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Godrej & Boyce Mfg. Co. Ltd.

The Company celebrated its centenary in 1997. in 1897 a young man named Ardeshir Godrej gave up law and security equipment of the highest order, and then stunned the world by creating toilet soap from vegetable oil. His brother Pirojsha Godrej carried Ardeshirs dream forward, leading Godrej towards becoming a vibrant, multi-business enterprise. Pirojsha laid the foundation for the sprawling industrial garden township (ISO 14001- certified) now called Pirojshanagar in the suburbs of Mumbai. Godrej touches the lives of millions of Indians every day. To them, it is a symbol of enduring ideals in a changing world.

Established in 1897, the Company was incorporated with limited liability on March 3,1932, under the Indian Companies Act, 1913.

The Company is one of the largest privately held diversified industrial corporations in India. The combined Sales (including Excise Duty) of the Company, its subsidiaries and affiliates, during the Fiscal Year ended March 31,2006, amounted to about Rs. 45,000 million (US$ 980 million).


Since its inception, the GODREJ family based in Mumbai, Indian controls the Company. Its shares are not listed on any Stock Exchange. Pirojsha Godrej Foundation holds about one-fourth of the Companys share capital, a public charitable trust. .


MUMBAI, Ahmedabad, Bhopal, Jabalpur, Pune NEW Delhi, Chandigarh, Faridabad, Ghaziabad, Jaipur, Lucknow CHENNAI, Bangalore, Coimbotore, Hyderabad, Kochi, Trivandrum, Vishakapatanam KOLKATA, Hhubaneswar,Guwahati, patna The Company has a network of thirty-three Company-owned Showrooms. Number of Wholesale Dealers
Number of Retail Outlets

: Over 1,000
: Over 5,000

BANKERS: CENTRAL BANK OF INDIA, Mumbai 400023 UNION BANK OF INDIA, Mumbai 400021 CITIBANK N.A., Mumbai 400051 BNP PARIBAS, Mumbai 400001 ICICI BANKLTD., Mumbai 400021 STATE BANK OF PATIALA, Mumbai 400021 UTI BANK LTD., Mumbai 400001

KALYABIWALLA & MISTRY, Chartered Accountants 127Mahatma Gandhi Road, Mumbai 400023

Sales including Excise Duty (Fiscal Year 2003-04) Rs 15,821 million (US$ 342 million)

The Company has the following businesses (with respective ISO certifications) , which manufacture and/or market a wide range of consumer durables and industrial products:

APPLIANCES: (ISO 9001/14001)

Office Furniture, Seating and Disking Systems, Computer Furniture and Open Plan Office System, Office and Home Storwels , Sofas and Recliners, Home Furniture, Filing Cabinets and Filing Systems, Book Stacks and Classes, Sliding/ Tambour Door Units, Personal/industrial Lockers, Customized Storage Systems, Roll-formed Slides and Components for Furniture.


Padlocks, Cylindrical Locks, Mechanical and Electromechanical door locks and related hardware.


Safes, Strong Room Doors, Safe Deposit Lockers, Cash Boxes and Coffers, Data Safes, Fire Resisting Safes, Record &Filing Cabinets, Electronic , Cash Counting Machines, Fire/Security Doors, Fire and Burglar Alarm Systems, Video Door Phones. CCTV System, Access Control Systems.



Multimedia, Side and Overhead Projectors, Video and Teleconferencing Equipment, Fax Photocopiers, Multi-Function Devices, PRIMA Manual Typewriters (available in over thirty languages), Vending Machines.

Storage solutions :(ISO 9001 /14001)

Multiples and Heavy Duty Storage Systems, Tool Storage Cabinets, Gravityflow, Mobiles and Drive-in System Components, Mezzanine Floors, Cantilever Storage Systems,


Forklift Trucks (Diesel, Electric and LPG) and Attachments, Container Handling Trucks, Warehousing and Personnel Access Equipments, Spare Parts, Service and Maintenance Contracts.


Precision Tooling (Press Tools / Plastic Injection Moulds / Vacuum Forming Moulds / Pressure Die Casting Dies), Special Purpose Machines, High Precision Components / Equipments for Engineering and allied industries, Sheet Metal Working Machines Sales and Service.

PROCESS PLANT AND EQUIPMENT (ISO 9001 ASME U, U2, S and R Stamps, SQL M Stamps China)
Pressure Vessels, Columns, Reactors, Elector polished Reactors, Shell & Tube Heart Exchange , Trays, Tower Internals and other Custom built Fabrication.


Ready Mix Concrete, Construction Projects, Property Developments, Horticulture and Enviro tech Services.


Electrical Power Distribution System, Compressed Air Control System, Electronic Technology Solution Provider (Hard ware, Software, Retrofitting, Process Control and Instrumentation, Industrial Automation), Energy Conservation.


The marker forecast shows expected marker demand, not maximum marker demand. For the latter, we have to visualize their level of marker demand resulting from a very high level of industry marketing expenditure, where further increases in marketing effort would have little effect in stimulating further demand.

Marker Potential
is the limit approached by market demand as industry marketing expenditures approach infinity for a given marketing environment. The phrase for a given market environment is crucial. Consider the market potential for automobiles in a period of recession versus a period of prosperity. The market potential is higher during prosperity. The dependence of market potential on the environment illustrated. Market analysts distinguish between the position of the market demand function and movement along it. Companies cannot do anything about the position of the market demand function, which is determined by the marketing environment. However, companies influence their particular location on the function when they decide how much to spend on marketing.

Companies interested in market potential have a special interest in the product penetration percentage, which is the percentage of ownership or use of a product or service in a population. Here are some U.S. percentages: television (98%), health insurance (84%), car (81%), home ownership (67%), PC (54%), stock ownership (48%) gun ownership (41%) , and fax (12%). Companies assume that the lower the product penetration percentage, the higher the market potential, although this assumes the every one will eventually be in the market for every product.

We are now to define company demand: Company demand is the companys

estimated share of market demand at alternative levels of company marketing effort in a given time period. The companys share of market demand depends on how its products, services, prices, communications and so on are perceived relative to the competitors. If other things were equal, the companys market share would depend on the size and effectiveness of its market expenditures relative to competitors. Marketing model builders have developed sales response functions to measure how its marketing expenditure level affects a companys sales, marketing mix, and marketing effectiveness.


Once marketers have estimated company demand, their next task is to choose a level of marketing effort. The chosen level will produce and expected level of sales. The company sales forecast is the expected level of company s ales based on a chosen marketing plan and an assumed marketing environment. The company sales forecast is represented graphically with company sales on the vertical axis and company marketing effort on the horizontal axis. Too often the sequential relationship between the company forecast and the company-marketing plan is confused. One frequently hears that the company should develop its marketing plan on the basis of its sales forecast. The forecast to-plan sequence is valid if forecast means an estimate of national economic activity of if company demand is no expansible. The sequence is not valid, however, where market demand is expansible of where forecast means an estimate of company sales. The company 6

sales forecast does not establish a basis for deciding what to spend on marketing. On the contrary, the sales forecast is the result of an assumed marketing expenditure plan. Two other concepts are worth mentioning in relation to the company sales forecast. A sales quota is the sales goal set for a product line, company division, or sales representative. It is primarily a managerial device for defining and stimulating sales effort. Management sets sales quotas on the basis of the company sales forecast and the psychology of stimulating its achievement. Generally, sales quota is set slightly higher than estimated sales to stretch the sales forces effort. A sales budget is a conservative estimate of the expected volume of sales and is used primarily for making current purchasing, production, and cash flow decisions. The sales budget is based on the sales forecast and the need to avoid excessive risk. Sales budgets are generally set slightly lower than the sales forecast.

Company sales potential is the sales limit approached by company demand as company-marketing effort increases relative to that of competitors. The absolute limit of company demand is, of course, the market potential. The two would be equal if the company got 100 percent of the market. In most cases, company sales potential is less than the market potential, even when company marketing expenditures increase considerably, relative to competitors. The reason is that each competitor has a hard core of loyal buyers who are not very responsive to other companies efforts to woo them.

Estimating current demand

We are now ready to examine practical methods for estimating current market demand. Marketing executives want to estimate total market potential, area market potential, an total industry sales and market shares.

Customer evaluations of after-sales service contact modes An empiric analysis of national cultures consequences Abstract
Technological advances extend the after-sales services portfolio from traditional service encounters to voice and bit-based services. Technology enables service organizations to transcend geographical as well as cultural boundaries. It might even result in geographical convergence, often treated synonymously with cultural convergence. In this paper we address this issue. This paper examines the interaction between perceived service performance and national cultural characteristics in the formation of customer satisfaction for three types of after-sales service contact modes. The results suggest that. In contrast to the traditional face toface service encounter, the perceived quality-satisfaction relationship is particularly moderated by national culture in case of an after-sales service contact mode mediated by technology.

Keywords: Service Quality; Customer Satisfaction; After-sales Service;

Technology; Culture

In the past two decades, the notion that offering superior service quality is a key factor increasing a viable competitive advantage has been widely recognized (Zeithaml,2000). In most service research the focus has almost exclusively been on face-to-face service interactions, which have been conceptualized as high-touch, low-tech (Bitner et al., 2000). However, rapid advances in technology are fundamentally changing the nature of service encounters. In addition to traditional face-to-face service contact modes, companies are more and more making use of voice-to- voice (e.g., toll free telephone support) and self-serve bit-to-bit (e.g., online) service formats. In this way the concept of competitive service positioning is being expanded and the commonplace wisdom of listening to the voice of the customer as well as he long-standing concept of the customer as partial employee are finally taking substantive shape. The emergence of technology in services seems to be evoking a process of spatial convergence. Through technology services now 8

more easily transcend geographical as well as cultural boundaries. Many firms treat such convergence synonymously with cultural convergence. The underlying assumption of this is the inevitability of a world wide, pan cultural acceptance and positive affirmation of information technology in services. Given the cultural differences that often exist between countries, however, it remains disputable whether or not the responsiveness of customers to services and the technologies used is actually culturally neutral. In these paper, we argue that the role of national culture should not be underestimated in the formation of customer evaluations of services. We concur with the view that even in borderless cyber space there are very significant borders, such as cultural ones(Brace,2000, p.70). Our main objective is to study the interaction between perceived service quality and national cultural characteristics in the formation of evaluative customer satisfaction judgments for service contact modes with various levels of technology infused. Here, mode of contact is defined as a specific type of service interaction between an organization and its customer. Due to the increasing use of technology as support for the purchase of goods and their potential of maximizing customer satisfaction our main focus through out the paper will be on after-sales services. It is structured as follows. First in order to establish a conceptual foundation for our research, we provide a brief review of recent literature on service quality and customer satisfaction. Subsequently, we discuss the infusion of technology in services and the role of national culture for services. This discussion leads to the development of hypotheses on the moderating effect of national cultural on the perceived service quality-customer satisfaction relationship for their distinct after-sales service contact modes. Next, we report on the results of a large-scale international study designed to empirically test our hypotheses. We conclude the paper by discussing the theoretical and managerial implications of our findings.

2) Service quality and customer satisfaction: a review

A considerable research effort has focused on services in the past decades. Form the focus on the service quality concept in the eighties (e.g., Parasuraman et al., 1985), broader conceptual frameworks have been developed to include rival customer evaluative judgments, such as customer satisfaction (e.g., Anderson and Sullivan 193; 9

Oliver, 1997). With respect to the relationship between service quality and customer satisfaction, it has been convincingly argued and empirically demonstrated that satisfaction should be viewed as the super ordinate construct (De Ruyter et al., 1997; Dabholkar et al., 2000). In other words, there is growing consensus that service quality is an antecedent of satisfaction with services. In addition, the consequences of customer satisfaction following a service episode have increasingly become topic of investigation. Recently, Bolton (1998) stressed the importance of the link between customer satisfaction and customer retention. Similarly, Bolton and Lemon (1999) found a positive relation between cumulative satisfaction and usage levels of a service and Bowman and Narayandas (200) showed that customer satisfaction influences repetitive buying behavior and word-of-mouth activity. Finally, customer satisfaction has also been related to service failure and recovery situations. Smith et al. (1999) and Tax et al. (1998), for example, demonstrate to customer satisfaction with complaint handling. In addition, handling complaints satisfactorily with also increase customer commitment and trust (Tax et al., 1998). Conceptually, service quality and customer satisfaction can be considered to be attitudes. According to Fishbeins Multi-Attribute Model of Attitudes attitudes are being formed by the aggregation of underlying beliefs and evaluations (fishbein and Ajen, 1975). In the aggregation of underlying beliefs and evaluations (fishbeing cumulative view on satisfaction features persistently. Overall satisfaction, theoretically founded by Johnson and Fornell (1991), developed into cumulative satisfaction as a distinction from transaction specific research (Johnson et at., 1995). Researchers across various countries have from then considered customer satisfaction as a cumulative attitudinal construct (Fornell,1992; Fornell et al., 1996 Johnson et al., 2001 ; Rust et al., 1995). In correspondence with the above, in the reminder of the paper we conceptualize overall customer satisfaction as the summated evaluative attitude based on customer perceptions of performance during an after-sales service contact mode.

3) Technology infusion in services

Faced by the challenges of intelligent interactivity, many service providers supplements traditional face-to-face service contact modes with services that involve multiple media In addition to the personal service encounter, customers can now 10

engage in technology-mediated service interactions. Such applications vary from voice-based services to fully automated self-service aids (Risch Rodie and Schultz Klein,2000). The infusion of technology seems to be fundamentally changing the nature of the service encounter with far-reaching consequences for service companies as well as their customers . It has even been argued that the increasingly significant role of technology necessitates a re-conceptualization of established concepts in the existing services marketing research domain. Service encounters, therefore, are now conceptualized as the dynamic relationship between employees, customers, and technology (Bitner et al., 2000,p. 141) and have even been classified according to their technology-based delivery mode (Dabholkar, 1994). The growing implementation of technology in services is not without reason. It offers a wide range of advantages to service providers as well as customers. Increased opportunities for customization, flexibility, recovery, and spontaneous customer delight have been identified as the main drivers of customer satisfaction to be influenced by the infusion of technology (e.g., Bitner et al., 2000). Other frequently mentioned advantages are possibilities to develop multi channel service strategies, establishing more effective informational exchanges, higher consistency in the delivery to standardized services, lower costs, and an increase in customer choice (Heim and Sinha, 2000). Several of these advantages have featured prominently in recent service research and are often included in attribute-based conceptual models on service technology evaluations (Dabholkar, 1996; de Ruter et al., 2001).in addition to outcome-related factors, however, customer evaluations of technology-based services may also depend on the customers role in the service delivery process (Dabholkar, 2000). In case of a traditional after-sales service, a service employee might the customer for example for servicing of repairing a piece of equipment (do-it-for-me). The customers role then remains fairly passive, customer participation will be low to absent and service quality performance will be the main determinant of customer satisfaction. With the advent of technology, however, customers become more and more involved in the service delivery process. Services are now often initiated and delivered by customers themselves, without direct or indirect contact with a service representative (do-ityourself) (Barnes et al., 2000). In banking, traveling, brokerage and many other service and goods industries successful self-service business models have already been developed.


One of the consequences of increased customer participation may be that satisfaction is increasingly based on the customers attitude towards the technology employed. Attitude-type of variables, such as customer techno-receptivity (Barnes et al., 2000), perceived media richness and symbolism (Trevino et al., 2000), and the disposition towards self-service technology (Dabholkar,1996; Meuter et al., 2000) have already been successfully demonstrated to influence overall service evaluations. These findings are also in line with previous research showing the impact of generalized attitudes on technology evaluations in other contexts (Ledingham, 1984) as well as with studies on social influence and media use (Schmitz and Fulk, 1991). In additional to the main focus on individual-level characteristics of aforementioned studies, it seems also important to take situational context variables into account. The justification for this position is explained in the next section.

4) Towards a broader perspective on service evaluations: The role of national Culture

So far, little is known about the influence of contextual factors on customer evaluations (Parasuraman, 2000). Yet there seems to be compelling rationale for taking cultural characteristics in consideration. In the managerial literature it has been frequently emphasized that the infusion of technology in services is leading to a collapse of temporal and spatial distance (maney,1997). Technology facilitates 24/7 hours support to customers worldwide, resulting in an advanced convergence of voice and data (Richardson and Marshall, 1999). Furthermore, panregional distribution centers for automated, instantaneous ordering and shipping of supplies to clusters of geo-markets have been booming in recent years (e.g., Hewlett-packards European service operation). Through these developments, services are increasingly being provided to customers from various cultural backgrounds and culture is becoming a factor to betaken into consideration. Although the ephemera of cyberspace might suggest otherwise, but it has been argued, technology is not independent of culture (Trillo1997). The cultural context, commonly expressed in shared norm and value systems (Hofstede, 1980), has been shown to influence the acceptance of technologyabsed interactions between people (Trillo, 1997). Likewise, in a business environment increasingly characterized by cultural diversity, divergent identification systems will 12

influence the acceptance and evaluation of technology based services (Steinman et al., 2000). Our predisposition is that cultural contingencies can be expected to influence customer Responsiveness to perceived services can be expected to influence customer Responsiveness to perceived service performance. Gallois and Callan (1997,p.86 ) state that all interactions between people are governed by culture-specific social rules. Furthermore, Usunier (1996,p. 252) reasons, Prevailing cultural norms will apply in service encounters as they apply in any social interaction. Culture, described as a collective valve system share by a category of people (Hoofstede,1991), influences the formation of attitudes and preferences 9lovelock and Yip, 1996 and becomes manifest in non-rational values programmed early in peoples lives (hofstede, 1980). According to Oliver (1997) and Gallois and Callan (1997) such values are predisposing conditions for desires as well as social rules of interaction. As such , they will shape subjective attitudes and preferences and form the basis for comparison standards used by customers to evaluate a service experience. As such , they will shape subjective attitudes and preferences and form the basis for comparison standards used by customers to evaluate a service experience. As social networks of customers are expanding beyond their own cultural horizons (e.g., through electronic multi-user groups). Customer service expectations and perceptions are increasingly shaped by inter cultural connectivity. Several studies have already empirically examined the role of national culture in services. Donthu and Yoo (1998), for example, found empirical evidence for effects of cultural traits on service quality expectations Consumers in low power distance countries, where superiors and subordinates are considered to be more equal, tend to have higher overall service quality expectations and expectations and except service providers to be more responsive and reliable. In support of this, Furrer et al (2000) conclude that high power distance customers find reliability and responsiveness less important. On the other hand, individualistic consumers were also found to hold higher overall quality expections, but except the service provider to be more empathic and assuring (Donthu and Yoo, 1998). Correspondingly, Mattila (1999) reports that customers from different cultures tend to value various service elements differentially. Empirically results concerning national culture and services are not always consistent and univocal however. Furrer et al (2002), for example, report on a strong positive 13

relationship between power distance and the relative importance of tangible elements, thereby contrasting mattilas (1999) finding the overall. This leads us to conclude that the rhetorical and empirical foundations of national cultures consequences for services are still and that further research on the interrelation between culture and service performance is needed. In order to address this need, we now continue with developing a number of hypothesis on the moderating role of national culture in customer service evaluations.

5) Development of Hypotheses
Cultural variations in attitudes and preferences are likely to evoke different customers response to perceived service quality. We differentiate between traditional face to face after sales service contact modes on the one hand and technology based services on the other hand. More specifically, the latter type involves two types of services: Voice to - voice and bit to bit after sales service. As a starting point for the analysis it is desirable to validate earlier findings. Therefore, on the basis of afore mentioned research, We start by Hypothesizing a general positive main effect of perceived after sales service quality on overall costumer satisfaction: H1: For all three after sales services (Face to face, Voice to voice, and Bit to bit ) There will be a positive impact of perceived service quality on overall customer satisfaction. Due to location and time constraints, locals service employees commonly deliver Face to Face services. Here, a phenomenon that can be referred to as cultural adaptation is likely to occur. Face to face encounters are contextually rich enough to adopt to contextual and social cues. They commonly occur with in the same cultural context and cultural service adaptation is likely to occur automatically. Consequently, national culture becomes a less influential factor. In contrast, technology based services are frequently not hindered by location and time constraints and can therefore be delivered across cultural boundaries. It has been argued that in comparison to traditional, face to face contact modes, technology based services entail higher levels of active customer participation or even selfservices (Barnes et al., 2000; Dabholkar, 2000). Active customer involvement in the service delivery process has been found to positively influence service evaluations 14

(Risch Rodie and Schultz Kleine, 2000). Consequently, we expect that culturally determined norm and value system will be especially influential for technology-based after-sales service contact modes than for traditional face-to-face services:

H2: For the traditional face-to-face after-sales service national cultural dimensions will Not moderate the positive impact of perceived service quality on overall customer Satisfaction.
In contrast to H2 it is expected that for technology-based services national culture does moderate the service quality-overall satisfaction relationship. We will nuance this jby making a case for the interaction effects of four cultural dimensions discerned by Hofstede (1980). A destinction was made between four dimensions of national culture: power distance, individualism-collectivism, masculinity-femininity, and uncertainty avoidance. These stable dimensions can be measured relative to other cultures and have been used extensively in previous research. In high power distance cultures a perceptual distance between powerful and less influential people is expected and sometimes even desired (Hofstede, 1991). Here people across different power levels do not seem to value close interpersonal contact and are more likely to prefer distant relationships. Interestingly, Furrer et al. (2000) found that customers in such cultures focus more on hard tangible service aspects, rather than on soft service interaction-related dimensions such as reliability and responsiveness of employees. By definition, technology-based services are technology-mediated and as such likely to be perceived as more distant. hard tangible service characteristics, such as making use of technological aids (telephone, PC, Internet, etc.), can result in increased perceptual distance. Therefore, services where such means are effectively used could be evaluated more positively in high power distance cultures. More specifically, we expect that perceived quality of technology-based after-sales service contact modes will contribute more strongly to overall customer satisfaction in high power distance cultures:


H3: For the technology-based after-sales services the positive impact of perceived after sales service quality on overall customer satisfaction will be stronger with national cultural power distance is higher. Culture is
reflected in its members, attitudes and predispositions (Lovelock and Yip 1996). An important predisposition for adopting and positively evaluation innovative services is the level of innovativeness, i.e. the predisposition to buy new and different products and brands rather than to adhere to earlier choices and patterns of consumption. Countries tend to differ in their pattern of diffusion of innovations (Gatignon et al., 1989) and Steenkamp et al. (1999) found cultural effects on consumer innovativeness. More specifically, consumers in countries characterized by higher levels of individuals were found to be more innovative. In individualistic cultures initiation of new and unknown behaviors, independently of other person, seems to be valued more. Persons in individualistic cultures seem to be more trusting and less risk averse in exchange relationships with external, unknown parties (Yamagishi and Yamagishi, 1994). In addition, persons with a lower need for interaction with service employees displayed more positive attitudes towards using new, computerized self-service potions (Dabholkar, 1992). It has been argued that individualists show less interest in interaction and can be bothered less by the social absence of a service provider in case of technology-based after-sales services (Gallois and Callan, 1997). Therefore, we expect that customers in more individualistic cultures will hold a more positive attitude towards technology-based services and that the individualism dimension will strengthen the service quality-satisfaction relationship:

H4: For the technology-based after-sales services the positive impact of perceived after sales service quality on overall customer satisfaction will be stronger when national cultural individualism is higher.
The level of masculinity in a country has also been found to influence consumer innovativeness (Steen Kamp et al., 1999). Consumers in countries characterized by higher masculinity are more innovative. This can be explained by the idea that masculine cultures are more material- and achievement-oriented (Hofstede, 1991). Purchasing new items or making use of innovative services can be considered 16

a consequence of this tendency (mowen, 1995). Furthermore, masculine societies tend to focus less on helping others and will exhibit lower levels of service-mindedness (Hofstede, 1983). Persons in these societies are less likely to feel the need of being served and taken care of in person by a real-life service employee. Consequently, we expect that in more masculine cultures, innovative, nontraditional, and distant after-sales service contact modes will be valued more;

H5: For the technology-based after-sales services the positive impact of perceived after sales service quality on overall customer satisfaction will be stronger when national cultural masculinity is higher.
Finally, we reason that due to higher unfamiliarity with innovative, technology-based service contact modes these services are more likely to be perceived as risky. In accordance with Lynn and Gelbs (1996) finding that penetration of technical durables is lower for that strongly rely on technology is likely to be lower in high uncertainty avoidance, the acceptance and utilization of services that strongly rely on technology is likely to be lower in high uncertainty avoidance cultures. Perceived quality of innovative service delivery modes is then less likely to result in additional service satisfaction. As there is less room in technology-based services for contextual cues, which may serve to reduce ambiguity in interactions and stimulate the formation of a positive evaluative satisfaction judgment, we hypothesize that:

H6:For the technology-based after-sales services the positive impact of perceived after sales service quality on overall customer satisfaction will be weaker when national cultural uncertainty avoidance is higher.
In the next section, we discuss the results of an empirical study conducted to test our research hypotheses.

6) An empirical study
6.1 Research design and data collection

The empirical study was conduced with a sample of international customers of a major multinational office equipment manufacturer. For several years, this manufacturer has been conduction a large-scale service and support operations for its high-tech office equipment. The data focuses on firm-level satisfaction and was collected in 1999 across eleven different countries. These include the Netherlands, Uniter Kingdom, Norway, Austria, Germany, France, Sweden, Belgium, the United States, Spain, and Ireland. The face-to-face service format is represented by the traditional service visit. A service engineer then visits the customers site for example for servicing or repairing equipment and installing supplies. Typically , a workforce of service. The voice-to-voice service format is callbased and used for solving customer problems from a distance through telephonic contact. Via a semi automated response system the customer is transferred to a help desk where help desk agents (qualified service engineers) register and help solving problems and provide answers to questions. Due to scale of economies reasons these helpdesks usually serve multiple international markets. Finally , the bit-t0-bit service format is the contact mode with the highest level of technology involved. This service type involves the customer-initiated process of ordering necessary supplo0es like toner, paper replacements, as well-based services. In total, 4,888 questionnaires were sent to customers across the participating countries. Of these, 7657 usable questionnaires were returned, resulting in an effective response rate of 51%. Responses per country were as follows; the Netherlands: 320, the United Kingdom: 736 Norway;588 Austria: 189 Germany: 477, France: 1167, Sweden: 507, Belgium:549, the United States: 2666, Spain: 371 and Ireland: 86. differences in country-level sample sizes reflect the relative size of the markers in each country. A more details profile of our sample emerged on the basis of various background variables: respondents were active in founctions such as sales manager (17%), operations manager (42%), company buyer (22%), and general manufactures after-sales service levels to be important. Furthermore form general company records it could be ib general company records it could bev inferred that at the time of survey


37% of the customers also used other brands of other brands of office equipment from other suppliers

The business environment in India is full of opportunities. For successful business, market research system is most important. Marketing research can be defined as the systematic gathering, recording and analyzing the data about the problem relating to marketing of goods and services. Good communication and coordination are essential if research, objectives are to be clearly stated. If the project is to be carried out efficiently and if the findings are to be effectively in decision-making. Accurate and appropriate data is essential for


good decision-making .The marketing manager of today is being called upon to be well informed concentrating number of new techniques, which are being used. Effective decision concerning the use those methods require the marketing manager to be well versed in the methodology, assumptions, limitations and application of such methods. Marketing research helps a firm to identify and solve problems; to identify and evaluate market opportunity and to develop the effort needed to exploit it. Marketing research is useful in wide varieties of activities .These are sales forecasting ,measuring market share ,identifying the market trends ,measuring company and brand images ,developing target ,customers profiles ,designing product and packages ,locating wear house and stores processing orders, managing inventory, analyzing audience characteristics and scheduling advertising requirement of customer oriented market mix are to verify target customer and to know their wants.


1. Proper identification of the problem : The nature of the problem or opportunity should be communicated and identified. This is the first step-in the process finding a solution. 2. Establishing the Hypothesis: Hypothesis is tentative to explain of a problem formulated and the basis of insight knowledge about the problem. The hypothesis may prove to be either right or wrong. 3. Methodology and definition: The formation of research designs deals with defining concepts and variables .The methodology for much research study is drawn on the basis of careful examination of the available literature. This also depends to a large extent on the imagination, long-term vision and proper understanding of the researches. 4. Data collection: Researchers use primary and secondary data for their research. Primary data for a specific problem .These are totally originally and are generated by originally research work. Secondary data on the other hand, are already in existing from. People who are working either within the firm to meet their needs gather this data. 5. Analysis of the data and presenting the findings : The collected data must be edited and coded to facilitate the analysis of the data. The analysis involves the transformation of interpreting the data. The researcher should present major findings that are relevant to the major marketing decisions facing the management.



1. To ascertain the needs of existing and customers discovered by the help marketing research. 2. To avoid complaints from the consumer about the inadequacy of the product. 3. To determine the total sales. 4. To determine the popular brands in the market. 5. To understand the need giving more or complete services or to cover the consumer needs by developing inside range by complementary or associated products. 6. To determine the brand awareness of various brands available in the market.

Chapter 2



Significance/scope of study Objectives Research design Data collection Source of primary data Limitations if the study




The study was undertaken to study on making aware of after sales services provided by godrej Boyce pvt Ltd. For machine and tools sold by godrej like reconditioning, overhauling, Maintenance and other services these all services should be make aware foe existing customers of godrej This study enables the company to look into various factors effecting for providing after sales service to their customers. This in turn will help the company to deliver their products or services to maximum satisfaction of the customers aware about its product in clear and better way.


The main objective was to study the scope of after sales service with special reference Godrej Boyce pvt Ltd for machine and Tools division in the cities of Hyderabad, Secunderabad and Rangareddy. The various sub objects were to find out the following. 1. To find the market share of After sales service 2. The factors effecting the consumer After sales service regarding services 3. They buyers opinion on after sales service and attributes offered by various companies manufacturing machine and tools 4. Comparision of various brands of machine and tools available in the market on the basis of performance and to find the best brand 5. Opinion on own an machine of Godrej Company


The study is exploratory in nature and experimental in design.

The data collected is basically primary in nature.


The major sources of primary data include responds and research experiments and research experiments responds represent by far most important source of primary marketing data. Marketing decisions are characterize by the fact that they always involve in one way or other, predictions of the behavior of the market participants- be it consumer, industrial user, market intermediate competitor. Decisions as diverse as product introduction, price or recollections of sales territories would require forecasting of the behavior of one or more of the above groups. The study of responds therefore characterized most marketing situations. The type of informations that may be collected from responds may include data on past behavior, extent of knowledge, attitudes and opinions, social-economic characteristics and life style data.


The methods used for collecting data are:



The type of questionnaire used in the project is of structure and non-disguised from. The structured questionnaire usually produces more reliable results to different phrasing of questions, and even different questions, and through different judgments of answers and in what to record. The structured questionnaire produces more reliable results. Questionnaire was personally administered to the respondents for the collection of primary data.

The reasons for using questionnaire method to option required information be:

An every problem of marketing research can be approached from the questionnaire standpoint. Every marketing problem involves people. Therefore ideas relative to the problem and its solution can be studied by questioning knowledge options, 25

motivations and intentions are usually no pt open to observations, and they can be studied by questionnaire method.


Questioning is usually faster and observing interviews have more control over their data gathering activities then to observers as result less time is typically wasted in questionnaire

Some respondents were interviewed apart from questionnaire to accumulate additional information, which increases the validity and precision. The questions put to them were those that were not in questionnaire, the questions put were intended to obtain information in nature.

The consumer survey was undertaken with reference Machine and tools consumers were surveyed in various companies located in Hyderabad, Secunderabad and Rangareddy. Out of total 50 respondents 5 where surveyed in Hyderabad 10 where surveyed in Secunderabad and the remaining where in Rangareddy The following points were considered in selecting the sample for the study. 1. Sample size was restricted to 50. 2. A random sampling method was adopted. 3. The questionnaire was administered personally for every respondent


Under the secondary, the companies annual report and various brochures and pamphlets of various models of machine and tools by the company where taken into consideration which of great help to the study.


It was tried to keep the sources of the project as wide as possible, yet there were some limitations, which narrowed down its scope. The major limitations of the project are listed below. 1. The sample size of50 respondents is smaller a number to research a concrete conclusions regarding the market of machine and tools. 2. The primary study was limited to twin cities and to Rangareddy district. 3. Few companies where not using the machines. 4. The following errors would influence the findings

A) Ambiguity error:
The error that can arise in the formulation of questionnaire.

B) Response error: The error that arises due to information given by

respondents because of perceived loss of prestige.


Chapter 3



Industry Overview Company Profile Product Profile


The Godrej family at the Jashan ceremony that inaugurated the Godrej centenary year on 1 January 1997 at the Lalbaug factory. Seated (left to right): Kaizeen Mody, Armaity Austin, Pheroza, Jaiben, Sohrab Pirojsha Godrej, Hormuzd, Rati, Soono, Burjis, Smita Crishna, and Nadir Godrej. Standing (left to right): Rashna Dastur, Boman Mody, Jamshyd, Raika, Navroze, Sohrab, Adi, Pirojsha Nisaba, Freyan, Nyrika and Vijay Crishna. Not in photograph: Parmeshwar Godrej, Tanya Dubash, Kaikhushru, Dosa and Rishad Naoroji who could not be present on the ocassion



PIROJSHA GODREJ (1882 -1972)

BURJORJI GODREJ (1915 - 1994)

NAOROJI GODREJ (1916 - 1990)



Increasingly, process Reliability is being relied upon for assuring quality of output from a process. Capability and reliability of Machines is an important element in the overall Process Reliability. High quality Machine Tools like Godrej deliver a good and Consistent performance continuously for years. However even robust and reliable machines age and need Upgrading to meet the demands on them. Godej has made this possible through their services of Remanufacturing and Rebuilding of MACHINE TOOLS.

The concept of Reconditioning involves giving a new lease of life to a used machine. 1. The process involves total striping down of a machine. 2. Repalcing all the wearing parts of the machine. 3. Identifying major parts which are likely to get damaged/need Replacement in a near future (with a period of two to three years). 4. This is allow cost (@30 to 40%) process compare to buying a new Machine and a one-time investment


5. This extends the life of the machine by nearly ten years. 6. Normally, the pay back period is @3 years. 7. In certain cases we may even carry out remanufacturing for Machine tools not manufactured by Godrej.


The following arts of features are replaced or added in the machine: Main shaft Back shaft(in case of eared Presses) Individual clutch and Break unit or combination clutch And break unit Flywheel Pneumatic dual solenoid valve Control panel with necessary displays for easy operation Two Hand operating station to there operating models like inch, Once and continuous with top stop emergency stooping facility Wearing parts like connection link bush, main bearing bush, vbelt et Cam limit switch


We have a host of services to help you in your requirements for Godrej Sheet Metal Forming Machines. 1. Genuine spare parts.


2. Reconditioning Machines. 3. Breakdown Services. 4. Relaying or Re-sitting operations. 5. Upgradation or Low cost Automation. 6. Machine Accessories. 7. Annual Maintenance contracts. 8. Tooling.


1. Connitment to Quality 2. Customer Orientation 3. Dedication and Commitment 4. Discipline 5. Honesty and Integrity 6. Learning Organization 7. Openness and Transparency 8. Respect/Care and concern for people 9. Teamwork 10. Trust


We shall operate in existing and new business which capitalize on the Godrej brand and our corporate image of reliability and integrity

Our objective is delight our customers both in India and abroad We shall achieve this objective through continuous improvement in quality, cost and customer service

We shall strive for excellence by nurturing, developing and empowering our employees and suppliers. We shall encourage an open

atmosphere, conductive to learning and teamwork


Our Esteemed Customers for reconditioning projects 1. Northern Railways, Amritsar. 2. Blue Star, Dare. 3. MICO, Nasik. 4. S.M.Roloing, Pune. 5. Harsha Engineering Pvt Ltd., Ahmadabad. 6. Earl Bihari Pvt.Ltd., Mumbai. 7. Sherton, Banglore. 8. Office Equipment Divn Godraj, Mumbai 9. Storwel Division Godrej, Mumbai. 10. Locks Division Godrej, Mumbai.


If you are using a Godrej mechanical, hydrauclic or CNC Press Brake, then we can offer you the latest hardened and ground segmented toolings which will help you in improving your Press Brake productivity and aesthetics of your final product. Kindly send us the machine details along with the section drawing of the component you want to bend on the Press Brake Standard shape toolings offered by us

Gooseneck Punch Deep Gooseneck Punch Straight Punch Two V opening Die Two V opening Die Multi V Die Block Multi V Die Block Die Rail for Segmented Dies

10.10/88* 10.14/88* 10.18/26* 124/88* 127/88* 80x80 90x90

We can also supply you tooling as per your design For many years now we have supplied quality machine tools and also helped customers get the maximum out of these machine tools through special training programmers. These comprehensive training programmers. These comprehensive


training programmers cover all aspects of maintenance, operation, CNC controllers and so on. Benefits: You can utilize existing manpower effectively by training in areas required Upgrade skills of existing manpower Look into the possibility of productivity improvement Have minimum downtime of the machine due to electrical & electronics fault Courses to suit specific needs Motivation to operating people

Present course conducted

Training on CNC controllers Cyrillic make LVD make Cut To Length Line Operation Training CNC Press Brake Operation Training

*Please see the details of the courses below*



If your CNC press Brakes are equipped with any of the following controllers, we would be in the best position to offer comprehensive training on the machine and the controller together. 1. DNC 70 2. DNC 90/900 3. DNC 80/80 4. DNC 50 5. DNC 60 6. MNC 95 7. MNC90 Many times the training need is perceived due to manpower turnover or to get an advanced level exposure. On these controllers, apart from the basic training. We update our customers on product programming as well, giving exposure to different features available. Along with training on controllers, we also cover training on overall electrical & electronics maintenance, to keep machine downtime to the minimum. There are many satisfied customers who have undergone such training programmers and can vouch for the benefits of the Godrej training controller tanning program is conducted at your works since it covers machine as well as component programming and trials on the machines. Training Duration: Two days, We can also consider any specific requirement regarding topics to be covered. By virtue of the fact that we have been around for such a long time, today, we can proudly say we have the expertise to handle any heavy equipment project right from the beginning of erection to handling over for production.


We therefore can undertake: Re-lay outing of your workshop Re-sitting of your machines of any mistake Erection & commission of new & second-hand imported sheet metal machines

Rich experience in this field Complete solution from lay outing to handling over to production Single source responsibility

DLW Varanasi shifting of 8 machines from Wagon shop and relocating to the same to a sheet Metal shop.

We offer you three types of maintenance contracts: 1) Preventive Maintenance Contract (PMC) 2) Remedial Maintenance Contract (RMC) for Breakdowns. 3) Annual Maintenance Contract for CNC Controllers. (AMS)

With the opening up of economy, manufacturing firms are compelled to adapt themselves to the ever-changing demands of the market. It is therefore important to ensure the maximum uptime for your machines while keeping maintenance overheads at the lowest possible levels. 39

While it is true that our contract help save maintenance costs and reduce the breakdown time, it also true that you could avail off our services even if you have not entered into any of the above contracts.

Even good, reliable and well maintained machines age. Due to this ageing unpredictable breakdowns can occur, maintenance cost can go up, tools wear increases and as a result, performance can drop.

In such situations, buying a new machine may not be always the best solution. The more cost effective way is to re-manufacture your old machine. Reconditioning not only saves time but investment too. Moreover if you can get this done for an original equipment manufacturer like Godrej you can expect long-term performance with sustained accuracies.

Benefits of reconditioning?
Almost original performance Affordable investment Existing manpower can utilize A 6 months warranty Also avail off the Godrej Preventive Maintenance Contract facility

We also undertake complete reconditioning of the old Godrej machines and of other local and imported makes wherever full details are available. The reconditioning undertaken by Godrej is complete rebuilding of the entire machine in order to restore full functioning and accuracies of the equipment. The extent of refurbishing can include the following; depending on the scope of contract and your budget.


Complete strip down of the machine with a thorough inspection and replacement, if required, of all worn-out and failed parts with genuine parts.

Machines, grinding, scraping of guides, tables and bearing bushes. Rewiring of the entire hydraulic & CNC systems, if required. Replacement of old lubrication system with central, motorized, automatic, metered lubrication system with an electronic controller.

Reassembly of the machine Realignment of the machine to ensure the original accuracy. Final inspection ,trials & painting of the machine Inspection by customer & customer trials. Re-erection ,re-commissioning ,trials, training at site.

Satisfied customers:
MICO ,Nashik Supangita , Bangalore Harsha, Ahmedabad PCVL, Pune Northern Railway, Amritsar HAL, Hyderabad

Customer Name Make 41

MICO, Nashik Krupp 250 T

Type of M/c No. of Yrs used Year of Reconditioning

1973 25 Years 2000

Before reconditioning

After Remanufacturing

Noise in the gear box Noise in clutch system Alignment getting disturbed Liners worn out Tooling life has reduced No. Of breakdowns was more 42

Noise level reduced by app 15 to 20 % Abnormal Noise eliminated Alignment restored as per test chart New Liner provided Tooling life improved as expected and increased by 5 times Break downs had reduced to .5 % Component accuracy found excellent

approx. 30% Rate of rejection of final products was more

In todays competitive world every manufacturer has to come out with new and innovative ways of competing. Many customers have good equipment and only part of the equipment requires window dressing or is out dated and needs replacement with modern facelifts. We can helps such customers get the benefits of both the worlds by:

Up gradation of older machines with PLC controls, integration of NC controller back gauges on press brakes and shears.

Up gradation of NC controllers on press brake and shear. Conversion of RKC to friction Clutch Mechanism. Converting old mechanical clutch & brake system to a pneumatically actuated system for safer working condition.

Upgrading of conventional press brake tools to latest hardened and ground segmented tooling.

Retrofitting of various productivity improvement accessories. Old lubrication system to modern electronic lubrication system.

If you are interested in buying a used sheet metal forming machine, In case you are interested in selling the Godrej make,


In case you are negotiating a deal directly, you can get our engineer to inspect the machine you intend to buy or sell and get a clear idea about the machine condition and the price expected or can be offered which will ensure a risk free deal for you. In any case you can then avail of our maintenance contacts in case you buy

TOTAL MARKET POTENTIAL The market potential is the maximum

amount of sales that might be available to all the firms in an industry during a given period, under a given level of industry marketing effort and environmental conditions. A common way to estimate total market potential is as follows: Estimate the potential number of buyers time the average quantity purchased by a buyer times the price.

If 100 million people buy books each year, and average books buyer buys three books a year, and the average price of book is $20,then the total market potential for books is $6 billion (100 million *6* $10). The most difficult component to estimate is the number of buyers for the specific product or market. One can always star with the total population in the nation, say 261 million people. The next step is to eliminate groups that obviously would not buy the product. Let us assume that illiterate people and children under 12 do not buy books, and they constitute 20 percent of the population. This means that only 80 percent of the population, or approximately 209 million people, would be in the suspect pool. We might do further research and find that people of low income and low education do not reed books and they constitute over 30 percent 44

Of the suspect pool. Eliminating them , we arrive at a prospect pool of approximately 146.3 million books buyers. We would use this number of potential buyers to calculate total market potential.

A variation on this method is the chain-ration method. It involves multiplying a base number by several adjusting percentages. Suppose a brewery is interested in estimating the market potential for a new light beer. An estimate can be made by the following calculation:

Demand for the new light beer = Population * personal discretionary income per capita * average percentage of discretionary income spend on food* average percentage of amount spent on food that is spent on beverages*average percentage o amount spent on alcoholic beverages that is spent on beer* expected percentage of amount spent on beer that will be spent on light beer.


Companies face the problem of

selecting the best territories and allocating their marketing budge optionally among these territories. Therefore, they need to estimate the market potential of different cities, states, nations. Two major methods of assessing area marketing potential are available: the market-buildup method, which do primarily business marketers use, and the multiple-factors index method, which is used primarily by consumer marketers


Chapter 4



Options yes No Total

No of responses 40 10 50

% of responses 80 20 100

1) Are you using Godrej Machines in your company ?

Options A)Less than 5-14 B)Greaterthan 15 C)Less than 15 Total


From the above Graph we conclude that 80 % of the customers are using the Godrej Machines in their units.

Options A. Less than 5 t0 14 B.Greater than 15 C.Less than 15 Total

No of Responses 14 16 20 50

% of Responses 28 32 40 100

2. From how many years you are using the Machine?


No of respondents

yes No Total

40 % 0f the respondents are using Machines in their units more than 15 years.


3. Any damages or repairs occurred to the Machine ?

% of Options No of responses responses yes 32 64 No 18 36 Total 50 100

yes No Total


From the above chart we can say that Machines occurs damages. From the survey we can say that 64% customers are saying that damage occurs.

4. Are you satisfied after sale services ?

% of Options No of responses responses yes 10 20 No 40 80 Total 50 100


No of responses

yes No Total

80 % of the people are saying that they are satisfied with after sales services.

5. Present condition of the Machine.

Options Excellent V.Good Good Poor TOTAL

No. of Responses 4 22 18 6 50

% of Responses 8 44 36 12 100


No. of Responses

Excellent V.Good Good Poor TOTAL

44 % customers are saying that Machine working condition is very good and followed by 36 % are saying that working condition are good


6. When was the last serviced under taken?

Options Less than or equal to 2 years More than two years and less than 4 years More than two years TOTAL

No. of Responses 16 25 9 50

% of Responses 32 50 18 100

No. of Responses

Less than or equal to 2 years More than two years and less than 4 years More than two years TOTAL

From the above graph we can say that 50 % of the customers are saying that they took service is more than two years from now.


7) Is your Machine level is under control?

Options Yes No Total

No of Responses

% Of Responses 37 74 13 26 50 100

No of Responses

Yes No Total

74% of customers are saying that their machine level is under control


8. This Machine presently used for ?

No. Of Responses

1st Shift 2nd Shift 3rd Shift All Shifts TOTAL


From the above chart we can say that this Machines are mostly used in the Second Shifts and followed by 3rd and 4th

Options Yes No TOTAL

No. Of Responses 6 44 50

% of Responses 12 88 100

9. Are you aware of service provided by Godrej


No. Of Responses


88 % of customers are saying that they are not at all aware that Godrej provides after sales services.


9. With in How many days / hrs you require the service ?

Options Weekly Monthly Immediately TOTAL

No. Of Responses 18 6 26 50

% of Responses 36 12 52 100

No. Of Responses

Weekly Monthly Immediately TOTAl

52 % of customers are saying that they should require the service as soon as possible with in one day


Options Over howling To attend to break down Machine upgradation Re conditioning Maintanance TOTAL

No. Of Responses 28 10 4 10 8 50

% of Responses 56 20 8 20 16 100


What are the areas you require ?

No. Of Responses

Over howling To attend to break down Machine upgradation Re conditioning Maintanance TOTAL


From the above graph we can say that customer required the service for over howlig

Options No. Of Responses Yes 30 No 20 TOTAL 50

followed by break down and reconditioning

% of Responses 60 40 100

12. Do you require any spare parts


No. Of Responses


60 % 0f the customers are saying that they require spare parts


13. With in how many days / hrs from order do you require ?

Options Immediately Monthly Weekly TOTAL

No. Of Responses 22 20 13 50

% of Responses 44 40 26 100

No. Of Responses

Immediately Monthly Weekly TOTAL

44% of the customers require the orders immediately with in a day or in two days.


Options Company Dealer Self TOTAL

No. Of Responses 20 15 15 50

% of Responses 40 30 30 100

14. What is the present source of Spare parts ?

No. Of Responses

Company Dealer Self TOTAL


From the above graph we can conclude that 40 % customer by the spare parts from the company

Chapter 5

1. 2. 3.





The product awareness regarding Godrej Machine and tools is less and this to be improved.


Generally people I suggest the direct mailings to be sent to these top people take the buying and servicing decisions. The sources may be from esteem club members, corporate managing directors, directors, directors; purchase officers service maintenance engineers- where the purchase manager takes the purchasing and service decision.


The company should have an innovative approach and should_ try to make necessary changes, amendments, and additions in order to suit the customer needs.



The company should make aware of after sales service provided by godrej for every six month to its customers


The after sales service provided by godrej is poor according to the existing customers it should be improved at a greater extent.


Chapter 6

Questionnaire Bibliography




(1) Are you using Godrej machines in your company (2) What types of machines are used Yes / No

___________________________ _____________________

(3) From how many years you are using the Machine

(4) Any damages or repairs occurred to the machine _____________________________________________________________________ (5)If yes what ________________________________________________________ (6)Approximately cost of repair _________________________________________ Yes / No

(7)Are you satisfied after sales services (8)Present condition of the Machine (a) 5 (b) 4 (c) 3 (d) 2 (e) 1

(9) When was the last serviced undertaken _____________________________________________________? (10) Who was the recent service provider? Address _______________________________________ ________________________________________ (11) Is your Machine noise level is under control (12) This machines presently used for First shifts / second shifts / Third shifts / All shifts Yes / No Yes / No

(13) Are you aware of services provided by Godrej (14) With in how many day / hrs you require the service provided by Godrej

_______________________________________________________________ (15) What are the areas you require? Over howling 69

To attend to break down

Machine up gradation Reconditioning Maintenance

(16) Do you require any spare parts (17) With in how many days / hrs from order do you require?

Yes / No

_______________________________________________________________ (18) What is your present source of spare parts? _______________________________________________________________ (19) Do you want to order any Machine Organization _________________________________Tele No; ______________________ _________________________________Fax No: _______________________ _________________________________Email:________________________ Yes / No





Web sites :-

www.godrej.com www.godrejandboyce.com