIONS
After collecting the data from various sources and analysis of the findings, the suggestions and recommendations are given below: 1. The service augmentation and service quality play an extremely important and pivotal role in overall customer satisfaction For this purpose the company can adopt the following measures: (a) (b) (c) 2. To take reasonable time of servicing. To keep an inventory of spare parts to serve the customer promptly. To give free wash every time the customer comes in for a service.

The company should adopt an aggressive promotional strategy its market segment to keep ahead of the competitors. The company can undertake the following activities (a) To arrange the grand Mercedes-Benz rally; this will get massive coverage in all leading newspapers and car magazines. (b) (c) To advertise in all leading newspapers, car magazines and auto journals. To sponsor a Golf Tournament at the Delhi Golf club.

73

(d)

To make a giant Mercedes-Benz model on the road to the airport and other important landmark.

(e) (f) 3.

To sponsor a cultural program or fashion show in a five star hotel. To telecast T.V advertisements.

The company can launch a number of new products and create a new segment for the product in the market.

4. 5.

The company can enhance its indigenization level to cut costs. The company can provide a finance counter in the showroom to ensure easy availability of finance to the customers.

6.

The company can organize a Mercedes-Benz club. For this purpose the company can do the following things: (a) (b) (c) To arrange rallies, among owners and enthusiasts. Arrange various cultural and fashion programs. To send a greeting card and flowers on the customers birthday and anniversary. (d) To arrange an annual meeting of all Mercedes-Benz owners as this will enhance interaction among them.

74

7.

Although the price of a Mercedes Benz Car is very high, the company is planning of launch other categories/models with lower price targeted at a younger market segment.

75

Chapter 8

Conclusions

76

CONCLUSIONS
Mercedes-Benz is an established company and well known company. After the market survey and analysis, following are the conclusions regarding customer satisfaction and the marketing strategy of the company (1) The brand image of the company is excellent. Mercedes Benz enjoys a better reputation than all of its competitors. (2) In all aspects of customer satisfaction, the company is way ahead of the competition and the industry average. (3) Mercedes Benz is an environmentally conscious company and is a pioneer in the research and development of alternate technologies and fuels. Mercedes Benz is also involved with social-oriented programs like: o Bio fuel from Jatropha

o Road safety project for children

o Automotive education

4.

The product quality of the company is of the highest standard in the industry. It follows the stringiest quality control measures.

5.

Its safety measures and technical performance are benchmarks in the industry.

77

Although Mercedes Benz is a leading car manufacturer, the company faces certain challenges and problems in terms of its pricing and promotion strategy. The company needs to overcome these challenges in order to be even more successful in target market segment. Some of the challenges faced by the Co are: 1. Lack of indigenization level leads to high price of its products. Mercedes Benz needs to considerably reduce the costs at all levels of production and distribution. 2. The promotional strategy is not aggressive enough as compared to the competitors. Mercedes Benz has no advertisements on the T.V. or the radio. 3. The company as only a limited number of dealers and service stations in the country. As a result the company is at disadvantage as compared to some of its competitor, who have a widespread network of dealers and service stations across the country.

78

Annexure

79

QUESTIONNAIRE
Dear sir/madam, I am Dishank Kukreja pursuing BBS from Delhi University. I am working on a project to study customer satisfaction among Mercedes Benz owners. The information provided by you in the following questionnaire shall be used only for the research purposes and shall be kept strictly confidential. You are required to fill up the following questionnaire. Thanks for your cooperation.

NAME: OCCUPATION: PROFESSION: Manufacturing Business: Service Business: Export import Business: Agriculture Business AGE GROUP: Below-30 31-40 41-50 Above 51 ( ( ( ( ) ) ) ) ( ( ( ( ) ) ) )

80

1. How do you measure your overall experience with Mercedes-Benz car? Delighted Satisfactory Unsatisfactory 2. ( ( ( ) ) )

The mode of payment for purchase of the car: Cash Leasing ( ( ) ) Finance ( )

3.

Whose decision influenced you most while purchasing the car? Self Children ) 4. What does Mercedes-Benz car mean to you? (Please rank them from 1 to 4 according to you preference). Image Luxury ( ( ) ) Status Symbol ( Safety and comfort ) ( ) ( ) ( ) Spouse ( Friends/relatives ) (

5.

How do you see a Mercedes-Benz car? Family Car Corporate car ( ( ) ) Executive Car ( )

81

6.

How do you perceive the after sales service of Mercedes-Benz? SERVICING FACILITY: Excellent Average ( ( ) ) Good Poor ( ( ) )

AVAILABILITY OF SPARES: Excellent Average COST OF SPARES: High ( ) Reasonable ( ) ( ( ) ) Good Poor ( ( ) )

7.

Which is your first source of information for Mercedes-Benz? Print Media Outdoor Hoardings ( ( ) ) Visual Media Others ( ( ) )

8.

What Do You Think About The Promotion Of Mercedes-Benz in Delhi? Excellent Average ( ( ) ) Good Poor ( ( ) )

82

9. How do you compare a Mercedes Benz car with other imported cars? Excellent Average ( ( ) ) Good ( )

THANK YOU FOR YOUR TIME AND CO-OPERATIONS.

83

Bibliography

84

BOOKS REFFERED: o Principle of Marketing by Philip Kotler and Gray Armstrong. Edition: publisher: prentice Hall of India o Consumer behavior by Leon G. Schiff man and Lazar Kanuk. Edition: sixth; publisher: prentice- Hal of India o Element of marketing management by Pradeep Kumar. Edition: Sixth; Publisher; Kedhar Nath Ram Nath & Co. MAGAZINES, NEWSPAPERS AND JOURNALS: o Business today o Motor India o Overdrive o Auto car o The Times Of India o The Economic Time o The Asian Age

WEBSITES: o www5.mercedes-benz.com/en/history/ o www.google.com o http://www.autocarindia.com/Search/Default.aspx?q=mercedes%20benz o www.tandtmotors.mercedes-benzdealers.co.in/Pages01/CompanyProfile.aspx

85

o www.wikipedia.org/wiki/Mercedes-Benz

86

You might also like