Escolar Documentos
Profissional Documentos
Cultura Documentos
RESEARCH METHODOLOGY
PART II OF PROJECT IN MBA IV SEMESTER
(2013-2015)
1
CHAPTER II
INDUSTRY PROFILE
&
COMPANY PROFILE
INDUSTRY PROFILE
Motorcycles have made their debut around the 1950s; this section looks at the two
wheelers which have over the years caught the imagination of the country. It was in the year
1954 that the Indian government ordered for totaling number of 800 motorcycles to man the
Pakistani borders. The bullets which were initially launched in England as a 350cc bike and it
was upgraded to 500cc a year or so later. These bikes have remained unaltered, barring some
cosmetic changes which have undergone over the years. Thus one can say without much of the
doubt that the 1955 Bullet was one of the initial hits of the Indian two wheeler industries and till
today it continues to be a darling of the motorcycle enthusiasts. Enfield Bullet had a close
competition with another study bike named Rajdoot; as the bike was strong enough to handle the
rough Indian roads.
The company had roped in Indian He-Man Dharmendra for the promotion of the Bike.
With more than 1.6 million vehicles on the road the Rajdoot motorcycle was one of the initial
hits of the earlier years of two wheeler industry in the country. When heavy motorcycles were the
order of the day a relatively lighter bike had caught on the imagination of the Indian 2 wheeler
user. Ind-Suzukia bike launched by the then TVS Suzuki group was an instant hit. However the
bike could not sustain its initial success due to the high import content in the vehicle and less of
the localization. In Scooters Bajaj Chetak has been hugely responsible for adding momentum, to
the transport system of the country, till today it remains one of the most successful brands to
have come out of the Bajaj Stable.
The scooter is named after the Horse of Legendry Rana Pratap Singh; these sets of two
wheels have become a part of the Indian milieu and are often considered a representative of the
Indian middle class operation. Very few 2 wheelers have been able to emulate the success, which
Bajaj Chetak has achieved over the years. Similarly LML Motors enjoyed a reasonable success
with the launch of LML select which came with new age technology and improved performance.
Today newer models of 2 wheeler are entering the market every day, slowly pushing
these names down the memory lane. However names like Chetak, Rajdoot and Bullet will always
find a mention in the history of 2 wheelers in the country.
About 2 wheelers:
The motorcycle has entered its third century, and the two wheeler has come a long way
from its origins as a bicycle with an engine. Its new celebrated in the museums and is revered as
a symbol of rebellion and freedom. With the meteoric rise in gas prices in the first decade of 21 st
century, many former riders are returning to motorcycles to save on gas and to create less impact
on the environment.
History:
The first motorized two wheeler was built by SYLVESTER HOWARD ROPER of
Massachusetts in 1867. The inventor demonstrated his steam powers motorbike at fairs along the
east coast. It featured hand grip twist throttle and a 2 cylinder engine fired by coal. It did not
catch on. The German inventors Gottlieb Daimler and Wilhelm May Bach produced the
Reitwagen (Riding Car), the first gas powered bike in 1885. The German Company Hildebrand
& wolfmuller debuted the first bikes for sale to the public in 1894. All the major motorcycle
brands that are still around today. Were founded in the period of 1902 to 1955. Triumph (1902),
Harley-Davidson (1903), Honda (1946), Suzuki (1952) Kawasaki (1954) and Yamaha (1955).
Types:
Motorcycles are classified as either street or off-road. Off-road Bikes are built to with
stand the vagaries of travelling over unpaved terrain. There are 3 basic types of Street
motorcycles. A standard bike usually doesnt have the room of lots of luggage or accessories and
the rider is positioned upright with his knees below his waist. Cruisers are larger, with lots of
room for baggage and other extras. The cruiser rider usually sits low in the saddle, reclined back
a little, arms extended farther to the handle bars. The third category, the Sport Bike usually has
plastic fairing and is much lighter faster and more maneuverable than standards and cruisers, the
riding profile is a lean towards the handle bars. Each of these categories has sub categories of
specialized motorbikes, including the sport tourer, which has more room for luggage and a more
upright rider profile.
Popularity:
4
Motorcycle sales worldwide grew by 6.5 percent during the economic downturn of 2008.
According to Bloomberg.com. The insurance institute for Highway safety estimates that
motorcycle registrations in the United States grew by 51 percent between 2000 & 2005.
Safety:
Fatal accidents involving motorcycles are far higher than cars. Data from the U.S
department of Transportations 2005 Fatality Analysis Reporting System report (the latest
available of this writing) indicates there were 25.32 car crashes resulting in a fatality per 100, 00
passenger cars in that year, compared to 85.93 fatalities per 100,00 re4gistered motorcycles. The
biggest causes of motorcycle rider fatalities are passenger vehicles making an illegal turn into the
rider and riders taking turns too wide and going off the road.
Fuel Efficiency:
The United States govt. does not require fuel emissions standards for motorcycles and the
industry does not have a standardized method for computing miles per gallon. Modern
motorcycles average around 50 miles per gallon.
Two Wheeler Models:
The two wheelers have played a pivotal role in the surging growth of the Indian
automobile industry. Over the years domestic sale of various brands of 2 wheelers has grown in
large numbers. Even, in exports, the 2 wheelers have been able to maximize the profit margin of
various 2 wheelers manufacturers. There are mainly 3 models of 2 wheelers namely, Scooter &
motorcycles & mopeds. In recent years, the 2 wheeler industry has witnessed a sea change.
During the yesteryears the scooters used to have about 50 % of the Market share and the rest
were divided between the motorcycles and mopeds. But now the trend indicates the people are
referring motorcycles more than the scooters. At present there is a huge demand for the
motorcycle models in India.
There are a number of 2 wheeler companies in India. The produced vehicles of extremely
high standard. Some of the leading 2 wheeler manufactures in India are Bajaj Auto, TVS motors,
Kinetic Motors, Suzuki Motor Corporation, Royal Enfield Motors India, Yamaha motor India,
LML India & Honda Motor Cycle & Scooters India Pvt Ltd. Many of 2 wheelers manufactured
by these companies are exported to countries in South East Asia, Africa & South America.
Motorcycles are as usually priced higher than that of the scooters and mopeds.
There are even equipped with more features for faster travel based upon the engine
displacements and power capacity motor cycles are further classified as ; Road Bikes , Trial
Bikes, Racing Bikes, & Touring Bikes. Most of the motorcycles in India come with engine
capacity of about 100cc to 250cc.
The engine capacity of Scooters as usually varies between 100cc to 150cc. Mopeds have
small engine capacity ranging between 50cc to 100cc. most of the automobile companies in this
segment are always coming up with newer variants of different models of 2 wheelers.
To be in the long run these companies are even adding more number of features to these
vehicles. Bike models become popular when they are as good in appearance as in the
performance. Two wheeler bike models in India also get popular when they are in good price
range along with other attractive features.
Two wheelers in India:
India is the second largest producer of two wheelers in the world. In the last few years the
Indian 2 wheeler industry has seen spectacular growth. The country stands next to China & Japan
in terms of production and sales respectively.
Majority of Indians, especially the youngsters prefer motorbikes rather than cars.
Capturing a large share in 2 wheeler industries, bikes and scooters cover a major segment. Bikes
are considered to be the favorite among the youth generation, as they help in easy
communication. Large varieties of 2 wheelers are available in the market. known for their latest
technology and enhanced mileage. Indian bikes, scooters and mopeds represent style and class
for both men and women in India.
Benefits of 2 wheelers:
6
Two wheelers are the most popular and highly sought out medium of transport in India.
The trend of owning 2 wheelers is due to its:
Economical price.
Safety.
Fuel-efficient.
Comfort level.
However, few Indian bike enthusiasts prefer high performance imported bikes. Some of
the most popular high speed bikes are Suzuki Hayabusa, Kawasaki Ninja, Suzuki Zeus, Hero
Honda Karizma, and Bajaj Pulsar & Honda Unicorn. These super bikes are specially designed
for those who have a zeal for speedy drive. Browse through the pages and catch all the details of
high performance 2 wheelers in India. Know more about latest launches and happenings in 2
wheelers industry.
Two wheeler sales maintain scorching growth.
The 2 wheeler industry has reported robust sales for the month of May. Major companies
reported improved sales year over year (YOY).
Bajaj autos sale including the sale of 3 wheelers rose to 62 % at 300000 units vs.
185000units (YOY) while TVS motors registered a sale of 154667 units and increase of 30%.
Hero Honda, the countrys largest 2 wheeler maker, saw sales jump 14% to 4,35,933 units.
Bajaj autos exports were up 60% at 96000 units vs. 60000 unitsYOY. The companys
motorcycles sale grew 63 % at 27000 units while its 3 wheeler sales were at 30000 units to
20000 units last year. up 52%the companys new Discover 150cc sold 12000 units in May and
the target for June is 25000 units. Bajaj auto expects its exports to go up to 100000 units in June.
Hero Honda motors senior vice president marketing & Sales Anil Dua said the 14%
growth in May is very satisfying, coming as it does over the high base of our sales last year. We
had significant contributions from segments resulting in this achievement. The companys
scooter Pleasure recorded sales of over 24000 units last month, he added.
TVSs sales for motorcycle rose 26.94% to 67906 units from 53495 units in the year ago
period. The Company said its exports in May surged 62.07 % to 18046 units against 11135 units
7
in May 2009. Companys 3 wheeler sales soared over three fold to 2313 units in May from 707
units in the same month of last year.
Two wheelers by brands:
BAJAJ AUTO
HONDA MOTORCYCLE AND SCOOTERS INDIA PVT LTD
LML INDIA
SUZUKI MOTOR
MAHINDRA 2 WHEELERS
HERO ELECTRIC MONTO MOTORS
TVS MOTORS
HERO HONDA
KINETIC
ROYAL ENFIELD
YAMAHA MOTORS
COMPANY PROFILE
8
About Us
Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's
largest manufacturer of internal combustion engines measured by volume, producing more than
14 million internal combustion engines each year. Honda became the second-largest Japanese
automobile manufacturer in 2001. Honda was the eighth largest automobile manufacturer in the
world behind General Motors, Volkswagen Group, Toyota, Hyundai Motor Group, Ford, Nissan,
and PSA in 2011.
Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand,
Acura, in 1986. Aside from their core automobile and motorcycle businesses, Honda also
manufactures garden equipment, marine engines, personal watercraft and power generators,
amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics
research and released their ASIMO robot in 2000. They have also ventured into aerospace with
the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet, which
began production in 2012. Honda invests about 5% of its revenues in research and development.
Because the water raises rice and the fishes live in the water, I dont want to contaminate
it.
Soichiro Honda (1906 1991), the founder and president of the Honda Motor Company, got his
start at his father's bicycle repair shop. As a child, he spent hours fixing bikes and learning from
his father, who was also a blacksmith.
Honda was born on November 17, 1906, in Japan's Shizuoka prefecture, where, given that
bicycles were only just starting to become popular, Honda's glimpse of a Model T one day
became a life-changing event: "I could not understand how it could move under its own power.
And when it had driven past me, without even thinking why, I found myself chasing it down the
road as far as I could run." In 1922, that love of automobiles inspired him to leave home at age
15 to apprentice at Art Shokai, an automobile repair shop in Tokyo. The shop's owner saw in
Honda a hard worker processing technical expertise unusual in one with only an elementary
school education.
Sochiro Honda has more than 100 patents to his name, including new engine designs for
both motorcycles and automobiles.
"At Art Shokai...the Old Man learned so much by doing real work with real machines," said
Kihachiro Kawashima, who succeeded Honda at the Honda Motor Company upon his 1973
retirement. "He didn't just have theoretical knowledgehe was an expert at all sorts of practical
tasks like welding and forging. Those of us who had only studied the subject on paper from an
academic standpoint just couldn't compete."
In 1928, Honda completed his apprenticeship and opened a branch of
Art Shokai in Hamamatsu, with his new wife Sachi serving as
bookkeeper and cook for the staff. Honda began building everything
from dump trucks and a repair lift for cars to racing cars using old
airplane engines, and began to dream of expanding into
manufacturing. But his investors, loathe to tamper with a profitable
business
model,
refused
to
back
him.
Undeterred, in 1936, Honda started a separate company, Tokai Seiki Heavy Industry, where after
putting in a full day at Art Shokai, he made piston rings at night. Though his first order of piston
rings, made for Toyota, was rejected, Honda refined the processone of the 100 patents he
10
would receive would be for piston designand his business, which became a 2,000-employee
supplier of parts for Toyota and Nakajima Aircraft, among other companies.
Honda was a maverick whose best ideas emerged from the most pressing constraints. During
World War II, when the Ministry of Munitions took control of Tokai Seiki, he developed a
technique for mass-producing wooden airplane propellers for the war effort that turned out two
propellers every half hour as opposed to the week it previously took for one propeller to be hand
carved manually. And after the war, with gasoline scarce, Honda, opened the Honda Technical
Research Institute, where he built small2-stroke, 50-cc modified engines that could be attached
to bicycles, like the one he used to get around post-war Tokyo.
In 1949, the Honda Motor Company, Ltd., released the first "Dream Type-D" motorized bicycle,
made of pressed steel, because quality steel pipe was hard to come by, and painted maroon, a
stylistic departure from the black paint of other motorcycles on the road. It was an immediate hit
with the Japanese public. In 1953, the Honda C-100, followed, and it was that fuel-efficient
diminutive bike that in 1959 became the world's biggest selling motorcycle.
But profit wasn't Honda's only motive. In March 1954, he informed employees that he had his
sights on the Isle of Man Tourist Trophy, the most prestigious motorcycle race in the world:
"Since I was a small child, one of my dreams has been to compete in motor vehicle races all over
the world with a vehicle of my own making. " Noting that never before had a Japanese entered
the race with a made-in-Japan motorcycle, Honda enlisted his workers in the creation of a 250-cc
(medium class) racer capable of clocking 180 km/hr, a project that would "bring together the full
strength of Honda Motor Co. . The future of Honda Motor Co. depends on this, and the burden
rests on your shoulders."
Five years later, Honda and his workers made headway, when a team of Honda 250 ccs finished
6th, 7th, 8th and 11th in the Isle of Man 125-cc light-weight class, and won the Manufacturers'
Team Award. In Germany in 1961, a 250-cc Honda became the first Japanese bike to come in
first in a World GP event.
11
car
companies.
"Government officials ... become an obstacle when you try to do something new," he once said.
Nevertheless, in 1963, Honda began producing the lightweight fuel-efficient cars in Japan that
were the precursors to the 2-cylinder N600 sedan that would hit American shores in 1969. 1971's
Z600 coupe followed and then in 1973, the Honda Motor Company introduced the Honda Civic
hatchback.
But it was with the Compound Vortex Controlled Combustion Engine (CVCC)and the energy
crisis of the mid-1970sthat Honda made history. An inventive technical response to market
conditions, the CVCCloaded Civic complied with new stringent U.S. exhaust emission
standards without a catalytic converter, something other car companies said couldn't be done.
The Civic was an immediate hit, and from 1972 to 1974 it won the Car of the Year Japan award.
In 1979, Honda opened its first U.S. plant.
By then, Honda was all but retired, largely devoting himself to
public service. He received the Order of the Sacred Treasure, first
class, the highest honor bestowed by Japan's emperor. In 1980, the
year Honda Motor Company became the world's third largest
automaker, ASME established the Soichiro Honda Medal "in recognition of Mr. Honda's
exemplary achievements in the field of personal transportation." He was inducted into the
Automotive Hall of Fame in 1989, taking his place beside Henry Ford, Walter Chrysler, Alfred
Sloane of General Motors and Karl Benz. Honda died on August 5, 1991 from liver failure, at
age 84. His wife, Sachi, and three children survived him.
Objective
The Honda Young Engineer and Scientist Award in India (YES Award in India) program is
designed to strengthen Japanese ties with India through provision of financial aid to young
12
Expansion: HMSI reached its peak production level of 16 lac units at its Manesar (Haryana)
facility in 2010. To serve customers faster, HMSI added fresh 12 lac unit annual production
capacity at its second plant in Tapukara (Rajasthan) in FY11-12. To further meet increasing
customer demand, Honda has inaugurated its third plant of 12 lac unit production capacity at
Narsapuram (Dist. Kolar, Karnataka) on May 28, 2013 and production commenced starting
June13. Overall, HMSI cumulative production capacity from its 3 plants is 40 lac units annually.
An additional 6 lac unit capacity expansion announced at 3rd plant will take production capacity
to 46 lac units by FY14 end.
Network: In the end of FY 2012-13, HMSI Sales & Service network stood at over 1950 outlets
(includes 654 Dealers, 670 Branches/Sub dealers, 565 service set-ups) across India. Further, New
Zonal offices were inaugurated at Ahmedabad, Chennai, Bhopal, Mohali and Bhubaneswar for
amassing local market intelligence, strategizing and implementing regional approach faster. In
current FY2013-14, we target to add a total of 500 more outlets and provide service closer to
customer with a network of 2500 sales and service outlets.
Fun Expansion: Honda is proud to be the Industry First to promote Fun, Safety and
Environment in India. Since 5 years, Honda has been expanding popular Fun initiatives like
Honda One Make Race, Gymkhana, Asia Cup and the unique Honda Racing Training by Moto
GP riders from Japan. In addition, Honda has introduced its global performance fun bikes in
India.
Safety Promotion: As a responsible manufacturer, Safety is a priority for Honda. Honda has
been regularly conducting safety riding activity for females, CRF 50 and Primary training for
kids, riding trainer simulation at dealerships. Till date, HMSI has trained more than 2 lac
customers, 41630 children and 8100 women on road safety.
Environment Conservation: On the environmental front, Honda wants that tomorrow be
greener than today. To ensure Joy for next Generation, Honda implements environmental
management at its premises. It various efforts include reducing and reusing waste to achieve zero
emissions, resource conservation, improved efficiency and promotion of Green Factory, Green
Supplier, Green Dealer initiatives.
14
Awards: Honda Motorcycle & Scooter India has been recognized by 15 prestigious awards for
both Brand and products. These include the Most Preferred Scooter Brand in North-East, two
awards for Best Manufacturer to Support Indian Racing and three Manufacturer of the Year
awards.
On the product front too, Hondas first truly mass motorcycle for India Dream Yuga has been
the proud recipient of 6 key awards including Viewers Choice of the Year, Motorcycle up to
110cc, & AAA Creative TV Commercial of the Year at the NDTV Car & Bike Awards 2013
and Motorcycle of the Year upto 115cc at Bike India Awards, Compact Bike of the Year at
CNBC Tv18 Overdrive Awards and Motorcycle of the Year upto 110cc at the ET ZigWheels
Awards. CBR 150R too has received the Enthusiast Motorcycle of the year upto 180cc at the
ET ZigWheels Awards 2012.
15
ORGANIZATION PROFILE
The KATKAM HONDA is at Wyra Road at Khammam It is being maintained by
K.Chinna Hanumantha Rao, who is the Manager who looks after the entire business and he the
Sri. Chinna Hanumantha Rao has desired to become the Honda Dealer. He worked hard
spending all his resources to get dealership under the name of Katkam Honda in 29-04-2004 it
was established .
The dealer is assisted by energetic, dynamic, enthusiastic & hard wording employees.
When the employees were asked whether the dealer is always helps in solving their problems.
Even compensation point of view they are fair & proper. The dealer of Katkam Honda discusses
the problems connected with the business with their employees also.When potential customer
step in to the show room, the dealer & the employees receives them, well, even if person steps
out the show room without placing an order, the dealer & the employees still give the person the
same respect which they had given live when he entered the show room.
They provide free services to Honda Unicorn customers. In case of Honda
Unicorn they provide total 6 services to the customer. All the 4 services are free. The
organization itself gives dates for servicing if the date of servicing is completed they remember
the customers through a phone call. Their service towards consumers is very bikeing. The
warranty of Honda Unicorn is two years. They also provide paid charge services with a little
amount after free services. In the competitive world of business for every product there is lot of
competition in 2 wheelers.
Most of the people prefer two wheelers, which gives more mileage vehicles are ready to
spend at a time loans amount & prefer to spend was money in day-to-day maintenance act also.
Some segments of companies are offering more mileage vehicles with lightweight.
But is very completing to manufacture should have to maintain more mileage,
lightweight, good looking & soon. Hence Honda Unicorn has introduced the Unicorn for a
unique people. It is very convenient to drive on rugged roads even for a long journey. It we see
Honda Unicorn at a glance we will feel very proudly.
16
DUTIES OF MANAGER:
1
Company correspondence.
II
To receive cash.
III
To pay cash.
IV
To assist cashier.
Advising customers.
17
Making job bikeds giving them to mechanics for repairing the vehicles.
Duties of spares manager: Verifying of mechanics, assistant mechanics and helpers works.
HONDA MODELS:
HONDA MOTORCYCLES
s.no
MODEL
CUBIC CAPACITY
250CC
2
3
4
150CC
110CC
125CC
5
6
7
Honda CB Unicorn
Honda CBF Stunner
Honda CBF Stunner PGMFI
150CC
125CC
125CC
HONDA SCOOTERS
s.no
MODEL
CUBIC CAPACITY
Honda Activa
110CC
Honda Dio
102CC
Honda Aviator
110CC
147.7CC
18
CHAPTER III
CONCEPTUAL FRAME WORK
19
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." In a survey of nearly
200 senior marketing managers, 71 percent responded that they found a customer satisfaction
metric very useful in managing and monitoring their businesses. It is seen as a key performance
indicator within business and is often part of a Balanced Scorebiked. 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-ofmouth 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 representative 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." The importance of customer satisfaction
diminishes when a firm has increased bargaining power. For example, cell phone plan providers,
such as AT&T and Verizon, participate in an industry that is an oligopoly, where only a few
suppliers of a certain product or service exist.
20
As such, many cell phone plan contracts have a lot of fine print with provisions that they
would never get away if there were, say, a hundred cell phone plan providers, because customer
satisfaction would be way too low, and customers would easily have the option of leaving for a
better contract offer.
PURPOSE
Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty." "Customer satisfaction data are among the most frequently collected indicators of
market perceptions. Their principal use is twofold:"
1
"Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with the companys goods and services."
"Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firms customers will
make further purchases in the future. Much research has focused on the relationship
between customer satisfaction and retention. Studies indicate that the ramifications of
satisfaction are most strongly realized at the extremes." On a five-point scale,
"individuals who rate their satisfaction level as '5' are likely to become return customers
and might even evangelize for the firm.
"Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return.
Further, they can hurt the firm by making negative comments about it to prospective
21
CONSTRUCTION
Organizations need to 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)
22
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
worse than the top three measures, and/or their performance varied significantly across the two
service contexts in their study. These results suggest that more bikeeful pretesting would be
prudent should these measures be used.
Finally, all measures captured both affective and cognitive aspects of satisfaction,
independent of their scale anchors. Affective measures capture a consumers attitude
(liking/disliking) towards a product, which can result from any product information or
experience. On the other hand, cognitive element is defined as an appraisal or conclusion on how
the products performance compared against expectations (or exceeded or fell short of
expectations), was useful (or not useful), fit the situation (or did not fit), exceeded the
requirements of the situation (or did not exceed)
METHODOLOGIES
American Customer Satisfaction Index (ACSI) is a scientific standard of customer
satisfaction. Academic research has shown that the national ACSI score is a strong predictor of
Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal Consumption
Expenditure (PCE) growth. On the microeconomic level, academic studies have shown that
ACSI data is related to a firm's financial performance in terms of return on investment (ROI),
sales, long-term firm value (Tobin's q), cash flow, cash flow volatility, human capital
performance, portfolio returns, debt financing, risk, and consumer spending.
The Kano model is a theory of product development and customer satisfaction developed
in the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories:
Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some
insight into the product attributes which are perceived to be important to customers.
SERVQUAL or RATER is a service-quality framework that has been incorporated into
customer-satisfaction surveys to indicate the gap between customer expectations and experience.
J.D. Power and Associates provides another measure of customer satisfaction, known for its topbox approach and automotive industry rankings. J.D. Power and Associates' marketing research
consists primarily of consumer surveys and is publicly known for the value of its product awards.
Other research and consulting firms have customer satisfaction solutions as well. These include
24
A.T. Kearney's Customer Satisfaction Audit process, which incorporates the Stages of Excellence
framework and which helps define a companys status against eight critically identified
dimensions.
Capability
Usability
Performance
Reliability
Install ability
25
Maintainability
Documentation
26
satisfaction are changing in addition to documenting the levels and areas of customer
satisfaction.
METHODS
QUANTITATIVE RESEARCH STUDIES
Quantitative studies allow a firm to develop an understanding of the "big picture" of their
customers' experiences based upon a relatively small number of interviews. This "sample" of the
firm's customers must be bikeefully designed and drawn if the results of the study are to be
considered representative of the customer population as a whole. In most cases, the results of
quantitative studies are based upon the responses of a relatively "large" number of interviews.
Depending upon the size of the population and the amount of segmentation desired, "large" can
be as few as 50 responses or range from several hundred to thousands of interviews. Mail-based,
telephone-based, and (more recently) Internet-based surveys and related data collection.
QUALITATIVE RESEARCH STUDIES
Qualitative studies are used by firms to provide a more detailed and/or
unconstrained understanding of customer experiences. In most cases, the results of qualitative
studies are based upon dozens of interviews. Qualitative studies are not designed to provide
insights that are projectable to the customer population: qualitative studies are used for initial
exploration of experiences and topics or to probe more deeply the reasons behind customer
perceptions. Focus groups (group depth interviews) and "one-on-ones" (individual depth
interviews) are common examples of qualitative studies.
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FUNCTIONALITY
With our Customer Service Tracking you can:
High quality actionable information from Survey Value, an independent third party
research firm
Flexible online reporting allows interactive queries for filtering, crosstabs and charts
on process improvement. Click on each process step below for additional information about
that step. Our services include customersatisfaction and loyalty surveys and satisfaction process
consulting.
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Lean Management
New Products (All types of new product programs and product design efforts)
Tech support is in the problem solving business - customers are happy when problems
are solved. Track problem resolution.
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Sales people retain their customers by keeping them happy - they need information on
likelihood of repurchase.
Engineering and product design people create successful products only if customers
like the new products. They need information on what improvements customers want.
Quality managers seek to improve processes by reducing variation and raising customer
satisfaction. They manage process improvement in part by tracking key metrics. Many
types of customer satisfaction information can be useful to them. Quality managers may
be especially interested in tracking customer perceived problems.
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population. Determine margins of sampling error and identify statistically significant differences
among results. These practices will help managers interpret the findings and decide how much
weight to give them in business decisions.
REPORT RESULTS CLEARLY AND QUICKLY
When customer satisfaction information is "on stage" with managers, be sure it is
presented in a manner that can be quickly grasped. Use charts and bullet points to highlight
methodologies, key findings and conclusions. Present the answers to the questions key manager
raised earlier in the customer satisfaction process. Present reports to the managers of customer
touch point processes, since it is these managers who will benefit most from better customer
satisfaction.
CUSTOMER SATISFACTION PROCESS ITEM 4: SELECT LEVERAGE POINTS
LEVERAGE POINTS
There is an old story about a plumber who came to unclog a sink. He crawled under the
sink, hit a pipe once with his hammer, and the clog washed away. He immediately wrote up an
invoice for $150. When the homeowner asked how he could possibly charge $150 for a five
minute house call the plumber said, "The house call was only $50. The other $100 was for
knowing where to hit."
Strategy Matrix :-Customer satisfaction systems often report findings in a "quadrant
chart" based on the following type of strategic matrix. In the chart below, satisfaction has been
measured on a ten point scale, but none of the items averaged less than 5.0. The horizontal axis,
"Impact on Satisfaction," is quantified in various ways that go beyond the scope of this
document.
The
strategy
matrix
can
be
related
to
SWOT
analysis
Also, even though it says "don't waste resources," items that fall in the lower left
quadrant may require some improving if they appear to be causing some degree of customer
defection.
FUND PROJECTS
When project authority is granted, and the project is funded, the satisfaction process is
also proceeding. The company is now doing something positive, designed to increase customer
satisfaction.
TRACK PROGRESS
The successful satisfaction process collects and reports expenditures, progress and results
of the various satisfaction projects. A uniform system is utilized so projects can be efficiently
monitored. The satisfaction process collects satisfaction project progress data so the entire
satisfaction effort can be understood.
CUSTOMER SATISFACTION PROCESS ITEM 7: MANAGE PROGRAM
FROM PROJECTS TO PROGRAM
The process monitors satisfaction project data so the ongoing satisfaction effort can be
understood. Use a uniform reporting system for all projects as this helps organize a collection of
projects into a managed PROGRAM, also referred to as "portfolio management." In becoming
customer-driven, a program or portfolio approach is beneficial because it coordinates efforts.
DASHBOARD REPORTS
Dashboard reports help executives, product managers, brand managers, engineers and
others in understanding the evolution of the entire product offering as perceived by the customer.
Dashboard reports show at a glance the satisfaction metrics and trends, the leverage points, the
teams assigned for corrective action, the status of current projects and the benefits that have been
achieved in the past year or two as a result of action on customer perceptions. It is important that
changes are coordinated, so the character and continuity of the product offering or brand are
managed coherently.
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The study of consumer behaviour is the study of how individuals make decisions to spend their
available resources (time, money, effort) on consumption related items. It includes the study of
What they buy,
Why they buy it,
When they buy it,
Where they buy it,
How often they use it
For Instance, we can take the simple product - Toothpaste.
What types of tooth paste do consumer buy -Regular, gel, Floride triped, herbal,
What brand
- To Prevent Cavities,
- To remove stains.
- To brighten or writen teeth mouthwash
- To attract romance
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firm is to rebuild itself around its customer. It should be able to perceive, interpret, serve and
satisfy the customer with the type of products and services he/she desires and arm itself so as to
gain a competitive edge of customerisation.
Customerisation refers to the process wherein all the employees of the firm are required
to interact directly with the customer and end user. They can have access to every person and
function within the organization, be involved in designing and fine turning key products and
processes, and turn every interaction with in customer in to a platform of interactive
communication so as to add value and increase customer satisfaction.
Customerisation will help a firm in:
Help to focus on consumers needs so as to add value and offer benefits to the customer.
To identify new customers, new market segments and new application for existing
products.
The above figure shows how a customerised chain could be formed by a firm so as to increase its
operational efficiency also add to its customer delight. Such an exercise will increase the
employee level of motivation and involvement and help them to work towards consumer
satisfaction. However, if may be noted that consumer satisfaction is a relative rather than an
absolute measure. Further, very often satisfaction after satisfaction after the purchase is
dependent on expectations held before the purchase of the product or service.
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CHAPTER IV
DATA ANALYSIS
&
INTERPRETATION
41
Table: 1
INCOME
NO.OF RESPONDENTS
PERCENTAGE
60
40%
10,000 20,000
90
60%
20,000 30,000
0%
0%
150
100%
Total
INCOME
INTERPRETATION:-The above table shows that has covered different groups people having
different levels of income. 40% of respondents have an income of less than 10,000 p/m, while
60% respondents are in the income group of 10,000-20,000.
Table: 2
Areas
No. of Respondents
Percentage
Rural
60
40%
Urban
90
60%
Total
150
100%
Location of respondents
70%
60%
50%
40%
Percentage
30%
20%
10%
0%
Rural
Urban
Areas
INTERPRETATION:The above table shows covered the rural, semi-Urban and urban areas. In the nature of
customers 100 respondents belongs to rural area, 40% respondents are belongs to semi-urban and
remaining 60% respondents are belongs to urban area. Over all we can conclude that irrespective
of the area the people gives response to Honda Unicorn
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YEARS
NO.OF RESPONDENTS
PERCENTAGE
24
16%
1 year
51
34%
75
50%
TOTAL
150
100%
30%
20%
10%
0%
2 years & above
1 year
YEARS
INTERPRETATION:The above table shows that 50% of respondents using the bike less than 1 year, while
34% people are using one year and other remaining 16% people using the bike since 2 years &
above .
OPINION
NO.OF RESPONDENTS
PERCENTAGE
YES
120
80%
NO
30
20%
TOTAL
150
100%
40%
20%
0%
YES
NO
OPINION
INTERPRETATION:The above table shows that 80% of respondents satisfied their existing features, 20% of
respondents are not satisfied their existing features.
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OPINION
NO.OF RESPONDENTS
PERCENTAGE
Yes
105
70%
No
45
30%
Total
150
100%
PERCENTAGE
80%
70%
60%
50%
40%
30%
20%
10%
0%
Yes
No
OPINION
INTERPRETATION
The above showing the opinion about the mileage of Unicorn 70% of respondents were
satisfied with the mileage of Unicorn and 30% of respondents were not satisfied.
6.What prompted you to buy HONDA among all other brands (please rank)?
Table - 6
46
Options
No of respondents
Percentage
Brand Image
90
60%
Service
24
16%
Maintenance
18
12%
Price
6%
Promotion
6%
Total
150
100%
Chart - 6
percentage
70%
60%
50%
40%
30%
20%
10%
0%
Brand Image
Service
Maintenance
Price
Promotion
Options
INTERPRETATION:
The above graph indicates that the numbers of people who buy HONDA among other
brands are 60% Brand Image, 16% Service, 12% Maintenance, 6% Price and 6% Promotion.
7. Rank the features attracted you to buy the bike you own?
Table 7
Options
No of respondents
Percentage
47
Service
Power
Fuel Efficiency
Safety
Style
Maintenance
Totals
15
9
9
6
90
31
150
10%
6%
6%
4%
60%
14%
100%
Chart Title
80%
60%
Percentage
40%
20%
0%
Service
Style
Maintenance
Options
Ch
art 7
INTREPRETATION:
The above chart indicates that the number of people who got attracted to buy HONDA is
60% for Style, 10% for Service, 14% for Maintenance and 6% for Fuel Efficiency, 4% for Safety
and 6% Power.
8.Who is the main influencer in the decision making process?
Table 8
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Options
No of respondents
Percentage
Father
90
60%
Mother
15
10%
Wife
4%
Dealers
6%
Friends
6%
Myself
31
14%
Total
150
100%
Chart - 8
Mother
Wife
Dealers
Friends
Myself
Options
INTREPRETATION:
The above graph indicates that number of persons influence to purchase HONDA Father
60%, Mother 10%, Wife 4%, Dealers 6%, Friends 6% and myself 14%.
No of respondents
75
33
Percentage
50%
22%
49
Comfortable
Uncomfortable
Confused
Total
12
24
6
150
8%
16%
4%
100%
Chart - 9
10%
0%
Options
INTREPRETATION:
The above chart indicates the percentage of satisfaction while driving HONDA, the people
feel 50% Delighted, 22% Relaxed, 8% Comfortable, 16% Uncomfortable and 4% Confused.
10. How long has you been associated with HONDA Motors...?
From 1 year
From 1 3 years
From 3 5 years
From 5 7 years
Above 7 years
10%
40%
20%
20%
10%
50
10%
10%
From 1 year
20%
From 1 3 years
40%
From 3 5 years
20%
From 5 7 years
Above 7 years
INTREPRETATION:
10% are people associate of 1 year, 40% people are associated with 1-3 year, 20% people
are associated with 3-5 year, 20% people are associated with 5-7 year and 10% people are
associated with above 7 years.
11. how would you rate HONDA motors on the following parameter?
Agree
50%
Strongly Agree
20%
Disagree
20%
Strongly disagree
10%
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10%
20%
20%
Strongly disagree
Agree
Disagree
50%
Strongly Agree
INTREPRETATION:
10% people are Strongly agree with parameter, 50% people are agree with parameter,
20% people are disagree with parameter, 20% people are strongly disagree with the parameters.
05%
10%
3.Good
35%
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4.Very Good
50%
5%
10%
Very Bad
50%
35%
Good
Very Good
INTREPRETATION:
05% people are said that very bad, 10% people are said that neither bad nor good, 35%
people are said that good and 50% people are said that Very good.
20%
2.Likely
35%
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3.Very Likely
45%
20%
45%
Very Unlikely
Likely
Very likely
35%
INTREPRETATION:
20% people are very unlikely, 35% people are likely and 45% people are very likely.
15%
Likely
30%
Very Likely
55%
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15%
55%
30%
Very Unlikely
Likely
Very likely
INTREPRETATION:
15% people are very unlikely, 30% people are likely and 55% people are very likely.
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CHAPTER - V
FINDINGS & SUGGESTIONS
FINDINGS
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In this study some of the respondents are not satisfied with the customer services
provides by the dealers.
The Honda company customers are not satisfied with the mileage.
Some of the respondent expressed that the of spare parts are high
The above chart indicates that the number of people who got attracted to buy HONDA is
60% for Style, 10% for Service, 14% for Maintenance and 6% for Fuel Efficiency,4% for
Safety and Power.
SUGGESTIONS
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The company needs to take steps to improve the mileage of the vehicles.
The company has to reduce the price of spare parts so as to make the bike more
economical.
If possible the co need to the price of the bike so that middle class people can also buy it.
It is suggested to the manufacture that the spare be made available at responsible price.
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