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A STUDY ON CUSTOMER SATISFACTION TOWARDS SALES AND SERVICE OF AMBAL AUTO. RAMANATHAPURAM (COIMBATORE) CHAPTER- 1 1.1.

, INDUSTRY INTRODUCTION 1.1.1. About the industry The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and exports about 1.5 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars were sold in India in 2009 (an increase of 26%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads. A chunk of India's car manufacturing industry is based in and around Chennai, also known as the "Detroit of India" with the India operations of BMW, Ford, Hyundai and Nissan headquartered in the city. Chennai accounts for 60 per cent of the country's automotive exports. Gurgaon and Manesar near New Delhi are hubs where all of the Maruti Suzuki cars in India are manufactured. The Chakan corridor near Pune, Maharashtra is another vehicular production hub with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Fiat and Force Motors having assembly plants in the area. Passenger vehicles in India This list is of cars that are officially available and serviced in India. While other cars can be imported to the country at a steep 110% import duty, car-makers such as Alfa Romeo, Maserati, Ferrari, McLaren, Aston Martin, Cadillac, Chrysler, SSC, MINI, Daihatsu, Lexus, Infiniti, Acura, Koenigsegg, Saab, Spyker, Renault, Peugeot-Citroen, Mazda, Ssang Yong, Kia and Proton are in varying stages of official introduction to the Indian automobile market.

Indian automotive companies


Chinkara Motors: Beachster, Hammer, Roadster 1.8S, Rockster, Jeepster, Sailster Hindustan Motors: Ambassador ICML: Rhino Rx Mahindra: Major, Xylo, Scorpio, Bolero, Thar, Genio Premier Automobiles Limited: Sigma, RiO San Motors: Storm Tata Motors: Nano, Indica, Indica CS, Sumo, Venture, Safari, Xenon, Aria Vista, Indigo, Indigo Manza, Indigo

Joint Venture automotive companies in India

Maruti Suzuki: Zen estilo, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Versa, Eeco, Gypsy, Grand Vitara

Foreign automotive companies in India


BMW India: 1 Series, 3 Series, 5 Series, X1. Fiat India (in collaboration with Tata Motors): Grande Punto, Linea, Palio Stile. Ford India: Ford Figo, Ikon, Fiesta, Endeavour. General Motors India Chevrolet (CSPIL): Spark, Beat, Aveo VA, Aveo, Optra, Cruze, Tavera.

U-

Honda Siel: Jazz, City, Civic, Accord. Hyundai Motor India: Santro, i10, i20, Accent, Verna Transform, Sonata Transform. Mahindra Renault: Logan Mercedes-Benz India: C-Class, E-Class. Mitsubishi (in collaboration with Hindustan Motors): Lancer, Lancer Cedia, Pajero Nissan Motor India: Micra.

Toyota Kirloskar: Etios, Corolla, Innova, Camry. Volkswagen India: Polo, Vento, Jetta, Passat.

Audi India: A4, A6. Skoda Auto India: Fabia, Octavia, Laura, Superb, Yeti.

Commercial vehicle manufacturers in India Indian brands


Force Hindustan Motors Premier Tata AMW Eicher Motors

Joint Venture Brands


VE Commercial Vehicles Limited - VE Commercial Vehicles limited - A JV between Volvo Groups & Eicher Motors Limited. Ashok Leyland - originally a JV between Ashok Motors and Leyland Motors , now 51% owned by Hinduja Group Mahindra Navistar - a 51:49 JV between Mahindra Group and Navistar International Swaraj Mazda - originally a JV between Punjab Tractors and Mazda , now 53.5% owned by Sumitomo Group Kamaz Vectra - A JV between Russia's KaMAZ and the Vectra Group

Foreign brands

Volvo Tatra MAN - as a JV with Force Motors , makes MAN Trucks in India Mercedes-Benz sells luxury buses in India Daimler AG - manufactures BharatBenz , a brand of trucks based on the Fuso and the Mercedes Benz truck platforms, which Daimler AG owns Scania Iveco Hino Isuzu Piaggio Caterpillar Inc.

Electric car manufacturers in India


Ajanta Group Mahindra Hero Electric REVA Tara International Tata

Production statistics The production of automobiles has greatly increased in the last decade. It passed the 1 million mark during 2003-2004 and has more than doubled since Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 Car Production 2,166,238 1,846,051 1,713,479 1,473,000 1,264,000 1,178,354 907,968 703,948 654,557 517,957 533,149 % Change Commercial % Change Total Vehicles Prodn 2,632,694 2,332,328 2,253,999 2,019,808 1,628,755 1,511,157 1,161,523 894796 814611 801360 818193 % Change

17.34 7.74 16.33 16.53 7.27 29.78 28.98 7.55 26.37 -2.85

466,456 486,277 540,250 546,808 362, 755 332,803 253,555 190,848 160,054 283,403 285,044

-4.08 -9.99 -1.20 50.74 9.00 31.25 32.86 19.24 -43.52 -0.58

11.40 3.35 10.39 19.36 7.22 23.13 22.96 8.96 1.62 -2.10

About Maruti Suzuki India: Maruti Suzuki India Limited a partial subsidiary of Suzuki Motor Corporation of Japan is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in New Delhi. Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until

recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in A2 segment.

Manufactured locally

800 (Launched 1983), Omni (Launched 1984), Gypsy (Launched 1985), WagonR (Launched 2002), Alto (Launched 2000), Swift (Launched 2005), Estilo (Launched 2009), SX4 (Launched 2007), Swift DZire (Launched 2008), A-star (Launched 2008), Ritz (Launched 2009), Eeco (Launched 2010), Alto K10 (Launched 2010)

Imported
1. 2.

Grand Vitara (Launched 2007) Kizashi (Launched 2011)

Manufacturing facilities Maruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturing facilities have a combined production capacity of 1,250,000 vehicles annually. Gurgaon Manufacturing Facility Manesar Manufacturing Facility Sales and service network As of 31 March 2010 Maruti Suzuki had 802 dealerships across 555 towns and cities in India. It had 906 dealer workshops and 1,834 Maruti Authorized Service Stations in 1,335 towns and cities. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. Maruti products: Maruti Insurance Maruti Finance Maruti True Value Accessories Maruti Driving School

1.1.2. Theoretical back ground Customer satisfaction Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and representive measures of satisfaction. 1.2 Introduction to the Study 1.2.1 Introduction

Customer Satisfaction is the buzzword used by the business people for the success of organization in the present days. Due to the increases of heavy competition in every product line it become difficult for the companies to retain the customers for longer time. So retain the customer for longer time the marketer has to do only one thing i.e. customer satisfaction. If customer is fully satisfied by the product it not only rubs the organization successfully but also fetches many benefits for the company. They are less process sensitive and they remain customer for a longer period. They buy addition products overtimes as the company introduce related produce related products or improved, so customer satisfactions is gaining a lot of importance in the present day. Every company is conducting survey on customer satisfaction level on their products .To make the products up to the satisfaction level of customers. This project is also done to know the customers satisfaction on the AMBAL AUTO on behalf of Ambal Auto and Maruti Suzuki Automobiles. 1.2.2 Objectives of the study

The study has been under taken to analyze the customer satisfaction towards Ambal Auto in Ramanathapuram (Coimbatore), the other objectives are: To gather information about customer preferences towards Ambal Auto. To know the customer perception about features, low maintenance cost and looks of Maruti Suzuki. To know the customer satisfaction about the safety and comfort provided by Ambal auto. To know the Customer Relationship Management and customer satisfaction towards the after sales service offers by Ambal auto. To provide suggestions, in improving the customer satisfaction and the company sales and profitability Scope of the study Customer preferences towards Ambal auto will be identified.

Customer relationship management of Ambal auto will be studied. Limitations of the study The scope of study is limited to the number of respondents and that too selected only from the Showroom. Measurement of customer satisfaction is complex subjects, which is not reliable due to the bias information given by the respondents. The sample unit was limited to 100 Ambal auto dealt also with Maruti service centre, True value show room, and Maruti training centre. It is difficult to compare the measurements of satisfaction of various branches of Ambal auto. We can find and say only about the customer satisfaction level of Ambal autos Ramanathapuram branch 1.3 Research Methodology

This chapter aims to understand the research methodology establishing a framework of evaluation and revaluation of primary and secondary research. The techniques and concepts used during primary research in order to arrive at findings; which are also dealt with and lead to a logical deduction towards the analysis and results. 1.3.1 Geographical area covered The customers of Ambal auto show room and service centre in Coimbatore (Ramanathapuram branch) 1.3.2 Period of study The period of study for this project is March 2011 to June 2011 1.3.3 RESEARCH DESIGN The research design was descriptive in nature, which aimed to capture cause and observed findings The various tasks that I have undertaken in the research design process are: Defining the information need Design the exploratory, descriptive and causal research. 1.3.4 Sampling design Population Employees of Ambal Auto and Customers of Ambal auto Ramanathapuram (Coimbatore) 1.3.4.2 Sampling unit 1.3.4.1

Employees of Ambal Auto and Service centre, Customers visited to the showroom 1.3.4.3 Sample Size: The sample unit in any field of inquiry constitutes 100 respondents. With the information of those respondents, the analysis was done in percentage; mean score value method of calculation 1.3.4.4 Sampling Techniques:

Sampling technique used in this study is non-probability sampling, which is also known as deliberate sampling or Convenience sampling. This type of sampling is very convenient and is relatively inexpensive. 1.3.5 Methods of data collection The method I used for exploratory research was Primary Data Secondary data PRIMARY DATA The primary data was collected by means of structured questionnaire and through direct observations and survey. SECONDARY DATA They were collected through internet and the past records. 1.3.5.1 Research instrument Scaling: The descriptive survey was conducted with the help of the Likhert-type scale, which helps the respondents to spot out their options. The Likhert-type scale includes the options such as Strongly agree Agree Neutral Disagree Strongly disagree 1.3.5.2 TOOLS USED FOR ANALYSIS

Mean Score Value Method Chi-square test Rank Correlation

CHAPTER 2 REVIEW OF LITERATURE Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." It is seen as a key performance indicator within business and is often part of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Within organizations, customer satisfaction ratings can have powerful effects. They focus employees on the importance of fulfilling customers expectations. Furthermore, when these ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth marketing, which is both free and highly effective. Therefore, it is essential for businesses to effectively manage customer satisfaction. To be able do this, firms need reliable and reprehensive measures of satisfaction. In researching satisfaction, firms generally ask customers whether their product or service has met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When customers have high expectations and the reality falls short, they will be disappointed and will likely rate their experience as less than satisfying. For this reason, a luxury resort, for example, might receive a lower satisfaction rating than a budget moteleven though its facilities and service would be deemed superior in absolute terms. Measuring customer satisfaction Organizations needto retain existing customers while targeting non-customers. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is measured at the individual level, but it is almost always reported at an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for example, might ask customers to rate their experience with its front desk and check-in service, with the room, with the amenities in the room, with the restaurants, and so on. Additionally, in a holistic sense, the hotel might ask about overall satisfaction with your stay.

As research on consumption experiences grows, evidence suggests that consumers purchase goods and services for a combination of two types of benefits: hedonic and utilitarian. Hedonic benefits are associated with the sensory and experiential attributes of the product. Utilitarian benefits of a product are associated with the more instrumental and functional attributes of the product (Batra and Athola 1990). Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988 provides the basis for the measurement of customer satisfaction with a service by using the gap between the customer's expectation of performance and their perceived experience of performance. This provides the measurer with a satisfaction "gap" which is objective and quantitative in nature. Work done by Cronin and Taylor propose the "confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman, Zeithaml and Berry as two different measures (perception and expectation of performance) into a single measurement of performance according to expectation. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation of performance of the organization being measured. Their satisfaction is generally measured on a five-point scale.

Customer satisfaction data can also be collected on a 10-point scale. Regardless of the scale used, the objective is to measure customers perceived satisfaction with their experience of a firms offerings. It is essential for firms to effectively manage customer satisfaction. To be able do this, we need accurate measurement of satisfaction.

Good quality measures need to have high satisfaction loadings, good reliability, and low error variances. In an empirical study comparing commonly used satisfaction measures it was found that two multi-item semantic differential scales performed best across both hedonic and utilitarian service consumption contexts. According to studies by Wirtz & Lee (2003), they identified a six-item 7-point semantic differential scale (e.g., Oliver and Swan 1983), which is a six-item 7-point bipolar scale, that consistently performed best across both hedonic and utilitarian services. It loaded most highly on satisfaction, had the highest item reliability, and had by far the lowest error variance across both studies. In the study, the six items asked respondents evaluation of their most recent experience with ATM services and ice cream restaurant, along seven points within these six items: please me to displeased me, contented with to disgusted with, very satisfied with to very dissatisfied with, did a good job for me to did a poor job for me, wise choice to poor choice and happy with to unhappy with.

CHAPTER 3 COMPANY PROFILE AMBAL AUTO COMPANY PROFILE Ambal Auto was started in the year 1998 by Mr. Ashokan Muthusamy headed by Mr. Krishna Murthy. The company has developed significantly in the short span. The company pays attention only on customer satisfaction. During the sales period the customer is dealt by the sales executive, wherein the car details is given and the demonstration is done by test drive executives who are well versed in the driving. Once the product is delivered the after sales service is given more importance as this gives a chance for the company to maintain good relationship and capture the market share. Sales executives also give their contact no. to customer so that the customers contact them in case of emergency, when contacted the executives make themselves reach the sport at the earliest possible to solve the problem as a result this creates a good understanding between customer and sales executive. When the customer gets satisfied with the executives, it creates a loyalty with the company. It has 6 showrooms, 5 workshops and 2 true values above 500 employees are working here. The company has now a driving school. The company deals only in Maruti cars like - Maruti 800, Maruti alto, Maruti Omni, Maruti Estilo or Zen, Ritz, A-Star, Maruti Gypsy, EECO, Grand Vitara. The services provided are Finance, Insurance, Auto card, RTO and After Sales Service. Sales - The sales executive does the explanation of the product to the customer. They also make arrangement for test demo for the customer. They also show the various colours that are available. During the delivery time the customer is handed over the owners manual wherein the basic tips are given, and the car keys are also handed over to them. Company arranges for the pooja on its own cost for the welfare of the customer. While delivering the product the sales executive and delivery in-charge persons should be present to do all the documentation activities. The management has also arranged to provide gift during the delivery period. The company has above 75 executives. It has split up the sales personnels into teams. The team leader will have under him 5 executives (It includes Management Trainee, Sales Executive and Trainees).

Financial Institution HDFC, CITI CORPORATION, ICICI, Sundaram Finance Limited, M&M, and Kotak Mahindra the financer persons are always available in the showroom. During the period of sale of car if the customer is not able to pay the full amount in such situation, these finance institution come forward to provide loan at different rates. Depending on the customers preference the finance is arranged. The process is done immediately. Auto Card the company also provides auto card where the customer use it during fueling servicing by which they earn some points. The points are used while exchanging their products the cost value will increase. This also make them remain that the product has been used for the past 5 year and its now the time to exchange. A card is provides, this card should be swiped while fuelling, servicing etc. Each time they swipe the card they get points. The card is provided by the Maruti. RTO The RTO persons do all the registration related process. All the temporary and permanent documentation. Once the order is received it is forwarded to the back support officer and the back support officer orders the product. As soon as the product reaches, the RTO in-charge will take the vehicle for registration at the RTO. After the car is registered they get the number the next day itself. The registered number will be intimated to the customer immediately. Human Resource The human resource does the recruitment process. Based on the requirement received from the various departments the recruitment is done. The company adopts advertisement, campus interview, referrals and from private employment exchanges. The walk-ins are also interviewed. The interview process the preliminary interview is conducted by the Human Resource and then followed by the Senior ManagerSales. Once the senior officers are satisfied with the candidate selection is done. Insurance - The insurance department all the insurance related activities. The company provides- Royal Sundaram Insurance, Life Insurance etc. They also send a reminder card when the due date falls or do telephonic intimation. All the documentation procedure is processed by them. The processed documents after completing all the data works are send to the customers home directly by the insurance person personally. Customer Care Customer care executive finds the level of satisfaction. The customer after the purchase of the product to their experience post sales follow-up is done to know their satisfaction towards delivery, with the executive, finance, accessories, about showroom and the product. Within a period of 15 20 days from the date of purchase customer meet is arranged where the customers experience is shared and the sales executives will also be present to clarify the doubts if any, is raised by the customer. Before winding up of meeting feedback is got from them in writing. As a vote of thanks while ending the meeting a surprise gift is distributed to the customers.

AMBAL Autos Achievement in the past 7 years Our recognition gained through excellent performances

Balance Score Card Platinum dealer for third year in a row 2005 - 2006 Best dealer in Rural Marketing efforts 2005 - 2006 Best Dealer in Exchange Sales Penetration 2005 - 2006 1st runner up in All India Technical Skill Competition 2005 - 2006 Customer Satisfaction Index 2005 - 2006 Balance Score Card All India Best Dealer Non Metro Cities. - 2004 - 2005 WINNER All India Technical skill Competition. - 2004 - 2005 Customer Satisfaction Index All India winner- Ambal Erode-Non JD Power Cities. - 2004 - 2005 Dealer with Maximum Growth Shown in Market Share. - 2004 - 2005 Best performing Maruti dealer in the Country on Balance Score Card Norms- Non Metros year ending 2004. Best Sales Satisfaction Index Score in the Region South 1. -Last Quarter - 2004. Branch Performance Award May 2002 Best Performance in Spares - New Dealer Best New Workshop Service Excellence Best Service Performance Rank 2000 - 2001 Highest Growth of Spare Parts 2000 Best Service Workshop 2000 - 2001 Regional Topper in Sales Satisfaction Index for the Four Quarters in a row. The company sells Genuine Accessories that which is manufactured by the Maruti. The Accessories has wide range of products available within the organization. The product is demonstrated to the customers, based on the product order received the accessories places order for the product in the Maruti.

ORGANISATIONAL CHART OF AMBAL AUTO:

CHAPTER V ANALYSIS AND INTERPRETATION

Analysis and interpretation is essential for any research study. This forms the basis for suggestions. The data, after collection, has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is to ensure that the relevant data is available for making contemplated comparisons and analysis. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exists among data-groups. Analysis of data in a general way involves a number of closely related operations, which are performed with the purpose of summarizing the data and organizing these in such a manner that answers the research questions. Interpretation refers to the task of drawing inferences from the collected data after an analytical and/or experimental study. In fact, it is a search for broader meaning of research findings. The task of interpretation has two major aspects viz., a) b) The effort to establish continuity in research through linking the results of a given study with those of another. The establishment of some explanatory concepts.

The study is to find out the satisfaction level of the Customers of Ambal Auto and to analyze the customers opinion about the various factors such as service quality, employees approach, etc., The questionnaire is framed using 5-point Likert-Type scaling Techniques. The responses to various statement are scored in such a way that a responses indicative of the most favorable attitude is given the highest score of 2 and that with the most unfavorable attitude is given the lowest score, say, of -2. For example strongly agree 2; Agree 1; Neutral 0; Disagree- -1; Strongly disagree- -2. The analysis is discussed below.